2016-08-05T08:19:10-05:00 2015-09-30 DELOITTE TAX LLP 201 N FRANKLIN STREET SUITE 3600 TAMPA FL 336025818 990 2014-10-01 590872594 SOUTH MIAMI HOSPITAL INC % FINANCE DEPARTMENT SOUT 7866627000 6200 SW 73 STREET MIAMI FL 33143 MATTHEW ARSENAULT VP OF FINANCE 2016-08-03 2014 2016-12-15 16:53:06Z LINCOLN MENDEZ CEO 6200 SW 73RD ST MIAMI FL 33143 618597982 false X WWW.BAPTISTHEALTH.NET X 1959 FL SEE STATEMENT 1 15 14 2646 178 5146 463079 481868 616043326 611234666 -21286 745119 3670071 5576353 620155190 618038006 0 0 0 0 189954769 184008274 0 0 0 376556935 393257644 566511704 577265918 53643486 40772088 320045868 330745351 261029777 244196185 59016091 86549166 X THE MISSION OF BAPTIST HEALTH IS TO IMPROVE THE HEALTH AND WELL-BEING OF INDIVIDUALS, AND TO PROMOTE THE SANCTITY AND PRESERVATION OF LIFE, IN THE COMMUNITIES WE SERVE. BAPTIST HEALTH IS A FAITH-BASED ORGANIZATION GUIDED BY THE SPIRIT OF JESUS CHRIST AND THE JUDEO-CHRISTIAN ETHIC. WE ARE COMMITTED TO MAINTAINING THE HIGHEST STANDARDS OF CLINICAL AND SERVICE EXCELLENCE, ROOTED IN THE UTMOST INTEGRITY AND MORAL PRACTICE. CONSISTENT WITH ITS SPIRITUAL FOUNDATION, BAPTIST HEALTH IS DEDICATED TO PROVIDING HIGH-QUALITY, COST-EFFECTIVE, COMPASSIONATE HEALTHCARE SERVICES TO ALL, REGARDLESS OF RELIGION, CREED, RACE OR NATIONAL ORIGIN, INCLUDING, AS PERMITTED BY ITS RESOURCES, CHARITY CARE TO THOSE IN NEED. false false 522726959 611642519 CONSISTENT WITH ITS SPIRITUAL FOUNDATION, BAPTIST HEALTH SOUTH FLORIDA AND ITS AFFILIATES (BAPTIST HEALTH) ARE DEDICATED TO PROVIDING HIGH-QUALITY, COST-EFFECTIVE, COMPASSIONATE HEALTHCARE SERVICES TO ALL, INCLUDING, AS PERMITTED BY OUR RESOURCES, CHARITY CARE TO THOSE IN NEED. DURING THE FISCAL YEAR ENDED SEPTEMBER 30, 2015, BAPTIST HEALTH PROVIDED PATIENT SERVICES TO THE SOUTH FLORIDA AREA WITH 75,440 ADULT ADMISSIONS, 364,469 PATIENT DAYS, AND 346,093 EMERGENCY ROOM VISITS. DURING THAT SAME TIME PERIOD, URGENT CARE VISITS TOTALED 289,907, OUTPATIENT SURGERY CASES 51,828, AND TOTAL OUTPATIENT VISITS WERE 1,103,149 SYSTEM-WIDE. AS OF SEPTEMBER 30, 2015 THE SYSTEM HAD 1,761 LICENSED INPATIENT BEDS COMPRISED OF 1,653 ACUTE CARE, 56 NEONATAL INTENSIVE CARE LEVEL II, 29 NEONATAL INTENSIVE CARE LEVEL III AND 23 COMPREHENSIVE MEDICAL REHABILITATION. IN TOTAL BAPTIST HEALTH PROVIDED MORE THAN $206,118,965 IN COMMUNITY BENEFIT DURING ITS 2015 FISCAL YEAR. WE PROVIDED CHARITY CARE VALUED AT $88,618,000 AS WELL AS $59,994,760 IN UNCOMPENSATED SERVICES. THE ESTIMATED COST OF PROVIDING CHARITY SERVICES AND UNCOMPENSATED SERVICES IS BASED ON RECENT HISTORICAL COST-TO-CHARGE RATIOS FOR CHARITY PATIENTS AND MEDICAID PATIENTS FROM BHSF'S COST ACCOUNTING SYSTEM, APPLIED TO THE CURRENT PERIOD GROSS UNCOMPENSATED CHARGES ASSOCIATED WITH PROVIDING CARE TO CHARITY AND MEDICAID PATIENTS. WE ALSO CONTRIBUTED $25,916,000 TO THE INDIGENT CARE FUND AND EXPENDED $8,886,000 FOR EDUCATIONAL PROGRAMS, SCREENINGS, CORPORATE SPONSORSHIPS AND DONATIONS. FREE COMMUNITY HEALTH AND WELLNESS PROGRAMS COVERED TOPICS RANGING FROM INSOMNIA AND FOOD SAFETY TO DIABETES AND WEIGHT CONTROL. IN ADDITION, BAPTIST HEALTH PROVIDED FREE SCREENINGS FOR CHOLESTEROL, BLOOD PRESSURE, BODY COMPOSITION AND OSTEOPOROSIS. BAPTIST HEALTH ALSO HELPED THOSE IN NEED OF PRIMARY CARE SERVICES BY DONATING APPROXIMATELY $1,902,000 TO NEIGHBORHOOD NOT-FOR-PROFIT CLINICS SUCH AS THE OPEN DOOR HEALTH CENTER IN HOMESTEAD, THE SOUTH MIAMI CHILDREN'S CENTER IN SOUTH MIAMI AND THE GOOD HEALTH CLINIC IN TAVERNIER. WE SPENT $13,554,600 PAYING PHYSICIANS WHO PROVIDE CARE TO OUR COMMUNITY MEMBERS IN NEED. ADDITIONALLY, WE PROVIDED $2,379,700 IN CONTINUING MEDICAL EDUCATION AND $821,000 IN CHAPLAINCY DURING THE YEAR ENDED SEPTEMBER 30, 2015. FULFILLING OUR MISSION TO PROVIDE COMPASSIONATE CARE TO THE ENTIRE COMMUNITY ISN'T ONLY ABOUT ASSISTING THOSE IN FINANCIAL NEED. IT IS ALSO ABOUT SUPPORTING SERVICES THAT LOSE MONEY BUT ARE ESSENTIAL TO OUR COMMUNITY. IN 2007, BAPTIST HEALTH INVESTED APPROXIMATELY $135,000,000 IN BUILDING A REPLACEMENT HOSPITAL FOR HOMESTEAD HOSPITAL. HOMESTEAD HOSPITAL OPERATES AT A LOSS, BUT BAPTIST HEALTH CONTINUES TO OPERATE THIS HOSPITAL BECAUSE IT FILLS AN IMPORTANT COMMUNITY NEED FOR QUALITY HEALTHCARE. ADDITIONALLY BAPTIST HEALTH HAS INVESTED SUBSTANTIAL FUNDS TO HARDEN ITS FACILITIES TO WITHSTAND A CATEGORY 5 HURRICANE FOR THE PROTECTION OF OUR PATIENTS AND NEIGHBORS. Scheduled to open in late 2016, MIAMI CANCER WILL HOUSE ALL Baptist Health South Florida CANCER SERVICES UNDER ONE ROOF. THE New FACILITY WILL OFFER 305,000 SQUARE FEET OF CLINICAL SERVICES AND CUTTING-EDGE TECHNOLOGY. A 140,000 SQUARE-FOOT RESEARCH FACILITY WILL PROVIDE ACCESS TO CLINICAL TRIALS AND GROUND-BREAKING TREATMENTS. THE $430 MILLION FACILITY WILL BE THE FIRST IN SOUTH FLORIDA - AND ONE OF less than two dozen IN THE NATION - TO OFFER PROTON THERAPY. DESIGNED WITH PATIENT COMFORT AND CONVENIENCE IN MIND, THE CANCER INSTITUTE WILL OFFER DIAGNOSIS, TREATMENT, RESEARCH TRIALS AND FOLLOW-UP CARE AT ONE STATE-OF-THE-ART LOCATION. IN ADDITION TO THE HEALTH-RELATED BENEFITS LISTED ABOVE, BAPTIST HEALTH ALSO HAS A SIGNIFICANT AND POSITIVE FINANCIAL IMPACT ON OUR COMMUNITY. WE DIRECTLY EMPLOY MORE THAN 16,000 INDIVIDUALS AND DIRECTLY AND INDIRECTLY CREATE ANOTHER 34,400 JOBS. AS SOUTH FLORIDA'S LARGEST PRIVATE EMPLOYER, BAPTIST HEALTH IS TAKING A LEADERSHIP ROLE BY COMMITTING TO THE ENVIRONMENTALLY RESPONSIBLE, ENERGY-EFFICIENT DESIGN AND FUNCTION OF OUR FACILITIES. WEST KENDALL BAPTIST HOSPITAL IS CERTIFIED AS A GREEN BUILDING THROUGH THE LEADERSHIP IN ENERGY AND ENVIRONMENTAL DESIGN (LEED) PROGRAM FOR THE U.S. GREEN BUILDING COUNCILS. THIS COMMITMENT APPLIES TO OUR DAY-TO-DAY OPERATIONS, AS WELL, FROM THE SUPPLIES WE PURCHASE TO THE VEHICLES WE USE. IN ACCORDANCE WITH OUR FAITH-BASED MISSION, BAPTIST HEALTH SOUTH FLORIDA AND ITS AFFILIATES ARE COMMITTED TO MAKING A SIGNIFICANT, POSITIVE IMPACT ON THE COMMUNITY IT SERVES. 522726959 true true false false false false false false false true true false false true true true 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 false false true true false false false true X 0 0 true 0 true true false false false false false false false false false false false false X 15 14 false false true false false true true true true false false true true true true true true false true false X X FINANCE DEPARTMENT 7866627000 6855 RED ROAD STE 200 CORAL GABLES FL 33143 X GEORGE M CORRIGAN DIRECTOR 2.0 2.0 X 0 0 0 JAMES W HARRIS DIRECTOR 2.0 4.0 X 0 0 0 HANS C MUELLER DIRECTOR 2.0 0.0 X 0 0 0 DOMINGO C RODRIGUEZ ESQUIRE DIRECTOR 2.0 0.0 X 524 0 0 MICHAEL F GRAHAM MD DIRECTOR 2.0 0.0 X 0 0 0 BARRON CHANNER DIRECTOR 2.0 0.0 X 0 0 0 YVETTE ALEMAN DIRECTOR 2.0 0.0 X 754 0 0 YERBY T BARKER CHAIRMAN 2.0 4.0 X 0 0 0 ALYSA R HERMAN MD DIRECTOR 2.0 0.0 X 0 0 0 KARENT SIERRA DDS DIRECTOR 2.0 0.0 X 43 0 0 ROBERT J SHAFER JR DIRECTOR 2.0 0.0 X 0 0 0 REV DR MARCOS A RAMOS DIRECTOR 2.0 2.0 X 0 0 0 JOSEPH BUCHANAN ESQ DIRECTOR 2.0 2.0 X 124 0 0 JEREMY I TABAK MD PRESIDENT OF MED. STAFF 2.0 2.0 X 73883 0 0 IAN REISS MD DIRECTOR 2.0 0.0 X 0 0 0 LINCOLN S MENDEZ CEO 50.0 0.0 X 0 756367 112421 KATHERINE SPARGER CNO 50.0 0.0 X 530747 0 40125 CAROL BIGGS VP - HEART CENTER 50.0 0.0 X 288488 0 40408 DENISE WOODS VP - CENTER FOR WOMEN 50.0 0.0 X 306278 0 41727 JEANETTE STONE VP OF OPERATIONS 50.0 0.0 X 277772 0 37351 RAYSA GUITIERREZ DIRECTOR OF PHARMACY 45.0 0.0 X 198263 0 16450 LOUIS GIDEL MEDICAL DIRECTOR 45.0 0.0 X 345182 0 31598 MONICA MANASA EICU MD 45.0 0.0 X 401665 0 5113 CARMEN RODRIGUEZ AVP PERIOPERATIVE SVCS 45.0 0.0 X 198828 0 27406 RUBEN PENARANDA EICU MD 45.0 0.0 X 200479 0 4010 YVONNE JOHNSON MD FORMER PRESIDENT OF MED. STAFF 0.0 2.0 X 34740 79650 1586 JAVIER HERNANDEZ-LICHTL FORMER CEO 0.0 50.0 X 0 741148 98316 RICHARD FREEBURG FORMER COO 0.0 50.0 X 0 447300 61443 2857770 2024465 517954 178 true true false CRITICARE CLINICS INC PO BOX 439031 MIAMI FL 33243 PHYSICIAN SERVICES 7587490 TURNER CONSTRUCTION COMPANY 7235 CORPORATE CENTER DRIVE STE G MIAMI FL 33126 CONSTRUCTION SVCS 5142830 INTUITIVE SURGICAL INC DEPT 33629 PO BOX 39000 SAN FRANCISCO CA 94139 SERVICE CONTRACTS 3650011 ARELLANO CONSTRUCTION COMPANY 7051 SW 12 ST MIAMI FL 33144 CONSTRUCTION SVCS 1676263 ONCOLOGY HEMATOLOGY RADIATION CARE 9350 SUNSET DRIVE STE 200 MIAMI FL 33173 PHYSICIAN SERVICES 1604533 82 481868 481868 NET PATIENT REVENUE 621300 611154034 611154034 OUTREACH LAB 621500 67874 65164 2710 GRANT REVENUE 900099 12758 12758 611234666 308410 308410 0 0 552406 51793 500613 0 500613 500613 944892 508183 436709 436709 436709 0 0 0 CAFETERIA 722514 3275422 2436 3272986 GIFT SHOP 453220 610185 610185 ELECTRONIC HEALTH RECORDS INCENTIVE REVENUE 900099 782280 782280 407853 407853 5075740 618038006 611639809 5146 5911183 0 0 0 0 1437611 1437611 0 153269540 131501078 21768462 6486955 5513912 973043 11833833 10058758 1775075 10980335 9333285 1647050 0 4454180 4454180 268288 268288 0 0 0 47807329 45213005 2594324 2120758 1912924 207834 16394954 14788249 1606705 27405590 24719842 2685748 0 11526162 9220930 2305232 317689 254151 63538 0 1551 1396 155 5946273 4757018 1189255 0 22573667 18058934 4514733 6203848 6079771 124077 CHARITY CARE 63657363 63657363 MANAGEMENT FEES TO AFFILIATE 59242615 53436839 5805776 PROVISION FOR BAD DEBT 52113509 52113509 MEDICAL SUPPLIES 64300510 64300510 8923358 7805485 1117873 577265918 522726959 54538959 0 X 14300 12745 335043 335043 0 0 60089999 66039477 0 0 0 0 0 0 9126987 9613370 2096025 1667966 427201267 196776305 216098628 230424962 0 0 0 0 0 0 0 0 32284886 22651788 320045868 330745351 75818072 65983727 0 0 0 0 151858187 149084490 0 0 0 0 0 0 0 0 33353518 29127968 261029777 244196185 X 42439020 69073396 8415156 9229078 8161915 8246692 59016091 86549166 320045868 330745351 X 40772088 -13239013 X false true X true false X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 8161915 84777 8246692 7837172 324743 8161915 7566787 270385 7837172 7566787 7566787 7566787 7566787 1.00000 false true true 28132621 28132621 224334482 101461278 122873204 6658598 3449474 3209124 149722025 89189995 60532030 18353541 2675558 15677983 230424962 PHYSICIAN GUARANTEE ASSETS 5438384 FOUNDATION, INC 17140727 DUE FROM MEDICARE -581299 OTHER CURRENT ASSETS 25334 UNAMORTIZED DEBT ISSUANCE COST 628642 22651788 0 SELF INSURANCE RESERVES 19697757 ASSET RETIREMENT OBLIGATION 98190 POST RETIREMENT BENEFIT L-T 0 PHYSICIAN GUARANTEE LIABILITY 5438384 DUE TO AFFILIATES 3893637 29127968 X 501680425 -115770872 -115770872 617451297 586709 586709 618038006 461058337 -436709 -436709 461495046 115770872 115770872 577265918 SCHEDULE D, PART X, LINE 2 FIN 48 (ASC 740) FOOTNOTE As of September 30, 2015 and 2014, BHSF had no material unrecognized tax positions. SCHEDULE D, PART XI, LINE 2D REVENUE, GAIN, & OTHER SUPPORT INCLUDED IN BOOKS, NOT IN FORM 990 DESCRIPTION AMOUNT CHARITY CARE -63,657,363 PROVISION FOR BAD DEBT -52,113,509 ___________ TOTAL -115,770,872 SCHEDULE D, PART XI, LINE 4B REVENUE, GAIN, AND OTHER SUPPORT IN FORM 990, NOT IN BOOKS DESCRIPTION AMOUNT CONTRIBUTIONS FOR CAPITAL FROM FOUNDATION 150,000 GAIN ON SALE OF ASSET 436,709 _______ TOTAL 586,709 SCHEDULE D, PART XII, LINE 2D OTHER EXPENSES AND LOSSES IN BOOKS, BUT NOT IN FORM 990 DESCRIPTION AMOUNT GAIN ON SALE OF ASSET -436,709 _______ TOTAL -436,709 SCHEDULE D, PART XII, LINE 4B OTHER EXPENSES AND LOSSES IN FORM 990, NOT IN BOOKS DESCRIPTION AMOUNT CHARITY CARE 63,657,363 PROVISION FOR BAD DEBT 52,113,509 ___________ 115,770,872 SCHEDULE D, PART V, LINE 4 INTENDED USE OF ORGANIZATION'S ENDOWMENT FUNDS South Miami Hospital, Inc's endowment consists of funds that have been limited by donors to a specific time period or purpose. As required by accounting principles generally accepted in the United States of America, net assets associated with endowment funds are classified and reported based on the existence or absence of donor-imposed restrictions. All endowments received by South Miami Hospital have been recorded as permanently restricted net assets due to the donor imposed restrictions. Endowment funds received are included in assets whose use is limited and invested in accordance with Baptist Health South Florida, Inc's (BHSF) investment policy. Gifts donated to the permanently restricted endowments are classified as permanently restricted net assets at their original fair value. Gifts donated with temporary restrictions are classified as temporarily restricted net assets at their original fair value, until those amounts are appropriated for expenditure by the BHSF Hospitals or Baptist Outpatients Services, Inc in accordance with donors' wishes. Income derived from permanently and temporarily restricted net assets is expendable to support the BHSF Hospitals and BOS, absent explicit donor stipulations to the contrary. The Endowment Funds at South Miami Hospital support the Electrophysiology Program and the Child development program. true true X true X 300. false true true true false true true 22839933 22839933 0.04350 22220563 7195164 15025399 0.02860 45060496 7195164 37865332 0.07210 453754 453754 0.00090 313329 313329 0.00060 767083 767083 0.00150 45827579 7195164 38632415 0.07360 false 13612049 56008935 100519464 -44510529 X true true 1 1 SOUTH MIAMI HOSPITAL INC 6200 SW 73 STREET MIAMI FL 33143 WWW.BAPTISTHEALTH.NET FL LICENSE #4033 X X X SOUTH MIAMI HOSPITAL INC 1 false false true X X X X X X X X 12 true false false true X SEE PART V, SECTION C X true 13 true SEE PART V, SECTION C false false true X 300. 0. X X X X false true X X X true X SEE PART V, SECTION C X SEE PART V, SECTION C X SEE PART V, SECTION C X X X X true X false X X X X true X false false PART V, SECTION C PART V, SECTION B, LINE 22D PATIENTS QUALIFYING UNDER THE FINANCIAL ASSISTANCE POLICY WITH FAMILY INCOME AT OR BELOW 300% FPG RECEIVE FREE CARE. PART V, SECTION B, LINE 5 In the fall of 2012, the Health Council of South Florida assisted South Miami Hospital in conducting four focus groups to gauge genuine perceptions about their role in the community and to collect unvarnished information about healthcare needs and issues from diverse residents/consumers and experts/advocates who are familiar with and could represent all segments of the community. Baptist Health leaders and South Miami Hospital executives made up the two internal focus groups. The two external focus groups featured community health leaders and local healthcare consumers/residents. Health experts and leaders who participated included: * Regional vice president of Allegany Franciscan Ministries, which helps those in need. * Director of the Healthy Aging Department for the Alliance for Aging, which expands services for seniors. * Director of community health for Catalyst Miami, which assists lower-wage individuals and families. * Executive director of Community Smiles, which offers dental-care access to Miami's underserved and uninsured. * CEO of Family Resource Center, which provides child welfare and community mental health services. * Chief of Florida International University's Department of Family Medicine, which examines disparities in clinical, social and behavioral health. * The Children's Trust's chief health and child development officer, who is an expert in the social determinants of community health. * CEO of Health Foundation of South Florida, a grant-making leader for healthier communities. * Community health director for the Miami-Dade Health Department. * Director of health services for Miami-Dade Public Schools. * Director of Miami-Dade's Office of Countywide Healthcare Planning. * Vice president of development and communications for the Miami Foundation, which leads efforts to increase civic engagement. * CEO of Switchboard Miami, a 24-hour hotline that fields crisis-counseling calls. * United Way of Miami-Dade's group vice president of investments, who oversees community plan dollars for health. * YMCA's executive director of community initiatives, who directs childcare programs, and sports and adult fitness programs in Miami-Dade and Monroe counties. The Greater Miami residents who participated in the healthcare consumer's focus group were former patients of South Miami Hospital willing to discuss their experiences and share their views about what they see as their neighborhoods' more pressing healthcare needs. PART V, SECTION B, LINE 7A THE CHNA REPORT IS MADE WIDELY AVAILABLE ON THE HOSPITAL FACILITY'S WEBSITE: https://baptisthealth.net/en/about-baptist-health/documents/smh-report.pdf PART V, SECTION B, LINE 10A THE MOST RECENTLY ADOPTED IMPLEMENTATION STRATEGY IS MADE WIDELY AVAILABLE ON THE HOSPITAL FACILITY'S WEBSITE: https://baptisthealth.net/en/about-baptist-health/documents/smh-implementa tion-plan.pdf PART V, SECTION B, LINE 16A THE FAP IS MADE WIDELY AVAILABLE ON THE HOSPITAL FACILITY'S WEBSITE: https://baptisthealth.net/en/patient-visitor/documents/charity_care_policy _2012.pdf PART V, SECTION B, LINE 16B THE FAP APPLICATION IS MADE WIDELY AVAILABLE ON THE HOSPITAL FACILITY'S WEBSITE: https://baptisthealth.net/en/patient-visitor/documents/smh_financial_aid_f orm.pdf PART V, SECTION B, LINE 16C A PLAIN LANGUAGE SUMMARY OF THE FAP IS MADE WIDELY AVAILABLE ON THE HOSPITAL FACILITY'S WEBSITE: https://baptisthealth.net/en/about-baptist-health/pages/charitable-care.as px PART V, SECTION B, LINE 11 South Miami Hospital conducted a community health needs assessment in 2013 to better understand the healthcare needs of the community it serves in Miami Dade County. It identified the following five priority areas as a result of its assessment: * Access to Care * Availability of Primary Care and Prevention * Chronic Disease Management * Heart and Vascular Disease * Healthy Lifestyles: Exercise and Nutrition The written implementation plan addresses each of the five priority areas above. Specific implementation strategies are organized around each priority area. Access to care: Community Clinics for the Uninsured - South Miami Hospital, through its parent entity Baptist Health South Florida, directly funds the operations of local community clinics that provide healthcare to uninsured/underinsured members of the South Florida community. Baptist Health funds four clinics: the Good Health Clinic, Good News Care Center, Open Door Health Center and South Miami Children's Clinic. In some instances, Baptist Health's contribution amounts to more than half of the operational budget for the clinics. Support Providers in Caring for the Uninsured - South Miami Hospital directly supports the care of the uninsured in two ways: free hospital care to individuals qualifying under the Baptist Health charity care policy, and direct payments to community physicians to treat these patients at the hospital. As Florida's insurance crisis has worsened, Baptist Health has increased its effort to provide free care to those who need it and raised public awareness of this assistance through community outreach and information given to patients. The program provides free care to individuals and families with incomes up to 300 percent of the federal poverty level. In FY 15, South Miami Hospital patients received charity care, at a cost of more than $22 million. In addition, South Miami Hospital encourages our affiliated physicians to care for uninsured patients in the hospital and in their offices on a timely basis by providing direct subsidies to them. In FY 15, the hospital's payments to affiliated physicians for uncompensated care and emergency department coverage totaled more than $300,000. FIU Neighborhood Help - Florida International University's Herbert Wertheim College of Medicine has developed a program to address the social determinants of health. This program pairs interdisciplinary teams of health students - medical, nursing and social work - with families in a low-income area. The teams regularly visit these families, make comprehensive assessments, provide basic care and devise treatment plans. Part of this care is also provided through a mobile health clinic. This support is coordinated with the families' regular medical care providers. Currently, FIU offers this program to families in northwest Miami-Dade. South Miami Hospital partnered with FIU to conduct a baseline health needs survey in a four-census-block area immediately north of the hospital. During FY2015, the hospital completed and achieved a 57% participation rate in the survey. As a result of the study, 100 families have been identified and 60 families have been enrolled in the program. Healthcare Coverage Education and Assistance - Baptist Health educates patients about the importance of primary and preventive care, and thus the importance of health insurance coverage to accessing this care. Essential elements of this education are available coverage options, including government programs and commercial health insurance through traditional means and the health insurance marketplace. Baptist Health expanded its existing Medicaid enrollment assistance resources to include healthcare marketplace application assistance. Availability of Primary and Preventative Care: Increase Primary Care Providers -The United States has a recognized shortage of primary care physicians, and Miami-Dade County has fewer primary care physicians per 1,000 residents than the national average. Making these key healthcare providers available to deliver routine care and manage chronic disease conditions before they flare up into acute episodes is critical to a well-functioning local healthcare system. Recognizing this, Baptist Health plans to invest heavily in increasing the supply of primary care providers within our community. There are a total of 9 primary care centers in operation throughout Miami-Dade County offering care and prevention to our community with extended hours of operation to improve healthcare access to working families. Several of these clinics are located near South Miami Hospital. Support of Primary Care Providers through Continuing Medical Education - Baptist Health provides continuous medical education in support of its primary care providers and allied health professionals through its accredited medical education department. During Fiscal year 2015, Baptist Health South Florida's CONTINUING MEDICAL EDUCATION PROGRAM PROVIDED NEARLY 1,700 HOURS OF CONTINUING MEDICAL EDUCATION, INCLUDING SYMPOSIUMS TARGETING REGIONAL, NATIONAL AND INTERNATIONAL AUDIENCES. IN TOTAL, MORE THAN 21,000 HEALTHCARE PROFESSIONALS ATTENDED MORE THAN 250 COURSES AND EARNED MORE THAN 80,000 CME CREDITS. This benefits the community greatly by keeping the community physicians up to date with the latest techniques in primary care and preve SCHEDULE H PART I, LINE 6A Baptist Health South Florida, Inc. ("BHSF") the hospital's parent organization, prepares an annual community benefit report which includes the charity care and community benefits provided by South Miami Hospital and the other not-for-profit affiliates of BHSF. PART I, LINE 7, COLUMN (F) Bad debt expense of $52,113,509 is included in Form 990 Part IX Line 25 Column (a) but excluded from the denominator for purposes of calculating the percentages on line 7, column f. PART I, LINE 7 Amounts calculated and reported in this table were derived from the most accurate, available sources. Charity care and Means-Tested Government Programs costs are determined using our cost accounting system which captures all inpatients and out patients including emergency room patients. The system also captures all patient pay types - private insurance, Medicare, Medicaid, uninsured and self pay. The costs have been offset by any payments received from Medicaid or any other uncompensated care program. Other Benefits at cost were compiled by our finance department using our cost accounting system or the actual amounts paid where appropriate. PART III, LINE 2 SOUTH MIAMI HOSPITAL estimates the allowance for doubtful accounts by reserving a percentage of accounts receivable based on historical and expected collections, business and economic conditions, trends in reimbursement, and other collection indicators. For receivables associated with services provided to patients who have third-party coverage, including receivables from government agencies, SOUTH MIAMI HOSPITAL analyzes contractually due amounts and provides an allowance for doubtful accounts and a provision for bad debts. For all payor types, when SOUTH MIAMI HOSPITAL can no longer reasonably estimate collectability of an account based on the aging of the balance due and the volatility and unpredictable nature of the amount, SOUTH MIAMI HOSPITAL reserves substantially all amounts due. PART III, LINE 4 The footnote that describes bad debt expense reported in the audited consolidated financial statements of Baptist Health South Florida, Inc., which includes South Miami Hospital, Inc., is as follows: BHSF provides for accounts receivable that could become uncollectible in the future by establishing an allowance to reduce the carrying value of such receivables to their estimated net realizable value. Additions to the allowance for doubtful accounts are made by means of the provision for doubtful accounts. Accounts written off as uncollectible are deducted from the allowance and subsequent recoveries are added. BHSF estimates the allowance for doubtful accounts by reserving a percentage of accounts receivable based on historical and expected collections, business and economic conditions, trends in reimbursement, and other collection indicators. For receivables associated with services provided to patients who have third-party coverage, including receivables from government agencies, BHSF analyzes contractually due amounts and provides an allowance for doubtful accounts and a provision for bad debts. For all payor types, when BHSF can no longer reasonably estimate collectability of an account based on the aging of the balance due and the volatility and unpredictable nature of the amount, BHSF reserves substantially all amounts due. Recoveries on written-off accounts receivable are recorded in the period the recovery occurs as an increase in net patient service revenue through an adjustment to the provision for doubtful accounts. Bad Debt at cost was calculated for Schedule H purposes by applying the cost to charge percentage derived by our cost accounting system against bad debt expense reported on the audited financial statements. PART III, LINE 8 Medicare costs were derived using our cost accounting system which captures all inpatients and outpatients including emergency room patients. The costs have been offset by any payments received from Medicare. The organization does not report any amounts from Part III, Line 7 as community benefit. PART III, LINE 9B In order to promote the health and well-being of the community served, uninsured patients with limited financial resources who are unable to access entitlement programs shall be eligible for free health care services based on established criteria. BHSF has a written debt collection policy. No collection efforts are put forth for patients who are known to qualify for charity care. PART VI, LINE 2 - NEEDS ASSESSMENT South Miami Hospital is part of Baptist Health South Florida, one of the region's most preferred healthcare organizations. They have been committed to serving the community since their founding in 1960. As a faith-based, not-for-profit institution, their mission focuses on providing high-quality, compassionate care to all our patients, including the poor and uninsured. Understanding the role of wellness and prevention in maximizing the opportunities to improve the health and quality of life of the community, South Miami Hospital also offers a multitude of free and low-cost educational programs, exercise classes and health screenings at various locations. New ways are always explored to improve services and expand the ability to meet the healthcare needs of the community. A "community health needs assessment" was conducted to focus on the particular characteristics of patients and the community to precisely pinpoint their specific needs. This assessment serves as a comprehensive tool to increase their knowledge about the people being served and enhance the ability to provide top-level healthcare to the entire community in the most effective manner. South Miami Hospital worked with the Health Council of South Florida to take an in-depth look at the diverse population served, based on such information as inpatient admissions, U.S. Census data and other local, state and national statistics. To gather first-hand input about community's needs, the Health Council conducted focus groups with residents/consumers, healthcare experts and advocates, and our own leaders. Participants were asked about their experiences with South Miami Hospital and their most pressing healthcare issues. Objective data was mined about the patient population, including rates and types of disease, demographics and other information from the U.S. Census. Local public health experts were questioned about their constituents and asked how South Miami Hospital can best use their resources to make the community a healthier and better place. Finally, all the compiled data was analyzed to identify the top healthcare needs and issues in our community. They are: * Access to care. * Availability of primary and preventive care. * Chronic disease management. * Heart disease. * Healthy lifestyles: exercise and nutrition. The community health needs assessment and implementation plans, available on their website at www.BaptistHealth.net, summarizes the details of their comprehensive research and assessment. It includes a description of the community served, the method used to make determinations, a look at the input received from community experts and residents/consumers and, finally, the resulting list of the community's most significant priority healthcare needs. The report also includes a list of existing programs and services that help address the community's priority healthcare needs. These programs are used as a foundation on which to expand and pinpoint their services based on the priorities targeted in this report. This important exercise has helped South Miami Hospital better understand their stakeholders - the people who depend on the organization when they are ill or injured, as well as their families, and the entire community, whose health they strive to improve through educational and preventive measures, innovative partnerships, high-quality care and by being a good corporate citizen. South Miami Hospital is committed to using this enlightening report as a roadmap to plan the best strategies to specifically and effectively address the most pressing healthcare needs of the entire community, with a special focus on the most vulnerable residents. PART VI, LINE 3 - PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE Financial assistance information is provided in multiple locations. Patient registration provides to all patients a one-page information handout about the availability of financial assistance, creating awareness of the charity care program. Patient registration also provides information regarding Baptist Health's charity care policy to all uninsured, non-emergent patients prior to service. All letters and statements to uninsured patients, including those sent by third-party collection agencies, include a reference to financial assistance programs. All public information and forms regarding the provision of charity care use language that is appropriate for the Baptist Health service area. Where possible, prior to the registration of a patient potentially eligible for financial assistance, a financial counselor will conduct a pre-registration interview with the patient. If a pre-registration interview is not possible, the interview is conducted as soon as possible thereafter. In the case of an emergency admission, the evaluation of payment alternatives does not take place until the medical care needed to stabilize the patient has been provided. Those patients who may qualify for financial assistance from a governmental program are referred to the appropriate program such as Medicaid, prior to consideration for charity care. Additionally, information regarding the charity care program and qualifying for financial assistance appears on the website at www.BaptistHealth.net. PART VI, LINE 4 - COMMUNITY INFORMATION Greater Miami is one of the most international communities in the nation. According to the U.S. Census, half of the residents in South Miami Hospital's patient service area are foreign-born, with 75 percent of Latin or Hispanic descent, and 71 percent reporting a language other than English spoken at home. The average household includes three people and the average household income is $70,320, surpassing the average Miami-Dade County household income of $61,035. Twenty-three percent are under 18 years old. Sixty percent are ages 21-64, and 14 percent are age 65 or older. South Miami Hospital serves Greater Miami, including the neighborhoods of Cutler Ridge, Perrine, Downtown/Brickell, Westchester, Kendall, Coral Gables, Coconut Grove and Key Biscayne. This geographical area is home to more than 1 million residents. South Miami Hospital is located at 6200 SW 73 St., Miami, FL 33143. Their patient service area, as determined by the addresses of their inpatients, covers 33 Zip codes. PART VI, LINE 5 - PROMOTION OF COMMUNITY HEALTH In furtherance of its exempt purpose to provide healthcare to improve the health and well-being of individuals and to promote the sanctity and preservation of life in the community it serves, South Miami Hospital opened in 1960 as a 100-bed hospital in what was then a small suburban community. As the area's population increased, South Miami Hospital expanded as well, and currently has 452 licensed beds, consisting of 403 acute care beds, 34 Level II NICU beds, and 15 Level III NICU beds. This expansion responded to the needs of the Greater Miami community. South Miami Hospital currently occupies more than 1,132,400 square feet and is located approximately three miles northeast of Baptist Hospital, 10 miles southwest of downtown Miami, and three miles from the University of Miami and Doctors Hospital, both of which are located in Coral Gables. South Miami Hospital admitted approximately 16,100 inpatients in fiscal year 2015 and more than 36,900 patients received emergency treatment. PART VI, LINE 6 - AFFILIATED HEALTH CARE SYSTEM THE BHSF SYSTEM PROVIDES A COMPREHENSIVE CONTINUUM OF SERVICES, EITHER THROUGH ITS OWN PROGRAMS OR IN COOPERATION WITH OTHER AFFILIATED HOSPITALS AND HEALTH CARE PROVIDERS. THE BHSF SYSTEM'S HEALTH CARE PROGRAMS AND SERVICES INCLUDE THE FOLLOWING: MIAMI CARDIAC & VASCULAR INSTITUTE: MIAMI CARDIAC & VASCULAR INSTITUTE ("MCVI") IS THE LARGEST AND MOST COMPREHENSIVE CARDIOVASCULAR FACILITY IN THE REGION. PATIENTS CAN EXPERIENCE CONSISTENT, EXCEPTIONAL, EVIDENCE-BASED CARE AT INSTITUTE LOCATIONS THROUGHOUT BAPTIST HEALTH. THEIR TEAM OF MULTILINGUAL, MULTIDISCIPLINARY SPECIALISTS HAVE PIONEERED THE DEVELOPMENT OF TECHNOLOGY USED TO TREAT ANEURYSMS, BLOCKAGES IN VEINS AND ARTERIES AND HOLES IN THE HEART. THEY PARTICIPATE IN FEDERALLY APPROVED CLINICAL RESEARCH STUDIES AND OFFER THE MOST MINIMALLY INVASIVE OPTIONS WHENEVER POSSIBLE. MCVI ALSO OFFERS PERSONALIZED EDUCATION AND REHABILITATION SERVICES TO HELP MANAGE EXISTING CONDITIONS AND TO PREVENT CARDIOVASCULAR DISEASE. MCVI ADHERES TO QUALITY STANDARDS ESTABLISHED BY THE AMERICAN COLLEGE OF CARDIOLOGY, SOCIETY OF INTERVENTIONAL RADIOLOGY, AMERICAN COLLEGE OF RADIOLOGY, SOCIETY FOR VASCULAR SURGERY AND SOCIETY OF THORACIC SURGERY. MCVI WAS ESTABLISHED IN 1987 UNDER THE LEADERSHIP OF BARRY T. KATZEN, M.D. DR.KATZEN IS THE RECIPIENT OF THE CARDIOVASCULAR AND RADIOLOGICAL SOCIETY OF EUROPE'S GOLD MEDAL AWARD FOR HIS GROUNDBREAKING WORK IN INTERVENTIONAL RADIOLOGY, INCLUDING THE USE OF STENTS FOR PROPPING OPEN MAJOR BLOOD VESSELS OUTSIDE THE HEART. DR. KATZEN HAS THE DISTINCTION OF BEING THE FIRST AMERICAN TO EARN THE CARDIOVASCULAR AND RADIOLOGICAL SOCIETY OF EUROPE OTHER INFORMATION South Miami Hospital has its own governing board, the members of which consist of representatives of the professional, pastoral and business communities. South Miami Hospital provides medical and surgical services consistent with its status as a tertiary care provider. It also has a highly regarded robotic surgery program. Other services rendered and programs offered at South Miami Hospital include: South Miami Hospital Center for Women & Infants: The Center for Women & Infants was established in fiscal year 2009 bringing all major women and infant service lines under one umbrella, allowing for a more seamless and comprehensive approach to care. Women and infant services include: obstetrics, gynecological care, breast care, women's healthy lifestyle, women's diagnostics, neonatal services and pediatric developmental therapy (Child Development Center). Maternity Services: South Miami Hospital has 29 full-service combination labor-delivery-recovery-postpartum rooms, three operating rooms for C-section procedures, 27 private postpartum beds and a short-term nursery. The Level II NICU is licensed for 23 beds, and the Level III NICU is licensed for 15 beds. More than 4,100 babies were delivered at South Miami Hospital in fiscal year 2015. South Miami Hospital offers all-natural, midwife-assisted births, programs for first-time parents and for mothers with gestational diabetes or other high-risk pregnancies, and the most current treatment methods for medical complications associated with pregnancy. Child Development Center: Opened in 1992, the Child Development Center is staffed by pediatric development specialists including pediatricians, psychologists, physical therapists, occupational therapists, audiologists, social workers and dietitians. These specialists work closely with primary care physicians to provide evaluation and intervention for gifted and challenged infants and children with individualized programs designed to enhance abilities or correct deficiencies. Emergency Center: The Emergency Center at South Miami Hospital, open 24 hours a day, seven days a week, provided treatment to more than 36,900 patients during fiscal year 2015. A new emergency center opened in January 2013 as part of a multimillion dollar expansion project to help the hospital continue meeting its long-standing commitment to the growing healthcare needs of the community. The emergency center at South Miami Hospital includes: * 27 EMERGENCY BEDS, INCLUDING A TRAUMA AND HEART ATTACK ROOM FOR STABILIZING CRITICALLY ILL PATIENTS. * 12 BED CLINICAL DECISION UNIT FOR OBSERVATION PATIENTS. Cardiovascular Services: South Miami Hospital takes a comprehensive approach to the prevention, diagnosis and treatment of cardiovascular disease. As part of Baptist Health's Miami Cardiac & Vascular Institute, South Miami Hospital's cardiovascular care unifies cardiac testing, invasive and non-invasive procedures, pre- and post-care, critical care, telemetry and cardiac rehab under one umbrella to create a seamless flow of patient care. To provide optimal care for all patients, sub-specialties work together in providing a multi-disciplinary comprehensive approach to care. These sub-specialties include: medical cardiology, interventional cardiology, cardiothoracic surgery, interventional radiology, vascular surgery and electrophysiology. South Miami Hospital is accredited by the Society of Chest Pain Centers. Clinical excellence has been enhanced with participation in national registries and the implementation of a research program. The outpatient Heart Rhythm Center provides a reliable and accessible location for regular device checks, while maintaining consistent communication with cardiovascular physicians. Addiction Treatment & Recovery Center: Founded in 1976, South Miami Hospital's Addiction Treatment & Recovery Center has treated over 10,000 people for addiction to alcohol and other mood-changing, mind-altering drugs. The Addiction Treatment & Recovery Center recognizes that addiction is a primary, progressive, predictable and potentially fatal disease. The Center's three-pronged, interdisciplinary approach focuses on education, individual counseling and group therapy. Lung Health Program: South Miami Hospital treats a full range of respiratory conditions with a comprehensive program encompassing diagnosis, education, rehabilitation and therapy. false true false false false false false true false JAVIER HERNANDEZ-LICHTL FORMER CEO 0 408975 0 298157 0 34016 0 63988 0 34328 0 839464 0 66299 LINCOLN S MENDEZ CEO 0 414812 0 288870 0 52685 0 68650 0 43771 0 868788 0 52676 KATHERINE SPARGER CNO 207859 0 316441 0 6447 0 7490 0 32635 0 570872 0 176545 0 RICHARD FREEBURG FORMER COO 0 228805 0 196144 0 22351 0 25447 0 35996 0 508743 0 508743 CAROL BIGGS VP - HEART CENTER 161261 0 117359 0 9868 0 16038 0 24370 0 328896 0 31196 0 DENISE WOODS VP - CENTER FOR WOMEN 167386 0 130346 0 8546 0 23470 0 18257 0 348005 0 41646 0 RAYSA GUITIERREZ DIRECTOR OF PHARMACY 162613 0 28536 0 7114 0 3606 0 12844 0 214713 0 0 0 JEANETTE STONE VP OF OPERATIONS 168368 0 93367 0 16037 0 21386 0 15965 0 315123 0 5909 0 YVONNE JOHNSON MD FORMER PRESIDENT OF MED. STAFF 0 79200 0 0 34740 450 0 1356 0 230 34740 81236 0 0 LOUIS GIDEL MEDICAL DIRECTOR 344282 0 0 0 900 0 6209 0 25389 0 376780 0 0 0 MONICA MANASA EICU MD 388681 0 12984 0 0 0 5113 0 0 0 406778 0 0 0 CARMEN RODRIGUEZ AVP PERIOPERATIVE SVCS 143449 0 33935 0 21444 0 4001 0 23405 0 226234 0 0 0 RUBEN PENARANDA EICU MD 194743 0 5736 0 0 0 4010 0 0 0 204489 0 0 0 SCHEDULE J PART I, QUESTION 7 Key executives who control significant assets or who have a major impact on operations may earn incentive pay, capped at a pre-determined percentage of the executive's base salary. The purpose of incentive pay is to focus executive action on key "performance thresholds" and corporate goals that are approved by the Board's Compensation Committee. The achievement of these goals requires extraordinary effort, commitment and achievement. The incentive component of the executive's total compensation is variable and totally at risk, depending upon the achievement of the agreed-upon goals. SCHEDULE J PART I, QUESTION 4B As part of the Baptist Health South Florida executive benefit plan, executives are eligible to allocate a portion of their flexible spending allowance to a Supplemental Survivor Accumulation Benefit (SSAB) account. The SSAB is a life insurance product that provides a deferred retirement benefit for the executive or a death benefit for the executive's survivors. Contributions to the SSAB may be made annually to the participant's account. All contributions accumulate, along with investment earnings, for the period the executive participates. The executive does not have access to the contributions made or the related investment income, all of which is subject to substantial risk of forfeiture. Pursuant to the SSAB plan guidelines, this benefit is terminated upon an executive reaching age 65, however, payment can be deferred to a date at least two years after reaching age 65 but no later than 68. At that time the entire amount accumulated is paid out in a lump sum. CONTRIBUTIONS TO THE SSAB HAVE BEEN MADE ANNUALLY TO THE ACCOUNT OF KATHERINE SPARGER, CNO OF SOUTH MIAMI HOSPITAL, SINCE HER EMPLOYMENT BEGAN. ALL CONTRIBUTIONS HAVE ACCUMULATED, ALONG WITH INVESTMENT EARNINGS, FOR THIS ENTIRE TIME PERIOD. MS. SPARGER DID NOT HAVE ACCESS TO THE CONTRIBUTIONS MADE OR THE RELATED INVESTMENT INCOME, ALL OF WHICH WAS SUBJECT TO SUBSTANTIAL RISK OF FORFEITURE. PURSUANT TO THE SSAB PLAN GUIDELINES, THIS BENEFIT IS TERMINATED UPON AN EXECUTIVE REACHING AGE 65, AND THE ENTIRE AMOUNT ACCUMULATED IS PAID OUT IN A LUMP SUM. UPON REACHING AGE 65, MS. SPARGER WAS PAID $163,421, THE AMOUNT ACCUMULATED IN HER SSAB ACCOUNT. THIS AMOUNT WAS REPORTED AS TAXABLE WAGES ON HER 2014 FORM W-2 AND APPEARS AS OTHER REPORTABLE COMPENSATION ON SCHEDULE J OF FORM 990. Schedule J Part I, Line 3 The CEO of South Miami Hospital is compensated by Baptist Health South Florida (BHSF), a related organization. The determination of the compensation of the CEO follows the same process delineated herein. The Bylaws of South Miami Hospital delegate the authority to set executive compensation to BHSF. BHSF's Compensation Committee is comprised exclusively of independent Board members who serve voluntarily without any remuneration, and who must adhere to a stringent conflict of interest policy that precludes them or their families from doing business with Baptist Health. The Committee is responsible for reviewing the performance and approving the compensation for executives. The term "compensation" includes salaries, benefits and incentives. The Compensation Committee annually engages a nationally-recognized, independent consultant to conduct compensation surveys and to advise the Board on compensation policies. The Compensation Committee decisions are based on the following: 1. Total Compensation Package: Recruitment and retention of capable, productive executives is accomplished through design of a total compensation package that includes a base salary, at-risk incentive pay, and benefits. It is the objective of Baptist Health to ensure a consistent compensation philosophy across all employee and leadership levels that rewards outstanding performance using a cash plus employee benefits package targeting the 75th percentile. Base salaries of fully productive executives are indexed to the median (50th percentile) salary paid by similar healthcare organizations. Incentive pay for superior achievement provides the opportunity for total cash compensation at the 75th percentile of the executive's peer group if the executive exceeds his/her performance metrics. 2. Performance-based Salary Increases: One of the key elements of Baptist Health's executive compensation philosophy is "pay for performance." Salary increases are based upon the degree to which each executive achieves his/her individual performance objectives for the year, which are tied to corporate objectives. Generally these objectives relate to clinical quality; patient, physician and community satisfaction; charity care and mission goals; financial performance and expense management. Individual and group performance against these objectives is reviewed by the Compensation Committee and Board of Trustees annually after the close of the fiscal year. 3. Market-based Salary Increases: The Board's Compensation Committee reviews the market value of executive positions annually to assure that Baptist Health's pay levels are competitive. The independent consultant, selected by the Compensation Committee, obtains executive salary information for functionally comparable positions at healthcare institutions of comparable size within Florida and the United States. Baptist Health's peer group is comprised of other complex not-for-profit hospital systems of similar size ($2.5 billion in revenues; 16,000 employees), scope (6 hospitals, 17 outpatient centers and a large international service). The peer group does not include for-profit hospitals, whose compensation practices are far more generous (and include such things as stock options and equity/ownership interests). 4. No Guaranteed Salary Increases: There is no guarantee of annual executive salary increases. Salary increases depend upon the organization's ability to pay, the executive's salary in relation to the market, the executive's performance level, and internal pay relationships to peers. 5. At-Risk Incentive Pay: Key executives who control significant assets or who have a major impact on operations may earn incentive pay. The purpose of incentive pay is to focus executive action on key "performance thresholds" and corporate goals that are approved by the Board's Compensation Committee. The achievement of these goals requires extraordinary effort, commitment and achievement. The incentive component of the executive's total compensation is variable and totally at risk, depending upon the achievement of the agreed-upon goals. 6. Perquisites: Baptist Health executives are provided with a common set of perquisites that are typical of other responsible not-for-profit organizations to enable them to more effectively conduct their business. These benefits are deemed by the Compensation Committee to be appropriate and conservative. Perquisites are generally limited to auto and cell phone allowances which are fully taxable to the executive. Other perquisites provided to executives, such as paid time off or reimbursement for relevant educational expenses, are offered to all employees in accordance with enterprise-wide policies and procedures. Business travel for executives on commercial airlines is limited to coach fares (an upgrade to the next available class of service, e.g., business class, may be permitted when the flight duration is in excess of five hours or an overnight accommodation can be avoided). Chartered plane travel, spousal travel, luxury residences for personal use, health, country or social club dues and personal services (such as maid, chauffeur, chef, landscaper) are not provided (or reimbursed) to Baptist Health executives. FORM 990, PART VI, SECTION C LINE 19 DOCUMENTS AVAILABLE TO THE PUBLIC DOCUMENTS THAT ARE REQUIRED TO BE OPEN FOR PUBLIC INSPECTION ARE MADE AVAILABLE UPON REQUEST. IN ADDITION BOTH THE FORM 990 AND AUDITED FINANCIAL STATEMENTS ARE AVAILABLE FOR PUBLIC VIEWING ON THIRD PARTY WEBSITES. THE CONFLICT OF INTEREST POLICY IS AVAILABLE ON WWW.BAPTISTHEALTH.NET. Form 990, Part V, LINE 1a US INFORMATIONAL RETURNS BAPTIST HEALTH SOUTH FLORIDA (BHSF) HAS A SYSTEM-WIDE TREASURY POLICY, WHICH RECOGNIZES ITS RESPONSIBILITY TO OVERSEE, MANAGE, AND COORDINATE ALL AFFILIATE OPERATIONS, INCLUDING THE TREASURY FUNCTIONS. BHSF SERVES AS THE CENTRALIZED CASH RECEIPT AND DISBURSING AGENT FOR ALL BHSF ENTITIES. AS SUCH ONLY BHSF ISSUES US INFORMATIONAL RETURNS. FORM 990, PART V, LINE 2a EMPLOYEES REPORTED ON FORM W-3 BAPTIST HEALTH SOUTH FLORIDA (BHSF)IS THE APPOINTED PAY AGENT FOR ALL OF ITS AFFILIATES. AS SUCH ONLY BHSF ISSUES FORM W-3. FORM 990, PART VI, SECTION B, LINE 15 PERFORMANCE-BASED EXECUTIVE COMPENSATION The South Florida market for highly competent healthcare executives reflects a very competitive environment for qualified executives. It is comprised of large, national, for profit chains and not-for-profit hospital systems and stand-alone hospitals. The Board of Trustees of Baptist Health South Florida seeks executives of vision and leadership to carry out the organization's faith-based mission of quality care and community service. The Board expects these executives to provide leadership that will place Baptist Health among the best healthcare systems in the nation for quality and excellence. The Board expects executives to demonstrate integrity and loyalty in the performance of their duties and to adhere to Baptist Health Conflict of Interest Policy, Executive Code of Conduct and all compliance/ethics policies. Executive compensation is considered the foundation to attract and retain executives with the talent, experience and character to meet these expectations. The CEO of South Miami Hospital is compensated by Baptist Health South Florida (BHSF), a related organization. The determination of the compensation of the CEO follows the same process delineated herein. The Bylaws of South Miami Hospital delegate the authority to set executive compensation to BHSF. BHSF's Compensation Committee is comprised exclusively of independent Board members who serve voluntarily without any remuneration, and who must adhere to a stringent conflict of interest policy that precludes them or their families from doing business with Baptist Health. The Committee is responsible for reviewing the performance and approving the compensation for executives. The term "compensation" includes salaries, benefits and incentives. The Compensation Committee annually engages a nationally-recognized, independent consultant to conduct compensation surveys and to advise the Board on compensation policies. The Compensation Committee decisions are based on the following: 1. Total Compensation Package: Recruitment and retention of capable, productive executives is accomplished through design of a total compensation package that includes a base salary, at-risk incentive pay, and benefits. It is the objective of Baptist Health to ensure a consistent compensation philosophy across all employee and leadership levels that rewards outstanding performance using a cash plus employee benefits package targeting the 75th percentile. Base salaries of fully productive executives are indexed to the median (50th percentile) salary paid by similar healthcare organizations. Incentive pay for superior achievement provides the opportunity for total cash compensation at the 75th percentile of the executive's peer group if the executive exceeds his/her performance metrics. 2. Performance-based Salary Increases: One of the key elements of Baptist Health's executive compensation philosophy is "pay for performance." Salary increases are based upon the degree to which each executive achieves his/her individual performance objectives for the year, which are tied to corporate objectives. Generally these objectives relate to clinical quality; patient, physician and community satisfaction; charity care and mission goals; financial performance and expense management. Individual and group performance against these objectives is reviewed by the Compensation Committee and Board of Trustees annually after the close of the fiscal year. 3. Market-based Salary Increases: The Board's Compensation Committee reviews the market value of executive positions annually to assure that Baptist Health's pay levels are competitive. The independent consultant, selected by the Compensation Committee, obtains executive salary information for functionally comparable positions at healthcare institutions of comparable size within Florida and the United States. Baptist Health's peer group is comprised of other complex not-for-profit hospital systems of similar size ($2.5 billion in revenues; 16,000 employees), scope (6 hospitals, 17 outpatient centers and a large international service). The peer group does not include for-profit hospitals, whose compensation practices are far more generous (and include such things as stock options and equity/ownership interests). 4. No Guaranteed Salary Increases: There is no guarantee of annual executive salary increases. Salary increases depend upon the organization's ability to pay, the executive's salary in relation to the market, the executive's performance level, and internal pay relationships to peers. 5. At-Risk Incentive Pay: Key executives who control significant assets or who have a major impact on operations may earn incentive pay, capped at a pre-determined percentage of the executive's base salary. The purpose of incentive pay is to focus executive action on key "performance thresholds" and corporate goals that are approved by the Board's Compensation Committee. The achievement of these goals requires extraordinary effort, commitment and achievement. The incentive component of the executive's total compensation is variable and totally at risk, depending upon the achievement of the agreed-upon goals. 6. Perquisites: Baptist Health executives are provided with a common set of perquisites that are typical of other responsible not-for-profit organizations to enable them to more effectively conduct their business. These benefits are deemed by the Compensation Committee to be appropriate and conservative. Perquisites are generally limited to auto and cell phone allowances which are fully taxable to the executive. Other perquisites provided to executives, such as paid time off or reimbursement for relevant educational expenses, are offered to all employees in accordance with enterprise-wide policies and procedures. Business travel for executives on commercial airlines is limited to coach fares (an upgrade to the next available class of service, e.g., business class, may be permitted when the flight duration is in excess of five hours or an overnight accommodation can be avoided). Chartered plane travel, spousal travel, luxury residences for personal use, health, country or social club dues and personal services (such as maid, chauffeur, chef, landscaper) are not provided (or reimbursed) to Baptist Health executives. FORM 990 PART VI, LINE 12 EMPLOYEE CONFLICT OF INTEREST POLICY AN ACTUAL, POTENTIAL OR PERCEIVED CONFLICT OF INTEREST OCCURS IN THOSE CIRCUMSTANCES WHERE AN EMPLOYEE'S JUDGEMENT COULD BE AFFECTED BECAUSE THE EMPLOYEE HAS A PERSONAL INTEREST, OTHER THAN THE RECEIPT OF COMPENSATION FROM BAPTIST HEALTH SOUTH FLORIDA, INC. AND ITS AFFILIATES ("BHSF"), IN THE OUTCOME OF A DECISION OVER WHICH THE EMPLOYEE HAS CONTROL OR INFLUENCE. FOR THE PURPOSES OF THIS POLICY, IT IS PRESUMED THAT MANAGERS HAVE CONTROL OR INFLUENCE OVER ANY DECISION AFFECTING A MATTER FOR WHICH A MANAGER HAS RESPONSIBILITY. A PERSONAL INTEREST EXISTS WHEN AN EMPLOYEE OR A MEMBER OF HIS OR HER FAMILY STANDS TO DIRECTLY OR INDIRECTLY OBTAIN FINANCIAL GAIN AS A RESULT OF A DECISION. THIS POLICY IS INTENDED FOR ALL EMPLOYEES IN ORDER THAT THEY MAY UNDERSTAND, IDENTIFY, MANAGE AND APPROPRIATELY DISCLOSE THOSE TRANSACTIONS WHICH COULD RESULT IN AN ACTUAL, POTENTIAL OR PERCEIVED CONFLICT OF INTEREST. IN ACCORDANCE WITH OUR CODE OF ETHICS, HIGH ETHICAL STANDARDS MUST BE OBSERVED IN THE NEGOTIATION AND EXECUTION OF ALL BUSINESS ACTIVITIES CONDUCTED AT, BY OR WITH BHSF. ANY DECISIONS MADE BY BHSF EMPLOYEES MUST BE MADE IN COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS, WITH THE BEST ORGANIZATIONAL INTERESTS OF BHSF AS THE HIGHEST PRIORITY AND WITHOUT REGARD TO THE PERSONAL GAIN OR INTEREST OF ANY OTHER PERSON OR ENTITY. LIKEWISE, THE APPEARANCE OF ANY SUCH IMPROPER INFLUENCE ON ANY DECISIONS SHOULD BE CONSCIOUSLY AVOIDED. EMPLOYEES SHOULD ALSO ADHERE TO POLICY 828 WHICH PROHIBITS VENDOR SPONSORED TRAVEL AND POLICY 829 LIMITING ACCEPTANCE OF PERSONAL HONORARIUMS AND POLICY 831 WHICH PROVIDES LIMITATIONS AND GUIDELINES ON PHILANTHROPIC SOLICITATION OF VENDORS. A POTENTIAL OR PERCEIVED CONFLICT OR INTEREST MAY EXIST IRRESPECTIVE OF THE INTENT OF THE EMPLOYEE. FORM 990 PART VI, LINE 12 C ENFORCEMENT AND MONITORING OF CONFLICT OF INTEREST POLICY ONE OF BAPTIST HEALTH SOUTH FLORIDA'S GREATEST ASSETS IS THE INTEGRITY OF ITS VOLUNTEER BOARD MEMBERS. ONE WAY TO ASSURE INTEGRITY IS THEIR COMMITMENT TO A STRINGENT CONFLICT OF INTEREST POLICY FOR THEIR GOVERNING BOARDS AND MANAGEMENT. AS A PART OF A ROBUST CONFLICT OF INTEREST POLICY, BOARD MEMBERS MUST ANNUALLY COMPLETE A CONFLICT OF INTEREST DECLARATION FORM. THE AUDIT AND COMPLIANCE DEPARTMENT MONITOR TO ENSURE ALL VOTING MEMBERS SUBMIT THE DECLARATION FORM AND PERFORM NECESSARY RESEARCH TO UNDERSTAND IF A POTENTIAL CONFLICT EXISTS. ALL DISCLOSURES AND THE RELATED RESEARCH ARE SUMMARIZED FOR THE ETHICS COMMITTEE OF THE BAPTIST HEALTH BOARD OF TRUSTEES. ANY DISCLOSURES THAT MAY RESULT IN THE APPEARANCE OF A CONFLICT ARE ADDRESSED BY THE COMMITTEE FOR ITS CONSIDERATION AND RESOLUTION. FORM 990, PART VI, SECTION B LINE 12 BOARD CONFLICT OF INTEREST POLICY BAPTIST HEALTH AND ITS AFFILIATES HAVE A STRONG AND ROBUST CONFLICT OF INTEREST POLICY. THE POLICY IS MEANT TO ENSURE THAT EACH VOTING MEMBER OF THE BOARD OF TRUSTEES GOVERNS THE AFFAIRS OF BAPTIST HEALTH WITH HONESTY AND INTEGRITY AND MAKES DECISIONS FOR THE BENEFIT OF BAPTIST HEALTH. VOTING BOARD MEMBERS MAY NOT BE EMPLOYED BY BAPTIST HEALTH NOR ENGAGED TO PROVIDE SERVICES TO BAPTIST HEALTH IN EXCHANGE FOR CASH COMPENSATION. CONFLICT FREE DECISION MAKING EXTENDS BEYOND THE BOARD MEMBERS. TRANSACTIONS THAT MIGHT BENEFIT (I) THE PRIVATE INTEREST OF A MEMBER OR HIS OR HER FAMILY (II) AN ORGANIZATION CONTROLLED BY A MEMBER OF HIS OR HER FAMILY (III) AN ORGANIZATION IN WHICH A MEMBER OR HIS OR HER FAMILY HAS A MATERIAL INTEREST. SINCE THE APPEARANCE OF A CONFLICT OF INTEREST MAY BE AS DAMAGING TO BAPTIST HEALTH'S REPUTATION AS ACTUALLY PERMITTING A CONFLICT TO EXIST, EACH BOARD MEMBER HAS A CONTINUING OBLIGATION TO DISCLOSE ANY POTENTIAL CONFLICTS. THIS CONTINUING OBLIGATION IS SUPPLEMENTED BY AN ANNUAL CERTIFICATION THAT THE BOARD MEMBER IS FREE FROM ACTUAL OR POTENTIAL CONFLICTS OF INTEREST. THE ANNUAL CERTIFICATION IS REVIEWED BY THE VICE PRESIDENT OF COMPLIANCE WHO REPORTS DIRECTLY TO THE BOARD. POTENTIAL CONFLICTS ARE FURTHER REVIEWED BY THE BOARD'S ETHICS COMMITTEE. IF A CONFLICT DOES EXIST, THE CONFLICTED BOARD MEMBER MAY BE REQUIRED TO (I) RESIGN FROM THE BOARD OR (II) ELIMINATE THE RELATIONSHIP WHICH GIVES RISE TO THE CONFLICT. FORM 990, PART VI, SECTION B, LINE 11B PROCESS FOR REVIEWING FORM 990 THE MANAGEMENT OF BAPTIST HEALTH SOUTH FLORIDA (BHSF) IS RESPONSIBLE FOR THE ACCURACY AND COMPLETENESS OF THE TAX RETURNS OF BHSF AND ALL OF ITS NONPROFIT, CHARITABLE AFFILIATES. THIS FORM 990 HAS BEEN PREPARED IN CONFORMITY WITH THE INTERNAL REVENUE CODE AND TREASURY REGULATIONS. INDEPENDENT TAX CONSULTANTS AND MEMBERS OF MANAGEMENT HAVE REVIEWED IN DETAIL THE COMPLETED FORM 990. PRIOR TO FILING, THE FORM 990 PREPARATION PROCESS AND THE DOCUMENTS ARE DISCUSSED AT A MEETING OF THE FINANCE & INSURANCE COMMITTEE OF THE BOARD OF TRUSTEES AND MADE AVAILABLE ELECTRONICALLY TO ALL MEMBERS OF THE BOARD OF TRUSTEES FOR REVIEW AND COMMENTARY. ADDITIONALLY THE EXECUTIVE AND COMPENSATION COMMITTEES OF THE BHSF BOARD OF TRUSTEES, COMPOSED OF INDEPENDENT UNCOMPENSATED MEMBERS, REVIEW OTHER PERTINENT AREAS OF THE RETURN. THE PRESIDENT AND CEO AS WELL AS THE EXECUTIVE VICE PRESIDENT AND CFO HEREBY CERTIFY AS TO THE ACCURACY AND COMPLETENESS OF THIS FORM 990. FORM 990 PART VI LINE 7a & 7b GOVERNING AND MANAGEMENT THIS ORGANIZATION IS PART OF BAPTIST HEALTH SOUTH FLORIDA, AN INTEGRATED HEALTH CARE DELIVERY SYSTEM. THE BOARD OF TRUSTEES OF BAPTIST HEALTH SOUTH FLORIDA HAS THE RIGHT TO APPROVE OR RATIFY CERTAIN CORPORATE DECISIONS OF THE ORGANIZATION AND TO APPOINT SOME BOARD MEMBERS TO THE HOSPITAL'S BOARD OF DIRECTORS. Schedule J Part II Column (B)(ii) Executive Compensation All executive compensation is reviewed and approved annually by the compensation committee which is comprised of independent uncompensated members of the Board of Trustees who have certified that they have no conflict of interest with the organization. Reportable compensation includes base salary as well as payments under a formal incentive plan which rewards successful achievement of quality, mission, charity care, and financial corporate objectives. Part IV, Line 24a DISCLOSURE ON BONDS INFORMATION All bond liabilities will be reported at the parent level, on Schedule K of Baptist Health South Florida, Inc.'s 2014 Form 990. FORM 990, PART XI, LINE 9 CHANGES IN NET ASSETS/FUND BALANCE OTHER CHANGES IN NET ASSETS OR FUND BALANCES: CHANGE IN POST RETIREMENT HEALTH OBLIGATION -7,832,913 BENEFICIAL INTEREST IN NET ASSETS OF BHSF FOUNDATION 898,699 EQUITY TRANSFER -6,304,799 ___________ TOTAL -13,239,013 FORM 990, PART VII The amounts appearing as reportable compensation on Form 990 Part VII for volunteer board members are composed of either payments for services as an elected representative of the medical staff, non-clinical services rendered to Baptist Health South Florida or its affiliates which make possible an important administrative function, or minor discounts on clinical services received at a Baptist Health South Florida facility. All of these amounts are reported in accordance with the rules and regulations pertaining to IRS Forms W-2 and 1099 respectively. FORM 990, PART VI, SECTION A, LINE 4 CHANGES TO ORGANIZATIONAL DOCUMENTS THE ARTICLES OF INCORPORATION OF SOUTH MIAMI HOSPITAL, INC WERE AMENDED AND RESTATED DURING THE FISCAL YEAR AS FOLLOWS: 1. THE EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS OF BAPTIST HEALTH SOUTH FLORIDA FOUNDATION, INC MAY APPOINT A VOTING MEMBER OF THE BOARD OF DIRECTORS OF THE FOUNDATION TO SERVE AS VOTING MEMBER OF THE BOARD OF DIRECTORS OF SOUTH MIAMI HOSPITAL ("THE CORPORATION"). 2. IF THE PRESIDENT OF THE MEDICAL STAFF IS EMPLOYED BY THE CORPORATION, OR ANY OF ITS AFFILIATES, THEN THE PRESIDENT OF THE MEDICAL STAFF SHALL SERVE AS A NON-VOTING MEMBER OF THE BOARD DURING THE TIME HE OR SHE IS EMPLOYED. 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