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        <ExplanationTxt>PROPERTIES IS A NOT-FOR-PROFIT CORPORATION AS DESCRIBED IN SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND IS GENERALLY EXEMPT FROM FEDERAL INCOME TAXES PURSUANT TO SECTION 501(A) OF THE CODE. INCOME TAXES ARE PROVIDED FOR THE TAX EFFECTS OF THE TRANSACTIONS REPORTED FOR ASSOCIATES, FMS, FHS, FHS SERVICES, INC., HCMA AND SEHSS IN THE FINANCIAL STATEMENTS. INCOME TAXES CONSIST OF TAXES CURRENTLY DUE PLUS DEFERRED TAXES. THE DEFERRED TAX ASSETS AND LIABILITIES REPRESENT THE FUTURE TAX RETURN CONSEQUENCES OF THOSE DIFFERENCES, WHICH WILL EITHER BE TAXABLE OR DEDUCTIBLE WHEN THE ASSETS AND LIABILITIES ARE RECOVERED OR SETTLED. DEFERRED TAX ASSETS AND LIABILITIES ARE REFLECTED AT INCOME TAX RATES APPLICABLE TO THE PERIOD IN WHICH THE DEFERRED TAX ASSETS OR LIABILITIES ARE EXPECTED TO BE REALIZED OR SETTLED. AS CHANGES IN TAX LAWS OR RATES ARE ENACTED, DEFERRED TAX ASSETS AND LIABILITIES ARE ADJUSTED THROUGH THE PROVISION FOR INCOME TAXES. ASSOCIATES, FMS, FHS, FHS SERVICES, INC., HCMA AND SEHSS ACCOUNT FOR INTEREST AND PENALTIES RELATED TO UNCERTAIN TAX POSITIONS AS PART OF THEIR PROVISION FOR FEDERAL AND STATE INCOME TAXES. FMS, FHS, FHS SERVICES, INC. AND HCMA ARE INCLUDED IN A CONSOLIDATED FEDERAL AND COMBINED NEW YORK STATE INCOME TAX RETURN WITH THEIR PARENT, ASSOCIATES. SEHSS FILES ITS TAX RETURNS ON A SEPARATE BASIS. THE TAX YEARS OPEN TO EXAMINATION BY FEDERAL AND STATE AUTHORITIES ARE 2011 THROUGH 2014.</ExplanationTxt>
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      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>FORM 990, PART VI, SECTION A, LINE 4</FormAndLineReferenceDesc>
        <ExplanationTxt>IN 2014, ST. JOSEPH'S HEALTH CENTER PROPERTIES MADE SIGNIFICANT CHANGES TO THEIR BYLAWS. THESE CHANGES WERE MADE TO ENSURE COMPLIANCE WITH CHANGES THAT WERE ENACTED TO THE NYS NOT FOR PROFIT LAW. THE CHANGES INCLUDE: 1) NO EMPLOYEE OF THE CORPORATION SHALL SERVE AS CHAIR OF THE BOARD OR HOLD ANY OTHER TITLE WITH SIMILAR RESPONSIBILITIES. 2) THE AUDIT COMMITTEE IS RESPONSIBLE FOR THE FOLLOWING AUDIT FUNCTIONS: (A) ANNUALLY RETAINING OR RENEWING THE RETENTION OF, AND MONITORING THE AUDIT EFFORTS OF THE CORPORATION'S INDEPENDENT EXTERNAL AUDITORS AND REVIEWING WITH THE AUDITORS THE RESULTS OF THEIR AUDIT AND ANY RELATED MANAGEMENT LETTER; (B) REVIEWING WITH THE INDEPENDENT EXTERNAL AUDITORS THE SCOPE AND PLANNING OF THE AUDIT PRIOR TO ITS COMMENCEMENT; (C) UPON COMPLETION OF THE AUDIT, REVIEWING AND DISCUSSING WITH THE INDEPENDENT EXTERNAL AUDITORS; (I) ANY MATERIAL WEAKNESSES AND WEAKNESSES IN INTERNAL CONTROLS IDENTIFIED BY THE AUDITOR; (II) ANY RESTRICTIONS ON THE SCOPE OF THE AUDITOR'S ACTIVITIES OR ACCESS TO REQUESTED INFORMATION; (III) ANY SIGNIFICANT DISAGREEMENTS BETWEEN THE AUDITOR AND MANAGEMENT; AND (IV) THE ADEQUACY OF THE CORPORATION'S ACCOUNTING AND FINANCIAL REPORTING PROCESSES; (D) ANNUALLY CONSIDERING THE PERFORMANCE AND INDEPENDENCE OF THE INDEPENDENT EXTERNAL AUDITOR; (E) REPORTING ON THE AUDIT COMMITTEE'S ACTIVITIES WITH RESPECT TO THE CORPORATION'S AUDIT TO THE BOARD OF TRUSTEES; (F) IMPLEMENTING AND OVERSEEING THE CORPORATION'S CONFLICT OF INTEREST AND WHISTLEBLOWER POLICIES; 3) THE AUDIT COMMITTEE SHALL CONSIST OF ONLY INDEPENDENT TRUSTEES. 4) CONFLICT OF INTEREST POLICY REVISIONS; (A) COI POLICY APPLIES TO KEY EMPLOYEES IN ADDITION TO OFFICERS AND TRUSTEES; (B) DEFINITIONS WERE EXPANDED TO DEFINE KEY EMPLOYEES, AFFILIATES, RELATIVE, RELATED PARTY AND RELATED PARTY TRANSACTIONS; (C) PROCEDURES WERE ENHANCED RELATED TO DUTY TO DISCLOSE, DETERMINING IF A CONFLICT OF INTEREST EXISTS, PROCEDURES FOR ADDRESSING CONFLICTS OF INTEREST, AND MANAGING VIOLATIONS OF THE POLICY. 5) A PERSON WHO RECEIVES COMPENSATION, DIRECTOR OR INDIRECTLY, FROM THE CORPORATION FOR SERVICES IS PRECLUDED FROM VOTING ON OR PARTICIPATING IN DELIBERATIONS CONCERNING MATTERS PERTAINING TO THAT PERSON'S COMPENSATION. HOWEVER, UPON REQUEST OF THE BOARD OR COMMITTEE, THE INDIVIDUAL MAY PRESENT INFORMATION TO THE BOARD OR COMMITTEE PRIOR TO THE COMMENCEMENT OF DELIBERATIONS OR VOTING THERETO. 6) A PHYSICIAN WHO IS A VOTING MEMBER OF THE BOARD AND RECEIVES COMPENSATION, DIRECTLY OR INDIRECTLY, FROM THE CORPORATION FOR SERVICES IS PRECLUDED FROM DISCUSSING AND VOTING ON MATTERS PERTAINING TO THAT PHYSICIAN'S AND OTHER PHYSICIANS' COMPENSATION. NO PHYSICIAN OR PHYSICIAN TRUSTEE, EITHER INDIVIDUALLY OR COLLECTIVELY, IS PROHIBITED FROM PROVIDING INFORMATION TO THE BOARD REGARDING PHYSICIAN COMPENSATION. IN ADDITION, THE ORGANIZATION CHANGED ITS SOLE CORPORATE MEMBER TO ST. JOSEPH'S HEALTH, INC. EFFECTIVE OCTOBER 2014.</ExplanationTxt>
      </SupplementalInformationDetail>
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>FORM 990, PART VI, SECTION A, LINE 6</FormAndLineReferenceDesc>
        <ExplanationTxt>ST. JOSEPH'S HEALTH, INC. IS THE SOLE MEMBER.</ExplanationTxt>
      </SupplementalInformationDetail>
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>FORM 990, PART VI, SECTION A, LINE 7A</FormAndLineReferenceDesc>
        <ExplanationTxt>ST. JOSEPH'S HEALTH, INC., AS SOLE MEMBER, MAY ELECT THE BOARD OF DIRECTORS AND REMOVE BOARD MEMBERS.</ExplanationTxt>
      </SupplementalInformationDetail>
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>FORM 990, PART VI, SECTION A, LINE 7B</FormAndLineReferenceDesc>
        <ExplanationTxt>THE SOLE MEMBER OF THE CORPORATION, ST. JOSEPH'S HEALTH, INC., SHALL RETAIN THE POWER AND AUTHORITY TO: - CHANGE THE PHILOSOPHY, MISSION AND PURPOSE OF THE CORPORATION; - ADOPT AND/OR AMEND THE CERTIFICATE OF INCORPORATION; - ADOPT AND/OR AMEND THE BY-LAWS; - ELECT THE BOARD OF DIRECTORS AND REMOVE THE BOARD MEMBERS WITH OR WITHOUT CAUSE; - APPOINT THE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE CORPORATION; - APPROVE THE PURCHASE, SALE, OR GIFT OF CAPITAL ASSETS; - APPROVE THE MERGER, CONSOLIDATION OR AFFILIATION OF THE CORPORATION WITH ANOTHER CORPORATION, ORGANIZATION OR PROGRAM; - APPROVE THE DISSOLUTION OF THE CORPORATION AND DISPOSITION OF ASSETS.</ExplanationTxt>
      </SupplementalInformationDetail>
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>FORM 990, PART VI, SECTION B, LINE 11</FormAndLineReferenceDesc>
        <ExplanationTxt>PRIOR TO THE SUBMISSION OF THE FORM 990 THE BOARD OF DIRECTORS RECEIVES A COPY IN ADVANCE OF THE NEXT SCHEDULED BOARD MEETING. THIS ALLOWS THEM THE TIME TO REVIEW THE DOCUMENT PRIOR TO THE MEETING. AT THE FOLLOWING BOARD MEETING, THE MEMBERS DISCUSS ANY QUESTION OR CONCERNS AND AS APPROPRIATE FOLLOW-UP OCCURS.</ExplanationTxt>
      </SupplementalInformationDetail>
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>FORM 990, PART VI, SECTION B, LINE 12C</FormAndLineReferenceDesc>
        <ExplanationTxt>CONSISTENT WITH THE PROPERTIES BYLAWS WHICH REQUIRES A DUTY TO DISCLOSE, ON AN ANNUAL BASIS AT A DEFINED TIME ALL BOARD OF DIRECTORS ARE GIVEN THE CONFLICT OF INTEREST POLICY AND FORM TO REVIEW AND COMPLETE. THE PRESIDENT OF THE BOARD OF DIRECTORS TRACKS THE SUBMISSION PROCESS TO ENSURE THAT ALL FORMS ARE COMPLETED AND SUBMITTED. THE INFORMATION FROM THE CONFLICT OF INTEREST STATEMENTS ARE REVIEWED AT A SUBSEQUENT BOARD MEETING. ANY NEW INDIVIDUALS APPOINTED AS A DIRECTOR WILL COMPLETE THIS REVIEW AND SUBMISSION PROCESS AFTER THEY HAVE BEEN CONFIRMED. THE INTERESTED PERSON IS REQUIRED TO LEAVE THE BOARD OR COMMITTEE MEETING WHILE THE DETERMINATION OF A CONFLICT OF INTEREST IS DISCUSSED AND VOTED UPON. AN INTERESTED PERSON MAY MAKE A PRESENTATION AT THE BOARD OR COMMITTEE MEETING, BUT AFTER SUCH PRESENTATION, HE/SHE SHALL LEAVE THE MEETING DURING THE DISCUSSION OF AND VOTE ON THE TRANSACTION OR ARRANGEMENT THAT RESULTS FORM THE CONFLICT OF INTEREST. THE BOARD OF DIRECTOR MEETING MINUTES REFLECT WHENEVER A BOARD MEMBER ABSTAINS FROM VOTING.</ExplanationTxt>
      </SupplementalInformationDetail>
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>FORM 990, PART VI, SECTION B, LINE 15</FormAndLineReferenceDesc>
        <ExplanationTxt>ST. JOSEPH'S HEALTH CENTER PROPERTIES DOES NOT HAVE ANY DIRECT COMPENSATION ARRANGEMENTS FOR A CEO, EXECUTIVE DIRECTOR, OFFICERS OR KEY EMPLOYEES.</ExplanationTxt>
      </SupplementalInformationDetail>
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>FORM 990, PART VI, SECTION C, LINE 19</FormAndLineReferenceDesc>
        <ExplanationTxt>ST. JOSEPH'S HEALTH CENTER PROPERTIES DOES NOT MAKE ITS GOVERNING DOCUMENTS, CONFLICTS OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC. IT DOES HOWEVER PRODUCE AN ANNUAL REPORT AS PART OF THE ST. JOSEPH'S HOSPITAL HEALTH CENTER'S ANNUAL REPORT, WHICH CONTAINS FINANCIAL INFORMATION AND IS READILY DISTRIBUTED AND MADE AVAILABLE TO THE PUBLIC. ST. JOSEPH'S HEALTH CENTER PROPERTIES, INC. ALSO PROVIDES THIS INFORMATION WHENEVER REQUESTED.</ExplanationTxt>
      </SupplementalInformationDetail>
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>FORM 990, PART XI, LINE 9:</FormAndLineReferenceDesc>
        <ExplanationTxt>UNRESTRICTED RESTICTED NET ASSET: EQUITY TRANSFER TO AFFILIATES -2,495,337.</ExplanationTxt>
      </SupplementalInformationDetail>
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>FORM 990, PART XII, 2C FINANCIAL STATEMENT AND REPORTING:</FormAndLineReferenceDesc>
        <ExplanationTxt>NO CHANGES HAVE BEEN MADE IN THE CURRENT YEAR AS TO HOW THE ORGANIZATION OVERSEES THE PROCESS AND REVIEW OF THE AUDITED FINANCIAL STATEMENTS.</ExplanationTxt>
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      <PerformOfServicesByOtherOrgInd>0</PerformOfServicesByOtherOrgInd>
      <SharingOfFacilitiesInd>0</SharingOfFacilitiesInd>
      <PaidEmployeesSharingInd>1</PaidEmployeesSharingInd>
      <ReimbursementPaidToOtherOrgInd>1</ReimbursementPaidToOtherOrgInd>
      <ReimbursementPaidByOtherOrgInd>0</ReimbursementPaidByOtherOrgInd>
      <TransferToOtherOrgInd>1</TransferToOtherOrgInd>
      <TransferFromOtherOrgInd>1</TransferFromOtherOrgInd>
      <TransactionsRelatedOrgGrp>
        <OtherOrganizationName>
          <BusinessNameLine1Txt>ST JOSEPH'S HOSPITAL HEALTH CENTER</BusinessNameLine1Txt>
        </OtherOrganizationName>
        <TransactionTypeTxt>A</TransactionTypeTxt>
        <InvolvedAmt>6280034</InvolvedAmt>
        <MethodOfAmountDeterminationTxt>CASH</MethodOfAmountDeterminationTxt>
      </TransactionsRelatedOrgGrp>
      <TransactionsRelatedOrgGrp>
        <OtherOrganizationName>
          <BusinessNameLine1Txt>ST JOSEPH'S HOSPITAL HEALTH CENTER</BusinessNameLine1Txt>
        </OtherOrganizationName>
        <TransactionTypeTxt>O</TransactionTypeTxt>
        <InvolvedAmt>281245</InvolvedAmt>
        <MethodOfAmountDeterminationTxt>CASH</MethodOfAmountDeterminationTxt>
      </TransactionsRelatedOrgGrp>
      <TransactionsRelatedOrgGrp>
        <OtherOrganizationName>
          <BusinessNameLine1Txt>ST JOSEPH'S HOSPITAL HEALTH CENTER</BusinessNameLine1Txt>
        </OtherOrganizationName>
        <TransactionTypeTxt>P</TransactionTypeTxt>
        <InvolvedAmt>221352</InvolvedAmt>
        <MethodOfAmountDeterminationTxt>CASH</MethodOfAmountDeterminationTxt>
      </TransactionsRelatedOrgGrp>
      <TransactionsRelatedOrgGrp>
        <OtherOrganizationName>
          <BusinessNameLine1Txt>ST JOSEPH'S HOSPITAL HEALTH CENTER</BusinessNameLine1Txt>
        </OtherOrganizationName>
        <TransactionTypeTxt>S</TransactionTypeTxt>
        <InvolvedAmt>150000</InvolvedAmt>
        <MethodOfAmountDeterminationTxt>CASH</MethodOfAmountDeterminationTxt>
      </TransactionsRelatedOrgGrp>
    </IRS990ScheduleR>
  </ReturnData>
</Return>