Attach to Form 990 or Form 990-EZ.
Go to
www.irs.gov/Form990 for instructions and the latest information.
| (i) Name of supported organization | (ii) EIN | (iii) Type of organization (described on lines 1- 10 above (see instructions)) | (iv) Is the organization listed in your governing document? | (v) Amount of monetary support (see instructions) | (vi) Amount of other support (see instructions) | |
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| Yes | No | |||||
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Total |
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Calendar year
(or fiscal year beginning in)
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(a) 2020 | (b) 2021 | (c) 2022 | (d) 2023 | (e) 2024 | (f) Total | |
|---|---|---|---|---|---|---|---|
| 1 | Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grant.") .. | ||||||
| 2 | Tax revenues levied for the organization's benefit and either paid to or expended on its behalf .... | ||||||
| 3 | The value of services or facilities furnished by a governmental unit to the organization without charge.. | ||||||
| 4 | Total. Add lines 1 through 3 | ||||||
| 5 | The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included on line 1 that exceeds 2% of the amount shown on line 11, column (f) .. | ||||||
| 6 | Public support. Subtract line 5 from line 4. | ||||||
Calendar year
(or fiscal year beginning in)
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(a) 2020 | (b) 2021 | (c) 2022 | (d) 2023 | (e) 2024 | (f) Total | |
|---|---|---|---|---|---|---|---|
| 7 | Amounts from line 4.. | ||||||
| 8 | Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources... | ||||||
| 9 | Net income from unrelated business activities, whether or not the business is regularly carried on.. | ||||||
| 10 | Other income. Do not include gain or loss from the sale of capital assets (Explain in Part VI.).. | ||||||
| 11 | Total support. Add lines 7 through 10 | ||||||
Calendar year (or fiscal
year beginning in) ![]() |
(a) 2020 | (b) 2021 | (c) 2022 | (d) 2023 | (e) 2024 | (f) Total | |
|---|---|---|---|---|---|---|---|
| 1 | Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") . | ||||||
| 2 | Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose | ||||||
| 3 | Gross receipts from activities that are not an unrelated trade or business under section 513 ..... | ||||||
| 4 | Tax revenues levied for the organization's benefit and either paid to or expended on its behalf... | ||||||
| 5 | The value of services or facilities furnished by a governmental unit to the organization without charge | ||||||
| 6 | Total. Add lines 1 through 5 | ||||||
| 7a | Amounts included on lines 1, 2, and 3 received from disqualified persons | ||||||
| b | Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year. | ||||||
| c | Add lines 7a and 7b.. | ||||||
| 8 | Public support. (Subtract line 7c from line 6.) | ||||||
Calendar year
(or fiscal year beginning in)
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(a) 2020 | (b) 2021 | (c) 2022 | (d) 2023 | (e) 2024 | (f) Total | |
|---|---|---|---|---|---|---|---|
| 9 | Amounts from line 6... | ||||||
| 10a | Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources.. | ||||||
| b | Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975. | ||||||
| c | Add lines 10a and 10b. | ||||||
| 11 | Net income from unrelated business activities not included on line 10b, whether or not the business is regularly carried on. | ||||||
| 12 | Other income. Do not include gain or loss from the sale of capital assets (Explain in Part VI.) .. | ||||||
| 13 | Total support. (Add lines 9, 10c, 11, and 12.).. | ||||||
| Section A - Adjusted Net Income | (A) Prior Year |
(B) Current Year (optional) |
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| 1 | Net short-term capital gain | 1 | ||||
| 2 | Recoveries of prior-year distributions | 2 | ||||
| 3 | Other gross income (see instructions) | 3 | ||||
| 4 | Add lines 1 through 3 | 4 | ||||
| 5 | Depreciation and depletion | 5 | ||||
| 6 | Portion of operating expenses paid or incurred for production or collection of gross income or for management, conservation, or maintenance of property held for production of income (see instructions) | 6 | ||||
| 7 | Other expenses (see instructions) | 7 | ||||
| 8 | Adjusted Net Income (subtract lines 5, 6 and 7 from line 4) | 8 | ||||
| Section B - Minimum Asset Amount | (A) Prior Year |
(B) Current Year (optional) |
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| 1 | Aggregate fair market value of all non-exempt-use assets (see instructions for short tax year or assets held for part of year): | 1 | ||||
| a | Average monthly value of securities | 1a | ||||
| b | Average monthly cash balances | 1b | ||||
| c | Fair market value of other non-exempt-use assets | 1c | ||||
| d | Total (add lines 1a, 1b, and 1c) | 1d | ||||
| e |
Discount claimed for blockage or other factors (explain in detail in Part VI): |
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| 2 | Acquisition indebtedness applicable to non-exempt use assets | 2 | ||||
| 3 | Subtract line 2 from line 1d | 3 | ||||
| 4 | Cash deemed held for exempt use. Enter 0.015 of line 3 (for greater amount, see instructions). | 4 | ||||
| 5 | Net value of non-exempt-use assets (subtract line 4 from line 3) | 5 | ||||
| 6 | Multiply line 5 by 0.035 | 6 | ||||
| 7 | Recoveries of prior-year distributions | 7 | ||||
| 8 | Minimum Asset Amount (add line 7 to line 6) | 8 | ||||
| Section C - Distributable Amount | Current Year | |||||
| 1 | Adjusted net income for prior year (from Section A, line 8, Column A) | 1 | ||||
| 2 | Enter 85% of line 1 | 2 | ||||
| 3 | Minimum asset amount for prior year (from Section B, line 8, Column A) | 3 | ||||
| 4 | Enter greater of line 2 or line 3 | 4 | ||||
| 5 | Income tax imposed in prior year | 5 | ||||
| 6 | Distributable Amount. Subtract line 5 from line 4, unless subject to emergency temporary reduction (see instructions) | 6 | ||||
| Section D - Distributions | Current Year | |
|---|---|---|
| 1 Amounts paid to supported organizations to accomplish exempt purposes | 1 | |
|
2
Amounts paid to perform activity that directly furthers exempt purposes of supported organizations, in excess of income from activity |
2 | |
| 3 Administrative expenses paid to accomplish exempt purposes of supported organizations | 3 | |
| 4 Amounts paid to acquire exempt-use assets | 4 | |
| 5 Qualified set-aside amounts (prior IRS approval required - provide details in Part VI) | 5 | |
| 6 Other distributions (describe in Part VI). See instructions | 6 | |
| 7Total annual distributions. Add lines 1 through 6. | 7 | |
|
8
Distributions to attentive supported organizations to which the organization is responsive (provide details in Part VI). See instructions |
8 | |
| 9 Distributable amount for 2024 from Section C, line 6 | 9 | |
| 10 Line 8 amount divided by Line 9 amount | 10 | |
| Section E - Distribution Allocations (see instructions) |
(i) Excess Distributions |
(ii) Underdistributions Pre-2024 |
(iii) Distributable Amount for 2024 |
|
|---|---|---|---|---|
| 1 Distributable amount for 2024 from Section C, line 6 | ||||
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2
Underdistributions, if any, for years prior to 2024 (reasonable cause required-- explain in Part VI).
See instructions. |
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| 3 Excess distributions carryover, if any, to 2024: | ||||
| a From 2019....... | ||||
| b From 2020....... | ||||
| c From 2021....... | ||||
| d From 2022....... | ||||
| e From 2023....... | ||||
| fTotal of lines 3a through e | ||||
| g Applied to underdistributions of prior years | ||||
| h Applied to 2024 distributable amount | ||||
|
i
Carryover from 2019 not applied (see instructions) |
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| j Remainder. Subtract lines 3g, 3h, and 3i from line 3f. | ||||
| 4Distributions for 2024 from Section D, line 7: | ||||
| $ | ||||
| a Applied to underdistributions of prior years | ||||
| b Applied to 2024 distributable amount | ||||
| c Remainder. Subtract lines 4a and 4b from line 4. | ||||
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5
Remaining underdistributions for years prior to 2024, if any. Subtract lines 3g and 4a from line 2. If the amount is greater than zero, explain in Part VI. See instructions. |
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6
Remaining underdistributions for 2024. Subtract lines 3h and 4b from line 1. If the amount is greater than zero, explain in Part VI. See instructions. |
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7 Excess distributions carryover to 2025. Add lines 3j and 4c. |
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| 8 Breakdown of line 7: | ||||
| a Excess from 2020..... | ||||
| b Excess from 2021..... | ||||
| c Excess from 2022..... | ||||
| d Excess from 2023..... | ||||
| e Excess from 2024..... | ||||
| Facts And Circumstances Test |
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| Return Reference | Explanation |
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| Software ID: | |
| Software Version: |
| Return Reference | Explanation |
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| FORM 990, PART III, LINE 4A, EXEMPT PURPOSE AND ACHEIVEMENTS | CORPORATE STRUCTURE, PURPOSE, GOVERNANCE HUTCHINSON HEALTH (HUTCHINSON) IS A MINNESOTA NONPROFIT CORPORATION RECOGNIZED AS EXEMPT FROM FEDERAL INCOME TAX UNDER INTERNAL REVENUE CODE ("IRC") SECTION 501(C)(3) AND IS PART OF THE FAMILY OF HEALTHPARTNERS ORGANIZATIONS (HEALTHPARTNERS). FOUNDED IN 1957, HEALTHPARTNERS IS AN INTEGRATED HEALTH CARE ORGANIZATION, PROVIDING HEALTH CARE SERVICES AND HEALTH PLAN FINANCING AND ADMINISTRATION. HEALTHPARTNERS' MISSION IS TO IMPROVE HEALTH AND WELL-BEING IN PARTNERSHIP WITH OUR MEMBERS, PATIENTS, AND COMMUNITY. HEALTHPARTNERS SEEKS TO TRANSFORM HEALTH CARE THROUGH A RELENTLESS FOCUS ON THE TRIPLE AIM - PROVIDING EXCEPTIONAL EXPERIENCE FOR THE INDIVIDUAL, IMPROVING THE HEALTH OF THE POPULATION, AND MAINTAINING AFFORDABILITY. HEALTHPARTNERS, INC. (HPI) IS A MINNESOTA NONPROFIT CORPORATION AND LICENSED HEALTH MAINTENANCE ORGANIZATION (HMO) RECOGNIZED AS EXEMPT FROM FEDERAL INCOME TAX UNDER INTERNAL REVENUE CODE (IRC) SECTION 501(C)(4) AND IS THE PARENT ENTITY OF HEALTHPARTNERS. HEALTHPARTNERS INCLUDES AN ARRAY OF TAX-EXEMPT AND TAXABLE ORGANIZATIONS. A COMPLETE LISTING OF ALL ORGANIZATIONS WITHIN HEALTHPARTNERS, AND THE RELATIONSHIP BETWEEN THEM, CAN BE FOUND ON SCHEDULE R WITHIN THIS 990 RETURN. DETAILED INFORMATION ABOUT THE COMMUNITY BENEFIT ACTIVITIES AND ACCOMPLISHMENTS OF EACH TAX-EXEMPT ORGANIZATION CAN BE FOUND IN THE INDIVIDUAL FORM 990 RETURN FOR THAT ORGANIZATION. HPI IS THE PARENT ENTITY OF PARK NICOLLET HEALTH SERVICES (PNHS), WHICH IS A MINNESOTA NONPROFIT CORPORATION RECOGNIZED AS EXEMPT FROM FEDERAL INCOME TAX UNDER IRC SECTION 501(C)(3). PNHS IS THE SOLE CORPORATE MEMBER OF HUTCHINSON. HUTCHINSON CONSISTS OF A 66-LICENSED BED HOSPITAL, FOUR PROVIDER-BASED CLINICS (CANCER, ORTHOPEDIC, MENTAL HEALTH, AND MULTI-SPECIALTY) AND ONE RURAL HEALTH CLINIC. IT IS DESIGNATED A LEVEL 4 TRAUMA HOSPITAL AND HAS MEDICAL STAFF IN A VARIETY OF SPECIALTIES, INCLUDING FAMILY MEDICINE, INTERNAL MEDICINE, PEDIATRICS, OB/GYN WITH A LEVEL 1 NURSERY, GENERAL SURGERY, ORTHOPEDICS, OTOLARYNGOLOGY, MENTAL HEALTH, EMERGENCY MEDICINE, HOSPITAL MEDICINE, NEUROLOGY, ONCOLOGY, UROLOGY, CARDIOLOGY, RADIOLOGY, INFECTIOUS DISEASE, PULMONOLOGY, RHEUMATOLOGY, PODIATRY, NEPHROLOGY, AND PATHOLOGY. CHARITY CARE: CHARITY CARE IS DEFINED AS THE COST OF CARE DELIVERED TO PATIENTS WHO ARE WILLING, BUT UNABLE TO PAY FOR THE SERVICES THEY RECEIVE. THIS INCLUDES PATIENTS WHOSE CHARGES ARE FORGIVEN OR REDUCED BECAUSE OF INABILITY TO PAY; PATIENTS WHO ARE UNABLE TO PAY THE BALANCE LEFT BY ANY PAYER; AND PATIENTS FOR WHOM UNUSUAL CIRCUMSTANCES, OR SPECIAL FINANCIAL HARDSHIP, WARRANT SPECIAL CONSIDERATION. HUTCHINSON PROVIDED $1,824,000 IN FREE OR DISCOUNTED CARE TO LOW INCOME AND UNINSURED PATIENTS IN 2024. GOVERNMENT-SPONSORED MEANS TESTED HEALTH CARE: HUTCHINSON PROVIDED INPATIENT AND OUTPATIENT CARE, INCLUDING EMERGENCY DEPARTMENT SERVICE TO MEDICAID PATIENTS. A SHORTFALL IS CREATED WHEN PAYMENTS RECEIVED FOR THESE SERVICES ARE LESS THAN THE COST OF PROVIDING THE SERVICE. HUTCHINSON HAD A SHORTFALL OF $5,652,000 IN 2024. COMMUNITY BENEFIT TO THE COMMUNITY: HUTCHINSON WORKED IN COLLABORATIVE PARTNERSHIP WITH THE COMMUNITY TO IMPROVE HEALTH AND WELL-BEING. 1. COMMUNITY HEALTH SERVICES: HUTCHINSON CONVENED AND PARTICIPATED IN COMMUNITY-BASED COLLABORATIVE EFFORTS TO IMPROVE ACCESS TO COMMUNITY AND MENTAL HEALTH SERVICES, INCLUDING: HUTCHINSON HELD FOUR AMERICAN RED CROSS BLOOD DRIVES IN 2024, WITH 113 UNITS OF BLOOD COLLECTED. THE VOLUNTEER MATCH PROGRAM IS ONE WAY HUTCHINSON LEADS IN PROMOTING THE HEALTH BENEFITS OF INDIVIDUALS WHO VOLUNTEER WHILE ALSO SUPPORTING THE IMPORTANT WORK BEING DONE IN OUR COMMUNITIES. FOR EVERY EMPLOYEE WHO VOLUNTEERS AT LEAST 25 HOURS PER YEAR WITH AN ELIGIBLE ORGANIZATION, HUTCHINSON MAKES A $200 DONATION TO THAT ORGANIZATION. FOURTEEN APPLICATIONS WERE PROCESSED IN 2024 FOR A TOTAL OF $2,800 DONATED TO COMMUNITY ORGANIZATIONS. MENTAL HEALTH HELP LINE: 24-HOUR MENTAL HEALTH EMERGENCY PHONE-IN SERVICE STAFFED BY HUTCHINSON'S MENTAL HEALTH PROFESSIONALS SERVING GREATER MINNESOTA. STAFF TIME DEDICATED TO THIS SERVICE IN 2024 TOTALED 68 HOURS. 2. HEALTH PROFESSIONS EDUCATION: HUTCHINSON COORDINATED AND SUPPORTED CLINICAL HOURS FOR NURSING/CLINICAL UNDERGRAD STUDENTS FOR 119 STUDENTS, PROVIDING 1,214 HOURS OF STAFF TIME. STAFF PROVIDED 495 HOURS OF TIME AS PRECEPTORS TO TEN STUDENT PROFESSIONAL INTERNS IN MEDICAL FIELDS. 3. FINANCIAL CONTRIBUTIONS: HUTCHINSON DONATED A TOTAL OF $13,550 IN 2024 TO THE ORGANIZATIONS LISTED BELOW. EACH INSTANCE OF FINANCIAL SUPPORT MEETS A HEALTH-RELATED NEED. IN ADDITION, HUTCHINSON AWARDED $4,500 IN SCHOLARSHIPS TO SENIORS IN HIGH SCHOOL OR COLLEGE STUDENTS PURSUING A DEGREE IN A HUMAN HEALTH RELATED FIELD. RELAY FOR LIFE ELLSWORTH CEMETERY MCLEOD COUNTY FOOD SHELF MEALS ON WHEELS BACKPACK PROGRAM COMMON CUP FOOD FOR KIDS HABITAT FOR HUMANITY MCLEOD ALLIANCE FOR VICTIMS DA EQUAL ACCESS INC HUTCHINSON HEALTH FOUNDATION CHRIST THE KING 4. COMMUNITY BUILDING ACTIVITIES: HUTCHINSON PROVIDES LEADERSHIP AND PARTICIPATES IN A NUMBER OF STRATEGIC COMMUNITY COLLABORATIONS AND INITIATIVES, INCLUDING: HUTCH CONNECTS: A COMMUNITY-LED MOVEMENT AIMED TO IMPROVE THE HEALTH OF THE COMMUNITY THROUGH IMPLEMENTING PLANS AND ACTIVITIES THAT INCREASE SOCIAL CONNECTEDNESS IN HUTCHINSON. PARTICIPATION INCLUDES PROVIDING STAFF AND FINANCIAL RESOURCES TO SUPPORT PROGRAM INITIATIVES. HUTCHINSON PARTICIPATED IN COMMUNITY-BUILDING ACTIVITIES THAT SUPPORTED ECONOMIC DEVELOPMENT, EMERGENCY PREPAREDNESS, LEADERSHIP DEVELOPMENT, COALITION BUILDING, HEALTH IMPROVEMENT ADVOCACY AND WORKFORCE DEVELOPMENT. MEALS ON WHEELS: WITH COMMUNITY VOLUNTEERS, HUTCHINSON LEADS THE EFFORT TO MAKE SURE PEOPLE IN THE COMMUNITY RECEIVE NUTRITIOUS MEALS AND THE HUMAN CONNECTION THEY NEED TO HELP THEM LIVE INDEPENDENTLY. TIGERPATH PROGRAM: THE PROGRAM LED BY HUTCHINSON HIGH SCHOOL FOCUSES ON WHAT STUDENTS LIKE TO DO AND WHAT THEY ARE GOOD AT TO GUIDE EDUCATION AND CAREER CHOICES. HUTCHINSON PARTICIPATES ON THE COMMITTEE TO HELP PLAN AND GUIDE STUDENT EVENTS AND ACTIVITIES OFFERED BY TIGERPATH TO AID IN DEVELOPING STUDENTS FOR FUTURE HEALTH CARE CAREERS. CHAD GREENWAY DAY TO REACH FOOTBALL CAMP, FOR YOUNG FOOTBALL PLAYERS AND ATHLETES, IS DESIGNED TO HELP THEM LEARN NOT ONLY FOOTBALL SKILLS, BUT LIFE SKILLS AS WELL. HUTCHINSON PROVIDED AN ACTIVITY AND INFORMATION ON MENTAL WELL-BEING. WISE AND WELL NEWSLETTER THAT IS MAILED AND EMAILED THAT PROVIDES HUTCHINSON'S DIABETES EDUCATION AND CARDIAC REHAB PATIENTS WITH EDUCATIONAL INFORMATION RELATED TO THEIR DISEASES. PRE-DIABETES CLASSES ARE OFFERED TO HELP PATIENTS LEARN HEALTHY EATING AND EXERCISE TIPS AND ASSIST THEM IN MAKING LIFESTYLE CHANGES TO DELAY OR EVEN PREVENT THE ONSET OF TYPE 2 DIABETES. NAMI MCLEOD COUNTY IS A GROUP OF INDIVIDUALS WHO SEE THE NEED FOR ADDITIONAL MENTAL HEALTH AND SUPPORT SERVICES IN OUR COMMUNITY. HUTCHINSON PROVIDED IN-KIND HEALTH AND WELL-BEING STAFF TIME TO ASSIST THE GROUP ON BECOMING AN AFFILIATE OF THE NATIONAL ALLIANCE FOR MENTAL ILLNESS. MEADA OF MCLEOD COUNTY IS A COALITION TO REDUCE SUBSTANCE ABUSE AND INCREASE DRUG AWARENESS FOR RESIDENTS OF MCLEOD COUNTY. A REPRESENTATIVE FROM THE HUTCHINSON'S MENTAL HEALTH CLINIC PARTICIPATES ON THE COALITION. HUTCHINSON BICYCLE/PEDESTRIAN ADVISORY COMMITTEE PROVIDES ADVICE ON ISSUES RELATED TO BICYCLING AND PEDESTRIAN NEEDS IN THE CITY OF HUTCHINSON, ADVOCATES FOR PEDESTRIAN AND BICYCLING INFRASTRUCTURE IMPROVEMENTS AND PROMOTES RECREATIONAL WALKING AND BICYCLING IN THE CITY. BELONGING BEGINS WITH US COMMITTEE IS A COMMUNITY-LED MOVEMENT AIMED AT HAVING ALL HUTCHINSON RESIDENTS FEEL SAFE, WELCOMED, SEEN, AND INCLUDED REGARDLESS OF A THEIR BACKGROUND. PARTICIPATION INCLUDES PROVIDING STAFF AND FINANCIAL RESOURCES TO SUPPORT PROGRAM INITIATIVES. COMMUNITY HEALTH ADVOCACY TEAM IS A COLLABORATION BETWEEN MEEKER, MCLEOD & SIBLEY COUNTIES TO ASSESS PUBLIC HEALTH NEEDS AND RESOURCES, PRIORITIZE HEALTH ISSUES AND DEVELOP WAYS TO IMPROVE HEALTH AND WELLBEING, WHILE EMPOWERING COMMUNITIES TO CREATE SUSTAINABLE AND EQUITABLE SOLUTIONS. 5. COMMUNITY BENEFIT OPERATIONS: HUTCHINSON STAFF'S TIME TO COLLECT, ANALYZE AND REPORT COMMUNITY BENEFITS FOR 2024 WAS APPROXIMATELY 40 HOURS. |
| FORM 990, PART VI, SECTION A, LINE 6 | PARK NICOLLET HEALTH SERVICES IS THE SOLE CORPORATE MEMBER OF HUTCHINSON HEALTH. |
| FORM 990, PART VI, SECTION A, LINE 7A | HUTCHINSON HEALTH'S BOARD CONSISTS OF TWELVE VOTING DIRECTORS: FIVE COMMUNITY DIRECTORS SELECTED BY THE BOARD AND APPOINTED BY THE MEMBER, FOUR PHYSICIAN DIRECTORS APPOINTED BY THE MEDICAL GROUP THAT PROVIDES NEARLY ALL PRIMARY CARE STAFFING TO THE HOSPITAL, THREE MEMBER DIRECTORS APPOINTED BY PARK NICOLLET HEALTH SERVICES THE SOLE VOTING MEMBER; AND, TWO EX OFFICIO NON-VOTING DIRECTORS: THE CHIEF OF THE MEDICAL STAFF AND THE PRESIDENT. NO MORE THAN FIVE OF THE TWELVE DIRECTORS MAY BE HEALTH CARE PROFESSIONALS CREDENTIALED TO PROVIDE SERVICES AT THE HOSPITAL, AND NO EMPLOYEES OF THE HOSPITAL CAN SERVE AS A MEMBER OF THE BOARD UNLESS THEY ARE HEALTH CARE PROFESSIONALS CREDENTIALED TO PROVIDE SERVICES AT THE HOSPITAL OR ANY OTHER HEALTH CARE FACILITY OWNED BY THE HOSPITAL. |
| FORM 990, PART VI, SECTION A, LINE 7B | PARK NICOLLET HEALTH SERVICES, THE SOLE CORPORATE MEMBER, APPROVES THE AMENDMENTS TO THE ARTICLES OF INCORPORATION AND BYLAWS, APPOINTMENT AND REMOVAL OF THE PRESIDENT SUBJECT TO AGREEMENT OF AND/OR CONSULTATION WITH THE BOARD OF DIRECTORS, APPROVAL OF COMMUNITY DIRECTORS RECOMMENDED BY THE BOARD, APPROVAL OF MERGER OR DISSOLUTION OR SALE OR LEASE OF ALL OR SUBSTANTIALLY ALL ASSETS, APPROVAL OF BORROWING AND UNBUDGETED CAPITAL EXPENDITURES IN EXCESS OF CERTAIN LIMITS, APPROVAL OF AFFILIATIONS OR JOINT VENTURES WITH OTHER ORGANIZATIONS, AND, APPROVAL OF STRATEGIC AND OPERATING PLANS. |
| FORM 990, PART VI, SECTION B, LINE 11B | HUTCHINSON HEALTH'S 990 RETURN HAS A COMPREHENSIVE REVIEW PROCESS THAT IS FOLLOWED BEFORE IT IS PRESENTED TO THE GOVERNING BODY OF THE HOSPITAL. THE REVIEW PROCESS INCLUDES A LAYERED REVIEW BY THE TAX DEPARTMENT, THE MANAGEMENT TEAM, THE ORGANIZATION'S INTERNAL LEGAL DEPARTMENT AND OUTSIDE INDEPENDENT ACCOUNTANTS. EACH ONE OF THOSE AREAS HAS AN OPPORTUNITY TO REVIEW, ASK QUESTIONS AND MAKE COMMENTS BACK TO THE TAX DEPARTMENT BEFORE THE FORM 990 IS COMPLETED AND PRESENTED TO THE GOVERNING BODY. HUTCHINSON HEALTH MAKES AVAILABLE, TO THE FINANCE AND AUDIT COMMITTEE OF THE BOARD OF DIRECTORS AND TO THE FULL BOARD OF DIRECTORS, A COPY OF THE 990 FOR REVIEW AND COMMENT PRIOR TO THE FILING OF THE 990 RETURN. |
| FORM 990, PART VI, SECTION B, LINE 12C | HUTCHINSON HEALTH'S BOARD MONITORS POTENTIAL CONFLICTS OF INTEREST ON THE PART OF ITS BOARD MEMBERS, PRINCIPAL OFFICERS, MEMBERS OF COMMITTEES WITH BOARD DELEGATED POWERS, AND KEY EMPLOYEES ("COVERED PERSONS") BY MAINTAINING A CONFLICT OF INTEREST POLICY. UNDER THE POLICY, COVERED PERSONS ANNUALLY ARE PROVIDED WITH A COPY OF THE POLICY AND ASKED TO COMPLETE A QUESTIONNAIRE IDENTIFYING ANY POTENTIAL CONFLICTS OF INTERESTS. THE GENERAL COUNSEL OF HEALTHPARTNERS REVIEWS THE QUESTIONNAIRE RESPONSES AND DEVELOPS A REPORT DETAILING ANY POTENTIALLY MATERIAL CONFLICTS FOR THE PRESIDENT AND CHAIR OF THE BOARD. A VERBAL SUMMARY IS ALSO GIVEN TO THE FULL BOARD OR APPROPRIATE COMMITTEE ENDING WITH A REMINDER TO COVERED PERSONS OF THE POLICY'S MANDATE THAT EACH PERSON IS OBLIGATED TO DISCLOSE ANY NEW POTENTIAL CONFLICTS AS THEY MAY ARISE THROUGHOUT THE YEAR. BOARD AGENDAS AND EXECUTIVE DECISIONS ARE MONITORED IN RELATION TO THIS POLICY. IF A DISCLOSED CONFLICT OF INTEREST IMPACTS AN AGENDA ITEM OR DECISION, THE COVERED PERSON WOULD BE EXCLUDED FROM VOTING AND MAY BE EXCLUDED FROM RECEIVING INFORMATION AND/OR PARTICIPATING IN DELIBERATIONS, DEPENDING ON THE CIRCUMSTANCES. |
| FORM 990, PART VI, SECTION B, LINE 15 | HUTCHINSON HEALTH'S OFFICERS, DIRECTORS AND HIGHLY COMPENSATED ARE EMPLOYED BY PARK NICOLLET HEALTH SERVICES (PNHS), GROUP HEALTH, INC (GHI), RELATED ORGANIZATIONS OR BY THE HOSPITAL. PNHS, GHI AND THE HOSPITAL HAVE AN ANNUAL PROCESS TO REVIEW THE MARKET COMPARABILITY OF THE TOTAL COMPENSATION OF THE HOSPITAL PRESIDENT AND OTHER OFFICERS. EVERY THREE YEARS, THE INDEPENDENT COMPENSATION COMMITTEE OF THE GHI BOARD OF DIRECTORS (THE "COMMITTEE"), RETAINS AN EXTERNAL COMPENSATION EXPERT TO CONDUCT AN EXTENSIVE MARKET COMPARABILITY REVIEW FOR ALL OFFICERS OF THE ORGANIZATION. THE REVIEW INCLUDES ALL COMPONENTS OF TOTAL COMPENSATION: BASE SALARY, ANNUAL INCENTIVES, BENEFITS AND PERQUISITES. THE MARKET SURVEY RESULTS ARE PRESENTED TO, REVIEWED BY AND APPROVED BY THE APPROPRIATE COMMITTEE. BASED ON THIS DATA, EITHER THE COMPENSATION COMMITTEE OF GHI OR THE HOSPITAL HUMAN RESOURCES COMMITTEE (THE "COMMITTEES") DETERMINE MINIMUM AND MAXIMUM COMPENSATION RANGES FOR EACH EMPLOYED OFFICER. IN INTERIM YEARS, GHI'S HUMAN RESOURCES STAFF, UNDER THE COMMITTEE'S DIRECTION, UPDATES CHANGES IN THE SALARY STRUCTURE BASED ON THE SAME INDEPENDENT STUDIES PERFORMED BY THE COMPENSATION CONSULTANT FOR THE COMMITTEE. FOR CERTAIN POSITIONS FULL INDEPENDENT REVIEWS ARE PERFORMED TO SET SALARY RANGES BASED ON THE COMPEPETITIVE MARKET DATA SPECIFIC TO THOSE POSITIONS. THE COMMITTEES REVIEWS AND APPROVES EACH YEAR'S COMPENSATION RESULTS. IN ALL CASES, THE COMMITTEES' MEMBERS COMPLETE AN ANNUAL CONFLICT OF INTEREST SURVEY TO ASSURE THE COMPENSATION COMMITTEE MEMBERS' INDEPENDENCE AND THIS IS UPDATED AT ANY MEETING AT WHICH DECISIONS ARE BEING MADE. STAFF (OTHER THAN THE SECRETARY TO THE BOARD) ARE NOT IN THE ROOM DURING DELIBERATIONS OR VOTE INCLUDING EXECUTIVE SESSIONS, AND CONTEMPORANEOUS MINUTES ARE KEPT. WITH HUTCHINSON HEALTH'S BOARD OF DIRECTORS INPUT, THE PRESIDENT OF METHODIST HOSPITAL CONDUCTS THE ANNUAL PERFORMANCE REVIEW AND, WITH THE HOSPITAL'S BOARD APPROVAL, DETERMINES THE COMPENSATION OF THE HOSPITAL PRESIDENT. THE HOSPITAL PRESIDENT HAS BEEN DELEGATED THE ACCOUNTABILITY TO CONDUCT ANNUAL PERFORMANCE REVIEWS AND DETERMINE THE COMPENSATION OF ALL THE HOSPITAL EMPLOYED OFFICERS WITHIN THE COMPENSATION RANGES DETERMINED BY THE COMMITTEES. ANY EXCEPTIONS TO COMPENSATION IN EXCESS OF THE APPROVED RANGES ARE APPROVED BY THE HOSPITAL HUMAN RESOURCES COMMITTEE. TOTAL COMPENSATION IS APPROPRIATELY DOCUMENTED ON THE FORM 990 AND ON THE EMPLOYEE'S W-2. |
| FORM 990, PART VI, SECTION C, LINE 19 | HUTCHINSON HEALTH'S FINANCIAL STATEMENTS AND 990 RETURNS ARE MADE AVAILABLE TO ANY PERSON WHO REQUESTS THE INFORMATION. HUTCHINSON HEALTH'S ARTICLES OF INCORPORATION ARE AVAILABLE TO ANY PERSON WHO REQUESTS THE INFORMATION THROUGH THE SECRETARY OF STATE'S OFFICE. |
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