2013-01-10T10:03:58-06:00 2011-12-31 861065772 Deloitte Tax LLP 701 Poydras St Suite 4200 New Orleans LA 701394200 990 2011-01-01 720502505 Ochsner Clinic Foundation OCHS 5048423400 1514 Jefferson Highway New Orleans LA 70121 Bobby C Brannon 5048423400 2013-01-10 1 Peter A Vernaci P00353578 5045812727 2011 2016-03-07 17:11:31Z Ochsner Medical Center Patrick J Quinlan MD 1514 Jefferson Highway New Orleans LA 70121 4632011051 0 X www.ochsner.org X 1944 LA Patient Care, Graduate Medical Education, & Medical ResearchOchsner's annual report is available at the following URL: http://www.ochsner.org/about/ 19 9 13005 991 1284566 105408 12306979 7067483 4120428901 4489863395 13282965 12041325 10978622 4601122 4156997467 4513573325 72377 73480 0 0 790809915 858155399 0 0 1889880 3283446011 3607654854 4074328303 4465883733 82669164 47689592 1251257418 1526123835 618458214 944952291 632799204 581171544 X We Serve, Heal, Lead, Educate and Innovate. Ochsner will be a global medical and academic leader who will save and change lives. We will shape the future of healthcare through our integrated health system, fueled by the passion and strength of our diversified team of physicians and employees. 0 0 4165723523 73480 4448806842 Patient Care/Patient Medical Services: Ochsner Clinic Foundation consists of four hospitals at six campuses and many clinical locations. Served 87,202 inpatients resulting in 424,586 patient days. Emergency Room visits totaled 196,207. The number of births totaled 5,449. Outpatient hospital visits totaled 364,004. Physician clinic visits total 1,386,613. 311 patients received organ transplants. 29354688 21222020 Professional Education: Ochsner Clinic Foundation ("OCF") operates one of the nation's largest accredited non-university based graduate medical education programs. In 2011, 232 residents and fellows were appointed to 19 medical and surgical programs sponsored by OCF. Twenty-six (26) additional specialty programs assigned 281 unique residents and fellows (56 scheduled FTEs/mo. on average) to OCF for training through combined programs or joint affiliations with the two local medical schools, LSU & Tulane. All 44 programs are accredited by the Accreditation Council for Graduate Medical Education. Also, over 580 local, regional, national and international medical students chose OCF for core rotations and clinical electives. In 2009 Ochsner opened the Ochsner Clinical School in partnership with the University Queensland, Australia ("UQ") providing expanded opportunity for medical students for U.S. citizens. During the school year, 79 UQ students rotated through Ochsner for their clinical clerkships. Through a consortium relationship with Our Lady of Holy Cross College, 32 students in radiologic technology and respiratory are appointed for clinical training. Additionally, a total of 1,897 unique allied health students participated in allied health and nursing education across the Ochsner System in 2011: 526 unique allied health students from 36 schools representing 35 programs at 9 Ochsner sites, and there are 120 mid-level provider students from 11 schools representing 9 programs at 9 Ochsner sites. 9258815 13403994 Elmwood Fitness Center: provides fitness services to patients and members of the public. 9921892 2989491 Medical Research: Operate eight basic science research laboratories andhave approximately 300 open clinical trials in 27 clinical areas.Approximately 1,400 patients participate in Ochsner Clinical researchannually. Every, clinical trial is overseen by the Ochsnerinstitutional review board, which provides oversight of the safety ofthe human subjects participating in clinical trials. Established theCenter for Health Research in 2006, the mission of which is to advanceknowledge, improve clinical practice, and the health and well-being ofthe community. From inception, over 2,000 patients have been involved in outcomes based research conducted by the center. 2047230 3219895 Rent-physical plant: Ochsner Clinic Foundation rents its physical plantto related 501(c)(3) organizations. The majority of the rental is toBrent House Corporation, a wholly-owned subsidiary and exempt 501(c)(3)organization. Brent House fully reimburses Ochsner for expenses relatedto the Hotel. 73683 Equity Income: Equity Income from Joint Venture providing medical care. 962047 147470 Ochsner maintains a free parking garage for employees and patients.Revenue is attributable to the optional valet parking service, which isoffered for the convenience of Ochsner's patients. 12931169 6430539 4217268195 1 1 0 1 0 0 0 0 0 1 1 1 0 0 1 0 0 1 0 0 1 0 0 0 1 0 1 1 1 0 1 1 0 0 0 0 0 1 0 0 1 0 1 0 0 0 1 1 1 1 0 0 1 912 0 1 13005 1 1 1 1 CJ 0 0 0 1 1 0 0 0 0 X 19 9 1 0 0 0 1 1 0 1 1 0 1 1 1 1 1 1 1 0 1 1 1 0 X Bobby C Brannon 5048423400 1514 Jefferson Highway New Orleans LA 70121 X David E Beck MD 50.00 X 564830 0 65424 Joseph L Breault MD 50.00 X 217433 0 61994 Joseph R Dalovisio MD 50.00 X 397026 0 69524 Francis Dauterive MD 50.00 X 448173 0 54252 Angele Davis 5.00 X 0 0 0 William H Hines 5.00 X 0 0 0 Dennis Kay MD 50.00 X 642509 0 54731 Yvens G Laborde MD 50.00 X 344982 0 59137 R Parker LeCorgne 5.00 X 0 0 0 Patrick J Quinlan MD 5.00 X X 0 3333304 56107 Suzanne T Mestayer 5.00 X 0 0 0 Richard Milani MD 50.00 X 679327 0 86149 Jefferson G Parker 5.00 X 0 0 0 Robert J Patrick 5.00 X 0 0 0 F R Bobby Rodwig Jr MD 50.00 X 443665 0 55425 Steve Stumpf 5.00 X 0 0 0 Jose S Suquet 5.00 X 0 0 0 Andrew B Wisdom 5.00 X 0 0 0 James E Maurin 5.00 X X 0 0 0 Warner L Thomas 5.00 X 0 1929088 913470 Scott J Posecai 5.00 X 0 1458144 120597 Bobby C Brannon 50.00 X 719980 0 43084 Joseph E Bisordi MD 5.00 X 0 1012718 140624 Scott Boudreaux 50.00 X 0 308404 39540 Lisa S Colletti 50.00 X 250128 0 25066 Polly Davenport 50.00 X 294190 0 25366 Nancy L Davis 5.00 X 0 321092 51501 Steven B Deitelzweig MD 50.00 X 422148 0 46942 Mark French 50.00 X 233501 0 39722 Richard D Guthrie Jr MD 5.00 X 0 448756 65598 Robert Hart MD 50.00 X 347756 0 47841 Michael F Hulefeld 5.00 X 0 455311 40625 Ernest E Martin Jr MD 50.00 X 315976 0 48713 Patrick Shannon 50.00 X 214288 0 24521 Mitchell Wasden 50.00 X 290252 0 37087 Gregory J Eckholdt MD 50.00 X 815177 0 65280 Denis Mello MD 50.00 X 1014288 0 41337 Jose Mena MD 50.00 X 919083 0 53190 Douglas K Mendoza MD 50.00 X 1016723 0 34587 Alfred G Robichaux III MD 50.00 X 849778 0 76260 J Eric McMillen 0.00 X 157323 0 38275 11598536 9266817 2581969 1143 1 1 0 HOSPITAL HOUSEKEEPING LTD 216 E 4TH ST AUSTIN TX 78701 Housekeeping 4085118 ARX 800 CRESCENT CENTRE DR STE 500 FRANKLIN TN 37067 Billing and collections 3828891 RCOA IMAGING SERVICES INC 16110 JOG ROAD SUITE 200 DELRAY BEACH FL 33446 Radiology Service 3284000 LOUISIANA STATE UNIVERSITY 433 BOLIVAR ST NEW ORLEANS LA 70112 Purchased Physician Services 3132175 HOSPITAL MEDICINE ASSOCIATES 265 BROOKVIEW CENTRE WAY STE 400 KNOXVILLE TN 37919 Purch Phys Services 2682165 98 40311 606622 1819266 4601284 847200 7067483 Patient Service Rev. 621110 4448954312 4443921249 423385 4609678 Education Revenue 611600 21222020 21222020 Elmwood Fitness Center 713940 13403994 13403994 Rent-Physical Plant 531120 3219895 3219895 Research Revenue 900099 2989491 2989491 73683 73683 4489863395 5637322 5637322 32 32 428846 428846 3509525 1431187 2078338 2078338 2078338 117512352 38033 110986111 160303 6526241 -122270 6403971 6403971 257272 606622 353679 -96407 -96407 7696791 5506446 2190345 861181 1329164 4513573325 4481610437 1284566 23610839 73480 73480 7671142 4244581 3426561 735893041 640378739 94572894 941408 18710934 17862455 840582 7897 55245951 40560604 14473442 211905 40634331 36519540 4098104 16687 30398904 11274692 18752346 371866 1329370 44734 1284636 13945 13945 340381 340381 598610 598610 66073905 34497258 31575823 824 1226734 945819 280665 250 300343888 291789972 8496605 57311 2866616 2641016 224125 1475 59986589 30528983 29244781 212825 929894 708573 214694 6627 3112666 2624224 488442 23699540 23548168 151372 52497234 38602928 13856751 37555 25422931 25056792 366139 Discounts & Allowances 2837188230 2837188230 Unrelated Business Inco 24359 24359 Bad Debt Expense 74503547 70053412 4450135 Outside Provider 47400753 47400753 79696758 60684938 18988570 23250 4465883733 4217268195 246725658 1889880 3820949 124051316 152145496 54634413 7262039 6424496 189813975 184405247 1300000 1000000 30774135 180709874 31392659 30174871 17466576 18719991 1170668204 734847254 433356263 435820950 260126661 251475485 61952491 177599092 54652628 54510334 7193546 6597766 1251257418 1526123835 43358059 163720758 5133707 7852302 369228476 513874502 83429803 75266169 117308169 184238560 618458214 944952291 X 578584015 528367026 31850844 30251997 22364345 22552521 632799204 581171544 1251257418 1526123835 X 47689592 -99317252 X X 0 1 1 X 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 642630 642630 4464781148 4465423778 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 883896 615951 696090 642630 2838567 250000 250000 250000 250000 1000000 1500000 29000762 113975 -1274665 1390686 26449386 27544777 281209 2639534 1464758 29000762 23379373 1367746 3724506 926848 27544777 30449080 370760 -6357722 1082745 23379373 0.08100 0.91900 0.00000 1 0 5422342 38511285 43933627 770412 623821562 371061568 253530406 52440556 29761206 22679350 399321588 310706695 88614893 50380459 23317785 27062674 435820950 Commingled Hedge Fund 11669007 C Common Collective Trust 6436646 F Close-end Fund 21077413 F Commingled Fund 20619551 F Limited Partnership 12906674 F Government Obligated Cap FUnd 104889801 F 177599092 367 Split Interest Liability 801222 Contract Retentions 838121 Pension Obligations 144958856 Miscellaneous 363779 Credit Balances 20653793 Lease Liability 1893548 Liability Trust Fund 3744274 Investment in Brent House Hotel (Equity Basis) 9224829 Worker's Compensation Liability 1759771 184238560 Description of Intended Use of Endowment Funds: Part V, Line 4: In general, the Organization's Endowment Funds support the following initiatives: Medical Research, Graduate Medical Education Program, Medical Lectureships, Fellowship Awards, Anti-Smoking Initiative, Pastoral Care, Alzheimers care, and Advancement in Anesthesia. Description of Uncertain Tax Positions Under FIN 48: Part X: Ochsner Clinic Foundation has reviewed its tax positions and concluded that there are no significant uncertain tax positions requiring recognition in its financial statements under FIN 48. Caribbean 0 0 Investments 12826000 Europe 0 0 Investments 6335000 0 0 0 0 0 0 19161000 0 19161000 1 0 0 1 0 0 Ochsner Goes Pink 443604 286702 156902 18500 14500 4200 98788 Ochsner Run 126718 93742 32976 16302 3500 48622 7 293572 226178 67394 6750 18675 42700 81142 863894 606622 257272 25250 49477 50400 228552 353679 -96407 1 1 X 1 X 0 1 1 1 0 1 0 5502119 5502119 0.00130 5502119 5502119 0.00130 1119554 72661 1046893 0.00020 32141204 19390608 12750596 0.00290 10099348 3086062 7013286 0.00160 254474 52468 202006 0.00000 43614580 22601799 21012781 0.00470 49116699 22601799 26514900 0.00600 79324 15733 63591 0.00000 1810 905 905 0.00000 158399 953 157446 0.00000 239533 17591 221942 0 14809437 0 214278729 199635443 14643286 X 1 1 6 1 Ochsner Medical Center

1516 Jefferson Highway New Orleans LA 70121

X X X X X 2 Ochsner Hospital-Elmwood

1121 N Clearview Parkway Jefferson LA 70121

Satellite of Ochsner Medical Center 3 Ochsner Medical Ctr-West Bank Campus

2500 Belle Chasse Hwy Gretna LA 70056

Satellite of Ochsner Medical Center 4 Ochsner St Anne General Hospital

4608 Hwy 1 Raceland LA 70394

X X X 5 Ochsner Medical Center-Baton Rouge

17000 Medical Center Blvd Baton Rouge LA 70816

X X X 6 Ochsner Medical Center-North Shore

100 Medical Center Dr Slidell LA 70461

X X X Ochsner Medical Center 1 1 1 200.000000000000 1 380.000000000000 1 X 1 1 X X 1 X 0 1 X 0 0 Ochsner Hospital-Elmwood 2 1 1 200.000000000000 1 380.000000000000 1 X 1 1 X X 1 X 0 1 X 0 0 Ochsner Medical Ctr-West Bank Campus 3 1 1 200.000000000000 1 380.000000000000 1 X 1 1 X X 1 X 0 1 X 0 0 Ochsner St Anne General Hospital 4 1 1 200.000000000000 1 380.000000000000 1 X 1 1 X X 1 X 0 1 X 0 0 Ochsner Medical Center-Baton Rouge 5 1 1 200.000000000000 1 380.000000000000 1 X 1 1 X X 1 X 0 1 X 0 0 Ochsner Medical Center-North Shore 6 1 1 200.000000000000 1 380.000000000000 1 X 1 1 X X 1 X 0 1 X 0 0 43 Ochsner Health Center-Covington

1000 Ochsner Blvd Covington LA 70433

Clinic Ochsner Health Center-Baton Rouge

9001 Summa Avenue Baton Rouge LA 70809

Clinic Ochsner Health Center-Baton Rouge

16777 Medical Center Dr Baton Rouge LA 70816

Clinic Ochsner Medical Center for Children

1315 Jefferson Hwy New Orleans LA 70121

Clinic Ochsner Health Center-Metairie

2005 Veterans Memorial Blvd Metairie LA 70002

Clinic Ochsner Health Center-Ochsner Baptist

2800 Napoleon Ave New Orleans LA 70115

Clinic Ochsner Health Center-Kenner

200 West Esplanade Ave Kenner LA 70065

Clinic Ochsner Lieselotte Tansey Breast Center

1319 Jefferson Hwy New Orleans LA 70121

Clinic Ochsner Health Center-Slidell

2750 E Gause Blvd Slidell LA 70461

Clinic Ochsner Health Center-Marrero

4225 Lapalco Blvd Marrero LA 70072

Clinic Ochsner Heart & Vasclr Hlth Ctr-Hammond

42107 Veterans Ave Hammond LA 70403

Clinic Ochsner North Shore MOB

1850 Gause Blvd Slidell LA 70461

Clinic Ochsner Physical Therapy-Metairie

850 Veterans Memorial Blvd Metairie LA 70005

Clinic Ochsner Health Center-Kenner

2120 Driftwood Blvd Kenner LA 70065

Clinic Ochsner Wmn & Chldrn Hlth Ctr-Covington

101 E Judge Tanner Blvd Ste 301 302 Covington LA 70443

Clinic Ochsner Children's Health Center-Slidell

2370 E Gause Blvd Slidell LA 70461

Clinic Ochsner Children's Health Ctr-Metairie

4901 Veterans Memorial Blvd Metairie LA 70006

Clinic Ochsner Health Center-Lakeview

101 W Robert E Lee BlvdSte201 New Orleans LA 70124

Clinic Ochsner Health Center-Hammond

41676 Veterans Ave Hammond LA 70403

Clinic Ochsner Health Center-Prairieville

16222 Airline Hwy Prairieville LA 70769

Clinic Ochsner Health Center-Baton Rouge

8150 Jefferson Highway Baton Rouge LA 70809

Clinic Ochsner Women's Health Center-Gretna

120 Meadowcrest Street Gretna LA 70056

Clinic Ochsner Physical Therapy-Harvey

3820 Lapalco Blvd Harvey LA 70058

Clinic Ochsner Health Center-Denham Springs

30819 Hwy 16 Denham Springs LA 70726

Clinic Ochsner Health Center-Algiers

3401 Behrman Pl Algiers LA 70114

Clinic Ochsner Health Center-Mandeville

2810 E Causeway Appr Mandeville LA 70448

Clinic Ochsner Children's Health Ctr-Destrehan

1970 Ormond Blvd Destrehan LA 70047

Clinic Ochsner Health Center-New Orleans

3423 St Charles Ave New Orleans LA 70115

Clinic Ochsner Health Center-Abita Springs

22070 Hwy 59 Abita Springs LA 70420

Clinic Ochsner Health Center-Luling

1057 Paul Maillard Road Luling LA 70070

Clinic Ochsner Health Center-Gretna

441 Wall Blvd Gretna LA 70056

Clinic Ochsner Health Center-Belle Chasse

7772 Highway 23 Belle Chasse LA 70037

Clinic Ochsner Health Center-Slidell

2104 Gause Blvd West Slidell LA 70461

Clinic Ochsner Health Center-Slidell

107 Smart Place Slidell LA 70461

Clinic Ochsner Health Center-Central

11424 Sullivan Road Central LA 70818

Clinic Ochsner St Anne Gnrl Health Ctr

106 Cypress St Raceland LA 70394

Clinic Ochsner St Anne Specialty Clinic

141 Twin Oaks Raceland LA 70394

Clinic Ochsner St Anne Gnrl Women's Health Ctr

194 West 134th Street Cut Off LA 70345

Clinic Ochsner St Anne Gnrl Women's Health Ctr

104 Acadia Park Dr Raceland LA 70394

Clinic Ochsner St Anne Gnrl Behavrl Hlth Ctr

4608 Hwy 1 Raceland LA 70394

Clinic Ochsner Health Center-LaPlace

502 Rue de Sante LaPlace LA 70068

Clinic Ochsner St Anne Gnrl Health Ctr

1015 Crescent Ave Lockport LA 70374

Clinic Ochsner St Anne Family Doctor Clinic

111 Acadia Dr Raceland LA 70394

Clinic Part I, Line 3c: Hospital Services for uninsured patients automatically qualify for a discount in 2011, regardless of the patient's financial status. The discount for 2011 was 60% at Ochsner Medical Center, Ochsner Hospital-Elmwood, Ochsner Medical Center-West Bank Campus, and Ochsner Medical Center-Baton Rouge and 75% at Ochsner Medical Center-North Shore. Part I, Line 6a: The community benefit report prepared by Ochsner Clinic Foundation is representative of the entire health system, including Ochsner Clinic Foundation. The amounts reported in Schedule H are those amounts that are either directly incurred by Ochsner Clinic Foundation or those that have been allocated to Ochsner Clinic Foundation as a reimbursement to another organization. Part I, Line 7: For charity care at cost, the ratio of total patient care cost to total charges from Worksheet C of the Medicare cost reports for each hospital was applied to that hospital's total charity care charges from Worksheet S-10. For Research and Education, cost allocation was used. Revenue for Research and Education includes both governmental and non-governmental sources. Part I, Line 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 $ 74503546. Part II: Ochsner's economic development activities support the education of youths in its service area, which will create more educated, capable adults. In one sense, this support will provide the youths the opportunity to get a better education, which will enable them to afford healthcare coverage for their families. In another sense, this support enables them to become educated, which allows them to better understand their healthcare. Finally, some of those youths will eventually become healthcare professionals, thus enhancing the healthcare available to others. An example of an economic development activity is Jefferson Dollars for Scholars, in which Ochsner provides the funding for an average of 10 students per year to earn a college scholarship, as well as providing other academic opportunities throughout the Ochsner system.Ochsner's workforce development includes several programs which enable community members to learn about future careers, including healthcare. An example of the programs that Ochsner provides is the STAR program, a free, five-week summer program that provides qualified high school students with a unique opportunity to work in a student healthcare laboratory setting.Ochsner also works with the Girls Scouts Louisiana-East to provide a free Saturday program for Girl Scouts to earn one of their badges by working with Ochsner employee volunteers on various experiments. Part III, Line 4: Any discounts provided or payments made to a particular patient account are applied to that patient account prior to any bad debt write-off and are thus, not included in bad debt expense. The provision for uncollectible accounts is based upon management's assessment of historical and expected net collections considering historical business and economic conditions, trends in health care coverages, and other collection indicators. Periodically, management assesses the adequacy of the allowance for uncollectible accounts based upon historical write-off experience by payor category. The results of this review are then used to make modifications to the provision for uncollectible receivables. After satisfaction of amounts due from insurance, the System follows established guidelines for placing certain past due patient balances with collection agencies, subject to the terms of certain restrictions on collection efforts as determined by the system.Bad debt expense at cost is calculated by applying the ratio of patient care cost to charges from Worksheet C of the Medicare cost reports for each hospital to the bad debt expense calculated using the above methodology. Part III, Line 8: Medicare shortfall is not considered community benefit.Total revenue from Medicare has been taken from the E Series in the Medicare Cost Reports. They do not include Medicare Advantage or payments related to Education or Research, in compliance with the instructions. Worksheet D Part V Line 202 Column 5 was used for outpatient costs and Worksheet D-1 Part II Line 49, and Worksheet D-1 Part III Line 86, and Worksheet E Part A Line 55 was used for inpatient costs. The cost reports for Ochsner Clinic Foundation (Provider No. 19-0036) and Ochsner Bayou LLC (Provider No. 19-1324) cover the period 1/1/2011 - 12/31/2011. The cost report for Ochsner Medical Center - Baton Rouge (Provider No. 19-0202) covers the period 10/1/2010 - 9/30/2011. The cost report for Ochsner Medical Center - North Shore (Provider No. 19-0204) covers the period 4/1/2011 - 3/31/2012; however, at the time Schedule H was prepared, the Ochsner Medical Center - North Shore cost report had not yet been filed, so the numbers provided are tentative. Part III, Line 9b: Upon granting approval for 100% assistance, all collection efforts for that account will cease, the account will not be turned over to a collection agency, and Ochsner will not impose extraordinary collection efforts such as wage garnishments or liens. Ochsner Medical Center Part V, Section B, Line 19d: The maximum amount charged is based on the average of the rates of the two largest commercial insurers. Ochsner Hospital-Elmwood Part V, Section B, Line 19d: The maximum amount charged is based on the average of the rates of the two largest commercial insurers. Ochsner Medical Ctr-West Bank Campus Part V, Section B, Line 19d: The maximum amount charged is based on the average of the rates of the two largest commercial insurers. Ochsner Medical Center-Baton Rouge Part V, Section B, Line 19d: The maximum amount charged is based on the average of the rates of the two largest commercial insurers. Ochsner Medical Center-North Shore Part V, Section B, Line 19d: The maximum amount charged is based on the average of the rates of the two largest commercial insurers. Part VI, Line 2: Ochsner serves the needs of the various communities throughout Southeast Louisiana through its commitment is to exemplary patient care, medical research and education. Ochsner Clinic Foundation is part of Ochsner Health System, which comprises a total of eight hospitals (including two satellite locations) and approximately 40 health centers in the major population centers of Southeast Louisiana, including New Orleans, Baton Rouge, Bayou, and Northshore regions, when Ochsner Clinic Foundation and Ochsner Community Hospitals (an affiliated 501(c)(3) corporation) are combined. Healthcare is provided where people live, work and play. With over 12,000 combined employees, Ochsner employees work and live in the communities served. Ochsner Clinic Foundation is responsible for six of the eight hospitals, all 40 health centers, and over 11,000 of the employees.In order to identify the needs of the community, Ochsner reviews local and state publicly available data regarding the health status and issues in our region. Ochsner works with community organizations that collect information on their areas of focus to identify trends and areas where we have expertise that can make an impact. Ochsner collaborate with multiple community stakeholders to identify specific community needs in its regions. Ochsner then reviews these needs and determines where it can best use its resources and expertise to affect those needs. One of Ochsner's main focuses is to develop partnerships to address root causes of issues.Ochsner's principles to guide its community service and community benefit decisions as follows:1. Participate or lead in those areas where our presence matters. Our contribution to success must be necessary and evident.2. Concentrate on those areas which play to our strengths, so we are more likely to succeed in our efforts.3. Ochsner's approach to community needs is to focus on the correction of root causes of problems rather than on the symptoms of those problems.4. When possible, partner with others, so we can both succeed for the benefit of the community. Many of the major problems which confront us are beyond the ability of only one organization to solve.To illustrate the implementation of its community benefit principles, Ochsner saw a need to improve the quality healthcare in its service area. Areas that needed improvement included more manpower for services, specifically physicians. In 2009, Ochsner initiated a partnership with the University of Queensland Medical School. Through this program, students from the United States can experience the benefits of both a world class university and a world class healthcare organization. The first two years of the program will be in the classrooms at the University of Queensland in Brisbane, Australia. The next two years are spent at Ochsner Medical Center, in a multi-dimensional integrated system that will provide experiences across the continuum of healthcare and medical practice, in addition to clinical requirements. Many of the physicians that complete the program will return to New Orleans to fill the gap in healthcare that Ochsner identified. Part VI, Line 3: All uninsured patients are screened for Medicaid. This process takes place at the time of service, inpatient admissions, and if the patient is not screened at the time, the patient is contacted at home to determine eligibility. In 2011, Ochsner was able to obtain Medicaid coverage for approximately 18,000 patients. If the patients do not qualify for Medicaid, then they will be evaluated under the financial assistance policy.Internal customer service departments and external partners including collection agencies provide patients with financial assistance applications if patients express concerns about the inability to pay outstanding balances. Ochsner has placed signs in all facilities with respect to charity care, and brochures and the charity care policy are included in every patient statement. Ochsner also offers no interest payment plan options with payment terms ranging from six to 60 months. Part VI, Line 4: Ochsner Clinic Foundation is a multi-specialty healthcare delivery system consisting of six hospitals (including two satellite locations) and over 40 health centers in Louisiana. Ochsner Clinic Foundation is part of Ochsner Health System, southeast Louisiana's largest non-profit, academic, multi-specialty, healthcare delivery system with eight hospitals (including two satellite locations) and over 40 health centers in Louisiana (as of December 31, 2011). Ochsner employs over 1,000 physicians in over 80 medical specialties and subspecialties.Ochsner Clinic Foundation's patients vary in age, gender, and race due to the multi-specialty nature of the system. Overall, the state of Louisiana has the fourth highest poverty level in the nation as of 2011 estimates with a poverty level of 18.0%.Ochsner Clinic Foundation's hospitals serve the New Orleans metropolitan area, the greater Baton Rouge area, the North Shore, and the Bayou area. Ochsner Medical Center (the Jefferson Highway campus), Ochsner Hospital - Elmwood, and Ochsner Medical Center-Westbank Campus serve the New Orleans metropolitan area. The population of the New Orleans region was estimated at approximately 1,191,000 in 2011. The New Orleans metropolitan area has approximately 201,000 uninsured individuals, or approx. 16.9% of the total population. The original Ochsner facility, Ochsner Medical Center, is located in Jefferson Parish, LA, approximately 1 mile from the western boundary of the city of New Orleans. Ochsner Medical Center, a 596-bed hospital, includes acute and sub-acute facilities. Ochsner Centers of Excellence include the Ochsner Cancer Institute, Ochsner Multi-Organ Transplant Center and Ochsner Heart and Vascular Institute. Ochsner Hospital-Elmwood is a satellite of Ochsner Medical Center, providing inpatient rehabilitation services. Ochsner Medical Center-West Bank Campus is a 203-bed satellite of Ochsner Medical Center, providing general medical and surgical acute care, and is located on the West Bank of the Mississippi River within minutes of downtown New Orleans. OMC West Bank is easily accessible to three major parishes: Jefferson, Orleans and Plaquemines. Ochsner Medical Center-West Bank Campus also provides emergency services and obstetrics as well as other hospital services.Ochsner Medical Center-Baton Rouge is located in the city of Baton Rouge within East Baton Rouge parish. The greater Baton Rouge area population was approximately 802,500 per the 2010 Census, of which approximately 215,000 people were uninsured. Ochsner Medical Center-Baton Rouge is a 177-bed acute care facility.Ochsner St. Anne General Hospital serves the Bayou area which consisted of approximately 273,000 people in 2011, of which approximately 74,000 people were uninsured. Ochsner St. Anne medical center is a 35-bed acute care hospital that serves Lafourche parish, where it is located, and the surrounding parishes.Ochsner Medical Center-North Shore serves the North Shore area, consisting of approximately 503,000 people in 2011, of which approximately 128,000 people were uninsured. Ochsner Medical Center-North Shore is a 193-bed acute care facility located in Slidell, LA and serving the north shore of Lake Pontchartrain, North of New Orleans, LA. Part VI, Line 5: Having a diverse representation of the community in the governing boards is an important part of making sure all aspects of the community we serve are being touched by the mission and vision of the organization. The by-laws of both Ochsner Clinic Foundation and Ochsner Health System call for 10 members of the total 19 board members to be independent community members. The Chief Executive Officer serves on the Board by virtue of his or her office; however, a majority of Board members are prominent multi-disciplinary business and community leaders. The remainder of the Board members are senior physician employees of Ochsner Clinic Foundation elected by their peers in accordance with Ochsner Clinic Foundation by-laws.Ochsner Clinic Foundation is an educational and research-oriented medical center, operating one of the nation's largest accredited non-university based graduate medical education programs, covering 44 different medical, surgical and specialty programs. Ochsner partners with the Louisiana State University and Tulane University Medical Schools, in addition to a consortium relationship with Our Lady of Holy Cross College for allied health and nursing programs. In 2009, Ochsner opened the Ochsner Clinical School in partnership with the University of Queensland, Australia to provide expanded opportunity for medical students that are U.S. citizens.Approximately 350 open clinical research trials in almost every specialty are ongoing and Ochsner operates ten basic science/transitional research laboratories.In addition to the preceding examples, Ochsner provides support in many ways that are not easily quantifiable and thus have not been included in the Community Building Activities in Part II. This support includes the following activities, among many others:The Ochsner Medical Library holds training sessions on and off site to teach users how to find and evaluate medical information available on the Internet. In addition to housing thousands of resources and answering reference questions in a traditional library setting, the Ochsner Medical Library actively brings its resources out to its patients and the community. Librarians also round the hospital with a notebook laptop computer and offer the "Outreach Express" service for patients who are in the hospital and have questions about their diagnosis, treatment or other issues.To help further promote the health of the community, Ochsner created the Choose Healthy initiative with a local grocery store chain which serves the same geographical region to educate shoppers. Ochsner nutritionists have identified over 500 items in the stores that meet healthy choice standards and these are marked with shelf talkers for easy identification on the aisles. The Choose Healthy initiative offers healthy cooking demonstrations, health screenings, and educational classes in the stores at no charge. There is also a website which offers shopping lists, recipes, healthy living tips and videos. All of this is available to the general public at no charge. In addition to providing quality medical care to patients who visit Ochsner's hospitals and clinics, Ochsner has embraced the concept that good health doesn't begin at the doctor's office, it begins where you live, learn, work and play. Programs have been developed to promote health in our communities through education and provision of healthcare services. Some significant activities are listed below:Ochsner provides community health fairs in all our regions by organizing its own fairs and by providing staff for events being offered by other organizations. Ochsner also hosts educational forums about specific health related topics through our Hello Health programs. These are held in the community as well as on WLAE TV, a public television station in New Orleans. Ochsner staff members have also attended numerous community group meetings in order to provide health education information.Ochsner sponsors and participates in multiple programs that address community economic and workforce development for the greater good. These activities support the community by offering Ochsner's expertise andresources, including sponsoring fund raising events of community organizations, and providing financial support for scholarship programs.Ochsner provides support to numerous schools, both public and parochial, throughout Southeast Louisiana, including three "adopted" schools in the New Orleans/Jefferson Parish area. In addition, Ochsner has developed a dedicated student/outreach lab as an additional resource or training lab for schools in our community.Ochsner is providing education and support to the Jefferson parish public school system in nutrition and physical fitness to address the childhood obesity epidemic in LA, which is ranked the 5th worst state in the nation for childhood obesity. Ochsner delivers a newsletter which highlights healthy habits to the families of 11,000 elementary school students in the fourth and fifth grades which highlights healthy habits.To further help battle childhood obesity, Ochsner provides a customized mobile fitness unit (On the Move) which travels the region encouraging healthy nutrition and active lifestyles for all children. On the Move includes strength and cardiovascular circuit workouts, nutrition lectures, and heart-healthy cooking classes and demonstrations by our executive chef and is designed to teach parents and kids how to incorporate healthier foods and behaviors into their lifestyle. On the Move engages more than 1,000 children per year at area schools during regularly scheduled visits. Part VI, Line 6: Ochsner Health System is the supporting organization to Ochsner Clinic Foundation and Ochsner Community Hospitals, all related 501(c)(3) corporations. While each of the eight hospitals with the System promote the health within the separate geographical communities that they service, many overall community health initiatives are coordinated by Ochsner Health System, which is then reimbursed by the respective entities. 1 Louisiana State University 433 Bolivar New Orleans LA 70112 726087770 501(c)(3) 71930 0 General Support for Diabetes Study Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: The organization maintains records to substantiate the amount of grants and assistance through a grant application process. Grantees' ability to perform is vouched for and credit vouchers of performing persons at respective organizations are obtained. Use of grant funds is monitored by the normal accounts payable process that the organization has in place. All payments made to grantees are approved by appropriate persons associated with primary grant awards who are knowledgeable of work product on grants. In addition to the approval process, the organization has a process in place to ensure that requested payments are in line with approved budgets submitted by subrecipients. X X X X X 1 1 0 0 0 1 1 1 0 David E Beck MD 538516 0 21000 0 5314 0 52054 0 13370 0 630254 0 0 0 Joseph L Breault MD 201546 0 11411 0 4476 0 41619 0 20375 0 279427 0 0 0 Joseph R Dalovisio MD 325791 0 49000 0 22235 0 58654 0 10870 0 466550 0 0 0 Francis Dauterive MD 315195 0 18668 0 114310 0 36940 0 17313 0 502426 0 0 0 Dennis Kay MD 611548 0 28500 0 2461 0 39902 0 14829 0 697240 0 0 0 Yvens G Laborde MD 283871 0 60270 0 841 0 42599 0 16537 0 404118 0 0 0 Patrick J Quinlan MD 0 898835 0 712800 0 1721669 0 45300 0 10807 0 3389411 0 1687861 Richard Milani MD 434688 0 85000 0 159639 0 66675 0 19475 0 765477 0 0 0 F R Bobby Rodwig Jr MD 372428 0 45000 0 26237 0 38688 0 16737 0 499090 0 0 0 Warner L Thomas 0 743094 0 538313 0 647681 0 894433 0 19037 0 2842558 0 628489 Scott J Posecai 0 517827 0 306250 0 634067 0 110553 0 10044 0 1578741 0 616669 Bobby C Brannon 406274 0 245000 0 68706 0 28800 0 14284 0 763064 0 0 0 Joseph E Bisordi MD 0 549293 0 443103 0 20322 0 128916 0 11708 0 1153342 0 0 Scott Boudreaux 0 278607 0 26250 0 3547 0 24550 0 14990 0 347944 0 0 Lisa S Colletti 215701 0 30429 0 3998 0 24042 0 1024 0 275194 0 0 0 Polly Davenport 256172 0 35000 0 3018 0 14550 0 10816 0 319556 0 0 0 Nancy L Davis 0 265781 0 50271 0 5040 0 43837 0 7664 0 372593 0 0 Steven B Deitelzweig MD 346419 0 41375 0 34354 0 29155 0 17787 0 469090 0 0 0 Mark French 204252 0 28783 0 466 0 23300 0 16422 0 273223 0 0 0 Richard D Guthrie Jr MD 0 361298 0 85000 0 2458 0 45672 0 19927 0 514355 0 0 Robert Hart MD 279550 0 43065 0 25141 0 45300 0 2541 0 395597 0 0 0 Michael F Hulefeld 0 360478 0 85000 0 9833 0 19050 0 21575 0 495936 0 0 Ernest E Martin Jr MD 283959 0 29875 0 2142 0 32286 0 16427 0 364689 0 0 0 Patrick Shannon 167350 0 46546 0 392 0 22226 0 2295 0 238809 0 0 0 Mitchell Wasden 249011 0 38775 0 2466 0 19050 0 18037 0 327339 0 0 0 Gregory J Eckholdt MD 812514 0 1535 0 1128 0 49742 0 15537 0 880456 0 0 0 Denis Mello MD 1013503 0 0 0 785 0 23300 0 18037 0 1055625 0 0 0 Jose Mena MD 694138 0 7509 0 217436 0 36152 0 17037 0 972272 0 0 0 Douglas K Mendoza MD 765883 0 250055 0 785 0 19050 0 15537 0 1051310 0 0 0 Alfred G Robichaux III MD 736292 0 111049 0 2437 0 57722 0 18537 0 926037 0 0 0 J Eric McMillen 141912 0 15069 0 342 0 22160 0 16115 0 195598 0 0 0 Part I, Lines 4a-b Line 4b: Patrick Quinlan, M.D., Chief Executive Officer; Warner Thomas, President & Chief Operating Officer; Scott Posecai, Sr. Vice President and Chief Financial Officer; and Bobby Brannon, Executive Vice President and Treasurer participate in a Supplemental Executive Retirement Plan (SERP) which is part of the terms and conditions of their employment contracts with Ochsner Health System and Ochsner Clinic Foundation and is based on a targeted replacement of a set percentage of their salary at age 65. The SERP is classified as a Supplemental Non-Qualified Retirement Plan. This benefit is funded in a Trust Account with Capital One Bank. The increases in actuarial value during 2011 were $0; $854,633; $65,253; and $0; respectively. Part I, Line 6 The Physician and Executive Compensation Committee of the Ochsner Clinic Foundation Board of Directors reviews and approves all officer executive incentive plans, which include those for the Officers; the CEO, President, CFO, Treasurer, Regional Medical Directors, and Executive Vice Presidents. For the 2010 incentive plan, which was paid in 2011, there were four weighted components: a System Financial Metric which consists of Operating Margin, a Quality and Patient Satisfaction Metric, a Human Capital Metric that consists of turnover and employee engagement survey results, and a Subjective metric based on their personal performance targets. The subjective metric is assigned for the CEO by the Physician and Executive Compensation Committee and assigned for the other executives by the CEO then reviewed by the Physician and Executive Compensation Committee. Metrics other than subjective are built on percent improvement year over year. The CEO and officers did meet annual targets as set by the terms and conditions of their employment contracts and therefore the compensation committee approved the payment of the Annual Incentive Plan which was recorded as part of their compensation in 2011. All bonus amounts are provided in Schedule J Part II in Column B(ii). Part I, Line 7 Subjective components of incentive plan are described in description of Part I, Line 6. Supplemental Information Part III Part II, Column B(iii), Other Reportable Compensation for Patrick Quinlan, M.D., Chief Executive Officer; Warner Thomas, President & Chief Operating Officer; Scott Posecai, Sr. Vice President and Chief Financial Officer; and Bobby Brannon, Executive Vice President, Director of Finance, and Treasurer includes $1,687,861; $628,489; $616,669; and $0, respectively, as amounts includable in income under Section 457(f) due to vesting. A portion of this amount attributable to prior years has been reported by Ochsner Clinic Foundation in Column C Retirement and Other Deferred Compensation for the taxable years in which the respective amounts were deferred by the employee by section 457(f) but not substantially vested. Louisiana Public Facilities Authority 720895871 546398VQ8 2007-09-12 371062406 RETIRE 02 BDS, FACIL IMPROV 0 0 0 Louisiana Public Facilities Authority 720895871 546398L48 2011-05-11 148728038 FACIL ACQ, CONSTR & RENOV 0 0 0 322774046 371062406 366183746 342030662 4054068 47737307 2010 1 0 1 1 148728038 15000004 9212238 2365800 7436402 29154065 85559533 0 0 0 1 0 0 1 1 0 1 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 Form 8038 for CUSIP # 546398VQ8 was prepared for the issuance of Revenue Bonds (Ochsner Clinic Foundation Project) Series 2007A and Revenue Bonds (Ochsner Community Hospitals Project) Series 2007B. The bonds had a total Issue Price of $453,076,501.10. $371,062,405.65 of the Issue Price was issued for the benefit of Ochsner Clinic Foundation (EIN# 72-0502505), and the remaining $82,014,095.45 was issued for the benefit of Ochsner Community Hospitals (EIN# 20-5297040). Schedule K, Part II, Line 7 100% of line 7 relates to issuance cost. Schedule K, Part III, Line 3a All contracts meet IRS safe harbor rules per 97-13. Mello Dennis M Forgivable loans for Physician Retention and Recruitment X 1000000 1000000 0 0 1 1000000 Richard D Guthrie III Son of Dr. Guthrie, a Key Employee of OCF 57493 Compensation as a RN 0 Elizabeth Guthrie Tucker Daughter of Dr. Guthrie, a Key Employee of OCF 49396 Compensation as a RN 0 Alexis Guthrie Daughter-in-Law of Dr. Guthrie, a Key Employee of OCF 36095 Compensation as a RN 0 Renee Reymond MD Wife of Mr. Hulefeld, a Key Employee of OCF 102089 Compensation as a Physician 0 Kay Belmont Sister of Mr. Posecai, an Officer of OCF 32704 Compensation as an RN 0 Bruce Posecai Jr Nephew of Mr. Posecai, an Officer of OCF 56605 Compensation as an RN 0 Jill Dalovisio Fitzpatrick Daughter of Dr. Dalovisio, a Sr. Physician Board Member of OCF 12784 Compensation as a Physician Assistant 0 Lindsay Belmont Niece of Mr. Posecai, an Officer of OCF 15255 Compensation as an RN 0 Catholic Charities-PACE Program Mr. Hulefeld, a Key Employee, is a Director of Catholic Charities 855435 PACE contracts with Ochsner to provide hospitalization and specialty care for its patients 0 Tulane University Independent Contractor 2492483 Mr. Wisdom, a Director of OCF, is also aBoard Member of Tulane University. 0 X 3 12360 Fair Market Value X 1 745000 Fair Market Value X 9 12389 Fair Market Value X 24 25285 Cost X Services 12 29113 Cost X Special Events 61 17698 Cost X Miscellaneous 15 5355 Cost 0 1 1 Third Party Use: Part I, Line 32b: If the organization receives a noncash contribution greater than $5,000, the donor or the organization will hire a third party to complete an appraisal. Doing Business As Form 990, Part I, Item C DBA: Ochsner Health Center DBA: Ochsner St. Anne General Hospital DBA: Ochsner Medical Center - Baton Rouge DBA: Elmwood Fitness Center (a Service of Ochsner) Form 990, Part VI, Section A, line 1 1b: The Articles of Incorporation provide that no action of the Board may be resolved unless a majority of the independent directors present approve the matter. Thus, even in situations where there is not an absolute majority of independent directors in office, those independent directors in office control Ochsner Health System's activities. Form 990, Part VI, Section A, line 2 Dr. Guthrie and Dr. Robichaux have a business relationship. Dr. Quinlan and Mr. Suquet have a business relationship. Form 990, Part VI, Section A, line 6 Ochsner Clinic Foundation is a wholly-owned subsidiary of Ochsner Health System, a related 501(c)(3) organization. Ochsner Health System is the sole member of Ochsner Clinic Foundation. Ochsner Clinic Foundation has no capital stock and only one class of membership. Form 990, Part VI, Section A, line 7a The Community Directors shall be nominated exclusively by the nominating committee of the board of directors of the Member. Form 990, Part VI, Section B, line 11 One or more members of senior management reviews the return. The return is also reviewed by Deloitte Tax LLP, the company's tax advisors. The Audit and Oversight Committee, which is comprised of independent directors, is then provided the return prior to the filing date and given the opportunity to review and discuss the returns with management/staff. The meeting to review the 2011 return was held on December 19, 2012. A copy of the return is then provided to each member of the Board of Directors electronically and comments are solicited from the entire Board. Form 990, Part VI, Section B, line 12c Officers, directors, trustees, and key employees are required to complete a conflicts of interest disclosure form annually, within 30 days of becoming an employee, or within 10 days of a change in business circumstances not previously disclosed. The Vice President of Corporate Integrity reviews disclosures and determines whether action is necessary or if the disclosure needs to be reviewed by the Conflicts of Interest Committee. In addition, employees that do not fall within the scope of the Conflict of Interest Disclosure policy annually certify through the Annual Employee Evaluation process their compliance with the Conflict of Interest policy. Form 990, Part VI, Section B, line 15 All CEO and officer compensation and benefits arrangements, including salary and bonus incentive plans, are reviewed and approved by the Executive and Senior Physician Compensation Committee of the Board of Directors (Compensation Committee). No substantive change to the compensation or benefits packages is made until Committee approval is granted in accordance with Intermediate Sanctions guidelines. The Compensation Committee is without conflicts of interest and uses an independent external consultant. Appropriate data is applied to determine the comparability of fair market value pay and all actions are appropriately documented. In order to meet the requirements of the IRS Intermediate Sanctions regulations, the Compensation Committee identified the "disqualified individuals" that are in a position to exercise substantial influence over the company's operations. These individuals are the members of the Executive Officers Committee (EOC), Regional Medical Directors, physician board members and Section Heads for key departments. For disqualified individuals, the compensation review also includes the cost of benefits such as the company portion of medical and dental benefits, malpractice insurance, payments for 401K matching and pension payments. A different review process is used for Physicians. Annually, the Corporate Integrity department reviews the salary of each employed physician. This review includes a comparison of physician salaries against national survey data for their specialty. Three surveys are used for the review: McGladrey & Pullen, the Medical Group Management Association (MGMA) and American Medical Group Association (AMGA). The Physician Compensation department provides salary data for each physician including base salary, stipends, on-call pay, etc. If it is determined that a physician's compensation is higher than the survey data, the total work Relative Value Units (RVUs) are compared to the survey data. This review is performed to ensure their pay is comparable to the work performed. Comparable benefit survey data is obtained periodically from McGladrey & Pullen. Compensation for other non-physician key employees is reviewed by senior executives who take market value research into consideration when determining compensation levels. Form 990, Part VI, Section C, line 19 Financial statements for Ochsner Clinic Foundation are made available to the public quarterly via www.dacbond.com. All governing documents, conflict of interest policy, and financial statements are available upon written request to the Corporate Integrity Department. Joint Venture Procedure Part VI, Section B, 16b When the organization evaluates its participation in a joint venture, the transactions are handled carefully to ensure that the organization's tax-exempt status is intact with regard to the arrangement. The operations of the joint venture are carefully reviewed by management and legal counsel, and the transaction is not entered into unless it is a reflection of the organization's tax-exempt purpose. A clause is inserted into the joint venture agreement that the operations of the joint venture must be performed in a manner that will not jeopardize the organization's tax-exempt status. Part VII, Section A, Line 1a, Column E Other Reportable Compensation for Patrick Quinlan, M.D., Chief Executive Officer; Warner Thomas, President & Chief Operating Officer; Scott Posecai, Sr. Vice President and Chief Financial Officer; and Bobby Brannon, Executive Vice President, Director of Finance, and Treasurer includes $1,687,861; $628,489; $616,669; and $0, respectively, as amounts includable in income under Section 457(f) due to vesting. A portion of this amount attributable to prior years has been reported by Ochsner Clinic Foundation as Other Deferred Compensation for the taxable years in which the respective amounts were deferred by the employee by section 457(f) but not substantially vested. ADDITIONAL COMPENSATION EXPLANATION Part VII, Section A, Line 1a COMPENSATION OF DIRECTORS AND AVERAGE HOURS PER WEEK DEVOTED TO POSITION The amount of time shown for those Directors listed as "Board Member Sr Phys" as "average hours per week devoted to position" on the Form 990 for Ochsner Clinic Foundation (EIN 72-0502505) consists primarily of role as a Senior Physician of Ochsner Clinic Foundation. Additional time spent on boards, committees and through fulfilling other responsibilities as a member of one or more Boards of the varied Ochsner organizations is shown as a nominal amount for Ochsner Health System and/or Ochsner Community Hospitals. As a Senior Physician Director of an integrated health system, these individuals devote time to board activities of all 501(c)(3) members of the system to varying degrees including Ochsner Health System, Ochsner Clinic Foundation and Ochsner Community Hospitals. Those directors listed as "Board Member Sr Phys" on the Form 990 for Ochsner Clinic Foundation (EIN 72-0502505) are compensated entirely due to their role as a Senior Physician of a member of the integrated health system. The amount of time shown for those Directors listed as "Community Directors" for "average hours per week devoted to position" includes time spent on boards, on committees and through fulfilling other responsibilities as a member of the Board of varied Ochsner organizations. As a Community Director of an integrated health system, each Community Director devotes time to all 501(c)(3) members of the system to varying degrees including Ochsner Health System, Ochsner Clinic Foundation and Ochsner Community Hospitals. ADDITIONAL COMPENSATION EXPLANATION Part VII, Section A, Line 1a COMPENSATION OF OFFICERS AND SYSTEM-LEVEL KEY EMPLOYEES AND AVERAGE HOURS PER WEEK DEVOTED TO POSITION Compensation and average hours worked for Bobby Brannon include all compensation related to the Ochsner Health System, which includes Ochsner Health System (OHS, EIN 20-5296918), Ochsner Clinic Foundation (OCF, EIN 72-0502505) and Ochsner Community Hospitals (OCH, EIN 20-5297040), all related 501(c)(3) organizations. Other members of the Ochsner network are charged a portion of these amounts. The amount of time shown for each officer as "average hours per week devoted to position" on this form of the organization that pays the officers directly consists primarily of role as an officer of the integrated health system. Additional time spent on boards, committees and through fulfilling other responsibilities as an officer of the integrated health system is shown as a nominal amount on the forms of the related organizations, but in reality the time is more evenly distributed across all entities. ADDITIONAL COMPENSATION EXPLANATION Part VII, Section A, Line 1a KEY EMPLOYEES COMPENSATED BY RELATED ORGANIZATIONS Dr. Richard Guthrie and Michael Hulefield were employed and compensated by Ochsner Health System, 20-5296918, 501(c)(3), a related organization. Each key employee spent substantially all of his time on duties related to his position with Ochsner Clinic Foundation, and in all other respects met the requirements of a Key Employee of Ochsner Clinic Foundation. Nancy Davis and Dr. Joseph Bisordi are employed and compensated by Ochsner Health System, 20-5296918, 501(c)(3), a related organization. Both, in their duties as leaders of the integrated health system, spend a substantial amount of their time on duties pertaining to Ochsner Clinic Foundation, and in all other respects meet the requirements of Key Employees of Ochsner Clinic Foundation. The amount of time shown for each key employee as "average hours per week devoted to position" on this form of the organization that pays the key employees directly consists primarily of role as a key employee of the integrated health system. Additional time spent on boards, committees and through fulfilling other responsibilities as a key employee of the Ochsner organizations is shown as a nominal amount on the forms of the related organizations, but in reality the time is more evenly distributed across all entities. Changes in Net Assets or Fund Balances: Form 990, Part XI, line 5: Net unrealized losses on investments: -21,159,381. Investment expenses: -459,954. Items from Changes in Fund Balance that are part of 990 Part VIII -6,696,870. Unrestricted Impairments Gain (Loss) -1,358,491. Additional Pension Liability -70,998,060. Net Assets Released for Capital Acquisitions 1,338,396. Other (Miscellaneous and Rounding 17,108. Total to Form 990, Part XI, Line 5: -99,317,252. Part XII, Line 2c The process regarding the committee responsible for the audit, review, or compilation of the organization's financial statements and selection of an independent accountant has not changed from the prior year. Deuteron Realty 1514 Jefferson Highway New Orleans LA 70121 721079347 Nominee Real Estate Corporation LA 0 1000 N/A East Baton Rouge Medical Center LLC 17000 Medical Center Dr Baton Rouge LA 70816 201729674 Patient Care DE 100400000 26839347 N/A Foundation Assets LLC 1514 Jefferson Highway New Orleans LA 70121 770589660 Holding of donated interest in fractional share of ground lease-New Orleans LA 35810 144104 N/A Gulf Coast Physician Network LLC 6341 Lakeland East Dr Flowood MS 39208 753009725 provides healthcare svcs to employees of MS coast casinos LA 133000 86578 N/A Ochsner Bayou LLC 4608 Highway 1 Raceland LA 70394 204670876 Operation of Ochsner St. Anne General Hospital LA 30112000 12241966 N/A Ochsner Clinic LLC 1514 Jefferson Highway New Orleans LA 70121 720276883 Physician Services LA 690740000 135627086 N/A Ochsner Urgent Care LLC 1514 Jefferson Highway New Orleans LA 70121 720502505 Holding of Gulf Coast Outpatient Centers LA 0 0 Ochsner Clinic LLC Gulf Coast Outpatient Centers LLC 1514 Jefferson Highway New Orleans LA 70121 208241553 Holding of Gulf Coast Outpatient Centers companies LA 0 0 Ochsner Urgent Care LLC Gulf Coast Outpatient Centers -- Westbank LLC 1514 Jefferson Highway New Orleans LA 70121 208241691 Patient Care LA 0 0 Gulf Coast Outpatient Centers LLC Gulf Coast Outpatient Centers -- Uptown LLC 1514 Jefferson Highway New Orleans LA 70121 208242525 Patient Care LA 0 0 Gulf Coast Outpatient Centers LLC Gulf Coast Outpatient Centers -- Mandeville LLC 1514 Jefferson Highway New Orleans LA 70121 208242348 Patient Care LA 0 0 Gulf Coast Outpatient Centers LLC Ochsner Home Medical Equipment LLC 1514 Jefferson Highway New Orleans LA 70121 720502505 Sales of Durable Medical Equipment to Patients LA 3390000 2533491 N/A Ochsner Medical Center - Northshore LLC 1514 Jefferson Highway New Orleans LA 70121 271770321 Patient Care LA 66245000 45877847 N/A Ochsner Health System 1514 Jefferson Highway New Orleans LA 70121 205296918 Health Care support LA 501(c)(3) 509(a)(3) Type II N/A 0 Ochsner Community Hospitals 1514 Jefferson Highway New Orleans LA 70121 205297040 Patient Care LA 501(c)(3) 170(b)(1) (A)(iii) Ochsner Health System 0 Brent House Corporation 1512 Jefferson Highway New Orleans LA 70121 720872457 Rents hotel rooms to patients/guests of Ochsner facilities. LA 501(c)(3) 509(a)(3) Type II Ochsner Clinic Foundation 1 Ochsner System Protection Company 1514 Jefferson Highway New Orleans LA 70121 271170999 Captive Insurance LA 501(c)(3) 509(a)(3) Type I Ochsner Clinic Foundation 1 1 0 0 1 0 0 0 0 1 1 1 1 0 0 1 1 0 1 Brent House Corporation A 2047230 Intercompany Billings - Mkt Value Ochsner Community Hospitals D 119124259 Loan Balance Ochsner Health System I 1172665 Intercompany Billings - Mkt Value Brent House Corporation J 1034856 Intercompany Billings - Mkt Value Ochsner Community Hospitals J 4578286 Intercompany Billings - Mkt Value Brent House Corporation K 41634 Intercompany Billings - Mkt Value Ochsner Community Hospitals K 667409 Intercompany Billings - Mkt Value Ochsner Health System K 10540 Intercompany Billings - Mkt Value Brent House Corporation L 1564367 Intercompany Billings - Mkt Value Ochsner Community Hospitals L 6695153 Intercompany Billings - Mkt Value Ochsner System Protection Company L 2922520 Intercompany Billings - Mkt Value Brent House Corporation O 39480 Intercompany Billings - Mkt Value Ochsner Community Hospitals O 9739 Intercompany Billings - Mkt Value Ochsner Health System O 104699070 Intercompany Billings - Mkt Value Brent House Corporation P 1473347 Intercompany Billings - Mkt Value Ochsner Community Hospitals P 7827565 Intercompany Billings - Mkt Value Ochsner Health System P 1849995 Intercompany Billings - Mkt Value Ochsner Community Hospitals R 392859 Intercompany Billings - Mkt Value Ochsner Health System R 16429 Intercompany Billings - Mkt Value Statement Regarding Hurricane Isaac The taxpayer's tax records and its tax professional/practitioner's office were located in New Orleans, LA during and after the devastation caused by Hurricane Isaac. The IRS granted special tax relief in Issue Number IR 2012-70 dated September 5, 2012 by postponing taxpayer filing and payment deadlines until January 11, 2013 for affected taxpayers hit hardest by Hurricane Isaac. Pursuant to Notice 2012-70 dated September 5, 2012 taxpayers who reside in or have a business located in the following parishes qualify for the relief: Ascension, Assumption, East Baton Rouge, East Feliciana, Iberville, Jefferson, Lafourche, Livingston, Orleans, Plaquemines, St. Bernard, St. Charles, St. Helena, St. James, St. John the Baptist, St. Mary, St. Tammany, Tangipahoa, Terrebonne, Washington and West Feliciana. The Louisiana parishes listed above constitute a covered disaster area for purposes of Treas. Reg. Section 301.7508A-1(d)(2) and are entitled to the relief detailed below.Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. Section 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose books, records, or tax professionals' offices are in the covered disaster area, are also entitled to relief. Under section 7508A, the IRS gives affected taxpayers until January 11, 2013 to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns) or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring on or after August 26, 2012 and on or before January 11, 2013. The taxpayer respectfully requests that any interest and/or penalties that may be due as a result of the taxpayer filing its tax returns and paying its taxes after the normal extended due dates be waived. The late filing of the returns and payment of taxes after the normal extended due dates for the returns was not due to negligence or willful disregard for the law. The taxpayer has always filed its tax returns and paid its taxes by the due dates. However, due to circumstances beyond its control, the taxpayer was unable to meet the normal due dates for the returns and payments.