2014-11-17T14:39:45-06:00 2013-12-31 WithumSmithBrown PC 465 South St Ste 200 Morristown NJ 079606497 990 2013-01-01 221500556 CLARA MAASS MEDICAL CENTER % CATHERINE DOWDY CPA CLAR 9733224032 ONE CLARA MAASS DRIVE Suite BELLEVILLE NJ 07109 CHRISTOPHER WINTERS CFO 9738989494 2014-11-17 true Scott Mariani P00642486 9738989494 2013 2015-11-30 17:44:51Z BARRY H OSTROWSKY 95 OLD SHORT HILLS ROAD WEST ORANGE NJ 07052 268728368 false X WWW.BARNABASHEALTH.ORG X 1946 NJ CMMC IS COMMITTED TO PROVIDING EXCEPTIONAL SERVICES AND QUALITY TO THE COMMUNITIES THEY SERVE THROUGH THEIR PASSION FOR EXCELLENCE AND PERFECTION. 12 9 2610 325 523127 -134646 39814 760171 270248740 266473291 157500 345887 723140 1149019 271169194 268728368 38504 4962 0 0 132662058 127584452 0 0 0 116447611 118276201 249148173 245865615 22021021 22862753 154528075 172707062 134583502 128939149 19944573 43767913 X CMMC IS COMMITTED TO PROVIDING EXCEPTIONAL SERVICES AND QUALITY TO THE COMMUNITIES THEY SERVE THROUGH THEIR PASSION FOR EXCELLENCE AND PERFECTION. CMMC PRIDES ITSELF ON COMMITMENT AND COMPASSION, LEADERSHIP AND LOYALTY, ACCOUNTABILITY, RESPECT, RECOGNITION AND AGILITY WHILE FOCUSING ON SAFETY AND SATISFACTION. false false 22497730 0 28231660 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. DURING 2013 THE ORGANIZATION TREATED 63,749 EMERGENCY DEPARTMENT CASES. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT. 19984239 0 21440769 EXPENSES INCURRED IN PROVIDING MEDICALLY NECESSARY AMBULATORY SURGERY PROCEDURES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. DURING 2013 THE ORGANIZATION PERFORMED 6,619 AMBULATORY SURGERY PROCEDURES. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT. 19058022 0 19409834 EXPENSES INCURRED IN PROVIDING MEDICALLY NECESSARY SURGERY PROCEDURES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. DURING 2013 THE ORGANIZATION PERFORMED 1,250 SURGERY PROCEDURES FOR A TOTAL OF 7,735 PATIENT DAYS. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT. 159743754 4962 197914155 221283745 true true false true false false false false false false true false true false true true false true false false false false false false false false true true false false true false false false false false false true false false false false false false true false false false true 804 0 true 2610 true true true false false false false false false false false false X 12 9 false false false false true true true true true false false true true true true true true true true false NJ X CATHERINE DOWDY CPA 7329238929 2 CRESCENT PLACE OCEANPORT NJ 07757 X JOHN HOPKINS CHAIRMAN - TRUSTEE 1.0 X X 0 0 0 JOSEPH MELONE VICE CHAIRMAN - TRUSTEE 1.0 X X 0 0 0 ROBERT GACCIONE SECRETARY - TRUSTEE 1.0 X X 0 0 0 PETER NORCIA TREASURER - TRUSTEE 1.0 X X 0 0 0 EDWIN AMIRATA MD TRUSTEE 1.0 X 0 0 0 THOMAS A BIGA TRUSTEE 60.0 X 0 1674318 36714 MICHAEL GENTILE MD TRUSTEE;EX-OFfICIO-MED ST PRES 1.0 X 327 0 0 ROBERT GIANGERUSO TRUSTEE 1.0 X 0 0 0 JOHN KELLY MD TRUSTEE;EX-OFfICIO-VP MD STAFF 10.0 X 25279 0 0 MICHAEL PONTORIERO MD TRUSTEE 1.0 X 0 0 0 BRENT RUDNICK TRUSTEE 1.0 X 0 0 0 JAY STYLMAN MD TRUSTEE 1.0 X 0 0 0 MARY ELLEN CLYNE CHIEF EXECUTIVE OFFICER 55.0 X 554463 0 180484 CHRISTOPHER WINTERS CFO (EFF 6/10/13) 55.0 X 243965 0 10359 YASMIR BISAL VP FINANCE 50.0 X 268818 0 29553 LEA RODRIGUEZ VP PATIENT CARE SERVICES 50.0 X 264140 0 18467 JAMES ROLEK VP HUMAN RESOURCES 50.0 X 225208 0 24763 DIANE MARIE COLUZZI VP OUTCOMES MANAGEMENT 50.0 X 219979 0 10783 JANE KESSLER VP FOUNDATION 50.0 X 200251 0 24751 FRANK J MAZZARELLA MD VPMA 50.0 X 417434 0 25189 LINA SHIHABUDDIN MD MEDICAL DIRECTOR 50.0 X 325024 0 8527 FADI CHAABAN MD PHYSICIAN 50.0 X 197800 0 0 ROBERT BENEDETTI MD PATHOLOGIST 50.0 X 320217 0 32145 GITA PARIKH MD PSYCHIATRIST 50.0 X 238257 0 29889 ROLANDO HERNANDEZ SURGICAL TECHNICIAN 50.0 X 234994 0 27836 ELIE Y CHAKHTOURA MD MEDICAL DIRECTOR 50.0 X 229586 0 0 SENTHAMARAI GANDHI MD ADVISOR 50.0 X 222777 0 18069 4188519 1674318 477529 133 false true false SBC MANAGEMENT CORPORATION 95 OLD SHORT HILLS ROAD WEST ORANGE NJ 07052 MANAGEMENT 22753950 BARNABAS HEALTH MEDICAL GROUP PC 300 SECOND AVENUE LONG BRANCH NJ 07740 MEDICAL 2546439 FRESENIUS MANAGEMENT SERVICES INC 16343 COLLECTION CENTER DRIVE CHICAGO IL 60693 MEDICAL 1516186 BINSKY SNYDER LLC 281 CENTENNIAL AVENUE PISCATAWAY NJ 08854 BUILDING MAINTENANCE 1115022 HCSC COOPERATIVE INC 2171 28TH STREET SOUTH WEST ALLENTOWN PA 18103 LAUNDRY 1066117 48 X 209013 551158 760171 NET PATIENT SERVICE REVENUE 541900 256680650 256680650 OTHER HEALTHCARE RELATED REVENUE 541900 9732537 9732537 LABORATORY REVENUE 621500 60104 60104 266473291 317887 317887 0 0 102243 102243 0 102243 102243 28000 28000 28000 28000 0 0 0 DAY CARE 900099 463127 463127 PARKING 812930 362630 362630 TELEVISION 900099 88992 88992 132027 60000 72027 1046776 268728368 266473291 523127 971779 4962 4962 0 0 0 3275565 2948009 327556 0 97176316 87458685 9717631 3330035 2997031 333004 15699603 14129642 1569961 8102933 7292641 810292 22753950 20478555 2275395 403822 363440 40382 0 21687 19518 2169 0 0 1089747 980772 108975 729776 656798 72978 6335756 5702180 633576 1802013 1621812 180201 0 0 58408 52567 5841 0 30696 27626 3070 3225300 2902770 322530 0 8575199 7717679 857520 3141589 2827430 314159 MEDICAL SUPPLIES 37869843 34082859 3786984 0 PURCHASED SERVICES 12152411 10937170 1215241 PHYSICIAN SALARIES & FEES 11397898 10258108 1139790 REPAIRS AND MAINTENANCE 3164323 2847891 316432 5523783 4975600 548183 245865615 221283745 24581870 0 X 8973 9673 22804 17231 0 0 32945242 25799685 0 0 0 0 50137171 67906172 4214546 4280649 2122149 1800917 233720157 170957503 56330449 62762654 0 0 0 0 8136227 8736134 0 0 610514 1393947 154528075 172707062 25223939 24261000 0 0 989753 361010 0 0 0 0 0 0 1442480 1158362 0 0 106927330 103158777 134583502 128939149 X 19944573 43767913 0 0 0 0 19944573 43767913 154528075 172707062 X 22862753 490873 469714 X X false true X true true true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X false false false false false false false false true 21687 21687 false SCHEDULE C, PART II-B; QUESTION 1I A RELATED FOR-PROFIT ORGANIZATION PAID THREE INDEPENDENT OUTSIDE LOBBYING FIRMS TO PERFORM LOBBYING EFFORTS ON BEHALF OF BARNABAS HEALTH AND ITS AFFILIATES, INCLUDING THIS ORGANIZATION. THESE AMOUNTS CAN BE REVIEWED ON THE FORM 990 FILED BY BARNABAS HEALTH, INC.; THE TAX-EXEMPT PARENT OF BARNABAS HEALTH AND AFFILIATES. IN ADDITION, THE HOSPITAL IS A MEMBER OF THE NEW JERSEY HOSPITAL ASSOCIATION AND THE AMERICAN HOSPITAL ASSOCIATION WHICH BOTH ENGAGE IN LOBBYING EFFORTS ON BEHALF OF THEIR MEMBER HOSPITALS. A PORTION OF THE DUES PAID TO THESE ORGANIZATIONS HAS BEEN ALLOCATED TO LOBBYING ACTIVITES PERFORMED ON BEHALF OF THE ORGANIZATION. THIS ALLOCATION AMOUNTED TO $21,687 DURING 2013. 458886 458886 105207362 71867057 33340305 364585 294348 70237 124133696 96175997 27957699 3555628 2620101 935527 62762654 LIMITED USE ASSETS 567115 F BOND INDENTURE AGREEMENTS 0 F OTHER INVESTMENTS 63501 F SEI INVESTMENTS; LIMITED USE 6672518 F TAX-EXEMPT ORGANIZATION 1433000 F 8736134 0 DUE TO AFFILIATES; CURRENT 23091006 OTHER LIABILITIES; CURRENT 8586782 OTHER LIABILITIES; NON-CURRENT 687198 PARTY PAYORS; CURRENT 2020211 PARTY PAYORS; NON-CURRENT 2793869 DUE TO AFFILIATES; NON-CURRENT 62587717 (LEASING PROGRAM) 3391994 103158777 X SCHEDULE D, PART X THE ORGANIZATION IS AN AFFILIATE WITHIN BARNABAS HEALTH ("BH"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. BH ISSUES CONSOLIDATED AUDITED FINANCIAL STATEMENTS WHICH INCLUDE ALL RELATED ENTITIES; INCLUDING THIS ORGANIZATION. THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS ALSO CONTAIN CONSOLIDATING SCHEDULES ON AN ENTITY BY ENTITY BASIS. THE FOOTNOTE BELOW IS FROM BH'S 2013 CONSOLIDATED AUDITED FINANCIAL STATEMENTS AND REPORTS BH'S LIABILITY FOR UNCERTAIN TAX POSITIONS UNDER FIN 48 (ASC 740): THE CORPORATION DOES NOT HAVE ANY SIGNIFICANT UNCERTAIN TAX POSITIONS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012. true true X true X true X true true true false true true 8838 15908748 4649878 11258870 0.04580 40363 45578983 45261318 317665 0.00130 1710665 1710665 0.00700 49201 63198396 49911196 13287200 0.05410 16754 399940 399940 0.00160 62 495189 55302 439887 0.00180 17 6286 2796 3490 16833 901415 58098 843317 0.00340 66034 64099811 49969294 14130517 0.05750 false 14699000 1029961 83132191 76283459 6848732 X true true 1 1 CLARA MAASS MEDICAL CENTER ONE CLARA MAASS DRIVE BELLEVILLE NJ 07109 WWW.BARNABASHEALTH.ORG X X X CLARA MAASS MEDICAL CENTER 1 true X X X X X X X X X X 13 true false true X BARNABASHEALTH.ORG X X X X X X X X X false false true true 200. true 300. true X X X X X X X true true X X X X X true false X X X X true X false false SCHEDULE H, PART V, SECTION B, QUESTION 1J The COMMUNITY HEALTH NEEDS ASSESSMENT ("CHNA") included a comprehensive review of secondary data sources; new area estimates such as AFFORDABLE CARE ACT insurance impact and facility-specific and the facility's service area-specific utilization (e.g. ambulatory care sensitive condition admissions and ED visits) and other measures (e.g. re-admission rates). SCHEDULE H, PART V, SECTION B, QUESTION 3 The CHNA data was supplemented by meetings and discussions with the local health department where data was shared from their own needs assessments. In addition, input was derived from the county-wide task force which provided insight and expertise, leading to the identification of county-wide health priorities. Details including the county-wide task force members, community meeting attendees and process are contained in the CHNA. SCHEDULE H, PART V, SECTION B, QUESTION 4 NOT APPLICABLE. SCHEDULE H, PART V, SECTION B, QUESTION 5D Document was shared at coalition meeting and with other external meetings. SCHEDULE H, PART V, SECTION B, QUESTION 6I The facility, with limited resources, prioritized health needs identified and developed an implementation plan to address these priority health need areas. Facility strategic plan maps to improved community health and the CHNA implementation plan. The CHNA implementation plan includes resources, actions and goals (measurable). SCHEDULE H, PART V, SECTION B, QUESTION 7 As discussed above, the facility conducted a comprehensive assessment and a myriad of health needs were identified. Given limited resources, needs were prioritized with consideration of service array offered by the facility and ability to collaborate. SCHEDULE H, PART V, SECTION B, Q'S 10,11,12I,14G,16E,17E,18E,19C,19D,21&22 NOT APPLICABLE. SCHEDULE H, PART V, SECTION B, QUESTION 20D 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. 2 CLARA MAASS TRANSITIONAL CARE UNIT ONE CLARA MAAS DRIVE BELLEVILLE NJ 07109 LONG TERM CARE SUB-ACUTE FACILITY JERSEY CARE HOME HEALTH PROGRAM 80 MAIN STREET WEST ORANGE NJ 07052 HOME HEALTH AGENCY PART I, LINE 3C THE INCOME BASED CRITERIA USED TO DETERMINE ELIGIBILITY IS PER NEW JERSEY ADMINISTRATIVE CODE 10:52 SUB CHAPTERS 11, 12 AND 13, AND BASED UPON THE 2013 POVERTY GUIDELINES (DEPARTMENT OF HEALTH AND SENIOR SERVICES). FPG ARE INCLUDED IN THE CRITERIA FOR DETERMINING ELIGIBILITY FOR CHARITY AND DISCOUNTED CARE. SCHEDULE H, PART I; QUESTION 6A NOT APPLICABLE. SCHEDULE H, PART I; QUESTION 7G NO COSTS RELATING TO SUBSIDIZED HEALTHCARE SERVICES ARE ATTRIBUTABLE TO ANY PHYSICIAN CLINICS. SCHEDULE H, PART I, QUESTION 7 WORKSHEET 2 WAS USED FOR THE COST TO CHARGE RATIO. SCHEDULE H, PART II COMMUNITY BUILDING ACTIVITIES UNDERTAKEN BY THE FACILITY IMPROVE THE MEDICAL AND SOCIOECONOMIC WELL-BEING OF THE COMMUNITIES IN OUR CARE. THIS IS ACCOMPLISHED THROUGH A WIDE ARRAY OF ACTIVITIES AND SERVICES, INCLUDING, BUT NOT LIMITED, TO: - SERVICE ON STATE AND REGIONAL ADVOCACY COMMITTEES AND BOARDS, - VOLUNTEERISM WITH LOCAL COMMUNITY-BASED NON-PROFIT ADVOCACY GROUPS, - PARTICIPATION IN CONFERENCES AND OTHER EDUCATIONAL ACTIVITIES TO PROMOTE UNDERSTANDING OF THE CAUSES AND TREATMENT OF HEALTH CONCERNS, - THE PROVISION OF EDUCATIONAL MATERIALS AND SPONSORING HEALTH EDUCATION SEMINARS AND OUTREACH SESSIONS FOR ITS PATIENTS AND FOR COMMUNITY PROVIDERS [PRESENTATIONS ARE OFTEN PROVIDED BY PHYSICIANS, NURSES AND OTHER HEALTHCARE PROFESSIONALS], - PARTICIPATION IN COMMUNITY HEALTH FAIRS, - SERVING ON THE BOARDS OF MANY LOCAL NOT FOR-PROFIT ORGANIZATIONS AND PROVIDE OTHER FORMS OF SUPPORT (FUNDRAISING, ACTIVITY PARTICIPATION), AND - PROFESSIONAL EDUCATION PLEASE ALSO REFER TO FORM 990, SCHEDULE O, WHICH CONTAINS THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT AND SUMMARY OF ALL ENTITIES WHICH COMPRISE BARNABAS HEALTH. SCHEDULE H, PART III, SECTION A; QUESTION 1 HEALTHCARE FINANCIAL MANAGEMENT ASSOCIATION STATEMENT NO. 15 ("STATEMENT 15") PROVIDES GUIDELINES FOR DISTINGUISHING CHARITY CARE FROM BAD DEBT EXPENSE. STATEMENT 15 REQUIRES THAT CHARITY CARE IS NOT RECOGNIZED AS RECEIVABLE OR REVENUE IN THE FINANCIAL STATEMENTS. STATEMENT 15 FURTHER EXPLAINS THAT SELF-PAY PATIENTS THAT DO HAVE A REASONABLE LIKELIHOOD OF PAYMENT SHOULD BE REPORTED AS CHARITY CARE AND NOT BAD DEBT EXPENSE. THE HOSPITAL GENERALLY FOLLOWS THE GUIDELINES OUTLINED IN STATEMENT 15. IN ADDITION, THE HOSPITAL FOLLOWS THE STATE OF NEW JERSEY GUIDELINES IN DETERMINING CHARITY CARE ELIGIBILITY. IN CERTAIN INSTANCES, IT IS UNLIKELY THAT UNINSURED PATIENTS WILL PAY FOR THE SERVICES RENDERED, BUT THEY DO NOT QUALIFY FOR THE STATE'S CHARITY CARE PROGRAM BECAUSE OF LACK OF PATIENT COOPERATION OR OTHER REASONS. THE HOSPITAL PURSUES COLLECTION OF THESE AMOUNTS AND UNPAID BALANCES ARE REPORTED AS BAD DEBT EXPENSE. UNDER STATEMENT 15, THESE AMOUNTS WOULD BE RECORDED AS CHARITY CARE RATHER THAN BAD DEBT EXPENSE AND THIS IS THE RATIONALE FOR OUR RESPONSE: "NO". SCHEDULE H, PART III, SECTION A; QUESTIONS 2, 3 & 4 BAD DEBT EXPENSE WAS CALCULATED USING THE PROVIDERS' BAD DEBT EXPENSE FROM FINANCIAL STATEMENT, NET OF ACCOUNTS WRITTEN OFF AT CHARGES. BARNABAS HEALTH AND ITS AFFILIATES, INCLUDING ITS HOSPITALS AND SUBSIDIARIES, PREPARE AND ISSUE AUDITED CONSOLIDATED FINANCIAL STATEMENTS. BH'S ALLOWANCE FOR DOUBTFUL ACCOUNTS (BAD DEBT EXPENSE) METHODOLOGY AND CHARITY CARE POLICIES ARE CONSISTENTLY APPLIED ACROSS ALL HOSPITAL AFFILIATES. PLEASE REFER TO FOOTNOTES 2(D) AND 2(O) ON PAGES 8 AND 14; RESPECTIVELY, OF THE BARNABAS HEALTH, INC. AUDITED CONSOLIDATED FINANCIAL STATEMENTS ATTACHED TO THIS FORM 990. CHARITY CARE AND COMMUNITY BENEFIT IN ACCORDANCE WITH ITS MISSION AND PHILOSOPHY, BARNABAS HEALTH'S HOSPITALS COMMIT SUBSTANTIAL RESOURCES TO BOTH THE INDIGENT POPULATION AND THE BROADER COMMUNITY. THE CORPORATION'S CHARITY CARE POLICY IS TO PROVIDE CARE WITHOUT REGARD TO THE PATIENT'S ABILITY TO PAY FOR SERVICES RENDERED. TO THE EXTENT THAT PATIENTS DO NOT HAVE THE ABILITY TO PAY, SERVICES RENDERED TO THOSE PATIENTS ARE REPORTED AS CHARITY CARE. THE CORPORATION'S HOSPITALS AND AFFILIATES ALSO PROVIDE OTHER BENEFITS THROUGH A BROAD RANGE OF COMMUNITY SERVICE PROGRAMS AND CHARITABLE ACTIVITIES. THE AMOUNT OF CHARITY CARE, COMMUNITY SERVICE PROGRAMS, AND CHARITABLE ACTIVITIES, AT COST, PROVIDED TO THE INDIGENT POPULATION AND BROADER COMMUNITY FOR THE YEARS ENDED DECEMBER 31 IS AS FOLLOWS: 2013 2012 -------- ------- (IN THOUSANDS) COST OF CHARITY CARE AND COMMUNITY BENEFIT PROGRAMS: - NET COST OF CHARITY CARE PROVIDED $112,723 $110,212 - UNPAID COST OF PUBLIC PROGRAMS, MEDICAID AND OTHER MEANS TESTED PROGRAMS $45,530 $43,476 OTHER PROGRAMS: - CASH AND IN-KIND DONATIONS $ 2,733 $ 2,754 - EDUCATION AND RESEARCH $48,067 $48,390 - SUBSIDIZED DEPARTMENTS $ 6,246 $ 4,165 - OTHER COMMUNITY BENEFIT $ 2,602 $ 2,986 THE CORPORATION'S HOSPITALS UTILIZE A COST TO CHARGE RATIO METHODOLOGY TO CONVERT CHARITY CARE TO COST. THE COST TO CHARGE RATIO IS CALCULATED UTILIZING THE CORPORATION'S COST ACCOUNTING SYSTEM. THE STATE OF NEW JERSEY'S REGULATIONS PROVIDE FOR THE DISTRIBUTION OF FUNDS FROM A CHARITY CARE FUND, WHICH IS INTENDED TO PARTIALLY OFFSET THE COST OF SERVICES PROVIDED TO THE UNINSURED, AS WELL AS A HOSPITAL RELIEF FUND, WHICH IS INTENDED TO PRIMARILY OFFSET THE COST OF SERVICES PROVIDED FOR CERTAIN DIAGNOSIS, INCLUDING MENTAL HEALTH, SUBSTANCE ABUSE, MATERNITY AND COMPLEX NEONATAL CASES, TUBERCULOSIS, AND AIDS. THESE FUNDS ARE DISTRIBUTED TO THE CORPORATION'S HOSPITALS BASED ON THEIR LEVEL OF CHARITY CARE AND UNITS OF SERVICE IN RELATION TO ALL OTHER NEW JERSEY HOSPITALS. FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012, BARNABAS HEALTH'S HOSPITALS RECEIVED DISTRIBUTIONS FROM BOTH FUNDS TOTALING $90,889 AND $90,773, RESPECTIVELY. THE RATIONALE FOR INCLUDING A PORTION OF BAD DEBT AMOUNTS AS COMMUNITY BENEFIT IS DISCUSSED IN RESPONSE TO PART III, LINE 8 BELOW. SCHEDULE H, PART III, SECTION B; QUESTION 8 MEDICARE COSTS WERE DERIVED FROM THE 2013 MEDICARE COST REPORT. MEDICARE UNDERPAYMENTS AND BAD DEBT ARE COMMUNITY BENEFIT AND ASSOCIATED COSTS ARE INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. THE ORGANIZATION FEELS THAT MEDICARE UNDERPAYMENTS (SHORTFALL) AND BAD DEBT ARE COMMUNITY BENEFIT AND ASSOCIATED COSTS ARE INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. AS OUTLINED MORE FULLY BELOW THE ORGANIZATION BELIEVES THAT THESE SERVICES AND RELATED COSTS PROMOTE THE HEALTH OF THE COMMUNITY AS A WHOLE AND ARE RENDERED IN CONJUNCTION WITH THE ORGANIZATION'S CHARITABLE TAX-EXEMPT PURPOSES AND MISSION IN PROVIDING MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUAL'S IN A NON-DISCRIMINATORY MANNER WITHOUT REGARD TO RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY AND CONSISTENT WITH THE COMMUNITY BENEFIT STANDARD PROMULGATED BY THE IRS. THE COMMUNITY BENEFIT STANDARD IS THE CURRENT STANDARD FOR A HOSPITAL FOR RECOGNITION AS A TAX-EXEMPT AND CHARITABLE ORGANIZATION UNDER INTERNAL REVENUE CODE ("IRC") 501(C)(3). THE ORGANIZATION IS RECOGNIZED AS A TAX-EXEMPT ENTITY AND CHARITABLE ORGANIZATION UNDER 501(C)(3) OF THE IRC. ALTHOUGH THERE IS NO DEFINITION IN THE TAX CODE FOR THE TERM "CHARITABLE" A REGULATION PROMULGATED BY THE DEPARTMENT OF THE TREASURY PROVIDES SOME GUIDANCE AND STATES THAT "[T]HE TERM CHARITABLE IS USED IN 501(C)(3) IN ITS GENERALLY ACCEPTED LEGAL SENSE," AND PROVIDES EXAMPLES OF CHARITABLE PURPOSES, INCLUDING THE RELIEF OF THE POOR OR UNPRIVILEGED; THE PROMOTION OF SOCIAL WELFARE; AND THE ADVANCEMENT OF EDUCATION, RELIGION, AND SCIENCE. NOTE IT DOES NOT EXPLICITLY ADDRESS THE ACTIVITIES OF HOSPITALS. IN THE ABSENCE OF EXPLICIT STATUTORY OR REGULATORY REQUIREMENTS APPLYING THE TERM "CHARITABLE" TO HOSPITALS, IT HAS BEEN LEFT TO THE IRS TO DETERMINE THE CRITERIA HOSPITALS MUST MEET TO QUALIFY AS IRC 501(C)(3) CHARITABLE ORGANIZATIONS. THE ORIGINAL STANDARD WAS KNOWN AS THE CHARITY CARE STANDARD. THIS STANDARD WAS REPLACED BY THE IRS WITH THE COMMUNITY BENEFIT STANDARD WHICH IS THE CURRENT STANDARD. CHARITY CARE STANDARD IN 1956, THE IRS ISSUED REVENUE RULING 56-185, WHICH ADDRESSED THE REQUIREMENTS HOSPITALS NEEDED TO MEET IN ORDER TO QUALIFY FOR IRC 501(C)(3) STATUS. ONE OF THESE REQUIREMENTS IS KNOWN AS THE "CHARITY CARE STANDARD." UNDER THE STANDARD, A HOSPITAL HAD TO PROVIDE, TO THE EXTENT OF ITS FINANCIAL ABILITY, FREE OR REDUCED-COST CARE TO PATIENTS UNABLE TO PAY FOR IT. A HOSPITAL THAT EXPECTED FULL PAYMENT DID NOT, ACCORDING TO THE RULING, PROVIDE CHARITY CARE BASED ON THE FACT THAT SOME PATIENTS ULTIMATELY FAILED TO PAY. THE RULING EMPHASIZED THAT A LOW LEVEL OF CHARITY CARE DID NOT NECESSARILY MEAN THAT A HOSPITAL HAD FAILED TO MEET THE REQUIREMENT SINCE THAT LEVEL COULD REFLECT ITS FINANCIAL ABILITY TO PROVIDE SUCH CARE. THE RULING ALSO NOTED THAT PUBLICLY SUPPORTED COMMUNITY HOSPITALS WOULD NORMALLY QUALIFY AS CHARITABLE ORGANIZATIONS BECAUSE THEY SERVE THE ENTIRE COMMUNITY, AND A LOW LEVEL OF CHARITY CARE WOULD NOT AFFECT A HOSPITAL'S EXEMPT STATUS IF IT WAS DUE TO THE SURROUNDING COMMUNITY'S LACK OF CHARITABLE DEMANDS. COMMUNITY BENEFIT STANDARD IN 1969, THE IRS ISSUED REVENUE RULING 69-545, WHICH "REMOVE[D]" FROM REVENUE RULING 56-185 "THE REQUIREMENTS RELATING TO CARING FOR PATIENTS WITHOUT CHARGE OR AT RATES BELOW COST." UNDER THE STANDARD DEVELOPED IN REVENUE RULING 69-545, WHICH IS KNOWN AS THE "COMMUNITY BENEFIT STANDARD," HOSPITALS ARE JUDGED ON WHETHER THEY PROMOTE THE HEALTH OF A BROAD CLASS OF INDIVIDUALS IN THE COMMUNITY. THE RULING INVOLVED A HOSPITAL THAT ONLY ADMITTED INDIVIDUALS WHO COULD PAY FOR THE SERVICES (BY THEMSELVES, PRIVATE INSURANCE, OR PUBLIC PROGRAMS SUCH AS MEDICARE), BUT OPERATED A FULL-TIME EMERGENCY ROOM THAT WAS OPEN TO EVERYONE. THE IRS RULED THAT THE HOSPITAL QUALIFIED AS A CHARITABLE ORGANIZATION BECAUSE IT PROMOTED THE HEALTH OF PEOPLE IN ITS COMMUNITY. THE IRS REASONED THAT BECAUSE THE PROMOTION OF HEALTH WAS A CHARITABLE PURPOSE ACCORDING TO THE GENERAL LAW OF CHARITY, IT FELL WITHIN THE "GENERALLY ACCEPTED LEGAL SENSE" OF THE TERM "CHARITABLE," AS REQUIRED BY TREAS. REG. 1.501(C)(3)-1(D)(2). THE IRS RULING STATED THAT THE PROMOTION OF HEALTH, LIKE THE RELIEF OF POVERTY AND THE ADVANCEMENT OF EDUCATION AND RELIGION, IS ONE OF THE PURPOSES IN THE GENERAL LAW OF CHARITY THAT IS DEEMED BENEFICIAL TO THE COMMUNITY AS A WHOLE EVEN THOUGH THE CLASS OF BENEFICIARIES ELIGIBLE TO RECEIVE A DIRECT BENEFIT FROM ITS ACTIVITIES DOES NOT INCLUDE ALL MEMBERS OF THE COMMUNITY, SUCH AS INDIGENT MEMBERS OF THE COMMUNITY, PROVIDED THAT THE CLASS IS NOT SO SMALL THAT ITS RELIEF IS NOT OF BENEFIT TO THE COMMUNITY. THE IRS CONCLUDED THAT THE HOSPITAL WAS "PROMOTING THE HEALTH OF A CLASS OF PERSONS THAT IS BROAD ENOUGH TO BENEFIT THE COMMUNITY" BECAUSE ITS EMERGENCY ROOM WAS OPEN TO ALL AND IT PROVIDED CARE TO EVERYONE WHO COULD PAY, WHETHER DIRECTLY OR THROUGH THIRD-PARTY REIMBURSEMENT. OTHER CHARACTERISTICS OF THE HOSPITAL THAT THE IRS HIGHLIGHTED INCLUDED THE FOLLOWING: ITS SURPLUS FUNDS WERE USED TO IMPROVE PATIENT CARE, EXPAND HOSPITAL FACILITIES, AND ADVANCE MEDICAL TRAINING, EDUCATION, AND RESEARCH; IT WAS CONTROLLED BY A BOARD OF TRUSTEES THAT CONSISTED OF INDEPENDENT CIVIC LEADERS; AND HOSPITAL MEDICAL STAFF PRIVILEGES WERE AVAILABLE TO ALL QUALIFIED PHYSICIANS. MEDICARE UNDERPAYMENTS AND BAD DEBT ARE COMMUNITY BENEFIT AND ASSOCIATED COSTS ARE INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. THE AMERICAN HOSPITAL ASSOCIATION ("AHA") FEELS THAT MEDICARE UNDERPAYMENTS (SHORTFALL) AND BAD DEBT ARE COMMUNITY BENEFIT AND THUS INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. THIS ORGANIZATION AGREES WITH THE AHA POSITION. AS OUTLINED IN THE AHA LETTER TO THE IRS DATED AUGUST 21, 2007 WITH RESPECT TO THE FIRST PUBLISHED DRAFT OF THE NEW FORM 990 AND SCHEDULE H, THE AHA FELT THAT THE IRS SHOULD INCORPORATE THE FULL VALUE OF THE COMMUNITY BENEFIT THAT HOSPITALS PROVIDE BY COUNTING MEDICARE UNDERPAYMENTS (SHORTFALL) AS QUANTIFIABLE COMMUNITY BENEFIT FOR THE FOLLOWING REASONS: - PROVIDING CARE FOR THE ELDERLY AND SERVING MEDICARE PATIENTS IS AN ESSENTIAL PART OF THE COMMUNITY BENEFIT STANDARD. - MEDICARE, LIKE MEDICAID, DOES NOT PAY THE FULL COST OF CARE. RECENTLY, MEDICARE REIMBURSES HOSPITALS ONLY 92 CENTS FOR EVERY DOLLAR THEY SPEND TO TAKE CARE OF MEDICARE PATIENTS. THE MEDICARE PAYMENT ADVISORY COMMISSION ("MEDPAC") IN ITS MARCH 2007 REPORT TO CONGRESS CAUTIONED THAT UNDERPAYMENT WILL GET EVEN WORSE, WITH MARGINS REACHING A 10-YEAR LOW AT NEGATIVE 5.4 PERCENT. - MANY MEDICARE BENEFICIARIES, LIKE THEIR MEDICAID COUNTERPARTS, ARE POOR. MORE THAN 46 PERCENT OF MEDICARE SPENDING IS FOR BENEFICIARIES WHOSE INCOME IS BELOW 200 PERCENT OF THE FEDERAL POVERTY LEVEL. MANY OF THOSE MEDICARE BENEFICIARIES ARE ALSO ELIGIBLE FOR MEDICAID -- SO CALLED "DUAL ELIGIBLES." THERE IS EVERY COMPELLING PUBLIC POLICY REASON TO TREAT MEDICARE AND MEDICAID UNDERPAYMENTS SIMILARLY FOR PURPOSES OF A HOSPITAL'S COMMUNITY BENEFIT AND INCLUDE THESE COSTS ON FORM 990, SCHEDULE H, PART I. MEDICARE UNDERPAYMENT MUST BE SHOULDERED BY THE HOSPITAL IN ORDER TO CONTINUE TREATING THE COMMUNITY'S ELDERLY AND POOR. THESE UNDERPAYMENTS REPRESENT A REAL COST OF SERVING THE COMMUNITY AND SHOULD COUNT AS A QUANTIFIABLE COMMUNITY BENEFIT. BOTH THE AHA AND THIS ORGANIZATION ALSO FEEL THAT PATIENT BAD DEBT IS A COMMUNITY BENEFIT AND THUS INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. LIKE MEDICARE UNDERPAYMENT (SHORTFALLS), THERE ALSO ARE COMPELLING REASONS THAT PATIENT BAD DEBT SHOULD BE COUNTED AS QUANTIFIABLE COMMUNITY BENEFIT AS FOLLOWS: - A SIGNIFICANT MAJORITY OF BAD DEBT IS ATTRIBUTABLE TO LOW-INCOME PATIENTS, WHO, FOR MANY REASONS, DECLINE TO COMPLETE THE FORMS REQUIRED TO ESTABLISH ELIGIBILITY FOR HOSPITALS' CHARITY CARE OR FINANCIAL ASSISTANCE PROGRAMS. A 2006 CONGRESSIONAL BUDGET OFFICE ("CBO") REPORT, NONPROFIT HOSPITALS AND THE PROVISION OF COMMUNITY BENEFITS, CITED TWO STUDIES INDICATING THAT "THE GREAT MAJORITY OF BAD DEBT WAS ATTRIBUTABLE TO PATIENTS WITH INCOMES BELOW 200% OF THE FEDERAL POVERTY LINE." - THE REPORT ALSO NOTED THAT A SUBSTANTIAL PORTION OF BAD DEBT IS PENDING CHARITY CARE. UNLIKE BAD DEBT IN OTHER INDUSTRIES, HOSPITAL BAD DEBT IS COMPLICATED BY THE FACT THAT HOSPITALS FOLLOW THEIR MISSION TO THE COMMUNITY AND TREAT EVERY PATIENT THAT COMES THROUGH THEIR EMERGENCY DEPARTMENT, REGARDLESS OF ABILITY TO PAY. PATIENTS WHO HAVE OUTSTANDING BILLS ARE NOT TURNED AWAY, UNLIKE OTHER INDUSTRIES. BAD DEBT IS FURTHER COMPLICATED BY THE AUDITING INDUSTRY'S STANDARDS ON REPORTING CHARITY CARE. MANY PATIENTS CANNOT OR DO NOT PROVIDE THE NECESSARY, EXTENSIVE DOCUMENTATION REQUIRED TO BE DEEMED CHARITY CARE BY AUDITORS. AS A RESULT, ROUGHLY 40% OF BAD DEBT IS PENDING CHARITY CARE. - THE CBO CONCLUDED THAT ITS FINDINGS "SUPPORT THE VALIDITY OF THE USE OF UNCOMPENSATED CARE [BAD DEBT AND CHARITY CARE] AS A MEASURE OF COMMUNITY BENEFITS" ASSUMING THE FINDINGS ARE GENERALIZABLE NATIONWIDE; THE EXPE SCHEDULE H, PART III, SECTION B; QUESTION 9B ACCOUNTS CONSIDERED TO BE CHARITY CARE ARE NOT INCLUDED IN THE BAD DEBT EXPENSE, BUT RATHER, ACCOUNTED FOR AS AN ALLOWANCE. IT IS THE POLICY OF BARNABAS HEALTH ("BH") BUSINESS OFFICE, AND ALL ITS HOSPITAL AFFILIATES, TO TREAT ALL PATIENTS EQUALLY REGARDLESS OF INSURANCE AND THEIR ABILITY TO PAY. FOR ACCOUNTS DETERMINED TO BE "SELF-PAY" AND/OR ACCOUNTS WITH BALANCE AFTER PRIMARY INSURANCE PAYMENTS, THE COLLECTION POLICY REQUIRES: SENDING THREE STATEMENTS, A MINIMUM OF ONE PRE-COLLECTION LETTER/TELEPHONE CONTACT FOR ANY ACCOUNT OVER $5,000.00 OR AT THE DISCRETION OF THE ACCOUNT REPRESENTATIVE AND/OR SUPERVISOR. THE FACILITY ALSO HAS A CHARITY CARE ACCESS POLICY TO ASSURE PATIENTS ARE PROVIDED WITH CHARITY CARE ASSISTANCE DETERMINED BY STATE AND FEDERAL REGULATIONS. IT IS THE POLICY TO INFORM ALL PATIENTS DEEMED SELF-PAY OF THE APPROPRIATE ASSISTANCE PROGRAMS AVAILABLE. PATIENTS APPLYING FOR CHARITY CARE ASSISTANCE WILL BE FINANCIALLY SCREENED BY A RESOURCE ADVISOR TO DETERMINE ELIGIBILITY ACCORDING TO STATE AND FEDERAL GUIDELINES AND WILL BE INFORMED OF DOCUMENTATION NEED TO COMPLETE A CHARITY CARE APPLICATION. PATIENTS NOT ELIGIBLE FOR CHARITY CARE WILL BE FINANCIALLY COUNSELED FOR ALL OTHER OPTIONS. QUALIFIED PATIENTS WILL BE REFERRED TO ALL APPROPRIATE AGENCIES OR PROGRAMS TO MEET OTHER FINANCIAL NEEDS. AT THE TIME OF THE PATIENT VISIT AND PART OF THE REGISTRATION PROCESS AT THE FACILITY, THE FOLLOWING OPTIONS ARE MADE AVAILABLE TO PATIENTS: - FINANCIAL COUNSELING FOR POSSIBLE ELIGIBILITY FOR MEDICAL ASSISTANCE INCLUDING MEDICAID AND SSI; - FINANCIAL COUNSELING FOR POSSIBLE ELIGIBILITY FOR THE NEW JERSEY HOSPITAL CARE PAYMENT ASSISTANCE PROGRAM; AND, - FINANCIAL ARRANGEMENTS INCLUDING: 1. CASH/CREDIT CARD (AMERICAN EXPRESS, DISCOVER, VISA, MASTERCARD), 2. LOW INTEREST LOAN PROGRAM, OR 3. FLEXIBLE PAYMENT PLANS. IN ADDITION TO THE ABOVE OPTIONS, THE FACILITY HAS ESTABLISHED A SELF-PAY ASSISTANCE PROGRAM FOR OUR UNINSURED PATIENTS THAT DO NOT QUALIFY FOR MEDICAID OR THE NEW JERSEY HOSPITAL CARE PAYMENT ASSISTANCE PROGRAM. THE SELF-PAY ASSISTANCE PROGRAM RATES ARE REFLECTIVE OF MEDICARE REIMBURSEMENT, AS REFERRED BY THE STATE OF NEW JERSEY. SCHEDULE H, PART VI; QUESTION 2 IN ADDITION TO THE INTERNAL REVENUE CODE 501(R) COMMUNITY HEALTH NEEDS ASSESSMENT INFORMATION OUTLINED IN FORM 990, SCHEDULE H, PART V, SECTION B, BARNABAS HEALTH CONDUCTS A REVIEW OF KEY MARKET FACTORS FOR CMMC ANNUALLY WHICH INCLUDES: A REVIEW OF HEALTHCARE UTILIZATION OF ITS SERVICE AREA POPULATION BY SERVICES (CARDIOLOGY, OBSTETRICS, GYNECOLOGY, UROLOGY, ETC.) FOR DETERMINING INCREASED OR DECREASED HEALTH NEEDS; HEALTHCARE SERVICE ESTIMATES FOR INPATIENT AND OUTPATIENT SERVICES; ASSESSMENT OF LOCAL DEMOGRAPHIC AND SOCIOECONOMIC INFORMATION; COMMUNITY HEALTH STATUS DATA AND, A REVIEW OF HEALTH STATUS/NEEDS ASSESSMENTS AND STUDIES CONDUCTED BY EXTERNAL PARTIES (HEALTH RESEARCH AND EDUCATION TRUST OF NEW JERSEY, KIDS COUNT, COUNTY HEALTH RANKINGS, SEER CANCER INCIDENCE AND MORTALITY, TO NAME A FEW). CMMC CONDUCTS AN EXTENSIVE SERVICE AREA POPULATION PHYSICIAN NEED (BY PRIMARY CARE AND PHYSICIAN SPECIALTY) EVERY THREE TO FIVE YEARS. SPECIFIC SPECIALTY NEEDS ARE CONDUCTED FOR IDENTIFIED GAPS IN SERVICE. THESE REVIEWS INFORM MEDICAL STAFF DEVELOPMENT AT THE MEDICAL CENTER AND ASSURE RESPONSIVENESS TO IDENTIFIED COMMUNITY NEEDS. CMMC ALSO PARTICIPATES AND WORKS WITH LOCAL ORGANIZATION ON HEALTH ISSUES, DISCUSSING AND PRIORITIZING NEEDS. THIS INCLUDES A QUARTERLY REGIONAL COMMUNITY ADVISORY BOARD FOR THE GREATER NEWARK AREA HOSTED BY BARNABAS HEALTH WITH REPRESENTATIVES FROM LOCAL POLITICIANS, LOCAL COMMUNITY HEALTH CENTERS, EMERGENCY HEALTH PROVIDERS AND OTHER COMMUNITY LEADERS. ANOTHER COLLABORATIVE ORGANIZATION IS THE GREATER NEWARK HEALTH CARE COALITION, WHICH INCLUDES EXECUTIVE LEADERSHIP OF HOSPITALS AND HEALTH ORGANIZATIONS IN THE GREATER NEWARK AREA. THIS COALITION MEETS MONTHLY WITH THE MISSION TO REDUCE HEALTH DISPARITIES AND TO IMPROVE HEALTH. CMMC ALSO WORKS WITH ESSEX COUNTY HEALTH DEPARTMENT TO PLAN AND IMPLEMENT A LOCAL NEEDS ASSESSMENT/HEALTH STATUS APPROXIMATELY EVERY FIVE YEARS. SCHEDULE H, PART VI; QUESTION 3 CHARITY CARE SIGNAGE IS POSTED IN ALL PATIENT REGISTRATION AREAS IN ENGLISH AND SPANISH. CHARITY CARE NOTICE OF FINANCIAL ASSISTANCE IS PROVIDED TO PATIENTS WITH THEIR GENERAL CONSENT. PATIENTS ARE REFERRED TO A FINANCIAL COUNSELOR IF THEY REQUIRE ASSISTANCE. LETTERS ARE MAILED TO SELF-PAY PATIENTS ADVISING THEM OF FINANCIAL ASSISTANCE PROGRAMS. SCHEDULE H, PART VI; QUESTION 4 CMMC IS LOCATED IN THE TOWN OF BELLEVILLE, ESSEX COUNTY. CMMC SERVES A BROAD RANGE OF COMMUNITIES IN URBAN AND SUBURBAN SETTINGS WITH CULTURALLY AND ETHNICALLY DIVERSE POPULATIONS. CMMC'S SERVICE AREA EXTENDS TO NEIGHBORING HUDSON, PASSAIC AND BERGEN COUNTIES. CMMC'S SERVICE AREA INCLUDES BELLEVILLE AND THE NORTH WARD AND IRONBOUND SECTION OF NEWARK, WHICH CONTAINS A LARGE MIX OF LATINO AND ITALIAN-AMERICAN POPULATIONS. AS A HEALTHCARE PROVIDER TO THE GREATER NEWARK COMMUNITIES, NEW JERSEY'S LARGEST AND SECOND-MOST DIVERSE CITY, CMMC SERVES MORE THAN 62% MINORITY POPULATIONS AND NEARLY 22% OF ITS PATIENTS ARE OF UNDERINSURED AND UNINSURED PAYOR CATEGORIES. MEDICARE REPRESENTS THE PAYOR CLASSIFICATION OF AN ADDITIONAL 36% OF PATIENTS. SCHEDULE H, PART VI; QUESTION 5 COMMUNITY BUILDING ACTIVITIES UNDERTAKEN BY CMMC 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. CMMC 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 WHO RESIDE IN THE COMMUNITY. HOSPITAL STAFF MEMBERS SERVE ON THE BOARDS OF MANY LOCAL NOT-FOR-PROFIT ORGANIZATIONS OR PROVIDE OTHER FORMS OF SUPPORT SUCH AS FUNDRAISING, ACTIVITY PARTICIPATION AND PROMOTION OF THE CHARITABLE EVENTS AND MISSION. ALL QUALIFIED PHYSICIANS ARE EXTENDED PRIVILEGES. DIVERSITY IS WELCOMED AND ENCOURAGED FOR RECRUITMENT OF TRUSTEES, PHYSICIANS AND STAFF. UNDER THE DIRECTIVE OF THE SYSTEM'S FINANCE OFFICE, SURPLUS FUNDS ARE UTILIZED FOR CAPITAL PROJECTS TO IMPROVE SERVICES, TO PURCHASE EQUIPMENT, OR TO ADVANCE MEDICAL CARE, PROGRAMS AND ACTIVITIES. ALL OF THESE PURPOSES FOR EXPENDITURE OF SURPLUS FUNDS, IN TURN, BENEFIT THE COMMUNITY. PLEASE ALSO REFER TO FORM 990, SCHEDULE O, WHICH CONTAINS THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT AND PROVIDES A SUMMARY OF ENTITIES COMPRISING BARNABAS HEALTH. SCHEDULE H, PART VI; QUESTION 6 CMMC IS AN AFFILIATE OF BARNABAS HEALTH ("BH"). ALL AFFILIATES ARE COMMITTED TO ENHANCING THE OVERALL HEALTH STATUS OF THE COMMUNITY BY PROVIDING THE HIGHEST QUALITY HEALTHCARE AND RELATED SERVICES. BH STRIVES TO EXCEED THE PATIENTS' EXPECTATIONS BY EMPHASIZING COMMITMENT, COMPETENCE, COLLABORATION, COMMUNICATION, AND COMPASSION. BH SETS OVERALL POLICY REGARDING BILLING AND COLLECTIONS AND THE FACILITY RESPONSES PROVIDED FOR PART I, PART II, AND PART III ARE REFLECTIVE OF THAT POLICY. CMMC'S SOLE CORPORATE MEMBER IS BARNABAS HEALTH, INC. ("BH"), A TAX-EXEMPT NEW JERSEY NON-PROFIT PARENT CORPORATION WHICH CONTROLS A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM CONSISTING OF A GROUP OF AFFILIATED HEALTHCARE ORGANIZATIONS. THE INTEGRATED SYSTEM OF HEALTHCARE PROVIDERS THROUGHOUT THE STATE OF NEW JERSEY PROVIDES SUBSTANTIAL COMMUNITY BENEFIT. THE SOLE MEMBER OR STOCKHOLDER OF EACH ENTITY IS EITHER BH OR ANOTHER BH AFFILIATE CONTROLLED OR OWNED BY BH. BARNABAS HEALTH, 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). AS THE PARENT ORGANIZATION OF THE LARGEST TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM IN NEW JERSEY, BARNABAS HEALTH, INC. STRIVES TO CONTINUALLY DEVELOP AND OPERATE A MULTI-HOSPITAL HEALTH SYSTEM WHICH PROVIDES SUBSTANTIAL COMMUNITY BENEFIT THROUGH THE PROVISION OF A COMPREHENSIVE SPECTRUM OF HEALTHCARE AND PREVENTION SERVICES TO THE RESIDENTS OF NEW JERSEY AND SURROUNDING COMMUNITIES. BARNABAS HEALTH, INC. ENSURES THAT ITS SYSTEM PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGINS OR ABILITY TO PAY. OUTLINED BELOW IS A SUMMARY OF THE ENTITIES WHICH COMPRISE BARNABAS HEALTH. ACTIVE HOSPITALS INCLUDE CLARA MAASS MEDICAL CENTER, COMMUNITY MEDICAL CENTER, KIMBALL MEDICAL CENTER, MONMOUTH MEDICAL CENTER, NEWARK BETH ISRAEL MEDICAL CENTER, SAINT BARNABAS BEHAVIORAL HEALTH CENTER, INC., AND SAINT BARNABAS MEDICAL CENTER. EACH OF THESE HOSPITALS OPERATES CONSISTENTLY WITH THE FOLLOWING CRITERIA OUTLINED IN IRS REVENUE RULING 69-545: 1. EACH PROVIDE MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF ABILITY TO PAY, INCLUDING CHARITY CARE, SELF-PAY, MEDICARE AND MEDICAID PATIENTS; 2. EACH ACUTE CARE HOSPITAL OPERATES AN ACTIVE EMERGENCY DEPARTMENT FOR ALL PERSONS, WHICH IS OPEN 24 HOURS A DAY, 7 DAYS A WEEK, 365 DAYS PER YEAR; 3. EACH MAINTAINS AN OPEN MEDICAL STAFF, WITH PRIVILEGES AVAILABLE TO ALL QUALIFIED PHYSICIANS; 4. CONTROL OF EACH RESTS WITH ITS BOARD OF TRUSTEES AND THE BOARD OF TRUSTEES OF BARNABAS HEALTH, 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. THE BARNABAS HEALTH ENTITIES ARE AS FOLLOWS: CLARA MAASS MEDICAL CENTER ("CMMC") IS A 469-BED NON-PROFIT ACUTE CARE MEDICAL CENTER LOCATED IN BELLEVILLE, ESSEX COUNTY, NEW JERSEY. CMMC IS RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS AN INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, CMMC PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NONDISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. MOREOVER, CMMC OPERATES CONSISTENTLY WITH THE CRITERIA OUTLINED IN IRS REVENUE RULING 69-545. COMMUNITY MEDICAL CENTER, INC. ("CMC") IS A 592-BED NON-PROFIT HOSPITAL LOCATED IN TOMS RIVER, OCEAN COUNTY, NEW JERSEY. CMC IS RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS AN INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, CMC 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, CMC OPERATES CONSISTENTLY WITH THE CRITERIA OUTLINED IN IRS REVENUE RULING 69-545. KIMBALL MEDICAL CENTER, INC. ("KMC") IS A 330-BED NON-PROFIT MEDICAL CENTER LOCATED IN LAKEWOOD, OCEAN COUNTY, NEW JERSEY. KMC IS RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS AN INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, KMC 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, KMC OPERATES CONSISTENTLY WITH THE CRITERIA OUTLINED IN IRS REVENUE RULING 69-545. MONMOUTH MEDICAL CENTER ("MMC") IS A 513-BED NON-PROFIT COMMUNITY TEACHING HOSPITAL LOCATED IN LONG BRANCH, MONMOUTH COUNTY, NEW JERSEY. MMC IS RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS AN INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, MMC 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, MMC OPERATES CONSISTENTLY WITH THE CRITERIA OUTLINED IN IRS REVENUE RULING 69-545. NEWARK BETH ISRAEL MEDICAL CENTER ("NBIMC") IS A 665-BED NON-PROFIT, FULLY ACCREDITED REGIONAL CARE TEACHING HOSPITAL LOCATED IN NEWARK, ESSEX COUNTY, NEW JERSEY. NBIMC IS RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS AN INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, NBIMC PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NONDISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. MOREOVER, NBIMC OPERATES CONSISTENTLY WITH THE CRITERIA OUTLINED IN IRS REVENUE RULING 69-545. SAINT BARNABAS BEHAVIORAL HEALTH CENTER, INC., D/B/A BARNABAS HEALTH BEHAVIORAL HEALTH CENTER, IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3). THE ORGANIZATION PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NONDISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. SAINT BARNABAS BEHAVIORAL HEALTH CENTER (WITH KIMBALL BEHAVIORAL HEALTH SERVICES) CONSTITUTES A FREESTANDING 100-BED ACUTE CARE PSYCHIATRIC FACILITY IN OCEAN COUNTY, NEW JERSEY. THE ORGANIZATION PROVIDES INPATIENT, PARTIAL HOSPITALIZATION, AND INTENSIVE OUTPATIENT PROGRAMS FOR ADULTS DIAGNOSED WITH PSYCHIATRIC AND DUAL DISORDERS. BARNABAS HEALTH BEHAVIORAL HEALTH CENTER IS ACCREDITED BY THE JOINT COMMISSION ON ACCREDITATION FOR HEALTHCARE ORGANIZATIONS. SAINT BARNABAS MEDICAL CENTER ("SBMC") IS NEW JERSEY'S OLDEST NON-PROFIT, NON-SECTARIAN ACUTE CARE HOSPITAL, LOCATED IN LIVINGSTON, ESSEX COUNTY, NEW JERSEY. WITH 645 LICENSED BEDS, SBMC IS RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS AN INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, SBMC 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, SBMC OPERATES CONSISTENTLY WITH THE CRITERIA OUTLINED IN IRS REVENUE RULING 69-545. CENTER STATE HEALTH GROUP, 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)(3). THE ORGANIZATION IS A SUPPORTING ORGANIZATION OF BARNABAS HEALTH, INC. AND THE BARNABAS HEALTH SYSTEM HOSPITALS AND MEDICAL CENTERS. IT ACTS AS THE CENTRALIZED BUSINESS OFFICE FOR BARNABAS HEALTH AND ASSISTS THEM WITH BILLING AND COLLECTING OF REVENUE FOR MEDICAL SERVICES PROVIDED BY THESE ORGANIZATIONS. SCHEDULE H, PART VI; QUESTION 6 CENTRAL JERSEY BEHAVIORAL HEALTH ASSOCIATES, 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)(3). THE ORGANIZATION PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NONDISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY AND SUPPORTS THE CHARITABLE PURPOSES, PROGRAMS AND SERVICES OF SAINT BARNABAS BEHAVIORAL HEALTH CENTER, INC., A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION, THAT ALSO 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. CLARA MAASS 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 CLARA MAASS MEDICAL CENTER, A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION, THAT PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NONDISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. COMMUNITY 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 COMMUNITY MEDICAL CENTER, A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION, THAT PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NONDISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. KIMBALL 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 KIMBALL 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. MEDICAL CENTER STAFFING SERVICES, 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)(3). THE ORGANIZATION SUPPORTS THE CHARITABLE PURPOSES, PROGRAMS AND SERVICES OF CENTER STATE HEALTH GROUP, INC., A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX- EXEMPT ORGANIZATION, AND SUPPORTS THE BARNABAS HEALTH SYSTEM BY PROVIDING TEMPORARY STAFFING SERVICES TO VARIOUS AFFILIATES. MEGA 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)(3). THE ORGANIZATION IS LOCATED IN UNION, UNION COUNTY, NEW JERSEY. THE ORGANIZATION IS A SUPPORTING ORGANIZATION OF BARNABAS HEALTH, INC., AND PROVIDES HOME HEALTH AGENCY SERVICES IN SUPPORT OF BARNABAS HEALTH, INC. AND ITS TAX-EXEMPT ACUTE CARE HOSPITALS. MONMOUTH MEDICAL CENTER FACULTY PRACTICE PLAN, 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)(3). THE ORGANIZATION SUPPORTS THE CHARITABLE PURPOSES, PROGRAMS AND SERVICES OF MONMOUTH 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. THE ORGANIZATION PROVIDES CLINICAL SERVICES, EDUCATION AND TRAINING IN CONJUNCTION WITH MONMOUTH MEDICAL CENTER'S MEDICAL RESIDENCY TEACHING PROGRAM. MONMOUTH 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 MONMOUTH 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. SCHEDULE H, PART VI; QUESTION 6 BARNABAS HEALTH MEDICAL GROUP, P.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 BARNABAS HEALTH, INC., A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION AND ITS TAX-EXEMPT ACUTE CARE HOSPITALS, WHICH PROVIDE 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. IN ADDITION, BY PRACTICING MEDICINE, ENGAGING IN MEDICAL EDUCATION AND WORKING TO IMPROVE THE WELFARE OF INDIVIDUALS IN NEW JERSEY, THE ORGANIZATION COMPRISES A COMPONENT OF THE CLINICAL SERVICE PHYSICIAN PRACTICE PLANS OF THE BARNABAS HEALTH TEACHING HOSPITALS AND IS AN INTEGRAL PART OF THESE INSTITUTIONS. SAINT BARNABAS DEVELOPMENT 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)(2). THROUGH FUNDRAISING ACTIVITIES, THE ORGANIZATION SUPPORTS THE CHARITABLE PURPOSES, PROGRAMS AND SERVICES OF SAINT BARNABAS 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. SAINT BARNABAS HEALTH CARE SYSTEM 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 BARNABAS HEALTH. SAINT BARNABAS HOSPICE AND PALLIATIVE CARE CENTER, 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). THE ORGANIZATION PROVIDES CARE AND SUPPORT FOR TERMINALLY ILL PATIENTS AND THEIR FAMILIES IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. FOR MORE THAN 25 YEARS THE CARING, COMPASSIONATE PROFESSIONALS OF THE NATIONALLY RENOWNED SAINT BARNABAS HOSPICE AND PALLIATIVE CARE CENTER, INC. HAVE PROVIDED EXCEPTIONAL PHYSICAL, EMOTIONAL AND SPIRITUAL SUPPORT TO PATIENTS AND THEIR FAMILIES DURING LIFE'S FINAL STAGES WHETHER AT HOME, IN THE HOSPITAL, OR IN A LONG-TERM CARE OR ASSISTED LIVING FACILITY. OUR DEDICATED, HIGHLY SKILLED TEAM STRIVES TO IMPROVE QUALITY OF LIFE WHILE PROVIDING COMFORT, PRESERVING DIGNITY, AND HONORING THE UNIQUE WISHES OF EACH PATIENT AND FAMILY. SAINT BARNABAS OUTPATIENT CENTERS, CORP. 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). SAINT BARNABAS OUTPATIENT CENTERS IS ONE OF THE NATION'S MOST SOPHISTICATED AMBULATORY HEALTHCARE FACILITIES--PROVIDING THE HIGHEST QUALITY MEDICAL CARE IN AN ENVIRONMENT DESIGNED TO SET A NEW STANDARD FOR PATIENT SATISFACTION. THE ORGANIZATION PROVIDES VARIOUS TYPES OF MEDICALLY NECESSARY OUTPATIENT MEDICAL AND SURGICAL SPECIALTY SERVICES, INCLUDING AMBULATORY SURGERY AND WOMEN'S GYNECOLOGICAL SURGERY, RENAL DIALYSIS SERVICES, IMAGING SERVICES, DIABETES SERVICES AND ENDOCRINOLOGY SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. SAINT BARNABAS REALTY DEVELOPMENT CORPORATION 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)(3). THE ORGANIZATION IS A SUPPORTING ORGANIZATION OF SAINT BARNABAS 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, AND IS PRIMARILY RESPONSIBLE FOR THE MANAGEMENT AND OPERATION OF RENTAL SPACE FOR VARIOUS AFFILIATES OF THE BARNABAS HEALTH SYSTEM. SANDY HOOK FRIENDS OF SAINT BARNABAS BURN FOUNDATION 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)(3). THE ORGANIZATION SUPPORTS THE CHARITABLE PURPOSES, PROGRAMS AND SERVICES OF THE SAINT BARNABAS BURN UNIT AT SAINT BARNABAS 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. NJ HEALTH CARE INNOVATION CENTER, INC. IS AN INACTIVE 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)(3). THE NEWARK BETH ISRAEL 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 NEWARK BETH ISRAEL 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. THE SYSTEM ALSO CONSISTS OF VARIOUS ENTITIES THAT ARE RECOGNIZED AS INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATIONS BUT ARE CURRENTLY INACTIVE. THESE ENTITIES INCLUDE THE FOLLOWING: - IRVINGTON GENERAL HOSPITAL, INC. - IRVINGTON HOSPITAL FOUNDATION, INC. - UNION HOSPITAL SCHEDULE H, PART VI; QUESTION 6 FOR PROFIT BARNABAS HEALTH ENTITIES INCLUDE THE FOLLOWING: CENTER STATE MANAGEMENT CORPORATION IS A FOR-PROFIT ENTITY, WHOSE SOLE SHAREHOLDER IS CSHS THE ORGANIZATION IS LOCATED IN TOMS RIVER, OCEAN COUNTY, NEW JERSEY. THIS ENTITY PROVIDES ADVERTISING SERVICES FOR BOTH BH ENTITIES AND NON-SBHCS ENTITIES AND PROVIDES MANAGEMENT SERVICES TO PHYSICIAN GROUPS. COMMERCIAL PROFESSIONAL INSURANCE COMPANY, LTD, A CONTROLLED FOREIGN CORPORATION OF SAINT BARNABAS MEDICAL CENTER. THE ORGANIZATION WAS FORMED AND OPERATES SOLELY IN BERMUDA. HEALTH CARE FACILITIES MANAGEMENT, INC. IS A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS SBC MANAGEMENT CORPORATION (THE SOLE STOCKHOLDER OF WHICH IS SBC). THE ORGANIZATION IS LOCATED IN SOUTH PLAINFIELD, MIDDLESEX COUNTY, NEW JERSEY THE ORGANIZATION PROVIDES ENGINEERING, PLANT OPERATIONS AND MATERIALS MANAGEMENT SERVICES PRIMARILY TO BH ENTITIES. INNOVATIVE PURCHASING CONCEPTS, L.L.C. IS A LIMITED LIABILITY COMPANY TAXED AS A PARTNERSHIP OWNED BY THE BARNABAS HEALTH SYSTEM HOSPITALS THIS ORGANIZATION ENGAGES IN GROUP PURCHASING ACTIVITY. KIMBALL HEALTH CARE AFFILIATES, INC. IS A FOR PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS CENTER STATE HEALTH SERVICES CORP. THIS ENTITY IS A PARTNER IN KIM-MED ASSOCIATES AND RECEIVES A FORM K-1 ANNUALLY FROM THE PARTNERSHIP. KIM-MED ASSOCIATES IS A PARTNERSHIP WHICH OWNS A MEDICAL OFFICE BUILDING IN LAKEWOOD, OCEAN COUNTY, NEW JERSEY. KMC AND KIMBALL HEALTH CARE AFFILIATES, INC. ARE THE PARTNERS IN THIS PARTNERSHIP. LIVINGSTON INFUSION CARE, INC. IS A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS LSC THE ORGANIZATION IS LOCATED IN SOUTH PLAINFIELD, MIDDLESEX COUNTY, NEW JERSEY. THE ORGANIZATION PROVIDES HOME INFUSION AND DIALYSIS SERVICES TO INDIVIDUALS. LSC PHARMACY SERVICES, INC. IS A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS SBC. THE ORGANIZATION IS LOCATED IN WEST ORANGE, ESSEX COUNTY, NEW JERSEY. THE ORGANIZATION OPERATES A PHARMACY FOR BH ENTITIES. MAJOR SECURITY SERVICES, INC. IS A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS LSC. THE ORGANIZATION IS LOCATED IN SOUTH PLAINFIELD, MIDDLESEX COUNTY, NEW JERSEY. THE ORGANIZATION PROVIDES SECURITY SERVICES PRIMARILY TO BH ENTITIES AND OTHERS. THE ORGANIZATION CONDUCTS BACKGROUND CHECKS AND OTHER INVESTIGATORY SERVICES. NEW JERSEY HEALTH CARE SYSTEM, INC. IS AN INACTIVE FOR-PROFIT CORPORATION. LIVINGSTON SERVICES CORPORATION IS A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS BH. THE ORGANIZATION IS LOCATED IN BELLEVILLE, ESSEX COUNTY, NEW JERSEY. THIS ENTITY DERIVES INCOME FROM THE OPERATION OF A MRI MACHINE AND THE RECEIPT OF RENTAL INCOME. PROFESSIONAL QUALITY LIABILITY INSURANCE COMPANY, A RISK RETENTION GROUP, IS A VERMONT BASED INSURANCE COMPANY. SBC MANAGEMENT CORPORATION IS A FOR-PROFIT ENTITY, WHOSE SOLE SHAREHOLDER IS BH. THE ORGANIZATION IS LOCATED IN WEST ORANGE, ESSEX COUNTY, NEW JERSEY. THIS ENTITY PROVIDES MANAGERIAL ADMINISTRATION AND SUPPORT TO BH. SCHEDULE H, PART III, SECTION B; QUESTION 7 NOT APPLICABLE. THE ENTITY AND RELATED PROVIDER ORGANIZATIONS ARE LOCATED IN NEW JERSEY. NO COMMUNITY BENEFIT REPORT IS FILED WITH THE STATE OF NEW JERSEY. X true true X X X X X false true false false false false false true false THOMAS A BIGA TRUSTEE 0 779863 0 471000 0 423455 0 10965 0 25749 0 1711032 0 0 MARY ELLEN CLYNE CHIEF EXECUTIVE OFFICER 401483 0 142000 0 10980 0 158343 0 22141 0 734947 0 0 0 CHRISTOPHER WINTERS CFO (EFF 6/10/13) 181415 0 40000 0 22550 0 8051 0 2308 0 254324 0 0 0 YASMIR BISAL VP FINANCE 234439 0 34199 0 180 0 11043 0 18510 0 298371 0 0 0 LEA RODRIGUEZ VP PATIENT CARE SERVICES 233722 0 30026 0 392 0 10798 0 7669 0 282607 0 0 0 JAMES ROLEK VP HUMAN RESOURCES 194120 0 27500 0 3588 0 9625 0 15138 0 249971 0 0 0 DIANE MARIE COLUZZI VP OUTCOMES MANAGEMENT 199704 0 19999 0 276 0 9375 0 1408 0 230762 0 0 0 JANE KESSLER VP FOUNDATION 173815 0 22476 0 3960 0 8634 0 16117 0 225002 0 0 0 FRANK J MAZZARELLA MD VPMA 368870 0 44976 0 3588 0 10981 0 14208 0 442623 0 0 0 LINA SHIHABUDDIN MD MEDICAL DIRECTOR 324504 0 0 0 520 0 8415 0 112 0 333551 0 0 0 FADI CHAABAN MD PHYSICIAN 197800 0 0 0 0 0 0 0 0 0 197800 0 0 0 ROBERT BENEDETTI MD PATHOLOGIST 304359 0 9000 0 6858 0 11031 0 21114 0 352362 0 0 0 GITA PARIKH MD PSYCHIATRIST 236979 0 0 0 1278 0 9773 0 20116 0 268146 0 0 0 ROLANDO HERNANDEZ SURGICAL TECHNICIAN 214924 0 20000 0 70 0 9219 0 18617 0 262830 0 0 0 ELIE Y CHAKHTOURA MD MEDICAL DIRECTOR 229586 0 0 0 0 0 0 0 0 0 229586 0 0 0 SENTHAMARAI GANDHI MD ADVISOR 200406 0 0 0 22371 0 10434 0 7635 0 240846 0 0 0 SCHEDULE J, PART I; QUESTIONS 1A AND 1B THE ORGANIZATION'S CHIEF FINANCIAL OFFICER, CHRISTOPHER WINTERS, RELOCATED TO THE STATE OF NEW JERSEY FOR CLARA MAASS MEDICAL CENTER WORK PURPOSES. IN ORDER TO FACILITATE THE RELOCATION OF HIS PRIMARY RESIDENCE IN 2013, THE ORGANIZATION PROVIDED A HOUSING ALLOWANCE TO HIM IN THE AMOUNT OF $22,500. THIS AMOUNT WAS INCLUDED IN HIS 2013 FORM W-2, BOX 5 AS TAXABLE MEDICARE WAGES AND IN SCHEDULE J, PART II, COLUMN B(III) HEREIN. SCHEDULE J, PART I; QUESTION 4B THE AMOUNT REFLECTED IN COLUMN B(III) FOR THE FOLLOWING INDIVIDUAL INCLUDES PARTICIPATION IN A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN ("SERP") AS THE AMOUNT WAS NO LONGER SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. THE AMOUNT OUTLINED HEREIN WAS INCLUDED IN THE INDIVIDUAL'S 2013 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES: THOMAS A. BIGA, $413,478. THE DEFERRED COMPENSATION AMOUNT IN COLUMN C FOR THE FOLLOWING INDIVIDUAL INCLUDES UNVESTED BENEFITS IN AN INTERNAL REVENUE CODE SECTION 457(F) PLAN (NON-QUALIFIED DEFERRED COMPENSATION PLAN) WHICH ARE SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. ACCORDINGLY, THE INDIVIDUAL MAY NEVER ACTUALLY RECEIVE THIS UNVESTED BENEFIT AMOUNT. THE AMOUNT OUTLINED HEREIN WAS NOT INCLUDED IN THE INDIVIDUAL'S 2013 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES: MARY ELLEN CLYNE, $147,378. CORE FORM, PART VII AND SCHEDULE J, PART I; QUESTION 7 CERTAIN INDIVIDUALS INCLUDED IN SCHEDULE J, PART II RECEIVED A BONUS DURING CALENDAR YEAR 2013 WHICH AMOUNTS WERE INCLUDED IN COLUMN B(II) HEREIN AND IN EACH INDIVIDUAL'S 2013 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. JERALD M MAZZARELLA FAMILY MEMBER OF OFFICER 31443 CLARA MAASS MED CTR EMPLOYEE false AGNES BRADY FAMILY MEMBER OF OFFICER 90068 CLARA MAASS MED CTR EMPLOYEE false BENJAMIN BAUZON FAMILY MEMBER OF OFFICER 94926 CLARA MAASS MED CTR EMPLOYEE false CORE FORM, PART III Background ========== Clara Maass Medical Center ("CMMC") is a general medical and surgical hospital located in Belleville, Essex County, New Jersey. Founded in 1868 as the Newark German Hospital, it was the first hospital in the United States to bear the name of a nurse as its corporate identity. CMMC carries on a rich tradition of healthcare. The institution provides a complete continuum of care to residents of Essex, Hudson, Bergen and Passaic counties. Essex County, the second most densely populated county of the 21 counties in the state, has the third largest total population, is a financial and industrial hub of the state and consists of urban and suburban communities. CMMC serves a broad range of communities of both urban and suburban populations with diverse cultural and ethnical characteristics. CMMC is recognized by the IRS as an internal revenue code section 501(c)(3) tax-exempt organization. Pursuant to its charitable purposes, CMMC 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. Moreover, CMMC operates consistently with the following criteria outlined in IRS revenue ruling 69-545: 1. CMMC provides medically necessary healthcare services to all individuals regardless of ability to pay, including charity care, self-pay, Medicare and Medicaid patients; 2. CMMC operates an active emergency department for all persons which is open 24 hours a day, 7 days a week, 365 days per year; 3. CMMC maintains an open medical staff, with privileges available to all qualified physicians; 4. Control of CMMC rests with its board of trustees and the board of trustees of Barnabas Health 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. The operations of CMMC, as shown through the factors outlined above and other information contained herein, clearly demonstrate that the hospital provides substantial community benefit and that the use and control of CMMC 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. CMMC's sole corporate member is Barnabas Health, Inc. ("BH"), a tax-exempt New Jersey non-profit parent corporation. BH is a tax-exempt integrated healthcare delivery system consisting of a group of affiliated healthcare organizations. This integrated network of healthcare providers throughout the state of New Jersey provides substantial community benefit. The sole member or stockholder of each entity is either BH or another BH affiliate controlled or owned by BH. CMMC, like its corporate parent, is a not-for-profit organization. BH is the largest multi-hospital system in New Jersey and provides substantial community benefit. BH consists of free-standing acute care hospitals, a free-standing psychiatric hospital, Medicare-certified home healthcare and hospice programs, multi-specialty ambulatory care facilities, primary care centers, outpatient behavioral health centers and other entities. BH provides medically necessary healthcare services to all individuals regardless of ability to pay. Moreover, BH provides 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. BH 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. Hospital Statistical Information ================================ Clara Maass is a 469 licensed bed community hospital providing services to approximately 19,100 inpatients, over 1,500 births and nearly 78,450 emergency department visits in 2013. The medical center is staffed by approximately 2,100 employees. Close to 711 physicians are on the medical staff. CMMC also provides a Transitional Care Unit that has over 844 admissions. CMMC's patient population is represented by more than 61.5% minority race/ethnicity and over 21% of patients are of underinsured and uninsured payer classification. In 2013, 325 volunteers put in 38,000 hours of dedicated service at CMMC. Whether they are visiting with patients who are sick, escorting therapy dogs, raising money, or simply bringing magazines to someone who is bedridden, the Clara Maass volunteers enhance the Medical Center in countless ways. Clara Maass centers and services include the Women's Health Center, Nuclear Medicine, The Cancer Center at Clara Maass, Diagnostic Cardiac Services including Cardiac Catheterization, Emergency Angioplasty and Rehabilitation, The Pain Management Center, The Joint & Spine Institute, a Vascular Center, Same Day Surgery, The Wound Center at Clara Maass, The Center for Sleep Disorders, The Bariatric Surgery Center, Rehabilitation Services, Comprehensive Ophthalmology Services, Maternity Services and Parent Education, Pediatrics, a state-of-the-art Emergency Department, Radiology services and community outreach programs. The staff of dedicated physicians, nurses, and healthcare professionals is committed to providing the highest quality of patient care services and health education to the community and the region. Mission Statement ================= CMMC is committed to providing exceptional services and quality to the communities they serve through their passion for excellence and perfection. CMMC prides itself on commitment and compassion, leadership and loyalty, accountability, respect, recognition and agility while focusing on safety and satisfaction. Accomplishments/milestones/recognitions/awards ============================================== Clara Maass Medical Center is the recipient of numerous awards and honors including, but not limited to, the following: - Becker's Hospital Review - a national publication focused on the business and legal issues of health systems - selected Clara Maass as one of its "100 Hospitals With Great Heart Programs." - Received its third consecutive Grade "A" score in Hospital Safety by the Leapfrog Group this year. - U.S. News & World Report recently named CMMC among the 2013-2014 Best Hospitals in the New York Metro Area and scored the Medical Center as High Performing in four specialty areas: Diabetes, Nephrology, Neurology and Orthopedics. It is the fourth consecutive year that Clara Maass has been listed by U.S. News & World Report among the best hospitals in the New York Metro Area in its "Best Hospitals" edition. - CMMC was recognized as a top-performer in the state of New Jersey in providing patients recommended care in four areas: Heart Attack, Pneumonia, Heart Failure and Surgical Infection Prevention, according to a report released in June 2013 by the New Jersey state Department of Health. The overall hospital score was 100 percent for CMMC for patients who are being treated for Heart Attack, Heart Failure, Pneumonia and for patients undergoing Surgical Procedures, ranking it in first place among hospitals in the state and giving it the top score among hospitals in Essex County. The report cited CMMC for having an excellent record of patient safety, scoring zero or very low in the number of unsafe incidences involving patients, according to 2011 data examined by the state Department of Health. - In 2014, CMMC has received the Mission: Lifeline Bronze Receiving Quality Achievement Award for implementing specific quality improvement measures outlined by the American Heart Association for the treatment of patients who suffer severe heart attacks. It also received its fifth consecutive Grade "A" score in Hospital Safety by the Leapfrog Group, making it one of 251 hospitals in the entire nation to achieve an "A" in all five scores releases from the nation's leading experts on patient safety. - The Joint Commission, the leading accreditor of healthcare organizations in America, as a Top Performer on Key Quality Measures for 2012 - the Medical Center's third year in a row to receive this designation. - Thomson Reuters (now Truven Health Analytics) named CMMC one of the nation's 100 Top Hospitals in 2012. Clara Maass was also named an Everest Award winner by Thomson Reuters, a distinction for only 12 hospitals among the 100 winners for delivering the greatest rate of improvement over five years. CORE FORM, PART III - HealthGrades - a nationwide online resource center regarding physicians and hospitals - recognized CMMC with a Patient Safety Excellence Award for 2013, in April. The recognition places CMMC in the top 10 percent nationwide for patient safety. The nationwide study recognized 379 hospitals overall, based on an assessment of 13 patient safety indicators - including rates of infection, correct medicine dosage and how well the nursing staff communicated. - Clara Maass has achieved Joint Commission disease specific care certification in Acute Coronary Syndrome ("ACS"), Heart Failure, Total Hip Replacement and Total Knew Replacement. - The Cancer Center is accredited by the American College of Surgeons. - The Radiation Oncology Department is accredited by the American College of Radiology; mammography meets the Mammography Quality Standards Act. - CMMC is a New Jersey Department of Health designated primary stroke center. - The Center for Sleep Disorders is accredited by the American Academy of Sleep Medicine - Laboratory accredited by the College of American Pathologists ("CAP") Centers of Excellence ===================== 1. The Joint & Spine institute The Joint & Spine institute is located on a dedicated unit within the hospital. Surgeries are scheduled Monday through Friday and patients typically return home after a three-night stay. Features of the program include: nurses, therapists and nursing assistants who specialize in the care of joint patients; private and semi-private rooms; emphasis on group activities as well as individual care; family and friends educated to participate as "coaches" in the recovery process; a joint team who coordinates all pre-operative care and discharge planning; a comprehensive patient guide to follow from six weeks pre-op until three months post-op and beyond; coordinated after-care program; reunion luncheons for former patients and coaches; newsletters to provide patients with new information about arthritis and joint care; and public education seminars about hip and knee pain. 2. The Cancer Center Clara Maass has a new state-of-the-art Cancer Center that offers comprehensive services to cancer patients in one convenient location inside the Continuing Care Building. The Center's multidisciplinary approach to the treatment of cancer patients uses the expertise of medical oncologists, radiation oncologists, surgical oncologists, specialized nurses, dieticians, social workers and pathologists. Our board-certified oncologists and sub-specialists have extensive training and credentials from distinguished facilities across the country and offer our patients access to the latest drugs, research and clinical trials. Inside the cancer center, patient navigators meet with patients and walk them through each step of their treatment plan - from meeting with physicians to attending support groups. A variety of complimentary services are offered through the Cancer Center to complement medical treatment. Those services include: nutritional counseling, psychological counseling, palliative care, support groups, pain management, Reiki, and a drop-in bereavement group that meets weekly. Inside the same building housing the Cancer Center is the Outpatient Infusion Center is staffed by an experienced and compassionate team of oncology nurses, social workers and support staff. In addition, a specialized nurse educator is on staff to provide assistance to patients and their families. The unit has a private VIP suite as well as a solarium and education resource area for patients and their families. Downstairs, the Clara Maass Radiation Oncology Department offers patients a full array of services including Intensity Modulated Radiation Therapy ("IMRT") and Image Guided Radiation Therapy ("IGRT"), Mammosite brachytherapy for breast cancer, high dose rate radiotherapy and radioactive seed implants for prostate cancer. State-of-the-art equipment enables physicians to map out precise treatment sites with millimeter accuracy, treating the cancer while sparing normal tissue. The Radiation Oncology Department was the first facility in New Jersey to obtain national accreditation by the American College of Radiation Oncology. Diagnostic oncology services include closed and open MRI, CT scan, PET/CT, ultrasonography, early detection screenings, and stereotactic and CT-guided biopsy. Our goal is to offer an array of services on the path to wellness, in one convenient location, to lessen the stress on our cancer patients and their families. 3. Diagnostic and Interventional Cardiac Services The most technologically advanced equipment is used to accurately and quickly diagnose and confirm suspected coronary disease. Clara Maass is a licensed adult cardiac catheterization facility, which allows cardiologists to coordinate all aspects of testing that may contribute to decisions regarding medical management or cardiovascular surgery referral for heart disease. Tests include routine EKGs, 24-hour holter monitoring, vascular studies, 2d ECHO with Doppler & color flow, stress echocardiograms, nuclear stress testing and transesophageal echocardiography. CMMC is home to a state-of-the-art cardiovascular interventional suite which includes two procedure rooms. Both emergent and elective angioplasty are offered (one of 12 hospitals in the state approved to perform elective angioplasty c-port-e study led by John Hopkins University). A supervised exercise/education program assisting individuals who have or have had heart attack, stable angina, valve surgery, coronary artery bypass, congestive heart failure, pacemaker, or heart transplant is also offered. The program strives to provide each participant with improvement in cardiovascular fitness, risk factor reduction, lifestyle modification and increased confidence to participate in safe daily activities. Patients and families are provided with education regarding recognition, prevention and treatment of cardiovascular disease. 4. The Eye Surgery Center All ophthalmologists and surgeons at the eye surgery center are board-certified and specialize in the prevention, diagnosis and treatment of eye problems, diseases and injuries. Clara maass eye care experts work together to provide comprehensive ophthalmic care in every area of eye disorders and treat patients of all ages-from infants to seniors. State-of-the art equipment and dedicated ophthalmology suites ensure the deliverance of the most advanced quality eye care. CMMC performs the most hospital eye procedures in the state of New Jersey and is also the first hospital in New Jersey to offer trabectome - a leading-edge treatment for glaucoma. Medical and Community services ============================== Clara Maass's services include an array of additional medical services and programs that address the healthcare needs of its communities, from diagnostic, to prevention and treatment. Additional Medical Services --------------------------- - Progressive Imaging Center on campus is a complete outpatient diagnostic facility offering the most sophisticated imaging technology, including MRI, CT Scan, PET/CT, bone densitometry, stereotactic breast biopsy, voxel q workstation, diagnostic x-ray, fluoroscopy, digital mammography and ultrasound. - The Wound Center at Clara Maass is a unique service dedicated to caring for people with wounds that have resisted healing. The wound center brings together a team of experienced physicians and nurses who combine knowledge in all areas of wound management. These specialists manage non-healing wounds a major problem facing many with poor circulation or diabetes. Treatments available include hyperbaric oxygen therapy, compression therapy and human skin equivalents. - A Robot Surgery program was launched in late 2012 for certified surgeons trained in advanced robotic surgery. They are certified in a number of surgical specialty areas, including gynecology, urology and nephrology, among others. CMMC surgeons use the daVinci Si, which is the latest version of the advanced robotics surgery system. Robotic-assisted surgeries are done in a less-invasive manner. The incisions are very small, which helps reduce the risk of infection and the amount of bleeding. That allows patients a quicker recovery time and shorter hospital stay. - Nuclear Medicine enables Clara Maass to offer some of the latest technology, with five cameras, two of which are siemans e-cam gamma cameras, which benefits patients and physicians alike. The partnership with Siemans allows Clara Maass to offer the best in nuclear imaging now and in the future. CORE FORM, PART III - The Pain Management Center allows patients experiencing chronic pain can find relief housed within the health and wellness center at Clara Maass. The Center offers patients the opportunity to alleviate themselves of unresolved, persistent pain that has lasted for more than three months. The Pain Management Center utilizes a multidisciplinary approach in establishing a protocol for patients that includes medical, psychological, physical and pharmacological treatments. - The Same Day Surgery Center is easily accessible and offers the benefits of a private outpatient facility with the comfort and support of a full-service medical center. A wide variety of surgical techniques are available, in specialties including ophthalmology, ear, nose and throat, podiatry, plastic and reconstructive surgery, orthopedics, gynecology, general surgery, gastroenterology, bariatric, urology, oral surgery, and the cardiac intervention suites. The 8,700 square-foot endoscopy center is used for preventative diagnostic procedures that examine areas of the body such as the colon, gastrointestinal system, or the bronchi (which serve as passageways to the lungs). The endoscopy center includes a pre-operative and post-operative area for patients, three procedure rooms, family waiting rooms, and concierge service to assist patients and families. - Maternal/child health services are provided in the state-of-the-art labor, delivery, and recovery ("LDR") unit, patients have the luxury of laboring, delivering and recovering in a spacious LDR suite. The unit houses six contemporary suites. Complicated deliveries and cesarean births can be handled in one of two operating suites, which are also located within the LDR wing. Following recovery, patients will stay in private postpartum rooms. - In addition to the newborn nursery, CMMC maintains a level II special care nursery for premature newborns born at 32 weeks or greater, and newborns in need of specialized medical treatment. With a neonatologist in house/available 24-hours a day, and a highly skilled team of neonatal nurses, CMMC provides comprehensive expert medical care utilizing the latest technology. - A dedicated pediatric unit with the availability of a child life specialist is another attribute provided within the maternal/child health center of excellence. - The Emergency Department at CMMC cares for nearly 80,000 patients each year. The department is staffed 24-hours a day by a dedicated team of nurses, doctors and support staff, ready to provide immediate medical care in your emergency situations. One hundred percent of ed physicians are board-certified in emergency medicine. The 52-bed emergency department includes state-of-the-art electronic medical record linked to a health information exchange that instantly sees your old record and transmits your electronic record to your private doctor; mobile computers to provide instant access to a patient's prior ed visits; a rapid triage treatment area for minor illness and injuries; express care for rapid diagnostic evaluation; a pediatric emergency department and child life specialist; a chest pain center accredited by the society of chest pain centers, for heart-related diagnosis and treatment; mobile telemetry units for heart monitoring; rapid diagnostic unit for observation patients; a primary stroke center designated by the new jersey department of health and senior services, for the early diagnosis, intervention and treatment of strokes; 24-hour full-service laboratory diagnostic testing; and 24-hour full-service radiology. - The Center for Sleep Disorders can help improve the lives of those suffering from any number of conditions, such as insomnia, sleep apnea, narcolepsy, restless legs syndrome and other disorders. At the Center, five types of non-invasive studies are conducted and comprehensive evaluations are performed by sleep specialists. Patients may participate in an overnight sleep study and/or a series of nap studies during the daytime. The studies include nocturnal polysomnogram, nasal CPAP (continuous positive airway pressure) titration, multiple sleep latency and a split night study, which utilize sophisticated diagnostic equipment to monitor brain, heart, respiratory and muscle activity during sleep. - The Transitional Care Unit ("TCU") at CMMC offers a special caring environment for patients who no longer require all the resources of an acute care hospital, but who are still too sick to be cared for at home. The TCU is a 20-bed unit which provides a sub-acute level of care within the acute care hospital, an option in the continuum of care. Typically, patients are admitted to the TCU for the following types of care: cardiac recovery, post-surgical recovery, oncology and pain management, pulmonary management, skin and wound care, and complex medical management. A few extra days for recovery in the TCU can give patients just the time they need to regain strength and function needed to successfully be discharged home. The TCU is staffed by physicians, nurses, social workers, rehabilitation therapists, and dieticians who follow an interdisciplinary team approach to help patients transition to home so they may live independently or with some assistance. - The Geriatric and Adult Inpatient Behavioral Health Unit at Clara Maass Medical Center offers an array of comprehensive, high-quality inpatient behavioral health programs to treat adult and geriatric patients. In addition to the 20-bed involuntary behavioral health inpatient unit located within the hospital, Clara Maass has introduced a new 12,500 square foot, 22-bed voluntary unit that provides intensive programming and treatment services designed specifically for adult and geriatric patients. The new unit is composed of 22 spacious rooms equipped with the latest patient safety features. Both units provide: intensive, patient-centered behavioral health services; comprehensive psychiatric assessment; individualized treatment; one-on-one intervention; and psychiatric medication management. Community Service Centers ------------------------- CMMC is committed to keeping its community healthy, and offers an extensive array of community outreach programs and services for the benefit of the community residents and employees. For more than 100 years, CMMC has been a leader in northern New Jersey in providing the best in healthcare and the latest in medical technology to the nearly 1 million residents that comprise its primary service area of Essex, Hudson, Bergen, and Passaic counties. CORE FORM, PART III CMMC operates the following centers designed to promote health and health awareness for the community. - The Health and Wellness Center was designed to deliver a wide range of services most frequently requested by women of all ages. These services include breast health, genetic counseling, osteoporosis, perinatology, obstetrics, and urogynecology for incontinence. Clara Maass also offers screenings, preventative programs and a resource center where individuals can find out more about their health and the health of their families. - The New Jersey Bariatric and Metabolic Institute ("NJBMI") at CMMC offers a multidisciplinary approach to weight loss that includes pre and post-surgery education and counseling. NJBMI at CMMC received the maximum, three-year accreditation from both the American Society for Metabolic & Bariatric Surgery and the American College of Surgeons. The bariatric team, consisting of a board-certified surgeon, specialized nurses, dieticians, behavioral health specialists, and a bariatric navigator, are all dedicated to helping every patient achieve optimal results. Services include laparoscopic realize band, sleeve gastrectomy, and laparoscopic roux-en-y gastric bypass surgery. - Free community health seminars and a support group for post-bariatric surgery patients is held the third Wednesday of every month in the Belleville Founders Room at the Medical Center. - The Clara Cares program provides primary care services to elderly individuals living in Senior Housing Communities to allow them to age in place in the comfort of their familiar settings. The program reaches over 500 individuals a year. - CMMC launched a comprehensive program to prevent delirium in elderly patients - which includes everything from close monitoring of the patients' medication to engaging seniors' minds with card games, conversation and reading. The Hospital Elder Life Pilot Program's overall goal is to reduce mortality and readmission rates for vulnerable seniors. CMMC was able to launch the program this spring with the help of a generous grant from The Health Care Foundation of New Jersey. The goal was to help senior patients by making their stay in the hospital as comfortable as possible and to contribute to their overall health once they are discharged. Geriatric Nurse Coordinators start their day joining interdisciplinary rounds with the medical teams overseeing patients ages 70 and older in the Medical-Surgical Wing of the hospital. Patients are checked for any history of Alzheimer's Disease or Delirium and the nurses then make one-on-one visits during the day to assess how the patients are doing. The coordinators check for a number of issues - including signs of confusion, a change in behavior, or any decline that's been observed since the seniors have become inpatients at the hospital. They enroll seniors into the pilot program who are deemed to be at risk for delirium. Those patients receive ongoing attention to keep them engaged and feeling comfortable during their hospital stay. With the help of the coordinators and specially-trained volunteers, the patients may get help at mealtime, take part in relaxation exercises, enjoy hobbies such as playing cards or board games, be read to, walk around with a companion, or simply converse with someone to share memories and stories together. But the treatment doesn't end there. Before the senior patients are discharged, both Salinas and Okeke come up with a discharge plan for them to help keep them healthy and prevent them from having to return to the hospital. Each patient's "My Care" plan spells out guidelines for follow-up doctors' appointments, medication scheduling and a number of short and long-term goals. A variety of health screenings and educational programs are offered throughout the year to community residents and employees. Breast cancer, prostate cancer, oral cancer, cervical cancer (pap smear), skin cancer, vision, blood pressure, cholesterol, cardiac risk, foot disorders and comprehensive blood screenings are some of the screenings offered. Presentations on various health topics are available to community groups, organizations and clubs. Additional programs such as education programs for seniors and a smoking prevention program are held in collaboration with local health departments and other community agencies. - More than 100 student-athletes attended the second Matthew J. Morahan screening event hosted by CMMC. Students received a free baseline concussion screening and baseline EKG. Families who attended came from as far away as Monmouth and Sussex counties. The Morahan screenings are provided free of charge throughout the entire Barnabas Health system. - The Cancer Center at Clara Maass Medical Center and Dominick J. Ligresti, MD, Medical Costmetic and Surgical Dermatologist, recently took summer skin care one step further and met with individuals at the second-ever skin screening and advising 6 men and women to schedule follow-up appointments. "It means a lot to be able to provide skin screenings to the public," says Dr. Ligresti. "Such opportunities have the potential to save a life or to prevent a future condition, which, in the long run, can save people and their families a lot of time, pain and money." Classes are available to help educate the new mother and family about the impending birth. Classes include Prepared Childbirth, Weekend Childbirth Series, Sibling Class, Breastfeeding and Baby Shower Infant Class. Expectant mothers who enroll in the classes are invited to a Maternity Tea. A small sample of programs offered includes: - Heart Health for Women - Managing Joint and Spine Pain - Nutrition - Skin Cancer Screening - Blood Pressure, Cholesterol and Glucose Screenings - Maintaining Eye Health - Managing Stress - Bereavement Group - Breast Cancer Support Group - Prostate Screening for Men Community Education ------------------- The hospital's ongoing efforts to educate the community with respect to general health awareness, issues and public safety, healthcare activities, screenings, education and programs is advanced through publications, news bulletins, newsletters, web postings and other publications produced by the hospital. In addition, patients part of at risk populations are assessed for influenza and pneumonia vaccinations and provided the vaccines upon their approval. All patients are asked regarding living wills and advanced directives. CORE FORM, PART III; LINE 4D EXPENSES INCURRED IN PROVIDING 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 THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT INCLUDED IN SCHEDULE O. CORE FORM, PART VI, SECTION A; QUESTIONS 6 & 7 BARNABAS HEALTH, INC. ("BH") IS THE SOLE MEMBER OF THIS ORGANIZATION. BH HAS THE RIGHT TO ELECT THE MEMBERS OF THIS ORGANIZATION'S BOARD OF TRUSTEES 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 BARNABAS HEALTH; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM ("SYSTEM"). BARNABAS HEALTH, INC. IS THE TAX-EXEMPT PARENT ENTITY OF THE SYSTEM. THE 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"). IN ADDITION, THE BARNABAS HEALTH, INC. AUDIT COMMITTEE ASSUMED THE RESPONSIBILITY TO OVERSEE AND COORDINATE THE FEDERAL FORM 990 PREPARATION AND FILING PROCESS FOR ALL TAX-EXEMPT AFFILIATES WITHIN THE SYSTEM BUT DID NOT PERFORM AN ACTUAL REVIEW OF EACH AFFILIATE FEDERAL FORM 990 WITH THE EXCEPTION OF BARNABAS HEALTH, INC. AS PART OF THE ORGANIZATION'S FEDERAL FORM 990 TAX RETURN PREPARATION PROCESS THE SYSTEM 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 SYSTEM INDIVIDUALS INCLUDING IN-HOUSE COUNSEL, EXECUTIVE VICE-PRESIDENT AND CHIEF FINANCIAL OFFICER, VICE PRESIDENT, INTERNAL AUDIT AND VARIOUS OTHER INDIVIDUALS TO OBTAIN THE INFORMATION NEEDED IN ORDER TO PREPARE A COMPLETE AND ACCURATE TAX RETURN. THE CPA FIRM PREPARED A DRAFT FEDERAL FORM 990 AND FURNISHED IT TO THE ORGANIZATION'S INTERNAL WORKING GROUP, INCLUDING THOSE INDIVIDUALS OUTLINED ABOVE, FOR THEIR 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 AND APPROVAL. A MEETING WAS ALSO HELD TO REVIEW THE FINAL DRAFT OF THE FEDERAL FORM 990 WITH THE CHAIRPERSON OF THE ORGANIZATION'S FINANCE COMMITTEE AND OTHER INDIVIDUALS FOR REVIEW AND APPROVAL. FOLLOWING THIS REVIEW THE FINAL FEDERAL FORM 990 WAS PROVIDED TO EACH VOTING MEMBER OF THE ORGANIZATION'S GOVERNING BODY PRIOR TO FILING WITH THE IRS. CORE FORM, PART VI, SECTION B; QUESTION 12 THE ORGANIZATION HAS A WRITTEN CONFLICT OF INTEREST POLICY. THE ORGANIZATION REGULARLY MONITORS AND ENFORCES COMPLIANCE WITH ITS CONFLICT OF INTEREST POLICY. THIS CONFLICT OF INTEREST POLICY REQUIRES THAT A CONFLICT OF INTEREST FORM CONSISTENT WITH BEST GOVERNANCE PRACTICES AND INTERNAL REVENUE SERVICE GUIDELINES BE CIRCULATED TO OFFICERS, TRUSTEES AND KEY EMPLOYEES ANNUALLY. IN A SITUATION IN WHICH A TRUSTEE DISCLOSES AN INTEREST THAT COULD GIVE RISE TO A CONFLICT, THE TRUSTEE'S POTENTIAL CONFLICT IS REFERRED TO THE CORPORATE NOMINATING AND GOVERNANCE COMMITTEE WHICH EVALUATES THE CONFLICT AND ITS POTENTIAL IMPACT ON THE TRUSTEE'S PARTICIPATION ON THE BOARD OR ON CERTAIN ISSUES WHICH MAY COME BEFORE THE BOARD. AS APPROPRIATE THE COMMITTEE WILL TAKE ACTION TO ADDRESS THE CONFLICT. CORE FORM, PART VI, SECTION B; QUESTION 15 THE ORGANIZATION IS AN AFFILIATE WITHIN BARNABAS HEALTH; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. BARNABAS HEALTH, INC. ("BH") IS THE TAX-EXEMPT PARENT ENTITY OF BARNABAS HEALTH. BH'S BOARD OF TRUSTEES MAINTAINS 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 BH'S SENIOR MANAGEMENT. THE COMMITTEE ALSO REVIEWS THE COMPENSATION AND BENEFITS OF OTHER KEY OFFICERS AND KEY EMPLOYEES OF BARNABAS HEALTH; INCLUDING, WITHOUT LIMITATION, THE CHIEF EXECUTIVE OFFICERS OF BARNABAS HEALTH HOSPITALS AND MEDICAL CENTERS. THE COMMITTEE, WHICH IS REQUIRED BY THE CORPORATION'S BYLAWS TO BE COMPRISED SOLELY OF INDEPENDENT TRUSTEES, SEEKS GUIDANCE AND SUBSTANTIATION FROM A NATIONALLY RECOGNIZED COMPENSATION CONSULTANT. 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 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. 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 COMMITTEE IS COMPRISED OF MEMBERS OF THE BOARD OF TRUSTEES EACH OF WHO ARE INDEPENDENT AND ARE FREE FROM ANY CONFLICTS OF INTEREST. THE COMMITTEE RELIED UPON APPROPRIATE COMPARABLE DATA; SPECIFICALLY THE COMMITTEE OBTAINED A WRITTEN COMPENSATION STUDY FROM AN INDEPENDENT FIRM WHICH SPECIALIZES IN THE REVIEW 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, SIMILARLY SIZED HEALTHCARE SYSTEMS AND HOSPITALS, # OF LICENSED BEDS AND NET PATIENT SERVICE REVENUE. THE COMMITTEE ADEQUATELY DOCUMENTED THE 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 COMMITTEE AND THE ESTABLISHMENT OF THE REBUTTABLE PRESUMPTION OF REASONABLENESS APPLIES TO CERTAIN BH SENIOR MANAGEMENT PERSONNEL. THE COMPENSATION AND BENEFITS OF CERTAIN OTHER INDIVIDUALS CONTAINED IN THIS FORM 990, WHERE APPLICABLE, ARE REVIEWED ANNUALLY BY THE BARNABAS HEALTH 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'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 OR A RELATED ORGANIZATION. PLEASE NOTE THIS REMUNERATION WAS FOR SERVICES RENDERED AS FULL-TIME EMPLOYEES OF THE ORGANIZATION OR A RELATED ORGANIZATION AND NOT FOR SERVICES RENDERED AS A VOTING MEMBER OR OFFICER OF THIS ORGANIZATION'S BOARD OF TRUSTEES. CORE FORM, PART VII, SECTION A, COLUMN B THIS ORGANIZATION IS AN AFFILIATE WITHIN BARNABAS HEALTH; 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 ONE HOUR. 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 BARNABAS HEALTH; NOT SOLELY THIS ORGANIZATION. CORE FORM, PART XI; QUESTION 9 OTHER CHANGES IN NET ASSETS OR FUND BALANCE INCLUDE: - NET ASSETS RELEASED FROM RESTRICTION FOR PURCHASES OF PROPERTY AND EQUIPMENT - $564,361; - NET CHANGE IN TEMPORARILY AND PERMANENTLY RESTRICTED NET ASSETS OF CLARA MAASS FOUNDATION; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION - ($252,000); - NET EQUITY TRANSFER FROM INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT AFFILIATES - $587,168; AND - NET TRANSFER OF EQUITY IN JERSEY CARE HOME HEALTH TO MEGA CARE, INC.; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION - ($429,815) CORE FORM, PART XII; QUESTION 2 THE ORGANIZATION IS AN AFFILIATE WITHIN BARNABAS HEALTH, A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM ("SYSTEM"). THE SYSTEM'S TAX-EXEMPT PARENT ENTITY IS BARNABAS HEALTH, INC. AN INDEPENDENT CPA FIRM AUDITED THE CONSOLIDATED FINANCIAL STATEMENTS OF BARNABAS HEALTH, INC. AND ALL ENTITIES WITHIN THE SYSTEM FOR THE YEARS ENDED DECEMBER 31, 2013 AND DECEMBER 31, 2012; RESPECTIVELY. THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS CONTAINED CONSOLIDATING SCHEDULES ON AN ENTITY BY ENTITY BASIS. THE INDEPENDENT CPA FIRM ISSUED AN UNQUALIFIED OPINION WITH RESPECT TO THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS. THE BARNABAS HEALTH, INC. AUDIT 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 THIS ORGANIZATION IS AN AFFILIATE WITHIN BARNABAS HEALTH; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM ("SYSTEM"). THE SYSTEM ENGAGED AN INDEPENDENT ACCOUNTING FIRM TO PREPARE AND ISSUE A SYSTEM WIDE CONSOLIDATED A-133 AUDIT. THIS ORGANIZATION WAS INCLUDED IN THE SYSTEM WIDE A-133 AUDIT. DEPARTMENTAL EIN LISTING THE ORGANIZATION'S FEDERAL FORM 990 INCLUDES CERTAIN REVENUE RECEIVED AND EXPENSES INCURRED BY VARIOUS CLARA MAASS MEDICAL CENTER HEALTHCARE RELATED PROGRAMS, DEPARTMENTS, ACTIVITIES AND CLARA MAASS MEDICAL CENTER EMPLOYEES. REVENUE EARNED FROM THESE PROGRAMS AND ACTIVITIES WAS RECEIVED BY CLARA MAASS MEDICAL CENTER UTILIZING DIFFERENT FEDERAL IDENTIFICATION NUMBERS THAN 22-1500556. BELOW IS A LIST OUTLINING THE VARIOUS CLARA MAASS MEDICAL CENTER PROGRAMS, DIVISIONS, DEPARTMENTS AND PHYSICIAN EMPLOYEES AND THEIR RESPECTIVE FEDERAL IDENTIFICATION NUMBERS. CLARA MAASS DEPARTMENT OF PATHOLOGY 41-2151593 CLARA MAASS MEDICAL CENTER HOUSE 33-1056363 CENTER STATE HEALTH GROUP INC 2 CRESCENT PLACE OCEANPORT NJ 07757 222939956 HEALTH SVCS. NJ 501(C)(3) 509(a)(3) BH false CENTRAL JERSEY BEHAVIORAL HEALTH ASSOC 1691 ROUTE 9 TOMS RIVER NJ 08754 223343959 HEALTH SVCS. NJ 501(C)(3) 509(a)(3) SBBH false CLARA MAASS FOUNDATION ONE CLARA MAASS DRIVE BELLEVILLE NJ 07109 222132516 FUNDRAISING NJ 501(C)(3) 509(a)(1) BH false COMMUNITY MEDICAL CENTER 99 HIGHWAY 37 WEST TOMS RIVER NJ 08755 223452306 HEALTH SVCS. NJ 501(C)(3) HOSPITAL BH false COMMUNITY MEDICAL CENTER FOUNDATION 99 HIGHWAY 37 WEST TOMS RIVER NJ 08755 222597592 FUNDRAISING NJ 501(C)(3) 509(a)(1) BH false IRVINGTON GENERAL HOSPITAL 832 CHANCELLOR AVENUE IRVINGTON NJ 07111 223452411 INACTIVE NJ 501(C)(3) HOSPITAL BH false IRVINGTON HOSPITAL FOUNDATION 95 OLD SHORT HILLS ROAD WEST ORANGE NJ 07052 237025428 INACTIVE NJ 501(C)(3) 509(a)(3) BH false KIMBALL MEDICAL CENTER 600 RIVER AVENUE LAKEWOOD NJ 08701 223452413 HEALTH SVCS. NJ 501(C)(3) HOSPITAL BH false KIMBALL MEDICAL CENTER FOUNDATION 600 RIVER AVE ANNEX BLDG E LAKEWOOD NJ 08701 222630076 FUNDRAISING NJ 501(C)(3) 509(a)(1) BH false MEDICAL CENTER STAFFING SERVICES INC 1 CRAGWOOD ROAD SUITE 3D SOUTH PLAINFIELD NJ 07080 352219655 STAFFING SVCS NJ 501(C)(3) 509(a)(3) CSHG false MEGA CARE INC 2 CRESCENT PLACE OCEANPORT NJ 07757 222578561 HEALTH SVCS. NJ 501(C)(3) 509(a)(3) CSHG false MONMOUTH MEDICAL CENTER 300 SECOND AVENUE LONG BRANCH NJ 07740 223452412 HEALTH SVCS. NJ 501(C)(3) HOSPITAL BH false MONMOUTH MEDICAL CENTER - FACULTY PRACT 100 STATE HIGHWAY 36 WEST LONG BRANCH NJ 07764 223357053 HEALTH SVCS. NJ 501(C)(3) 509(a)(3) MMC false MONMOUTH MEDICAL CENTER FOUNDATION 300 SECOND AVENUE LONG BRANCH NJ 07740 222456079 FUNDRAISING NJ 501(C)(3) 509(a)(1) BH false BARNABAS HEALTH MEDICAL GROUP PC 300 SECOND AVENUE LONG BRANCH NJ 07740 223316007 HEALTH SVCS. NJ 501(C)(3) 509(a)(2) MMC false NEWARK BETH ISRAEL MEDICAL CENTER 201 LYONS AVENUE NEWARK NJ 07112 223452311 HEALTH SVCS. NJ 501(C)(3) HOSPITAL BH false SAINT BARNABAS BEHAVIORAL HEALTH CENTER 1691 ROUTE 9 TOMS RIVER NJ 08754 222977312 HEALTH SVCS. NJ 501(C)(3) HOSPITAL CSHG false BARNABAS HEALTH INC 95 OLD SHORT HILLS ROAD WEST ORANGE NJ 07052 222405279 HEALTH SVCS. NJ 501(C)(3) 509(a)(3) NA false SAINT BARNABAS DEVELOPMENT FOUNDATION 95 OLD SHORT HILLS ROAD WEST ORANGE NJ 07052 222378422 FUNDRAISING NJ 501(C)(3) 509(a)(1) BH false SAINT BARNABAS HEALTH CARE SYSTEM FDN 95 OLD SHORT HILLS ROAD WEST ORANGE NJ 07052 223769036 FUNDRAISING NJ 501(C)(3) 509(a)(1) BH false SAINT BARNABAS HOSPICE AND PALLIATIVE 95 OLD SHORT HILLS ROAD WEST ORANGE NJ 07052 222354659 HEALTH SVCS. NJ 501(C)(3) 509(a)(1) BH false SAINT BARNABAS MEDICAL CENTER 94 OLD SHORT HILLS ROAD LIVINGSTON NJ 07039 221494440 HEALTH SVCS. NJ 501(C)(3) HOSPITAL BH false SAINT BARNABAS OUTPATIENT CENTERS 200 SOUTH ORANGE AVENUE LIVINGSTON NJ 07039 222458479 HEALTH SVCS. NJ 501(C)(3) 509(A)(2) BH false SAINT BARNABAS REALTY DEVELOPMENT CORP 94 OLD SHORT HILLS ROAD LIVINGSTON NJ 07039 222940008 TITLE HLDNG. NJ 501(C)(3) 509(a)(3) BH false NJ HEALTH CARE INNOVATION CENTER INC 94 OLD SHORT HILLS ROAD LIVINGSTON NJ 07039 222458481 INACTIVE NJ 501(C)(3) 509(a)(3) BH false THE NEWARK BETH ISRAEL MEDICAL CNTR FDN 201 LYONS AVENUE NEWARK NJ 07112 222587176 FUNDRAISING NJ 501(C)(3) 509(a)(1) BH false UNION HOSPITAL 94 OLD SHORT HILLS ROAD LIVINGSTON NJ 07039 221413947 INACTIVE NJ 501(C)(3) HOSPITAL BH false SANDY HOOK FRNDS OF ST BARNABAS BURN FDN 94 OLD SHORT HILLS ROAD LIVINGSTON NJ 07039 223236202 FUNDRAISING NJ 501(C)(3) 509(A)(3) BH false INNOVATIVE PURCHASING CONCEPTS 95 OLD SHORT HILLS ROAD WEST ORANGE NJ 07052 223786557 PURCHASING NJ BH false 0 false KIM-MED ASSOCIATES 300 SECOND AVENUE LONG BRANCH NJ 07740 222775619 REAL ESTATE NJ KHCA false 0 false NEW JERSEY IMAGING NTWK LLC 95 OLD SHORT HILLS ROAD WEST ORANGE NJ 07052 460623701 HEALTHCARE SVCS. NJ CSHG false 0 false LIVINGSTON SERVICES CORP 1 CRAGWOOD ROAD SUITE 3D SOUTH PLAINFIELD NJ 07080 222779395 HEALTHCARE SVCS. NJ NA C CORP. false LIVINGSTON INFUSION CARE INC 1 CRAGWOOD ROAD SUITE 3D SOUTH PLAINFIELD NJ 07080 223190756 HEALTHCARE SVCS. NJ NA C CORP. false MAJOR SECURITY SERVICES INC 1 CRAGWOOD ROAD SUITE 3D SOUTH PLAINFIELD NJ 07080 223040539 SECURITY SVCS. NJ NA C CORP. false CENTER STATE MANAGEMENT CORP 300 SECOND AVENUE LONG BRANCH NJ 07740 222506125 MGMT SVCS. NJ NA C CORP. false KIMBALL HLTH CARE AFFILIATES 300 SECOND AVENUE LONG BRANCH NJ 07740 222701213 INVESTMENT NJ NA C CORP. false HEALTH CARE FACILITIES MGT 1 CRAGWOOD ROAD SUITE 3D SOUTH PLAINFIELD NJ 07080 223532988 MAINT. SVCS. NJ NA C CORP. false SBC MANAGEMENT CORPORATION 95 OLD SHORT HILLS ROAD WEST ORANGE NJ 07052 223414332 MGMT SVCS. NJ NA C CORP. false PROFESSIONAL QUALITY LIAB 100 BANK STREET BURLINGTON VT 05401 205163819 INSURANCE SVCS. VT NA C CORP. false NJ HEALTH CARE SYSTEM INC 94 OLD SHORT HILLS ROAD LIVINGSTON NJ 07039 223536986 INACTIVE NJ NA C CORP. false CPIC 44 CHURCH STREET HAMILTON BERMUDA BD HM11 FINANCIAL VEHICLE BD NA FOREIGN CORP. false LSC PHARMACY SERVICES INC 95 OLd SHORT HILLS ROAD WEST ORANGE NJ 07052 452552776 PHARMACY SVCS. NJ NA C CORP false false false true true true false false false false false false false false true false false false true true SCHEDULE R, PART V BARNABAS HEALTH, INC. AND SBC MANAGEMENT CORPORATION ROUTINELY PAY EXPENSES FOR VARIOUS AFFILIATES WITHIN BARNABAS HEALTH IN THE ORDINARY COURSE OF BUSINESS, INCLUDING THIS ORGANIZATION. 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.