2018-01-31T13:51:42-06:00 2016-12-31 861065772 DELOITTE TAX LLP 1111 BAGBY STREET SUITE 4500 HOUSTON TX 77002 990 2016-01-01 571201170 TMH PHYSICIAN ORGANIZATION TMHP 8326676160 6565 FANNIN NO GB-240 HOUSTON TX 770302707 EDWARD L TYRRELL TREASURER 8326676160 2018-01-31 1 JEFFREY D FRANK P00287234 7139822000 167.219.0.227 2018-01-31 09:56:52 ES P 9B3775B0D3F47442ACEE18C1745B84219288F1E3 960A77A05D82BB8D035EB8630C7CDE3F96DBFA22 2016 2021-01-29 14:40:06Z HOUSTON METHODIST SPECIALTY PHYSICIAN GROUP ROBERT A PHILLIPS MDPHD 6565 FANNIN NO GB-240 HOUSTON TX 770302707 483360635 0 5792 X WWW.HOUSTONMETHODIST.ORG X 2004 TX SEE SCHEDULE O 19 0 2754 0 0 0 526292 957439 413214353 482403196 0 0 0 0 413740645 483360635 10000 10000 0 0 331270603 385297011 0 0 0 81728688 97733171 413009291 483040182 731354 320453 49240712 65593278 64215093 80247206 -14974381 -14653928 X SEE SCHEDULE O 0 0 474595591 10000 482403196 SEE SCHEDULE O 474595591 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 1 1 0 0 0 0 0 1 1 0 0 0 1 0 0 2754 1 0 0 0 0 0 0 0 0 0 0 0 X 19 0 0 0 0 0 1 1 1 1 1 0 0 0 1 1 1 1 1 0 0 0 X EDWARD L TYRRELL FACHE 8326676160 6565 FANNIN GB-240 HOUSTON TX 770302707 ROBERT A PHILLIPS MD PHD DIRECTOR, CHAIR,EVP/CMO/PRES & CEO 1.00 49.00 X X 0 1269581 43269 ALAN B LUMSDEN MD DIRECTOR 50.00 0.00 X 908141 0 68996 ANDREW G LEE MD DIRECTOR 50.00 0.00 X 494572 0 50545 BARBARA L BASS MD DIRECTOR 50.00 0.00 X 1569564 0 62925 C RICHARD STASNEY MD DIRECTOR 2.00 2.00 X 0 91351 0 E BRIAN BUTLER MD DIRECTOR 50.00 0.00 X 1171796 0 71688 GAVIN S BRITZ MD DIRECTOR 50.00 0.00 X 1332165 0 57817 JAIME GATENO DDS MD DIRECTOR 50.00 0.00 X 422039 0 77754 JAMES M MUSSER MD PHD DIRECTOR 50.00 0.00 X 864196 0 82034 JENNY CHANG MD DIRECTOR 50.00 0.00 X 710121 0 37506 JOSEPH J NAPLES MD DIRECTOR 50.00 0.00 X 541047 0 30046 KEVIN E VARNER MD DIRECTOR 50.00 0.00 X 1280804 0 79434 MIGUEL A QUINONES MD DIRECTOR, PART YEAR 40.00 0.00 X 462270 0 50896 REGINALD MUNDEN MD DIRECTOR, PART YEAR 35.00 0.00 X 513426 0 11024 JETT BRADY MD EFF OCT DIRECTOR 2.00 0.00 X 0 3500 0 RICHARD J ROBBINS MD DIRECTOR 50.00 0.00 X 881094 0 50546 STANLEY H APPEL MD DIRECTOR 50.00 0.00 X 729852 0 48550 STUART M DOBBS MD DIRECTOR 50.00 0.00 X 401693 0 36878 TIMOTHY B BOONE MD PHD DIRECTOR 49.00 1.00 X 1017095 0 58678 TRISTI MUIR MD DIRECTOR 50.00 0.00 X 494021 0 58949 WILLIAM ZOGHBI MD DIRECTOR 50.00 0.00 X 638094 0 33076 ROBERTA L SCHWARTZ PHD VICE PRESIDENT 1.00 49.00 X 0 1165310 54389 EDWARD L TYRRELL TREASURER 1.00 49.00 X 0 633599 49628 JEFF CARR VP OF FINANCE 49.00 1.00 X 303250 0 42030 KEVIN J BURNS SECRETARY 1.00 49.00 X 0 1202230 60827 KEITH BARBER VICE PRESIDENT 1.00 49.00 X 0 534888 56003 CHRIS SIEBENALER VICE PRESIDENT 1.00 49.00 X 0 886797 58123 DANIEL B NEWMAN VICE PRESIDENT 1.00 49.00 X 0 354747 54955 DAVID W CAMPBELL IV VP, CORPORATE OPERATIONS & BUSINESS DEV. 49.00 1.00 X 314650 0 43247 DAVID P BERNARD VICE PRESIDENT 1.00 49.00 X 0 504415 55331 DEBRA F SUKIN PHD VICE PRESIDENT 1.00 49.00 X 0 827136 62832 STEPHEN E SPIELMAN CHIEF OPERATING OFFICER 49.00 1.00 X 480810 0 44632 WAYNE M VOSS VICE PRESIDENT 1.00 49.00 X 0 698134 56064 WARREN ELLSWORTH MD PHYSICIAN 50.00 0.00 X 2433426 0 38185 ALDONA SPIEGEL MD PHYSICIAN 50.00 0.00 X 2321810 0 63446 VINCENT C PHAN MD PHYSICIAN 50.00 0.00 X 1725847 0 58618 BHADRESH SHAH MD PHYSICIAN 50.00 0.00 X 1440048 0 57118 BIN S TEH MD PHYSICIAN 50.00 0.00 X 1377528 0 57580 MARC L BOOM MD OFFICER, FORMER 0.00 50.00 X 0 2746487 47936 RAMON M CANTU SECRETARY, FORMER 0.00 50.00 X 0 1389757 79208 24829359 12307932 2050763 721 1 1 0 ATHENAHEALTH INC PO BOX 415615 BOSTON MA 02241 BILLING AND COLLECTION 6567293 SMITH AND DEAN INC 11511 KATY FRWY SUITE 430 HOUSTON TX 77079 HEALTH CARE STAFFING SERVICES 4506093 PST SERVICES INC PO BOX 742526 ATLANTA GA 30374 BILLING SERVICES 2600756 BONE AND JOINT CLINIC 6624 FANNIN SUITE 2600 HOUSTON TX 77030 NON-EMPLOYEE PHYSICIAN 884448 THE TREVINO GROUP 11410 BRITTMOORE PARK DR HOUSTON TX 77041 CONSTRUCTION 817381 26 957439 957439 PROFESSIONAL FEES 900099 281626309 281626309 I/C HOSPITAL ASSOC REV 900099 186735511 186735511 14041376 14041376 482403196 483360635 482403196 0 0 10000 10000 26201551 26201551 298912657 294579068 4333589 14827599 14621397 206202 30474372 30055796 418576 14880832 14681638 199194 1240983 1240983 23380861 22528726 852135 843631 750475 93156 9986854 9582050 404804 63679 60124 3555 19462371 19219063 243308 2833030 2749528 83502 967105 910292 56813 6671489 6474513 196976 8882483 8882483 MEDICAL SUPPLIES 19632081 19575863 56218 INTERCOMPANY EXPENSES 3290880 3256375 34505 RESEARCH FUNDING & RESE 431304 410804 20500 OTHER 46420 45845 575 483040182 474595591 8444591 0 1686796 948393 22676573 26261054 540885 0 69037661 31640070 22897898 37397591 1438560 986240 49240712 65593278 46100360 52324415 18114733 27922791 64215093 80247206 X -14974381 -14653928 -14974381 -14653928 49240712 65593278 320453 0 X 0 1 X 1 0 X X 1 THE METHODIST HOSPITAL 741180155 3 1 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 PART IV, SECTION C. TYPE II SUPPORT ORGANIZATIONS HOUSTON METHODIST HOSPITAL (HMH) IS THE SOLE CORPORATE MEMBER OF THE HEALTHCARE GROUP (THG) WHICH IS THE SOLE COPORATE MEMBER OF TMH PHYSICIAN ORGANIZATION, DOING BUSINESS AS HM SPECIALTY PHYSICIAN GROUP (HMSPG). THEREFORE, HMH HAS THE AUTHORITY TO APPOINT AND REMOVE ALL BOARD MEMBERS OF THG AND ULTIMATELY CONTROL HMSPG. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 17381003 4826408 12554595 2384380 115882 2268498 49272278 26697780 22574498 37397591 DUE TO RELATED ORGANIZATION 27922791 27922791 X PART X, LINE 2: THE FINANCIAL STATEMENTS OF TMH PHYSICIAN ORGANIZATION, DOING BUSINESS AS HOUSTON METHODIST SPECIALTY PHYSICIAN GROUP (HM SPECIALTY PHYSICIAN GROUP), ARE INCLUDED IN THE CONSOLIDATED FINANICAL STATEMENTS OF THE METHODIST HOSPITAL, DOING BUSINESS AS HOUSTON METHODIST (HM), WHICH ARE AUDITED BY AN INDEPENDENT PUBLIC ACCOUNTANT. HM DID NOT RECOGNIZE ANY ADJUSTMENTS RELATED TO UNCERTAIN TAX POSITIONS AS OF DECEMBER 31, 2016. 1 HOUSTON AREA PARKINSON SOCIETY 2700 SOUTHWEST FWY STE 296 HOUSTON TX 77098 510138356 501 (C)(3) 10000 0 MEDICAL RESEARCH 1 0 PART I, LINE 2: PRIOR TO HM SPECIALTY PHYSICIAN GROUP'S APPROVAL OF A GRANT TO A REQUESTING ORGANIZATION, THE FOLLOWING CRITERIA MUST BE MET: - THE REQUESTING ORGANIZATION MUST BE AN ORGANIZATION EXEMPT FROM FEDERAL INCOME TAX UNDER SECTION 501 (C) (3) OF THE INTERNAL REVENUE CODE. - THE REQUESTING ORGANIZATION MUST PROVIDE A RECOGNIZABLE OR DEMONSTRABLE BENEFIT TO THE COMMUNITY. - THE MISSION OF THE REQUESTING ORGANIZATION MUST AUGMENT THE MISSION OF HM SPECIALTY PHYSICIAN GROUP. - THE REQUESTING ORGANIZATION'S MISSION AND SERVICES SHOULD NOT DUPLICATE AND MUST NOT CONFLICT WITH HM SPECIALTY PHYSICIAN GROUP. BY FOLLOWING THE ABOVE CRITERIA, THE ORGANIZATION ENSURES ALL GRANTS ARE USED BY RECEIVING ORGANIZATIONS FOR THEIR EXEMPT PURPOSE. 0 1 0 0 0 0 0 1 0 ROBERT A PHILLIPS MD PHD DIRECTOR, CHAIR,EVP/CMO/PRES & CEO 0 748628 0 360915 0 160038 0 26000 0 17269 0 1312850 0 0 ALAN B LUMSDEN MD DIRECTOR 785784 0 106913 0 15444 0 21400 0 47596 0 977137 0 0 0 ANDREW G LEE MD DIRECTOR 437661 0 52702 0 4209 0 21400 0 29145 0 545117 0 0 0 BARBARA L BASS MD DIRECTOR 1335151 0 165000 0 69413 0 23700 0 39225 0 1632489 0 0 0 E BRIAN BUTLER MD DIRECTOR 397516 0 762005 0 12275 0 21400 0 50288 0 1243484 0 0 0 GAVIN S BRITZ MD DIRECTOR 1025640 0 301143 0 5382 0 21400 0 36417 0 1389982 0 0 0 JAIME GATENO DDS MD DIRECTOR 417070 0 0 0 4969 0 23700 0 54054 0 499793 0 0 0 JAMES M MUSSER MD PHD DIRECTOR 702356 0 122938 0 38902 0 26000 0 56034 0 946230 0 0 0 JENNY CHANG MD DIRECTOR 614026 0 90713 0 5382 0 21400 0 16106 0 747627 0 0 0 JOSEPH J NAPLES MD DIRECTOR 447596 0 50167 0 43284 0 23700 0 6346 0 571093 0 0 0 KEVIN E VARNER MD DIRECTOR 1043899 0 231273 0 5632 0 26000 0 53434 0 1360238 0 0 0 MIGUEL A QUINONES MD DIRECTOR, PART YEAR 446392 0 0 0 15878 0 26000 0 24896 0 513166 0 0 0 REGINALD MUNDEN MD DIRECTOR, PART YEAR 418469 0 84064 0 10893 0 5300 0 5724 0 524450 0 0 0 RICHARD J ROBBINS MD DIRECTOR 762054 0 58500 0 60540 0 23700 0 26846 0 931640 0 0 0 STANLEY H APPEL MD DIRECTOR 683644 0 7500 0 38708 0 26000 0 22550 0 778402 0 0 0 STUART M DOBBS MD DIRECTOR 344548 0 40000 0 17145 0 21400 0 15478 0 438571 0 0 0 TIMOTHY B BOONE MD PHD DIRECTOR 889289 0 112362 0 15444 0 21400 0 37278 0 1075773 0 0 0 TRISTI MUIR MD DIRECTOR 489329 0 0 0 4692 0 21400 0 37549 0 552970 0 0 0 WILLIAM ZOGHBI MD DIRECTOR 622344 0 0 0 15750 0 26000 0 7076 0 671170 0 0 0 ROBERTA L SCHWARTZ PHD VICE PRESIDENT 0 673555 0 327352 0 164403 0 26000 0 28389 0 1219699 0 0 EDWARD L TYRRELL TREASURER 0 386727 0 168416 0 78456 0 26000 0 23628 0 683227 0 0 JEFF CARR VP OF FINANCE 209896 0 79997 0 13357 0 21622 0 20408 0 345280 0 0 0 KEVIN J BURNS SECRETARY 0 694412 0 341595 0 166223 0 26000 0 34827 0 1263057 0 0 KEITH BARBER VICE PRESIDENT 0 370772 0 109242 0 54874 0 21400 0 34603 0 590891 0 0 CHRIS SIEBENALER VICE PRESIDENT 0 562162 0 222818 0 101817 0 23700 0 34423 0 944920 0 0 DANIEL B NEWMAN VICE PRESIDENT 0 279885 0 62477 0 12385 0 23700 0 31255 0 409702 0 0 DAVID W CAMPBELL IV VP, CORPORATE OPERATIONS & BUSINESS 229351 0 69671 0 15628 0 20836 0 22411 0 357897 0 0 0 DAVID P BERNARD VICE PRESIDENT 0 345132 0 118725 0 40558 0 23700 0 31631 0 559746 0 0 DEBRA F SUKIN PHD VICE PRESIDENT 0 521689 0 202299 0 103148 0 23700 0 39132 0 889968 0 0 STEPHEN E SPIELMAN CHIEF OPERATING OFFICER 331364 0 126201 0 23245 0 23700 0 20932 0 525442 0 0 0 WAYNE M VOSS VICE PRESIDENT 0 431687 0 173654 0 92793 0 21400 0 34664 0 754198 0 0 WARREN ELLSWORTH MD PHYSICIAN 527129 0 1904461 0 1836 0 21400 0 16785 0 2471611 0 0 0 ALDONA SPIEGEL MD PHYSICIAN 1231551 0 1086749 0 3510 0 23700 0 39746 0 2385256 0 0 0 VINCENT C PHAN MD PHYSICIAN 989349 0 731116 0 5382 0 21400 0 37218 0 1784465 0 0 0 BHADRESH SHAH MD PHYSICIAN 666889 0 767777 0 5382 0 21400 0 35718 0 1497166 0 0 0 BIN S TEH MD PHYSICIAN 349840 0 1024093 0 3595 0 21400 0 36180 0 1435108 0 0 0 MARC L BOOM MD OFFICER, FORMER 0 1373060 0 1005385 0 368042 0 26000 0 21936 0 2794423 0 0 RAMON M CANTU SECRETARY, FORMER 0 810815 0 387856 0 191086 0 26000 0 53208 0 1468965 0 0 PART I, LINE 3 THE CEO OF THIS ORGANIZATION IS EMPLOYED BY A RELATED ORGANIZATION WHO UTILIZED THE FOLLOWING ITEMS TO ESTABLISH COMPENSATION: (1) COMPENSATION COMMITTEE; (2) INDEPENDENT COMPENSATION CONSULTANT; (3) COMPENSATION SURVEY OR STUDY; (4) APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE. PART I, LINE 4A HOUSTON METHODIST (HM) HAS A FORMAL SEVERANCE PLAN. ELIGIBLE EMPLOYEES INCLUDE ALL FULL-TIME AND PART-TIME (NOT TEMPORARY OR PRN) STAFF INCLUDING HOURLY STAFF UP THROUGH SENIOR VICE PRESIDENTS PROVIDED THEY WORK AT LEAST 20 HOURS PER WEEK AND ARE NOT OTHERWISE COVERED BY A PHYSICIAN EMPLOYMENT AGREEMENT. THE PLAN ONLY PROVIDES SALARY AND BENEFITS IN THE EVENT AN ELIGIBLE EMPLOYEE IS INVOLUNTARILY TERMINATED DUE TO THE ELIMINATION OF THEIR POSITION OR IF THEIR CURRENT POSITION IS SIGNIFICANTLY IMPACTED BY AN ORGANIZATIONAL RESTRUCTURING OR CHANGE IN REQUIREMENT AND A COMPARABLE POSITION IS NOT AVAILABLE WITHIN THE ORGANIZATION. THE ELIGIBLE PERSON MUST ALSO SIGN A TERMINATION AGREEMENT IN ORDER TO RECEIVE SALARY CONTINUATION AND BENEFITS UNDER THE PLAN TO WHICH THEY WOULD NOT NORMALLY BE ELIGIBLE TO RECEIVE UNDER A VOLUNTARY RESIGNATION. DURING 2016, NO ONE RECEIVED A SEVERANCE PAYMENT FROM THIS PLAN. PART I, LINE 4B THE SUPPLEMENTAL PHYSICIAN RETIREMENT PLAN IS A NON-QUALIFIED EMPLOYER FUNDED PLAN. FUNDING IS BASED UPON A PREDETERMINED PERCENTAGE OF BASE SALARY PAID. CONTRIBUTIONS ARE MADE BIWEEKLY INTO A TAX DEFERRED ACCOUNT AND ARE CONSIDERED TAXABLE UPON VESTING (I.E. COMPLETION OF THREE YEARS OF VESTING SERVICE). ONCE VESTED, EACH YEAR'S SUBSEQUENT CONTRIBUTION IS TAXABLE WITHIN THE CALENDAR YEAR IN WHICH THE DEPOSIT WAS MADE. ACCOUNT BALANCES CANNOT BE ACCESSED UNTIL RETIREMENT OR TERMINATION (WHICHEVER OCCURS FIRST) AND MAY BE SUBJECT TO NON-REVOCABLE DISTRIBUTION OPTIONS SELECTED UPON ELECTION. THE SUPPLEMENTAL EMPLOYEE RETIREMENT PLAN IS A NON-QUALIFIED EMPLOYER FUNDED PLAN. CONTRIBUTIONS ARE MADE ANNUALLY INTO A TAX DEFERRED ACCOUNT AND ARE CONSIDERED TAXABLE UPON VESTING (I.E. COMPLETION OF THREE YEARS OF VESTING SERVICE). ONCE VESTED, EACH YEAR'S SUBSEQUENT CONTRIBUTION IS TAXABLE WITHIN THE CALENDAR YEAR IN WHICH THE DEPOSIT WAS MADE. ACCOUNT BALANCES CANNOT BE ACCESS UNTIL RETIREMENT OR TERMINATION (WHICHEVER OCCURS FIRST) AND MAY BE SUBJECT TO NON-REVOCABLE DISTRIBUTION OPTIONS SELECTED UPON ELECTION. PART I, LINE 7 THIS ORGANIZATION PROVIDES VARIABLE COMPENSATION OPPORTUNITY THROUGH AN ANNUAL MANAGEMENT INCENTIVE PLAN. EXECUTIVES AT THE VICE PRESIDENT LEVEL AND ABOVE MAY BE ELIGIBLE TO PARTICIPATE. THE ANNUAL INCENTIVE PROGRAM IS BASED ON SYSTEM AND OPERATING ENTITY LEVEL PERFORMANCE IN THE AREAS OF QUALITY IMPROVEMENT OUTCOMES, PATIENT SATISFACTION AND FINANCIAL PERFORMANCE. IN ADDITION, A PORTION OF THE PAYOUT PERCENTAGE IS BASED ON GOALS THAT ARE SPECIFIC TO THE PARTICIPANTS' MANAGEMENT ROLES AT THE DIVISION OR DEPARTMENT LEVEL INCLUDING BUT NOT LIMITED TO SUCH METRICS AS OPERATING RESULTS, QUALITY AND SAFETY IMPROVEMENTS, CUSTOMER SATISFACTION MEASURES, GROWTH AND INNOVATION INITIATIVES. DETERMINATION OF A PARTICIPANT'S PERCENTAGE OF THE POTENTIAL BONUS PAYOUT (PAID AS A PERCENT OF BASE SALARY) IS BASED ON WHETHER THE INDIVIDUAL ATTAINS AGREED UPON GOALS FOR THEIR AREA OF RESPONSIBILITY AS DETERMINED BY THEIR IMMEDIATE SUPERVISOR. JULIA ANDRIENI MD FAMILY MEMBER - OF ROBERT PHILLIPS, EVP/CMO AND PRES & CEO 530058 EMPLOYMENT 0 JOAN APPEL FAMILY MEMBER - OF STANLEY M. APPEL, MD, BOARD DIRECTOR 120891 EMPLOYMENT 0 HILARY BEAVER MD FAMIY MEMBER - OF ANDREW G LEE, MD, BOARD DIRECTOR 243313 EMPLOYMENT 0 HOUSTON RADIOLOGY ASSOCIATED JETT BRADY, MD - BOARD DIRECTOR 1643215 HOUSTON RADIOLOGY ASSOCIATED PROVIDED RADIOLOGY SERVICES AND SUPPORTED THE CLINICAL OVERSIGHT RESPONSIBILITIES OF THE DEPARTMENT CHAIRMAN. 0 FORM 990, PART I AND PART III, LINE 1 THIS ORGANIZATION IS PART OF THE METHODIST HOSPITAL, DOING BUSINESS AS HOUSTON METHODIST HOSPITAL, WHOSE MISSION IS: TO PROVIDE HIGH QUALITY, COST-EFFECTIVE HEALTH CARE THAT DELIVERS THE BEST VALUE TO THE PEOPLE WE SERVE IN A SPIRITUAL ENVIRONMENT OF CARING IN ASSOCIATION WITH INTERNATIONALLY RECOGNIZED TEACHING AND RESEARCH. FORM 990, PART III, LINE 4A THE TMH PHYSICIAN ORGANIZATION, DOING BUSINESS AS HM SPECIALTY PHYSICIAN GROUP (HMSPG) WAS ORGANIZED TO ENGAGE IN ACTIVITIES TO FURTHER ONE OR MORE OF THE FOLLOWING SPECIFIC PURPOSES: (I) THE CARRYING OUT OF SCIENTIFIC RESEARCH AND RESEARCH PROJECTS IN THE PUBLIC INTEREST IN THE FIELDS OF MEDICAL SCIENCES, MEDICAL ECONOMICS, PUBLIC HEALTH, SOCIOLOGY, AND RELATED AREAS; (II) THE SUPPORTING OF MEDICAL EDUCATION IN MEDICAL SCHOOLS THROUGH GRANTS AND SCHOLARSHIPS, (III) THE IMPROVING AND DEVELOPING OF ABILITIES OF INDIVIDUALS AND INSTITUTIONS STUDYING, TEACHING, AND PRACTICING MEDICINE; (IV) THE ENGAGING IN THE INSTRUCTION OF THE GENERAL PUBLIC IN THE AREA OF MEDICAL SCIENCE, PUBLIC HEALTH AND HYGIENE AND RELATED INSTRUCTION USEFUL TO THE INDIVIDUAL AND BENEFICIAL TO THE COMMUNITY; AND (V) THE DELIVERY OF VARIOUS MODALITIES OF HEALTH CARE TO THE PUBLIC. IN 2016, HM SPECIALTY PHYSICIAN GROUP PURSUED THE ABOVE SPECIFIC PURPOSES LARGELY THROUGH THE EMPLOYMENT OF PHYSICIANS THAT WERE ORGANIZED IN THE DEPARTMENTS ACCORDING TO THE SPECIALTIES. IN 2016, HM SPECIALTY PHYSICIAN GROUP PROVIDED SERVICES TO OVER 1.1 MILLION PATIENT ENCOUNTERS (EXCLUDING ANESTHESIA, RADIOLOGY / MASTOS AND PATHOLOGY SERVICES). AS OF DECEMBER 31, 2016, HMSPG EMPLOYED 516 PHYSICIANS AND 1,534 STAFF FTE'S. EDUCATIONAL OPPORTUNITIES WERE PROVIDED TO 260 HMSPG RESIDENTS AND FELLOWS FROM VARIOUS ACGME APPROVED PROGRAMS. FORM 990, PART VI, SECTION A, LINE 6 TMH HEALTH CARE GROUP IS THE SOLE CORPORATE MEMBER OF THIS ORGANIZATION. HOUSTON METHODIST HOSPITAL IS THE SOLE MEMBER OF TMH HEALTH CARE GROUP. FORM 990, PART VI, SECTION A, LINE 7A THE SOLE CORPORATE MEMBER OF THE ORGANIZATION, TMH HEALTH CARE GROUP, APPOINTS THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7B THE SOLE CORPORATE MEMBER OF THE ORGANIZATION (TMH HEALTH CARE GROUP) RESERVES THE FOLLOWING POWERS: -TO APPOINT AND REMOVE WITH OR WITHOUT CAUSE THE DIRECTORS OF THE ORGANIZATION; -TO APPROVE THE INCURRENCE BY THE ORGANIZATION OF ANY INDEBTEDNESS AND ALL GUARANTEES OF THE DEBT OF ANOTHER PARTY; -TO APPROVE THE ANNUAL OPERATING AND CAPITAL BUDGETS OF THE ORGANIZATION AFTER THEY ARE PREPARED AND APPROVED BY THE ORGANIZATION'S BOARD OF DIRECTORS; -TO APPROVE THE DISSOLUTION OF THE ORGANIZATION; -TO APPROVE THE ORGANIZATION'S PARTICIPATION IN PARTNERSHIPS AND JOINT VENTURES; -TO APPROVE THE ACQUISITION OR DISPOSITION BY THE ORGANIZATION OF REAL PROPERTY FROM OR TO A NON-CORPORATION CONTROLLED ORGANIZATION THROUGH OWNERSHIP, LEASE OR OTHERWISE; -TO APPROVE THE DISPOSITION OR ACQUISITION BY THE ORGANIZATION OF, OR THE INVESTMENT BY THE ORGANIZATION IN, ANOTHER BUSINESS OR ALL OR A PORTION OF THE BUSINESS OR OPERATIONS OF ANOTHER BUSINESS; -TO ESTABLISH, ACQUIRE OR INVEST IN ANY NEW OR DIFFERENT BUSINESS; AND -TO DIRECT THE ORGANIZATION IN ITS ACTIONS AS THE CORPORATE MEMBER OR SHAREHOLDER OF OTHER ENTITIES, INCLUDING BUT NOT LIMITED TO, APPROVING AMENDMENTS TO THE ARTICLES OF INCORPORATION AND BYLAWS OF SUCH OTHER ORGANIZATIONS. FORM 990, PART VI, SECTION B, LINE 11B MANAGEMENT, INCLUDING CERTAIN OFFICERS, WORKS DILIGENTLY TO COMPLETE THE FORM 990 AND ATTACHED SCHEDULES (RETURN) IN A THOROUGH MANNER. THE RETURN IS PREPARED BY A PAID PREPARER. FORM 990, PART VI, SECTION B, LINE 12C INDIVIDUALS SERVING IN A SIGNIFICANT DECISION MAKING CAPACITY COMPLETE A CONFLICT OF INTEREST (COI) QUESTIONNAIRE ANNUALLY. A COMPREHENSIVE EVALUATION AND THOROUGH REVIEW OF DISCLOSURES IS PERFORMED BY A 6-MEMBER COI COMMITTEE COMPRISED OF EXECUTIVES, MANAGEMENT, AND STAFF. THE RESULTS OF THE COI DISCLOSURES ARE SUMMARIZED AND REPORTED TO THE PARENT CORPORATION, HOUSTON METHODIST HOSPITAL'S BOARD AUDIT & COMPLIANCE COMMITTEE, INCLUDING CERTAIN ACTIONS BEING TAKEN TO PROTECT THE INTEGRITY OF HOUSTON METHODIST DECISION-MAKING. IN ADDITION, CERTAIN DISCLOSURE RESULTS ARE ALSO COMMUNICATED TO MANAGEMENT AND TO AFFECTED COMMITTEE CHAIRS TO PROMOTE TRANSPARENCY, PROTECT DECISION-MAKING INTEGRITY, AND TO ENSURE RESTRICTIONS ARE IMPOSED WHERE APPROPRIATE. CONFLICTED INDIVIDUALS MAY NOT VOTE OR EXERT SELF-SERVING INFLUENCE ON THE DISCLOSED MATTER. FORM 990, PART VI, SECTION B, LINES 15A & 15B: THE CEO OF THIS ORGANIZATION IS EMPLOYED AND COMPENSATED BY HOUSTON METHODIST HOSPITAL, THE SOLE CORPORATE MEMBER OF TMH HEALTH CARE GROUP (SOLE CORPORATE MEMBER OF THIS ORGANIZATION), WHICH FOLLOWS IRS REGULATIONS AS IT RELATES TO ESTABLISHING A REBUTTABLE PRESUMPTION OF REASONABLENESS RELATED TO TOTAL COMPENSATION OF THE CEO OF THIS ORGANIZATION AS WELL AS OTHER KEY EMPLOYEES AND COMPENSATED OFFICERS OF THE ORGANIZATION LISTED BELOW. IT HAS ESTABLISHED A PROCESS THAT INCLUDES THE FOLLOWING ELEMENTS: A SEPARATE COMMITTEE OF THE BOARD OF HMH (THE "BOARD COMMITTEE"), COMPRISED OF INDEPENDENT DIRECTORS, MEETS AT LEAST ANNUALLY TO REVIEW, DELIBERATE AND MAKE RECOMMENDATIONS TO THE BOARD OF HMH AS IT RELATES TO ANY CHANGES IN TOTAL COMPENSATION INCLUDING BASE PAY, BONUS AWARDS FROM INCENTIVE PROGRAMS OR BENEFITS AND PERQUISITES OF THE CEO. FOR 2016, THE BOARD COMMITTEE REVIEWED AND RECOMMENDED COMPENSATION PACKAGES FOR THE FOLLOWING POSITIONS: -EVP/CHIEF MEDICAL OFFICER, HOUSTON METHODIST HOSPITAL, WHO ALSO SERVES AS PRESIDENT, CHAIRPERSON & CEO FOR HOUSTON METHODIST SPECIALTY PHYSICIAN GROUP. THE BOARD COMMITTEE ESTABLISHES THAT NO MEMBER HAS ANY CONFLICT OF INTEREST WITH REGARD TO THE EXECUTIVE COMPENSATION ARRANGEMENTS BEING APPROVED. THE BOARD COMMITTEE REVIEWS AND CONSIDERS INFORMATION PROVIDED BY AN EXTERNAL CONSULTANT ENGAGED TO ENSURE IT HAS DIRECT ACCESS TO: -COMPENSATION INFORMATION PAID BY COMPARABLE ORGANIZATIONS, FOR FUNCTIONALLY COMPARABLE POSITIONS. -COMPENSATION NORMS IN THE ORGANIZATION'S IMMEDIATE LOCALE AND FROM OTHER INDEPENDENT COMPENSATION SURVEYS BY NATIONALLY RECOGNIZED INDEPENDENT FIRMS THAT REPRESENT THE ORGANIZATION'S LOGICAL PEER GROUP. -COMPENSATION INFORMATION THAT INCLUDES INFORMATION ON BASE SALARY, INCENTIVES, BENEFITS AND PERQUISITES FOR TOTAL COMPENSATION COMPARISON PURPOSES TO ENSURE REASONABLE COMPETITIVE RANKING. THE BOARD COMMITTEE RELIES ON THE COMPARABILITY DATA TO REACH CONSENSUS THAT ITS RECOMMENDATIONS TO THE BOARD REGARDING EXECUTIVE COMPENSATION CHANGES ARE REASONABLE AND IN LINE WITH ORGANIZATION'S OVERALL TOTAL COMPENSATION PHILOSOPHY FOR EXECUTIVE PAY. THE DELIBERATIONS AND DECISIONS OF THE BOARD COMMITTEE ARE CONTEMPORANEOUSLY SUBSTANTIATED. THE COMPENSATION FOR POSITIONS HELD BY THE OTHER COMPENSATED OFFICERS AND DIRECTORS LISTED ON PART VII, SECTION A IS DETERMINED BASED ON A THOROUGH REVIEW OF NUMEROUS COMPENSATION STUDIES CONDUCTED BY NATIONALLY RECOGNIZED, INDEPENDENT FIRMS THAT PROVIDE MARKET DATA FOR TOTAL COMPENSATION FOR SIMILAR POSITIONS. THE COMPENSATION INFORMATION CONSIDERED INCLUDES INFORMATION ON BASE SALARY, INCENTIVES, AND BENEFITS FOR TOTAL COMPENSATION PURPOSES TO ENSURE REASONABLE COMPETITIVE RANKING IN ORDER TO MEET RECRUITMENT AND RETENTION OBJECTIVES THAT SECURE THE TALENT REQUIRED TO CONTRIBUTE TO ORGANIZATIONAL SUCCESS. FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS (EXCEPT THE ARTICLES OF INCORPORATION, WHICH ARE ON FILE WITH THE SECRETARY OF THE STATE OF TEXAS), CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS OF THE ORGANIZATION ARE NOT MADE AVAILABLE TO THE GENERAL PUBLIC. 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