2013-02-01T09:47:58-06:00 2011-12-31 WithumSmithBrown PC 465 South St Ste 200 Morristown NJ 079606497 990 2011-01-01 223452413 KIMBALL MEDICAL CENTER % THOMAS G SCOTT CPA KIMB 7329238072 600 RIVER AVENUE LAKEWOOD NJ 08701 THOMAS R PERCELLO 2013-01-23 true 9738989494 2011 2016-02-25 16:41:14Z BARRY H OSTROWSKY 95 OLD SHORT HILLS ROAD WEST ORANGE NJ 07052 144629114 false X WWW.BARNABASHEALTH.ORG X 1996 NJ THE ORGANIZATION 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. 17 13 1338 531 131005 -270365 3304120 3893636 134795129 138124493 670236 440911 1939459 2166112 140708944 144625152 0 0 0 0 72159431 77211591 0 0 0 72581257 81307793 144740688 158519384 -4031744 -13894232 87837570 76046899 62259065 67472139 25578505 8574760 X TO 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. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT. false false 20765386 0 15329821 EXPENSES INCURRED IN PROVIDING MEDICALLY NECESSARY GENERAL SURGERY SERVICES TO ALL INDIVIDUALS REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. DURING 2011 THE ORGANIZATION SERVICED 1,645 PATIENTS FOR A TOTAL OF 7,424 PATIENT DAYS. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT. 20405789 0 7485073 EXPENSES INCURRED IN PROVIDING MEDICALLY NECESSARY PSYCHIATRIC SERVICES TO ALL INDIVIDUALS REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. DURING 2011 THE ORGANIZATION SERVICED 2,514 PATIENTS FOR A TOTAL OF 19,678 PATIENT DAYS. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT. 10882279 0 8958094 EXPENSES INCURRED IN PROVIDING MEDICALLY NECESSARY PULMONARY SERVICES TO ALL INDIVIDUALS REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. DURING 2011 THE ORGANIZATION SERVICED 1,143 PATIENTS FOR A TOTAL OF 6,532 PATIENT DAYS. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT. 90616694 0 106482510 142670148 true true false true false false false false false true false true false true false 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 false true 719 0 true 1338 true true true false false false false false false false false false false X 17 13 true false false false true true true true true false false true true true true true true true true false NJ X THOMAS G SCOTT CPA 7329238072 2 CRESCENT PLACE OCEANPORT NJ 07757 X RAYMOND SHEA 1.0 X X 0 0 0 DAVID SICKEL 1.0 X X 0 0 0 WILLIAM SMITHERS 1.0 X X 0 0 0 FRED VAN LOOY 1.0 X X 0 0 0 MOSHE BACHARACH MD 3.0 X 7400 0 0 KEN BRESSI 1.0 X 0 0 0 FRANK COCCO MD 1.0 X 0 0 0 HOWARD KAPLAN 1.0 X 0 0 0 THOMAS F KELAHER ESQ 1.0 X 0 0 0 JERRY KOKES 1.0 X 0 0 0 RABBI AARON KOTLER 1.0 X 0 0 0 REV MONSIGNOR C H LADZINSKI 1.0 X 0 0 0 STEPHEN LANE III 1.0 X 0 0 0 ERIC G LEHNES MD 15.0 X X 64919 0 0 JANE MARONEY 1.0 X 0 0 0 GERALD J PICERNO 60.0 X X 0 986112 166501 WILLIAM M SCHULMAN MD 1.0 X 0 16754 487 JOE HICKS 55.0 X 0 407254 56682 MICHAEL MIMOSO 55.0 X 0 289231 36511 THOMAS BOJKO 55.0 X 163861 0 16435 GERALD L TOFANI CPA 55.0 X 0 469539 110733 THOMAS R PERCELLO 55.0 X 424207 83484 46646 DEANNA SPERLING 55.0 X 260272 0 117159 CARYL L SINGER 55.0 X 164374 0 30455 MICHELE H SCHWEERS 55.0 X 157736 0 35040 JAMES L PEQUEEN JR 55.0 X 118899 0 29908 DEBRA SUSAN PETRACCA 55.0 X 90303 0 0 THEODORE ZALESKI MD 55.0 X 178025 0 2195 STEVEN A CULBERT MD 50.0 X 245379 0 31138 CHAIM EUGENE KAPLAN MD 50.0 X 175611 0 25659 GERALDINE SMITH 50.0 X 171695 0 25614 TANISHA KADENE TAYLOR MD 50.0 X 148409 0 30242 PATRICK WAYNE MARZANO MD 50.0 X 148396 0 11453 2519486 2252374 772858 47 false true false SBC MANAGEMENT CORPORATION 95 OLD SHORT HILLS ROAD WEST ORANGE NJ 07052 MANAGEMENT 11756284 CENTRAL JERSEY BEHAVIORAL HEALTH 1691 US HIGHWAY 9 TOMS RIVER NJ 08754 MEDICAL/MANAGEMENT 7425034 COMMUNITY MEDICAL CENTER 92 HIGHWAY 37 WEST TOMS RIVER NJ 08755 MEDICAL 1654819 OCEAN RADIOLOGY ASSOCIATES LLP 330 ROUND HILL DRIVE FREEHOLD NJ 07728 MEDICAL 1097319 APOGEE MEDICAL MANAGEMENT 2524 E CAMELBACK ROAD 1100 PHOENIX AZ 85016 MEDICAL 886125 43 727541 3078400 87695 3893636 NET PATIENT SERVICE REVENUE 541900 135797298 135797298 PHYSICIAN BILLINGS AND OTHER REVENUE 541900 2327195 2327195 138124493 320614 320614 0 0 556585 556585 556585 556585 124259 3962 120297 120297 120297 0 0 0 CORPORATE CARE 900099 890360 890360 CAFETERIA 722210 524011 524011 DAY CARE 624410 195156 131005 64151 1609527 144625152 138124493 131005 2476018 0 0 0 0 1901530 1711376 190154 0 59670505 53703452 5967053 1572908 1415617 157291 9731460 8758315 973145 4335188 3901670 433518 8017394 7215655 801739 530207 477186 53021 78152 70337 7815 12946 11652 1294 0 0 1703594 1533235 170359 1225917 1103325 122592 6845473 6160926 684547 928973 836076 92897 0 2157053 1941348 215705 94000 84600 9400 0 0 950531 855478 95053 0 3379334 3041401 337933 2752272 2477045 275227 MEDICAL SUPPLIES 18644861 16780375 1864486 0 PHYSICIAN FEES AND SALARIES 7960659 7164593 796066 0 PPE IMPAIRMENT 6695000 6025500 669500 0 CONTRACTED SERVICES 6563784 5907406 656378 0 12767643 11493580 1274063 158519384 142670148 15849236 0 2425 2610 -18823307 767722 1525674 1298577 11535036 11074405 0 0 0 0 37756132 13981952 1403789 1261108 2249573 1858339 141701676 116822918 32336178 24878758 0 0 0 0 18494737 18316091 0 0 1357333 2607337 87837570 76046899 13158435 17489093 0 0 381457 841850 8692081 0 0 0 0 0 1151984 1579314 0 0 38875108 47561882 62259065 67472139 X 25578505 8574760 0 0 0 0 25578505 8574760 87837570 76046899 X -13894232 -3109513 X X false true true X true true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false false false false true true 12946 false 12946 false LOBBYING ACTIVITIES SCHEDULE C, PART II-B; QUESTION 1H SAINT BARNABAS CORPORATION, THE PARENT ENTITY OF BARNABAS HEALTH; WHICH INCLUDES KIMBALL MEDICAL CENTER, ENGAGES IN LOBBYING EFFORTS ON A FEDERAL AND STATE LEVEL ON BEHALF OF ALL AFFILIATES WITHIN THE SYSTEM. IN ADDITION, THE ORGANIZATION 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 $12,946. 531596 531596 83637178 66273199 17363979 868750 785077 83673 55249663 48644235 6605428 1414489 1120407 294082 24878758 INVESTMENT IN AFFILIATES 1058014 F INVESTMENTS; LIMITED USE 11104477 F BOND SERIES 1998; LIMITED USE 2174600 F INTEREST IN NET ASSETS OF F FOUNDATION 3979000 F 18316091 0 PARTY PAYORS; CURRENT 1389850 PARTY PAYORS; NON-CURRENT 4586485 ACCRUED PENSION EXPENSE 9554931 DUE TO AFFILIATES; CURRENT 15650255 DUE TO AFFILIATES, NON-CURRENT 13700871 OTHER LIABILITIES 2679490 47561882 TEXT OF FIN 48 AUDITED FINANCIAL STATEMENT FOOTNOTE SCHEDULE D, PART X THE ORGANIZATION IS AN AFFILIATE of BARNABAS HEALTH ("SYSTEM"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. THE SYSTEM 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 FIN 48 FOOTNOTE BELOW IS FROM THE SYSTEM'S 2007 CONSOLIDATED AUDITED FINANCIAL STATEMENTS. IN JULY 2006, FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) INTERPRETATION NO. 48 (FIN 48), ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES, AN INTERPRETATION OF FASB STATEMENT NO. 109, ACCOUNTING FOR INCOME TAXES, WAS ISSUED. FIN 48 CREATES A SINGLE MODEL TO ADDRESS UNCERTAINTY IN TAX POSITIONS AND CLARIFIES THE ACCOUNTING FOR INCOME TAXES BY PRESCRIBING THE MINIMUM RECOGNITION THRESHOLD A TAX POSITION IS REQUIRED TO MEET BEFORE BEING RECOGNIZED IN THE FINANCIAL STATEMENTS. UNDER THE REQUIREMENTS OF FIN 48, TAX-EXEMPT ORGANIZATIONS COULD BE REQUIRED TO RECORD AN OBLIGATION AS THE RESULT OF A TAX POSITION THEY HAVE HISTORICALLY TAKEN ON VARIOUS TAX EXPOSURE ITEMS. PRIOR TO FIN 48, THE DETERMINATION OF WHEN TO RECORD A LIABILITY FOR A TAX EXPOSURE WAS BASED ON WHETHER A LIABILITY WAS CONSIDERED PROBABLE AND REASONABLY ESTIMABLE IN ACCORDANCE WITH FASB STATEMENT NO. 5, ACCOUNTING FOR CONTINGENCIES. ON JANUARY 1, 2007, THE CORPORATION ADOPTED FIN 48. THE IMPACT OF THE ADOPTION OF FIN 48 ON THE CORPORATION'S CONSOLIDATED FINANCIAL STATEMENTS IS NOT SIGNIFICANT. true true X true X true X true true true false true true 12333 21542930 12391786 9151144 0.05980 19922 25513320 22927775 2585545 0.01690 968388 968388 0.00630 32255 48024638 35319561 12705077 0.08300 48 21318 468514 885 467629 0.00310 122515 51220 71295 0.00050 4 608 3760586 3460210 300376 0.00200 400000 400000 0.00260 52 21926 4751615 3512315 1239300 0.00820 52 54181 52776253 38831876 13944377 0.09120 false 5488641 541130 48541332 58081419 -9540087 X true true 1 1 KIMBALL MEDICAL CENTER

600 RIVER AVENUE LAKEWOOD NJ 08701

X X X KIMBALL MEDICAL CENTER 1 true true 200. true 300. true X X X X X X X true true X X X X X true X X true X X X X X X true X false false 3 WOMEN'S HEALTH ASSOCIATES OCEAN COUNTY

101 PROSPECT ST SUITE 202 LAKEWOOD NJ 08701

WOMEN'S HEALTH SERVICES KIMBALL OUTPATIENT REHABILITATION SVCS

500 RIVER AVENUE LAKEWOOD NJ 08701

PHYSICAL/OCCUPATIONAL THERAPY, WOUND CARE, AUDIOLOGY KIMBALL LAB SERVICES

101 PROSPECT STREET SUITE 214 LAKEWOOD NJ 08701

LAB SERVICES ELIGIBILITY FOR DISCOUNTED CARE 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 2011 POVERTY GUIDELINES (DEPARTMENT OF HEALTH AND SENIOR SERVICES). FPG ARE INCLUDED IN THE CRITERIA FOR DETERMINING ELIGIBILITY FOR CHARITY AND DISCOUNTED CARE. COMMUNITY BENEFIT REPORT SCHEDULE H, PART I; QUESTION 6A NOT APPLICABLE. SUBSIDIZED HEALTH SERVICES SCHEDULE H, PART I; QUESTION 7G NO COSTS RELATING TO SUBSIDIZED HEALTHCARE SERVICES ARE ATTRIBUTABLE TO ANY PHYSICIAN CLINICS. PERCENT OF TOTAL EXPENSE SCHEDULE H, PART I; QUESTION 7 COLUMN (F) THE BAD DEBT EXPENSE INCLUDED ON FORM 990, PART IX, LINE 25, COLUMN (A), BUT SUBTRACTED FOR PURPOSES OF CALCULATING THE PERCENTAGE IN THIS COLUMN IS $5,488,641. CHARITY CARE AND CERTAIN OTHER COMMUNITY BENEFIT COST SCHEDULE H, PART I, QUESTION 7 WORKSHEET 2 WAS USED FOR THE COST TO CHARGE RATIO. COMMUNITY BUILDING ACTIVITIES 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. BAD DEBT EXPENSE AND HFMA STATEMENT #15 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". BAD DEBT EXPENSE SCHEDULE H, PART III, SECTION A; QUESTION 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. THE ATTACHED TEXT WAS OBTAINED FROM THE FOOTNOTES TO THE AUDITED FINANCIAL STATEMENTS OF THE SAINT BARNABAS CORPORATION. PATIENT ACCOUNTS RECEIVABLE THE CORPORATION HAS AGREEMENTS WITH THIRD-PARTY PAYORS THAT PROVIDE FOR PAYMENT AT AMOUNTS DIFFERENT FROM ITS ESTABLISHED RATES. PAYMENT ARRANGEMENTS INCLUDE PROSPECTIVELY DETERMINED RATES PER DISCHARGE, REIMBURSED COSTS, DISCOUNTED CHARGES, AND PER DIEM PAYMENTS. MANAGEMENT REGULARLY REVIEWS ACCOUNTS AND CONTRACTS AND PROVIDES APPROPRIATE CONTRACTUAL ALLOWANCES AND DISCOUNTS THAT ARE NETTED AGAINST PATIENT ACCOUNTS RECEIVABLE IN THE CONSOLIDATED BALANCE SHEETS. PATIENT ACCOUNTS RECEIVABLE ARE FURTHER REDUCED BY AN ALLOWANCE FOR DOUBTFUL ACCOUNTS. THE CORPORATION ANALYZES ITS PAST COLLECTION HISTORY AND IDENTIFIES TRENDS BY EACH OF ITS MAJOR PAYOR SOURCES OF PATIENT SERVICE REVENUE TO ESTIMATE THE APPROPRIATE ALLOWANCE FOR DOUBTFUL ACCOUNTS AND PROVISION FOR BAD DEBTS. MANAGEMENT REGULARLY REVIEWS DATA ABOUT THE MAJOR PAYOR SOURCES OF PATIENT SERVICE REVENUE IN EVALUATING THE ADEQUACY OF THE ALLOWANCE FOR DOUBTFUL ACCOUNTS. THE CORPORATION ANALYZES CONTRACTUAL AMOUNTS DUE FROM PATIENTS WHO HAVE THIRD-PARTY COVERAGE AND PROVIDES AN ALLOWANCE FOR DOUBTFUL ACCOUNTS AND A PROVISION FOR BAD DEBTS. FOR PATIENT ACCOUNTS RECEIVABLE ASSOCIATED WITH SELF-PAY PATIENTS, WHICH INCLUDES THOSE PATIENTS WITHOUT INSURANCE COVERAGE AND PATIENTS WITH DEDUCTIBLES AND COPAYMENT BALANCES FOR WHICH THIRD-PARTY COVERAGE EXISTS FOR A PORTION OF THE BILL, THE CORPORATION RECORDS A SIGNIFICANT PROVISION FOR BAD DEBTS FOR PATIENTS THAT ARE UNABLE OR UNWILLING TO PAY FOR THE PORTION OF THE BILL REPRESENTING THEIR FINANCIAL RESPONSIBILITY. ACCOUNT BALANCES ARE CHARGED OFF AGAINST THE ALLOWANCE FOR DOUBTFUL ACCOUNTS AFTER ALL MEANS OF COLLECTION HAS BEEN EXHAUSTED. CHARITY CARE THE CORPORATION PROVIDES CARE TO PATIENTS WHO MEET CERTAIN CRITERIA UNDER ITS CHARITY CARE POLICY WITHOUT CHARGE OR AT AMOUNTS LESS THAN ITS ESTABLISHED RATES (SEE NOTE 3). SINCE THE CORPORATION DOES NOT PURSUE COLLECTION OF AMOUNTS DETERMINED TO QUALIFY AS CHARITY CARE, SUCH AMOUNTS ARE NOT REPORTED AS PATIENT SERVICE REVENUE. 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: 2011 2010 -------- ------- (IN THOUSANDS) COST OF CHARITY CARE AND COMMUNITY BENEFIT PROGRAMS: - NET COST OF CHARITY CARE PROVIDED $91,800 $89,396 - UNPAID COST OF PUBLIC PROGRAMS, MEDICAID AND OTHER MEANS TESTED PROGRAMS $51,390 $37,804 OTHER PROGRAMS: - CASH AND IN-KIND DONATIONS $ 2,296 $ 1,860 - EDUCATION AND RESEARCH $40,017 $42,666 - SUBSIDIZED DEPARTMENTS $ 2,710 $ 5,601 - OTHER COMMUNITY BENEFIT $ 1,968 $ 2,092 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, 2011 AND 2010, BARNABAS HEALTH'S HOSPITALS RECEIVED DISTRIBUTIONS FROM BOTH FUNDS TOTALING $90,476 AND $85,238, RESPECTIVELY. THE RATIONALE FOR INCLUDING A PORTION OF BAD DEBT AMOUNTS AS COMMUNITY BENEFIT IS DISCUSSED IN RESPONSE TO PART III, LINE 8 BELOW. COMMUNITY BENEFIT SCHEDULE H, PART III, SECTION B; QUESTION 8 MEDICARE COSTS WERE DERIVED FROM THE 2011 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 ELIGIBLE'S." 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 EXP COLLECTION POLICY 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. FACILITY INFORMATION SCHEDULE H, PART V, SECTION B, QUESTIONS 1J, 3, 4, 5C, 6I & 7 NOT APPLICABLE. FACILITY INFORMATION SCHEDULE H, PART V, SECTION B,QUESTIONS 9,10,11H,13G,15E,16E,17E,18D,20&21 NOT APPLICABLE. FACILITY INFORMATION SCHEDULE H, PART V, SECTION B, QUESTION 19D 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. NEEDS ASSESSMENT SCHEDULE H, PART VI; QUESTION 2 KMC CONDUCTS A REVIEW OF KEY FACTOR INFORMATION ANNUALLY WHICH INCLUDES: A REVIEW OF HEALTHCARE UTILIZATION OF ITS SERVICE AREA POPULATION BY SERVICES (UROLOGY, CARDIOLOGY, OBSTETRICS, ETC.) FOR DETERMINING INCREASED OR DECREASED HEALTH NEEDS; HEALTHCARE SERVICE ESTIMATES AND FORECASTS (BOTH INPATIENT AND OUTPATIENT); ASSESSMENTS OF LOCAL DEMOGRAPHIC AND SOCIOECONOMIC INFORMATION; AND, A REVIEW OF HEALTH STATUS/NEEDS ASSESSMENTS AND STUDIES CONDUCTED BY EXTERNAL PARTIES (HEALTH RESEARCH AND EDUCATION TRUST OF NEW JERSEY, KID'S COUNT, ETC.). KMC CONDUCTS AN EXTENSIVE SERVICE AREA POPULATION PHYSICIAN NEED STUDY (BY PRIMARY AND 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 TO ASSURE RESPONSIVENESS TO IDENTIFIED COMMUNITY NEEDS. IN ADDITION, KMC WORKS WITH LOCAL PROVIDERS TO PLAN AND DISCUSS HEALTH NEEDS OF THE POPULATION. PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE 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. COMMUNITY INFORMATION SCHEDULE H, PART VI; QUESTION 4 KMC IS LOCATED IN LAKEWOOD TOWNSHIP, OCEAN COUNTY. LAKEWOOD HAS BEEN IDENTIFIED AS THE FASTEST-GROWING TOWN IN NEW JERSEY DURING THE PAST DECADE (WITH 54% GROWTH) AND IS RANKED THE 7TH MOST POPULOUS CITY IN THE STATE. OCEAN COUNTY IS THE SECOND LARGEST COUNTY IN THE STATE IN TERMS OF GEOGRAPHIC SIZE AND STATEWIDE, HAS THE SIX LARGEST TOTAL POPULATION SIZE. THE LOCATION OF KMC IS WITHIN A DESIGNATED MEDICALLY UNDERSERVED AREA/POPULATION (MUA/MUP) BY THE HEALTH RESOURCES AND SERVICE ADMINISTRATION (HRSA) BRANCH OF THE U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES. LAKEWOOD TOWNSHIP IS ALSO ONE OF THE HUBS OF ORTHODOX JUDAISM AND IS HOME TO ONE OF THE LARGEST YESHIVAS IN THE WORLD. THE LARGE ORTHODOX POPULATION COMPRISES NEARLY HALF OF THE TOWNSHIP'S POPULATION. KMC SERVES A NUMBER OF DIVERSE COMMUNITIES IN THE COUNTY. WITH A PROPORTIONALLY HIGHER MIX OF ELDERLY AND UNINSURED/UNDERINSURED. AS A RESULT, KMC SERVES MORE THAN 22% MINORITY POPULATION AND NEARLY 38% OF PATIENTS ARE OF UNDERINSURED/UNINSURED PAYOR CATEGORIES. MEDICARE COMPRISES AN ADDITIONAL 46% OF PATIENTS PAYOR CLASSIFICATION. PROMOTION OF COMMUNITY HEALTH SCHEDULE H, PART VI; QUESTION 5 COMMUNITY BUILDING ACTIVITIES UNDERTAKEN BY KMC 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. KMC PROVIDES EDUCATIONAL MATERIALS, CONDUCTS COMMUNITY HEALTH FAIRS AND HOLDS HEALTH EDUCATION SEMINARS AND OUTREACH SESSIONS FOR ITS PATIENTS AND FOR COMMUNITY PROVIDERS. PRESENTATIONS ARE PROVIDED BY PHYSICIANS, NURSES AND OTHER HEALTHCARE PROFESSIONALS. THE MAJORITY OF THE BOARD OF TRUSTEES MEMBERS ARE INDIVIDUALS WITH LOCAL BUSINESSES OR WHOM RESIDE IN THE COMMUNITY. HOSPITAL STAFF MEMBERS SERVE ON THE BOARDS OF MANY LOCAL NOT FOR-PROFIT ORGANIZATIONS AND PROVIDE OTHER FORMS OF SUPPORT (FUNDRAISING, ACTIVITY PARTICIPATION). ALL QUALIFIED PHYSICIANS ARE EXTENDED PRIVILEGES. UNDER THE DIRECTIVE OF THE SYSTEM'S CORPORATE FINANCE OFFICE, SURPLUS FUNDS ARE UTILIZED FOR CAPITAL PROJECTS TO IMPROVE SERVICES OR PURCHASE EQUIPMENT WHICH IN TURN, BENEFIT THE COMMUNITY. 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. AFFILIATED HEALTHCARE SYSTEM SCHEDULE H, PART VI; QUESTION 6 KMC 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 REFLECTED OF THAT POLICY. KMC'S SOLE CORPORATE MEMBER IS SAINT BARNABAS CORPORATION ("SBC",)A TAX-EXEMPT NEW JERSEY NON-PROFIT PARENT CORPORATION DOING BUSINESS AS BARNABAS HEALTH ("BH"). BH IS 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 SBC OR ANOTHER BH AFFILIATE CONTROLLED OR OWNED BY SBC. SAINT BARNABAS CORPORATION 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, SAINT BARNABAS CORPORATION 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. SAINT BARNABAS CORPORATION 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 ROOM 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 SAINT BARNABAS CORPORATION (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 SAINT BARNABAS CORPORATION 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. CENTER STATE PROPERTIES, INC. IS AN INACTIVE ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(2). AFFILIATED HEALTHCARE SYSTEM CONTINUED 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. CLARA MAASS HEALTH SYSTEM, INC. IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3). 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 NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. CLARA MAASS PROPERTIES, INC. IS AN INACTIVE ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(2). 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. HARVEY E. NUSSBAUM, MD RESEARCH INSTITUTE OF SAINT BARNABAS 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. THE ORGANIZATION ACTS AS A MEDICAL RESEARCH ORGANIZATION OPERATED IN CONJUNCTION WITH SAINT BARNABAS MEDICAL CENTER, A HOSPITAL DESCRIBED IN INTERNAL REVENUE CODE 170 (B)(L)(A)(III) AND 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 CONDUCTS RESEARCH IN FURTHERANCE OF SAINT BARNABAS MEDICAL CENTER'S MEDICAL EDUCATION AND TEACHING PROGRAM AND CHARITABLE PURPOSES, PROGRAMS AND SERVICES. PERIODICALLY, THE ORGANIZATION WILL ASSIST AND/OR SUPPORT FINANCIALLY SAINT BARNABAS MEDICAL CENTER IN MEDICAL RESEARCH AND DEVELOPMENT ACTIVITIES. 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 WAS THE PARENT ORGANIZATION FOR FORMER RELATED NURSING HOME FACILITIES WHICH WERE SOLD. THE NURSING HOMES PROVIDED MEDICALLY NECESSARY NURSING HOME CARE AND HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. THESE ENTITIES WERE (1) GREENBROOK MANOR, IN GREENBROOK, NEW JERSEY, (2) LLANFAIR HOUSE, IN WAYNE, NEW JERSEY, (3) CORNELL HALL, IN UNION, NEW JERSEY, AND (4) ASHBROOK, IN SCOTCH PLAINS, NEW JERSEY. 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. AFFILLIATED HEALTHCARE SYSTEM CONTINUED SCHEDULE H, PART VI; QUESTION 6 MONMOUTH 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 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. 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 MONMOUTH MEDICAL CENTER AND IS AN INTEGRAL PART OF MONMOUTH MEDICAL CENTER. 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 PALLIATIVE CARE PHYSICIANS, P.A. 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 WAS FORMED TO SUPPORT SAINT BARNABAS HOSPICE AND PALLIATIVE CARE CENTER, INC. ("HOSPICE"), A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION THAT 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, BY ENGAGING IN PATIENT CARE EDUCATION, RESEARCH AT HOSPICE, PROVIDING ADMINISTRATIVE SERVICES FOR HOSPICE, PROVIDING CLINICAL SERVICES FOR THE PATIENTS OF HOSPICE AND WORKING TO IMPROVE THE WELFARE OF INDIVIDUALS IN NEW JERSEY THE ORGANIZATION CONSTITUTES A MAJORITY OF THE ADMINISTRATIVE AND CLINICAL SERVICES PHYSICIAN PRACTICE PLANS OF HOSPICE AND IS AN INTEGRAL PART OF HOSPICE'S MEMBERSHIP WITHIN THE BARNABAS HEALTH SYSTEM. SAINT BARNABAS PHYSICIAN ASSOCIATES, P.A. IS A NOT FOR PROFIT ORGANIZATION WHICH HAS FILED AN APPLICATION FOR TAX-EXEMPTION WITH THE INTERNAL REVENUE SERVICE FOR CLASSIFICATION AS A TAX-EXEMPT ENTITY 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 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. 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 SAINT BARNABAS MEDICAL CENTER AND IS AN INTEGRAL PART OF SAINT BARNABAS MEDICAL CENTER. 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. SBHCS RESEARCH INSTITUTE, 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: - COUNTRY MANOR AT DOVER - EMTAC, INC. - IRVINGTON GENERAL HOSPITAL, INC. - IRVINGTON HOSPITAL FOUNDATION, INC. - KENSINGTON MANOR CARE CENTER - MMC AMBULATORY SURGERY CENTER, INC. - NBI HEALTH PARTNERS, P.A. - SAINT BARNABAS ASSISTED LIVING AT LAKEWOOD - UNION HOSPITAL AFFILLIATED HEALTHCARE SYSTEM CONTINUED SCHEDULE H, PART VI; QUESTION 6 FOR PROFIT BARNABAS HEALTH ENTITIES INCLUDE THE FOLLOWING: ACC PHARMACY, INC. IS A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS LIVINGSTON SERVICES CORPORATION ("LSC"). THIS ENTITY OPERATES A PHARMACY AT THE SAINT BARNABAS AMBULATORY CARE CENTER, IN LIVINGSTON, ESSEX COUNTY, NEW JERSEY AND VARIOUS OTHER LOCATIONS. THIS ENTITY WAS SOLD AT THE END OF 2011. CENTER STATE COLLECTION SERVICES, INC. IS A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS CENTER STATE HEALTH SERVICES CORPOARTION. THE ENTITY PROVIDES COLLECTION SERVICES FOR BOTH BARNABAS HEALTH ENTITIES AND NON-BARNABAS HEALTH ENTITIES. CENTER STATE HEALTH SERVICES CORPORATION A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS LSC HOLDING COMPANY, INC. THE ORGANIZATION IS LOCATED IN TOMS RIVER, OCEAN COUNTY, NEW JERSEY. THE ORGANIZATION DERIVES RENTAL INCOME AND RECEIVES FORMS K-1 INCOME FROM MEDICAL SERVICES RELATED INVESTMENT PARTNERSHIPS. 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. COMMUNITY KARE, INC. IS A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS CENTER STATE HEALTH SERVICES CORP. THE ORGANIZATION IS LOCATED IN LAKEWOOD, OCEAN COUNTY, NEW JERSEY. THE ORGANIZATION IS A HOME HEALTH AGENCY THAT PROVIDES NURSES AND NURSES AIDES TO THE HOMES OF INDIVIDUALS THAT REQUIRE ASSISTANCE. 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. LIVINGSTON SERVICES CORPORATION IS A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS LSC HOLDING COMPANY, INC. THE ORGANIZATION IS LOCATED IN SOUTH PLAINFIELD, MIDDLESEX COUNTY, NEW JERSEY. THE ORGANIZATION PROVIDES TECHNOLOGY SERVICES TO BH ENTITIES AND UNRELATED ENTITIES. IT OPERATES A "LIFELINE BEEPER" PROGRAM FOR ELDERLY INDIVIDUALS, OPERATES A PHYSICAL THERAPY PROGRAM AND CONDUCTS MEDICALLY RELATED LECTURES. LSC HOLDING COMPANY, INC. IS A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS LSC. THIS ENTITY IS THE SOLE OWNER OF ALL THE OUTSTANDING COMMON STOCK OF LIVINGSTON SERVICES CORPORATION, CENTER STATE HEALTH SERVICES, CORP. AND SBC MANAGEMENT CORPORATION. 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. MEDICAL CENTER HEALTH CARE 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 OPERATES AN AGENCY FOR TEMPORARY STAFFING SERVICES, SUCH AS NURSES AND ADMINISTRATION PRIMARILY TO BH ENTITIES AND OTHERS. NEW JERSEY HEALTH CARE SYSTEM, INC. IS AN INACTIVE FOR-PROFIT CORPORATION. PREMIUM HEALTH SYSTEMS, INC. IS A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS SBC. 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 LSC HOLDING COMPANY, INC. THE ORGANIZATION IS LOCATED IN WEST ORANGE, ESSEX COUNTY, NEW JERSEY. THIS ENTITY PROVIDES MANAGERIAL ADMINISTRATION AND SUPPORT TO BH. STATE FILING OF COMMUNITY BENEFIT REPORT 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 X X X X true true false false false false false true false GERALD J PICERNO 0 937540 0 0 0 48572 0 144405 0 22096 0 1152613 0 0 JOE HICKS 0 295508 0 72000 0 39746 0 36551 0 20131 0 463936 0 36 MICHAEL MIMOSO 0 282013 0 0 0 7218 0 19317 0 17194 0 325742 0 0 THOMAS BOJKO 149647 0 0 0 14214 0 554 0 15881 0 180296 0 0 0 GERALD L TOFANI CPA 0 302462 0 35525 0 131552 0 89845 0 20888 0 580272 0 0 THOMAS R PERCELLO 323444 70008 0 0 100763 13476 21703 3387 18638 2918 464548 89789 0 0 DEANNA SPERLING 214958 0 17910 0 27404 0 103590 0 13569 0 377431 0 0 0 CARYL L SINGER 150111 0 12999 0 1264 0 10852 0 19603 0 194829 0 0 0 MICHELE H SCHWEERS 144114 0 12913 0 709 0 10518 0 24522 0 192776 0 0 0 THEODORE ZALESKI MD 177231 0 0 0 794 0 985 0 1210 0 180220 0 0 0 STEVEN A CULBERT MD 244839 0 0 0 540 0 11568 0 19570 0 276517 0 0 0 CHAIM EUGENE KAPLAN MD 175239 0 0 0 372 0 6201 0 19458 0 201270 0 0 0 GERALDINE SMITH 153912 0 17054 0 729 0 8667 0 16947 0 197309 0 0 0 TANISHA KADENE TAYLOR MD 145220 0 3000 0 189 0 4951 0 25291 0 178651 0 0 0 PATRICK WAYNE MARZANO MD 148096 0 0 0 300 0 4426 0 7027 0 159849 0 0 0 COMPENSATION INFORMATION SCHEDULE J, PART I; QUESTION 4A THE FOLLOWING INDIVIDUALS RECEIVED A SEVERANCE PAYMENT DURING 2011. THE AMOUNTS OUTLINED HEREIN WERE INCLUDED IN EACH INDIVIDUALS 2011 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES: DEBRA SUSAN PETRACCA, $47,175 AND THOMAS BOJKO, $6,154. COMPENSATION INFORMATION SCHEDULE J, PART I, QUESTION 4B THE AMOUNT REFLECTED IN COLUMN B(III) FOR THE FOLLOWING INDIVIDUALS INCLUDES PARTICIPATION IN A BARNABAS HEALTH INTERNAL REVENUE CODE SECTION 457(F) PLAN (NON-QUALIFIED DEFERRED COMPENSATION PLAN). THE AMOUNTS OUTLINED HEREIN WERE INCLUDED IN EACH INDIVIDUAL'S 2011 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES: JOE HICKS, $36 AND THOMAS R. PERCELLO, $99,648, AS THEY WERE NO LONGER SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. THE DEFERRED COMPENSATION AMOUNT IN COLUMN C FOR THE FOLLOWING INDIVIDUALS 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 INDIVIDUALS MAY NEVER ACTUALLY RECEIVE THIS UNVESTED BENEFIT AMOUNT. THE AMOUNTS OUTLINED HEREIN WERE NOT INCLUDED IN EACH INDIVIDUAL'S 2011 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES: JOE HICKS, $15,531 AND GERALD L. TOFANI, CPA, $71,955. THE DEFERRED COMPENSATION AMOUNT IN COLUMN C FOR THE FOLLOWING INDIVIDUAL INCLUDES UNVESTED BENEFITS IN A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN ("SERP") 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 2011 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES: GERALD J. PICERNO, $134,382. COMPENSATION INFORMATION 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 2011 WHICH AMOUNTS WERE INCLUDED IN COLUMN B(II) HEREIN AND IN EACH INDIVIDUAL'S 2011 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. COMPENSATION INFORMATION SCHEDULE J, PART II, COLUMN F THE AMOUNT REPORTED IN SCHEDULE J, PART II, COLUMN F FOR THE FOLLOWING INDIVIDUAL INCLUDES VESTED BENEFITS IN AN INTERNAL REVENUE CODE SECTION 457(F) PLAN (NON-QUALIFIED DEFERRED COMPENSATION PLAN) BECAUSE THE AMOUNT WAS NO LONGER SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. THIS AMOUNT WAS TREATED AS TAXABLE INCOME AND REPORTED ON THE INDIVIDUAL'S 2011 FORM W-2, BOX 5 AS TAXABLE MEDICARE WAGES: JOE HICKS, $36. ERIN CARLY WINKELS FAMILY MEMBER OF OFFICER 50300 KIMBALL MEDICAL CTR EMPLOYEE false COMMUNITY BENEFIT STATEMENT CORE FORM, PART III, STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS BACKGROUND ========== KIMBALL MEDICAL CENTER ("KMC") IS A GENERAL MEDICAL AND SURGICAL HOSPITAL. KMC IS RECOGNIZED BY THE IRS AS AN INTERNAL REVENUE CODE SECTION 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 FOLLOWING CRITERIA OUTLINED IN IRS REVENUE RULING 69-545: 1. KMC PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUAL'S REGARDLESS OF ABILITY TO PAY, INCLUDING CHARITY CARE, SELF-PAY, MEDICARE AND MEDICAID PATIENTS; 2. KMC OPERATES AN ACTIVE EMERGENCY ROOM FOR ALL PERSONS WHICH IS OPEN 24 HOURS A DAY, 7 DAYS A WEEK, 365 DAYS PER YEAR; 3. KMC MAINTAINS AN OPEN MEDICAL STAFF, WITH PRIVILEGES AVAILABLE TO ALL QUALIFIED PHYSICIANS; 4. CONTROL OF KMC RESTS WITH ITS BOARD OF TRUSTEES AND THE BOARD OF TRUSTEES OF SAINT BARNABAS CORPORATION. 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 KMC, AS SHOWN THROUGH THE FACTORS OUTLINED ABOVE AND OTHER INFORMATION CONTAINED HEREIN, CLEARLY DEMONSTRATE THE HOSPITAL PROVIDES SUBSTANTIAL COMMUNITY BENEFIT AND THAT THE USE AND CONTROL OF KMC 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. KMC'S SOLE CORPORATE MEMBER IS SAINT BARNABAS CORPORATION ("SBC"), A TAX-EXEMPT NEW JERSEY NON-PROFIT PARENT CORPORATION DOING BUSINESS AS BARNABAS HEALTH ("BH"). BARNABAS HEALTH IS A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM CONSISTING OF A GROUP OF AFFILIATED HEALTHCARE ORGANIZATIONS. THE 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 SBC OR ANOTHER BH AFFILIATE CONTROLLED OR OWNED BY SBC. BH IS THE LARGEST MULTI-HOSPITAL SYSTEM IN NEW JERSEY PROVIDING SUBSTANTIAL COMMUNITY BENEFIT. BH CONSISTS OF FREE-STANDING ACUTE CARE HOSPITALS, A FREE-STANDING PSYCHIATRIC HOSPITAL, MEDICARE-CERTIFIED HOME HEALTH CARE AND HOSPICE PROGRAMS, MULTI-SPECIALTY AMBULATORY CARE FACILITIES, 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. SBC MAINTAINS RECORDS TO IDENTIFY AND MONITOR THE AMOUNT OF CHARITY CARE IT PROVIDES. THESE RECORDS INCLUDE THE AMOUNT OF CHARGES FOREGONE FOR SERVICES AND SUPPLIES FURNISHED UNDER ITS CHARITY CARE POLICY. PATIENT STATISTICAL INFORMATION =============================== KMC IS A 330-BED FULLY ACCREDITED NON-PROFIT ACUTE CARE HOSPITAL DEDICATED TO PROVIDING THE FINEST MEDICAL AND HEALTHCARE SERVICES TO THE RESIDENTS OF OCEAN COUNTY AND THE SURROUNDING AREAS. KMC IS LOCATED IN LAKEWOOD, OCEAN COUNTY, NEW JERSEY. KMC SERVES A DIVERSE URBAN POPULATION INCLUDING A PROPORTIONATELY HIGHER MIX OF ELDERLY AND UNINSURED/UNDERINSURED COMMUNITIES. DURING 2011, KMC SERVICED APPROXIMATELY 11,800 INPATIENTS AND JUST OVER 50,000 EMERGENCY VISITS. THE EMERGENCY ROOM IS OPEN TO ALL INDIVIDUALS 24 HOURS A DAY, 7 DAYS A WEEK, 365 DAYS A YEAR. MISSION STATEMENT ================= THE MISSION OF KIMBALL MEDICAL CENTER IS TO IMPROVE THE HEALTH OF THE RESIDENTS OF OUR COMMUNITY BY PROVIDING THE HIGHEST QUALITY PATIENT CARE, THE SAFEST ENVIRONMENT AND BY EXCEEDING THE EXPECTATIONS TO THOSE WE SERVE. WE WILL PROVIDE EXCEPTIONAL SERVICE WITH COMPASSION, DIGNITY AND RESPECT. THE VISION OF KIMBALL MEDICAL CENTER IS TO BE THE LEADER IN THE PROVISION OF HIGH QUALITY HEALTHCARE FOR OUR COMMUNITY. WE WILL ACCOMPLISH THIS WITH OUR COMPETENT AND COMPASSIONATE STAFF AND BY COLLABORATING WITH OTHERS WHO WILL COMPLEMENT AND ENHANCE THE SERVICES WE OFFER. ACCOMPLISHMENTS/MILESTONES/ RECOGNITIONS/AWARDS =============================================== - ACKNOWLEDGED BY THE AMERICAN NURSES CREDENTIALING CENTER (ANCC) WITH MAGNET RECOGNITION, THE HIGHEST HONOR GIVEN IN NURSING - RECOGNIZED IN U.S. NEWS AND WORLD REPORT'S BEST HOSPITALS (METRO AREA) - DESIGNATED PRIMARY STROKE CENTER BY THE NEW JERSEY DEPARTMENT OF HEALTH AND SENIOR SERVICES - RECIPIENT OF THE MAGNET AWARD FOR NURSING EXCELLENCE - JOINT COMMISSION ACCREDITED FOR HOSPITAL AND BEHAVIORAL HEALTHCARE - GRANTED A THREE-YEAR TERM OF ACCREDITATION IN THE AREA OF ADULT TRANSESOPHAGEAL AND ADULT TRANSTHORACIC BY THE INTERSOCIETAL COMMISSION FOR THE ACCREDITATION OF ECHOCARDIOGRAPHY LABORATORIES (ICAEL). - THREE DOCTORS AFFILIATED WITH KIMBALL MEDICAL CENTER HAVE BEEN NAMED "TOP DOCTORS OF NEW JERSEY" FOR TWO CONSECUTIVE YEARS BY CASTLE CONNOLLY MEDICAL, LTD., THE GOLD STANDARD FOR MEDICAL RATINGS RESEARCH. - RECEIVED THE GET WITH THE GUIDELINES-HEART FAILURE BRONZE QUALITY ACHIEVEMENT AWARD FROM THE AMERICAN HEART ASSOCIATION. - RECEIVED DISEASE-SPECIFIC CARE CERTIFICATION IN ACUTE CORONARY SYNDROME (ACS) FROM THE JOINT COMMISSION. THE JOINT COMMISSION'S DISEASE-SPECIFIC CARE CERTIFICATION PROGRAM, LAUNCHED IN 2002, EVALUATES CLINICAL PROGRAMS ACROSS THE CONTINUUM OF CARE AND IS CONSIDERED THE GOLD SEAL OF APPROVAL FOR HEALTH CARE QUALITY A RULL RANGE OF ULTRA-MODERN DIAGNOSTIC AND TREATMENT SERVICES ARE AVAILABLE AT KMC IN ALL MAJOR SPECIALTIES: MEDICAL-SURGICAL PROGRAMS INCLUDING LASER AND ARTHROSCOPIC SURGERY, EMERGENCY AND TRAUMA CARE, MATERNITY AND PEDIATRICS, CANCER AND DIABETES CARE, LEVEL II SPECIAL CARE NURSERY, INPATIENT DIALYSIS, REHABILITATION PROGRAMS AND OCCUPATIONAL THERAPY. CENTERS OF EXCELLENCE ===================== KMC'S RECOGNIZED MEDICAL SERVICES CENTERS OF EXCELLENCE INCLUDE BUT ARE NOT LIMITED TO THE FOLLOWING: 1. THE MOTHER-INFANT PAVILION COMMITTED TO THE HIGHEST LEVEL OF MEDICAL CARE FOR OBSTETRICAL SERVICES, THE MOTHER-INFANT PAVILION HELPS TO DELIVER OVER 1,350 OF OUR LITTLEST PATIENTS EACH YEAR. KMC PROVIDES A COMFORTABLE AND SUPPORTIVE SETTING FOR LABOR AND DELIVERY AND A PRIVATE UNIT FOR POST PARTUM CARE. OUR FACILITIES ALSO INCLUDE A FULLY-EQUIPPED OPERATING SUITE FOR CESAREAN BIRTHS, 24-HOUR ANESTHESIOLOGY AND IN-HOUSE NEONATOLOGY. KMC'S MOTHER-INFANT PAVILION HAS THE LOWEST CESAREAN-SECTION BIRTH RATE IN THE STATE OF NEW JERSEY AND ONE OF THE LOWEST IN THE NATION. KIMBALL'S LOW CESAREAN SECTION RATES ARE ATTRIBUTABLE TO THE TEAM APPROACH TAKEN TO PREGNANCY - MIDWIVES, DOCTORS, NURSES AND PRENATAL SPECIALISTS ALL WORK TOGETHER TO PRESERVE THE OPPORTUNITY FOR A NATURAL BIRTH FOR AS LONG AS POSSIBLE. 2. THE EMERGENCY DEPARTMENT AT KIMBALL MEDICAL THE EMERGENCY DEPARTMENT TREATS JUST OVER 50,000 PATIENTS ANNUALLY, UTILIZING THE MOST MODERN TECHNOLOGY COUPLED WITH A TOTAL FOCUS ON PATIENT AND FAMILY SATISFACTION. THE EMERGENCY DEPARTMENT HAS REVOLUTIONIZED HOW PATIENTS ARE TREATED IN MODERN HEALTHCARE SETTINGS BY EXPEDITING THE PROCESS WHICH PATIENTS MUST UNDERGO PRIOR TO RECEIVING MEDICAL TREATMENT. THE MAIN EMERGENCY DEPARTMENT INCLUDES 31 TREATMENT BAYS, ALL EQUIPPED WITH THE LATEST IN CARDIAC MONITORING EQUIPMENT, INCLUDING SPECIALIZED ROOMS FOR TRAUMA, ORTHOPEDICS, EAR/NOSE/THROAT, OBSTETRICS/GYNECOLOGY, PEDIATRICS, SUTURING AND PSYCHIATRIC EMERGENCIES. THE STAFF IS FOCUSED ON RESPECTING THE INDIVIDUAL NEEDS OF ALL ADULT AND PEDIATRIC PATIENTS. KMC IS A STATE-DESIGNTED PRIMARY STROKE CENTER AND JCAHO CERTIFIED CHEST PAIN CENTER AND HAS OCEAN COUNTY'S ONLY PSYCHIATRIC EMERGENCY SCREENING PROGRAM. EVERY ASPECT OF THE EMERGENCY DEPARTMENT HAS BEEN DESIGNED TO PROVIDE THE ULTIMATE IN EFFICIENCY AND COMFORT FOR PATIENTS AND THEIR FAMILIES, WHILE OFFERING THE HIGHEST QUALITY MEDICAL CARE. THIS HAS LED TO NUMEROUS RECOGNITIONS AND AWARDS FOR PATIENT SATISFACTION AND QUALITY MEDICAL CARE. 3. THE CENTER FOR WOUND HEALING EVERY YEAR, CHRONIC WOUNDS CAUSED BY DIABETES, POOR CIRCULATION AND RELATED CONDITIONS KEEP THREE TO FIVE MILLION AMERICANS FROM ENJOYING LIFE. THE CENTER FOR WOUND HEALING AND HYPERBARIC MEDICINE APPLIES PROVEN WOUND CARE PRACTICES AND ADVANCED CLINICAL APPROACHES INCLUDING HYPERBARIC OXYGEN THERAPY (HBOT) TO HELP HEAL PATIENTS SUFFERING FROM CHRONIC WOUNDS. ADDITIONALLY, OUR CENTER FREQUENTLY PARTICIPATES IN CLINICAL TRIALS UTILIZING THE LATEST WOUND CARE PRODUCTS AVAILABLE. COMMUNITY BENEFIT STATEMENT CONTINUED CORE FORM, PART III, STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS MEDICAL AND COMMUNITY SERVICES ============================== KIMBALL MEDICAL CENTER'S SERVICES INCLUDE AN ARRAY OF ADDITIONAL MEDICAL SERVICES AND PROGRAMS THAT ADDRESS THE HEALTH CARE NEEDS OF ITS COMMUNITIES, FROM DIAGNOSTIC, TO PREVENTION AND TREATMENT. ADDITIONAL MEDICAL SERVICES --------------------------- KMC HAD OVER 450 PHYSICIANS ON ITS MEDICAL STAFF DURING 2011 COMPRISED OF THE FOLLOWING SPECIALTIES: - ALLERGY/IMMUNOLOGY - ANESTHESIOLOGY - CARDIOLOGY - CRITICAL CARE MEDICINE - DENTISTRY - DERMATOLOGY - EMERGENCY MED - ENDOCRINOLOGY - FAMILY PRACTICE - GASTROENTEROLOGY - GERIATRICS - GYNECOLOGY - HAND SURGERY - HEMATOLOGY/ONCOLOGY - INTERNAL MED - INFECTIOUS DISEASE - NEONATOLOGY - NEPHROLOGY - NEUROLOGY - NEUROSURGERY - OBSTETRICS - OTOLARYNGOLOGY - OPHTHALMOLOGY - ORAL SURGERY - ORTHOPEDIC SURGERY - PAIN MANAGEMENT - PATHOLOGY - PEDIATRIC CARDIOLOGY - PEDIATRICS - PERI-NATAL MEDICINE - PHYSICAL MEDICINE & REHABILITATION - PLASTIC SURGERY - PODIATRY - PSYCHIATRY - PULMONARY MEDICINE - RADIOLOGY - RADIATION ONCOLOGY - REPRODUCTIVE ENDOCRINOLOGY - RHEUMATOLOGY - SURGERY - SURGERY-BREAST - SURGERY-COLON - SURGERY-ONCOLOGY - SURGERY-THORACIC - SURGERY-VASCULAR - UROLOGY COMMUNITY SERVICE CENTERS ------------------------- KMC 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. AS A BARNABAS HEALTH FACILITY, KIMBALL MEDICAL CENTER PRIDES ITSELF ON RECOGNIZING THE GROWING NEEDS OF THE COMMUNITY AND FULFILLING THOSE NEEDS BY PROVIDING NEW, SPECIALIZED PROGRAMS AND SERVICES. KMC OPERATES THE FOLLOWING CENTERS DESIGNED TO PROMOTE HEALTH AND HEALTH AWARENESS FOR THE COMMUNITY. - THE CENTER FOR HEALTHY LIVING OFFERS AN ARRAY OF PROGRAMS DESIGNED TO KEEP THE COMMUNITY HEALTHY THROUGH EDUCATION AND SCREENINGS. AMONG ITS AWARD WINNING PROGRAMS ARE THE CAREGIVERS EDUCATION & SUPPORT BY A LICENSED CLINICAL SOCIAL WORKER TO PROVIDE COUNSELING AND SUPPORT GROUPS. THE CENTER ALSO OFFERS DIABETES EDUCATION AND SUPPORT WHICH IS DESIGNED FOR NEWLY DIAGNOSED DIABETES AND PROVIDES EDUCATION THROUGH A SERIES OF FOUR CLASSES. THE CENTER IS ALSO HOME TO THE ARTHRITIS EDUCATION CENTER WHERE PEOPLE SUFFERING FROM ANY OF THE DEBILITATING FORMS OF ARTHRITIS CAN SEEK EDUCATION ABOUT DIAGNOSIS, TREATMENTS, NEW MEDICATIONS AND PHYSICAL THERAPY AND ALSO PARTICIPATE IN SPECIALLY DESIGNED CLASSES SUCH AS T'AI CHI, YOGA AND THE ARTHRITIS FOUNDATIONS EXERCISE PROGRAM. PARTICIPANTS IN ALL OF THE PROGRAMS AT THE CENTER FOR HEALTHY LIVING WILL EXPERIENCE ENHANCED PHYSICAL, EMOTIONAL AND SPIRITUAL HEALING THROUGH INDIVIDUAL AND GROUP PROGRAMS IN AN ENVIRONMENT WHERE THEY CAN JOIN WITH OTHERS TO LEARN AND SHARE EXPERIENCES, STRENGTH AND HOPE. - THE RECENTLY OPENED CENTER FOR HEALTHY AGING ADDRESSES THE UNIQUE NEEDS OF THE REGION'S AGING POPULATION BY OFFERING HEALTHCARE PROGRAMS THAT PROMOTE HEALTHY LIFESTYLES AND ENHANCE SENIORS' QUALITY OF LIFE. THE CENTER FOR HEALTHY AGING OFFERS A VARIETY OF UNIQUE SERVICES DEDICATED TO IMPROVING THE HEALTH AND WELL-BEING OF SENIORS, INCLUDING PROVIDING THEM WITH ACCESS TO HEALTH COACHES. THESE HEALTHCARE PROFESSIONALS ACT AS LIAISONS, ASSISTING SENIORS WITH TALKING TO THEIR DOCTORS OR FINDING A PHYSICIAN; SCHEDULING APPOINTMENTS AND ARRANGING TRANSPORTATION; AND NAVIGATING THROUGH THE KIMBALL MEDICAL CENTER HEALTH SYSTEM TO ENSURE THEY RECEIVE THE BEST, MOST COMPREHENSIVE CARE POSSIBLE. THE GOAL OF THE CENTER FOR HEALTHY AGING IS TO PROVIDE OLDER ADULTS WITH EASY AND CONVENIENT ACCESS TO A VARIETY OF HEALTHCARE SERVICES IN THEIR OWN COMMUNITY AND TO ENCOURAGE THEM TO LIVE INDEPENDENTLY, CONFIDENTLY AND HAPPILY. IN KEEPING WITH THE NEW CENTER FOR HEALTHY AGING'S MISSION, KIMBALL MEDICAL CENTER CONTINUES TO OFFER A VARIETY OF EDUCATIONAL, SCREENING AND SUPPORT PROGRAMS WHICH INCLUDE DIABETES MANAGEMENT, NUTRITIONAL COUNSELING AND DIABETES SUPPORT GROUPS. OVER 2,500 INDIVIDUALS PARTICIPATED IN MEDICAL SCREENINGS AND EDUCATIONAL PROGRAMS AT KMC IN 2011. MEDICAL SCREENINGS ------------------ KMC PROVIDES NUMEROUS MEDICAL SCREENING PROGRAMS TO THE COMMUNITY IN FURTHERANCE OF ITS TAX-EXEMPT PURPOSES INCLUDING, BUT NOT LIMITED TO, THE FOLLOWING: - SKIN CANCER SCREENINGS - BLOOD PRESSURE SCREENINGS - GLUCOSE SCREENINGS - SKIN CANCER SCREENINGS COMMUNITY EDUCATION ------------------- KMC OFFERS A FULL ARRAY OF WELLNESS PROGRAMS, INCLUDING NUMEROUS LECTURES, SEMINARS AND OTHER EDUCATIONAL PROGRAMS TO THE COMMUNITY IN FURTHERANCE OF ITS TAX-EXEMPT PURPOSES INCLUDING, BUT NOT LIMITED TO, THE FOLLOWING: 1. SELF DEFENSE FOR OLDER ADULTS 2. EXERCISE 3. TOBACCO DEPENDENCE TREATMENT PROGRAM 4. VARIOUS SEMINARS 5. WOMEN'S HEALTH - KEEPING YOUR HEART HEALTHY - ADVANCEMENTS IN OBSTETRICS & GYNECOLOGY - THE IMPORTANCE OF MAMMOGRAPHY - INNOVATIONS IN BREAST SURGERY 7. OTHER SUPPORT GROUPS - CAREGIVER'S - DIABETES - BEREAVEMENT - GRANDPARENTS - SMOKING CESSATION 8. CHILDBIRTH PREPARATION AND PARENTING CLASSES - BREASTFEEDING EDUCATION - GRANDPARENTING - INFANT AND CHILD CPR - LAMAZE REFRESHER SERIES - PRENATAL AND POSTPARTUM EXERCISE - PARENTING INSIGHTS - PREPARED CHILDBIRTH SERIES - PREPARED CHILDBIRTH/LAMAZE SERIES - SIBLING CLASS - WOMEN'S RESOURCE LIBRARY 9. CPR AND FIRST AID INSTRUCTION - BASIC LIFE SUPPORT - ADVANCED CARDIAC LIFE SUPPORT - PEDIATRIC ADVANCED CARDIAC LIFE SUPPORT - NEONATAL RESUSCITATION - AUTOMATED EXTERNAL DEFIBRILLATOR (AED) TRAINING - FIRST AID - HEART SAVER - INSTRUCTOR DEVELOPMENT 10. INSTRUCTIONAL CLASSES AND PROGRAMS - CPR - FIRST AID - MOMS IN MOTHERS: PRENATAL AND POSTPARTUM EXERCISE - DEFENSIVE DRIVING - LOOK GOOD, FEEL BETTER - YOGA - TAI CHI THE HOSPITAL'S ONGOING EFFORTS TO EDUCATE THE COMMUNITY WITH RESPECT TO GENERAL HEALTH AWARENESS, ISSUES AND PUBLIC SAFETY, HEALTH CARE 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 VACINES UPON THEIR APPROVAL. ALL PATIENTS ARE ASKED REGARDING LIVING WILLS AND ADVANCED DIRECTIVES. OTHER PROGRAM SERVICES CORE FORM, PART III; LINE 4D EXPENSES INCURRED IN PROVIDING VARIOUS OTHER MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. PLEASE REFER TO THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT INCLUDED IN SCHEDULE O. GOVERNANCE, MANAGEMENT, AND DISCLOSURE CORE FORM, PART VI, SECTION A; QUESTION 2 DEANNA SPERLING AND CARYL L. SINGER - BUSINESS RELATIONSHIP DISCLOSURE INFORMATION CORE FORM, PART VI, SECTION A; QUESTIONS 6 & 7 SAINT BARNABAS CORPORATION ("SBC") IS THE SOLE MEMBER OF THIS ORGANIZATION. SBC 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. DISCLOSURE INFORMATION CORE FORM, PART VI, SECTION B; QUESTION 11b THE ORGANIZATION IS AN AFFILIATE OF BARNABAS HEALTH ("SYSTEM"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. SAINT BARNABAS CORPORATION IS THE PARENT ENTITY OF THE SYSTEM. THE ORGANIZATION'S FEDERAL FORM 990 WAS PROVIDED TO EACH VOTING MEMBER OF THE ORGANIZATION'S GOVERNING BODY (ITS BOARD OF TRUSTEES) PRIOR TO THE FILING WITH THE IRS. IN ADDITION THE SAINT BARNABAS CORPORATION AUDIT COMMITTEE ASSUMED THE RESPONSIBILITY TO OVERSEE AND COORDINATE THE FEDERAL FORM 990 PREPARATION AND FILING PROCESS FOR ALL TAX-EXEMPT AFFILIATES OF THE SYSTEM BUT DID NOT PERFORM AN ACTUAL REVIEW OF EACH AFFILIATE FEDERAL FORM 990 WITH THE EXCEPTION OF SAINT BARNABAS CORPORATION. AS PART OF THE ORGANIZATION'S FEDERAL FORM 990 TAX RETURN PREPARATION PROCESS THE ORGANIZATION HIRED A PROFESSIONAL CPA FIRM WITH EXPERIENCE AND EXPERTISE IN BOTH HEALTHCARE AND NOT-FOR-PROFIT TAX RETURN PREPARATION TO PREPARE THE FEDERAL FORM 990. THE CPA FIRM'S TAX PROFESSIONALS WORKED CLOSELY WITH THE ORGANIZATION'S FINANCE PERSONNEL AND 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 THE FILING WITH THE IRS. DISCLOSURE INFORMATION 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. DISCLOSURE INFORMATION CORE FORM, PART VI, SECTION B; QUESTION 15 THE ORGANIZATION IS AN AFFILIATE OF BARNABAS HEALTH; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. SAINT BARNABAS CORPORATION ("SBC") IS THE PARENT ENTITY OF BARNABAS HEALTH. SBC'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 SBC'S SENIOR MANAGEMENT, INCLUDING THE RETIRED CHIEF EXECUTIVE OFFICER, PRESIDENT/CHIEF EXECUTIVE OFFICER, BOTH THE RETIRED AND CURRENT EXECUTIVE VICE PRESIDENT OPERATIONS AND EXECUTIVE VICE PRESIDENT/CHIEF FINANCIAL OFFICER. THE COMPENSATION COMMITTEE ALSO REVIEWS THE COMPENSATION AND BENEFITS OF OTHER KEY OFFICERS AND KEY EMPLOYEES OF BARNABAS HEALTH; INCLUDING, WITHOUT LIMITATION, THE EXECUTIVE DIRECTORS OF BARNABAS HEALTH HOSPITALS AND MEDICAL CENTERS. THE COMPENSATION 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, INCLUDING THE RETIRED CHIEF EXECUTIVE OFFICER, PRESIDENT/CHIEF EXECUTIVE OFFICER, BOTH THE RETIRED AND CURRENT EXECUTIVE VICE PRESIDENT OPERATIONS AND EXECUTIVE VICE PRESIDENT/CHIEF FINANCIAL OFFICER. THE THREE FACTORS WHICH MUST BE SATISFIED IN ORDER TO RECEIVE THE REBUTTABLE PRESUMPTION OF REASONABLENESS ARE THE FOLLOWING: 1. THE COMPENSATION ARRANGEMENT IS APPROVED IN ADVANCE BY AN "AUTHORIZED BODY" OF THE APPLICABLE TAX-EXEMPT ORGANIZATION WHICH IS COMPOSED ENTIRELY OF INDIVIDUALS WHO DO NOT HAVE A "CONFLICT OF INTEREST" WITH RESPECT TO THE COMPENSATION ARRANGEMENT; 2. THE AUTHORIZED BODY OBTAINED AND RELIED UPON "APPROPRIATE DATA AS TO COMPARABILITY" PRIOR TO MAKING ITS DETERMINATION; AND 3. THE AUTHORIZED BODY "ADEQUATELY DOCUMENTED THE BASIS FOR ITS DETERMINATION" CONCURRENTLY WITH MAKING THAT DETERMINATION. THE 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 REVIEWING OF HOSPITAL AND HEALTHCARE SYSTEM EXECUTIVE COMPENSATION AND BENEFITS THROUGHOUT THE UNITED STATES. THIS STUDY USED COMPARABLE GEOGRAPHIC AND DEMOGRAPHIC MARKET DATA INCLUDING BUT NOT LIMITED TO SIMILARLY SIZED HEALTHCARE SYSTEMS AND HOSPITALS, # OF LICENSED BEDS AND NET PATIENT SERVICE REVENUE. THE COMMITTEE ADEQUATELY DOCUMENTED ITS BASIS FOR ITS DETERMINATION THROUGH THE TIMELY PREPARATION OF WRITTEN MINUTES OF THE COMPENSATION COMMITTEE MEETINGS DURING WHICH THE EXECUTIVE COMPENSATION AND BENEFITS WAS REVIEWED AND SUBSEQUENTLY APPROVED. THE ACTIONS OUTLINED ABOVE WITH RESPECT TO THE COMMITTEE AND THE ESTABLISHMENT OF THE REBUTTABLE PRESUMPTION OF REASONABLENESS APPLIES TO CERTAIN SBC SENIOR MANAGEMENT PERSONNEL, INCLUDING, BUT NOT LIMITED TO, THE RETIRED CHIEF EXECUTIVE OFFICER, PRESIDENT/CHIEF EXECUTIVE OFFICER, BOTH THE RETIRED AND CURRENT EXECUTIVE VICE PRESIDENT OPERATIONS, EXECUTIVE VICE PRESIDENT/CHIEF FINANCIAL OFFICER AND THE EXECUTIVE DIRECTORS OF THE BARNABAS HEALTH HOSPITALS AND MEDICAL CENTERS. 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. DISCLOSURE INFORMATION CORE FORM, PART VI, SECTION C; QUESTION 19 THE ORGANIZATION HAS ISSUED TAX-EXEMPT BONDS TO FINANCE VARIOUS CAPITAL IMPROVEMENT PROJECTS, RENOVATIONS AND EQUIPMENT. IN CONJUNCTION WITH THE ISSUANCE OF THESE TAX-EXEMPT BONDS, THE ORGANIZATION'S FINANCIAL STATEMENTS WERE INCLUDED WITH THE TAX-EXEMPT BOND PROSPECTUS WHICH WAS MADE AVAILABLE TO THE GENERAL PUBLIC FOR REVIEW. 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. COMPENSATION INFORMATION DISCLOSURE 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. RELATED HOURS DISCLOSURE CORE FORM, PART VII, SECTION A, COLUMN B THIS ORGANIZATION IS PART OF 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, REPRESENTS 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. FORMER OFFICER DISCLOSURE CORE FORM, PART VII AND SCHEDULE J GERALD L. TOFANI, CPA, FORMER CHIEF FINANCIAL OFFICER/VICE PRESIDENT OF THE ORGANIZATION, IS STILL EMPLOYED WITHIN BARNABAS HEALTH AS THE VICE PRESIDENT OF FINANCE/CHIEF FINANCIAL OFFICER OF MONMOUTH MEDICAL CENTER; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. OTHER CHANGES IN NET ASSETS CORE FORM, PART XI; QUESTION 5 OTHER CHANGES IN NET ASSETS OR FUND BALANCE INCLUDE: - PENSION CHANGES OTHER THAN NET PERIODIC BENEFIT COST - ($3,018,084); - NET CHANGE IN UNREALIZED GAINS AND LOSSES ON INVESTMENTS - ($295,844); - OTHER CHANGES IN NET ASSETS, NET - ($336,656) - NET ASSETS RELEASED FROM RESTRICTION FOR PURCHASES OF PROPERTY AND EQUIPMENT - $485,071; AND - CHANGE IN INTEREST IN NET ASSETS OF KIMBALL MEDICAL CENTER FOUNDATION; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION - $56,000. AUDITED FINANCIAL STATEMENTS CORE FORM, PART XII; QUESTION 2 THE ORGANIZATION IS AN AFFILIATE OF BARNABAS HEALTH ("SYSTEM"), A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. THE SYSTEM'S PARENT ENTITY IS SAINT BARNABAS CORPORATION. AN INDEPENDENT CPA FIRM AUDITED THE CONSOLIDATED FINANCIAL STATEMENTS OF SAINT BARNABAS CORPORATION AND ALL ENTITIES WITHIN THE SYSTEM FOR THE YEARS ENDED DECEMBER 31, 2011 AND DECEMBER 31, 2010; 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 SAINT BARNABAS CORPORATION 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. FINANCIAL STATEMENTS AND REPORTING CORE FORM, PART XII; QUESTION 3 THIS ORGANIZATION IS AN AFFILIATE OF BARNABAS HEALTH ("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. CENTER STATE HEALTH GROUP INC 2 CRESCENT PLACE OCEANPORT NJ 07757 222939956 HEALTH SVCS. NJ 501(C)(3) 509(a)(3) SBC false CENTER STATE PROPERTIES CORPORATION 99 HIGHWAY 37 WEST TOMS RIVER NJ 08755 521571939 TITLE HLDNG. NJ 501(C)(2) N/A CSHG 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) SBC false CLARA MAASS HEALTH SYSTEM INC ONE CLARA MAASS DRIVE BELLEVILLE NJ 07109 222802778 HEALTH SVCS. 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SVCS. NJ NA C CORP. PREMIUM HEALTH SYSTEMS INC ONE FRANKLIN AVENUE BELLEVILLE NJ 07109 222779395 HEALTHCARE SVCS. NJ NA C CORP. SBC MANAGEMENT CORPORATION 95 OLD SHORT HILLS ROAD WEST ORANGE NJ 07052 223414332 MGMT SVCS. NJ NA C CORP. PROFESSIONAL QUALITY LIAB 100 BANK STREET BURLINGTON VT 05401 205163819 INSURANCE SVCS. VT NA C CORP. NJ HEALTH CARE SYSTEM INC 94 OLD SHORT HILLS ROAD LIVINGSTON NJ 07039 223536986 INACTIVE NJ NA C CORP. CPIC 44 CHURCH STREET HAMILTON BERMUDA BD HM11 FINANCIAL VEHICLE BD NA FOREIGN CORP. LSC PHARMACY SERVICES INC 95 OLD SHORT HILLS ROAD WEST ORANGE NJ 07052 452552776 PHARMACY SVCS. NJ NA C CORP. false false false false false false false false false false false false false false false false false false