2018-05-14T14:07:27-05:00 2017-06-30 910189318 Moss Adams LLP 10960 Wilshire Blvd Suite 1100 Los Angeles CA 90024 990 2016-07-01 274658935 Martin Luther King Jr-Los Angeles Healthcare Corporation MART 4243388000 1680 E 120th Street Los Angeles CA 90059 Mitchell T Thomas CFO 4243388000 2018-05-14 1 Lauren Haverlock P00545829 3104770450 2018-05-09 12.129.7.100 2018-05-14 14:02:00 PD P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 5029E8FD9FE66385FA59B177B15FCADA276E8E0F 2016 2021-01-29 14:40:06Z Dr Elaine Batchlor 1680 E 120th Street Los Angeles CA 90059 260127450 0 X www.mlkcommunityhospital.org X 2010 CA The specific purpose of this corporation is to organize and operate a general acute care hospital to provide high quality hospital inpatient, outpatient, emergency, and additional health care services to meet the needs of the south Los Angeles community, which includes indigent, Medi-Cal, Medi-Cal Managed Care, and underserved populations (among others); and to contract with public and private entities providing managed care programs for Medi-Cal beneficiares in Los Angeles County, particularly South Los Angeles. 8 8 997 23 0 0 15849233 22937943 197291678 235474145 4793 437191 410580 1278171 213556284 260127450 316530 1837732 0 0 57007764 77110870 0 0 0 134186697 153714679 191510991 232663281 22045293 27464169 457621429 419679329 443520451 378098383 14100978 41580946 X To provide compassionate, collaborative, quality care and improve the health of our community. 0 0 219820076 1837732 235474145 Martin Luther King, Jr. Community Hospital (MLKCH) is a completely new facility replacing a prior County facility that was closed due to quality of care issues in 2007. MLKCH is a unique private-public partnership. As a private, non-profit freestanding 501(c)(3) corporation, MLKCH leases a completely new $280 Million hospital facility from the County of Los Angeles.MLKCH was licensed by the California Department of Public Health on April 28, 2015 and opened to patient care on May 14, 2015. After initial licensing, MLKCH passed through the following milestones as it became fully operational:- Accredited by the Joint Commission on June 30, 2015- Opened its Emergency Department on July 7, 2015- Began accepting rescue ambulances on August 11, 2015- Staged a phased opening of its inpatient facilities so that all inpatient beds were opened and staffed by December 2015The hospital credentialed over 200 physicians and hired over 1,000 employees and contractors to meet the expected volume of patients. MLKCH's service area is one of the poorest in metropolitan Los Angeles and suffers from a severe shortage of physicians. As a result, emergency department volume has consistently exceeded projections. MLKCH achieved the following milestones during the fiscal year ended June 30, 2017:- 7,540 acute inpatient admissions [an increase of 64% over FY 2016]- 30.772 acute inpatient days (Average daily census of 84.3) [an increase of 66% over FY 2016]- 77,248 emergency department visits [an increase of 78% over FY 2016]- 3,774 outpatient observation visitsMedical Staff coverage increased to meet the needs required by the steadily increasing patient volume. MLKCH provides 24-7 coverage by hospitalists, intensivists, laborists, emergency physicians, and many other hospital based physicians specialties. In addition to opening the facility, the hospital undertook a major, long range capital expansion project for its lower level. Over the next 5 years, a second CT Scanner, Endoscopy Suite, Fluoro Suite, Nuclear Medicine Hot Lab, and a Cardiac Cath Lab will be added to MLKCH's service portfolio. By the end of fiscal year 2017, the hospital's emergency department volume was running approximately 7,000 visits per month. MLKCH achieved above average patient satisfaction and quality scores. The hospital's Likely to Recommend" Press Ganey patient score continued to hover around the 80th percentile and considerably above-average for a safety net hospital of MLKCH's size and maturity (80%+ of patients gave us a rating of 9 or 10 on a scale of 1-10). In addition, a second employee engagement survey conducted in May 2017, indicate strong employee satisfaction at the 82nd percentile. To help address the serious physician shortage in its service area, MLKCH has initiated a hospital-sponsored medical group known as the Martin Luther King, Jr. Community Medical Group. This Group commenced operations in December 2016 at a nearby site in Compton, California and has a long range plan to recruit over 40 physicians over the next 5 years. MLKCH is a 'paperless' hospital with a state of the art electronic health record (E.H.R.). As evidence of this advanced technology, MLKCH achieved HIMSS Level 6 during the first year of operations. Only 26% of U.S. hospitals tracked by HIMSS have achieved level 6. 219820076 1 1 0 1 0 0 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 170 0 1 997 1 0 0 0 0 0 0 0 0 0 0 X 8 8 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 CA X Mitchell Thomas CFO 4243388000 1680 E 120th Street Los Angeles CA 90059 Manual A Abascal JD Board Chair 6.00 2.00 X X 0 0 0 Paul King Vice Chair of the Board 3.00 2.00 X X 0 0 0 Michael Madden Board Secretary 3.00 0.00 X X 0 0 0 James Yoshioka Board Treasurer 3.00 0.00 X X 0 0 0 Georgina R Garcia RN Board Member 3.00 0.00 X 0 0 0 Robert Margolis MD Board Member 3.00 2.00 X 0 0 0 Ian Morrison Board Member 3.00 0.00 X 0 0 0 Robert Tranquada MD Board Member 3.00 0.00 X 0 0 0 Dr Elaine Batchlor Chief Executive Officer 40.00 2.00 X 617016 0 7950 Mitchell T Thomas Chief Financial Officer 40.00 0.00 X 324950 0 32007 John Fisher Chief Medical Officer 40.00 3.00 X 414960 0 25150 Sajid Ahmed Chief Information and Innovation Officer 40.00 0.00 X 297174 0 25150 Susan Smith-Burrows VP Human Resources 40.00 0.00 X 276253 0 31359 Myrna Allen COO/CNO 40.00 0.00 X 349352 0 13341 Medell Briggs Malonson Chief Quality Improvement Officer 32.00 0.00 X 230740 0 24476 James Arric Director IT Applications 40.00 0.00 X 184872 0 14590 Kennetha Gaines Director Maternal Child Health 40.00 0.00 X 184424 0 42974 Lyrose Ortiz Clinical Supervisor 40.00 0.00 X 212623 0 25934 Sarah Stevens Director Critical Care & ER 40.00 0.00 X 205733 0 19467 Steve Keller Director Laboratory Services 40.00 0.00 X 189511 0 5915 3487608 0 268313 115 0 1 0 FASTSTAFF PO BOX 911452 DENVER CO 80291 Registry/Travelers Nursing 8552014 THE REGENTS OF THE UNIVERSITY OF CALIFOR 10833 LE CONTE RM 13-145G CHS LOS ANGELES CA 90095 Anesthesiologist 6518648 CARDINAL HEALTH PHARMACY SVC 7000 CARDINAL PL DUBLIN OH 43017 Pharmacist Services 6220229 CARETECH SOLUTIONS INC 901 Wilshire Dr Suite 100 Troy MI 48084 Information Technology 6181069 SUPERIOR HOSPITALIST MEDICAL GROUP 1001 GALAXY WAY SUITE 400 CONCORD CA 94520 Hospitalist/Intensivist 5071162 123 4152875 18785068 22937943 Net Patient Service Revenue 622110 118263792 118263792 Supplemental Funding 622110 115664321 115664321 Hospital Based Physician Billing 561000 1304252 1304252 Program Revenue from MLKCMG 561000 241780 241780 235474145 437191 437191 Cafeteria Revenue 722514 1224789 1224789 All Other Revenue 900099 53382 53382 1278171 260127450 235474145 0 1715362 X 1837732 1837732 2794911 2090276 704635 57546727 57195259 351468 1241963 1231931 10032 11232411 11073442 158969 4294858 4228671 66187 1696201 1560971 135230 240020 240020 80403877 76228577 4175300 35057 35057 422501 352439 70062 5511794 4083640 1428154 -1520457 -1111195 -409262 219660 174306 45354 17059981 15353983 1705998 19237793 17324870 1912923 1730542 1651676 78866 Medical Supplies 12074553 12043379 31174 Hospital Tax Fee 6534136 5888514 645622 Med. Software Licenses 2762537 2127561 634976 7306484 6448987 857497 232663281 219820076 12843205 0 8519940 10160959 183286 55974566 13182848 26641740 0 80903 1961466 2225478 7700007 8781908 326554190 39134841 301489229 287419349 221913 124362740 28394426 457621429 419679329 31346698 36176622 50000000 48214285 88800000 21799900 273373753 271907576 443520451 378098383 X 13983703 37557521 117275 4023425 14100978 41580946 457621429 419679329 27464169 15799 0 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 0 0 0 1 15222 15222 0 Part II-B, Line 1: The organization is a member of Hospital Association of Southern California; a portion of the dues paid to this organization are indicated as lobbying expenditures for healthcare related initiatives. 234231004 12994515 221236489 15186816 1528085 13658731 33901349 10627428 23273921 43235021 13984813 29250208 287419349 Due from MLKCHF 15194725 Due From MLKCMG 257512 Note Receivable from MLKCMG 100000 Estimated Third Party Settlements Receivable 8414704 Hospital Fee Program Receivable 4373736 Accrued Interest Receivable 416 Asset Fees 53333 28394426 Accrued Interest on County Lease 31656358 Capital Lease Obligations 239453809 Professional Liability Insurance 797409 271907576 X Part X, Line 2: THE HOSPITAL RECOGNIZES THE TAX BENEFIT FROM UNCERTAIN TAX POSITIONS ONLY IF IT IS MORE LIKELY THAN NOT THAT THE TAX POSITIONS WILL BE SUSTAINED ON EXAMINATION BY THE TAX AUTHORITIES, BASED ON THE TECHNICAL MERITS OF THE POSITION. THE TAX BENEFIT IS MEASURED BASED ON THE LARGEST BENEFIT THAT HAS A GREATER THAN 50% LIKELIHOOD OF BEING REALIZED UPON ULTIMATE SETTLEMENT. THERE WERE NO UNCERTAIN TAX POSITIONS AS OF JUNE 30, 2017 OR 2016. THE HOSPITAL IS SUBJECT TO INCOME TAX EXAMINATION BY TAXING AUTHORITIES FOR ALL YEARS SINCE INCEPTION FOR FEDERAL AND STATE TAX FILINGS. 1 1 X 1 X 300.000000000000 1 X 1 0 1 1 9169159 9169159 0.03940 9169159 9169159 0.03940 859325 859325 0.00370 27001946 17554388 9447558 0.04060 167274 167274 0.00070 28028545 17554388 10474157 0.04500 37197704 17554388 19643316 0.08440 19500 19500 0.00010 5000 5000 0.00000 24500 24500 0.00010 1 6503938 0 21049971 35001206 -13951235 X 1 1 1 1 Martin Luther King Jr Community Hospital 1680 E 120th Street Los Angeles CA 90059 www.mlkcommunityhospital.org 060000132 X X X Martin Luther King Jr Community Hospit 1 0 0 1 X X X X X X X X 16 1 0 1 1 X www.mlkcommunityhospital.org/Our-Community.aspx X 1 16 1 www.mlkcommunityhospital.org/Our-Community.aspx 0 1 X 300.000000000000 300.000000000000 1 1 X X X X 1 X X X X X 1 X 0 X X X X 1 X 0 0 Martin Luther King, Jr. Community Hospital Part V, Section B, Line 5: Input was obtained from community members and leaders who represent the broad interests of the MLKCH service area through key informant interviews. Interviewees included: public health experts; representatives of medically underserved, low-income, and minority populations; local healthcare providers; and local health and other department or agencies that have current data relevant to the health needs of the community served by MLKCH. During the interviews, participants were asked to identify major health issues in the community, and socioeconomic, behavioral, environmental or clinical factors contributing to poor health. Interviewees shared their perspectives on these issues, identified challenges and barriers to improving community health, and discussed potential resources to address these health needs. A total of 28 informant interviews were conducted for the needs assessment. Those interviewed include representatives from the following organizations: LA Care Health Plan, Los Angeles Sentinel, Martin Luther King, Jr. Community Hospital, Charles Drew University, St. John's Well Child and Family Center, Los Angeles County Emergency Medical Services Agency, Gonzaque Village Public Housing, George Washington Carver Elementary School, Los Angeles County Department of Public Health, Community Clinic Association of Los Angeles, Shields for Families/Welcome Baby, Kaiser Permanente, Martin Luther King Jr. Outpatient Center, USC Sol Price Center for Social Innovation, Bethel Missionary Baptist Church, Community Coalition of South Los Angeles, Black Women for Wellness, SCOPE/AGENDA, and the Watts Labor Community Action Committee. Martin Luther King, Jr. Community Hospital Part V, Section B, Line 6b: The CHNA includes a comprehensive quantitative and qualitative assessment of the critical factors that affect overall health and wellness in the community of MLK Community Hospital. These assessments were conducted by: (i) Premier, Inc., a nationally recognized healthcare consulting organization that specializes in advisory services and identifying community needs for underserved populations, and (ii) Biel Consulting, Inc., an independent consulting firm that works with hospitals, clinics, and community-based nonprofit organizations. Martin Luther King, Jr. Community Hospital Part V, Section B, Line 11: The Community Health Needs Assessment (CHNA) incorporated demographic and health data for the communities served by MLKCH. Significant health needs were identified using primary and secondary data collected from a variety of local, county, and state sources. In addition, interviews were conducted to gather input from individuals representing the broad interests of the community. Health indicators were considered significant needs when they exceeded benchmark data, specifically county or state rates or Healthy People 2020 objectives. Input from interviews helped MLKCH prioritize identified health needs. The following significant health needs were identified through the CHNA: (i) access to preventive, primary and specialty health care, (ii) maternal and infant health, (iii) management of chronic health conditions, and (iv) social determinants of health. MLKCH addresses all of these significant health needs in its 2017-2020 Implementation Strategy.Access to preventive, primary, and specialty care is a significant health need as community residents have inadequate access to a broad range of medical and dental services. With a goal of increasing access to preventive, primary, specialty, and dental health care for medically underserved populations, MLKCH has outlined a number of programs and strategies to address this significant health need. Such programs include: (i) providing residents with assistance to enroll in health insurance programs, (ii) helping residents connect with healthcare providers and establish medical homes, (iii) provide transportation assistance to connect patients to medical providers, (iv) develop facilities, staffing, and infrastructure to help physicians and dentists establish new practices in South Los Angeles, and (v) provide free and discounted healthcare services through the hospital's charity care policy. To help achieve these goals, MLKCH will partner with Health Advocates, the County of Los Angeles Department of Social Services, MLK Community Medical Group, MLKCH Know Your Basics (a program offering health screening and education in public gathering places such as farmers markets, shopping malls, barbershops and beauty parlors), local public and private transportation providers, and the County of Los Angeles.To address the health need of maternal and infant health, MLKCH has outlined a variety of programs and strategies to improve birth outcomes and infant health. These programs and strategies include: (i) expanding the availability of prenatal care, education, and resources for expectant mothers, (ii) increasing access to medical specialists in maternal and infant health, (iii) achieve Baby Friendly accreditation from the World Health Organization, (iv) provide home and community-based post-delivery support services for new mothers, and (v) increase the availability of family planning and contraceptive services. MLKCH will partner with organizations such as MLK Community Group, Planned Parenthood, various community health centers, Miller Children's and Women's Hospital, UNICEF/World Health Organization Baby Friendly Hospital Initiative, and Eisner Pediatric and Family Medical Center to achieve its intended impact of decreasing premature births and infant mortality, decreased low birth weight and premature births, and increasing the rate of breastfeeding among new mothers.Chronic disease management is a significant health need, as evidenced by the high prevalence of poorly managed chronic diseases resulting in bad health outcomes. MLKCH has outlined a number of programs and strategies to combat this health need, which includes: (i) providing screenings, education, and peer support, (ii) expanding access to medical specialists, (iii) creating comprehensive centers of excellence for treating patients with chronic diseases, and (iv) expanding data sharing with community providers to support better care coordination. To achieve its desired impact of reducing morbidity and mortality associated with these chronic diseases, MLKCH will partner with such organizations including MLK Community Medical Group, Partners in Care, and other community providers. Along with chronic disease management, the high prevalence of overweight and obesity is a health need MLKCH also intends to address. With the goal of empowering and encouraging residents to maintain healthier weights by eating healthy and engaging in physical activity, MLKCH has outlined the following strategies: (i) provide community education on the health impact of overweight and obesity, weight management, nutrition, and exercise, (ii) encourage youth to adopt health eating and exercise, (iii) support community efforts to introduce healthy, affordable food to the South Los Angeles community, (iv) promote the MLK Campus Farmers Market as a source of fresh produce in South Los Angeles, and (v) provide and model healthy food choices in the MLKCH Cafeteria.Social Determinants of Health is a significant health need, and MLKCH intends to address two of these determinants: care and service coordination for the homeless, and physical environment. To address care and service coordination for the homeless, MLKCH has outlined a number of programs and strategies, including: (i) help homeless individuals access housing, food, social services and support available through Measure H and other public initiatives, (ii) support and coordinate with a homeless outreach team on the MLKCH campus to engage and connect homeless individuals with supportive housing and healthcare providers, (iii) expand placement options for homeless patients, (iv) provide case management and support for newly housed homeless individuals, (v) provide clothing and toiletries for homeless patients, and (vi) advocate for the homeless to increase understanding of their needs and support policies and programs to protect them and increase access to permanent housing. To achieve its goals, MLKCH will partner with the Homeless Outreach Program Integrated Care System, Watts Labor Community Action Committee, Southern California Health and Rehabilitation Program, Coordinated Care System, Habitat for Humanity, a MLKCH homeless liaison, temporary housing and post-acute care providers, social workers, Los Angeles Homeless Services Authority, and locally elected officials. Additionally, MLKCH also intends to promote environmental safety in its community and increase safe areas for residents to live and exercise. To do so, MLKCH will support community efforts to create and maintain a safer environment. Part V, Section B, Lines 16a, 16b, 16c, and 16i: By the end of the 6/30/2017 fiscal year, the organization did not have its Financial Assistance Policy (FAP), FAP Application Form, or plain language summary of the FAP posted on its website. However, by the time of the filing of this Form 990, these documents have been posted. Additionally, these documents are currently being translated into primary languages spoken by LEP populations. Part I, Line 7: The cost accounting system used addresses all patient segments inpatient, observation, and ancillary services. The inpatient cost was calculated based on the per diem rate by facility location (i.e. ICU, nursery). The ancillary services were calculated based on a cost of care rate. Part I, Line 7g: Due to the demographics and payor mix of the hospital service area, combined with the severe physician shortage in the hospital's service area, MLKCH's Emergency Department operates at a significant loss; direct operating costs are much higher than revenue received from these services. As such, the entire Emergency Department is reflected as a subsidized health service. Part II, Community Building Activities: The organization provided grants to the Los Angeles Chamber of Commerce and the Community Coalition. The grant to the LA Chamber of Commerce assists in spurring economic development growth within MLKCH's service area, and the grant to the Community Coalition supports general activities within the community. Part III, Line 2: All Self-Pay accounts, including those written off to bad debt are discounted to the hospital's approximate cost using a cost-to-charge ratio of approximately 91% (i.e. approximate cost equals 9% of charges). Part III, Line 4: The organization's financial statements does not have a separate footnote which describes bad debt expense. However, page 10 of the organization's audited financial statements, which is attached to this return, includes a footnote related to allowance for doubtful accounts. Part III, Line 8: None of the shortfall listed on Part III, Line 7 should be treated as a community benefit. Part III, Line 9b: MLKCH's MANAGEMENT HAS DEVELOPED POLICIES AND PROCEDURES FOR INTERNAL AND EXTERNAL COLLECTION PRACTICES (INCLUDING ACTIONS THE HOSPITAL MAY TAKE IN THE EVENT OF NON-PAYMENT, INCLUDING COLLECTIONS ACTION AND REPORTING TO CREDIT AGENCIES) THAT TAKE INTO ACCOUNT THE EXTENT TO WHICH THE PATIENT QUALIFIES FOR CHARITY, A PATIENT'S GOOD FAITH EFFORT TO APPLY FOR AGOVERNMENTAL PROGRAM OR FOR CHARITY FROM MLKCH, AND A PATIENT'S GOOD FAITH EFFORT TO COMPLY WITH HIS OR HER PAYMENT AGREEMENTS WITH MLKCH. FOR PATIENTS WHO QUALIFY FOR CHARITY AND WHO ARE COOPERATING IN GOOD FAITH TO RESOLVE THEIR DISCOUNTED HOSPITAL BILLS, MLKCH MAY OFFER EXTENDED PAYMENT PLANS, WILL NOT SEND UNPAID BILLS TO OUTSIDE COLLECTION AGENCIES, AND WILL CEASE COLLECTION EFFORTS. MLKCH WILL NOT IMPOSE EXTRAORDINARY COLLECTIONS ACTIONS SUCH AS WAGE GARNISHMENTS, LIENS ON PRIMARY RESIDENCES, OR OTHER LEGAL ACTIONS FOR ANY PATIENT WITHOUT FIRST MAKING REASONABLE EFFORTS TO DETERMINE WHETHER THAT PATIENT IS ELIGIBLE FOR CHARITY CARE UNDER THIS FINANCIAL ASSISTANCE POLICY. REASONABLE EFFORTS WILL INCLUDE:1. VALIDATING THAT THE PATIENT OWES THE UNPAID BILLS AND THAT SOURCES OF THIRD-PARTY PAYMENT HAVE BEEN IDENTIFIED AND BILLED BY THE HOSPITAL;2. DOCUMENTATION THAT MLKCH HAS OR HAS ATTEMPTED TO OFFER THE PATIENT THE OPPORTUNITY TO APPLY FOR CHARITY CARE PURSUANT TO THIS POLICY AND THAT THE PATIENT HAS NOT COMPLIED WITH THE HOSPITAL'S APPLICATION REQUIREMENTS;3. DOCUMENTATION THAT THE PATIENT DOES NOT QUALIFY FOR FINANCIAL ASSISTANCE ON A PRESUMPTIVE BASIS;4. DOCUMENTATION THAT THE PATIENT HAS BEEN OFFERED A PAYMENT PLAN BUT HAS NOT HONORED THE TERMS OF THAT PLAN. Part VI, Line 2: The CHNA includes qualitative and quantitative market research, as well as using external data sources. In addition to the CHNA, the organization prepares an annual Community Benefit Report and Plan, which tracks annual progress on the health care needs of the commuity. In FY2017, MLKCH expanded efforts in its signature community benefit program, Know Your Basics--a health promotion effort that engages the community in places they feel comfortable, including shopping malls, hair salons, barber shops, farmers markets and churches. In partnership with nursing students from three local colleges, the Know Your Basics teams provides health screenings for glucose, blood pressure and BMI, health education, and resource referrals. For many community members, Know Your Basics was their first encounter with MLKCH. Through these initial healthcare conversations, we built trust and connections with our community, addressing health disparities through screenings and education. Including outreach in community health fairs, churches and schools, we reached more than 215,000 individuals with health education, 1,155 health screenings, and more than 10,000 with health resources referrals. Part VI, Line 3: Information regarding a patient's eligibility for assistance under federal, state, or local government prorgrams or under the organization's financial assistance policy is posted in the main patient waiting areas of the facility. Additionally, all patients are given written information upon admission that discusses availability of the programs and provides contact information. Patient Access Counselors are also available, and the Department of Public Services on site to assist the public. Part VI, Line 4: MLKCH's service area is defined as the geographic region consisting of Service Planning Area (SPA) 6, as well as those zip codes located within a three-mile radius from the hospital facility. The total population within the MLKCH service area is estimated to be 1,314,330. The majority of the service area residents live in Los Angeles (60.6%), with the remaining 39.4% living in Compton and surrounding communities.Within MLKCH's service area, 48.2% of the service area's population is male, and 51.8% is female. While the service area population is relatively younger compared to that of the County (30.6 years versus 35.3 years), 29.9% of the community is 45 years or greater. The age cohort 15 to 44 years represents 46.4% of the service area's overall populations. The population age cohort 0 to 14 years represents 23.7% of the total service area population.Overall, MLKCH's service area is primarily Hispanic/Latino (68.8%); 23.9% is African American; 2.9% of the residents are Asian; 2.7% are White; and Native Hawaiian/Pacific Islander, American Indian/Alaskan/Native, and other race or multiple race/ethnicity combined represent 1.7% of the service area population. Within the service area, nearly half of the community has identified Spanish as their primary language.Within the service area, the median and average household incomes are lower than that of Los Angeles County. Additionally, the MLKCH community has a higher rate of poverty when compared to Los Angeles and the state of California overall, with almost a third (30.3%) of the population at or below 100% of the federal poverty level (18.4% and 16.4% for Los Angeles County and California, respectively). Further, each of the cities that comprise MLKCH's service area have unemployment rates that exceed that for the County and state overall. A high proportion of the community qualifies for public assistance programs and income assistance when compared to Los Angeles and the state overall. These trends are directly related to the disproportionately higher unemployment and poverty rates, and lower household incomes in MLKCH's community. In regards to education, 42.2% of MLKCH's community residents age 25 years or older do not have a high school diploma, compared to 23.2% for Los Angeles County overall. Further, only 7.2% of area residents have earned a bachelor's degree.Within MLKCH's service area, only 40.3% of adults perceive their neighborhoods to be safe, the lowest perceived neighborhood safety of all Service Planning Areas in Los Angeles County (84.0% for Los Angeles County overall). Additionally, portions of the service area also have higher rates of property and violent crimes when compared to the County and State overall. High rates of property and violent crimes in a community compromise individuals' physical safety, and are detrimental to overall mental health, and deter residents from pursuing healthy behaviors (e.g. walking outdoors) from fear of harm. Part VI, Line 5: The employees and medical staff of Martin Luther King, Jr. Community Hospital provide community services focused on health and healing. These services range from providing health education at community events to designing and launching programs aimed to address key community needs, often in collaboration with other community partners and non-profit organizations. Additionally, the Hospital extends medical privileges to all qualified physicians in its community for some or all of its departments or specialties. 1 Martin Luther King Jr Community Health Foundation 1680 E 120th Street Los Angeles CA 90059 454433505 501(c)(3) 1834376 Forgiveness of "Due To" MLKHC Accumulated For Operations 1 Part I, Line 2: During the June 30, 2017 fiscal year, the organization relieved $1,834,376 of an intercompany payable Martin Luther King Jr. Community Health Foundation owed to the organization. This amount of debt forgiveness, which has been treated as a grant for purposes of this return, is based off accrued expenses in the books and records of both organizations. X X X X 0 0 0 0 0 0 0 1 0 Dr Elaine Batchlor Chief Executive Officer 440960 0 165016 0 11040 0 7950 0 0 0 624966 0 0 0 Mitchell T Thomas Chief Financial Officer 283668 0 40674 0 608 0 7950 0 24057 0 356957 0 0 0 John Fisher Chief Medical Officer 332731 0 75439 0 6790 0 7950 0 17200 0 440110 0 0 0 Sajid Ahmed Chief Information and Innovation Off 245149 0 45235 0 6790 0 7950 0 17200 0 322324 0 0 0 Susan Smith-Burrows VP Human Resources 229773 0 45690 0 790 0 7950 0 23409 0 307612 0 0 0 Myrna Allen COO/CNO 287897 0 60665 0 790 0 7950 0 5391 0 362693 0 0 0 Medell Briggs Malonson Chief Quality Improvement Officer 195264 0 34699 0 777 0 7270 0 17206 0 255216 0 0 0 James Arric Director IT Applications 180005 0 4200 0 667 0 5171 0 9419 0 199462 0 0 0 Kennetha Gaines Director Maternal Child Health 164086 0 19659 0 679 0 5870 0 37104 0 227398 0 0 0 Lyrose Ortiz Clinical Supervisor 206873 0 5750 0 0 0 6449 0 19485 0 238557 0 0 0 Sarah Stevens Director Critical Care & ER 184052 0 20959 0 722 0 6197 0 13270 0 225200 0 0 0 Steve Keller Director Laboratory Services 169212 0 19640 0 659 0 5915 0 0 0 195426 0 0 0 Part I, Line 7 Management is eligible to earn an annual incentive amount under the organization's performance program. The program includes achieving individual and organizational goals, some of which may be considered "non-fixed" payments. Form 990, Part VI, Section B, line 11b The Form 990 is prepared by an independent accounting firm in conjunction with the organization's finance and accounting team. After a final draft is reviewed and approved by the organization's management, the Form 990 is provided electronically to the Board for their review prior to filing with the Internal Revenue Service. Form 990, Part VI, Section B, line 12c Each director, officer, key employee, and member of a committee with governing board delegated powers annually signs a statement which affirms that each person: (i) has received a copy of the conflicts of interest policy, (ii) has read and understood the policy, (iii) has agreed to comply with the policy, and (iv) understands MLK is charitable and in order to maintain its federal tax exemption, it must engage in activities which accomplish one or more of its tax-exempt purposes. The policy calls for interested persons to disclose to the Board of Directors financial interests in any transactions where actual or possible conflicts of interests can occur. After disclosure of the finanical interest and all material facts, and after discussion with the interested person, he/she shall leave the Board of Directors meeting while the determination of a conflict of interest is discussed and voted upon. The process is then documented in the minutes of the Board of Directors meetings. Form 990, Part VI, Section B, line 15 Upon hiring of the current CEO, the Board engaged the services of a compensation consulting firm to assist them in determining appropriate compensation for such an individual. After consultation with the compensation consulting firm, which compiled salary surveys for similar industry organizations, the Board set the compensation for the CEO. Total compensation and benefits for the CEO has not significantly changed since this has last been performed. The Board also reviews the compensation fro the CFO, COO/CNO, and CI&IO with external compensation information. Form 990, Part VI, Section C, line 19 Financial Statements are available on a quarterly and annual basis through OSHPD, the California agency website. The governing documents are available via the California Secretary of State public website. The Conflict of interest policy is available on the hospital's website. Form 990, Part IX, line 11g Purchased Services: Program service expenses 31,292,327. Management and general expenses 2,633,166. Fundraising expenses 0. Total expenses 33,925,493. Professional Medical Fees: Program service expenses 30,590,072. Management and general expenses 0. Fundraising expenses 0. Total expenses 30,590,072. Temporary Nursing Labor: Program service expenses 13,325,033. Management and general expenses 0. Fundraising expenses 0. Total expenses 13,325,033. Consulting Fees: Program service expenses 938,719. Management and general expenses 1,382,531. Fundraising expenses 0. Total expenses 2,321,250. Other Fees for Services: Program service expenses 82,426. Management and general expenses 159,603. Fundraising expenses 0. Total expenses 242,029. Form 990, Part IX, Line 16: The Hospital is reflecting a negative expense of $1,520,457 in the "Occupancy" category on account of a reversal of utility expenses which were accrued in prior years. As a part of the Lease Agreement the Hospital has with the County of Los Angeles, utilities are provided by the County. The Lease specifically calls for the County to then periodically bill the Hospital for utility expenses based on actual meter readings for the Hospital. Upon executing the Lease and opening the Hospital, there was uncertainty around when the Hospital would begin obligations for these utility expenses and how the Lease terms surrounding utility expenses shuld be interpreted. As a result of this uncertainty, the Hospital initially began to accrue utility expneses in September 2014, when the property was first occupied in the pre-opening phase. During fiscal year 2017, the Hospital reached an agreement with the County on interpretation of the lease terms, determining that utility expense billing would commence on the same date that facility rent commenced (June 30, 2016). As a result, all utility expenses accrued from September 2014 through the fiscal year ended June 30, 2016 (approximately $3,398,000) were reversed in the fiscal year ended June 30, 2017, which resulted in a net credit in this expense category. MARTIN LUTHER KING JR COMMUNITY HEALTH FOUNDATION 1680 E 120th Street Los Angeles CA 90059 454433505 Charitable Foundation CA 501(c)(3) 7 MLKHC 1 Martin Luther King Jr Community Medical Group 1680 E 120th Street Los Angeles CA 90059 812455970 Medical Group CA 501(c)(3) 10 N/A 1 0 1 1 1 0 0 0 0 0 1 0 1 1 1 1 0 0 0 0 Martin Luther King Jr Community Health Foundation B 1834376 Book Value Martin Luther King Jr Community Health Foundation C 4152875 Book Value Martin Luther King Jr Community Health Foundation O 736723 Book Value MLK Community Medical Group D 100000 Book Value MLK Community Medical Group J 128790 Book Value MLK Community Medical Group L 112990 Book Value MLK Community Medical Group M 329629 BOok Value