2015-11-16T12:20:20-06:00 2014-12-31 WithumSmithBrown PC 465 South St Ste 200 Morristown NJ 079606497 990 2014-01-01 221487278 PALISADES MEDICAL CENTER INC % JOHN CALANDRIELLO FHFMA CP PALI 2018545226 7600 RIVER ROAD NORTH BERGEN NJ 07047 JOHN CALANDRIELLO CPA CFO 9738989494 2015-11-10 true Anthony J Panico P00365556 9738989494 2014 2016-04-25 22:37:26Z BRUCE J MARKOWITZ 7600 RIVER ROAD NORTH BERGEN NJ 07047 153636982 false X WWW.PALISADESMEDICAL.ORG X 1901 NJ TO ENHANCE THE HEALTH STATUS OF THE DIVERSE COMMUNITIES SERVED AND TO DELIVER PATIENT CARE IN A SAFE AND NURTURING ENVIRONMENT. 17 14 1469 145 0 1254444 841882 149297561 150128607 2120722 1519438 1008515 1147055 153681242 153636982 0 0 0 0 90512102 89157234 0 0 0 56191971 58377762 146704073 147534996 6977169 6101986 112121366 115647931 120189825 144016491 -8068459 -28368560 X TO ENHANCE THE HEALTH STATUS OF THE DIVERSE COMMUNITIES SERVED AND TO DELIVER PATIENT CARE IN A SAFE AND NURTURING ENVIRONMENT CONSISTENT WITH THE HIGHEST STANDARDS OF EXCELLENCE, QUALITY AND EFFICIENCY. PLEASE REFER TO THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT INCLUDED IN SCHEDULE O. false false 13840464 0 13335000 EXPENSES INCURRED IN PROVIDING MEDICALLY NECESSARY EMERGENCY DEPARTMENT 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 SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT. 11467940 0 11421896 EXPENSES INCURRED IN PROVIDING MEDICALLY NECESSARY OPERATING ROOM 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 SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT. 9953997 0 9854000 EXPENSES INCURRED IN PROVIDING MEDICALLY NECESSARY PHARMACY 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 SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT. 97519095 0 115517711 132781496 true true false true false false false false false true true false true true true false false true false false false false false false false false true true false false true true false false false false false false false false false true true false false false false true false false false true 169 0 true 1469 true false false false false false true true false false false false X 17 14 false false false false true true true true true false false true true true true true true true true false NJ X JOHN CALANDRIELLO FHFMA CP 2018545226 7600 RIVER ROAD NORTH BERGEN NJ 07047 X THERESA DE LEON CHAIR - TRUSTEE 1.0 0.0 X X 0 0 0 ANDREW HOROWITZ FIRST VICE CHAIRMAN - TRUSTEE 1.0 0.0 X X 0 0 0 KEVIN O'CONNOR SECRETARY - TRUSTEE 1.0 0.0 X X 0 0 0 LEONARD LAURICELLA TREASURER - TRUSTEE 1.0 0.0 X X 0 0 0 SAMIR R AMIN MD TRUSTEE 1.0 0.0 X 1450 0 0 AIDA CAPO MD TRUSTEE - PRES ELECT MED STAFF 1.0 0.0 X 0 0 0 ALEXANDER DURAN TRUSTEE 1.0 0.0 X 0 0 0 THOMAS M EASTWICK TRUSTEE 1.0 0.0 X 0 0 0 PATRICIA M FULLER TRUSTEE 1.0 0.0 X 0 0 0 BRUCE J MARKOWITZ TRUSTEE - PRESIDENT/CEO 55.0 0.0 X X 1321416 0 77856 JOHN C MEDITZ TRUSTEE 1.0 0.0 X 0 0 0 CONSTANTINE POTAMIANOS ESQ TRUSTEE 1.0 0.0 X 0 0 0 JEFFREY RASKIN MD TRUSTEE - PRES. MEDICAL STAFF 1.0 0.0 X 20900 0 0 DENNIS ROBINSON TRUSTEE 1.0 0.0 X 0 0 0 LILLIAN SONNENSCHEIN TRUSTEE 1.0 0.0 X 0 0 0 RICHARD TURNER TRUSTEE 1.0 0.0 X 0 0 0 THOMAS M VENINO JR ESQ TRUSTEE 1.0 0.0 X 0 0 0 CARY BADER TERM 071614 TRUSTEE 1.0 0.0 X 0 0 0 JOHN CALANDRIELLO CPA VP; CHIEF FINANCIAL OFFICER 55.0 0.0 X 571651 0 209125 DAVID BERKOWITZ VP; CHIEF OPERATING OFFICER 55.0 0.0 X 426797 0 90765 RUBEN D FERNANDEZ VP; NURSING 55.0 0.0 X 362806 0 39244 DONNA CAHILL VP; HUMAN RESOURCES 55.0 0.0 X 307287 0 73476 EURICE R ROJAS VP; MARKETING 55.0 0.0 X 293186 0 45238 SURESH RAINA MD VP; CHIEF MEDICAL OFFICER 55.0 0.0 X 412674 0 16107 JOSEPH BURT VP; EXEC. DIRECTOR FOUNDATION 55.0 0.0 X 215793 0 31030 SANTOSH RAINA MD MEDICAL DIRECTOR 55.0 0.0 X 380373 0 18140 QI ZHANG MD MEDICAL DIRECTOR 55.0 0.0 X 302666 0 37908 JOAN MOZEIKA DIRECTOR 55.0 0.0 X 195206 0 51308 FAY SPRAGLEY CLINICAL COORDINATOR 55.0 0.0 X 179485 0 33503 LORNA R SCHNEIDER CLINICAL COORDINATOR 55.0 0.0 X 178608 0 26665 5170298 0 750365 171 false true false BRESCIA MIGLIACCIO MD 1131 WASHINGTON STREET HOBOKEN NJ 07030 MEDICAL 1039575 PALISADES MEDICAL HOSPITALIST GROUP 15 SLEEPY HOLLOW LANE PRINCETON JUNCTION NJ 08550 MEDICAL 759290 PALISADES EMR CONSULTANT 7600 RIVER ROAD NORTH BERGEN NJ 07047 MEDICAL 554992 HULL RESOURCE MANAGEMENT GROUP LLC 80 WITTE ROAD HEWITT NJ 07421 STAFFING 487750 RESTORIX HEALTH 155 WHITE PLAINS ROAD TARRYTOWN NY 10591 MEDICAL 485143 15 X 754110 87772 79572 841882 NET PATIENT SERVICE REVENUE 541900 147065454 147065454 PHYSICIAN BILLINGS AND OTHER HEALTHCARE RELATED REVENUE 541900 3063153 3063153 150128607 1344147 1344147 31085 31085 0 762714 762714 0 762714 762714 144206 144206 144206 144206 0 0 0 PARKING REVENUE 812930 183165 183165 PHARMACY 900099 110050 110050 TELEVISION 515100 91126 91126 384341 153636982 150128607 2666493 X 0 0 0 0 4516801 4065121 451680 0 64933853 58440468 6493385 4298182 3868364 429818 10258908 9233017 1025891 5149490 4634541 514949 0 977708 879937 97771 163826 147443 16383 69023 62121 6902 0 0 17157104 15441394 1715710 973396 876056 97340 2250355 2025319 225036 354223 318801 35422 0 2415602 2174042 241560 854781 769303 85478 0 415098 373588 41510 1951348 1756213 195135 0 6775102 6097592 677510 1949300 1754370 194930 MEDICAL SUPPLIES 14430798 12987718 1443080 0 REPAIRS AND MAINTENANCE 4207539 3786785 420754 DATA PROCESSING 1501138 1351024 150114 DUES AND SUBSCRIPTIONS 883515 795164 88351 1047906 943115 104791 147534996 132781496 14753500 0 X 0 0 9427789 7120341 594180 188062 12795565 17171420 0 0 0 0 0 0 2099912 2254051 808075 705999 149834922 111992720 33150476 37842202 0 0 0 0 46936676 38338906 0 0 6308693 12026950 112121366 115647931 17879809 21891882 0 0 0 0 38201404 37337964 0 0 0 0 2201905 1203894 0 0 61906707 83582751 120189825 144016491 X -8362957 -28463058 200000 0 94498 94498 -8068459 -28368560 112121366 115647931 X 6101986 -336087 -26066000 X X false true X true true true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 1000000 1000000 1500000 62974 62974 250000 250000 375000 false false false false false false true 50000 false true 19023 69023 false SCHEDULE C, PART II-B, LINES 1G AND 1I DURING 2014, THE ORGANIZATION PAID AN OUTSIDE LOBBYING FIRM $50,000 TO PERFORM LOBBYING ACTIVITIES ON BEHALF OF THE ORGANIZATION ON A FEDERAL AND STATE LEVEL RELATED TO MEDICARE, MEDICAID AND OTHER HEALTHCARE LEGISLATIVE MATTERS. IN ADDITION, THE ORGANIZATION IS A MEMBER OF THE NEW JERSEY HOSPITAL ASSOCIATION, THE AMERICAN HOSPITAL ASSOCIATION AND THE HOSPITAL ALLIANCE OF NEW JERSEY WHICH ALL ENGAGE IN LOBBYING EFFORTS ON BEHALF OF THEIR MEMBER HOSPITALS. A PORTION OF THE DUES PAID TO THESE ORGANIZATIONS IS ALLOCATED TOWARDS LOBBYING EFFORTS PERFORMED ON BEHALF OF THIS ORGANIZATION. THIS ALLOCATION AMOUNTED TO $19,023 IN 2014. 294498 200000 94498 94498 456000 256000 294498 94498 94498 99498 5000 94498 94498 5000 99498 1.00000 false false 0 1580327 1580327 0 48490382 44567434 3922948 0 93037787 65053817 27983970 0 6726426 2371469 4354957 37842202 EQUITY SECURITIES; LIMITED USE 4726306 F LIMITED USE 1456953 F LIMITED USE 8806297 F ACCRUED INTEREST; LIMITED USE 7659 F LIMITED USE ASSETS 8725707 F MUTUAL FUNDS; LIMITED USE 14615984 F 38338906 OTHER RECEIVABLES AND ASSETS 3879060 DUE FROM AFFILIATES 8147890 12026950 0 THIRD-PARTY PAYERS; CURRENT 975000 ACCRUED INTEREST PAYABLE 931317 ACCRUED PENSION LIABILITY 53334620 NON-CURRENT 13725829 OTHER CURRENT LIABILITIES 14615985 83582751 SCHEDULE D, PART V ENDOWMENT FUNDS ARE TO BE USED CONSISTENT WITH INTENT AND IN FURTHERANCE OF THE ORGANIZATION'S CHARITABLE TAX-EXEMPT PURPOSES. true true X true X true X 500. true true true false true true 13120065 8061000 5059065 0.03430 27378154 23280000 4098154 0.02780 953896 0 953896 0.00650 41452115 31341000 10111115 0.06860 355000 0 355000 0.00240 8547093 4534249 4012844 0.02720 33339194 28670708 4668486 0.03160 42241287 33204957 9036330 0.06120 83693402 64545957 19147445 0.12980 false 16088088 55540756 56058517 -517761 X true true 1 1 PALISADES MEDICAL CENTER INC 7600 RIVER ROAD NORTH BERGEN NJ 07047 WWW.PALISADESMEDICAL.ORG 10905 X X X X 1 PALISADES MEDICAL CENTER INC 1 false false true X X X X X X X X X 13 true false true true X WWW.PALISADESMEDICAL.ORG X true 13 true WWW.PALISADESMEDICAL.ORG false false true X 200. 500. X X X X X X true true X X X X true X X X false X false X X X X true X false false SCHEDULE H, PART V, SECTION B, QUESTIONS 2 & 3J NOT APPLICABLE. SCHEDULE H, PART V, SECTION B, QUESTIONS 5 & 6B THROUGHOUT THE ENTIRE COMMUNITY HEALTH NEEDS ASSESSMENT ("CHNA") PROCESS, PALISADES MEDICAL CENTER ("PMC") CONSULTED WITH COMMUNITY RESIDENTS, COMMUNITY PARTNERS, AND LOCAL HEALTH OFFICIALS. COMMUNITY RESIDENTS WERE ABLE TO VOICE THEIR CONCERNS DURING TWO FOCUS GROUP SESSIONS AND ALSO PROVIDE THEIR VIEWS AND OPINIONS IN THEIR COMMUNITY HEALTH SURVEY RESPONSES. 446 SURVEYS WERE GATHERED FROM THE EIGHT MUNICIPALITIES THAT REPRESENT OUR SERVICE AREA. RESIDENTS WERE INVITED TO PUBLIC FORUMS FOR A COMPLETE OVERVIEW OF THE PRIMARY AND SECONDARY DATA THAT WAS COLLECTED AS WELL AS A DISCUSSION ON THE FIVE NEEDS THAT WERE IDENTIFIED. COMMUNITY RESIDENTS ARE ALSO INVITED ON AN ANNUAL BASIS TO PUBLIC FORUMS TO DISCUSS THE IMPACT OF PROGRAM IMPLEMENTATION AND EVALUATIONS OF THE COLLABORATIVE HEALTH IMPROVEMENT PLAN. PMC ALSO CONSULTED WITH COMMUNITY PARTNERS BY INVITING THEM TO A SEPARATE FOCUS GROUP. THE SAME FOCUS GROUP QUESTIONS WERE ASKED TO THE COMMUNITY PARTNERS AND THEIR COMMENTS WERE VALUED BASED ON THEIR PROFESSIONAL EXPERTISE AND EXPERIENCE IN WORKING WITH THE COMMUNITY SURROUNDING THE HOSPITAL. COMMUNITY PARTNERS ARE ALSO INVITED TO ASSIST IN THE PLANNING PROCESS OF THE COLLABORATIVE HEALTH IMPROVEMENT PLAN BY SUGGESTING POTENTIAL PROJECTS THAT THE HOSPITAL SHOULD IMPLEMENT AS WELL AS ATTENDING BI-ANNUAL MEETINGS ON EACH OF THE FIVE ISSUES. THE CHNA STEERING COMMITTEE INCLUDES HEALTH OFFICIALS AND HEALTH DIRECTORS FROM SIX MUNICIPALITIES IN THE SERVICE AREA, A REPRESENTATIVE FROM THE LOCAL FEDERALLY QUALIFIED HEALTH CENTER, A PRINCIPAL FROM THE UNION CITY BOARD OF EDUCATION, AND THE DIRECTOR OF HUDSON REGIONAL HEALTH COMMISSION, THE COUNTY'S ENVIRONMENTAL HEALTH AGENCY (CEHA) AND LOCAL INFORMATION NETWORK COMMUNICATION SYSTEMS AGENCY (LINCS). THE STEERING COMMITTEE HAS BEEN RESPONSIBLE IN PRIORITIZING ISSUES AND REVIEWING ALL COMPONENTS OF THE PROJECTS ON A QUARTERLY BASIS AS WELL AS ON A NEEDED BASIS. PMC CHNA STEERING COMMITTEE: - CLIFFSIDE PARK HEALTH DEPARTMENT - GUTTENBERG BOARD OF HEALTH - HUDSON REGIONAL HEALTH COMMISSION - NORTH BERGEN HEALTH DEPARTMENT - NORTH HUDSON COMMUNITY ACTION CORPORATION - PALISADES MEDICAL CENTER - UNION CITY EARLY CHILDHOOD EDUCATION PROGRAM - UNION CITY BOARD OF HEALTH - WEEHAWKEN BOARD OF HEALTH - WEST NEW YORK HEALTH DEPARTMENT PMC CHNA COMMUNITY PARTNERS: - AMERICAN DIABETES ASSOCIATION - AMERIGROUP - BERGEN'S PROMISE - BERGEN COUNTY DEPARTMENT OF HEALTH SERVICES - DIVISION OF CHILD PROTECTION AND PERMANENCY - ELITE HEALTHCARE INC. - HEALTHFIRST, NJ - HOBOKEN FAMILY PLANNING - HORIZON HEALTH CENTER - HUDSON COUNTY DIVISION OF PLANNING - HUDSON COUNTY FAMILY SUCCESS CENTERS - HUDSON MEDICAL ASSISTANCE CUSTOMER CENTER - HUDSON PARTNERSHIP CMO - PARTNERS IN PREVENTION - PARTNERSHIP FOR MATERNAL AND CHILD HEALTH OF NORTHERN, NJ - PUERTO RICAN FAMILY INSTITUTE, INC. - SAVE LATIN AMERICA, INC. SCHEDULE H, PART V, SECTION B, QUESTIONS 6A & 7D NOT APPLICABLE. 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. THE HOSPITAL IS WORKING TO ADDRESS THE TOP FIVE LOCAL HEALTH ISSUES AS IDENTIFIED IN ITS COMMUNITY HEALTH NEEDS ASSESSMENT. GIVEN LIMITED RESOURCES, NEEDS WERE PRIORITIZED WITH CONSIDERATION OF SERVICE ARRAY OFFERED BY THE FACILITY AND ABILITY TO COLLABORATE. SCHEDULE H, PART V; SECTION B, QUESTION 13B THE ORGANIZATION USES SPECIAL PRICE DETERMINATIONS TO ASSIST PATIENTS WHO ARE NOT ELIGIBLE FOR THE MEDICAL ASSISTANCE PROGRAMS BUT WHOSE INCOME AND ASSETS ARE BELOW CERTAIN THRESHOLDS ESTABLISHED BY PALISADES MEDICAL CENTER FROM TIME TO TIME AS SPECIFIED IN ITS FINANCIAL SCREENING POLICY. SCHEDULE H, PART V; SECTION B,Q'S 13H,15E,16I,18D,19D,20E,21C,21D,23&24 NOT APPLICABLE. SCHEDULE H, PART V; SECTION B, QUESTION 22D THE FACILITY USES 115% OF THE MEDICARE RATE AS THE MAXIMUM AMOUNT THAT CAN BE CHARGED TO FAP-ELIGIBLE INDIVIDUALS FOR EMERGENCY OR OTHER MEDICALLY NECESSARY CARE. SCHEDULE H, PART I, LINE 3C THE INCOME BASED CRITERIA USED TO DETERMINE ELIGIBILITY IS PER NEW JERSEY ADMINISTRATIVE CODE 10:52 SUBCHAPTERS 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, QUESTION 7G NO COSTS RELATED TO SUBSIDIZED HEALTHCARE SERVICES ARE ATTRIBUTABLE TO ANY PHYSICIAN COSTS. SCHEDULE H, PART I, QUESTION 7 WORKSHEET 2 WAS USED TO CALCULATE THE COST TO CHARGE RATIO. SCHEDULE H, PART II COMMUNITY BENEFIT SERVICES AND PROGRAMS ARE AN INTEGRAL PART OF PALISADES MEDICAL CENTER'S MISSION. PALISADES MEDICAL CENTER WORKS TO STRUCTURE ITS ONGOING COMMUNITY BENEFITS PLAN, CONSISTENTLY AND UNIFORMLY TRACK PROGRAMS AND ACTIVITIES, AND DOCUMENT THE MEDICAL CENTER'S VALUABLE CONTRIBUTIONS TO THE COMMUNITIES IT SERVES. PALISADES MEDICAL CENTER'S COMMUNITY BENEFIT ACTIVITIES INCLUDE - COMMUNITY HEALTH SCREENINGS; - PHYSICIANS SEMINARS; AND - HEALTH EDUCATION FAIRS. PLEASE ALSO REFER TO FORM 990, SCHEDULE O, WHICH CONTAINS THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT AND SUMMARY OF ALL ENTITIES. SCHEDULE H, PART III, LINES 2, 3 & 4 BAD DEBT EXPENSE WAS CALCULATED USING THE PROVIDERS' BAD DEBT EXPENSE FROM THE AUDITED FINANCIAL STATEMENTS. THE ORGANIZATION AND ITS AFFILIATES PREPARE AND ISSUE AUDITED CONSOLIDATED FINANCIAL STATEMENTS. THE ATTACHED TEXT WAS OBTAINED FROM THE FOOTNOTES TO THE AUDITED FINANCIAL STATEMENTS OF THE ORGANIZATION. PATIENT ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS PATIENT ACCOUNTS RECEIVABLE RESULT FROM THE HEALTHCARE SERVICES PROVIDED BY THE SYSTEM AND ARE STATED AT THE ESTIMATED NET AMOUNTS RECEIVABLE FROM PATIENTS AND THIRD-PARTY PAYERS. THE AMOUNT OF THE ALLOWANCE FOR DOUBTFUL ACCOUNTS IS BASED UPON MANAGEMENT'S ASSESSMENT OF HISTORICAL AND EXPECTED NET COLLECTIONS, BUSINESS AND ECONOMIC CONDITIONS, TRENDS IN HEALTHCARE COVERAGE, AND OTHER COLLECTION INDICATORS. ADDITIONS TO THE ALLOWANCE FOR DOUBTFUL ACCOUNTS RESULT FROM THE PROVISION FOR BAD DEBTS. ACCOUNTS WRITTEN OFF AS UNCOLLECTIBLE ARE DEDUCTED FROM THE ALLOWANCE FOR DOUBTFUL ACCOUNTS. CHARITY CARE THE SYSTEM PROVIDES CARE TO PATIENTS WHO MEET CERTAIN CRITERIA DEFINED BY THE NEW JERSEY DEPARTMENT OF HEALTH ("DOH") WITHOUT CHARGE OR AT AMOUNTS LESS THAN ESTABLISHED RATES. BECAUSE THE SYSTEM DOES NOT PURSUE COLLECTION OF AMOUNTS DETERMINED TO QUALIFY AS CHARITY CARE, THEY ARE NOT REPORTED AS REVENUE. THE SYSTEM'S RECORDS IDENTIFY AND MONITOR THE LEVEL OF CHARITY CARE IT PROVIDES AND INCLUDE THE AMOUNT OF CHARGES FORGONE FOR SERVICES AND SUPPLIES FURNISHED. THE DOH ALLOWS RETROACTIVE APPLICATION FOR CHARITY CARE UP TO TWO YEARS FROM THE DATE OF SERVICE. IN ACCORDANCE WITH ITS MISSION, THE SYSTEM COMMITS SUBSTANTIAL RESOURCES TO SPONSOR A BROAD RANGE OF SERVICES TO BOTH THE INDIGENT AS WELL AS THE BROADER COMMUNITY. COMMUNITY BENEFITS PROVIDED TO THE INDIGENT INCLUDE THE COST OF PROVIDING SERVICES TO PERSONS WHO CANNOT AFFORD HEALTHCARE DUE TO INADEQUATE RESOURCES AND/OR WHO ARE UNINSURED OR UNDERINSURED. THIS TYPE OF COMMUNITY BENEFIT INCLUDES THE COSTS OF: TRADITIONAL CHARITY CARE; UNPAID COSTS OF CARE PROVIDED TO BENEFICIARIES OF MEDICAID AND OTHER INDIGENT PUBLIC PROGRAMS; SERVICES SUCH AS FREE CLINICS AND MEAL PROGRAMS FOR WHICH A PATIENT IS NOT BILLED OR FOR WHICH A NOMINAL FEE HAS BEEN ASSESSED; AND CASH AND IN-KIND DONATIONS OF EQUIPMENT, SUPPLIES OR STAFF TIME VOLUNTEERED ON BEHALF OF THE COMMUNITY. COMMUNITY BENEFITS PROVIDED TO THE BROADER COMMUNITY INCLUDE THE COSTS OF PROVIDING SERVICES TO OTHER POPULATIONS WHO MAY NOT QUALIFY AS INDIGENT BUT MAY NEED SPECIAL SERVICES AND SUPPORT. THIS TYPE OF COMMUNITY BENEFIT INCLUDES THE COSTS OF: SERVICES SUCH AS HEALTH PROMOTION AND EDUCATION, AND SCREENINGS, ALL OF WHICH ARE NOT BILLED OR CAN BE OPERATED ONLY ON A DEFICIT BASIS. THE AMOUNT OF CHARITY CARE PROVIDED DURING THE YEAR ENDED DECEMBER 31, 2014, BASED ON THE CORPORATION'S ESTIMATED COST AS DEFINED BY THE DEPARTMENT OF HEALTH AND SENIOR SERVICES IS $13,120,065. SCHEDULE H, PART III, SECTION B; QUESTION 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 "[T]HE 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 "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, SCHEUDLE 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. - 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 EXPERIENCE OF HOSPITALS AROUND THE NATION REINFORCES THAT TH SCHEDULE H, PART III, SECTION B; QUESTION 9B IT IS THE POLICY OF PALISADES MEDICAL CENTER TO OFFER "COMPASSIONATE BILLING" TO ALL MEMBERS OF THE COMMUNITY SERVED BY THE MEDICAL CENTER, INCLUDING PATIENTS WHO ARE UNINSURED, PATIENTS WHO ARE INSURED BUT WHO SEEK OR REQUIRE SERVICES NOT COVERED BY THEIR HEALTHCARE REIMBURSEMENT BENEFIT PROGRAMS, OR WHOSE CO-PAYMENT OBLIGATIONS PRESENT A FINANCIAL HARDSHIP, AND PATIENTS WHO ARE BENEFICIARIES OF INSURANCE PRODUCTS WITH WHICH PALISADES MEDICAL CENTER IS CONSIDERED AN OUT-OF-NETWORK PROVIDER. COMPASSIONATE BILLING CONSISTS OF BILLING AND COLLECTION POLICIES AND PROCEDURES, CONSISTENTLY AND FAIRLY APPLIED, THAT (A) REQUIRE THE PATIENT FINANCIAL SERVICES DEPARTMENT, THROUGH ITS FINANCIAL COUNSELORS, TO TAKE STEPS TO IDENTIFY UNINSURED PATIENTS ELIGIBLE FOR GOVERNMENT SPONSORED OR SUPPORTED MEDICAL ASSISTANCE AND TO HELP THOSE PATIENTS OBTAIN SUCH MEDICAL ASSISTANCE, (B) PROVIDE DISCOUNTS AGAINST CHARGES FOR UNINSURED PATIENTS WHO ARE INELIGIBLE FOR GOVERNMENT SPONSORED OR SUPPORTED PROGRAMS BUT WHO MEET THE MEDICAL CENTER'S FINANCIAL CRITERIA AND PAYMENT REQUIREMENTS, (C) PROVIDE ON A FEE-FOR-SERVICE OR CASE-RATE BASIS CERTAIN SERVICES NOT ORDINARILY COVERED BY THIRD PARTY PAYOR PROGRAMS, WHICH FEES AND RATES MAY REPRESENT DISCOUNTS AGAINST CHARGES, (D) ALLOW THE REDUCTION OR WAIVER OF PATIENT CO-PAYMENTS IN CASES OF SUBSTANTIATED FINANCIAL HARDSHIP AND (E) ALLOW THE REDUCTION OR WAIVER OF PATIENT CO-PAYMENTS FOR SERVICES RENDERED TO PATIENTS WHO ARE BENEFICIARIES OF THIRD PARTY PAYOR PROGRAMS WITH RESPECT TO WHICH PALISADES MEDICAL CENTER IS DEEMED AN OUT-OF-NETWORK PROVIDER. THIS COMPASSIONATE BILLING POLICY IS INTENDED TO ASSIST PATIENTS IN COPING WITH THE FINANCIAL HURDLES THAT OFTEN CREATE A BARRIER TO HEALTHCARE SERVICES. THIS COMPASSIONATE BILLING POLICY IS IMPLEMENTED THROUGH PROCEDURES THAT REQUIRE THE DETERMINATION OF ELIGIBILITY FOR GOVERNMENT SPONSORED OR SUPPORTED MEDICAL ASSISTANCE PROGRAMS, INCLUDING MEDICAID AND FAMILY CARE, AND INCLUDING THE MEDICAL CENTER'S CHARITY CARE ASSISTANCE PROGRAM, THAT PROVIDE STANDARDS FOR FEE COMPROMISES AND REDUCTIONS IN CERTAIN RECURRING CIRCUMSTANCES, SUCH AS NON-COVERED SERVICES AND OUT-OF-NETWORK BENEFITS, AND THAT ALLOW FOR CASE-BY-CASE COMPROMISES IN RESPONSE TO REASONABLY SUBSTANTIATED FINANCIAL HARDSHIP. IN ALL CASES, THE COMPASSIONATE BILLING POLICY IS INTENDED TO OFFER OPPORTUNITIES FOR THE PATIENT FINANCIAL SERVICES DEPARTMENT TO BE RESPECTFUL OF OUR COMMUNITY'S NEEDS WHILE ALSO FURTHERING THE MEDICAL CENTER'S NEED TO BE FISCALLY RESPONSIBLE AND TO COMPLY WITH ALL APPLICABLE FEDERAL AND STATE LAW. 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, THIS ORGANIZATION CONDUCTS A REVIEW OF KEY FACTOR INFORMATION, WHICH INCLUDES: - A REVIEW OF HEALTHCARE UTILIZATION OF ITS SERVICE AREA POPULATION BY SERVICES FOR DETERMINING INCREASED OR DECREASED HEALTH NEEDS; - HEALTHCARE SERVICE ESTIMATES AND FORECASTS (BOTH INPATIENT AND OUTPATIENT); - ASSESSMENTS OF LOCAL DEMOGRAPHIC AND SOCIOECONOMIC INFORMATION; AND, - A REVIEW OF HEALTH STATUS/NEEDS ASSESSMENTS AND STUDIES CONDUCTED BY THE NEW JERSEY HOSPITAL ASSOCATION (NJHA). IN ADDITION, THIS ORGANIZATION WORKS WITH LOCAL PROVIDERS TO PLAN AND DISCUSS HEALTH NEEDS OF THE POPULATION. NEEDS ASSESSMENT AND COMMUNITY OUTREACH PARTNERS INCLUDE NORTH HUDSON COMMUNITY ACTION CORPORATION, CHRIST HOSPITAL SCHOOL OF NURSING, HUDSON PERINATAL CONSORTIUM, INC., MUNICIPAL EMERGENCY MEDICAL SERVICES AND OFFICE OF EMERGENCY MEDICAL MANAGEMENT NORTH HUDSON REGIONAL FIRE DEPARTMENT. SCHEDULE H, PART VI; QUESTION 3 CHARITY CARE SIGNS ARE POSTED THROUGHOUT THE FACILITY, MAINLY IN PATIENT REGISTRATION AREAS. SIGNS ARE POSTED IN BOTH ENGLISH AND SPANISH. ALL PATIENTS DEEMED SELF-PAY ARE SCREENED FOR FINANCIAL ASSISTANCE BY A RESOURCE ADVISOR ACCORDING TO THE FEDERAL POVERTY GUIDELINES AND REFERRED TO APPROPRIATE AGENCIES OR PROGRAMS. THE ORGANIZATION ALSO MAINTAINS AND FOLLOWS A COMPASSIONATE BILLING POLICY FOR ALL INDIVIDUALS. SCHEDULE H, PART VI; QUESTION 4 MANY OF THE COMMUNITIES SERVED BY PALISADES MEDICAL CENTER HAVE EXPERIENCED HIGH POPULATION GROWTH IN THE PAST FIVE YEARS AND ALL OF THEM COMBINED REPRESENT ONE OF THE HIGHEST POPULATION DENSITIES IN NEW JERSEY. U.S. HISPANICS ARE GROSSLY DISADVANTAGED IN TERMS OF ACCESS TO HEALTHCARE. OVER 38.9% OF THE NATION'S CURRENT POPULATION OF HISPANICS IS UNINSURED, COMPARED TO 12.2% OF ANGLO-AMERICANS AND 20.2% OF AFRICAN AMERICANS. WITH EVER-INCREASING HEALTHCARE COSTS, THESE MEASURES ARE UNLIKELY TO IMPROVE ANYTIME SOON. THE NATIONAL-LEVEL FINDINGS ARE VALIDATED LOCALLY. THE LOWER-INCOME HISPANIC COMMUNITIES OF HUDSON AND BERGEN COUNTIES ARE POPULATIONS IN DIRE NEED OF IMPROVED HEALTHCARE SCREENING, AWARENESS, AND EDUCATION. THE THREE COMMUNITIES OF NORTH BERGEN, UNION CITY AND WEST NEW YORK ALONE CONSTITUTE MORE THAN 11% OF NEW JERSEY'S TOTAL HISPANIC POPULATION, AND ARE HOME TO NEARLY 4% OF NEW JERSEY RESIDENTS AT OR BELOW THE POVERTY LEVEL. THE WEIGHTED AVERAGE PER-CAPITA INCOME IN THESE COMMUNITIES IS ONLY $16,793 NEARLY 38% BELOW THE STATEWIDE AVERAGE. THE POVERTY RATE IN THESE COMMUNITIES IS MORE THAN DOUBLE THE STATEWIDE AVERAGE. THE AREA'S HISPANIC POPULATION IS DIVERSE. IT CONSISTS OF GROUPS ORIGINATING FROM MULTIPLE GEOGRAPHIC AREAS AND FOUNDER POPULATIONS. COMMUNITY MEMBERS HAVE ESTABLISHED RESIDENCE IN THE U.S. FOR VARYING LENGTHS OF TIME, FROM MULTIPLE GENERATIONS TO LESS THAN A YEAR. THESE DIFFERING BACKGROUNDS CAN HAVE A LARGE POTENTIAL TO INFLUENCE DISEASE RISK. MANY OF THE COMMUNITIES SERVED BY PALISADES MEDICAL CENTER HAVE EXPERIENCED HIGH POPULATION GROWTH IN THE PAST FIVE YEARS AND ALL OF THEM COMBINED REPRESENT ONE OF THE HIGHEST POPULATION DENSITIES IN NEW JERSEY. SCHEDULE H, PART VI; QUESTION 5 COMMUNITY BUILDING ACTIVITIES UNDERTAKEN BY PALISADES MEDICAL CENTER IMPROVE THE MEDICAL AND SOCIOECONOMIC WELL-BEING OF THE COMMUNITIES IN OUR CARE. THIS IS ACCOMPLISHED THROUGH SERVICE ON STATE AND REGIONAL ADVOCACY COMMITTEES AND BOARDS, VOLUNTEERISM WITH LOCAL COMMUNITY-BASED NON-PROFIT ADVOCACY GROUPS, AND PARTICIPATION IN CONFERENCES AND OTHER EDUCATIONAL ACTIVITIES TO PROMOTE UNDERSTANDING OF THE ROOT CAUSES OF HEALTH CONCERNS. PMC PROVIDES EDUCATIONAL MATERIALS, CONDUCTS COMMUNITY HEALTH FAIRS AND HOLDS HEALTH EDUCATION SEMINARS AND OUTREACH SESSIONS FOR ITS PATIENTS AND FOR COMMUNITY PROVIDERS. PRESENTATIONS ARE PROVIDED BY PHYSICIANS, NURSES AND OTHER HEALTHCARE PROFESSIONALS. THE MAJORITY OF THE BOARD OF TRUSTEES MEMBERS ARE INDIVIDUALS WITH LOCAL BUSINESSES OR WHOM RESIDE IN THE COMMUNITY. HOSPITAL STAFF MEMBERS SERVE ON THE BOARDS OF MANY LOCAL NOT FOR-PROFIT ORGANIZATIONS AND PROVIDE OTHER FORMS OF SUPPORT (FUNDRAISING, ACTIVITY PARTICIPATION). ALL QUALIFIED PHYSICIANS ARE EXTENDED PRIVILEGES. SURPLUS FUNDS ARE UTILIZED FOR CAPITAL PROJECTS TO IMPROVE SERVICES OR PURCHASE EQUIPMENT WHICH IN TURN, BENEFIT THE COMMUNITY. SCHEDULE H, PART VI; QUESTION 6 NOT FOR-PROFIT PALISADES HEALTHCARE SYSTEM, INC. ENTITIES: PALISADES HEALTHCARE SYSTEM, INC. PALISADES HEALTHCARE SYSTEM, INC. ("PHS") IS A NOT FOR-PROFIT HOLDING COMPANY BASED IN NORTH BERGEN, NEW JERSEY. PHS IS THE SOLE CORPORATE MEMBER OF A NUMBER OF NOT FOR-PROFIT ENTITIES AND THE SOLE SHAREHOLDER OF VARIOUS OTHER FOR-PROFIT ENTITIES. AS THE PARENT ORGANIZATION OF A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM, PHS STRIVES TO CONTINUALLY DEVELOP AND OPERATE AN INTEGRATED HEALTHCARE DELIVERY SYSTEM WHICH PROVIDES A COMPREHENSIVE SPECTRUM OF MEDICALLY NECESSARY HEALTHCARE SERVICES TO THE RESIDENTS OF NORTH BERGEN, NEW JERSEY, AND THE SURROUNDING COMMUNITY. PALISADES HEALTHCARE SYSTEM, INC. IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A SUPPORTING ORGANIZATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3). PHS ENSURES THAT ITS SYSTEM PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OF ABILITY TO PAY. NO INDIVIDUALS ARE DENIED NECESSARY MEDICAL CARE, TREATMENT OR SERVICES. PHS IS THE SOLE CORPORATE MEMBER OF PALISADES MEDICAL CENTER ("PMC"); A HOSPITAL PROVIDING COMPREHENSIVE INPATIENT, OUTPATIENT AND EMERGENCY SERVICES. PMC OPERATES CONSISTENTLY WITH THE FOLLOWING CRITERIA OUTLINED IN IRS REVENUE RULING 69-545: 1. PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF ABILITY TO PAY, INCLUDING CHARITY CARE, SELF-PAY, MEDICARE AND MEDICAID PATIENTS; 2. OPERATES AN ACTIVE EMERGENCY DEPARTMENT FOR ALL PERSONS; WHICH IS OPEN 24 HOURS A DAY, 7 DAYS A WEEK, 365 DAYS PER YEAR; 3. MAINTAINS AN OPEN MEDICAL STAFF, WITH PRIVILEGES AVAILABLE TO ALL QUALIFIED PHYSICIANS; 4. CONTROL OF PMC RESTS WITH ITS BOARD OF TRUSTEES AND THE BOARD OF TRUSTEES OF PALISADES HEALTHCARE SYSTEM, INC. BOTH BOARDS ARE 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. PALISADES MEDICAL CENTER PALISADES MEDICAL CENTER ("PMC") IS COMPRISED OF PALISADES MEDICAL CENTER, A 202-BED NON-PROFIT ACUTE CARE MEDICAL CENTER, AND THE HARBORAGE, A 245-BED SKILLED NURSING FACILITY LOCATED IN NORTH BERGEN, BERGEN COUNTY, NEW JERSEY. PMC IS RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS AN INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, PMC PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. MOREOVER, PMC OPERATES CONSISTENTLY WITH THE CRITERIA OUTLINED IN IRS REVENUE RULING 69-545. PALISADES MEDICAL CENTER FOUNDATION, INC. PALISADES MEDICAL CENTER 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). THROUGH FUNDRAISING ACTIVITIES THE ORGANIZATION SUPPORTS THE CHARITABLE PURPOSES, PROGRAMS AND SERVICES OF PALISADES MEDICAL CENTER; A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION, THAT 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. PALISADES GENERAL CARE, INC. PALISADES GENERAL CARE, 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)(2). THE ORGANIZATION SUPPORTS THE CHARITABLE PURPOSES, PROGRAMS AND SERVICES OF PALISADES MEDICAL CENTER; A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION, THAT 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. PALISADES MEDICAL ASSOCIATES, L.L.C. PALISADES MEDICAL ASSOCIATES, L.L.C. 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)(2). THE ORGANIZATION SUPPORTS THE CHARITABLE PURPOSES, PROGRAMS AND SERVICES OF PALISADES MEDICAL CENTER; A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION, THAT 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. FOR-PROFIT PALISADES HEALTHCARE SYSTEM ENTITIES PALISADES CHILD CARE CENTER, INC. A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS PALISADES HEALTHCARE SYSTEM, INC. THIS ENTITY OPERATES A DAY CARE CENTER. PALISADES MANAGEMENT ENTERPRISES A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS PALISADES HEALTHCARE SYSTEM, INC. THE ORGANIZATION PROVIDES MANAGEMENT SERVICES. PALISADES HOUSE PHYSICIANS, P.C. A FOR-PROFIT ENTITY THAT EXISTS IN A NOMINEE RELATIONSHIP FOR THE BENEFIT OF PALISADES MEDICAL CENTER, INC. SCHEDULE H, PART III, SECTION B; 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. PMC PREPARES AN ANNUAL COMMUNITY BENEFIT REPORT WHICH IT MAKES AVAILABLE TO THE PUBLIC ON ITS WEBSITE: WWW.PALISADESMEDICAL.ORG. X true true X X X X X false true false false false false false true false BRUCE J MARKOWITZ TRUSTEE - PRESIDENT/CEO 645151 0 263490 0 412775 0 55708 0 22148 0 1399272 0 0 0 JOHN CALANDRIELLO CPA VP; CHIEF FINANCIAL OFFICER 438540 0 103212 0 29899 0 192601 0 16524 0 780776 0 3614 0 DAVID BERKOWITZ VP; CHIEF OPERATING OFFICER 316166 0 67238 0 43393 0 67962 0 22803 0 517562 0 0 0 RUBEN D FERNANDEZ VP; NURSING 299615 0 59000 0 4191 0 31930 0 7314 0 402050 0 0 0 DONNA CAHILL VP; HUMAN RESOURCES 222774 0 50264 0 34249 0 54846 0 18630 0 380763 0 0 0 EURICE R ROJAS VP; MARKETING 239782 0 47280 0 6124 0 23313 0 21925 0 338424 0 0 0 SURESH RAINA MD VP; CHIEF MEDICAL OFFICER 341083 0 67400 0 4191 0 15600 0 507 0 428781 0 0 0 JOSEPH BURT VP; EXEC. DIRECTOR FOUNDATION 214999 0 0 0 794 0 9675 0 21355 0 246823 0 0 0 SANTOSH RAINA MD MEDICAL DIRECTOR 376809 0 0 0 3564 0 15600 0 2540 0 398513 0 0 0 QI ZHANG MD MEDICAL DIRECTOR 300590 0 0 0 2076 0 15600 0 22308 0 340574 0 0 0 JOAN MOZEIKA DIRECTOR 193992 0 0 0 1214 0 29469 0 21839 0 246514 0 0 0 FAY SPRAGLEY CLINICAL COORDINATOR 166854 0 0 0 12631 0 10594 0 22909 0 212988 0 0 0 LORNA R SCHNEIDER CLINICAL COORDINATOR 172738 0 0 0 5870 0 17984 0 8681 0 205273 0 0 0 SCHEDULE J, PART I; QUESTION 1 PALISADES MEDICAL CENTER PAID FOR FINANCIAL/TAX PLANNING SERVICES FOR BRUCE J. MARKOWITZ IN THE AMOUNT OF $1,955. THE FINANCIAL/TAX PLANNING SERVICES AMOUNT OUTLINED HEREIN WAS INCLUDED IN MR. MARKOWITZ'S 2014 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES. SCHEDULE J, PART I; QUESTION 4B IN 2014 BRUCE J. MARKOWITZ EARNED $1,399,272 IN SALARIES AND BENEFITS. THE AMOUNT REFLECTED IN COLUMN B(III) FOR BRUCE J. MARKOWITZ, $412,775; INCLUDES CURRENT YEAR VESTING AND DISTRIBUTIONS IN AN INTERNAL REVENUE CODE SECTION 457(F) PLAN (NON-QUALIFIED DEFERRED COMPENSATION PLAN) IN THE AMOUNT OF $355,232 AS THE AMOUNT WAS NO LONGER SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. THIS AMOUNT WAS INCLUDED IN HIS 2014 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES. IN 2014 JOHN CALANDRIELLO, CPA, EARNED $780,776 IN SALARIES AND BENEFITS. CERTAIN OTHER AMOUNTS REPORTED IN FORM W-2, BOX 5 AS COMPENSATION RELATE TO COMPENSATION EARNED IN PRIOR YEARS AND REPORTED ON PRIOR YEAR FORMS 990. THE AMOUNT REFLECTED IN COLUMN B(III) FOR JOHN CALANDRIELLO, CPA, $29,899; INCLUDES CURRENT YEAR VESTING AND DISTRIBUTIONS IN AN INTERNAL REVENUE CODE SECTION 457(F) PLAN (NON-QUALIFIED DEFERRED COMPENSATION PLAN) IN THE AMOUNT OF $3,614 AS THE AMOUNT WAS NO LONGER SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. THIS AMOUNT WAS REPORTED AS EMPLOYEE BENEFIT PLAN CONTRIBUTIONS ON THE ORGANIZATION'S PRIOR YEAR FORMS 990 AND WAS INCLUDED IN HIS 2014 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES. THE DEFERRED COMPENSATION AMOUNT IN COLUMN C FOR JOHN CALANDRIELLO, CPA, $192,601; INCLUDES UNVESTED BENEFITS IN AN INTERNAL REVENUE CODE SECTION 457(F) PLAN (NON-QUALIFIED DEFERRED COMPENSATION PLAN) IN THE AMOUNT OF $177,001, WHICH ARE SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. ACCORDINGLY, HE MAY NEVER ACTUALLY RECEIVE THIS UNVESTED BENEFIT AMOUNT. THIS AMOUNT WAS NOT INCLUDED IN HIS 2014 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES. 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. SCHEDULE J, PART II, COLUMN F THE AMOUNT OF $3,614 REPORTED IN SCHEDULE J, PART II, COLUMN F FOR JOHN CALANDRIELLO, CPA, REPRESENTS AN AMOUNT PAID FOR SERVICES RENDERED IN PRIOR YEARS THAT BECAME TAXABLE IN 2014 BECAUSE IT WAS NO LONGER SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. THIS AMOUNT WAS REPORTED AS AN ACCRUED BENEFIT ON PRIOR YEAR FORMS 990 OF THE ORGANIZATION. THIS AMOUNT WAS TREATED AS TAXABLE INCOME AND REPORTED ON HIS 2014 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES. A NJ HEALTH CARE FACILITIES FINANCING AUTHORITY 221987084 64579F402 2013-07-02 46901409 REFUND, CAP PROJECTS, DEBT SVC FD false false false A 35202879 0 52426735 9262244 0 0 1155903 0 0 6805709 0 0 2013 true false true true A false true false false 0.04900 0.00000 0.04900 true false 0.00000 false true A false true false false false false 0 false 0 false true A true THE YA GROUP INC SPOUSE OWNER - OFFICER 555468 ADVERTISING false SCHEDULE L, PART IV EURICE R. ROJAS IS AN OFFICER FOR PALISADES MEDICAL CENTER, INC. PALISADES MEDICAL CENTER, INC. UTILIZED THE SERVICES OF HIS WIFE'S COMPANY, THE YA GROUP, DURING 2014. TOTAL FEES PAID TO THE YA GROUP WERE $555,468. SERVICES WERE RENDERED AT FAIR MARKET VALUE RATES PURSUANT TO ARM'S LENGTH NEGOTIATIONS. X REFRIGERATORS 1 79572 FMV false false false CORE FORM, PART III; STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS PALISADES MEDICAL CENTER ("PMC") IS AN ACUTE CARE GENERAL MEDICAL AND SURGICAL HOSPITAL. PMC IS RECOGNIZED BY THE IRS AS AN INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, PMC PROVIDES HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. MOREOVER, PMC OPERATES CONSISTENTLY WITH THE FOLLOWING CRITERIA OUTLINED IN IRS REVENUE RULING 69-545: 1. PMC PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF ABILITY TO PAY, INCLUDING CHARITY CARE, SELF-PAY, MEDICARE AND MEDICAID PATIENTS; 2. PMC OPERATES AN ACTIVE EMERGENCY DEPARTMENT FOR ALL PERSONS; WHICH IS OPEN 24 HOURS A DAY, 7 DAYS A WEEK, 365 DAYS PER YEAR; 3. PMC MAINTAINS AN OPEN MEDICAL STAFF, WITH PRIVILEGES AVAILABLE TO ALL QUALIFIED PHYSICIANS; 4. CONTROL OF PMC 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 PMC, AS SHOWN THROUGH THE FACTORS OUTLINED ABOVE AND OTHER INFORMATION CONTAINED HEREIN, CLEARLY DEMONSTRATE THAT THE USE AND CONTROL OF PMC 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. PMC'S SOLE CORPORATE MEMBER IS PALISADES HEALTHCARE SYSTEM, INC. (SYSTEM). THIS TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM CONSISTS OF A GROUP OF AFFILIATED HEALTHCARE ORGANIZATIONS. TO HELP MEET THE HEALTHCARE NEEDS OF RESIDENTS THROUGHOUT ITS COMMUNITY, SYSTEM SERVES RESIDENTS OF HUDSON AND BERGEN COUNTIES IN NEW JERSEY. PMC PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF ABILITY TO PAY. MOREOVER, PMC PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO PATIENTS WHO MEET CERTAIN CRITERIA DEFINED BY THE NEW JERSEY DEPARTMENT OF HEALTH AND SENIOR SERVICES WITHOUT CHARGE OR AT AMOUNTS LESS THAN ESTABLISHED RATES. PMC MAINTAINS RECORDS TO IDENTIFY AND MONITOR THE AMOUNT OF CHARITY CARE IT PROVIDES. THESE RECORDS INCLUDE THE AMOUNT OF CHARGES FOREGONE FOR SERVICES AND SUPPLIES FURNISHED UNDER ITS CHARITY CARE POLICY. PATIENT STATISTICAL INFORMATION/ACCOMPLISHMENTS/MILESTONES ========================================================== PALISADES HEALTHCARE SYSTEM, INC. IS COMPRISED OF PALISADES MEDICAL CENTER, A 202-BED, NOT-FOR-PROFIT, ACUTE CARE FACILITY, AND THE HARBORAGE, A 245-BED SKILLED NURSING FACILITY. LOCATED IN THE TOWN OF NORTH BERGEN, NEW JERSEY, PMC PROVIDES COMPREHENSIVE INPATIENT AND OUTPATIENT SERVICES TO A SERVICE AREA THAT EXTENDS THROUGHOUT NORTHERN HUDSON AND SOUTHERN BERGEN COUNTIES IN NEW JERSEY. SUPPORTING ITS CENTER OF EXCELLENCE IN EMERGENCY MEDICINE, THE HELIPORT-EQUIPPED EMERGENCY ROOM AT PALISADES FEATURES SPECIAL ACCOMMODATIONS FOR OBSTETRICS AND GYNECOLOGY, ORTHOPEDICS, AND PSYCHIATRIC TRAUMA. INPATIENT VOLUME APPROXIMATED 11,202 ADMISSIONS. OUTPATIENT CLINIC VOLUME APPROXIMATED 16,900 VISITS AND THE EMERGENCY ROOM VOLUME APPROXIMATED 42,000 PATIENTS IN 2014. PMC IS A SIGNIFICANT HEALTHCARE PROVIDER IN HUDSON COUNTY, NEW JERSEY SERVING APPROXIMATELY 10% OF INPATIENT DISCHARGES FOR HUDSON RESIDENTS. IN 2014, THE HOSPITAL DISCHARGED A TOTAL OF 11,146 PATIENTS AND PERFORMED 7,447 INPATIENT AND OUTPATIENT SURGICAL PROCEDURES. PMC HAS BEEN THE LEADER IN NORTHERN NEW JERSEY IN PROVIDING THE BEST IN HEALTHCARE AND THE LATEST IN MEDICAL TECHNOLOGY TO THE NEARLY 400,000 RESIDENTS THAT COMPRISE ITS PRIMARY SERVICE AREA OF HUDSON AND SOUTHERN BERGEN COUNTIES. PMC IS AN AFFILIATE OF THE HACKENSACK UNIVERSITY HEALTH NETWORK. PMC HAS BEEN ACTIVE IN DEVELOPING COLLABORATIVE CLINICAL AND ACADEMIC PROGRAMS TO BRING ADDITIONAL SPECIALIZED DIAGNOSTIC AND MEDICAL TREATMENT TO LOCAL RESIDENTS. NEWLY ENHANCED SERVICES INCLUDE: - PMC'S LEVEL II NURSERY IS FULLY OPERATIONAL WITH QUICK TRANSFER OF CHILDREN NEEDING TERTIARY CARE AT HACKENSACK UNIVERSITY MEDICAL CENTER. - PERIPHERAL VASCULAR SURGERY IS REVITALIZED AT PMC WITH THE HELP OF VASCULAR SURGEONS FROM HACKENSACK UNIVERSITY MEDICAL CENTER. - BARIATRIC SURGERY, THORACIC SURGERY AND NEUROSURGERY PROGRAMS ESTABLISHED AT PMC WITH SUPPORT FROM HACKENSACK UNIVERSITY MEDICAL CENTER SURGEONS. - BREAST SURGERY PROGRAM. PMC MEDICAL SERVICES AND HEALTH CARE PROGRAMS ============================================= THE MEDICAL SERVICES AND HEALTHCARE PROGRAMS CONDUCTED BY PMC INCLUDE, BUT ARE NOT LIMITED TO, THE FOLLOWING: 1. CARDIAC CATHETERIZATION AN EXPERIENCED AND DEDICATED TEAM PROVIDES PATIENTS WITH THE HIGHEST QUALITY CARE AVAILABLE IN A CARING SETTING. THE PMC MEDICAL TEAM INCLUDES PROVEN, BOARD CERTIFIED INVASIVE CARDIOLOGISTS, AND HIGHLY SKILLED INVASIVE CARDIOLOGY REGISTERED NURSES, CARDIOVASCULAR TECHNOLOGISTS AND MONITOR TECHNICIANS. EVERY PROFESSIONAL STAFF MEMBER OF THE DEPARTMENT IS CERTIFIED IN CARDIOPULMONARY RESUSCITATION (CPR) AND ALL NURSES ARE CERTIFIED ADVANCED CARDIAC LIFE SUPPORT. 2. PEDIATRICS THE HEALTH AND WELL-BEING OF CHILDREN HAS ALWAYS BEEN A TOP PRIORITY AT PMC. PEDIATRICIANS AT PMC WHO LIVE AND PRACTICE IN THE AREA PROVIDE EXPERT CARE FOR A VARIETY OF CHILDHOOD ILLNESSES. PMC'S INPATIENT UNIT IS STAFFED BY PEDIATRIC NURSES WHO UNDERSTAND THAT CHILDREN NEED EXTRA TLC WHEN THEY'RE HOSPITALIZED. A LIBERAL VISITATION POLICY ON THIS UNIT FOR PARENTS ASSURES THAT THEY CAN REMAIN WITH YOUR CHILD AS MUCH AS POSSIBLE. 3. MATERNITY CARE IN 2014, APPROXIMATELY 1,430 BABIES WERE BORN AT PMC. PMC'S LABOR, DELIVERY, RECOVERY AND POSTPARTUM (LDRP) BIRTHING SUITES OFFER FAMILIES THE LATEST TECHNOLOGY AND THE FINEST DOCTORS IN A FAMILY ORIENTED ENVIRONMENT. PMC'S OBSTETRICIANS, NURSES, AND LACTATION CONSULTANTS PROVIDE EXPERT CARE FOR PREGNANT WOMEN, ALONG WITH CHILDBIRTH AND INFANT CARE CLASSES FOR COUPLES. 4. SAME DAY SURGERY PATIENTS RECEIVE TREATMENT IN PMC'S MODERN OUTPATIENT SURGERY CENTER AND RETURN HOME IN HOURS, NOT DAYS. TECHNOLOGICAL ADVANCES HAVE MADE IT POSSIBLE FOR US TO PERFORM MANY KINDS OF SURGERY AT THE CENTER. PATIENTS BENEFIT FROM SMALLER INCISIONS, MINIMAL PAIN, FASTER RECUPERATION TIME AND LESS EXPENSE. PMC OFFERS ARTHROSCOPY, LAPAROSCOPY, ENDOSCOPY, HERNIA REPAIR AND GALL BLADDER REMOVAL. PMC'S YAG LASER ENHANCES OUR SURGICAL CAPABILITIES AND IMPROVES PATIENT COMFORT. 5. EMERGENCY CARE BECAUSE OF PMC'S LOCATION ON THE HUDSON RIVER -- NEAR THE GEORGE WASHINGTON BRIDGE, LINCOLN TUNNEL, AND MAJOR HIGHWAYS -- PMC HAS ONE OF THE BUSIEST EMERGENCY DEPARTMENTS OF ANY COMMUNITY HOSPITAL IN NEW JERSEY. APPROXIMATELY 42,000 PATIENTS COME TO US EACH YEAR FOR LIFE-SAVING CARE ADMINISTERED BY BOARD-CERTIFIED EMERGENCY MEDICINE SPECIALISTS. A HELIPORT ON OUR PROPERTY PROVIDES ADDITIONAL ACCESS TO OUR HOSPITAL. PMC'S EMERGENCY DEPARTMENT FEATURES 10,000 SQUARE FEET OF SPACE FOR PATIENT TREATMENT, TRAUMA, AND TRIAGE, WITH SPECIAL ACCOMMODATIONS FOR OBSTETRICS/GYNECOLOGY CARE, ORTHOPEDICS, AND PSYCHIATRIC TRAUMA. A DECONTAMINATION SHOWER -- THE FIRST OF ITS KIND IN HUDSON COUNTY -- IS USED TO TREAT INDIVIDUALS INVOLVED IN INDUSTRIAL ACCIDENTS. AS AN ADDED BENEFIT, A SEPARATE FAST TRACK PROGRAM IN PMC'S EMERGENCY DEPARTMENT IS RESERVED FOR THE PROMPT TREATMENT OF MINOR ILLNESSES AND INJURIES. IT'S OUR WAY OF OFFERING FAST, QUALITY CARE TO HELP OUR PATIENTS COPE WITH LIFE'S LITTLE EMERGENCIES. 6. MENTAL HEALTHCARE PATIENTS IN CRISIS RECEIVE EMERGENCY CARE AT PMC. PMC MANAGES A 24 HOUR CRISIS HOTLINE STAFFED BY MENTAL HEALTH PROFESSIONALS. PMC'S OUTPATIENT COUNSELING PROGRAM PROVIDES COMMUNITY BASED CARE FOR INDIVIDUALS AND FAMILIES. HELP IS AVAILABLE FOR SUBSTANCE ABUSE, FAMILY VIOLENCE, AND MORE. CORE FORM, PART III; STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS 7. OUTPATIENT TESTING PATIENTS HAVE ACCESS TO PMC'S OUTPATIENT TESTING FACILITIES: THE CARDIOPULMONARY LABORATORY DIAGNOSES AND TREATS EXISTING CARDIAC AND RESPIRATORY CONDITIONS AND PROVIDES CARE TO PREVENT COMPLICATIONS AFTER SURGERY. BRAIN FUNCTION TESTS ARE ALSO PERFORMED. THE CLINICAL AND ANATOMICAL PATHOLOGY LABORATORIES PROVIDE ROUTINE AND SPECIALIZED TESTS. SKILLED MEDICAL TECHNOLOGISTS ENSURE QUALITY AND ACCURACY. THE RADIOLOGY SERVICE OFFERS X-RAYS, CT SCANS, NUCLEAR MEDICINE PROCEDURES, ULTRASOUND, MAMMOGRAPHY, CALCIUM SCORING AND DIGITAL ANGIOGRAPHY, PERFORMED BY REGISTERED RADIOLOGY TECHNICIANS AND RADIOLOGISTS. IN ADDITION, OUR INTERVENTIONAL RADIOLOGIST PERFORMS UFE PROCEDURES AND FALLOPIAN TUBE RE-CANALIZATION. THE MRI CENTER HOUSES STATE OF THE ART MAGNETIC RESONANCE IMAGING EQUIPMENT THAT PRODUCES SUPERIOR IMAGES UP TO 75 PERCENT FASTER THAN OTHER MACHINES. DURING THE PROCEDURE, PATIENTS RECLINE IN A SPACIOUS TESTING AREA, LISTEN TO MUSIC, AND RELAX WITH AROMATHERAPY. THE VASCULAR LABORATORY CONDUCTS SAFE AND ACCURATE NON-INVASIVE TESTS TO DIAGNOSE CIRCULATORY PROBLEMS. LASTLY, OUR RADIOLOGY TECHNOLOGY IS COMPLETELY FILMLESS AND IS REPRESENTED VIA DIGITAL EXPOSURE ALLOWING FOR MORE ACCURATE DIAGNOSTIC CAPABILITIES. 8. PATHOLOGY & LABORATORY SERVICES SUPPORTING THE CONTINUUM OF CARE. PMC'S CLINICAL AND ANATOMICAL PATHOLOGY LABORATORIES PROVIDE ROUTINE AND SPECIALIZED TESTS BY SKILLED MEDICAL TECHNOLOGISTS TO ENSURE QUALITY AND ACCURACY. PATHOLOGY TESTS INCLUDE GROSS, MICROSCOPIC, CHEMICAL, IMMUNOLOGIC AND MOLECULAR EXAMINATION OF ORGANS AND TISSUES TO DETERMINE THE NATURE OF DISEASES. 9. COMMUNITY ACTIVITIES AND PROGRAMS PMC OFFERS NUMEROUS COMMUNITY EDUCATION, MEDICAL SCREENINGS AND SUPPORT GROUP SERVICES AND PROGRAMS TO PROMOTE WELLNESS FOR PEOPLE OF ALL AGES. THESE TYPES OF PROGRAMS INCLUDE, BUT ARE NOT LIMITED TO, THE FOLLOWING: - HEALTH FAIRS TAKE PLACE REGULARLY, IN THE WORKPLACE, AND IN THE COMMUNITY TO PROVIDE EDUCATION ABOUT CANCER, DIABETES, ASTHMA, AIDS, HEART DISEASE, AND MORE. 10. PMC RESIDENCY PROGRAM INCLUDES INTERNAL MEDICINE, GENERAL SURGERY, OBSTETRICS, FAMILY MEDICINE, TRADITIONAL ROTATING INTERNSHIPS, GI FELLOWSHIPS AND DERMATOLOGY FELLOWSHIPS. - HEALTH SCREENINGS, FREE OR LOW-COST TESTS ARE AVAILABLE TO DETECT PROSTATE CANCER, HYPERTENSION, HIGH CHOLESTEROL, AND GLAUCOMA. - SEMINARS AND LECTURES COVER CURRENT HEALTHCARE ISSUES. THESE FREE, INFORMATIVE TALKS ARE PRESENTED BY PHYSICIANS, NURSES, AND ADMINISTRATORS WHO ARE MEMBERS OF OUR SPEAKERS' BUREAU. - SUPPORT GROUPS HELP PEOPLE TO COPE WITH LIFE CHANGES BROUGHT ABOUT BY ILLNESSES SUCH AS CANCER, DIABETES, STROKE AND CARDIAC DISEASE. PALISADES MEDICAL CENTER (PMC) HAS ALWAYS BEEN RECOGNIZED FOR ITS STRONG TRADITION OF COMMUNITY SERVICE. PMC STAFF AND VOLUNTEERS WORK WITH COMMUNITY PARTNERS TO IMPROVE THE LIVES OF THOUSANDS OF LOCAL RESIDENTS BY OFFERING FREE HEALTH SCREENINGS AND EDUCATIONAL SEMINARS THROUGHOUT THE YEAR. PMC'S LONGSTANDING PARTNERSHIPS WITH SOCIAL AND CIVIC ORGANIZATIONS, RELIGIOUS CONGREGATIONS, SCHOOLS, AND LOCAL EMPLOYERS PLACE IT IN A UNIQUELY EFFECTIVE POSITION TO IDENTIFY AND ADDRESS THE HEALTHCARE NEEDS OF THE LOCAL COMMUNITIES IT SERVES. DURING THE PAST THREE YEARS, PMC WORKED WITH MANY OF ITS PARTNERS TO RELEASE PMC'S COMMUNITY HEALTH NEEDS ASSESSMENT. THIS COMPREHENSIVE REPORT IS THE RESULT OF A THOROUGH ASSESSMENT OF OUR AREA'S HEALTHCARE PROFILE, INCLUDING A REVIEW OF PUBLIC HEALTH DATA, SUMMARY PATIENT INFORMATION FROM CARE PROVIDERS, AND NEW DATA OBTAINED BY MEANS OF FOCUS GROUPS, PUBLIC FORUMS AND A COMMUNITY NEEDS ASSESSMENT SURVEY. THIS ASSESSMENT ALSO INCLUDES ACTION ITEMS AND PLANS TO ADDRESS THE PREVAILING HEALTHCARE CONCERNS IN PMC'S SERVICE AREA, INCLUDING NORTH BERGEN, UNION CITY, WEST NEW YORK, GUTTENBERG, WEEHAWKEN, CLIFFSIDE PARK, EDGEWATER, AND FAIRVIEW. THE TOP FIVE LOCAL HEALTH ISSUES IDENTIFIED AND ADDRESSED BY THE REPORT WERE: - ACCESS TO HEALTH CARE - ALCOHOL ABUSE - INADEQUATE SOCIAL SUPPORT - OBESITY - TOBACCO USE CORE FORM, PART III; LINE 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 PALISADES HEALTHCARE SYSTEM, INC. ("SYSTEM") IS THE SOLE MEMBER OF THIS ORGANIZATION. SYSTEM HAS THE RIGHT TO ELECT THE MEMBERS OF THIS ORGANIZATION'S BOARD OF GOVERNORS 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 PALISADES HEALTHCARE SYSTEM, INC. AND AFFILIATES; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM ("SYSTEM"). PALISADES HEALTHCARE SYSTEM, INC. 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 ORGANIZATION'S AUDIT AND COMPLIANCE COMMITTEE HAS BEEN DELEGATED THE RESPONSIBILITY TO OVERSEE AND COORDINATE THE FORM 990 PREPARATION, REVIEW AND FILING PROCESS. AS PART OF THE 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 VARIOUS OTHER INDIVIDUALS ("INTERNAL WORKING GROUP") OF THE ORGANIZATION AND THE SYSTEM 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. THEREAFTER, THE FORM 990 WAS REVIEWED BY THE AUDIT AND COMPLIANCE COMMITTEE OF THE ORGANIZATION PRIOR TO PROVIDING IT TO EACH VOTING MEMBER OF THE ORGANIZATION'S BOARD OF TRUSTEES AND FILING WITH THE IRS. CORE FORM, PART VI, SECTION B; QUESTION 12 THE ORGANIZATION IS AN AFFILIATE OF PALISADES HEALTHCARE SYSTEM, INC. AND AFFILIATES; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM ("SYSTEM"). THE 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 THE SYSTEM'S CHIEF COMPLIANCE OFFICER FOR REVIEW. THEREAFTER, THE SYSTEM'S CHIEF COMPLIANCE OFFICER PREPARES A SUMMARY OF THE COMPLETED QUESTIONNAIRES WHICH CONTAINS INFORMATION DISCLOSED ON AN INDIVIDUAL BY INDIVIDUAL BASIS AND THEN PRESENTS THIS SUMMARY TO THE ORGANIZATION'S GOVERNANCE COMMITTEE FOR ITS REVIEW AND DISCUSSION. CORE FORM, PART VI, SECTION B; QUESTION 15 THE 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 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 IN CONJUNCTION WITH THE BOARD OF GOVERNORS 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 COMPENSATION COMMITTEE IS COMPRISED ENTIRELY OF MEMBERS OF THE BOARD OF GOVERNORS EACH OF WHOM ARE INDEPENDENT AND ARE FREE FROM ANY CONFLICTS OF INTEREST. HOWEVER, THE ULTIMATE DECISION TO REVIEW AND APPROVE OF CERTAIN SENIOR MANAGEMENT EXECUTIVE COMPENSATION AND BENEFITS, INCLUDING THE PRESIDENT/CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER RESIDES WITH THE BOARD OF GOVERNORS. FOLLOWING THE COMPENSATION COMMITTEE REVIEW OF PERFORMANCE AND CERTAIN SENIOR MANAGEMENT COMPENSATION AND BENEFITS IT MAKES RECOMMENDATIONS TO THE BOARD OF GOVERNORS WHICH HAS FINAL AUTHORITY TO APPROVE, DISAPPROVE OR TO ADJUST THE RECOMMENDATIONS OF THE COMPENSATION COMMITTEE. IN ATTENDANCE AT EACH MEETING IS AN ATTORNEY ADVISOR. IN ADDITION, THE COMMITTEE USES THE SERVICES OF A COMPENSATION CONSULTANT. BOTH THE COMPENSATION CONSULTANT AND ATTORNEY ADVISOR ARE NOT MEMBERS OF THE BOARD OF GOVERNORS OR MEMBERS OF THE COMMITTEE. THE COMPENSATION 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, NUMBER OF LICENSED BEDS AND NET PATIENT SERVICE REVENUE. THE COMPENSATION 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 COMPENSATION COMMITTEE AND THE BOARD OF GOVERNORS 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, INCLUDING THE CHIEF OPERATING OFFICER, ARE REVIEWED ANNUALLY BY THE PRESIDENT/CHIEF EXECUTIVE OFFICER WITH ASSISTANCE FROM THE 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 CONJUNCTION 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 GOVERNORS. CORE FORM, PART VII, SECTION A, COLUMN B THIS ORGANIZATION IS AN AFFILIATE WITHIN PALISADES HEALTHCARE SYSTEM; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM ("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 PALISADES HEALTHCARE SYSTEM; NOT SOLELY THIS ORGANIZATION. CORE FORM, PART XI; QUESTION 9 OTHER CHANGES IN NET ASSETS OR FUND BALANCES INCLUDE: - CHANGE IN PENSION BENEFIT LIABILITY; ($26,066,000) CORE FORM, PART IV; QUESTION 12 AND PART XII; QUESTION 2 THE ORGANIZATION IS AN AFFILIATE WITHIN THE PALISADES HEALTHCARE SYSTEM, INC., A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. AN INDEPENDENT CPA FIRM AUDITED THE CONSOLIDATED FINANCIAL STATEMENTS OF PALISADES HEALTHCARE SYSTEM, INC. AND ITS AFFILIATES FOR THE YEARS ENDED DECEMBER 31, 2014 AND DECEMBER 31, 2013; RESPECTIVELY. THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS CONTAIN COMBINING SCHEDULES ON AN ENTITY BY ENTITY BASIS. THE INDEPENDENT CPA FIRM ISSUED AN UNQUALIFIED OPINION WITH RESPECT TO THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2014 AND DECEMBER 31, 2013; RESPECTIVELY. THE PALISADES MEDICAL CENTER 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. FORM 990 PART IX LINE 11G DESCRIPTION:COLLECTION AGENCY TOTAL FEES:392114 FORM 990 PART IX LINE 11G DESCRIPTION:CONSULTING FEES TOTAL FEES:329040 FORM 990 PART IX LINE 11G DESCRIPTION:PROFESSIONAL FEES TOTAL FEES:16435950 PALISADES GENERAL CARE INC 7600 RIVER ROAD NORTH BERGEN NJ 07047 222587492 HLTHCARE SVCS NJ 501(C)(3) 509(A)(2) PHS false PALISADES HEALTHCARE SYSTEM INC 7600 RIVER ROAD NORTH BERGEN NJ 07047 222587494 SUPPORT PMC NJ 501(C)(3) 509(A)(3) NA false PALISADES MEDICAL CENTER FOUNDATION 7600 RIVER ROAD NORTH BERGEN NJ 07047 223693169 SUPPORT PHS NJ 501(C)(3) 509(A)(1) PHS false PALISADES MEDICAL ASSOCIATES LLC 7600 RIVER ROAD NORTH BERGEN NJ 07047 223814193 SUPPORT PMC NJ 501(C)(3) 509(A)(2) PHS false PALISADES CHILD CARE CENTER INC 7600 RIVER ROAD NORTH BERGEN NJ 07047 222812623 DAY CARE CENTER NJ C CORP. false PALISADES MANAGEMENT ENTERPRISES 7600 RIVER ROAD NORTH BERGEN NJ 07047 222608891 SVC. MANAGEMENT NJ C CORP. false PALISADES HOUSE PHYSICIANS PC 7600 RIVER ROAD NORTH BERGEN NJ 07047 432020100 HEALTHCARE SVCS. NJ C CORP. false false false false true true false false false false false false false true true true false true true true SCHEDULE R, PART V THE ORGANIZATION IS AN AFFILIATE WITHIN PALISADES HEALTHCARE SYSTEM, INC. AND AFFILIATES; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM ("SYSTEM"). PALISADES MEDICAL CENTER ROUTINELY PAYS EXPENSES FOR VARIOUS 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.