2013-11-13T10:48:52-06:00 2012-12-31 135565207 KPMG LLP 2 CENTRAL PARK PLAZA SUITE 1501 OMAHA NE 68102 990 2012-01-01 470687317 PHYSICIANS CLINIC INC PHYS 4023544851 8511 WEST DODGE ROAD OMAHA NE 68114 LINDA K BURT 4023544000 2013-11-13 1 P00223617 4023481450 2012 2016-03-07 17:11:31Z METHODIST PHYSICIANS CLINIC TODD D GRAGES 8511 W DODGE ROAD OMAHA NE 68114 128854698 0 X WWW.BESTCARE.ORG X 1985 NE TO PROVIDE HIGH QUALITY, COST EFFECTIVE HEALTHCARE. 8 5 1207 0 359492 77532 2855 671 119523130 127482478 -72889 3128 418950 347165 119872046 127833442 3053639 3452936 0 0 91729983 98915146 0 0 0 34485317 35208157 129268939 137576239 -9396893 -9742797 60199602 55524860 36670008 31463893 23529594 24060967 X METHODIST PHYSICIANS CLINIC PROVIDES ACCESSIBLE, QUALITY MEDICAL CARE THROUGH ITS INTEGRATED TEAM OF HEALTH PROFESSIONALS, INCLUDING SPECIALISTS IN FAMILY MEDICINE, INTERNAL MEDICINE, PEDIATRICS, OBSTETRICS AND GYNECOLOGY, SURGERY, ORTHOPEDIC SURGERY, DERMATOLOGY, URGENT CARE, IMAGING, CARDIOLOGY AND INFECTIOUS DISEASE. METHODIST PHYSICIANS CLINIC IS DEDICATED TO MAINTAINING A COMPREHENSIVE DELIVERY SYSTEM AND A LIFE-LONG PARTNERSHIP WITH ITS PATIENTS, FAMILIES AND THE COMMUNITY. 0 0 64440161 1595337 58576313 PHYSICIANS CLINIC PRIMARY CARE PROVIDERS SERVE AS THE PATIENT'S PERSONAL HEALTH ADVOCATE FOCUSING THEIR MEDICAL KNOWLEDGE AND EXPERTISE ON EACH PERSON'S UNIQUE HEALTH NEEDS. THEY OFFER COMPASSIONATE CARE AND PERSONAL ATTENTION - IN SICKNESS AND IN HEALTH.PRIMARY CARE MEDICINE PROVIDES CONTINUING AND COMPREHENSIVE HEALTH CARE FOR THE INDIVIDUAL AND FAMILY AND INCLUDES FAMILY MEDICINE, PEDIATRICS AND INTERNAL MEDICINE SPECIALTIES. PHYSICIANS CLINIC PHYSICIANS ARE KNOWLEDGEABLE IN THE BIOLOGICAL, CLINICAL AND BEHAVIORAL SCIENCES. THE SCOPE OF PRIMARY CARE MEDICINE ENCOMPASSES ALL AGES, BOTH GENDERS AND EACH ORGAN SYSTEM AND EVERY DISEASE ENTITY. PHYSICIANS CLINIC HOLDS PHYSICIANS TO THE HIGHEST QUALITY STANDARDS, REQUIRING BOARD CERTIFICATION OF ALL NEW FAMILY PHYSICIANS. PHYSICIANS CLINIC PHYSICIANS PROVIDE THE BEST IN HEALTH CARE FOR THE INDIVIDUAL AND THE INDIVIDUAL'S FAMILY MEMBERS FROM INFANCY TO THE GOLDEN YEARS.DURING 2012 THERE WERE 567,512 VISITS MADE TO THE VARIETY OF PHYSICIAN SPECIALITIES.PHYSICIANS CLINIC BEGAN ADOPTION OF A PATIENT-CENTERED MEDICAL HOME MODEL, ONE OF HEALTHCARE'S MOST IMPORTANT INNOVATIONS FOR IMPROVING PRIMARY CARE. PATIENT-CENTERED MEDICAL HOME IS A HEALTHCARE SETTING THAT FACILITATES PARTNERSHIPS BETWEEN INDIVIDUAL PATIENTS, THEIR PERSONAL PHYSICIANS AND, WHEN APPROPRIATE, THE PATIENT'S FAMILY. CARE IS FACILITATED BY REGISTRIES, INFORMATION TECHNOLOGY, HEALTH COACHES, DIABETIC EDUCATORS AND OTHER MEANS TO ASSURE THAT PATIENTS RECEIVE THE INDICATED CARE ON A TIMELY BASIS IN AN APPROPRIATE SETTING.PHYSICIANS CLINIC STARTED ADOPTING THE PATIENT-CENTERED MEDICAL HOME MODEL IN 2012 WITH THE GOAL OF BECOMING NCQA CERTIFIED. THE INITIAL FOCUS WAS ON DIABETES CHRONIC CARE WITH PLANS TO MOVE INTO HYPERTENSION AND STROKE CARE. BY THE END OF THE YEAR, THE RESULTS SHOWED A 60% IMPROVEMENT IN DIABETIC METRICS FOR THE EIGHT PRIMARY CARE SITES STARTED. PLANS ARE UNDERWAY TO ADD THE ADDITIONAL NINE PRIMARY CARE SITES IN 2013. 10923952 336037 8373084 METHODIST PHYSICIANS CLINIC PROVIDES SERVICES FROM ORTHOPEDIC PHYSICIANS WHO SPECIALIZE IN THE DIAGNOSIS AND TREATMENT OF DISEASES, INJURIES AND CONDITIONS OF THE MUSCULOSKELETAL SYSTEM. ORTHOPEDIC CONDITIONS INCLUDE ARTHRITIS, SPRAINS, FRACTURES, PULLED MUSCLES, BURSITIS, PULLED OR TORN LIGAMENTS AND TENDONS AS WELL AS SPORTS INJURIES.METHODIST PHYSICIANS CAREFULLY REVIEW THE PATIENTS' NEEDS TO DETERMINE THE BEST TREATMENT FOR ORTHOPEDIC CONDITIONS. IN MOST CASES, ORTHOPEDIC CONDITIONS CAN BE TREATED WITHOUT SURGERY. TREATMENT OPTIONS INCLUDE ANTI-INFLAMMATORY MEDICATIONS, INJECTIONS TO REDUCE INFLAMMATION AND PAIN, EXERCISE OR PHYSICAL THERAPY, BRACING OR SPLINTING AND IN SOME CASES SURGERY. PHYSICIANS CAN HELP THEIR PATIENTS PREVENT OR RECOVER FROM INJURIES ALLOWING PATIENTS TO MEET THEIR PERSONAL FITNESS AND HEALTH GOALS. 28284187 683932 28731613 OB-GYN SPECIALISTS AT PHYSICIANS CLINIC ARE FOCUSED ON THE HEALTH CARE NEEDS OF WOMEN TREAT AND THEM WITH THE SPECIAL CARE THEY DESERVE WHETHER FOR A ROUTINE OFFICE VISIT OR A HOSPITAL STAY. GYNECOLOGICAL SERVICES SPAN A SPECTRUM INCLUDING ANNUAL WELLNESS CHECKS, DIAGNOSTIC IMAGING, FAMILY PLANNING, HORMONAL DISORDERS, MENOPAUSAL MANAGEMENT, GYNECOLOGIC SURGERY AND LAPAROSCOPIC SURGERY. AT THE METHODIST PHYSICIANS CLINIC WOMEN'S CENTER, COMFORT AND CONVENIENCE FOR PATIENTS IS A MAIN CONCERN. PHYSICIANS CAN PERFORM MANY PROCEDURES IN STATE-OF-THE-ART EXAM ROOMS. EXPERIENCED OBSTETRICAL SPECIALISTS PROVIDE CARE IN ALL ASPECTS OF PREGNANCY FROM PRECONCEPTION TO POSTPARTUM CARE. PRENATAL VISITS INCLUDE EDUCATION TO PREPARE FOR PARENTHOOD. PHYSICIANS AND STAFF WORK WITH PATIENTS TO DEVELOP A BIRTH PLAN WITH THEIR PATIENTS.PATIENT VISITS IN THIS SPECIALTY FOR 2012 TOTALED 86,566. 26441963 837630 31801468 METHODIST PHYSICIANS CLINIC HAS TAKEN AN ACTIVE ROLE IN A NATIONAL CARDIOVASCULAR EDUCATION INITIATIVE KNOWN AS HEARTCARING. ONE OF MANY UNIQUE PROGRAM OFFERINGS AVAILABLE THROUGH THE SPIRIT HEALTH GROUP, HEARTCARING FOCUSES ON EDUCATING PRIMARY CARE PHYSICIANS ON GENDER DIFFERENTIATION IN CARDIOVASCULAR CARE. THESE PHYSICIANS, IN TURN, SHARE WITH WOMEN THROUGHOUT THE COMMUNITY THE KNOWLEDGE THEY HAVE GAINED WITH RESPECT TO THE UNIQUE RISK FACTORS, EARLY DETECTION AND APPROPRIATE TREATMENT OPTIONS ASSOCIATED WITH CARDIOVASCULAR DISEASE IN WOMEN. METHODIST PHYSICIANS CLINIC PRIMARY CARE PHYSICIANS PARTICIPATE ANNUALLY IN HEARTCARING TRAINING, THE INFORMATION FROM WHICH WAS SHARED AT COMMUNITY HEALTH FAIRS AND IN-CLINIC OPEN HOUSES.IN 2012 PHYSICIANS CLINIC PROVIDED CHARITY CARE OF $3,420,336 AND MEDICAID SERVICES PROVIDED AT REIMBURSEMENT LEVELS BELOW COST DEMONSTRATING ITS COMMITMENT TO HELP THOSE UNABLE TO AFFORD HEALTHCARE FOR A VARIETY OF REASONS. THERE WERE NEARLY 567,525 PATIENT VISITS AT 21 LOCATIONS IN OMAHA AND SURROUNDING COMMUNITIES IN THIS YEAR.PHYSICIANS CLINIC PROFESSIONALS GENEROUSLY GIVE OF THEIR TIME AND SERVICES TO SEVERAL AREA ORGANIZATIONS THAT PROVIDE CARE TO THE UNINSURED AND INDIGENT IN THE OMAHA AREA. TWO OF THESE ORGANIZATIONS - HOPE MEDICAL OUTREACH AND THE RENAISSANCE HEALTH CLINIC - CHARACTERIZE SUPPORT FROM METHODIST PHYSICIANS CLINIC PHYSICIANS AS OUTSTANDING, WITH MORE THAN 20 DIFFERENT CLINIC PHYSICIANS ROUTINELY ACCEPTING REFERRED PATIENTS FOR FURTHER TREATMENT. 26441963 837630 31801468 130090263 1 0 0 1 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 X 38 0 1207 1 1 1 0 0 0 0 0 0 0 0 0 X 8 5 0 0 0 0 1 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 X LINDA BURT 4023544851 8511 WEST DODGE ROAD OMAHA NE 68114 X EDSON L BRIDGES II 1.00 0.00 X X 0 0 0 TERENCE COONEY MD 40.00 0.00 X X 374623 0 77851 STEVEN WILLIAMS MD 40.00 0.00 X X 223070 0 60559 NP DODGE JR 1.00 0.00 X X 0 0 0 ALLAN G LOZIER 1.00 0.00 X 0 0 0 LARRY V PEARSON 1.00 0.00 X 0 0 0 RICHARD C HAHN 1.00 0.00 X 0 0 0 PATRICK MC CARVILLE 40.00 0.00 X 272037 0 71989 TODD D GRAGES 39.00 1.00 X 0 359258 84561 LINDA BURT 6.00 34.00 X 0 446423 89779 GEORGE DITTRICK 40.00 0.00 X 648288 0 47889 KAYVON IZADI 40.00 0.00 X 795868 0 43562 AJOY JANA 40.00 0.00 X 671839 0 61168 DARREN KEISER 40.00 0.00 X 958390 0 61378 SCOTT DEBATES 40.00 0.00 X 755669 0 60971 4699784 805681 659707 172 0 1 0 MCKESSON P O BOX 98347 CHICAGO IL 60693 PATIENT STATEMENT PREPARATION 707343 EARLY OUT SERVICES INC 5807 NORTH 102 STREET OMAHA NE 68134 SELF-PAY PRE-COLLECTION SVCS 673137 MEYERS-CARLISLE-LEAPLEY 14124 INDUSTRIAL ROAD OMAHA NE 68144 CONSTRUCTION SERVICES 350139 BROWNS MEDICAL IMAGING 14315 C CIRCLE OMAHA NE 68144 MEDICAL MAINTENANCE CONTRACTS 301591 GENERAL SERVICES BUREAU 5807 NORTH 102 STREET OMAHA NE 68134 COLLECTION SERVICES 227170 8 671 671 NET PATIENT SVC REV 621110 127482478 127482478 127482478 914 914 919385 933963 -14578 -14578 -14578 2214 0 2214 2214 2214 89544 87293 2251 2251 ON CALL SUPPORT SVCS 541900 204050 204050 TECHNICAL SUPPORT SVCS 541900 82526 82526 CONSULTING 541610 72916 72916 359492 127833442 127482478 359492 -9199 32600 32600 3420336 3420336 869730 869730 81172218 81172218 3229352 3229352 9471630 9471630 4172216 4172216 46995 46995 1850 1850 112362 112362 3306335 3306335 330797 330797 3355915 3355915 2357 2357 5824671 5824671 89176 89176 114473 114473 2601478 2601478 2093876 1069749 1024127 MEDICAL SUPPLIES 8079981 8079981 ALLOCATIONS 6300642 6300642 BILLING & COLLECTION SE 1354803 1354803 MISCELLANEOUS 952632 952632 639814 639814 137576239 130090263 7485976 0 9109515 3011886 19459252 22607695 207192 218348 1076076 1057150 720407 684401 68418702 40766745 29625972 27651957 1188 293423 60199602 55524860 23125050 18085492 4908439 5010756 2603036 2421521 6033483 5946124 36670008 31463893 X 23529594 24060967 23529594 24060967 60199602 55524860 X -9742797 10274170 X 0 1 X 1 0 X 2855 671 3526 97035586 100260130 108383451 119523130 127482478 552684775 97035586 100260130 108383451 119525985 127483149 552688301 0 0 0 552688301 324764 262367 558118 975090 920299 3040638 324764 262367 558118 975090 920299 3040638 2924 3796 70394 85928 78532 241574 97363274 100526293 109011963 120587003 128481980 555970513 0.99410 0.99490 0.00550 0.00480 X 0 0 0 0 0 1 1850 0 0 0 1850 0 EXPLANATION OF LOBBYING ACTIVITIES: PART II-B, LINE 1: A PORTION OF THE ANNUAL DUES PAID TO THE AMERICAN MEDICAL GROUP ASSOCIATION IS ATTRIBUTABLE TO LOBBYING ACTIVITIES. 3876290 3876290 41892657 22723863 19168794 22649755 18042882 4606873 27651957 LIABILITY FOR OBRA (PHYS RET) 5946124 5946124 X DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X, LINE 2: PHYSICIANS CLINIC INC. RECOGNIZES THE EFFECT OF INCOME TAX POSITIONS ONLY IF THOSE POSITIONS ARE MORE LIKELY THAN NOT OF BEING SUSTAINED. RECOGNIZED INCOME TAX POSITIONS ARE MEASURED AT THE LARGEST AMOUNT THAT IS GREATER THAN 50% LIKELY OF BEING REALIZED. CHANGES IN RECOGNITION OR MEASUREMENT ARE REFLECTED IN THE PERIOD IN WHICH THE CHANGE IN JUDGMENT OCCURS. MANAGEMENT DETERMINED THAT THERE ARE NO INCOME TAX POSITIONS REQUIRING RECOGNITION IN THE CONSOLIDATED FINANCIAL STATEMENTS. 0 NEBRASKA METHODIST HOSPITAL FOUNDATION 8511 W DODGE ROAD OMAHA NE 68114 470595345 501(C)(3) 25000 IMPROVE HEALTH OF COMMUNITY 1 FINANCIAL ASSISTANCE 15701 3420336 BOOK UNINSURED/UNDERINSURED PATIENT FINANCIAL ASSISTANCE X X X X 0 1 0 0 0 1 0 0 0 TERENCE COONEY MD 339206 0 34643 0 774 0 60111 0 20039 0 454773 0 0 0 STEVEN WILLIAMS MD 185083 0 18776 0 19211 0 47622 0 13195 0 283887 0 0 0 PATRICK MC CARVILLE 246817 0 14318 0 10902 0 50046 0 22202 0 344285 0 8658 0 TODD D GRAGES 0 309416 0 0 0 49842 0 68465 0 17173 0 444896 0 0 LINDA BURT 0 351687 0 0 0 94736 0 76099 0 14757 0 537279 0 72560 GEORGE DITTRICK 552175 0 76585 0 19528 0 30578 0 17570 0 696436 0 0 0 KAYVON IZADI 794662 0 1028 0 178 0 30936 0 14925 0 841729 0 0 0 AJOY JANA 653631 0 1028 0 17180 0 44857 0 18610 0 735306 0 0 0 DARREN KEISER 941682 0 1028 0 15680 0 43569 0 20108 0 1022067 0 0 0 SCOTT DEBATES 673457 0 81951 0 261 0 43162 0 20108 0 818939 0 0 0 PART I, LINE 4B THE FOLLOWING INDIVIDUALS PARTICIPATED IN A NONQUALIFIED PLAN DURING 2012 AND RECEIVED CONTRIBUTIONS, PLAN ACCRUALS OR PLAN DISTRIBUTIONS IN THE FOLLOWING AMOUNTS: TERENCE COONEY, MD $18,760 ACCRUAL PATRICK MCCARVILLE MD $7,383 ACCRUAL; $8,658 PLAN DISTRIBUTION TODD GRAGES, $45,080 ACCRUAL LINDA BURT, $58,333 ACCRUAL; $72,560 PLAN DISTRIBUTION SCOTT DEBATES, MD $18,257 ACCRUAL GEORGE DITTRICK MD $12,578 ACCRUAL KAYVON IZADI MD $13,255 ACCRUAL AJOY JANA MD $19,064 ACCRUAL DARREN KEISER, MD $18,553 ACCRUAL PART I, LINE 6 BONUSES ARE PAID TO PHYSICIANS BASED ON TWO SEPARATE CRITERIA. THE FIRST IS BASED ON SUBGROUPS WHICH IDENTIFY AND PAY BONUSES BASED ON THE BOTTOMLINE RESULTS AS COMPARED TO PRESET TARGETS FOR THESE SUBGROUPS AND DISTRIBUTED EQUALLY OR ON PERSONAL PRODUCTION TO THE PHYSICIANS OF THAT SUBGROUP. THE SECOND IS BASED ON THE OVERALL CLINIC RESULTS AS COMPARED TO THE OVERALL CLINIC BUDGET WHICH IS DISTRIBUTED TO EACH PHYSICIAN EQUALLY. FORM 990, PART V, LINE 2B THE PAYROLL SYSTEM FOR PHYSICIANS CLINIC IS BEING HANDLED BY A COMMON PAYMASTER, NEBRASKA METHODIST HEALTH SYSTEM INC. ALL W-2 FORMS ARE ISSUED UNDER THE TAX IDENTIFICATION NUMBER OF NEBRASKA METHODIST HEALTH SYSTEM. ALL REQUIRED FEDERAL EMPLOYMENT TAX RETURNS WERE FILED BY NEBRASKA METHODIST HEALTH SYSTEM. WAGES AND BENEFITS SHOWN IN THE FORM 990 ARE ACTUAL WAGES ASSOCIATED WITH PHYSICIANS CLINIC PERSONNEL. FORM 990, PART VI, SECTION A, LINE 6 THE SOLE MEMBER OF PHYSICIANS CLINIC INC. IS NEBRASKA METHODIST HEALTH SYSTEM, INC., A NEBRASKA NOT-FOR-PROFIT CORPORATION. FORM 990, PART VI, SECTION A, LINE 7A NEBRASKA METHODIST HEALTH SYSTEM, INC., THE MEMBER, HAS THE POWER TO ELECT AND REMOVE THE DIRECTORS OF THE CORPORATION. THE NEBRASKA METHODIST HEALTH SYSTEM ALSO HAS THE POWER TO APPOINT AND REMOVE THE PERSON DESIGNATED AS THE CORPORATION'S PRESIDENT BY THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7B NEBRASKA METHODIST HEALTH SYSTEM, INC., THE MEMBER, HAS THE POWER TO APPROVE OR REFUSE TO APPROVE ANY AMENDMENT TO THE CORPORATION'S ARTICLES OF INCORPORATION OR THE BYLAWS OR ANY ACTION REQUIRED TO BE SUBMITTED TO AND APPROVED BY THE VOTING MEMBERS OF A NONPROFIT CORPORATION UNDER THE NEBRASKA NONPROFIT CORPORATION ACT. METHODIST HEALTH SYSTEM ALSO HAS APPROVAL AUTHORITY WITH REGARD TO THE ANNUAL BUDGET, CAPITAL EXPENDITURES IN EXCESS OF ESTABLISHED THRESHOLDS, THE MISSION STATEMENT, LONG-RANGE PLAN, INCURRENCE OF DEBT AND ESTABLISHMENT OF A SUBSIDIARY OR PARTICIPATION AS A SHAREHOLDER, PARTNER OR EQUITY MEMBER OF ANY OTHER ENTITY. FORM 990, PART VI, SECTION B, LINE 11 PHYSICIANS CLINIC INC. IS AN AFFILIATE ORGANIZATION OF NEBRASKA METHODIST HEALTH SYSTEM, INC. POLICIES ARE CENTRALIZED AT NEBRASKA METHODIST HEALTH SYSTEM INC. PRIOR TO FILING THE FORM 990, A COPY IS PROVIDED TO THE AUDIT COMMITTEE OF NEBRASKA METHODIST HEALTH SYSTEM. THE COMMITTEE IS GIVEN AN OPPORTUNITY TO ASK QUESTIONS OR REQUEST MORE INFORMATION AT A SUBSEQUENT MEETING. INFORMATION FOR THE FORM 990 IS GATHERED FROM APPROPRIATE RESPONSIBLE PARTIES THROUGHOUT THE ORGANIZATION, INCLUDING THE ORGANIZATION'S HUMAN RESOURCES, FINANCE AND COMPLIANCE DEPARTMENTS. THE RETURN GETS A DETAIL TIE-OUT AND DIRECTOR OF ACCOUNTING REVIEW. IT IS REVIEWED BY EXTERNAL TAX ADVISORS AND HAS A FINAL REVIEW BY THE CHIEF FINANCIAL OFFICER FOR NEBRASKA METHODIST HEALTH SYSTEM AND THE ORGANIZATION'S CHIEF EXECUTIVE OFFICER. FORM 990, PART VI, SECTION B, LINE 12C AN ANNUAL QUESTIONNAIRE IS SENT TO ALL OFFICERS, DIRECTORS AND KEY EMPLOYEES PURSUANT TO THE METHODIST HEALTH SYSTEM CONFLICTS OF INTEREST POLICY WHICH REQUIRES THE DISCLOSURE OF ALL CONFLICTS OF INTEREST, NOT JUST FINANCIAL, THAT COULD GIVE RISE TO CONFLICTS WITH THE ORGANIZATION. SHOULD A CONFLICT OF INTEREST BE IDENTIFIED, THE OFFICER, DIRECTOR OR KEY EMPLOYEE IS NOT PERMITTED TO VOTE OR USE PERSONAL INFLUENCE ON THE MATTER AND IS NOT COUNTED IN DETERMINING A QUORUM FOR A MEETING AT WHICH THE MATTER IS DISCUSSED. A POTENTIAL CONFLICT OF INTEREST, ONCE IDENTIFIED, MUST BE EVALUATED ON A CASE BY CASE BASIS. IN ORDER TO APPROVE THE TRANSACTION WHICH INVOLVES A DIRECT CONFLICT OF INTEREST, THE BOARD MUST FIRST FIND, BY MAJORITY VOTE OF DIRECTORS FOR WHOM NO CONFLICT EXISTS, AT A MEETING AT WHICH A QUORUM IS PRESENT, THAT THE ARRANGEMENT OR TRANSACTION IS IN THE BEST INTEREST OF PHYSICIANS CLINIC AND/OR METHODIST HEALTH SYSTEM AFFILIATES, IS FAIR AND REASONABLE, AND AFTER INVESTIGATION, THE DIRECTORS HAVE DETERMINED THAT A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT CANNOT BE OBTAINED WITH REASONABLE EFFORTS UNDER THE CIRCUMSTANCES. FORM 990, PART VI, SECTION B, LINE 15 PHYSICIANS CLINIC IS AN AFFILIATED MEMBER OF THE NEBRASKA METHODIST HEALTH SYSTEM. METHODIST HEALTH SYSTEM RETAINS AN INDEPENDENT CONSULTANT TO REVIEW ALL OFFICER COMPENSATION FOR EACH AFFILIATE. UNDER THIS PROCESS, MARKET DATA ON COMPENSATION IS GATHERED AND ANALYZED AND COMPENSATION RANGES ARE SET. THIS INFORMATION IS THEN PROVIDED TO THE COMPENSATION COMMITTEE OF THE BOARD OF THE NEBRASKA METHODIST HEALTH SYSTEM INC. ALL OFFICER COMPENSATION IS REVIEWED, EVALUATED AND APPROVED BY THIS COMMITTEE. PHYSICIANS CLINIC(PCI) ADMINISTRATION MAINTAINS A WRITTEN PHYSICIAN COMPENSATION PLAN THAT HAS BEEN REVIEWED BY OUTSIDE COUNSEL AND APPROVED BY PCI ADMINISTRATION AND THE PCI BOARD OF DIRECTORS. THE PLAN DEFINES THE METHODOLOGY FOR DETERMINING PHYSICIAN COMPENSATION AND SITE FINANCIAL ACCOUNTABILITY BONUS. THE PLAN ALSO ADDRESSES THE PAYMENT OF A MONTHLY DRAW TO PHYSICIANS, SALARY GUARANTEES AND TIME-OFF PROVISIONS. INDEPENDENT MARKET REVIEWS AND INTERNAL ANALYSIS OF PHYSICIAN COMPENSATION ARE REGULARLY PERFORMED. THE COMPENSATION CONSULTING FIRM OF SULLIVAN COTTER & ASSOCIATES HAS BEEN ENGAGED BY PHYSICIANS CLINIC ADMINISTRATION TO PERFORM MARKET REVIEWS ON A REGULAR BASIS. FORM 990, PART VI, SECTION C, LINE 18 THE FORM 1023 WAS FILED PRIOR TO 7/15/87 AND NEED NOT BE MADE PUBLICLY AVAILABLE. A COPY OF THE IRS DETERMINATION LETTER WILL BE PROVIDED UPON WRITTEN REQUEST. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION DOES NOT MAKE THESE DOCUMENTS SEPARATELY AVAILABLE TO THE PUBLIC. HOWEVER, THE AMENDED ARTICLES OF INCORPORATION OF THE ORGANIZATION ARE AVAILABLE THROUGH THE NEBRASKA SECRETARY OF STATE'S WEBSITE. THE CONFLICT OF INTEREST POLICY IS DISTRIBUTED TO ALL MEMBERS OF THE BOARD OF DIRECTORS AND EMPLOYEES. FINANCIAL INFORMATION IS AVAILABLE TO THE PUBLIC THROUGH THE IRS FORM 990 AND FORM 990-T. THE ORGANIZATION ALSO CONTRIBUTES INFORMATION REGARDING COMMUNITY BENEFITS IT PROVIDES AS PART OF THE METHODIST HEALTH SYSTEM'S ANNUAL COMMUNITY BENEFIT REPORT. THE REPORT IS AVAILABLE TO THE PUBLIC ON THE WEBSITE, WWW.METHODISTCHART.ORG. AVERAGE HOURS FOR RELATED ORGANIATIONS FORM 990, PART VII LINDA BURT, VICE PRESIDENT OF FINANCE AND CFO FOR THE NEBRASKA METHODIST HEALTH SYSTEM, IS A FULLTIME EMPLOYEE OF NEBRASKA METHODIST HEALTH SYSTEM. HER AVERAGE HOURS PER WEEK ARE ALLOCATED AMONG THE ENTITIES THAT COMPRISE THE NEBRASKA METHODIST HEALTH SYSTEM. AVERAGE HOURS FOR RELATED ORGANIZATIONS FORM 990, PART VII TODD GRAGES IS A KEY EMPLOYEE OF NEBRASKA METHODIST HEALTH SYSTEM AND IS ASSIGNED FULLTIME DUTIES AS PRESIDENT OF PHYSICIANS CLINIC INC. SALARY AND BENEFITS ARE INCLUDED IN ALLOCATIONS. COMPENSATION BY ORGANIZATION OR RELATED ORGANIZATIONS FORM 990, PART VII, SECTION A, COLUMN D & E INDIVIDUALS WHO HAVE COMPENSATION FROM THE ORGANIZATION OR A RELATED ORGANIZATION ARE EMPLOYEES OF THE RESPECTIVE ORGANIZATION. THESE INDIVIDUALS DO NOT RECEIVE COMPENSATION FOR SERVICES ON THE BOARD OF DIRECTORS. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: TRANSFERS FROM AFFILIATES 10,274,170. NEBRASKA METHODIST HEALTH SYSTEM INC 8511 W DODGE ROAD OMAHA NE 68114 470639839 ADMINISTRATIVE SUPPORT NE 501(C)(3) L11: III-FI N/A 0 NEBRASKA METHODIST HEALTH SYSTEM SELF INSURANCE TRUST FUND 8511 W DODGE ROAD OMAHA NE 68114 363699672 INSURANCE NE 501(C)(3) L11: III-FI NEBRASKA METHODIST HEALTH SYSTEM 0 NEBRASKA METHODIST HOSPITAL 8511 W DODGE ROAD OMAHA NE 68114 470376604 LICENSED HOSPITAL NE 501(C)(3) L3 NEBRASKA METHODIST HEALTH SYSTEM 0 REAL ESTATE HOLDINGS 8511 W DODGE ROAD OMAHA NE 68114 470649790 PROPERTY MANAGEMENT NE 501(C)(2) NEBRASKA METHODIST HEALTH SYSTEM 0 NEBRASKA METHODIST HOSPITAL FOUNDATION 8511 W DODGE ROAD OMAHA NE 68114 470595345 SUPPORT OF NEBRASKA METHODIST HOSPITAL NE 501(C)(3) L7 NEBRASKA METHODIST HEALTH SYSTEM 0 NEBRASKA METHODIST COLLEGE OF NURSING & ALLIED HEALTH 8511 W DODGE ROAD OMAHA NE 68114 470724387 NURSING & HEALTH EDUCATION FACILITY NE 501(C)(3) L2 NEBRASKA METHODIST HOSPITAL 0 JENNIE EDMUNDSON MEMORIAL HOSPITAL 933 E PIERCE STREET COUNCIL BLUFFS IA 51503 420680355 LICENSED HOSPITAL IA 501(C)(3) L3 NEBRASKA METHODIST HEALTH SYSTEM 0 JENNIE EDMUNDSON MEMORIAL HOSPITAL FOUNDATION 933 E PIERCE STREET COUNCIL BLUFFS IA 51503 421439454 SUPPORT OF JENNIE EDMUNDSON MEMORIAL HOSPITAL IA 501(C)(3) L11, I JENNIE EDMUNDSON MEMORIAL HOSPITAL 0 SHARED SERVICE SYSTEMS INC 8511 W DODGE ROAD OMAHA NE 68114 470649534 MEDICAL SUPPLY DISTRIBUTION & LAUNDRY NE NEBRASKA METHODIST HEALTH SYSTEM C 0 METHODIST HEALTH PARTNERS 8511 W DODGE ROAD OMAHA NE 68114 470797563 MANAGED CARE CONTRACTING NE NEBRASKA METHODIST HEALTH SYSTEM C 0 0 1 1 0 1 0 0 0 1 0 1 0 0 1 1 0 0 0 1