2013-01-31T14:49:18-06:00 2011-12-31 WithumSmithBrown PC 465 South St Ste 200 Morristown NJ 079606497 990 2011-01-01 221487350 SOMERSET MEDICAL CENTER % CARL O'BRIEN SOME 9086852200 110 REHILL AVENUE SOMERVILLE NJ 08876 CARL O'BRIEN 2013-01-22 true 9738989494 2011 2016-02-25 16:41:14Z KENNETH W BATEMAN 110 REHILL AVENUE SOMERVILLE NJ 08876 260391039 false X WWW.SOMERSETMEDICALCENTER.COM X 1899 NJ THE MISSION AT SOMERSET MEDICAL CENTER IS TO PROVIDE COMPREHENSIVE HEALTHCARE SERVICES OF THE HIGHEST QUALITY TO OUR REGION IN A PATIENT-FIRST ENVIRONMENT. 19 16 2797 845 325751 -688327 1057148 4371178 254387160 251370618 4387344 2481879 1942148 2167364 261773800 260391039 0 303726 0 0 136022280 136146403 0 0 0 124579333 128461765 260601613 264911894 1172187 -4520855 240715442 229541205 182393238 183752729 58322204 45788476 X THE MISSION AT SOMERSET MEDICAL CENTER IS TO PROVIDE COMPREHENSIVE HEALTHCARE SERVICES OF THE HIGHEST QUALITY TO OUR REGION IN A PATIENT-FIRST ENVIRONMENT. THE ORGANIZATION PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO INDIVIDUALS REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. PLEASE REFER TO THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT INCLUDED IN SCHEDULE O. false false 15248568 0 11859802 SOMERSET MEDICAL CENTER'S OPERATING ROOM SUPPORTS BOTH INPATIENT AND OUTPATIENT PROCEDURES AND PERFORMS MORE THAN 7,500 SURGERIES EACH YEAR. THERE ARE 14 OPERATING SUITES. ALL FEATURE HIGH DEFINITION DIGITAL CAMERAS AND THE LATEST AUDIO-VISUAL TECHNOLOGIES USED FOR CONVENTIONAL, LAPAROSCOPIC AND ROBOTIC SURGERIES. OUR OR NURSES ARE CERTIFIED IN THEIR RESPECTIVE SPECIALTIES AND OFFER THE BEST CARE AND EXPERTISE IN THEIR FIELD. IN 2008 A CLINICAL TRIAL WAS LAUNCHED FOR PATIENTS WITH SPINAL STENOSIS. THE TRIAL OFFERS, FOR PATIENTS WHO FIT THE CRITERIA, AN OPPORTUNITY FOR SURGERY THAT COULD IMPROVE THEIR QUALITY OF LIFE AND MOBILITY. OTHER SURGICAL ENHANCEMENTS INCLUDED NAVIGATION TECHNOLOGY FOR ORTHOPEDIC AND NEUROLOGICAL CASES, WHICH PROMOTE MORE ACCURACY AND PREVENT DAMAGE TO SURROUNDING TISSUES. THE MEDICAL CENTER ALSO OFFERS THE LATEST "STATE-OF-THE-ART" TECHNOLOGY FOR SINUS SURGERY. IN ADDITION, THE ORTHOPEDICS DEPARTMENT WAS HONORED AS THE RECIPIENT OF THE 2009 AND 2010 HEALTHGRADES ORTHOPEDIC EXCELLENCE AWARD, WHICH RANKED ORTHOPEDIC SURGERY SERVICES AMONG THE TOP 5% OF HOSPITALS IN THE NATION FOR OVERALL ORTHOPEDIC SURGERY. THE JOINT SURGERY INSTITUTE AT SMC IS UNDERWAY AND OFFERS COMPREHENSIVE CARE TO PATIENTS LOOKING TO HAVE JOINT REPLACEMENT SURGERY. THE PROGRAM OFFERS CARE, EDUCATION AND SERVICES FOR THE PATIENT AND THEIR FAMILIES FROM THE PRE-OPERATIVE ADMISSION PHASE ALL THE WAY THROUGH TO DISCHARGE AND REHABILITATION. THE ROBOTICS PROGRAM AT SMC HAS THE LATEST IN MIS ROBOTIC TECHNOLOGY. THE SPECIALLY TRAINED OR STAFF OF THE ROBOTIC TEAM BEGAN CARING FOR THEIR FIRST PATIENTS IN THE BEGINNING OF JUNE 2010. THE SMC GI CENTER IS ALSO STAFFED BY SPECIALLY TRAINED NURSES WHO ARE CERTIFIED IN GASTROENTEROLOGY AND ARE PART OF A COLLABORATIVE PERIOPERATIVE TEAM WORKING WITH THE PHYSICIANS TO MAKE THE PATIENT'S EXPERIENCE A SAFE AND PLEASANT VISIT. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT FOR ADDITIONAL INFORMATION. SOMERSET MEDICAL CENTER HAS RECEIVED THE JOINT COMMISSION'S GOLD SEAL OF APPROVAL FOR TOTAL KNEE AND TOTAL HIP REPLACEMENT SURGERY. THE MEDICAL CENTER HAS ALSO BEEN HONORED WITH THE 2011 HEALTHGRADES ORTHOPEDIC SURGERY EXCELLENCE AWARD, RANKING IN THE TOP 10 PERCENT IN THE NATION FOR ORTHOPEDIC CARE. 2788948 0 4613282 The Somerset Medical Center Cardiac Catheterization Laboratory Department provides twenty-four hour/seven day a week services and performs invasive cardiovascular and radiological diagnostic and therapeutic procedures to meet the needs of the community. All patients referred to the Cardiac Cath Lab Procedures will have their procedure performed regardless of race, ethnicity, religion, national origin, citizenship, age, sex, pre-existing medical condition, physical or mental handicap, insurance status, economic status or ability to pay for medical services. The physician and staff strive for optimal patient safety and optimal data collection within the framework of the procedures performed. The Cardiac Catheterization Laboratory cooperateS with other departments/care settings of Somerset Medical Center and with members of the outside medical community in providing quality patient care. In general, adult patients (18 years and older) with clinical indications for procedures approved are to be candidates for admission. Adult procedures which may be done in the Cardiac Catheterization Laboratory include, but are not limited to the following: - Right heart catheterization - Left heart catheterization - Angiogram of coronary arteries and bypass grafts - Percutaneous Coronary Intervention (PCI) - Pericardiocentesis - Intra Coronary and Peripheral administration of thrombolytic agents - Temporary and Permanent Pacemaker insertion - Intra-aortic balloon pump insertion (IABP) - Peripheral angiograms and interventional procedures - Mobile Nurse PICC Team Cardiac Catheterization Laboratory cases are scheduled from 6:30 AM until 5:30 PM Monday through Friday. Emergency service is provided seven days a week, 24 hours a day by on-call staff. The Lab performs over 1,500 procedures annually. In 2011 93% of all patients experiencing an ST elevation myocardial infarction (Heart Attack) received an angioplasty in under 90 minutes. Also in 2011 Patient satisfaction scores were in the 99% for 3 quarters. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT FOR ADDITIONAL INFORMATION. 1067415 0 1864180 THE MATERNAL CHILD HEALTH (MCH) DEPARTMENT AT SOMERSET MEDICAL CENTER IS COMMITTED TO PROMOTING THE TOTAL WELLBEING OF THE FAMILY UNIT BEFORE, DURING AND AFTER DELIVERY. OUR LEVEL II NURSERY ALSO CAN PROVIDE CARE TO OUR INFANTS WHO REQUIRE CLOSE OBSERVATION, MONITORING AND INTERVENTIONS. THE MCH CONSISTS OF SEVERAL UNITS THAT COMPLIMENT DIFFERENT AREAS OF CARE FOR OUR CHILDBEARING FAMILIES AND THEIR LOVED ONES. OUR MATERNITY COMMUNITY EDUCATION DEPARTMENT OFFERS A WIDE VARIETY OF CHILDBIRTH, BREASTFEEDING, PARENTING, SIBLING AND GRANDPARENT CLASSES. LABOR AND DELIVERY PROVIDES EXPERT CLINICAL SUPPORT FOR OUR LABORING CLIENTS WITH A VARIETY OF DIAGNOSIS AND CONDITIONS ADHERING TO CRITERIA FOR INTERMEDIATE CARE. WE OFFER 24 HOUR IN HOUSE PHYSICIAN COVERAGE FOR OBSTETRICS, NEONATOLOGY AND ANESTHESIA. POST-PARTUM CARE IS PROVIDED IN OUR PRIVATE ROOMS. MCH HAS MET OR EXCEEDED ALL QUALITY BENCHMARKS FOR FALLS, INFECTION, AND CUSTOMER SATISFACTION. OUR DEPARTMENT ALSO HAS 65% OF NURSES NATIONALLY CERTIFIED IN THEIR SPECIALTY. THE CLINICAL KNOWLEDGE OF BEST PRACTICE AND THE COLLABORATIVE EFFORT WITH OUR PHYSICIANS DRAMATICALLY REDUCED ELECTIVE INDUCTIONS BELOW 39 WEEKS. THIS REDUCTION WAS ACKNOWLEDGED BY THE LEAP FROG ORGANIZATION AND CONTRIBUTED TO SOMERSET MEDICAL CENTER'S LEAP FROG DESIGNATION. MATERNAL CHILD HEALTH WAS RECOGNIZED IN 2012 AS DEPARTMENT OF THE YEAR FOR THEIR COMMITMENT TO PROFESSIONAL EXCELLENCE, TEAM WORK AND CUSTOMER SATISFACTION. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT FOR ADDITIONAL INFORMATION. 219346144 303726 233359105 238451075 true true false true false false false false true true false true false true true true true false false false false false false false false true true true false true true false false false false false false false false true false false false false false false true false false false false true 398 0 true 2797 true true true false false false false false false false false false X 19 16 false false false false true true true true true false false true true true true true true true true false NJ X CARL O'BRIEN 9085952682 110 REHILL AVENUE SOMERVILLE NJ 08876 X JAMES N HESTON 5.0 X X 0 0 0 PAUL V STAHLIN 5.0 X X 0 0 0 GUY J TORSILIERI 3.0 X X 0 0 0 KENNETH W BATEMAN 55.0 X X 781629 0 109543 CHARLES BROWN 1.0 X 0 0 0 BETTY CATANESE MD 3.0 X 31062 0 0 JERRY DURSO 1.0 X 0 0 0 ROBERT FALCONE MD 1.0 X 0 0 0 RAYMOND FINO 3.0 X 0 0 0 ANTHONY FRISOLI MD 1.0 X 0 0 0 STEVE KALAFER 1.0 X 0 0 0 MARK KOLB 3.0 X 0 0 0 JOANN MENDLES 3.0 X 0 0 0 JAMES T RICK JR 3.0 X 0 0 0 WILLIAM RUDA MD 1.0 X 0 0 0 BARBARA SCHWARTZ PHD 1.0 X 0 0 0 WILLIAM M SUGARMANN MD 1.0 X 2126 0 0 RICH WINTERSTELLER 1.0 X 0 0 0 ROGER YANG MD 1.0 X 0 0 0 CARL OBRIEN 55.0 X 372193 0 20182 ELISA IMPORTICO 55.0 X 0 0 0 DAVID DYER 55.0 X 362501 0 32264 PAUL HUEGEL 55.0 X 398381 0 34012 MAUREEN SCHNEIDER 55.0 X 429872 0 9168 GLENN MCCREESH 55.0 X 427798 0 34113 MARY ANN BROSS 55.0 X 290287 0 30734 ROBERT SENSKA III 55.0 X 288361 0 11910 KATHLEEN CUMMINS 55.0 X 254068 0 8523 MARY BOLLWAGE 55.0 X 234319 0 19366 VICTORIA ALLEN 55.0 X 218755 0 13152 STEPHEN MINOGUE 55.0 X 213792 0 6391 JOHN BUCEK MD 55.0 X 263991 0 35897 CHIKEZIE J AGUH MD 55.0 X 295264 0 28752 EVA B BESSERMAN MD 55.0 X 266135 0 32545 LLOYD DAVIS MD 55.0 X 261246 0 27863 AKHTAR HOSSAIN MD 55.0 X 251882 0 16798 PATRICK ROWAN MD 55.0 X 210075 0 31705 5853737 0 502918 197 false true false SILLS CUMMIS GROSS 1 RIVERFRONT PLAZA NEWARK NJ 07102 LEGAL 1069604 HCSC LAUNDRY PO BOX 25092 LEHIGH VALLEY PA 18002 LAUNDRY/LINEN 948451 MAYO MEDICAL LABORATORIES PO BOX 9146 MINNEAPOLIS MN 55480 LABORATORY 850382 APOLLO HEALTH STREET 2 BRIGHTON ROAD SUITE 300 CLIFTON NJ 07012 COLLECTION 745574 GENOVA BURNS GIANTOMASI 494 BROAD STREET NEWARK NJ 07102 LEGAL 719949 53 90000 4281178 4371178 NET PATIENT SERVICE REVENUE 541900 249318394 249318394 OTHER HEALTHCARE RELATED REVENUE 541900 2052224 2052224 251370618 2133796 2133796 7255 7255 0 511230 511230 511230 511230 340828 340828 340828 340828 0 0 0 CAFETERIA 722210 914812 914812 PHYSICIAN ANSWERING SERVICE 561000 325751 325751 SECURITY 900099 213648 213648 201923 201923 1656134 260391039 251370618 325751 4323492 303726 303726 0 0 0 4934389 4440951 493438 0 0 107989687 97190717 10798970 2435480 2191932 243548 11346623 10211960 1134663 9440224 8496202 944022 499632 449669 49963 1300259 1170233 130026 197000 177300 19700 25105 22595 2510 0 62352 56117 6235 9821607 8839446 982161 1544372 1389935 154437 28177516 25359764 2817752 590562 531506 59056 0 444188 399769 44419 236267 212640 23627 0 199466 179519 19947 4879316 4391384 487932 0 13009821 11708839 1300982 2548387 2293548 254839 MEDICAL SUPPLIES 24727038 22254334 2472704 0 PROV FOR DOUBTFUL COLLECTIONS 11511671 10360504 1151167 0 REPAIRS AND MAINTENANCE 9865298 8878768 986530 0 CONTRACTED SERVICES 5874020 5286618 587402 0 12947888 11653099 1294789 264911894 238451075 26460819 0 5045 5045 6872214 5833088 0 0 33809000 28137568 0 0 0 0 5166104 2459911 3560792 3578760 1380460 1584822 276974439 143742351 135293616 133232088 0 0 0 0 51406407 49114662 1446307 3189525 1775497 2405736 240715442 229541205 36623930 34019994 0 0 5290774 4949946 108451948 106615497 0 0 0 0 1876284 958573 0 0 30150302 37208719 182393238 183752729 X 54643137 41009801 2539200 3638808 1139867 1139867 58322204 45788476 240715442 229541205 X -4520855 -8012873 X X false true true X true true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 25105 25105 25105 25105 264886789 267726527 264911894 267751632 1000000 1000000 250000 250000 1000000 1000000 1000000 1000000 4000000 6000000 52000 194678 14134 25105 285917 250000 250000 250000 250000 1000000 1500000 3679067 969553 787270 657215 4778675 4087814 1798795 -920605 1286937 3679067 4018605 3045098 162277 3138166 4087814 3607117 3119689 -334396 2373805 4018605 0.00000 0.23850 0.76150 false false 1347062 1347062 145810048 48373606 97436442 1767171 231334 1535837 124035527 95137411 28898116 4014631 0 4014631 133232088 TAX-EXEMPT ORGANIZATION 2909397 F LIMITED USE 11443532 F LIMITED USE 2068491 F CORPORATE BONDS; LIMITED USE 853307 F CASH AND CASH EQUIVALENTS 3755113 F U.S. GOVERNMENT OBLIGATIONS 101279 F CORPORATE BONDS 260216 F MUTUAL FUNDS 27723327 F 49114662 0 OTHER LIABILITIES 3838003 SETTLEMENTS; CURRENT 984922 SETTLEMENTS; NON-CURRENT 4245274 ACCRUED PENSION LIABILITY 28140520 37208719 260391039 264911894 -4520855 -8982426 -8982426 -13503281 260391039 260391039 969553 969553 261360592 264911894 264911894 264911894 ENDOWMENT FUNDS SCHEDULE D, PART V, QUESTION 4 RESTRICTED FUNDS ARE USED TO SUPPORT THE CHARITABLE ACTIVITIES AND PROGRAMS OF THE ORGANIZATION AND ITS AFFILIATES. FIN 48 AUDITED FINANCIAL STATEMENT FOOTNOTE DISCLOSURE SCHEDULE D; PART X THE ORGANIZATION IS AN AFFILIATE WITHIN SOMERSET HEALTH CARE CORPORATION AND AFFILIATES ("SYSTEM"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. AN INDEPENDENT CPA FIRM AUDITED THE FINANCIAL STATEMENTS OF SOMERSET MEDICAL CENTER FOR THE YEARS ENDED DECEMBER 31, 2011 AND DECEMBER 31, 2010; RESPECTIVELY. THE FOLLOWING FOOTNOTE IS INCLUDED IN THE ORGANIZATION'S 2011 AUDITED FINANCIAL STATEMENTS THAT REPORTS THE ORGANIZATION'S LIABILITY FOR UNCERTAIN TAX POSITIONS UNDER FIN 48: THE MEDICAL CENTER FOLLOWS THE PROVISIONS OF THE AUTHORITATIVE GUIDANCE ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES. THE GUIDANCE CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN A COMPANY'S FINANCIAL STATEMENTS AND PRESCRIBES A RECOGNITION THRESHOLD OF MORE-LIKELY-THAN-NOT TO BE SUSTAINED UPON EXAMINATION BY THE APPROPRIATE TAXING AUTHORITY. MEASUREMENT OF THE TAX UNCERTAINTY OCCURS IF THE RECOGNITION THRESHOLD HAS BEEN MET. THE GUIDANCE ALSO PROVIDES GUIDANCE ON DE-RECOGNITION, CLASSIFICATION, INTEREST AND PENALTIES, ACCOUNTING IN INTERIM PERIODS, AND DISCLOSURE. MANAGEMENT HAS DETERMINED THAT THE ADOPTION OF THE GUIDANCE DID NOT HAVE A MATERIAL IMPACT ON THE FINANCIAL STATEMENTS. OTHER CHANGES IN NET ASSETS SCHEDULE D, PART XI; LINE 8 OTHER CHANGES IN FUND BALANCE: - CHANGE IN NET UNREALIZED GAINS AND LOSSES ON INVESTMENTS OTHER THAN TRADING SECURITIES - ($147,601) - PENSION LIABILITY ADJUSTMENT - ($9,181,264) - NET ASSETS RELEASED FROM RESTRICTIONS USED FOR PROPERTY AND EQUIPMENT - $216,384 - CHANGE IN INTEREST IN NET ASSETS OF SOMERSET MEDICAL CENTER FOUNDATION, INC.; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION - $787,270 - NET ASSETS RELEASED FROM TEMPORARY RESTRICTIONS FOR USE IN OPERATIONS - ($440,831) - NET ASSETS RELEASED FROM TEMPORARY RESTRICTIONS FOR PROPERTY AND EQUIPMENT - ($216,384) RECONCILIATION OF REVENUE TO AUDITED FINANCIAL STATEMENTS SCHEDULE D, PART XII; LINE 4B OTHER AMOUNTS INCLUDED ON FORM 990, PART VIII, LINE 12 BUT NOT ON LINE 1 INCLUDE: TEMPORARILY RESTRICTED CONTRIBUTIONS - $969,553 true true true X true X true false true true 12360815 3520000 8840815 0.03490 7214997 3888480 3326517 0.01310 19575812 7408480 12167332 0.04800 396734 87223 309511 0.00120 2117438 1072632 1044806 0.00410 659322 415935 243387 0.00100 279641 75686 203956 0.00080 3453135 1651476 1801660 0.00710 23028947 9059956 13968992 0.05510 true 11511671 1807210 72664615 73306834 -642219 X true true 1 1 SOMERSET MEDICAL CENTER

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PHYSICAL THERAPY; OCCUPATIONAL THERAPY & WELLNESS TRAINING SMC SPORTS INSTITUTE - PRINCETON

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PHYSICAL THERAPY; OCCUPATIONAL THERAPY SMC SPORTS INSTITUTE - HILLSBOROUGH

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PHYSICAL THERAPY; OCCUPATIONAL THERAPY ELIGIBILITY FOR DISCOUNTED CARE SCHEDULE H, PART I; QUESTION 3C THE INCOME BASED CRITERIA USED TO DETERMINE ELIGIBILITY IS PER NEW JERSEY ADMINISTRATIVE CODE 10:52 SUB CHAPTERS 11, 12 AND 13, AND BASED UPON THE 2011 FEDERAL POVERTY GUIDELINES ("FPG") (DEPARTMENT OF HEALTH AND SENIOR SERVICES). FPG ARE INCLUDED IN THE CRITERIA FOR DETERMINING ELIGIBILITY FOR CHARITY AND DISCOUNTED CARE. COMMUNITY BENEFIT REPORT SCHEDULE H, PART I; QUESTION 6A NOT APPLICABLE. SUBSIDIZED HEALTH SERVICES SCHEDULE H, PART I; QUESTION 7G NO COSTS RELATING TO SUBSIDIZED HEALTHCARE SERVICES ARE ATTRIBUTABLE TO ANY PHYSICIAN CLINICS. PERCENT OF TOTAL EXPENSE SCHEDULE H, PART I; QUESTION 7, COLUMN (F) THE BAD DEBT EXPENSE INCLUDED ON FORM 990, PART IX, LINE 25, COLUMN (A), BUT SUBTRACTED FOR PURPOSES OF CALCULATING THE PERCENTAGE IN THIS COLUMN IS $11,511,671. CHARITY CARE AND CERTAIN OTHER COMMUNITY BENEFIT COST SCHEDULE H, PART I; QUESTION 7 WORKSHEET 2 WAS USED FOR THE COST TO CHARGE RATIO. COMMUNITY BUILDING ACTIVITIES SCHEDULE H, PART II COMMUNITY BUILDING ACTIVITIES UNDERTAKEN BY THIS ORGANIZATION IMPROVE THE MEDICAL AND SOCIOECONOMIC WELL-BEING OF THE COMMUNITIES IN OUR CARE. THIS IS ACCOMPLISHED THROUGH SERVICE ON STATE AND REGIONAL ADVOCACY COMMITTEES AND BOARDS, VOLUNTEERISM WITH LOCAL COMMUNITY-BASED NON-PROFIT ADVOCACY GROUPS, AND PARTICIPATION IN CONFERENCES AND OTHER EDUCATIONAL ACTIVITIES TO PROMOTE UNDERSTANDING OF THE ROOT CAUSES OF HEALTH CONCERNS. THIS ORGANIZATION PROVIDES EDUCATIONAL MATERIALS, CONDUCTS COMMUNITY HEALTH FAIRS AND HOLDS HEALTH EDUCATION SEMINARS AND OUTREACH SESSIONS FOR ITS PATIENTS AND FOR COMMUNITY PROVIDERS. PRESENTATIONS ARE PROVIDED BY PHYSICIANS, NURSES AND OTHER HEALTHCARE PROFESSIONALS. BAD DEBT EXPENSE SCHEDULE H, PART III; QUESTION 4 BAD DEBT EXPENSE WAS CALCULATED USING THE PROVIDER'S BAD DEBT EXPENSE FROM FINANCIAL STATEMENT, NET OF ACCOUNTS WRITTEN OFF AT CHARGES. THE ORGANIZATION PREPARES AND ISSUES AUDITED FINANCIAL STATEMENTS. THE ATTACHED TEXT WAS OBTAINED FROM THE FOOTNOTES TO THE AUDITED FINANCIAL STATEMENTS OF SOMERSET MEDICAL CENTER. ACCOUNTS RECEIVABLE, PATIENTS PATIENT ACCOUNTS RECEIVABLE RESULT FROM THE HEALTH CARE SERVICES PROVIDED BY THE MEDICAL CENTER. ADDITIONS TO THE ALLOWANCE FOR DOUBTFUL COLLECTIONS RESULT FROM THE PROVISION FOR DOUBTFUL COLLECTIONS. ACCOUNTS WRITTEN OFF AS UNCOLLECTIBLE ARE DEDUCTED FROM THE ALLOWANCE FOR DOUBTFUL COLLECTIONS. THE AMOUNT OF THE ALLOWANCE FOR DOUBTFUL COLLECTIONS IS BASED UPON MANAGEMENT'S ASSESSMENT OF HISTORICAL AND EXPECTED NET COLLECTIONS, BUSINESS AND ECONOMIC CONDITIONS, TRENDS IN MEDICARE AND MEDICAID HEALTH CARE COVERAGE AND OTHER COLLECTION INDICATORS. SEE NOTE 5 FOR ADDITIONAL INFORMATION RELATIVE TO THIRD PARTY PAYOR PROGRAMS. CHARITY CARE THE MEDICAL CENTER PROVIDES CARE TO PATIENTS WHO MEET CERTAIN CRITERIA UNDER ITS PATIENT FINANCIAL ASSISTANCE POLICY WITHOUT CHARGE OR AT AMOUNTS LESS THAN ITS ESTABLISHED RATES. BECAUSE THE MEDICAL CENTER DOES NOT PURSUE COLLECTIONS OF AMOUNTS DETERMINED TO QUALIFY AS CHARITY CARE, THEY ARE NOT REPORTED AS PATIENT SERVICE REVENUES. THE MEDICAL CENTER MAINTAINS RECORDS TO IDENTIFY AND MONITOR THE LEVEL OF CHARITY CARE IT PROVIDES. THE ESTIMATED COSTS OF PROVIDING CHARITY CARE ARE BASED UPON THE DIRECT AND INDIRECT COSTS IDENTIFIED WITH THE SPECIFIC CHARITY CARE SERVICES PROVIDED. THE LEVEL OF CHARITY CARE PROVIDED BY THE MEDICAL CENTER AMOUNTED TO APPROXIMATELY $9,168,000 IN 2011 AND $11,286,000 IN 2010. THE NEW JERSEY HEALTH CARE SUBSIDY FUND WAS ESTABLISHED FOR VARIOUS PURPOSES, INCLUDING THE DISTRIBUTION OF CHARITY CARE PAYMENTS TO HOSPITALS STATEWIDE. NET PATIENT SERVICE REVENUES INCLUDE SUBSIDY AMOUNTS OF APPROXIMATELY $3,520,000 IN 2011 AND $2,598,000 IN 2010. COMMUNITY BENEFIT SCHEDULE H, PART III, SECTION B; QUESTION 8 MEDICARE COSTS WERE DERIVED FROM THE 2011 MEDICARE COST REPORT. THE ORGANIZATION BELIEVES THAT MEDICARE UNDERPAYMENTS (SHORTFALL) AND BAD DEBT ARE COMMUNITY BENEFIT AND ASSOCIATED COSTS SHOULD BE INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. THE ORGANIZATION'S POSITION IS THAT MEDICARE UNDERPAYMENTS (SHORTFALL) AND BAD DEBT ARE COMMUNITY BENEFIT AND ASSOCIATED COSTS SHOULD BE INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. AS OUTLINED MORE FULLY BELOW THE ORGANIZATION BELIEVES THAT THESE SERVICES AND RELATED COSTS PROMOTE THE HEALTH OF THE COMMUNITY AS A WHOLE AND ARE RENDERED IN CONJUNCTION WITH THE ORGANIZATION'S CHARITABLE TAX-EXEMPT PURPOSES AND MISSION IN PROVIDING MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUAL'S IN A NON-DISCRIMINATORY MANNER WITHOUT REGARD TO RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY AND CONSISTENT WITH THE COMMUNITY BENEFIT STANDARD PROMULGATED BY THE IRS. THE COMMUNITY BENEFIT STANDARD IS THE CURRENT STANDARD FOR A HOSPITAL FOR RECOGNITION AS A TAX-EXEMPT AND CHARITABLE ORGANIZATION UNDER INTERNAL REVENUE CODE ("IRC") 501(C)(3). THE ORGANIZATION IS RECOGNIZED AS A TAX-EXEMPT ENTITY AND CHARITABLE ORGANIZATION UNDER 501(C)(3) OF THE IRC. ALTHOUGH THERE IS NO DEFINITION IN THE TAX CODE FOR THE TERM "CHARITABLE" A REGULATION PROMULGATED BY THE DEPARTMENT OF THE TREASURY PROVIDES SOME GUIDANCE AND STATES THAT "[T]HE TERM CHARITABLE IS USED IN SECTION 501(C)(3) IN ITS GENERALLY ACCEPTED LEGAL SENSE," AND PROVIDES EXAMPLES OF CHARITABLE PURPOSES, INCLUDING THE RELIEF OF THE POOR OR UNPRIVILEGED; THE PROMOTION OF SOCIAL WELFARE; AND THE ADVANCEMENT OF EDUCATION, RELIGION, AND SCIENCE. NOTE IT DOES NOT EXPLICITLY ADDRESS THE ACTIVITIES OF HOSPITALS. IN THE ABSENCE OF EXPLICIT STATUTORY OR REGULATORY REQUIREMENTS APPLYING THE TERM "CHARITABLE" TO HOSPITALS, IT HAS BEEN LEFT TO THE IRS TO DETERMINE THE CRITERIA HOSPITALS MUST MEET TO QUALIFY AS IRC 501(C)(3) CHARITABLE ORGANIZATIONS. THE ORIGINAL STANDARD WAS KNOWN AS THE CHARITY CARE STANDARD. THIS STANDARD WAS REPLACED BY THE IRS WITH THE COMMUNITY BENEFIT STANDARD WHICH IS THE CURRENT STANDARD. CHARITY CARE STANDARD IN 1956, THE IRS ISSUED REVENUE RULING 56-185, WHICH ADDRESSED THE REQUIREMENTS HOSPITALS NEEDED TO MEET IN ORDER TO QUALIFY FOR IRC 501(C)(3) STATUS. ONE OF THESE REQUIREMENTS IS KNOWN AS THE "CHARITY CARE STANDARD." UNDER THE STANDARD, A HOSPITAL HAD TO PROVIDE, TO THE EXTENT OF ITS FINANCIAL ABILITY, FREE OR REDUCED-COST CARE TO PATIENTS UNABLE TO PAY FOR IT. A HOSPITAL THAT EXPECTED FULL PAYMENT DID NOT, ACCORDING TO THE RULING, PROVIDE CHARITY CARE BASED ON THE FACT THAT SOME PATIENTS ULTIMATELY FAILED TO PAY. THE RULING EMPHASIZED THAT A LOW LEVEL OF CHARITY CARE DID NOT NECESSARILY MEAN THAT A HOSPITAL HAD FAILED TO MEET THE REQUIREMENT SINCE THAT LEVEL COULD REFLECT ITS FINANCIAL ABILITY TO PROVIDE SUCH CARE. THE RULING ALSO NOTED THAT PUBLICLY SUPPORTED COMMUNITY HOSPITALS WOULD NORMALLY QUALIFY AS CHARITABLE ORGANIZATIONS BECAUSE THEY SERVE THE ENTIRE COMMUNITY, AND A LOW LEVEL OF CHARITY CARE WOULD NOT AFFECT A HOSPITAL'S EXEMPT STATUS IF IT WAS DUE TO THE SURROUNDING COMMUNITY'S LACK OF CHARITABLE DEMANDS. COMMUNITY BENEFIT STANDARD IN 1969, THE IRS ISSUED REVENUE RULING 69-545, WHICH "REMOVE[D]" FROM REVENUE RULING 56-185 "THE REQUIREMENTS RELATING TO CARING FOR PATIENTS WITHOUT CHARGE OR AT RATES BELOW COST." UNDER THE STANDARD DEVELOPED IN REVENUE RULING 69-545, WHICH IS KNOWN AS THE "COMMUNITY BENEFIT STANDARD," HOSPITALS ARE JUDGED ON WHETHER THEY PROMOTE THE HEALTH OF A BROAD CLASS OF INDIVIDUALS IN THE COMMUNITY. THE RULING INVOLVED A HOSPITAL THAT ONLY ADMITTED INDIVIDUALS WHO COULD PAY FOR THE SERVICES (BY THEMSELVES, PRIVATE INSURANCE, OR PUBLIC PROGRAMS SUCH AS MEDICARE), BUT OPERATED A FULL-TIME EMERGENCY ROOM THAT WAS OPEN TO EVERYONE. THE IRS RULED THAT THE HOSPITAL QUALIFIED AS A CHARITABLE ORGANIZATION BECAUSE IT PROMOTED THE HEALTH OF PEOPLE IN ITS COMMUNITY. THE IRS REASONED THAT BECAUSE THE PROMOTION OF HEALTH WAS A CHARITABLE PURPOSE ACCORDING TO THE GENERAL LAW OF CHARITY, IT FELL WITHIN THE "GENERALLY ACCEPTED LEGAL SENSE" OF THE TERM "CHARITABLE," AS REQUIRED BY TREAS. REG. 1.501(C)(3)-1(D)(2). THE IRS RULING STATED THAT THE PROMOTION OF HEALTH, LIKE THE RELIEF OF POVERTY AND THE ADVANCEMENT OF EDUCATION AND RELIGION, IS ONE OF THE PURPOSES IN THE GENERAL LAW OF CHARITY THAT IS DEEMED BENEFICIAL TO THE COMMUNITY AS A WHOLE EVEN THOUGH THE CLASS OF BENEFICIARIES ELIGIBLE TO RECEIVE A DIRECT BENEFIT FROM ITS ACTIVITIES DOES NOT INCLUDE ALL MEMBERS OF THE COMMUNITY, SUCH AS INDIGENT MEMBERS OF THE COMMUNITY, PROVIDED THAT THE CLASS IS NOT SO SMALL THAT ITS RELIEF IS NOT OF BENEFIT TO THE COMMUNITY. THE IRS CONCLUDED THAT THE HOSPITAL WAS "PROMOTING THE HEALTH OF A CLASS OF PERSONS THAT IS BROAD ENOUGH TO BENEFIT THE COMMUNITY" BECAUSE ITS EMERGENCY ROOM WAS OPEN TO ALL AND IT PROVIDED CARE TO EVERYONE WHO COULD PAY, WHETHER DIRECTLY OR THROUGH THIRD-PARTY REIMBURSEMENT. OTHER CHARACTERISTICS OF THE HOSPITAL THAT THE IRS HIGHLIGHTED INCLUDED THE FOLLOWING: ITS SURPLUS FUNDS WERE USED TO IMPROVE PATIENT CARE, EXPAND HOSPITAL FACILITIES, AND ADVANCE MEDICAL TRAINING, EDUCATION, AND RESEARCH; IT WAS CONTROLLED BY A BOARD OF TRUSTEES THAT CONSISTED OF INDEPENDENT CIVIC LEADERS; AND HOSPITAL MEDICAL STAFF PRIVILEGES WERE AVAILABLE TO ALL QUALIFIED PHYSICIANS. THE ORGANIZATION BELIEVES THAT MEDICARE UNDERPAYMENTS AND BAD DEBT ARE COMMUNITY BENEFIT AND ASSOCIATED COSTS SHOULD BE INCLUDBALE ON THE FORM 990, SCHEUDLE H, PART I. THE AMERICAN HOSPITAL ASSOCIATION'S ("AHA") POSITION IS THAT MEDICARE UNDERPAYMENTS (SHORTFALL) AND BAD DEBT ARE COMMUNITY BENEFIT AND THUS INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. THIS ORGANIZATION AGREES WITH THE AHA POSITION. AS OUTLINED IN THE AHA LETTER TO THE IRS DATED AUGUST 21, 2007 WITH RESPECT TO THE FIRST PUBLISHED DRAFT OF THE NEW FORM 990 AND SCHEDULE H, THE AHA FELT THAT THE IRS SHOULD INCORPORATE THE FULL VALUE OF THE COMMUNITY BENEFIT THAT HOSPITALS PROVIDE BY COUNTING MEDICARE UNDERPAYMENTS (SHORTFALL) AS QUANTIFIABLE COMMUNITY BENEFIT FOR THE FOLLOWING REASONS: - PROVIDING CARE FOR THE ELDERLY AND SERVING MEDICARE PATIENTS IS AN ESSENTIAL PART OF THE COMMUNITY BENEFIT STANDARD. - MEDICARE, LIKE MEDICAID, DOES NOT PAY THE FULL COST OF CARE. RECENTLY, MEDICARE REIMBURSES HOSPITALS ONLY 92 CENTS FOR EVERY DOLLAR THEY SPEND TO TAKE CARE OF MEDICARE PATIENTS. THE MEDICARE PAYMENT ADVISORY COMMISSION ("MEDPAC") IN ITS MARCH 2007 REPORT TO CONGRESS CAUTIONED THAT UNDERPAYMENT WILL GET EVEN WORSE, WITH MARGINS REACHING A 10-YEAR LOW AT NEGATIVE 5.4 PERCENT. - MANY MEDICARE BENEFICIARIES, LIKE THEIR MEDICAID COUNTERPARTS, ARE POOR. MORE THAN 46 PERCENT OF MEDICARE SPENDING IS FOR BENEFICIARIES WHOSE INCOME IS BELOW 200 PERCENT OF THE FEDERAL POVERTY LEVEL. MANY OF THOSE MEDICARE BENEFICIARIES ARE ALSO ELIGIBLE FOR MEDICAID -- SO CALLED "DUAL ELIGIBLES." THERE IS EVERY COMPELLING PUBLIC POLICY REASON TO TREAT MEDICARE AND MEDICAID UNDERPAYMENTS SIMILARLY FOR PURPOSES OF A HOSPITAL'S COMMUNITY BENEFIT AND INCLUDE THESE COSTS ON FORM 990, SCHEDULE H, PART I. MEDICARE UNDERPAYMENT MUST BE SHOULDERED BY THE HOSPITAL IN ORDER TO CONTINUE TREATING THE COMMUNITY'S ELDERLY AND POOR. THESE UNDERPAYMENTS REPRESENT A REAL COST OF SERVING THE COMMUNITY AND SHOULD COUNT AS A QUANTIFIABLE COMMUNITY BENEFIT. BOTH THE AHA AND THIS ORGANIZATION ALSO FEEL THAT PATIENT BAD DEBT IS A COMMUNITY BENEFIT AND THUS INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. LIKE MEDICARE UNDERPAYMENT (SHORTFALLS), THERE ALSO ARE COMPELLING REASONS THAT PATIENT BAD DEBT SHOULD BE COUNTED AS QUANTIFIABLE COMMUNITY BENEFIT AS FOLLOWS: - A SIGNIFICANT MAJORITY OF BAD DEBT IS ATTRIBUTABLE TO LOW-INCOME PATIENTS, WHO, FOR MANY REASONS, DECLINE TO COMPLETE THE FORMS REQUIRED TO ESTABLISH ELIGIBILITY FOR HOSPITALS' CHARITY CARE OR FINANCIAL ASSISTANCE PROGRAMS. A 2006 CONGRESSIONAL BUDGET OFFICE ("CBO") REPORT, NONPROFIT HOSPITALS AND THE PROVISION OF COMMUNITY BENEFITS, CITED TWO STUDIES INDICATING THAT "THE GREAT MAJORITY OF BAD DEBT WAS ATTRIBUTABLE TO PATIENTS WITH INCOMES BELOW 200% OF THE FEDERAL POVERTY LINE." - THE REPORT ALSO NOTED THAT A SUBSTANTIAL PORTION OF BAD DEBT IS PENDING CHARITY CARE. UNLIKE BAD DEBT IN OTHER INDUSTRIES, HOSPITAL BAD DEBT IS COMPLICATED BY THE FACT THAT HOSPITALS FOLLOW THEIR MISSION TO THE COMMUNITY AND TREAT EVERY PATIENT THAT COMES THROUGH THEIR EMERGENCY DEPARTMENT, REGARDLESS OF ABILITY TO PAY. PATIENTS WHO HAVE OUTSTANDING BILLS ARE NOT TURNED AWAY, UNLIKE OTHER INDUSTRIES. BAD DEBT IS FURTHER COMPLICATED BY THE AUDITING INDUSTRY'S STANDARDS ON REPORTING CHARITY CARE. MANY PATIENTS CANNOT OR DO NOT PROVIDE THE NECESSARY, EXTENSIVE DOCUMENTATION REQUIRED TO BE DEEMED CHARITY CARE BY AUDITORS. AS A RESULT, ROUGHLY 40% OF BAD DEBT IS PENDING CHARITY CARE. - THE CBO CONCLUDED THAT ITS FINDINGS "SUPPORT THE VALIDITY OF THE USE OF UNCOMPENSATED CARE [BAD DEB COLLECTION POLICY SCHEDULE H, PART III, SECTION B; QUESTION 9B ACCOUNTS CONSIDERED TO BE CHARITY CARE ARE NOT INCLUDED IN THE BAD DEBT EXPENSE, BUT RATHER, ACCOUNTED FOR AS AN ALLOWANCE. IT IS THE POLICY OF THE ORGANIZATION TO TREAT ALL PATIENTS EQUALLY REGARDLESS OF INSURANCE AND THEIR ABILITY TO PAY. FOR ACCOUNTS DETERMINED TO BE "SELF-PAY" AND/OR ACCOUNTS WITH BALANCE AFTER PRIMARY INSURANCE PAYMENTS, THE COLLECTION POLICY REQUIRES: A MINIMUM OF ONE PRE-COLLECTION LETTER, TELEPHONE CONTACT FOR ANY ACCOUNT OVER $500 OR AT THE DISCRETION OF THE ACCOUNT REPRESENTATIVE AND/OR SUPERVISOR. THE FACILITY ALSO HAS A CHARITY CARE ACCESS POLICY TO ASSURE PATIENTS ARE PROVIDED WITH CHARITY CARE ASSISTANCE DETERMINED BY STATE AND FEDERAL REGULATIONS. IT IS THE POLICY TO INFORM ALL PATIENTS DEEMED SELF-PAY OF THE APPROPRIATE ASSISTANCE PROGRAMS AVAILABLE. PATIENTS APPLYING FOR CHARITY CARE ASSISTANCE WILL BE FINANCIALLY SCREENED BY A RESOURCE ADVISOR TO DETERMINE ELIGIBILITY ACCORDING TO STATE AND FEDERAL GUIDELINES AND WILL BE INFORMED OF DOCUMENTATION NEED TO COMPLETE A CHARITY CARE APPLICATION. PATIENTS NOT ELIGIBLE FOR CHARITY CARE WILL BE FINANCIALLY COUNSELED FOR ALL OTHER OPTIONS. QUALIFIED PATIENTS WILL BE REFERRED TO ALL APPROPRIATE AGENCIES OR PROGRAMS TO MEET OTHER FINANCIAL NEEDS. AT THE TIME OF THE PATIENT VISIT AND PART OF THE REGISTRATION PROCESS AT THE FACILITY, THE FOLLOWING OPTIONS ARE MADE AVAILABLE TO PATIENTS: - FINANCIAL COUNSELING FOR POSSIBLE ELIGIBILITY FOR MEDICAL ASSISTANCE INCLUDING MEDICAID AND SSI; - FINANCIAL COUNSELING FOR POSSIBLE ELIGIBILITY FOR THE NEW JERSEY HOSPITAL CARE PAYMENT ASSISTANCE PROGRAM; AND, - FINANCIAL ARRANGEMENTS INCLUDING: 1. CASH/CREDIT CARD (AMERICAN EXPRESS, DISCOVER, VISA, MASTERCARD), 2. LOW INTEREST LOAN PROGRAM, OR 3. FLEXIBLE PAYMENT PLANS. IN ADDITION TO THE ABOVE OPTIONS, THE FACILITY HAS ESTABLISHED A SELF-PAY ASSISTANCE PROGRAM FOR OUR UNINSURED PATIENTS THAT DO NOT QUALIFY FOR MEDICAID OR THE NEW JERSEY HOSPITAL CARE PAYMENT ASSISTANCE PROGRAM. THE SELF-PAY ASSISTANCE PROGRAM RATES ARE REFLECTIVE OF MEDICARE REIMBURSEMENT, AS REFERRED BY THE STATE OF NEW JERSEY. FACILITY INFORMATION SCHEDULE H, PART V; SECTION B, QUESTIONS 1J, 3, 4, 5C, 6I & 7 NOT APPLICABLE. FACILITY INFORMATION SCHEDULE H, PART V, SECTION B,QUESTIONS 9,10,11H,13G,15E,16E,17E,18D,20&21 NOT APPLICABLE. FACILITY INFORMATION SCHEDULE H, PART V, SECTION B, QUESTION 19D THE FACILITY USES THE MEDICAID RATE AS THE MAXIMUM AMOUNT THAT CAN BE CHARGED TO FAP-ELIGIBLE INDIVIDUALS FOR EMERGENCY OR OTHER MEDICALLY NECESSARY CARE. NEEDS ASSESSMENT SCHEDULE H, PART VI; QUESTION 2 THIS ORGANIZATION CONDUCTS A REVIEW OF KEY FACTOR INFORMATION ANNUALLY WHICH INCLUDES: A REVIEW OF HEALTHCARE UTILIZATION OF ITS SERVICE AREA POPULATION BY SERVICES (UROLOGY, CARDIOLOGY, OBSTETRICS, ETC.) FOR DETERMINING INCREASED OR DECREASED HEALTH NEEDS; HEALTHCARE SERVICE ESTIMATES AND FORECASTS (BOTH INPATIENT AND OUTPATIENT); ASSESSMENTS OF LOCAL DEMOGRAPHIC AND SOCIOECONOMIC INFORMATION; AND, A REVIEW OF HEALTH STATUS/NEEDS ASSESSMENTS AND STUDIES CONDUCTED BY EXTERNAL PARTIES HEALTH RESEARCH AND EDUCATION TRUST OF NEW JERSEY, UNITED WAY OF SOMERSET COUNTY, GREATER SOMERSET PUBLIC HEALTH PARTNERSHIP AND THE SOMERSET COUNTY HEALTH OFFICER'S ASSOCIATION. THIS ORGANIZATION CONDUCTS AN EXTENSIVE SERVICE AREA POPULATION NEED STUDY EVERY THREE TO FIVE YEARS. SPECIFIC QUESTIONS ARE ASKED TO IDENTIFY GAPS IN SERVICE. THESE REVIEWS INFORM THE BOARD OF TRUSTEES AND THE EXECUTIVE TEAM OF SOMERSET MEDICAL CENTER TO ASSURE RESPONSIVENESS TO IDENTIFIED COMMUNITY NEEDS. IN ADDITION, THIS ORGANIZATION WORKS WITH LOCAL PROVIDERS TO PLAN AND DISCUSS HEALTH NEEDS OF THE POPULATION. ONE FORUM IS A MONTHLY MEETING OF THE GREATER SOMERSET PUBLIC HEALTH HOSTED BY THE HEALTHCARE SYSTEM WITH REPRESENTATION FROM LOCAL POLITICIANS, LOCAL COMMUNITY HEALTH CENTERS, EMERGENCY HEALTH PROVIDERS AND OTHER COMMUNITY HEALTH LEADERS. PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE SCHEDULE H, PART VI; QUESTION 3 CHARITY CARE SIGNS ARE POSTED THROUGHOUT THE FACILITY, MAINLY IN PATIENT REGISTRATION AREAS. SIGNS ARE POSTED IN BOTH ENGLISH AND SPANISH. ALL PATIENTS DEEMED SELF PAY OR THOSE WHO REQUEST FINANCIAL ASSISTANCE ARE SCREENED FOR FINANCIAL NEED BY A RESOURCE ADVISOR ACCORDING TO THE FEDERAL POVERTY GUIDELINES AND REFERRED TO APPROPRIATE AGENCIES OR PROGRAMS. COMMUNITY INFORMATION SCHEDULE H, PART VI; QUESTION 4 THIS ORGANIZATION IS IN A DIVERSE SUBURBAN LOCATION SERVING DIVERSE COMMUNITIES RANGING FROM SMALL INNER CITY COMMUNITIES IN THE CENTRAL REGION TO MORE AFFLUENT SUBURBAN AREAS IN THE NORTHERN REGION. THIS ORGANIZATION IS LOCATED IN NEW JERSEY IN SOMERSET COUNTY. THIS ORGANIZATION IS COMMITTED TO SERVICE FOR ITS COMMUNITIES AND SERVES BOTH INNER CITY AND SUBURBAN AREAS. ABOUT 24.8% OF ITS INPATIENTS ARE OF MINORITY RACE/ETHNICITY. IN ADDITION, APPROXIMATELY 7.75% OF ITS PATIENTS ARE OF UNDERINSURED AND UNINSURED PAYER CATEGORIES. PROMOTION OF COMMUNITY HEALTH SCHEDULE H, PART VI; QUESTION 5 THIS ORGANIZATION OPERATES CONSISTENTLY WITH THE FOLLOWING CRITERIA OUTLINED IN IRS REVENUE RULING 69-545: 1. THE ORGANIZATION PROVICES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF ABILITY TO PAY, INCLUDING CHARITY CARE, SELF-PAY, MEDICARE AND MEDICAID PATIENTS; 2. THE ORGANIZATION OPERATES AN ACTIVE EMERGENCY ROOM FOR ALL PERSONS; WHICH IS OPEN 24 HOURS A DAY, 7 DAYS A WEEK, 365 DAYS PER YEAR; 3. THE ORGANIZATION MAINTAINS AN OPEN MEDICAL STAFF, WITH PRIVILEGES AVAILABLE TO ALL QUALIFIED PHYSICIANS; 4. CONTROL OF THE ORGANIZATION RESTS WITH ITS BOARD OF DIRECTORS; WHICH IS COMPRISED OF INDEPENDENT CIVIC LEADERS AND OTHER PROMINENT MEMBERS OF THE COMMUNITY; AND 5. SURPLUS FUNDS ARE USED TO IMPROVE THE QUALITY OF PATIENT CARE, EXPAND AND RENOVATE FACILITIES AND ADVANCE MEDICAL CARE; PROGRAMS AND ACTIVITIES. AFFILIATED HEALTHCARE SYSTEM SCHEDULE H, PART VI; QUESTION 6 NOT FOR-PROFIT SOMERSET HEALTH CARE CORPORATION AND AFFILIATES ENTITIES: SOMERSET HEALTH CARE CORPORATION SOMERSET HEALTH CARE CORPORATION ("SHCC") IS THE TAX-EXEMPT PARENT OF THE SOMERSET HEALTH CARE CORPORATION AND AFFILIATES ("SYSTEM"). THIS INTEGRATED HEALTHCARE DELIVERY SYSTEM CONSISTS OF A GROUP OF AFFILIATED HEALTHCARE ORGANIZATIONS. THE SOLE MEMBER OR STOCKHOLDER OF EACH ENTITY IS EITHER SHCC OR ANOTHER SYSTEM AFFILIATE CONTROLLED BY SHCC. THE SYSTEM IS AN INTEGRATED NETWORK OF HEALTHCARE PROVIDERS THROUGHOUT THE STATE OF NEW JERSEY. SOMERSET HEALTH CARE CORPORATION IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A SUPPORTING ORGANIZATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3). SOMERSET MEDICAL CENTER SOMERSET MEDICAL CENTER ("SMC") IS A 355-BED ACUTE CARE AND TEACHING HOSPITAL LOCATED IN SOMERVILLE, SOMERSET COUNTY, NEW JERSEY. SMC IS RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS AN INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, SMC PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. MOREOVER, SMC OPERATES CONSISTENTLY WITH THE CRITERIA OUTLINED IN IRS REVENUE RULING 69-545. 1. SMC PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF ABILITY TO PAY, INCLUDING CHARITY CARE, SELF- PAY, MEDICARE AND MEDICAID PATIENTS; 2. SMC OPERATES AN ACTIVE EMERGENCY ROOM FOR ALL PERSONS; WHICH IS OPEN 24 HOURS A DAY, 7 DAYS A WEEK, 365 DAYS PER YEAR; 3. SMC MAINTAINS AN OPEN MEDICAL STAFF, WITH PRIVILEGES AVAILABLE TO ALL QUALIFIED PHYSICIANS; AND 4. CONTROL OF SMC RESTS WITH ITS BOARD OF TRUSTEES WHICH IS COMPRISED OF INDEPENDENT CIVIC LEADERS, MEMBERS OF THE COMMUNITY AND MEDICAL STAFF REPRESENTATION. 5. SURPLUS FUNDS ARE USED TO IMPROVE THE QUALITY OF PATIENT CARE, EXPAND AND RENOVATE FACILITIES AND ADVANCE MEDICAL CARE; PROGRAMS AND ACTIVITIES. SOMERSET COMMUNITY CARE CORPORATION SOMERSET COMMUNITY CARE CORPORATION IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(2). THE ORGANIZATION SUPPORTS SOMERSET MEDICAL CENTER; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION, AND ITS AFFILIATES IN PROVIDING MEDICALLY NECESSARY HEALTHCARE SERVICES TO THE COMMUNITY IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. SOMERSET HEALTH CARE AFFILIATES, INC. SOMERSET HEALTH CARE AFFILIATES, INC. IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(2). THE ORGANIZATION SUPPORTS SOMERSET MEDICAL CENTER; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION, AND ITS AFFILIATES IN PROVIDING MEDICALLY NECESSARY HEALTHCARE SERVICES TO THE COMMUNITY IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. SOMERSET MEDICAL CENTER FOUNDATION, INC. SOMERSET MEDICAL CENTER FOUNDATION, INC. IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(1). THE ORGANIZATION SUPPORTS SOMERSET MEDICAL CENTER; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION, AND ITS AFFILIATES IN PROVIDING MEDICALLY NECESSARY HEALTHCARE SERVICES TO THE COMMUNITY IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. FOR-PROFIT SOMERSET HEALTH CARE CORPORATION AND AFFILIATES ENTITIES: EOS, INC. AN INACTIVE FOR-PROFIT CORPORATION. NEW JERSEY HEALTH, INC. AN INACTIVE FOR-PROFIT CORPORATION. NEW JERSEY HEALTHCARE ASSOCIATES A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS NEW JERSEY HEALTH, INC. THE ORGANIZATION IS LOCATED IN SOMERVILLE, SOMERSET COUNTY, NEW JERSEY. THIS ENTITY PROVIDES MEDICAL SERVICES. NEW JERSEY MANAGEMENT SERVICES ORGANIZATION A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS NEW JERSEY HEALTH, INC. THE ORGANIZATION IS LOCATED IN SOMERVILLE, SOMERSET COUNTY, NEW JERSEY. THIS ENTITY PROVIDES MANAGEMENT SERVICES. SHC ENTERPRISES, INC. A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS SHCC. THE ORGANIZATION IS LOCATED IN SOMERVILLE, SOMERSET COUNTY, NEW JERSEY. THIS ENTITY PROVIDES MANAGEMENT SERVICES. SOMERSET REALTY GROUP, INC. A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS SHC ENTERPRISES, INC. THE ORGANIZATION IS LOCATED IN SOMERVILLE, SOMERSET COUNTY, NEW JERSEY. THIS ENTITY PROVIDES REAL ESTATE SERVICES. SOMERSET STAFFING CORPORATION A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS SHCC. THE ORGANIZATION IS LOCATED IN SOMERVILLE, SOMERSET COUNTY, NEW JERSEY. THIS ENTITY PROVIDES STAFFING SERVICES. WARREN INTERNAL MEDICINE, P.C. A FOR-PROFIT ENTITY WHOSE NOMINEE OWNER IS SMC. THE ORGANIZATION IS LOCATED IN SOMERVILLE, SOMERSET COUNTY, NEW JERSEY. THIS ENTITY PROVIDES MEDICAL SERVICES. FRANKLIN MEDICAL GROUP, P.C. A FOR-PROFIT ENTITY WHOSE NOMINEE OWNER IS SMC. THE ORGANIZATION IS LOCATED IN SOMERVILLE, SOMERSET COUNTY, NEW JERSEY. THIS ENTITY PROVIDES MEDICAL SERVICES. ACUCARE PHYSICIANS, P.C. A FOR-PROFIT ENTITY WHOSE NOMINEE OWNER IS SMC. THE ORGANIZATION IS LOCATED IN SOMERVILLE, SOMERSET COUNTY, NEW JERSEY. THIS ENTITY PROVIDES MEDICAL SERVICES. SOMERSET MEDICAL CARE PARTNERS, P.C. A FOR-PROFIT ENTITY WHOSE NOMINEE OWNER IS SMC. THE ORGANIZATION IS LOCATED IN SOMERVILLE, SOMERSET COUNTY, NEW JERSEY. THIS ENTITY PROVIDES MEDICAL SERVICES. SOMERSET CARDIOLOGY PARTNERS, P.C. A FOR-PROFIT ENTITY WHOSE NOMINEE OWNER IS SMC. THE ORGANIZATION IS LOCATED IN SOMERVILLE, SOMERSET COUNTY, NEW JERSEY. THIS ENTITY PROVIDES MEDICAL SERVICES. SOMERSET CARDIOLOGY GROUP, P.C. A FOR-PROFIT ENTITY WHOSE NOMINEE OWNER IS SMC. THE ORGANIZATION IS LOCATED IN SOMERVILLE, SOMERSET COUNTY, NEW JERSEY. THIS ENTITY PROVIDES MEDICAL SERVICES. SOMERSET CHEST AND INTENSIVE CARE MEDICINE, P.C. A FOR-PROFIT ENTITY WHOSE NOMINEE OWNER IS SMC. THE ORGANIZATION IS LOCATED IN SOMERVILLE, SOMERSET COUNTY, NEW JERSEY. THIS ENTITY PROVIDES MEDICAL SERVICES. STATE FILING OF COMMUNITY BENEFIT REPORT SCHEDULE H, PART VI; QUESTION 7 NOT APPLICABLE. THE ENTITY AND RELATED PROVIDER ORGANIZATIONS ARE LOCATED IN NEW JERSEY. NO COMMUNITY BENEFIT REPORT IS FILED WITH THE STATE OF NEW JERSEY. true SOMERSET MEDICAL CENTER FOUNDATION INC 110 REHILL AVENUE SOMERVILLE NJ 08876 223294408 501(C)(3) 273767 PROGRAM SUPPORT RARITAN VALLEY COMMUNITY COLLEGE PO BOX 3300 SOMERVILLE NJ 08876 221815636 501(C)(3) 10000 EDUCATIONAL SCHOLARSHIPS RARITAN VALLEY COMMUNITY COLLEGE FOUNDATION PO BOX 3300 SOMERVILLE NJ 08876 237138731 501(C)(3) 6083 PROGRAM SUPPORT 3 0 GRANT FUND MONITORING SCHEDULE I, PART I; QUESTION 2 GRANTS ARE MONITORED BY THE ORGANIZATION'S FINANCE PERSONNEL THROUGH THE UTILIZATION OF COST CENTERS AND OTHER INFORMATION; INCLUDING WRITTEN DOCUMENATION AND RECEIPTS. X true true X X X X X false true false false false false false true false KENNETH W BATEMAN 485407 0 204682 0 91540 0 82350 0 27193 0 891172 0 75000 0 CARL OBRIEN 370881 0 0 0 1312 0 1154 0 19028 0 392375 0 0 0 DAVID DYER 291389 0 70142 0 970 0 7350 0 24914 0 394765 0 0 0 PAUL HUEGEL 323222 0 64947 0 10212 0 7288 0 26724 0 432393 0 0 0 MAUREEN SCHNEIDER 334834 0 91854 0 3184 0 7350 0 1818 0 439040 0 0 0 GLENN MCCREESH 334370 0 92239 0 1189 0 7350 0 26763 0 461911 0 0 0 MARY ANN BROSS 231067 0 57009 0 2211 0 7189 0 23545 0 321021 0 0 0 ROBERT SENSKA III 223604 0 64373 0 384 0 3808 0 8102 0 300271 0 0 0 KATHLEEN CUMMINS 204045 0 48184 0 1839 0 6105 0 2418 0 262591 0 0 0 MARY BOLLWAGE 181882 0 50799 0 1638 0 3675 0 15691 0 253685 0 0 0 VICTORIA ALLEN 170329 0 48065 0 361 0 5267 0 7885 0 231907 0 0 0 STEPHEN MINOGUE 175679 0 37290 0 823 0 5250 0 1141 0 220183 0 0 0 CHIKEZIE J AGUH MD 295264 0 0 0 0 0 2504 0 26248 0 324016 0 0 0 EVA B BESSERMAN MD 249300 0 15538 0 1297 0 7350 0 25195 0 298680 0 0 0 JOHN BUCEK MD 248572 0 14592 0 827 0 7350 0 28547 0 299888 0 0 0 LLOYD DAVIS MD 243389 0 14313 0 3544 0 7350 0 20513 0 289109 0 0 0 AKHTAR HOSSAIN MD 237725 0 13401 0 756 0 7154 0 9644 0 268680 0 0 0 PATRICK ROWAN MD 209697 0 0 0 378 0 6328 0 25377 0 241780 0 0 0 COMPENSATION INFORMATION SCHEDULE J, PART I; QUESTION 1A THE ORGANIZATION MAINTAINS MEMBERSHIPS IN TWO COUNTRY CLUBS FOR BUSINESS PURPOSES. THE COUNTRY CLUBS REQUIRE THAT AN INDIVIDUAL BE NAMED AS THE MEMBER. ACCORDINGLY, THE ORGANIZATION HAS DESIGNATED KENNETH W. BATEMAN, PRESIDENT/CEO AND GLENN MCCREESH, SENIOR VP OPERATIONS AS THE MEMBERS; ONE FOR EACH COUNTRY CLUB. DURING 2011, NEITHER MR. BATEMAN NOR MR. JONES USED THE COUNTRY CLUB FOR ANY PERSONAL USE OR BENEFIT. COMPENSATION INFORMATION SCHEDULE J, PART I; QUESTION 4B THE AMOUNT REFLECTED IN COLUMN B(III) FOR THE FOLLOWING INDIVIDUAL INCLUDES CURRENT YEAR VESTING IN AN INTERNAL REVENUE CODE SECTION 457(F) PLAN (NON-QUALIFIED DEFERRED COMPENSATION PLAN) AS THE AMOUNT WAS NO LONGER SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. THIS AMOUNT WAS REPORTED AS DEFERRED COMPENSATION ON PRIOR YEARS FORMS 990. THE AMOUNT OUTLINED HEREIN WAS INCLUDED IN THE INDIVIDUAL'S 2011 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES: KENNETH W. BATEMAN, $75,000. THE DEFERRED COMPENSATION AMOUNT IN COLUMN C FOR THE FOLLOWING INDIVIDUAL INCLUDES UNVESTED BENEFITS IN AN INTERNAL REVENUE CODE SECTION 457(F) PLAN (NON-QUALIFIED DEFERRED COMPENSATION PLAN) WHICH ARE SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. ACCORDINGLY, THE INDIVIDUAL MAY NEVER ACTUALLY RECEIVE THIS UNVESTED BENEFIT AMOUNT. THE AMOUNT OUTLINED HEREIN WAS NOT INCLUDED IN THE INDIVIDUAL'S 2011 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES: KENNETH W. BATEMAN, $75,000. COMPENSATION INFORMATION SCHEDULE J, PART I; QUESTION 7 AND CORE FORM, PART VII CERTAIN INDIVIDUALS INCLUDED IN SCHEDULE J, PART II RECEIVED A BONUS DURING CALENDAR YEAR 2011 WHICH AMOUNTS WERE INCLUDED IN COLUMN B(II) HEREIN AND IN EACH INDIVIDUAL'S 2011 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES. PLEASE REFER TO THIS SECTION OF THE FORM 990, SCHEDULE J FOR THIS INFORMATION BY PERSON BY AMOUNT. COMPENSATION INFORMATION SCHEDULE J, PART II, COLUMN F THE AMOUNT REPORTED IN SCHEDULE J, PART II, COLUMN F FOR THE FOLLOWING INDIVIDUAL INCLUDES VESTED BENEFITS IN AN INTERNAL REVENUE CODE SECTION 457(F) PLAN (NON-QUALIFIED DEFERRED COMPENSATION PLAN) AS THE AMOUNT WAS NO LONGER SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. THIS AMOUNT WAS TREATED AS TAXABLE INCOME AND REPORTED ON THE INDIVIDUAL'S 2011 FORM W-2, BOX 5 AS TAXABLE MEDICARE WAGES: KENNETH W. BATEMAN, $75,000. NJ HEALTH CARE FACLITIES FINANCING AUTHORITY 222845542 64579E8G4 2003-05-15 79642941 CONSTRUCTION, OR, ER, GARAGE false false false NJ HEALTH CARE FACILITIES FINANCING AUTHORITY 221987084 64579FXD0 2008-08-07 25930000 REFUND SERIES 1994/EQUIPMENT false false false NJ HEALTH CARE FACILITIES FINANCING AUTHORITY 221987084 2009-09-22 5585500 IT SYSTEM, RENOVATION, EQUIPMENT false false false 0 0 80580384 7746534 0 0 1585364 0 0 68991000 0 2257486 2009 false false true true 0 0 25930000 0 0 0 482978 0 0 24781359 0 665663 2011 true false true true 0 0 5585987 0 0 0 25500 0 0 5560487 0 0 2010 false false true true false false false false 0.00000 0.00000 0.00000 true false false false false 0.00000 0.00000 0.00000 true false false false false 0.00000 0.00000 0.00000 true false false false 0 false 0 false false false true false 0 false 0 false false false false false 0 false 0 false false X TAX-EXEMPT BONDS SCHEDULE K THE 2003 SERIES TAX-EXEMPT BOND ISSUANCE INCLUDED IN SCHEDULE K, PART I INCLUDES CUSIP NUMBERS IN ADDITION TO THE ONE DISCLOSED IN SCHEDULE K, PART I, LINE (A), COLUMN (C). THESE ARE THE FOLLOWING: 64579E8C3; 64579E8D1; 64579E8E9; AND 64579E8F6. LAURA FINO FAMILY MEMBER - RAY FINO 112893 EMPLOYEE false KATHLEEN WILLIAMS FAMILY MEMBER - BOLLWAGE 12262 EMPLOYEE false COMMUNITY BENEFIT STATEMENT CORE FORM, PART III; STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS SOMERSET MEDICAL CENTER ("SMC") IS AN ACUTE CARE GENERAL MEDICAL AND SURGICAL HOSPITAL. SMC IS RECOGNIZED BY THE IRS AS AN INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, SMC PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. MOREOVER, SMC OPERATES CONSISTENTLY WITH THE FOLLOWING CRITERIA OUTLINED IN IRS REVENUE RULING 69-545: 1. SMC PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF ABILITY TO PAY, INCLUDING CHARITY CARE, SELF- PAY, MEDICARE AND MEDICAID PATIENTS. 2. SMC OPERATES AN ACTIVE EMERGENCY ROOM FOR ALL PERSONS; WHICH IS OPEN 24 HOURS A DAY, 7 DAYS A WEEK, 365 DAYS PER YEAR. 3. SMC MAINTAINS AN OPEN MEDICAL STAFF, WITH PRIVILEGES AVAILABLE TO ALL QUALIFIED PHYSICIANS. 4. CONTROL OF SMC RESTS WITH ITS BOARD OF TRUSTEES, WHICH IS COMPRISED OF INDEPENDENT CIVIC LEADERS, AND OTHER PROMINENT MEMBERS OF THE COMMUNITY. 5. SURPLUS FUNDS ARE USED TO IMPROVE THE QUALITY OF PATIENT CARE, EXPAND AND RENOVATE FACILITIES AND ADVANCE MEDICAL CARE; PROGRAMS AND ACTIVITIES. THE OPERATIONS OF SMC, AS SHOWN THROUGH THE FACTORS OUTLINED ABOVE AND OTHER INFORMATION CONTAINED HEREIN, CLEARLY DEMONSTRATE THAT THE USE AND CONTROL OF SMC IS FOR THE BENEFIT OF THE PUBLIC AND THAT NO PART OF THE INCOME OR NET EARNINGS OF THE ORGANIZATION INURES TO THE BENEFIT OF ANY PRIVATE INDIVIDUAL NOR IS ANY PRIVATE INTEREST BEING SERVED OTHER THAN INCIDENTALLY. BACKGROUND ========== SMC IS A NATIONALLY ACCREDITED 355-BED ACUTE CARE AND TEACHING HOSPITAL PROVIDING COMPREHENSIVE EMERGENCY, MEDICAL/SURGICAL AND REHABILITATIVE SERVICES TO CENTRAL NEW JERSEY RESIDENTS. IT IS NATIONALLY RECOGNIZED AS A MAGNET HOSPITAL FOR NURSING EXCELLENCE. AS SOMERSET COUNTY'S ONLY ACUTE CARE HOSPITAL, SOMERSET MEDICAL CENTER HAS A FAR-REACHING IMPACT ON THE COUNTY'S QUALITY OF LIFE, TOUCHING THE LIVES OF RESIDENTS OF ALL AGES AND RACIAL AND ECONOMIC BACKGROUNDS. EACH YEAR, MORE THAN 250,000 PEOPLE TURN TO THE MEDICAL CENTER FOR CARE, RANGING FROM EMERGENCY, CARDIAC AND CANCER CARE TO SURGICAL, MATERNITY AND REHABILITATION SERVICES. CARE IS PROVIDED REGARDLESS OF PATIENTS' ABILITY TO PAY. EACH YEAR, THE MEDICAL CENTER PROVIDES APPROXIMATELY $79 MILLION IN CHARITY CARE. FOR MORE THAN A CENTURY, SMC HAS BEEN DEEPLY ROOTED IN THE HEALTH OF THE COMMUNITY. ITS EXTRAORDINARY, FAR-REACHING COMMITMENT TO KEEPING PEOPLE WELL AND ENHANCING THEIR QUALITY OF LIFE HAS BEEN A GROUNDING AND GUIDING FORCE - EMBRACING THE CORNERSTONE OF ITS MISSION WHILE INSPIRING NEW DIMENSIONS OF CARE FOR AREA FAMILIES. SMC HAS PROUDLY EVOLVED INTO A CENTERPIECE OF SOMERSET COUNTY AND ITS SURROUNDING COMMUNITIES. OVER THE YEARS, IT HAS EXPANDED BEYOND THE REALM OF HEALING AND TOWARD A BROADER ROLE OF ADVOCATING WELLNESS AND EMPOWERING INDIVIDUALS TO LIVE HEALTHIER LIFESTYLES. THIS MULTI-FACETED APPROACH REFLECTS A DRAMATIC SHIFT IN MODERN MEDICINE, RECOGNIZING THAT THE MOST POWERFUL PATHWAY TO GOOD HEALTH IS THROUGH DISEASE PREVENTION RATHER THAN CURE. AND THAT ADDING LIFE TO YOUR YEARS IS JUST AS IMPORTANT AS ADDING YEARS TO YOUR LIFE. WITH THAT IN MIND, SMC HAS COMPLEMENTED ITS LEADING EDGE CLINICAL SERVICES WITH AN ARRAY OF COMMUNITY-BASED, HEALTH PROMOTION INITIATIVES. THESE OUTREACH AND COLLABORATIVE PROGRAMS ADDRESS THE REGION'S GREATEST MEDICAL PRIORITIES WHILE SUPPORTING ALL ASPECTS OF PHYSICAL, MENTAL AND SPIRITUAL WELL-BEING. COMMUNITY EDUCATION, SCREENINGS & OUTREACH ========================================== THIS SMC COMMUNITY FOCUS IS ANCHORED BY A VAST ASSORTMENT OF SEMINARS, FITNESS PROGRAMS, SUPPORT GROUPS AND SCREENINGS THAT GUIDE AREA RESIDENTS TO HEALTHIER, SAFER LIVING. THE COMMUNITY HEALTH DEPARTMENT SPONSORS AN EXTENSIVE CALENDAR OF EVENTS, INCLUDING CLASSES ON NUTRITION, EXERCISE, DISEASE MANAGEMENT, DEPRESSION AND A VARIETY OF OTHER HEALTH TOPICS. PHYSICIANS AND PROFESSIONAL STAFF OFFER ENLIGHTENING PRESENTATIONS AT THE MEDICAL CENTER AND ALSO TRAVEL TO VARIOUS COMMUNITY SITES, I.E., WORKPLACE, SCHOOLS AND OTHER COMMUNITY SETTINGS, THROUGH THE HOSPITAL'S SPEAKER'S BUREAU. IN ADDITION TO WELLNESS EDUCATION, THE MEDICAL CENTER PROVIDES FREE AND LOW-COST SCREENINGS FOR CANCER, DIABETES, CHOLESTEROL AND OTHER SERIOUS MEDICAL CONDITIONS THAT ARE TREATED MOST SUCCESSFULLY WITH EARLY DETECTION. THE MEDICAL CENTER SPONSORS A FREE BLOOD PRESSURE KIOSK AT THE BRIDGEWATER COMMONS MALL, WHICH RECORDED AN AVERAGE OF 132 TESTS PER DAY IN 2011. ESPECIALLY FOR WOMEN: FROM CHILDBIRTH TO MENOPAUSE, SMC OFFERS A FULL CONTINUUM OF WELLNESS PROGRAMS ADDRESSING ALL ASPECTS OF WOMEN'S HEALTH. ITS BABY SUITES HOST A VARIETY OF PRENATAL, POSTPARTUM AND PARENTING COURSES FOR NEW AND EXPECTANT MOTHERS, AS WELL AS THEIR FAMILIES. THESE INCLUDE CLASSES ON BIRTHING, TOURS AND SPECIAL PROGRAMS FOR DADS AND SIBLINGS. IN COOPERATION WITH THE COURIER NEWS, THE COMMUNITY HEALTH DEPARTMENTS PRESENTS FREE LECTURES ADDRESSING A WIDE RANGE OF WOMEN'S HEALTH TOPICS, IMPORTANT WOMEN'S ISSUES RELATED TO HEART DISEASE, OSTEOPOROSIS AND PHYSIOLOGICAL PSYCHOLOGICAL WELLNESS ARE INCORPORATED INTO THE HOSPITAL'S GENERAL COMMUNITY HEALTH CALENDAR. SCHOOL ACTIVITIES: DEDICATED TO GIVING YOUTH A HEALTHY START, SMC PARTNERS WITH LOCAL SCHOOLS AND ORGANIZATIONS TO FOSTER EARLY, POSITIVE LIFESTYLE HABITS WHILE OPENING DOORS TO A BRIGHTER FUTURE. ANNUAL PROGRAMS ABOUT DENTAL HEALTH ARE PRESENTED TO HIGH-RISK PRESCHOOL CHILDREN AND HIGHLIGHTED AT HEALTH FAIRS THROUGHOUT THE YEAR. SCREENINGS TO PREVENT SUDDEN CARDIAC DEATH IN YOUNG ATHLETES HAVE BEEN CONDUCTED ANNUALLY SINCE 2009. SENIOR ADVANTAGE IN LIFE: SENIORS IN THE COMMUNITY ARE NAVIGATING THEIR WAY TO BETTER HEALTH THROUGH S.A.I.L. (SENIOR ADVANTAGE IN LIFE), AN ENTICING, AND FREE MEMBERSHIP PROGRAM FOR INDIVIDUALS AGE 60 AND OVER. THIS COMPREHENSIVE ENDEAVOR OFFERS MEDICALLY FOCUSED SERVICES, DISCOUNTS AND ACTIVITIES TO MATURE ADULTS SEEKING A MORE ACTIVE AND FULFILLING QUALITY OF LIFE. MEMBERS ARE ENTITLED TO NUMEROUS BENEFITS THAT PROMOTE CONTINUED WELLNESS, INCLUDING HEALTH SEMINARS AND SCREENINGS; SAVINGS ON VISION WEAR, HEARING AIDS, DENTAL CARE AND PRESCRIPTIONS; COMPLEMENTARY HOSPITAL AMENITIES, FITNESS PROGRAMS AND AN INFORMATIVE QUARTERLY NEWSLETTER. SAIL PARTICIPANTS ALSO ENJOY SOCIAL AND RECREATIONAL EVENTS THROUGHOUT THE YEAR, GIVING THEM THE OPPORTUNITY TO LAUNCH NEW FRIENDSHIPS, HOBBIES AND INTERESTS WHILE INVIGORATING THEIR GOLDEN YEARS. THE MEDICAL CENTER ALSO PARTNERS WITH BRIDGEWATER COMMONS MALL TO OFFER A CLIMATE-CONTROLLED ENVIRONMENT FOR WALKERS SEVEN DAYS A WEEK THROUGH A HEALTHHIKE WALKING PROGRAM. MEDICATION ASSISTANCE PROGRAM: SOMERSET FAMILY PRACTICE AND THE COMMUNITY HEALTH DEPARTMENT HELP CONNECT UNDERINSURED PATIENTS WITH ACCESS TO AFFORDABLE OR FREE MEDICATIONS. A REGISTERED NURSE IDENTIFIES FREE MEDICATION PROGRAMS OFFERED THROUGH PHARMACEUTICAL COMPANIES AND ASSISTS IN THE APPLICATION PROCESS OR DIRECTS PATIENTS TO LOW COST ALTERNATIVES FOR MEDICATIONS. THE NURSE ALSO HELPS EDUCATE PATIENTS ABOUT MEDICATION SAFETY. DIABETES EDUCATION: THE EL PODER SOBRE DIABETES PROGRAM, MANAGED BY THE COMMUNITY HEALTH DEPARTMENT, SEEKS TO IMPROVE THE HEALTH AND WELL-BEING OF UNDERSERVED HISPANICS THROUGH DIABETES PREVENTION ACTIVITIES AND DISEASE MANAGEMENT. THE PROGRAM'S GOAL IS TO HELP INDIVIDUALS MAKE BEHAVIOR CHANGES THAT POSITIVELY IMPACT THEIR LONG-TERM HEALTH. HEALTHIER SOMERSET: SOMERSET MEDICAL CENTER HAS BROUGHT TOGETHER A COALITION OF SOMERSET COUNTY HEALTH AGENCIES, EMPLOYERS AND ORGANIZATIONS SEEKING TO IMPROVE THE HEALTH OF COUNTY RESIDENTS AT HOME AND WORK THROUGH A SERIES OF HEALTH AND WELLNESS INITIATIVES. MAGIC MIRROR PLAYERS: COORDINATED THROUGH THE COMMUNITY HEALTH DEPARTMENT, THE MAGIC MIRROR PLAYERS ARE VOLUNTEER ACTORS WHO VISIT CIVIC ORGANIZATIONS, SCHOOLS, RELIGIOUS CONGREGATIONS, CORPORATIONS AND OTHER GROUPS TO HELP AUDIENCES EXPLORE LIFE'S CHALLENGES AND DISCOVER MORE ABOUT THEIR FEELINGS AND THEMSELVES. THE PLAYERS PORTRAY REAL-LIFE ISSUES, SUCH AS PARENT-CHILD CONFLICTS AND FAMILY ILLNESS, THROUGH DRAMATIC PRESENTATIONS UTILIZING IMPROVISATIONAL AND ROLE-PLAYING TECHNIQUES. PERFORMANCES ARE FOLLOWED BY FACILITATED GROUP DISCUSSIONS AND INFORMATION REGARDING BEHAVIORAL HEALTH SERVICES AVAILABLE WITHIN THE COMMUNITY. SOMERSET MEDICAL CENTER HAS DEDICATED SUBSTANTIAL RESOURCES TO IMPROVING THE HEALTH AND WELLNESS OF SOMERSET COUNTY RESIDENTS THROUGH HEALTH SCREENINGS, EDUCATIONAL PROGRAMS AND COMMUNITY OUTREACH EFFORTS TO CHILDREN, ADULTS AND SENIORS. THESE PROGRAMS, OFFERED THROUGH THE MEDICAL CENTER'S COMMUNITY HEALTH DEPARTMENT, REACH 39,000 PEOPLE EACH YEAR. COMMUNITY BENEFIT STATEMENT (CONTINUED) CORE FORM, PART III; STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS TOBACCO QUITCENTER ================== SMC'S TOBACCO DEPENDENCY TREATMENT PROGRAM ENLISTS A COMPREHENSIVE APPROACH TO HELP PATIENTS KICK THE SMOKING HABIT SAFELY AND SUCCESSFULLY. IN FACT, 73 PERCENT OF SMOKERS WHO SET A QUIT DATE AND COMPLETED TREATMENT AT THE QUITCENTER WERE TOBACCO FREE AT THEIR SIX-MONTH FOLLOW-UP. THE PROGRAM INCLUDES AN EVALUATION, COUNSELING AND, WHEN NEEDED, PHARMACOTHERAPY TO HELP DEAL WITH NICOTINE WITHDRAWAL SYMPTOMS. IT ALSO ADDRESSES ISSUES THAT CAN ACCOMPANY TOBACCO DEPENDENCY, SUCH AS DEPRESSION, EATING DISORDERS, FEARS OF WEIGHT GAIN, ANXIETY, SPOUSAL PROBLEMS AND WORK-RELATED STRESS. TREATMENTS ARE TAILORED TO EACH PATIENT'S NEEDS AND CAN BE COUPLED WITH ONE-ON-ONE EDUCATION AND MOTIVATIONAL TECHNIQUES. SOMERSET MEDICAL CENTER'S COMMITMENT TO THE COMMUNITY IS INTEGRATED INTO EVERY AREA OF PROGRAMMING. THIS COMMITMENT IS SEEN CLEARLY IN THE ACTIVITIES AND PROJECTS THAT ARE PLANNED TO MEET IDENTIFIED HEALTH NEEDS, TO FORM PARTNERSHIPS TO MEET THESE NEEDS AND TO IMPROVE THE HEALTH AND QUALITY OF LIFE OF THOSE THAT WE SERVE. EMERGENCY MEDICAL SERVICES ========================== SOMERSET MEDICAL CENTER HAS PROVIDED ADVANCED LIFE SUPPORT SERVICES TO SOMERSET COUNTY SINCE 1982. SOMERSET MEDICAL CENTER'S THREE MOBILE INTENSIVE CARE UNITS RESPOND TO OVER 7,500 REQUESTS FOR SERVICE ANNUALLY. THROUGH A SHARED SERVICES AGREEMENT WITH NEIGHBORING COMMUNITIES, SOMERSET MEDICAL CENTER ALSO PROVIDES PRIMARY AMBULANCE COVERAGE FOR MANVILLE AND RARITAN, BACKUP AMBULANCE COVERAGE FOR SOUTH BOUND BROOK AND BRIDGEWATER. IN ADDITION, THE MEDICAL CENTER PROVIDES DAYTIME AMBULANCE COVERAGE FOR BEDMINSTER AND FAR HILLS AND DAYTIME COVERAGE FOR SOUTH PLAINFIELD AND STAFFS TWO COUNTY-WIDE UNITS AVAILABLE TO RESPOND ANYWHERE IN SOMERSET COUNTY TO SUPPLEMENT COVERAGE BY VOLUNTEER RESCUE SQUADS. IN 2007, THE MEDICAL CENTER BEGAN OFFERING A NON-EMERGENCY AMBULANCE TRANSPORT SERVICE TO TRANSPORT DISCHARGED PATIENTS BETWEEN THE MEDICAL CENTER AND NURSING HOMES, ASSISTED LIVING FACILITIES, REHABILITATION CENTERS AND OTHER HEALTHCARE FACILITIES. IN 2009, SOMERSET MEDICAL CENTER'S EMERGENCY MEDICAL SERVICES (EMS) DEPARTMENT BECAME ONE OF THE FIRST IN NEW JERSEY TO BEGIN ADMINISTERING THERAPEUTIC HYPOTHERMIA - ONE OF THE MOST PROMISING NEW ADVANCES IN THE TREATMENT OF CARDIAC ARREST PATIENTS - BEFORE PATIENTS EVEN ARRIVE AT THE HOSPITAL. THIS PROCEDURE HAS BEEN SHOWN TO INCREASE SURVIVAL RATES AND MINIMIZE BRAIN DAMAGE IN PATIENTS RESUSCITATED AFTER A CARDIAC ARREST. THE SOONER THERAPEUTIC HYPOTHERMIA IS ADMINISTERED, THE MORE LIKELY THE PATIENT WILL BE ABLE TO PRESERVE BRAIN FUNCTION. IN ORDER TO SUPPORT LOCAL RESCUE SQUADS WITH THE ADDITION OF TRAINED VOLUNTEERS, THE MEDICAL CENTER'S EMS DEPARTMENT DEVELOPED AN EMERGENCY MEDICAL TECHNICIAN TRAINING PROGRAM FOR HIGH SCHOOL STUDENTS IN PARTNERSHIP WITH SOMERSET COUNTY BOARD OF CHOSEN FREEHOLDERS, SOMERSET COUNTY VOCATIONAL & TECHNICAL HIGH SCHOOL, SOMERSET COUNTY EMS CHIEF OFFICERS ASSOCIATION, RARITAN VALLEY COMMUNITY COLLEGE AND VOLUNTEER FIRST AID SQUADS IN SOMERSET COUNTY. THE CLASS IS THE ONLY ONE OF ITS KIND IN THE STATE AFFILIATED WITH A HOSPITAL. STUDENTS, WHO COMPLETE THE 16-WEEK CLASS, EARN SIX COLLEGE CREDITS TRANSFERABLE TO RARITAN VALLEY COMMUNITY COLLEGE. MANY OF THE GRADUATES OF THE CLASS NOW SERVE ON VOLUNTEER RESCUE SQUADS. THE MEDICAL CENTER'S EMERGENCY MEDICAL SERVICES DEPARTMENT ALSO PROVIDE A COMPREHENSIVE RANGE OF TRAINING PROGRAMS YEAR-ROUND FOR AREA RESCUE SQUAD MEMBERS AND COMMUNITY RESIDENTS, INCLUDING CPR AND FIRST AID CLASSES. GATEWAY TO HEALTH INFORMATION ============================= AS PART OF ITS COMMITMENT TO WELLNESS EDUCATION, SMC MAINTAINS AN EXTENSIVE COLLECTION OF HEALTH INFORMATION RESOURCES AVAILABLE TO ALL MEMBERS OF THE COMMUNITY. THE HOSPITAL CAMPUS HOUSES A COMPREHENSIVE MEDICAL LIBRARY WITH THE LATEST MEDICAL REFERENCE TEXTS AND PERIODICALS, AS WELL AS INTERNET ACCESS TO A WORLDWIDE MEDICAL INFORMATION NETWORK. THE FACILITY IS OPEN TO THE PUBLIC, HEALTHCARE PROFESSIONALS AND HOSPITAL EMPLOYEES ON WEEKDAYS FROM 8 A.M. TO 4 P.M. THE MEDICAL CENTER ALSO INVITES THE COMMUNITY TO RESEARCH AND EXPLORE HEALTH ISSUES ON ITS WEB SITE AT WWW.SOMERSETMEDICALCENTER.COM. THE SITE OFFERS A BROAD SPECTRUM OF HEALTH TIPS AND FEATURES, FACTS ON MEDICAL CONDITIONS AND INJURIES, DRUG INFORMATION AND A COMPLETE MEDICAL DICTIONARY. VISITORS CAN EVEN REVIEW VARIOUS MEDICAL PROCEDURES, CALCULATE THEIR OWN BODY MASS INDEX, AND SUBSCRIBE TO THE HOSPITAL'S FREE COMMUNITY MAGAZINES - HEALTHY EDITION AND SENIOR EDITION, OR ITS FREE E-NEWSLETTERS, HEALTHY LIVING OR MY BABY EXPECTATIONS. IN ADDITION, THE STEEPLECHASE CANCER CENTER ALSO OFFERS A RESOURCE LIBRARY FOR PATIENTS AND THEIR FAMILIES WHO ARE INTERESTED IN RESEARCHING THEIR DISEASE OR LOOKING FOR ADDITIONAL INFORMATION ABOUT THEIR TREATMENTS. THE LIBRARY OFFERS BOOKS, PERIODICALS AND INTERNET ACCESS. PHYSICIAN OUTREACH ================== SMC'S FAMILY PRACTICE RESIDENTS, AFFILIATED WITH SOMERSET FAMILY PRACTICE, AID YOUTHS IN THE COMMUNITY THROUGH ADDITIONAL OUTREACH, INCLUDING MISSIONS TO HONDURAS TO PROVIDE CARE. THESE MISSIONS NOT ONLY AID THOSE LESS FORTUNATE OUTSIDE OUR COUNTRY BUT ALSO HAVE ENHANCED THE CARE THAT WE PROVIDE TO OUR PATIENTS AT SOMERSET FAMILY PRACTICE CENTER. THE PHYSICIANS ALSO PARTICIPATE IN CAREER DAYS, HEALTH FAIRS AND ADMINISTER FLU SHOTS TO CITIZENS OF SEVERAL MUNICIPALITIES. PROFESSIONAL EDUCATION ====================== SMC ACTIVELY SUPPORTS HEALTHCARE PROFESSIONALS IN THEIR QUEST TO REMAIN ON TOP OF THEIR FIELDS. THE HOSPITAL IS ACCREDITED BY THE MEDICAL SOCIETY OF NEW JERSEY AND OTHER GOVERNING ASSOCIATIONS TO SPONSOR ONGOING EDUCATIONAL OPPORTUNITIES, INCLUDING CME (CONTINUING MEDICAL EDUCATION) COURSES FOR PHYSICIANS, CEU (CONTINUING EDUCATION UNITS) FOR NURSES, AND VARIOUS ADVANCED LIFE SUPPORT AND SPECIALTY CLASSES FOR EMERGENCY MEDICAL TECHNICIANS AND OTHER HEALTHCARE PROFESSIONALS. NURSES PRACTICING IN THE COMMUNITY SETTING, I.E., FAITH-BASED COMMUNITY NURSES AND SCHOOL NURSES ARE INVITED TO ATTEND SPECIFIC COURSES THAT OFFER CONTINUING EDUCATION CREDITS. STUDENT VOLUNTEER/EDUCATION PROGRAMS ==================================== ASPIRING DOCTORS, NURSES AND HEALTHCARE PROFESSIONALS ARE TREMENDOUSLY REWARDED THROUGH STUDENT VOLUNTEER OPPORTUNITIES AT SMC. HUNDREDS OF TEENS AND YOUNG ADULTS HAVE DONATED THEIR SUMMERS TO LEARNING MORE ABOUT HOSPITALS AND THEIR INTENDED CAREERS, WHILE GIVING BACK TO THEIR COMMUNITY. THE MEDICAL CENTER OFFERS A NURSE EXTERN PROGRAM FOR NURSING SCHOOL STUDENTS, A BRIDGE TO EMPLOYMENT PROGRAM FOR STUDENTS CONSIDERING HEALTHCARE CAREERS, A MONTH-LONG SENIOR PRACTICUM FOR HIGH SCHOOL STUDENTS INTERESTED IN HEALTH CAREERS, AND A TOUR PROGRAM FOR HIGH SCHOOL STUDENTS TO HELP INCREASE AWARENESS OF THE MANY HEALTHCARE CAREERS AVAILABLE. A VOLUNTEER/INTERNSHIP PROGRAM IS AVAILABLE FOR COLLEGE STUDENTS AND A VOLUNTEER PROGRAM FOR THOSE INTERESTED IN CLINICAL OR GENERAL SUPPORT AREAS. IN ADDITION TO TRAINING AND EDUCATING VOLUNTEERS TO THE VARIETY OF POSITIONS AVAILABLE TO THEM, THE VOLUNTEER SERVICES DEPARTMENT ALSO PARTNERS WITH AREA HIGH SCHOOLS AND STATE ORGANIZATIONS TO PROVIDE WEEKLY VOLUNTEER OPPORTUNITIES FOR DEVELOPMENTALLY DELAYED OR PHYSICALLY DISABLED STUDENTS TO LEARN SKILLS AND GAIN WORK EXPERIENCE. OTHER PROGRAM SERVICES CORE FORM, PART III; QUESTION 4D EXPENSES INCURRED IN PROVIDING VARIOUS OTHER MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. PLEASE REFER TO THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT INCLUDED IN SCHEDULE O. DISCLOSURE INFORMATION CORE FORM, PART VI, SECTION A; QUESTIONS 6 & 7 SOMERSET HEALTH CARE CORPORATION ("SHCC") IS THE SOLE MEMBER OF THIS ORGANIZATION. SHCC HAS THE RIGHT TO ELECT THE MEMBERS OF THIS ORGANIZATION'S BOARD OF TRUSTEES AND HAS CERTAIN RESERVED POWERS AS DEFINED IN THIS ORGANIZATION'S BYLAWS. DISCLOSURE INFORMATION CORE FORM, PART VI, SECTION B; QUESTION 11B THE ORGANIZATION'S FEDERAL FORM 990 WAS PROVIDED TO EACH VOTING MEMBER OF ITS GOVERNING BODY (ITS BOARD OF TRUSTEES) PRIOR TO FILING WITH THE INTERNAL REVENUE SERVICE ("IRS"). THE ORGANIZATION'S BOARD OF TRUSTEEES HAS DELEGATED TO ITS AUDIT AND COMPLIANCE COMMITTEE THE RESPONSIBILITY TO OVERSEE AND COORDINATE THE FEDERAL FORM 990 PREPARATION, REVIEW AND FILING PROCESS. AS PART OF THE TAX RETURN PREPARATION PROCESS THE ORGANIZATION HIRED WITHUMSMITH+BROWN, P.C., A PROFESSIONAL CPA FIRM WITH EXPERIENCE AND EXPERTISE IN BOTH HEALTHCARE AND NOT-FOR-PROFIT TAX RETURN PREPARATION, TO PREPARE THE FEDERAL FORM 990. THE CPA FIRM'S TAX PROFESSIONALS WORKED CLOSELY WITH THE ORGANIZATION'S FINANCE PERSONNEL AND VARIOUS OTHER INDIVIDUALS OF THE ORGANIZATION TO OBTAIN THE INFORMATION NEEDED IN ORDER TO PREPARE A COMPLETE AND ACCURATE TAX RETURN. THE CPA FIRM PREPARED A DRAFT FEDERAL FORM 990 AND FURNISHED IT TO THE ORGANIZATION'S FINANCE PERSONNEL AND OTHER INDIVIDUALS FOR THEIR REVIEW. THE ORGANIZATION'S FINANCE PERSONNEL AND OTHER INDIVIDUALS REVIEWED THE DRAFT FEDERAL FORM 990 AND DISCUSSED QUESTIONS AND COMMENTS WITH THE CPA FIRM. REVISIONS WERE MADE TO THE DRAFT FEDERAL FORM 990 WHERE NECESSARY AND A FINAL DRAFT WAS FURNISHED BY THE CPA FIRM TO THE ORGANIZATION'S FINANCE PERSONNEL AND VARIOUS OTHER INDIVIDUALS FOR FINAL REVIEW AND APPROVAL PRIOR TO PROVIDING THE FORM 990 TO EACH VOTING MEMBER OF THE ORGANIZATION'S GOVERNING BODY. DISCLOSURE INFORMATION CORE FORM, PART VI, SECTION B; QUESTION 12 THE ORGANIZATION REGULARLY MONITORS AND ENFORCES COMPLIANCE WITH ITS CONFLICT OF INTEREST POLICY. ANNUALLY ALL MEMBERS OF THE BOARD OF TRUSTEES, OFFICERS, SENIOR MANAGEMENT AND OTHER KEY PERSONNEL ARE REQUIRED TO REVIEW THE EXISTING CONFLICT OF INTEREST POLICY AND COMPLETE A QUESTIONNAIRE. THE COMPLETED QUESTIONNAIRES ARE RETURNED TO THE ORGANIZATION'S VICE PRESIDENT OF REGULATORY AFFAIRS/CHIEF COMPLIANCE OFFICER FOR REVIEW. THEREAFTER THE VICE PRESIDENT OF REGULATORY AFFAIRS/CHIEF COMPLIANCE OFFICER PREPARES A SUMMARY OF THE COMPLETED QUESTIONNAIRES WHICH CONTAINS INFORMATION DISCLOSED ON AN INDIVIDUAL BY INDIVIDUAL BASIS. THIS SUMMARY IS THEN PROVIDED TO THE ORGANIZATION'S PRESIDENT/CHIEF EXECUTIVE OFFICER FOR REVIEW. THEREAFTER, THE PRESIDENT/CHIEF EXECUTIVE OFFICER OF THE ORGANIZATION PRESENTS THIS SUMMARY TO SOMERSET MEDICAL CENTER'S AUDIT AND COMPLIANCE COMMITTEE OF THE BOARD OF TRUSTEES FOR ITS REVIEW AND DISCUSSION. DISCLOSURE INFORMATION CORE FORM, PART VI, SECTION B; QUESTION 15 THE ORGANIZATION'S BOARD OF TRUSTEES HAS AN EXECUTIVE COMPENSATION COMMITTEE ("COMMITTEE"). THE COMMITTEE HAS ADOPTED A WRITTEN EXECUTIVE COMPENSATION PHILOSOPHY WHICH IT FOLLOWS WHEN IT REVIEWS OF THE COMPENSATION AND BENEFITS OF THE ORGANIZATION'S SENIOR MANAGEMENT, INCLUDING THE PRESIDENT/CHIEF EXECUTIVE OFFICER. THE COMMITTEE REVIEWS THE "TOTAL COMPENSATION" OF THE INDIVIDUALS WHICH IS INTENDED TO INCLUDE BOTH CURRENT AND DEFERRED COMPENSATION AND ALL EMPLOYEE BENEFITS, BOTH QUALIFIED AND NON-QUALIFIED. THE COMMITTEE'S REVIEW IS DONE ON AT LEAST AN ANNUAL BASIS AND ENSURES THAT THE "TOTAL COMPENSATION" OF SENIOR MANAGEMENT OF THE ORGANIZATION IS REASONABLE. IN 2008, THE EXECUTIVE COMPENSATION COMMITTEE WAS A RECOMMENDING BODY TO THE BOARD OF TRUSTEES. THE RECOMMENDATIONS OF THE EXECUTIVE COMPENSATION COMMITTEE WERE SUBMITTED FOR FULL APPROVAL BY THE BOARD OF TRUSTEES. THE ACTIONS TAKEN BY THE COMMITTEE ENABLE THE ORGANIZATION TO RECEIVE THE REBUTTABLE PRESUMPTION OF REASONABLENESS FOR PURPOSES OF INTERNAL REVENUE CODE SECTION 4958 WITH RESPECT TO THE TOTAL COMPENSATION OF CERTAIN MEMBERS OF THE SENIOR MANAGEMENT TEAM, INCLUDING THE PRESIDENT/CHIEF EXECUTIVE OFFICER, CHIEF OPERATING OFFICER AND CHIEF FINANCIAL OFFICER. THE THREE FACTORS WHICH MUST BE SATISFIED IN ORDER TO RECEIVE THE REBUTTABLE PRESUMPTION OF REASONABLENESS ARE THE FOLLOWING: 1. THE COMPENSATION ARRANGEMENT IS APPROVED IN ADVANCE BY AN "AUTHORIZED BODY" OF THE APPLICABLE TAX-EXEMPT ORGANIZATION WHICH IS COMPOSED ENTIRELY OF INDIVIDUALS WHO DO NOT HAVE A "CONFLICT OF INTEREST" WITH RESPECT TO THE COMPENSATION ARRANGEMENT; 2. THE AUTHORIZED BODY OBTAINED AND RELIED UPON "APPROPRIATE DATA AS TO COMPARABILITY" PRIOR TO MAKING ITS DETERMINATION; AND 3. THE AUTHORIZED BODY "ADEQUATELY DOCUMENTED THE BASIS FOR ITS DETERMINATION" CONCURRENTLY WITH MAKING THAT DETERMINATION. THE COMMITTEE IS COMPRISED OF MEMBERS OF THE BOARD OF TRUSTEES EACH OF WHO ARE INDEPENDENT AND ARE FREE FROM ANY CONFLICTS OF INTEREST. THE COMMITTEE RELIED UPON APPROPRIATE COMPARABLE DATA; SPECIFICALLY THE COMMITTEE OBTAINED A WRITTEN COMPENSATION STUDY FROM AN INDEPENDENT FIRM WHICH SPECIALIZES IN THE REVIEWING OF HOSPITAL AND HEALTHCARE SYSTEM EXECUTIVE COMPENSATION AND BENEFITS. THE PEER GROUP OF EMPLOYERS TO BE CONSIDERED IN MEASURING THE COMPETITIVENESS OF THE EXECUTIVE COMPENSATION PROGRAM NECESSARY TO RECRUIT AND RETAIN TOP EXECUTIVE TALENT CONSISTS OF MAJOR TEACHING HOSPITALS IN THE NORTHEAST REGION OF THE UNITED STATES. THE COMMITTEE ADEQUATELY DOCUMENTED ITS BASIS FOR ITS DETERMINATION THROUGH THE TIMELY PREPARATION OF WRITTEN MINUTES OF THE COMPENSATION COMMITTEE MEETINGS DURING WHICH THE EXECUTIVE COMPENSATION AND BENEFITS WAS REVIEWED AND SUBSEQUENTLY APPROVED. THE ACTIONS OUTLINED ABOVE WITH RESPECT TO THE COMMITTEE AND THE ESTABLISHMENT OF THE REBUTTABLE PRESUMPTION OF REASONABLENESS ONLY APPLIES TO CERTAIN SENIOR MANAGEMENT PERSONNEL, INCLUDING BUT NOT LIMITED TO THE PRESIDENT/CHIEF EXECUTIVE OFFICER. THE COMPENSATION AND BENEFITS OF THE OTHER INDIVIDUALS CONTAINED IN THIS FORM 990 IS REVIEWED ANNUALLY BY THE PRESIDENT/CHIEF EXECUTIVE OFFICER AND SENIOR STAFF WITH ASSISTANCE FROM THE ORGANIZATION'S HUMAN RESOURCES DEPARTMENT IN CONJUNCTION WITH THE INDIVIDUAL'S JOB PERFORMANCE DURING THE YEAR AND IS BASED UPON OTHER OBJECTIVE FACTORS DESIGNED TO ENSURE THAT REASONABLE AND FAIR MARKET VALUE COMPENSATION IS PAID BY THE ORGANIZATION. OTHER OBJECTIVE FACTORS INCLUDE MARKET SURVEY DATA FOR COMPARABLE POSITIONS, INDIVIDUAL GOALS AND OBJECTIVES, PERSONNEL REVIEWS, EVALUATIONS, SELF-EVALUATIONS AND PERFORMANCE FEEDBACK MEETINGS. DISCLOSURE INFORMATION CORE FORM, PART VI, SECTION C; QUESTION 19 THE ORGANIZATION HAS ISSUED TAX-EXEMPT BONDS TO FINANCE VARIOUS CAPITAL IMPROVEMENT PROJECTS, RENOVATIONS AND EQUIPMENT. IN CONJUNCTION WITH THE ISSUANCE OF THESE TAX-EXEMPT BONDS, THE ORGANIZATION'S FINANCIAL STATEMENTS WERE INCLUDED WITH THE TAX-EXEMPT BOND PROSPECTUS WHICH WAS MADE AVAILABLE TO THE GENERAL PUBLIC FOR REVIEW. THE ORGANIZATION'S FILED CERTIFICATE OF INCORPORATION AND ANY AMENDMENTS CAN BE OBTAINED AND REVIEWED THROUGH THE STATE OF NEW JERSEY SECRETARY OF STATE. COMPENSATION INFORMATION DISCLOSURE CORE FORM, PART VII AND SCHEDULE J PART VII AND SCHEDULE J REFLECT CERTAIN BOARD MEMBERS AND OFFICERS RECEIVING COMPENSATION AND BENEFITS FROM THIS ORGANIZATION. PLEASE NOTE THIS REMUNERATION WAS FOR SERVICES RENDERED AS FULL-TIME EMPLOYEES OF THE ORGANIZATION AND NOT FOR SERVICES RENDERED AS A VOTING MEMBER OR OFFICER OF THIS ORGANIZATION'S BOARD OF TRUSTEES. RELATED HOURS INFORMATION CORE FORM, PART VII, SECTION A This organization is AN AFFILIATE WITHIN A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM ("SYSTEM"). THE SYSTEM INCLUDES BOTH FOR-PROFIT AND NOT FOR-PROFIT ORGANIZATIONS. CERTAIN BOARD OF TRUSTEE MEMBERS, OFFICERS AND/OR DIRECTORS LISTED ON CORE FORM, PART VII AND SCHEDULE J OF THIS FORM 990 MAY HOLD SIMILAR POSITIONS WITH BOTH THIS ORGANIZATION AND OTHER AFFILIATES WITHIN THE SYSTEM. THE HOURS SHOWN ON THIS FORM 990, FOR BOARD MEMBERS WHO RECEIVE NO COMPENSATION FOR SERVICES RENDERED IN A NON-BOARD CAPACITY, REPRESENTS THE ESTIMATED HOURS DEVOTED PER WEEK FOR THIS ORGANIZATION. TO THE EXTENT THESE INDIVIDUALS SERVE AS A MEMBER OF THE BOARD OF TRUSTEES OF OTHER RELATED ORGANIZATIONS IN THE SYSTEM, THEIR RESPECTIVE HOURS PER WEEK PER ORGANIZATION ARE SIMILAR TO THE HOURS REFLECTED ON PART VII OF THIS FORM 990. THE HOURS REFLECTED ON PART VII OF THIS FORM 990, FOR BOARD MEMBERS WHO RECEIVE COMPENSATION FOR SERVICES RENDERED IN A NON-BOARD CAPACITY AND PAID OFFICERS, REFLECT TOTAL HOURS WORKED PER WEEK ON BEHALF OF THE SYSTEM; NOT SOLELY THIS ORGANIZATION. OTHER CHANGES IN NET ASSETS CORE FORM, PART XI; QUESTION 5 OTHER CHANGES IN FUND BALANCE INCLUDE: - CHANGE IN NET UNREALIZED GAINS AND LOSSES ON INVESTMENTS OTHER THAN TRADING SECURITIES - ($147,601) - PENSION LIABILITY ADJUSTMENT - ($9,181,264) - NET ASSETS RELEASED FROM RESTRICTIONS USED FOR PROPERTY AND EQUIPMENT - $216,384 - CHANGE IN INTEREST IN NET ASSETS OF SOMERSET MEDICAL CENTER FOUNDATION, INC.; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION - $787,270 - TEMPORARILY RESTRICTED CONTRIBUTIONS FROM SOMERSET MEDICAL CENTER FOUNDATION, A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION - $969,553 - NET ASSETS RELEASED FROM TEMPORARY RESTRICTIONS FOR USE IN OPERATIONS - ($440,831) - NET ASSETS RELEASED FROM TEMPORARY RESTRICTIONS FOR PROPERTY AND EQUIPMENT - ($216,384) AUDITED FINANCIAL STATEMENTS CORE FORM, PART XII; QUESTION 2 AN INDEPENDENT CPA FIRM AUDITED THE FINANCIAL STATEMENTS OF THE TAXPAYER FOR THE YEARS ENDED DECEMBER 31, 2011 AND DECEMBER 31, 2010; RESPECTIVELY, AND ISSUED A CERTIFIED OPINION ON THOSE AUDITED FINANCIAL STATEMENTS. AN UNQUALIFIED OPINION WAS ISSUED BY THE INDEPENDENT CPA FIRM EACH YEAR. THE TAXPAYER'S AUDIT AND COMPLIANCE COMMITTEE OF ITS BOARD OF TRUSTEES ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND THE SELECTION OF AN INDEPENDENT AUDITOR. SOMERSET COMMUNITY CARE CORP 110 REHILL AVENUE SOMERVILLE NJ 08876 223295495 SUPPORT SMC NJ 501(C)(3) 509(A)(2) SHCC false SOMERSET HEALTH CARE AFFILIATES INC 110 REHILL AVENUE SOMERVILLE NJ 08876 222665685 SUPPORT SMC NJ 501(C)(3) 509(A)(2) SHCC false SOMERSET HEALTH CARE CORP 110 REHILL AVENUE SOMERVILLE NJ 08876 222765539 SUPPORT SMC NJ 501(C)(3) 509(A)(2) NA false SOMERSET MEDICAL CENTER FOUNDATION INC 110 REHILL AVENUE SOMERVILLE NJ 08876 223294408 SUPPORT SMC NJ 501(C)(3) 509(A)(1) SHCC false EOS INC 110 REHILL AVENUE SOMERVILLE NJ 08876 300382075 INACTIVE NJ N/A C CORP. NEW JERSEY HEALTH INC 110 REHILL AVENUE SOMERVILLE NJ 08876 223339824 INACTIVE NJ N/A C CORP. NEW JERSEY HEALTHCARE ASSOC PC 110 REHILL AVENUE SOMERVILLE NJ 08876 223339827 MEDICAL SVCS. NJ N/A C CORP. NJ MGT SERVICES ORGANIZATION 110 REHILL AVENUE SOMERVILLE NJ 08876 223339486 MANAGEMENT NJ N/A C CORP. SHC ENTERPRISES INC 110 REHILL AVENUE SOMERVILLE NJ 08876 222665595 MANAGEMENT NJ N/A C CORP. SOMERSET REALTY GROUP INC 110 REHILL AVENUE SOMERVILLE NJ 08876 223269525 REAL ESTATE NJ N/A C CORP. SOMERSET STAFFING CORP 110 REHILL AVENUE SOMERVILLE NJ 08876 113829651 STAFFING NJ N/A C CORP. WARREN INTERNAL MEDICINE PC 110 REHILL AVENUE SOMERVILLE NJ 08876 352366107 MEDICAL SVCS. NJ N/A C CORP. FRANKLIN MEDICAL GROUP PC 110 REHILL AVENUE SOMERVILLE NJ 08876 272209369 MEDICAL SVCS. NJ N/A C CORP. ACUCARE PHYSICIANS PC 110 REHILL AVENUE SOMERVILLE NJ 08876 223566010 MEDICAL SVCS. NJ N/A C CORP. SOMERSET MEDICAL CARE PARTNERS PC 110 REHILL AVENUE SOMERVILLE NJ 08876 383834110 MEDICAL SVCS. NJ N/A C CORP. 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