2015-11-17T07:05:08-06:00 2014-12-31 WithumSmithBrown PC 465 South St Ste 200 Morristown NJ 079606497 990 2014-01-01 221494446 ST MARY'S HOSPITAL % BRIAN O'NEILL STMA 9733654300 350 BOULEVARD PASSAIC NJ 07055 BRIAN O'NEILL CFO 9738989494 2015-11-16 true Scott J Mariani P00642486 9738989494 2014 2016-02-25 16:41:14Z BRIAN O'NEILL 350 BOULEVARD PASSAIC NJ 07055 88992698 false X WWW.SMH-PASSAIC.ORG X 1895 NJ ST. MARY'S IS A NON-PROFIT ACUTE CARE HOSPITAL OFFERING A BROAD RANGE OF HEALTHCARE SERVICES. X 18 18 1215 130 0 9394735 2934617 146813554 83190731 116940 24189 7088505 2687992 163413734 88837529 0 0 0 0 81595073 41924454 0 0 0 76085669 46308690 157680742 88233144 5732992 604385 66888443 0 142026297 0 -75137854 0 X SINCE 1895, WHEN THE SISTERS OF CHARITY OF ST. ELIZABETH FOUNDED THE HOSPITAL, ST. MARY'S HAS BEEN DEDICATED TO SERVING THE HEALTH NEEDS OF THE PEOPLE OF CLIFTON, PASSAIC AND THE SOUTH BERGEN COMMUNITIES. TODAY WE OFFER CONVENIENT ACCESS TO THE LATEST DIAGNOSTIC EQUIPMENT, VARIOUS HEALTHCARE SERVICES RENDERED TO APPROXIMATELY 127,000 PATIENTS WHICH COMPRISE APPROXIMATELY 41,000 PATIENT DAYS ON BOTH AN INPATIENT AND OUTPATIENT BASIS REGARDLESSS OF AN INDIVIDUAL'S ABILITY TO PAY. THESE SERVICES INCLUDE ACUTE MEDICAL/SURGICAL, CRITICAL CARE, OBSTETRICS, NURSERY, AS WELL AS BEHAVIORAL HEALTH. false true 84953037 0 83190731 EXPENSES INCURRED IN PROVIDING VARIOUS 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. 84953037 true true false true false false false false false false false false false false false false false false false false false false false false false true true false false true false false false false false false false false false false false true false true false false false true 149 0 true 1215 true false false false false false false false false false false false false false X 18 18 false false false false false false false true true false false false true true true true true true true false X BRIAN O'NEILL 9733654300 350 BOULEVARD PASSAIC NJ 07055 SR BARBARA CONROY CHAIR - TRUSTEE 1.0 0.0 X X 0 0 0 MARIO MARGHELLA VICE CHAIR - TRUSTEE 1.0 0.0 X X 0 0 0 AHMED MEKKAWY MD SECRETARY - TRUSTEE 1.0 0.0 X X 0 0 0 CRAIG BROWN TREASURER - TRUSTEE 1.0 0.0 X X 0 0 0 SR ELIZABETH CAHILL TRUSTEE 1.0 0.0 X 0 0 0 SR MAUREEN DUNNE TRUSTEE 1.0 0.0 X 0 0 0 SR BARBARA GARLAND TRUSTEE 1.0 0.0 X 0 0 0 VINCENT GIARDINO MD TRUSTEE 1.0 0.0 X 0 0 0 DOLORES HEALEY TRUSTEE 1.0 0.0 X 0 0 0 GEORGE JACOBS TRUSTEE 1.0 0.0 X 0 0 0 HAROLD JAWETZ MD TRUSTEE 1.0 0.0 X 0 0 0 JOHN F LAEZZA JR TRUSTEE 1.0 0.0 X 0 0 0 CHARLES E LAROSA TRUSTEE 1.0 0.0 X 0 0 0 NAVINDER NARANG MD TRUSTEE 1.0 0.0 X 0 0 0 MARILYN POMEROY TRUSTEE 1.0 0.0 X 0 0 0 SR THOMAS MARY SALERNO TRUSTEE 1.0 0.0 X 0 0 0 WILLIAM A WALSH TRUSTEE 1.0 0.0 X 0 0 0 GABRIELLA WEISS MD TRUSTEE 1.0 0.0 X 0 0 0 EDWARD J CONDIT PRESIDENT/CEO 37.5 1.0 X 229491 0 12935 NICHOLAS LANZA CHIEF FINANCIAL OFFICER 37.5 1.0 X 157206 0 14240 CHRISTINA HUTCHINSON CNO 37.5 0.0 X 156311 0 1561 JOHN D ARCH CIO 37.5 1.0 X 74094 0 4675 HUZAIFA SHAKIR MD PHYSICIAN 37.5 0.0 X 145012 0 12788 DANIEL CONROY MD PHYSICIAN 37.5 0.0 X 117447 0 0 879561 0 46199 5 false true false ALLSCRIPTS HEALTHCARE LLC PO BOX 8538 PHILADELPHIA PA 19171 IT 2953515 ACCRETIVE HEALTH INC 401 NORTH MICHIGAN AVENUE CHICAGO IL 60611 PATIENT ACCOUNTING 2705011 RAMAPO VALLEY SURGICAL ASSOCIATES 100 ROUTE 59 SUFFERN NY 10901 ANESTHESIA 1043573 ALLEGIANCE BILLING CONSULTING 333 JERICHO TURNPIKE JERICHO NY 11753 BILLING & COLLECTION 660080 NAVIX DIAGNOSTIC INC PO BOX 403837 ATLANTA GA 30384 VASCULAR 587000 34 X 1000000 1880482 54135 2934617 NET PATIENT SERVICE REVENUE 541900 83190731 83190731 83190731 24189 24189 0 0 97565 155169 -57604 0 -57604 -57604 0 0 0 0 JOINT COMMISSION RESOURCES 900099 2586614 2586614 CAFETERIA 722320 107377 107377 MEDICAL RECORD REVENUE 900099 25750 25750 25855 25855 2745596 88837529 83190731 2712181 X 0 0 0 0 650513 157872 492641 0 34750956 33593406 1157550 1439534 1413622 25912 2797709 2760599 37110 2285742 2161939 123803 0 354397 354397 169322 169322 5700 5700 0 0 11386272 11386272 0 0 0 913672 913672 491197 491197 0 2270571 2270571 113670 113670 0 25259 25259 1310832 1310832 0 1880960 1880960 588095 588095 MEDICAL SUPPLIES 14758364 14758364 0 0 BAD DEBT EXPENSE 9392700 9392700 0 0 REPAIRS AND MAINTENANCE 955962 955962 0 0 DIETARY FEES 669245 669245 0 0 1022472 1022472 88233144 84953037 3280107 0 X 13410 0 978719 0 0 0 40846205 0 0 0 0 0 0 0 2539002 0 577578 0 0 0 20506895 0 83898 0 0 0 0 0 0 0 1342736 0 66888443 0 35354676 0 0 0 6568746 0 38248543 0 0 0 0 0 5466228 0 119109 0 56268995 0 142026297 0 X -75139085 0 1231 0 0 0 -75137854 0 66888443 0 X 604385 74533469 X false false false X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false false false false false false true 5700 5700 false SCHEDULE C, PART II-B; QUESTION 1I THE ORGANIZATION IS A MEMBER OF THE AMERICAN HOSPITAL ASSOCIATION WHICH ENGAGES IN LOBBYING EFFORTS ON BEHALF OF THEIR MEMBER HOSPITALS. A PORTION OF THE DUES PAID TO THIS ORGANIZATION HAS BEEN ALLOCATED TO LOBBYING ACTIVITIES PERFORMED ON BEHALF OF THE ORGANIZATION. THIS ALLOCATION AMOUNTED TO $5,700 IN 2014. true true X true false true true true false true true 11805315 12251000 12961663 11356307 1605356 0.02040 24766978 23607307 1605356 0.02040 24766978 23607307 1605356 0.02040 true 9392700 49887058 52415173 -2528115 X true true 1 1 ST MARY'S HOSPITAL 350 BOULEVARD PASSAIC NJ 07055 WWW.SMH-PASSAIC.ORG 11606 X X X ST MARY'S HOSPITAL 1 false false true X X X X X X X X 12 true false false true X X true 12 false true false true 300. 0. X X true true X true true X false X X true X false false SCHEDULE H, PART V, SECTION B, QUESTION 5 IN ORDER TO OBTAIN INPUT FROM PERSONS WHO REPRESENT THE COMMUNITY, SEVERAL DISTINCT DATA GATHERING AND DATA ANALYSIS METHODS WERE USED INCLUDING: - A SURVEY OF RANDOMLY SELECTED SAMPLES OF BERGEN AND PASSAIC COUNTY RESIDENTS WAS CONDUCTED (AVAILABLE IN ENGLISH, SPANISH, AND POLISH). - A SURVEY OF A GROUP OF KEY INFORMANTS WAS CONDUCTED. KEY INFORMANTS WERE SELECTED ON THE BASIS OF THEIR SPECIALIZED KNOWLEDGE OF THE HEALTH PROBLEMS AND HEALTH SERVICES NEEDS OF BERGEN AND PASSAIC COUNTY. KEY INFORMANTS INCLUDED COUNTY OFFICIALS; HEALTH SERVICES PROVIDERS, ADVOCATES AND CONSUMERS. - A COMPARISON OF COUNTY, STATE, AND NATIONAL HEALTH STATISTICS WAS CARRIED OUT. - A DIRECTORY OF HEALTHCARE SERVICES WAS COMPILED WITHIN THE PART OF THE NEWER PLAN. - MAPPING OF THE LOCATION OF THE IDENTIFIED SERVICES WAS COMPLETED. - A WEBSITE PRESENTING SERVICE SUPPLY DATA WAS DESIGNED. THE STRATEGIC PLANNING COMMITTEE AT ST. MARY'S HOSPITAL DEVELOPED THE SURVEY - IT CONTAINS ROUGHLY 111 QUESTIONS COVERING DEMOGRAPHIC INFORMATION, MEDICAL HISTORY, DOCTOR AND DENTAL NEEDS INFORMATION, SOCIAL AND LIFESTYLE HISTORY AND QUESTIONS REGARDING COMMUNITY SERVICES. IT WAS DISTRIBUTED IN PAPER COPIES AND VIA ONLINE FORMAT. SCHEDULE H, PART V, SECTION B, QUESTION 7D THE HOSPITAL IS LOOKING TO INCLUDE THE CHNA ON ITS WEBSITE WHEN RESOUCES BECOME AVAILABLE TO POST THE REPORT. SCHEDULE H, PART V, SECTION B, QUESTION 8 THE HOSPITAL WAS NOT ABLE TO ADDRESS ALL NEEDS DUE TO LIMITED RESOURCES AND THUS HAD TO PRIORITIZE WHICH ISSUES THE HOSPITAL WOULD FOCUS ON. AS A RESULT, DIABETES SCREENINGS AND EDUCATION SESSIONS WERE NOT ADDRESSED DURING 2013. SCHEDULE H, PART V, SECTION B, QUESTION 11 As discussed above, the facility conducted a comprehensive assessment and a myriad of health needs were identified. Given limited resources, needs were prioritized with consideration of service array offered by the facility and ability to collaborate. SCH H,PART V,SECT B,Q'S 2,3J,6AB,13B,13H,15E,16I,18D,19D,20E,21C,21D,23,24 NOT APPLICABLE. 1 ST MARY'S HOSPITAL SETON CENTER 530 MAIN AVENUE PASSAIC NJ 07055 BEHAVIORAL HEALTH SERVICES 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 2013 POVERTY GUIDELINES (DEPARTMENT OF HEALTH AND SENIOR SERVICES). FPG ARE INCLUDED IN THE CRITERIA FOR DETERMINING ELIGIBILITY FOR CHARITY AND DISCOUNTED CARE. SCHEDULE H, PART I; QUESTION 6A NOT APPLICABLE. SCHEDULE H, PART I; QUESTION 7G NO COSTS RELATING TO SUBSIDIZED HEALTHCARE SERVICES ARE ATTRIBUTABLE TO ANY PHYSICIAN CLINICS. SCHEDULE H, PART I, QUESTION 7 THE BAD DEBT EXPENSE INCLUDED ON FORM 990, PART IX, LINE 25(A), BUT SUBTRACTED FOR PURPOSES OF CALCULATING THE PERCENTAGE IN THIS COLUMN IS $9,392,700. SCHEDULE H, PART II COMMUNITY BUILDING ACTIVITIES UNDERTAKEN BY THE FACILITY IMPROVE THE MEDICAL AND SOCIOECONOMIC WELL-BEING OF THE COMMUNITIES IN OUR CARE. THIS IS ACCOMPLISHED THROUGH A WIDE ARRAY OF ACTIVITIES AND SERVICES SCHEDULE H, PART III, SECTION A; QUESTIONS 2, 3 & 4 THE TOTAL CHARGES FOR EACH PATIENT WRITTEN OFF TO BAD DEBT IN 2014 WERE SUMMED. ACCOUNTS ARE INDIVIDUALLY ANALYZED FOR COLLECTABILITY; IN ADDITION, AN ALLOWANCE IS ESTIMATED FOR OTHER ACCOUNTS BASED ON HISTORICAL EXPERIENCE OF THE HOSPITAL. ACCOUNTS ARE DEEMED UNCOLLECTIBLE AFTER THREE ATTEMPTS ARE MADE TO COLLECT THE DEBT AND THE ACCOUNTS ARE RETURNED TO THE HOSPITAL FROM COLLECTION. BAD DEBT IS ASSUMED TO BE A COMMUNITY BENEFIT BECAUSE THE HOSPITAL HAS ACCEPTED THIS LOSS. SCHEDULE H, PART III, SECTION B; QUESTION 8 MEDICARE COSTS WERE DERIVED FROM THE 2013 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 INDIVIDUAL'S 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 "[T]HE TERM CHARITABLE IS USED IN 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 "REMOVE[D]" 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 EXPE SCHEDULE H, PART III, SECTION B; QUESTION 9B THE HOSPITALS COLLECTION POLICY CONTAINS PROVISIONS FOR THOSE WHO QUALIFY FOR CHARITY CARE. ALL PATIENTS ARE SCREENED FOR FEDERAL AND GOVERNMENTAL PROGRAMS, MEDICARE, MEDICAID, AND NJ FINANCIAL ASSISTANCE. SCHEDULE H, PART VI; QUESTION 2 FOR THE PAST 4 YEARS THE COMMUNITY HEALTH DEPARTMENT HAS CONDUCTED A COMMUNITY HEALTH ASSESSMENT AS REQUIRED BY THE AFFORDABLE CARE ACT. THE MOST RECENT ASSESSMENT WAS COMPLETED IN 2012 AND IS BEING IMPLEMENTED. THE COMMUNITY HEALTH NEEDS ASSESSMENT WAS CONDUCTED WITH A PAPER SURVEY AND SMALL GROUP QUESTIONS AND DISCUSSIONS AT: SENIOR CENTERS, CHURCH GROUPS, AND IMMIGRANT EDUCATIONAL PROGRAMS. WE DO ONE ON ONE INQUIRIES AS WE GO ALONG. WE ALSO HAVE STRONG CONNECTIONS WITH THE FEDERAL QUALIFIED CLINICS ON 8TH STREET, GARFIELD, AND MAIN STREET - THEY TOO HELP US TO MONITOR COMMUNITY NEEDS. SCHEDULE H, PART VI; QUESTION 3 OUTREACH WORKERS EDUCATE PEOPLE IN THE COMMUNITIES WHENEVER POSSIBLE EXPLAINING ANY ASSISTANCE PROGRAMS THAT MAY BE AVAILABLE TO THEM. THE COMMUNITY HEALTH DEPARTMENT WILL THEN CONNECT THEM TO THE HOSPITAL FINANCIAL ASSISTANCE PROGRAMS ADVISORS WHO PROVIDE THE AVAILABILITY OF FINANCIAL ASSISTANCE ON A CASE BY CASE BASIS. THE POLICY IS ALSO POSTED THROUGHOUT THE HOSPITAL INCLUDING EMERGENCY ROOMS, NOTED ON ALL PATIENTS BILLS AND AVAILABLE TO ALL PATIENTS UPON REQUEST. SCHEDULE H, PART VI; QUESTION 4 THE HOSPITAL SERVES PASSAIC, CLIFTON, WALLINGTON, LYNDHURST, RUTHERFORD, EAST RUTHERFORD, CARLSTADT, AND LODI, NEW JERSEY. THE MAJORITY OF THE POPULATION IS CONSIDERED LOW-INCOME. APPROXIMATELY 13.6% OF FAMILIES IN PASSAIC COUNTY ARE BELOW THE FAMILY POVERTY LEVELS. SCHEDULE H, PART VI; QUESTION 5 ST. MARYS HOSPITAL HAS CONSISTENTLY WORKED IN PASSAIC AND ITS SURROUNDING TOWNS IN DESCRIBING PROGRAM, EDUCATIONAL NEEDS AND IN OFFERING FREE HEALTHCARE SCREENINGS. IN ADDITION, THE HOSPITAL CONDUCTS FOOD DRIVES AND PROVIDES CLOTHING AND GENERAL CARE FOR MANY LOW INCOME FAMILIES. SMH COMMUNITY HEALTH DEPARTMENT ENGAGES A COMMUNITY ADVISORY BOARD CONSISTING OF REPRESENTATIVES FROM LOCAL AND COUNTY HEALTH SERVICE AGENCIES. THIS GROUP SEEKS FUNDING /GRANT OPPORTUNITIES TO BENEFIT THE COMMUNITY WE SERVE. ANY SURPLUS FUNDS ARE REINVESTED IN THE CAPITAL OF THE HOSPITAL, USED FOR TECHNOLOGY PURCHASES FOR THE LATEST MEDICAL EQUIPMENT, AND HELD FOR FUTURE USES FOR CARE OF THE INDIGENT. USES FOR CARE OF THE INDIGENT. SCHEDULE H, PART VI; QUESTION 6 THE HOSPITAL IS NOT PART OF A HEALTH SYSTEM BUT COLLABORATES WITH OTHER HEALTH AGENCIES WHENEVER POSSIBLE. SCHEDULE H, PART VI; QUESTION 7 NOT APPLICABLE. THE ORGANIZATION IS LOCATED IN NEW JERSEY. NO COMMUNITY BENEFIT REPORT IS FILED WITH THE STATE OF NEW JERSEY. X X false false false false false false false true false EDWARD J CONDIT PRESIDENT/CEO 174953 0 32500 0 22038 0 0 0 12935 0 242426 0 0 0 NICHOLAS LANZA CHIEF FINANCIAL OFFICER 134706 0 22500 0 0 0 0 0 14240 0 171446 0 0 0 CHRISTINA HUTCHINSON CNO 116042 0 22500 0 17769 0 0 0 1561 0 157872 0 0 0 HUZAIFA SHAKIR MD PHYSICIAN 145012 0 0 0 0 0 0 0 12788 0 157800 0 0 0 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, BOX 5, AS TAXABLE MEDICARE WAGES. PLEASE REFER TO THIS SECTION OF THE FORM 990, SCHEDULE J FOR THIS INFORMATION BY PERSON BY AMOUNT. LICENSED HOSPITAL FACILITY 2014-08-14 25000000 FMV 463499370 PRIME HLTHCARE SVCS - ST MARY'S PA 3300 EAST GUASTI ROAD ONTARIO CA 91761 false true false false SCHEDULE N, PART II; QUESTION 2B THE PRESIDENT/CHIEF EXECUTIVE OFFICER AND OTHER SENIOR MANAGEMENT PERSONNEL OF ST. MARY'S HOSPITAL MAY BECOME PAID EMPLOYEES OF THE PURCHASER; PRIME HEALTHCARE SERVICES-ST. MARY'S PASSAIC, LLC. THE STATE OF NEW JERSEY APPROVED THE SALE OF THE HOSPITAL'S ASSETS AND LIABILITIES PURSUANT TO AN APPROVED CERTIFICATE OF NEED APPLICATION ON JUNE 13, 2014. CORE FORM, PART III, QUESTION 3 EFFECTIVE WITH THE CLOSE OF BUSINESS ON AUGUST 14TH, 2014, THE OWNERSHIP OF ST. MARY'S HOSPITAL WAS TRANSFERRED TO PRIME HEALTHCARE SERVICES-ST. MARY'S PASSAIC, LLC, A DELAWARE LIMITED LIABILITY COMPANY. DUE TO THE DIFFICULTY IN SEPARATING FINANCIAL INFORMATION POST CLOSING DATE, THIS FORM 990 INCLUDES REVENUE AND EXPENSE INFORMATION FOR THE PERIOD OF JANUARY 1, 2014 THROUGH JULY 31, 2014 ONLY. CORE FORM, PART VI, SECTION B; QUESTION 11B THE ORGANIZATION'S FEDERAL FORM 990 WAS PROVIDED TO EACH MEMBER OF THE ORGANIZATION'S FINANCE COMMITTEE OF THE BOARD OF DIRECTORS PRIOR TO FILING WITH THE INTERNAL REVENUE SERVICE ("IRS"). IN ADDITION, THE ORGANIZATION'S FINANCE 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 SYSTEM HIRED A PROFESSIONAL CERTIFIED PUBLIC ACCOUNTING ("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 SENIOR VICE PRESIDENT/GENERAL COUNSEL, EXECUTIVE VICE-PRESIDENT AND CHIEF FINANCIAL OFFICER, VICE PRESIDENT OF INTERNAL AUDIT AND VARIOUS OTHER INDIVIDUALS 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 AND TO EACH MEMBER OF FINANCE COMMITTEE OF THE BOARD OF DIRECTORS FOR REVIEW. THE ORGANIZATION'S FINANCE PERSONNEL AND ITS FINANCE COMMITTEE 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 AND FINANCE COMMITTEE FOR FINAL REVIEW AND APPROVAL. CORE FORM, PART VI, SECTION B; QUESTION 12 THE HOSPITAL HAS A CORPORATE COMPLIANCE POLICY WHICH ADDRESSES CONFLICTS OF INTEREST IN PLACE THAT THE BOARD MEMBERS AND OFFICERS READ AND SIGN OFF ON ANNUALLY. THE COMPLIANCE OFFICER REVIEWS AND MONITORS THE POLICY AND IS KEPT INFORMED OF ANY COMPLIANCE ISSUES. VIOLATIONS ARE HANDLED ON A CASE BY CASE BASIS. CORE FORM, PART VI, SECTION B; QUESTION 15 THE BOARD OF TRUSTEES IN EXECUTIVE SESSION REVIEWS THE COMPENSATION OF EXECUTIVES. AN ANALYSIS IS PRESENTED AND REVIEWED AS TO ACCOMPLISHMENTS AGAINST ESTABLISHED GOALS. THE FINANCIAL AND CLINICAL PERFORMANCE OF THE HOSPITAL IS REVIEWED AGAINST INDUSTRY BENCHMARKS. FINALLY, MARKET COMPENSATION DATA IS REVIEWED AND COMPARED TO EXECUTIVE COMPENSATION AS TO REASONABLENESS OF COMPENSATION LEVELS TO ENSURE COMPENSATION DOES NOT EXCEED FAIR MARKET VALUE. THE EXECUTIVES SALARIES ARE APPROVED BY THE BOARD AND DOCUMENTED VIA EXECUTIVE SESSION MINUTES. CORE FORM, PART VI, SECTION C; QUESTION 19 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. IN ADDITION, THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. CORE FORM, PART XI; QUESTION 9 OTHER CHANGES IN NET ASSETS OR FUND BALANCE INCLUDE: - TRANSFER OF OWNERSHIP TO PRIME HEALTHCARE SERVICES-ST. MARY'S PASSAIC, LLC, A DELAWARE LIMITED LIABILITY COMPANY; $74,533,469. FORM 990 PART IX LINE 11G DESCRIPTION:CONSULTING SERVICES TOTAL FEES:11386272 ST MARY'S HEALTH CORPORATION 350 BOULEVARD PASSAIC NJ 07055 222859710 HOLDING CO. NJ 501(C)(3) NA false ST MARY'S HOSPITAL FOUNDATION 350 BOULEVARD PASSAIC NJ 07055 542116468 FUNDRAISING NJ 501(C)(3) 509(A)(3) NA false false false false false false false false false false false false false false false false false false false false