2014-11-17T17:56:40-06:00 2013-12-31 861065772 DELOITTE TAX LLP 1111 BAGBY STREET SUITE 4500 HOUSTON TX 770022591 990 2013-01-01 741180155 THE METHODIST HOSPITAL METH 8326676160 6565 Fannin No GB240 Houston TX 770302707 Kevin J Burns Asst Treasurer & Secretary 7134413421 2014-11-17 1 Jeffrey D Frank P00287234 7139822000 2013 2015-11-30 17:44:51Z Houston Methodist Hospital Marc L Boom MD 6565 Fannin No GB240 Houston TX 770302707 3577667496 0 5792 X www.houstonmethodist.org X 1946 TX PROVIDE MEDICAL CARE (SEE MISSION STATEMENT ON PAGE 2) 23 21 8486 1062 379688 -107966 10102170 10355205 1251237501 1377485150 66784908 15575157 29298628 40561910 1357423207 1443977422 6222246 35710568 0 0 517320761 561151383 0 0 0 711584226 790533560 1235127233 1387395511 122295974 56581911 5168532160 5706324838 1960034702 1900830877 3208497458 3805493961 X To provide high quality, cost-effective health care that delivers the best value to the people we serve in a spiritual environment of caring in association with internationally recognized teaching and research. 0 0 1157617729 35710568 1377414459 SEE SCHEDULE OCurrently Houston Methodist Hospital operates 849 staffed beds in its Texas Medical Center facilities. Houston Methodist Hospital recorded 398,831 visits during 2013 which were comprised of 301,478 outpatient visits, 61,043 emergency room visits and 36,310 inpatient visits. It also performed 15,876 inpatient surgeries and 18,588 outpatient surgeries in 2013.The principal medical services available at Houston Methodist Hospital are Anesthesiology, Cardiovascular Surgery, Oral & Maxillofacial-Hospital Dentistry, Dermatology, Family Medicine, General Surgery, Internal Medicine, Atherosclerosis/Lipoprotein, Cardiology, Clinical Immunology, Gastroenterology, General Medicine, Hematology, Hypertension, Infectious Diseases, Medical Genetics, Metabolic and Endocrine Diseases, Nuclear Medicine, Oncology, Pharmacology, Pulmonary Diseases, Renal Diseases, Rheumatology, Neurophysiology, Neurosurgery, Obstetrics and Gynecology, Ophthalmology, Orthopedic Surgery, Otolaryngology-Head & Neck Surgery, Pathology, Pediatrics, Physical Medicine and Rehabilitation, Plastic Surgery, Psychiatry, Radiology, Radiotherapy, and Urology. Houston Methodist Hospital also offers a range of additional patient services, including ambulatory surgery, a blood donor center, diabetes treatment in a dedicated inpatient unit, a rehabilitation center, a skilled nursing facility, and a broad range of preventive health care instruction, including smoking cessation, stress management, weight control, and cardiac and pulmonary rehabilitation.General outpatient services offered by Houston Methodist Hospital include audiology, speech pathology, psychiatric services, diagnostic cardiology (including nuclear cardiology, echocardiography, electrocardiography, pacemaker evaluation, and coronary catheterization), chronic renal dialysis, endoscopy, emergency services, general and diagnostic radiology (including fluoroscopy, ultrasound, mammography, myelography, CT scanning, and MRI), nuclear medicine, pathology, peripheral vascular laboratory, dermatology, physical medicine, radiotherapy, sleep studies and neurophysiologic evaluations, and surgery.Houston Methodist Hospital operates a multi-organ transplant center. Transplants being performed at present include kidney, heart, lungs, liver, pancreas, islet cell and bone marrow. Houston Methodist Hospital performed the first islet cell transplant in Texas of liver cells from a donor's pancreas to the liver of a diabetic patient resulting in donor cells producing insulin.Houston Methodist Hospital responds to the community's needs not only through the provision of medical care, but also through education of health professionals and patients, community health education, donations to health care related events and other services, and medical and health research. 1157617729 1 1 0 1 0 0 0 0 0 1 1 0 0 1 1 1 0 1 0 0 1 0 0 0 0 0 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 1 1 1 1 0 1 X 1188 0 1 8486 1 1 1 1 BR EZ ID IS KS MY PL TH TU TW DA RP CH CO EG HU PE 0 0 0 0 0 0 0 0 X 23 21 0 0 0 0 0 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 X Edward L Tyrrell FACHE 8326676160 6565 Fannin GB240 Houston TX 77030 X Eight OfficerDir-see Methodist Hospital Group Return-Schedule O 6.30 4.40 X X 1662154 0 46884 Fifteen Directors-see Methodist Hospital Group Return-Schedule O 1.70 7.30 X 92206 199403 35501 One Officer-see Methodist Hospital Group Return-Schedule O 40.00 8.00 X 811733 0 58568 Four Key Employees-see Methodist Hospital Group Return-Schedule O 37.80 12.30 X 2724409 0 190607 Three Highest Pd Employees consolidated w Meth Hospital Grp 50.00 0.00 X 1643477 0 146301 6933979 199403 477861 519 0 1 0 Four Contractors-consolidated with Methodist Hospital Group Houston TX 77030 See explanation in Schedule O and detail 52049696 120 10355205 10355205 Patient Care Services 900099 1355670910 1355670910 Related Org. Rent 531390 21814240 21743549 70691 1377485150 13590867 13590867 1504 1504 2135639000 35364 2133395544 294530 2243456 -259166 1984290 1984290 Other Income 900099 22188676 300000 21888676 Patient Food Services 900099 9166529 8997 9157532 Patient Parking 812940 9153035 9153035 52166 52166 40560406 1443977422 1377414459 379688 55828070 35700568 35700568 10000 10000 7611243 199403 7411840 415717045 347033306 68683739 20257275 15637617 4619658 86997276 66072378 20924898 30568544 25430478 5138066 9175720 9175720 576000 576000 490115 490115 10811000 10811000 134745591 128972698 5772893 14114049 1460923 12653126 36009691 24687452 11322239 29524650 22311916 7212734 22347336 21244393 1102943 2438914 1509729 929185 556262 365572 190690 15508470 15508470 96398501 70589053 25809448 11291602 11291602 Medical Supplies 298711856 298557315 154541 Prof. Services (Net) 105405184 97118178 8287006 Property Taxes 1499748 1499748 Intercompany Expenses 928871 716750 212121 1387395511 1157617729 229777782 0 54381811 71248462 196588957 203851145 20989934 22555743 31090014 29755206 2243063847 1253912795 979267026 989151052 2887948389 3581794056 19591309 19591309 978674720 788377865 5168532160 5706324838 249063532 293081569 1641584343 1542292557 69386827 65456751 1960034702 1900830877 X 3208497458 3805493961 3208497458 3805493961 5168532160 5706324838 X 56581911 531461876 8952716 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 490115 490115 1157127614 1157617729 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 523844 812880 453215 490115 2280054 250000 250000 250000 250000 1000000 1500000 142361100 10379898 28310986 8599260 172452724 114050454 14531995 11436847 2341804 142361100 105888889 9226495 -508641 -556289 114050454 82721284 20659008 8564737 -6056140 105888889 61269374 13855093 11116253 -3519436 82721284 0.00000 0.72920 0.27080 0 1 1 56588356 93914335 150502691 1204096078 550186301 653909777 888465078 703726494 184738584 989151052 Due from Affiliates 740155024 Construction in Progress 44433950 Deposits and Miscellaneous Receivables 3058246 Deferred Financing Costs 730645 788377865 Reserve for Contingencies 58456750 Asset Retirement Obligation 7000001 65456751 X Part V, Line 4: Houston Methodist Hospital Foundation, a related organization of The Methodist Hospital doing business as Houston Methodist Hospital, holds permanently restricted net assets which consist of 77 individual endowment accounts. Unless otherwise directed by the donor, gifts received for endowment accounts are invested consistent with Houston Methodist Hospital's approved investment policy. Unless otherwise directed by the donor, the Foundation has a policy of annually appropriating a certain percentage of each endowment account, which is then available to be spent consistent with donor intent. In order to preserve the real value of a donor's gift and to sustain funding consistent with donor intent, the annual appropriation rate is set to strike a reasonable balance between long-term objectives of preserving and growing each endowment fund for the future and providing stable, year-to-year appropriation amounts. Part X, Line 2: Houston Methodist Hospital's financial statements are included in the consolidated financial statements of Houston Methodist (HM), which are audited by an independent accountant. HM did not recognize any adjustments related to uncertain tax positions as of December 31, 2013. EAST ASIA AND THE PACIFIC 0 0 PASSIVE INVESTMENT 17982571 EUROPE 0 0 PASSIVE INVESTMENT 16591928 MIDDLE EAST AND NORTH AFRICA 0 0 PASSIVE INVESTMENT 26548400 SOUTH AMERICA 0 0 PASSIVE INVESTMENT 10150061 0 0 0 0 0 0 71272960 0 71272960 0 0 0 0 0 0 1 1 1 X 1 X 1 0 1 1 28781974 0 28781974 0.02070 46303600 62008123 -15704523 0.00000 162966 37731 125235 0.00010 75248540 62045854 13202686 0.02080 41072805 10522474 30550331 0.02200 94673292 37069143 57604149 0.04150 34796295 0 34796295 0.02510 170542392 47591617 122950775 0.08860 245790932 109637471 136153461 0.10940 1 8218378 303693719 385606290 -81912571 X 1 1 1 1 Houston Methodist Hospital 6565 Fannin Houston TX 77030 www.houstonmethodist.org 000124 X X X X Skilled Nursing Facility, Psych, Rehab Units Houston Methodist Hospital 1 1 X X X X X X X X X 13 1 1 1 X see Part V, Section C for Website address X X X X X X X X X 0 0 1 1 200.000000000000 1 400.000000000000 1 X X X 1 1 X X X 1 0 1 X 0 0 Houston Methodist Hospital Part V, Section B, Line 3: General Note:The Methodist Hospital is doing business as Houston Methodist Hospital. Houston Methodist as a system, is represented as Houston Methodist.Part V, Section B, Line 3:Engaging the Broad Interests of the CommunitySecondary data sources were analyzed to identify persons who represent the broad interests of the community, including those with special knowledge of or expertise in public health. These key stakeholders were then interviewed for their opinions and expertise. The following three sections describe how input from persons with special knowledge or expertise in public health, state and local health departments, and leaders or representatives for underserved, minority, low income, populations or populations with chronic disease was accounted for during this CHNA process1.0 Accounting for the Input of Persons with Special Knowledge or Expertise in Public HealthMeetings were held between representatives of the Community Benefits Department and persons with special knowledge of public health and the community from June to August 2013. Meetings were conducted in person or by phone. Persons with special knowledge of public health and the Houston Methodist Hospital community included an academic from The University of Texas School at Austin School of Biological Sciences, academics from the Institute for Health Policy at The University of Texas Health Science Center School Public Health, an academic from the Kinder Institute for Urban Research at Rice University, representatives from the Harris County Health Care Alliance, a representative from the Harris County Medical Society, representatives from the United Way and county affiliates, a representative from the Houston Methodist Hospital department of Care Management and Social Work, and a representative from Houston Methodist Hospital Operating Division. Through these meetings, recommendations were received from persons representing the broad interests of the community, requested and received recent datasets and publications, received consultation for methodologies used in this community health needs assessment, and identified potential health needs currently not being addressed in the Houston Methodist Hospital community.2.0 Organizational InputDuring the course of engaging the broad interests of the community, representatives from state, regional, and city health departments as well as organizations involved in health care were engaged. Meetings included representatives from the Department of State Health Services Center for Health Statistics, the Health Service Region 6/5 South office, Regional Health Partnership Plan Regions 2, and the Houston Department of Health and Human Services. During these meetings, recent datasets, publications and representatives' perspectives on community health needs were received. 3.0 Community Leaders and RepresentativesInput from community leaders and representatives of medically underserved populations, low income populations, minority populations, and populations with chronic disease needs was also collected through phone interviews. Participants were asked the following questions:1. What community does your organization serve/represent?2. What does a healthy community mean for your community?3. What are current barriers to a healthy community in your community?4. What are the top three health needs of the community you serve?5. Are you experiencing any significant change in client population? 6. Is there a health need in your community that's not self-evident?Community leader input was included in the analysis of primary and secondary data in order to identify community needs and barriers, as well as establishing community priorities. Houston Methodist Hospital Part V, Section B, Line 4: Houston Methodist Hospital consulted with Methodist Health Centers and Houston Methodist San Jacinto Hospital.Houston Methodist Hospital:Part V, Section B, Line 5a;Houston Methodist Hospital's community health needs assessment can be found at www.houstonmethodist.org/workfiles/community_benefits_2013b.pdf. Houston Methodist Hospital Part V, Section B, Line 5d: The CHNA was also made available via email to specific distribution lists that included members of the Harris County Healthcare Alliance and the organization's partners. This email list had more than 200 contacts. Houston Methodist Hospital Part V, Section B, Line 7: Below, are listed the specific needs within our identified umbrella of needs that Houston Methodist will not be specifically addressing due to either being out of the scope of service for this health care facility and/or due to already established community programs and resources that target the non-addressed needs. Those needs that will not be specifically addressed are: - Accidents - Communicable DiseasesAll priorities that are being addressed are aligned with the strategic priorities of Houston Methodist Hospital and our community partners. Houston Methodist Hospital Part V, Section B, Line 14g: Houston Methodist Hospital provides notice of charitable assistance using a variety of means. A notice is published in the Patient Guide provided to patients at the time of check-in which informs patients that a copy of our financial assistance policies can be viewed by calling the customer service line. This notice is also displayed on signs in each check-in lobby area. The notice to contact customer service is also available on the hospital's website. Houston Methodist Hospital Part V, Section B, Line 16e: Houston Methodist Hospital does not take any actions (e.g., reporting to credit agency, lawsuits, liens on residences, body attachments nor any other similar actions) against an individual. Houston Methodist Hospital Part V, Section B, Line 20d: Houston Methodist Hospital charges FAP-Eligible patients the same as all other patients, however, a discount is provided in accordance with the financial assistance policy. This discount is greater than the discount provided to non- FAP-Eligible patients. Part I, Line 3c: General Note:The Methodist Hospital is doing business as Houston Methodist Hospital. Houston Methodist as a system, is represented as Houston Methdodist.Part I, Line 3c:Houston Methodist Hospital uses Federal Poverty Guidelines (FPG) and other information to determine eligibility for providing free care and discounted care to low income individuals. Part I, Line 6a: Houston Methodist (the system), Houston Methodist Hospital is the flagship hospital of the system, prepares an annual community benefit report which is made available to the public. This report includes charity care and community benefits provided by Houston Methodist Hospital and four, other related acute care community hospitals in Harris County and in neighboring Fort Bend County, Texas. Part I, Line 7: The costing methodology used to calculate the amounts reported in the Table in Part I, Lines 7a thru 7c, was a cost to charge ratio derived from Worksheet 2 (Ratio of Patient Care Cost to Charges), as provided in the instructions to Form 990 Schedule H. The costing methodology for lines 7f thru 7i was based on actual expenditures. Part I, Line 7g: Houston Methodist Hospital has not reported any subsidized health services in Part I, line 7(g).Part II:Houston Methodist Hospital has not reported any community building activities in Part II, lines 1 - 10. Part III, Line 2: The costing methodology used in determining the amount of bad debt expense (at cost) reported on line 2 (no amount was reported on line 3) was derived from applying the ratio of patient care cost to charges (from Worksheet 2, line 11) to bad debt attributable to patient accounts. Part III, Line 4: The text of the footnote that describes bad debt expense from the audited consolidated financial statements of Houston Methodist, which includes Houston Methodist Hospital, is as follows:Uncollectible, uncompensated care generally represents standard charges that are unrealizable due to an unwillingness to pay by those responsible for payment (bad debt). Uncollectible, uncompensated care is reported as a deduction from gross patient revenue. Part III, Line 8: Medicare allowable costs were derived from Houston Methodist Hospital's filed Medicare Cost Reports for the year ended December 31, 2013. The entire Medicare shortfall ($81.9 million) as reported in Part III, line 7, as well as the unreimbursed cost of the Medicare managed care program ($22.6 million), and TRICARE programs ($2.1 million ), should be treated as a community benefit, since these shortfalls, or subsidies, reduce the federal government's burden in providing health care to Medicare beneficiaries. Part III, Line 9b: Houston Methodist has a written bad debt collection policy; however, no collection efforts are put forth for patients who are known to qualify for financial assistance under the charity care policy. Part VI, Line 2: Houston Methodist utilized several different methods to identify its Community Health priorities (health care needs) of the communities it serves. These methods include but are not limited to the review of the Texas Institute of Health Policy research community data; Harris County Public Health & Environmental Services community data; Texas State Data Center and Office of the State Demographer; Texas Department of State Health Services; Texas Cancer Registry; Center for Disease Control and Prevention; community advisory group committee reports for nonprofit clinics and agencies (e.g., Harris County Healthcare Alliance Primary Health Needs Assessment); Texas Department of Public Health selected health data; and community health status report for Harris, Liberty, Fort Bend, Chambers, Brazoria, Galveston and Montgomery counties. Additionally, Houston Methodist performs an annual Community Health Needs Assessment that evaluates the population of Houston Methodist Hospital service area by looking at demographics, current health characteristics in the community and access to healthcare. Resources used to assess the health priorities for the Community Health Needs Assessment include but are not limited to Behavioral Risk Factor Surveillance System; The State of Health 2012; Health of Houston Survey and many other sources. Part VI, Line 3: Financial Assistance is provided in multiple locations within Houston Methodist; at the point of registration, during case management and at the time of collections post discharge. Every check-in location has information posted in both English and Spanish stating how the patient can access financial assistance.Additionally, this information is posted on the Houston Methodist website and is included in the patient guide provided to the patient at the time of registration. Houston Methodist financial counselors actively seek all uninsured inpatients and outpatients with scheduled services for a personal visit. During these visits, the financial counselors will screen the patient for financial assistance and will provide the patient with the financial assistance application. The patient will then be provided a list of resources with contact information should the patient require further assistance in completing the application.Houston Methodist utilizes an eligibility partner to work closely with patients to qualify for State and Federal assistance programs (e.g., Medicaid, SCHIP, Crime Victims, etc.). This eligibility partner will meet with all uninsured inpatients to discuss State and Federal assistance programs; where the patient is not eligible for these programs, Houston Methodist's internal financial assistance program is introduced.Houston Methodist's case management unit works closely with the patient during patient discharge management to ensure the patient is introduced to all resources that may be needed post discharge (e.g., home health, skilled nursing, etc.). The case management unit works with the patient to qualify the patient and to gain access to these resources. Additionally, the case management unit works closely with the financial counselors when the patient is identified as having a need for financial assistance.Houston Methodist's patient accounting unit works closely with all uninsured patients post discharge during the billing and collections process. Houston Methodist's collections personnel will verbally screen patients for financial assistance during collection calls; where applicable, the patient will be sent a financial assistance application either in English or Spanish. Additionally, all billing statements provide the patient with a phone number for customer service to obtain payment options. Houston Methodist utilizes outside collection assistance, for both early out and bad debt collections. Each collection agency must adhere to Houston Methodist's financial assistance policy and philosophy during all communication and collection events with Houston Methodist patients.Houston Methodist financial assistance application is reviewed periodically; additionally, Houston Methodist personnel are provided with educational inservices in the administering of the financial assistance policy as needed. Part VI, Line 4: Houston Methodist Hospital is a Texas non-profit corporation which owns and operates a tertiary care hospital and related medical office buildings, research, outpatient and other facilities in and near the Texas Medical Center in Houston, Texas. Houston Methodist Hospital's primary services area is comprised of 8 counties - Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery and Waller with a population estimated at more than 6.3 million for 2014. Harris County has the largest population with an estimated 4.4 million as of January, 2014. From 2010 to 2014 the population has increased at a rate of 7%. The population is expected to grow 9% in the next five years. The specific make-up of the service area includes Caucasian 38%, Hispanic 37%, African American 16%, Asian 7% and other 2%. Economically, the average household income is $75,945. Chambers County has undergone the most growth in average household income (75%) from 2000 2014 to $84,917. Harris County, comparatively, experienced the least growth in average household income from 2000-2014 (21%) and projects a slight decrease in average household income growth to 2018 (-1%) to $72,349. Fort Bend County currently has the highest average household income at $93,471 and projects to expand to nearly $99,000 by 2018. Liberty County currently has the lowest average household income at $58,326 and projects an expansion to $59,046 in 2018- still making it the county with the lowest average household income. Examining the service area at the insurance level, the area consists of 80% insured and 20% uninsured. Part VI, Line 5: Houston Methodist Hospital, an acute care complex with 824 operating beds, 73 operating rooms, 1,862 affiliated physicians and 6,101 employees, is the flagship of Houston Methodist. Affiliated with the Texas Annual Conference of the United Methodist Church, Houston Methodist Hospital works closely with local church leaders to bring compassion and spirituality to all of its endeavors and to help meet the health needs of the community it serves. Houston Methodist Hospital's primary academic affiliates are Weill Cornell Medical College and New York Presbyterian Hospital. Houston Methodist Hospital also has affiliations with the University of Houston, Rice University, Baylor College of Medicine and others. Houston Methodist Hospital is a teaching hospital and as part of its teaching program it sponsored 239 medical residents in 33 accredited programs and 5 non-accredited programs in 2013. Governing BodyHouston Methodist Hospital is governed by a board of directors comprised of members of the community where it is located. Houston Methodist Hospital's board of directors includes members from the community as well as the system's President/CEO, Houston Methodist Hospital's medical staff president and the bishop of the Texas Annual Conference of the United Methodist Church.Community CouncilsHouston Methodist Hospital also has community involvement through advisory councils comprised of community members, including members of the Houston Methodist Board of Directors, who volunteer to create health-related programs for Houstonians. One example is the Houston Methodist DeBakey Heart & Vascular Center Council, which is a group of Houston's leaders who advise the center on how it can best serve our patients and our community. The group is comprised of opinion leaders whose experience in business and non-profit boards help shape our future direction and use of resources. One way the council directs these resources to promote the health of the community is through the Save a Life CPR/AED Training Sessions. For the last six years, the Houston Methodist DeBakey Heart & Vascular Center has partnered with the Houston Texans, American Red Cross, and Texas Arrhythmia Institute to offer mass CPR/AED training days to the Houston community. The effort is spearheaded by the DeBakey Heart & Vascular Center's council members and has successfully trained more than 3,800 individuals since its inception. Other councils include the Neurological Institute National Council and the Center for Performing Arts Medicine Advisory Council. Medical Staff ModelHouston Methodist Hospital has an open medical staff model. The open model gives patients access to physicians of all affiliations.Health EducationThe Houston Methodist Institute for Academic Medicine performs clinical and translational education with a patient-centered and interprofessional team based approach. We continually maximize the effectiveness of our innovative teaching and learning programs with evidence-based methodology grounded in educational research. This approach, combined with a collaborative environment of learners from around the globe, creates the most effective educational experience for health and translational research professionals.Houston Methodist's mission of leading medicine is grounded in a commitment to translational, interdisciplinary and transformative research and education. Our mission is to innovate in health care technology and train current and future clinicians and translational researchers in cutting edge health care advances. The Institute for Academic Medicine supports research and education programs at Houston Methodist by providing the platform technologies and research programs, administrative support, staff, and facilities that are needed to rapidly translate discoveries made in the laboratory and the clinic into new diagnostics, therapies and treatments.The Office of Continuing Medical Education provides local, national and international education concentrated in areas where our clinicians and scientists have recognized excellence and where our community has the greatest need. Since 2005, Houston Methodist Hospital has trained physicians in various medical and surgical specialties. Methodist sponsored 33 ACGME-accredited and 5 non-accredited programs in 2013. The Houston Methodist Institute for Technology, Innovation and Education (MITIE) is a comprehensive, state-of-the-art education and research center for physicians who wish to acquire new procedural skills and integrate new technologies into their practices. Its research mission is to enhance the use of image guided technology to guide procedures, incorporate robotic surgery into the image guided platform and develop new technology and procedural techniques. Houston Methodist Hospital also offers a medical laboratory science program with a 12-month track for professionals in pathology and laboratory medicine; an administrative fellowship and internship program for future health care leaders; professional development programs for nursing; a pharmacy residency program and a postgraduate residency for cardiovascular surgery physician assistants. Houston Methodist Hospital has created the Finger Fellowship Program in Sustainable Health to allow young people to experience the nexus of health science, policy, and community. This fellowship gives exceptional young people an opportunity to pursue individualized interdisciplinary research and to use that experience to lead improvements in health at the national, state or local level.Medical ResearchThe Houston Methodist Research Institute, a subsidiary of Houston Methodist Hospital, was established in 2004 to conduct essential translational research. In 2013 it was home to 270 principal investigators and credentialed researchers, 1,300 staff and trainees, and more than 640 ongoing clinical trials. The Houston Methodist Research Institute is directly tied to clinicians and patients to help move the best in medical technology to the patient faster - for better prevention, diagnosis and treatment of disease. The Houston Methodist Research Institute is one way Houston Methodist Hospital integrates its services, by bringing the research conducted in the laboratory to the patient's bedside. The discoveries made by our researchers quickly filter down to our hospitals in the form of new treatments and improved procedures.Use of Surplus FundsIn 2013 Houston Methodist Hospital, through the Houston Methodist system's external charity care program, provided a total of $34.8 million for services to the medically needy through external organizations that are already meeting the health care needs that Houston Methodist has identified as priorities. Patients qualified for our internal charity care were often identified through referrals by physicians, hospital staff, other patients and community agencies. Houston Methodist Hospital provided $28.9 million in financial assistance for internal charity care based on the IRS definition of cost.An internal charity care program provides services to the indigent at Houston Methodist Hospital and through affiliated organizations. The majority of patients who qualified for charity care were educated about the program through signs posted throughout the hospital. Other patients were referred by their physicians, hospital staff, other patients and through funded community agencies. Surplus funds are also used each year to strengthen community service outreach to support low-income and uninsured patients to help them attain access to comprehensive health care. Services provided include primary health care, emergency and routine care, immunizations, dental care, psychological and case management services, well child examinations, sick visits, health education, health screenings, well woman exams and in-kind lab services and X-rays. Houston Methodist Hospital's support allowed these organizations to enhance their services to low-income patients with diverse health needs. Methodist provided direct funding and/or in-kind services including lab tests, X-rays, immunizations, human resources consultation and other services. With Houston Methodist Hospital's support, agencies like Vecino Health Centers and Good Neighbor Healthcare Center were positioned to meet Federally Qualified Health Center designee qualifications, thereby allowing them to qualify for enhanced Medicare and Medicaid reimbursement. Programs at Houston Methodist Hospital helped improve awareness of stroke signs, risk factors and prevention through the Stride4Stroke community awareness campaign, which was in its seventh year in 2013. Programs addressed health disparities through our presence in minority communities and through outreach to women. For further information regarding what Houston Methodist Hospital is doing to benefit the community it serves, see the response to Part VI, Line 6. Part VI, Line 6: Located in the heart of the Texas Medical Center, Houston Methodist Hospital is the flagship hospital of Houston Methodist and serves patients from all over the world. Houston Methodist includes Houston Methodist Sugar Land Hospital in Fort Bend County, Houston Methodist San Jacinto Hospital in Baytown, Houston Methodist Willowbrook Hospital in northwest Houston and Houston Methodist West Hospital which opened in December 2010. Houston Methodist Hospital shares the greater mission of Houston Methodist to provide high quality, cost-effective health care that delivers the best value to the people we serve in a spiritual environment of caring in association with internationally recognized teaching and research. Houston Methodist Hospital is among the country's largest non-profit health care providers. In 2013, Houston Methodist Hospital treated 36,310 inpatients and 301,478 outpatients. It received 61,043 emergency room visits.Houston Methodist Hospital promotes the health of the community and the mission of Houston Methodist by delivering the highest quality and safest health care to our patients. Quality initiatives range from hand hygiene programs (with exceptionally good results), to patient fall and infection reduction programs. Houston Methodist Hospital was the first hospital in the Texas Medical Center to require its employees, vendors and volunteers to receive the seasonal flu shot to protect our patients, those typically most vulnerable to complications from the flu. Houston Methodist Hospital is the academic medical center in Houston Methodist, bringing the community an institution dedicated to patient care, research and education. By serving as a leading academic medical center, it provides the community quality patient care, leading research that can be quickly translated into treatments and the training of our country's future doctors. While all Houston Methodist hospitals provide quality patient care, Houston Methodist Hospital expands the vision to include research and a comprehensive residency program. Aside from promoting the health of our community by delivering exceptional leading care to our patients, Houston Methodist makes significant contributions through community benefits programs as described below.Community Benefit Activities and Health ServicesIn 2013, Houston Methodist provided $56.2 million for services to the medically needy through external organizations that are already meeting the health care needs that Houston Methodist has identified as priorities. Houston Methodist supported the following grassroots agencies across the Greater Houston area, including those communities served by our community hospitals:-Access Health -Avondale House-Baylor College of Medicine-Bering Omega Community Services-Boys and Girls Country of Houston, Inc.-Breath of Life Children's Center, Inc.-Casa De Esperanza de los Ninos, Inc.-Chinese Community Center, Inc.-CHRISTUS Home Care-El Centro de Corazon/Eastwood Health Clinic-Eye Care for Kids Foundation-Good Neighbor Healthcare Center-Harris County Clinical Services, Inc.-Healthcare for the Homeless - Houston-HOPE Clinic-Houston Area Women's Center-Interfaith Community Clinic-Krist Samaritan Centers for Counseling and Education-Legacy Community Clinic-Matagorda Episcopal Hospital Outreach Program-Northwest Assistance Ministries-San Jose Clinic-Service Organization of Greater Houston-Shalom Mobile Health Ministry-Star of Hope-The Center, Inc.-The Center for Hearing and Speech-The Rose-The Women's Home-TOMAGWA Health Care Ministries-Vecino Health CentersThis support allowed these organizations to leverage dollars and enhance their services to low-income patients with diverse health needs. Houston Methodist provided direct funding and/or in-kind services including lab tests, X-rays, immunizations, human resources consultation and other services. With Methodist's support, agencies like Good Neighbor Healthcare Center were positioned to meet Federally Qualified Health Center designee qualifications, thereby allowing them to qualify for enhanced Medicare and Medicaid reimbursement.EducationHouston Methodist Hospital's primary academic partner is Weill Cornell Medical College in New York. The two institutions share best practices and collaborate on research, education and clinical care. More than 350 Methodist physicians have Weill Cornell faculty positions, and Houston Methodist Hospital sponsors more than 250 of its own medical residents in various specialties - ranging from neurosurgery to pathology to obstetrics/gynecology - and hosts several more from other medical institutions.In addition, Houston Methodist Hospital collaborates with many other academic and medical institutions to promote the health of the community, including New York-Presbyterian Hospital, Rice University, Baylor College of Medicine, University of Houston, Texas A&M University, Texas Children's Hospital, University of Texas Health Science Center, Texas Woman's University and Prairie View A&M, among others.Community InvolvementHouston Methodist Hospital actively develops awareness initiatives, sponsorships and programs that promote health and wellness, prevention and early detection. Houston Methodist Hospital staff and volunteers can be seen at health screenings, exercise and nutrition promotions, stress management clinics and other health promotion activities throughout the year. For example, Houston Methodist Hospital participated in the Houston Methodist's fourth annual Stride4Stroke 5K Walk/Run. The walk/run is part of the Houston Methodist's community stroke awareness campaign aimed at increasing stroke awareness and education in the community. More than 2,800 employees and community participants joined this effort to raise public awareness and funds for an event that clearly has an impact on the community.Houston Methodist Concussion Center provides comprehensive services and a dedicated team of concussion specialists to educate athletes, especially student-athletes, about the importance of concussion awareness. Through the center, student athletes have access to ImPACT (Immediate, Post Concussion Assessment and Cognitive Testing) testing, at their schools or at the Concussion Center. ImPACT is the first computerized concussion evaluation system. In addition to providing clinical care, the concussion center staff educates the community about signs and symptoms, dangers and proper medical management. The Center conducts outreach activities which benefit more than 1,000 Houston-area residents monthly.The Nantz National Alzheimer Center at Houston Methodist Hospital advances research and treatment of Alzheimer's disease, one of the biggest threats to the elderly population in our country. It is projected that as many as 16 million people will have Alzheimer's by 2050. The center, dedicated to finding a cure for Alzheimer's, addresses one of the biggest health crises affecting Americans today.Houston Methodist Hospital promotes the health of the community by fulfilling Houston Methodist's mission through exceptional, high-quality patient care, education and research, affiliations with academic and medical partners for improved community health care, charity care and community involvement.Houston Methodist Hospital also cooperates with local entities to identify community needs. Members of Houston Methodist Hospital's executive team are on the boards of local organizations like the Greater Houston Health Care Alliance that advocate for educational, environmental and health care issues that affect public policy and international companies that do business in Houston.Houston Methodist's employees have a longstanding tradition of supporting efforts to improve the health and well-being of our community. Our employees donate time, talent and money to many great community causes. Continuation of Part VI, Line 6 Houston Methodist created a program called I CARE in Action, which provides employees paid time to volunteer at approved community organizations. The program encourages employees to become involved in the local communitiesHouston Methodist serves and provides the expertise and passion of Houston Methodist employees to assist others. Hospital administration also allocates hours to coordinate and support voluntary employee projects to meet specific community needs. Houston Methodist employees participated in or provided a service for the following:-United Way Campaign-employee contributions -American Heart Association's Houston Heart Walk and Stroke Continuum of Care-sponsorship; employees participated in Walk -National Multiple Sclerosis 150 Bike Tour (Houston-to-Austin)-sponsored employees participated in Bike Ride -Komen Race for the Cure-sponsorship; employees participated in Walk and volunteered-ADA Diabetes Walk-contributions/Walk-Stride4Stroke 5K Run/Walk-contributions/volunteers/Walk/Run-PAWS-corporate sponsorship-Star of Hope-donations-employees giving of their time to volunteer-Save a Life Community Heart Training Day-Houston Methodist sponsored in conjunction w/American Red Cross & Texas Arrhythmia Institute-Adopt-a-Child/Family holiday program-employee participation-gift giving and volunteer employee blood drive (donations of blood, plasma and platelets)-Career Day-Talks-employee volunteering-Houston Food Bank-Texas Medical Center Food Drive-Corporate sponsorship- employees giving of their time to volunteer -Houston Area Women's Shelter-corporate sponsorship-Medical Bridges-hospital donations, corporate sponsorship and employees volunteering their time-Habitat for Humanity-employees volunteering their time-San Jose Clinic-Art for Heart-corporate sponsorship and employees volunteering their time-DeBakey High School-African American Health Coalition-Texas Woman's University-The House of Amos-hospital donated supplies-Houston Museum of Natural Science-employees volunteering their time Houston Methodist Hospital operates a thriving volunteer program that offers members of the outside community an opportunity to participate in a number of patient-oriented activities including hospital visits; collecting and/or creating items to distribute to patients and wayfinding help for patients and families visiting the complex for doctors' appointments and tests. Identifying Community Health IssuesHouston Methodist Hospital identified its community health priorities for 2013 using several methods including, but not limited to, review of the Texas Institute for Health Policy Research community data, Texas Department of Public Health selected health data, community health status reports for Harris, Liberty, Fort Bend and Montgomery counties and community advisory groups committee reports for nonprofit clinics and agencies. The review indicated that chronic diseases, including heart disease and stroke, are acute in our service area, exceeding the overall mortality rates in Texas and peer counties. Because stroke was identified as a primary killer and health care issue for people in our region, Houston Methodist in 2006 created the Stride4Stroke initiative to raise awareness about stroke and to raise funds for community stroke education. A 5K Run/Walk each spring allows members of the community to participate alongside hospital employees. Houston Methodist has initiated community education efforts by training and providing nurse-educators to the community for public events, particularly in minority communities and for outreach to women. Houston Methodist also works to assist smaller hospitals in the community in developing their own stroke programs and achievement of Primary Stroke Center status, while we offer a venue for comprehensive stroke care to those patients from community hospitals that are not equipped to offer more than basic stroke care.Another initiative has sought to increase early detection and community awareness of cancer. Houston Methodist Hospital annually stages a Men's Health Expo for community awareness and education on men's health issues. Houston Methodist Hospital also sponsors and/or coordinates a number of events spotlighting women's health issues. Houston Methodist Hospital sponsored the Komen Race/Walk and Pink Ribbons campaign to promote breast cancer awareness as well as to communicate the importance of early detection of breast cancer. SummaryAs a system, Houston Methodist made significant contributions through its community benefits and charity care program which have been a resource for patients in the community. Based on IRS cost definitions Houston Methodist provided $205.3 million in Charity Care and Certain other Community Benefits for the year ended December 31, 2013. In addition, based on IRS cost definitions Houston Methodist provided $186.6 million in care to Medicare, Medicare Managed Care and TRICARE program beneficiaries for the year ended December 31, 2013.Part VI, line 7: TX 1 Access Health-formerly Fort Bend Family Health 400 Austin Street Richmond TX 77469 741951476 501(c)3 180000 Health Care Services Asian American Health Coalition - HOPE Clinic 7001 Corporate Dr Suite 120 Houston TX 77036 311756818 501(c)3 50000 Outpatient Clinic Avondale House 3737 Omeara Dr Houston TX 77025 741865489 501(c)3 45000 General Support Baylor College of Medicine 1 Baylor Plaza Houston TX 77030 741613878 501(c)3 10615296 Educational BeringOmega Community Service Foundation 1429 Hawthorne Street Houston TX 770063711 760589592 501(c)3 280000 Dental Services Boys and Girls Country of Houston Inc 18806 Roberts Road Hockley TX 774479327 746026198 501(c)3 20000 Mental Health Services Breath of Life Children's Center Inc 21715 Kingsland Blvd Ste 103 Katy TX 77450 760626159 501(c)3 20000 Children's Clinic Casa de Esperanza de los Ninos Inc 2911 Corder St Houston TX 77054 760105306 501(c)3 55000 Mental Health Services Chinese Community Center 9800 Town Park Dr Houston TX 77036 760067885 501(c)3 60000 Multicultural Services Christus Home Care (CHRISTUS Foundation for HealthCare) 2045 Space Park Dr 185 Houston TX 770586306 746074210 501(c)3 583502 Home Care Services El Centro de CorazonEastwood Health Clinic 5001 Navigation Houston TX 77011 760442781 501(c)3 300000 Health Care Services Eye Care for Kids Foundation 9660 Hillcroft St 325 Houston TX 77096 760573182 501(c)3 35000 Children's Ophthalmology Services Good Neighbor Healthcare Center 190 Heights Blvd Houston TX 77007 204881280 501(c)3 175000 Health Care Services Harris County Clinical Services Inc 2801 Via Fortuna Suite 500C Austin TX 78746 432110434 501(c)3 16693606 Medical Laboratory Services Healthcare for the Homeless - Houston 2505 Fannin St Houston TX 77002 760647934 501(c)3 305000 Health Care Services Houston Area Women's Center 1010 Waugh Drive Houston TX 770193996 742029166 501(c)3 75000 Mental Health Services Interfaith Community Clinic 101 Pine Manor Drive Oak Ridge North TX 77385 752634623 501(c)3 55000 Dental/Health Care Services Krist Samaritan Center of Counseling & Ed 17555 El Camino Real Houston TX 770583031 760173176 501(c)3 75000 Mental Health Services Legacy Community Health Services PO Box 66308 Houston TX 772666308 760009637 501(c)3 900000 Health Care Services Matagorda Episcopal Hospital Outreach Program 101 Avenue F North Bay City TX 77414 200537948 501(c)3 50000 Dental/Health Care Services Northwest Assistance Ministries 15555 Kuykendahl Road Houston TX 770903651 760088702 501(c)3 250000 Children's Clinic Support San Jose Clinic 301 Hamilton St Houston TX 77002 766071951 501(c)3 190000 Health Care Services Service Organization of Greater Houston 2950 50th St Lubbock TX 79413 800357284 501(c)3 2555892 Health Care Services Shalom Mobile Health Ministry 2220 Broadway Houston TX 77012 760570086 501(c)3 198000 Health Care Services Star of Hope Mission 6897 Ardmore Houston TX 77054 741152599 501(c)3 25000 Community Assistance The Center for Hearing & Speech 3636 W Dallas St Houston TX 77019 746003178 501(c)3 20000 Medical & Health The Center Foundation 3550 West Dallas Houston TX 77019 741272417 501(c)3 55000 Mental Health Services The Rose 12700 North Featherwood Drive 260 Houston TX 77034 760193812 501(c)3 85000 Cancer Screening Services The Women's Home 811 Westheimer Road Houston TX 770063917 741467811 501(c)3 90000 Mental Health Services TOMAGWA Health Care Ministries 13414 Medical Complex Dr 1 Tomball TX 773753333 760280324 501(c)3 135000 Health Care Services Vecino Health Centers 424 Hahlo Street Houston TX 770203022 760622208 501(c)3 620000 Health Care Services American Heart Association PO Box 15186 Austin TX 78761 135613797 501(c)3 70000 Medical Research American Liver Foundation PO Box 940814 Houston TX 77094 362883000 501(c)3 15000 Health Care Services American Society for Investigative Pathology 9650 Rockville PikeSte E133 Bethesda MD 208143991 946079945 501(c)3 5000 Medical Research Arthritis Foundation 3120 Southwest Frwy Ste 215 Houston TX 77098 951885447 501(c)3 5000 Medical Research Association of Fundraising Professional-Greater Houston Chapter PO Box 59 Bellaire TX 77405 132590764 501(c)3 10000 Assistance Avon Walk for Breast Cancer 777 Third Ave New York NY 10017 136128447 501(c)3 5000 Medical Research Bilateral US-ARAB Chamber 2323 S Shepherd Dr Ste 1150 Houston TX 77019 320099085 501(c)6 15000 Community Service Boy Scouts of America PO Box 924528 Houston TX 772924528 741109732 501(c)3 10000 Community Service Brookwood Community 1752 FM 1489 Brookshire TX 77423 741587672 501(c)3 5000 Mental Health Services Can Care of Houston 9575 Katy Freeway Ste 428 Houston TX 77024 760305357 501(c)3 15000 Medical Research Center for Medicine After the Holocaust 7515 S Main Ste 690 Houston TX 77030 272702772 501(c)3 10000 Health Care Services The Children's Assesment Center 2500 Bolsover Street Houston TX 77005 760458780 501(c)3 5000 Health Care Services Discovery Green Conservancy 1500 McKinney Houston TX 77010 201951465 501(c)3 5000 Community Service Easter Seals (Cerebral Palsy Fund) 4500 Bissonnet Suite 340 Bellaire TX 77401 741238418 501(c)3 5000 Medical Research Faith in Practice 7500 Beechnut Ste 208 Houston TX 77074 760415986 501(c)3 5000 Medical Relief overseas First United Methodist Church 3900 Lexington Blvd Missouri City TX 77459 741720739 501(c)3 52500 Community Assistance Forge for Families 3435 Dixie Dr Houston TX 77021 760485959 501(c)3 5000 Assistance Golfers Against Cancer Inc 1700 Lake Kingwood Trail Kingwood TX 77345 760574871 501(c)3 25000 Medical Research Good Samaritan Foundation 5615 Kirby Drive Ste 610 Houston TX 77005 741235398 501(c)3 20000 Community Service Greater Houston Partnership 1200 Smith Street Suite 700 Houston TX 77002 760267896 501(c)6 14000 Community Service Harris County Healthcare 1310 Prairie Street Ste 1080 Houston TX 77002 204977662 501(c)3 50000 Health Care Services Houston Children's Chorus PO Box 66567 Houston TX 772666567 760286895 501(c)3 5000 Education Assistance Houston Hispanic Chamber of Commerce 1801 Main St Ste 890 Houston TX 77002 741935123 501(c)6 5000 Community Service Houston International Initiatives City Hall 1st Floor Bagby Houston TX 77002 800902020 501(c)3 5000 Community Service Interface-Samaritan Counseling Centers Inc 4803 San Felipe Houston TX 77045 741734082 501(c)3 10000 Mental Health Services Jewish Federation of Greater Houston 5603 S Braeswood Houston TX 770963907 741109654 501(c)3 5000 Community Service Lifeline Chaplancy Inc-Compassionate Touch Inc 1415 Southmore Blvd Houston TX 77004 202193278 501(c)3 5000 Community Service Local Infant Formula for Emergencies(LIFE) 2002 S Wayside 113 Houston TX 77023 760296548 501(c)3 5000 Baby needs for Disasters March of Dimes PO Box 932852 Atlanta GA 311932852 131846366 501(c)3 5000 Medical Research Menninger Clinic 2801 Gessner Dr Houston TX 77080 371453409 501(c)3 5000 Health Care Services MS Wheelchair Texas Foundation 3015 Richmond Ave Ste 120b Houston TX 77098 061741232 501(c)3 5000 Medical Research National Multiple Sclerosis 8111 N Stadium Dr Houston TX 77054 350984011 501(c)3 10000 Medical Research Nehemiah Center 5015 Fannin St Houston TX 77004 760437157 501(c)3 15000 Community Assistance Neighborhood Centers Inc PO Box 271389 Houston TX 77277 237062976 501(c)3 5000 Community Initiatives Nora's Gift Foundation PO Box 8350 Houston TX 772888350 621763895 501(c)3 10000 Community Assistance PAWS Houston 5201 Memorial Dr Ste 1162 Houston TX 77007 260054032 501(c)3 5000 Rehabilitative Support Reasoning Mind Inc 2000 Bering Dr Ste 300 Houston TX 77057 760662298 501(c)3 5000 Education assistance Susan G Komen Houston 5433 Westheimer Rd Ste 325 Houston TX 77056 760360372 501(c)3 20000 Medical Research The Immunization Partnership 3015 Richmond Ave Ste 270 Houston TX 77098 760695612 501(c)3 10000 Health Care Services The Joe Neikero Foundation PO Box 2876 Scottsdale AZ 852522876 421740818 501(c)3 5036 Medical Research The Living Bank PO Box 6725 Houston TX 77265 741607315 501(c)3 5000 Donor Education Texas Medical Center-Wainerdi Nurse Leadership Award 2450 Holcombe Blvd Ste 1 Houston TX 77021 741030788 501(c)3 5000 Community Service Texas Nurse Practitioners 4425 S Mopac Austin TX 78735 203277048 501(c)6 5000 Community Service TIRR Foundation 4605 Post Oak Dr Ste 222 Houston TX 77027 760185588 501(c)3 7500 Community Service University of St Thomas 3800 Montrose Houston TX 770064626 741277664 501(c)3 5000 Medical Research 72 4 Outstanding Student Nurse Scholarship 10 10000 Part I, Line 2: Prior to The Methodist Hospital's approval of a grant to a requesting organization, the following criteria must be met: (1) The requesting organization must be an organization exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code; (2) The requesting organization must provide a recognizable or demonstrable benefit to the community; (3) The mission of the requesting organization must augment the mission of The Methodist Hospital; (4) The requesting organization's mission and services should not duplicate and must not conflict with those of The Methodist Hospital. Periodic reports were reviewed to ensure the funds were used to support indigent care service and or other needs of the community. Grants to individuals: Ten nursing students, one each from ten nursing schools, are selected as recipients for a $1,000.00 scholarship per student. Students must be in good academic standing, submit documentation of excellent clinical performance, and strong recommendations from faculty members in order to be nominated for the scholarship. X 1 1 X X X X 0 1 0 0 0 0 0 1 0 Eight OfficerDir-see Methodist Hospital Group Return-Schedule O 1012902 0 460000 0 189252 0 25885 0 20999 0 1709038 0 0 0 Fifteen Directors-see Methodist Hospital Group Return-Schedule O 0 172969 0 0 92206 26434 0 16200 0 19301 92206 234904 0 0 One Officer-see Methodist Hospital Group Return-Schedule O 646131 0 140282 0 25320 0 26473 0 32095 0 870301 0 0 0 Four Key Employees-see Methodist Hospital Group Return-Schedule O 1819966 0 588551 0 315892 0 77751 0 112856 0 2915016 0 0 0 Three Highest Pd Employees consolidated w Meth Hospital Grp 1072731 0 314089 0 256657 0 63829 0 82472 0 1789778 0 0 0 Part I, Line 1a Travel for Companions: Methodist requires all employees including officers to provide written substantiation of all expenses related to their business travel through the provision of detailed receipts in order to receive approval from their direct superiors for reimbursement in accordance with our corporate policy on travel and other business expenses. In 2013, President/CEO had 1 trip approved for attendance at an out of state meeting where it was deemed appropriate by the Chair of our Board that the attendance of the President/CEO's spouse (and the related expenses for her travel to these meetings) was integral to conducting effective Methodist business at these meetings. Part I, Line 4a: Explanation: The Methodist Hospital System has a formal severance plan. Eligible employees include all staff including hourly staff up through senior vice presidents provided they work at least 20 hours per week and are not otherwise covered by a physician employment agreement. The plan only provides salary and benefits in the event an eligible employee is involuntarily terminated due to the elimination of their position or if their current position is significantly impacted by an organizational restructuring or change in requirement and a comparable position is not available within the organization. The eligible person must also sign a termination agreement in order to receive salary continuation and benefits under the plan to which they would not normally be eligible to receive under a voluntary resignation. Pursuant to Treasury Reg Section 1 6033-2(D)(5), The Methodist Hospital has elected to report information about contributions, gifts & grants, compensation and other information about Officers, Directors, Trustees, Key Employees, Former Employees, certain other highly paid employees, certain professional contractors and certain other contractors on a consolidated basis for all of the members of the group, including the parent organization, on the Group Return of Methodist Hospital Group, EIN 35-2410801. Part I, Line 4b The Methodist Hospital has a Supplemental Executive Retirement Plan, a non-qualified employer funded plan. Contributions are made annually into a tax deferred account and are considered taxable upon vesting (i.e. completion of three years of vesting service). Once vested, each year's subsequent contribution is taxable within the calendar year in which the deposit was made. Account balances cannot be accessed until retirement or termination (whichever occurs first) and may be subject to non-revocable distribution options selected upon employment. Part I, Line 7 This organization provides variable compensation opportunity through an annual management incentive plan. Executives at the Vice President level and above may be eligible to participate. The annual incentive program is based on system and operating entity level performance in the areas of quality improvement outcomes, patient satisfaction and financial performance. In addition, a portion of the payout percentage is based on goals that are specific to the participants' management roles at the division or department level including but not limited to such metrics as operating results, quality and safety improvements, customer satisfaction measures, growth and innovation initiatives. Determination of a participant's percentage of the potential bonus payout (paid as a percent of base salary) is based on whether the individual attains agreed upon goals for their area of responsibility as determined by their immediate supervisor. Schedule J, PART II Pursuant to Treasury Reg Section 1 6033-2(D)(5), The Methodist Hospital has elected to report information about contributions, gifts & grants, compensation and other information about Officers, Directors, Trustees, Key Employees, Former Employees, certain other highly paid employees, certain professional contractors and certain other contractors on a consolidated basis for all of the members of the group, including the parent organization, on the Group Return of Methodist Hospital Group, EIN 35-2410801. A Harris County Health Facilities Development Corp 521284201 41315RGV0 2008-04-10 350000000 Refunding Bonds for Series 2006B issued 5/10/06 0 0 0 B Harris County Cultural Education Facilities Finance Corporation 760337885 414009AS9 2008-08-21 257239185 Refunding Bonds for portion of Ser. 2006A issued 4/4/06 0 0 0 C Harris County Cultural Education Facilities Finance Corporation 760337885 414009AW0 2008-08-21 692760000 Refunding Bonds for portion of Ser. 2006A issued 4/4/06 0 0 0 D Harris County Cultural Education Facilities Finance Corporation 760337885 414009BQ2 2009-06-02 149993979 Ref Ser 2006C issued 5/10/06 & Ser 2008C issued 8/21/08 0 0 0 A 4050000 350000000 350000000 1 0 1 1 B 63800000 257239185 257239185 1 0 1 1 C 286480000 692760000 692760000 1 0 1 1 D 121630000 149993979 149993979 1 0 1 1 A 0 1 1 1 1 1 0.03700 0.03700 0 0 1 D 0 1 1 1 1 1 0.03700 0.03700 0 0 1 A 0 0 1 0 1 0 0 0 1 B 0 0 1 0 0 0 0 0 1 C 0 0 1 0 1 0 0 0 1 D 0 1 0 0 1 0 0 0 1 A 1 B 1 C 1 D 1 Schedule K-Part II, Line 13 (Issues A through E) All outstanding bonds of the Methodist Hospital as of 12-31-13 are refunding bonds. The Methodist Hospital assumes that Line 13 does not address refunding bonds. Part III, Line 4 (Issue D) The reported private use percentage of 3.7% has been calculated on the portion of the Series 2009A-B refunding bonds that refunded the Series 2006C bonds issued in the amount of $100,000,000. The remaining amount of the Series 2009A-B bonds that refunded bonds issued prior to December 31, 2002 in the amount of $49,993,979 were excluded from determining the reported 3.7% private use calculation for 2013. Part III, Line 4 (Issue E) The reported private use percentage of 1.8% has been calculated on the portion of the Series 2009C refunding bonds that refunded the Series 2005A bonds issued in the amount of $350,000,000. The remaining amount of the Series 2009C bonds that refunded bonds issued prior to December 31, 2002 in the amount of $236,480,000 were excluded from determining the reported 1.8% private use calculation for 2013. A Harris County Cultural Education Facilities Finance Corporation 760337885 414009BS8 2009-06-02 586480000 Ref Ser 2005A issued 1/20/05 & Ser 2008C issued 8/21/08 0 0 0 A 586480000 586480000 1 0 1 1 A 0 1 1 1 1 1 0.01800 0.01800 0 0 1 A 0 1 0 0 1 0 0 0 1 A 1 Laura Beth Nelson Daughter-G Nelson 25000 Employment 0 Form 990, Part VI, Section A, line 1 The Executive Committee consists of the officers who are members of the Board of Directors as defined in the Bylaws; the Resident Bishop; and one Physician Director. In the event of an emergency when there is insufficient time to convene the Board of Directors, the Executive Committee has and may exercise all the powers of the Board of Directors in the management of the business and affairs of the Corporation in such a manner as the Executive Committee may deem to be in the best interest of the Corporation in all cases in which specific directions have been given by the Board of Directors, provided any action which the Committee may take does not conflict with the mission of the Corporation and the policies and directives of the Board of Directors. The Chairperson of the Board of Directors, upon the calling of any Executive Committee meeting, as the first item of business, is required to state the nature of the emergency and the fact that there was insufficient time to convene the Board of Directors, which is recorded in the minutes before any action is deemed valid and on behalf of the Board of Directors. Vacancies in the membership of said Committee are filled by appointment of the Chairperson and approval by the Board of Directors. The Executive Committee meets upon the call of the Chairperson. The Committee keeps regular minutes of its proceedings and forthwith delivers by mail, facsimile, email, or in person, a written report of the same to all members of the Board of Directors. All Acts or resolutions of the Executive Committee are subject to the approval of, or revision by, the Board of Directors, but no rights of third parties are affected by any such revision. The Secretary of the Corporation acts as Secretary of the Executive Committee. Form 990, Part VI, Section A, line 7a The Texas Annual Conference of the South Central Jurisdiction of the United Methodist Church ("Conference") elects the Board of Directors. Form 990, Part VI, Section A, line 7b The Conference has the authority to approve any amendments to the following provisions of The Methodist Hospital's Bylaws or the Articles of Incorporation: i) the provision that the Conference elects all Directors of this organization from nominees recommended by the committee on Nominations of the Conference based on nominations made by the Board of Directors, (ii) the provision that a sufficient number of Directors be members of The United Methodist Church to comply with the membership requirements set forth in the Book of Discipline of The United Methodist Church, (iii) the provision that four Methodist Ministers, including the Resident Bishop be members of the Board of Directors, (iv) the provision that the Board of Directors shall consist of no more than twenty-six and no fewer than fifteen members, or (v) the provision that amend the purpose clauses (Article II and VI) of the Articles of Incorporation of the Corporation or the dissolution clause (Article VII) of the Articles of Incorporation of the Corporation. Form 990, Part VI, Section B, line 11 Management, including certain Officers, works diligently to complete the Form 990 and attached schedules ("return") in a thorough manner. The return is prepared by a Paid Preparer. Prior to filing the return, a copy of the Form 990 is made availabe to Board members (including required schedules), and management team members are available to answer any Board Members' questions. Form 990, Part VI, Section B, line 12c All Individuals serving in a significant decision making capacity complete a Conflict of Interest (COI) questionnaire annually. A comprehensive evaluation and thorough review of all disclosures is performed by a 6-member COI Committee comprised of executives, management, and staff. The results of the COI disclosures are reported to the Audit & Compliance Committee and Houston Methodist Hospital Board of Directors, including the actions being taken to protect the integrity of decision-making. In addition, disclosure results are also communicated to management and to affected committee chairs to promote transparency and to ensure that actions are taken and restrictions are imposed where appropriate. Conflicted individuals may not vote or exert self-serving influence on the disclosed matter. Form 990, Part VI, Section B, line 15 This organization follows IRS regulations as it relates to establishing a rebuttable presumption of reasonableness related to total compensation of key employees and compensated officers of the organization listed below. It has established a process that includes the following elements: A separate committee (the Board Committee) comprised of independent directors meets at least annually to review, deliberate and make recommendations to the Board as it relates to any changes in total compensation including base pay, bonus awards from incentive programs or benefits and perquisites of the CEO and other officers and some key employees (typically those who report directly to the CEO). The Board Committee establishes that no member has any conflict of interest with regard to the executive compensation arrangements being approved. The Board Committee reviews and considers information provided by an external consultant engaged to ensure it has direct access to: - Compensation information paid by comparable organizations, for functionally comparable positions. - Compensation norms in the organization's immediate locale and from other independent compensation surveys by nationally recognized independent firms that represent the organization's logical peer group; - Compensation information that includes information on base salary, incentives, benefits and perquisites for total compensation comparison purposes to ensure reasonable competitive ranking. The committee relies on the comparability data to reach consensus that its recommendations to the Board regarding executive compensation changes are reasonable and in line with this organization's overall total compensation philosophy for executive pay. The deliberation and decisions of the committee are contemporaneously substantiated. The compensation for positions held by Key Employees not included in the process above, is determined based on a thorough review of numerous compensation studies conducted by nationally recognized, independent firms that provide market data for total compensation for similar positions. The compensation information considered includes information on base salary, incentives, and benefits for total compensation purposes to ensure reasonable competitive ranking in order to meet recruitment and retention objectives that secure the talent required to contribute to organizational success. Form 990, Part VI, Section C, line 19 The governing documents (except for the Articles of Incorporation, which are on file with the Secretary of the State of Texas), conflict of interest policy, and financial statements of the organization are not made available to the general public. Form 990, Part VII, Section A Compensation of Officers, Directors, Key Employees, Highest Compensated: The Methodist Hospital has elected to report compensation for individual Officers, Directors, Trustees, Key Employees, Former Employees, and certain other highly paid employees on a consolidated basis on the Group Return of Methodist Hospital Group, EIN 35-2410801. This election is based upon Treasury Reg Section 1 6033-2(D)(5). As a result, The Methodist Hospital's three highest paid employees are consolidated with other entities within the Group to present five highest paid employees of the Group. Form 990, Part VII, Section B Highest Paid Independent Contractors: The Methodist Hospital has elected to report certain professional contractors and certain other contractors on a consolidated basis for all of the members of the group, including the parent organization, on the Group Return of Methodist Hospital Group,EIN 35-2410801. This election is based upon Treasury Reg Section 1 6033-2(D)(5). As a result, The Methodist Hospital's four highest paid contractors are consolidated with other entities within the Group to present five highest paid contractors of the Group. Form 990, Part XI, line 9: Transfer from Houston Methodist Hospital Foundation 975,684. Transfer to other Entity 7,977,032. 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