2013-11-15T15:06:47-06:00 2012-12-31 861065772 DELOITTE TAX LLP 1111 BAGBY STREET SUITE 4500 HOUSTON TX 770022591 990 2012-01-01 741180155 THE METHODIST HOSPITAL METH 8326676160 6565 Fannin No GB240 Houston TX 770302707 Kevin J Burns 7134413421 2013-11-15 1 Jeffrey D Frank P00287234 7139822000 2012 2016-03-07 17:11:31Z Kevin J Burns 6565 Fannin Houston TX 77030 3551486091 0 5792 X www.methodisthealth.com X 1946 TX PROVIDE MEDICAL CARE (SEE MISSION STATEMENT ON PAGE 2) 25 22 7980 1035 344064 0 9159499 10102170 1232011052 1251237501 22708757 66784908 23599480 29298628 1287478788 1357423207 6482892 6222246 0 0 490072124 517320761 0 0 0 676687881 711584226 1173242897 1235127233 114235891 122295974 4927064658 5168532160 2044416806 1960034702 2882647852 3208497458 X To provide high quality, cost-effective health care that delivers the best value to the people we serve in a spiritual environment of caring in association with internationally recognized teaching and research. 0 0 970945684 6222246 1251167758 SEE SCHEDULE OCurrently The Methodist Hospital operates 840 staffed beds in its Texas Medical Center facilities. The Methodist Hospital recorded 381,467 visits during 2012 which were comprised of 290,555 outpatient visits, 55,370 emergency room visits and 35,542 inpatient visits. And it performed 15,661 inpatient surgeries and 18,588 outpatient surgeries in 2012.The principal medical services available at The Methodist Hospital are Anesthesiology, Cardiovascular Surgery, Oral & Maxillofacial-Hospital Dentistry, Dermatology, Family Medicine, General Surgery, Internal Medicine, Atherosclerosis/Lipoprotein, Cardiology, Clinical Immunology, Gastroenterology, General Medicine, Hematology, Hypertension, Infectious Diseases, Medical Genetics, Metabolic and Endocrine Diseases, Nuclear Medicine, Oncology, Pharmacology, Pulmonary Diseases, Renal Diseases, Rheumatology, Neurophysiology, Neurosurgery, Obstetrics and Gynecology, Ophthalmology, Orthopedic Surgery, Otolaryngology-Head & Neck Surgery, Pathology, Pediatrics, Physical Medicine and Rehabilitation, Plastic Surgery, Psychiatry, Radiology, Radiotherapy, and Urology. The Methodist Hospital also offers a range of additional patient services, including ambulatory surgery, a blood donor center, diabetes treatment in a dedicated inpatient unit, a rehabilitation center, a skilled nursing facility, and a broad range of preventive health care instruction, including smoking cessation, stress management, weight control, and cardiac and pulmonary rehabilitation.General outpatient services offered by The Methodist Hospital include audiology, speech pathology, psychiatric services, diagnostic cardiology (including nuclear cardiology, echocardiography, electrocardiography, pacemaker evaluation, and coronary catheterization), chronic renal dialysis, endoscopy, emergency services, general and diagnostic radiology (including fluoroscopy, ultrasound, mammography, myelography, CT scanning, and MRI), nuclear medicine, pathology, peripheral vascular laboratory, dermatology, physical medicine, radiotherapy, sleep studies and neurophysiologic evaluations, and surgery.The Methodist Hospital operates a multi-organ transplant center. Transplants being performed at present include kidney, heart, lungs, liver, pancreas, islet cell and bone marrow. The Methodist Hospital performed the first islet cell transplant in Texas of liver cells from a donor's pancreas to the liver of a diabetic patient resulting in donor cells producing insulin.The Methodist Hospital responds to the community's needs not only through the provision of medical care, but also through education of health professionals and patients, community health education, donations to health care related events and other services, and medical and health research. 970945684 1 1 0 1 0 0 0 0 0 1 1 0 0 1 1 1 0 1 0 0 1 0 0 0 0 0 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 X 1074 0 1 7980 1 1 1 1 TU BR MY RP TH EZ DA EG HU ID KS PL CH TW IS AE CO RS PE 0 0 0 0 0 0 0 0 X 25 22 0 0 0 0 0 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 X Edward L Tyrrell FACHE 8326676160 6565 Fannin GB240 Houston TX 77030 X Sixteen Directors-see Methodist 2.00 1.00 X 91612 183702 34790 Ten Officers-see Methodist 9.00 3.00 X 1664165 0 76063 Four Key Employees-see Methodist 43.00 7.00 X 2892916 0 218842 Three Highest Pd Employees 50.00 0.00 X 1298397 0 131500 Two Former Officers-see Methodist 0.00 0.00 X 2082453 0 71083 8029543 183702 532278 449 1 1 0 Four Contractors-consolidated with Methodist Hospital Group Houston TX 77030 See explanation in Schedule O and detail 29940942 112 10102170 10102170 Patient Care Services 900099 1224512064 1224512064 Related Org. Rent 531390 26725437 26655694 69743 1251237501 32323892 32323892 2325 2325 2228463000 60900 2192910754 1152130 35552246 -1091230 34461016 34461016 Other Income 900099 18465342 269004 18196338 Patient Food Services 900099 8294005 5317 8288688 Patient Parking 812940 2380643 2380643 156313 156313 29296303 1357423207 1251167758 344064 95809215 6202614 6202614 19632 19632 7097135 1486632 5610503 396142841 331065976 65076865 19587623 15410634 4176989 65546992 62313180 3233812 28946170 24217762 4728408 7844385 7844385 578850 578850 453215 453215 9532702 9532702 80851520 58480117 22371403 11627206 2336347 9290859 32307655 21611233 10696422 26718760 252050 26466710 19053968 407092 18646876 2275996 1262379 1013617 598600 157849 440751 19231106 19231106 92997811 70249847 22747964 9972798 9972798 Medical Supplies 273729198 272103492 1625706 Prof. Services (Net) 119988702 101431560 18557142 Property Taxes 1397379 1397379 2424375 1937288 487087 1235127233 970945684 264181549 0 48216160 54381811 178743874 196588957 22440671 20989934 29814863 31090014 2143788599 1164521573 1004974061 979267026 2567974623 2887948389 17999567 19591309 1056900839 978674720 4927064658 5168532160 235495842 249063532 1737666841 1641584343 71254123 69386827 2044416806 1960034702 X 2882647852 3208497458 2882647852 3208497458 4927064658 5168532160 X 122295974 202173944 1379688 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 453215 453215 973139288 973592503 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 496653 523844 812880 453215 2286592 250000 250000 250000 250000 1000000 1500000 114050454 14531995 11436847 2341804 142361100 105888889 9226495 -508641 -556289 114050454 82721284 20659008 8564737 -6056140 105888889 61269374 13855093 11116253 -3519436 82721284 43868781 2447456 16521527 -1558625 61269374 0.00000 0.82140 0.17860 0 1 1 56688356 92864448 149552804 1164317263 510911385 653405878 829918532 653610188 176308344 979267026 Due from Affiliates 905760834 Construction in Progress 63642339 Deposits and Miscellaneous Receivables 7853067 Deferred Financing Costs 1418480 978674720 Reserve for Contingencies 62086827 Asset Retirement Obligation 7300000 69386827 X Description of Intended Use of Endowment Funds: Part V, Line 4: The Methodist Hospital Foundation, a related organization of The Methodist Hospital, holds permanently restricted net assets which consist of 67 individual endowment accounts. Unless otherwise directed by the donor, gifts received for endowment accounts are invested consistent with The Methodist Hospital's approved investment policy. Unless otherwise directed by the donor, The Foundation has a policy of annually appropriating a certain percentage of each endowment account, which is then available to be spent consistent with donor intent. In order to preserve the real value of a donor's gift and to sustain funding consistent with donor intent, the annual appropriation rate is set to strike a reasonable balance between long-term objectives of preserving and growing each endowment fund for the future and providing stable, year-to-year appropriation amounts. Description of Uncertain Tax Positions Under FIN 48: Part X, Line 2: Part X, Line 2: The Methodist Hospital's financial statements are included in the consolidated financial statements of The Methodist Hospital System (TMHS), which are audited by an independent accountant. TMHS did not recognize any adjustments related to uncertain tax positions as of December 31, 2012. EAST ASIA AND THE PACIFIC 0 0 PASSIVE INVESTMENT 16669002 EUROPE 0 0 PASSIVE INVESTMENT 11006027 MIDDLE EAST AND NORTH AFRICA 0 0 PASSIVE INVESTMENT 21218137 SOUTH AMERICA 0 0 PASSIVE INVESTMENT 15362625 RUSSIA & THE NEWLY INDEPENDENT STATES 0 0 PASSIVE INVESTMENT 1778975 0 0 0 0 0 0 66034766 0 66034766 0 0 0 0 0 0 1 1 1 X 1 X 1 0 1 1 28497617 28497617 0.02310 49077781 26549640 22528141 0.01820 387957 129781 258176 0.00020 77963355 26679421 51283934 0.04150 38120481 9790349 28330132 0.02290 96494533 76372 96418161 0.07810 5629465 5629465 0.00460 140244479 9866721 130377758 0.10560 218207834 36546142 181661692 0.14710 1 8748695 287383879 365785415 -78401536 X 1 1 1 1 The Methodist Hospital

6565 Fannin Houston TX 77030

X X X X Skilled Nursing Facility, Psych, Rehab Units The Methodist Hospital 1 1 1 200.000000000000 1 400.000000000000 1 X X X 1 1 X X 1 0 1 X 0 0 Part I, Line 3c: The Methodist Hospital uses Federal Poverty Guidelines (FPG) and other information to determine eligibility for providing free care and discounted care to low income individuals. Part I, Line 6a: The Methodist Hospital System (the "System", The Methodist Hospital is the flagship hospital of the System) prepares an annual community benefit report which is made available to the public. This report includes charity care and community benefits provided by The Methodist Hospital and four other related acute care community hospitals in Harris County and in neighboring Fort Bend County, Texas. Part I, Line 7: The costing methodology used to calculate the amounts reported in the Table in Part I was a cost to charge ratio derived from Worksheet 2 (Ratio of Patient Care Cost to Charges), as provided in the instructions to Form 990 Schedule H. Part I, Line 7g: The Methodist Hospital has not reported any subsidized health services in Part I, line 7(g). Part II: The Methodist Hospital has not reported any community building activities in Part II, lines 1-10. Part III, Line 4: The text of the footnote that describes bad debt expense from the audited consolidated financial statements of The Methodist Hospital System, which includes The Methodist Hospital, is as follows: Uncollectible, uncompensated care generally represents standard charges that are unrealizable due to an unwillingness to pay by those responsible for payment (bad debt).Uncollectible, uncompensated care is reported as a deduction from gross patient revenue. The costing methodology used in determining the amount of bad debt expense (at cost) reported on line 2 (no amount was reported on line 3) was derived from applying the ratio of patient care cost to charges (from Worksheet 2, line 11) to bad debt attributable to patient accounts. Part III, Line 8: Medicare allowable costs were derived from The Methodist Hospital's filed Medicare Cost Reports for the year ended December 31, 2012. The entire Medicare shortfall ($78.4 million) as reported in Part III, line 7, as well as the unreimbursed cost of the Medicare managed care program ($13.8 million), and TRICARE programs ($1.6 million ), should be treated as a community benefit, since these shortfalls, or subsidies, reduce the federal government's burden in providing health care to Medicare beneficiaries. Part III, Line 9b: The Methodist Hospital System has a written bad debt collection policy; however, no collection efforts are put forth for patients who are known to qualify for financial assistance under the charity care policy.Part V, Section B-Lines 1 through 8 The Methodist Hospital has not completed this section since it is optional for the 2012 Schedule H Form 990.Part V, Section B, Line 14g:The Methodist Hospital provides notice of charitable assistance using a variety of means. A notice is published in the Patient Guide provided to patients at the time of check-in which informs patients that a copy of our financial assistance policies can be viewed by calling the customer service line. This notice is also displayed on signs in each check-in lobby area. The notice to contact customer service is also available on the hospital's website.Part V, Section B-Line 16 The Methodist Hospital does not take any actions (e.g., reporting to credit agency, lawsuits, liens on residences, body attachments nor any other similar actions) against an individual.Part V, Section B-Line 20d The Methodist Hospital charges FAP-Eligible patients the same as all other patients, however, a discount is provided in accordance with the financial assistance policy. This discount is greater than the discount provided to non-FAP-Eligible patients. Part VI, Line 2: The Methodist Hospital System utilized several different methods to identify its Community Health priorities (health care needs) of the communities it serves. These methods include but are not limited to the review of the Texas Institute of Health Policy research community data; Harris County Public Health & Environmental Services community data; TexasState Data Center and Office of the State Demographer; Texas Department of State Health Services; Texas Cancer Registry; Center for Disease Control and Prevention; community advisory group committee reports for nonprofit clinics and agencies (e.g., Harris County Healthcare Alliance Primary Health Needs Assessment); Texas Department of Public Health selected health data; and community health status report for Harris, Liberty, Fort Bend, Chambers, Brazoria, Galveston and Montgomery counties. Additionally, The Methodist Hospital System performs an annual Community Health Needs Assessment that evaluates the population of The Methodist Hospital service area by looking at demographics, current health characteristics in the community and access to healthcare. Resources used to assess the health priorities for the Community Health Needs Assessment include but are not limited to Behavioral Risk Factor Surveillance System; The State of Health 2012; Health of Houston Survey and many other sources. Part VI, Line 3: Financial Assistance is provided in multiple locations within The Methodist Hospital System; at the point of registration, during case management and at the time of collections post discharge. Every check-in location has information posted in both English and Spanish stating how the patient can access financial assistance. Additionally, this information is posted on The Methodist Hospital System website and is included in the patient guide provided to the patient at the time of registration. The Methodist Hospital System financial counselors actively seek all uninsured inpatients and outpatients with scheduled services for a personal visit. During these visits, the financial counselors will screen the patient for financial assistance and will provide the patient with the financial assistance application. The patient will then be provided a list of resources with contact information should the patient require further assistance in completing the application. The Methodist Hospital System utilizes an eligibility partner to work closely with patients to quality for State and Federal assistance programs (e.g., Medicaid, SCHIP, Crime Victims, etc.). This eligibility partner will meet with all uninsured inpatients to discuss State and Federal assistance programs; where the patient is not eligible for these programs, The Methodist Hospital System's internal financial assistance program is introduced. The Methodist Hospital System's case management unit works closely with the patient during patient discharge management to ensure the patient is introduced to all resources that may be needed post discharge (e.g., home health, skilled nursing, etc.). The case management unit works with the patient to qualify the patient and to gain access to these resources. Additionally, the case management unit works closely with the financial counselors when the patient is identified as having a need for financial assistance.The Methodist Hospital System's patient accounting unit works closely with all uninsured patients post discharge during the billing and collections process. The Methodist Hospital System's collections personnel will verbally screen patients for financial assistance during collection calls; where applicable, the patient will be sent a financial assistance application either in English or Spanish. Additionally, all billing statements provide the patient with a phone number for customer service to obtain payment options. The Methodist Hospital System utilizes outside collection assistance, for both early out and bad debt collections. Each collection agency must adhere to The Methodist Hospital System's financial assistance policy and philosophy during all communication and collection events with The Methodist Hospital System patients. The Methodist Hospital System's financial assistance application is reviewed periodically; additionally, The Methodist Hospital System personnel are provided with educational inservices in the administering of the financial assistance policy as needed. Part VI, Line 4: The Methodist Hospital is a Texas non-profit corporation which owns and operates a tertiary care hospital and related medical office buildings, research, outpatient and other facilities in and near the Texas Medical Center in Houston, Texas.The Methodist Hospital's primary services area is comprised of 8 counties - Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery and Waller with a population estimated at more than 6.2 million for 2013.Harris County has the largest population with an estimated 4.3 million as of January, 2013. From 2000 to 2013 the population has increased at a rate of 31%. The population is expected to grow 8% in the next five years. The specific make-up of the service area includes Caucasian 37%, Hispanic 37%, African American 17%, Asian 7% and other 2%. Economically, the median household income is $55,910. Chambers County has undergone the most growth in average household income (44%) and projections estimate it to lead all other counties in The Methodist Hospital community in average household income growth to 2018 (16%). Harris County, comparatively, experienced the least growth in average household income from 20002013 (20%) and projects a no growth in average household income growth for the 20132018 period (0%). Fort Bend County currently has the highest average household income at $92,203 and projects to expand to nearly $100,000 by 2018. Liberty County currently has the lowest average household income at $57,455 and projects an expansion to $59,046 still making it the county with the lowest average household income. Examining the service area at the insurance level, the area consists of 73.1% insured and 26.9% uninsured. Part VI, Line 5: The Methodist Hospital, an acute care complex with 766 operating beds, 73 operating rooms, 1,852 affiliated physicians and 5,957 employees, is the flagship of The Methodist Hospital System.Affiliated with the Texas Annual Conference of the United MethodistChurch, The Methodist Hospital works closely with local church leaders tobring compassion and spirituality to all of its endeavors and to help meetthe health needs of the community it serves. The Methodist Hospital'sprimary academic affiliates are Weill Cornell Medical College and New YorkPresbyterian Hospital. The Methodist Hospital also has affiliations withthe University of Houston, Rice University, Baylor College of Medicine andothers. The Methodist Hospital is a teaching hospital and as part of itsteaching program it sponsored 192 medical residents in 31 accreditedprograms and 6 non-accredited programs in 2012. It also hostedapproximately 450 resident rotations, 100 medical student rotations and350 other learner rotations from different programs around the country.Governing BodyThe Methodist Hospital is governed by a board of directors comprised ofmembers of the community where it is located. The Methodist Hospital'sboard of directors includes members from the community as well as theSystem's President/CEO, The Methodist Hospital's medical staff presidentand the bishop of the Texas Annual Conference of the United MethodistChurch.Community CouncilsThe Methodist Hospital also has community involvement through advisorycouncils comprised of community members, including members of TheMethodist Hospital Board of Directors, who volunteer to createhealth-related programs for Houstonians. One example is The MethodistDeBakey Heart & Vascular Center Council, which is a group of Houston'sleaders who advise the DeBakey Heart & Vascular Center on how it can bestserve our patients and our community. The group is comprised of opinionleaders whose experience in business and non-profit boards help shape ourfuture direction and use of resources. One way the council directs theseresources to promote the health of the community is through the Save aLife CPR/AED Training Sessions. For the last five years, The MethodistDeBakey Heart & Vascular Center has partnered with the Houston Texans,American Red Cross, and Texas Arrhythmia Institute to offer mass CPR/AEDtraining days to the Houston community. The effort is spearheaded by theDeBakey Heart & Vascular Center's council members and has successfullytrained more than 3,100 individuals since its inception.Other councils include the Neurological Institute National Council and theCenter for Performing Arts Medicine Advisory Council.Medical Staff ModelThe Methodist Hospital has an open medical staff model. The open modelgives patients access to physicians of all affiliations.Health EducationThe Methodist Hospital Education Institute (TMHEI) was established by TheMethodist Hospital System in 2006 upon the recommendation of aninterdisciplinary team of health care practitioners charged by TheMethodist Hospital Board of Directors with creating a vision for healthprofessions education and training in The Methodist Hospital System. Thepurpose of TMHEI is to provide the best education and training to alldisciplines in the hospital, enabling the best patient care. The Office ofContinuing Medical Education provides local, national and internationaleducation concentrated in areas where our clinicians and scientists haverecognized excellence and where our community has the greatest need.Since 2005, The Methodist Hospital has trained physicians in variousmedical and surgical specialties. Methodist sponsored 31 ACGME-accreditedand 6 non-accredited programs in 2012. The Methodist Institute forTechnology, Innovation and Education (MITIE) is a comprehensive,state-of-the-art education and research center for physicians who wish toacquire new procedural skills and integrate new technologies into theirpractices. Its research mission is to enhance the use of image guidedtechnology to guide procedures, incorporate robotic surgery into the imageguided platform and develop new technology and procedural techniques.The Methodist Hospital also offers a medical laboratory science programwith a 12-month track for professionals in pathology and laboratorymedicine; an administrative fellowship and internship program for futurehealth care leaders; professional development programs for nursing; apharmacy residency program and a postgraduate residency for cardiovascularsurgery physician assistants.The Methodist Hospital has created the Finger Fellowship Program inSustainable Health to allow young people to experience the nexus of healthscience, policy, and community. This fellowship gives exceptional youngpeople an opportunity to pursue individualized interdisciplinary researchand to use that experience to lead improvements in health at the national,state or local level.Medical ResearchThe Methodist Hospital Research Institute, a subsidiary of The MethodistHospital, was established in 2004 to conduct essential translationalresearch. It is home to more than 1,500 credentialed researchers and 695ongoing clinical trials. The Methodist Hospital Research Institute isdirectly tied to clinicians and patients to help move the best in medicaltechnology to the patient faster - for better prevention, diagnosis andtreatment of disease. The Methodist Hospital Research Institute is one wayThe Methodist Hospital integrates its services, by bringing the researchconducted in the laboratory to the patient's bedside. The discoveries madeby our researchers quickly filter down to our hospitals in the form of newtreatments and improved procedures.Use of Surplus FundsIn 2012 The Methodist Hospital provided $28.5 million in financialassistance based on the IRS definition of cost. An internal charity careprogram provides services to the indigent at The Methodist Hospital andthrough affiliated organizations. The majority of patients who qualifiedfor charity care were educated about the program through signs postedthroughout the hospital. Other patients were referred by their physicians,hospital staff, other patients and through funded community agencies.Surplus funds are also used each year to strengthen community serviceoutreach to support low-income and uninsured patients to help them attainaccess to comprehensive health care. Approximately 137,420 patient contactvisits were reported in 2012 from 36 charity care agencies supported byThe Methodist Hospital System Community Benefits program. Servicesprovided include primary health care, emergency and routine care,immunizations, dental care, psychological and case management services,well child examinations, sick visits, health education, health screenings,well woman exams and in-kind lab services and X-rays.The Methodist Hospital's support allowed these organizations to enhancetheir services to low-income patients with diverse health needs. Methodistprovided direct funding and/or in-kind services including lab tests,X-rays, immunizations, human resources consultation and other services.With The Methodist Hospital's support, agencies like Denver Harbor Clinicand Good Neighbor Healthcare Center were positioned to meet FederallyQualified Health Center designee qualifications, thereby allowing them toqualify for enhanced Medicare and Medicaid reimbursement.Programs at The Methodist Hospital helped improve awareness of strokesigns, risk factors and prevention through the Stride4Stroke communityawareness campaign. Since the campaign's inception, Methodist has educatedmore than 35,000 people; that amount is in addition to the participants ofthe Stride4Stroke walk. Programs addressed health disparities through ourpresence in minority communities and through outreach to women. Forfurther information regarding what The Methodist Hospital is doing tobenefit the communities it serves, see the response to Part VI, Line 6. Part VI, Line 6: Located in the heart of the Texas Medical Center, The Methodist Hospitalis the flagship hospital of The Methodist Hospital System and servespatients from all over the world. The Methodist Hospital System includesMethodist Sugar Land Hospital in Fort Bend County, San Jacinto MethodistHospital in Baytown, Methodist Willowbrook Hospital in northwest Houstonand Methodist West Houston Hospital which opened in December 2010. TheMethodist Hospital shares the greater mission of The Methodist HospitalSystem to provide high quality, cost-effective health care that deliversthe best value to the people we serve in a spiritual environment of caringin association with internationally recognized teaching and research. TheMethodist Hospital is among the country's largest non-profit health careproviders. In 2012, The Methodist Hospital treated 35,542 inpatients and290,555 outpatients. It received 55,370 emergency room visits.The Methodist Hospital promotes the health of the community and themission of The Methodist Hospital System by delivering the highest qualityand safest health care to our patients. Quality initiatives range fromhand hygiene programs (with exceptionally good results), to patient falland infection reduction programs. The Methodist Hospital was the firsthospital in the Texas Medical Center to require its employees, vendors andvolunteers to receive the seasonal flu shot to protect our patients, thosetypically most vulnerable to complications from the flu.The Methodist Hospital is the academic medical center in The MethodistHospital System, bringing the community an institution dedicated topatient care, research and education. By serving as a leading academicmedical center, it provides the community quality patient care, leadingresearch that can be quickly translated into treatments and the trainingof our country's future doctors. While all System hospitals providequality patient care, The Methodist Hospital expands the vision to includeresearch and a comprehensive residency program.Aside from promoting the health of our community by delivering exceptionalleading care to our patients, The Methodist Hospital System makessignificant contributions through community benefits programs as describedbelow.Community Benefit Activities and Health ServicesThe Methodist Hospital System in 2012 provided medical care to patientswho were medically and/or financially indigent as well as patients whoqualified for government sponsored indigent care.In 2012, The Methodist Hospital System's cash and in-kind contributionstotaling approximately $8.3 million supported the following grassrootsagencies across the Greater Houston area, including those communitiesserved by our community hospitals:-Bering Omega Community Services-Boys and Girls Country of Houston, Inc.-Breath of Life Children's Center, Inc.-Casa De Esperanza de los Ninos, Inc.-Chinese Community Center, Inc.-Christ Clinic-CHRISTUS Home Care-Covenant House Texas-El Centro de Corazon/Eastwood Health Clinic-Eye Care for Kids Foundation-Fort Bend County Women's Center, Inc.-Fort Bend Family Health Center, Inc.-Fort Bend Regional Council on Substance Abuse-Good Neighbor Healthcare Center-Harris County Clinical Services, Inc.-Healthcare for the Homeless - Houston-HOPE Clinic-Houston Area Women's Center-Houston Hospice-Interface-Samaritan Counseling Center-Interfaith Community Clinic-Krist Samaritan Centers for Counseling and Education-Legacy Community Health Services-Matagorda Episcopal Hospital Outreach Program-Montrose Counseling Center, Inc.-Neighborhood Centers, Inc.-Northwest Assistance Ministries-San Jose Clinic-Service Organization of Greater Houston-Shalom Mobile Health Ministry-The Center, Inc.-The Center for Hearing and Speech-The Rose-The Women's Home-TOMAGWA Health Care Ministries-Vecino Health CentersThis support allowed these organizations to leverage dollars and enhancetheir services to low-income patients with diverse health needs. TheMethodist Hospital System provided direct funding and/or in-kind servicesincluding lab tests, X-rays, immunizations, human resources consultationand other services. With Methodist's support, agencies like Good Neighbor Healthcare Center were positioned to meetFederally Qualified Health Center designee qualifications, therebyallowing them to qualify for enhanced Medicare and Medicaid reimbursement.EducationThe Methodist Hospital's primary academic partner is Weill Cornell MedicalCollege in New York. The two institutions share best practices andcollaborate on research, education and clinical care. More than 300Methodist physicians have Weill Cornell faculty positions, and TheMethodist Hospital sponsors almost 200 of its own medical residents invarious specialties - ranging from neurosurgery to pathology toobstetrics/gynecology - and hosts several more from other medicalinstitutions.In addition, The Methodist Hospital collaborates with many other academicand medical institutions to promote the health of the community, includingNew York-Presbyterian Hospital, Rice University, Baylor College ofMedicine, University of Houston, Texas A&M University, Texas Children'sHospital, University of Texas Health Science Center, Texas Woman'sUniversity and Prairie View A&M, among others.Community InvolvementThe Methodist Hospital actively develops awareness initiatives,sponsorships and programs that promote health and wellness, prevention andearly detection. The Methodist Hospital staff and volunteers can be seenat health screenings, exercise and nutrition promotions, stress managementclinics and other health promotion activities throughout the year. Forexample, The Methodist Hospital participated in The Methodist HospitalSystem's fourth annual Stride4Stroke 5K Walk/Run, which raised more than$550,000 in 2012. The walk/run is part of The Methodist Hospital System'scommunity stroke awareness campaign aimed at increasing stroke awarenessand education in the community. More than 2,800 employees and communityparticipants joined this effort to raise public awareness and funds for anevent that clearly has an impact on the community.The Methodist Concussion Center provides comprehensive services and adedicated team of concussion specialists to educate athletes, especiallystudent-athletes, about the importance of concussion awareness. Throughthe center, student athletes have access to ImPACT (Immediate, PostConcussion Assessment and Cognitive Testing) testing, at their schools orat the Concussion Center. ImPACT is the first computerized concussionevaluation system. In addition to providing clinical care, the concussioncenter staff educates the community about signs and symptoms, dangers andproper medical management. The Center conducts outreach activities whichbenefit more than 1,000 Houston-area residents monthly.The Nantz National Alzheimer Center at The Methodist Hospital advancesresearch and treatment of Alzheimer's disease, one of the biggest threatsto the elderly population in our country. It is projected that as many as16 million people will have Alzheimer's by 2050. The center, dedicated tofinding a cure for Alzheimer's, addresses one of the biggest health crisesaffecting Americans today.The Methodist Hospital promotes the health of the community by fulfillingThe Methodist Hospital System's mission through exceptional, high-qualitypatient care, education and research, affiliations with academic andmedical partners for improved community health care, charity care andcommunity involvement.The Methodist Hospital also cooperates with local entities to identifycommunity needs. Members of The Methodist Hospital's executive team are onthe boards of local organizations like the Greater Houston Health CareAlliance that advocate for educational, environmental and health careissues that affect public policy and international companies that dobusiness in Houston.The Methodist Hospital System's employees have a longstanding tradition ofsupporting efforts to improve the health and well-being of our community.Our employees donate time, talent and money to many great communitycauses. The Methodist Hospital System recently created a program called I CARE in Action, which provides employees paid time to volunteer at approved community organizations. The program encourages employees to becomeinvolved in the local communities Methodist serves and provides theexpertise and passion of Methodist employees to assist others.Hospital administration also allocates hours to coordinate and supportvoluntary employee projects to meet specific community needs. Hospitalemployees participated in or provided a service for the following:-United Way Campaign-employee contributions-American Heart Association's Houston Heart Walk and Stroke Continuumof Care-sponsorship; employee participated in Walk-National Multiple Sclerosis 150 Bike Tour(Houston-to-Austin)-sponsorship employees participated in Bike Ride-Komen Race for the Cure-sponsorship; employee participated in Walk andvolunteered-ADA Diabetes Walk-contributions/Walk-Stride4Stroke 5K Run/Walk-contributions/volunteers/Walk/Run-PAWS-corporate sponsorship-Star of Hope-donations-employees giving of their time to volunteer-Save a Life Community Heart Training Day-TMH sponsored in conjunctionw/American Red Cross & Texas Arrhythmia Institute-Adopt-a-Child/Family holiday program-employee participation-giftgiving and volunteer employee blood drive (donations of blood, plasmaand platelets)-Career Day-Talks-employee volunteering-Houston Food Bank-Texas Medical Center Food Drive-Corporatesponsorship- employees giving of their time to volunteer-Houston Area Women's Shelter-corporate sponsorship-Medical Bridges-hospital donations, corporate sponsorship andemployees volunteering their time-Habitat for Humanity-employees volunteering their time-San Jose Clinic-Art for Heart-corporate sponsorship and employeesvolunteering their time-DeBakey High School-African American Health Coalition-Texas Woman's University-The House of Amos-hospital donated supplies-Houston Museum of Natural Science-employees volunteering their timeThe Methodist Hospital operates a thriving volunteer program thatoffers members of the outside community an opportunity to participatein a number of patient-oriented activities including hospital visits;collecting and/or creating items to distribute to patients andwayfinding help for patients and families visiting the complex fordoctors' appointments and tests.Identifying Community Health IssuesThe Methodist Hospital identified its community health priorities for2012 using several methods including, but not limited to, review of theTexas Institute for Health Policy Research community data, TexasDepartment of Public Health selected health data, community healthstatus reports for Harris, Liberty, Fort Bend and Montgomery countiesand community advisory groups committee reports for nonprofit clinicsand agencies. The review indicated that chronic diseases, includingheart disease and stroke, are acute in our service area, exceeding theoverall mortality rates in Texas and peer counties.Because stroke was identified as a primary killer and health care issuefor people in our region, The Methodist Hospital System in 2006 createdthe Stride4Stroke initiative to raise awareness about stroke and toraise funds for community stroke education. A 5K Run/Walk each springallows members of the community to participate alongside hospitalemployees. The Methodist Hospital System has initiated communityeducation efforts by training and providing nurse-educators to thecommunity for public events, particularly in minority communities andfor outreach to women. The Methodist Hospital System also works toassist smaller hospitals in the community in developing their ownstroke programs and achievement of Primary Stroke Center status, whilewe offer a venue for comprehensive stroke care to those patients fromcommunity hospitals that are not equipped to offer more than basicstroke care.Another initiative has sought to increase early detection and communityawareness of cancer. The Methodist Hospital annually stages a Men'sHealth Expo for community awareness and education on men's healthissues. The Methodist Hospital also sponsors and/or coordinates a number of events spotlighting women's health issues. The Methodist Hospital sponsored the Komen Race/Walk and Pink Ribbons campaign to promote breast cancer awareness as well as to communicate the importance of early detection of breast cancer.SummaryAs a System, Methodist made significant contributions through itscommunity benefits and charity care program which have been a resourcefor patients in the community. Based on IRS cost definitions TheMethodist Hospital System provided $250.1 million in Charity Care andCertain other Community Benefits for the year ended Dec. 31, 2012. In addition, based on IRS cost definitions The Methodist Hospital System provided $172.7 million in care to Medicare, Medicare Managed Care and TRICARE program beneficiaries for the year ended Dec. 31, 2012. List of States Receiving Community Benefit Report: Part VI, Line 7: TX 1 Asian American Health Coalition - HOPE Clinic 7001 Corporate Dr Suite 120 Houston TX 77036 311756818 501(c)3 50000 Health Care Services BeringOmega Community Service Foundation 1429 Hawthorne Street Houston TX 770063711 760589592 501(c)3 335000 Dental Services Boys and Girls Country of Houston Inc 18806 Roberts Road Hockley TX 774479327 746026198 501(c)3 25000 Mental Health Services Breath of Life Children's Center Inc 21715 Kingsland Blvd Ste 103 Katy TX 77450 760626159 501(c)3 30000 Children's Clinic Casa de Esperanza de los Ninos Inc 2911 Corder St Houston TX 77054 760105306 501(c)3 40000 Mental Health Services Chinese Community Center 9800 Town Park Dr Houston TX 77036 760067885 501(c)3 30000 Multicultural Services Christ Clinic 5504 First Street Katy TX 77493 900789318 501(c)3 30000 Outpatient Clinic Christus Home Care (CHRISTUS Foundation for HealthCare) 2045 Space Park Dr 185 Houston TX 770586306 746074210 501(c)3 722381 Home Care Services Covenant House Texas 1111 Lovett Boulevard Houston TX 77006 760050882 501(c)3 35000 Homeless Services El Centro de CorazonEastwood Health Clinic 5001 Navigation Houston TX 77011 760442781 501(c)3 300000 Health Care Services Eye Care for Kids Foundation 9660 Hillcroft St 325 Houston TX 77096 760573182 501(c)3 25000 Children's Ophthalmology Services Fort Bend Family Health Center Inc 400 Austin Street Richmond TX 774694498 741951476 501(c)3 170000 Health Care Services Fort Bend Regional Council on Substance Abuse 10435 Greenbough Suite 250 Stafford TX 77477 741873333 501(c)3 35000 Preventing Substance Abuse Prog Good Neighbor Healthcare Center 190 Heights Blvd Houston TX 77007 204881280 501(c)3 171000 Health Care Services Harris County Clinical Services Inc 2801 Via Fortuna Suite 500C Austin TX 78746 432110434 501(c)3 37867 Medical Laboratory Services Healthcare for the Homeless - Houston 2505 Fannin St Houston TX 77002 760647934 501(c)3 290000 Health Care Services Houston Area Women's Center 1010 Waugh Drive Houston TX 770193996 742029166 501(c)3 65000 Mental Health Services Houston Hospice 1905 Holcombe Blvd Houston TX 77030 742092951 501(c)3 30000 Hospice Services Interface-Samaritan Counseling Centers Inc 4803 San Felipe Houston TX 77045 741734082 501(c)3 25000 Mental Health Services Interfaith Community Clinic 101 Pine Manor Drive Oak Ridge North TX 77385 752634623 501(c)3 104000 Dental/Health Care Services Krist Samaritan Center of Counseling & Ed 17555 El Camino Real Houston TX 770583031 760173176 501(c)3 65000 Mental Health Services Montrose Counseling Center Inc 401 Branard Street 2nd Floor Houston TX 77006 742050245 501(c)3 25000 Mental Health Services Matagorda Episcopal Hospital Outreach Program 101 Avenue F North Bay City TX 77414 200537948 501(c)3 50000 Dental/Health Care Services Neighborhood Centers Inc PO Box 271389 Houston TX 77277 237062976 501(c)3 20000 Community Initiatives Northwest Assistance Ministries 15555 Kuykendahl Road Houston TX 770903651 760088702 501(c)3 310000 Children's Clinic Support San Jose Clinic 301 Hamilton St Houston TX 77002 766071951 501(c)3 225000 Health Care Services Service Organization of Greater Houston 2950 50th St Lubbock TX 79413 800357284 501(c)3 1267218 Health Care Services Shalom Mobile Health Ministry 2220 Broadway Houston TX 77012 760570086 501(c)3 222000 Health Care Services The Center for Hearing & Speech 3636 W Dallas St Houston TX 77019 746003178 501(c)3 10000 Medical & Health The Center Foundation 3550 West Dallas Houston TX 77019 741272417 501(c)3 40000 Mental Health Services The Fort Bend County Women's Center 905 3rd Street Rosenberg TX 77471 760032451 501(c)3 25000 Health Services The Rose 12700 North Featherwood Drive 260 Houston TX 77034 760193812 501(c)3 60000 Cancer Screening Services The Women's Home 811 Westheimer Road Houston TX 770063917 741467811 501(c)3 90000 Mental Health Services TOMAGWA Health Care Ministries 13414 Medical Complex Dr 1 Tomball TX 773753333 760280324 501(c)3 110000 Health Care Services Vecino Health Centers 424 Hahlo Street Houston TX 770203022 760622208 501(c)3 580000 Health Care Services American Diabetes Association 2400 August Dr Ste 175 Houston TX 77057 131623888 501(c)3 5000 Medical Research American Heart Association PO Box 15186 Austin TX 78761 135613797 501(c)3 30000 Medical Research American Liver Foundation PO Box 940814 Houston TX 77094 362883000 501(c)3 5000 Health Care Services Arthritis Foundation 3120 Southwest Frwy Ste 215 Houston TX 77098 951885447 501(c)3 15000 Medical Research Astros in Action Foundation PO Box 288 Houston TX 770010288 742793078 501(c)3 10000 Community Service Bilateral US-ARAB Chamber 2323 S Shepherd Dr Ste 1150 Houston TX 77019 320099085 501(c)6 5000 Community Service Brookwood Community 1752 FM 1489 Brookshire TX 77423 741587672 501(c)3 5000 Mental Health Services Can Care of Houston 9575 Katy Freeway Ste 428 Houston TX 77024 760305357 501(c)3 15000 Medical Research Childbuilders 2425 Fountain View Dr Ste 210 Houston TX 77057 237442963 501(c)3 5000 Community Service Collaborative for Children 3800 Buffalo Speedway Ste 300 Houston TX 77098 760228065 501(c)3 5000 Education Assistance Cancer Prevention and Research Institute of TX Fdn PO Box 12631 Austin TX 78711 264551120 501(c)3 15000 Medical Research Easter Seals (Cerebral Palsy Fund) 4500 Bissonnet Suite 340 Bellaire TX 77401 741238418 501(c)3 5000 Medical Research Faith in Practice 7500 Beechnut Ste 208 Houston TX 77074 760415986 501(c)3 15000 Medical Relief overseas Golfers Against Cancer Inc 1700 Lake Kingwood Trail Kingwood TX 77345 760574871 501(c)3 25000 Medical Research Good Samaritan Foundation 5615 Kirby Drive Ste 610 Houston TX 77005 741235398 501(c)3 18500 Community Service Greater Houston Partnership 1200 Smith Street Suite 700 Houston TX 77002 760267896 501(c)6 9000 Community Service Harris County Healthcare 1310 Prairie Street Ste 1080 Houston TX 77002 204977662 501(c)3 50000 Health Care Services Houston Children's Chorus PO Box 66567 Houston TX 772666567 760286895 501(c)3 5000 Education Assistance Houston Habitat for Humanity 3750 N McCarty Houston TX 77029 760207084 501(c)3 10000 Health Care Services Houston Hispanic Chamber of Commerce 1801 Main St Ste 890 Houston TX 77002 741935123 501(c)6 5000 Community Service Houston Ronald McDonald House 1907 Holcombe Blvd Houston TX 77030 741984499 501(c)3 5000 Community Service Junior Achievment of SE Texas 2115 E Governers Circle Houston TX 77092 741153957 501(c)3 5000 Education Assistance Legacy Community Health Services PO Box 66308 Houston TX 772666308 760009637 501(c)3 10000 Health Care Services March of Dimes PO Box 932852 Atlanta GA 311932852 131846366 501(c)3 5000 Medical Research Menninger Clinic 2801 Gessner Dr Houston TX 77080 371453409 501(c)3 5000 Health Care Services Muscular Dystrophy Association 5615 Kirby Dr Suite 500 Houston TX 77005 131665552 501(c)3 7500 Medical Research One Voice Texas 5120 Woodway Drive Suite 6000 Houston TX 77056 263643763 501(c)3 6000 Community Service PAWS Houston 5201 Memorial Dr Ste 1162 Houston TX 77007 260054032 501(c)3 5000 Rehabilitative Support Rene Moawas Foundation 3231 P St NW 2nd Floor Washington DC 20007 521801228 501(c)3 5000 Medical Research Rice University 6100 Main St Houston TX 77005 741109620 501(c)3 5000 Community Service San Jose Clinic 2615 Fannin Street Houston TX 77002 760373703 501(c)3 10000 Health Care Services Shalom Health Ministry 8121 Broadway Ste 103 Houston TX 77061 760570086 501(c)3 5000 Community Service Sheltering Arms 3838 Aberdeen Way Houston TX 77025 741152601 501(c)3 5000 Community Service Susan G Komen Houston 5433 Westheimer Rd Ste 325 Houston TX 77056 760360372 501(c)3 25000 Medical Research The Health Museum 1515 Herman Drive Houston TX 770047126 746106357 501(c)3 5000 Community Service The Immunization Partnership 3015 Richmond Ave Ste 270 Houston TX 77098 760695612 501(c)3 20000 Health Care Services The Joe Neidero Foundation PO Box 2876 Scottsdale AZ 852522876 421740818 501(c)3 5036 Medical Research The Living Bank PO Box 6725 Houston TX 77265 741607315 501(c)3 5000 Donor Education The Periwinkle Foundation 3000 Richmond Suite 340 Houston TX 77098 760093914 501(c)3 5000 Community Service The Texas Lyceum 6046 Azalea Lane Dallas TX 75230 751720024 501(c)3 10000 Community Service Victory - American Cancer Society PO Box 572915 Houston TX 772572915 756198499 501(c)3 50000 Community Service Young Texans Against Cancer PO Box 22915 Houston TX 77227 760681304 501(c)3 5000 Medical Research 74 3 Scholarships for TMH Clinical Laboratory Science Program 4 9600 Continuing Education Scholarship 10 10000 Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: Prior to The Methodist Hospital's approval of a grant to a requesting organization, the following criteria must be met: (1) The requesting organization must be an organization exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code; (2) The requesting organization must provide a recognizable or demonstrable benefit to the community; (3) The mission of the requesting organization must augment the mission of The Methodist Hospital; (4) The requesting organization's mission and services should not duplicate and must not conflict with those of The Methodist Hospital. Periodic reports were reviewed to ensure the funds were used to support indigent care service and or other needs of the community. Grants to Individuals: Everyone accepted into The Methodist Hospital Clinical Laboratory Science Program receives a $2,400 scholarship. Acceptance into that program is based upon GPA, letters of recommendation, and interview scores. X X 1 1 X X X X 0 1 0 0 0 0 0 1 0 Sixteen Directors-see Methodist 91612 173223 0 0 0 10479 0 16200 0 18590 91612 218492 0 0 Ten Officers-see Methodist 1307670 0 245963 0 110532 0 28994 0 47069 0 1740228 0 0 0 Four Key Employees-see Methodist 1950405 0 646482 0 296029 0 95983 0 122859 0 3111758 0 0 0 Three Highest Pd Employees 924996 0 268924 0 104477 0 57491 0 74009 0 1429897 0 0 0 Two Former Officers-see Methodist 17824 0 921430 0 1143199 0 42388 0 28695 0 2153536 0 0 0 Supplemental Information Part III SCHEDULE J, PAGE 1, LINE 1A: Travel for Companions Methodist requires all employees including officers to provide written substantiation of all expenses related to their business travel through the provision of detailed receipts in order to receive approval from their direct superiors for reimbursement in accordance with our corporate policy on travel and other business expenses. In 2012, the President/CEO had 3 trips approved for attendance at out of state meetings where it was deemed appropriate by the Chair of our Board that the attendance of the President/CEO's spouse (and the related expenses for her travel to these meetings) was integral to conducting effective Methodist business at these meetings. Health or Social Club Dues As stipulated by the employment contract of the CEO, he is entitled to annual membership in the Houston City Club paid for by The Methodist Hospital in support of Methodist related business development activities. This amount is not included in the taxable income of the CEO as it directly relates to the hospital's tax exempt business purpose. SCHEDULE J, PAGE 1, LINE 4A: The Methodist Hospital System has a formal severance plan. Eligible employees include all staff including hourly staff up through senior vice presidents provided they work at least 20 hours per week and are not otherwise covered by a physician employment agreement. The plan only provides salary and benefits in the event an eligible employee is involuntarily terminated due to the elimination of their position or if their current position is significantly impacted by an organizational restructuring or change in requirement and a comparable position is not available within the organization. The eligible person must also sign a termination agreement in order to receive salary continuation and benefits under the plan to which they would not normally be eligible to receive under a voluntary resignation. SCHEDULE J, PAGE 1, LINE 4B: The Methodist Hospital has a Supplemental Executive Retirement Plan, a non-qualified employer funded plan. Contributions are made annually into a tax deferred account and are considered taxable upon vesting (i.e. completion of three years of vesting service). Once vested, each year's subsequent contribution is taxable within the calendar year in which the deposit was made. Account balances cannot be accessed until retirement or termination (whichever occurs first) and may be subject to non-revocable distribution options selected upon employment. Pursuant to Treasury Reg Section 1 6033-2(D)(5), The Methodist Hospital has elected to report information about contributions, gifts & grants, compensation and other information about Officers, Directors, Trustees, Key Employees, Former Employees, certain other highly paid employees, certain professional contractors and certain other contractors on a consolidated basis for all of the members of the group, including the parent organization, on the Group Return of Methodist Hospital Group, EIN 35-2410801. SCHEDULE J, PAGE 1, QUESTION 7: This organization provides variable compensation opportunity through an annual management incentive plan. Executives at the Assistant Vice President level and above may be eligible to participate. The annual incentive program is based on system and operating entity level performance in the areas of quality improvement outcomes, patient satisfaction and financial performance. In addition, a portion of the payout percentage is based on goals that are specific to the participants' management roles at the division or department level including but not limited to such metrics as operating results, quality and safety improvements, customer satisfaction measures, growth and innovation initiatives. Determination of a participant's percentage of the potential bonus payout (paid as a percent of base salary) is based on whether the individual attains agreed upon goals for their area of responsibility as determined by their immediate supervisor. A Harris County Health Facilities Development Corp 521284201 41315RGV0 2008-04-10 350000000 Refunding Bonds for Series 2006B issued 5/10/06 0 0 0 B Harris County Cultural Education Facilities Finance Corporation 760337885 414009AS9 2008-08-21 257239185 Refunding Bonds for portion of Ser. 2006A issued 4/4/06 0 0 0 C Harris County Cultural Education Facilities Finance Corporation 760337885 414009AW0 2008-08-21 692760000 Refunding Bonds for portion of Ser. 2006A issued 4/4/06 0 0 0 D Harris County Cultural Education Facilities Finance Corporation 760337885 414009BQ2 2009-06-02 149993979 Ref Ser 2006C issued 5/10/06 & Ser 2008C issued 8/21/08 0 0 0 A 2025000 350000000 350000000 1 0 1 1 B 31300000 257239185 257239185 1 0 1 1 C 286480000 692760000 692760000 1 0 1 1 D 59130000 149993979 149993979 1 0 1 1 A 0 1 1 1 1 1 0.03700 0.00000 0.03700 0 0 1 D 0 1 1 1 1 1 0.03700 0.00000 0.03700 0 0 1 A 0 1 0 0 1 0 0 0 1 B 0 1 0 0 0 0 0 0 1 C 0 1 0 0 1 0 0 0 1 D 0 1 0 0 1 0 0 0 1 A 1 B 1 C 1 D 1 Schedule K - Part II, Line 13 (Issues A through E) All outstanding bonds of the Methodist Hospital as of 12-31-12 are refunding bonds. The Methodist Hospital assumes that Line 13 does not address refunding bonds. Part III,Line 4 (Issue D) The reported private use percentage of 3.7% has been calculated on the portion of the Series 2009A-B refunding bonds that refunded the Series 2006C bonds issued in the amount of $100,000,000. The remaining amount of the Series 2009A-B bonds that refunded bonds issued prior to December 31, 2002 in the amount of $49,993,979 were excluded from determining the reported 3.7% private use calculation for 2012. Part III,Line 4 (Issue E) The reported private use percentage of 1.8% has been calculated on the portion of the Series 2009C refunding bonds that refunded the Series 2005A bonds issued in the amount of $350,000,000. The remaining amount of the Series 2009C bonds that refunded bonds issued prior to December 31, 2002 in the amount of $236,480,000 were excluded from determining the reported 1.8% private use calculation for 2012. Part III, Column B and C These columns are not completed since these are refunding bonds for bond issues prior to January 1, 2003. Had completion of Part III been required for these bonds, line 7 would have been answered "yes." A Harris County Cultural Education Facilities Finance Corporation 760337885 414009BS8 2009-06-02 586480000 Ref Ser 2005A issued 1/20/05 & Ser 2008C issued 8/21/08 0 0 0 A 586480000 586480000 1 0 1 1 A 0 1 1 1 1 1 0.01800 0.00000 0.01800 0 0 1 A 0 1 0 0 1 0 0 0 1 A 1 Form 990, Part VI, Section A, line 1 The Executive Committee consists of the officers who are members of the Board of Directors as defined in the Bylaws; the Resident Bishop; and one Physician Director. In the event of an emergency when there is insufficient time to convene the Board of Directors, the Executive Committee has and may exercise all the powers of the Board of Directors in the management of the business and affairs of the Corporation in such a manner as the Executive Committee may deem to be in the best interest of the Corporation in all cases in which specific directions have been given by the Board of Directors, provided any action which the Committee may take does not conflict with the mission of the Corporation and the policies and directives of the Board of Directors. The Chairperson of the Board of Directors, upon the calling of any Executive Committee meeting, as the first item of business, is required to state the nature of the emergency and the fact that there was insufficient time to convene the Board of Directors, which is recorded in the minutes before any action is deemed valid and on behalf of the Board of Directors. Vacancies in the membership of said Committee are filled by appointment of the Chairperson and approval by the Board of Directors. The Executive Committee meets upon the call of the Chairperson. The Committee keeps regular minutes of its proceedings and forthwith delivers by mail, facsimile, email, or in person, a written report of the same to all members of the Board of Directors. All Acts or resolutions of the Executive Committee are subject to the approval of, or revision by, the Board of Directors, but no rights of third parties are affected by any such revision. The Secretary of the Corporation acts as Secretary of the Executive Committee. Form 990, Part VI, Section A, line 7a The Texas Annual Conference of the South Central Jurisdiction of the United Methodist Church ("Conference") elects the Board of Directors. Form 990, Part VI, Section A, line 7b The Conference has the authority to approve any amendments to the following provisions of The Methodist Hospital's Bylaws or the Articles of Incorporation: i) the provision that the Conference elects all Directors of this organization from nominees recommended by the committee on Nominations of the Conference based on nominations made by the Board of Directors, (ii) the provision that a sufficient number of Directors be members of The United Methodist Church to comply with the membership requirements set forth in the Book of Discipline of The United Methodist Church, (iii) the provision that four Methodist Ministers, including the Resident Bishop be members of the Board of Directors, (iv) the provision that the Board of Directors shall consist of no more than twenty-six and no fewer than fifteen members, or (v) the provision that amend the purpose clauses (Article II and VI) of the Articles of Incorporation of the Corporation or the dissolution clause (Article VII) of the Articles of Incorporation of the Corporation. Form 990, Part VI, Section B, line 11 Management, including certain Officers, works diligently to complete the Form 990 and attached schedules ("return") in a thorough manner. The return is prepared by a Paid Preparer. Prior to filing the return, Board members are provided a copy of the Form 990 (including required schedules), and management team members are available to answer any Board Members' questions. Form 990, Part VI, Section B, line 12c All Individuals serving in a significant decision making capacity complete a Conflict of Interest (COI) questionnaire annually. A comprehensive evaluation and thorough review of all disclosures is performed by a 6-member COI Committee comprised of executives, management, and staff. The results of the COI disclosures are reported to the Audit & Compliance Committee and The Methodist Hospital Board of Directors, including the actions being taken to protect the integrity of decision-making. In addition, disclosure results are also communicated to management and to affected committee chairs to promote transparency and to ensure that actions are taken and restrictions are imposed where appropriate. Conflicted individuals may not vote or exert self-serving influence on the disclosed matter. Form 990, Part VI, Section B, line 15 This organization follows IRS regulations as it relates to establishing a rebuttable presumption of reasonableness related to total compensation of key employees and compensated officers of the organization listed below. It has established a process that includes the following elements: A separate committee (the Board Committee) comprised of independent directors meets at least annually to review, deliberate and make recommendations to the Board as it relates to any changes in total compensation including base pay, bonus awards from incentive programs or benefits and perquisites of the CEO and other officers and some key employees (typically those who report directly to the CEO). The Board Committee establishes that no member has any conflict of interest with regard to the executive compensation arrangements being approved. The Board Committee reviews and considers information provided by an external consultant engaged to ensure it has direct access to: - Compensation information paid by comparable organizations, for functionally comparable positions. - Compensation norms in the organization's immediate locale and from other independent compensation surveys by nationally recognized independent firms that represent the organization's logical peer group; - Compensation information that includes information on base salary, incentives, benefits and perquisites for total compensation comparison purposes to ensure reasonable competitive ranking. The committee relies on the comparability data to reach consensus that its recommendations to the Board regarding executive compensation changes are reasonable and in line with this organization's overall total compensation philosophy for executive pay. The deliberation and decisions of the committee are contemporaneously substantiated. The compensation for positions held by Key Employees not included in the process above, is determined based on a thorough review of numerous compensation studies conducted by nationally recognized, independent firms that provide market data for total compensation for similar positions. The compensation information considered includes information on base salary, incentives, and benefits for total compensation purposes to ensure reasonable competitive ranking in order to meet recruitment and retention objectives that secure the talent required to contribute to organizational success. Form 990, Part VI, Section C, line 19 The governing documents (except for the Articles of Incorporation, which are on file with the Secretary of the State of Texas), conflict of interest policy, and financial statements of the organization are not made available to the general public. Compensation of Officers, Directors, Key Employees, Highest Compensated: Part VII, Section A The Methodist Hospital has elected to report compensation for individual Officers, Directors, Trustees, Key Employees, Former Employees, and certain other highly paid employees on a consolidated basis on the Group Return of Methodist Hospital Group, EIN 35-2410801. This election is based upon Treasury Reg Section 1 6033-2(D)(5). As a result, The Methodist Hospital's three highest paid employees are consolidated with other entities within the Group to present five highest paid employees of the Group. Highest Paid Independent Contractors: Form 990, Part VII, Section B The Methodist Hospital has elected to report certain professional contractors and certain other contractors on a consolidated basis for all of the members of the group, including the parent organization, on the Group Return of Methodist Hospital Group,EIN 35-2410801. This election is based upon Treasury Reg Section 1 6033-2(D)(5). As a result, The Methodist Hospital's four highest paid contractors are consolidated with other entities within the Group to present five highest paid contractors of the Group. Changes in Net Assets or Fund Balances: Form 990, Part XI, line 9: Transfer from Methodist Hospital Foundation 72,665. Transfer to other Entity 1,307,023. METHODIST HOSPITAL SELF INSURANCE TRUST 6565 FANNIN HOUSTON TX 77030 741948396 INSURANCE TRUST TX 501(c)(3) Line 11a, I THE METHODIST HOSPITAL 1 SAN JACINTO FAMILY PRACTICE EDUCATION FOUNDATION 4401 GARTH ROAD BAYTOWN TX 77521 760556120 HEALTH CARE EDUCATION TX 501(c)(3) Line 11a, I SAN JACINTO METHODIST HOSPITAL 0 SAN JACINTO MEDICAL GROUP 4401 GARTH ROAD BAYTOWN TX 77521 760516915 HEALTH CARE TX 501(c)(3) Line 11a, I SAN JACINTO METHODIST HOSPITAL 0 THE METHODIST HEALTH CARE SYSTEM STD PLAN TRUST 6565 FANNIN HOUSTON TX 77030 766161019 INSURANCE TRUST TX SECTION 671 N/A THE METHODIST HOSPITAL 1 MEDVEST 1 LIMITED PARTNERSHIP 6565 FANNIN HOUSTON TX 77030 760534067 HEALTH CARE INVESTMENT TX N/A N/A 0 0 ALLIED METHODIST HOSPITAL PHYSICIANS 6565 FANNIN HOUSTON TX 77030 760551274 PHYSICIAN GROUP TX N/A C 0 MEDVEST HOLDINGS INC 6565 FANNIN HOUSTON TX 77030 760667765 HEALTHCARE INVESTMENT TX N/A C 0 MEDVEST INCORPORATED 6565 FANNIN HOUSTON TX 77030 760182470 PHARMACY TX N/A C 0 METHODIST INTERNATIONAL 6565 FANNIN HOUSTON TX 77030 300347273 HEALTHCARE CONSULTING TX N/A C 0 METHODIST WILLOWBROOK MOB CONDO ASSOCIATION 6565 FANNIN HOUSTON TX 77030 680500294 CONDO ASSOCIATION TX N/A C 0 METHODIST WILLOWBROOK MOB CONDO ASSOCIATION II 6565 FANNIN HOUSTON TX 77030 262137993 CONDO ASSOCIATION TX N/A C 0 SAN JACINTO METHODIST-ALEXANDER CONDOMINIUM ASSOCIATION 6565 FANNIN HOUSTON TX 77030 470921764 CONDO ASSOCIATION TX N/A C 0 SJMH CONDOMINIUM ASSOCIATION 6565 FANNIN HOUSTON TX 77030 412096917 CONDO ASSOCIATION TX N/A C 0 THE METHODIST HOSPITAL CONDOMINIUM ASSOCIATION 6565 FANNIN HOUSTON TX 77030 861065871 CONDO ASSOCIATION TX N/A C 0 TMH MEDICAL OFFICE BUILDINGS CONDOMINIUM ASSOCIATION 6565 FANNIN HOUSTON TX 77030 760287893 CONDO ASSOCIATION TX N/A C 0 METHODIST WEST HOUSTON MOB CONDOMINIUM ASSOC 6565 FANNIN HOUSTON TX 77030 300655123 CONDO ASSOCIATION TX N/A C 0 METHODIST DELAWARE 6565 FANNIN HOUSTON TX 77030 462417339 HEALTHCARE CONSULTING DE N/A C 0 1 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 1 Methodist Hospital Foundation L 449004 Fair Market Value Methodist Hospital Foundation R 22588145 Fair Market Value Methodist Hospital Foundation C 10102170 Fair Market Value Methodist International Q 765124 Fair Market Value Methodist International L 77004 Fair Market Value Methodist International R 50429 Fair Market Value Allied Methodist Hospital Physicians P 1214118 Fair Market Value Allied Methodist Hospital Physicians L 92004 Fair Market Value Allied Methodist Hospital Physicians R 1118795 Fair Market Value Methodist Hospital Self Insurance Trust A 8000000 Fair Market Value Methodist Hospital Self Insurance Trust B 8607299 Fair Market Value Methodist Hospital Self Insurance Trust Q 8607299 Fair Market Value TMH Physician Organization P 77085551 Fair Market Value TMH Physician Organization Q 6561575 Fair Market Value TMH Physician Organization L 1050996 Fair Market Value TMH Physician Organization A 7276348 Fair Market Value TMH Physician Organization R 84252933 Fair Market Value Medvest Incorporated L 99996 Fair Market Value Medvest Incorporated S 1177102 Fair Market Value Methodist Health Centers P 344080 Fair Market Value Methodist Health Centers Q 4234919 Fair Market Value Methodist Health Centers L 48665004 Fair Market Value Methodist Health Centers A 1193046 Fair Market Value Methodist Health Centers R 117438986 Fair Market Value Diagnostic Center Hospital P 1730769 Fair Market Value Diagnostic Center Hospital R 1251413 Fair Market Value TMH Medical Office Buildings P 6779455 Fair Market Value TMH Medical Office Buildings A 411842 Fair Market Value TMH Medical Office Buildings Q 1276362 Fair Market Value TMH Medical Office Buildings L 1231980 Fair Market Value TMH Medical Office Buildings R 11013804 Fair Market Value The Methodist Hospital Research Institute P 75187681 Fair Market Value The Methodist Hospital Research Institute Q 822841 Fair Market Value The Methodist Hospital Research Institute L 3042996 Fair Market Value The Methodist Hospital Research Institute A 14505048 Fair Market Value The Methodist Hospital Research Institute R 48342224 Fair Market Value San Jacinto Methodist Hospital Q 511489 Fair Market Value San Jacinto Methodist Hospital L 15626292 Fair Market Value San Jacinto Methodist Hospital A 530365 Fair Market Value San Jacinto Methodist Hospital S 18619988 Fair Market Value San Jacinto Methodist Hospital R 314488 Fair Market Value