2015-11-16T10:36:08-06:00 2014-12-31 WithumSmithBrown PC 465 South St Ste 200 Morristown NJ 079606497 990 2014-01-01 210660835 SHORE MEMORIAL HOSPITAL % DAVID R HUGHES SHOR 6096533545 100 MEDICAL CENTER WAY SOMERS POINT NJ 082442387 DAVID HUGHES CFO 9738989494 2015-11-11 true Scott J Mariani P00642486 9738989494 2014 2016-02-25 16:41:14Z RONALD W JOHNSON 100 MEDICAL CENTER WAY SOMERS POINT NJ 082442387 187995121 false X WWW.SHOREMEDICALCENTER.ORG X 1942 NJ TO CARE FOR & RESPECT ALL PATIENTS, THEIR FAMILIES & EACH OTHER & TO THAT END PLEDGE TO PROVIDE YOU WITH THE HIGHEST QUALITY HEALTHCARE & TO MAINTAIN A SAFE PATIENT ENVIRONMENT. 22 21 1330 360 -1286424 -1286424 2297025 2891375 195756250 180708089 4448999 3295274 1341225 1036903 203843499 187931641 0 109800 0 0 102994458 88134586 0 0 465962 104706819 100363719 207701277 188608105 -3857778 -676464 267189486 264620593 185957158 211368166 81232328 53252427 X TO CARE FOR AND RESPECT ALL PATIENTS, THEIR FAMILIES AND EACH OTHER AND TO THAT END PLEDGE TO PROVIDE YOU WITH THE HIGHEST QUALITY HEALTHCARE AND TO MAINTAIN A SAFE PATIENT ENVIRONMENT. PLEASE REFER TO THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT INCLUDED IN SCHEDULE O. false false 70596653 0 55645901 Expenses incurred in providing medically necessary inpatient medical services (excludes surgical cases and maternal child health), to all individuals in a non-discriminatory manner regardless of race, color, creed, sex, national origin, religion or ability to pay. During 2014, the organization had 6,266 admissions for a total of 29,114 patient days. Please refer to Schedule O for the organization's community benefit statement. 17726982 0 16221863 Expenses incurred in providing medically necessary same day surgery services to all individuals in a non-discriminatory manner regardless of race, color, creed, sex, national origin, RELIGION or ability to pay. During 2014, the organization performed 3,468 same day surgical procedures. Please refer to Schedule O for the organization's community benefit statement. 10056354 0 12088138 Expenses incurred in providing medically necessary maternal and pediatric inpatient services to all individuals in a non-discriminatory manner regardless of race, color, creed, sex, national origin, RELIGION or ability to pay. During 2014, the organization had 1,457 admissions for a total of 3,828 patient days. Please refer to Schedule O for the organization's community benefit statement. 55527358 109800 96752187 153907347 true true false true false false false false false true true false true true true true false true false false false false false false false false true true true false true true false false false false false false false false false false false false false false true true true true false false true 605 0 true 1330 true true true false false false false false false false false X 22 21 false false false false true true true true true false false true true true true true true true true false NJ X DAVID R HUGHES 6096533545 100 MEDICAL CENTER WAY SOMERS POINT NJ 082442387 X GERALD J CORCORAN ESQ CHAIRMAN - TRUSTEE 1.0 0.0 X X 0 0 0 ROBERT J BRAY DDS MS VICE CHAIRMAN - TRUSTEE 1.0 0.0 X X 0 0 0 SANDY TZAFEROS PHARMD SECRETARY/ASST TREAS - TRUSTEE 1.0 0.0 X X 0 0 0 RONALD B STABLINI CPA MBA TREAS/ASST SECRETARY - TRUSTEE 1.0 0.0 X X 0 0 0 AUTUMN BAYLES TRUSTEE 1.0 0.0 X 0 0 0 DAVID BEYEL TRUSTEE 1.0 0.0 X 0 0 0 AUGGIE CIPOLLINI TRUSTEE 1.0 0.0 X 0 0 0 PATRICIA Q CONNOLLY TRUSTEE 1.0 0.0 X 0 0 0 FERNANDO DELASOTTA MD TRUSTEE 1.0 0.0 X 0 0 0 ARTHUR T FORD III ESQ TRUSTEE 1.0 0.0 X 0 0 0 JAMES FRASER EX-OFFICIO TRUSTEE 1.0 0.0 X 0 0 0 CAROL L GAFFNEY RN BSN TRUSTEE 1.0 0.0 X 0 0 0 LEONARD T GALLER MD TRUSTEE 1.0 0.0 X 4238 0 0 JAY A GILLIAN TRUSTEE 1.0 0.0 X 0 0 0 R SCOTT HALLIDAY TRUSTEE 1.0 0.0 X 0 0 0 RONALD W JOHNSON TRUSTEE - PRESIDENT/CEO 50.0 0.0 X X 880685 0 136182 EDWARD KUEHNLE TRUSTEE 1.0 0.0 X 0 0 0 ROBIN A MEADOWS MD TRUSTEE 1.0 0.0 X 0 0 0 GARY G SCHAFFER TRUSTEE 1.0 0.0 X 0 0 0 SCOTT STRENGER MD EX-OFFICIO TRUSTEE 1.0 0.0 X 0 0 0 HON CARMINE J TAGLIALATELLA TRUSTEE 1.0 0.0 X 0 0 0 RICHARD L TRAA TRUSTEE 1.0 0.0 X 0 0 0 ROBERT J BEACH MD TRUSTEE (1/1/14-12/1/14) 1.0 0.0 X 0 12000 0 LOUIS P DESCIOLI TRUSTEE (1/1/14-10/2/14) 1.0 0.0 X 0 0 0 DAVID R HUGHES CHIEF FINANCIAL OFFICER 50.0 0.0 X 338924 0 25192 LINDA S KENWOOD COO/CNO 50.0 0.0 X 289416 0 36216 JEANNE M ROWE CHIEF MEDICAL OFFICER 50.0 0.0 X 388783 0 30438 FREDERICK L BANNER CHIEF INFORMATION OFFICER 50.0 0.0 X 236820 0 47408 THOMAS MUNDELL TERM 22114 CHIEF DEVELOPMENT OFFICER 50.0 0.0 X 176882 0 7188 PAULINE MCDANIEL EFF 2314 CHIEF DEVELOPMENT OFFICER 50.0 0.0 X 209966 0 27375 ALAN L BEATTY VICE PRESIDENT HUMAN RESOURCES 50.0 0.0 X 228762 0 49449 BENNETT E OJSERKIS MD PHYSICIAN 50.0 0.0 X 288625 0 47180 ROBERT L WOOD FINANCE DIRECTOR 50.0 0.0 X 206366 0 31346 ROBIN KEYACK AVP SURGICAL SERVICES 50.0 0.0 X 189718 0 23674 KENT VOLOSIN PHYSICIAN ADVISOR 50.0 0.0 X 179074 0 22329 ROBERT F ROBERTSON ADMIN DIRECTOR OF LOGISTICS 50.0 0.0 X 174085 0 45741 3792344 12000 529718 83 false true false UNIDINE COMPANY 1000 WASHINGTON STREET SUITE 510 BOSTON MA 02118 FOOD/MANAGEMENT 3823738 XANITOS 3809 WEST CHESTER PIKE NEWTOWN SQUARE PA 19073 ENVIRONMENTAL 3118896 VANGUARD HEALTHCARE MANAGEMENT LLC 301 ROUTE 17 NORTH SUITE 800 RUTHERFORD NJ 07070 MEDICAL 2017139 RELIANCE MEDICAL GROUP LLC 22 NORTH FRANKLIN AVENUE 2ND FLOOR PLEASANTVILLE NJ 08232 MEDICAL 1829770 ADVANCED ICU SERVICES ONE CITY PLACE DRIVE SUITE 570 ST LOUIS MO 63141 MEDICAL 1071718 55 X 880859 499253 1511263 2891375 NET PATIENT SERVICE REVENUE 541900 190079273 190079273 SHORE MEMORIAL PHYSICIANS GROUP, P.C. 541900 -10328274 -10328274 SHORE URGENT CARE, P.A. 541900 -1286424 -1286424 BRIGHTON BAY, L.L.C. 541900 -390769 -390769 SHORE QUALITY PARTNERS, L.L.C. 541900 -838037 -838037 3472320 3472320 180708089 6361 6361 18 18 0 263887 50985 212902 0 212902 212902 3288167 13223 12495 3275672 13223 3288895 3288895 0 0 0 CAFETERIA/VENDING 722410 824001 824001 824001 187931641 181994513 -1286424 4332177 109800 109800 0 0 0 3113924 2558870 548978 6076 0 65302646 53662513 11512708 127425 3793242 3117100 668740 7402 10296609 8461248 1815269 20092 5628165 4624950 992233 10982 19683571 12752663 6823550 107358 1125159 728972 390050 6137 136008 88117 47149 742 123930 123930 0 32244 20890 11178 176 13026196 12454482 562796 8918 422610 422610 1163537 754153 403035 6349 2651451 1717831 919158 14462 0 3349522 2179418 1151757 18347 146129 146129 0 80109 80109 2972846 1926058 1030573 16215 0 14262530 9259948 4924627 77955 2058754 1333833 713692 11229 MEDICAL SUPPLIES 34086826 34086826 OTHER EXPENSES 5042297 3296897 1719303 26097 188608105 153907347 34234796 465962 X 0 0 548760 455221 0 0 21599634 20477934 0 0 0 0 0 0 2540298 2583031 940539 1175523 359446029 206738915 163998906 152707114 0 0 0 0 57237714 68520607 1350085 1228191 18973550 17472972 267189486 264620593 24760445 27024108 0 0 0 0 70470084 68304596 0 0 0 0 5990660 9307668 0 0 84735969 106731794 185957158 211368166 X 77773788 49388625 716892 1132905 2741648 2730897 81232328 53252427 267189486 264620593 X -676464 -1031969 -26271468 X X false true X true true true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true false false false false false true 103500 true 20430 123930 false SCHEDULE C, PART II-B; QUESTIONS 1H & 1I SHORE MEDICAL CENTER ("MEDICAL CENTER") ENGAGES IN LOBBYING EFFORTS ON A FEDERAL AND STATE LEVEL. DURING 2014, THE MEDICAL CENTER PAID TWO INDEPENDENT FIRMS A TOTAL OF $103,500 FOR LOBBYING CONSULTING SERVICES. IN ADDITION, THE MEDICAL CENTER IS A MEMBER OF THE NEW JERSEY HOSPITAL ASSOCIATION AND THE AMERICAN HOSPITAL ASSOCIATION, BOTH OF WHICH ENGAGE IN LOBBYING EFFORTS ON BEHALF OF THEIR MEMBER HOSPITALS. A PORTION OF THE ORGANIZATION'S ANNUAL DUES PAID TO THESE ORGANIZATIONS ARE ALLOCATED TOWARDS THESE LOBBYING EFFORTS. THIS ALLOCATION AMOUNTED TO $20,430 during 2014. LASTLY, THE ORGANIZATION IS ALSO A MEMBER OF FAIR SHARE HOSPITALS COLLABORATIVE, INC. TO WHICH IT PAID DUES IN THE AMOUNT OF $15,000 IN 2014. ONE OF THE FUNCTIONS OF FAIR SHARE HOSPITALS COLLABORATIVE, INC. IS TO ENGAGE IN LOBBYING ACTIVITIES PERFORMED ON BEHALF OF ITS MEMBER HOSPITALS. 3458540 -10751 -416013 3863802 4849312 174503 1565275 3458540 6187421 143997 1482106 4849312 6670180 -115746 367013 6187421 5352003 1103776 214401 6670180 0.70680 0.29320 false false 5864494 5864494 135723852 72610771 63113081 216658850 133013895 83644955 1198833 1114249 84584 152707114 LIMITED AS TO USE 923008 F USE 17248160 F LIMITED USE 3674 F LIMITED USE 3210000 F LIMITED USE 40820940 F LIMITED USE 679570 F LIMITED USE 0 F LIMITED USE 141106 F PERPETUAL TRUST 1961080 F RELATED ORGANIZATION 162657 F INVESTMENTS; LIMITED USE 1424521 F LIMITED USE 2247112 F LIMITED LIABILITY COMPANY 293193 F ORGANIZATION -1316626 F COMPANY -838037 F A RELATED ORGANIZATION -342472 F ORGANIZATION 1132905 F 68520607 DUE FROM AFFILIATES 12143005 DEPOSITS 513798 OTHER ASSETS 4816169 17472972 0 THIRD PARTY PAYORS; CURRENT 3179218 NON-CURRENT 0 RESERVE FOR INSURANCE CLAIMS 4151207 OTHER LIABILITIES 2346250 ACCRUED INTEREST PAYABLE 289278 ACCRUED RETIREMENT BENEFITS 96765841 106731794 X SCHEDULE D, PART V; QUESTION 4 The Medical Center has adopted investment policies for its endowment assets that are consistent with the policies and objectives of their overall investments; TO FURTHER THE ORGANIZATION'S CHARITABLE PURPOSES, PROGRAMS AND SERVICES. The assets are invested in a manner that is intended to produce a positive rate of return while assuming a low level of risk. From time to time, the fair value of assets associated with the donor-restricted endowment funds may fall below the level that the donor requires the Medical Center to maintain in perpetual duration. Deficiencies of this nature are reported in unrestricted net assets in accordance with generally accepted accounting principles. SCHEDULE D, PART X THE ORGANIZATION IS AN AFFILIATE within SHORE MEMORIAL HEALTH SYSTEM and affiliates; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM ("SYSTEM"). SHORE MEMORIAL HEALTH SYSTEM IS THE tax-exempt PARENT ENTITY OF THE SYSTEM. AN INDEPENDENT CPA FIRM AUDITED THE CONSOLIDATED FINANCIAL STATEMENTS OF THE SYSTEM FOR THE YEARS ENDED DECEMBER 31, 2014 AND DECEMBER 31, 2013; RESPECTIVELY. THE FOOTNOTE BELOW IS FROM THE SYSTEM'S 2014 AUDITED CONSOLIDATED FINANCIAL STATEMENTS AND REPORTS THE ORGANIZATION'S LIABILITY FOR UNCERTAIN TAX POSITIONS UNDER FIN 48 (ASC 740): THE SYSTEM FOLLOWS THE ACCOUNTING GUIDANCE FOR UNCERTAINTIES IN INCOME TAX POSITIONS, WHICH REQUIRES THAT A TAX POSITION BE RECOGNIZED OR DERECOGNIZED BASED ON A "MORE LIKELY THAN NOT" THRESHOLD. THIS APPLIES TO POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. THE SYSTEM DOES NOT BELIEVE ITS CONSOLIDATED FINANCIAL STATEMENTS INCLUDE ANY MATERIAL UNCERTAIN TAX POSITIONS. AS OF DECEMBER 31, 2014, THE SYSTEM'S TAX YEARS ENDED DECEMBER 31, 2011 THROUGH DECEMBER 31, 2014 FOR FEDERAL TAX JURISDICTION REMAIN OPEN TO EXAMINATION. true true X true X true X true true false true true 8659 7140045 1089413 6050632 0.03210 14599 19337065 11826370 7510695 0.03980 23258 26477110 12915783 13561327 0.07190 11 2523 336287 4300 331987 0.00170 11 2523 336287 4300 331987 0.00170 11 25781 26813397 12920083 13893314 0.07360 1 28628 28628 0.00010 1 28628 28628 0.00010 false 8165928 2041482 33378254 50796373 -17418119 X true true 1 1 SHORE MEMORIAL HOSPITAL 100 MEDICAL CENTER WAY SOMERS POINT NJ 082442387 www.shoremedicalcenter.org 10103 X X X 1 SHORE MEMORIAL HOSPITAL 1 false false true X X X X X X X 13 true false false true X www.shoremedicalcenter.org X true 13 true www.shoremedicalcenter.org false false true X 200. 300. X X X X X true true X X X X true X X true X false X X X X true X false false SCH H,PT V,ST B,Q's 2,3J,6A&B,7D,13B,15E,16I,18D,19D,20E,21C,21D,22D,23&24 NOT APPLICABLE. SCHEDULE H, PART V, SECTION B, QUESTION 5 Shore Memorial Hospital created a coalition of professional members from the community to participate in the Community Health Needs Assessment conducted by the hospital. A series of meetings occurred during 2012 in which public health partners: a) gave insight into proper processes for conducting a needs assessment; b) provided information on disparity groups in the community that should be focused on; and c) pointed out particular needs and gaps in the community. According to the organization's community health needs assessment the following public health experts provided guidance regarding the assessment process: Atlantic City Department of Health - Ronald Cash, Health Officer - Rhonda Fitzgerald, Coordinator of Community Health/Educator Atlantic County, Division of Public Health - Patricia Diamond, Health Officer - Ben Mount, Partnership Coordinator Atlantic County Department of Corrections - John McLernon, Director, Social Services Rutgers Cooperative Extension - Joanne Kinsey, Assistant Professor of Family & Community Health Sciences Southern Jersey Family Medical Center - Carol Malette, Program Director of Prenatal Access to Care Stockton College of Continuing Studies - Ariane Newman, Assistant Director of Continuing Studies United Way of America - Fran Wise, Director of Community Investments & Partnerships SCHEDULE H, PART V, SECTION B, QUESTION 11 Once the Community Health Needs Assessment was conducted and posted on the hospital's website in 2013, the next step consisted of creating a Community Benefit Plan. The Community Benefit Plan is for 2013 - 2015 and consists of the goals and objectives the hospital is pursuing over the next couple of years. Eight health risk factors were identified (obesity, tobacco use, alcohol use, heart disease, cancer, diabetes, stroke and lower respiratory diseases). Each of these topics has been put in the Community Benefit Plan and is being pursued over the course of the implementation period. Additionally health insurance was identified as a problem. This is not in the Community Benefit Plan, but is being addressed through multiple initiatives the hospital participates in such as aiding patients with the Affordable Care Act process, assistance with the Medicaid process, charity care for patients in need and grant programs to provide cancer screening. the organization has choosen not to address alcoholism and alcohol abuse in adultS. this is due to the fact that Shore Medical Center does not have an Alcohol treatment center, a detoxification program or alcohol counselors. however, Shore will refer adults who have needs related to alcohol abuse, to other facilities who provide these services within the region. Please refer to the organization's website, www.shoremedicalcenter.org, which contains a link to the organization's community health needs assessment which describes all of the above initatives in greater detail. 3 OUTPATIENT TESTING CENTER 5401 HARDING HIGHWAY MAYS LANDING NJ 08330 LAB SERVICES OUTPATIENT TESTING CENTER 914 HAVEN AVENUE OCEAN CITY NJ 08226 LAB AND RADIOLOGY SERVICES SMH - HEALTH & CONFERENCE CENTER 649 SHORE ROAD SOMERS POINT NJ 08244 INACTIVE SCHEDULE H, PART I, LINE 3C THE INCOME BASED CRITERIA USED TO DETERMINE ELIGIBILITY IS PER NEW JERSEY ADMINISTRATIVE CODE 10:52 SUB CHAPTERS 11, 12 AND 13, AND BASED UPON THE 2014 POVERTY GUIDELINES (DEPARTMENT OF HEALTH AND SENIOR SERVICES). FEDERAL POVERTY GUIDELINES ARE INCLUDED IN THE CRITERIA FOR DETERMINING ELIGIBILITY FOR CHARITY AND DISCOUNTED CARE. SCHEDULE H, PART I, LINE 6A NOT APPLICABLE. SCHEDULE H, PART I, LINE 7 NO COSTS RELATING TO SUBSIDIZED HEALTHCARE SERVICES ARE ATTRIBUTABLE TO ANY PHYSICIAN CLINICS. WORKSHEET 2 WAS USED FOR THE COST TO CHARGE RATIO. SCHEDULE H, PART II SHORE MEMORIAL HOSPITAL D/B/A SHORE MEDICAL CENTER IS PROUD TO MAKE A DIFFERENCE IN THE COMMUNITIES WE CALL HOME. OUR GENEROUS MEDICAL CENTER STAFF HAVE PARTICIPATED IN NUMEROUS EVENTS THAT SUPPORT AND EXEMPLIFY THE MEDICAL CENTER'S COMMITMENT TO OUR COMMUNITY. OUR PRIMARY GOAL IS TO CARE FOR AND RESPECT, ALL PATIENTS THEIR FAMILIES AND EACH OTHER. ALONG WITH THE SUPERIOR CARE THAT WE DELIVER EVERY DAY, WE STRIVE TO EDUCATE AND PROMOTE WELLNESS TO THE COMMUNITY THROUGH THE MANY OUTREACH PROGRAMS WE OFFER. MORE RECENTLY, THE MEDICAL CENTER BECAME THE FIRST HOSPITAL IN NEW JERSEY AND ONE OF LESS THAN 50 ORGANIZATIONS WORLDWIDE TO RECEIVE PLANETREE PATIENT-CENTERED CARE DESIGNATION. THE PLANETREE MODEL OF CARE IS A PATIENT-CENTERED, HOLISTIC APPROACH TO HEALTHCARE, PROMOTING MENTAL, EMOTIONAL, SPIRITUAL, SOCIAL AND PHYSICAL HEALING. WE HOPE TO EMPOWER OUR PATIENTS AND FAMILIES THROUGH THE EXCHANGE OF INFORMATION TO ULTIMATELY ENCOURAGE AND FOSTER HEALING PARTNERSHIPS WITH CAREGIVERS. SCHEDULE H, PART III, LINES 2, 3 & 4 Bad debt expense was calculated using the providers' bad debt expense from THE AUDITIED financial statementS, net of accounts written off at charges. Shore memorial health system prepares and issues audited financial statements. The attached text was obtained from the footnotes to the audited financial statements of shore medical center. Patient accounts receivable/allowance for doubtful accounts ----------------------------------------------------------- Patient accounts receivable result from the health care services provided by the system. The system provides an allowance for doubtful accounts for estimated losses resulting from the unwillingness of patients to make payments for services. The allowance is determined by analyzing historical data and trends. Accounts receivable are charged off against the allowance for doubtful accounts when management determines that recovery is unlikely and the medical center ceases collection efforts. Charity care ------------ The system provides charity care to patients who meet certain financial criteria established by the state of new jersey. The cost of services provided and supplies furnished under its charity care policy is estimated using internal data and is calculated based on the system's cost to charge ratio. The total direct and indirect amount of charity care provided, determined on the basis of cost, approximated $3,315,000 and $7,590,000 in 2014 and 2013, respectively. The new jersey health care reform act of 1992, chapter 160, established the health care subsidy fund (hcsf) to provide a mechanism and funding source to compensate certain hospitals for charity care. For the years ended December 31, 2014 and 2013, the system recognized $649,470 and $1,219,788, respectively, as subsidies for charity care, which is included in net patient service revenue. the health care subsidy fund amounts are subject to change from year to year based on available state budget amounts and allocation methodologies. SCHEDULE H, PART III, LINE 8 MEDICARE COSTS WERE DERIVED FROM THE 2014 MEDICARE COST REPORT. MEDICARE UNDERPAYMENTS AND BAD DEBT ARE COMMUNITY BENEFIT AND ASSOCIATED COSTS ARE INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. THE ORGANIZATION FEELS THAT MEDICARE UNDERPAYMENTS (SHORTFALL) AND BAD DEBT ARE COMMUNITY BENEFIT AND ASSOCIATED COSTS ARE INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. AS OUTLINED MORE FULLY BELOW THE ORGANIZATION BELIEVES THAT THESE SERVICES AND RELATED COSTS PROMOTE THE HEALTH OF THE COMMUNITY AS A WHOLE AND ARE RENDERED IN CONJUNCTION WITH THE ORGANIZATION'S CHARITABLE TAX-EXEMPT PURPOSES AND MISSION IN PROVIDING MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER WITHOUT REGARD TO RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY AND CONSISTENT WITH THE COMMUNITY BENEFIT STANDARD PROMULGATED BY THE IRS. THE COMMUNITY BENEFIT STANDARD IS THE CURRENT STANDARD FOR A HOSPITAL FOR RECOGNITION AS A TAX-EXEMPT AND CHARITABLE ORGANIZATION UNDER INTERNAL REVENUE CODE ("IRC") 501(C)(3). THE ORGANIZATION IS RECOGNIZED AS A TAX-EXEMPT ENTITY AND CHARITABLE ORGANIZATION UNDER 501(C)(3) OF THE IRC. ALTHOUGH THERE IS NO DEFINITION IN THE TAX CODE FOR THE TERM "CHARITABLE" A REGULATION PROMULGATED BY THE DEPARTMENT OF THE TREASURY PROVIDES SOME GUIDANCE AND STATES THAT "THE TERM CHARITABLE IS USED IN SECTION 501(C)(3) IN ITS GENERALLY ACCEPTED LEGAL SENSE," AND PROVIDES EXAMPLES OF CHARITABLE PURPOSES, INCLUDING THE RELIEF OF THE POOR OR UNPRIVILEGED; THE PROMOTION OF SOCIAL WELFARE; AND THE ADVANCEMENT OF EDUCATION, RELIGION, AND SCIENCE. NOTE IT DOES NOT EXPLICITLY ADDRESS THE ACTIVITIES OF HOSPITALS. IN THE ABSENCE OF EXPLICIT STATUTORY OR REGULATORY REQUIREMENTS APPLYING THE TERM "CHARITABLE" TO HOSPITALS, IT HAS BEEN LEFT TO THE IRS TO DETERMINE THE CRITERIA HOSPITALS MUST MEET TO QUALIFY AS IRC 501(C)(3) CHARITABLE ORGANIZATIONS. THE ORIGINAL STANDARD WAS KNOWN AS THE CHARITY CARE STANDARD. THIS STANDARD WAS REPLACED BY THE IRS WITH THE COMMUNITY BENEFIT STANDARD WHICH IS THE CURRENT STANDARD. CHARITY CARE STANDARD IN 1956, THE IRS ISSUED REVENUE RULING 56-185, WHICH ADDRESSED THE REQUIREMENTS HOSPITALS NEEDED TO MEET IN ORDER TO QUALIFY FOR IRC 501(C)(3) STATUS. ONE OF THESE REQUIREMENTS IS KNOWN AS THE "CHARITY CARE STANDARD." UNDER THE STANDARD, A HOSPITAL HAD TO PROVIDE, TO THE EXTENT OF ITS FINANCIAL ABILITY, FREE OR REDUCED-COST CARE TO PATIENTS UNABLE TO PAY FOR IT. A HOSPITAL THAT EXPECTED FULL PAYMENT DID NOT, ACCORDING TO THE RULING, PROVIDE CHARITY CARE BASED ON THE FACT THAT SOME PATIENTS ULTIMATELY FAILED TO PAY. THE RULING EMPHASIZED THAT A LOW LEVEL OF CHARITY CARE DID NOT NECESSARILY MEAN THAT A HOSPITAL HAD FAILED TO MEET THE REQUIREMENT SINCE THAT LEVEL COULD REFLECT ITS FINANCIAL ABILITY TO PROVIDE SUCH CARE. THE RULING ALSO NOTED THAT PUBLICLY SUPPORTED COMMUNITY HOSPITALS WOULD NORMALLY QUALIFY AS CHARITABLE ORGANIZATIONS BECAUSE THEY SERVE THE ENTIRE COMMUNITY, AND A LOW LEVEL OF CHARITY CARE WOULD NOT AFFECT A HOSPITAL'S EXEMPT STATUS IF IT WAS DUE TO THE SURROUNDING COMMUNITY'S LACK OF CHARITABLE DEMANDS. COMMUNITY BENEFIT STANDARD IN 1969, THE IRS ISSUED REVENUE RULING 69-545, WHICH "REMOVED" FROM REVENUE RULING 56-185 "THE REQUIREMENTS RELATING TO CARING FOR PATIENTS WITHOUT CHARGE OR AT RATES BELOW COST." UNDER THE STANDARD DEVELOPED IN REVENUE RULING 69-545, WHICH IS KNOWN AS THE "COMMUNITY BENEFIT STANDARD," HOSPITALS ARE JUDGED ON WHETHER THEY PROMOTE THE HEALTH OF A BROAD CLASS OF INDIVIDUALS IN THE COMMUNITY. THE RULING INVOLVED A HOSPITAL THAT ONLY ADMITTED INDIVIDUALS WHO COULD PAY FOR THE SERVICES (BY THEMSELVES, PRIVATE INSURANCE, OR PUBLIC PROGRAMS SUCH AS MEDICARE), BUT OPERATED A FULL-TIME EMERGENCY ROOM THAT WAS OPEN TO EVERYONE. THE IRS RULED THAT THE HOSPITAL QUALIFIED AS A CHARITABLE ORGANIZATION BECAUSE IT PROMOTED THE HEALTH OF PEOPLE IN ITS COMMUNITY. THE IRS REASONED THAT BECAUSE THE PROMOTION OF HEALTH WAS A CHARITABLE PURPOSE ACCORDING TO THE GENERAL LAW OF CHARITY, IT FELL WITHIN THE "GENERALLY ACCEPTED LEGAL SENSE" OF THE TERM "CHARITABLE," AS REQUIRED BY TREAS. REG. 1.501(C)(3)-1(D)(2). THE IRS RULING STATED THAT THE PROMOTION OF HEALTH, LIKE THE RELIEF OF POVERTY AND THE ADVANCEMENT OF EDUCATION AND RELIGION, IS ONE OF THE PURPOSES IN THE GENERAL LAW OF CHARITY THAT IS DEEMED BENEFICIAL TO THE COMMUNITY AS A WHOLE EVEN THOUGH THE CLASS OF BENEFICIARIES ELIGIBLE TO RECEIVE A DIRECT BENEFIT FROM ITS ACTIVITIES DOES NOT INCLUDE ALL MEMBERS OF THE COMMUNITY, SUCH AS INDIGENT MEMBERS OF THE COMMUNITY, PROVIDED THAT THE CLASS IS NOT SO SMALL THAT ITS RELIEF IS NOT OF BENEFIT TO THE COMMUNITY. THE IRS CONCLUDED THAT THE HOSPITAL WAS "PROMOTING THE HEALTH OF A CLASS OF PERSONS THAT IS BROAD ENOUGH TO BENEFIT THE COMMUNITY" BECAUSE ITS EMERGENCY ROOM WAS OPEN TO ALL AND IT PROVIDED CARE TO EVERYONE WHO COULD PAY, WHETHER DIRECTLY OR THROUGH THIRD-PARTY REIMBURSEMENT. OTHER CHARACTERISTICS OF THE HOSPITAL THAT THE IRS HIGHLIGHTED INCLUDED THE FOLLOWING: ITS SURPLUS FUNDS WERE USED TO IMPROVE PATIENT CARE, EXPAND HOSPITAL FACILITIES, AND ADVANCE MEDICAL TRAINING, EDUCATION, AND RESEARCH; IT WAS CONTROLLED BY A BOARD OF TRUSTEES THAT CONSISTED OF INDEPENDENT CIVIC LEADERS; AND HOSPITAL MEDICAL STAFF PRIVILEGES WERE AVAILABLE TO ALL QUALIFIED PHYSICIANS. MEDICARE UNDERPAYMENTS AND BAD DEBT ARE COMMUNITY BENEFIT AND ASSOCIATED COSTS ARE INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. THE AMERICAN HOSPITAL ASSOCIATION ("AHA") FEELS THAT MEDICARE UNDERPAYMENTS (SHORTFALL) AND BAD DEBT ARE COMMUNITY BENEFIT AND THUS INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. THIS ORGANIZATION AGREES WITH THE AHA POSITION. AS OUTLINED IN THE AHA LETTER TO THE IRS DATED AUGUST 21, 2007 WITH RESPECT TO THE FIRST PUBLISHED DRAFT OF THE NEW FORM 990 AND SCHEDULE H, THE AHA FELT THAT THE IRS SHOULD INCORPORATE THE FULL VALUE OF THE COMMUNITY BENEFIT THAT HOSPITALS PROVIDE BY COUNTING MEDICARE UNDERPAYMENTS (SHORTFALL) AS QUANTIFIABLE COMMUNITY BENEFIT FOR THE FOLLOWING REASONS: - PROVIDING CARE FOR THE ELDERLY AND SERVING MEDICARE PATIENTS IS AN ESSENTIAL PART OF THE COMMUNITY BENEFIT STANDARD. - MEDICARE, LIKE MEDICAID, DOES NOT PAY THE FULL COST OF CARE. RECENTLY, MEDICARE REIMBURSES HOSPITALS ONLY 92 CENTS FOR EVERY DOLLAR THEY SPEND TO TAKE CARE OF MEDICARE PATIENTS. THE MEDICARE PAYMENT ADVISORY COMMISSION ("MEDPAC") IN ITS MARCH 2007 REPORT TO CONGRESS CAUTIONED THAT UNDERPAYMENT WILL GET EVEN WORSE, WITH MARGINS REACHING A 10-YEAR LOW AT NEGATIVE 5.4 PERCENT. - MANY MEDICARE BENEFICIARIES, LIKE THEIR MEDICAID COUNTERPARTS, ARE POOR. MORE THAN 46 PERCENT OF MEDICARE SPENDING IS FOR BENEFICIARIES WHOSE INCOME IS BELOW 200 PERCENT OF THE FEDERAL POVERTY LEVEL. MANY OF THOSE MEDICARE BENEFICIARIES ARE ALSO ELIGIBLE FOR MEDICAID -- SO CALLED "DUAL ELIGIBLES." THERE IS EVERY COMPELLING PUBLIC POLICY REASON TO TREAT MEDICARE AND MEDICAID UNDERPAYMENTS SIMILARLY FOR PURPOSES OF A HOSPITAL'S COMMUNITY BENEFIT AND INCLUDE THESE COSTS ON FORM 990, SCHEDULE H, PART I. MEDICARE UNDERPAYMENT MUST BE SHOULDERED BY THE HOSPITAL IN ORDER TO CONTINUE TREATING THE COMMUNITY'S ELDERLY AND POOR. THESE UNDERPAYMENTS REPRESENT A REAL COST OF SERVING THE COMMUNITY AND SHOULD COUNT AS A QUANTIFIABLE COMMUNITY BENEFIT. BOTH THE AHA AND THIS ORGANIZATION ALSO FEEL THAT PATIENT BAD DEBT IS A COMMUNITY BENEFIT AND THUS INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. LIKE MEDICARE UNDERPAYMENT (SHORTFALLS), THERE ALSO ARE COMPELLING REASONS THAT PATIENT BAD DEBT SHOULD BE COUNTED AS QUANTIFIABLE COMMUNITY BENEFIT AS FOLLOWS: - A SIGNIFICANT MAJORITY OF BAD DEBT IS ATTRIBUTABLE TO LOW-INCOME PATIENTS, WHO, FOR MANY REASONS, DECLINE TO COMPLETE THE FORMS REQUIRED TO ESTABLISH ELIGIBILITY FOR HOSPITALS' CHARITY CARE OR FINANCIAL ASSISTANCE PROGRAMS. A 2006 CONGRESSIONAL BUDGET OFFICE ("CBO") REPORT, NONPROFIT HOSPITALS AND THE PROVISION OF COMMUNITY BENEFITS, CITED TWO STUDIES INDICATING THAT "THE GREAT MAJORITY OF BAD DEBT WAS ATTRIBUTABLE TO PATIENTS WITH INCOMES BELOW 200% OF THE FEDERAL POVERTY LINE." - THE REPORT ALSO NOTED THAT A SUBSTANTIAL PORTION OF BAD DEBT IS PENDING CHARITY CARE. UNLIKE BAD DEBT IN OTHER INDUSTRIES, HOSPITAL BAD DEBT IS COMPLICATED BY THE FACT THAT HOSPITALS FOLLOW THEIR MISSION TO THE COMMUNITY AND TREAT EVERY PATIENT THAT COMES THROUGH THEIR EMERGENCY DEPARTMENT, REGARDLESS OF ABILITY TO PAY. PATIENTS WHO HAVE OUTSTANDING BILLS ARE NOT TURNED AWAY, UNLIKE OTHER INDUSTRIES. BAD DEBT IS FURTHER COMPLICATED BY THE AUDITING INDUSTRY'S STANDARDS ON REPORTING CHARITY CARE. MANY PATIENTS CANNOT OR DO NOT PROVIDE THE NECESSARY, EXTENSIVE DOCUMENTATION REQUIRED TO BE DEEMED CHARITY CARE BY AUDITORS. AS A RESULT, ROUGHLY 40% OF BAD DEBT IS PENDING CHARITY CARE. - THE CBO CONCLUDED THAT ITS FINDINGS "SUPPORT THE VALIDITY OF THE USE OF UNCOMPENSATED CARE [BAD DEBT AND CHARITY CARE] AS A MEASURE OF COMMUNITY BENEFITS" ASSUMING THE FINDINGS ARE GENERALIZABLE NATIONWIDE; THE E SCHEDULE H, PART III, LINE 9B ACCOUNTS CONSIDERED TO BE CHARITY CARE ARE NOT INCLUDED IN THE BAD DEBT EXPENSE, BUT RATHER, ACCOUNTED FOR AS AN ALLOWANCE. IT IS THE POLICY OF THE SHORE MEMORIAL HEALTH SYSTEM AND ALL ITS MEDICAL CENTER AFFILIATES TO TREAT ALL PATIENTS EQUALLY REGARDLESS OF INSURANCE AND THEIR ABILITY TO PAY. FOR ACCOUNTS DETERMINED TO BE "SELF-PAY" AND/OR ACCOUNTS WITH BALANCE AFTER PRIMARY INSURANCE PAYMENTS, THE COLLECTION POLICY REQUIRES: A MINIMUM OF ONE PRE-COLLECTION LETTER, TELEPHONE CONTACT FOR ANY ACCOUNT OVER $500 OR AT THE DISCRETION OF THE ACCOUNT REPRESENTATIVE AND/OR SUPERVISOR. THE FACILITY ALSO HAS A CHARITY CARE ACCESS POLICY TO ASSURE PATIENTS ARE PROVIDED WITH CHARITY CARE ASSISTANCE DETERMINED BY STATE AND FEDERAL REGULATIONS. IT IS THE POLICY TO INFORM ALL PATIENTS DEEMED SELF-PAY OF THE APPROPRIATE ASSISTANCE PROGRAMS AVAILABLE. PATIENTS APPLYING FOR CHARITY CARE ASSISTANCE WILL BE FINANCIALLY SCREENED BY A RESOURCE ADVISOR TO DETERMINE ELIGIBILITY ACCORDING TO STATE AND FEDERAL GUIDELINES AND WILL BE INFORMED OF DOCUMENTATION NEED TO COMPLETE A CHARITY CARE APPLICATION. PATIENTS NOT ELIGIBLE FOR CHARITY CARE WILL BE FINANCIALLY COUNSELED FOR ALL OTHER OPTIONS. QUALIFIED PATIENTS WILL BE REFERRED TO ALL APPROPRIATE AGENCIES OR PROGRAMS TO MEET OTHER FINANCIAL NEEDS. AT THE TIME OF THE PATIENT VISIT AND PART OF THE REGISTRATION PROCESS AT THE FACILITY, THE FOLLOWING OPTIONS ARE MADE AVAILABLE TO PATIENTS: - FINANCIAL COUNSELING FOR POSSIBLE ELIGIBILITY FOR MEDICAL ASSISTANCE INCLUDING MEDICAID AND SSI; - FINANCIAL COUNSELING FOR POSSIBLE ELIGIBILITY FOR THE NEW JERSEY HOSPITAL CARE PAYMENT ASSISTANCE PROGRAM; AND, - FINANCIAL ARRANGEMENTS INCLUDING: 1. CASH/CREDIT CARD (AMERICAN EXPRESS, DISCOVER, VISA, MASTERCARD), 2. LOW INTEREST LOAN PROGRAM, OR 3. FLEXIBLE PAYMENT PLANS. IN ADDITION TO THE ABOVE OPTIONS, THE FACILITY HAS ESTABLISHED A SELF-PAY ASSISTANCE PROGRAM FOR OUR UNINSURED PATIENTS THAT DO NOT QUALIFY FOR MEDICAID OR THE NEW JERSEY HOSPITAL CARE PAYMENT ASSISTANCE PROGRAM. THE SELF-PAY ASSISTANCE PROGRAM RATES ARE REFLECTIVE OF MEDICARE REIMBURSEMENT, AS REFERRED BY THE STATE OF NEW JERSEY. SCHEDULE H, PART VI; QUESTION 2 IN ADDITION TO THE COMMUNITY HEALTH NEEDS ASSESSMENT PROCESS OUTLINED IN SCHEDULE H, SECTION B, QUESTIONS 1-12 AND SECTION C, the organization took the following steps in 2013 to ensure that the Community Health Needs Assessment (CHNA) was managed in a logical and effective manner included the following: (1) Identifying reputable guides and advice; (2) Engaging community representatives, especially those with public health expertise; (3) Defining the community that we serve; (4) Selecting quality data sources; (5) Reviewing and analyzing available information; and (6) Prioritizing the health and health-related problems. The guides and expert advice for the conducting the assessment included the following: (1) Educational Webinars by the New Jersey Hospital Association; (2) Guide for Planning & Reporting Community Benefit by Catholic Health Association; (3) Mobilizing for Action through Planning and Partnership (MAPP) by the National Association of County & City Officials; and (4) Schedule H (Form 990) by the US Department of the Treasury Internal Revenue Service. In 2013, Shore Memorial Hospital met with public health experts that aided in the Community Health Needs Assessment (CHNA) process to report the hospital's findings and share its implementation plan. Partners such as the Atlantic County Division of Public Health, Atlantic City Health Department, the Richard Stockton College of New Jersey Public Health Department, Atlantic County Jail System, Southern New Jersey Family Medical Centers and United Way participated. Discussions of the next steps toward implementation and partnerships occurred. Additionally Shore Memorial Hospital began to address their findings. - Atlantic and Cape May County have some of the highest smoking rates and lung cancer rates in the state. Continued support to maintain the Tobacco Prevention and Treatment Program has been continued despite discontinuation of grant funding from the state in 2011. Additionally educational information is provided as needed to coalition activities for "outdoor smoke free spaces". These types of interventions create an environment that discourages smoking and creates a nonsmoking social norm. - Cape May County has the highest Melanoma Skin Cancer rate in the state. Awareness activities on how to protect our skin and free skin cancer screenings are performed each summer on both the Atlantic and Cape May County Beaches with community partners. In 2013, four screenings occurred (2 in each county) in which participants were educated on sun safety and how to put on sun screen correctly, screened for skin cancers and referred if anything was suspicious. - Atlantic County's heart disease rate is 13.7% higher than the state. Heart disease and stroke is in the leading causes of death for both Atlantic and Cape May County and diabetes accounts for many health complications including heart disease and stroke. Shore Memorial Hospital continues to be committed to raise awareness through multiple free screening opportunities for early detection of these types of chronic diseases. SCHEDULE H, PART VI; QUESTION 3 SHORE MEDICAL CENTER ("MEDICAL CENTER") HAS ENGAGED A THIRD PARTY NCO, TO PROVIDE EDUCATION AND ELIGIBILITY PROCESSING FOR CHARITY CARE AND MEDICAID ELIGIBILITY. THIS 3RD PARTY MEETS WITH INPATIENTS, THEIR FAMILIES AND WALK IN PATIENTS TO PROVIDE ALL NECESSARY GUIDANCE FOR THE PATIENT FINANCIAL NEEDS. IN ADDITION THEY ALSO MAKE HOUSE CALLS FOR THOSE THAT NEED FURTHER ASSISTANCE AND HELP IN GETTING TO THE AGENCIES NECESSARY TO COMPLETE STATE APPLICATIONS. THE MEDICAL CENTER ALSO HAS AN ADDITIONAL 4 INDIVIDUALS THAT HELP PATIENTS COMPLETE THESE FORMS IN THE BUSINESS OFFICE, EMERGENCY DEPARTMENT AND THE ADMISSIONS OFFICE. THE MEDICAL CENTER ALSO MAINTAINS SIGNAGE (MULTI LINGUAL) TO DIRECT PATIENTS TO THE HELP THEY MAY NEED. SCHEDULE H, PART VI; QUESTION 4 SHORE MEDICAL CENTER ("MEDICAL CENTER") IS LOCATED IN SOMERS POINT, ATLANTIC COUNTY, NEW JERSEY, APPROXIMATELY 10 MILES SOUTH OF ATLANTIC CITY, NEW JERSEY. THE MEDICAL CENTER SERVES THE HEALTHCARE NEEDS OF BOTH THE YEAR ROUND AND SUMMER RESIDENTS OF ATLANTIC AND CAPE MAY COUNTIES AS WELL AS SEASONAL VISITORS FROM OTHER COMMUNITIES AND STATES. ACCORDING TO THE MOST RECENT CENSUS DATA, ATLANTIC COUNTY IS ONE OF THE MOST DIVERSE OF NEW JERSEY'S 21 COUNTIES. OF THE 270,000 PEOPLE RESIDING IN ATLANTIC COUNTY 17.5 PERCENT ARE OF AFRICAN AMERICAN DESCENT AND 15.3 PERCENT ARE OF HISPANIC DESCENT. NEARLY 50,000 RESIDENTS SUFFER FROM DISABILITIES AND MORE THAN 10 PERCENT OF THE POPULATION IS BELOW THE POVERTY LEVEL. SCHEDULE H, PART VI; QUESTION 5 SHORE MEDICAL CENTER ("MEDICAL CENTER") IS PROUD TO MAKE A DIFFERENCE IN THE COMMUNITIES WE CALL HOME. OUR GENEROUS MEDICAL CENTER STAFF HAVE PARTICIPATED IN NUMEROUS EVENTS THAT SUPPORT AND EXEMPLIFY THE MEDICAL CENTER'S COMMITMENT TO OUR COMMUNITY. OUR PRIMARY GOAL IS TO CARE FOR AND RESPECT, ALL PATIENTS THEIR FAMILIES AND EACH OTHER. ALONG WITH THE SUPERIOR CARE THAT WE DELIVER EVERY DAY, WE STRIVE TO EDUCATE AND PROMOTE WELLNESS TO THE COMMUNITY THROUGH THE MANY OUTREACH PROGRAMS WE OFFER. MORE RECENTLY, THE MEDICAL CENTER BECAME THE FIRST HOSPITAL IN NEW JERSEY AND ONE OF LESS THAN 50 ORGANIZATIONS WORLDWIDE TO RECEIVE PLANETREE PATIENT-CENTERED CARE DESIGNATION. THE PLANETREE NETWORK IS A PATIENT CENTERED, HOLISTIC APPROACH TO HEALTHCARE, PROMOTING MENTAL, EMOTIONAL, SPIRITUAL, SOCIAL AND PHYSICAL HEALING. WE HOPE TO EMPOWER OUR PATIENTS AND FAMILIES THROUGH THE EXCHANGE OF INFORMATION TO ULTIMATELY ENCOURAGE AND FOSTER HEALING PARTNERSHIPS WITH CAREGIVERS. SCHEDULE H, PART VI; QUESTION 6 NOT FOR-PROFIT SHORE MEMORIAL HEALTH SYSTEM ENTITIES: SHORE MEMORIAL HOSPITAL D/B/A SHORE MEDICAL CENTER -------------------------------------------------- SHORE MEDICAL CENTER ("SHORE") IS A GENERAL MEDICAL AND SURGICAL HOSPITAL RECOGNIZED BY THE IRS AS AN INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, SHORE PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. MOREOVER, SHORE OPERATES CONSISTENTLY WITH THE FOLLOWING CRITERIA OUTLINED IN IRS REVENUE RULING 69-545: 1) SHORE PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF ABILITY TO PAY, INCLUDING CHARITY CARE, SELF-PAY, MEDICARE AND MEDICAID PATIENTS; 2) SHORE OPERATES AN ACTIVE EMERGENCY department FOR ALL PERSONS; WHICH IS OPEN 24 HOURS A DAY, SEVEN DAYS A WEEK, 365 DAYS PER YEAR; 3) SHORE MAINTAINS AN OPEN MEDICAL STAFF, WITH PRIVILEGES AVAILABLE TO ALL QUALIFIED PHYSICIANS; 4) CONTROL OF SHORE RESTS WITH ITS BOARD OF TRUSTEES; WHICH IS COMPRISED OF INDEPENDENT CIVIC LEADERS AND OTHER PROMINENT MEMBERS OF THE COMMUNITY; AND 5) SURPLUS FUNDS ARE USED TO IMPROVE THE QUALITY OF PATIENT CARE, EXPAND AND RENOVATE FACILITIES AND ADVANCE MEDICAL CARE; PROGRAMS AND ACTIVITIES. SHORE HEALTH SERVICES CORPORATION --------------------------------- SHORE HEALTH SERVICES CORPORATION IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3). THE ORGANIZATION, NOW INACTIVE, PROVIDED MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. SHORE MEMORIAL HEALTH SYSTEM ---------------------------- SHORE MEMORIAL HEALTH SYSTEM IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(1). THE ORGANIZATION FUNCTIONS AS THE PARENT CORPORATION OF AND SUPPORTS THE CHARITABLE PURPOSES, PROGRAMS AND SERVICES OF SHORE MEMORIAL HEALTH SYSTEM AND AFFILIATES, INCLUDING SHORE MEDICAL CENTER, WHICH PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. SHORE MEMORIAL HEALTH FOUNDATION, INC. -------------------------------------- SHORE MEMORIAL HEALTH FOUNDATION, INC. IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(1). THE ORGANIZATION SUPPORTS AND RAISES FUNDS ON BEHALF OF THE SHORE MEMORIAL HEALTH SYSTEM, INCLUDING SHORE MEDICAL CENTER, WHICH PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. BRIGHTON BAY, LLC ----------------- BRIGHTON BAY, LLC IS A LIMITED LIABILITY COMPANY WHOSE SOLE CORPORATE MEMBER IS SHORE MEDICAL CENTER. BRIGHTON BAY, LLC MAINTAINS AND OPERATES CERTAIN HEALTHCARE RELATED RENTAL REAL ESTATE. SHORE QUALITY PARTNERS, LLC --------------------------- SHORE QUALITY PARTNERS, LLC IS A LIMITED LIABILITY COMPANY WHOSE SOLE CORPORATE MEMBER IS SHORE MEDICAL CENTER. SHORE QUALITY PARTNERS, LLC OPERATES AN INTEGRATED PHYSICIAN NETWORK THAT DOES NOT EMPLOY PHYSICIANS. FOR-PROFIT SHORE MEMORIAL HEALTH SYSTEM ENTITY: SHORE HEALTH ENTERPRISES, INC. ------------------------------ A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS SHORE MEMORIAL HEALTH SYSTEM ("SMHS"). THE ENTITY PROVIDES REAL ESTATE SERVICES FOR SMHS. SHORE MEMORIAL PHYSICAN'S GROUP, P.C. ------------------------------------- A FOR-PROFIT PHYSICIAN PRACTICE PROFESSIONAL CORPORATION CONTROLLED BY SHORE MEDICAL CENTER THROUGH A NOMINEE OWNERSHIP BY A LICENSED PROFESSIONAL DUE TO STATE OF NEW JERSEY CORPORATE PRACTICE OF MEDICINE PROHIBITION RULES AND REGULATIONS. BAYFRONT URGENT CARE PROFESSIONAL ASSOCIATION D/B/A SHORE URGENT CARE, P.A. --------------------------------------------------------------------- SHORE URGENT CARE, P.A. IS A CONTROLLED AFFILIATE OF SHORE MEMORIAL PHYSICIANS GROUP, P.C. THIS ORGANIZATION WAS INCORPORATED AS A FOR-PROFIT PROFESSIONAL CORPORATION FOR THE PURPOSE OF OPERATING URGENT CARE CENTERS IN THE COMMUNMITY SERVED BY THE MEDICAL CENTER. SHORE PATHOLOGY ASSOCIATES, P.C. -------------------------------- SHORE PATHOLOGY ASSOCIATES, P.C. IS A CONTROLLED AFFILIATE OF SHORE MEDICAL CENTER. THIS ORGANIZATION WAS INCORPORATED AS A FOR-PROFIT PROFESSIONAL CORPORATION FOR THE PURPOSE OF EMPLOYING PATHOLOGISTS THAT WORK AT THE MEDICAL CENTER. SHORE HOSPITALISTS ASSOCIATES, P.A. ----------------------------------- SHORE HOSPITALISTS ASSOCIATES, P.A IS A CONTROLLED AFFILIATE OF SHORE MEDICAL CENTER. THIS ORGANIZATION WAS INCORPORATED AS A FOR-PROFIT PROFESSIONAL CORPORATION FOR THE PURPOSE OF ENGAGING IN THE PRACTICE OF MEDICINE AND SURGERY IN THE COMMUNITY SERVED BY THE MEDICAL CENTER. THIS ORGANIZATION WAS INACTIVE DURING 2014. SHORE SPECIALTY CONSULTANTS, P.A. --------------------------------- SHORE SPECIALTY CONSULTANTS, P.A. IS A CONTROLLED AFFILIATE OF SHORE MEDICAL CENTER. THIS ORGANIZATION WAS INCORPORATED AS A FOR-PROFIT PROFESSIONAL CORPORATION FOR THE PURPOSE OF ENGAGING IN THE PRACTICE OF MEDICINE AND SURGERY IN THE COMMUNITY SERVED BY THE MEDICAL CENTER. THIS ORGANIZATION WAS INACTIVE DURING 2014. SCHEDULE H, PART VI; QUESTION 7 NOT APPLICABLE. THE ENTITY AND RELATED PROVIDER ORGANIZATIONS ARE LOCATED IN NEW JERSEY. THE STATE OF NEW JERSEY DOES NOT REQUIRE HOSPITALS TO ANNUALLY FILE A COMMUNITY BENEFIT REPORT WITH THE STATE OF NEW JERSEY. true AMERICAN HEART ASSOICATION INC 1 UNION STREET SUITE 301 ROBBINSVILLE NJ 086914183 135613797 501(C)(3) 20000 PROGRAM SUPPORT CASA OF ATLANTIC & CAPE MAY COUNTIES INC 321 SHORE ROAD SOMERS POINT NJ 08244 223348198 501(C)(3) 15000 PROGRAM SUPPORT COMMUNITY PARTNERSHIP FOR EGG HARBOR TWNSHP SCHOOL 2499 SPRUCE AVENUE EGG HARBOR TWP NJ 08234 061756036 501(c)(3) 6000 PROGRAM SUPPORT JEWISH COMMUNITY CENTER OF ATLANTIC COUNTY 501 N JEROME AVENUE MARGATE NJ 08234 210634476 501(c)(3) 26000 PROGRAM SUPPORT RICHARD STOCKTON COLLEGE OF NJ 101 VERA KING FARIS DRIVE GALLOWAY NJ 08205 9500 PROGRAM SUPPORT SOMERS POINT BAYFEST COMMITTEE PO BOX 697 SOMERS POINT NJ 08244 10000 PROGRAM SUPPORT UNITED WAY OF ATLANTIC COUNTY INC 1709 BENJAMIN FRANKLIN PARKWAY PHILADELPHIA PA 19103 210646540 501(c)(3) 8300 PROGRAM SUPPORT 6 1 SCHEDULE I, PART I, QUESTION 2 GRANTS ARE MONITORED BY THE ORGANIZATION'S FINANCE PERSONNEL THROUGH THE UTILIZATION OF COST CENTERS AND OTHER INFORMATION; INCLUDING WRITTEN DOCUMENTATION AND RECEIPTS. X true true X X X X X true true false false false false false true false RONALD W JOHNSON TRUSTEE - PRESIDENT/CEO 456150 0 101432 0 323103 0 104614 0 31568 0 1016867 0 0 0 DAVID R HUGHES CHIEF FINANCIAL OFFICER 327954 0 0 0 10970 0 7598 0 17594 0 364116 0 0 0 LINDA S KENWOOD COO/CNO 266922 0 8813 0 13681 0 7459 0 28757 0 325632 0 0 0 JEANNE M ROWE CHIEF MEDICAL OFFICER 350066 0 31351 0 7366 0 13079 0 17359 0 419221 0 0 0 FREDERICK L BANNER CHIEF INFORMATION OFFICER 204642 0 30556 0 1622 0 9424 0 37984 0 284228 0 0 0 THOMAS MUNDELL TERM 22114 CHIEF DEVELOPMENT OFFICER 50560 0 0 0 126322 0 0 0 7188 0 184070 0 0 0 PAULINE MCDANIEL EFF 2314 CHIEF DEVELOPMENT OFFICER 204483 0 0 0 5483 0 5805 0 21570 0 237341 0 0 0 ALAN L BEATTY VICE PRESIDENT HUMAN RESOURCES 189985 0 35271 0 3506 0 13801 0 35648 0 278211 0 0 0 BENNETT E OJSERKIS MD PHYSICIAN 288625 0 0 0 0 0 14175 0 33005 0 335805 0 0 0 ROBERT L WOOD FINANCE DIRECTOR 181819 0 3900 0 20647 0 9100 0 22246 0 237712 0 0 0 ROBIN KEYACK AVP SURGICAL SERVICES 183832 0 3850 0 2036 0 9728 0 13946 0 213392 0 0 0 KENT VOLOSIN PHYSICIAN ADVISOR 179074 0 0 0 0 0 3269 0 19060 0 201403 0 0 0 ROBERT F ROBERTSON ADMIN DIRECTOR OF LOGISTICS 154256 0 3419 0 16410 0 9067 0 36674 0 219826 0 0 0 SCHEDULE J, PART 1, QUESTION 1 THE ORGANIZATION MAINTAINS A CLUB MEMBERSHIP FOR BUSINESS PURPOSES AND MEETINGS. THIS MEMBERSHIP ENTITLES CERTAIN SHORE MEDICAL CENTER SENIOR EXECUTIVES TO THE USE OF THE CLUB'S FACILITIES. THE AMOUNTS OUTLINED HEREIN RELATING TO THE PERSONAL USE OF THIS CORPORATE MEMBERSHIP ARE TREATED AS TAXABLE WAGES AND ARE INCLUDED ON EACH INDIVIDUAL'S RESPECTIVE 2014 FORM W-2 AS TAXABLE WAGES: RONALD W. JOHNSON, $2,202; DAVID R. HUGHES, $8,348; LINDA S. KENWOOD, $7,614; JEANNE M. ROWE, $4,174; PAULINE MCDANIEL, $3,826 AND ALAN L. BEATTY, $734. SCHEDULE J, PART I; QUESTION 4A THE FOLLOWING INDIVIDUAL RECEIVED A SEVERANCE PAYMENT DURING THE YEAR ENDED DECEMBER 31, 2014. THE AMOUNT OUTLINED HEREIN WAS INCLUDED IN HIS 2014 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES: THOMAS MUNDELL, $125,000. SCHEDULE J, PART I; QUESTION 4B THE AMOUNT REFLECTED IN COLUMN B(III) FOR THE FOLLOWING INDIVIDUAL INCLUDES CURRENT YEAR VESTING IN AN INTERNAL REVENUE CODE SECTION 457(F) PLAN (NON-QUALIFIED DEFERRED COMPENSATION PLAN) AS THE AMOUNT WAS NO LONGER SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. THE AMOUNT OUTLINED HEREIN WAS INCLUDED IN HIS 2014 FORM W-2 AS TAXABLE WAGES: RONALD W. JOHNSON, $218,327. THE AMOUNT REFLECTED IN COLUMN B(III) FOR THE FOLLOWING INDIVIDUAL INCLUDES CURRENT YEAR VESTING IN A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN ("SERP") AS THE AMOUNT WAS NO LONGER SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. THE AMOUNT OUTLINED HEREIN WAS INCLUDED IN HIS 2014 FORM W-2 AS TAXABLE WAGES: RONALD W. JOHNSON, $86,860. SCHEDULE J, PART I; QUESTION 7 CERTAIN INDIVIDUALS INCLUDED IN SCHEDULE J, PART II RECEIVED A BONUS DURING CALENDAR YEAR 2014 WHICH AMOUNTS WERE INCLUDED IN COLUMN B(II) HEREIN AND IN EACH INDIVIDUAL'S 2014 FORM W-2 AS TAXABLE WAGES. PLEASE REFER TO THIS SECTION OF THE FORM 990, SCHEDULE J FOR THIS INFORMATION BY PERSON BY AMOUNT. A NJ HEALTH CARE FACILITIES FINANCING AUTHORITY 221487590 64579FYS6 2009-09-17 30000000 BUILDINGS & STRUCTURES false false false B NJ HEALTH CARE FACILITIES FINANCING AUTHORITY 221987084 64579FZH9 2010-01-27 15000000 BUILDINGS & STRUCTURES false false false C NJ HEALTH CARE FACILITIES FINANCING AUTHORITY 221987084 2011-12-01 13000000 BUILDINGS & STRUCTURES false false false D NJ HEALTH CARE FACILITIES FINANCING AUTHORITY 221987084 2013-09-01 16890000 REPAY 2003 BONDS false false false A 0 0 30000000 0 0 0 598394 0 0 29401606 0 0 2011 false false true true B 0 0 15000000 0 0 0 300000 0 0 14700000 0 0 2011 false false true true C 0 0 13000000 0 0 0 218370 0 0 12781630 0 0 2011 false false true true D 0 0 16890000 0 0 0 104620 0 0 16785380 0 0 2013 false true true true A false true false false 0.00188 0.00000 0.00188 true false false true B false false false false 0 true false false true C false false true false 0 true false false true D false false false false 0 true false false true A false true true true BARCLAY'S BANK PLC 30. false false 0 false true B false true true false 0 false 0 false true C false true false false 0 false 0 false true D false true true false 0 false 0 false true A true B true C true D true SCHEDULE K, PART IV, LINE C THE REBATE COMPUTATION FOR THE 2009 NEW JERSEY HEALTH CARE FACILITIES FINANCING AUTHORITY TAX-EXEMPT BOND WAS PERFORMED ON DECEMBER 30, 2014. FORM 990, PART III; STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS Background ========== Shore Medical Center ("Shore") is a general medical and surgical hospital recognized by the IRS as an internal revenue code section 501(c)(3) tax-exempt organization. Pursuant to its charitable purposes, Shore provides medically necessary healthcare services to all individuals in a non-discriminatory manner regardless of race, color, creed, sex, national origin, religion or ability to pay. Moreover, Shore operates consistently with the following criteria outlined in IRS revenue ruling 69-545: 1) Shore provides medically necessary healthcare services to all individuals regardless of ability to pay, including charity care, self-pay, Medicare and Medicaid patients; 2) Shore operates an active emergency department for all persons; which is open 24 hours a day, seven days a week, 365 days per year; 3) Shore maintains an open medical staff, with privileges available to all qualified physicians; 4) Control of Shore rests with its Board of Trustees; which is comprised of independent civic leaders and other prominent members of the community; and 5) Surplus funds are used to improve the quality of patient care, expand and renovate facilities and advance medical care; programs and activities. The operations of Shore, as shown through the factors outlined above and other information contained herein, clearly demonstrate that the medical center provides substantial community benefit and that the use and control of Shore is for the benefit of the public and that no part of the income or net earnings of the organization inures to the benefit of any private individual nor is any private interest being served other than incidentally. Mission statement ================= We care for and respect all patients, their families and each other. Organization overview ===================== Shore Medical Center is a not-for-profit healthcare resource that has served southern New Jersey for more than 70 years. In that time, Shore has become known for providing a compassionate level of service that goes hand in hand with its advanced technology and modern medical facilities. Shore is a 296 bed, not-for-profit acute care medical center located in Somers Point, Atlantic County, New Jersey, approximately 10 miles south of Atlantic City, New Jersey. Shore is licensed and approved by the state of New Jersey to operate as a general acute care hospital providing both inpatient and outpatient services to the community. Founded in 1928 and chartered in 1940 as a not-for-profit corporation, Shore serves the healthcare needs of both the year-round and summer residents of Atlantic and Cape May counties, as well as visitors from other communities and states. Shore has undergone more than fourteen major construction and renovation projects since 1940 to provide necessary facilities and services for its expanding patient population. In 2013, Shore unveiled a new state-of-the-art medical oncology suite on the third floor of its freestanding Cancer Center. The 3,600 square foot expansion features eight spacious infusion therapy bays, three exam rooms, a family waiting room, nutrition center and a fully equipped and stocked pharmacy with a full-time oncology pharmacist. Shore engages the talents and teamwork of the best and brightest people in the industry. Our team of physicians, nurses, technologists, managers, financial experts, Board of Trustees and our affiliates all work together to ensure that the community has access to the best healthcare resources when needed. Shore continues to be accredited by the Joint Commission, the nation's predominant standards setting and accrediting body in healthcare, as a primary stroke center. Shore also is also certified by the Joint Commission for its spine surgery and hip and knee replacement programs in recognition of the medical center's strict adherence to quality standards. In 2014, Shore Medical Center received the following honors for its quality and safety measures: - 2014 The Joint Commission survey outcome exceeds expectation for Hospital Accreditation and Disease Specific recertification for Stroke, Spine, Hip and Knee. - 2014 Joint Commission Top Performers for prevention and treatment for Heart Failure, AMI and Pneumonia. - Leapfrog Hospital Safety Score: A - VHA Partnership for Patients Platinum Award In 2014, more than 9,190 patients were admitted to the medical center, and approximately 44,796 were treated in Shore's emergency department. Community focused education ============================ Shore's wellness program has been an integral part of the community, offering health education and screenings for more than 20 years. In 2014 thousands of local residents participated in clinical encounters, including approximately 500 blood pressure screenings and more than 1,000 participants in additional health screenings such as glucose and cholesterol screenings. Shore is the lead agency for the New Jersey Cancer Education and Early Detection (CEED) program in Atlantic County. The program provides cancer screening services at convenient locations within the communities we serve. Shore coordinated 299 breast cancer screenings, 802 cervical cancer screenings, 88 colorectal screenings and 53 prostate screenings for the underserved population. In 2014, Shore Medical Center received $396,467 in CEED grant funding for these screenings and matched $79,042. Shore is also lead agency for the Comprehensive Cancer Control (CCC) coalitions to provide policy, environmental and system changes in Atlantic and Cape May County in an effort to reduce cancer. In 2014, Shore Medical Center received $133,668 for these initiatives. In 2014, 3,030 individuals were part of the education and outreach conducted through CEED and CCC through awareness events, workshops or lectures. Childbirth education, breast feeding, sibling preparation and other programs to welcome a newborn into the family are offered to the entire community. Shore's website provides information on medical center programs, services, and physicians. It also offers educational videos, health-focused articles and assessments. Shore's physician finder service is free and available on the internet. The service matches a person's needs such as specialty, location, insurance and office hours to a Shore medical staff physician. Shore Medical Center, in partnership with Cape Regional Medical Center and Inspira Health System is part of a Health Information Exchange called NJ SHINE. This Health Information Exchange is comprised of a Physician Portal and a Patient Portal. The Patient Portal is designed to help improve the healthcare for patients through the real-time sharing of medical information. Patients can view test results, reports, medications and other healthcare information on services provided by Shore Medical Center, Inspira and Cape Regional quickly and efficiently. This greatly impacts a patient's continuity of care by providing timely access to healthcare information, avoiding unnecessary lab tests or prescribing medications that might interact with other medications the patient is on. The Physician Portal and Patient Portal can be accessed at www.shoremedicalcenter.org. FORM 990, PART III; STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS Uncompensated care ================== Shore has long been a regional leader in meeting its commitment to the medically underserved members of the community. In addition to its community outreach programs, the medical center provides substantial amounts of uncompensated care to those least able to pay for these services. In keeping with its mission to care for patients, the medical center serves all without regard to ability to pay. In 2014 Shore spent approximately $14.2 million at cost for medical services delivered to these patients. The hospital only received a state subsidy of approximately $649 Thousand to offset this amount. Shore recognizes the financial difficulty imposed on the self-pay patient who is least able to afford to pay for healthcare services when billed at the medical center's standard charges. Therefore the medical center established an innovative policy to address the disparity between hospital-billed charges and the actual cost of providing care to the self-pay patient or under-insured patient. The method adopted is based upon sound accounting principles to determine the actual cost of providing care to patients using a known standard developed for the Medicare cost report. The policy is to apply the most current hospital specific Medicare cost to charge ratio to the self-pay patient's total charge balance and adjust the bill to cost. This adjustment is limited only to those patients not covered by insurance. This ratio is subject to change as determined by the Medicare fiscal intermediary. Patients unable to pay the cost adjusted bill in full are permitted to enter into a hospital-approved payment arrangement. Payment arrangements are determined based upon the financial condition of the patient and paid over time using our existing payment arrangement methodology. As a non-profit healthcare provider, it is Shore's responsibility to deliver high-quality healthcare regardless of the patient's ability to pay. Shore is committed to the community that it serves. The challenge of meeting the high costs of providing quality health services is made possible through the dedication of physicians, staff and volunteers. Affiliations ============ Shore Medical Center is a proud member of the Jefferson Neuroscience Network. The Shore Neuroscience Center's extraordinary high-tech diagnosis and treatment options, which are enhanced through the advanced technology found within the Shore Surgical Pavilion, are delivered with the caring touch expected from Shore Medical Center. As a member of the Jefferson Neuroscience Network, Shore can ensure the highest quality care for area residents. Specialists from the Shore Neurosciences Center and the Jefferson Neuroscience Network collaborate using a multi-disciplinary approach to evaluation, diagnosis and treatment. Highly complex cases can be referred with accuracy and speed, aided by a seamless exchange of information. In October, Shore announced it selected Mayo Medical Laboratories (MML) as its primary reference laboratory, a move that gives Shore access to Mayo Clinic's extensive menu of laboratory tests and clinical expertise, while enhancing the efficiency and affordability of advanced laboratory testing. Shore's lab began sending specimens to MML in the fall, with the goal of fully transitioning to MML in the first quarter of 2015. Through this partnership, Shore has access to more advanced diagnostic and newly developed tests, especially in the areas of genetic and molecular testing. In addition, Mayo Clinic physicians and scientists in every specialty laboratory will be available for consultation regarding test selection, utilization and methodologies, and result interpretation Shore Medical Center is pleased to partner with Advanced Radiology Solutions (ARS) to provide superior diagnostic imaging services. The ARS team has been accredited by the Joint Commission for its Teleradiology Services. ARS is the only one within 100 miles of Shore Medical Center to earn this recognition for its high quality services. The ARS team includes fellowship-trained and board certified radiologists who cover the broad spectrum of radiology, including interventional radiology, breast imaging, musculoskeletal radiology and neuroradiology. ARS - under the leadership of President and Medical Director Thomas Yu, M.D. - has a rich history of team building and providing patients with a seamless continuum of care. Through its interventional radiology program, ARS has developed joint ventures in the fields of nephrology and vascular surgery, leading to successful access and endovascular aneurysm repair programs. ARS' radiologists are also trained in coronary CTA, CT colonography and breast MRI interpretations, making ARS one of the region's leading destinations for radiology services. Advanced ICU Care offers ICU programs to improve the clinical performance of its hospital partners using a comprehensive approach with a proven track record of success. As the nation's largest tele-ICU provider, Advanced ICU Care has successfully implemented and managed more programs than any other organization. The Advanced ICU Care tele-ICU program combines experienced intensivist-led care teams, sophisticated technology and collaborative programs with hospital staff and physicians to achieve a rigorous focus on evidence-based best practices that improve patient care and safety. Shore Medical Center is pleased to be affiliated with Onsite Neonatal Partners. With a unique model that places neonatologists in hospitals 24/7/365, this nationally renowned group of nearly 40 neonatologists is able to improve the quality of care and reduce risks for more than 100,000 premature or otherwise fragile full term infants. Onsite physicians also provide staffing for Shore's Pediatric Care Center. Additionally, Shore Medical Center's Pediatric Care Center became aligned with St. Christopher's Hospital for Children in Philadelphia through a partnership between St. Chris and Onsite Neonatal Partners. Together they have formed St. Chris Onsite Pediatric Partners (SCOPP), which provides 24/7 pediatric and neonatal care at Shore Medical Center. SCOPP was formed to deliver high quality care to pediatric and neonatal patients in community hospitals like Shore Medical Center in a manner that unites all of the positive aspects of an academic children's medical center with the positive aspects of a nimble, private group of neonatologists. Shore Medical Center's long-standing affiliation with Penn Medicine continues to be a valuable partnership, providing patients with access to advanced treatment in multiple disciplines, including maternal-fetal medicine and cardiac care. Heart disease patients can turn to Shore and Penn Heart & Vascular. Located in Shore's Surgical Pavilion, Shore's 400-square-foot, state-of-the-art cardiac catheterization suite is staffed by Penn physicians trained in performing serious cardiac procedures. When needed, the Penn Heart Rescue helicopter is available 24 hours per day, seven days per week to provide rapid transport to Philadelphia. The Penn Maternal-Fetal Medicine Program at Shore provides extra care to mothers-to-be and their children. Women facing high-risk pregnancies can be treated for a variety of conditions, including heart disease, placental problems, diabetes, multiple gestation pregnancy and later-age pregnancy. Dr. Robert Debbs, DO, a renowned specialist with Penn Medicine and Shore Medical Center, leads the Maternal-Fetal Medicine program. Shore Medical Center has physicians on staff from the Rothman Institute, which is internationally recognized for excellence in orthopedic science and technology. These physicians are experts in their specialty areas and leaders in clinical research and technology. Spirit of Shore: A Planetree Initiative ======================================= Hospitals are busy places, but the staff at Shore is never too busy to pay attention to the thoughtful gestures and kind acts that can make a meaningful difference to patients and their family members. This philosophy is the driving force behind the Spirit of Shore initiative at Shore. The Spirit of Shore reflects the culture of caring that is unique to Shore. This culture is further evident in the medical center's affiliation with Planetree, a global non-profit organization that promotes patient-centered care in healing environments. Shore Medical Center is the first and only hospital in New Jersey to be awarded the prestigious Planetree Designation, recognizing Shore's commitment to patient-centered care. There is a dedicated Planetree Resource Room within the Surgical Pavilion gives patients and visitors a location where they can do research or enjoy some quiet time. FORM 990, PART III; STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS Shore's "No One Dies Alone" is a volunteer program that provides companions for patients near death who do not have any family or close friends to be with them in their final hours. Volunteers sit with patients and offer solace through meditation, music, poems or simply through touch. Shore's Patient and Family Advisory Council is made up of former Shore patients and family members, community members and volunteers. Group members share stories, provide valuable feedback on their hospital experiences and assist leadership in decision making by incorporating their experiences into Shore's philosophy and operation. Shore staff members also use these meetings to educate the council about the medical center and healthcare issues in general. Centers of Excellence ===================== Shore's recognized Centers of Excellence include but are not limited to the following: Cancer Center ------------- A cancer diagnosis is an experience that is unique to every individual. At Shore Medical Center, we respond to each patient with optimism and real solutions: a comprehensive, nationally recognized program combining the best available technology, experts in the field and quality services, including our state-of-the-art facility. The Shore Cancer Center was designed with one goal in mind: fulfilling our continuing mission to provide the most advanced healthcare services by using a multidisciplinary approach for you and your family in a warm and caring environment. Since 1987, Shore Medical Center has received approval from the American College of Surgeons Commission on Cancer by meeting or exceeding the organization's stringent standards for patient care. Only one in four community cancer programs nationwide are qualified to earn this level of approval. The Shore Cancer Center specializes in prevention, advanced pulmonary diagnostics, early detection, radiation oncology, medical oncology, nurse navigation and support services, including nutritional support, guided imagery, social services, tobacco prevention and treatment and a cancer survivorship program. Advanced Pulmonary Diagnostic Center Shore's Advanced Pulmonary Diagnostic Center offers a one-stop setting designed to provide you with a fast, convenient and comprehensive way to have lung nodules and other lesions evaluated or monitored optimally and with state-of-the-art skills and technology. We also provide expedited services in giving a timely diagnosis and treatment approach for those with lung cancer. Under the direction of leading area pulmonologist Dr. Bennett Ojserkis, we have brought together the region's most passionate and highly skilled pulmonary team. Every patient receives thorough testing and consultation to determine their best course of action, thereby minimizing unnecessary medical or surgical procedures. Highlights of 2014 This year, Shore Medical Center's Cancer Center celebrated its 10th anniversary of serving the community in its three-story standalone building across the street from Shore Medical Center. The Cancer Center also celebrated its first full year of its new Medical Oncology Suite, allowing Shore to better serve people in southern New Jersey who require cancer treatment. The suite includes eight spacious infusion therapy bays, three exam rooms, a family waiting room, blanket warmer, nutrition center and a fully equipped and stocked pharmacy with a full-time oncology pharmacist. CardioVascular Institute (CVI) ------------------------------ Shore's CardioVascular Institute brings university setting cardiac and vascular services to the community. The facility houses sophisticated technology for the diagnosis and treatment of disorders of the heart and circulatory system. Shore's comprehensive cardiac care program includes advanced diagnostic capabilities and treatment options, as well as prevention, rehabilitation and education for those with coronary and vascular disease. Shore's 138,000-square-foot Surgical Pavilion includes a state-of-the-art cardiovascular services suite for invasive procedures such as cardiac catheterizations. Patients in need of less invasive testing, including EKGs and echocardiograms, can also have their testing done in the CardioVascular Institute. Shore also offers a non-invasive heart and lung testing center, featuring cardiac stress testing, holter-monitoring and transesophageal echocardiography. Penn Heart and Vascular at Shore Medical Center As a member of Penn Heart and Vascular, Shore Medical Center provides residents of the community with access to a number of high-tech diagnoses, treatments and services. Our affiliation with this national leader in heart care enhances the level of extraordinary cardiac care available in our CardioVascular Institute - and provides quick, coordinated access to a wide range of world-class cardiac services. Shore also provides 24-hour, seven-day-a-week emergency transport to Philadelphia via ambulance or PennSTAR helicopter for cardiac patients in need. Emergency Services ------------------ Emergency Department Whether it's a sprained ankle from a run on the boardwalk or a life-threatening heart attack or stroke, the emergency staff at Shore Medical Center is ready, willing and able to help. Board certified emergency medicine physicians, who are specially trained in cardiology, neurosciences, orthopedics, obstetrics, pediatrics and more, staff the Shore Medical Center Emergency Department. Nationally Recognized Primary Stroke Center Having received Advanced Certification as a Primary Stroke Center by The Joint Commission, our Emergency Department staff and physicians are trained in the care and treatment of stroke patients and skilled in administering tPA, the "clot busting" medication that can provide full cognitive and physical recovery when administered in time. We also provide 24-hour neurology and neurosurgery physician care. Through our membership in the Jefferson Neuroscience Network, Jefferson neuroscience specialists are available digitally 24/7 to evaluate patients, speak with their families and - if needed - facilitate their transfer to another facility for care. Penn Heart Rescue Through the Penn Heart Rescue Program, patients who arrive at the Shore Emergency Department with symptoms of a heart attack can immediately be referred and transported via helicopter to Penn Presbyterian Medical Center in Philadelphia - a part of Penn Medicine. While the helicopter is en route, a flight nurse and paramedic perform the essential tests needed to prepare the patient for an emergency angioplasty so that no time is lost during the 25-minute helicopter flight. Highlights of 2014 In August, Shore Medical Center debuted its new Clinical Decision Unit, an extension of our Emergency Department designed to provide our observation patients with quality care and superior customer service in an efficient and timely manner. This designated space is a high- priority unit where patients are monitored and evaluated to determine whether they should be transitioned to inpatient care or discharged for further outpatient follow-up as necessary. After a successful three-month pilot of the Clinical Decision Unit, Shore Medical Center made the Clinical Decision Unit permanent, renovating the space in 2015 to provide a better patient experience. Neuroscience Center ------------------- Shore Medical Center has received Advanced Certification as a Primary Stroke Center by The Joint Commission, earning the organization's Gold Seal of Approval for strict adherence to the national standards and guidelines that help diagnose and treat stroke faster with better outcomes for our patients. Using state-of-the-art technology, including leading-edge, computer-assisted image guidance and microsurgical instrumentation, Shore's board certified neurosurgeons, neurologists, specially trained nurses and technical staff are able to diagnose and treat neurological injuries and disorders with amazing precision. Shore's Neurosciences Center provides extraordinary high-tech diagnosis and treatment services, which are enhanced through the advanced technology found within the Shore Surgical Pavilion and delivered with the caring touch you expect from Shore Medical Center. Along with its Penn Medicine affiliation, Shore is a member of the world-renowned Jefferson Neuroscience Network, which further ensures the highest quality care for area residents. Specialists from the Shore Neurosciences Center, Penn Medicine and the Jefferson Neuroscience Network collaborate using a multi-disciplinary approach to evaluation, diagnosis and treatment. This team approach provides unmatched services and medical sophistication to our community, a seamless delivery of care and rehabilitation designed to produce the best medical outcomes possible. FORM 990, PART III; STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS Maternity Care Center --------------------- Shore Medical Center has a family-centered approach when it comes to childbirth and the hospitalization of a child. The Maternity Care Center provides patients with a special combination of compassion, expertise and advanced technology. Special attention is paid to helping pregnant mothers and new families develop and maintain those early bonds. Shore's family centered approach to care is also evident in the inpatient Pediatric Care Center. In 2014, 1,258 babies were born at Shore. Maternal-Fetal Medicine Program Sometimes a woman needs additional expertise in the form of a maternal-fetal medicine specialist - an obstetrician who is trained in fetal medicine and high-risk pregnancies. Through our affiliation with Penn Medicine and renowned specialist Dr. Robert Debbs, DO, the Penn Maternal-Fetal Medicine Program at Shore provides these expectant mothers with the specialized care they need. Groundbreaking Pediatric Care Center Shore's kid-friendly Pediatric Care Center is the first of its kind in New Jersey, featuring a dedicated and separate pediatric treatment area for minor illnesses and injuries, as well as inpatient rooms. Children are seen by expert Emergency Department physicians in consultation with the physicians of St. Christopher's Onsite Neonatal Partners. Highlights of 2014 In March, Shore Medical Center debuted its Laborist program, a new initiative that ensures that a highly trained obstetrician-gynecologist is onsite at Shore 24 hours a day, seven days a week to assist patients in labor until their own physician arrives. Headed by Dr. Robin Meadows of Reliance Medical Group, the Laborist program features seven skilled laborists who rotate to assist with gynecological emergencies, inpatient consultations, emergency C-sections and other needs. Thanks to the Laborist program, births at Shore increased by 30 percent in 2014 and reduced the hospital's C-section rates. Advanced Spine & Orthopedic Institute ------------------------------------- The Shore Advanced Spine & Orthopedic Institute (ASOI) is unparalleled, offering a comprehensive continuum of care within a highly integrated healthcare delivery network that takes our patients from diagnosis through treatment and rehabilitation. We help patients deal with everything from everyday aches and strains to sports injuries, serious spine and orthopedic injuries and disease, as well as joint replacement and reconstruction. Our goal is to return our patients to normal function as quickly and safely as possible. Shore Medical Center's Spine Surgery and Hip and Knee Replacement programs have received the Gold Seal of Approval for healthcare quality by The Joint Commission. Advanced Care from the Region's Top Physicians The exceptional spine surgeons at Shore Medical Center have access to some of the most advanced technology available in their fields. When a patient's problem exceeds our advanced capabilities, Shore's affiliation with Penn Medicine and our membership in the Jefferson Neuroscience Network allow for a seamless transfer of care to specialists at these two leading Philadelphia healthcare providers, in addition to the area's most exceptional and passionate physicians. Joint Replacement & Spine Education Joint and spine education classes are offered regularly for patients about to undergo joint replacement or spine surgery, as well as for the community at large through Shore's Advanced Spine & Orthopedic Institute. Highlights of 2014 Through Shore Medical Center's Rapid Recovery hip and knee replacement program, patients are able to recover from their surgery much faster, sometimes leaving the hospital in just 24 hours. The procedure simply moves the surrounding muscles out of the way instead of cutting them, drastically improving the patient's recovery time. In 2014, Shore's ASOI averaged a very impressive 94 percent overall patient satisfaction for hip and knee replacements, with an average length of stay of less than two days. Medical Services ================ Consistent with revenue ruling 69-545, all qualified physicians are eligible for medical staff privileges. During 2014, Shore had 326 physicians on its medical staff comprised of the following medical specialties: Alcohol & drug dependency Allergy/immunology Anesthesiology Cardiology Dermatology Emergency medicine Endocrinology Family practice Gastroenterology Gynecology Hematology Internal medicine Infectious disease Maternal & Fetal medicine Medical oncology Nephrology Neurological surgery Neurology Obstetrics Ophthalmology Orthopedic surgery Otorhinolaryngology Pain management Pathology Pediatrics Physical medicine/rehabilitation Plastic surgery Podiatry Psychiatry Psychology Pulmonary medicine Radiation therapy Radiology Rheumatology Surgery - general Surgery - trauma Surgery - thoracic Surgery - vascular Urology Community Programs and Medical Screenings ========================================= Shore provides numerous medical screening and other programs and services to the community in furtherance of its tax exempt purposes including the following: 1. Shore Speakers Bureau - a free program where Shore healthcare specialists and educators provide screenings, give presentations and do question & answer sessions for community groups who request them. 2. Cancer screenings for the uninsured funded by the NJ Cancer Education and Early Detection grant. - breast - cervical - colon - prostate 3. Mammograms 4. Annual Bayfest Health Fair - cholesterol - glucose - blood pressure screening - stroke assessment - cardiac assessment - sleep and balance testing 5. JCC Senior Expo - cholesterol - glucose - blood pressure screening - stroke risk assessment - cardiac risk assessment - pharaceutical advice - sleep and balance testing Please note that the aforementioned list of medical screening programs is not an all inclusive list. More than 2,500 individuals participated in medical screenings, educational programs and other free wellness programs provided by Shore during 2014. Lectures and seminars ====================== Shore provides numerous lectures, seminars and other educational programs to the community in furtherance of its tax exempt purposes including the following: 1. Shore Beginnings: Prenatal and Wellness - preparation for childbirth and early parenting - nursing your baby - sibling preparation classes - mom-to-mom (post-partum support group) - maternal child health community outreach 2. Cancer Recovery and Supportive Care Services 3. Adult Support Groups - Living at the Shore with Lymphedema - Look good...Feel better 4. Smoking Cessation 5. Free surgical education programs (Neck & Spine Surgery, Joint Replacement Education) 6. Workshops - family life services - health workshops - lifestyle workshops - medical lectures - nutrition Please note that the aforementioned list of community education programs is not an all inclusive list. Community involvement ====================== Shore Medical Center is proud to support our local community in a number of ways, including through sponsorships, walk-a-thons, toy drives, health fairs and expos. In 2014, Shore donated more than $260,000 to support community events, including the Somers Point Bayfest and Good Old Days Festival, Gateway Theater renovations, Egg Harbor Township Educational Foundation, Stockton University gala and golf tournament, Dean Randazzo foundation, the United Way of Greater Philadelphia and Southern New Jersey, the American Cancer Society, Atlantic County Veterans museaum, Mainland High School and Holy Spirit music programs, the American Heart Association Heart Walk, the MS Walk, Walk for the Wounded, the Somers Point Memorial Day Parade, the Community Partnership for Egg Harbor Township Schools, the Milton & Betty Katz Jewish Community Center and their annual Senior Expo, the AC Marathon Series, South Jersey Jazz Society, and much more. Shore Medical Center also provided health screenings at many of these events and other community health fairs at 55 and over communities, fitness centers, and some of our area's larger employers. United Way ---------- Shore employees generously contributed more than $21,000 to the United Way of Greater Philadelphia and Southern New Jersey. The United Way supports more than 60 programs at 39 local health and human services agencies. In December, Shore Medical Center hosted its first ever free "Locals First" Business Fair to build relationships between Shore and local vendors in an effort to boost the local economy. More than 60 business owners from Somers Point and surrounding towns attended and met with members of Shore's Purchasing and Marketing departments. Several contracts were awarded on the spot and in the months following. Vendors also discussed partnership opportunities, including participation in SMC's 2015 Community Business Discount Book. The discount book offers discounts to Shore Employees, Volunteers, Physicians and Contracted Staff. PART III, QUESTION 4D EXPENSES INCURRED IN PROVIDING VARIOUS OTHER MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. PLEASE REFER TO THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT INCLUDED IN SCHEDULE O. CORE FORM, PART VI, SECTION A; QUESTIONS 6 & 7 SHORE MEMORIAL HEALTH SYSTEM ("SYSTEM") IS THE SOLE MEMBER OF THIS ORGANIZATION. SYSTEM HAS THE RIGHT TO ELECT THE MEMBERS OF THIS ORGANIZATION'S BOARD OF TRUSTEES AND HAS CERTAIN RESERVED POWERS AS DEFINED IN THIS ORGANIZATION'S BYLAWS. CORE FORM, PART VI, SECTION B; QUESTION 11B THE ORGANIZATION IS AN AFFILIATE within SHORE MEMORIAL HEALTH SYSTEM and affiliates; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM ("SYSTEM"). SHORE MEMORIAL HEALTH SYSTEM IS THE tax-exempt PARENT ENTITY OF THE SYSTEM. THis ORGANIZATION'S FEDERAL FORM 990 WAS provided TO EACH VOTING MEMBER OF ITS GOVERNING BODY (ITS BOARD OF TRUSTEES) PRIOR TO FILING WITH THE INTERNAL REVENUE SERVICE ("IRS"). THE SHORE MEDICAL CENTER AUDIT AND COMPLIANCE COMMITTEE ASSUMED THE RESPONSIBILITY TO OVERSEE AND COORDINATE THE FEDERAL FORM 990 PREPARATION, REVIEW AND FILING PROCESS. AS PART OF THE ORGANIZATION'S FEDERAL FORM 990 TAX RETURN PREPARATION PROCESS THE ORGANIZATION HIRED A PROFESSIONAL CPA FIRM WITH EXPERIENCE AND EXPERTISE IN BOTH HEALTHCARE AND NOT-FOR-PROFIT TAX RETURN PREPARATION TO PREPARE THE FEDERAL FORM 990. THE CPA FIRM'S TAX PROFESSIONALS WORKED CLOSELY WITH THE ORGANIZATION'S FINANCE PERSONNEL AND SYSTEM INDIVIDUALS INCLUDING THE CHIEF FINANCIAL OFFICER, DIRECTOR OF FINANCE AND VARIOUS OTHER INDIVIDUALS ("INTERNAL WORKING GROUP") TO OBTAIN THE INFORMATION NEEDED IN ORDER TO PREPARE A COMPLETE AND ACCURATE TAX RETURN. THE CPA FIRM PREPARED A DRAFT FEDERAL FORM 990 AND FURNISHED IT TO THE ORGANIZATION'S INTERNAL WORKING GROUP FOR REVIEW. THE ORGANIZATION'S INTERNAL WORKING GROUP REVIEWED THE DRAFT FEDERAL FORM 990 AND DISCUSSED QUESTIONS AND COMMENTS WITH THE CPA FIRM. REVISIONS WERE MADE TO THE DRAFT FEDERAL FORM 990 WHERE NECESSARY AND A FINAL DRAFT WAS FURNISHED BY THE CPA FIRM TO THE ORGANIZATION'S INTERNAL WORKING GROUP FOR FINAL REVIEW AND APPROVAL. A MEETING with the organization's audit and compliance committee WAS ALSO HELD TO REVIEW THE FINAL DRAFT OF THE FEDERAL FORM 990. FOLLOWING THIS REVIEW, THE FINAL FEDERAL FORM 990 WAS provided TO EACH VOTING MEMBER OF THE ORGANIZATION'S GOVERNING BODY PRIOR TO FILING WITH THE IRS. CORE FORM, PART VI, SECTION B; QUESTION 12 THE ORGANIZATION IS AN AFFILIATE within SHORE MEMORIAL HEALTH SYSTEM and affiliates; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM ("SYSTEM"). SHORE MEMORIAL HEALTH SYSTEM IS THE tax-exempt PARENT ENTITY OF THE SYSTEM. THIS ORGANIZATION AND THE SYSTEM REGULARLY MONITOR AND ENFORCE COMPLIANCE WITH ITS CONFLICT OF INTEREST POLICY. ANNUALLY ALL MEMBERS OF THE BOARD OF TRUSTEES, OFFICERS AND SENIOR MANAGEMENT PERSONNEL ARE REQUIRED TO REVIEW THE EXISTING CONFLICT OF INTEREST POLICY AND COMPLETE A QUESTIONNAIRE. THE COMPLETED QUESTIONNAIRES ARE RETURNED TO THE ORGANIZATION AND ITS CHIEF FINANCIAL OFFICER FOR REVIEW. THEREAFTER THE CHIEF FINANCIAL OFFICER PREPARES A SUMMARY OF THE COMPLETED QUESTIONNAIRES WHICH CONTAINS INFORMATION DISCLOSED ON AN INDIVIDUAL BY INDIVIDUAL BASIS AND PRESENTS THIS SUMMARY TO THE ORGANIZATION'S AUDIT AND COMPLIANCE COMMITTEE FOR ITS REVIEW AND DISCUSSION. CORE FORM, PART VI, SECTION B; QUESTION 15 THE ORGANIZATION IS AN AFFILIATE within SHORE MEMORIAL HEALTH SYSTEM and affiliates; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM ("SYSTEM"). SHORE MEMORIAL HEALTH SYSTEM IS THE tax-exempt PARENT ENTITY OF THE SYSTEM. THIS ORGANIZATION'S BOARD OF TRUSTEES HAS AN EXECUTIVE COMPENSATION COMMITTEE ("COMMITTEE"). THE COMMITTEE HAS ADOPTED A WRITTEN EXECUTIVE COMPENSATION PHILOSOPHY WHICH IT FOLLOWS WHEN IT REVIEWS AND APPROVES OF THE COMPENSATION AND BENEFITS OF THE ORGANIZATION'S SENIOR MANAGEMENT INCLUDING, BUT NOT LIMITED TO, THE PRESIDENT/CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER. THE COMMITTEE REVIEWS THE "TOTAL COMPENSATION" OF THE INDIVIDUALS WHICH IS INTENDED TO INCLUDE BOTH CURRENT AND DEFERRED COMPENSATION AND ALL EMPLOYEE BENEFITS, BOTH QUALIFIED AND NON-QUALIFIED. THE COMMITTEE'S REVIEW IS DONE ON AT LEAST AN ANNUAL BASIS AND ENSURES THAT THE "TOTAL COMPENSATION" OF SENIOR MANAGEMENT OF THE ORGANIZATION IS REASONABLE. THE ACTIONS TAKEN BY THE COMMITTEE ENABLE THE ORGANIZATION TO RECEIVE THE REBUTTABLE PRESUMPTION OF REASONABLENESS FOR PURPOSES OF INTERNAL REVENUE CODE SECTION 4958 WITH RESPECT TO THE TOTAL COMPENSATION OF CERTAIN MEMBERS OF THE SENIOR MANAGEMENT TEAM, INCLUDING THE PRESIDENT/CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER. THE THREE FACTORS WHICH MUST BE SATISFIED IN ORDER TO RECEIVE THE REBUTTABLE PRESUMPTION OF REASONABLENESS ARE THE FOLLOWING: 1. THE COMPENSATION ARRANGEMENT IS APPROVED IN ADVANCE BY AN "AUTHORIZED BODY" OF THE APPLICABLE TAX-EXEMPT ORGANIZATION WHICH IS COMPOSED ENTIRELY OF INDIVIDUALS WHO DO NOT HAVE A "CONFLICT OF INTEREST" WITH RESPECT TO THE COMPENSATION ARRANGEMENT; 2. THE AUTHORIZED BODY OBTAINED AND RELIED UPON "APPROPRIATE DATA AS TO COMPARABILITY" PRIOR TO MAKING ITS DETERMINATION; AND 3. THE AUTHORIZED BODY "ADEQUATELY DOCUMENTED THE BASIS FOR ITS DETERMINATION" CONCURRENTLY WITH MAKING THAT DETERMINATION. THE COMMITTEE IS COMPRISED OF MEMBERS OF THE BOARD OF TRUSTEES EACH OF WHO ARE INDEPENDENT AND ARE FREE FROM ANY CONFLICTS OF INTEREST. THE COMMITTEE RELIED UPON APPROPRIATE COMPARABLE DATA; SPECIFICALLY THE COMMITTEE OBTAINED A WRITTEN COMPENSATION STUDY FROM AN INDEPENDENT FIRM WHICH SPECIALIZES IN THE REVIEWING OF HOSPITAL AND HEALTHCARE SYSTEM EXECUTIVE COMPENSATION AND BENEFITS THROUGHOUT THE UNITED STATES. THIS STUDY USED COMPARABLE GEOGRAPHIC AND DEMOGRAPHIC MARKET DATA INCLUDING BUT NOT LIMITED TO SIMILAR SIZED HOSPITALS, # OF LICENSED BEDS AND NET PATIENT SERVICE REVENUE. THE COMMITTEE ADEQUATELY DOCUMENTED ITS BASIS FOR ITS DETERMINATION THROUGH THE TIMELY PREPARATION OF WRITTEN MINUTES OF THE COMPENSATION COMMITTEE MEETINGS DURING WHICH THE EXECUTIVE COMPENSATION AND BENEFITS WAS REVIEWED AND SUBSEQUENTLY APPROVED. THE ACTIONS OUTLINED ABOVE WITH RESPECT TO THE COMMITTEE AND THE ESTABLISHMENT OF THE REBUTTABLE PRESUMPTION OF REASONABLENESS ONLY APPLIES TO CERTAIN SENIOR MANAGEMENT PERSONNEL INCLUDING, BUT NOT LIMITED TO, THE PRESIDENT/CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER. THE COMPENSATION AND BENEFITS OF CERTAIN OTHER INDIVIDUALS CONTAINED IN THIS FORM 990 ARE REVIEWED ANNUALLY BY THE PRESIDENT/CHIEF EXECUTIVE OFFICER WITH ASSISTANCE FROM ORGANIZATION'S HUMAN RESOURCES DEPARTMENT IN CONJUNCTION WITH THE INDIVIDUAL'S JOB PERFORMANCE DURING THE YEAR AND IS BASED UPON OTHER OBJECTIVE FACTORS DESIGNED TO ENSURE THAT REASONABLE AND FAIR MARKET VALUE COMPENSATION IS PAID BY THE ORGANIZATION. OTHER OBJECTIVE FACTORS INCLUDE MARKET SURVEY DATA FOR COMPARABLE POSITIONS, INDIVIDUAL GOALS AND OBJECTIVES, PERSONNEL REVIEWS, EVALUATIONS, SELF-EVALUATIONS AND PERFORMANCE FEEDBACK MEETINGS. CORE FORM, PART VI, SECTION C; QUESTION 19 THE ORGANIZATION HAS ISSUED TAX-EXEMPT BONDS TO FINANCE VARIOUS CAPITAL IMPROVEMENT PROJECTS, RENOVATIONS AND EQUIPMENT. IN CONJUCTION WITH THE ISSUANCE OF THESE TAX-EXEMPT BONDS, THE ORGANIZATION'S FINANCIAL STATEMENTS WERE INCLUDED WITH THE TAX-EXEMPT BOND PROSPECTUS WHICH WAS MADE AVAILABLE TO THE GENERAL PUBLIC FOR REVIEW. IN ADDITION, THE ORGANIZATION'S FILED CERTIFICATE OF INCORPORATION AND ANY AMENDMENTS CAN BE OBTAINED AND REVIEWED THROUGH THE STATE OF NEW JERSEY department of the treasury. CORE FORM, PART VII AND SCHEDULE J PART VII AND SCHEDULE J REFLECT CERTAIN BOARD MEMBERS AND OFFICERS RECEIVING COMPENSATION AND BENEFITS FROM THIS ORGANIZATION. PLEASE NOTE THIS REMUNERATION WAS FOR SERVICES RENDERED AS FULL-TIME EMPLOYEES OF THIS ORGANIZATION AND NOT FOR SERVICES RENDERED AS A VOTING MEMBER OR OFFICER OF THIS ORGANIZATION'S BOARD OF TRUSTEES. CORE FORM, PART VII, SECTION A, COLUMN B THE ORGANIZATION IS AN AFFILIATE within SHORE MEMORIAL HEALTH SYSTEM and affiliates; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM ("SYSTEM"). SHORE MEMORIAL HEALTH SYSTEM IS THE tax-exempt PARENT ENTITY OF THE SYSTEM. THE SYSTEM INCLUDES BOTH FOR-PROFIT AND NOT FOR-PROFIT ORGANIZATIONS. CERTAIN BOARD OF TRUSTEE MEMBERS, OFFICERS AND/OR DIRECTORS LISTED ON CORE FORM, PART VII AND SCHEDULE J OF THIS FORM 990 MAY HOLD SIMILAR POSITIONS WITH BOTH THIS ORGANIZATION AND OTHER AFFILIATES WITHIN THE SYSTEM. THE HOURS SHOWN ON THIS FORM 990, FOR BOARD MEMBERS WHO RECEIVE NO COMPENSATION FOR SERVICES RENDERED IN A NON-BOARD CAPACITY, REPRESENT THE ESTIMATED HOURS DEVOTED PER WEEK FOR THIS ORGANIZATION. TO THE EXTENT THESE INDIVIDUALS SERVE AS A MEMBER OF THE BOARD OF TRUSTEES OF OTHER RELATED ORGANIZATIONS IN THE SYSTEM, THEIR RESPECTIVE HOURS PER WEEK PER ORGANIZATION ARE APPROXIMATELY THE SAME AS REFLECTED ON PART VII OF THIS FORM 990. THE HOURS REFLECTED ON PART VII OF THIS FORM 990, FOR BOARD MEMBERS WHO RECEIVE COMPENSATION FOR SERVICES RENDERED IN A NON-BOARD CAPACITY, PAID OFFICERS AND KEY EMPLOYEES, REFLECT TOTAL HOURS WORKED PER WEEK ON BEHALF OF SHORE MEMORIAL HEALTH SYSTEM; NOT SOLELY THIS ORGANIZATION. CORE FORM, PART XI; QUESTION 9 OTHER CHANGES IN FUND BALANCE INCLUDE: - CHANGE IN FAIR VALUE OF INTEREST RATE SWAP - ($561,108); - OTHER CHANGES IN PENSION AND OTHER POSTRETIREMENT BENEFITS - ($26,109,443); - TEMPORARILY RESTRICTED CHANGE IN INTEREST IN NET ASSETS OF SHORE MEMORIAL HEALTH FOUNDATION, Inc.; a related internal revenue code section 501(c)(3) tax-exempt organization - $416,013; AND - PERMANENTLY RESTRICTED CHANGE IN BENEFICIAL INTEREST IN PERTUAL TRUST - ($16,930). CORE FORM, PART XII; QUESTION 2 THE ORGANIZATION IS AN AFFILIATE within SHORE MEMORIAL HEALTH SYSTEM and affiliates; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM ("SYSTEM"). SHORE MEMORIAL HEALTH SYSTEM IS THE tax-exempt PARENT ENTITY OF THE SYSTEM. AN INDEPENDENT CPA FIRM AUDITED THE CONSOLIDATED FINANCIAL STATEMENTS OF SHORE MEMORIAL HEALTH SYSTEM AND ALL ITS AFFILIATES FOR THE YEARS ENDED DECEMBER 31, 2014 AND DECEMBER 31, 2013; RESPECTIVELY. THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS CONTAIN CONSOLIDATING SCHEDULES ON AN ENTITY BY ENTITY BASIS. THE INDEPENDENT CPA FIRM ISSUED AN UNQUALIFIED OPINION WITH RESPECT TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR each YEAR. THE organization's AUDIT AND COMPLIANCE COMMITTEE HAS ASSUMED RESPONSIBILITY FOR THE OVERSIGHT OF THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS, WHICH INCLUDES THIS ORGANIZATION, AND THE SELECTION OF AN INDEPENDENT AUDITOR. CORE FORM, PART XII; QUESTION 3 THE ORGANIZATION ENGAGED AN INDEPENDENT ACCOUNTING FIRM TO PREPARE AND ISSUE AN A-133 AUDIT. BRIGHTON BAY LLC 100 MEDICAL CENTER WAY SOMERS POINT NJ 08244 454335590 HOLDING COMP. NJ 324847 7872083 SMH SHORE QUALITY PARTNERS LLC 100 MEDICAL CENTER WAY SOMERS POINT NJ 08244 464384840 HEALTH SVCS. NJ 216677 -639940 SMH SHORE HEALTH SERVICES CORPORATION 100 MEDICAL CENTER WAY SOMERS POINT NJ 08244 222866335 HEALTH SVCS. NJ 501(C)(3) 509(A)(3) SMHS false SHORE MEMORIAL HEALTH SYSTEM 100 MEDICAL CENTER WAY SOMERS POINT NJ 08244 222866326 HEALTH SVCS. NJ 501(C)(3) 509(A)(1) N/A false SHORE MEMORIAL HEALTH FOUNDATION INC 100 MEDICAL CENTER WAY SOMERS POINT NJ 08244 342027846 SUPPORT SMH NJ 501(C)(3) 509(A)(1) SMH true SHORE HEALTH ENTERPRISES INC 100 MEDICAL CENTER WAY SOMERS POINT NJ 08244 223501680 RENTAL REAL EST. NJ N/A C CORP. false SHORE MEMORIAL PHYSICIAN'S GROUP PC 100 MEDICAL CENTER WAY SOMERS POINT NJ 08244 275440611 HEALTHCARE SVCS. NJ SMH C CORP. 10758524 1940875 1.00000 true BAYFRONT URGENT CARE PA 100 MEDICAL CENTER WAY SOMERS POINT NJ 08244 274211365 HEALTHCARE SVCS. NJ SMH S CORP. 1008203 157062 1.00000 true SHORE HOSPITALISTS ASSOCIATES PA 100 MEDICAL CENTER WAY SOMERS POINT NJ 08244 472173802 INACTIVE NJ SMH C CORP. 0 0 1.00000 true SHORE PATHOLOGY ASSOCIATES PC 100 MEDICAL CENTER WAY SOMERS POINT NJ 08244 464221478 HEALTHCARE SVCS. NJ SMH C CORP. 897244 186522 1.00000 true SHORE SPECIALTY CONSULTANTS PA 100 MEDICAL CENTER WAY SOMERS POINT NJ 08244 472248436 INACTIVE NJ SMH C CORP. 0 0 1.00000 true false false true true true false false false false false false true false false true false false false true SHORE MEMORIAL HEALTH FOUNDATION INC E 1703562 COST SHORE MEMORIAL PHYSICIAN'S GROUP PC D 935205 COST SHORE MEMORIAL HEALTH FOUNDATION INC E 468036 COST SHORE MEMORIAL PHYSICIAN'S GROUP PC E 312774 COST SHORE PATHOLOGY ASSOCIATES PC E 255000 COST SHORE MEMORIAL HEALTH FOUNDATION INC C 880859 COST SHORE MEMORIAL HEALTH FOUNDATION INC O 1523471 COST SHORE MEMORIAL HEALTH SYSTEM INC O 66876 COST SCHEDULE R, PART V THE ORGANIZATION IS AN AFFILIATE within SHORE MEMORIAL HEALTH SYSTEM AND AFFILIATES; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM ("SYSTEM"). SHORE MEMORIAL HEALTH SYSTEM IS THE TAX-EXEMPT PARENT ENTITY OF THE SYSTEM. Shore MEMORIAL HOSPITAL ROUTINELY PAYS EXPENSES FOR VARIOUS RELATED AFFILIATES IN THE ORDINARY COURSE OF BUSINESS. THESE RELATED PARTY TRANSACTIONS ARE RECORDED ON THE REVENUE/EXPENSE AND BALANCE SHEET STATEMENTS OF THIS ORGANIZATION AND ITS AFFILIATES. THESE ENTITIES WORK TOGETHER TO DELIVER HIGH QUALITY HEALTHCARE AND WELLNESS SERVICES TO THE COMMUNITIES IN WHICH THEY ARE SITUATED.