2015-11-12T17:55:32-06:00 2014-12-31 861065772 Deloitte Tax LLP 1111 Bagby Street Suite 4500 Houston TX 77002 990 2014-01-01 571201170 TMH PHYSICIAN ORGANIZATION TMHP 8326676160 6565 Fannin No GB-240 Houston TX 770302707 Edward L Tyrrell Treasurer 8326676160 2015-11-12 1 Jeffrey D Frank P00287234 7139822000 2014 2016-04-25 22:37:26Z Houston Methodist Specialty Physician Group Robert A Phillips MDPhD 6565 Fannin No GB-240 Houston TX 770302707 361239648 0 5792 X www.houstonmethodist.org X 2004 TX This organization is part of The Methodist Hospital, doing business as Houston Methodist Hospital, whose mission is: To provide high quality, cost-effective health care that delivers the best value to the people we serve in a spiritual environment of caring in association with internationally recognized teaching and research. 18 0 2170 0 0 0 128996 381548 322182060 360858100 -3292980 -665653 0 0 319018076 360573995 31159 18001 0 0 262932848 291447742 0 0 0 62763507 67265990 325727514 358731733 -6709438 1842262 41616808 43415400 59209869 59166199 -17593061 -15750799 X See Schedule O 0 0 350441067 18001 360858100 See Schedule O 350441067 1 1 0 0 0 0 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 0 0 2170 1 0 0 0 0 0 0 0 0 0 0 0 X 18 0 0 0 0 0 1 1 1 1 1 0 0 0 1 1 1 1 1 0 0 0 X Edward L Tyrrell FACHE 8326676160 6565 Fannin GB-240 Houston TX 770302707 Alan B Lumsden MD Director 50.00 0.00 X 888568 0 66852 Alan Kaplan MD Director 50.00 0.00 X 505631 0 46693 Andrew G Lee MD Director 50.00 0.00 X 523060 0 45392 Barbara L Bass MD Director 50.00 0.00 X 1589399 0 54484 E Brian Butler MD Director 50.00 0.00 X 1017724 0 64965 Eric J Haufrect MD Director 48.00 2.00 X 136957 0 0 Gavin S Britz MD Director 50.00 0.00 X 1108516 0 52587 Jaime Gateno DDS MD Director 50.00 0.00 X 604174 0 66834 James M Musser MD PhD Director 45.00 0.00 X 919721 0 69789 Joseph J Naples MD Director 50.00 0.00 X 569298 0 25584 Kevin E Varner MD Director 50.00 0.00 X 1075234 0 71949 Miguel A Quinones MD Director 50.00 0.00 X 642896 0 48359 Reginald Munden MD Director 50.00 0.00 X 551638 0 10977 Richard J Robbins MD Director 50.00 0.00 X 906653 0 44687 Robert A Phillips MD PhD Director, Chairperson, Pres & CEO 30.00 20.00 X X 0 1003229 42388 Stanley H Appel MD Director 50.00 0.00 X 760543 0 44181 Stuart M Dobbs MD Director 2.00 0.00 X 0 0 0 Timothy B Boone MD PhD Director 50.00 0.00 X 1015947 0 52860 Edward L Tyrrell Treasurer 2.00 48.00 X 0 529472 46945 Kevin J Burns Secretary 1.00 49.00 X 0 1216592 59775 Roberta L Schwartz PhD Vice President 7.00 43.00 X 0 905055 49324 Stephen E Spielman Chief Operating Officer 45.00 5.00 X 414430 0 41987 Aldona Spiegel MD Physician 50.00 0.00 X 1866435 0 60793 Bin S Teh Physician 50.00 0.00 X 1327204 0 53029 Pierre Chevray MD Physician 50.00 0.00 X 1414815 0 26077 Vincent Phan MD Physician 50.00 0.00 X 1580953 0 53976 Warren Ellsworth Physician 50.00 0.00 X 1360028 0 36115 Marc L Boom MD Officer, Former 0.00 50.00 X 0 1918287 50061 Ramon M Cantu Officer, Former 0.00 50.00 X 0 1176872 77423 20779824 6749507 1364086 545 1 1 0 ATHENAHEALTH INC PO BOX 415615 BOSTON MA 02241 A/R SERVICES 5536066 PST SERVICES INC PO BOX 742526 ATLANTA GA 30374 BILLING SERVICES 2320143 JEG & ASSOCIATES LLC 5037 RASMUSSEN WAY FAIRFIELD CA 94585 BAD DEBT & COLLECTION SERVICES 1095139 ALLEGRO TRAVEL 19 BRIAR HOLLOW SUITE 246 HOUSTON TX 77027 TRAVEL SERVICES 500947 RADIOLOGY BUSINESS MANAGEMENT 800 ROCKMEAD DRIVE STE 208 KINGWOOD TX 77339 RADIOLOGY SERVICES 413236 19 381548 381548 Professional Fees 900099 224005891 224005891 I/C Hospital Assoc Rev 900099 126802131 126802131 10050078 10050078 360858100 665653 -665653 -665653 -665653 360573995 360858100 0 -665653 18001 18001 14038572 14038572 232717533 227994149 4723384 11896123 11660967 235156 22102379 21669079 433300 10693135 10487775 205360 1200000 1200000 700 700 16881501 16786048 95453 446126 374777 71349 8697045 8363149 333896 31912 26155 5757 13468943 13117489 351454 2502250 2415048 87202 760120 724694 35426 4221493 3752559 468934 7524825 7524825 Medical Supplies 10408506 10404109 4397 Research Fundning & Res 709909 709909 Intercompany Expenses 383668 344070 39598 28992 28992 358731733 350441067 8290666 0 462192 1141507 19527505 18933526 42296147 21190047 21023477 21106100 603634 2234267 41616808 43415400 30727297 40621883 28482572 18544316 59209869 59166199 X -17593061 -15750799 -17593061 -15750799 41616808 43415400 1842262 0 X 0 1 X 1 0 X X 1 The Methodist Hospital 741180155 3 1 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Part IV, Section C. Type II Support Organizations Houston Methodist Hospital (HMH) is the sole corporate member of The Healthcare Group (THG) which is the sole coporate member of TMH Physician Organization, doing business as HM Specialty Physician Group (HMSPG). Therefore, HMH has the authority to appoint and remove all board members of THG and ultimately control HMSPG. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 12673897 3493318 9180579 29622250 17696729 11925521 21106100 Construction in Progress 2234267 2234267 Due to Related Organization 18544316 18544316 X Part X, Line 2: The financial statements of TMH Physician Organization, doing business as Houston Methodist Specialty Physician Group (HM Specialty Physician Group), are included in the consolidated finanical statements of The Methodist Hospital, doing business as Houston Methodist Hospital(HMH), which are audited by an independent accountant. HMH did not recognize any adjustments related to uncertain tax positions as of December 31, 2014. 1 Houston Area Parkinson Society 2700 Southwest Fwy Ste 296 Houston TX 77098 510138356 501 (c)(3) 12500 Medical Research 1 0 Part I, Line 2: Prior to HM Specialty Physician Group's approval of a grant to a requesting organization, the following criteria must be met: - The requesting organization must be an organization exempt from federal income tax under Section 501 (c) (3) of the Internal Revenue Code. - The requesting organization must provide a recognizable or demonstrable benefit to the community. - The mission of the requesting organization must augment the mission of HM Specialty Physician Group. - The requesting organization's mission and services should not duplicate and must not conflict with HM Specialty Physician Group. By following the above criteria, the Organization ensures all grants are used by receiving organizations for their exempt purpose. 0 1 0 0 0 0 0 1 0 Alan B Lumsden MD Director 816098 0 62408 0 10062 0 20850 0 46002 0 955420 0 0 0 Alan Kaplan MD Director 496353 0 20 0 9258 0 25900 0 20793 0 552324 0 0 0 Andrew G Lee MD Director 456862 0 61989 0 4209 0 21243 0 24149 0 568452 0 0 0 Barbara L Bass MD Director 1333838 0 186117 0 69444 0 21328 0 33156 0 1643883 0 0 0 E Brian Butler MD Director 400474 0 610067 0 7183 0 21429 0 43536 0 1082689 0 0 0 Gavin S Britz MD Director 952782 0 150352 0 5382 0 21741 0 30846 0 1161103 0 0 0 Jaime Gateno DDS MD Director 524190 0 75000 0 4984 0 21472 0 45362 0 671008 0 0 0 James M Musser MD PhD Director 731460 0 141750 0 46511 0 23787 0 46002 0 989510 0 0 0 Joseph J Naples MD Director 464975 0 60000 0 44323 0 21243 0 4341 0 594882 0 0 0 Kevin E Varner MD Director 1071099 0 0 0 4135 0 25947 0 46002 0 1147183 0 0 0 Miguel A Quinones MD Director 621884 0 0 0 21012 0 25928 0 22431 0 691255 0 0 0 Reginald Munden MD Director 542412 0 0 0 9226 0 5200 0 5777 0 562615 0 0 0 Richard J Robbins MD Director 792891 0 52037 0 61725 0 22358 0 22329 0 951340 0 0 0 Robert A Phillips MD PhD Director, Chairperson, Pres & CEO 0 739966 0 231173 0 32090 0 25900 0 16488 0 1045617 0 0 Stanley H Appel MD Director 710775 0 10000 0 39768 0 25897 0 18284 0 804724 0 0 0 Timothy B Boone MD PhD Director 925185 0 80700 0 10062 0 21243 0 31617 0 1068807 0 0 0 Edward L Tyrrell Treasurer 0 369029 0 98003 0 62440 0 25357 0 21588 0 576417 0 0 Kevin J Burns Secretary 0 773139 0 243365 0 200088 0 26958 0 32817 0 1276367 0 0 Roberta L Schwartz PhD Vice President 0 640555 0 149788 0 114712 0 25178 0 24146 0 954379 0 0 Stephen E Spielman Chief Operating Officer 302790 0 97460 0 14180 0 22965 0 19022 0 456417 0 0 0 Aldona Spiegel MD Physician 1273553 0 590542 0 2340 0 23600 0 37193 0 1927228 0 0 0 Bin S Teh Physician 363995 0 956864 0 6345 0 21667 0 31362 0 1380233 0 0 0 Pierre Chevray MD Physician 626711 0 784594 0 3510 0 21248 0 4829 0 1440892 0 0 0 Vincent Phan MD Physician 1027768 0 547803 0 5382 0 21419 0 32557 0 1634929 0 0 0 Warren Ellsworth Physician 544219 0 813598 0 2211 0 21524 0 14591 0 1396143 0 0 0 Marc L Boom MD Officer, Former 0 1211670 0 485002 0 221615 0 26565 0 23496 0 1968348 0 0 Ramon M Cantu Officer, Former 0 768628 0 253234 0 155010 0 25844 0 51579 0 1254295 0 0 Part I, Line 3 The CEO of this organization is employed by a related organization who utilized the following items to establish compensation: (1) compensation committee; (2) independent compensation consultant; (3) compensation survey or study; (4) approval by the board or compensation committee. Part I, Line 4a Houston Methodist (HM) has a formal severance plan. Eligible employees include all staff including hourly staff up through senior vice presidents provided they work at least 20 hours per week and are not otherwise covered by a physician employment agreement. The plan only provides salary and benefits in the event an eligible employee is involuntarily terminated due to the elimination of their position or if their current position is significantly impacted by an organizational restructuring or change in requirement and a comparable position is not available within the organization. The eligible person must also sign a termination agreement in order to receive salary continuation and benefits under the plan to which they would not normally be eligible to receive under a voluntary resignation. During 2014, no reportable individuals received severance payments from this plan. Part I, Line 4b The Supplemental Physician Retirement Plan is a non-qualified employer funded plan. Funding is based upon a predetermined percentage of base salary paid. Contributions are made biweekly into a tax deferred account and are considered taxable upon vesting (i.e. completion of three years of vesting service). Once vested, each year's subsequent contribution is taxable within the calendar year in which the deposit was made. Account balances cannot be accessed until retirement or termination (whichever occurs first) and may be subject to non-revocable distribution options selected upon employment. Stanley H Appel, MD: $28,644; James M Musser, MD: $29,949; Richard J Robbins, MD: $32,007; Barbara Bass, MD: $54,000; and Joseph Naples, MD: $28,038; all received monies from the Supplemental Physician Retirement Plan described above. The Supplemental Employee Retirement Plan is a non qualified employer funded plan. Contributions are made annually into a tax deferred account and are considered taxable upon vesting (i.e. completion of three years of vesting service). Once vested, each year's subsequent contribution is taxable within the calendar year in which the deposit was made. Account balances cannot be access until retirement or termination (whichever occurs first) and may be subject to non-revocable distribution options selected upon employment. Marc Boom, MD, Former Officer: $198,515; Edward L Tyrrell: $23,822; Ramon M Cantu, Former Officer: $98,141; Roberta L Schwartz, PhD: $59,096; Kevin J Burns: $173,519; and Stephen E Spielman: $1,878; all received monies from the Supplmental Employee Retirement Plan described above. Part I, Line 7 This organization provides variable compensation opportunity through an annual management incentive plan. A percent of the bonus payout is based on the consolidated operating income result of Houston Methodist, which includes the operating income results of this organization. The targeted operating income is part of the annual budget approved by the governing Board which takes into consideration operational goals, market conditions, past performance, and external benchmarking information. Form 990, Part I and Part III, Line 1 This organization is part of The Methodist Hospital, doing business as Houston Methodist Hospital, whose mission is: To provide high quality, cost-effective health care that delivers the best value to the people we serve in a spiritual environment of caring in association with internationally recognized teaching and research. Form 990, Part III, Line 4a The TMH Physician Organization, doing business as Houston Methodist Specialty Physician Group (HMSPG) was organized to engage in activities to further one or more of the following specific purposes: (i) the carrying out of scientific research and research projects in the public interest in the fields of medical sciences, medical economics, public health, sociology, and related areas; (ii) the supporting of medical education in medical schools through grants and scholarships, (iii) the improving and developing of abilities of individuals and institutions studying, teaching, and practicing medicine; (iv) the engaging in the instruction of the general public in the area of medical science, public health and hygiene and related instruction useful to the individual and beneficial to the community; and (v) the delivery of various modalities of health care to the public. In 2014, HMSPG pursued the above specific purposes largely through the employment of physicians that were organized in the departments according to the specialties. In 2014, HMSPG provided services through over 950,000 patient visits (excluding Anesthesia, MASTOS and Pathology services). As of December 31, 2014, HMSPG employed 419 physicians and 1,201 staff. Educational opportunities were provided to 259 HMSPG residents and fellows from various ACGME approved programs. Form 990, Part VI, Section A, line 6 TMH Health Care Group is the sole Corporate Member of this organization. Houston Methodist Hospital is the sole member of TMH Health Care Group. Form 990, Part VI, Section A, line 7a The sole Corporate Member of the organization, TMH Health Care Group, appoints the Board of Directors. Form 990, Part VI, Section A, line 7b The sole Corporate Member of the Organization (TMH Health Care Group) reserves the following powers: -to appoint and remove with or without cause the Directors of the organization; -to approve the incurrence by the organization of any indebtedness and all guarantees of the debt of another party; -to approve the annual operating and capital budgets of the organization after they are prepared and approved by the organization's Board of Directors; -to approve the dissolution of the organization; -to approve the organization's participation in partnerships and joint ventures; -to approve the acquisition or disposition by the organization of real property from or to a non-Corporation controlled organization through ownership, lease or otherwise; -to approve the disposition or acquisition by the organization of, or the investment by the organization in, another business or all or a portion of the business or operations of another business; -to establish, acquire or invest in any new or different business; and -to direct the organization in its actions as the corporate member or shareholder of other entities, including but not limited to, approving amendments to the articles of incorporation and bylaws of such other organizations. Form 990, Part VI, Section B, line 11 Management, including certain Officers, works diligently to complete the Form 990 and attached schedules (Return) in a thorough manner. The Return is prepared by a Paid Preparer. Form 990, Part VI, Section B, line 12c All individuals serving in a significant decision making capacity complete a Conflict of Interest (COI) questionnaire annually. A comprehensive evaluation and thorough review of all disclosures is performed by a 6-member COI Committee comprised of executives, management, and staff. The results of the COI disclosures are reported to the parent corporation, Houston Methodist Hospital's Audit & Compliance Committee and Board of Directors, including the actions being taken to protect the integrity of decision-making. In addition, disclosure results are also communicated to management and to affected committee chairs to promote transparency and to ensure that actions are taken and restrictions are imposed where appropriate. Conflicted individuals may not vote or exert self-serving influence on the disclosed matter. Form 990, Part VI, Section B, Lines 15a & 15b: The CEO of this organization is employed and compensated by Houston Methodist Hospital, the sole corporate memeber of TMH Health Care Group (sole corporate member of this organization), which follows IRS regulations as it relates to establishing a rebuttable presumption of reasonableness related to total compensation of the CEO of this organization as well as other key employees and compensated officers of the organization listed below. It has established a process that includes the following elements: A separate committee of the board of HMH (the "Board Committee"), comprised of independent directors, meets at least annually to review, deliberate and make recommendations to the Board of HMH as it relates to any changes in total compensation including base pay, bonus awards from incentive programs or benefits and perquisites of the CEO. For 2014, the Board Committee reviewed and recommended compensation packages for the following positions: -EVP/Chief Medical Officer, Houston Methodist Hospital, who also serves as President, Chairperson & CEO for Houston Methodist Specialty Physician Group. The Board Committee establishes that no member has any conflict of interest with regard to the executive compensation arrangements being approved. The Board Committee reviews and considers information provided by an external consultant engaged to ensure it has direct access to: -Compensation information paid by comparable organizations, for functionally comparable positions. -Compensation norms in the organization's immediate locale and from other independent compensation surveys by nationally recognized independent firms that represent the organization's logical peer group. -Compensation information that includes information on base salary, incentives, benefits and perquisites for total compensation comparison purposes to ensure reasonable competitive ranking. The Board Committee relies on the comparability data to reach consensus that its recommendations to the Board regarding executive compensation changes are reasonable and in line with organization's overall total compensation philosophy for executive pay. The deliberations and decisions of the Board Committee are contemporaneously substantiated. The compensation for positions held by the other compensated Officers and Directors listed on Part VII, Section A is determined based on a thorough review of numerous compensation studies conducted by nationally recognized, independent firms that provide market data for total compensation for similar positions. The compensation information considered includes information on base salary, incentives, and benefits for total compensation purposes to ensure reasonable competitive ranking in order to meet recruitment and retention objectives that secure the talent required to contribute to organizational success. Form 990, Part VI, Section C, line 19 The governing documents (except the Articles of Incorporation, which are on file with the Secretary of the State of Texas), conflict of interest policy and financial statements of the organization are not made available to the general public. The Methodist Hospital Self Insurance Trust 6565 Fannin Houston TX 77030 741948396 Insurance Trust TX 501 ( c ) (3) Line 11a, I The Methodist Hospital 0 Methodist Primary Care Group 4401 Garth Road Baytown TX 77521 760556120 Health Care TX 501 ( c ) (3) Line 11a, I TMH Health Care Group 0 Stehlin Foundation 6565 Fannin Houston TX 77030 741622404 Inactive TX 509(a)(2) Line 9 Houston Methodist Research Institute 0 Lone Star Pathology PLLC 6565 Fannin Suite GB-240 Houston TX 77030 472979550 Medical Services TX 501 ( c ) (3) Line 11a, I TMH Physician Organization 0 Medvest 1 Limited 6565 Fannin Houston TX 77030 760534067 Health Care Investments TX N/A Litchfield Memorial Partners LP 800 Town and Country Blvd Ste 200 Houston TX 77024 364778395 Property Investments TX N/A Allied Methodist Hospital Physicians 6565 Fannin Houston TX 77030 760551274 Physician Group TX N/A C 0 Medvest Holdings Inc 6565 Fannin Houston TX 77030 760667765 Health Care Investments TX N/A C 0 Medvest Incorporated 6565 Fannin Houston TX 77030 760182470 Investment Companry TX N/A C 0 Methodist Willowbrook MOB Condominium Association 6565 Fannin Houston TX 77030 680500294 Condo Assoc TX N/A C 0 Methodist Willowbrook MOB Condominium Association II 6565 Fannin Houston TX 77030 262137993 Condo Assoc TX N/A C 0 San Jacinto Methodist - Alexander Condo Assoc 6565 Fannin Houston TX 77030 470921764 Condo Assoc TX N/A C 0 SJMH Condominium Association 6565 Fannin Houston TX 77030 412096917 Condo Assoc TX N/A C 0 The Methodist Hospital Condominium Association 6565 Fannin Houston TX 77030 861065871 Condo Assoc TX N/A C 0 TMH Medical Office Buildings Condominium Association 6565 Fannin Houston TX 77030 760287893 Condo Assoc TX N/A C 0 Methodist West Houston Medical Office Build Condo Assc 6565 Fannin Houston TX 77030 300655123 Condo Assoc TX N/A C 0 The Methodist Health Care System Short Term Disability Plan Trust 6565 Fannin Houston TX 77030 766161019 Insurance Trust TX N/A T 0 Romlac Inc 6565 Fannin Houston TX 77030 741674943 Real Estate Investment TX N/A C 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 1 1 1 0