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 462597739 BAPTIST HEALTH MEDICAL GROUP INC % FINANCE DEPARTMENT BAPT 7866627000 6855 RED ROAD SUITE 600 CORAL GABLES FL 33143 MATTHEW ARSENAULT VP OF FINANCE 2016-08-03 2014 2016-09-27 15:27:22Z BERNARDO FERNANDEZ 6855 RED ROAD STE 600 CORAL GABLES FL 33143 109427092 false X WWW.BAPTISTHEALTH.NET X 2012 FL SEE STATEMENT 1 10 10 639 23 249645 15997 0 75271 0 108524655 0 5985 0 821181 0 109427092 0 0 0 0 0 75697022 0 0 0 0 84981305 0 160678327 0 -51251235 0 22257717 0 308676041 0 -286418324 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. true false 143100313 109345836 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. 143100313 true true false false false false false false false false true false false true true true false true false false false false false false false false false 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 false false false false false false false false false false false false false X 10 10 false false false 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 SUITE 200 CORAL GABLES FL 33143 X HERBERT H GREENE MD CHAIRMAN 2.0 4.0 X 331 0 0 JOYCE ELAM DIRECTOR 2.0 6.0 X 0 0 0 WILLIAM TILLETT DIRECTOR 2.0 8.0 X 1942 0 0 REV WILLIAM CHAMBERS III DIRECTOR 2.0 4.0 X 0 0 0 PHIL CONWAY DIRECTOR 2.0 0.0 X 0 0 0 S LAWRENCE KAHN III DIRECTOR 2.0 2.0 X 200 0 0 NORMAN KENYON MD DIRECTOR 2.0 4.0 X 0 0 0 RAMON OYARZUN DIRECTOR 2.0 2.0 X 2172 0 0 LLOYD WRUBLE DMD DIRECTOR 2.0 0.0 X 650 0 0 JACK B YAFFA MD DIRECTOR 2.0 0.0 X 504 0 0 AUDRA HILL DIRECTOR 2.0 2.0 X 825 0 0 JACK ZIFFER MD EVP 0.0 50.0 X 0 772828 121604 BERNARDO FERNANDEZ MD CEO 0.0 50.0 X 0 493881 2180 PHILIPP LUDWIG VP OF OPERATIONS 0.0 50.0 X 0 350969 73128 JOHN ZVIJAC MD ORTHOPEDIC SURGEON 0.0 50.0 X 0 1496023 39446 JOHN URIBE MD ORTHOPEDIC SURGEON 0.0 50.0 X 0 1409341 51686 THOMAS SAN GIOVANNI MD ORTHOPEDIC SURGEON 0.0 50.0 X 0 1157745 43958 KEITH HECHTMAN MD ORTHOPEDIC SURGEON 0.0 50.0 X 0 1139407 43169 SERGIO GONZALEZ-ARIAS MD NEUROSURGEON 0.0 50.0 X 0 1092070 12855 6624 7912264 388026 164 false true false ARELLANO CONSTRUCTION 7051 SW 12 ST MIAMI FL 33144 CONSTRUCTION 2779200 QUALITY SYSTEMS INC PO BOX 809390 CHICAGO IL 60680 SERVICE CONTRACTS 2445402 INTEGRATED HEALTHCARE STRATEGIES DEPT 41173 PO BOX 650823 DALLAS TX 75265 CONSULTING 282458 THEODORE FELDMAN MD PA 9301 SW 62 COURT PINECREST FL 33156 MEDICAL SERVICES 213000 NUANCE COMMUNICATIONS INC PO BOX 7247-6924 PHILADELPHIA PA 19170 COMMUNICATION 188057 14 75271 75271 NET PATIENT REVENUE 621300 97586760 97586760 GRANT REVENUE 900099 483059 483059 PHARMACY REVENUE 446110 8321503 8071858 249645 PHYSICS & DOSIMETRY REVENUE 621300 2133333 2133333 108524655 5622 5622 0 0 0 0 0 363 0 363 363 363 0 0 0 OTHER REVENUE 900099 542861 542861 E.H.R. INCENTIVE REVENUE 900099 278320 278320 821181 109427092 109096191 249645 5985 0 0 0 0 162180 162180 0 66710198 56841521 9868677 2318373 1970617 347756 3822533 3249153 573380 2683738 2281177 402561 0 15532 15532 0 0 0 0 8835785 7269297 1566488 1438389 1150711 287678 1646138 1316910 329228 1978651 1582921 395730 0 4793331 3834665 958666 437487 349990 87497 0 27944 22355 5589 0 0 983206 786565 196641 8584678 8087338 497340 MEDICAL SUPPLIES 36615026 36615026 PROVISION FOR BAD DEBTS 12609360 12609360 CHARITY CARE 4485360 4485360 COLLECTIONS EXPENSE 1721234 1721234 809184 647347 161837 160678327 143100313 17578014 0 X 0 4427 0 0 0 0 0 9607024 0 0 0 0 0 0 0 1213281 0 2589650 12033023 4369883 0 7663140 0 0 0 0 0 0 0 0 0 1180195 0 22257717 0 27428148 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 281247893 0 308676041 X 0 -286418324 0 0 0 0 0 -286418324 0 22257717 X -51251235 -235167089 X false true X true false X 0 0 0 0 75271 75271 108275010 108275010 0 0 0 0 0 0 0 108350281 108350281 0 1194666 1194666 1194666 1194666 107155615 5622 5622 249645 249645 255267 255267 0 821544 821544 0 0 0 0 109427092 109427092 X 0.00000 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 164833 19231 145602 0 5845403 1604027 4241376 0 5162490 2746625 2415865 0 860297 0 860297 7663140 OTHER RECEIVABLES 1174940 SECURITY DEPOSITS 5255 1180195 0 SELF INSURANCE RESERVES 1808900 DUE TO AFFILIATES 279438993 281247893 X 229472950 120046221 120046221 109426729 363 363 109427092 343997920 200414313 200414313 143583607 17094720 17094720 160678327 SCEDULE D, PART XI, LINE 2D REVENUE, GAIN, AND OTHER SUPPORT INCLUDED IN BOOKS, NOT IN FORM 990 DESCRIPTION AMOUNT CHARITY CARE -4,485,360 PROVISION FOR BAD DEBT -12,609,360 REVENUE OF AFFILIATES 137,140,941 ___________ TOTAL 120,046,221 SCHEDULE D, PART XI, LINE 4B REVENUE, GAIN, AND OTHER SUPPORT IN FORM 990, NOT IN BOOKS DESCRIPTION AMOUNT GAIN ON SALE OF ASSET 363 ______ TOTAL 363 SCHEDULE D, PART XII, LINE 2D OTHER EXPENSES AND LOSSES IN BOOKS, NOT IN FORM 990 DESCRITION AMOUNT GAIN ON SALE OF ASSET -363 EXPENSES OF AFFILIATES 200,414,676 __________ TOTAL 200,414,313 SCHEDULE D, PART XII, LINE 4B OTHER EXPENSES AND LOSSES IN FORM 990, NOT IN BOOKS DESCRIPTION AMOUNT CHARITY CARE 4,485,360 PROVISION FOR BAD DEBT 12,609,360 __________ TOTAL 17,094,720 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. false true false false false false false true false JACK ZIFFER MD EVP 0 445858 0 308846 0 18124 0 64227 0 57377 0 894432 0 61802 BERNARDO FERNANDEZ MD CEO 0 457695 0 28880 0 7306 0 526 0 1654 0 496061 0 0 PHILIPP LUDWIG VP OF OPERATIONS 0 208877 0 130050 0 12042 0 35326 0 37802 0 424097 0 0 JOHN ZVIJAC MD ORTHOPEDIC SURGEON 0 1338060 0 155563 0 2400 0 13727 0 25719 0 1535469 0 0 JOHN URIBE MD ORTHOPEDIC SURGEON 0 1337674 0 62500 0 9167 0 12482 0 39204 0 1461027 0 0 THOMAS SAN GIOVANNI MD ORTHOPEDIC SURGEON 0 1060070 0 91107 0 6568 0 9338 0 34620 0 1201703 0 0 KEITH HECHTMAN MD ORTHOPEDIC SURGEON 0 990664 0 140099 0 8644 0 10859 0 32310 0 1182576 0 0 SERGIO GONZALEZ-ARIAS MD NEUROSURGEON 0 1089070 0 0 0 3000 0 0 0 12855 0 1104925 0 0 SCHEDULE J, PART I, LINE 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, LINE 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. SCHEDULE J, PART I, LINE 3 The determination of the compensation of the CEO follows the same process delineated herein. The Bylaws of Baptist Health Medical Group 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. SCHEDULE J, PART II Baptist Health Medical Group, Inc. is the sole member of Baptist Health Medical Group Physicians, LLC, Baptist Health Medical Group Orthopedics, LLC, Baptist Health Medical Group Oncology, LLC, Baptist Health Medical Group Upper Keys, LLC, Miami Beach Wellness Group, LLC, and Miami Beach Specialty Physicians, LLC as of February 1, 2015. Additionally, Baptist Health Medical Group Oncology, LLC is the sole member of Oncology Specialty Pharmacy, LLC. Prior to this date, the sole member of these disregarded entities was Baptist Health South Florida, Inc., a related tax-exempt organization. The CY2014 reportable compensation for officers, key employees, and highest compensated employees was paid by Baptist Health South Florida, Inc., the sole member during the 2014 calendar year. This compensation is being reported on the Form 990 Part VII and Schedule J for both Baptist Health South Florida, Inc., as reportable compensation from the organization, and Baptist Health Medical Group, Inc., as reportable compensation from related organization. FORM 990, PART VI, QUESTION 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 determination of the compensation of the CEO follows the same process delineated herein. The Bylaws of Baptist Health Medical Group 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, QUESTION 12 EMPLOYEE CONFLICT OF INTEREST 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 OF INTEREST MAY EXIST IRRESPECTIVE OF THE INTENT OF THE EMPLOYEE. FORM 990, PART VI, QUESTION 12 BOARD CONFLICT OF INTEREST 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, QUESTION 12C 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 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 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 BODY 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. 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 -71,270 BEGINNING FUND BALANCE -212,166,511 NET INCOME PRIOR TO OWNERSHIP CHANGE -22,929,308 _____________ TOTAL -235,167,089 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 VII Baptist Health Medical Group, Inc. is the sole member of Baptist Health Medical Group Physicians, LLC, Baptist Health Medical Group Orthopedics, LLC, Baptist Health Medical Group Oncology, LLC, Baptist Health Medical Group Upper Keys, LLC, Miami Beach Wellness Group, LLC, and Miami Beach Specialty Physicians, LLC as of February 1, 2015. Additionally, Baptist Health Medical Group Oncology, LLC is the sole member of Oncology Specialty Pharmacy, LLC. Prior to this date, the sole member of these disregarded entities was Baptist Health South Florida, Inc., a related tax-exempt organization. The CY2014 reportable compensation for officers, key employees, and highest compensated employees was paid by Baptist Health South Florida, Inc., the sole member during the 2014 calendar year. This compensation is being reported on the Form 990 Part VII and Schedule J for both Baptist Health South Florida, Inc., as reportable compensation from the organization, and Baptist Health Medical Group, Inc., as reportable compensation from related organization. FORM 990, PART III, LINE 2A BAPTIST HEALTH MEDICAL GROUP, INC'S OPERATIONS DID NOT BEGIN UNTIL FY2015. BAPTIST HEALTH MEDICAL GROUP PHYSICIANS 6855 RED ROAD STE 600 CORAL GABLES FL 33143 205155995 PHY. PRACTICE FL 37642472 9973940 BHMG BAPTIST HEALTH MEDICAL GROUP ORTHOPEDICS 6855 RED ROAD STE 600 CORAL GABLES FL 33143 260886056 PHY. PRACTICE FL 12279694 1994645 BHMG BAPTIST HEALTH MEDICAL GROUP ONCOLOGY 6855 RED ROAD STE 600 CORAL GABLES FL 33143 471859521 PHY. PRACTICE FL 49255013 8756611 BHMG BAPTIST HEALTH MEDICAL GROUP UPPER KEYS 6855 RED ROAD STE 600 CORAL GABLES FL 33143 260307415 PHY. PRACTICE FL 868051 120870 BHMG MIAMI BEACH SPECIALTY PHYSICIANS 6855 RED ROAD STE 600 CORAL GABLES FL 33143 453946577 PHY. PRACTICE FL 762228 78596 BHMG MIAMI BEACH WELLNESS GROUP 6855 RED ROAD STE 600 CORAL GABLES FL 33143 454302848 PHY. PRACTICE FL 233732 247835 BHMG ONCOLOGY SPECIALTY PHARMACY 6855 RED ROAD STE 600 CORAL GABLES FL 33143 201780112 PHARMACY FL 8321503 1036971 BHMG ONCOLOG BAPTIST HEALTH SOUTH FLORIDA 6855 RED ROAD STE 600 CORAL GABLES FL 33143 650267668 SUPPORT FL 501(C)(3) 11C, TYPE 3 NA false BAPTIST HOSPITAL OF MIAMI 8900 N KENDALL DRIVE MIAMI FL 33176 590910342 HOSPITAL FL 501(C)(3) 3 BHSF false BHSF REAL ESTATE FOUNDATION 6855 RED ROAD CORAL GABLES FL 33143 650611015 SUPPORT FL 501(C)(3) 11A, TYPE 1 BHSF false HOMESTEAD HOSPITAL 975 BAPTIST WAY HOMESTEAD FL 33033 650232993 HOSPITAL FL 501(C)(3) 3 BHSF false SOUTH MIAMI HOSPITAL 6200 SW 73 ST SOUTH MIAMI FL 33143 590872594 HOSPITAL FL 501(C)(3) 3 BHSF false MARINERS HOSPITAL 91500 OVERSEAS HIGHWAY TAVERNIER FL 33070 591987355 HOSPITAL FL 501(C)(3) 3 BHSF false WEST KENDALL BAPTIST HOSPITAL 9555 SW 162 AVE MIAMI FL 33196 522438452 HOSPITAL FL 501(C)(3) 3 BHSF false BAPTIST HEALTH SOUTH FLORIDA FOUNDATION 6855 RED ROAD STE 600 CORAL GABLES FL 33143 591923401 FUNDRAISING FL 501(C)(3) 7 BHSF false BAPTIST OUTPATIENT SERVICES 6855 RED ROAD STE 600 CORAL GABLES FL 33143 562290370 MED. DIAG. FL 501(C)(3) 3 BHSF false DOCTORS HOSPITAL 5000 UNIVERSITY DRIVE CORAL GABLES FL 33146 043775926 HOSPITAL FL 501(C)(3) 3 BHSF false MIAMI CANCER INSTITUTE AT BAPTIST HEALTH 6855 RED ROAD STE 600 CORAL GABLES FL 33143 473090066 HEALTHCARE FL APPLIED FOR APPLIED FOR BHSF false BAPTIST HEALTH ENTERPRISES INC 6855 RED ROAD STE 600 CORAL GABLES FL 33143 592572862 REAL ESTATE MGMT FL BHSF C 0 0 false SAMARITAN RISK RETENTION GROUP 7301 RIVERS AVENUE STE 230 NORTH CHARLESTON SC 29406 203433505 INSURANCE SC BHSF C 0 0 false PINEAPPLE INSURANCE COMPANY 23 LIME TREE BAY AVE PO BOX 1051 GRAND CAYMAN CJ KY1-1102 980465790 INSURANCE CJ BHSF C 0 0 false BMAB EAST TOWER INC 6855 RED ROAD STE 600 CORAL GABLES FL 33143 654047110 LEASE OFFICE FL BHE C 0 0 false BAPTIST MEDICAL SERVICES CORP 6855 RED ROAD STE 600 CORAL GABLES FL 33143 650506620 HOLDING COMPANY FL BHE C 0 0 false KENDALL CREDIT & BUSINESS SERVICES INC 6855 RED ROAD STE 600 CORAL GABLES FL 33143 650434778 COLLECTION AGENCY FL BHE C 0 0 false WEST KENDALL PROFESSIONAL SERVICES INC 6855 RED ROAD STE 600 CORAL GABLES FL 33143 650475570 COLLECTIONS FL BHE C 0 0 false SOUTH MIAMI HEALTH ENTERPRISES INC 6855 RED ROAD STE 600 CORAL GABLES FL 33143 592623930 MEDICAL CENTER FL BHE C 0 0 false BAPTIST MEDICAL TRANSPORT SERVICES INC 6855 RED ROAD STE 600 CORAL GABLES FL 33143 650732544 TRANSPORT PATIENT FL BHE C 0 0 false EAST KENDALL INVESTMENTS INC 6855 RED ROAD STE 600 CORAL GABLES FL 33143 650593165 REAL ESTATE RENTL FL BHE C 0 0 false BAPTIST AMBULATORY SERVICE INC 6855 RED ROAD STE 600 CORAL GABLES FL 33143 421573814 HOLDING COMPANY FL BHE C 0 0 false BHE REALTY INC 6855 RED ROAD STE 600 CORAL GABLES FL 33143 900152617 R. ESTATE BROKER FL BHE C 0 0 false BAPTIST ANCILLARY SERVICES INC 6855 RED ROAD STE 600 CORAL GABLES FL 33143 550800138 HOLDING COMPANY FL BHE C 0 0 false false false true false false false false false false false true false true true false false false false true