2013-11-07T08:56:06-06:00 2012-12-31 010391345 Berry Dunn McNeil & Parker LLC PO Box 1100 Portland ME 041041100 990 2012-01-01 010263198 Down East Community Hospital DOWN 2072553356 11 Hospital Drive Machias ME 04654 Lynnette Parr 2072553356 2013-10-03 1 Barbara J McGuan CPA P00219457 2077752387 2013-10-03 2012 2016-02-25 16:41:14Z Douglas Jones 11 Hospital Drive Machias ME 04654 36088258 0 X www.dech.org X 1963 ME Acute Care Critical Access Hospital 14 12 336 32 0 0 1073878 83488 35350668 35158684 179149 194475 0 0 36603695 35436647 376910 68467 0 0 19889297 20465022 0 0 0 16092371 15607566 36358578 36141055 245117 -704408 25532361 25628890 13457640 14674788 12074721 10954102 X Provide access to quality healthcare and promote community wellness through the delivery of primary, emergency and ancillary inpatient and outpatient healthcare. The Hospital strives to improve the overall health of the communities we serve while exceeding customer expectations. 0 0 2255372 9504761 Surgical services to inpatients and outpatients, totaling 2,040 surgeries. 4172530 5834707 Care for medical/surgical unit patients. Unit provided care to 1045 admissions for 3,348 patient days. 2049617 12226476 Imaging Services to inpatients and outpatients. 15,756 radiological exams were provided to inpatients and outpatients. 22268568 68467 7516650 Various other medical services supplied to patients. 22268568 68467 7516650 30746087 1 1 0 1 0 0 0 0 0 1 1 0 0 0 1 0 0 1 0 0 0 0 0 0 0 0 1 1 1 0 1 1 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 1 1 0 0 0 1 61 0 1 336 1 0 0 0 0 0 0 0 0 0 0 X 14 12 0 0 0 0 1 1 0 1 1 0 0 1 1 1 1 1 1 1 0 0 ME X X Lynnette Parr 2072553356 11 Hospital Drive Machias ME 04654 Eric Burke MD 2.00 X X 0 0 0 Douglas Jones 38.00 2.00 X X 284844 2703 9596 Kara Dwight DO 38.00 2.00 X 367237 0 19596 Greg Campbell Ph D 2.00 X X 0 0 0 John Church 2.00 X X 0 0 0 Nora Dickinson 2.00 X 0 0 0 Cynthia Huggins 2.00 X X 0 0 0 Mortimer Lockett 2.00 X 0 0 0 Elizabeth Neptune 2.00 X 0 0 0 David Whitney 2.00 X 0 0 0 Thomas Potter 2.00 X X 0 0 0 Rebecca Irving 2.00 X 0 0 0 Katherine Land 2.00 X 0 0 0 Michael Hennessey 2.00 X 0 0 0 Wayne Peters 2.00 X 0 0 0 Patti Sansing 2.00 X 0 0 0 James Thompson 2.00 X 0 0 0 Lynnette Parr 38.00 2.00 X 133538 1267 15176 Dhanvant Rathod 40.00 X 456153 0 19596 Leonid Brodsky 40.00 X 409428 0 19596 Rita Ten 40.00 X 409392 0 19596 Stephen Madigan 40.00 X 433898 0 17096 Thomas Crowe 40.00 X 504209 0 9596 Aziz Massaad MD 40.00 0.00 X 297000 0 0 3295699 3970 129848 29 1 1 0 Physician Services Inc 126 Osborne Rd Farmington ME 04398 Physician Staffing Services 1229100 Machias Primary Care Services Inc PO Box 398 Machias ME 04654 Physician Staffing Services 334944 Dahl Chase Diagnostics 417 State Street Bangor ME 04401 Diagnostic Services 324913 Downeast Medical Associates PO Box 317 Machias ME 04654 Surgical Call Services 297000 CPS Inc PO Box 116474 Atlanta GA 30368 Pharmacy Management & Staffing 291407 19 83488 83488 Patient Revenue 621400 61333112 61333112 Electronic Health Records 621400 672430 672430 Other Revenue 621400 388858 312768 76090 Provision for Bad Debts 621400 -2021713 -2021713 Contractual/Char. Adj. 621400 -25214003 -25214003 35158684 166435 166435 667651 12000 639255 12356 28396 -356 28040 28040 35436647 35082594 0 270565 X 68467 68467 829755 829755 15655710 14427059 1228651 706482 633555 72927 2206402 1961193 245209 1066673 935992 130681 174575 174575 76845 76845 4602069 4602069 122997 51068 71929 1430685 887363 543322 999310 994610 4700 25610 16451 9159 212626 212626 1527524 1527524 854007 200455 653552 Supplies 2925540 2919712 5828 Temporary Personnel 1246251 1246251 Service Provider Tax 815116 815116 Miscellaneous 594411 61692 532719 36141055 30746087 5394968 0 4993 1125 4574061 4478791 4443416 5039118 139966 104974 436757 451425 295406 299395 28467661 16087693 13073282 12379968 2479254 2801507 85226 72587 25532361 25628890 2793010 3234522 5396208 4817267 451460 256569 4816962 6366430 13457640 14674788 X 10672567 9572855 58919 38012 1343235 1343235 12074721 10954102 25532361 25628890 X -704408 227609 -643820 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 9072 9072 0 Explanation of Lobbying Activities: Part II-B, Line 1: The Organization pays dues to local associations, a portion of which are attributable to lobbying activities. 2594743 0 370531 34976 2930298 1653523 1000900 -32851 26829 2594743 1463886 208434 18797 1653523 1153005 326009 15128 1463886 1635051 -463672 18374 1153005 0.43000 0.57000 0 0 257946 257946 15316100 6434283 8881817 11687768 9159690 2528078 1205847 493720 712127 12379968 Unfunded Pension Liability 2832084 Estimated Third Party Payor Settlements 3534346 6366430 Description of Intended Use of Endowment Funds: Part V, Line 4: Growth of investment to provide earnings that will support operations. 1 1 1 X 0 1 1 0 1 1 1 462 1052000 1052000 0.02910 1 462 1052000 1052000 0.02910 81165 81165 0.00220 105361 105361 0.00290 186526 186526 0.00510 1 462 1238526 1238526 0.03420 1172594 1 0 1 1 Down East Community Hospital

11 Hospital Drive Machias ME 04654

X X X X Down East Community Hospital 1 1 1 200.000000000000 0 1 X X 1 1 X X X X X X 1 X X X 0 1 X 0 0 Part I, Line 6a: The senior leadership team, with approval by the board of trustees, manages the community benefit activities of the Hospital. An expense budget is identified annually for community benefit activities. Community benefit activities are reported each year in the Hospital's annual report. Part III, Line 4: See Page 8 of audited financial statements for footnote disclosure.Bad debt expense represents actual and estimated write-offs as identified by the Hospital. Actual write-offs represent accounts that have exceeded 90 days in Accounts Receivable with no payment plans established. Estimated write-offs represent bad debts that are expected based on payment percentage assumptions as determined by the age and payor type of the receivable. Down East Community Hospital Part V, Section B, Line 20d: The Organization offers only free care, so no amount was billed to eligible individuals. Part VI, Line 2: DECH participates with Eastern Maine Health System's community health needs assessment process. Community meetings are held in the hospital's service area and information is collected and reported in a formalized report that the hospital then uses to evaluate and respond to the health needs of its service area. Part VI, Line 3: Each private pay patient that receives a bill from the Hospital will receive a copy of the Hospital's free care guidelines and application with their bill. The free care guidelines are posted throughout the hospital in patient waiting areas and the application is also available on the Hospital's website. At every opportunity, billing personnel will communicate to patients the free care policy and encourage patients to apply.The Hospital also contracts with a collection organization who will review certain private pay patients' eligibility for MaineCare (Medicaid) insurance coverage. The Organization will contact the patients and help take them through the MaineCare application process, if applicable. Part VI, Line 4: Down East Community Hospital provides services to rural communities of Washington County, with 81% of its admissions coming from its service area covering 24 towns from Harrington to Lubec (16% come from the HSA for Calais Regional Hospital and 1% come from the HSA for Maine Coast Memorial Hospital). The population of 32,175 for the Hospital Service Area (HSA) has an average household income of $26,081, compared to $46,933 for the State of Maine. Of the HSA population, approximately 18% fall below the poverty line and the average age is 40.2 years. Part VI, Line 5: The Hospital furthers its exempt purpose by promoting the health of the community. The board consists of volunteer community members that are elected by the Corporators of the Hospital. The Hospital has an open medical staff where all applicants have the opportunity to obtain membership as long as the guidelines as determined by the medical staff bylaws are met. 1 Sunrise Nursing Care Facility 11 Hospital Drive Machias ME 04654 222582949 501(c)(3) 59860 Support to affiliate for operations and capital acquisitions. Women's Health Resource Library PO Box 463 Milbridge ME 04658 550880014 501(c)(3) 8607 To support the Womens' Health Resource Library. 2 0 Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: The Organization only awards grants to qualifying public charities exempt under 501(c)(3) or municipalities. Additional monitoring is not deemed necessary. X X 0 0 0 0 0 0 0 0 0 Douglas Jones 262669 2703 0 0 22175 0 0 0 9506 90 294350 2793 0 0 Kara Dwight DO 367237 0 0 0 0 0 10000 0 9596 0 386833 0 0 0 Dhanvant Rathod 456153 0 0 0 0 0 10000 0 9596 0 475749 0 0 0 Leonid Brodsky 409428 0 0 0 0 0 10000 0 9596 0 429024 0 0 0 Rita Ten 409392 0 0 0 0 0 10000 0 9596 0 428988 0 0 0 Stephen Madigan 433898 0 0 0 0 0 7500 0 9596 0 450994 0 0 0 Thomas Crowe 504209 0 0 0 0 0 0 0 9596 0 513805 0 0 0 Aziz Massaad MD 297000 0 0 0 0 0 0 0 0 0 297000 0 0 0 A Maine Health and Higher Educational Facilities Authority 010314384 560425V80 2007-11-01 1035000 Finance New Construction and Equipment 0 0 1 B Maine Health and Higher Educational Facilities Authority 010314384 560427JA5 2010-06-24 5480000 Refinance 1998 Bond 0 0 1 A 364800 1040241 48449 33641 969739 2010 0 0 1 1 B 1724095 5865921 341845 65460 5473542 2010 1 0 1 1 A 0 0 0 0 0 0 0 B 0 0 0 0 0 0 0 A 0 0 0 0 0 0 0 0 0 B 0 0 0 0 0 0 0 0 0 A 0 B 0 Part II, Line 3 Bond Issue Proceeds The total proceeds of issue listed on line 3 differ from the issue prices listed on Part I due to the amount of premiums of each bond. Downeast Medical Associates Entity more than 35% owned by Aziz Massaad, former director 297000 Dr. Aziz Massaad provided on-call physician services through his medical practice Downeast Medical Associates, to the Organization. 0 Rita Ten MD Family member of Dr. Aziz Massaad, former board member 428988 Dr. Rita Ten provided physician anesthesia services to the Organization. 0 Form 990, Part I, Lines 8-18: Prior year numbers have been restated to present revenue net of bad debt expense. Form 990, Part VI, Section A, line 6 Effective January 1, 2011, Down East Health System undertook a corporate restructuring whereby Down East Health System and Down East Health Trust were merged into Down East Community Hospital, leaving the Hospital as the surviving corporation. As a result of this merger, the members of the Organization, known as "Corporators," shall be those individuals who are Corporators of Down East Community Hospital as of January 1, 2011, and such other individuals as may be elected to membership in this Corporation by a majority vote of (i) those Corporators present at the Annual Meeting of this Corporation; or (ii) the Board of Trustees. A Corporator is elected for life, unless the Corporator voluntarily resigns. Additionally, those individuals who are appointed as members of the Active Medical Staff of Down East Community Hospital are eligible to serve as Corporators during the period of their appointment to the Active Medical Staff if so desired. Form 990, Part VI, Section A, line 7a Effective January 1, 2011, the Corporators shall elect the Trustees of this Corporation from a slate of nominees presented by the Nominating Committee in accordance with the provisions of the Bylaws. Form 990, Part VI, Section B, line 11 The 990 is reviewed by the CEO and CFO and a copy is provided to the full board before filing. Form 990, Part VI, Section B, line 12c In order to monitor compliance with the conflict of interest policy for the Organization, each member of the board of trustees is required annually to submit a conflict of interest document and the compliance officer verifies the receipt of these documents. The compliance officer also reviews payments issued to the board of trustees and any contracts in effect with board members. Department managers and key personnel are also required to submit a conflict of interest statement annually and new employees sign a conflict of interest statement at the time of hire. Form 990, Part VI, Section B, line 15a Compensation for the Organization's CEO is set by the Executive Compensation Committee made up of independent board members. Form 990, Part VI, Section C, line 19 The financial Statements and annual report are made available to the public upon request. The Organization's governing documents and conflict of interest policy are not made available to the public. Other Fees Form 990, Part IX, line 11g Purchased Services: Program service expenses 1,768,609. Management and general expenses 0. Fundraising expenses 0. Total expenses 1,768,609. Professional Fees: Program service expenses 2,747,897. Management and general expenses 0. Fundraising expenses 0. Total expenses 2,747,897. Collection Fees: Program service expenses 85,563. Management and general expenses 0. Fundraising expenses 0. Total expenses 85,563. Changes in Net Assets or Fund Balances: Form 990, Part XI, line 9: Unfunded Pension Liability Adjustment -643,820. Sunrise Nursing Care Facility 11 Hospital Drive Machias ME 04645 222582949 Nursing Care Facility ME 501(c)(3) Line 9 Down East Community Hospital 1 1 1 0 0 0 0 0 0 0 1 0 0 0 0 1 0 1 1 1 Sunrise Nursing Care Facility B 59860 Fair Market Value Sunrise Nursing Care Facility Q 122006 Fair Market Value Sunrise Nursing Care Facility S 130688 Fair Market Value Sunrise Nursing Care Facility A 14200 Fair Market Value