4A (Expenses $ 4893675 including grants of $ 994) (Revenue $ 3863069)
MERCY HOSPITAL - INDEPENDENCE CLOSED ITS DOORS OCTOBER 9TH, 2015. THE HOSPITAL PROVIDED BASIC PRIMARY CARE SERVICES WHICH INCLUDED INPATIENT ACUTE, SWING BED, EMERGENCY ROOM, GENERAL SURGERY, OUTPATIENT DIAGNOSTIC, OUTPATIENT PHYSICAL THERAPY AND HOME HEALTH SERVICES. THERE WERE APPROXIMATELY 85 DISCHARGES, 1,828 EMERGENCY ROOM VISITS, 130 SURGERIES, 2,653 HOME HEALTH VISITS AND NUMEROUS OUTPATIENT PROCEDURES. NECESSARY TERTIARY CARE IS TRANSPORTED OUT OF THE COMMUNITY TO A LARGER HOSPITAL.

4B (Expenses $ 21982008 including grants of $ 3170) (Revenue $ 32571171)
MERCY HOSPITAL - FORT SCOTT - HEALTHCARE SERVICES PROVIDED ARE ESSENTIAL TO THE HEALTH AND WELL-BEING OF THE INDIVIDUALS RESIDING IN THE CITY OF FORT SCOTT AND BOURBON COUNTY. THE HOSPITAL PROVIDES BASIC PRIMARY CARE SERVICES WHICH INCLUDE; INPATIENT ACUTE, SWING BED, EMERGENCY ROOM, GENERAL SURGERY, OUTPATIENT DIAGNOSTIC, OUTPATIENT PHYSICAL THERAPY AND HOME HEALTH SERVICES. THE COMMUNITY NEED IS REPRESENTED BY THE APPROXIMATE 1409 DISCHARGES, 9525 EMERGENCY ROOM VISITS, 1818 SURGERIES, 7440 HOME HEALTH VISITS AND NUMEROUS OUTPATIENT PROCEDURES. NECESSARY TERTIARY CARE IS TRANSPORTED OUT OF THE COMMUNITY TO A LARGER HOSPITAL.

4C (Expenses $ 9235595 including grants of $ 5805) (Revenue $ 7644325)
MERCY PHYSICIAN GROUP - FORT SCOTT / INDEPENDENCE - LOCAL PHYSICIAN SERVICES ARE ESSENTIAL TO THE HEALTH AND WELL-BEING OF THE COMMUNITIES. THE INTEGRATED PHYSICIAN GROUP CONSISTS OF THE FOLLOWING MIX OF SPECIALTIES: FAMILY PRACTICE, INTERNAL MEDICINE, OB/GYN, GENERAL SURGERY, ORTHOPEDICS AND ADVANCED PRACTICE PROVIDERS.

FORM 990, SCHEDULE H, PART V, SECTION B, LINE 5
TO BETTER UNDERSTAND THE HEALTH STATUS, BEHAVIORS AND NEEDS OF THE POPULATIONS THEY SERVE, MERCY HOSPITAL FORT SCOTT REACHED OUT TO COMMUNITY STAKEHOLDERS, SOUTHEAST KANSAS MULTI-COUNTY HEALTH DEPARTMENT PUBLIC NURSES, THE VULNERABLE AND THE UNDERSERVED TO COLLABORATE ON A COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA). THE NEEDS ASSESSMENT PROCESS INVOLVED REVIEW OF BOTH QUANTITATIVE AND QUALITATIVE DATA IN ORDER TO PLAN AND ACT UPON PRIORITY COMMUNITY HEALTH NEEDS. THE VOICES OF THE PEOPLE OF BOURBON COUNTY, PARTICULARLY THOSE IN POVERTY AND VULNERABLE POPULATIONS, WERE CENTRAL TO THE HEALTH NEEDS ASSESSMENT. MERCY HOSPITAL FORT SCOTT GATHERED COMMUNITY INPUT THROUGH A FOCUS GROUP LOCATED IN FORT SCOTT CITY HALL. THERE WAS REPRESENTATION OF THE MEDICALLY UNDERSERVED AND LOW-INCOME POPULATIONS. COMMUNITY PARTNERS ATTENDING AND ADVOCATING ON THEIR CLIENTS BEHALF CONSISTED OF PUBLIC HEALTH, LOCAL FOOD PANTRY, LOCAL COALITION, MENTAL HEALTH, SCHOOL DISTRICT, AND MEDICAID CASE MANAGERS FOR PEOPLE WITH DISABILITIES. EACH MEMBER OF THE GROUP PROVIDED MEANINGFUL AND REFLECTIVE INFORMATION. THIRTEEN INDIVIDUALS IN THE BOURBON COUNTY AREA EXPRESSED INTEREST IN PARTICIPATING IN THE FOCUS GROUP. ALL 13 OF THE INTERESTED INDIVIDUALS WERE ELIGIBLE. OF THE INTERESTED PEOPLE; THREE WERE MEN AND 10 WERE WOMEN; 1 WAS A YOUNG ADULT (26-36 YEARS OLD), NINE WERE MIDDLE AGED ADULTS (37-64 YEARS OLD), THREE WERE OLDER ADULTS (65-84 YEARS OLD); FIVE HAD PRIVATE INSURANCE COVERAGE, ONE HAD MEDICAID COVERAGE, TWO HAD MEDICARE COVERAGE, ONE HAD BOTH MEDICAID AND MEDICARE COVERAGE, ONE HAD BOTH MEDICARE AND PRIVATE COVERAGE, THREE HAD NO INSURANCE COVERAGE; AND TWO HAD SOUGHT BEHAVIORAL HEALTH CARE SERVICES IN THE PAST YEAR. A TOTAL OF 7 PARTICIPANTS SHOWED FOR THE FOCUS GROUP, ALL WHITE, SIX FEMALES, ONE MALE, FOUR WITH PRIVATE INSURANCE, TWO WITH MEDICARE COVERAGE AND ONE THAT WAS UNINSURED IN ATTENDANCE. SUFFICIENT REPRESENTATION OF MEDICAID, LOW INCOME, AND VULNERABLE POPULATIONS WERE REPRESENTED. EVERY ATTEMPT WAS MADE TO HAVE AT LEAST 2 MEN IN ATTENDANCE. ONE GENTLEMAN HAD A MEDICAL EMERGENCY AND ANOTHER WAS SICK ON THE DAY OF THE FOCUS GROUP MEETING. IN ORDER TO ALIGN OUR COMMUNITY NEEDS WITH MERCY HOSPITAL FORT SCOTTS STRATEGIC PLAN AND MISSION, A HOSPITAL LEVEL FOCUS GROUP WAS CONDUCTED. HOSPITAL, CLINIC, HEALTH FOR LIFE, HOME HEALTH, HOSPICE, AND PHARMACY LEADERSHIP PARTICIPATED AND PROVIDED FEEDBACK. PRIMARY AND SECONDARY DATA WERE PRESENTED. THE GROUP WAS TASKED TO PRIORITIZE THE HEALTH INDICATORS BASED ON LEVEL OF COMMUNITY CONCERN AND POTENTIAL TO COLLABORATE AROUND THE HEALTH ISSUE. FOR THIS COMMUNITY HEALTH NEEDS ASSESSMENT, WE DID NOT SOLICIT WRITTEN COMMENTS. WE DID NOT HAVE A PROCESS YET IN PLACE. SINCE THE COMPLETION OF THE CHNA, WE HAVE BEEN ABLE TO IDENTIFY A PROCESS FOR SOLICITING WRITTEN COMMENTS FROM THE COMMUNITY IN THE FORM OF A PERCEPTION SURVEY. THIS PERCEPTION SURVEY WILL BE UTILIZED TO EVALUATE THE PROGRESS OF OUR CURRENT CHIP AND WILL BE DEVELOPED FOR THE UPCOMING CHNA. FORM 990, SCHEDULE H, PART V, SECTION B, LINE 6B MERCY'S CHNA WAS CONDUCTED WITH THE SOUTHEAST KANSAS MULTI COUNTY HEALTH DEPARTMENT.

FORM 990, SCHEDULE H, PART V, SECTION B, LINE 11
"MERCY HOSPITAL FORT SCOTT IS ADDRESSING THE SIGNIFICANT NEEDS IDENTIFIED IN THE MOST RECENT CHNA THROUGH SYSTEMS, ENVIRONMENTAL, AND POLICY CHANGE IN THE PLACES WHERE OUR COMMUNITY MEMBERS SPEND MOST OF THEIR TIME. OUR GOAL IS TO CREATE SUSTAINABLE PROGRAMS THAT WILL HAVE THE LARGEST IMPACT. ""THE ENVIRONMENTS WHERE WE LIVE, LEARN, WORK, AND PLAY AFFECT ACCESS TO HEALTHY FOOD AND OPPORTUNITIES FOR PHYSICAL ACTIVITY WHICH, ALONG WITH GENETIC FACTORS AND PERSONAL CHOICES, SHAPE HEALTH AND RISK OF OVERWEIGHT AND OBESITY"" (INSTITUTE, 2016). THE HEALTH NEEDS THAT HAVE BEEN IDENTIFIED AS PRIORITIES ARE: DIABETES, CARDIOVASCULAR DISEASE, & LUNG DISEASE. OTHER IDENTIFIED NEEDS NOT BEING ADDRESSED AND WHY NOT: MENTAL ILLNESS MERCY HOSPITAL FORT SCOTT ACKNOWLEDGES THE NEEDS ASSOCIATED WITH PERSONS WHO HAVE BEEN DIAGNOSED WITH MENTAL ILLNESS. WE DO NOT HAVE THE RESOURCES TO ADEQUATELY ADDRESS THIS NEED IN THE HEALTHCARE SETTING. WE HAVE WORKING RELATIONSHIPS WITH MENTAL HEALTH PROVIDERS AND COUNSELORS WHO ARE ABLE TO ADDRESS THIS NEED IN THE COMMUNITY SETTING. THE LOCAL SOUTHEAST KANSAS MENTAL HEALTH FACILITY IS GOVERNMENT-FUNDED, ACCEPTS MEDICAID, AND HAS A SLIDING SCALE FOR THOSE WHO ARE UNINSURED OR LIVING IN POVERTY. MATERNAL CHILD HEALTH OUR MOTHER AND INFANTS PROGRAM BRING A MUCH NEEDED SERVICE TO THE COMMUNITY TO ENSURE EXPECTING MOTHERS RECEIVE QUALITY PRENATAL CARE, EDUCATION, AND SUPPORT. THE PROGRAM TARGETS THE VULNERABLE AND UNDERSERVED. SECONDARY DATA INDICATE OUR COMMUNITY HAS A LOWER RATE OF WOMEN RECEIVING INADEQUATE PRENATAL CARE WHEN COMPARED TO STATE AND NATIONAL PERCENTAGES. MERCY WILL CONTINUE TO ADDRESS ISSUES THROUGH COLLABORATIVE WORK REGARDING TEENAGE PREGNANCY BUT THERE ARE LIMITATIONS AS A CATHOLIC HEALTH SYSTEM AND MERCY WILL NOT TAKE A LEAD ROLE ON THIS ISSUE. CANCER: CURRENTLY, THERE ARE SEVERAL COMMUNITY ORGANIZATIONS WHO ARE ADDRESSING THIS INDICATOR. MERCY WILL CONTINUE OUR COLLABORATION WITH THESE ORGANIZATIONS AS WELL AS CONTINUE INTERNAL EFFORTS THROUGH HOME HEALTH AND PALLIATIVE CARE PROGRAMS. MERCY HOSPITAL FORT SCOTT LEADERS FELT OUR CONTINUED INVOLVEMENT WAS IMPORTANT BUT THE ISSUES OF DIABETES, CARDIOVASCULAR DISEASE AND LUNG DISEASE DEMANDED MORE OF OUR FOCUS AT THIS TIME. FORM 990, SCHEDULE H, PART V, SECTION B, LINES 16A, 16B, & 16C A PLAIN LANGUAGE SUMMARY OF THE FINANCIAL ASSISTANCE POLICY IS AVAILABLE AT https://www.mercy.net/mercy-financial-assistance."

FORM 990, SCHEDULE H, PART V, SECTION B, LINE 22
ELIGIBILITY GUIDELINES FOR CHARITY CARE DISCOUNTS THE FEDERAL POVERTY GUIDELINES FOR INCOME ARE THE BASIS FOR DETERMINING ELIGIBILITY FOR CHARITY CARE DISCOUNTS. FOR EXAMPLE, INDIVIDUALS WITH INCOMES BELOW 100% OF THE FEDERAL POVERTY GUIDELINES WILL BE ELIGIBLE FOR FREE CARE. INDIVIDUALS WITH INCOMES GREATER THAN 100% OF THE FEDERAL POVERTY GUIDELINES MAY BE ELIGIBLE FOR CARE AT DISCOUNTED RATES DEPENDING ON THEIR INCOME LEVEL AND/OR THE AMOUNT DUE TO THE HOSPITAL. TO DETERMINE THE MAXIMUM AMOUNTS THAT CAN BE CHARGED TO FAP-ELIGIBLE INDIVIDUALS FOR EMERGENCY OR OTHER MEDICALLY NECESSARY CARE, THE HOSPITAL FACILITY USES AMOUNTS GENERALLY BILLED TO INDIVIDUALS WHO HAVE INSURANCE COVERING SUCH CARE. THE HOSPITAL USES A LOOK BACK METHOD THAT CONSIDERS DISCOUNTS ALLOWED TO MEDICARE AND ALL PRIVATE HEALTH INSURERS. ADDITIONAL FINANCIAL ASSISTANCE AFTER APPROPRIATE DISCOUNTS HAVE BEEN APPLIED, ARRANGEMENTS MAY BE MADE FOR AN INTEREST-FREE MONTHLY PAYMENT PLAN. GENERALLY, NO PATIENT'S FINANCIAL RESPONSIBILITY WILL BE GREATER THAN 20% OF ANNUAL HOUSEHOLD INCOME. IT IS OUR GOAL TO WORK WITH OUR PATIENTS ON THEIR REMAINING LIABILITY.

Form 990, Schedule H, PART I, LINE 6A
THE ORGANIZATIONS COMMUNITY BENEFIT REPORT IS PREPARED BY ITS ULTIMATE PARENT ENTITY, MERCY HEALTH (EIN: 43-1423050). FORM 990, SCHEDULE H, PART I, LINE 7, COLUMN F TOTAL EXPENSES FROM FORM 990, PART IX, LINE 25, COLUMN (A) ARE $58,760,441. INCLUDED IN THIS AMOUNT WAS BAD DEBT EXPENSE (CHARGES) OF $2,537,158. EXPENSES FOR THE PURPOSE OF CALCULATING LINE 7, COLUMN (F) ARE $56,223,283.

FORM 990, SCHEDULE H, PART I, LINE 7G
THE ORGANIZATION DID NOT INCLUDE ANY PHYSICIAN CLINIC COSTS ON LINE 7G.

FORM 990, SCHEDULE H, PART II
"HEALTHY PEOPLE 2020 IS ADDRESSING SOCIAL DETERMINANTS BY INCLUDING SOCIAL AND PHYSICAL ENVIRONMENTS THAT PROMOTE GOOD HEALTH FOR ALL"" AS 1 OF 4 OVERARCHING GOALS FOR THE DECADE. IN ORDER TO ENSURE OUR COMMUNITY HAS OPPORTUNITIES TO MAKE HEALTHIER CHOICES WE ARE NOT ONLY MAKING ADVANCES IN HEALTH CARE, WE ARE ALSO WORKING IN A BROAD SPECTRUM OF AREAS WHERE ADVANCES ARE NEEDED; IN OUR COMMUNITY INFRASTRUCTURE, SCHOOLS, RESTAURANTS, GROCERY STORES, AND WORKSITES. MERCY HOSPITAL IS WORKING TO EXPLORE COMMON PRACTICES, ESTABLISH POLICIES THAT GIVE THE OPTION OF HEALTHY LIFESTYLE, AND TO ESTABLISH RELATIONSHIPS AND COLLABORATIONS AMONG COMMUNITY ORGANIZATIONS, BUSINESSES, AND GOVERNMENT. SPECIFICALLY, MERCY HOSPITAL IS ACTIVE IN THE FORT SCOTT AREA CHAMBER OF COMMERCE, THE FORT SCOTT VISIONING TEAM, TRANSIENT GUEST TAX, AND FOUNDATION BOARDS MEETINGS AMONG OTHERS. PARTICIPATION IN THE GROUPS ARE PRIMARILY TO FOCUS ON ECONOMIC DEVELOPMENT ISSUES THAT ARE IMPACTING OUR COMMUNITYS HEALTH AND SAFETY."

FORM 990, SCHEDULE H, PART III, SECTION A, LINE 2
TO DETERMINE THE AMOUNT OF BAD DEBT EXPENSE, AT COST, BAD DEBT EXPENSE ATTRIBUTABLE TO PATIENT ACCOUNTS WAS MULTIPLIED BY A RATIO OF COST TO CHARGES. THE RATIO OF COST TO CHARGES USED WAS BASED ON DETAILED COST ACCOUNT, WHERE AVAILABLE. WHERE COST ACCOUNTING IS NOT AVAILABLE, COST REPORT COST TO CHARGE RATIOS WERE UTILIZED.

FORM 990, SCHEDULE H, PART III, SECTION A, LINE 3
THE FILING ORGANIZATION DETERMINED THAT THE ESTIMATED AMOUNT OF BAD DEBT EXPENSE (AT COST) ATTRIBUTABLE TO PATIENTS ELIGIBLE UNDER THE ORGANIZATION'S CHARITY CARE POLICY IS $0. ALTHOUGH THE CHARITY CARE POLICY REQUIRES THE PARTICIPATION OF THE PATIENT REQUESTING ASSISTANCE, WE HAVE A PROCESS UNDER PRESUMPTIVE CHARITY TO ADDRESS ACCOUNTS FOR PATIENTS WHO DO NOT PROVIDE THE INFORMATION. WE BELIEVE THAT OUR CHARITY POLICY IS COMPREHENSIVE ENOUGH TO CAPTURE ALMOST ALL PATIENTS WHO QUALIFY FOR CHARITY CARE.

FORM 990, SCHEDULE H, PART III, SECTION A, LINE 4
"THE TEXT OF THE FOOTNOTE THAT IS INCLUDED IN MERCY HEALTH AND SUBSIDIARIES AUDITED FINANCIAL STATEMENTS THAT DESCRIBES BAD DEBT EXPENSE IS AS FOLLOWS: ""PATIENT ACCOUNTS RECEIVABLE THAT ARE DEEMED UNCOLLECTIBLE, INCLUDING THOSE PLACED WITH COLLECTION AGENCIES, ARE INITIALLY CHARGED AGAINST THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS IN ACCORDANCE WITH COLLECTION POLICIES OF THE HEALTH SYSTEM AND, IN CERTAIN CASES, ARE RECLASSIFIED TO CHARITY CARE IF DEEMED TO OTHERWISE MEET THE HEALTH SYSTEMS CHARITY CARE POLICY. THE PROVISION FOR UNCOLLECTIBLE RECEIVABLES IS BASED UPON MANAGEMENTS ASSESSMENT OF HISTORICAL AND EXPECTED NET COLLECTIONS CONSIDERING BUSINESS AND ECONOMIC CONDITIONS, TRENDS IN HEALTH CARE COVERAGE, AND OTHER COLLECTION INDICATORS. PERIODICALLY THROUGHOUT THE YEAR, MANAGEMENT ASSESSES THE ADEQUACY OF THE ALLOWANCE FOR UNCOLLECTIBLE RECEIVABLES BASED UPON THE PAYOR COMPOSITION AND AGING OF RECEIVABLES WITH CONSIDERATION OF THE HISTORICAL PAYMENT AND WRITE-OFF EXPERIENCE BY PAYOR CATEGORY. THE RESULTS OF THESE REVIEWS ARE THEN USED TO MAKE ANY MODIFICATIONS TO THE PROVISION FOR UNCOLLECTIBLE RECEIVABLES TO ESTABLISH AN APPROPRIATE ALLOWANCE FOR UNCOLLECTIBLE RECEIVABLES. AFTER SATISFACTION OF AMOUNTS DUE FROM INSURANCE, THE HEALTH SYSTEM FOLLOWS ESTABLISHED GUIDELINES FOR PLACING PAST-DUE PATIENT BALANCES WITH COLLECTION AGENCIES."""

FORM 990, SCHEDULE H, PART III, SECTION B, LINE 8
IT IS THE POSITION OF MERCY THAT 100% OF ANY SHORTFALL SHOULD BE TREATED AS COMMUNITY BENEFIT. THIS AMOUNT REPRESENTS COST OF PROVIDING SERVICES THAT REMAIN UNCOMPENSATED TO THE PROVIDER. THE UNREIMBURSED COSTS OF MEDICARE IS CALCULATED BY THE GROSS CHARGES NET OF THE COST TO CHARGE RATIO LESS ANY PAYMENTS, DEDUCTIONS OR REIMBURSEMENTS USING THE ANNUAL MEDICARE COST REPORT (CMS FORM 2552-96).

FORM 990, SCHEDULE H, PART III, SECTION C, LINE 9B
MERCYS COLLECTION POLICY PROVIDES THAT MERCY WILL PERFORM A REASONABLE COMMUNICATION AND/OR REVIEW OF PATIENT ACCOUNTS AS IT RELATES TO ANY SERVICE PROVIDED AT OUR FACILITIES BEFORE TURNING THE ACCOUNT TO BAD DEBT OR TAKING LEGAL ACTION FOR NONPAYMENT. MERCY ACTIVELY SCRUBS ACCOUNTS FOR PAYOR PLAN COVERAGES, INCLUDING MEDICAID. IN THE EVENT AN ACCOUNT IS TURNED TO COLLECTIONS, AND IS IDENTIFIED IN NEED OF FINANCIAL ASSISTANCE DUE TO CIRCUMSTANCE CHANGES, OR NOW REQUESTING ASSISTANCE, THE ACCOUNTS ARE RETURNED BY THE AGENCY AND CONSIDERED FOR CHARITY IF THE PATIENT PROVIDES THE REQUESTED INFORMATION. IF THE PATIENT FAILS TO RETURN THE INFORMATION, THE ACCOUNT WILL QUALIFY FOR COLLECTIONS. MERCY UTILIZES THE EXPERIAN TOOL TO ENHANCE THE ABILITY TO DETERMINE THE CHARITY QUALIFICATION PRIOR TO TURNING TO BAD DEBT; KNOWN AS PRESUMPTIVE CHARITY. MERCY WILL GRANT CHARITY IN SITUATIONS WHERE THERE HAS BEEN AN INABILITY TO OBTAIN INFORMATION FROM PATIENTS OR THE INFORMATION PROVIDED IS NOT COMPLETE ENOUGH TO MAKE A CHARITY DETERMINATION WHEN A PATIENT HAS SUBMITTED AN APPLICATION. IN ADDITION, MERCY UTILIZES THE SAME TOOL TO QUALIFY ACCOUNTS PER THE PRACTICE OF PRESUMPTIVE CHARITY PRIOR TO BAD DEBT PLACEMENT FOR BALANCES IN EXCESS OF $6,500. ALL ACCOUNT BALANCES RELATING TO ACCOUNTS IDENTIFIED BY THE HIGHER BALANCES WILL BE CONSIDERED AND FLAGGED FOR CHARITY IF THERE IS AN INABILITY TO PAY AFTER A RETURN FROM THE COLLECTION AGENCY AT APPROXIMATELY 120 DAYS. MERCY WILL PURSUE APPROPRIATE MEANS IN THE COLLECTION OF DELINQUENT ACCOUNTS FROM PATIENTS WITH AN ESTABLISHED ABILITY TO PAY OR AN UNWILLINGNESS TO COOPERATE IN VALIDATING ELIGIBILITY FOR FINANCIAL ASSISTANCE. THESE APPROPRIATE MEANS MAY INCLUDE LEGAL ACTION CONSISTENT WITH MERCY MISSION AND VALUES AFTER SENDING 3 MONTHLY STATEMENTS WITH THE FINAL NOTIFICATION; IF NO RESOLUTION THEY WILL BE TURNED TO COLLECTIONS. ADDITIONALLY, THEY MAY INCLUDE LIENS UPON REAL PROPERTY AND REASONABLE WAGE GARNISHMENTS. LEGAL ACTIONS WILL GENERALLY NOT INCLUDE BANK GARNISHMENTS, REPOSSESSION OF ASSETS OR FORECLOSURES TO ENSURE SATISFACTION OF A LIEN. MERCY HAS POLICIES AND PROCEDURES ESTABLISHED TO ADDRESS THE INITIATION OF LEGAL ACTION AND ANNUALLY REVIEW COMPLIANCE WITH POLICIES BUT ENSURE 120 DAYS OF BILLING AND COLLECTIONS OCCURS BEFORE ANY EXTRAORDINARY COLLECTIONS ARE PURSUED.

FORM 990, SCHEDULE H, PART VI, LINE 2
MERCY HOSPITAL STRIVES TO CONTINUALLY ASSESS THE HEALTH NEEDS OF OUR COMMUNITY. IN ADDITION TO THE COLLABORATIVE WORK DESCRIBED IN THE CHNA, MERCY HOSPITAL LEADERSHIP AND COWORKERS ATTENDED COALITION MEETINGS, SERVED AS BOARD MEMBERS ON VARIOUS COMMITTEES, AND WERE ACTIVELY INVOLVED IN COMMUNITY EVENTS. MERCY HOSPITAL WORKED WITH VARIOUS OTHER ORGANIZATIONS IN THE HEALTHY BOURBON COUNTY ACTION TEAM TO SURVEY COMMUNITY MEMBERS ON THEIR PERCEPTION OF THE HEALTH AND WELLNESS OF OUR COMMUNITY. THIS PERCEPTION SURVEY HAD A HIGH RESPONSE RATE. THE RESULTS FROM THIS SURVEY WILL BE USED IN IMPLEMENTING POLICY AND ENVIRONMENTAL CHANGE AS WELL AS DIRECT OUR FOCUS TO THE MOST PRESSING PRIORITIES.

FORM 990, SCHEDULE H, PART VI, LINE 3
Mercy informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organizations financial assistance policy through several means. If at any time a patient expresses hardship and inability to pay, the accounts is placed for review. In addition, patient have signage about the policy at the access points, and all staff working with the patient at Point of Service, Scheduling, Customer Service, and even through the Medicaid Eligibility Screening, have the means to send the account for review. There is the plain language summary that is being provided to all whom express hardship, in addition to the web address providing the application, policies, and even how uninsured accounts are handled. Lastly, the statements message to the patient that Mercy does have a Financial Assistance Program and to call to see if they are eligible. Mercy staffs internal resources certified to assist patients with Medicaid Applications as well.

FORM 990, SCHEDULE H, PART VI, LINE 4
MERCY KANSAS COMMUNITIES' PRIMARY SERVICE AREA INCLUDES THE FOLLOWING THREE COUNTIES IN SOUTHEAST KANSAS: LINN, BOURBON, AND CRAWFORD. THE FOLLOWING INFORMATION IS DERIVED FROM 2016 Sg2 ANALYTICS DATA AND Sg2 INSURANCE COVERAGE ESTIMATES. FORT SCOTT AREA'S POPULATION IS 64,413. 23% OF THE POPULATIONS AVERAGE HOUSEHOLD INCOME IS OVER $75,000. 40% OF THE POPULATION IS 45 AND OLDER. 25% OF HOUSEHOLDS ARE ON MEDICARE, 19% ON MEDICAID, AND 12% UNINSURED.

FORM 990, SCHEDULE H, PART VI, LINE 5
MERCY HOSPITAL FORT SCOTT AND EACH OF ITS FACILITIES FURTHER ITS EXEMPT PURPOSE BY PROMOTING THE HEALTH OF OUR COMMUNITY. THROUGH COLLABORATION OF OUR EFFORTS WITH LOCAL COALITIONS AND ORGANIZATIONS WE WILL SEE A CHANGE IN THE CULTURE OF OUR COMMUNITY. AS A RURAL HOSPITAL, MERCY HOSPITAL FORT SCOTT HAS LIMITED RESOURCES AND MUST CARRY AN ENTERPRISING SPIRIT TO BETTER SERVE OUR COMMUNITY. NETWORKING AND JOINING FORCES WITH AREA BUSINESSES, ORGANIZATIONS, NON-PROFIT ENTITIES, AND OTHERS HAS HELPED EXTEND OUR REACH. SURVEY RESULTS SHOW OUR COMMUNITY WAS IN NEED OF A FORM OF EXERCISE FOR THOSE WHO ARE HAVE PHYSICAL LIMITATIONS. THIS YEAR MERCY HOSPITAL RAISED MONEY THROUGH THE MERCY FOUNDATION AND A GOLF TOURNAMENT TO BUY AN UNDERWATER TREADMILL. THE MERCY FOUNDATION, COMMUNITY SUPPORT, FUNDRAISING AND COWORKER SUPPORT HAS ALSO LED US TO THE PURCHASE OF A NEW MAMMOGRAPHY MACHINE. THIS WAS A MUCH NEEDED REPLACEMENT TO ENHANCE PREVENTATIVE SERVICES FOR OUR COMMUNITY. THE HOSPITAL HOLDS WELLNESS FAIRS AT MULTIPLE BUSINESSES WITHIN THE COMMUNITY. MERCY PHYSICIANS CLINIC HELD AN ANNUAL TEDDY BEAR CLINIC. THIS IS A HEALTH FAIR HELD IN COLLABORATION WITH MANY NON-PROFIT AND HELPING AGENCIES TO HELP FAMILIES GET THE REFERRALS AND RESOURCES THEY NEED. MERCY HOSPITAL HAS PARTICULAR CONCERN FOR THE VULNERABLE AND UNDERSERVED. AN EXAMPLE OF A LONG STANDING PROGRAM, THE MOTHERS AND INFANTS CLINIC, WHERE SOON TO BE MOTHERS WHO HAVE LITTLE OR NO INSURANCE RECEIVE NEEDED PRENATAL CARE, IS A PRIME EXAMPLE OF OUR COMMITMENT TO PROMOTING HEALTH AND WELLNESS IN THE COMMUNITY. THESE WOMENS SOCIAL, NUTRITION, AND SPIRITUAL NEEDS ARE ALSO ADDRESSED WITH COMMUNITY PARTNERS. COWORKERS AND LEADERS GATHER COATS DURING AN ANNUAL COAT DRIVE, OR CANNED GOODS DURING THE ANNUAL CANNED GOOD DRIVE, AND THE ITEMS ARE DONATED TO THE LOCAL FOOD PANTRY.

FORM 990, SCHEDULE H, PART VI, LINE 6
"AFFILIATED HEALTH CARE SYSTEM: THE FILING ORGANIZATION IS PART OF MERCY HEALTH (""MERCY""). MERCY IS A MISSOURI NON-PROFIT CORPORATION WITH ITS HEADQUARTERS (""MINISTRY OFFICE"") IN ST. LOUIS, MISSOURI. MERCY PROVIDES HEALTH CARE SERVICES IN FOUR STATES - ARKANSAS, KANSAS, MISSOURI, AND OKLAHOMA - AND HAS OUTREACH MINISTRIES LOCATED IN LOUISIANA, MISSISSIPPI, AND TEXAS. MERCY'S MISSION IS ""AS THE SISTERS OF MERCY BEFORE US, WE BRING TO LIFE THE HEALING MINISTRY OF JESUS THROUGH OUR COMPASSIONATE CARE AND EXCEPTIONAL SERVICE."" AS OF JUNE 30, 2016, MERCY FACILITIES INCLUDED 33 ACUTE CARE HOSPITALS, 3 MANAGED HOSPITALS, 4 HEART HOSPITALS, 2 CHILDREN'S HOSPITALS, 2 ORTHOPEDIC HOSPITALS AND 3 REHAB HOSPITALS. FOR THE FISCAL YEAR ENDED JUNE 30, 2016, MERCY HAD MORE THAN 9.2 MILLION OUTPATIENT AND PHYSICIAN OFFICE VISITS, APPROXIMATELY 2,100 EMPLOYED PHYSICIANS, AND APPROXIMATELY 40,000 FULL-TIME EQUIVALENT EMPLOYEES, MAKING MERCY THE FIFTH LARGEST CATHOLIC HEALTH SYSTEM IN THE UNITED STATES. MERCY IS SPONSORED BY MERCY HEALTH MINISTRY, WHICH IS GOVERNED BY MEMBERS THAT INCLUDE SISTERS OF MERCY. MANY SERVICES THAT ARE ESSENTIAL TO FULFILLING MERCY'S MISSION ARE CENTRALIZED AT THE MINISTRY OFFICE. SUCH CENTRALIZED SERVICES INCLUDE TREASURY, INFORMATION TECHNOLOGY, CLINICAL QUALITY MANAGEMENT, LEGAL AND COMPLIANCE COUNSEL, COMPENSATION AND BENEFITS, CONSULTING, PERFORMANCE MANAGEMENT, REVENUE MANAGEMENT, INTERNAL AUDIT, ACCOUNTING AND REPORTING, CAPITAL MANAGEMENT, CLINICAL ENGINEERING, AND CLINICAL SAFETY. THE CENTRALIZATION OF SUCH SUPPORT SERVICES ENABLES MERCY TO ENSURE THAT EACH OF ITS COMMUNITIES, WHETHER LARGE OR SMALL, HAS THE SERVICES IT NEEDS."

FORM 990, SCHEDULE H, PART VI, LINE 7
STATE FILING OF COMMUNITY BENEFIT REPORT: N/A