4A (Expenses $ 51100934 including grants of $ 7875872) (Revenue $ 75787805)
SEE SCHEDULE H

Schedule H, Part V, Section C REPORTING GROUP A
The reporting group was purchased by a for-profit entity during the fiscal year. As a result, Schedule H has been completed using the information from the 2012 CHNA, as that was the most recent one conducted prior to the sale.

Schedule H, Part VI Schedule H, Part VI, Lines 2,4, and 5
SAINT CLARE'S HOSPITAL, INC. STATEMENT OF COMMUNITY BENEFIT AND NEEDS ASSESSMENT AS OF JUNE 30, 2015 ORGANIZATION'S MISSION, VISION, AND TAX-EXEMPT PURPOSE SAINT CLARE'S HOSPITAL, INC. WAS FOUNDED TO ALLEVIATE A SHORTAGE OF HOSPITAL BEDS IN THE COMMUNITY IN 1953. AS THE FIRST CATHOLIC HOSPITAL TO SERVE THE COMMUNITY, SAINT CLARE'S HOSPITAL EMBRACED THE MISSION OF THE FOUNDING RELIGIOUS CONGREGATION, WHICH HAS SINCE JOINED WITH OTHER RELIGIOUS CONGREGATIONS TO FORM CATHOLIC HEALTH INITIATIVES. THE MISSION OF SAINT CLARE'S HOSPITAL, INC. IS TO DEVELOP A HEALTHY COMMUNITY AND PROVIDE CARE TO ALL IN NEED. ITS BOARD OF DIRECTORS IS COMPRISED OF INDEPENDENT COMMUNITY REPRESENTATIVES. SAINT CLARE'S HOSPITAL, INC. OPERATES A 24-HOUR EMERGENCY ROOM 365 DAYS PER YEAR. THAT EMERGENCY ROOM IS OPEN TO ALL INDIVIDUALS REGARDLESS OF ABILITY TO PAY. SAINT CLARE'S HOSPITAL, INC. HAS AN OPEN MEDICAL STAFF, PARTICIPATES IN MEDICARE AND MEDICAID, AND HAS AN ACTIVE CHARITY CARE PROGRAM. COMMUNITY SERVICE HAS ALWAYS BEEN AT THE CORE OF SAINT CLARE'S HOSPITAL, INC.'S ACTIVITIES. EACH YEAR, SERVICES AND PROGRAMS ARE EXPANDED TO PROMOTE A HEALTHY COMMUNITY. THE PROGRAMS AND SERVICES DESCRIBED THROUGHOUT THIS REPORT NOT ONLY SERVE THE COMMUNITY, BUT ALSO WORK TO PROVIDE THE LOCAL COMMUNITY BASIC HEALTH CARE, HEALTH AND SAFETY EDUCATION, AND COOPERATIVE PROGRAMS TO THE PEOPLE OF MORRIS COUNTY. SAINT CLARE'S HOSPITAL, INC. IS INCLUDED IN THE OFFICIAL CATHOLIC DIRECTORY AS A TAX-EXEMPT HOSPITAL. COMMUNITY BENEFIT APPROACH WITH HOSPITALS IN DENVILLE, DOVER, BOONTON, AND SUSSEX, NEW JERSEY, ST. CLARE'S HEALTH SYSTEM SERVES OVER 60 TOWNS IN NORTHWESTERN NEW JERSEY AND NORTHEASTERN PENNSYLVANIA. MORRIS COUNTY: THE MOST RECENT 2012 ESTIMATES BASED ON THE LAST OFFICIAL COUNT FROM 2010 OF THE U.S. CENSUS BUREAU REFLECT THE COUNTY AS AN AFFLUENT, OLDER, AND DIVERSE COMMUNITY. MORRIS COUNTY HAS A MEDIAN AGE OF 41.3, UP FROM 38 IN 2000; MORRIS COUNTY 2010 MEDIAN INCOME WAS $96,747; THE BABY BOOMERS BORN BETWEEN 1946 AND 1964 ARE THE LARGEST GENERATION WITH MANY REACHING THE STATUS OF A SENIOR CITIZEN; AND THE COUNTY UNEMPLOYMENT RATE IS 6.8% AS OF JUNE 2013.

Schedule H, Part VI, Line 2 Sch H, Part VI, Lines 2,4,5
"(CONTINUED) ACCORDING TO THE 2010 US CENSUS DATA, THERE ARE MORE THAN 56,000 HISPANICS IN MORRIS COUNTY. THIS REPRESENTS APPROXIMATELY 11% OF THE MORRIS COUNTY POPULATION. TOWN OF DOVER: DOVER HAS THE LARGEST HISPANIC POPULATION (70%); LOWEST MEDIAN INCOME IN 2012 OF $66,763; AND THE HIGHEST PERCENTAGE OF PERSONS LIVING BELOW THE POVERTY LINE IN ALL OF MORRIS COUNTY. THE BUREAU OF PRIMARY HEALTH CARE HAS DESIGNATED MORRIS COUNTY AND THE NEIGHBORING TOWN OF DOVER AS AREAS WITH ""MEDICALLY UNDERSERVED POPULATIONS."" SAINT CLARE'S HOSPITAL INC.'S COMMUNITY BENEFIT PLAN IS BASED ON OUR UNDERSTANDING OF UNIQUE COMMUNITIES' NEEDS DERIVED FROM THE COLLABORATIVE NEEDS ASSESSMENTS, FOCUS GROUPS, AND SURVEYS CONDUCTED WITH OUR COMMUNITY PARTNERS. THE COMMUNITY HEALTH COLLABORATIVE (CHC) WAS FORMED AS A COLLABORATIVE ENTITY OF HEALTH AND HUMAN SERVICE PROVIDERS WITH A GENERAL DESIRE TO REDUCE DUPLICATION OF EFFORTS, THEREBY PROVIDING A MORE EFFICIENT USE OF LIMITED RESOURCES. ADDITIONALLY, IT WAS GENERALLY RECOGNIZED THAT THE HEALTH OF THE COMMUNITY WAS NOT THE RESPONSIBILITY OF ANY ONE ENTITY, BUT RATHER REQUIRED THE COORDINATED EFFORTS OF MANY ENTITIES - PUBLIC AND PRIVATE - TO REALIZE AN IMPROVED HEALTH STATUS OF A COMMUNITY. THE CHC HAS BEEN WORKING FOR SEVERAL YEARS TO MEASURE AND IMPROVE THE HEALTH STATUS OF THE COMMUNITY. THE COMMUNITY HEALTH COLLABORATIVE COMPLETED AN IN-DEPTH COMMUNITY HEALTH STATUS REPORT IN JANUARY 2010. THE REPORT REFLECTS THE COMPILATION AND ANALYSIS OF EXTENSIVE DATA SOURCES TO IDENTIFY ISSUES HAVING A SIGNIFICANT IMPACT ON THE HEALTH AND GENERAL WELL-BEING OF AREA RESIDENTS. SUMMARY OF ASSESSMENT FINDINGS TEN KEY FACTORS HAVING THE GREATEST IMPACT ON THE OVERALL WELLNESS OF THE AREA EMERGED IN THE COMMUNITY HEALTH STATUS REVIEW. THE TEN ISSUES WERE THEN PRIORITIZED THROUGH A GROUP PRIORITIZATION PROCESS. COMMUNITY STAKEHOLDERS WERE INVITED TO PRIORITIZE THE ISSUES OF MOST IMPORTANCE TO THEM, KEEPING IN MIND HOW AWARE THE COMMUNITY WAS OF EACH ISSUE AND HOW DIFFICULT THE ISSUE WAS TO CHANGE. AS A RESULT, THE ISSUES FELL INTO THE FOLLOWING ORDER OF PRIORITY. 1. HEALTHY BEHAVIORS 2. CHILD AND MATERNAL HEALTH 3. SMOKING AND TOBACCO 4. ACCESS TO HEALTH CARE SERVICES 5. DISEASE AND MORTALITY 6. UNINTENTIONAL INJURIES 7. ENVIRONMENT 8. PERSONAL AND FAMILY SAFETY 9. INCOME, EMPLOYMENT, AND EDUCATION 10. ALCOHOL AND DRUGS PRIORITIZATION SESSIONS WERE HELD IN OCTOBER 2012 TO REVIEW THE RESULTS OF THE COMPLETED COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA) OF THE SAINT CLARE'S SERVICE AREA. THROUGH FACILITATED DISCUSSION, THE PARTICIPANTS DEVELOPED A MASTER LIST OF COMMUNITY HEALTH NEEDS DERIVED FROM QUANTITATIVE RESULTS OF THE CHNA STUDY AND THE EXPERT KNOWLEDGE OF GROUP PARTICIPANTS. THE FOLLOWING KEY COMMUNITY HEALTH ISSUES EMERGED: PHYSICAL ACTIVITY AND NUTRITION ACCESS TO CARE MENTAL HEALTH AND WELL-BEING SUBSTANCE USE AND ABUSE SAINT CLARE'S HOSPITAL, INC. STATEMENT OF COMMUNITY BENEFIT QUALITATIVE DESCRIPTION OF COMMUNITY BENEFIT COMMUNITY OUTREACH FOR THE POOR SISTER CATHERINE COMMUNITY HEALTH CENTER CLINIC (""THE CLINIC"") HAS BEEN SERVING THE COMMUNITY FOR MORE THAN 20 YEARS PROVIDING HIGH QUALITY, COMPASSIONATE CARE TO THE VULNERABLE, POOR, UNDERSERVED AND UNINSURED. THE CLINIC OFFERS COMPREHENSIVE SERVICES FOR ALL FAMILY HEALTH NEEDS, INCLUDING INTERNAL MEDICINE, OBSTETRICS, GYNECOLOGY, AND PEDIATRICS, ALL IN A SINGLE CONVENIENT LOCATION. THE CENTER IS STAFFED WITH BOARD-CERTIFIED PHYSICIANS WHO SPECIALIZE IN INTERNAL MEDICINE, PEDIATRICS, AND OBSTETRICS, NURSES, SOCIAL WORKERS, DIETITIANS, FINANCIAL COUNSELORS, AND SUPPORT STAFF. IN ADDITION, IT COLLABORATES WITH THE MORRIS COUNTY OFFICE OF TEMPORARY ASSISTANCE TO PROVIDE AN OUT-STATION MEDICAID WORKER TO ASSIST CURRENT CLINIC CLIENTS IN APPLYING FOR MEDICAID PROGRAMS. APPROXIMATELY 95% OF NON-CLINICAL STAFF IS BILINGUAL. LATINO AND ASIAN COMMUNITY OUTREACH: THE OUTREACH PROGRAM WORKS IN COORDINATION WITH MULTIPLE COMMUNITY ORGANIZATIONS SUCH AS HEAD START SCHOOL, MORRIS COUNTY OFFICE OF HISPANIC AFFAIRS, MORRIS COUNTY PROSECUTORS OFFICE, MORRIS COUNTY PREVENTION IS KEY, NORWESCAP, EL PRIMER PASO, AND COMMISSION OF THE BLIND, TO OFFER A WIDE VARIETY OF HEALTH AND WELLNESS PROGRAMS TO THE HISPANIC COMMUNITY. IN ADDITION, THERE IS A FOCUS ON ENSURING THAT THE ASIAN, HINDU, AND CHINESE COMMUNITIES RECEIVE EDUCATION AND INFORMATION ON DISEASES THAT MAY IMPACT THEIR COMMUNITY."

Schedule H, Part VI, Line 2 Schedule H Part VI, Lines 2,4,5
(CONTINUED) COLLABORATIVE EFFORTS WITH COMMUNITY MINISTRY: SAINT CLARE'S HOSPITAL, INC. WORKS IN CONCERT WITH FAITH COMMUNITIES IN A HOLISTIC APPROACH TO IMPROVE HEALTH. THE CONGREGATIONAL HEALTH MINISTRY PROVIDES EDUCATION, GUIDANCE, SUPPORT, AND RESOURCES TO HELP CONGREGATIONS PROMOTE SPIRITUAL, EMOTIONAL, AND PHYSICAL WELL-BEING IN MORRIS, SUSSEX, AND WARREN COUNTIES. THE PROGRAM ASSISTS PASTORS, NURSES, AND OTHER INTERESTED MEMBERS OF EACH CONGREGATION TO SELECT AND MAINTAIN A COMMITTEE OR HEALTH CABINET THAT MEETS REGULARLY TO ASSESS THE HEALTH NEEDS OF THE CONGREGATION AND DETERMINE HOW TO ADDRESS THOSE NEEDS MOST EFFECTIVELY. EACH PROGRAM IS UNIQUELY TAILORED AND PLANNED WITH THE CONGREGATION. FINANCIAL COUNSELING / CHARITY CARE: FINANCIAL COUNSELORS ARE AVAILABLE TO HELP PATIENTS IN THE CLINICS AT SAINT CLARE'S HOSPITAL, INC. THEY ASSIST WITH APPLICATION COMPLETION FOR THE CHARITY CARE PROGRAM, RUN BY THE STATE OF NEW JERSEY. COUNSELORS OFFER PEACE OF MIND TO PATIENTS DEALING WITH MEDICAL CONCERNS. MEDICAID WORKERS ARE AVAILABLE TO ASSIST WITH APPLICATIONS TO THE GOVERNMENT PROGRAM. SOCIAL WORKERS ASSIST PATIENTS WITH COMMUNITY RESOURCES. PUBLIC HEALTH NURSE SERVICES COLLABORATION: SAINT CLARE'S HOSPITAL, INC. HAS PARTNERED WITH THE LOCAL COMMUNITY HEALTH DEPARTMENT TO PROVIDE OUTREACH PROGRAMS THAT FOCUS ON TOTAL FAMILY HEALTH, COMMUNITY OUTREACH, EDUCATION, HEALTH SCREENINGS, AND COMMUNICABLE DISEASE INVESTIGATION. OUR OUTREACH IS THERE TO COMPLIMENT THE SERVICES PROVIDED BY THE TOWN OF DOVER. THE GOAL IS TO EDUCATE AND INFORM THE MULTIGENERATIONAL AND CULTURALLY DIVERSE COMMUNITY ABOUT HEALTH AND SOCIAL ISSUES AFFECTING THEM. THE EDUCATIONAL PROGRAMS ARE FREE OF CHARGE AND HELD AT VARIOUS ORGANIZATIONS AND LOCATIONS, THUS PROVIDING EASY ACCESS TO COMMUNITY RESIDENTS. PROGRAMS ARE OFFERED IN BOTH ENGLISH AND SPANISH. THESE PROGRAMS ARE REPEATED THROUGHOUT THE YEAR TO MAXIMIZE OUTREACH TO THE COMMUNITY. NEW JERSEY SELF-HELP CLEARINGHOUSE: SINCE 1981, SAINT CLARE'S HOSPITAL, INC. SELF-HELP CLEARINGHOUSE HAS ASSISTED PEOPLE IN FINDING AND CREATING SELF-HELP SUPPORT GROUPS WITHIN THE STATE AND COUNTRY. ASSISTANCE IS PROVIDED THROUGH A DATABASE OF MORE THAN 6,750 SUPPORT GROUPS FOR ALL TYPES OF NEEDS: ADDICTIONS, DISABILITIES, LOSS OF A LOVED ONE, PARENTING SITUATIONS, ABUSE SITUATIONS, AND OTHER STRESSFUL LIFE SITUATIONS. OVER THE LAST 30 YEARS, THIS FREE SERVICE HAS HELPED MORE THAN 120,000 PEOPLE FIND SUPPORT GROUPS. SUPPORTED COMMUNITY LIVING PROGRAM: SAINT CLARE'S HOSPITAL, INC. PROVIDES IN-HOME SERVICES TO ADULT POPULATIONS (18 YEARS OR OLDER) WHO SUFFER FROM PSYCHIATRIC DISORDERS. COUNSELORS WORK WITH PERSONS WHO ARE LIVING INDEPENDENTLY, BUT NEED ASSISTANCE WITH INTEGRATION IN TO THE LOCAL COMMUNITY AND/OR IMPROVEMENT IN HOUSEHOLD MANAGEMENT/ACTIVITIES OF DAILY LIVING SKILLS. TRANSITIONS: SAINT CLARE'S HOSPITAL, INC. ASSISTS ADULTS WITH PSYCHIATRIC ILLNESSES AND/OR CO-OCCURRING DISORDERS AS A STEP DOWN FROM AN INPATIENT STAY OR TO DIVERT INPATIENT ADMISSIONS. PROGRAMMING EMPHASIZES COMPLETE WELLNESS AND RECOVERY AND INCLUDES A VARIETY OF EVIDENCED-BASED TREATMENT OPTIONS.

Schedule H, Part I, Line 6a REPORTING GROUP A
Saint Clare's Hospital sold substantially all of its assets to Prime Healthcare Services - Saint Clare's, LLC on October 1, 2015 and ceased operations as a hospital on that date therefore no Community Benefit report was prepared for the year ended June 30, 2016.

Schedule H, Part V, Section B, Line 3 REPORTING GROUP A
Saint Clare's Hospital facility last conducted a CHNA in tax year 2012. Saint Clare's assets were transferred by the organization on 10/1/15 to an unrelated party. Pursuant to Treas. Reg. Section 1.503(r)-3(d)(4) a hospital organization is not required to meet the requirements of section 501(r)(3) with respect to a hospital facility in a taxable year if, before the end of that taxable year, the hospital organization transfers all ownership of the hospital facility to another organization or otherwise ceases its operation of the hospital facility or the facility ceases to be licensed, registered, or similarly recognized as a hospital by a state.

Schedule H, Part I, Line 7g Subsidized Health Services
THERE ARE NO PHYSICIAN CLINICS INCLUDED IN SUBSIDIZED HEALTH SERVICES.

Schedule H, Part I, Line 7 Bad Debt Expense excluded from financial assistance calculation
2591643

Schedule H, Part I, Line 7 Costing Methodology used to calculate financial assistance
A COST ACCOUNTING SYSTEM WAS NOT USED TO COMPUTE AMOUNTS IN THE TABLE; RATHER COSTS IN THE TABLE WERE COMPUTED USING THE ORGANIZATION'S COST-TO-CHARGE RATIO. THE COST-TO-CHARGE RATIO COVERS ALL PATIENT SEGMENTS.

Schedule H, Part III, Line 2 Bad debt expense - methodology used to estimate amount
Costing methodology for amounts reported on line 2 is determined using the organization's cost/charge ratio . When discounts are extended to self-pay patients, these patient account discounts are recorded as a reduction in revenue, not as bad debt expense.

Schedule H, Part III, Line 3 Bad Debt Expense Methodology
Saint Clare's Hospital Inc. does not believe that any portion of bad debt expense could reasonably be attributed to patients who qualify for financial assistance since amounts due from those individuals' accounts will be reclassified from bad debt expense to charity care within 30 days following the date that the patient is determined to qualify for charity care.

Schedule H, Part III, Line 4 Bad debt expense - financial statement footnote
"Saint Clare's Hospital, Inc. does not issue separate company audited financial statements. However, the organization is included in the consolidated financial statements of Catholic Health Initiatives (CHI), a related organization. The consolidated footnote reads as follows: ""The provision for bad debts is based upon management's assessment of historical and expected net collections, taking into consideration historical business and economic conditions, trends in health care coverage, and other collection indicators. Management routinely assesses the adequacy of the allowance for uncollectible accounts based upon historical write-off experience by payor category. The results of these reviews are used to modify, as necessary, the provision for bad debts and to establish appropriate allowances for uncollectible net patient accounts receivable. After satisfaction of amounts due from insurance, CHI follows established guidelines for placing certain balances with collection agencies, subject to the terms of certain restrictions on collection efforts as determined by each facility. The provision for bad debts is presented on the consolidated statements of operations as a deduction from patient services revenues (net of contractual allowances and discounts) since CHI accepts and treats substantially all patients without regard to the ability to pay."""

Schedule H, Part III, Line 8 Community benefit & methodology for determining medicare costs
Saint Clare's Hospital sold substantially all of its assets to Prime Healthcare Services - Saint Clare's, LLC on October 1, 2015 and ceased operations as a hospital on that date.

Schedule H, Part III, Line 9b Collection practices for patients eligible for financial assistance
Saint Clare's Hospital, Inc.'s debt collection policy provides that Saint Clare's Hospital, Inc. will perform a reasonable review of each inpatient account prior to turning an account over to a third-party collection agent and prior to instituting any legal action for non-payment, to assure that the patient and patient guarantor are not eligible for any assistance program (e.g. Medicaid) and do not qualify for coverage through Saint Clare's Hospital, Inc. community assistance policy. After having been turned over to a third-party collection agent, any patient account that is subsequently determined to meet the Saint Clare's Hospital, Inc.community assistance policy is required to be returned immediately by the third-party collection agent to Saint Clare's Hospital, Inc. for appropriate follow-up. Saint Clare's Hospital, Inc. requires its third-party collection agents to include a message on all statements indicating that if a patient or patient guarantor meets certain stipulated income requirements, the patient or patient guarantor may be eligible for financial assistance. All of Catholic Health Initiatives' (CHI) hospitals' contracts with third party collection agencies include the following standards: * Neither CHI hospitals nor their collection agencies will request bench or arrest warrants as a result of non-payment; * Neither CHI hospitals nor their collection agencies will seek liens that would require the sale or foreclosure of a primary residence; and * No Catholic Health Initiatives' collection agency may seek court action without hospital approval. Finally, collection agencies are trained on the Catholic Health Initiatives Mission, Core Values and Standard of Conduct to make sure all patients are treated with dignity and respect.

Schedule H, Part V, Section B, Line 16a FAP website
A - SAINT CLARE'S HOSPITAL, BOONTON TOWNSHIP: Line 16a URL: http://www.saintclares.com/For-Patients-Visitors/Billing/Financial-Assistance.aspx;

Schedule H, Part VI, Line 3 Patient education of eligibility for assistance
Saint Clare's Hospital includes information concerning its financial assistance policy on its website. In addition, Saint Clare's Hospital prominently displays its financial assistance policy in both English and Spanish in obvious locations throughout the hospitals, including the emergency rooms and other patient intake areas, as well as in Saint Clare's Hospital outpatient facilities. In addition, Saint Clare's Hospital registration clerks are trained to provide consultation to those who have no insurance or potentially inadequate insurance concerning their financial options including application for Medicaid and for financial assistance under Saint Clare's Hospital financial assistance policy. Upon registration (and once all EMTALA requirements are met), patients who are identified as uninsured (and not covered by Medicare or Medicaid) are provided with a packet of information that addresses the financial assistance policy and procedures including an application for assistance. Saint Clare's Hospital registration clerks read the organization's medical assistance policy to those who appear to be incapable of reading, and provide translators for non-English-speaking individuals. Saint Clare's Hospital's staff will also assist the patient/guarantor with applying for other available coverage (such as Medicaid), if necessary. Counselors assist Medicare eligible patients in enrollment by providing referrals to the appropriate government agencies.

Schedule H, Part VI, Line 6 Affiliated health care system
"Saint Clare's Hospital, along with its affiliated outpatient facilities, are part of Catholic Health Initiatives. Catholic Health Initiatives (CHI) is a national faith-based nonprofit health care organization with headquarters in Englewood, Colorado. CHI's exempt purpose is to serve as an integral part of its national system of hospitals and other charitable entities, which are described as market-based organizations, or MBOs. An MBO is a direct provider of care or services within a defined market area that may be an integrated health system and/or a stand-alone hospital or other facility or service provider. CHI serves as the parent corporation of its MBOs which are comprised of 101 hospitals, including four academic medical centers, and 30 critical access facilities; community health service organizations; accredited nursing colleges; home health agencies; and other facilities that span the inpatient and outpatient continuum of care. Together, these facilities provided $981 million in charity care and community benefit in the 2015 fiscal year, including services for the poor, free clinics, education and research. CHI provides strategic planning and management services as well as centralized ""shared services"" for the MBOs. The provision of centralized management and shared services - including areas such as accounting, human resources, payroll and supply chain -- provides economies of scale and purchasing power to the MBOs. The cost savings achieved through CHI's centralization enable MBOs to dedicate additional resources to high-quality health care and community outreach services to the most vulnerable members of our society. Saint Clare's Hospital operates with its wholly owned affiliates and community partners, along with its fundraising arm, the St. Clare's Foundation, to serve the health care needs of Morris and Sussex Counties."