2019-08-15T07:55:37-05:00 2018-09-30 WithumSmithBrown PC 200 Jefferson Park Suite 400 Whippany NJ 079811070 990 2017-10-01 050259004 THE MEMORIAL HOSPITAL % KATHY TOPOR MEMO 4019217602 111 BREWSTER STREET PAWTUCKET RI 02860 JOSEPH IANNONI CFO 4019217602 2019-08-09 true SCOTT J MARIANI P00642486 9738989494 148.77.36.74 22006220192275000087 2019-08-15 P 0E7AA6D09474FC827FC900BEE833A570B2ABBB6B 8A18823307223DEFE2348A7E64ED0049F1172BAE 2017 2019-02-21 02:37:17Z MEMORIAL HOSPITAL OF RHODE ISLAND JAMES E FANALE MD 111 BREWSTER STREET PAWTUCKET RI 028604499 36026200 false X WWW.MHRI.ORG X 1901 RI UNTIL THE ORGANIZATION'S CLOSURE, OUR MISSION WAS PRIMARY CARE AND PREVENTATIVE MEDICINE, PROVIDING ADVANCED DIAGNOSIS AND TREATMENT WITH A FOCUS ON TEACHING AND RESEARCH. X 19 14 973 90 0 0 584030 513974 112124949 33853142 934250 723906 539686 726185 114182915 35817207 0 0 0 0 55578223 13397584 0 0 0 79477684 63539538 135055907 76937122 -20872992 -41119915 -22720997 50432667 84808985 135913967 -107529982 -85481300 X UNTIL THE ORGANIZATION'S CLOSURE, OUR MISSION WAS PRIMARY CARE AND PREVENTATIVE MEDICINE, PROVIDING ADVANCED DIAGNOSIS AND TREATMENT WITH A FOCUS ON TEACHING AND RESEARCH. AN ESSENTIAL RESOURCE IN ACHIEVING OUR MISSION WAS THE MEDICAL EXPERTISE PROVIDED BY OUR COMPETENT AND CARING PROFESSIONAL STAFF. WE STRIVED TO ACHIEVE THE TIMELY AND EFFICIENT DELIVERY OF CARE IN A COMPASSIONATE ATMOSPHERE. PLEASE REFER TO THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT INCLUDED IN SCHEDULE O. false true 69243412 0 33853142 UNTIL ITS CLOSURE, EXPENSES INCURRED IN PROVIDING VARIOUS MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT. 69243412 true true false true false false false false false true true false true true true false false true false false false false false false false false true true false false true false false false false false false false false false false true false true true false false false true 0 0 973 true false false false false false true true false false false false X 19 14 false true false false true true true true true false false true true true true true true true false true false X KATHY TOPOR 4019217602 171 SERVICE AVENUE BLDG 2 WARWICK RI 02886 X CHARLES R REPPUCCI ESQ CHAIRMAN - DIRECTOR 1.0 0.0 X X 0 0 0 GARY E FURTADO VICE CHAIR - DIRECTOR 1.0 0.0 X X 0 0 0 MARIBETH Q WILLIAMSON VICE CHAIR - DIRECTOR 1.0 0.0 X X 0 0 0 JAMES BOTVIN SECRETARY - DIRECTOR 1.0 0.0 X X 0 0 0 DOUGLAS L JACOBS TREASURER - DIRECTOR 1.0 0.0 X X 0 0 0 JASON B BOUDJOUK MD DIRECTOR 2.0 0.0 X 0 28500 0 LISA D BOYLE MD DIRECTOR 2.0 0.0 X 0 31057 0 MARIO BUENO DIRECTOR 1.0 0.0 X 0 0 0 ALLEN H CICCHITELLI DIRECTOR 1.0 0.0 X 0 0 0 SHARON CONRAD-WELLS DIRECTOR 1.0 0.0 X 0 0 0 JAMES E FANALE MD DIRECTOR - PRESIDENT/CEO/CNE 55.0 0.0 X X 0 772450 39140 KENT W GLADDING DIRECTOR 1.0 0.0 X 0 0 0 WILLIAM M KAPOS DIRECTOR 1.0 0.0 X 0 0 0 SUSAN M KELLY MD DIRECTOR - KENT UNIT CHIEF 55.0 0.0 X 0 264321 30411 DIANE LIPSCOMBE PHD DIRECTOR 1.0 0.0 X 0 0 0 JOSEPH J MCGAIR ESQ DIRECTOR 1.0 0.0 X 0 0 0 PATRICK J MURRAY JR DIRECTOR 1.0 0.0 X 0 0 0 CYNTHIA B PATTERSON DIRECTOR 1.0 0.0 X 0 0 0 GEORGE W SHUSTER DIRECTOR 1.0 0.0 X 0 0 0 ESTHER EMARD DIRECTOR (TERMED) 1.0 0.0 X 0 0 0 ROBERT G FLANDERS JR ESQ DIRECTOR (TERMED) 1.0 0.0 X 0 0 0 JOHN R GALVIN DIRECTOR (TERMED) 1.0 0.0 X 0 0 0 EMILY COPE HARRISON MD DIRECTOR (TERMED) 1.0 0.0 X 0 0 0 DENNIS D KEEFE DIR-PRES/CEO/CNE(TERMED 12/31) 55.0 0.0 X X 0 1215815 44993 ALYSSA V BOSS ESQ ASST SEC/EVP & GENERAL COUNSEL 55.0 0.0 X 0 436800 89494 F JOSEPH IANNONI ASST. TREAS./EVP/CFO/CNE 55.0 0.0 X 0 1050147 41869 JAMES M BURKE VP, FINANCE MED/SURG HOSP 55.0 0.0 X 0 218030 19269 JEFFREY BORKAN MD CHIEF-FAMILY MED(TERM 1/13/18) 55.0 0.0 X 303796 0 37388 KEITH E MACKSOUD CRNA SENIOR FACULTY (TERM 12/8/17) 55.0 0.0 X 187470 0 29265 MARK A FOSTER CRNA CRNA PROGRAM DIRECTOR 55.0 0.0 X 170676 0 15514 JEANNE KNIGHT NP NURSE PRACTICIONER 55.0 0.0 X 143552 0 4296 BARBARA JOYAL MD PHARMACIST 55.0 0.0 X 132787 0 3902 EILEEN DOBBING FORMER OFFICER 0.0 0.0 X 240009 0 7788 1178290 4017120 363329 32 true true false 0 X 513974 513974 NET PATIENT SERVICE REVENUE 541900 27703401 27703401 OTHER HEALTHCARE RELATED REVENUE 541900 6149741 6149741 33853142 400214 400214 0 0 912887 208993 703894 0 703894 703894 313414 10278 0 0 313414 10278 323692 323692 0 0 0 0 0 0 0 0 0 CAFETERIA 900099 22291 22291 22291 35817207 33853142 1450091 0 0 0 0 0 0 9799795 8819816 979979 287603 258843 28760 2331172 2098055 233117 979014 881113 97901 0 22777 20499 2278 0 0 0 0 42353 38118 4235 0 44289 39860 4429 6621 5959 662 0 1870523 1683471 187052 14289 12860 1429 0 0 257472 231725 25747 0 23968876 21571988 2396888 2002540 1802286 200254 PURCHASED SERVICES 14975951 13478356 1497595 0 RESTRUCTING COSTS 7180830 6462747 718083 0 LICENSURE FEE 6953155 6257840 695315 0 RESEARCH EXPENSES 4077123 3669411 407712 0 2122739 1910465 212274 76937122 69243412 7693710 0 4482 0 -101457150 -1552 0 0 8115068 0 0 0 0 0 0 0 997296 0 832009 571415 36534719 31007694 28655392 5527025 0 0 0 0 12683989 11920379 24345364 24345364 3102553 8070036 -22720997 50432667 10067698 1421304 0 0 179356 0 0 0 0 0 0 0 0 0 0 0 74561931 134492663 84808985 135913967 X -120469619 -97861996 2028082 1407648 10911555 10973048 -107529982 -85481300 -22720997 50432667 X -41119915 -59372 63227969 X X false true X true true true X false false false false false false false false true false false SCHEDULE C, PART II-B; LINE 1I CARE NEW ENGLAND HEALTH SYSTEM, THE TAX-EXEMPT PARENT OF CARE NEW ENGLAND HEALTH SYSTEM AND AFFILIATES, INCURS VARIOUS LOBBYING EXPENSES ON BEHALF OF THE SYSTEM; INCLUDING THIS ORGANIZATION. PLEASE REFER TO THE FORM 990 FILED BY CARE NEW ENGLAND HEALTH SYSTEM (FEIN: 05-0490997). 10911555 61493 10973048 10510575 400980 10911555 10189073 321502 10510575 10654446 0 465373 10189073 10384594 269852 10654446 1.00000 false false 1290000 1290000 19401692 15197297 4204395 14535821 14511276 24545 1307206 1299121 8085 5527025 BOARD DESIGNATED FUNDS 942331 F DONOR SPECIFIC FUNDS 5000 F FOR PERMANENT ENDOWMENT 3164214 F EXTERNALLY ADMINISTERED TRUSTS 7808834 F 11920379 OTHER ASSETS 8070036 8070036 0 INSURANCE CLAIM RESERVE 10924475 DUE TO AFFILIATES; NON-CURRENT 109241027 EST AMTS DUE TO THIRD PARTY PAYABLE 10606053 OTHER LIABILITIES 3721108 134492663 SCHEDULE D, PART V, QUESTION 4 THE HOSPITAL'S ENDOWMENTS CONSIST OF NUMEROUS INDIVIDUAL FUNDS ESTABLISHED FOR A VARIETY OF PURPOSES. THE PURPOSES INCLUDE GENERAL PURPOSE, HEALTHCARE SERVICES, INDIGENT CARE, HEALTH EDUCATION AND FOR USE IN FURTHERING THE TAX-EXEMPT CHARITABLE PURPOSE OF THIS ORGANIZATION. SCHEDULE D, PART X THE ORGANIZATION IS AN AFFILIATE WITHIN CARE NEW ENGLAND HEALTH SYSTEM AND AFFILIATES; A TAX-EXEMPT, INTEGRATED HEALTHCARE DELIVERY SYSTEM ("SYSTEM"). THE SYSTEM'S PARENT ENTITY IS CARE NEW ENGLAND HEALTH SYSTEM. AN INDEPENDENT CERTIFIED PUBLIC ACCOUNTING ("CPA") FIRM AUDITED THE CONSOLIDATED FINANCIAL STATEMENTS OF CARE NEW ENGLAND HEALTH SYSTEM AND ALL ENTITIES WITHIN THE SYSTEM FOR THE YEARS ENDED SEPTEMBER 30, 2018 AND SEPTEMBER 30, 2017; RESPECTIVELY AND ISSUED A CONSOLIDATED FINANCIAL STATEMENT WITH CERTAIN CONSOLIDATING SCHEDULES. THE AUDITED FINANCIAL STATEMENTS DO NOT CONTAIN A FOOTNOTE DISCLOSURE RELATED TO THE ORGANIZATION'S LIABILITY FOR UNCERTAIN TAX POSITIONS UNDER FIN 48. THE ORGANIZATION COMPLETED AN ASSESSMENT OF THE ESTIMATED LIABILITY FOR UNCERTAIN TAX POSITIONS AT SEPTEMBER 30, 2018 AND CONCLUDED THAT THE ESTIMATED LIABILITY WAS NOT MATERIAL TO THE ORGANIZATION'S FINANCIAL STATEMENTS. true true X true X true X true true true false false 2300978 1944626 356352 0.00460 18979552 16670160 2309392 0.03000 21280530 18614786 2665744 0.03460 14345 0 14345 0.00020 5293907 1660892 3633015 0.04720 1613081 488785 1124296 0.01460 2102726 4129313 0.00000 12222 0 12222 0.00020 9036281 6278990 4783878 0.06220 30316811 24893776 7449622 0.09680 true 1371084 471752 5768873 6015909 -247036 X true true 1 1 THE MEMORIAL HOSPITAL 111 BREWSTER STREET PAWTUCKET RI 02860 WWW.MHRI.ORG HOS00130 X X X X X X 1 THE MEMORIAL HOSPITAL 1 false false true X X X X X X X X X 15 true true true true X WWW.CARENEWENGLAND.ORG X true 15 true WWW.CARENEWENGLAND.ORG false true X 200. 300. X X X true true X X X X true X WWW.CARENEWENGLAND.ORG X WWW.CARENEWENGLAND.ORG X WWW.CARENEWENGLAND.ORG X X X X X X true X false X X X X true X false false SCH H, PART V, SEC B, Q'S 3J,7D,13B,13H,15E,16J,18E,19E,20E,21C,21D,23&24 NOT APPLICABLE. SCHEDULE H, PART V, SECTION B, QUESTION 5 The COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA) included wide participation of public health experts and representatives of medically underserved, low income, and minority populations. The RI Department of Health (DOH) and Health Equity Zone (HEZ) partners were included throughout the process to collect insights and proved access to underserved populations. Partner Forums which included more than 40 participants were held in Providence and Pawtucket. Input from these forums was used to develop priorities for the plan. SCHEDULE H, PART V, SECTION B, QUESTIONS 6A & 6B Care New England Health System (CNE) participated in a statewide Community Health Needs Assessment, led by the Hospital Association of Rhode Island (HARI), and its member hospitals (Our Lady of Fatima Hospital, Roger Williams Medical Center, Landmark Medical Center, South County Hospital and The Westerly Hospital). HARI CHNA partners jointly conducted a prioritization to identify key statewide community health needs. Care New England Health System's hospitals: Butler Hospital, Kent Hospital, Memorial Hospital of Rhode Island, and Women & Infants Hospital identified system priorities and developed a system-wide Implementation Plan which aligned with the prioritized statewide health issues. Each hospital also CONDUCTED its own Needs Assessment. SCHEDULE H, PART V, SECTION B, QUESTION 7A The organization is an affiliate within Care New England Health System; a tax-exempt integrated healthcare delivery system ("system"). Due to character limitationS, the website listed in Part V, Section B, Question 7A, is the home page for the system. The CHNA can be accessed at the following page included in the systems Website: http://www.carenewengland.org/about/upload/memorial-hospital-final-2016.pd f SCHEDULE H, PART V, SECTION B, QUESTION 8 THE FACILITY, WITH LIMITED RESOURCES, PRIORITIZED HEALTH NEEDS THAT WERE IDENTIFIED AND DEVELOPED AN IMPLEMENTATION PLAN TO ADDRESS THESE PRIORITY HEALTH NEED AREAS. THE SYSTEM AND FACILITY STRATEGIC PLAN MAPS TO IMPROVED COMMUNITY HEALTH AND THE CHNA IMPLEMENTATION PLAN. THE CHNA IMPLEMENTATION PLAN INCLUDES RESOURCES, ACTION AND GOALS (MEASURABLE). SCHEDULE H, PART V, SECTION B, QUESTION 10A The organization is an affiliate within Care New England Health System; a tax-exempt integrated healthcare delivery system ("system"). Due to character limitationS, the website listed in Part V, Section B, Question 10A, is the home page for the system. The IMPLEMENTATION STRATEGY can be accessed at the following page included in the systems Website: http://www.carenewengland.org/about/upload/memorial-hospital-final-2016.pd f SCHEDULE H, PART V, SECTION B, QUESTION 11 The HARI CHNA Steering Committee correlated quantitative and qualitative data from the 2016 CHNA and compared with findings from the 2013 CHNA and RI DOH Community Health Improvement Plan to define statewide health priorities. In line with the 2013 CHNA and the RI DOH, the following community health issues were identified as priorities across the state. - Behavioral Health; - Chronic Disease: Diabetes & Heart Disease; AND - Maternal & Child Health. Care New England adopted the following priorities and assigned executive sponsors for each of the statewide goals. Behavioral Health - Prevent opioid use addiction and opioid addiction in conjunction with other substances; AND - Decrease morbidity and mortality from opioid use and opioid use with other substances. Chronic Disease: Diabetes - Reduce the number of new cases of diabetes; AND - Decrease morbidity and mortality from type 2 diabetes and diabetes-related conditions. Maternal and Child Health - Increase health pregnancies and improve birth outcomes for at-risk mothers and babies; AND - Reduce the disparity in prenatal care, preterm births, low birthweight, and infant mortality among at-risk black/African American families. SCHEDULE H, PART V, SECTION B, QUESTION 16 THE ORGANIZATION IS AN AFFILIATE WITHIN CARE NEW ENGLAND HEALTH SYSTEM; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM ("SYSTEM"). DUE TO CHARACTER LIMITATIONS, THE WEBSITE LISTED IN PART V, SECTION B, QUESTIONS 16A, 16B AND 16C, IS THE HOME PAGE FOR THE SYSTEM. THE ORGANIZATION'S FINANCIAL ASSISTANCE POLICY, FINANCIAL ASSISTANCE APPLICATION AND PLAIN LANGUAGE SUMMARY CAN BE ACCESSED AT THE FOLLOWING URL WHICH IS INCLUDED IN THE SYSTEM'S WEBSITE: HTTP://WWW.CARENEWENGLAND.ORG/PATIENT-RESOURCES/FINANCIAL-ASSISTANCE.CFM 7 NOTRE DAME AMBULATORY CENTER 1000 BROAD STREET CENTRAL FALLS RI 02863 AMBULATORY CENTER MEMORIAL HOSPITAL LAB SERVICE CENTER 126 PROSPECT STREET PAWTUCKET RI 02860 LAB MEMORIAL HOSPITAL LAB SERVICE CENTER 1145 MAIN STREET PAWTUCKET RI 02860 LAB MEMORIAL HOSPITAL OF RI LAB 174 ARMISTICE BLVD PAWTUCKET RI 02860 LAB MEMORIAL HOSPITAL LAB SERVICE CENTER 640 GEORGE WASHINGTON HIGHWAY LINCOLN RI 02865 LAB MEMORIAL HOSPITAL OF RI LAB 101 FERRIS STREET PAWTUCKET RI 02860 LAB MEMORIAL HOSPITAL OF RI LAB 966 MINERAL SPRING AVENUE NORTH PROVIDENCE RI 02904 LAB Part i, line 3c Not applicable. Schedule h, part i; question 6a Not applicable. Schedule h, part i; question 7g No costs relating to subsidized healthcare services are attributable to any physician clinics. Schedule h, part i, question 7 WORKSHEET 2, "RATIO OF PATIENT CARE COST-TO-CHARGES" WAS USED TO COMPLETE THE COST-TO-CHARGE RATIO USED IN PART 1, LINE 7, utilizing datA from the financiaL STATEMENTS AND MEDICARE COST REPORT FOR FY 2018. SCHEDULE H, PART II The Memorial Hospital has direct involvement in numerous community building activities that promote and improve the health status and general betterment of the communities served by the hospital. This is accomplished through service on state and regional advocacy committees and boards, volunteerism with local community-based non-profit advocacy groups, and participation in conferences and other educational activities to promote understanding of the root causes of health concerns. This organization provides educational materials, conducts community health fairs and holds health education seminars and outreach sessions for its patients and for community providers. Presentations are provided by physicians, nurses and other healthcare professionals. Schedule h, part iii, section a; question 4 PROVISION FOR BAD DEBT WAS CALCULATED USING THE ORGANIZATION'S BAD DEBT EXPENSE FROM ITS AUDITED FINANCIAL STATEMENTS, NET OF ACCOUNTS WRITTEN OFF AT CHARGES. THE ORGANIZATION AND ITS AFFILIATES PREPARE AND ISSUE AUDITED CONSOLIDATED FINANCIAL STATEMENTS. THE SYSTEM'S ALLOWANCE FOR DOUBTFUL ACCOUNTS (PROVISION FOR BAD DEBT) METHODOLOGY AND CHARITY CARE POLICIES ARE CONSISTENTLY APPLIED ACROSS ALL HOSPITAL AFFILIATES. THE ATTACHED TEXT WAS OBTAINED FROM THE FOOTNOTES TO THE AUDITED FINANCIAL STATEMENTS OF THE ORGANIZATION. Allowance for Doubtful Accounts Accounts receivable are reduced by an allowance for doubtful accounts. In evaluating the collectability of accounts receivable, the Health System analyzes its past history and identifies trends for each of its major payor sources of revenue to estimate the appropriate allowance for doubtful accounts and provision for bad debts. Management regularly reviews data about these major payor sources of revenue in evaluating the sufficiency of the allowance for doubtful accounts. For receivables associated with services provided to patients who have third-party coverage, the Health System analyzes contractually due amounts and provides an allowance for doubtful accounts and a provision for bad debts, if necessary (for example, for expected uncollectible deductibles and copayments on accounts for which the third-party payor has not yet paid, or for payors who are known to be having financial difficulties that make the realization of amounts due unlikely). For receivables associated with self-pay patients (which includes both patients without insurance and patients with deductible and copayment balances due for which third-party coverage exists for part of the bill), the Health System records a significant provision for bad debts in the period of service on the basis of its past experience, which indicates that many patients are unable or unwilling to pay a portion of their bill for which they are financially responsible. The difference between the standard rates (or the discounted rates if negotiated) and the amounts actually collected after all reasonable collection efforts have been exhausted is charged off against the allowance for doubtful accounts. CHARITY CARE THE HEALTH SYSTEM PROVIDES CARE TO PATIENTS WHO MEET CERTAIN CRITERIA UNDER THEIR CHARITY CARE POLICIES WITHOUT CHARGE OR AT AMOUNTS LESS THAN ESTABLISHED RATES. BECAUSE THE HEALTH SYSTEM DOES NOT PURSUE COLLECTION OF AMOUNTS DETERMINED TO QUALIFY AS CHARITY CARE, THEY ARE NOT REPORTED AS NET PATIENT REVENUE. Schedule h, part iii, section b; question 8 The inpatient medicare allowable costs were determined from the submitted fy 2018 medicare cost report, worksheet d-1, line 49. Worksheet d-1, line 49 does not include direct gme costs. The outpatient allowable costs come from worksheet e, part b. medicare underpayments and Bad debt is community benefit and associated costs are includable on the form 990, schedule h, part i. the organization did not include medicare underpayments (shortfall) and bad debt in the calculation of their community benefit percentage. however, The organization feels that medicare underpayments (shortfall) and bad debt are community benefit and associated costs are includable on the form 990, schedule h, part i. As outlined more fully below, the organization believes that these services and related costs promote the health of the community as a whole and are rendered in conjunction with the organization's charitable tax-exempt purposes and mission in providing medically necessary healthcare services to all individual's in a non-discriminatory manner without regard to race, color, creed, sex, national origin or ability to pay and consistent with the community benefit standard promulgated by the irs. The community benefit standard is the current standard for a hospital for recognition as a tax-exempt and charitable organization under internal revenue code ("irc") 501(c)(3). The organization is recognized as a tax-exempt entity and charitable organization under 501(c)(3) of the irc. Although there is no definition in the tax code for the term "charitable", a regulation promulgated by the department of the treasury provides some guidance and states that "[t]he term charitable is used in 501(c)(3) in its generally accepted legal sense,provides examples of charitable purposes, including the relief of the poor or unprivileged; the promotion of social welfare; and the advancement of education, religion, and science. Note it does not explicitly address the activities of hospitals. In the absence of explicit statutory or regulatory requirements applying the term "charitable" to hospitals, it has been left to the irs to determine the criteria hospitals must meet to qualify as irc 501(c)(3) charitable organizations. The original standard was known as the charity care standard. This standard was replaced by the irs with the community benefit standard which is the current standard. Charity care standard In 1956, the irs issued revenue ruling 56-185, which addressed the requirements hospitals needed to meet in order to qualify for irc 501(c)(3) status. One of these requirements is known as the "charity care standard." under the standard, a hospital had to provide, to the extent of its financial ability, free or reduced-cost care to patients unable to pay for it. A hospital that expected full payment did not, according to the ruling, provide charity care based on the fact that some patients ultimately failed to pay. The ruling emphasized that a low level of charity care did not necessarily mean that a hospital had failed to meet the requirement since that level could reflect its financial ability to provide such care. The ruling also noted that publicly supported community hospitals would normally qualify as charitable organizations because they serve the entire community, and a low level of charity care would not affect a hospital's exempt status if it was due to the surrounding community's lack of charitable demands. Community benefit standard In 1969, the irs issued revenue ruling 69-545, which "remove[d]" from revenue ruling 56-185 "the requirements relating to caring for patients without charge or at rates below cost." under the standard developed in revenue ruling 69-545, which is known as the "community benefit standard," hospitals are judged on whether they promote the health of a broad class of individuals in the community. The ruling involved a hospital that only admitted individuals who could pay for the services (by themselves, private insurance, or public programs such as medicare), but operated a full-time emergency room that was open to everyone. The irs ruled that the hospital qualified as a charitable organization because it promoted the health of people in its community. The irs reasoned that because the promotion of health was a charitable purpose according to the general law of charity, it fell within the "generally accepted legal sense" of the term "charitable," as required by treas. Reg. 1.501(c)(3)-1(d)(2). The irs ruling stated that the promotion of health, like the relief of poverty and the advancement of education and religion, is one of the purposes in the general law of charity that is deemed beneficial to the community as a whole even though the class of beneficiaries eligible to receive a direct benefit from its activities does not include all members of the community, such as indigent members of the community, provided that the class is not so small that its relief is not of benefit to the community. The irs concluded that the hospital was "promoting the health of a class of persons that is broad enough to benefit the community" because its emergency room was open to all and it provided care to everyone who could pay, whether directly or through third-party reimbursement. Other characteristics of the hospital that the irs highlighted included the following: its surplus funds were used to improve patient care, expand hospital facilities, and advance medical training, education, and research; it was controlled by a board of trustees that consisted of independent civic leaders; and hospital medical staff privileges were available to all qualified physicians. The organization believes that medicare underpayments and bad debt are community benefit and associated costs are includable on the form 990, schedule h, part i. The american hospital association ("aha") feels that medicare underpayments (shortfall) and bad debt are community benefit and thus includable on the form 990, schedule h, part i. This organization agrees with the aha position. As outlined in the aha letter to the irs dated august 21, 2007 with respect to the first published draft of the new form 990 and schedule h, the aha felt that the irs should incorporate the full value of the community benefit that hospitals provide by counting medicare underpayments (shortfall) as quantifiable community benefit for the following reasons. - providing care for the elderly and serving medicare patients is an essential part of the community benefit standard. - medicare, like medicaid, does not pay the full cost of care. Recently, medicare reimburses hospitals only 92 cents for every dollar they spend to take care of medicare patients. The medicare payment advisory commission ("medpac") in its march 2007 report to congress cautioned that underpayment will get even worse, with margins reaching a 10-year low at negative 5.4 percent. - many medicare beneficiaries, like their medicaid counterparts, are poor. More than 46 percent of medicare spending is for beneficiaries whose income is below 200 percent of the federal poverty level. Many of those medicare beneficiaries are also eligible for medicaid -- so called eligibles." There is every compelling public policy reason to treat medicare and medicaid underpayments similarly for purposes of a hospital's community benefit and include these costs on form 990, schedule h, part i. Medicare underpayment must be shouldered by the hospital in order to continue treating the community's elderly and poor. These underpayments represent a real cost of serving the community and should count as a quantifiable community benefit. Both the aha and this organization also feel that patient bad debt is a community benefit and thus includable on the form 990, schedule h, part i. Like medicare underpayment (shortfalls), there also are compelling reasons that patient bad debt should be counted as quantifiable community benefit as follows: - a significant majority of bad debt is attributable to low-income patients, who, for many reasons, decline to complete the forms required to establish eligibility for hospitals' charity care or financial assistance programs. A 2006 congressional budget office ("cbo") report, nonprofit hospitals and the provision of community benefits, cited two studies indicating that "the great majority of bad debt was attributable to patients with income below 200% of the federal poverty line." - the report also noted that a substantial portion of bad debt is pending charity care. Unlike bad debt in other industries, hospital bad debt is complicated by the fact that hospitals follow their mission to the community and treat every patient that comes through their emergency department, regardless of ability to pay. Patients who have outstanding bills are not turned away, unlike other industries. Bad debt is further complicated by the auditing industry's standards on reporting charity care. Many patients cannot or do not provide the necessary Schedule h, part iii, section b; question 9b Memorial hospital of rhode island does not pursue collection for those patients who qualify for 100% financial assistance, but our normal collection policy would apply for patients receiving partial financial assistance (discounted by reason of income/assets on the fpg between 200% and 300%) or facing extreme hardships. Schedule h, part vi, question 2 IN ADDITION TO THE INTERNAL REVENUE CODE 501(R) COMMUNITY HEALTH NEEDS ASSESSMENT INFORMATION OUTLINED IN FORM 990, SCHEDULE H, PART V, SECTION B, CARE NEW ENGLAND HEALTH SYSTEM CONDUCTS A REVIEW OF KEY MARKET FACTORS FOR THE MEMORIAL HOSPITAL ANNUALLY WHICH INCLUDES: The organization continually reviews and evaluates current and proposed programs to ensure that programs offering the most benefit will continue to be supported by the hospital. The hospital aligns its community programs in support of the rhode island department of health healthy people 2010 initiatives: OBJECTIVE 5: RESPONSIBLE SEXUAL BEHAVIOR, OBJECTIVE 6: MENTAL HEALTH, OBJECTIVE 7: INJURY AND VIOLENCE, OBJECTIVE 9: IMMUNIZATION AND OBJECTIVE 10: ACCESS TO HEALTHCARE. PLEASE REFER TO SCHEDULE O FOR A DETAILED COMMUNITY BENEFIT STATEMENT. Schedule h, part vi, question 3 As a not for-profit entity, Memorial hospital of rhode island's first consideration in the admission and placement or treatment of any patient is the patient's medical needs. Some patients hesitate to obtain necessary care because of their financial concerns. A notice of financial aid appears on all statements sent to patients. Also, it is prominently posted in the patient assessment department, admission areas, outpatient care areas and on the organization's website. Also, the notice is available in the three most common languages used by the patient population in accordance with the applicable "standards for culturally and linguistically appropriate services in healthcare" (standards 4 and 7, based on title vi of the civil rights act of 1964). Uninsured and underinsured patients are counseled at the point of service or during the billing process about any federal, state or local programs that they may be eligible for, and assistance with applications is also provided. Schedule h, part vi, question 4 Memorial hospital of rhode island's primary service area consists of the cities of Pawtucket, Central Falls, East Providence, and the towns of Lincoln and Cumberland, with a total population of 192,216 for 2013 per Truven Health Analytics. The average household income is $61,792 and on average 13.8% of the population in these zip codes has income below the poverty level. One hospital serves the primary service area and a significant percent of hospital discharges are medicare, medicaid and uninsured patients. Data from Truven Health Analytics Inc. for 2013 indicated that this area consisted of the following groups: 67.2% of the population were caucasian, 16.8% of the population were hispanics and latinos of any race and 7.7% were black or african American, and 3.5% reported other ethnicities. Schedule h, part vi; question 5 The organization and the entire care new england health system promote the health of the community on a daily basis throughout the year. The system coordinates and offers numerous community benefit programs, activities and support groups to the community. Please refer to schedule o for a detailed community benefit statement. Schedule h, part vi, question 6 OUTLINED BELOW IS A SUMMARY OF THE ENTITIES WHICH COMPRISE THE CARE NEW ENGLAND HEALTH SYSTEM. NOT FOR-PROFIT CARE NEW ENGLAND HEALTH SYSTEM ENTITIES: CARE NEW ENGLAND HEALTH SYSTEM CARE NEW ENGLAND HEALTH SYSTEM IS THE TAX-EXEMPT PARENT OF THE CARE NEW ENGLAND HEALTH SYSTEM ("CNE"). THIS TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM CONSISTS OF A GROUP OF AFFILIATED HEALTHCARE ORGANIZATIONS. THIS ORGANIZATION IS THE SOLE MEMBER OR STOCKHOLDER OF EACH AFFILIATED ENTITY. CNE IS AN INTEGRATED SYSTEM OF HEALTHCARE PROVIDERS THROUGHOUT THE STATE OF RHODE ISLAND. CARE NEW ENGLAND HEALTH SYSTEM IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3). AS THE PARENT ORGANIZATION, CARE NEW ENGLAND HEALTH SYSTEM STRIVES TO CONTINUALLY DEVELOP AND OPERATE A MULTI-HOSPITAL HEALTHCARE SYSTEM WHICH PROVIDES SUBSTANTIAL COMMUNITY BENEFIT THROUGH THE PROVISION OF A COMPREHENSIVE SPECTRUM OF HEALTHCARE SERVICES TO THE RESIDENTS OF RHODE ISLAND AND SURROUNDING COMMUNITIES. CARE NEW ENGLAND HEALTH SYSTEM ENSURES THAT ITS SYSTEM PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. NO INDIVIDUALS ARE DENIED NECESSARY MEDICAL CARE, TREATMENT OR SERVICES. CNE'S ACTIVE HOSPITALS INCLUDE BUTLER HOSPITAL, WOMEN & INFANTS HOSPITAL OF RHODE ISLAND, KENT COUNTY MEMORIAL HOSPITAL AND THE MEMORIAL HOSPITAL. EACH OF THESE HOSPITALS OPERATES CONSISTENTLY WITH THE FOLLOWING CRITERIA OUTLINED IN IRS REVENUE RULING 69-545: 1. EACH PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF ABILITY TO PAY, INCLUDING CHARITY CARE, SELF-PAY, MEDICARE AND MEDICAID PATIENTS; 2. EACH OPERATES AN ACTIVE EMERGENCY ROOM FOR ALL PERSONS; WHICH IS OPEN 24 HOURS A DAY, 7 DAYS A WEEK, 365 DAYS PER YEAR; 3. EACH MAINTAINS AN OPEN MEDICAL STAFF, WITH PRIVILEGES AVAILABLE TO ALL QUALIFIED PHYSICIANS; 4. CONTROL OF EACH RESTS WITH THE COMMON BOARD OF DIRECTORS OF CARE NEW ENGLAND HEALTH SYSTEM. THE BOARD IS COMPRISED OF A MAJORITY OF INDEPENDENT CIVIC LEADERS AND OTHER PROMINENT MEMBERS OF THE COMMUNITY; AND 5. SURPLUS FUNDS ARE USED TO IMPROVE THE QUALITY OF PATIENT CARE, EXPAND AND RENOVATE FACILITIES AND ADVANCE MEDICAL CARE; PROGRAMS AND ACTIVITIES. BUTLER HOSPITAL BUTLER HOSPITAL IS A 117-BED NON-PROFIT PRIVATE, NON-PROFIT PSYCHIATRIC AND SUBSTANCE ABUSE HOSPITAL FOR ADULTS, ADOLESCENTS, CHILDREN, AND SENIORS LOCATED IN PROVIDENCE, RHODE ISLAND. BUTLER HOSPITAL IS RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS AN INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, THE ORGANIZATION PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. MOREOVER, BUTLER HOSPITAL OPERATES CONSISTENTLY WITH THE CRITERIA OUTLINED IN IRS REVENUE RULING 69-545. KENT COUNTY MEMORIAL HOSPITAL KENT COUNTY MEMORIAL HOSPITAL IS A 359-BED NON-PROFIT ACUTE CARE HOSPITAL LOCATED IN WARWICK, RHODE ISLAND. KENT COUNTY MEMORIAL HOSPITAL IS RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS AN INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, THE ORGANIZATION PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. MOREOVER, KENT COUNTY MEMORIAL HOSPITAL OPERATES CONSISTENTLY WITH THE CRITERIA OUTLINED IN IRS REVENUE RULING 69-545. WOMEN & INFANTS HOSPITAL OF RHODE ISLAND WOMEN & INFANTS HOSPITAL OF RHODE ISLAND IS A 247-BED AND 60-BASSINET NON-PROFIT SPECIALTY HOSPITAL FOR WOMEN AND NEWBORNS LOCATED IN PROVIDENCE, RHODE ISLAND. WOMEN & INFANTS CORPORATION IS RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS AN INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, THE ORGANIZATION PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. MOREOVER, WOMEN & INFANTS CORPORATION OPERATES CONSISTENTLY WITH THE CRITERIA OUTLINED IN IRS REVENUE RULING 69-545. BUTLER HOSPITAL FOUNDATION BUTLER HOSPITAL FOUNDATION IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3). THROUGH FUNDRAISING ACTIVITIES THE ORGANIZATION SUPPORTS THE CHARITABLE PURPOSES, PROGRAMS AND SERVICES OF BUTLER HOSPITAL; A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION, THAT PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. KENT COUNTY VISITING NURSE ASSOCIATION KENT COUNTY VISITING NURSE ASSOCIATION IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(1). THE ORGANIZATION PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. KENT HOSPITAL FOUNDATION KENT HOSPITAL FOUNDATION IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3). THROUGH FUNDRAISING ACTIVITIES THE ORGANIZATION SUPPORTS THE CHARITABLE PURPOSES, PROGRAMS AND SERVICES OF KENT COUNTY MEMORIAL HOSPITAL; A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION, THAT PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. WOMEN & INFANTS DEVELOPMENT FOUNDATION WOMEN & INFANTS DEVELOPMENT FOUNDATION IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3). THROUGH FUNDRAISING ACTIVITIES THE ORGANIZATION SUPPORTS THE CHARITABLE PURPOSES, PROGRAMS AND SERVICES OF WOMEN & INFANTS HOSPITAL OF RHODE ISLAND; A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION, THAT PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. THE MEMORIAL HOSPITAL FOUNDATION THE MEMORIAL HOSPITAL FOUNDATION IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3). THROUGH FUNDRAISING ACTIVITIES THE ORGANIZATION SUPPORTS THE CHARITABLE PURPOSES, PROGRAMS AND SERVICES OF THE MEMORIAL HOSPITAL; A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION, THAT PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. VNA OF CARE NEW ENGLAND FOUNDATION VNA OF CARE NEW ENGLAND FOUNDATION IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3). THROUGH FUNDRAISING ACTIVITIES THE ORGANIZATION SUPPORTS KENT COUNTY VISITING NURSE ASSOCIATION THE CHARITABLE PURPOSES, PROGRAMS AND SERVICES OF KENT COUNTY VISITING NURSE ASSOCIATION; A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION, THAT PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. WOMEN & INFANTS CORPORATION WOMEN & INFANTS CORPORATION IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3). THE ORGANIZATION IS THE PARENT ENTITY OF WOMEN & INFANTS HOSPITAL OF RHODE ISLAND AND ITS AFFILIATES, WHICH PROVIDE MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. WIH FACULTY PHYSICIANS, INC. WIH FACULTY PHYSICIANS, INC. IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(2). THE ORGANIZATION PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. HEALTHTOUCH, INC. HEALTHTOUCH, INC. IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL Schedule h, part vi, question 7 Not applicable. The entity and related provider organizations are located in rhode island. No community benefit report is filed with the state of rhode island. X X X X true true false false false true true true false JAMES E FANALE MD DIRECTOR - PRESIDENT/CEO/CNE 0 537434 0 75000 0 160016 0 13500 0 25640 0 811590 0 76700 SUSAN M KELLY MD DIRECTOR - KENT UNIT CHIEF 0 254966 0 0 0 9355 0 24204 0 6207 0 294732 0 0 DENNIS D KEEFE DIR-PRES/CEO/CNE(TERMED 12/31) 0 899566 0 200000 0 116249 0 24300 0 20693 0 1260808 0 0 ALYSSA V BOSS ESQ ASST SEC/EVP & GENERAL COUNSEL 0 375938 0 0 0 60862 0 61640 0 27854 0 526294 0 30499 F JOSEPH IANNONI ASST. TREAS./EVP/CFO/CNE 0 522605 0 150000 0 377542 0 13500 0 28369 0 1092016 0 274002 JAMES M BURKE VP, FINANCE MED/SURG HOSP 0 216847 0 0 0 1183 0 16241 0 3028 0 237299 0 0 JEFFREY BORKAN MD CHIEF-FAMILY MED(TERM 1/13/18) 303796 0 0 0 0 0 13500 0 23888 0 341184 0 0 0 KEITH E MACKSOUD CRNA SENIOR FACULTY (TERM 12/8/17) 161057 0 0 0 26413 0 8798 0 20467 0 216735 0 0 0 MARK A FOSTER CRNA CRNA PROGRAM DIRECTOR 169190 0 0 0 1486 0 8365 0 7149 0 186190 0 0 0 EILEEN DOBBING FORMER OFFICER 44739 0 50000 0 145270 0 0 0 7788 0 247797 0 0 0 PART VII AND SCHEDULE J IN ACCORDANCE WITH INTERNAL REVENUE SERVICE FORM 990 RULES, REGULATIONS AND INSTRUCTIONS, THE COMPENSATION REPORTED IN CORE FORM, PART VII AND SCHEDULE J, PART II OF THIS FORM 990 IS DERIVED FROM 2017 FORMS W-2 AND FORMS 1099 (IF APPLICABLE). SCHEDULE J, PART I; QUESTION 4A AN INDIVIDUAL INCLUDED IN SCHEDULE J, PART II RECEIVED A SEVERANCE PAYMENT WHICH THE AMOUNT WAS INCLUDED ON HER 2017 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES: EILEEN DOBBING, $144,707. SCHEDULE J, PART I; QUESTION 4B THE AMOUNT REFLECTED IN COLUMN B(III) FOR THE FOLLOWING INDIVIDUALS INCLUDES VESTED BENEFITS IN AN INTERNAL REVENUE CODE SECTION 457(F) PLAN (NON-QUALIFIED DEFERRED COMPENSATION PLAN) AS THE AMOUNTS WERE NO LONGER SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. THE AMOUNTS OUTLINED HEREIN WERE INCLUDED IN THE INDIVIDUALS 2017 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES: JAMES E. FANALE, M.D., $142,187; DENNIS D. KEEFE, $92,633; ALYSSA V. BOSS, ESQ., $38,006 AND F. JOSEPH IANNONI, $342,900. THE DEFERRED COMPENSATION AMOUNT IN COLUMN C FOR THE FOLLOWING INDIVIDUAL INCLUDES UNVESTED BENEFITS IN AN INTERNAL REVENUE CODE SECTION 457(F) PLAN (NON-QUALIFIED DEFERRED COMPENSATION PLAN) WHICH IS SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. ACCORDINGLY, THE INDIVIDUAL MAY NEVER ACTUALLY RECEIVE THIS UNVESTED BENEFIT AMOUNT. THE AMOUNT OUTLINED HEREIN WAS NOT INCLUDED IN THE INDIVIDUAL'S 2017 FORM W-2, AS TAXABLE WAGES: ALYSSA V. BOSS, ESQ., $41,390. SCHEDULE J, PART I; QUESTION 6A & 6B THE EXECUTIVE COMPENSATION PACKAGE FOR VARIOUS INDIVIDUALS REPORTED ON THIS FORM 990 CONSISTS OF BOTH A FIXED SALARY AND ADDITIONAL AT-RISK COMPENSATION THAT IS BASED ON SEVERAL QUALITATIVE AND QUANTITATIVE COMPONENTS. THE AT-RISK COMPENSATION IS COMPRISED OF BOTH SHORT-TERM AND LONG-TERM FACTORS AS FOLLOWS. THE SHORT-TERM INCENTIVE PROGRAM PROVIDES AN OPPORTUNITY FOR PROGRAM PARTICIPANTS TO EARN AN INCENTIVE AWARD BASED ON THE ACHIEVEMENT OF CRITICAL STRETCH GOALS THAT RECOGNIZE PERFORMANCE ABOVE EXPECTATIONS. THESE GOALS ARE MEASURED FOR EACH FISCAL PERIOD IN THE FOLLOWING CRITICAL AREAS: QUALITY, FINANCIAL AND PATIENT SATISFACTION. THE LONG-TERM INCENTIVE PROGRAM PROVIDES AN OPPORTUNITY FOR PROGRAM PARTICIPANTS TO EARN AN INCENTIVE AWARD BASED ON THE ACCOMPLISHMENT OF CRITICAL MULTI-YEAR SYSTEM PERFORMANCE OBJECTIVES. AWARDS ARE EARNED BY MEASURING SYSTEM PERFORMANCE OVER THREE-YEAR OVERLAPPING PERFORMANCE PERIODS AND ARE MEASURED IN REFERENCE TO GOALS IN THE FOLLOWING CRITICAL AREAS: NET INCOME FROM OPERATIONS, MARKET SHARE, PATIENT SATISFACTION AND STRATEGIC OBJECTIVE. SCHEDULE J, PART I; QUESTION 7 CERTAIN INDIVIDUALS INCLUDED IN SCHEDULE J, PART II RECEIVED A BONUS DURING CALENDAR YEAR 2017 WHICH AMOUNTS WERE INCLUDED IN COLUMN B(II) HEREIN AND IN EACH INDIVIDUAL'S 2017 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES. PLEASE REFER TO THIS SECTION OF THE FORM 990, SCHEDULE J FOR THIS INFORMATION BY PERSON BY AMOUNT. SCHEDULE J, PART II, COLUMN F THE AMOUNTS REPORTED IN SCHEDULE J, PART II, COLUMN F FOR THE FOLLOWING INDIVIDUALS INCLUDES VESTED BENEFITS IN AN INTERNAL REVENUE CODE SECTION 457(F) PLAN (NON-QUALIFIED DEFERRED COMPENSATION PLAN) BECAUSE THE AMOUNTS WERE NO LONGER SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. THESE AMOUNTS WERE TREATED AS TAXABLE INCOME AND REPORTED ON EACH INDIVIDUAL'S 2017 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES: JAMES E. FANALE, M.D., $76,700; ALYSSA V. BOSS, ESQ., $30,499 AND F. JOSEPH IANNONI, $274,002. THESE AMOUNTS WERE REPORTED ON PRIOR YEAR FORMS 990 AS AT-RISK NON-TAXABLE DEFERRED COMPENSATION IN SCHEDULE J, PART II, COLUMN C. TERMINATED OPERATIONS 2018-05-01 0 FMV NA N/A false false false false true true false false SCHEDULE N, PART I In October of 2017 the Boards of THE Memorial Hospital, its parent corporation, Southeastern Healthcare System, Inc. And Care New England HEALTH SYSTEM voted to discontinue the operations of THE Memorial Hospital as a licensed hospital. On December 1, 2017, THE Memorial Hospital, with the approval of the Rhode Island Department of Health, closed both inpatient and surgical services. Emergency services were closed on January 1, 2018. On May 1, 2018, the Rhode Island Department of Health formally approved the Memorial Hospital closure. CORE FORM, PART III, STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS MEMORIAL HOSPITAL OF RHODE ISLAND ("MEMORIAL") IS A NOT FOR-PROFIT COMMUNITY HOSPITAL WHICH CLOSED ON MAY 1, 2018. MEMORIAL IS RECOGNIZED BY THE IRS AS AN INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, MEMORIAL PROVIDED MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF AGE, SEX, RACE, COLOR, RELIGION, NATIONAL ORIGIN, ETHNICITY, CULTURE, LANGUAGE, DISABILITY, MARITAL STATUS, EDUCATION, SEXUAL ORIENTATION, GENDER IDENTITY OR EXPRESSION, INCOME, OR ABILITY TO PAY BILL. MOREOVER, PRIOR TO ITS CLOSURE ON MAY 1, 2018, MEMORIAL OPERATED CONSISTENTLY WITH THE FOLLOWING CRITERIA OUTLINED IN IRS REVENUE RULING 69-545: 1. MEMORIAL PROVIDED MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF ABILITY TO PAY, INCLUDING CHARITY CARE, SELF- PAY, MEDICARE AND MEDICAID PATIENTS; 2. MEMORIAL OPERATED AN ACTIVE EMERGENCY ROOM FOR ALL PERSONS, WHICH IS OPEN 24 HOURS A DAY, 7 DAYS A WEEK, 365 DAYS PER YEAR; 3. MEMORIAL MAINTAINED AN OPEN MEDICAL STAFF, WITH PRIVILEGES AVAILABLE TO ALL QUALIFIED PHYSICIANS; 4. CONTROL OF MEMORIAL RESTS WITH THE BOARD OF DIRECTORS OF CARE NEW ENGLAND HEALTH SYSTEM WHICH IS COMPRISED OF INDEPENDENT CIVIC LEADERS AND OTHER PROMINENT MEMBERS OF THE COMMUNITY; AND 5. SURPLUS FUNDS ARE USED TO IMPROVE THE QUALITY OF PATIENT CARE, EXPAND AND RENOVATE FACILITIES AND ADVANCE MEDICAL CARE; PROGRAMS AND ACTIVITIES. THE OPERATIONS OF MEMORIAL, AS SHOWN THROUGH THE FACTORS OUTLINED ABOVE AND OTHER INFORMATION CONTAINED HEREIN, CLEARLY DEMONSTRATED THAT THE HOSPITAL PROVIDED SUBSTANTIAL COMMUNITY BENEFIT AND THAT THE USE AND CONTROL OF MEMORIAL WAS FOR THE BENEFIT OF THE PUBLIC AND THAT NO PART OF THE INCOME OR NET EARNINGS OF THE ORGANIZATION INURED TO THE BENEFIT OF ANY PRIVATE INDIVIDUAL NOR WAS ANY PRIVATE INTEREST BEING SERVED OTHER THAN INCIDENTALLY. *In accordance with Rhode Island Department of Healths ("RIDOH") regulatory processes and measures, Care New Englands ("CNE") Memorial Hospital of Rhode Island ("MHRI") filed a reverse certificate of need application with RIDOH to close MHRIs Emergency Department and cease primary care services. Following the approval from RIDOH regarding the Emergency Department in JANUARY of 2018, CNE recognizes the significant impact this decision has, and will continue to have, on residents and hospital employees. CNE remains committed to ensuring access to community-based, outpatient care that meets the future health care needs in the Blackstone Valley. HISTORY ======= AS OF SEPTEMBER 3, 2013, SOUTHEASTERN HEALTHCARE SYSTEM, INC. ("SHS"), AN INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION LOCATED IN RHODE ISLAND AND SOUTHEASTERN MASSACHUSETTS, BECAME A SUBSIDIARY OF CARE NEW ENGLAND HEALTH SYSTEM ("CARE NEW ENGLAND"), AN INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION AND THE PARENT ENTITY OF A RHODE ISLAND BASED TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. SHS IS THE SOLE CORPORATE MEMBER OF MEMORIAL. CARE NEW ENGLAND BECAME THE PARENT ORGANIZATION AND SOLE MEMBER OF SHS AS A RESULT OF THIS ACQUISITION. CARE NEW ENGLAND AND SHS BELIEVE THAT THE ACQUISITION WILL GREATLY IMPROVE COMPREHENSIVE HEALTHCARE SERVICES. FOUNDED IN 1901, MEMORIAL HAD GROWN STEADILY FROM A 30-BED INSTITUTION TO A 13-ACRE TEACHING INSTITUTION WITH 294 BEDS AND TWO SATELLITE PRIMARY CARE CENTER FACILITIES IN RHODE ISLAND AND NEARBY MASSACHUSETTS. MEMORIAL HAD COME TO EMBODY A MYRIAD OF INTERNATIONALLY-RENOWNED RESEARCH STUDIES, ACTIVE CARDIOLOGY, CANCER AND PULMONARY PROGRAMS, AND AN IN AND OUT-PATIENT REHABILITATION CENTER. MEMORIAL HAD ALSO FOSTERED A HEALTHY RELATIONSHIP WITH THE WARREN ALPERT MEDICAL SCHOOL OF BROWN UNIVERSITY, SERVED AS A MAJOR TEACHING AFFILIATE FOR BOTH INTERNAL AND FAMILY MEDICINE, AS WELL AS SERVING AS A TRAINING LOCATION FOR ALPERT MEDICAL SCHOOL'S PODIATRY RESIDENTS. THE FAMILY MEDICINE PROGRAM WAS THE ONLY ONE OF ITS KIND IN THE STATE TO OFFER A PRIMARY CARE MEDICAL HOME, INTEGRATING THE BROAD RANGE OF PREVENTIVE COUNSELING AND DIAGNOSTIC AND TREATMENT SERVICES IN ONE SETTING. THESE ELEMENTS COMBINED FOR A DYNAMIC ATMOSPHERE IN WHICH MEMORIAL REACHED BEYOND THE BOUNDARIES OF CONVENTIONAL MEDICINE TO DEVELOP BOLD NEW PROGRAMS AND SERVICES THAT WERE DESIGNED TO HELP PEOPLE STAY HEALTHY BEFORE, DURING AND AFTER HOSPITALIZATION. THE COMMITMENT TO THE COMMUNITY HAS HELPED FUEL MEMORIAL'S DYNAMIC GROWTH THROUGH THE DECADES, FROM THE CONSTRUCTION OF A PRIVATE WING FOR 23 PATIENTS CONSTRUCTED IN 1918 FOR JUST $50,975 TO THE OPENING OF THE SPECTACULAR $12.6 MILLION SAYLES BUILDING IN 1987. CARE NEW ENGLAND HEALTH SYSTEM WAS FORMED IN FEBRUARY 1996 BY FOUNDING MEMBERS BUTLER HOSPITAL, KENT COUNTY MEMORIAL HOSPITAL AND WOMEN & INFANTS HOSPITAL OF RHODE ISLAND. THESE THREE HOSPITALS ARE ALL INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATIONS. AS OUTLINED EARLIER, SHS, WHICH INCLUDES MEMORIAL, JOINED CARE NEW ENGLAND IN SEPTEMBER OF 2013. IN JUNE 1999, KENT COUNTY VISITING NURSE ASSOCIATION BECAME A MEMBER OF THE CARE NEW ENGLAND FAMILY, AND LATER THAT YEAR ANNOUNCED ITS NAME CHANGE TO VNA OF CARE NEW ENGLAND. IN 2000, HEALTHTOUCH, INC., A PRIVATE DUTY NURSING SERVICE, JOINED THE DIVISION. TODAY, VNA OF CARE NEW ENGLAND PROVIDES A BROAD SPECTRUM OF HOME HEALTH AND HOSPICE SERVICES. THE CARE NEW ENGLAND HEALTH SYSTEM WAS FOUNDED IN 1996 BY MEMBERS COMMITTED TO THE VISION THAT WE CAN BUILD A BETTER SYSTEM OF HEALTHCARE FOR THE PEOPLE AND COMMUNITIES OF SOUTHEASTERN NEW ENGLAND. THE SYSTEM OFFERS THE LATEST ADVANCES IN MEDICINE, SPECIALTY-TRAINED DOCTORS, AND RENOWNED SERVICES AND CARE. AN INTEGRATED HEALTH SYSTEM THAT OFFERS A CONTINUUM OF QUALITY CARE, CARE NEW ENGLAND IS MOVING HEALTHCARE FORWARD AND REINVENTING THE WAY HEALTHCARE IS DELIVERED. THIS APPROACH PUTS A BROAD SPECTRUM OF CARE - ADDRESSING CANCER, CARDIAC REHABILITATION, HYPERBARIC MEDICINE, PARKINSON'S DISEASE, MATERNAL-FETAL MEDICINE AND FETAL SURGERY, ADVANCED LAPAROSCOPIC AND ROBOTIC SURGERY, STROKE AND ADDICTION TREATMENT - ALL UNDER ONE UMBRELLA SO THEY ARE EASILY ACCESSIBLE TO PATIENTS AND FAMILIES. CARE NEW ENGLAND INCLUDES: BUTLER HOSPITAL, RHODE ISLAND'S ONLY PRIVATE, NONPROFIT PSYCHIATRIC AND SUBSTANCE ABUSE HOSPITAL FOR ADULTS, ADOLESCENTS, CHILDREN AND SENIORS; KENT COUNTY MEMORIAL HOSPITAL, THE LARGEST COMMUNITY HOSPITAL IN THE STATE, PROVIDING A FULL SPECTRUM OF PRIMARY AND SECONDARY ACUTE CARE SERVICES; WOMEN & INFANTS HOSPITAL OF RHODE ISLAND, ONE OF THE NATION'S BUSIEST OBSTETRICAL FACILITIES WITH ONE OF THE NATION'S LARGEST SINGLE-FAMILY ROOM NEONATAL INTENSIVE CARE UNITS, THE AREA'S ONLY TERTIARY LEVEL NEONATAL FACILITY, AND VARIOUS SPECIALTY SERVICES; THE MEMORIAL HOSPITAL OF RHODE ISLAND, UNTIL ITS CLOSURE ON MAY 1, 2018, WAS ONE OF THE STATES MOST PROGRESSIVE PROPONENTS OF PRIMARY CARE AND THE INTEGRATION OF SPECIALTY SERVICES; THE VNA OF CARE NEW ENGLAND, WHICH PROVIDES A BROAD SPECTRUM OF HOME HEALTH, HOSPICE AND PRIVATE DUTY NURSING SERVICES FOR NEW MOTHERS, THE ELDERLY AND THE TERMINALLY ILL; AND THE PROVIDENCE CENTER, PROVIDING OUTPATIENT MENTAL HEALTH AND SUBSTANCE USE SERVICES IN PATIENTS' HOMES, SCHOOLS AND NEIGHBORHOODS. THE SYSTEM INCLUDES A SOLID, DIVERSE COMBINATION OF PHYSICIAN SPECIALISTS AND GENERALISTS AND A STRONG COMMITMENT TO EDUCATION. BUTLER, MEMORIAL AND WOMEN & INFANTS HOSPITALS ARE MAJOR TEACHING AFFILIATES OF THE WARREN ALPERT MEDICAL SCHOOL OF BROWN UNIVERSITY, WHILE KENT IS A TEACHING SITE FOR THE UNIVERSITY OF NEW ENGLAND COLLEGE OF OSTEOPATHIC MEDICINE. IN ADDITION, CARE NEW ENGLAND IS COMMITTED, THROUGH NATIONAL AND INTERNATIONALLY-FUNDED AND RECOGNIZED RESEARCH PROJECTS, TO FINDING ANSWERS TO MANY OF TODAY'S MEDICAL QUESTIONS. CARE NEW ENGLAND PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO PATIENTS WHO MEET CERTAIN CRITERIA UNDER ITS CHARITY CARE POLICY WITHOUT CHARGE OR AT AMOUNTS LESS THAN THE ESTABLISHED RATES. BECAUSE CARE NEW ENGLAND DOES NOT PURSUE COLLECTION OF AMOUNTS DETERMINED TO QUALIFY AS CHARITY CARE, IT IS NOT REPORTED AS REVENUE. CHARITY CARE INCLUDES SERVICES TO UNINSURED PATIENTS WHO CARE NEW ENGLAND HAS DETERMINED QUALIFY FOR CHARITY CARE UNDER CARE NEW ENGLAND POLICIES. SERVICES TO UNINSURED PATIENTS WHO ARE NOT ELIGIBLE FOR CHARITY CARE OR WHO CARE NEW ENGLAND WAS NOT ABLE TO DETERMINE THEIR ELIGIBILITY ARE NOT REPORTED AS CHARITY CARE BUT REPORTED IN THE PROVISION FOR BAD DEBTS. ADDITIONALLY, CARE NEW ENGLAND SPONSORS CERTAIN OTHER PROGRAMS WHICH PROVIDE SUBSTANTIAL BENEFIT TO THE BROADER COMMUNITY. SUCH PROGRAMS INCLUDE SERVICES TO NEEDY POPULATIONS INCLUDING COMMUNITY SERVICE PROGRAMS AND SERVICES FOR SCHOOL-AGED CHILDREN AND THE ELDERLY. CARE NEW ENGLAND ALSO ACTIVELY SPONSORS PROGRAMS ON HEALTH EDUCATION AND WELLNESS. CORE FORM, PART III, STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS CARE NEW ENGLAND MAINTAINS RECORDS TO IDENTIFY AND MONITOR THE LEVEL OF CHARITY CARE AND COMMUNITY SERVICE IT PROVIDES. THESE RECORDS INCLUDE THE AMOUNT OF CHARGES FORGONE BASED ON ESTABLISHED RATES FOR SERVICES AND SUPPLIES FURNISHED UNDER ITS CHARITY AND COMMUNITY SERVICE POLICIES. MISSION ======= MEMORIAL'S MISSION WAS TO BE YOUR PARTNER IN HEALTH. VISION ====== MEMORIAL'S VISION WAS TO CREATE A COMMUNITY OF HEALTHIER PEOPLE. VALUES ====== MEMORIAL'S ORGANIZATIONAL VALUES EMPHASIZED INDIVIDUAL CONTRIBUTIONS AND TEAM APPROACH THAT FOSTER: - ACCOUNTABILITY, - CARING, AND - TEAMWORK. OVERVIEW ======== MEMORIAL'S MAIN CAMPUS IS IN PAWTUCKET, RHODE ISLAND, AND IT OPERATED PRIMARY CARE AND OTHER SERVICES IN OFF-SITE LOCATIONS IN PAWTUCKET AND CENTRAL FALLS, RI AND PLAINVILLE, MASSACHUSETTS. MEMORIAL ALSO HAD A STATE-OF-THE-ART CANCER AND CARDIOVASCULAR TREATMENT FACILITY IN PAWTUCKET, RI. THE MOST TELLING INDICATION OF THE HOSPITAL'S DEDICATION TO EDUCATION WAS EMBODIED IN ITS AFFILIATION WITH THE ALPERT MEDICAL SCHOOL. CREATED IN 1969, THE RELATIONSHIP HAS BROUGHT THOUSANDS OF THE BEST YOUNG MEDICAL STUDENTS, INTERNS, RESIDENTS AND RESEARCH FELLOWS IN THE COUNTRY THROUGH THE HOSPITAL'S DOORS FOR STUDY AND PRACTICE. MEMORIAL HAD GROWN INTO THE SECOND LARGEST TEACHING HOSPITAL IN THE STATE, WITH THE MAJORITY OF THE FULL-TIME MEDICAL STAFF AFFILIATED WITH THE MEDICAL SCHOOL, AND DOZENS OF RESIDENTS IN VARIOUS SPECIALTIES WORKING AT THE HOSPITAL. MEMORIAL WAS HOME TO ALPERT MEDICAL SCHOOL'S FAMILY MEDICINE AND INTERNAL MEDICINE RESIDENCY PROGRAMS, THROUGH WHICH STAFF PHYSICIANS TEACH MEDICAL RESIDENTS ABOUT REHABILITATION AND RESTORATIVE CARE. THIS INFUSION INVIGORATED MEMORIAL'S MEDICAL RESEARCH ENDEAVORS. MORE THAN 50 RESEARCH PROJECTS WERE SUPPORTED BY MORE THAN $2.5 MILLION IN FEDERAL FUNDS, RANKS THE HOSPITAL AMONG THE TOP RESEARCH HOSPITALS IN RHODE ISLAND. MEMORIAL WAS ALSO ON THE FOREFRONT IN THE FIELD OF FAMILY MEDICINE, WHICH EMPHASIZED THE ROLE OF THE PRIMARY CARE PHYSICIAN AS THE ORCHESTRATOR OF CARE AND TREATMENT FOR MEMBERS OF AN ENTIRE FAMILY. THESE DOCTORS PROVIDED PREVENTIVE HEALTHCARE ASSESSMENTS AND COUNSELING FOR FAMILIES IN ADDITION TO THEIR TRADITIONAL DIAGNOSTIC AND TREATMENT SERVICES. ALPERT MEDICAL SCHOOL'S FAMILY MEDICINE TEACHING PROGRAM WAS ANCHORED AT MEMORIAL HOSPITAL, AND RESIDENTS WOULD UNDERGO RIGOROUS TRAINING IN A WIDE VARIETY OF MEDICAL AREAS, INCLUDING PEDIATRICS, GERONTOLOGY, SURGERY, EMERGENCY MEDICINE, OBSTETRICS, GYNECOLOGY, INTERNAL AND BEHAVIORAL MEDICINE. THROUGHOUT THE THREE-YEAR PROGRAM, RESIDENTS WORKED DIRECTLY WITH FAMILIES IN NEIGHBORHOOD HEALTH CENTERS, PRIVATE PHYSICIAN OFFICES AND AS STAFF MEMBERS OF MEMORIAL'S CENTER FOR PRIMARY CARE AND PREVENTION. IN THAT CAPACITY, THEY PROVIDED FAMILY PLANNING SERVICES, ASSESS LEARNING DISABILITIES, PROVIDED FAMILY CRISIS INTERVENTION AND OFFERED A FULL SCOPE OF TRADITIONAL MEDICAL SERVICES. COMPREHENSIVE SERVICES ====================== MEMORIAL WAS HOME TO SOPHISTICATED TECHNOLOGY AND EXPERIENCED HIGHLY SKILLED TECHNOLOGISTS, NURSES, AND PHYSICIANS. MEMORIAL PROVIDED ADVANCED HEALTHCARE IN AN ENVIRONMENT OF CARING, COMPASSION AND DEDICATION TO EXCELLENCE. THE HOSPITAL PROVIDED THE FOLLOWING SERVICES: - AMBULATORY CENTER - ANESTHESIOLOGY - AUDIOLOGY & HEARING SERVICES - CANCER CENTER - CARDIAC REHABILITATION - CARDIOVASCULAR CENTER - COMPREHENSIVE CONCUSSION MANAGEMENT CENTER - CRITICAL CARE MEDICINE - DERMATOLOGY - DIABETES - DIAGNOSTIC IMAGING - EMERGENCY SERVICES - ENDOCRINOLOGY - ENDOSCOPY CENTER - FAMILY MEDICINE - GASTROENTEROLOGY - GERIATRIC SERVICES - GYNECOLOGY - HEMATOLOGY/ONCOLOGY - HOSPITALIST SERVICE - INFECTIOUS DISEASES - INTERNAL MEDICINE - LABORATORY SERVICES (OUTPATIENT) - NEW ENGLAND PEDIATRIC CENTER OF NEURODEVELOPMENT - NEUROLOGY - NEUROSURGERY - NUTRITION SERVICES - OCCUPATIONAL THERAPY (OUTPATIENT) - ORTHOPAEDICS AND SPORTS MEDICINE - PAIN MANAGEMENT CENTER - PASTORAL CARE PROGRAM - PEDIATRIC PRIMARY CARE CENTER - PEDIATRIC SPECIALTY CLINICS - PEDIATRICS - PHYSICAL THERAPY (OUTPATIENT) - PODIATRY FOR ADULTS AND CHILDREN - PULMONARY CENTER - REHABILITATION (IN AND OUTPATIENT) - SLEEP CENTER - SOCIAL SERVICES - SPASTICITY - SPEECH THERAPY (OUTPATIENT) - STROKE CENTER - SURGICAL SERVICES - TONE MANAGEMENT - TRAVEL CLINIC - URGENT CARE CENTER COMMUNITY SERVICE ================= PRIOR TO ITS CLOSURE ON MAY 1, 2018, THE MEMORIAL HOSPITAL OF RHODE ISLAND, A VIBRANT, NOT-FOR-PROFIT HEALTH, TEACHING AND RESEARCH CENTER BUILT ON A FOUNDATION OF PHILANTHROPY THAT SPANS GENERATIONS AND IS KNOWN THROUGHOUT THE BLACKSTONE VALLEY, EAST BAY REGIONS OF RHODE ISLAND AND IN BRISTOL COUNTY, MASSACHUSETTS. IT WAS A LEADING AND INNOVATIVE HEALTHCARE RESOURCE WITH A TRADITION OF TREATING PATIENTS REGARDLESS OF THEIR ABILITY TO PAY AND WAS COMMITTED TO PROVIDING MODERN FACILITIES THAT PROVIDE STATE-OF-THE-ART CARE FOR ALL. IN ADDITION TO CHARITY CARE, MEMORIAL HOSPITAL ALSO PROVIDED NUMEROUS SERVICES TO THE COMMUNITY AT NO CHARGE, INCLUDING LANGUAGE INTERPRETATION, PHYSICIAN REFERRAL, COMMUNITY HEALTH SCREENINGS, HEALTH AND WELLNESS EDUCATION, AND SUPPORT GROUPS. THESE SERVICES ARE POSSIBLE BECAUSE THE HOSPITAL CONSTANTLY STRIVES TO INVEST IN ITS FACILITIES, EQUIPMENT AND PERSONNEL. CORE FORM PART III, QUESTION 3 In October of 2017 the Boards of THE Memorial Hospital, its parent corporation, Southeastern Healthcare System, Inc. And Care New England HEALTH SYSTEM voted to discontinue the operations of THE Memorial Hospital as a licensed hospital. On December 1, 2017, THE Memorial Hospital, with the approval of the Rhode Island Department of Health, closed both inpatient and surgical services. Emergency services were closed on January 1, 2018. On May 1, 2018, the Rhode Island Department of Health formally approved the Memorial Hospital closure. CORE FORM, PART V, QUESTION 1A & CORE FORM, PART VII; SECTION B THE ORGANIZATION IS AN AFFILIATE WITHIN CARE NEW ENGLAND HEALTH SYSTEM AND AFFILIATES; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM ("SYSTEM"). THE ORGANIZATION'S FORM 990 REFLECTS NO TOP FIVE INDEPENDENT CONTRACTORS FOR SERVICES AND REPORTS THAT NO FORMS 1099 WERE FILED WITH THE INTERNAL REVENUE SERVICE ("IRS"). CARE NEW ENGLAND HEALTH SYSTEM, A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION PAYS ALL OUTSTANDING ACCOUNTS PAYABLE INVOICES ON BEHALF OF THIS ORGANIZATION. IN CONJUNCTION WITH THIS SERVICE, CARE NEW ENGLAND HEALTH SYSTEM ALSO PREPARES AND ISSUES FORMS 1099 TO THESE VENDORS RECEIVING PAYMENTS WHERE APPLICABLE AND FILES THESE FORMS 1099 WITH THE IRS. CARE NEW ENGLAND HEALTH SYSTEM ALLOCATES THESE PAYMENTS TO THE ORGANIZATION VIA AN INTERCOMPANY ACCOUNT. CORE FORM, PART VI, SECTION A; QUESTION 3 THE HOSPITAL ENGAGES SODEXHO MANAGEMENT, INC. TO BE AN AGENT OF THE HOSPITAL AND DELEGATES CONTROL TO SODEXHO IN THE MANAGEMENT OF DAILY OPERATIONS OF ITS FOOD AND NUTRITION DEPARTMENT. THE SODEXHO MANAGEMENT EMPLOYEE FUNCTIONS AND IS RECOGNIZED AS A DEPARTMENT MANAGER WHO PERFORMS IN ACCORDANCE WITH THE HOSPITAL'S DEPARTMENT MANAGEMENT PRACTICES AND IN ACCORDANCE WITH ITS WRITTEN POLICIES AND PROCEDURES. THE POSITION REPORTS TO AN OFFICER/KEY EMPLOYEE OF THE HOSPITAL. CORE FORM, PART VI, SECTION A; QUESTIONS 6 AND 7 CARE NEW ENGLAND HEALTH SYSTEM ("CNE"), AS THE PARENT ENTITY OF THIS TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM, HAS THE ULTIMATE AUTHORITY TO ELECT THE MEMBERS OF THIS ORGANIZATION'S BOARD OF DIRECTORS AND HAS CERTAIN RESERVED POWERS AS DEFINED IN THIS ORGANIZATION'S BYLAWS. CORE FORM, PART VI, SECTION B; QUESTION 11B THE ORGANIZATION IS AN AFFILIATE WITHIN CARE NEW ENGLAND HEALTH SYSTEM AND AFFILIATES ("SYSTEM"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. CARE NEW ENGLAND HEALTH SYSTEM IS THE TAX-EXEMPT PARENT ENTITY OF THE SYSTEM. THE ORGANIZATION'S FEDERAL FORM 990 WAS PROVIDED TO EACH VOTING MEMBER OF ITS GOVERNING BODY (ITS BOARD OF DIRECTORS) PRIOR TO THE FILING WITH THE INTERNAL REVENUE SERVICE ("IRS"). IN ADDITION THE CARE NEW ENGLAND HEALTH SYSTEM FINANCE COMMITTEE ALSO PERFORMED A REVIEW OF THE FEDERAL FORM 990 PRIOR TO PROVIDING IT TO EACH VOTING MEMBER OF ITS BOARD OF DIRECTORS. THE CARE NEW ENGLAND HEALTH SYSTEM BOARD OF DIRECTORS HAS DELEGATED TO THE FINANCE COMMITTEE THE RESPONSIBILITY TO OVERSEE AND COORDINATE THE FEDERAL FORM 990 PREPARATION, REVIEW AND FILING PROCESS FOR THE TAX-EXEMPT AFFILIATES OF THE SYSTEM. AS PART OF THE ORGANIZATION'S FEDERAL FORM 990 TAX RETURN PREPARATION PROCESS THE ORGANIZATION HIRED A PROFESSIONAL CERTIFIED PUBLIC ACCOUNTING ("CPA") FIRM WITH EXPERIENCE AND EXPERTISE IN BOTH HEALTHCARE AND NOT-FOR-PROFIT TAX RETURN PREPARATION TO PREPARE THE FEDERAL FORM 990. THE CPA FIRM'S TAX PROFESSIONALS WORKED CLOSELY WITH THE ORGANIZATION'S FINANCE DEPARTMENT LEADERSHIP ("INTERNAL WORKING GROUP") TO OBTAIN THE INFORMATION NEEDED IN ORDER TO PREPARE A COMPLETE AND ACCURATE TAX RETURN. THE CPA FIRM PREPARED A DRAFT FEDERAL FORM 990 AND FURNISHED IT TO THE ORGANIZATION'S INTERNAL WORKING GROUP FOR THEIR REVIEW. THE ORGANIZATION'S INTERNAL WORKING GROUP REVIEWED THE DRAFT FEDERAL FORM 990 AND DISCUSSED QUESTIONS AND COMMENTS WITH THE CPA FIRM. REVISIONS WERE MADE TO THE DRAFT FEDERAL FORM 990 WHERE NECESSARY AND A FINAL DRAFT WAS FURNISHED BY THE CPA FIRM TO THE ORGANIZATION'S INTERNAL WORKING GROUP FOR FINAL REVIEW AND APPROVAL PRIOR TO PRESENTATION OF THE FEDERAL FORM 990 TO THE MEMBERS OF THE CARE NEW ENGLAND HEALTH SYSTEM FINANCE COMMITTEE. THEREAFTER, THE FINAL FEDERAL FORM 990 WAS PROVIDED TO EACH VOTING MEMBER OF THE ORGANIZATION'S GOVERNING BODY PRIOR TO THE FILING WITH THE IRS. CORE FORM, PART VI, SECTION B; QUESTION 12 THE ORGANIZATION HAS A WRITTEN CONFLICT OF INTEREST POLICY WITH WHICH IT REGULARLY MONITORS AND ENFORCES COMPLIANCE. THE POLICY REQUIRES THAT A CONFLICT OF INTEREST DISCLOSURE FORM CONSISTENT WITH BEST GOVERNANCE PRACTICES AND INTERNAL REVENUE SERVICE GUIDELINES BE CIRCULATED TO OFFICERS, DIRECTORS, AND KEY EMPLOYEES ANNUALLY. IF AN INDIVIDUAL DISCLOSES AN INTEREST THAT COULD GIVE RISE TO A CONFLICT, THE INDIVIDUAL'S POTENTIAL CONFLICT IS REFERRED TO THE BOARD OF DIRECTORS, WHICH EVALUATES THE CONFLICT AND ITS POTENTIAL IMPACT ON THE INDIVIDUAL'S PARTICIPATION ON THE BOARD OR ON CERTAIN ISSUES THAT MAY COME BEFORE THE BOARD. AFTER CONSULTATION WITH THE ORGANIZATION'S GENERAL COUNSEL, THE BOARD WILL TAKE ANY NECESSARY MITIGATING ACTION, IF APPROPRIATE AND NECESSARY, TO ADDRESS ANY SUCH CONFLICT IN A MANNER CONSISTENT WITH THE ORGANIZATION'S CONFLICT OF INTEREST POLICY. CORE FORM, PART VI, SECTION B; QUESTION 15 THE BOARD OF DIRECTORS OF CARE NEW ENGLAND HEALTH SYSTEM ("CNE") HAS A COMMITTEE OF DIRECTORS KNOWN AS THE CNE COMPENSATION COMMITTEE ("THE COMMITTEE"). THE COMMITTEE IS RESPONSIBLE FOR DISCHARGING THE BOARD'S RESPONSIBILITIES REGARDING THE TOTAL COMPENSATION PROGRAM FOR EXECUTIVES AND KEY PHYSICIANS IN CONJUNCTION WITH THE MEMORIAL HOSPITAL PRESIDENT AND CHIEF OPERATING OFFICER. THE COMMITTEE AT ALL TIMES CONDUCTS ITSELF FREE FROM EXECUTIVE MANAGEMENT IN ITS DECISION MAKING PROCESS EXCEPT WITH RESPECT TO DECISIONS RELATING TO THE PRESIDENT AND CHIEF OPERATING OFFICER WHICH ARE MADE IN CONJUNCTION WITH THE CARE NEW ENGLAND HEALTH SYSTEM CHIEF EXECUTIVE OFFICER. THE ACTIONS TAKEN BY THE COMMITTEE ENABLE THIS ORGANIZATION TO RECEIVE THE REBUTTABLE PRESUMPTION OF REASONABLENESS FOR PURPOSES OF INTERNAL REVENUE CODE SECTION 4958 WITH RESPECT TO THE TOTAL COMPENSATION OF CERTAIN MEMBERS OF THE MEMORIAL HOSPITAL SENIOR MANAGEMENT TEAM, INCLUDING, BUT NOT LIMITED TO, THE MEMORIAL HOSPITAL PRESIDENT/CHIEF OPERATING OFFICER AND CHIEF FINANCIAL OFFICER. THE THREE FACTORS WHICH MUST BE SATISFIED IN ORDER TO RECEIVE THE REBUTTABLE PRESUMPTION OF REASONABLENESS ARE THE FOLLOWING: 1. THE COMPENSATION ARRANGEMENT IS APPROVED IN ADVANCE BY AN "AUTHORIZED BODY" OF THE APPLICABLE TAX-EXEMPT ORGANIZATION WHICH IS COMPOSED ENTIRELY OF INDIVIDUALS WHO DO NOT HAVE A "CONFLICT OF INTEREST" WITH RESPECT TO THE COMPENSATION ARRANGEMENT; 2. THE AUTHORIZED BODY OBTAINED AND RELIED UPON "APPROPRIATE DATA AS TO COMPARABILITY" PRIOR TO MAKING ITS DETERMINATION; AND 3. THE AUTHORIZED BODY "ADEQUATELY DOCUMENTED THE BASIS FOR ITS DETERMINATION" CONCURRENTLY WITH MAKING THAT DETERMINATION. THE COMMITTEE IS COMPRISED OF MEMBERS OF THE BOARD OF DIRECTORS; EACH OF WHOM ARE INDEPENDENT AND ARE FREE FROM ANY CONFLICTS OF INTEREST. THE COMMITTEE RELIED UPON APPROPRIATE COMPARABLE DATA; SPECIFICALLY THE COMMITTEE OBTAINED A WRITTEN COMPENSATION STUDY FROM AN INDEPENDENT FIRM WHICH SPECIALIZES IN THE REVIEWING OF HOSPITAL AND HEALTHCARE SYSTEM EXECUTIVE COMPENSATION AND BENEFITS THROUGHOUT THE UNITED STATES. THIS STUDY USED COMPARABLE GEOGRAPHIC AND DEMOGRAPHIC MARKET DATA INCLUDING BUT NOT LIMITED TO SIMILARLY SIZED HEALTHCARE SYSTEMS AND HOSPITALS, # OF LICENSED BEDS AND NET PATIENT SERVICE REVENUE. THE COMMITTEE ADEQUATELY DOCUMENTED ITS BASIS FOR ITS DETERMINATION THROUGH THE TIMELY PREPARATION OF WRITTEN MINUTES OF THE COMPENSATION COMMITTEE MEETINGS DURING WHICH THE EXECUTIVE COMPENSATION AND BENEFITS WAS REVIEWED AND SUBSEQUENTLY APPROVED. THE ACTIONS OUTLINED ABOVE WITH RESPECT TO THE COMMITTEE AND THE ESTABLISHMENT OF THE REBUTTABLE PRESUMPTION OF REASONABLENESS APPLIES TO CERTAIN SENIOR MANAGEMENT PERSONNEL, INCLUDING, BUT NOT LIMITED TO, THE PRESIDENT/CHIEF OPERATING OFFICER AND CHIEF FINANCIAL OFFICER. THE COMPENSATION AND BENEFITS OF CERTAIN OTHER INDIVIDUALS CONTAINED IN THIS FORM 990 ARE REVIEWED ANNUALLY BY THE CNE COMPENSATION COMMITTEE. IN ADDITION, THE COMPENSATION AND BENEFITS OF CERTAIN OTHER INDIVIDUALS CONTAINED IN THIS FORM 990 ARE REVIEWED ANNUALLY BY THE MEMORIAL HOSPITAL PRESIDENT/CHIEF OPERATING OFFICER WITH ASSISTANCE FROM THE ORGANIZATION'S HUMAN RESOURCES DEPARTMENT IN CONJUNCTION WITH THE INDIVIDUAL'S JOB PERFORMANCE DURING THE YEAR AND IS BASED UPON OTHER OBJECTIVE FACTORS DESIGNED TO ENSURE THAT REASONABLE AND FAIR MARKET VALUE COMPENSATION IS PAID BY THE ORGANIZATION. OTHER OBJECTIVE FACTORS INCLUDE MARKET SURVEY DATA FOR COMPARABLE POSITIONS, INDIVIDUAL GOALS AND OBJECTIVES, PERSONNEL REVIEWS, EVALUATIONS, SELF-EVALUATIONS AND PERFORMANCE FEEDBACK MEETINGS. CORE FORM, PART VI, SECTION C; QUESTION 19 THE ORGANIZATION HAS ISSUED TAX-EXEMPT BONDS TO FINANCE VARIOUS CAPITAL IMPROVEMENT PROJECTS, RENOVATIONS AND EQUIPMENT. IN CONJUNCTION WITH THE ISSUANCE OF THESE TAX-EXEMPT BONDS, THE ORGANIZATION'S FINANCIAL STATEMENTS WERE INCLUDED WITH THE TAX-EXEMPT BOND PROSPECTUS WHICH WAS MADE AVAILABLE TO THE GENERAL PUBLIC FOR REVIEW. IN ADDITION, THE ORGANIZATION'S FILED CERTIFICATE OF INCORPORATION AND ANY AMENDMENTS CAN BE OBTAINED AND REVIEWED THROUGH THE STATE OF RHODE ISLAND SECRETARY OF STATE. CORE FORM, PART VII AND SCHEDULE J VII AND SCHEDULE J REFLECT CERTAIN BOARD MEMBERS AND OFFICERS RECEIVING COMPENSATION AND BENEFITS FROM THIS ORGANIZATION OR A RELATED ORGANIZATION. PLEASE NOTE THIS REMUNERATION WAS FOR SERVICES RENDERED AS FULL-TIME OR PART-TIME EMPLOYEES OR INDEPENDENT CONTRACTORS OF THE ORGANIZATION OR A RELATED ORGANIZATION AND NOT FOR SERVICES RENDERED AS A VOTING MEMBER OR OFFICER OF THIS ORGANIZATION'S BOARD OF DIRECTORS. CORE FORM, PART VII, SECTION A, COLUMN B THE ORGANIZATION IS AN AFFILIATE WITHIN THE CARE NEW ENGLAND HEALTH SYSTEM AND AFFILIATES ("SYSTEM"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. THE SYSTEM INCLUDES BOTH FOR-PROFIT AND NOT FOR-PROFIT ORGANIZATIONS. CERTAIN BOARD OF DIRECTOR MEMBERS, OFFICERS AND/OR DIRECTORS LISTED ON CORE FORM, PART VII AND SCHEDULE J OF THIS FORM 990 MAY HOLD SIMILAR POSITIONS WITH BOTH THIS ORGANIZATION AND OTHER AFFILIATES WITHIN THE SYSTEM. THE HOURS SHOWN ON THIS FORM 990 FOR BOARD MEMBERS WHO RECEIVE NO COMPENSATION FOR SERVICES RENDERED IN A NON-BOARD CAPACITY, REPRESENT THE ESTIMATED HOURS DEVOTED PER WEEK FOR THIS ORGANIZATION. TO THE EXTENT THESE INDIVIDUALS SERVE AS A MEMBER OF THE BOARD OF DIRECTORS OF OTHER RELATED ORGANIZATIONS IN THE SYSTEM, THEIR RESPECTIVE HOURS PER WEEK PER ORGANIZATION ARE APPROXIMATELY THE SAME AS REFLECTED ON CORE FORM, PART VII OF THIS FORM 990. THE HOURS REFLECTED ON CORE FORM, PART VII OF THIS FORM 990, FOR BOARD MEMBERS WHO RECEIVE COMPENSATION FOR SERVICES RENDERED IN A NON-BOARD CAPACITY, PAID OFFICERS AND KEY EMPLOYEES, REFLECT TOTAL HOURS WORKED PER WEEK ON BEHALF OF THE SYSTEM; NOT SOLELY THIS ORGANIZATION. CORE FORM, PART X; LINE 25 THE ORGANIZATION IS AN AFFILIATE WITHIN CARE NEW ENGLAND HEALTH SYSTEM AND AFFILIATES; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM ("SYSTEM"). THE SYSTEM HAS A NUMBER OF OUTSTANDING LONG-TERM OBLIGATED GROUP DEBT LIABILITIES, INCLUDING THE FOLLOWING BOND ISSUANCES: - RHODE ISLAND HEALTH AND EDUCATIONAL BUILDING CORPORATION BONDS SERIES 2016B. THE BONDS OUTLINED ABOVE AND VARIOUS OTHER LONG-TERM BORROWINGS ARE ALLOCATED BY CARE NEW ENGLAND HEALTH SYSTEM; THE TAX-EXEMPT PARENT OF THE SYSTEM, TO THE FOLLOWING SYSTEM MEMBER HOSPITALS AND CERTAIN OTHER AFFILIATES. THE BALANCE SHEET OF THESE RESPECTIVE MEMBER HOSPITALS AND CERTAIN OTHER AFFILIATES REFLECTS A OBLIGATED GROUP LIABILITY. ACCORDINGLY, THIS CARE NEW ENGLAND HEALTH SYSTEM OBLIGATED GROUP LIABILITY IS REFLECTED ON THE BALANCE SHEET OF THE FOLLOWING SUBSIDIARY ORGANIZATIONS: - BUTLER HOSPITAL, EIN: 05-0258812 - KENT COUNTY MEMORIAL HOSPITAL, EIN: 05-0258896 - SHS VENTURES, INC., EIN: 05-0510341 - THE MEMORIAL HOSPITAL, EIN: 05-0259004 - THE PROVIDENCE CENTER, INC., EIN: 05-0316969 - VNA OF CARE NEW ENGLAND, EIN: 05-0242659 - WOMEN AND INFANTS CORPORATION, EIN: 02-2885807 - WOMEN & INFANTS HOSPITAL OF RHODE ISLAND, EIN: 05-0258937 SCHEDULE K WAS PREPARED ON A CONSOLIDATED BASIS AND IS INCLUDED IN THE FORM 990 OF CARE NEW ENGLAND HEALTH SYSTEM, EIN: 05-0490997. CORE FORM, PART XI; LINE 9 OTHER CHANGES IN FUND BALANCE INCLUDE: - PENSION AND POSTRETIREMENT ADJUSTMENTS - $12,190,924; - NET ASSETS RELEASED FROM RESTRICTION USED FOR PURCHASE OF PROPERTY, PLANT AND EQUIPMENT - $10,137; - TEMPORARILY RESTRICTED NET ASSETS RELEASED FROM RESTRICTION - ($107,038); - NET ASSETS RELEASED FROM PERMANENTLY RESTRICTED - $61,493; - PENSION SETTLEMENT - ($19,143,467); - OTHER COMPONENTS OF CURRENT PERIOD PENSION - ($529,024); - NET EQUITY TRANSFER FROM CARE NEW ENGLAND HEALTH SYSTEM, INC.; A RELATED INTERNAL REVENUE CODE SECTION 501(c)(3) TAX-EXEMPT ORGANIZATION - $70,122,853; - NET ASSET TRANSFER FROM THE MEMORIAL HOSPITAL FOUNDATION; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION - $2,015,300; AND - CANCELLATION OF RECEIVABLE FROM SHS VENTURES, INC.; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION - ($1,393,209). CORE FORM, PART XII; QUESTION 2 THIS ORGANIZATION IS AN AFFILIATE WITHIN CARE NEW ENGLAND HEALTH SYSTEM AND AFFILIATES; A TAX-EXEMPT, INTEGRATED HEALTHCARE DELIVERY SYSTEM ("SYSTEM"). THE SYSTEM'S TAX-EXEMPT PARENT ENTITY IS CARE NEW ENGLAND HEALTH SYSTEM. AN INDEPENDENT CPA FIRM AUDITED THE CONSOLIDATED FINANCIAL STATEMENTS OF CARE NEW ENGLAND HEALTH SYSTEM AND ALL ENTITIES WITHIN THE SYSTEM FOR THE YEARS ENDED SEPTEMBER 30, 2018 AND SEPTEMBER 30, 2017; RESPECTIVELY, AND ISSUED A CONSOLIDATED FINANCIAL STATEMENT WITH CONSOLIDATING SCHEDULES BY ENTITY. AN UNMODIFIED OPINION WAS ISSUED EACH YEAR BY THE INDEPENDENT CPA FIRM. CARE NEW ENGLAND HEALTH SYSTEM'S AUDIT COMMITTEE ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF THE SYSTEM'S CONSOLIDATED FINANCIAL STATEMENTS AND THE SELECTION OF AN INDEPENDENT AUDITOR. CORE FORM, PART XII; QUESTION 3 THE ORGANIZATION IS AN AFFILIATE WITHIN CARE NEW ENGLAND HEALTH SYSTEM AND AFFILIATES; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM ("SYSTEM"). THE SYSTEM ENGAGED AN INDEPENDENT ACCOUNTING FIRM TO PREPARE AND ISSUE A SYSTEM WIDE CONSOLIDATED AUDIT UNDER THE SINGLE AUDIT ACT AND OMB CIRCULAR A-133 AUDIT. MHRI ANCILLARY SERVICES LLC 111 BREWSTER STREET PAWTUCKET RI 02860 274415914 HEALTHCARE RI 0 0 TMH BUTLER HOSPITAL 345 BLACKSTONE BLVD PROVIDENCE RI 02906 050258812 HEALTHCARE RI 501(C)(3) HOSPITAL CNE false CARE NEW ENGLAND HEALTH SYSTEM 45 WILLARD AVENUE PROVIDENCE RI 02905 050490997 HEALTHCARE RI 501(C)(3) 509(A)(3) NA false WOMEN & INFANTS CORPORATION 300 RICHMOND STREET PROVIDENCE RI 02903 022885807 HEALTHCARE RI 501(C)(3) 509(A)(3) CNE false WOMEN & INFANTS HOSPITAL OF RHODE ISLAND 300 RICHMOND STREET PROVIDENCE RI 02903 050258937 HEALTHCARE RI 501(C)(3) HOSPITAL WIC false WOMEN & INFANTS DEVELOPMENT FOUNDATION 300 RICHMOND STREET PROVIDENCE RI 02903 222885815 HEALTHCARE RI 501(C)(3) 509(A)(3) WIC false WIH FACULTY PHYSICIANS INC 67 BRIGHAM STREET NEW BEDFORD MA 02740 043579432 HEALTHCARE MA 501(C)(3) 509(A)(2) WIH false KENT COUNTY MEMORIAL HOSPITAL 455 TOLL GATE ROAD WARWICK RI 02886 050258896 HEALTHCARE RI 501(C)(3) HOSPITAL CNE false KENT HOSPITAL FOUNDATION 455 TOLL GATE ROAD WARWICK RI 02886 050514640 SUPPORT ORG RI 501(C)(3) 509(A)(3) KCMH false KENT COUNTY VNA DBA VNA OF CNE 51 HEALTH LANE WARWICK RI 02886 050242659 HEALTHCARE RI 501(C)(3) 509(A)(1) CNE false HEALTHTOUCH INC 51 HEALTH LANE WARWICK RI 02886 050514949 HEALTHCARE RI 501(C)(3) 509(A)(2) KCVNA false BUTLER HOSPITAL FOUNDATION 345 BLACKSTONE BOULEVARD PROVIDENCE RI 02906 454530540 SUPPORT ORG RI 501(C)(3) 509(A)(3) BH false SOUTHEASTERN HEALTHCARE SYSTEM INC 111 BREWSTER STREET PAWTUCKET RI 02860 061476858 HEALTHCARE RI 501(C)(3) 509(A)(3) CNE false BLACKSTONE HEALTH INC 420 MAIN STREET PAWTUCKET RI 02860 050457007 HEALTHCARE RI 501(C)(3) 509(A)(1) KCVNA false SHS VENTURES INC 111 BREWSTER STREET PAWTUCKET RI 02860 050510341 HEALTHCARE RI 501(C)(3) 509(A)(2) TMH true VNA OF CARE NEW ENGLAND FOUNDATION 51 HEALTH LANE WARWICK RI 02886 462293974 SUPPORT ORG RI 501(C)(3) 509(A)(3) KCVNA false THE MEMORIAL HOSPITAL FOUNDATION 111 BREWSTER STREET PAWTUCKET RI 02860 463246618 HEALTHCARE RI 501(C)(3) 509(A)(3) TMH true GRANDVIEW REALTY CORPORATION 528 NORTH MAIN STREET PROVIDENCE RI 02904 050384362 TITLE HLDG. RI 501(C)(3) 509(A)(2) TPC false GRANDVIEW SECOND CORPORATION 528 NORTH MAIN STREET PROVIDENCE RI 02904 222812929 TITLE HLDG. RI 501(C)(3) 509(A)(2) TPC false NASHUA STREET CORPORATION 528 NORTH MAIN STREET PROVIDENCE RI 02904 050509674 TITLE HLDG. RI 501(C)(3) 509(A)(2) TPC false TPC SOCIAL VENTURES INC 528 NORTH MAIN STREET PROVIDENCE RI 02904 050441980 TRAINING RI 501(C)(3) 509(A)(2) TPC false WILSON STREET APARTMENTS 528 NORTH MAIN STREET PROVIDENCE RI 02904 050520857 TITLE HLDG. RI 501(C)(3) 509(A)(2) TPC false THE PROVIDENCE CENTER INC 528 NORTH MAIN STREET PROVIDENCE RI 02904 050316969 HEALTHCARE RI 501(C)(3) 509(A)(2) CNE false STANDARD REALTY INC 528 NORTH MAIN STREET PROVIDENCE RI 02904 222479719 INACTIVE RI 501(C)(3) 509(A)(2) TPC false TOLL GATE INDEMNITY LTD 23 LIME TREE BAY AVE PO BOX 1051 GRAND CAYMAN CJ KY1-11 342028514 FINANCIAL VEHICLE CJ NA C CORP. false W & I INDEMNITY LTD 23 LIME TREE BAY AVE PO BOX 1051 GRAND CAYMAN CJ KY1-11 980159342 FINANCIAL VEHICLE CJ NA C CORP. false BOULEVARD MEDICAL CONDO ASSOCIATION 111 BREWSTER STREET PAWTUCKET RI 02860 050497862 REAL ESTATE RI TMH C CORP. 0 0 1.00000 true CONTINUUM BEHAVIORAL HEALTH INC 528 NORTH MAIN STREET PROVIDENCE RI 02904 462853067 HEALTHCARE SVCS. RI NA C CORP. false false false false false false false false false false true true false true true true true false true true SCHEDULE R, PART V AS OUTLINED IN SCHEDULE O, CARE NEW ENGLAND HEALTH SYSTEM IS THE TAX-EXEMPT PARENT OF A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. THIS ORGANIZATION IS RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS AN INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. THE SYSTEM ALSO INCLUDES BUTLER HOSPITAL, KENT COUNTY MEMORIAL HOSPITAL AND WOMEN & INFANTS HOSPITAL OF RHODE ISLAND; WHICH ARE ALL RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT HOSPITALS. CARE NEW ENGLAND HEALTH SYSTEM ROUTINELY PAYS EXPENSES FOR ALL AFFILIATES WITHIN THE CARE NEW ENGLAND HEALTH SYSTEM IN THE ORDINARY COURSE OF BUSINESS. THESE RELATED PARTY TRANSACTIONS ARE RECORDED ON THE REVENUE/EXPENSE AND BALANCE SHEET STATEMENTS OF THIS ORGANIZATION AND ITS AFFILIATES. THESE ENTITIES WORK TOGETHER TO DELIVER HIGH QUALITY HEALTHCARE AND WELLNESS SERVICES TO THE COMMUNITIES IN WHICH THEY ARE SITUATED.