2017-03-29T15:21:31-05:00 2016-09-30 750800661 METHODIST HOSPITALS OF DALLAS PO BOX 655999 DALLAS TX 752655999 990 2015-10-01 264193362 MHSR MEDICAL CENTER MHSR 2149478181 1441 N BECKLEY AVE DWIGHT WILLIAMS DALLAS TX 75203 DWIGHT F WILLIAMS VICE PRESIDENT 2149478181 2017-03-16 1 DWIGHT WILLIAMS P00544474 2149474581 2017-03-29 2015 2021-01-29 14:40:06Z X MICHAEL SCHAEFER 1441 N BECKLEY AVE DALLAS TX 75203 0 0 X WWW.METHODISTHEALTHSYSTEM.ORG X 2009 TX MHSR MEDICAL CENTER IS A 501(C)(3)TAX-EXEMPT CORPORATION ESTABLISHED BY METHODIST HOSPITALS OF DALLAS D/B/A METHODIST HEALTH SYSTEM(MHS). MHSR OWNED LAND, BUILDINGS AND EQUIPMENT LOCATED IN RICHARDSON, TX, WHICH WERE LEASED TO MHS FOR THE OPERATION OF A COMMUNITY HOSPITAL. 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 X FORMED ORIGINALLY TO HOLD HOSPITAL ASSESTS, ALONG WITH RELATED ASSETS AND RELATED DEBT PREVIOUSLY OWNED BY THE RICHARDSON HOSPITAL AUTHORITY. THE PURPOSE BEING TO LEASE THOSE ASSETS TO METHODIST HEALTH SYSTEM (MHS)AT AN AMOUNT SUFFICIENT TO ALLOW MHSR TO SERVICES ITS DEBT AND ALLOW MHS TO OPERATE THE HOSPITAL FOR THE BETTERMENT OF THE HEALTHCARE SERVICES OFFERED TO THE COMMUNITY. DURING THE 2013 TAX YEAR ALL OF THE ASSETS OF MHSR WERE TRANSFERED TO MHS. THE HOSPITAL BECAME A DIVISION OF MHS AND ITS OPERATIONS ARE REPORTED ON THE FORM 990 OF METHODIST HOSPITALS OF DALLAS. 0 0 THE RICHARDSON HOSPITAL AUTHORITY (RHA) BOARD, THE GOVERNING BODY OF RICHARDSON REGIONAL MEDICAL CENTER, SIGNED A 20-YEAR OPERATING LEASE AGREEMENT WITH METHODIST HEALTH SYSTEM TO APPOINT METHODIST (VIA ITS WHOLLY OWNED TAX EXEMPT SUBSIDIARY MHSR MEDICAL CENTER) TO OPERATE THE RICHARDSON HOSPITAL AND LEASE ITS FACILITIES AND EQUIPMENT. RHA RETAINED OWNERSHIP OF THE HOSPITAL WHILE IT IS OPERATED IN THE METHODIST SYSTEM UNDER ITS NEW NAME, METHODIST RICHARDSON MEDICAL CENTER. THERE IS A COMMUNITY ADVISORY BOARD MADE UP OF 14 COMMUNITY LEADERS TO HELP GUIDE THE HOSPITAL. THE NEW METHODIST RICHARDSON, WHICH BEGAN AS A COMMUNITY-OWNED HOSPITAL IN 1966, HAS TWO MEDICAL CAMPUSES; THE CAMPBELL RD. AND BUSH/RENNER CAMPUSES. THE METHODIST PARTNERSHIP WAS EXPECTED TO ACCELERATE THE EXPANSION AT BUSH/RENNER, WHICH AT THE TIME OF THE LEASE WAS HOME TO A MEDICAL OFFICE BUILDING AS WELL AS AN OUTPATIENT HOSPITAL AND CANCER CENTER. A NEW BED TOWER WAS OPENED ON THE BUSH/RENNER CAMPUS IN APRIL OF 2014. METHODIST RICHARDSON MEDICAL CENTER, A 209 BED ACUTE CARE HOSPITAL SERVING RESIDENTS OF RICHARDSON, PLANO, NORTH DALLAS, AND THE SURROUNDING COMMUNITIES, JOINED METHODIST HEALTH SYSTEM IN JUNE 2009. ON 10/01/2011 MHSR PURCHASED SUBSTANTIALLY ALL OF THE ASSETS PREVIOUSLY LEASED FROM RICHARDSON HOSPITAL AUTHORTIY (RHA) AND THE MEDICAL OFFICE BUILDINGS AND CERTAIN RENTAL PROPERTIES NOT PREVIOUSLEY LEASED BY MHSR. ADDITIONALLY, OWNERSHIP OF THE PROFESSIONAL OFFICE BUILDINGS AND OTHER OFFICE PROPERTY PREVIOUSLY LEASED TO MHSR AND ACQUIRED BY MHSR ON 10/1/2011 WAS TRANSFERED TO AND IS OPERATED BY PAVILION PROPERTIES, A 501(C)(2)TITLE HOLDING WITH MHS AS ITS SOLE MEMBER. ALL FUNCTIONS RELATED TO THE OPERATIONS OF THE MEDICAL OFFICE BUIDLINGS WERE ASSUMED BY PAVILION PROPERTIES. IN DECEMBER OF 2013 MHSR DISTRIBUTED ALL OF ITS ASSETS TO ITS SECTION 501(C)(3) PARENT CORPORATION MHS. MHS HAD BEEN LEASING THE ASSETS FROM MHSR AND OPERATING THE HOSPITAL IN ACCORDANCE WITH A 2009 AGREEMENT WITH THE RICHARDSON HOSPITAL AUTHORITY. DUE TO THE OUTSTANDING DEBT THAT WAS ASSUMED BY MHSR WHEN IT ENTERED INTO THE ORIGINAL LEASE AGREEMENT WITH THE RICHARDSON HOSPITAL AUTHORITY MHS HAD KEPT THE ASSETS AND LIABILITIES OF MHSR SEPERATE FROM MHS. IN DECEMBER OF 2013 MHS PAID OFF ALL OF THE OUTSTANDING DEBT OF MHSR AND ASSUMED OWNERSHIP OF ALL OF THE ASSETS OF MHSR. 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 X 3 0 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X MICHAEL SCHAEFER 2149478181 1441 N BECKLEY AVE DALLAS TX 75203 X MICHAEL SCHAEFER CHAIRMAN/TREASURER 2.00 40.00 X X 0 1116136 77206 PAM STOYANOFF VICE CHAIR & ASST.SEC 2.00 40.00 X X 0 1101064 147721 DWIGHT WILLIAMS VP/SEC 2.00 40.00 X X 0 180286 14751 KEN HUTCHENRIDER PRES/MMCR 2.00 40.00 X 0 554197 82661 JOHN BAUMGARTNER FORMER VP/SEC 0.00 40.00 X 0 473678 49512 0 3425361 371851 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 X 0 0 0 0 0 X X 0 1 X 1 0 X X 1 METHODIST HOSPITALS OF DALLAS 750800661 3 1 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 SCHEDULE A, PART IV, LINE 3 MHSR HAD SUPPORTED ITS PARENT ORGANIZATION, METHODIST HOSPITALS OF DALLAS,(MHD) BY HOLDING HOSPITAL ASSETS AND LEASING THEM TO MHD FOR USE AS A HOSPITAL FACILITY. MHSR SUBSEQUENTLY TRANSFERED THOSE ASSETS TO MHD FOR THE PROVISION OF HEALTHCARE SERVICES AT METHODIST RICARDSON MEDICAL CENTER (MRMC), ONE OF METHODIST HOSPITALS OF DALLAS HOSPITAL DIVISIONS. 0 X PART X, LINE 2: METHODIST HEALTH SYSTEM (MHS) HAS CONCLUDED THAT IT DOES NOT HAVE ANY UNRECOGNIZED TAX BENEFITS RESULTING FROM CURRENT OR PRIOR PERIOD TAX POSITIONS. ACCORDINGLY NO ADDITIONAL DISCLOSURES HAVE BEEN MADE IN THE FINANCIAL STATEMENTS. MHS DOES NOT HAVE ANY OUTSTANDING INTEREST OR PENALTIES, AND NONE HAVE BEEN RECORDED IN THE CONSOLIDATED STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS FOR THE YEARS ENDED SEPTEMBER 30, 2016 AND 2015. 1 0 1 0 0 1 0 1 0 0 MICHAEL SCHAEFER CHAIRMAN/TREASURER 0 593039 0 298898 0 224199 0 16709 0 60497 0 1193342 0 103754 PAM STOYANOFF VICE CHAIR & ASST.SEC 0 656077 0 330487 0 114500 0 103323 0 44398 0 1248785 0 97510 DWIGHT WILLIAMS VP/SEC 0 166476 0 6613 0 7197 0 6416 0 8335 0 195037 0 0 KEN HUTCHENRIDER PRES/MMCR 0 354700 0 133582 0 65915 0 57768 0 24893 0 636858 0 57283 JOHN BAUMGARTNER FORMER VP/SEC 0 340620 0 83404 0 49654 0 16848 0 32664 0 523190 0 0 PART I, LINE 4B MHSR DOES NOT PROVIDE ANY PROGRAM FOR PAYMENT IN ANY FORM OF COMPENSATION FOR ITS OFFICERS OR DIRECTORS. CERTAIN MHSR OFFICERS AND DIRECTORS PARTICIPATE IN SUPPLEMENTAL NON-QUALIFIED RETIREMENT PROGRAMS (457(F)) THROUGH THE RELATED MEMBER ORGANIZATION. (MHD) THESE PLANS ARE NECESSARY TO RECRUIT AND RETAIN KEY EMPLOYEES. WHERE APPLICABLE THE PLANS PROVIDED AN ANNUAL BENEFIT (BASED ON PERCENTAGE OF COMPENSATION) TO THE EMPLOYEE THAT IS PAID TO THE EMPLOYEE ON A FUTURE DATE CONSISTENT WITH THE VESTING SCHEDULE UNDER THE PLAN. ANY CONTRIBUTIIONS TO A SECTION 457(F) NON-QUALIFIED PLAN ARE INCLUDED IN SCHEDULE J, PART II, AND COLUMN C. PART I, LINE 5 CERTAIN MHSR OFFICERS ARE ELIGIBLE TO PARTICIPATE IN SHORT TERM INCENTIVE PLANS THAT ARE DESIGNED TO ALIGN THEIR COMPENSATION TO THE ANNUAL STRATEGY OF MHS. PERFORMANCE TARGETS ARE BASED UPON A PERCENTAGE OF THE PARTICIPANT'S BASE SALARY AND ARE DEVELOPED BY INDEPENDENT THIRD PARTY EXPERTS USING MARKET COMPETITIVE DATA. THE SHORT TERM PLAN IS BASED ON PERFORMANCE AGAINST ANNUAL GOALS SUCH AS QUALITY OF CARE, PATIENT SATISFACTION, PHYSICIAN ALIGNMENT, A COMPREHENSIVE ELECTRONIC MEDICAL RECORD SOLUTION AND GROWTH IN AMBULATORY SITES AND FAMILY HEALTH CENTERS. THERE ARE ALSO FINANCIAL TARGETS RELATED TO OPERATING MHS FINANCIAL AFFAIRS EFFICIENTLY WITH A SUB-SECTION RELATED TO REVENUE GROWTH. ADDITIONALLY, MHS PROVIDES CERTAIN OFFICERS WITH A LONG-TERM INCENTIVE PLAN DESIGNED TO ALIGN THE ORGANIZATIONS THREE-YEAR PERFORMANCE AGAINST ITS PEERS BASED ON PEER RANKINGS OR PERCENTILE RANKINGS IN QUALITY, PATIENT SATISFACTION AND FINANCIAL PERFORMANCE, INCLUDING REVENUE GROWTH. AT THE END OF THREE YEARS AWARDS ARE DETERMINED BY THE MHS GOVERNING BODY. PART I, LINE 6 CERTAIN MHSR OFFICERS ARE ELIGIBLE TO PARTICIPATE IN SHORT TERM INCENTIVE PLANS THAT ARE DESIGNED TO ALIGN THEIR COMPENSATION TO THE ANNUAL STRATEGY OF MHS. PERFORMANCE TARGETS ARE BASED UPON A PERCENTAGE OF THE PARTICIPANT'S BASE SALARY AND ARE DEVELOPED BY INDEPENDENT THIRD PARTY EXPERTS USING MARKET COMPETITIVE DATA. THE SHORT TERM PLAN IS BASED ON PERFORMANCE AGAINST ANNUAL GOALS SUCH AS QUALITY OF CARE, PATIENT SATISFACTION, PHYSICIAN ALIGNMENT, A COMPREHENSIVE ELECTRONIC MEDICAL RECORD SOLUTION AND GROWTH IN AMBULATORY SITES AND FAMILY HEALTH CENTERS. THERE ARE ALSO FINANCIAL TARGETS RELATED TO OPERATING MHS FINANCIAL AFFAIRS EFFICIENTLY WITH A SUB-SECTION RELATED TO MANAGING OPERATING EXPENSE GROWTH AND NET OPERATING INCOME MARGIN. ADDITIONALLY, MHS PROVIDES CERTAIN OFFICERS WITH A LONG-TERM INCENTIVE PLAN DESIGNED TO ALIGN THE ORGANIZATIONS THREE-YEAR PERFORMANCE AGAINST ITS PEERS BASED ON PEER RANKINGS OR PERCENTILE RANKINGS IN QUALITY, PATIENT SATISFACTION AND FINANCIAL PERFORMANCE, INCLUDING REVENUE GROWTH. AT THE END OF THREE YEARS AWARDS ARE DETERMINED BY THE MHS GOVERNING BODY. FORM 990, PART VI, SECTION A, LINE 6 MHSR HAS AS ITS SOLE MEMBER ITS PARENT ORGANIZATION WHICH IS METHODIST HOSPITALS OF DALLAS A 501(C)(3) HOSPITAL. FORM 990, PART VI, SECTION A, LINE 7A MHS AS THE SOLE MEMBER OF MHSR HAS THE RIGHT TO APPOINT ANY BOARD MEMBER. FORM 990, PART VI, SECTION A, LINE 7B METHODIST HOSPITALS OF DALLAS D/B/A METHODIST HEALTH SYSTEM IS THE SOLE MEMBER OF MRMC AND HAS CERTAIN RESERVE POWERS OVER MRMC TO INSURE THAT ITS OPERATIONS ARE CONSISTENT WITH THE TAX-EXEMPT PURPOSE AND MISSION OF BOTH ORGANIZATIONS. FORM 990, PART VI, SECTION B, LINE 11 THE BOARD MEMBERS OF MHSR ARE MEMBERS OF SENIOR MANAGEMENT OF MHS. THUS THEY ARE ALL VERY FAMILIAR WITH THE DAY TO DAY OPERATIONS OF MRMC. FURTHER THEY ARE ALL PROVIDED AN ELECTRONIC COPY OF THE FORM 990 PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C MHS PROVIDES ALL OFFICERS, DIRECTORS AND KEY EMPLOYEES AN ANNUAL CONFLICT OF INTEREST QUESTIONAIRE WHICH IS SUPPLEMENTED BY MONITORING OF THE PARENT CORPORATIONS CHIEF COMPLIANCE OFFICER. FORM 990, PART VI, SECTION B, LINE 15 NO OFFICER OR DIRECTOR IS COMPENSATED FOR THE SERVICES THEY PERFORM AT MRMC. THEIR COMPENSATION FOR MHS IS REVIEWED BY PARENT CORPORATIONS CEO AND APPROVED BY THE MHS BOARD. FORM 990, PART VI, SECTION C, LINE 19 UPON REQUEST FORM 990, PART VII, ALL OF THE RELATED ORGANIZATION LISTED OFFICERS, TRUSTEES AND KEY EMPLOYEES ARE EMPLOYED BY METHODIST HOSPITALS OF DALLAS (MHD)WHICH IS THE PARENT TAX-EXEMPT ENTITY OF MHSR MEDICAL CENTER. MR HUTCHENRIDER DEVOTES SUBSTANALLY ALL OF HIS TIME TO THE OPERATIONS OF THE METHODIST RICHARDSON MEDICAL CENTER, A DIVISION OF MHD. THE REMAINDEER OF THOSE PERSONS IDENTIFIED AS FROM A RELATED ORGANIZATION PROVIDE CORPORATE OVERSIGHT. FORM 990, PART XII, LINE 2C MHSR IS INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENT AUDIT OF THE METHODIST HEALTH SYSTEM. THERE IS AN AUDIT COMMITTEE OF THAT BOARD RESPONSIBLE FOR OVERSIGHT AND SELECTION OF THE AUDIT FIRM AND TO RECEIVE THE RESULTS OF THE AUDIT. 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