2015-05-01T10:50:03-05:00 2013-06-30 KPMG LLP 300 North Greene Street Suite 400 Greensboro NC 27401 990 2012-07-01 800785570 TANNER MEDICAL CENTER GROUP RETURN % CAROL CREWS TANN 7708369580 705 DIXIE STREET Suite CARROLLTON GA 30117 CAROL CREWS 7708369580 2015-04-28 true 3362753394 2015-04-28 2012 2016-02-25 16:41:14Z X LOY M HOWARD CEO 705 DIXIE STREET CARROLLTON GA 30117 163264766 true true 9705 X WWW.TANNER.ORG X 1999 GA TO SERVE COMMUNITIES THROUGHOUT WEST GEORGIA AND EAST ALABAMA BY OFFERING A WIDE RANGE OF PRIMARY CARE AND SPECIALTY PRACTICES. 13 9 1292 54 287467 38147 0 186564649 160354721 -209931 122993 2542165 2562052 188935030 163039766 0 0 0 0 82782777 85813884 0 0 0 106244068 87336585 189026845 173150469 -91815 -10110703 104992146 109265611 9709740 9501203 95282406 99764408 TO SERVE COMMUNITIES THROUGHOUT WEST GEORGIA AND EAST ALABAMA BY OFFERING A WIDE RANGE OF PRIMARY CARE AND SPECIALTY PRACTICES. false false 53644536 34064446 Tanner Medical Center, Inc Group Physicians offer a wide range of medical specialties, including interventional and non-interventional cardiology, family medicine, gastroenterology, general surgery, infectious diseases, internal medicine, neurology, obstetrics and gynecology, oral and maxillofacial surgery, pediatrics, psychiatry, pulmonary and critical care medicine, surgical breast care and vascular surgery. 20120473 31544145 TMC/Higgins General Hospital, Inc. provides medical services which include inpatient, outpatient, and ancillary services. As a not for profit corporation, the organization provides services to patients regardless of their ability to pay for these services. 54837589 95259524 TMC/Villa Rica Hospital, Inc. (Villa Rica) operates a 40-bed acute care hospital that serves the residents of Carroll, Douglas, and Paulding counties and other west Georgia communities. Villa Rica also operates a 52-bed inpatient psychiatric facility that serves patients from all across the state. 128602598 true false false false false false false false false false true false false true true true false true false false false false false false false false true true false false true false false false true false true false false false false false false false true false false false true 28 0 true 1292 true true true false false false false false false false false false X 13 9 false false false false false false false true true false false false true true true true true true true false GA X CAROL CREWS 7708369580 705 DIXIE STREET CARROLLTON GA 30117 STEVE ADAMS 1.0 2.0 X LARRY BOGGS 1.0 1.0 X JOHN BURSON III MD 1.0 1.0 X JERRY CLAYTON 1.0 1.0 X MARY COVINGTON 1.0 2.0 X DANIEL JACKSON 1.0 1.0 X STEPHEN KAHLER MD 1.0 1.0 X JEFF LINDSEY DMD 1.0 1.0 X ROBERT PITTS MD 1.0 1.0 X NITA PRICE 1.0 1.0 X TIMOTHY WARREN 1.0 2.0 X GELON WASDIN 1.0 2.0 X LOY HOWARD 17.0 24.0 X X 762040 1129011 206510 LEE SHERSETH 17.0 23.0 X 253846 343439 50592 LARRY STEED 17.0 23.0 X 260108 351911 43928 DENISE TAYLOR 17.0 23.0 X 140877 190597 31489 WILLIAM WATERS MD 17.0 23.0 X 269093 364068 51964 MARIA RUSSO 17.0 23.0 X 172410 233261 43065 WAYNE SENFELD 17.0 23.0 X 93184 126073 9409 DEBORAH HOLLENSTEIN 17.0 23.0 X 78889 106733 30196 CYNTHIA MASTERS 17.0 23.0 X 95740 129531 19112 CAROL CREWS 17.0 23.0 X 74117 100276 25551 STEPHANIE YATES 17.0 23.0 X 76083 102937 29234 SUSAN FOX 30.0 10.0 X 128820 42940 19635 DENENE COFIELD 17.0 23.0 X 73458 99384 24847 VIVIAN BARR 17.0 23.0 X 72308 97827 17073 DAVID THORNHILL 17.0 23.0 X 66722 90270 20242 MIKE ALEXANDER 40.0 X 230981 0 31927 SHAZIB KHAWAJA 40.0 X 1298663 0 33040 RICHARD BLAND 40.0 X 1255297 0 34132 CHRISTOPHER ARANT 40.0 X 1006985 0 33042 SHERRY CAMPBELL 40.0 X 639786 0 20257 GLENN WHITNEY 40.0 X 570810 0 26596 DALE DREILING 17.0 23.0 X 140773 190457 10278 7760990 3698715 812119 119 true true false JR CONSTRUCTION DEVELOPMENT 281 TOM REEVE DR CARROLLTON GA 30117 CONSTRUCTION 3434199 SOUTHERN THERAPY SERVICES INC 120 EAST CENTER STREET CARROLLTON GA 30117 PHYSICAL THERAPY 1661443 WEST GEORGIA ELECTRIC CORPORATION 108 PARKWOOD CIRCLE CARROLLTON GA 30117 UTILITIES 1556248 LABORATORY CORPORATION OF AMERICA PO BOX 12140 BURLINGTON NC 27216 LAB 1553408 MULTIPLE SCLEROSIS CENTER 3200 DOWNWOOD CIRCLE SUITE 550 ATLANTA GA 30327 MS MGMT/RENT 1069350 28 0 NET PATIENT REVENUE 623000 160067254 160067254 REFERENCE LAB - TMC/HIGGINS 621500 91452 91452 REFERENCE LAB - TMC/VILLA RICA 621500 196015 196015 160354721 0 0 0 0 0 0 347993 225000 122993 122993 122993 0 0 0 CAFETERIA 624200 401857 401857 HOUSEKEEPING 621990 30110 30110 VENDING INCOME 624200 10696 10696 2119389 2119389 2562052 163039766 162186643 287467 565656 0 0 0 0 6879231 6879231 0 71285013 69724959 1560054 0 2802153 2735547 66606 165950 165950 4681537 4578647 102890 756949 756949 0 0 0 0 0 10446043 10389386 56657 57016 47222 9794 2989368 2878362 111006 0 0 2969043 2969043 343683 328811 14872 0 151848 136694 15154 0 0 8846820 7954855 891965 1146437 1146437 SHARED SERVICES 41699455 41699455 MEDICAL SUPPLIES 16266729 16266729 LICENSES AND TAXES 927143 927143 REPAIRS AND MAINTENANCE 261596 256410 5186 474455 460223 14232 173150469 128602598 44547871 0 51007 1122264 0 0 0 0 15763128 14796134 0 0 0 0 0 0 2020923 2065554 234852 156870 131923629 55242473 68806098 76681156 0 0 0 0 0 0 5666677 4762951 12449461 9680682 104992146 109265611 8269222 6098541 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1440518 3402662 9709740 9501203 X 95282406 99764408 0 0 0 0 95282406 99764408 104992146 109265611 -10110703 14592705 X false true X true false X 8942914 8942914 78116703 26804995 51311708 1841074 449080 1391994 41591095 27988398 13602697 1431843 1431843 76681156 DUE FROM RELATED PARTIES 7848097 INDIGENT TRUST FUND RECEIVABLE 1789329 OTHER RECEIVABLES 43256 9680682 0 THIRD PARTY SETTLEMENTS 3402662 3402662 X ASC 740 DISCLSOURE Schedule D, Part X The Medical Center is a not-for-profit corporation that has been recognized as tax-exempt pursuant to section 501(c)(3) of the Internal Revenue Code. The Medical Center applies accounting policies that prescribe when to recognize and how to measure the financial statement effects of income tax positions taken or expected to be taken on its income tax returns. These rules require management to evaluate the likelihood that, upon examination by the relevant taxing jurisdictions, those income tax positions would be sustained. Based on that evaluation, the Medical Center only recognized the maximum benefit of each income tax position that is more than 50% likely of being sustained. To the extent that all or a portion of the benefits of an income tax position are not recognized, a liability would be recognized for the unrecognized benefits, along with any interest and penalties that would result from disallowance of the position. Should any such penalties and interest be incurred, they would be recognized as operating expenses. Effective November 15, 2010, Tanner Medical Center/Villa Ricas tax-exempt status under Internal Revenue Code Section 501(c)(3) was automatically revoked by the Internal Revenue Service (IRS) for failure to file an annual return for three consecutive years. Specifically, Tanner Medical Center/Villa Rica was improperly included in the parent entitys group IRS Form 990 for the tax years ended June 30, 2007, 2008, and 2009, rather than also filing a separate return. The Medical Center subsequently filed appropriate returns with the IRS for the tax year ended June 30, 2009 relative to Tanner Medical Center/Villa Rica, as well as Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code. On August 27, 2013, the IRS approved Tanner Medical Center/Villa Ricas application for exempt status effective July 25, 2012, the posting date of its application. The IRS is currently considering approval of the Medical Centers request for retroactive reinstatement of Tanner Medical Center/Villa Ricas tax-exempt status for the period November 15, 2010 through July 24, 2012. Given the nature of the initial revocation of tax-exempt status and the remedies provided to the IRS to-date in accordance with its established reinstatement protocols, the Medical Centers position is that a favorable outcome is more than 50% likely of being sustained. Based on the results of management's evaluation, no liability is recognized in the accompanying balance sheet for unrecognized income tax positions. Further, no interest or penalties have been accrued or charged to expense as of June 30, 2013 and 2012 or for the years then ended. Tanner Medical Group is part of a tax-exempt organization pursuant to Section 501(c)(3) of the Internal Revenue Code. The affiliated business services provided are, however, subject to unrelated business income taxes and a Form 990-T, Exempt Organization Business Income Tax Return is filed for these services. As of 2013 and 2012, Tanner Medical Group has not recorded income tax expense due to net operating losses. true true X true X 125. true X true true true false true true 9405998 9405998 0.05430 25161849 25018010 143839 0.00080 34567847 25018010 9549837 0.05510 2230328 2230328 0.01290 32206 32206 0.00020 109467 109467 0.00060 2372001 2372001 0.01370 36939848 25018010 11921838 0.06880 4050 4050 0.00010 50352 50352 0.00020 9348 9348 0.00010 33941 33941 0.00020 1194653 1194653 0.00690 1292344 1292344 0.00750 true 15187521 21763379 19097779 2665600 X true true 2 1 TMCHIGGINS GENERAL HOSPITAL

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X X X PSYCH UNIT TMCHIGGINS GENERAL HOSPITAL true X X X X X X X X X 13 true true true X X X X X X X X X X X false false true true 125. true 200. true X X X X X X X true true X X X X X true false true X false false TMCVILLA RICA HOSPITAL INC true X X X X X X X X X 13 true true true X X X X X X X X X X false false true true 125. true 200. true X X X X X X X true true X X X X X true false true X false false COSTING METHODOLOGY Schedule H, Part I, Line 7 CHARITY CARE AND CERTAIN OTHER COMMUNITY BENEFIT COSTS WERE DETERMINED USING DATA FROM THE AUDITED FINANCIAL STATEMENTS AND MEDICARE AND MEDICAID COST REPORTS. PART I, LINE 7, COLUMN F: THIS IS THE PERCENTAGE OF NET COMMUNITY BENEFIT OF TOTAL FUNCTIONAL EXPENSES. COMMUNITY BUILDING ACTIVITIES Schedule H, Part II Tanner provides the funding for a 24-hour information hotline, provided free to callers. The Hotline - 770-214-2273 - provides callers with information on physicians and specialists, and provides referrals to medical staff based on a caller's needs, location and insurance information. The line also provides callers with information on a wide range of free health education classes and health screenings provided by Tanner, and allows callers to register for classes and events over the phone. In addition to the 24-hour hotline, Tanner also provides a web site, www.tanner.org, with a free, extensive health library with articles covering a range of subjects, from medical tests and procedures to symptoms, conditions and more. Visitors can also access free online health assessments, health news, healthy recipes and more. To improve access to medical care in the region, Tanner continued its work to recruit more physicians to practice in the area, enabling patients to choose from a greater number of providers in an expanded field of specialties. BAD DEBT EXPENSE Schedule H, Part III, Line 4 EXCERPT FROM THE FINANCIAL STATEMENTS - THE SYSTEM INCURRED BAD DEBT EXPENSE, VALUED AT ESTABLISHED CHARGES, OF $15,187,521 AND $19,547,872 FOR YEARS ENDED JUNE 30, 2013 AND 2012, RESPECTIVELY. MEDICARE Schedule H, Part III, Line 8 AMOUNTS REPORTED ON SCHEDULE B ARE BASED ON THE MEDICARE COST REPORTS. COLLECTION PRACTICES Schedule H, Part III, Line 9B Patients that qualify for a charity write off are only held responsible for the portion remaining after write off. Patients that qualify as indigent receive a 100% write off and are not responsible. Patients approved for financial assistance receive a Letter of Notification that is good for one year from the determination date. Interest free installment plans are available to all patients and payment amounts are determined by the patient's disposable wages and ability to pay. NEEDS ASSESSMENT: The organization conducts a study of its service area to determine locations where access to medical care is limited, as well as to determine the appropriate number of primary care and specialty providers based on the needs of the communities that Tanner serves. The organization also works closely with community partners with similarly-aligned missions, including partnering with the Carroll County Health Department in community-wide vaccination programs and providing financial assistance to sponsor further research into specific community needs. PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE: Tanner patients are provided with information pertaining to the organization's charity/indigent program at the time of registration. Any self-pay or under-insured patients must meet criteria for indigent care in order to have the cost of their care written off by the system. Patients are interviewed and financial statements are prepared. Patients who meet the criteria for Medicaid eligibility are referred to an outside vendor for assistance. Charity patients are defined as falling between 125 to 200 percent of the federal poverty guidelines; indigent patients are defined as falling below the 125 percent federal poverty guidelines and receive a 100 percent write off. Translation assistance is provided for patients as needed. COMMUNITY INFORMATION: Haralson County is located in the west central section of Georgia, along the Georgia-Alabama state line. The county has a population of just more than 28,000 residents. Most recently, growth in the area has been hampered by the economic impact from the lingering recession, and housing prices have fallen. The county's unemployment rate is approximately 9.6 percent, higher than the state or national rates. Regionally, Haralson County is an economic center with seven incorporated municipalities. HEALTH OF COMMUNITY IN RELATION TO EXEMPT PURPOSE: The organization is committed to providing care for every member of the community it serves, regardless of ability to pay. That care will be provided in advanced facilities with a focus on patient satisfaction and achievement of best possible outcomes. During the year, the organization provided health education through sponsorship of the "Community Voice" radio program on a local station, which featured a number of physicians and health professionals discussing and taking calls on a wide range of subjects. AFFILIATED HEALTH CARE SYSTEM TANNER MEDICAL CENTER, INC. IS A HEALTHCARE SYSTEM PROVIDING INPATIENT, OUTPATIENT, AND EMERGENCY CARE SERVICES TO RESIDENTS OF WEST GEORGIA AND SURROUNDING AREAS. TANNER MEDICAL CENTER/VILLA RICA WAS ESTABLISHED TO PROVIDE COMPREHENSIVE HEALTH CARE SERVICES THROUGH THE OPERATION OF A 40-BED ACUTE CARE HOSPITAL AND WILLOWBROOK AT TANNER/VILLA RICA, A 52 BED PSYCHIATRIC FACILITY IN VILLA RICA, GEORGIA. TANNER MEDICAL CENTER/HIGGINS GENERAL HOSPITAL WAS ESTABLISHED TO PROVIDE COMPREHENSIVE HEALTH CARE SERVICES THROUGH THE OPERATION OF A 25-BED CRITICAL ACCESS HOSPITAL IN BREMEN, GEORGIA. TANNER MEDICAL GROUP OPERATES PHYSICIAN PRACTICES IN WEST GEORGIA AND EASTERN ALABAMA. COMMUNITY BENEFIT REPORT: The Tanner Medical Center community benefit report, filed in Georgia, can be found on the web at: http://www.tanner.org/Main/HealthyLivingmagazine.aspx NEEDS NOT ADDRESSED SCHEDULE H, PART V, SECTION B, LINE 7 Lack of local, long-term substance abuse treatment centers was noted as an area of concern by community focus group participants. While Tanner is committed to providing behavioral/mental health services and substance abuse services to adults, adolescents and children in the west Georgia region through Willowbrooke at Tanner's many programs and services, the addition of a long-term residential substance abuse treatment program is currently outside of Tanner's scope of resources. Tanner will continue to work collaboratively with various community organizations and agencies to further address gaps in the provision of substance abuse care, along with conducting a comprehensive evaluation to identify opportunities to improve substance abuse treatment services throughout the community. SCHEDULE H, PART V, SECTION B, LINE 3 Who Participated The assessment process was conducted in two phases: Phase One, which consisted of the collection and review of secondary quantitative data from existing public health data and reports; and Phase Two, which included the collection of primary, qualitative data through community surveys, key informant interviews and community focus groups. For Phase Two, Tanner Health System's community benefit team developed the community health needs assessment plan in October 2011. This plan was introduced to the Tanner Medical Center, Inc. Board of Directors on October 10, 2011 for approval. The survey period for the public ran from November 2011-February 2012 (Carroll, Haralson and Heard counties) and reopened from January 2013-February 2013 (Heard county). Tanner reached out to a vast area of the community through its Healthy Living magazine, published quarterly and distributed to 46,525 homes, as well as through an additional 3,000 copies distributed to area medical offices and public areas in Tanner facilities throughout Carroll, Haralson and Heard counties. In addition, Tanner conducted three mass e-mail messages to 6,500 community members who have voluntarily joined the health system's e-mail distribution list; these e-mail blasts went out on November 30, 2011, December 30, 2011 and February 25, 2012; 2,600 paper surveys were distributed to various community events at senior centers, schools, housing authorities and to high-risk groups in Carroll, Haralson and Heard counties; and members of the boards of Tanner Medical Center, Inc., and Tanner Medical Foundation, Inc., were provided surveys to be completed at their November 2011 board meetings. Along with the large-scale effort to collect data from community surveys during Phase Two, the community benefit team also conducted community focus groups throughout Tanner Health System's primary service area of Carroll, Haralson and Heard counties. These focus groups were facilitated by Debbie Hollenstein, vice president of Marketing and Planning for Tanner Health System. (For a list of individuals who participated in the Tanner Medical Center/Villa Rica focus group, see Appendix A.) The focus group for Tanner Medical Center/Villa Rica consisted of community leaders, public officials, businesses and social service organizations. Additionally, two key informant interviews were held: one with Jack Birge, MD, chairman of the Carroll County Board of Public Health; and another with Cherry Toney, a certified nurse practitioner practicing in two rural primary care clinics in Carroll County and a clinic in Heard County. The focus groups and interviews provided more in-depth information regarding the leading health issues and priorities in the area, as well as the opportunity to identify potential partners for future collaborations to address the health issues found in the community. For further public health input, the assessment was reviewed by representatives from the Centers for Disease Control and Prevention (CDC) and the Georgia Department of Public Health (DPH), including the DPH's commissioner and state health officer, Brenda Fitzgerald, MD upon completion. CHNA CONDUCTED FOR ALL HOSPITAL FACILITIES SCHEDULE H, PART V, LINE 4 THE CHNA WAS CONDUCTED FOR ALL HOSPITAL FACILITIES, INCLUDING: Tanner Medical Group, Inc. TMC/Higgins General Hospital Inc. TMC/Villa Rica Hospital, Inc. TMC Woodland Family Healthcare, Inc. TMC Tanner Neurology Inc. TMC Carousel Pediatrics Inc. TMC Internal Medicine of Villa Rica TMC Childrens Healthcare of West GA TMC Gastroenterology Associates, Inc. TMC Infectious Diseases of West Georgia, Inc. TMC West Georgia Behavioral Health TMC West GA Family Medicine, Inc. TMC Internal Medicine of Carrollton, Inc. TMC Carrollton Family Healthcare, Inc. TMC Internal Medicine Associates TMC West Georgia Cardiology, Inc. Tanner Medical Group, Inc. TMC Home Health, Inc. TMC Hospice Care, Inc. TMC Occupational Health, Inc. TMC Haralson Family Healthcare TMC Tallapoosa Family Healthcare TMC West Georgia Anesthesia Associates, Inc. Tanner Intensive Medical Services TMC West Carroll Family Healthcare Tanner Family Healthcare of Franklin TMC Immediate Care Villa Rica OB GYN, Inc. TMC Tanner Gynecology, Inc. Tanner Primary Care of Heflin Tanner Primary Care of Wedowee, Inc. CHNA REPORT WIDELY AVAILABLE TO THE PUBLIC SCHEDULE H, PART V, SECTION B, LINE 5C COPIES WERE PRESENTED TO COMMUNITY STAKEHOLDERS. X X X X X X true true false false false false false true false LOY HOWARD 354492 479607 72368 97910 335180 551494 45353 61360 42414 57383 849807 1247754 0 0 LEE SHERSETH 167790 227011 42276 57197 43780 59231 7227 9777 14275 19313 275348 372529 0 0 LARRY STEED 184364 249433 43531 58896 32213 43582 7597 10279 11072 14980 278777 377170 0 0 DENISE TAYLOR 108657 147006 22834 30893 9386 12698 4684 6337 8699 11769 154260 208703 0 0 DALE DREILING 140067 189502 0 0 706 955 0 0 4368 5910 145141 196367 0 0 WILLIAM WATERS MD 236788 320361 19680 26626 12625 17081 10041 13585 12044 16294 291178 393947 0 0 MARIA RUSSO 132011 178604 29982 40564 10417 14093 6163 8338 12140 16424 190713 258023 0 0 WAYNE SENFELD 79138 107069 12622 17077 1424 1927 0 0 3999 5410 97183 131483 0 0 DEBORAH HOLLENSTEIN 68370 92501 10519 14232 0 0 0 0 12833 17363 91722 124096 0 0 CYNTHIA MASTERS 80334 108688 15406 20843 0 0 0 0 8123 10989 103863 140520 0 0 CAROL CREWS 64980 87914 9137 12362 0 0 0 0 10859 14692 84976 114968 0 0 STEPHANIE YATES 66202 89568 9881 13369 0 0 0 0 12424 16810 88507 119747 0 0 SUSAN FOX 111719 37240 17101 5700 0 0 0 0 8345 11290 137165 54230 0 0 DENENE COFIELD 66710 90255 6748 9129 0 0 0 0 10560 14287 84018 113671 0 0 VIVIAN BARR 65985 89273 6323 8554 0 0 0 0 7256 9817 79564 107644 0 0 DAVID THORNHILL 61129 82703 5593 7567 0 0 0 0 8603 11639 75325 101909 0 0 MIKE ALEXANDER 198970 0 26011 0 6000 0 0 0 31927 0 262908 0 0 0 SHAZIB KHAWAJA 827349 0 451314 0 20000 0 0 0 33040 0 1331703 0 0 0 RICHARD BLAND 866545 0 303335 0 85417 0 0 0 34132 0 1289429 0 0 0 CHRISTOPHER ARANT 501001 0 450484 0 55500 0 0 0 33042 0 1040027 0 0 0 SHERRY CAMPBELL 168590 0 235598 0 235598 0 0 0 20257 0 660043 0 0 0 GLENN WHITNEY 511477 0 0 0 59333 0 0 0 26596 0 597406 0 0 0 OTHER ADDITIONAL INFORMATION SCHEDULE J, PART III Loy Howard, CEO participates in an ineligible unfunded 457(F) plan provided to senior executives as set by his employment contract. The plan payments are subject to substantial risk of forfeiture and are conditioned upon the future performance of services. Tanner Medical Center, Inc. Long Term Retention Plan is an unfunded top-hat plan that is provided to Mr. Howard. Vesting occurs in 10% increments yearly and fully vests June 30, 2021. Plan payments are subject to substantial risk of forfeiture and are conditioned upon the future performance of services. Mr. Howard is also eligible for the Tanner Advantage Deferred Compensation Plan which is an eligible unfunded 457(B) top-hat plan available to senior executives and physicians. A contribution equal to the IRS maximum contribution limit for the year is made on Mr. Howard's behalf each year. Contributions for all three plans remain the sole property of Tanner and are subject to the claims of general creditors until distributed to the participant. COMPENSATION PROCESS FOR TOP OFFICIAL FORM 990, SCHEDULE J, PART I, QUESTION 3 The organization's compensation committee reviews recommendations and approves compensation packages for all senior management. TMC uses an outside, nationally known compensation and benefits firm that uses survey information; reviews job standards; etc. for all senior management. The outside firm analyzes comparable compensation data for similarly qualified persons in functionally comparable positions at similarly situated organizations; and presents the data to the compensation committee. With respect to deliberations and decisions regarding the compensation arrangement, official minutes are kept. The Executive Assistant to the CEO maintains the minutes. This process last completed in 2013. SEVERANCE, NONQUALIFIED, AND EQUITY-BASED PAYMENTS SCHEDULE J, PART I, LINE 4 Severance Nonqualified Equity-Based Loy Howard 0 89,214 0 Dale Dreiling 331,230 0 0 NON-FIXED PAYMENTS PROVIDED SCHEDULE J, PART I, LINE 7 The CEO of the organization is eligible to receive incentive compensation in such amount, if any, as determined by the Executive Compensation Committee of the Board in its sole discretion, based on, among other things, the attainment of annual objectives established by the Board. Various employees are eligible to receive bonuses. DR JOHN BURSON BOARD MEMBER PURCHASE PROPERTY X 1600000 443373 false true true 443373 STEVE ADAMS BOARD MEMBER 13709 AMBULANCE SERVICES false ADDITIONAL INFORMATION SCHEDULE L, PART II The organization purchased property from Dr. John Burson, JHB Properties, at fair market value of $1,600,000 and a note payable was established in June 2002. In March 2003, a lump sum payment was made and the note was reduced to $1,000,000. The balance of the note as of June 30, 2013 was $443,373 and was paid off completely shortly after year end. ADDITIONAL INFORMATION SCHEDULE L, PART IV Steve Adams, Board Member, owns an ambulance company that provides patient transportation services to the system. The organization follows a specific process to bid out these services via outside legal counsel to ensure these services are at fair market value. ORGANIZATION'S PROCESS TO REVIEW FORM 990 Form 990, Part VI, Line 11B The organization's VP of Finance gathers information for the Form 990 and consults with the CFO and compliance officer on certain matters. A draft copy is reviewed by the VP of Finance and CFO for accuracy. The final version is presented to the Executive Committee for review and questions. The Chairman of the Executive Committee then presents this at the next board meeting to the full Board. The 2012 Form 990 (FYE June 30, 2013) was presented to the Board after filing due to time constraints. ENFORCEMENT OF CONFLICTS POLICY Form 990, Part VI, Line 12c The policy covers all employees, suppliers, medical staff and volunteers. Conflicts are reviewed by the compliance officer for resolution. The compliance officer then consults with the executive team and the CEO for final resolution. Per the policy, any person with a conflict will excuse themselves from the decision making process completely. Board members physically leave the room when discussions occur that are potential conflicts. Tanner bids out services and if a company owned by a board member chooses to bid, there are additional steps for transparency, such as advertising the bidding process in the newspaper. All services are compared to fair market value. GOVERNING DOCUMENTS DISCLOSURE Form 990, Part VI, Line 19 The organization makes available its governing documents, conflict of interest policy and financial statements to members of the public who make their request at the administrative office of the organization. LIST OF SUBORDINATE ORGANIZATIONS INCLUDED FORM 990, LINE H(B) Tanner Medical Group, Inc. EIN: 26-4045534 TMC/Higgins General Hospital Inc. EIN: 58-2414416 TMC/Villa Rica Hospital, Inc. EIN: 58-2453303 TMC Woodland Family Healthcare, Inc. EIN: 26-3196318 TMC Tanner Neurology Inc. EIN: 26-3911032 TMC Carousel Pediatrics Inc. EIN: 26-3590073 TMC Internal Medicine of Villa Rica EIN: 26-2988495 TMC Childrens Healthcare of West GA EIN: 58-2634487 TMC Gastroenterology Associates, Inc. EIN: 20-3927844 TMC Infectious Diseases of West Georgia, Inc. EIN: 20-4090611 TMC West Georgia Behavioral Health EIN: 58-2532629 TMC West GA Family Medicine, Inc. EIN: 26-1231577 TMC Internal Medicine of Carrollton, Inc. EIN: 26-1231536 TMC Carrollton Family Healthcare, Inc. EIN: 26-3486420 TMC Internal Medicine Associates EIN: 58-2453300 TMC West Georgia Cardiology, Inc. EIN: 58-2555827 Tanner Medical Group, Inc. EIN: 80-0785570 TMC Home Health, Inc. EIN: 58-2453296 TMC Hospice Care, Inc. EIN: 58-2453302 TMC Occupational Health, Inc. EIN: 58-2362404 TMC Haralson Family Healthcare EIN: 58-2378722 TMC Tallapoosa Family Healthcare EIN: 58-2378724 TMC West Georgia Anesthesia Associates, Inc. EIN: 20-3604642 Tanner Intensive Medical Services EIN:20-0336940 TMC West Carroll Family Healthcare EIN: 58-2504393 Tanner Family Healthcare of Franklin EIN: 26-0585684 TMC Immediate Care EIN: 20-0379196 Villa Rica OB GYN, Inc. EIN: 20-8040887 TMC Tanner Gynecology, Inc. EIN: 58-2637357 Tanner Primary Care of Heflin EIN: 27-3857816 Tanner Primary Care of Wedowee, Inc. EIN: 45-4857914 COMPENSATION PROCESS FOR TOP OFFICIAL FORM 990, PART VI, LINE 15 The organization's compensation committee reviews recommendations and approves compensation packages for all senior management. TMC uses an outside nationally known compensation and benefits firm that uses survey information, reviews job standards, etc. for all senior management. The outside firm analyzes comparable compensation data for similarly qualified persons in functionally comparable positions at similarly situated organizations and presents the data to the compensation committee. With respect to deliberations and decisions regarding the compensation arrangement, official minutes are kept. The Executive Assistant to the CEO maintains the minutes. This process last completed in 2013. Reason for amended return Form 990, Question B An amended return is filed due to a corrected W-2 for Mr. Loy Howard. No other information on the returns changed. TANNER MEDICAL FOUNDATION INC 705 DIXIE STREET CARROLLTON GA 30117 581790152 FOUNDATION GA 501(C)(3) 11B NA false TANNER MEDICAL CENTER INC 705 DIXIE STREET CARROLLTON GA 30117 581790149 HEALTHCARE GA 501(C)(3) 3 NA false TANNER HEALTH SERVICES 705 DIXIE STREET CARROLLTON GA 30117 581790151 HEALTHCARE GA 501(C)(3) 9 TMC false TMCBUCHANAN FAMILY HEALTHCARE 705 DIXIE STREET CARROLLTON GA 30117 582502339 HEALTHCARE GA TMC C 0.00000 false TMCWEST GEORGIA PEDIATRICS INC 705 DIXIE STREET CARROLLTON GA 30117 582362405 HEALTHCARE GA TMC C 0.00000 false TMCWEST GEORGIA CARDIOLOGY INC 705 DIXIE STREET CARROLLTON GA 30117 582555827 HEALTHCARE GA TMC C 0.00000 false TMCINTERNAL MEDICINE ASSOCIATES 705 DIXIE STREET CARROLLTON GA 30117 582453300 HEALTHCARE GA TMC C 0.00000 false false false true false false false false false false false false true true true false true false false