Form990
Click to see attachment
Department of the TreasuryInternal Revenue Service
Return of Organization Exempt From Income Tax
Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except private
foundations)
MediumBullet Do not enter social security numbers on this form as it may be made public.
MediumBullet Information about Form 990 and its instructions is at www.IRS.gov/form990.
OMB No. 1545-0047
2016
Open to Public Inspection
A For the 2016 calendar year, or tax year beginning 10-01-2016 , and ending 09-30-2017
BCheck if applicable:
CName of organization
Northeastern Vermont Regional Hosp Inc


Doing business as

Number and street (or P.O. box if mail is not delivered to street address)
Hospital Drive PO Box 905
Room/suite
City or town, state or province, country, and ZIP or foreign postal code
St Johnsbury, VT058190905
D Employer identification number

03-6013761
E Telephone number

(802) 748-7520
G Gross receipts $ 86,321,112
F Name and address of principal officer:
Paul Bengtson
Hospital Drive PO Box 905
St Johnsbury,VT058190905
I
Tax-exempt status: ( ) LeftBullet (insert no.) or
J
Website:MediumBullet
www.nvrh.org
H(a)
Is this a group return for
subordinates?
H(b)
Are all subordinates
included?
If "No," attach a list. (see instructions)
H(c)
Group exemption number MediumBullet
K Form of organization:
L Year of formation: 1967
M State of legal domicile: VT
Part I
Summary
Activities  & Governance 1 Briefly describe the organizations mission or most significant activities: Critical Access Hospital
2 Check this box MediumBullet
3 Number of voting members of the governing body (Part VI, line 1a) ........ 3 20
4 Number of independent voting members of the governing body (Part VI, line 1b) ..... 4 16
5 Total number of individuals employed in calendar year 2016 (Part V, line 2a) ...... 5 664
6 Total number of volunteers (estimate if necessary) ............. 6 165
7a Total unrelated business revenue from Part VIII, column (C), line 12 ........ 7a 2,050,317
b Net unrelated business taxable income from Form 990-T, line 34 ......... 7b 39,742
Revenues Prior Year Current Year
8 Contributions and grants (Part VIII, line 1h) ......... 18,108 32,026
9 Program service revenue (Part VIII, line 2g) ......... 75,089,462 80,300,719
10 Investment income (Part VIII, column (A), lines 3, 4, and 7d ) .... 396,731 746,741
11 Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e) 94,949 30,843
12 Total revenueadd lines 8 through 11 (must equal Part VIII, column (A), line 12) 75,599,250 81,110,329
Expenses; 13 Grants and similar amounts paid (Part IX, column (A), lines 13 )... 157,380 223,766
14 Benefits paid to or for members (Part IX, column (A), line 4)..... 0 0
15 Salaries, other compensation, employee benefits (Part IX, column (A), lines 510) 44,618,239 48,099,812
16a Professional fundraising fees (Part IX, column (A), line 11e) ..... 0 0
b Total fundraising expenses (Part IX, column (D), line 25) MediumBullet0
17 Other expenses (Part IX, column (A), lines 11a11d, 11f24e).... 29,444,024 30,966,144
18 Total expenses. Add lines 1317 (must equal Part IX, column (A), line 25) 74,219,643 79,289,722
19 Revenue less expenses. Subtract line 18 from line 12....... 1,379,607 1,820,607
Net Assets or Fund Balances; Beginning of Current Year End of Year
20 Total assets (Part X, line 16)............. 63,532,373 63,948,643
21 Total liabilities (Part X, line 26)............. 24,971,317 24,812,656
22 Net assets or fund balances. Subtract line 21 from line 20..... 38,561,056 39,135,987
Part II
Signature Block
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than officer) is based on all information of which preparer has any knowledge.
Sign Here
JumboBullet 2018-08-14
Signature of officer Date
JumboBullet Robert HerseyCFO
Type or print name and title
Paid Preparer Use Only
Print/Type preparer's name
Joseph R Byrne CPA
Preparer's signature
Joseph R Byrne CPA
Date
2018-08-14
PTIN
P01289281
Firm's name MediumBullet
Berry Dunn McNeil & Parker LLC
Firm's EIN MediumBullet01-0523282
Firm's address MediumBullet
PO Box 1100

Portland, ME041041100
Phone no. (207) 775-2387
May the IRS discuss this return with the preparer shown above? (see instructions) ..........
For Paperwork Reduction Act Notice, see the separate instructions.
Cat. No. 11282Y Form 990 (2016)
Form 990 (2016)
Page 2
Part III
Statement of Program Service Accomplishments
Check if Schedule O contains a response or note to any line in this Part III ..............
1
Briefly describe the organizations mission: Northeastern Vermont Regional Hospital, Inc. is dedicated to improving the health of all people in the communities it serves.
2
Did the organization undertake any significant program services during the year which were not listed on
the prior Form 990 or 990-EZ? .....................
If "Yes," describe these new services on Schedule O.
3
Did the organization cease conducting, or make significant changes in how it conducts, any program
services? ...........................
If "Yes," describe these changes on Schedule O.
4
Describe the organizations program service accomplishments for each of its three largest program services, as measured by expenses. Section 501(c)(3) and 501(c)(4) organizations are required to report the amount of grants and allocations to others, the total expenses, and revenue, if any, for each program service reported.
4a (Code: ) (Expenses $ 69,559,430 including grants of $ 223,766 ) (Revenue $ 80,300,719 )
Northeastern Vermont Regional Hospital, Inc. is a full service, state of the art, Critical Access Hospital. The Hospital makes its services available to approximately 30,000 residents of the greater St. Johnsbury community. Inpatient services include medical and surgical, intensive care, pediatrics, and obstetrics. The emergency room at NVRH is fully staffed by full-time board certified/eligible physicians. A new Ambulatory Surgery Unit opened in October 2009. The new unit has space for 16 pre- and post-operative patients. Over 95% of our surgeries and procedures are conducted through day surgery. These services are supported by the laboratory, diagnostic imaging, MRI, CT scan, cardiac services, rehabilitation, respiratory, and other ancillary services. NVRH was chosen as the first Medical Home/Community Care Team in December of 2007 and created medical homes in 5 primary care practices and Community Care Teams. Surgical specialties include general surgery, neurosurgery, oral/maxillofacial, otolaryngology, obstetrics/gynecology, orthopedics, ophthalmology, and urology. NVRH is one of two Vermont hospitals to have been awarded the international baby-friendly designation by the World Health Organization.NVRH's charity care program is available to patients who are uninsured, underinsured, or have otherwise demonstrated they don't have the financial resources to fully pay for their hospital care. Patients with income levels below 200% of the federal poverty guideline for the applicable family size have their hospital bill discounted by 100%. Patients with income levels between 200% and 400% of the federal poverty guideline receive a discount on their hospital bill between 85% and 47%. Foregone charges, based on established rates, furnished under NVRH's free care program amounted to $2,665,968 during the year ended September 30, 2017.
4b (Code: ) (Expenses $ including grants of $ ) (Revenue $ )
4c (Code: ) (Expenses $ including grants of $ ) (Revenue $ )
(Code: ) (Expenses $ including grants of $ ) (Revenue $ )
The emergency room at NVRH is fully staffed by full-time physicians and specialized nurses who are trained to deal with all aspects of medical care. Emergency room staff provide pre-hospital provider training and support, participation in local education programs, hospital continuing medical education and quality assurance programs. Care provided by the emergency room is coordinated with appropriate local physician practices. The NVRH pharmacy provides pharmaceutical services for patients, including a complete patient medication profile and computerized monitoring. Our pharmacy staff is a vital component of the healthcare team, consulting with physicians and other health professionals to ensure that patients receive the appropriate drug therapies. NVRH owns four Rural Health Clinics that are staffed with a combination of medical doctors, nurse practitioners, physician assistants and nurse midwives in order to meet the need of our patients. The four clinics include:1. Corner Medical - a family practice.2. Kingdom Internal Medicine3. St. Johnsbury Pediatrics4. Womans Wellness Center - providing a full OB/GYN care.
4d Other program services (Describe in Schedule O.)
(Expenses $ including grants of $ ) (Revenue $ )
4e Total program service expensesMediumBullet69,559,430
Form 990 (2016)
Form 990 (2016)
Page 3
Part IV
Checklist of Required Schedules
Yes
No
1
Is the organization described in section 501(c)(3) or 4947(a)(1) (other than a private foundation)? If "Yes," complete Schedule AClick to see attachment.....................
1
Yes
2
Is the organization required to complete Schedule B, Schedule of Contributors (see instructions)? Click to see attachment...
2
Yes
3
Did the organization engage in direct or indirect political campaign activities on behalf of or in opposition to candidates for public office? If "Yes," complete Schedule C, Part IClick to see attachment.............
3
No
4
Section 501(c)(3) organizations. Did the organization engage in lobbying activities, or have a section 501(h) election in effect during the tax year? If "Yes," complete Schedule C, Part IIClick to see attachment..............
4
Yes
5
Is the organization a section 501(c)(4), 501(c)(5), or 501(c)(6) organization that receives membership dues, assessments, or similar amounts as defined in Revenue Procedure 98-19? If "Yes," complete Schedule C, Part IIIClick to see attachment.................
5
No
6
Did the organization maintain any donor advised funds or any similar funds or accounts for which donors have the right to provide advice on the distribution or investment of amounts in such funds or accounts? If "Yes," complete Schedule D, Part IClick to see attachment..................
6
No
7
Did the organization receive or hold a conservation easement, including easements to preserve open space,
the environment, historic land areas, or historic structures? If "Yes," complete Schedule D, Part IIClick to see attachment...
7
No
8
Did the organization maintain collections of works of art, historical treasures, or other similar assets? If "Yes," complete Schedule D, Part III Click to see attachment.............
8
Yes
9
Did the organization report an amount in Part X, line 21 for escrow or custodial account liability; serve as a custodian for amounts not listed in Part X; or provide credit counseling, debt management, credit repair, or debt negotiation services? If "Yes," complete Schedule D, Part IVClick to see attachment..............
9
No
10
Did the organization, directly or through a related organization, hold assets in temporarily restricted endowments, permanent endowments, or quasi-endowments? If "Yes," complete Schedule D, Part VClick to see attachment......
10
No
11
If the organizations answer to any of the following questions is "Yes," then complete Schedule D, Parts VI, VII, VIII, IX, or X as applicable.
a
Did the organization report an amount for land, buildings, and equipment in Part X, line 10?
If "Yes," complete Schedule D, Part VI.Click to see attachment...................
11a
Yes
b
Did the organization report an amount for investmentsother securities in Part X, line 12 that is 5% or more of its total assets reported in Part X, line 16? If "Yes," complete Schedule D, Part VIIClick to see attachment.......
11b
No
c
Did the organization report an amount for investmentsprogram related in Part X, line 13 that is 5% or more of its total assets reported in Part X, line 16? If "Yes," complete Schedule D, Part VIIIClick to see attachment.......
11c
No
d
Did the organization report an amount for other assets in Part X, line 15 that is 5% or more of its total assets reported in Part X, line 16? If "Yes," complete Schedule D, Part IXClick to see attachment............
11d
Yes
e
Did the organization report an amount for other liabilities in Part X, line 25? If "Yes," complete Schedule D, Part XClick to see attachment
11e
Yes
f
Did the organizations separate or consolidated financial statements for the tax year include a footnote that addresses the organizations liability for uncertain tax positions under FIN 48 (ASC 740)? If "Yes," complete Schedule D, Part XClick to see attachment
11f
No
12a
Did the organization obtain separate, independent audited financial statements for the tax year?
If "Yes," complete Schedule D, Parts XI and XII Click to see attachment.................
12a
Yes
b
Was the organization included in consolidated, independent audited financial statements for the tax year? If "Yes," and if the organization answered "No" to line 12a, then completing Schedule D, Parts XI and XII is optional Click to see attachment
12b
Yes
13
Is the organization a school described in section 170(b)(1)(A)(ii)? If "Yes," complete Schedule E
13
No
14a
Did the organization maintain an office, employees, or agents outside of the United States? .....
14a
No
b
Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, fundraising, business, investment, and program service activities outside the United States, or aggregate foreign investments valued at $100,000 or more? If "Yes," complete Schedule F, Parts I and IV.........
14b
No
15
Did the organization report on Part IX, column (A), line 3, more than $5,000 of grants or other assistance to or for any foreign organization? If Yes, complete Schedule F, Parts II and IV.....
15
No
16
Did the organization report on Part IX, column (A), line 3, more than $5,000 of aggregate grants or other assistance to or for foreign individuals? If Yes, complete Schedule F, Parts III and IV...
16
No
17
Did the organization report a total of more than $15,000 of expenses for professional fundraising services on Part IX, column (A), lines 6 and 11e? If "Yes," complete Schedule G, Part I (see instructions) ....
17
No
18
Did the organization report more than $15,000 total of fundraising event gross income and contributions on Part VIII, lines 1c and 8a? If "Yes," complete Schedule G, Part II............
18
No
19
Did the organization report more than $15,000 of gross income from gaming activities on Part VIII, line 9a? If "Yes," complete Schedule G, Part III...................
19
No
Form 990 (2016)
Form 990 (2016)
Page 4
Part IV
Checklist of Required Schedules (continued)
Yes
No
20a
Did the organization operate one or more hospital facilities? If "Yes," complete Schedule H....Click to see attachment
20a
Yes
b
If "Yes" to line 20a, did the organization attach a copy of its audited financial statements to this return? Click to see attachment
20b
Yes
21
Did the organization report more than $5,000 of grants or other assistance to any domestic organization or domestic government on Part IX, column (A), line 1? If Yes, complete Schedule I, Parts I and II.....Click to see attachment
21
Yes
22
Did the organization report more than $5,000 of grants or other assistance to or for domestic individuals on Part IX, column (A), line 2? If Yes, complete Schedule I, Parts I and III........Click to see attachment
22
No
23
Did the organization answer "Yes" to Part VII, Section A, line 3, 4, or 5 about compensation of the organizations current and former officers, directors, trustees, key employees, and highest compensated employees? If "Yes," complete Schedule J....................... Click to see attachment
23
Yes
24a
Did the organization have a tax-exempt bond issue with an outstanding principal amount of more than $100,000 as of the last day of the year, that was issued after December 31, 2002? If Yes, answer lines 24b through 24d and complete Schedule K. If No, go to line 25a...............Click to see attachment
24a
Yes
b
Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception?...
24b
No
c
Did the organization maintain an escrow account other than a refunding escrow at any time during the year
to defease any tax-exempt bonds? ...............
24c
No
d
Did the organization act as an "on behalf of" issuer for bonds outstanding at any time during the year?...
24d
No
25a
Section 501(c)(3), 501(c)(4), and 501(c)(29) organizations. Did the organization engage in an excess benefit transaction with a disqualified person during the year? If "Yes," complete Schedule L, Part I............ Click to see attachment
25a
No
b
Is the organization aware that it engaged in an excess benefit transaction with a disqualified person in a prior year, and that the transaction has not been reported on any of the organizations prior Forms 990 or 990-EZ? If "Yes," complete Schedule L, Part I ...................Click to see attachment
25b
No
26
Did the organization report any amount on Part X, line 5, 6, or 22 for receivables from or payables to any current or former officers, directors, trustees, key employees, highest compensated employees, or disqualified persons? If "Yes," complete Schedule L, Part II ................Click to see attachment
26
No
27
Did the organization provide a grant or other assistance to an officer, director, trustee, key employee, substantial contributor or employee thereof, a grant selection committee member, or to a 35% controlled entity or family member of any of these persons? If "Yes," complete Schedule L, Part III......... Click to see attachment
27
No
28
Was the organization a party to a business transaction with one of the following parties (see Schedule L, Part IV instructions for applicable filing thresholds, conditions, and exceptions):
a
A current or former officer, director, trustee, or key employee? If "Yes," complete Schedule L,
Part IV
........................Click to see attachment
28a
No
b
A family member of a current or former officer, director, trustee, or key employee? If "Yes," complete Schedule L, Part IV.....................Click to see attachment
28b
Yes
c
An entity of which a current or former officer, director, trustee, or key employee (or a family member thereof) was an officer, director, trustee, or direct or indirect owner? If "Yes," complete Schedule L, Part IV... Click to see attachment
28c
No
29
Did the organization receive more than $25,000 in non-cash contributions? If "Yes," complete Schedule M..Click to see attachment
29
Yes
30
Did the organization receive contributions of art, historical treasures, or other similar assets, or qualified conservation contributions? If "Yes," complete Schedule M .............Click to see attachment
30
No
31
Did the organization liquidate, terminate, or dissolve and cease operations? If "Yes," complete Schedule N, Part I.
31
No
32
Did the organization sell, exchange, dispose of, or transfer more than 25% of its net assets? If "Yes," complete Schedule N, Part II ...........
32
No
33
Did the organization own 100% of an entity disregarded as separate from the organization under Regulations sections 301.7701-2 and 301.7701-3? If "Yes," complete Schedule R, Part I ........Click to see attachment
33
No
34
Was the organization related to any tax-exempt or taxable entity? If "Yes," complete Schedule R, Part II, III, or IV, and Part V, line 1.........................Click to see attachment
34
Yes
35a
Did the organization have a controlled entity within the meaning of section 512(b)(13)?
35a
No
b
If Yes to line 35a, did the organization receive any payment from or engage in any transaction with a controlled entity within the meaning of section 512(b)(13)? If "Yes," complete Schedule R, Part V, line 2 ...
35b
36
Section 501(c)(3) organizations. Did the organization make any transfers to an exempt non-charitable related organization? If "Yes," complete Schedule R, Part V, line 2............. Click to see attachment
36
No
37
Did the organization conduct more than 5% of its activities through an entity that is not a related organization and that is treated as a partnership for federal income tax purposes? If "Yes," complete Schedule R, Part VIClick to see attachment
37
No
38
Did the organization complete Schedule O and provide explanations in Schedule O for Part VI, lines 11b and 19? Note. All Form 990 filers are required to complete Schedule O. ............
38
Yes
Form 990 (2016)
Form 990 (2016)
Page 5
Part V
Statements Regarding Other IRS Filings and Tax Compliance
Check if Schedule O contains a response or note to any line in this Part V...........
Yes
No
1a
Enter the number reported in Box 3 of Form 1096 Enter -0- if not applicable ..
1a
75
b
Enter the number of Forms W-2G included in line 1a. Enter -0- if not applicable .
1b
0
c
Did the organization comply with backup withholding rules for reportable payments to vendors and reportable gaming (gambling) winnings to prize winners? ..................
1c
Yes
2a
Enter the number of employees reported on Form W-3, Transmittal of Wage and
Tax Statements, filed for the calendar year ending with or within the year covered by this return ..................
2a
664
b
If at least one is reported on line 2a, did the organization file all required federal employment tax returns?
Note. If the sum of lines 1a and 2a is greater than 250, you may be required to e-file (see instructions)
2b
Yes
3a
Did the organization have unrelated business gross income of $1,000 or more during the year?...
3a
Yes
b
If Yes, has it filed a Form 990-T for this year? If No to line 3b, provide an explanation in Schedule O...
3b
Yes
4a
At any time during the calendar year, did the organization have an interest in, or a signature or other authority over, a financial account in a foreign country (such as a bank account, securities account, or other financial account)? ..
4a
No
b
If "Yes," enter the name of the foreign country: MediumBullet
See instructions for filing requirements for FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR).
5a
Was the organization a party to a prohibited tax shelter transaction at any time during the tax year? ..
5a
No
b
Did any taxable party notify the organization that it was or is a party to a prohibited tax shelter transaction?
5b
No
c
If "Yes," to line 5a or 5b, did the organization file Form 8886-T? ............
5c
6a
Does the organization have annual gross receipts that are normally greater than $100,000, and did the organization solicit any contributions that were not tax deductible as charitable contributions? ...
6a
No
b
If "Yes," did the organization include with every solicitation an express statement that such contributions or gifts were not tax deductible? ......................
6b
7
Organizations that may receive deductible contributions under section 170(c).
a
Did the organization receive a payment in excess of $75 made partly as a contribution and partly for goods and services provided to the payor? ....................
7a
No
b
If "Yes," did the organization notify the donor of the value of the goods or services provided? .....
7b
c
Did the organization sell, exchange, or otherwise dispose of tangible personal property for which it was required to file Form 8282? .........................
7c
No
d
If "Yes," indicate the number of Forms 8282 filed during the year ....
7d
e
Did the organization receive any funds, directly or indirectly, to pay premiums on a personal benefit contract?
7e
No
f
Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract? ..
7f
No
g
If the organization received a contribution of qualified intellectual property, did the organization file Form 8899 as required? ......................
7g
h
If the organization received a contribution of cars, boats, airplanes, or other vehicles, did the organization file a Form 1098-C? ..........................
7h
8
Sponsoring organizations maintaining donor advised funds.
Did a donor advised fund maintained by the sponsoring organization have excess business holdings at any time during the year? .........................
8
9a
Did the sponsoring organization make any taxable distributions under section 4966?...
9a
b
Did the sponsoring organization make a distribution to a donor, donor advisor, or related person?...
9b
10
Section 501(c)(7) organizations. Enter:
a
Initiation fees and capital contributions included on Part VIII, line 12 ...
10a
b
Gross receipts, included on Form 990, Part VIII, line 12, for public use of club facilities
10b
11
Section 501(c)(12) organizations. Enter:
a
Gross income from members or shareholders .........
11a
b
Gross income from other sources (Do not net amounts due or paid to other sources against amounts due or received from them.) ..........
11b
12a
Section 4947(a)(1) non-exempt charitable trusts. Is the organization filing Form 990 in lieu of Form 1041?
12a
b
If "Yes," enter the amount of tax-exempt interest received or accrued during the year.
12b
13
Section 501(c)(29) qualified nonprofit health insurance issuers.
a
Is the organization licensed to issue qualified health plans in more than one state?
Note.
See the instructions for additional information the organization must report on Schedule O.
13a
b
Enter the amount of reserves the organization is required to maintain by the states in which the organization is licensed to issue qualified health plans ....
13b
c
Enter the amount of reserves on hand ............
13c
14a
Did the organization receive any payments for indoor tanning services during the tax year?.....
14a
No
b
If "Yes," has it filed a Form 720 to report these payments? If "No," provide an explanation in Schedule O..
14b
Form 990 (2016)
Form 990 (2016)
Page 6
Part VI
Governance, Management, and Disclosure For each "Yes" response to lines 2 through 7b below, and for a "No" response to lines 8a, 8b, or 10b below, describe the circumstances, processes, or changes in Schedule O. See instructions.
Check if Schedule O contains a response or note to any line in this Part VI ..............
Section A. Governing Body and Management
Yes
No
1a
Enter the number of voting members of the governing body at the end of the tax year
1a
20
If there are material differences in voting rights among members of the governing body, or if the governing body delegated broad authority to an executive committee or similar committee, explain in Schedule O.
b
Enter the number of voting members included in line 1a, above, who are independent
1b
16
2
Did any officer, director, trustee, or key employee have a family relationship or a business relationship with any other officer, director, trustee, or key employee? .................
2
No
3
Did the organization delegate control over management duties customarily performed by or under the direct supervision of officers, directors or trustees, or key employees to a management company or other person? .
3
No
4
Did the organization make any significant changes to its governing documents since the prior Form 990 was filed? ...........................
4
No
5
Did the organization become aware during the year of a significant diversion of the organizations assets? .
5
No
6
Did the organization have members or stockholders? ................
6
Yes
7a
Did the organization have members, stockholders, or other persons who had the power to elect or appoint one or more members of the governing body? ....................
7a
Yes
b
Are any governance decisions of the organization reserved to (or subject to approval by) members, stockholders, or persons other than the governing body? ...................
7b
No
8
Did the organization contemporaneously document the meetings held or written actions undertaken during the year by the following:
a
The governing body? .......................
8a
Yes
b
Each committee with authority to act on behalf of the governing body? ............
8b
Yes
9
Is there any officer, director, trustee, or key employee listed in Part VII, Section A, who cannot be reached at the organizations mailing address? If "Yes," provide the names and addresses in Schedule O.......
9
No
Section B. Policies (This Section B requests information about policies not required by the Internal Revenue Code.)
Yes
No
10a
Did the organization have local chapters, branches, or affiliates? ............
10a
No
b
If "Yes," did the organization have written policies and procedures governing the activities of such chapters, affiliates, and branches to ensure their operations are consistent with the organization's exempt purposes?
10b
11a
Has the organization provided a complete copy of this Form 990 to all members of its governing body before filing the form? ............................
11a
No
b
Describe in Schedule O the process, if any, used by the organization to review this Form 990. .....
12a
Did the organization have a written conflict of interest policy? If "No," go to line 13.......
12a
Yes
b
Were officers, directors, or trustees, and key employees required to disclose annually interests that could give rise to conflicts? ..........................
12b
Yes
c
Did the organization regularly and consistently monitor and enforce compliance with the policy? If "Yes," describe in Schedule O how this was done...................
12c
Yes
13
Did the organization have a written whistleblower policy? ...............
13
Yes
14
Did the organization have a written document retention and destruction policy? .........
14
No
15
Did the process for determining compensation of the following persons include a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision?
a
The organizations CEO, Executive Director, or top management official ...........
15a
Yes
b
Other officers or key employees of the organization ................
15b
Yes
If "Yes" to line 15a or 15b, describe the process in Schedule O (see instructions).
16a
Did the organization invest in, contribute assets to, or participate in a joint venture or similar arrangement with a taxable entity during the year? ......................
16a
No
b
If "Yes," did the organization follow a written policy or procedure requiring the organization to evaluate its participation in joint venture arrangements under applicable federal tax law, and take steps to safeguard the organizations exempt status with respect to such arrangements? ............
16b
Section C. Disclosure
17
List the States with which a copy of this Form 990 is required to be filedMediumBullet
VT
18
Section 6104 requires an organization to make its Form 1023 (or 1024 if applicable), 990, and 990-T (501(c)(3)s only) available for public inspection. Indicate how you made these available. Check all that apply.
19
Describe in Schedule O whether (and if so, how) the organization made its governing documents, conflict of interest policy, and financial statements available to the public during the tax year.
20
State the name, address, and telephone number of the person who possesses the organization's books and records:
MediumBulletRobert HerseyHospital Drive PO Box 905 St Johnsbury,VT058190905 (802) 748-7520
Form 990 (2016)
Form 990 (2016)
Page 7
Part VII
Compensation of Officers, Directors,Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors
Check if Schedule O contains a response or note to any line in this Part VII ..............
Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees
1a Complete this table for all persons required to be listed. Report compensation for the calendar year ending with or within the organizations tax year.
RoundBullet List all of the organizations current officers, directors, trustees (whether individuals or organizations), regardless of amount
of compensation. Enter -0- in columns (D), (E), and (F) if no compensation was paid.

RoundBullet List all of the organizations current key employees, if any. See instructions for definition of "key employee."
RoundBullet List the organizations five current highest compensated employees (other than an officer, director, trustee or key employee)
who received reportable compensation (Box 5 of Form W-2 and/or Box 7 of Form 1099-MISC) of more than $100,000 from the
organization and any related organizations.

RoundBullet List all of the organizations former officers, key employees, or highest compensated employees who received more than $100,000
of reportable compensation from the organization and any related organizations.

RoundBullet List all of the organizations former directors or trustees that received, in the capacity as a former director or trustee of the
organization, more than $10,000 of reportable compensation from the organization and any related organizations.

List persons in the following order: individual trustees or directors; institutional trustees; officers; key employees; highest
compensated employees; and former such persons.
Check this box if neither the organization nor any related organization compensated any current officer, director, or trustee.
(A)
Name and Title
(B)
Average hours per week (list any hours for related organizations below dotted line)
(C)
Position (do not check more than one box, unless person is both an officer and a director/trustee)
(D)
Reportable compensation from the organization (W- 2/1099-MISC)
(E)
Reportable compensation from related organizations (W- 2/1099-MISC)
(F)
Estimated amount of other compensation from the organization and related organizations
Individual Trustee or Director; Institutional Trustee; OfficerInd; Key Employee; Highest compensated employee; FormerOfcrDirectorTrusteeInd;
(1) Steve McConnell......................................................................
Trustee
2.00
.................
0.10
X 0 0 0
(2) James Newell......................................................................
Past Trustee
2.00
.................
0.10
X 0 0 0
(3) Joe Kasprzak......................................................................
Trustee
2.00
.................
0.10
X 0 0 0
(4) Thomas Robinson......................................................................
Vice Chair 1 / Treasurer
8.00
.................
0.10
X X 0 0 0
(5) Thomas Paul Esq......................................................................
Past Trustee
2.00
.................
0.10
X 0 0 0
(6) Catherine Boykin......................................................................
Trustee
2.00
.................
0.10
X 0 0 0
(7) Michael Rousse MD......................................................................
Past Trustee
40.00
.................
0.10
X 268,013 0 34,340
(8) Steve Nichols......................................................................
Chair
8.00
.................
0.10
X X 0 0 0
(9) Mark Price MD......................................................................
Trustee
40.00
.................
0.10
X 209,057 0 38,500
(10) Deborah Hunt......................................................................
Trustee
2.00
.................
0.10
X 0 0 0
(11) Terry Larsen DO......................................................................
Trustee
40.00
.................
0.10
X 293,373 0 42,423
(12) Darcie McCann......................................................................
Trustee
2.00
.................
0.10
X 0 0 0
(13) Mary Parent......................................................................
Trustee
2.00
.................
0.10
X 0 0 0
(14) Terry Hoffer......................................................................
Trustee
2.00
.................
0.10
X 0 0 0
(15) Kristen Michaud......................................................................
Past Trustee
2.00
.................
0.10
X 0 0 0
(16) Martha Davis......................................................................
Trustee
2.00
.................
0.10
X 0 0 0
(17) Jane Arthur......................................................................
Trustee
2.00
.................
0.10
X 0 0 0
Form 990 (2016)
Form 990 (2016)
Page 8
Part VII
Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (continued)
(A)
Name and Title
(B)
Average hours per week (list any hours for related organizations below dotted line)
(C)
Position (do not check more than one box, unless person is both an officer and a director/trustee)
(D)
Reportable compensation from the organization (W- 2/1099-MISC)
(E)
Reportable compensation from related organizations (W- 2/1099-MISC)
(F)
Estimated amount of other compensation from the organization and related organizations
Individual Trustee or Director; Institutional Trustee; OfficerInd; Key Employee; Highest compensated employee; FormerOfcrDirectorTrusteeInd;
(18) Martha Ide........................................................................
Trustee
2.00
.......................0.10
X 0 0 0
(19) Laurel St James-Long........................................................................
Trustee
2.00
.......................0.10
X 0 0 0
(20) Ken Norris........................................................................
Trustee
2.00
.......................0.10
X 0 0 0
(21) Patrick Flood........................................................................
Past Trustee
2.00
.......................0.10
X 0 0 0
(22) John Goodrich........................................................................
Trustee
2.00
.......................0.10
X 0 0 0
(23) Barbara Hatch........................................................................
Trustee
2.00
.......................0.10
X 0 0 0
(24) Judythe Desrochers........................................................................
Trustee
2.00
.......................0.10
X 0 0 0
(25) Steve Feltus........................................................................
Trustee
2.00
.......................0.10
X 0 0 0
(26) Paul Bengtson........................................................................
CEO
40.00
.......................1.00
X 344,810 0 29,208
(27) Robert Hersey........................................................................
CFO
40.00
.......................1.00
X 198,755 0 28,041
(28) Richard N Gagnon........................................................................
Physician
40.00
.......................0.00
X 450,286 0 28,428
(29) Craig D Dreishbach........................................................................
Physician
40.00
.......................0.00
X 336,903 0 27,094
(30) Matthew Prohaska........................................................................
Physician
40.00
.......................0.00
X 459,520 0 36,011
(31) Ryan Sexton........................................................................
Physician
40.00
.......................0.00
X 446,853 0 36,008
(32) Eugene Dixon........................................................................
Physician
40.00
.......................0.00
X 412,775 0 20,104
1b Sub-Total................MediumBullet
c Total from continuation sheets to Part VII, Section A....MediumBullet
d Total (add lines 1b and 1c)...........MediumBullet 3,420,345 0 320,157
2
Total number of individuals (including but not limited to those listed above) who received more than $100,000 of reportable compensation from the organization MediumBullet51
Yes
No
3
Did the organization list any former officer, director or trustee, key employee, or highest compensated employee on line 1a? If "Yes," complete Schedule J for such individual ..............
3
No
4
For any individual listed on line 1a, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000? If "Yes," complete Schedule J for such
individual
...........................
4
Yes
5
Did any person listed on line 1a receive or accrue compensation from any unrelated organization or individual for services rendered to the organization? If "Yes," complete Schedule J for such person ........
5
Yes
Section B. Independent Contractors
1
Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from the organization. Report compensation for the calendar year ending with or within the organizations tax year.
(A)
Name and business address
(B)
Description of services
(C)
Compensation
Dan Wyand PT & Associates PLLC

2020 Trestle Road
Danville,VT05828
Physical Therapy Services 2,097,345
Vermont Radiologists

PO Box 217
St Johnsbury,VT05819
Diagnostic Imaging Services 1,303,036
University of Vermont Medical Center

111 Colchester Avenue
Burlington,VT05401
Laboratory Services 1,108,604
Barton Associates

PO Box 417844
Boston,MA02241
Medical Staffing 546,973
Medical Doctor Associates

PO Box 277185
Atlanta,GA30384
Medical Staffing 475,898
2
Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 of compensation from the organization MediumBullet11
Form 990 (2016)
Form 990 (2016)
Page 9
Part VIII
Statement of Revenue
Check if Schedule O contains a response or note to any line in this Part VIII .............
(A)
Total revenue
(B)
Related or
exempt
function
revenue
(C)
Unrelated
business
revenue
(D)
Revenue
excluded from
tax under sections
512-514
Contributions, Gifts, GrantAmt and OtherAmt Similar Amounts 1a Federated campaigns..1a
b Membership dues..1b
c Fundraising events..1c
d Related organizations1d
e Government grants (contributions)1e
f All other contributions, gifts, grants, and similar amounts not included above1f 32,026
g Noncash contributions included in lines 1a-1f:$ 32,026
h Total.Add lines 1a-1f.......MediumBullet 32,026
 Program Service RevenueAmt Business Code
2a Patient Service Rev. 621400 157,055,099 155,004,782 2,050,317
b Other Patient Service Revenue 621400 3,262,982 2,756,477 506,505
c Meaningful Use Revenue 621400 243,220 243,220
d Provision for Bad Debts 621400 -3,387,319 -3,387,319
e Contractual/Char. Adj. 621400 -76,873,263 -76,873,263
f All other program service revenue .
g Total.Add lines 2a2f....MediumBullet 80,300,719
 OtherAmtRevenueAmt 3 Investment income (including dividends, interest, and othersimilar amounts) ......MediumBullet 520,748 520,748
4 Income from investment of tax-exempt bond proceedsMediumBullet
5 Royalties...........MediumBullet
(ii) Personal (i) Real
6a Gross rents 30,843
b Less: rental expenses 0
c Rental income or (loss) 30,843
d Net rental income or (loss)......MediumBullet 30,843 30,843
(ii) Other (i) Securities
7a Gross amount from sales of assets other than inventory 5,436,776
b Less: cost or other basis and sales expenses 183 5,210,600
c Gain or (loss) -183 226,176
d Net gain or (loss).....MediumBullet 225,993 225,993
8a Gross income from fundraising events (not including $ of contributions reported on line 1c). See Part IV, line 18 ....
a
b Less: direct expenses ...b
c Net income or (loss) from fundraising events..MediumBullet
9a Gross income from gaming activities.
See Part IV, line 19 ...
a
b Less: direct expenses ...b
c Net income or (loss) from gaming activities..MediumBullet
10a Gross sales of inventory, less
returns and allowances ..
a
b Less: cost of goods sold ..b
c Net income or (loss) from sales of inventory..MediumBullet
Business Code Miscellaneous Revenue
11a
b
c
d All other revenue ....
e Total. Add lines 11a11d ...... MediumBullet
12 Total revenue. See Instructions......MediumBullet 81,110,329 77,743,897 2,050,317 1,284,089
Form 990 (2016)
Form 990 (2016)
Page 10
Part IX
Statement of Functional Expenses
Section 501(c)(3) and 501(c)(4) organizations must complete all columns. All other organizations must complete column (A).Check if Schedule O contains a response or note to any line in this Part IX ..............
Do not include amounts reported on lines 6b,
7b, 8b, 9b, and 10b of Part VIII.
(A)
Total expenses
(B)
Program service expenses
(C)
Management and general expenses
(D)
Fundraising expenses
1 Grants and other assistance to domestic organizations and domestic governments. See Part IV, line 21 223,766 223,766
2 Grants and other assistance to domestic individuals. See Part IV, line 22
3 Grants and other assistance to foreign organizations, foreign governments, and foreign individuals. See Part IV, line 15 and 16.
4 Benefits paid to or for members
5 Compensation of current officers, directors, trustees, and key employees .... 1,486,520 885,705 600,815
6 Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....
7 Other salaries and wages 34,709,723 31,014,852 3,694,871
8 Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) .... 1,438,995 1,285,382 153,613
9 Other employee benefits ....... 8,043,932 7,118,766 925,166
10 Payroll taxes ........... 2,420,642 2,135,837 284,805
11 Fees for services (non-employees):
a Management ...... 111,590 14,074 97,516
b Legal ......... 46,647 46,647
c Accounting ........... 85,770 85,770
d Lobbying ...........
e Professional fundraising services. See Part IV, line 17
f Investment management fees ...... 96,974 96,974
g Other (If line 11g amount exceeds 10% of line 25, column (A) amount, list line 11g expenses on Schedule O) 8,377,191 7,511,508 865,683
12 Advertising and promotion .... 100,981 4,393 96,588
13 Office expenses ....... 3,662,143 1,670,481 1,991,662
14 Information technology ...... 76,009 17,116 58,893
15 Royalties ..
16 Occupancy ........... 2,287,134 1,876,601 410,533
17 Travel ............ 145,980 132,610 13,370
18 Payments of travel or entertainment expenses for any federal, state, or local public officials .
19 Conferences, conventions, and meetings .... 50,693 23,992 26,701
20 Interest ........... 267,890 267,890
21 Payments to affiliates .......
22 Depreciation, depletion, and amortization .. 3,069,762 3,056,967 12,795
23 Insurance ... 1,043,008 1,043,008
24 Other expenses. Itemize expenses not covered above (List miscellaneous expenses in line 24e. If line 24e amount exceeds 10% of line 25, column (A) amount, list line 24e expenses on Schedule O.)
a Medical Supplies 7,247,097 7,247,097
b Medicaid Provider Tax 4,297,275 4,297,275
c
d
e All other expenses
25 Total functional expenses. Add lines 1 through 24e 79,289,722 69,559,430 9,730,292 0
26 Joint costs. Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation. Check here MediumBullet if following SOP 98-2 (ASC 958-720).
Form 990 (2016)
Form 990 (2016)
Page 11
Part X
Balance Sheet
Check if Schedule O contains a response or note to any line in this Part IX ..............
(A)
Beginning of year
(B)
End of year
Assets 1 Cashnon-interest-bearing ........ 6,197 1 6,661
2 Savings and temporary cash investments ......... 7,542,655 2 8,183,089
3 Pledges and grants receivable, net ...... 3
4 Accounts receivable, net ............. 9,565,211 4 9,065,414
5 Loans and other receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of Schedule L .............
5
6 Loans and other receivables from other disqualified persons (as defined under section 4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employers and sponsoring organizations of section 501(c)(9) voluntary employees' beneficiary organizations (see instructions) Complete Part II of Schedule L ..............
6
7 Notes and loans receivable, net .... 7
8 Inventories for sale or use ........ 1,325,738 8 1,325,186
9 Prepaid expenses and deferred charges ...... 473,291 9 555,079
10a Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D 10a 59,475,302
b Less: accumulated depreciation 10b 38,153,958 21,091,013 10c 21,321,344
11 Investmentspublicly traded securities . 15,773,737 11 17,103,843
12 Investmentsother securities. See Part IV, line 11 ..... 12
13 Investmentsprogram-related. See Part IV, line 11 .. 13
14 Intangible assets ............... 14
15 Other assets. See Part IV, line 11 ........... 7,754,531 15 6,388,027
16 Total assets. Add lines 1 through 15 (must equal line 34)... 63,532,373 16 63,948,643
Liabilities 17 Accounts payable and accrued expenses ..... 6,620,748 17 7,594,034
18 Grants payable ... 18
19 Deferred revenue ......... 1,027,694 19 416,736
20 Tax-exempt bond liabilities ......... 12,122,812 20 11,413,143
21 Escrow or custodial account liability. Complete Part IV of Schedule D 21
22 Loans and other payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
persons. Complete Part II of Schedule L.. 22
23 Secured mortgages and notes payable to unrelated third parties .. 23
24 Unsecured notes and loans payable to unrelated third parties .. 24
25 Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D 5,200,063 25 5,388,743
26 Total liabilities. Add lines 17 through 25.. 24,971,317 26 24,812,656
Net Assets or Fund Balance Organizations that follow SFAS 117 (ASC 958), check here MediumBullet and complete lines 27 through 29, and lines 33 and 34.
27 Unrestricted net assets 36,665,109 27 37,151,871
28 Temporarily restricted net assets ........... 1,454,018 28 1,541,980
29 Permanently restricted net assets 441,929 29 442,136
Organizations that do not follow SFAS 117 (ASC 958), check here MediumBullet and complete lines 30 through 34.
30 Capital stock or trust principal, or current funds ..... 30
31 Paid-in or capital surplus, or land, building or equipment fund ... 31
32 Retained earnings, endowment, accumulated income, or other funds 32
33 Total net assets or fund balances ........... 38,561,056 33 39,135,987
34 Total liabilities and net assets/fund balances ........ 63,532,373 34 63,948,643
Form 990 (2016)
Form 990 (2016)
Page 12
Part XI
Reconcilliation of Net Assets
Check if Schedule O contains a response or note to any line in this Part XI ..............
1
Total revenue (must equal Part VIII, column (A), line 12) ............
1
81,110,329
2
Total expenses (must equal Part IX, column (A), line 25) ............
2
79,289,722
3
Revenue less expenses. Subtract line 2 from line 1 ..............
3
1,820,607
4
Net assets or fund balances at beginning of year (must equal Part X, line 33, column (A)) ..
4
38,561,056
5
Net unrealized gains (losses) on investments ...............
5
666,766
6
Donated services and use of facilities .................
6
7
Investment expenses .....................
7
8
Prior period adjustments .....................
8
9
Other changes in net assets or fund balances (explain in Schedule O) ........
9
-1,912,442
10
Net assets or fund balances at end of year. Combine lines 3 through 9 (must equal Part X, line 33, column (B))
10
39,135,987
Part XII
Financial Statements and Reporting
Check if Schedule O contains a response or note to any line in this Part XII .............
Yes
No
1
Accounting method used to prepare the Form 990:
If the organization changed its method of accounting from a prior year or checked "Other," explain in
Schedule O.
2a
Were the organizations financial statements compiled or reviewed by an independent accountant?
2a
No
If Yes, check a box below to indicate whether the financial statements for the year were compiled or reviewed on a separate basis, consolidated basis, or both:
b
Were the organizations financial statements audited by an independent accountant?
2b
Yes
If Yes, check a box below to indicate whether the financial statements for the year were audited on a separate basis, consolidated basis, or both:
c
If "Yes," to line 2a or 2b, does the organization have a committee that assumes responsibility for oversight of the audit, review, or compilation of its financial statements and selection of an independent accountant?
2c
Yes
If the organization changed either its oversight process or selection process during the tax year, explain in Schedule O.
3a
As a result of a federal award, was the organization required to undergo an audit or audits as set forth in the Single Audit Act and OMB Circular A-133?
3a
No
b
If "Yes," did the organization undergo the required audit or audits? If the organization did not undergo the required audit or audits, explain why in Schedule O and describe any steps taken to undergo such audits.
3b
Form 990 (2016)
Form 990 (2016)
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