2020-07-10T18:45:29-05:00 2019-06-30 KPMG LLP 8350 Broad Street Suite 900 McLean VA 22102 990 2018-07-01 521542230 HH Medstar Health Inc % JOEL BRYAN HHME 4107726721 10980 Grantchester Way Columbia MD 21044 JOEL BRYAN VP/TREASURER 4017726721 2020-07-10 true JG WHITE P01498698 7032868000 2020-06-15 199.207.253.101 54028020201925000012 2020-07-10 P 64BCC942B4D404C4B92284458D6D15C2F98C46C2 3AAD66ADA2E5DF4BC89011C66E354EB32E898C52 2018 2021-01-29 14:40:06Z Kenneth Samet 10980 Grantchester Way Columbia MD 21044 704456550 false X N/A X 1987 MD PLAN, DEVELOP, COORDINATE, DIRECT AND MANAGE AN INTEGRATED HEALTHCARE SYSTEM. 4 0 3330 0 0 0 2127142 1360010 525675845 653903102 628566 -4424 20772193 49002411 549203746 704261099 0 0 0 0 384429443 513614681 0 0 0 211568279 232783228 595997722 746397909 -46793976 -42136810 124886779 212143612 360065227 444965043 -235178448 -232821431 X SEE SCHEDULE O false false 471300526 653903102 HH MEDSTAR HEALTH, INC.'S LARGEST PROGRAM SERVICE IS TO PROVIDE MANAGEMENT AND SUPPORT TO MEDSTAR HEALTH, INC. AND ITS AFFILIATED ENTITIES. IN ADDITION TO THE PROGRAM SERVICE EXPENSES LISTED ABOVE, HH MEDSTAR HEALTH INCURRED $275.1M OF MANAGEMENT AND GENERAL EXPENSES IN PROVIDING MANAGEMENT AND SUPPORT TO ITS AFFILIATED ENTITIES. THE PROGRAM SERVICE EXPENSES INCURRED BY THE ORGANIZATION RELATE TO CORPORATE SERVICE FUNCTIONS INCLUDING FINANCIAL SERVICES AND INFORMATION SYSTEMS. HH MEDSTAR HEALTH, INC. PROVIDES PHYSICIAN SERVICES THROUGH ITS PHYSICIAN PRACTICES TO MEDSTAR HEALTH, INC. AND ITS AFFILIATED ENTITIES. THESE PHYSICIAN PRACTICES SERVE AS PHYSICIAN PRACTICES TO EACH OF THE HOSPITALS (WHICH ARE INCLUDED IN HH MEDSTAR HEALTH INC.'S SUPPORTED ORGANIZATIONS) IN THE MEDSTAR HEALTH INTEGRATED HEALTH CARE SYSTEM. 471300526 true false false false false false false false false false true false false true true true false true false false false false false false false false false false false true false false false false false false false false false false false false true true true true false false true 186 0 true 3330 true false false false false false false false false false false true false X 4 0 false false false false true true true true true false false true true true true true true true true true false X JOEL BRYAN 4107726721 10980 GRANTCHESTER WAY COLUMBIA MD 21044 X KENNETH A SAMET PRESIDENT/DIRECTOR 1.0 39.0 X X 0 6910499 87839 MICHAEL J CURRAN TREASURER/DIRECTOR 1.0 39.0 X X 0 3744887 55996 ERIC R WAGNER VICE PRESIDENT/DIRECTOR 1.0 39.0 X X 0 1709104 69496 STEPHEN RT EVANS MD DIRECTOR 1.0 39.0 X 0 1984186 63783 OLIVER M JOHNSON VP/SECRETARY 1.0 39.0 X 0 1375882 45038 RICHARD GOLDBERG MMG PRESIDENT 40.0 0.0 X 1717290 0 41725 Atul Shah PHYSICIAN 40.0 0.0 X 1336372 0 25458 Anil Shah PHYSICIAN 40.0 0.0 X 1586740 0 32791 Nimesh Khatri Physician 40.0 0.0 X 1135694 0 30278 David Jordan Chair Department 40.0 0.0 X 1101896 0 22046 Nayan Shah Physician 40.0 0.0 X 1093834 0 23167 7971826 15724558 497617 1787 false true false NTT DATA SERVICES LLC 7950 Legacy Drive Suite 900 PLANO TX 75024 IT services 35957003 CERNER CORPORATION PO BOX 594 OREM UT 840590594 MEDICAL SERVICES 33616540 CERNER HEALTH SERVICES INC 2800 Rockcreek Pkwy KANSAS CITY MO 64117 IT SERVICES 8721755 TEK SYSTEMS PO BOX 198568 ATLANTA GA 303848568 Staffing services 3854789 EVOLENT HEALTH LLC 800 N GLEBE RD STE 500 ARLINGTON VA 22203 Professional Svcs 3820549 127 1360010 1360010 NET PATIENT SERVICE REVENUE 621400 392202767 392202767 MANAGEMENT FEES 900099 253066553 253066553 OTHER PHYSICIAN REVENUE 621400 5369150 5369150 PROVIDER INCENTIVE FEES 900099 3256132 3256132 MEANINGFUL USE INCOME 900099 8500 8500 653903102 191027 191027 0 0 23706 23706 0 23706 23706 195451 -195451 -195451 -195451 0 0 0 0 0 0 0 0 0 SUBSIDY REVENUE - INTERCOMPANY 900099 37068525 37068525 NON-PHYSICIAN INTERCO REVENUE 900099 2533990 2533990 MISCELLANEOUS REVENUE 900099 9251324 9251324 124866 124866 48978705 704261099 653903102 0 48997987 0 0 0 0 1759015 1303440 455575 0 449556713 337271572 112285141 7652309 5507228 2145081 27737414 10021254 17716160 26909230 18406848 8502382 15551253 1653335 13897918 86457 69986 16471 0 0 0 162261 162261 61807185 32620362 29186823 1739856 218607 1521249 13140741 8293784 4846957 11265970 162613 11103357 0 13982082 9641502 4340580 3000480 2124003 876477 0 757059 556763 200296 714785 700245 14540 0 8563824 6588747 1975077 5150894 5339960 -189066 MAINTENANCE 57798225 -1465103 59263328 MED/SURGICAL SUPPLIES 26561798 26436831 124967 UTILITIES 9175294 3210933 5964361 OTHER MISCELLANEOUS 3004698 2485143 519555 320366 152473 167893 746397909 471300526 275097383 0 2034738 3573551 0 0 0 0 32770650 59110191 0 0 0 0 0 18138 1191059 1170805 22289323 29494575 118318347 34895235 64513828 83423112 0 0 0 6205032 0 0 1595676 1595676 491505 27552532 124886779 212143612 161119072 186661112 0 0 2320022 2383690 0 0 0 0 0 0 0 0 0 0 196626133 255920241 360065227 444965043 X -235178448 -232821431 0 0 0 0 -235178448 -232821431 124886779 212143612 X -42136810 -478377 44972204 X false true X true false X X 22 BAY LIFE SERVICES 521496539 10 true 0 0 FRANKLIN SQUARE HOSPITAL CENTER INC 520608007 3 true 0 0 GOOD SAMARITAN NURSING CENTER INCORPORATED 521672866 10 true 0 0 GS HOUSING INCORPORATED 521481656 10 true 0 0 HARBOR HOSPITAL INC 520491660 3 true 0 0 THE MEDSTAR-GEORGETOWN MEDICAL CENTER INC 522218584 3 true 0 0 MEDSTAR HEALTH INFUSION INC 521980510 10 true 0 0 MEDSTAR HEALTH RESEARCH INSTITUTE INC 526056274 4 true 0 0 MEDSTAR HEALTH VISITING NURSES ASSOCIATION INC 530196597 3 true 0 0 MEDSTAR SOUTHERN MARYLAND HOSPITAL CENTER INC 460726303 3 true 0 0 MEDSTAR SURGERY CENTER INC 521061679 10 true 0 0 MEDSTAR VNA HEALTHCARE INC 521458516 10 true 0 0 MGH COMMUNITY HEALTH INC 521372467 10 true 0 0 MONTGOMERY GENERAL HOSPITAL INC 520646893 3 true 0 0 NATIONAL REHABILITATION HOSPITAL INC 521369749 3 true 0 0 NRH REGIONAL REHAB AT OLNEY INC 522310902 3 true 0 0 ST MARY'S HOSPITAL OF ST MARY'S COUNTY INC 520619006 3 true 0 0 SUBURBANNRH MEDICAL REHABILITATION INC 521931151 3 true 0 0 THE UNION MEMORIAL HOSPITAL 520591685 3 true 0 0 THE GOOD SAMARITAN HOSPITAL OF MARYLAND INC 520591607 3 true 0 0 WASHINGTON HOSPITAL CENTER CORPORATION 521272129 3 true 0 0 WOODBOURNE WOODS INC 522299070 10 true 0 0 22 0 0 true false false false false false false false false false false false false false false true true true X true true SCHEDULE A, PART I, LINE 12G OTHER SUPPORT THE EXPENSES INCURRED BY HH MEDSTAR HEALTH, INC. THAT ARE REPORTED ON FORM 990, PART IX WERE EXPENDED TO PROVIDE SUPPORT AND MANAGEMENT SERVICES TO ITS SUPPORTED ORGANIZATIONS. SCHEDULE A, PART IV, SECTION D, LINE 3 THE OFFICERS/DIRECTORS OF THE SUPPORTED ORGANIZATIONS HAVE A CLOSE AND CONTINUOUS RELATIONSHIP WITH HH MEDSTAR HEALTH, INC., AND THUS A SIGNIFICANT VOICE. KEN SAMET, THE PRESIDENT OF HH MEDSTAR HEALTH, INC., SERVES ON THE BOARD OF DIRECTORS OF MANY OF HH MEDSTAR HEALTH INC.'S SUPPORTED ORGANIZATIONS. BECAUSE OF THIS, THE SUPPORTED ORGANIZATIONS ARE ABLE TO HAVE A SIGNIFICANT VOICE IN THE INVESTMENT POLICIES OF HH MEDSTAR HEALTH AND IN DIRECTING THE USE OF ITS INCOME AND ASSETS. SCHEDULE A, PART IV, SECTION E, LINE 2A SUBSTANTIALLY ALL OF THE ACTIVITIES OF HH MEDSTAR HEALTH, INC. DIRECTLY FURTHER THE EXEMPT PURPOSES OF THE SUPPORTED ORGANIZATIONS LISTED. HH MEDSTAR HEALTH, INC. PROVIDES ADMINISTRATIVE AND MANAGEMENT SERVICES TO ITS SUPPORTED ORGANIZATIONS TO PROMOTE AN INTEGRATED HEALTH CARE SYSTEM. HH MEDSTAR HEALTH, INC. ALSO DIRECTLY FURTHERS THE EXEMPT PURPOSES OF ITS SUPPORTED ORGANIZATIONS BY PROVIDING PHYSICIAN SERVICES THROUGH ITS PHYSICIAN PRACTICES. HH MEDSTAR HEALTH, INC. IS RESPONSIVE TO ITS SUPPORTED ORGANIZATIONS WHEN PROVIDING THESE SERVICES. SUBSTANTIALLY ALL OF THE STAFFING AND FINANCIAL RESOURCES OF HH MEDSTAR HEALTH, INC. WERE DEDICATED TO ACTIVITIES THAT DIRECTLY FURTHER THE EXEMPT PURPOSES OF ITS SUPPORTED ORGANIZATIONS. SCHEDULE A, PART IV, SECTION E, LINE 2B HH MEDSTAR HEALTH, INC. PROVIDED ADMINISTRATIVE AND MANAGEMENT SUPPORT SERVICES TO ITS SUPPORTED ORGANIZATIONS INCLUDING FINANCIAL SERVICES AND INFORMATION SYSTEMS SERVICES. IF NOT FOR THE EXISTENCE OF HH MEDSTAR HEALTH, INC., THESE SUPPORTED ORGANIZATIONS WOULD PERFORM THESE SERVICES THEMSELVES. HOWEVER, IT IS MORE EFFICIENT TO PERFORM ALL OF THESE SERVICES AT THE SAME ORGANIZATION RATHER THAN AT 22 SEPARATE ORGANIZATIONS (THE SUPPORTED ORGANIZATIONS). HH MEDSTAR HEALTH, INC. PROVIDES PHYSICIAN SERVICES THROUGH BEING THE SOLE MEMBER OF A NUMBER OF SINGLE-MEMBER LLC PHYSICIAN PRACTICES. THESE PHYSICIAN PRACTICES SERVE AS PHYSICIAN PRACTICES TO EACH OF THE HOSPITALS (WHICH ARE INCLUDED IN HH MEDSTAR HEALTH INC.'S SUPPORTED ORGANIZATIONS) IN THE MEDSTAR HEALTH INTEGRATED HEALTH CARE SYSTEM. IF NOT FOR THE EXISTENCE OF HH MEDSTAR HEALTH, INC., ITS SUPPORTED ORGANIZATIONS COULD OWN THESE PHYSICIAN PRACTICES THEMSELVES. HOWEVER, IT IS MORE EFFICIENT TO PERFORM THESE PHYSICIAN SERVICES UNDERNEATH A SINGLE ORGANIZATION'S OWNERSHIP (HH MEDSTAR HEALTH, INC.) RATHER THAN AT MULTIPLE SEPARATE ORGANIZATIONS (THE SUPPORTED ORGANIZATIONS). 53926 53926 457050 43244 413806 11481127 5494309 5986818 31535190 19590297 11944893 74791054 9767385 65023669 83423112 INTERCOMPANY RECEIVABLES 27053985 OTHER ASSETS 52500 OPTION IT ASSET 446047 27552532 0 PENSION LIABILITY 236403582 CAPITAL LEASE LIABILITY 12902067 CREDIT PATIENT BALANCES A/R 5846903 STOCK OPTION PLAN 404064 WORKERS COMP LIABILITY 238188 OTHER LIABILITIES 125437 255920241 X FIN 48 FOOTNOTE SCHEDULE D, PART X INCOME TAXES ARE ACCOUNTED FOR UNDER THE ASSET AND LIABILITY METHOD. DEFERRED TAX ASSETS AND LIABILITIES ARE RECOGNIZED FOR THE FUTURE TAX CONSEQUENCES ATTRIBUTABLE TO DIFFERENCES BETWEEN THE FINANCIAL STATEMENT CARRYING AMOUNTS OF EXISTING ASSETS AND LIABILITIES AND THEIR RESPECTIVE TAX BASES AND OPERATING LOSS AND TAX CREDIT CARRYFORWARDS. DEFERRED TAX ASSETS AND LIABILITIES ARE MEASURED USING ENACTED TAX RATES EXPECTED TO APPLY TO TAXABLE INCOME IN THE YEARS IN WHICH THOSE TEMPORARY DIFFERENCES ARE EXPECTED TO BE RECOVERED OR SETTLED. THE EFFECT ON DEFERRED TAX ASSETS AND LIABILITIES OF A CHANGE IN TAX RATES IS RECOGNIZED IN THE PERIOD THAT INCLUDES THE ENACTMENT DATE. ANY CHANGES TO THE VALUATION ALLOWANCE ON THE DEFERRED TAX ASSET ARE REFLECTED IN THE YEAR OF CHANGE. THE CORPORATION ACCOUNTS FOR UNCERTAIN TAX POSITIONS IN ACCORDANCE WITH THE FASB ACCOUNTING STANDARDS CODIFICATION (ASC) TOPIC 740, INCOME TAXES. THERE WAS NO LIABILITY RECORDED FOR UNCERTAIN TAX POSITIONS AS OF JUNE 30, 2019. X X X X X X false false false false false false false false false KENNETH A SAMET PRESIDENT/DIRECTOR 0 1887489 0 5002733 0 20277 0 52149 0 35690 0 6998338 0 0 MICHAEL J CURRAN TREASURER/DIRECTOR 0 1233051 0 2511836 0 0 0 15186 0 40810 0 3800883 0 0 ERIC R WAGNER VICE PRESIDENT/DIRECTOR 0 845754 0 863350 0 0 0 28588 0 40908 0 1778600 0 0 STEPHEN RT EVANS MD DIRECTOR 0 902374 0 1081812 0 0 0 17599 0 46184 0 2047969 0 0 OLIVER M JOHNSON VP/SECRETARY 0 638424 0 737458 0 0 0 8250 0 36788 0 1420920 0 0 RICHARD GOLDBERG MMG PRESIDENT 696405 0 720885 0 300000 0 23472 0 18253 0 1759015 0 0 0 Atul Shah PHYSICIAN 449174 0 884846 0 2352 0 8250 0 17208 0 1361830 0 0 0 Anil Shah PHYSICIAN 439531 0 1144928 0 2281 0 8250 0 24541 0 1619531 0 0 0 Nimesh Khatri Physician 446046 0 689648 0 0 0 8250 0 22028 0 1165972 0 0 0 David Jordan Chair Department 951896 0 150000 0 0 0 4900 0 17146 0 1123942 0 0 0 Nayan Shah Physician 615887 0 475595 0 2352 0 8250 0 14917 0 1117001 0 0 0 SCHEDULE J, PART III Mssrs. Samet and Curran's compensation in Part II, Column (B) includes $1,950,307 and $986,203 respectively, representing benefits received from executive retirement plans that are comprised of target benefits determined annually based on compensation and years of service and long-term retention arrangements. FORM 990, PART III, LINE 1 - ORGANIZATION'S MISSION The mission of MedStar Health, Inc. (MedStar), a Maryland non-stock membership corporation, is to serve our patients, those who care for them and our communities. MedStar is the controlling entity of an integrated health services organization (the System) offering a wide variety of healthcare services to residents of Maryland and the Washington, D.C., region (comprising Baltimore City, 11 counties in Maryland, the District of Columbia, and northern Virginia). MedStar Health is the regions largest health system and one of the largest employers in Maryland and Washington, D.C., with approximately 30,000 associates and 4,300 affiliated physicians. Through our hospitals, outpatient facilities, physician organizations, and other health-related organizations, the System offers a broad continuum of healthcare services, including primary care, acute care (secondary, tertiary and quaternary), emergency, trauma and urgent care, adult burn care, rehabilitation (hospital-based and outpatient), post-acute care, ambulatory surgery, home care, health promotion and wellness, and medical research and education. The System operates the largest home health business in the region with 320,493 visits in fiscal year 2019. MedStar Family Choice, a Medicare and Medicaid managed care company covered 91,300 lives as of June 30, 2019. The Systems physician network includes approximately 2,200 employed physicians. The System offers specialized services that include cancer care, cardiac disease treatment (including heart transplantation), hand surgery, minimally invasive surgery, neurosciences, multi-organ transplantation, neonatal intensive care, orthopaedics, shock/trauma, burn care, and stroke care. MedStar Health Research Institute is the research arm for MedStar, providing scientific, administrative, and regulatory support for research programs that complement the key clinical services and teaching programs in all hospitals across the System. MedStar has one of the largest graduate medical education programs in the country, training approximately 1,100 medical residents and fellows annually, and is the medical education and clinical partner of Georgetown University. In fiscal year 2019, MedStar hospitals had approximately 129,735 inpatient admissions and approximately 5,065,250 outpatient visits including 478,823 emergency visits. ORGANIZATION MEMBERS PART VI, LINE 6 THE ORGANIZATION IS AN AFFILIATE AND SUBSIDIARY OF MEDSTAR HEALTH, INC. MEDSTAR HEALTH, INC., OR ONE OF ITS AFFILIATES AND SUBSIDIARIES, IS THE SOLE MEMBER OF THE ORGANIZATION. DESCRIPTION OF MEMBERS PART VI, LINE 7A AS AN AFFILIATE AND SUBSIDIARY OF MEDSTAR HEALTH, INC., THE ORGANIZATION MAY RECOMMEND PERSON(S) FOR MEMBERSHIP ON THE ORGANIZATION'S GOVERNING BODY. ANY SUCH RECOMMENDATION BY THE ORGANIZATION IS SUBJECT TO APPROVAL BY THE GOVERNANCE COMMITTEE OF THE BOARD OF DIRECTORS OF MEDSTAR HEALTH, INC. THE BOARD OF MEDSTAR HEALTH, INC. HAS DELEGATED CERTAIN APPROVAL AUTHORITY TO THE GOVERNANCE COMMITTEE AND THE PRESIDENT & CEO OF MEDSTAR HEALTH, INC. APPROVAL OF DECISIONS OF THE GOVERNING BODY PART VI, LINE 7B AS AN AFFILIATE AND SUBSIDIARY OF MEDSTAR HEALTH, INC., THE BYLAWS OF THE ORGANIZATION ARE SUBJECT TO CERTAIN RESERVED POWERS, WHICH PROVIDE THAT THE SOLE MEMBER OF THE ORGANIZATION MUST APPROVE CERTAIN DECISIONS, INCLUDING BUT NOT LIMITED TO MATTERS CONCERNING THE SALE OR PURCHASE OF REAL OR PERSONAL PROPERTY, CAPITAL BUDGETS, STRATEGIC PLANNING, INVESTMENTS, AND CORPORATE GOVERNANCE. PROCESS FOR REVIEWING FORM 990 PART VI, LINE 11B THE PROCESS FOR REVIEWING THE FORM 990 INCLUDED EDUCATION AND TRANSPARENCY. SENIOR FINANCIAL EXECUTIVES, WORKING WITH INDEPENDENT OUTSIDE EXPERTS, THOROUGHLY REVIEWED FORM 990 AND ACCOMPANYING INSTRUCTIONS. IN ADDITION, SENIOR EXECUTIVES REVIEWED THE RELEVANT SECTIONS OF THE FORM 990 WITH THE FOLLOWING COMMITTEES OF THE ORGANIZATION'S GOVERNING BODY: FINANCE, AUDIT, GOVERNANCE, STRATEGIC PLANNING, AND EXECUTIVE COMPENSATION. FOLLOWING THESE MEETINGS, THE GOVERNING BODY WAS PROVIDED A COPY OF THE FORM 990 IN ITS FINAL FORM AND GIVEN AN OPPORTUNITY TO PROVIDE ANY INPUT OR COMMENTS RELATING TO THE FORM 990 PRIOR TO ITS FILING. CONFLICT OF INTEREST PART VI, LINE 12C POLICY APPOINTMENT OF BOARDS OF DIRECTORS MEDSTAR HEALTH (AND ITS SUBSIDIARIES) REQUIRE ALL NOMINATED DIRECTORS, PRIOR TO THEIR APPOINTMENT OR ELECTION, TO DISCLOSE THE EXISTENCE OF (OR POTENTIAL EXISTENCE OF) ANY TRANSACTION WITH MEDSTAR THAT WOULD RESULT IN A CONFLICT OF INTEREST. SUCH DISCLOSURES (IF ANY) ARE REVIEWED BY THE GOVERNANCE COMMITTEE OF THE MEDSTAR HEALTH BOARD OF DIRECTORS WHICH DETERMINES HOW THE MATTER SHOULD BE RESOLVED. ANNUAL DISCLOSURES - ALL OFFICERS, DIRECTORS, AND SENIOR MANAGERS ALL OFFICERS, DIRECTORS AND SENIOR MANAGERS ARE REQUIRED, NOT LESS THAN ANNUALLY, TO COMPLETE A SURVEY OF QUESTIONS CONCERNING ANY TRANSACTIONS OR RELATIONSHIPS WHICH WOULD OR COULD REPRESENT A CONFLICT OF INTEREST. SUCH DISCLOSURES (IF ANY) RELATED TO DIRECTORS ARE REVIEWED BY THE GOVERNANCE COMMITTEE OF THE MEDSTAR HEALTH BOARD OF DIRECTORS WHICH DETERMINES HOW THE MATTER SHOULD BE RESOLVED. SUCH DISCLOSURES (IF ANY) RELATED TO OFFICERS AND SENIOR MANAGERS ARE REVIEWED BY AN APPROPRIATE EXECUTIVE WHO DETERMINES HOW THE MATTER SHOULD BE RESOLVED. IN ADDITION, OFFICERS AND DIRECTORS OF MARYLAND HOSPITALS AND NURSING CENTERS ARE REQUIRED TO ANNUALLY DISCLOSE ADDITIONAL INFORMATION RELATING TO POTENTIAL CONFLICTS OF INTEREST AND SUCH DISCLOSURES ARE REPORTED TO THE MARYLAND HEALTH SERVICES COST REVIEW COMMISSION (HSCRC). EXECUTIVE COMPENSATION POLICY PART VI, LINE 15 THE EXECUTIVE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS OF MEDSTAR HEALTH, INC. (THE "COMMITTEE") HAS OVERSIGHT OVER THE EXECUTIVE COMPENSATION PROGRAM (THE "PROGRAM") OF MEDSTAR HEALTH, INC. AND ITS AFFILIATES. TOTAL COMPENSATION FOR THE TOP MANAGEMENT OFFICIALS, OFFICERS AND KEY EMPLOYEES OF MEDSTAR HEALTH, INC. AND ITS AFFILIATES ARE REVIEWED AND APPROVED BY THE COMMITTEE WITH ASSISTANCE AND GUIDANCE FROM AN INDEPENDENT THIRD PARTY ADVISOR. THE MEMBERS OF THE COMMITTEE ARE INDEPENDENT FROM ALL OF THE PARTICIPANTS IN THE PROGRAM.THE MAIN OBJECTIVE OF THE PROGRAM IS TO PROVIDE MARKET COMPETITIVE TOTAL COMPENSATION THAT IS INTERNALLY EQUITABLE AND HAS A STRONG PAY-FOR-PERFORMANCE LINKAGE. PERFORMANCE IS EVALUATED AT THE SYSTEM, OPERATING UNIT, AND INDIVIDUAL LEVELS. THE OVERALL TOTAL COMPENSATION PHILOSOPHY IS MANAGED AT THE 75TH PERCENTILE OF THE COMPETITIVE MARKET FOR COMPARABLE SIZE (NET REVENUE) AND TYPE (TAX-EXEMPT HEALTHCARE ORGANIZATIONS). WHERE APPROPRIATE, ADDITIONAL INDUSTRY DATA IS CONSIDERED (GENERAL BUSINESS AND/OR TAXABLE HEALTHCARE) FOR SELECTED POSITIONS THAT CAN BE RECRUITED FROM OR POTENTIALLY LOST TO THESE INDUSTRIES (E.G., INFORMATION TECHNOLOGY, FINANCE, ETC.). THE COMMITTEE HAS ENGAGED ERNST & YOUNG LLP ("E&Y") TO SERVE AS AN ADVISOR ON THE REASONABLENESS AND COMPETITIVENESS OF THE PROGRAM. IN DETERMINING REASONABLENESS AND COMPETITIVENESS, E&Y REVIEWS MARKET PRACTICES AND TRENDS, AND MAKES RECOMMENDATIONS RELATED TO THE PROGRAM. E&Y UTILIZES INFORMATION FROM CUSTOM SURVEYS, NATIONAL COMPENSATION SURVEYS, PROPRIETARY DATABASES, AND CLIENT EXPERIENCES TO DETERMINE ITS FINAL RECOMMENDATIONS. E&Y PRESENTS THEIR FINDINGS AND RECOMMENDATIONS TO THE COMMITTEE. THE COMMITTEE MAKES THE FINAL DECISIONS ON ALL OF THE COMPENSATION DETERMINATIONS OF THE PROGRAM. ALL DECISIONS MADE BY THE COMMITTEE ARE CONTEMPORANEOUSLY DOCUMENTED. FINANCIAL STATEMENT AVAILABILITY PART VI, LINE 19 MEDSTAR HEALTH POSTS ITS ANNUAL FINANCIAL AUDIT AND QUARTERLY FINANCIAL REPORTS TO THE ELECTRONIC MUNICIPAL MARKET ACCESS (EMMA) SYSTEM. THE ORGANIZATION ALSO E-MAILS ITS ANNUAL AND QUARTERLY DISCLOSURES TO HOLDERS OF THE COMPANY'S PUBLICLY TRADED DEBT. THE COMPANY'S GOVERNANCE DOCUMENTS AND CONFLICTS OF INTEREST POLICIES ARE AVAILABLE UPON REQUEST THROUGH ITS CORPORATE (OR AS APPLICABLE ENTITY) PUBLIC INFORMATION OFFICES. OTHER CHANGES IN NET ASSETS PART XI, LINE 9 EQUITY TRANSFERS - NET ASSETS..................$ 129,001,889 ADDITIONAL MINIMUM PENSION LIABILITY...........$ (83,996,431) INCOME TAX PROVISION...........................$ (33,254) ------------- $ 44,972,204 MEDSTAR CONNECT LLC 10980 GRANTCHESTER WAY Columbia MD 21044 271831497 MED INF SVCS MD 280257 13196 HH MEDSTAR MEDSTAR MEDICAL GROUP LLC 10980 GRANTCHESTER WAY Columbia MD 21044 274234575 MEDICAL SVCS MD 34532 -1280451 HH MEDSTAR CARDIOLOGY ASSOCIATES LLC 10980 GRANTCHESTER WAY Columbia MD 21044 274234724 MEDICAL SVCS MD 46173730 9390791 HH MEDSTAR Chesapeake Cardiovascular AssociatesLLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 274465955 MEDICAL SVCS MD 7902595 1533482 HH MEDSTAR MMG MMP LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 274234575 MEDICAL SVCS MD 103783131 29534376 HH MEDSTAR MMG GeorgetoWn Family Practice LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 452660572 MEDICAL SVCS MD 1189468 87028 HH MEDSTAR MEDSTAR SOUTHERN MARYLAND PHYSICIANS LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 460773035 MEDICAL MGMT MD 20574341 3121495 HH MEDSTAR MMG RADIOLOGY LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 464003552 MEDICAL MGMT MD 49273060 7651323 HH MEDSTAR MEDSTAR FSMC PHYSICIANS LLC 10980 GRANTCHESTER WAY Columbia MD 21044 464207755 MEDICAL MGMT MD 0 0 HH MEDSTAR MEDSTAR GSH PHYSICIANS LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 464217508 MEDICAL MGMT MD 0 0 HH MEDSTAR MEDSTAR HARBOR HOSPITAL PHYSICIANS LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 464228016 MEDICAL MGMT MD 0 0 HH MEDSTAR MEDSTAR UMH PHYSICIANS LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 464237992 MEDICAL MGMT MD 0 0 HH MEDSTAR MEDSTAR SHAH MEDICAL GROUP LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 462691028 MEDICAL MGMT MD 98410934 29005515 HH MEDSTAR MedStar House Call LLC 10980 GRANTCHESTER WAY Columbia MD 21044 475145654 GERIATRIC CAR MD 4218567 523709 HH MEDSTAR WHC PHYSICIAN GROUP LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 454019056 Medical Mgmt MD 0 0 HH MEDSTAR MEDSTAR HEART INSTITUTE 10980 GRANTCHESTER WAY COLUMBIA MD 21044 453688816 Medical Svcs MD 0 0 HH MEDSTAR MMG Anesthesiology LLC 10980 Grantchester Way Columbia MD 21044 822967407 Medical Svcs MD 110579195 13331080 HH MEDSTAR MEDSTAR ACCOUNTABLE CARE LLC 10980 Grantchester Way Columbia MD 21044 MEDICAL MGMT MD 9129477 15443841 HH MEDSTAR CHURCH HOME CORPORATION 10980 GRANTCHESTER WAY COLUMBIA MD 21044 237374724 MEDICAL FUND MD 501(c)(3) PF NA true FRANKLIN SQUARE HOSPITAL CENTER INC 9000 FRANKLIN SQUARE DRIVE BALTIMORE MD 21237 520608007 HOSPITAL MD 501(c)(3) 3 NA true HARBOR HOSPITAL INC 3001 SOUTH HANOVER STREET BALTIMORE MD 21225 520491660 HOSPITAL MD 501(c)(3) 3 NA true MEDSTAR HEALTH INC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 522087445 MEDICAL SVCS MD 501(c)(3) 12C III NA false MONTGOMERY GENERAL HOSPITAL 18101 PRINCE PHILIP DRIVE OLNEY MD 20832 520646893 HOSPITAL MD 501(c)(3) 3 NA true THE GOOD SAMARITAN HOSPITAL OF MARYLAND 5601 LOCH RAVEN BLVD BALTIMORE 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