2013-08-14T13:34:33-05:00 2012-09-30 750800661 METHODIST HOSPITALS OF DALLAS 1441 N BECKLEY AVE DALLAS TX 75203 990 2011-10-01 750800661 METHODIST HOSPITALS OF DALLAS METH 2149474581 1441 N BECKLEY AVE C/O TAX DEPT DALLAS TX 752031201 MICHAEL J SCHAEFER 2149474581 2013-08-13 1 DWIGHT F WILLIAMS P00544474 2149474581 2011 2016-02-25 16:41:14Z X METHODIST HEALTH SYSTEM MICHAEL J SCHAEFER 1441 N BECKLEY AVE DALLAS TX 75203 1239201715 0 X HTTP://WWW.METHODISTHEALTHSYSTEM.ORG/ X 1935 TX TO IMPROVE AND SAVE LIVES THROUGH COMPASSIONATE QUALITY HEALTH CARE.. 27 23 6052 1585 916064 468389 16534561 18940545 742198249 1212887125 1736872 2926685 -5107192 2460945 755362490 1237215300 8459368 17259768 0 0 351858484 428506230 0 0 0 325161674 703165978 685479526 1148931976 69882964 88283324 989740329 1255274039 316777483 454505584 672962846 800768455 X TO IMPROVE AND SAVE LIVES THROUGH COMPASSIONATE QUALITY HEALTH CARE. 1 0 1073266582 17259768 1219848983 THE PRIMARY MISSION OF THE MEMBERS OF THE METHODIST HOSPITALS OF DALLAS D/B/A METHODIST HEALTH SYSTEM (MHS) IS TO SERVE PEOPLE IN DEFINED SERVICE AREAS BY MEETING THEIR HEALTH NEEDS EFFECTIVELY AND IN A MANNER THAT REFLECTS A COMMITMENT TO CHRISTIAN CONCEPTS OF LIFE AND LEARNING. SPECIFICALLY, THIS MISSION IS PURSUED BY OPERATING FOUR GENERAL ACUTE-CARE HOSPITALS AND OTHER HEALTH CARE SERVICES, EDUCATION AND SUPPORT PROGRAMS NEEDED BY THE COMMUNITIES IN NORTH CENTRAL TEXAS. HOSPITALS ARE: METHODIST DALLAS MEDICAL CENTER (MDMC), A 515 LICENSED BED TEACHING REFERRAL HOSPITAL; METHODIST CHARLTON MEDICAL CENTER(MCMC) A 269 LICENSED BED HOSPITAL; METHODIST MANSFIELD MEDICAL CENTER (MMMC), A 168 BED HOSPITAL;AND METHODIST RICHARDSON MEDICAL CENTER(MRMC)WHICH IS NOW OPERATING A 209 BED HOSPITAL SPREAD ACROSS 2 CAMPUSES.METHODIST REHABILITATION HOSPITAL OPENED HAS 40 BEDS. IT IS NEXT DOOR TO THE MCMC CAMPUS AND IS JOINTLY OWNED WITH CENTERRE HEALTH. IT ALLOWS US TO PROVIDE A LARGER ARRAY OF REHABILITATIVE CARE.A PARTNERSHIP BETWEEN MHS AND AREA PHYSICIANS PROVIDED FOR THE OPENING OF A 16 BED METHODIST MCKINNEY HOSPITAL IN 2010 TO SERVE COLLIN COUNTY AND THE SURROUNDING COMMUNITIES.METHODIST HOSPITAL FOR SURGERY IN ADDISON IS A PARTNERSHIP WITH A PHYSICIAN GROUP. THE FACILITY OPENED IN 2010 AND IS A CENTER OF EXCELLENCE FOR SPINE AND ORTHO SURGERY AND THE ONLY FACILITY OF ITS KIND IN NORTH TEXAS. MHS IS COMMITTED TO ENHANCING THE AVAILABILITY OF PHYSICIANS SERVICING THE COMMUNITY. METHODIST FAMILY HEALTH CENTERS EXTEND FAMILY HEALTH CARE AND GENERAL MEDICAL SERVICES IN 17 LOCATIONS IN THE MHS SERVICE AREA. METHODIST MIDLOTHIAN HEALTH CENTER OFFERS DIAGNOSTIC IMAGING TO SERVE THE NEEDS OF THE GROWING ELLIS COUNTY COMMUNITY. MDMC IS ON A CAMPUS NEAR DOWNTOWN DALLAS BETWEEN A STABLE RESIDENTIAL AREA ON ONE SIDE, AND AN ECONOMICALLY DEPRESSED AREA ON THE OTHER. MDMC SERVES AS A TEACHING AND REFERRAL CENTER FOR MHS, AND TRAINS NEARLY 80 RESIDENTS ANNUALLY IN INTERNAL MEDICINE, FAMILY PRACTICE, GENERAL SURGERY, OBSTETRICS AND GYNECOLOGY. THE HOSPITAL'S INDIGENT CARE CLINIC, THE GOLDEN CROSS ACADEMIC CLINIC, IS LOCATED IN THE MARGARET AND ROBERT S. FOLSOM BUILDING ON COLORADO BLVD. ACROSS FROM MDMC. MCMC IS A GENERAL ACUTE CARE AND TEACHING HOSPITAL THAT SERVES THE COMMUNITIES OF SOUTHERN DALLAS COUNTY. IT HOUSES 1 OF ONLY 3 FAMILY PRACTICE RESIDENCY PROGRAMS IN THE DALLAS/FORT WORTH AREA. THE CAMPUS RECENTLY ADDED A NEW 72 BED PATIENT TOWER. MCMC IS THE LARGEST MEDICAL FACILITY SERVING SOUTHERN DALLAS COUNTY AND THE SURROUNDING COMMUNITIES. WHEN THE NEW PATIENT TOWER OPENED IN 2009, IT INCREASED MDMC'S POTENTIAL CAPACITY FROM 254 TO 309 PATIENT ROOMS. IT ALSO CREATED MORE MODERN PATIENT ROOMS; MORE EFFICIENT WORKSPACES FOR NURSING STAFF; A TELEMETRY FLOOR FOR HEART MONITORING; A SEVEN-ROOM SURGICAL SUITE WITH ONE OPERATING ROOM SPECIALLY DESIGNED FOR HEART SURGERY; AND AN ORTHOPEDIC UNIT WITH A REHABILITATION ROOM. THE RECENT BUILD OUT OF 3 ADDITIONAL FLOORS OF THE PATIENT TOWER HAS FURTHER ENHANCED MCMC'S CAPACITY. THE NEW QUICKCARE CLINIC, LOCATED IN THE OUTPATIENT CENTER OF MCMC, IS OPEN SEVEN DAYS A WEEK WITH CONVENIENT HOURS. STAFFED BY A PHYSICIAN AND NURSE PRACTITIONER, THE CLINIC PROVIDES HIGH QUALITY CARE FOR EVERYTHING FROM SORE THROATS AND FLU TO X-RAY AND IMAGING SERVICES, PRE-EMPLOYMENT HEALTH SCREENINGS, AND LABORATORY SERVICES. DEMAND KEEPS GROWING FOR METHODIST'S SERVICES PARTICULARLY AS OTHER AREA HOSPITAL PROVIDERS BECOME STRESSED AND/OR CLOSE. THE 168 BED MMMC OPENED IN 2006 AND OFFERS HIGH-QUALITY CARE TO THE GROWING AREAS OF MANSFIELD AND THE SURROUNDING COMMUNITIES. THE HOSPITAL RECENTLY COMPLETED AN EXPANSION INCLUDING A 36-BED MEDICAL-SURGICAL UNIT, ADDITIONAL OPERATING SUITES, AND AN EXPANDED EMERGENCY DEPARTMENT. MHS CHOSE TO BUILD A FULL SERVICE COMMUNITY HOSPITAL IN MANSFIELD AS AN ANCHOR FOR ATTRACTING THE ESTABLISHMENT OF MORE PHYSICIANS AND OTHER TYPES OF HEALTH CARE PROVIDERS. IN 2010 MMMC CELEBRATED ITS NEWLY EXPANDED ER, ICU, AND TELEMETRY FLOOR. THE $37 MILLION EXPANSION DOUBLED THE SIZE OF THE ER WITH 35 TREATMENT ROOMS, ADDED 8 ICU TREATMENT ROOMS AND 36 TELEMETRY PATIENT ROOMS. TO ENSURE MMMC PROVIDES A PLACE WHERE LIFE SHINES BRIGHT AND INFANTS CAN BE BORN CLOSE TO HOME, A $9 MILLION EXPANSION OF THE WOMEN'S PAVILION WAS COMPLETED IN 2012. THE NEW 9,413-SQUARE-FOOT ADDITION ENHANCED LABOR AND DELIVERY SERVICES AT MMMC TO A TOTAL OF 13 LDR SUITES THAT WILL ACCOMMODATE UP TO 3,800 DELIVERIES EACH YEAR. ALSO ADDED WAS AN EXPANDED ANTEPARTUM AREA; EXPANDED NURSE/PHYSICIAN WORK AREAS; AND EXPANDED C-SECTION RECOVERY AND SUPPORT. MRMC SERVES THE RESIDENTS OF RICHARDSON, PLANO, NORTH DALLAS, AND ITS SURROUNDING COMMUNITIES. IN OCTOBER 2011, MHS ACQUIRED THE ASSETS OF THE RICHARDSON HOSPITAL AUTHORITY (RHA) AND CONTINUED TO OPERATE THE HOSPITAL FACILITY AS PART OF THE METHODIST SYSTEM. THE HOSPITAL OPERATIONS OF THE 209 BED ACUTE CARE HOSPITAL ARE NOW WITHIN THE METHODIST SYSTEM AND ARE INCLUDED AS PART OF THIS RETURN. MRMC HAS 2 CAMPUSES, CAMPBELL RD. AND BUSH/RENNER. THE CAMPBELL RD. CAMPUS IS A 205-BED ACUTE CARE FACILITY STAFFED BY INDEPENDENTLY PRACTICING PHYSICIANS OFFERING MORE THAN THIRTY-FIVE DIFFERENT SPECIALTIES. THE BUSH/RENNER CAMPUS IN EAST RICHARDSON INCLUDES AN OUTPATIENT HOSPITAL WITH A FULL-SERVICE EMERGENCY DEPARTMENT. IT'S ALSO HOME TO METHODIST RICHARDSON CANCER CENTER, WHERE SOME OF THE LATEST ADVANCEMENTS IN MEDICAL, SURGICAL AND RADIATION ONCOLOGY ARE PROVIDED IN ONE CONVENIENT LOCATION.MHS SERVICE AREAS HAVE: (I) HIGH PERCENTAGES OF HOUSEHOLDS IN POVERTY, (II) LOW MEDIAN HOUSEHOLD INCOME, (III) HIGH PERCENTAGES OF ADULTS WITH LESS THAN HIGH SCHOOL EDUCATION, (IV) HIGH PERCENTAGES OF BLUE COLLAR WORKERS, AND (V) LOW PERCENTAGES OF MANAGERIAL AND PROFESSIONAL WORKERS (VI) HIGH UNEMPLOYMENT (VII) A HIGH RATE OF BIRTHS TO TEENAGERS (VIII), HIGH PREMATURE BIRTHS AND INFANT MORTALITY AND (IX) HIGH PERCENTAGES OF CHILDREN. CONSEQUENTLY, IN FISCAL YEAR 2012 MHS PROVIDED A SUBSTANTIAL AMOUNT OF CHARITY CARE AND GOVERNMENT-SPONSORED INDIGENT HEALTH CARE, AS WELL AS A NUMBER OF OTHER COMMUNITY BENEFITS IN ACCOMPLISHING ITS EXEMPT PURPOSES. WHETHER FINANCIALLY OR MEDICALLY INDIGENT, THERE IS NO QUESTION THAT THE DEMAND FOR HEALTH CARE FOR THE INDIGENT POPULATION IS GREAT AND THE COUNTY SUPPORTED PARKLAND HOSPITAL IS NOT AND LIKELY CANNOT CARE FOR ALL THOSE WHO QUALIFY. AS A RESULT, THE MAJOR HOSPITALS SERVICING DALLAS COUNTY HAVE COLLABORATED IN THE DEVELOPMENT OF THE DALLAS COUNTY INDIGENT CARE PLAN WHICH IS PART OF THE UPL PROGRAM APPROVED BY THE STATE AND FEDERAL GOVERNMENTS. THE DALLAS COUNTY INDIGENT CARE PLAN CALLS FOR THE EXPANSION OF ACCESS TO THE INDIGENT BY COLLABORATING WITH THE DALLAS COUNTY MEDICAL SOCIETY WHICH OPERATES PROJECT ACCESS DALLAS. PROJECT ACCESS FUNCTIONS AS A VIRTUAL HEALTH PLAN FOR THE INDIGENT AND IS MADE UP OF A NETWORK OF VOLUNTEER PHYSICIANS, CHARITABLE CLINICS, HOSPITALS AND OTHER ANCILLARY PROVIDERS. BEGUN IN 2009, THROUGH UPL FUND SUPPORT, THERE IS AN ONGOING MAJOR EFFORT TO RAMP UP ACCESS TO MEDICAL HOMES AND OTHER HEALTH CARE TARGETING IN THE SOUTHERN SECTOR OF DALLAS COUNTY. THE INITIAL EFFORTS INCLUDE AN INCREASE OF FUNDING TO AREA INDIGENT CARE CLINICS.DALLAS COUNTY'S TRAUMA RATES TYPICALLY ARE HIGHER THAN STATE AND NATIONAL TRAUMA RATES. HISTORICALLY, THE COUNTY HAS RELIED ALMOST EXCLUSIVELY ON PARKLAND MEMORIAL HOSPITAL (PARKLAND), MDMC AND BAYLOR UNIVERSITY MEDICAL CENTER (BAYLOR) TO HANDLE MAJOR TRAUMA. PARKLAND CURRENTLY OPERATES AS THE COUNTY'S PRIMARY TRAUMA FACILITY, SUPPORTED BY MDMC AND BAYLOR. MDMC'S COMMITMENT TO PROVIDE OUTSTANDING TRAUMA SERVICES TO DALLAS AND SURROUNDING COUNTIES IS DEMONSTRATED BY THE IMPROVEMENTS THAT MDMC HAS MADE WITHIN ITS OWN TRAUMA PROGRAM. MDMC IS DESIGNATED BY THE TEXAS DEPARTMENT OF HEALTH AS A LEVEL II MAJOR TRAUMA CENTER AND INCURS APPROXIMATELY $2M A YEAR IN EXPENSES RELATED TO RETAINING ON-CALL SURGEONS AND OTHER TRAUMA PERSONNEL, AS WELL AS PAYING A FEE TO SUB-SPECIALISTS FOR TREATMENT OF NON-FUNDED PATIENTS. MDMC DOES A GREAT DEAL TO FULFILL THE COMMUNITY NEED FOR EMERGENCY SERVICES. EVEN THOUGH MUCH OF MHS'S ANNUAL CHARITY CARE COMES FROM TRAUMA AND ER PATIENTS, MHS SAW ITS IMPORTANCE TO THE REGION AS A WHOLE. DURING FY 12 MDMC ER TREATED OVER 61,000 PATIENTS, MCMC TREATED OVER 72,000; MMMC TREATED OVER 50,000; AND MRMC TREATED OVER 33,000. LAST YEAR, MHS ANNOUNCED IT WILL COMMIT MORE THAN $108 MILLION TO EXPAND THE MDMC EMERGENCY, CRITICAL CARE, AND SURGERY DEPARTMENTS WITH A NEW SIX-STORY TRAUMA AND CRITICAL CARE CENTER. MHS, ALONG WITH TWO OTHER NON-PROFIT HOSPITALS IN DALLAS, JOINTLY SPONSORS A REGIONAL HELICOPTER, FIXED WING, AND GROUND AMBULANCE SERVICE CALLED CAREFLITE. MDMC MAINTAINS HELIPADS FOR THE HELICOPTER SERVICE AND PROVIDES MEDICAL CONTROL FOR BOTH GROUND AND AIR SERVICES. 1073266582 1 1 0 1 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 1 1 1 1 1 1 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 1 1 1 0 0 1 372 0 1 6052 1 1 1 0 0 0 0 0 0 0 X 27 23 1 0 1 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 1 X MICHAEL J SCHAEFER 2149474510 1441 N BECKLEY AVE DALLAS TX 752031201 LEVI DAVIS 2.00 X 0 0 0 STEVE FOLSOM 2.00 X 0 0 0 GREG CAMPBELL 2.00 X 0 0 0 JOHN COLLINS 2.00 X 0 0 0 JOE FORTSON 2.00 X 0 0 0 NORMAN G PROTHRO 2.00 X 0 0 0 JULIE YARBROUGH 2.00 X 0 0 0 JOHN FORD 2.00 X 0 0 0 JOHN RANDALL CANEDY 2.00 X 0 0 0 PEARL GARZA FRACCHIA 2.00 X 0 0 0 DUNCAN FULTON 2.00 X 0 0 0 LARRY GEORGE D MIN 2.00 X 0 0 0 RICHARD GRINER 2.00 X 0 0 0 JOSEPH SNAYD 2.00 X 0 0 0 GEORGE SHAFER 2.00 X 0 0 0 SHERON PATTERSON D MIN 2.00 X 0 0 0 KENNETH PRITCHETT 2.00 X 0 0 0 PETE SCHENKEL 2.00 X 0 0 0 ALLEN SCHNEIDER DO 2.00 X 0 0 0 JAMES SWAFFORD 2.00 X 0 0 0 RUBEN VELEZ MD 2.00 X 0 0 0 GEORGE SCHRADER 2.00 X 0 0 0 ROBERT HASLEY D MIN 2.00 X 0 0 0 STEPHEN MUELLER MD 2.00 X 0 0 0 DANIEL PEARSON III MD 2.00 X 0 0 0 W KELVIN WALKER 2.00 X 0 0 0 STEPHEN MANSFIELD 40.00 X X 1507591 0 216617 MICHAEL SCHAEFER 40.00 X 733932 0 124173 ROBERT MILONE 40.00 X 168805 0 29394 APRIL BOX 40.00 X 449216 0 55734 LAURA IRVINE 40.00 X 564258 0 74070 JONATHAN DAVIS 40.00 X 423776 0 69891 EKENNETH HUTCHENRIDER 40.00 X 375664 0 66834 TIM KIRBY 40.00 X 461812 0 39342 PAM STOYANOFF 40.00 X 632590 0 103387 MICHAEL PRICE 40.00 X 447690 0 75123 C BRIZIUS 40.00 X 341502 0 33233 PAMELA MCNUTT 40.00 X 410460 0 72003 JOHN BAUMGARTNER 40.00 X 381894 0 72239 RANDY WALKER 40.00 X 283120 0 53873 ADAM MYERS MD 40.00 X 483679 0 56835 J LEA 40.00 X 264077 0 11046 P FARROW 40.00 X 263345 0 25339 ZAKIR SHAIKH 40.00 X 270152 0 28647 JEANNE REEVES 40.00 X 252287 0 18161 STEVE TEDDER 40.00 X 220033 0 8846 M MAYO 0.00 X 420561 0 18687 M ARVIN 0.00 X 226682 0 8348 JOHN LACY 0.00 X 100105 0 14094 NANCY SIMON 0.00 X 271231 0 37778 9954462 0 1313694 323 1 1 0 ANESTHESIA CONSULTANTS 221 W COLORADO DALLAS TX 75203 MEDICAL 5463507 DALLAS AREA ACUTE PO BOX 971367 DALLAS TX 75397 MEDICAL 1601648 PERKINS AND WILL 10100 N CENTRAL EXPWY DALLAS TX 75231 DESIGN SERVICES 1239229 CARDIAC PERFUSION SERVICES 4612 GASTON AVE DALLAS TX 75246 MEDICAL 881913 TEXAS EM-I MEDICAL SERVICES 7032 COLLECTION CENTER DR CHICAGO IL 60693 MEDICAL 810750 48 9930120 8990809 19616 18940545 NET NON MR/MC PATIENT 621990 852227338 852227338 MEDICARE I/P 621990 173354315 173354315 MR MC MANAGED CARE 621990 124051066 124051066 MEDICARE O/P 621990 44692440 44692440 MEDICAID I/P 621990 9426756 9426756 9135210 8331284 803926 1212887125 2658109 2658109 188822 188822 1644110 1948970 -304860 -304860 -333260 28400 306021 37445 268576 268576 306021 -37445 PREMIER PURCHASING PAR 900099 1972241 1945626 26615 RELATED PURPOSE CONSUL 518210 291750 291750 MISC INCOME 621990 227469 227469 85523 85523 2576983 1237215300 1219848983 916064 2837886 17136456 17136456 123312 123312 7569328 7569328 362453985 329324787 33129198 12170733 10324385 1846348 21777663 18831497 2946166 24534521 21886768 2647753 888562 206570 681992 191400 191400 160004 160004 15614 15614 23795809 19207797 4588012 7049286 1118334 5930952 9014386 9014386 22030934 20563193 1467741 1063855 761946 301909 461181 354299 106882 6261275 6261275 43898834 40590862 3307972 6259686 6259686 CHARITY CARE 326558480 326558480 SUPPLIES 169185570 168983821 201749 INCOME TAX 110000 110000 BAD DEBTS 61600153 61600153 24620949 20419850 4201099 1148931976 1073266582 75665394 0 19886 64888 414549009 475894813 88489189 114277317 46065549 14316042 17888963 20900394 4936975 5779728 844271868 514948315 328734685 329323553 71441681 239227664 222417 3535716 14435383 1323567 1216461 12532692 39837796 989740329 1255274039 49352040 68995671 188600000 331310874 78825443 54199039 316777483 454505584 X 672431744 797129335 531102 3639120 672962846 800768455 989740329 1255274039 X 88283324 39522285 X X 1 1 1 X 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 297348 297348 1073047376 1073344724 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 159625 179824 151728 297348 788525 250000 250000 250000 250000 1000000 1500000 ORGANIZATIONS DIRECT AND INDIRECT POLITICAL CAMPAIGN ACTIVITIES: PART I-A, LINE 1: THE ABOVE AMOUNT REPRESENTS TWO COMPONENTS: (1) THE PORTION OF DUES TO PROFESSIONAL ORGANIZATIONS SUCH AS THE AMERICAN HOSPITAL ASSOCIATION AND THE TEXAS HOSPITAL ASSOCIATION TO EDUCATE GOVERNMENTAL LEADERS ON LEGISLATION EFFECTING THE ORGANIZATIONS ABILITY TO CARRY OUT ITS EXEMPT PURPOSE (2) AN ALLOCATION OF EMPLOYEE COSTS OF THE INDIVIDUALS DESIGNED AS COORDINATING ANY GOVERNMENTAL ADVOCACY EFFORTS ON BEHALF OF MHS 31350472 31350472 395159538 189705141 205454397 393932389 308645548 85286841 23829469 16597626 7231843 329323553 INTEREST RATE SWAPS 57015470 RETIREMENT & OTHER RESERVE LIAB. 23020450 I/C PAYABLES -25836881 54199039 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: MHS HAS CONCLUDED THAT IT DOES NOT HAVE ANY UNRECOGNIZED TAX BENEFITS RESULTING FROM CURRENT OR PRIOR PERIOD TAX POSITIONS. ACCORDINGLY, NO ADDITIONAL DISCLOSURES HAVE BEEN MADE IN THE FINANCIAL STATEMENTS. 1 1 X 1 X 0 1 1 1 0 1 1 119865566 17563403 102302163 0.09410 100072650 104314471 -4241821 0.00000 219938216 121877874 98060342 0.09410 15445828 176887 15268941 0.01400 21540604 6554939 14985665 0.01380 1623096 1623096 0.00150 17268157 17268157 0.01590 55877685 6731826 49145859 0.04520 275815901 128609700 147206201 0.13930 1000 1000 0.00000 80886 80886 0.00010 50252 50252 0.00000 739497 739497 0.00070 280 280 0.00000 871915 871915 0.00080 0 25052706 299732244 317153095 -17420851 X 1 1 1 METHODIST MCKINNEY HOSPITAL LLC HOSPITAL 0.57520 0.35650 2 METHODIST MCKINNEY HOSPITAL PROPERTY LLC REAL ESTATE HOLDINGS OF METHODIST MCKINNEY HOSPITAL 0.59900 0.24270 3 SRP-MEDICA INVESTORS ADDISON LP REAL ESTATE HOLDINGS ENTITY FOR METHODIST HOSPITAL FOR SURGURY 0.21840 0.22250 4 METDALSPI LLC (THROUGH METDALSPI HOLDING LLC) HOSPITAL 0.50500 0.49000 5 MHD-USO MANAGEMENT COMPANYLP MANAGEMENT SERVICES FOR ONCOLOGY PRACTICE 0.71400 0.28600 7 1 METHODIST DALLAS MEDICAL CENTER

1441 N BECKLEY AVE DALLAS TX 75203

X X X X 2 METHODIST CHARLTON MEDICAL CENTER

3500 W WHEATLAND RD DALLAS TX 75237

X X X X 3 METHODIST MANSFIELD MEDICAL CENTER

2700 E BROAD STREET DALLAS TX 76063

X X X 4 METHODIST RICHARDSON MEDICAL CENTER

401 W CAMPBELL ROAD RICHARDSON TX 75080

X X X 5 METHODIST REHABILITATION HOSPITAL

3020 W WHEATLAND RD DALLAS TX 75237

X X REHABILITATION HOSPITAL 6 METHODIST MCKINNEY HOSPITAL

8000 W ELDORADO PWKY MCKINNEY TX 75070

X X X 7 METHODIST HOSPITAL FOR SURGERY

17101 DALLAS PWKY ADDISON TX 75001

X X X METHODIST DALLAS MEDICAL CENTER 1 1 1 100.000000000000 1 100.000000000000 1 X X X X X X X 1 1 X X X X X X 1 0 1 X 0 0 METHODIST CHARLTON MEDICAL CENTER 2 1 1 100.000000000000 1 100.000000000000 1 X X X X X X X 1 1 X X X X X X 1 0 1 X 0 0 METHODIST MANSFIELD MEDICAL CENTER 3 1 1 100.000000000000 1 100.000000000000 1 X X X X X X X 1 1 X X X X X X 1 0 1 X 0 0 METHODIST RICHARDSON MEDICAL CENTER 4 1 1 100.000000000000 1 100.000000000000 1 X X X X X X X 1 1 X X X X X X 1 0 1 X 0 0 METHODIST REHABILITATION HOSPITAL 5 1 1 100.000000000000 1 100.000000000000 1 X X X X X X X 1 1 X X 1 0 0 X 0 0 METHODIST MCKINNEY HOSPITAL 6 1 1 200.000000000000 1 200.000000000000 1 X X X X X X X 1 1 X X X X X X 1 0 1 X 0 0 METHODIST HOSPITAL FOR SURGERY 7 1 1 200.000000000000 1 200.000000000000 1 X X X X X X X 1 1 X X X 1 0 1 X X 0 0 3 GOLDEN CROSS ACADEMIC CLINIC

122 W COLORADO BLVD DALLAS TX 75209

FREE STANDING CLINIC AND TEACHING FACILITY METHODIST CHARLTON FAMILY MEDICAL CENTER

3500 W WHEATLAND RD DALLAS TX 75237

OUTPATIENT CARE AND TEACHING CENTER METHODIST MIDLOTHIAN IMAGING CENTER

2210 BRYAN PLACE MIDLOTHIAN TX 76065

IMAGING CENTER PART I, LINE 3C: AS PART OF ITS MISSION, MHS PROVIDES CHARITY CARE TO PATIENTS WHO LACK THE ABILITY TO PAY. THE DETERMINATION OF THE ABILITY TO PAY MAY TAKE INTO ACCOUNT A NUMBER OF FINANCIAL VARIABLES, INCLUDING BUT NOT LIMITED TO: (1) THE EARNING STATUS AND POTENTIAL OF THE PATIENT AND FAMILY (2) OTHER SOURCES OF INCOME AND ASSETS (3) LEVEL AND TYPE OF LIABILITIES (4) ABILITY TO OBTAIN ADDITIONAL CREDIT (5) THE AMOUNT AND FREQUENCY OF HOPITAL/MEDICAL BILLS AND (6) FAMILY SIZE. ALL OR PART OF THE HOSPITAL BILL MAY BE CONSIDERED CHARITY CARE. MEDICALLY INDIGENT PATIENTS INCLUDE THOSE PATIENTS WHO ARE CAPABLE OF PAYING FOR LIVING EXPENSES, BUT WHOSE MEDICAL AND HOSPITAL BILLS, AFTER PAYMENT BY THIRD PARTY PAYERS, WOULD RQUIRE USE OR LIQUIDATION OF INCOME AND/OR ASSETS CRITICAL TO LIVING OR EARNING A LIVING. AT A MINIMUM ALL UNINSURED PATIENTS RECEIVE A 30% DISCOUNT. PART I, LINE 7: CONSISTENT WITH ITS REPORTS PREPARED FOR ITS ANNUAL STATEMENT OF COMMUNITY BENEFITS REPORT FOR TEXAS NON-PROFIT HOSPITAL MHS RATIOS ARE BASED ON THE TOTAL PATIENT CARE OPERATING EXPENSE DIVIDED BY GROSS PATIENT SERVICE REVENUE. PART I, LINE 7G: SUBSIDIZED HEALTH SERVICES INCLUDE THE FOLLOWING. METHODIST, ALONG WITH TWO OTHER NON-PROFIT HOSPITALS IN DALLAS, JOINTLY SPONSORS A REGIONAL HELICOPTER, FIXED WING, AND GROUND AMBULANCE SERVICE CALLED CAREFLITE. METHODIST DALLAS MAINTAINS HELIPADS FOR THE HELICOPTER SERVICE AND PROVIDES MEDICAL CONTROL FOR BOTH GROUND AND AIR SERVICES. ALSO, METHODIST DALLAS STAFFS THE NEONATAL TRANSPORT TEAMS THAT ARE RESPONSIBLE FOR TRANSPORTING ILL NEONATES FROM OUTLYING AREAS TO METHODIST DALLAS, VIA AMBULANCE. METHODIST DALLAS ALSO PROVIDES MEDICAL CONTROL SERVICES, INCLUDING MEDICAL DIRECTION, PROTOCOL DEVELOPMENT, CONTINUING EDUCATION AND A QUALITY IMPROVEMENT INITIATIVE TO A TOTAL OF FIFTEEN FIRE DEPARTMENTS AND EMS AGENCIES IN NORTH CENTRAL TEXAS. THIS SERVICE WOULD NOT BE POSSIBLE WITHOUT BEING SUBSIDIZED. METHODIST ALSO PARTICIPATES IN THE DALLAS COUNTY AND TARRANT COUNTY INDIGENT CARE PROGRAMS WHICH ARE DESIGNED TO ENHANCE ACCESS BY, AND DELIVERY OF COST-EFFECTIVE HEALTH CARE SERVICES TO, INDIGENT PATIENTS OF DALLAS AND TARRANT COUNTIES THROUGH INCREASED FUNDING FOR THE MEDICAID POPULATION, CONSISTENT WITH APPLICABLE FEDERAL AND STATE REQUIREMENTS, AND PROMOTING TREATMENT, SERVICES AND EDUCATION CONCERNING THE INPATIENT AND OUTPATIENT HOSPITAL AND MEDICAL PROFESSIONAL NEEDS OF THE INDIGENT. IN DOING SO, THE CORPORATION (MHS) SEEKS TO INCREASE THE MEDICAID FUNDS TO TEXAS IN ORDER TO ENABLE NON-COUNTY HOSPITAL PROVIDERS TO PROVIDE AND ARRANGE FOR THE PROVISION OF MORE COMPREHENSIVE AND HIGHER QUALITY CARE OF THE POOR AND UNINSURED AND TO SUPPLEMENT THE EFFORTS OF THE DALLAS AND TARRANT COUNTY HOSPITAL DISTRICTS. PART I, L7 COL(F): PART III SECTION A: MHS MAINTAINS AN ALLOWANCE FOR UNCOLLECTTIBLE ACCOUNTS FOR ESTIMATED LOSSES RESULTING FROM A PAYOR'S INABILITY TO MAKE PAYMENTS ON ACCOUNTS. THE ALLOWANCE IS BASED ON HISTORICAL WRITE-OFFS AND THE AGING OF THE ACCOUNTS; MANAGEMENT CONTINUALLY MONITORS AND ADJUSTS THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS RECEIVABLE. ACCOUNTS ARE WRITTEN OFF WHEN ROUTINE BILLING AND COMMUNICATION WITH THE PAYOR ARE NOT EXPECTED TO RESULT IN PAYMENT. MHS COLLECTION EFFORTS CONTINUE, AND RECOVERIES OF ACCOUNTS WRITTEN OFF ARE ACCOUNTED FOR AS REDUCTIONS IN THE PROVISION FOR BAD DEBTS.COSTING METHODOLOGY: CONSISTENT WITH ITS REPORTS PREPARED FOR ITS ANNUAL STATEMENT OF COMMUNITY BENEFITS REPORT FOR TEXAS NON-PROFIT HOSPITAL MHS RATIOS ARE BASED ON THE TOTAL PATIENT CARE OPERATING EXPENSES DIVIDED BY GROSS PATIENT SERVICE REVENUE PART III, LINE 4: FOOTNOTE 1, PAGE 8: FINANCIAL STATEMENT FOOTNOTE: MHS HAS ADOPTED ACCOUNTING STANDARDS UPDATE (ASU) 2011-07 ISSUED BY THE FINANCIAL ACCOUNTING STANDARDS BOARD (FASB). THE UPDATE REQUIRES HEALTHCARE ENTITIES THAT RECOGNIZE SIGNIFICANT AMOUNTS OF PATIENT SERVICE REVENUE AT THE TIME SERVICES ARE RENDERED ,EVEN THOUGH THEY DO NOT ASSESS THE PATIENTS'S ABILITY TO PAY, TO CHANGE THE PRESENTATION OF THEIR STAAEMENT OF OPERATIONS AND CHANGES IN NET ASSETS BY RECLASSIFYING THE PROVISION FOR BAD DEBTSS ASSOCIATED WITH PATIENT SERVICE REVENUE FROM AN OPERATING EXPENSES TO A DEDUCTION FROM PATIENT SERVICE REVENUE.COSTING METHODOLOGY: CONSISTENT WITH ITS REPORTS PREPARED FOR ITS ANNUAL STATEMENT OF COMMUNITY BENEFITS REPORT FOR TEXAS NON-PROFIT HOSPITAL MHS RATIOS ARE BASED ON THE TOTAL PATIENT CARE OPERATING EXPENSES DIVIDED BY GROSS PATIENT SERVICE REVENUE PART III, LINE 8: CONSISTENT WITH ITS ANNUAL TEXAS COMMUNITY BENEFITS REPORT THE ALLOWABLE COSTS ARE COMPUTED ON A COST TO CHARGE RATIO. SINCE MEDICARE BENEFICIARIES ARE NOT MEASURED VIA OUR CHARITY CARE POLICIES IT IS NOT POSSIBLE TO IDENTIFY THE EXACT AMOUNT OF THE SHORTFALL THAT SHOULD BE IDENTIFIED AS A COMMUNITY BENEFIT. HOWEVER,WERE THE HOSPITAL NOT AVAILABLE TO PROVIDE CARE TO THESE INDIVIDUALS IT IS NOT LIKELY THE COMMUNITY WOULD BE ABLE TO PROVIDE ADEQUTE CARE. DUE TO THE SHORTFALL THE HOSPITAL MUST FIND OTHER SOURCES TO FUND THEIR CARE, PART III, LINE 9B: THE DEBT COLLECTION POLICIES CALL FOR CHARITY CARE APPLICATIONS TO BE GIVEN OUT BOTH AT THE HOSPITAL AND BY THE COLLECTORS AND TO BE REVIEWED FOR QUALIFICATION UNDER THE CHARITY CARE GUIDELINES OR FOR OTHER PROGRAMS. OWNERSHIP OF METDALSPI, JV SCHEDULE H,PART IV METHODIST HEALTHCARE HAS A 99% INTEREST IN METDALSPI HOLDING, LLC WHICH IN TURN OWNS A 51% INTEREST IN METDALSPI, JV THUS GIVING METHODIST HEALTHCARE AN EFFECTIVE OWNERSHIP INTEREST OF 50.5% IN THE HOSPITAL OPERATING PARTNERSHIP. METHODIST DALLAS MEDICAL CENTER PART V, SECTION B, LINE 9: AS PART OF ITS MISSION, MHS PROVIDES CHARITY CARE TO PATIENTS WHO LACK THE ABILITY TO PAY. THE DETERMINATION OF THE ABILITY TO PAY MAY TAKE INTO ACCOUNT A NUMBER OF FINANCIAL VARIABLES, INCLUDING BUT NOT LIMITED TO: (1) THE EARNING STATUS AND POTENTIAL OF THE PATIENT AND FAMILY (2) OTHER SOURCES OF INCOME AND ASSETS (3) LEVEL AND TYPE OF LIABILITIES (4) ABILITY TO OBTAIN ADDITIONAL CREDIT (5) THE AMOUNT AND FREQUENCY OF HOPITAL/MEDICAL BILLS AND (6) FAMILY SIZE. ALL OR PART OF THE HOSPITAL BILL MAY BE CONSIDERED CHARITY CARE. MEDICALLY INDIGENT PATIENTS INCLUDE THOSE PATIENTS WHO ARE CAPABLE OF PAYING FOR LIVING EXPENSES, BUT WHOSE MEDICAL AND HOSPITAL BILLS, AFTER PAYMENT BY THIRD PARTY PAYERS, WOULD RQUIRE USE OR LIQUIDATION OF INCOME AND/OR ASSETS CRITICAL TO LIVING OR EARNING A LIVING. AT A MINIMUM ALL UNINSURED PATIENTS RECEIVE A 30% DISCOUNT. METHODIST CHARLTON MEDICAL CENTER PART V, SECTION B, LINE 9: AS PART OF ITS MISSION, MHS PROVIDES CHARITY CARE TO PATIENTS WHO LACK THE ABILITY TO PAY. THE DETERMINATION OF THE ABILITY TO PAY MAY TAKE INTO ACCOUNT A NUMBER OF FINANCIAL VARIABLES, INCLUDING BUT NOT LIMITED TO: (1) THE EARNING STATUS AND POTENTIAL OF THE PATIENT AND FAMILY (2) OTHER SOURCES OF INCOME AND ASSETS (3) LEVEL AND TYPE OF LIABILITIES (4) ABILITY TO OBTAIN ADDITIONAL CREDIT (5) THE AMOUNT AND FREQUENCY OF HOPITAL/MEDICAL BILLS AND (6) FAMILY SIZE. ALL OR PART OF THE HOSPITAL BILL MAY BE CONSIDERED CHARITY CARE. MEDICALLY INDIGENT PATIENTS INCLUDE THOSE PATIENTS WHO ARE CAPABLE OF PAYING FOR LIVING EXPENSES, BUT WHOSE MEDICAL AND HOSPITAL BILLS, AFTER PAYMENT BY THIRD PARTY PAYERS, WOULD RQUIRE USE OR LIQUIDATION OF INCOME AND/OR ASSETS CRITICAL TO LIVING OR EARNING A LIVING. AT A MINIMUM ALL UNINSURED PATIENTS RECEIVE A 30% DISCOUNT. METHODIST MANSFIELD MEDICAL CENTER PART V, SECTION B, LINE 9: AS PART OF ITS MISSION, MHS PROVIDES CHARITY CARE TO PATIENTS WHO LACK THE ABILITY TO PAY. THE DETERMINATION OF THE ABILITY TO PAY MAY TAKE INTO ACCOUNT A NUMBER OF FINANCIAL VARIABLES, INCLUDING BUT NOT LIMITED TO: (1) THE EARNING STATUS AND POTENTIAL OF THE PATIENT AND FAMILY (2) OTHER SOURCES OF INCOME AND ASSETS (3) LEVEL AND TYPE OF LIABILITIES (4) ABILITY TO OBTAIN ADDITIONAL CREDIT (5) THE AMOUNT AND FREQUENCY OF HOPITAL/MEDICAL BILLS AND (6) FAMILY SIZE. ALL OR PART OF THE HOSPITAL BILL MAY BE CONSIDERED CHARITY CARE. MEDICALLY INDIGENT PATIENTS INCLUDE THOSE PATIENTS WHO ARE CAPABLE OF PAYING FOR LIVING EXPENSES, BUT WHOSE MEDICAL AND HOSPITAL BILLS, AFTER PAYMENT BY THIRD PARTY PAYERS, WOULD RQUIRE USE OR LIQUIDATION OF INCOME AND/OR ASSETS CRITICAL TO LIVING OR EARNING A LIVING. AT A MINIMUM ALL UNINSURED PATIENTS RECEIVE A 30% DISCOUNT. METHODIST RICHARDSON MEDICAL CENTER PART V, SECTION B, LINE 9: AS PART OF ITS MISSION, MHS PROVIDES CHARITY CARE TO PATIENTS WHO LACK THE ABILITY TO PAY. THE DETERMINATION OF THE ABILITY TO PAY MAY TAKE INTO ACCOUNT A NUMBER OF FINANCIAL VARIABLES, INCLUDING BUT NOT LIMITED TO: (1) THE EARNING STATUS AND POTENTIAL OF THE PATIENT AND FAMILY (2) OTHER SOURCES OF INCOME AND ASSETS (3) LEVEL AND TYPE OF LIABILITIES (4) ABILITY TO OBTAIN ADDITIONAL CREDIT (5) THE AMOUNT AND FREQUENCY OF HOPITAL/MEDICAL BILLS AND (6) FAMILY SIZE. ALL OR PART OF THE HOSPITAL BILL MAY BE CONSIDERED CHARITY CARE. MEDICALLY INDIGENT PATIENTS INCLUDE THOSE PATIENTS WHO ARE CAPABLE OF PAYING FOR LIVING EXPENSES, BUT WHOSE MEDICAL AND HOSPITAL BILLS, AFTER PAYMENT BY THIRD PARTY PAYERS, WOULD RQUIRE USE OR LIQUIDATION OF INCOME AND/OR ASSETS CRITICAL TO LIVING OR EARNING A LIVING. AT A MINIMUM ALL UNINSURED PATIENTS RECEIVE A 30% DISCOUNT. METHODIST REHABILITATION HOSPITAL PART V, SECTION B, LINE 9: AS PART OF ITS MISSION, MHS PROVIDES CHARITY CARE TO PATIENTS WHO LACK THE ABILITY TO PAY. THE DETERMINATION OF THE ABILITY TO PAY MAY TAKE INTO ACCOUNT A NUMBER OF FINANCIAL VARIABLES, INCLUDING BUT NOT LIMITED TO: (1) THE EARNING STATUS AND POTENTIAL OF THE PATIENT AND FAMILY (2) OTHER SOURCES OF INCOME AND ASSETS (3) LEVEL AND TYPE OF LIABILITIES (4) ABILITY TO OBTAIN ADDITIONAL CREDIT (5) THE AMOUNT AND FREQUENCY OF HOPITAL/MEDICAL BILLS AND (6) FAMILY SIZE. ALL OR PART OF THE HOSPITAL BILL MAY BE CONSIDERED CHARITY CARE. MEDICALLY INDIGENT PATIENTS INCLUDE THOSE PATIENTS WHO ARE CAPABLE OF PAYING FOR LIVING EXPENSES, BUT WHOSE MEDICAL AND HOSPITAL BILLS, AFTER PAYMENT BY THIRD PARTY PAYERS, WOULD RQUIRE USE OR LIQUIDATION OF INCOME AND/OR ASSETS CRITICAL TO LIVING OR EARNING A LIVING. AT A MINIMUM ALL UNINSURED PATIENTS RECEIVE A 30% DISCOUNT. METHODIST MCKINNEY HOSPITAL PART V, SECTION B, LINE 9: AS PART OF ITS MISSION, MHS PROVIDES CHARITY CARE TO PATIENTS WHO LACK THE ABILITY TO PAY. THE DETERMINATION OF THE ABILITY TO PAY MAY TAKE INTO ACCOUNT A NUMBER OF FINANCIAL VARIABLES, INCLUDING BUT NOT LIMITED TO: (1) THE EARNING STATUS AND POTENTIAL OF THE PATIENT AND FAMILY (2) OTHER SOURCES OF INCOME AND ASSETS (3) LEVEL AND TYPE OF LIABILITIES (4) ABILITY TO OBTAIN ADDITIONAL CREDIT (5) THE AMOUNT AND FREQUENCY OF HOPITAL/MEDICAL BILLS AND (6) FAMILY SIZE. ALL OR PART OF THE HOSPITAL BILL MAY BE CONSIDERED CHARITY CARE. MEDICALLY INDIGENT PATIENTS INCLUDE THOSE PATIENTS WHO ARE CAPABLE OF PAYING FOR LIVING EXPENSES, BUT WHOSE MEDICAL AND HOSPITAL BILLS, AFTER PAYMENT BY THIRD PARTY PAYERS, WOULD RQUIRE USE OR LIQUIDATION OF INCOME AND/OR ASSETS CRITICAL TO LIVING OR EARNING A LIVING. AT A MINIMUM ALL UNINSURED PATIENTS RECEIVE A 30% DISCOUNT. METHODIST HOSPITAL FOR SURGERY PART V, SECTION B, LINE 9: AS PART OF ITS MISSION, MHS PROVIDES CHARITY CARE TO PATIENTS WHO LACK THE ABILITY TO PAY. THE DETERMINATION OF THE ABILITY TO PAY MAY TAKE INTO ACCOUNT A NUMBER OF FINANCIAL VARIABLES, INCLUDING BUT NOT LIMITED TO: (1) THE EARNING STATUS AND POTENTIAL OF THE PATIENT AND FAMILY (2) OTHER SOURCES OF INCOME AND ASSETS (3) LEVEL AND TYPE OF LIABILITIES (4) ABILITY TO OBTAIN ADDITIONAL CREDIT (5) THE AMOUNT AND FREQUENCY OF HOPITAL/MEDICAL BILLS AND (6) FAMILY SIZE. ALL OR PART OF THE HOSPITAL BILL MAY BE CONSIDERED CHARITY CARE. MEDICALLY INDIGENT PATIENTS INCLUDE THOSE PATIENTS WHO ARE CAPABLE OF PAYING FOR LIVING EXPENSES, BUT WHOSE MEDICAL AND HOSPITAL BILLS, AFTER PAYMENT BY THIRD PARTY PAYERS, WOULD RQUIRE USE OR LIQUIDATION OF INCOME AND/OR ASSETS CRITICAL TO LIVING OR EARNING A LIVING. AT A MINIMUM ALL UNINSURED PATIENTS RECEIVE A 30% DISCOUNT. METHODIST DALLAS MEDICAL CENTER PART V, SECTION B, LINE 10: AS PART OF ITS MISSION, MHS PROVIDES CHARITY CARE TO PATIENTS WHO LACK THE ABILITY TO PAY. THE DETERMINATION OF THE ABILITY TO PAY MAY TAKE INTO ACCOUNT A NUMBER OF FINANCIAL VARIABLES, INCLUDING BUT NOT LIMITED TO: (1) THE EARNING STATUS AND POTENTIAL OF THE PATIENT AND FAMILY (2) OTHER SOURCES OF INCOME AND ASSETS (3) LEVEL AND TYPE OF LIABILITIES (4) ABILITY TO OBTAIN ADDITIONAL CREDIT (5) THE AMOUNT AND FREQUENCY OF HOPITAL/MEDICAL BILLS AND (6) FAMILY SIZE. ALL OR PART OF THE HOSPITAL BILL MAY BE CONSIDERED CHARITY CARE. MEDICALLY INDIGENT PATIENTS INCLUDE THOSE PATIENTS WHO ARE CAPABLE OF PAYING FOR LIVING EXPENSES, BUT WHOSE MEDICAL AND HOSPITAL BILLS, AFTER PAYMENT BY THIRD PARTY PAYERS, WOULD RQUIRE USE OR LIQUIDATION OF INCOME AND/OR ASSETS CRITICAL TO LIVING OR EARNING A LIVING. AT A MINIMUM ALL UNINSURED PATIENTS RECEIVE A 30% DISCOUNT. METHODIST CHARLTON MEDICAL CENTER PART V, SECTION B, LINE 10: AS PART OF ITS MISSION, MHS PROVIDES CHARITY CARE TO PATIENTS WHO LACK THE ABILITY TO PAY. THE DETERMINATION OF THE ABILITY TO PAY MAY TAKE INTO ACCOUNT A NUMBER OF FINANCIAL VARIABLES, INCLUDING BUT NOT LIMITED TO: (1) THE EARNING STATUS AND POTENTIAL OF THE PATIENT AND FAMILY (2) OTHER SOURCES OF INCOME AND ASSETS (3) LEVEL AND TYPE OF LIABILITIES (4) ABILITY TO OBTAIN ADDITIONAL CREDIT (5) THE AMOUNT AND FREQUENCY OF HOPITAL/MEDICAL BILLS AND (6) FAMILY SIZE. ALL OR PART OF THE HOSPITAL BILL MAY BE CONSIDERED CHARITY CARE. MEDICALLY INDIGENT PATIENTS INCLUDE THOSE PATIENTS WHO ARE CAPABLE OF PAYING FOR LIVING EXPENSES, BUT WHOSE MEDICAL AND HOSPITAL BILLS, AFTER PAYMENT BY THIRD PARTY PAYERS, WOULD RQUIRE USE OR LIQUIDATION OF INCOME AND/OR ASSETS CRITICAL TO LIVING OR EARNING A LIVING. AT A MINIMUM ALL UNINSURED PATIENTS RECEIVE A 30% DISCOUNT. METHODIST MANSFIELD MEDICAL CENTER PART V, SECTION B, LINE 10: AS PART OF ITS MISSION, MHS PROVIDES CHARITY CARE TO PATIENTS WHO LACK THE ABILITY TO PAY. THE DETERMINATION OF THE ABILITY TO PAY MAY TAKE INTO ACCOUNT A NUMBER OF FINANCIAL VARIABLES, INCLUDING BUT NOT LIMITED TO: (1) THE EARNING STATUS AND POTENTIAL OF THE PATIENT AND FAMILY (2) OTHER SOURCES OF INCOME AND ASSETS (3) LEVEL AND TYPE OF LIABILITIES (4) ABILITY TO OBTAIN ADDITIONAL CREDIT (5) THE AMOUNT AND FREQUENCY OF HOPITAL/MEDICAL BILLS AND (6) FAMILY SIZE. ALL OR PART OF THE HOSPITAL BILL MAY BE CONSIDERED CHARITY CARE. MEDICALLY INDIGENT PATIENTS INCLUDE THOSE PATIENTS WHO ARE CAPABLE OF PAYING FOR LIVING EXPENSES, BUT WHOSE MEDICAL AND HOSPITAL BILLS, AFTER PAYMENT BY THIRD PARTY PAYERS, WOULD RQUIRE USE OR LIQUIDATION OF INCOME AND/OR ASSETS CRITICAL TO LIVING OR EARNING A LIVING. AT A MINIMUM ALL UNINSURED PATIENTS RECEIVE A 30% DISCOUNT. METHODIST RICHARDSON MEDICAL CENTER PART V, SECTION B, LINE 10: AS PART OF ITS MISSION, MHS PROVIDES CHARITY CARE TO PATIENTS WHO LACK THE ABILITY TO PAY. THE DETERMINATION OF THE ABILITY TO PAY MAY TAKE INTO ACCOUNT A NUMBER OF FINANCIAL VARIABLES, INCLUDING BUT NOT LIMITED TO: (1) THE EARNING STATUS AND POTENTIAL OF THE PATIENT AND FAMILY (2) OTHER SOURCES OF INCOME AND ASSETS (3) LEVEL AND TYPE OF LIABILITIES (4) ABILITY TO OBTAIN ADDITIONAL CREDIT (5) THE AMOUNT AND FREQUENCY OF HOPITAL/MEDICAL BILLS AND (6) FAMILY SIZE. ALL OR PART OF THE HOSPITAL BILL MAY BE CONSIDERED CHARITY CARE. MEDICALLY INDIGENT PATIENTS INCLUDE THOSE PATIENTS WHO ARE CAPABLE OF PAYING FOR LIVING EXPENSES, BUT WHOSE MEDICAL AND HOSPITAL BILLS, AFTER PAYMENT BY THIRD PARTY PAYERS, WOULD RQUIRE USE OR LIQUIDATION OF INCOME AND/OR ASSETS CRITICAL TO LIVING OR EARNING A LIVING. AT A MINIMUM ALL UNINSURED PATIENTS RECEIVE A 30% DISCOUNT. METHODIST REHABILITATION HOSPITAL PART V, SECTION B, LINE 10: AS PART OF ITS MISSION, MHS PROVIDES CHARITY CARE TO PATIENTS WHO LACK THE ABILITY TO PAY. THE DETERMINATION OF THE ABILITY TO PAY MAY TAKE INTO ACCOUNT A NUMBER OF FINANCIAL VARIABLES, INCLUDING BUT NOT LIMITED TO: (1) THE EARNING STATUS AND POTENTIAL OF THE PATIENT AND FAMILY (2) OTHER SOURCES OF INCOME AND ASSETS (3) LEVEL AND TYPE OF LIABILITIES (4) ABILITY TO OBTAIN ADDITIONAL CREDIT (5) THE AMOUNT AND FREQUENCY OF HOPITAL/MEDICAL BILLS AND (6) FAMILY SIZE. ALL OR PART OF THE HOSPITAL BILL MAY BE CONSIDERED CHARITY CARE. MEDICALLY INDIGENT PATIENTS INCLUDE THOSE PATIENTS WHO ARE CAPABLE OF PAYING FOR LIVING EXPENSES, BUT WHOSE MEDICAL AND HOSPITAL BILLS, AFTER PAYMENT BY THIRD PARTY PAYERS, WOULD RQUIRE USE OR LIQUIDATION OF INCOME AND/OR ASSETS CRITICAL TO LIVING OR EARNING A LIVING. AT A MINIMUM ALL UNINSURED PATIENTS RECEIVE A 30% DISCOUNT. METHODIST MCKINNEY HOSPITAL PART V, SECTION B, LINE 10: AS PART OF ITS MISSION, MHS PROVIDES CHARITY CARE TO PATIENTS WHO LACK THE ABILITY TO PAY. THE DETERMINATION OF THE ABILITY TO PAY MAY TAKE INTO ACCOUNT A NUMBER OF FINANCIAL VARIABLES, INCLUDING BUT NOT LIMITED TO: (1) THE EARNING STATUS AND POTENTIAL OF THE PATIENT AND FAMILY (2) OTHER SOURCES OF INCOME AND ASSETS (3) LEVEL AND TYPE OF LIABILITIES (4) ABILITY TO OBTAIN ADDITIONAL CREDIT (5) THE AMOUNT AND FREQUENCY OF HOPITAL/MEDICAL BILLS AND (6) FAMILY SIZE. ALL OR PART OF THE HOSPITAL BILL MAY BE CONSIDERED CHARITY CARE. MEDICALLY INDIGENT PATIENTS INCLUDE THOSE PATIENTS WHO ARE CAPABLE OF PAYING FOR LIVING EXPENSES, BUT WHOSE MEDICAL AND HOSPITAL BILLS, AFTER PAYMENT BY THIRD PARTY PAYERS, WOULD RQUIRE USE OR LIQUIDATION OF INCOME AND/OR ASSETS CRITICAL TO LIVING OR EARNING A LIVING. AT A MINIMUM ALL UNINSURED PATIENTS RECEIVE A 30% DISCOUNT. METHODIST HOSPITAL FOR SURGERY PART V, SECTION B, LINE 10: AS PART OF ITS MISSION, MHS PROVIDES CHARITY CARE TO PATIENTS WHO LACK THE ABILITY TO PAY. THE DETERMINATION OF THE ABILITY TO PAY MAY TAKE INTO ACCOUNT A NUMBER OF FINANCIAL VARIABLES, INCLUDING BUT NOT LIMITED TO: (1) THE EARNING STATUS AND POTENTIAL OF THE PATIENT AND FAMILY (2) OTHER SOURCES OF INCOME AND ASSETS (3) LEVEL AND TYPE OF LIABILITIES (4) ABILITY TO OBTAIN ADDITIONAL CREDIT (5) THE AMOUNT AND FREQUENCY OF HOPITAL/MEDICAL BILLS AND (6) FAMILY SIZE. ALL OR PART OF THE HOSPITAL BILL MAY BE CONSIDERED CHARITY CARE. MEDICALLY INDIGENT PATIENTS INCLUDE THOSE PATIENTS WHO ARE CAPABLE OF PAYING FOR LIVING EXPENSES, BUT WHOSE MEDICAL AND HOSPITAL BILLS, AFTER PAYMENT BY THIRD PARTY PAYERS, WOULD RQUIRE USE OR LIQUIDATION OF INCOME AND/OR ASSETS CRITICAL TO LIVING OR EARNING A LIVING. AT A MINIMUM ALL UNINSURED PATIENTS RECEIVE A 30% DISCOUNT. PART VI, LINE 2: THE COMMUNITY BENEFIT PLAN SUMMARY REPORT RELIES ON INFORMATION TAKEN FROM THE 2010 NATIONAL RESEARCH CORPORATION (NRC) CONSUMER HEALTH REPORT. THE REPORT IDENTIFIES THE HEALTH STATUS OF THE COMMUNITIES SERVED BY THE METHODIST HOSPITALS AND IS THE FOUNDATION FOR THE COMMUNITY BENEFIT PLAN AND HIGHLIGHTS HOW METHODIST PLANS TO ADDRESS COMMUNITY HEALTH NEEDS WITHIN ITS SERVICE AREA. THE NRC CONSUMER HEALTH REPORT USES SURVEY METHODOLOGY TO MEASURE AND EVALUATE HEALTH STATUS AND HEALTHCARE UTILIZATION; IDENTIFY THE PREVALENCE OF CHRONIC CONDITIONS; PROFILE HIGH-RISK POPULATIONS AND IDENTIFY GAPS IN CARE AND PREVENTIVE HEALTH BEHAVIORS, PROVIDING A DETAILED VIEW OF THE HEALTH NEED, HEALTH STATUS AND BEHAVIORS OF RESIDENTS WITHIN THE SERVICE AREA. THE NRC SAMPLING SIZE FOR ALL MARKET AREAS MAINTAIN A 95% CONFIDENCE INTERVAL. TO ENSURE PROPER SAMPLE REPRESENTATION WITHIN EACH TABULATED MARKET AREA, THE DATA WAS WEIGHTED ACCORDING TO KEY DEMOGRAPHIC VARIABLES. COMPARISONS ARE MADE TO DALLAS/PLANO/IRVING METRO DIVISION AS WELL AS TO THE STATE OF TEXAS. THE NRC CONSUMER HEALTH REPORT CLASSIFIES DEMOGRAPHIC DATA AND SURVEY RESPONSES IN CUSTOM TABULATED MARKET AREAS, WHICH ARE DEFINED BY EACH FACILITYS PRIMARY SERVICE AREA ZIP CODES, AND THUS, METHODIST CAN USE THE CONSUMER HEALTH REPORT TO EASILY COMPARE DATA FOR ITS SERVICE AREAS AND TO PRECISELY DEFINE THE UNMET NEEDS AND AREAS FOR HEALTH STATUS IMPROVEMENT SPECIFIC TO THE REGIONS IT SERVES PART VI, LINE 3: THE POLICY IS POSTED ON THE MHS WEBSITE. FURTHER SIGNAGE IS IN ALL ACCESS AREAS AS WELL AS WRITTEN INFORMATION PROVIDED TO PATIENTS UPON ADMITTANCE. THE POLICY IS ATTACHED TO PATIENT INVOICES AND BILLING PERSONNEL FOLLOW UP TO PROVIDE THE INFORMATION WHEN IN CONTACT WITH THE PATIENT. PART VI, LINE 4: IDENTIFICATION OF POPULATIONS AND COMMUNITIES SERVED BY METHODIST HEALTH SYSTEM. THE METHODIST SERVICE AREA IS LOCATED IN THE SOUTHERN SECTION OF DALLAS COUNTY AND EXTENDS INTO THE SOUTH EAST QUADRANT OF TARRANT COUNTY. ALSO INCLUDED IS THE NORTHERN TIER OF BOTH JOHNSON AND ELLIS COUNTIES. THROUGH THE RECENT ADDITION OF THE RICHARDSON HOSPITAL IT NOW SERVES NORTHERN DALLAS COUNTY AND SOUTHERN COLLIN COUNTY AS WELL. LARGE PARTS OF THE METHODIST SERVICE AREA HAVE: (I) HIGH PERCENTAGES OF HOUSEHOLDS IN POVERTY, (II) LOW MEDIAN HOUSEHOLD INCOME, (III) HIGH PERCENTAGES OF ADULTS WITH LESS THAN HIGH SCHOOL EDUCATION, (IV) HIGH PERCENTAGES OF BLUE COLLAR WORKERS, AND (V) LOW PERCENTAGES OF MANAGERIAL AND PROFESSIONAL WORKERS. CONSEQUENTLY, METHODIST PROVIDES LARGE AMOUNTS OF UNCOMPENSATED CARE. DURING THE PAST YEAR, THE CONDITIONS IN THE METHODIST SERVICE AREA HAVE NOT CHANGED, AND METHODIST CONTINUES TO PLAY A VITAL ROLE IN THE COMMUNITY, PARTICULARLY IN CARING FOR INDIGENTS.MANY NEIGHBORHOODS WITHIN METHODIST DALLAS SERVICE AREA HAVE VERY HIGH POVERTY, HIGH UNEMPLOYMENT, A HIGH RATE OF BIRTHS TO TEENAGERS, HIGH PREMATURE BIRTHS, HIGH INFANT MORTALITY, LOWER THAN AVERAGE HIGH SCHOOL GRADUATION RATES, AND HIGH PERCENTAGES OF CHILDREN. THIS IS TRUE FOR THE AREAS CLOSEST TO METHODIST CHARLTON AS WELL; HOWEVER THE FAR SOUTHERN PORTIONS OF THE METHODIST SERVICE AREA TEND TO BE MORE ECONOMICALLY STABLE WITH STRONGER SOCIOECONOMIC INDICATORS. THESE AREAS INCLUDE MIDLOTHIAN, CEDAR HILL, MANSFIELD, ETC. YET, THESE SAME AREAS HAVE ALSO BEEN HIT HARD BY THE CURRENT ECONOMIC RECESSION EXPERIENCING HIGH HOME FORECLOSURE RATES AND OTHER ECONOMIC DOWNFALLS PART VI, LINE 5: THE ORGANIZATION PARTICIPATES IN MANY COMMUNITY ACTIVITIES THAT PROMOTE PROPER HEALTH IN THE COMMUNITY. SEE DISCRIPTIONS PROVIDED IN PART III, FORM 990. THE ORGANIZATION IS COMPRISED OF A COMMUNITY BOARD, EXTENDS MEDICAL STAFF PRIVILEGESS TO ALL QUALIFIED PHYSICIANS AND COMMITTS SIGNIFICANT RESOURCES TO MEDICAL EDUCATION. PART VI, LINE 6: METHODIST HOSPITALS OF DALLAS (D/B/A) METHODIST HEALTH SYSTEM WORKS IN TANDEM WITH ITS AFFILITATES (SEE SCHEDULE R)TO MEET THE VARYING HEALTHCARE NEEDS OF THE COMMUNITY IT SERVES. REPORTS FILED WITH STATES PART VI, LINE 7 TX 1 DALLAS COUNTY INDIGENT CARE CORP PO BOX 655999 DALLAS TX 75265 260610562 501(C)(3) 15223603 INDIGENT CARE TARRANT COUNTY INDIGENT CARE CORP 612 E LAMAR BLVD ARLINGTON TX 76011 260648532 501(C)(3) 1912853 INDIGENT CARE 2 2 NURSING & JUNIOR VOLUNTEER SCHOLARSHIPS 50 123312 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: THE GRANTS TO DCICC AND TCICC ARE MONITORED BY THE CFO AND HIS STAFF AT MHS. THE CFO OF MHS IS ON THE BOARD OF EACH ORGANIZATION. THE GRANTS FOR NURSING AND JUNIOR VOLUNTEER SCHOLARSHIPS ARE MONITORED BY THE INTERNAL CONTROLS OF MHS TO MAKE SURE THEY ARE PAID IN ACCORDANCE WITH THE PROGRAM. X 1 1 X X X X X 1 1 0 1 0 1 0 0 0 STEPHEN MANSFIELD 829422 0 338733 0 339436 0 195238 0 21379 0 1724208 0 326135 0 MICHAEL SCHAEFER 486437 0 150960 0 96535 0 85863 0 38310 0 858105 0 78038 0 ROBERT MILONE 150136 0 13417 0 5252 0 11073 0 18321 0 198199 0 0 0 APRIL BOX 327709 0 85147 0 36360 0 35632 0 20102 0 504950 0 33417 0 LAURA IRVINE 374759 0 120540 0 68959 0 70228 0 3842 0 638328 0 67214 0 JONATHAN DAVIS 330853 0 91025 0 1898 0 54313 0 15578 0 493667 0 0 0 EKENNETH HUTCHENRIDER 291609 0 81473 0 2582 0 50802 0 16032 0 442498 0 0 0 TIM KIRBY 329755 0 85734 0 46323 0 17762 0 21580 0 501154 0 0 0 PAM STOYANOFF 478835 0 147513 0 6242 0 75611 0 27776 0 735977 0 0 0 MICHAEL PRICE 330156 0 72612 0 44922 0 52160 0 22963 0 522813 0 40476 0 C BRIZIUS 276202 0 49311 0 15989 0 17762 0 15471 0 374735 0 0 0 PAMELA MCNUTT 332443 0 73729 0 4288 0 52924 0 19079 0 482463 0 0 0 JOHN BAUMGARTNER 304462 0 66133 0 11299 0 51404 0 20835 0 454133 0 0 0 RANDY WALKER 229119 0 50867 0 3134 0 42607 0 11266 0 336993 0 0 0 ADAM MYERS MD 392937 0 87329 0 3413 0 38045 0 18790 0 540514 0 0 0 J LEA 220195 0 38419 0 5463 0 1550 0 9496 0 275123 0 0 0 P FARROW 219804 0 40422 0 3119 0 15935 0 9404 0 288684 0 0 0 ZAKIR SHAIKH 269484 0 30 0 638 0 11364 0 17283 0 298799 0 0 0 JEANNE REEVES 204787 0 44880 0 2620 0 8550 0 9611 0 270448 0 0 0 STEVE TEDDER 197391 0 17890 0 4752 0 6225 0 2621 0 228879 0 0 0 M MAYO 80651 0 0 0 339910 0 14058 0 4629 0 439248 0 0 0 M ARVIN 51587 0 0 0 175095 0 5133 0 3215 0 235030 0 38298 0 JOHN LACY 77528 0 0 0 22577 0 8125 0 5969 0 114199 0 21932 0 NANCY SIMON 218135 0 46985 0 6111 0 21902 0 15876 0 309009 0 0 0 PART I, LINE 1A ORGANIZATION MAINTAINS A SOCIAL CLUB MEMBERSHIP FOR PURPOSES OF BUSINESS MEALS IN ACCORDANCE WITH ORGANIZATION POLICIES. PART I, LINES 4A-B ANY CONTRIBUTIIONS TO A SECTION 457(F) NON-QUALIFIED PLAN ARE INCLUDED IN SCHEDULE J, PART II, COLUMN C. PART I, LINE 5 BONUS CALCULATIONS INCLUDE A SECTION ON OPERATING EFFICIENCY WHICH INCLUDES A SUB-SECTION RELATED TO OPERATING REVENUE GROWTH PART I, LINE 6 BONUS CALCULATIONS INCLUDE A SECTION ON OPERATING EFFICIENCY WHICH INCLUDES A SUB-SECTION RELATED TO MANAGING OPERATING EXPENSE GROWTH AND NET OPERATING INCOME MARGIN. TARRANT COUNTY CULTURAL EDU FAC FINANCE CORP HOSPITAL SERIES 2008 043833551 87638QBF5 2008-09-04 200000000 CONSTRUCT OF MANSFIELD HOSPITAL FACILITY AND OTHER CAPITAL IMPROVEMENTS 0 0 0 2009 0 0 0 0 0 1 0 0 0.02650 0.02650 1 0 1 0 0 0 RUBEN L VELEZ MD BUSINESS RELATIONSHIP PRES OF DNA. DALLAS NEPHROLOGY ASSOC.(DNA)PROVIDES TRANSPLANT SERVICES TO MHS AND ITS PATIENTS. LISTED AMOUNT REPRESENTS ALL PAYMENTS TO DNA NOT PAYMENTS SPECIFICALLY TO DR VELEZ. 0 MICHAEL REDDEN BUSINESS RELATIONSHIP OFFICER AND SHAREHOLDER OF GRAND BANK WHERE MHS HAS DEPOSITS 0 NEW PROGRAM SERVICES FORM 990, PART III, LINE 2 IN OCTOBER 2011, MHS ACQUIRED RICHARDSON REGIONAL MEDICAL CENTER FROM THE RICHARDSON HOSPITAL AUTHORITY (RHA) CONTINUING TO OPERATE THE FACILITY IN THE METHODIST SYSTEM UNDER ITS NEW NAME, METHODIST RICHARDSON MEDICAL CENTER. THE REAL AND PERSONAL PROPERTY OF THE HOSPITAL WERE ACQUIRED BY MHSR MEDICAL CENTER A 501(3) CHARITABLE ORGANIZATION WHICH IS A WHOLLY OWNED AFFILIATE OF MHS. THE OPERATIONS OF THE 209 BED HOSPITAL FACILITY WILL BE CARRIED OUT BY MHS. THE MEDICAL OFFICE BUILDINGS, PREVIOUSLY OWNED BY RHA, WERE ACQUIRED BY PAVILION PROPERTIES, WHICH IS A 501(C)(2) TITLE HOLDING COMPANY WHOLLY OWNED BY MHS. THE NEW METHODIST RICHARDSON MEDICAL CENTER (MRMC) HAS TWO MEDICAL CAMPUSES - THE CAMPBELL RD. AND BUSH/RENNER CAMPUSES. METHODIST IS EXPECTED TO ACCELERATE THE EXPANSION AT BUSH/RENNER, WHICH IS CURRENTLY HOME TO A MEDICAL OFFICE BUILDING AS WELL AS AN EMERGENCY ROOM, OUTPATIENT HOSPITAL AND CANCER CENTER THAT OPENED IN OCTOBER 2008. ADDITIONAL EXPLANATION OF PROGRAM SERVICES CONTINUATION FORM 990, PART 4A FERTILITY RATES, RATE OF BIRTHS TO TEENAGE MOTHERS, AND LOW BIRTH WEIGHT BIRTHS IN MHS'S PRIMARY SERVICE AREA EXCEED DALLAS COUNTY RATES. ACCORDINGLY, THERE IS INCREASED NEED FOR PRENATAL AND HIGH RISK PREGNANCY SERVICES. MDMC AND MORE THAN A HALF DOZEN OF ITS MEDICAL STAFF PHYSICIANS MAINTAIN A RELATIONSHIP WITH LOS BARRIOS UNIDOS COMMUNITY CLINIC IN WEST DALLAS TO PROVIDE PRENATAL CARE AT THAT CLINIC AND DELIVER BABIES AT MDMC. IN ADDITION, MDMC HAS AUGMENTED AND ENHANCED PHYSICIAN SERVICES FOR HIGH-RISK PREGNANCIES AT MDMC, INCLUDING PROVIDING AN ON-SITE PERINATOLOGIST. BECAUSE OF THE BROAD RANGE OF PERINATOLOGY SERVICES OFFERED BY MDMC A LARGE NUMBER OF BABIES ARE DELIVERED AT MDMC EACH YEAR. DELIVERIES IN FY 12 WERE 3,554. THIS IS IN ADDITION TO OVER 1,800 AT MCMC, OVER 1,900 AT MMMC AND OVER 400 AT MRMC. MDMC HAS ONE OF THE BEST NICU'S IN THE COUNTRY AND APPROXIMATELY 600 BABIES ARE DISCHARGED FROM THE NICU EACH YEAR. MDMC STAFFS THE NEONATAL TRANSPORT TEAMS THAT ARE RESPONSIBLE FOR TRANSPORTING ILL NEONATES FROM OUTLYING AREAS TO MDMC, VIA AMBULANCE. THE NEONATAL TRANSPORT TEAM IS EQUIPPED WITH THREE SPECIAL TRANSPORT INCUBATORS, WHICH COST APPROXIMATELY $50,000 EACH. FURTHER, THE NEONATAL TRANSPORT TEAM AND COORDINATOR EDUCATE THE STAFF OF OUTLYING HOSPITALS IN STABILIZING ILL NEONATES IN PREPARATION FOR TRANSPORT. THE OPERATION OF THIS EXPENSIVE AND HIGH RISK SERVICE DEMONSTRATES MDMC'S COMMITMENT TO PROVIDE OUTSTANDING NEONATAL SERVICES NOT JUST WITHIN ITS PRIMARY SERVICE AREA, BUT ALSO THROUGHOUT NORTH TEXAS. A LARGE PERCENTAGE OF THOSE BABIES HAD NO INSURANCE OR WERE COVERED ONLY BY MEDICAID. ROUGHLY ONE IN SEVEN BABIES IS BORN PREMATURELY IN TEXAS, EARNING THE STATE A FAILING GRADE IN THE MARCH OF DIMES REPORT CARD RELEASED LAST YEAR. DESPITE THE STATEWIDE DATA, MDMC STANDS OUT AS THE ONLY HOSPITAL IN DALLAS OFFERING CENTERING PREGNANCY, AN INNOVATIVE PROGRAM TO COMBAT THESE TROUBLING STATISTICS. MDMC GOLDEN CROSS ACADEMIC CLINIC PARTNERED WITH THE MARCH OF DIMES TO CREATE MHS'S PRETERM BIRTH PREVENTION PROGRAM. OFFERED THROUGH MDMC'S GOLDEN CROSS CLINIC, THIS PROGRAM FEATURES A NEW MODEL FOR PRENATAL CARE AND GROUP EDUCATION FOR AT-RISK PREGNANT WOMEN AND THEIR FAMILIES. THE PROGRAM GOAL IS TO REDUCE PRETERM BIRTHS AND THE NEED FOR SO MANY INFANTS TO BEGIN LIFE IN A NICU. THE PROGRAM TARGETS REDUCING PRETERM BIRTH RATES IN SOME DALLAS COMMUNITY AREAS THAT ARE AMONG THE HIGHEST IN THE NATION. OUR PROGRAM HELPS PROVIDE EDUCATION AND RESOURCES TO REDUCE PRETERM BIRTHS. RISK FACTORS FOR PREMATURE BIRTHS INCLUDE LACK OF PRENATAL CARE, MATERNAL SMOKING, AND PREVIOUS EARLY DELIVERIES. PREGNANT WOMEN WITHOUT INSURANCE HAVE LESS ACCESS TO PRENATAL CARE AND TEND TO SEEK CARE AFTER THE FIRST TRIMESTER- THREATENING THE CHILD'S HEALTH. BY PROVIDING PRENATAL CARE FOR UNINSURED AND AT-RISK MOTHERS EARLY IN THEIR PREGNANCY, THEY HAVE A GREATER CHANCE OF A HEALTHY DELIVERY. THE GOLDEN CROSS ACADEMIC CLINIC WAS RECENTLY RECOGNIZED BY THE CENTERING HEALTH INSTITUTE AS A CERTIFIED SITE FOR PROVIDING PRENATAL CARE USING THE CENTERING PREGNANCY MODEL. IN THE FIRST TWO YEARS OF PROGRAM OPERATION, MDMC WAS ABLE TO REDUCE THE PERCENTAGE OF PRETERM BIRTHS TO 4.8% FOR PARTICIPANTS IN THE LIFE SHINES BRIGHT PRENATAL PROGRAM COMPARED TO AN AVERAGE RATE OF 18% IN THE SERVICE AREA. DALLAS COUNTY, AND MHS'S SERVICE AREA IN PARTICULAR, HAS A COMPELLING NEED FOR ALTERNATIVE ACCESS (OTHER THAN ER'S) TO PRIMARY CARE. ACCORDING TO THE DFW HOSPITAL COUNCIL REPORTS AND MHS'S OWN ANALYSIS OF UNMET PHYSICIANS NEED, THERE IS A SHORTAGE OF PRIMARY CARE PHYSICIANS, INCLUDING GENERAL PRACTITIONERS, FAMILY PRACTITIONERS, INTERNAL MEDICINE PRACTITIONERS, OBSTETRICIANS/GYNECOLOGISTS, AND PEDIATRICIANS. MHS ATTEMPTS TO REDUCE THE SHORTAGE OF PRIMARY CARE PHYSICIANS, CREATE ALTERNATE SOURCES OF PRIMARY CARE AND REDUCE THE BURDEN THAT IMPROPER UTILIZATION PLACES ON ITS ER. MDMC AND MCMC OPERATE ACTIVE OUTPATIENT-TEACHING CLINICS STAFFED BY ITS RESIDENTS AND SUPERVISED BY ATTENDING PHYSICIANS. THE TEACHING CLINICS ARE A VALUABLE ASSET IN MEETING THE PRIMARY CARE NEEDS OF THE COMMUNITY, AS WELL AS IN TRAINING NEW PHYSICIANS. THE MDMC GOLDEN CROSS ACADEMIC CLINIC AND MCMC FAMILY PRACTICE CLINIC ARE FREESTANDING TEACHING FACILITIES WHERE PATIENTS ARE TREATED BY A STAFF OF PROFESSIONALS INCLUDING REGISTERED NURSES, INTERNS, RESIDENTS, AND FACULTY PHYSICIANS. THE GOLDEN CROSS CLINIC PROVIDES INTERNAL MEDICINE, OBSTETRICS/GYNECOLOGY, AND GENERAL SURGICAL SERVICES. THE CLINIC SERVES A LARGE MINORITY COMMUNITY THAT HAS HIGHER INCIDENTS OF PREVENTABLE AND CHRONIC MEDICAL OUTCOMES. IT IS A VITAL COMMUNITY RESOURCE PROVIDING GREATER ACCESS TO PREVENTATIVE AND AMBULATORY HEALTH CARE SERVICES FOR THE GROWING NUMBER OF UN-OR-UNDER-INSURED, POOR, AND INDIGENT RESIDENTS IN SW DALLAS COUNTY. THE CLINIC STAFF IS DEDICATED TO INNOVATIVE APPROACHES TO IMPROVING COMMUNITY HEALTH ISSUES AND EXCELLENT CLINICAL OUTCOMES FOR PATIENTS. THE FAMILY PRACTICE CENTER AT MCMC IS A TEACHING FACILITY WHERE PATIENTS ARE TREATED BY RESIDENT PHYSICIANS SEEKING POSTGRADUATE TRAINING IN FAMILY MEDICINE, FELLOWS IN SPORTS MEDICINE TRAINING, AND INSTRUCTORS. THE CLINIC PROVIDES SERVICES INCLUDING: MANAGEMENT OF CHRONIC DISEASE AND PREVENTION IN ADULTS; ADOLESCENT CARE; GERIATRIC CARE; HEALTH MAINTENANCE/ PREVENTIVE MEDICINE; NUTRITION/DIABETIC COUNSELING; PEDIATRIC CARE; SPORTS MEDICINE; WOMEN'S CARE; PREGNANCY CARE AND DELIVERY. THE FAMILY PRACTICE CLINIC ALSO SERVES A LARGE LOW INCOME POPULATION. IN FY 12 15,000 PATIENTS WERE SEEN AT THE GOLDEN CROSS CLINIC 12,000 WERE SEEN AT THE MCMC FAMILY PRACTICE CLINIC. MANY PATIENTS SEEN HERE ARE UNINSURED OR UNDERINSURED WITH LIMITED ACCESS TO OTHER TYPES OF MEDICAL PROVIDERS. SINCE 2006, BOTH THE GOLDEN CROSS CLINIC AND THE MCMC FAMILY PRACTICE CLINIC HAVE OPERATED A PROGRAM CALLED MEDASSIST, WHICH PROVIDES FREE PRESCRIPTION MEDICATIONS TO PATIENTS WHILE SOCIAL WORKERS NEGOTIATE WITH PHARMACEUTICAL COMPANIES FOR LONG-TERM ASSISTANCE. WITHOUT PROPER MEDICATION, PATIENTS WITH CHRONIC CONDITIONS -- LIKE DIABETES, HIGH BLOOD PRESSURE AND HEART DISEASE -- CAN DEVELOP SERIOUS, SOMETIMES FATAL MEDICAL PROBLEMS. THE ONLY OPTION FOR MANY PATIENTS IS TO SEEK TREATMENT AT THE NEAREST ER ONCE THEIR CONDITIONS HAVE DETERIORATED. THAT CYCLE JEOPARDIZES THEIR HEALTH AND BURDENS LOCAL HOSPITALS BY OVERLOADING ER'S WITH PATIENTS WHOSE MEDICAL NEEDS COULD HAVE OTHERWISE BEEN MET. MEDASSIST AIMS TO STOP THE CYCLE BY CONNECTING PATIENTS WITH LONG-TERM DRUG-ASSISTANCE PLANS, BRIDGING THE GAP UNTIL THOSE PLANS BEGIN, AND MANAGING PATIENTS' MEDICAL CONDITIONS OVER TIME. MEDASSIST IS PART OF THE CHRONIC DISEASE MANAGEMENT PROGRAM OFFERED AT THE GOLDEN CROSS ACADEMIC CLINIC THAT FEATURES AN EVEN WIDER BREADTH OF SERVICES. IN ADDITION TO PROVIDING FOR THE SHORT-TERM COST OF MEDICATIONS WHILE LONG-TERM DISCOUNTS ARE SECURED, FUNDS FROM THE GOLDEN CROSS PROGRAM ALLOW PATIENTS ACCESS TO AN INTERDISCIPLINARY TEAM OF HEALTH CARE PROFESSIONALS THAT WILL INCLUDE A PRIMARY CARE PHYSICIAN, SOCIAL WORKERS AND DIETICIANS. ALONG WITH THE PATIENT, FAMILY AND FRIENDS WHO SERVE AS CAREGIVERS WILL BE INVITED TO ATTEND THE APPOINTMENTS, WHICH ARE DESIGNED TO ENSURE MEDICAL INSTRUCTIONS ARE UNDERSTOOD AND FOLLOWED. DESPITE THE WEAK SOCIO-ECONOMIC INDICATORS OF MUCH OF MHS'S SERVICE AREA, THERE ARE FEW CHARITABLE CLINIC/HEALTH SERVICES AVAILABLE IN THE REGION BEYOND THE LOS BARRIOS UNIDOS COMMUNITY CLINIC WHICH IS A FEDERALLY QUALIFIED HEALTH CENTER. PARKLAND HEALTH SYSTEM OPERATES SOME COMMUNITY ORIENTED PRIMARY CARE CLINICS, BUT DESPITE THESE SERVICES MUCH OF THE AREA AROUND THE MDMC'S CAMPUS REMAINS DESIGNATED AS MEDICALLY UNDERSERVED A HEALTH PROFESSIONAL SHORTAGE AREA,OR BOTH. ADDITIONAL EXPLANATION OF PROGRAM SERVICES CONTINUATION FORM 990, PART 4A MHS CONDUCTS SCREENINGS FOR CANCER OF THE BREAST, CERVIX, AND SKIN THROUGH THE MOBILE MAMMOGRAPHY UNIT WHICH, IN PARTNERSHIP WITH SUSAN G. KOMEN BREAST CANCER FOUNDATION, OFFERS CONVENIENT SCREENINGS AND MAMMOGRAMS. THANKS TO THE GRANT PROVIDED BY THE KOMEN FOUNDATION, THE MOBILE MAMMOGRAPHY PROGRAM AT MHS REACHES RESIDENTS BY OFFERING CONVENIENT SCREENINGS IN UNDERSERVED COMMUNITIES AND MAKING DIAGNOSIS EASIER FOR MINORITY, UNDERINSURED, AND UNINSURED PATIENTS IN OUR SERVICE AREA. THE KOMEN GRANT IS UNIQUE IN THAT IT PROVIDES FUNDS FOR MOBILE MAMMOGRAPHY AS WELL AS CORE BIOPSY FOLLOW-UP PROCEDURES IF THE MAMMOGRAPHY INDICATES THAT A BIOPSY IS NECESSARY. MANY OF THE WOMEN SERVED THROUGH MOBILE MAMMOGRAPHY MAY ALSO RECEIVE CARE THROUGH THE GOLDEN CROSS ACADEMIC CLINIC AND QUALIFY FOR REDUCED RATES. THE UNIT IS ACCREDITED BY THE AMERICAN COLLEGE OF RADIOLOGY AND CERTIFIED BY THE U.S. FOOD AND DRUG ADMINISTRATION. IN FY12, THE MOBILE MAMMOGRAPHY UNIT COMPLETED OVER 3,700 MAMMOGRAMS. THE PROSTATE SCREENING AND AWARENESS PROGRAM (PSAP) AT MHS SCREENED OVER 5,700 MEN IN FY12 AND SCREENED MORE THAN 80,000 MEN FOR PROSTATE CANCER SINCE ITS INCEPTION,MORE THAN ANY OTHER HOSPITAL-BASED PROGRAM IN THE UNITED STATES. THE BENEFIT OF TESTING IS NOT LIMITED TO PROSTATE CANCER DETECTION, AS THESE SCREENINGS OFTEN IDENTIFY OTHER HEALTH PROBLEMS INCLUDING HIGH BLOOD PRESSURE AND DIABETES. IN FY 2012 MHS PROVIDED ADDITIONAL VARIOUS HEALTH SCREENINGS, INCLUDING CHOLESTEROL TESTS, OSTEOPOROSIS, AND CARDIOVASCULAR SCREENINGS TO NEARLY 4,000 PEOPLE. IN AN ATTEMPT TO ENSURE THAT ITS SERVICE AREA, AND ALL OF DALLAS COUNTY, WILL HAVE AN ADEQUATE SUPPLY OF HEALTH CARE PROFESSIONALS IN THE FUTURE, MDMC OFFERS EXTENSIVE EDUCATIONAL AND TRAINING PROGRAMS. THESE PROGRAMS INCLUDE RESIDENCY TRAINING PROGRAMS IN INTERNAL MEDICINE, OBSTETRICS/GYNECOLOGY, AND GENERAL SURGERY. MDMC ALSO SERVES AS A TRAINING SITE FOR ALLIED HEALTH PERSONNEL AND OTHERS, INCLUDING HOSPITAL ADMINISTRATORS, NURSES, PARAMEDICS, EMERGENCY MEDICAL TECHNICIANS, PHYSICAL THERAPISTS, MEDICAL RECORDS ADMINISTRATORS, CHAPLAINS, OCCUPATIONAL THERAPISTS, PHARMACISTS, SPEECH THERAPISTS, RESPIRATORY THERAPISTS, X-RAY TECHNOLOGISTS, SOCIAL WORKERS, AND DIETITIANS. MDMC ALSO PROVIDES MEDICAL CONTROL SERVICES, INCLUDING MEDICAL DIRECTION, PROTOCOL DEVELOPMENT, CONTINUING EDUCATION AND A QUALITY IMPROVEMENT INITIATIVE TO A TOTAL OF FIFTEEN FIRE DEPARTMENTS AND EMS AGENCIES IN NORTH CENTRAL TEXAS. MCMC OFFERS AN EXTENSIVE FAMILY PRACTICE RESIDENCY PROGRAM THAT TRAINS, A LARGE PERCENTAGE OF THE PRIMARY CARE PHYSICIANS MANY OF WHOM CHOOSE TO STAY IN THE AREA TO ESTABLISH THEIR PRACTICES. MHS STRIVES TO SATISFY THE CURRENT DEMAND FOR PRIMARY CARE PHYSICIANS AND ELIMINATE FUTURE SHORTAGES IN ITS SERVICE AREA BY MAINTAINING AN ACTIVE PROGRAM (PROGRAM) TO RECRUIT PRIMARY CARE PHYSICIANS TO THE AREA. THE PROGRAM ASSISTS ESTABLISHED MEDICAL STAFF MEMBERS IN ATTRACTING ASSOCIATES AND RECRUITS PHYSICIANS FOR SOLO PRACTICE. IN ADDITION, MHS OPERATES A MANAGEMENT SERVICE ORGANIZATION (MSO) THAT CONTRACTS WITH PHYSICIANS FOR THE PROVISION OF COMPREHENSIVE PRACTICE MANAGEMENT SERVICES, INCLUDING PROVISION OF MEDICAL OFFICE SPACE, FURNISHINGS AND EQUIPMENT, MEDICAL AND OFFICE SUPPLIES, ALL NON-PHYSICIAN STAFF, AND OTHER MANAGEMENT RESOURCES. THE MSO ORGANIZATION DRAMATICALLY REDUCES THE ADMINISTRATIVE BURDENS PLACED ON PHYSICIANS, AND THUS, ATTRACTS PHYSICIANS TO METHODIST AND ITS SERVICE AREA. IN FY 12, 20 PHYSICIANS JOINED THE MEDICAL STAFF AS A RESULT OF THE PROGRAM. MHS IS AN ORGANIZATIONAL CORNERSTONE FOR VOLUNTARISM, AND BRINGS TOGETHER HUNDREDS OF INDIVIDUALS IN ITS SERVICE AREA WHO DONATE MANY THOUSANDS OF HOURS TO SERVE PEOPLE IN NEED OF HOSPITALIZATION. THE RESULTING BENEFITS TO DALLAS COUNTY CANNOT BE FULLY QUANTIFIED, BUT NONETHELESS, MHS HAS IDENTIFIED VARIOUS COMMUNITY NEEDS AND HAS RESPONDED IN A VARIETY OF DIRECTIONS. IT PROVIDES GROUPS IN ITS SERVICE AREA WITH HEALTH SCREENING AND HEALTH EDUCATION SEMINARS ON A FREQUENT BASIS. IN ADDITION, IT PROVIDES SUPPORT FOR: (I) COMMUNITY GROUPS, (II) FORUMS AT LOCAL HIGH SCHOOLS, (III) USE OF THEIR FACILITIES FOR NON-PROFIT ORGANIZATIONS LIKE THE AMERICAN CANCER SOCIETY, AND (IV) VACCINATION OF SENIORS. EACH HOSPITAL ALSO OFFERS PATIENTS, FAMILIES, AND FRIENDS A VARIETY OF SUPPORT GROUPS TO HELP THEM COPE WITH GRIEF AND DISEASE. THE ENTIRE EMPLOYEE FAMILY AT MHS PROVIDES HUNDREDS OF HOURS EACH YEAR IN COMMUNITY SERVICE. THE INSTITUTION SYMBOLIZES AN ENORMOUS EXPRESSION OF VOLUNTARISM THAT GOES BEYOND MERE DOLLARS. APPROXIMATELY 1,585 VOLUNTEERS DONATE APPROXIMATELY 193,000 HOURS TO ASSIST MHS IN ACHIEVING ITS MISSION. THE MISSION AND POLICY, CONTROL AND GUIDANCE, ORGANIZATION, OVERALL OPERATIONS, AND FINANCIAL AFFAIRS OF METHODIST'S FOUR HOSPITALS ARE MANAGED AND CONTROLLED BY A BOARD OF DIRECTORS, CONSISTING OF OVER 20 VOLUNTARY DIRECTORS FROM THE COMMUNITY. A MAJORITY OF THE BOARD MEMBERS ARE CIVIC, BUSINESS, AND PROFESSIONAL LEADERS; THREE ARE METHODIST MINISTERS, AND THREE ARE PHYSICIANS HOLDING ACTIVE METHODIST MEDICAL STAFF MEMBERSHIP. IN ADDITION, INDIVIDUAL HOSPITAL ADVISORY BOARDS WERE CREATED IN 2009 AT THE REQUEST OF THE METHODIST HEALTH SYSTEM BOARD OF DIRECTORS AS A WAY TO STRENGTHEN OUR COMMUNICATION AND INFLUENCE WITH A DIVERSE GROUP OF LEADERS IN OUR SERVICE AREA. ALONG WITH REPRESENTATIVES FROM METHODIST'S BOARD, THESE ADVISORY BOARDS CONSIST OF BUSINESS OWNERS, CITY AND GOVERNMENT OFFICIALS, COMMUNITY AND CHURCH LEADERS. MEMBERS HAVE AN OPPORTUNITY TO PLAY AN INTEGRAL ROLE IN THE FUTURE OF OUR GROWTH PLANS AND HEALTH INITIATIVES. NEW FACILITY AND CAMPUS MASTER PLANS FOR BOTH THE MCMC AND MDMC SITES WERE FINALIZED IN 2009. IN AUGUST 2011, MHS ANNOUNCED THAT OUR BOARD OF DIRECTORS APPROVED A FACILITY EXPANSION PLAN EXCEEDING $135 MILLION THAT WILL DIRECTLY BENEFIT SOUTHWEST DALLAS COUNTY THROUGH RENOVATIONS OF MDMC AND MCMC. SOUTHERN DALLAS IS VITAL TO THE FUTURE GROWTH OF THE CITY OF DALLAS AND DALLAS WILL GREATLY BENEFIT FROM THIS ESSENTIAL EXPANSION PROJECT AND THE SERVICES THAT MHS PROVIDES. MEANWHILE MHS CONTINUES TO STRESS THE NEED FOR AFFORDABILITY IN HOSPITAL CHARGES WHILE MAXIMIZING QUALITY OF CARE. MHS CHARGES CONTINUE TO BE COMPETITIVE WITH HOSPITALS WITH SIMILAR SERVICES. FORM 990, PART VI, SECTION A, LINE 2 SEE SCHEDULE L DISCLOSURES FORM 990, PART VI, SECTION A, LINE 2 DUNCAN FULTON,BUSINESS RELATIONSHIP WITH GEORGE SHAFER. JOHN COLLINS, BUSINESS RELATIONSHIP WITH JULIE YARBROUGH AND STEVE MANSFIELD. MICHAEL SCHAEFER, BUSINESS RELATIONSHIP WITH KEN PRITCHETT FORM 990, PART VI, SECTION A, LINE 4 THE VICE CHAIRPERSON-FINANCE OF MHS SHALL BE A DESIGNATED VOTING MEMBER OF THE FINANCE AND AUDIT COMMITTEE(S) AND SHALL SERVE AS THE FINANCE COMMITTEE'S CHAIRPERSON. THE FOLLOWING WILL BE STANDING COMMITTEES OF THE MHS BOARD OF DIRECTORS. 1. FINANCE COMMITTEE, 2.PLANNING COMMITTEE, 3.RETIREMENT PLANS COMMITTEE, 4. ADVISORY COMMITTEE, 5.CORPORATE GOVERNANCE AND NOMINATING COMMITTEE, 6. AUDIT COMMITTEE, 7.EXECUTIVE COMMITTEE, 8. CORPORATE OVERSIGHT COMMITTEE, 9.MANAGEMENT DEVELOPMENT AND COMPENSATION COMMITTEE, 10. SYSTEM QUALITY REVIEW COMMITTEE. EACH STANDING COMMITTEE SHALL, TO THE EXTENT PERMITTED BY APPLICABLE STATUTES AND WITHIN EACH SUCH COMMITTEES AREA OF RESPONSIBILITY AS EXPRESSLY SET FORTH IN THESE BYLAWS, HAVE THE AUTHORITY OF THE BOARD OF DIRECTORS BETWEEN REGULAR MEETINGS OF THE BOARD. THE BOARD OF DIRECTORS MAY ACT, AS IT DEEMS APPROPRIATE, TO CREATE, DISSOLVE, AND MODIFY, FROM TIME TO TIME, SYSTEM HOSPITAL ADVISORY BOARDS (ADVISORY BOARD). TO THE EXTENT CREATED, AN ADVISORY BOARD SHALL BE COMPOSED OF THE FOLLOWING VOTING MEMBERS: AT LEAST ONE (1) EXISTING DIRECTOR WHO IS ON THE BOARD OF DIRECTORS AND SUCH OTHER PERSONS, NOT TO EXCEED FIFTEEN (15), WHO MAY BE PERSONS NOT ON THE BOARD OF DIRECTORS BUT MUST INCLUDE AT LEAST ONE (1) PHYSICIAN FROM THE SYSTEM INSTITUTION(S) SERVED BY THE ADVISORY BOARD AND ONE (1) CLERGY MEMBER WHO IS A PASTOR UNDER FULL-TIME APPOINTMENT WITH THE UNITED METHODIST CHURCH. EXCEPT FOR THE MEMBER WHO IS THE PHYSICIAN REPRESENTATIVE AND THE MEMBER WHO IS AN EXISTING DIRECTOR ON THE BOARD OF DIRECTORS, MEMBERS CHOSEN TO SERVE ON THE ADVISORY BOARD SHOULD BE RESIDENTS, COMMUNITY REPRESENTATIVES AND/OR BUSINESS REPRESENTATIVES FROM OR OTHERWISE DEMONSTRATE AN INTEREST IN THE COMMUNITIES SERVED BY THE SYSTEM INSTITUTION FOR WHICH THE ADVISORY BOARD IS ESTABLISHED. EACH SYSTEM HOSPITAL ADVISORY BOARD CREATED BY THE BOARD OF DIRECTORS SHALL HAVE AND MAY EXERCISE THE POWER OF MAKING RECOMMENDATIONS TO THE BOARD OF DIRECTORS AND MONITORING THE IMPLEMENTATION OF ANY INSTRUCTIONS, POLICIES, PLANS AND PROGRAMS APPROVED, AUTHORIZED AND ADOPTED BY THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 11 A COMMITTEE OF THE BOARD RECEIVES A DETAILED PRESENTATION OF THE FORM 990 FOR THEIR REVIEW. ONCE THIS COMMITTEE APPROVES THE FORM 990 TO BE FILED THEN IT IS PROVIDED ELECTRONICALLY TO ALL MEMBERS OF THE BOARD FOR THEM TO REVIEW. FORM 990, PART VI, SECTION B, LINE 12C ALL OFFICERS,DIRECTORS AND EMPLOYEES ARE REQUIRED TO FILE ANNUALLY A DISCLOSURE STATEMENT DETAILING ANY POTENTIAL CONFLICTS WHICH ARE THEN MONITORED BY THE MHS COMPLIANCE OFFICER. FORM 990, PART VI, SECTION B, LINE 15 THE MANAGEMENT DEVELOPMENT AND COMPENSATION COMMITTEE OF THE BOARD REVIEWS AND DETERMINES THE ANNUAL COMPENSATION OF THE CEO. ALSO ON AN ANNUAL BASIS THE CEO PRESENTS PROPOSED MERIT AND BONUS/ INCENTIVE COMPENSATION FOR SVP AND ABOVE TO THE COMMITTEE FOR REVIEW AND APPROVAL. FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATMENTS ARE AVAILABLE UPON REQUEST AT THE CORPORATE OFFICES. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 6034353. BEGINNING ADJUSTMENT FOR MERGER OF METHODIST RICHARDSON OPERATIONS 23600988. UNREALIZED GAIN ON PENSION INVESTMENT 217833. RESTRICTED DONATIONS PROPERTY PLANT & EQUIPMENT 3269233. TRANSFER TO UNRESTRICTED 6399878. TOTAL TO FORM 990, PART XI, LINE 5: 39522285. AUDIT COMMITTEE FORM 990, PART XII,LINE 2(C) THERE HAS BEEN NO CHANGE IN THE PROCESS BY WHICH THE AUDIT COMMITTEE OF THE BOARD OVERSEAS THE OUTSIDE AUDIT PROCESS. JOINT VENTURE ARRANGEMENTS FORM 990, PART VI, SECTION B, LINE 16 THE ORGANIZATION HAS A POLICY ON PHYSICIAN JOINT VENTURES WHICH REQUIRES THE INVESTMENT TO BE REVIEWED BY MHS LEGAL AND FINANCE DIVISIONS. THIS PRACTICE IS FOLLOWED FOR ALL JOINT VENTURES. ALL JOINT VENTURE INVESTMENTS ARE APPROVED BY THE BOARD PRIOR TO THE INVESTMENT. 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