2013-11-14T15:39:23-06:00 2012-12-31 861065772 Deloitte Tax LLP 701 Poydras St Suite 4200 New Orleans LA 701394200 990 2012-01-01 720502505 Ochsner Clinic Foundation OCHS 5048423400 1514 Jefferson Highway New Orleans LA 70121 Bobby C Brannon 5048423400 2013-11-14 1 Peter A Vernaci P00353578 5045812727 2012 2016-02-25 16:41:14Z Ochsner Medical Center Patrick J Quinlan MD 1514 Jefferson Highway New Orleans LA 70121 5077920967 0 X www.ochsner.org X 1944 LA Patient Care, Graduate Medical Education, & Medical Research 19 8 13689 983 1832294 -140472 7067483 7751849 4489863395 4773939494 12041325 35407059 4601122 12510234 4513573325 4829608636 73480 58710 0 0 858155399 911097681 0 0 1916208 3607654854 3906208612 4465883733 4817365003 47689592 12243633 1526123835 1520412322 944952291 951420627 581171544 568991695 X We Serve, Heal, Lead, Educate and Innovate. Ochsner will be a global medical and academic leader who will save and change lives. We will shape the future of healthcare through our integrated health system, fueled by the passion and strength of our diversified team of physicians and employees. 0 0 4432159514 58710 4740117934 Patient Care/Patient Medical Services: Ochsner Clinic Foundation consists of four hospitals at six campuses and many clinical locations. Served 89,591 inpatients resulting in 451,488 patient days. Emergency Room visits totaled 213,058. The number of births totaled 5,354. Outpatient hospital visits totaled 398,083. Physician clinic visits total 1,413,090. 356 patients received organ transplants. 19191037 12713295 Professional Education: Ochsner Clinic Foundation ("OCF") operates one of the nation's largest accredited non-university based graduate medical education programs. In 2012, 240 residents and fellows were appointed to 20 medical and surgical programs sponsored by OCF. Thirtyone (31) additional specialty programs assigned 317 unique residents and fellows (67 scheduled FTEs/mo. on average) to OCF for training through combined programs or joint affiliations with the two local medical schools, LSU & Tulane. All 51 programs are accredited by the Accreditation Council for Graduate Medical Education. Also, over 667 local, regional, national and international medical students chose OCF for core rotations and clinical electives. In 2009, Ochsner opened the Ochsner Clinical School in partnership with the University Queensland, Australia ("UQ"), providing expanded opportunity for medical students for U.S. citizens. During the school year, 149 UQ students rotated through the University of Queensland, Ochsner Clinical School for their clinical clerkships. Through a consortium relationship with Our Lady of Holy Cross College, 38 students in radiologic technology and respiratory are appointed for clinical training. Additionally, a total of 1,766 unique allied health students, nursing and advanced practice clinician students participate in clinical education across the Ochsner System in 2012: 470 unique allied health students, 1,116 unique nursing students, and 140 unique advanced practice clinician students. In aggregate, across all clinical education endeavors, 94 schools and 108 programs were represented for a total of 3,112 student training encounters encompassing 5,014 student months of training across 15 Ochsner clinical sites. 9487330 13898301 Elmwood Fitness Center: provides fitness services to patients and members of the public. 8789527 3365179 Medical Research: Ochsner Clinic Foundation operates five basic science research laboratories with over 350 active clinical trials in 27 clinical areas. Approximately 1,600 patients participate in Ochsner Clinical research annually. Every, clinical trial is overseen by the Ochsner Institutional Review Board, which provides oversight of the safety of the human subjects participating in clinical trials. Established the Center for Health Research in 2006, the mission of which is to advance knowledge, improve clinical practice, and the health and well-being of the community. From inception, over 2,000 patients have been involved in outcomes based research conducted by the center. 2047230 3294353 Rent-physical plant: Ochsner Clinic Foundation rents its physical plant to related 501(c)(3) organizations. The majority of the rental is to Brent House Corporation, a wholly-owned subsidiary and exempt 501(c)(3) organization. Brent House fully reimburses Ochsner for expenses related to the Hotel. 1047714 158928 Ochsner maintains a free parking garage for employees and patients. Revenue is attributable to the optional valet parking service, which is offered for the convenience of Ochsner's patients. 391504 Equity Income: Equity Income from Joint Venture providing medical care. 11884471 7209964 4472722352 1 1 0 1 0 0 0 0 0 1 1 1 0 0 1 0 0 1 0 0 1 0 0 0 1 0 1 1 1 0 1 1 0 0 0 0 0 1 0 0 1 1 1 0 0 0 1 1 1 1 0 0 1 875 0 1 13689 1 1 1 1 CJ EI 0 0 0 1 1 0 0 0 0 X 19 8 1 0 0 0 1 1 0 1 1 0 1 1 1 1 1 1 1 0 1 1 1 0 X Bobby C Brannon 5048423400 1514 Jefferson Highway New Orleans LA 70121 X David E Beck MD 48.00 2.00 X 583978 0 66290 Joseph L Breault MD 47.00 3.00 X 219730 0 66955 Joseph R Dalovisio MD 48.00 2.00 X 360138 0 71390 Francis Dauterive MD 48.00 2.00 X 349907 0 55511 Angele Davis 2.00 3.00 X 0 0 0 William H Hines 2.00 3.00 X 0 0 0 Dennis Kay MD 48.00 2.00 X 633846 0 56015 Yvens G Laborde MD 47.00 3.00 X 341202 0 60955 R Parker LeCorgne 2.00 3.00 X 0 0 0 George Loss MD 47.00 3.00 X 775940 0 68152 James E Maurin 2.00 3.00 X X 0 0 0 Suzanne T Mestayer 2.00 3.00 X 0 0 0 Richard Milani MD 47.00 3.00 X 569397 0 88158 Jefferson G Parker 2.00 3.00 X 0 0 0 Robert J Patrick 2.00 3.00 X 0 0 0 Patrick J Quinlan MD 2.00 48.00 X X 0 1300842 58308 Steve Stumpf 2.00 3.00 X 0 0 0 Jose S Suquet 2.00 3.00 X 0 0 0 Andrew B Wisdom 2.00 3.00 X 0 0 0 Bobby C Brannon 45.00 5.00 X 593157 0 39935 Michael F Hulefeld 2.00 48.00 X 0 457457 41943 Scott J Posecai 2.00 48.00 X 0 664186 54830 Warner L Thomas 2.00 48.00 X 0 1099519 60905 Joseph E Bisordi MD 1.00 49.00 X 0 699603 54174 Polly Davenport 50.00 0.00 X 322528 0 26774 Nancy L Davis 1.00 49.00 X 0 274158 52995 Steven B Deitelzweig MD 49.00 1.00 X 384092 0 52261 Mark French 50.00 0.00 X 240455 0 41211 Richard D Guthrie Jr MD 49.00 1.00 X 0 427650 72022 Robert Hart MD 49.00 1.00 X 327655 0 48362 Ernest E Martin Jr MD 49.00 1.00 X 336596 0 49997 J Eric McMillen 50.00 0.00 X 172182 0 41441 Armin Schubert MD 50.00 0.00 X 634412 0 60439 Beth Walker 50.00 0.00 X 171600 0 24351 Mitchell Wasden 50.00 0.00 X 168541 0 24724 Robert Wolterman 1.00 49.00 X 0 334460 35175 Cuong Bui MD 50.00 0.00 X 801488 0 21673 Gregory J Eckholdt MD 50.00 0.00 X 816489 0 67118 Deryk G Jones MD 50.00 0.00 X 859315 0 60721 Denis Mello MD 50.00 0.00 X 986700 0 42906 Jose Mena MD 50.00 0.00 X 984760 0 54758 Scott Boudreaux 0.00 50.00 X 27848 288154 41405 Lisa S Colletti 50.00 0.00 X 233282 0 25523 Patrick Shannon 50.00 0.00 X 135748 57471 25383 12030986 5603500 1712760 1261 1 1 0 BRICE BUILDING CO LLC 201 Sunbelt Pkwy Birmingham AL 35211 Construction 4336538 HOSPITAL HOUSEKEEPING LTD 216 E 4TH ST AUSTIN TX 78701 Housekeeping 3854276 RCOA IMAGING SERVICES INC 16110 JOG ROAD SUITE 200 DELRAY BEACH FL 33446 Radiology Service 3366725 ARX 800 CRESCENT CENTRE DR STE 500 FRANKLIN TN 37067 Billing and collections 3263588 LOUISIANA STATE UNIVERSITY 433 BOLIVAR ST NEW ORLEANS LA 70112 Purchased Physician Services 2663481 108 64655 939834 2836054 3911306 388483 7751849 Patient Service Rev. 621110 4740276862 4734605270 444898 5226694 Elmwood Fitness Center 713940 13898301 13898301 Education Revenue 611600 12713295 12713295 Research Revenue 900099 3365179 3365179 Rent-Physical Plant 531120 3294353 3294353 391504 391504 4773939494 6744997 -127898 6872895 201730 201730 3510143 1216313 2293830 2293830 2293830 268860111 165313 240012933 350429 28847178 -185116 28662062 28662062 450396 939834 555900 -105504 -105504 16296934 6176756 10120178 1515294 8604884 4829608636 4764973549 1832294 55050944 58710 58710 8128277 4367564 3760713 583104 448548 134556 779870985 647162842 131689604 1018539 12910636 10087340 2790320 32976 65668641 51428846 14074621 165174 43936038 37795289 6124051 16698 21162039 2043694 18826347 291998 1886852 26675 1860177 105414 98175 7198 41 316448 316448 901527 901527 75263974 34215859 40985258 62857 1234485 972187 262042 256 303161076 294452695 8634649 73732 6976480 1812877 5163483 120 61102294 25509576 35400359 192359 1010491 658871 343992 7628 2842283 2011676 830607 25886379 25685181 201198 64871370 33148880 31687445 35045 25763842 25225567 538275 Discounts & Allowances 2893210444 2893194844 15600 Outside Provider 223551174 223551174 Bad Debt Expense 70113211 66827571 3285640 Charity Care 59937173 59937173 66911656 32000538 34892333 18785 4817365003 4472722352 342726443 1916208 124051316 48054996 160302167 98968251 6424496 6461859 184405247 216105099 1000000 1005818 180709874 222772571 30174871 30047767 18719991 18518475 1217300189 764129209 435820950 453170980 244362444 212541227 79044379 152095717 54510334 54510334 6597766 6159228 1526123835 1520412322 163720758 142314599 7852302 11391936 513874502 509447746 75266169 77281925 184238560 210984421 944952291 951420627 X 528367026 513103648 30251997 33224097 22552521 22663950 581171544 568991695 1526123835 1520412322 X 12243633 -7647705 -16775777 X X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 698827 698827 4472023525 4472722352 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 615951 696090 642630 698827 2653498 250000 250000 250000 250000 1000000 1500000 26449386 112431 1850353 408178 28003991 29000762 113975 -1274665 1390686 26449386 27544777 281209 2639534 1464758 29000762 23379373 1367746 3724506 926848 27544777 30449080 370760 -6357722 1082745 23379373 0.08930 0.80930 0.10140 1 0 5312730 38620897 43933627 770412 645965433 391624968 255110877 60570106 32673768 27896338 406174596 315574828 90599768 59886015 24255645 35630370 453170980 Comgest Growth Emerging Market 7217472 F State Street US Govt Credit Index 45741389 F AETOS Distressed 4800208 F AETOS Prime 4320455 F Arbor Small Cap Growth Common Fund 6047877 F City of London Global Emerging Markets 16802876 F Wellington Strat Real Asset 20961404 F Park Street Private Equity Fund VI 1625788 C Commonfund Capital International Partners V 862024 C Commonfund Capital International Partners VI 1081789 C Commonfund Capital International Partners VII 511891 C Commonfund Capital Natural Resources VI 861992 C Commonfund Capital Natural Resources VII 3345321 C Commonfund Capital Natural Resources VIII 1686193 C Commonfund Capital Private Equity Partners VI 807267 C Commonfund Capital Private Equity Partners VII 570964 C Commonfund Capital Ventures Partners VII 468429 C Commonfund Capital Ventures Partners VIII 1308556 C Commonfund Capital Ventures Partners IX 1155209 C J O Hambro Global Select Fund 15255000 F Lexington Capital Partners VII (Offshore) 1665917 C Overstone Global Equity Fund 14997696 F 152095717 Pension Obligations 155210792 Deposits and Advances 18000000 Credit Balances 14434050 Investment in Brent House Hotel (Equity Basis) 8355241 Lease Liability 7479020 Liability Trust Fund 3841240 Worker's Compensation Liability 2347697 Contract Retentions 691798 Split Interest Liability 622583 Miscellaneous 2000 210984421 X Description of Intended Use of Endowment Funds: Part V, Line 4: In general, the Organization's Endowment Funds support the following initiatives: Medical Research, Graduate Medical Education Program, Medical Lectureships, Fellowship Awards, Anti-Smoking Initiative, Pastoral Care, Alzheimers care, Nursing Education, and Advancement in Anesthesia. Description of Uncertain Tax Positions Under FIN 48: Part X, Line 2: Ochsner Clinic Foundation has reviewed its tax positions and concluded that there are no significant uncertain tax positions requiring recognition in its financial statements under FIN 48. Caribbean 0 0 Investments 10787000 Europe 0 0 Investments 37470000 0 0 0 0 0 0 48257000 0 48257000 1 0 0 1 0 0 Ochsner Goes Pink 976053 669162 306891 0 16627 61408 108933 172449 Ochsner Run 132980 105708 27272 0 21265 4150 47564 7 281197 164964 116233 11421 11942 54549 45592 1390230 939834 450396 28048 94615 167632 265605 555900 -105504 1 1 X 1 X 1 X 380.000000000000 1 1 1 0 1 0 40420000 40420000 0.00850 40420000 40420000 0.00850 21113080 158474 20954606 0.00440 12950000 12950000 0.00270 228236 228236 0.00000 6114898 6114898 0.00130 314152 141929 172223 0.00000 40720366 300403 40419963 0.00840 81140366 300403 80839963 0.01690 1000 500 500 0.00000 163566 25412 138154 0.00000 21993 10997 10996 0.00000 945 945 0.00000 124505 124505 0.00000 312009 36909 275100 0 24218987 210625991 202255618 8370373 X 1 1 6 1 Ochsner Medical Center

1516 Jefferson Highway New Orleans LA 70121

http://www.ochsner.org/locations/ochsn X X X X X A 2 Ochsner Medical Ctr-West Bank Campus

2500 Belle Chasse Hwy Gretna LA 70056

http://www.ochsner.org/locations/west_ Satellite of Ochsner Medical Center 3 Ochsner Medical Center-Baton Rouge

17000 Medical Center Blvd Baton Rouge LA 70816

http://www.ochsner.org/locations/baton X X X 4 Ochsner Medical Center-North Shore

100 Medical Center Dr Slidell LA 70461

http://www.ochsner.org/locations/north X X X 5 Ochsner St Anne General Hospital

4608 Hwy 1 Raceland LA 70394

http://www.ochsner.org/locations/st_an X X X 6 Ochsner Medical Ctr-Elmwood Campus

1121 N Clearview Parkway Jefferson LA 70121

Satellite of Ochsner Medical Center A Ochsner Medical Ctr-West Bank Campus 2 1 1 200.000000000000 1 380.000000000000 1 X 1 1 X X 1 X X 1 X X X 1 X 0 0 Ochsner St Anne General Hospital 5 1 1 200.000000000000 1 380.000000000000 1 X 1 1 X X 1 X 0 1 X 0 0 Ochsner Medical Center-Baton Rouge 3 1 1 200.000000000000 1 380.000000000000 1 X 1 1 X X 1 X X 1 X X X 1 X 0 0 Ochsner Medical Center-North Shore 4 1 1 200.000000000000 1 380.000000000000 1 X 1 1 X X 1 X X 1 X X X 1 X 0 0 Facility Reporting Group - A 1 1 200.000000000000 1 380.000000000000 1 X 1 1 X X 1 X X 1 X X X 1 X 0 0 48 Ochsner Health Center-Main Campus

1514 Jefferson Hwy New Orleans LA 70121

Clinic Ochsner Health Center-Baton Rouge

9001 Summa Avenue Baton Rouge LA 70809

Clinic Ochsner Health Center-Covington

1000 Ochsner Blvd Covington LA 70433

Clinic Ochsner Women's Health Center-Gretna

120 Meadowcrest Street Gretna LA 70056

Clinic Ochsner Health Center-Slidell

2750 E Gause Blvd Slidell LA 70461

Clinic Ochsner Health Center-Ochsner Baptist

2800 Napoleon Ave New Orleans LA 70115

Clinic Ochsner Health Center-Baton Rouge

16777 Medical Center Dr Baton Rouge LA 70816

Clinic Ochsner Health Center-Metairie

2005 Veterans Memorial Blvd Metairie LA 70002

Clinic Ochsner Health Center-Slidell

103 104 Medical Center Drive/ 1850 E Ga Slidell LA 70461

Clinic Ochsner Health Center-Marrero

4225 Lapalco Blvd Marrero LA 70072

Clinic Ochsner Health Center-Kenner

2120 Driftwood Blvd Kenner LA 70065

Clinic Ochsner Health Center-Hammond

41676 Veterans Ave Hammond LA 70403

Clinic Ochsner Medical Center for Children

1315 Jefferson Hwy New Orleans LA 70121

Clinic Ochsner Wmn & Chldrn Hlth Ctr-Covington

101 E Judge Tanner Blvd Ste 301 302 Covington LA 70443

Clinic Ochsner Health Center-Elmwood

1201 1221 S Clearview Pkwy New Orleans LA 70123

Clinic Ochsner Children's Health Ctr-Metairie

4901 Veterans Memorial Blvd Metairie LA 70006

Clinic Ochsner Lieselotte Tansey Breast Center

1319 Jefferson Hwy New Orleans LA 70121

Clinic Ochsner St Anne Gnrl Behavrl Hlth Ctr

4608 Hwy 1 Raceland LA 70394

Clinic Ochsner Children's Health Center-Slidell

2370 E Gause Blvd Slidell LA 70461

Clinic Ochsner St Anne Gnrl Women's Health Ctr

104 Acadia Park Dr Raceland LA 70394

Clinic Ochsner Health Center-Prairieville

16222 Airline Hwy Prairieville LA 70769

Clinic Ochsner Health Center-Lakeview

101 W Robert E Lee BlvdSte201 New Orleans LA 70124

Clinic Ochsner Health Center-Baton Rouge

8150 Jefferson Highway Baton Rouge LA 70809

Clinic Ochsner Physical Therapy-Harvey

3820 Lapalco Blvd Harvey LA 70058

Outpatient Rehab Ochsner Health Center-Denham Springs

30819 Hwy 16 Denham Springs LA 70726

Clinic Ochsner Health Center-Kenner

200 West Esplanade Ave Kenner LA 70065

Clinic Ochsner Heart & Vasclr Hlth Ctr-Hammond

16045 Doctors Blvd Hammond LA 70403

Clinic Ochsner Health Center-Mandeville

2810 E Causeway Appr Mandeville LA 70448

Clinic Ochsner Health Center-Gretna

441 Wall Blvd Gretna LA 70056

Clinic Ochsner Children's Health Ctr-Destrehan

1970 Ormond Blvd Destrehan LA 70047

Clinic Ochsner Health Center-Abita Springs

22070 Hwy 59 Abita Springs LA 70420

Clinic Ochsner Health Center-Algiers

3401 Behrman Pl Algiers LA 70114

Clinic Ochsner Health Center-Belle Chasse

7772 Highway 23 Belle Chasse LA 70037

Clinic Ochsner Health Center-Luling

1057 Paul Maillard Road Luling LA 70070

Clinic Ochsner Health Center-Central

11424 Sullivan Road Central LA 70818

Clinic Ochsner Physical Therapy-Metairie

850 Veterans Memorial Blvd Metairie LA 70005

Outpatient Rehab Ochsner Health Center-New Orleans

3423 St Charles Ave New Orleans LA 70115

Clinic Ochsner St Anne Gnrl Health Ctr

1015 Crescent Ave Lockport LA 70374

Clinic Ochsner Health Center-Slidell

107 Smart Place Slidell LA 70461

Clinic Bayou Nephrology-Houma

108 Picone Rd Houma LA 70363

Clinic Ochsner Health Center-LaPlace

502 Rue de Sante LaPlace LA 70068

Clinic Ochsner Health Center-Slidell

2104 Gause Blvd West Slidell LA 70461

Clinic Ochsner Health Center-Bogalusa

1407 Avenue F Bogalusa LA 70427

Clinic Ochsner St Anne Gnrl Health Ctr

106 Cypress St Raceland LA 70394

Clinic Ochsner Health Center-Harding

7855 Howell Place Boulevard Baton Rouge LA 70807

Clinic Ochsner St Anne Gnrl Women's Health Ctr

194 West 134th Street Cut Off LA 70345

Clinic Ochsner St Anne Specialty Clinic

141 Twin Oaks Raceland LA 70394

Clinic Ochsner St Anne Family Doctor Clinic

111 Acadia Dr Raceland LA 70394

Clinic Part I, Line 3c: A Payment Advisor Score (PAS) is taken into consideration during the presumptive financial assistance process; however if a patient requests financial assistance, the PAS is not considered. The PAS is provided by a third party tool. Part I, Line 7: Ochsner Clinic Foundation estimates its costs of care provided under its charity care programs by applying a ratio of direct and indirect costs to charges to gross uncompensated revenue associated with providing care to charity patients. OCF's gross charity care revenue includes only services provided to patients who are unable to pay and qualify under OCF's charity care policies. The ratio of cost to charges is calculated based on OCF's total expenses divided by gross patient revenue. Part I, Line 7g: Ochsner is the medical partner with Jefferson Parish Public Schools ("JPPS") for on-site clinics at two schools, staffed by an Ochsner nurse practitioner (NP) five days a week, as well as an Ochsner pediatrician four hours a week. This clinic is a full medical office and is able to see patients on a scheduled and walk in basis for a variety of needs both medical and psychological. Ochsner provides the Nurse Practitioner's salary, the pediatrician and medical supplies. Ochsner is partially reimbursed by JPPS for the cost of the pediatrician. The reimbursement was deducted from the expenses.Ochsner donates the time of one psychiatrist to develop a framework for child behavior management and mental health referral services in public schools. Ochsner provided health screenings for JPPS teachers and staff. Part I, Line 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 $ 70113211. Part I, Line 6a The community benefit report prepared by Ochsner Clinic Foundation is representative of the entire health system, including Ochsner Clinic Foundation. The amounts reported in Schedule H are those amounts that are either directly incurred by Ochsner Clinic Foundation or those that have been allocated to Ochsner Clinic Foundation as a reimbursement to another organization. Part II: Ochsner endeavors to promote the health of the communities it serves through community building activities. Ochsner Community Hospitals promote economic growth in these areas by partnering and supporting organizations like Greater New Orleans Inc, Jefferson Economic Development Corporation, New Orleans Chamber Foundation, local neighborhood associations and child development programs like the Girl Scouts of America. It also aims to engage and inspire high school students to pursue further education and careers in science and medicine through its STAR ("Science, Technology, Academics and Research") program, a free, five-week summer program that provides qualified high school students with a unique opportunity to work in a student healthcare laboratory setting. Part III, Line 4: The footnote in the organization's financial statement that describes bad debt is as follows: "OCF recognizes net patient service revenue associated with services provided to patients who have third-party payor coverage on the basis of contractual rates for the services rendered. For uninsured patients that are not eligible for charity care, OCF recognizes revenue on the basis of its standard rates for services provided (or on the basis of discounted rates, if negotiated or provided by policy). Based on historical experience, a significant portion of OCF's uninsured and underinsured patients will be incapable or reluctant to pay for the services provided. Therefore, OCF records a significant provision for bad debts in the period the services are provided related to patient receivables and deductibles, copayments, or other amounts due from individual patients that have been deemed unwilling to pay. For the years ended December 31, 2012 and 2011, OCF recorded a provision for bad debt of approximately $70,113,000 and $74,504,000, respectively."Bad debt expense at cost is calculated by applying the ratio of patient care cost to charges to the bad debt expense calculated using the above methodology. Part III, Line 8: Medicare shortfall is not considered community benefit.Total revenue from Medicare has been taken from the E Series in the Medicare Cost Reports. They do not include Medicare Advantage or payments related to Education or Research, in compliance with the instructions. Medicare Allowable Costs were aggregated from the fiscal year cost reports for all hospitals. Worksheet D Part V Line 202 Column 5 was used for outpatient costs and Worksheet D-1 Part II Line 49, and Worksheet D-1 Part III Line 86, and Worksheet E Part A Line 55 was used for inpatient costs.The cost reports for Ochsner Clinic Foundation (Provider No. 19-0036) and Ochsner Bayou LLC (Provider No. 19-1324) cover the period 1/1/2012 - 12/31/2012. The cost report for Ochsner Medical Center - Baton Rouge (Provider No. 19-0202) covers the period 10/1/2011 - 9/30/2012. The cost report for Ochsner Medical Center - North Shore (Provider No. 19-0204) covers the period 4/1/2012 - 3/31/2013. Part III, Line 9b: Upon granting approval for 100% assistance, all collection efforts for that account will cease, the account will not be turned over to a collection agency, and Ochsner will not impose extraordinary collection efforts such as wage garnishments or liens. Ochsner Medical Ctr-West Bank Campus Part V, Section B, Line 16e: Lawsuits are filed on balance after insurance / residual balances. Patients are sent a minimum of two statements, but typically three, and scored through a third party tool to obtain FPL. Ochsner St. Anne General Hospital Part V, Section B, Line 16e: Accounts are turned over to a collection agency on day 120. Ochsner Medical Center-Baton Rouge Part V, Section B, Line 16e: Lawsuits are filed on balance after insurance / residual balances. Patients are sent a minimum of two statements, but typically three, and scored through a third party tool to obtain FPL. Ochsner Medical Center-North Shore Part V, Section B, Line 16e: Lawsuits are filed on balance after insurance / residual balances. Patients are sent a minimum of two statements, but typically three, and scored through a third party tool to obtain FPL. Ochsner Medical Ctr-West Bank Campus Part V, Section B, Line 20d: The maximum amount charged is based on the average of the rates of the two largest commercial insurers. Ochsner St. Anne General Hospital Part V, Section B, Line 20d: The maximum amount charged is based on the average of the rates of the two largest commercial insurers. Ochsner Medical Center-Baton Rouge Part V, Section B, Line 20d: The maximum amount charged is based on the average of the rates of the two largest commercial insurers. Ochsner Medical Center-North Shore Part V, Section B, Line 20d: The maximum amount charged is based on the average of the rates of the two largest commercial insurers. Part VI, Line 2: Ochsner serves the needs of the various communities throughout Southeast Louisiana through its commitment is to exemplary patient care, medical research and education. Ochsner Clinic Foundation is part of Ochsner Health System, which comprises a total of eight hospitals (including two satellite locations) and approximately 50 health centers throughout Southeast Louisiana. In order to identify the needs of the community, Ochsner reviews local and state publicly available data regarding the health status and issues in its region. Ochsner works with community organizations that collect information on their areas of focus to identify trends and areas where Ochsner has expertise that can make an impact. Ochsner collaborates with multiple community stakeholders to identify specific community needs in its regions. Ochsner then reviews these needs and determines where it can best use its resources and expertise to affect those needs. One of Ochsner's main focuses is to develop partnerships to address root causes of issues. Examples of Ochsner's commitment to the community can be found in Part VI, Line 5. Part VI, Line 3: All uninsured patients are screened for Medicaid. This process takes place at the time of service, inpatient admissions, and if the patient is not screened at the time, the patient is contacted at home to determine eligibility. In 2012, Ochsner was able to obtain Medicaid coverage for approximately 7,000 patients. If the patients do not qualify for Medicaid, then they will be evaluated under the financial assistance policy.Internal customer service departments and external partners including collection agencies provide patients with financial assistance applications if patients express concerns about the inability to pay outstanding balances. Ochsner also offers zero interest payment plan options with payment terms ranging from six to 60 months. Part VI, Line 4: Ochsner Clinic Foundation is a multi-specialty healthcare delivery system consisting of six hospitals (including two satellite locations) and approximately 50 health centers in southeast Louisiana. Ochsner Clinic Foundation is part of Ochsner Health System, southeast Louisiana's largest non-profit, academic, multi-specialty, healthcare delivery system with eight hospitals (including two satellite locations) and approximately 50 health centers. Ochsner employs approximately 900 physicians in over 80 medical specialties and subspecialties. Ochsner Clinic Foundation's patients vary in age, gender, and race due to the multi-specialty nature of the system. As of 2012, Ochsner Clinic Foundation's service area includes 2.6 million of Louisiana's 4.6 million people. At 19.9%, Louisiana has the third highest poverty level in the nation and about 40% of the population receives Medicaid or is uninsured. Approximately 600,000 or 23% receive Medicaid and approximately 440,000 or 17% are uninsured.The original Ochsner facility, Ochsner Medical Center, is located in Jefferson Parish, LA, approximately 1 mile from the western boundary of the city of New Orleans. Ochsner Medical Center, a 547-bed hospital, includes acute and sub-acute facilities. Ochsner Centers of Excellence include the Ochsner Cancer Institute, Ochsner Multi-Organ Transplant Center and Ochsner Heart and Vascular Institute. Ochsner Hospital-Elmwood is a satellite of Ochsner Medical Center, providing inpatient rehabilitation services. Ochsner Medical Center-West Bank Campus is a 165-bed satellite of Ochsner Medical Center, providing general medical and surgical acute care, emergency services and obstetrics, and is located on the West Bank of the Mississippi River within minutes of downtown New Orleans. OMC West Bank is easily accessible to three major parishes: Jefferson, Orleans and Plaquemines. Ochsner Medical Center and its two satellite hospitals serve the New Orleans Metropolitan Standard Area, which includes eight parishes surrounding New Orleans. The Metropolitan Standard Area population is approximately 1.2 million and almost half of the population receives Medicaid or is uninsured. The poverty rate in the New Orleans Metro area is 19%, 29% in New Orleans itself. Approximately 279,000 or 28% receive Medicaid and approximately 190,000 or 19% are uninsured.Ochsner Medical Center-Baton Rouge is a 136 bed hospital located in the city of Baton Rouge within East Baton Rouge parish. East Baton Rouge parish has a population of about 800,000 people, of which about 130,000 were uninsured and about 160,000 received Medicaid.Ochsner St. Anne General Hospital is a 35-bed acute care hospital that serves Lafourche parish, where it is located, and the surrounding parishes. The bayou region has a population of about 280,000 people, of which about 43,000 were uninsured and about 60,000 received Medicaid. Ochsner Medical Center-North Shore is a 147-bed acute care facility located in Slidell, LA and serving the north shore of Lake Pontchartrain, north of New Orleans, LA. The population of its service area is approximately 500,000 people of which about 76,000 were uninsured and about 100,000 received Medicaid. Part VI, Line 5: Having a diverse representation of the community in the governing boards is an important part of making sure all aspects of the community Ochsner serves are being touched by the mission and vision of the organization. The by-laws of both Ochsner Clinic Foundation and Ochsner Health System call for 10 members of the total 19 board members to be community members. The Chief Executive Officer serves on the Board by virtue of his or her office; however, a majority of Board members are prominent multi-disciplinary business and community leaders. The remaining board members are senior physician employees of Ochsner Clinic Foundation elected by their peers in accordance with Ochsner Clinic Foundation by-laws.Ochsner Clinic Foundation is an educational and research-oriented medical center, operating one of the nation's largest accredited non-university based graduate medical education programs, covering 44 different medical, surgical and specialty programs. Ochsner partners with the Louisiana State University and Tulane University Medical Schools, in addition to a consortium relationship with Our Lady of Holy Cross College for allied health and nursing programs. In 2009, Ochsner opened the Ochsner Clinical School through an international partnership with the University of Queensland, Australia which allows US citizens to complete the first two years of Medical School in Australia and the second two years of Medical School at Ochsner. Ochsner's focus on research includes approximately 350 open clinical research trials in almost every specialty. Ochsner operates ten basic science/transitional research laboratories and Ochsner scientists publish over 200 journal articles and book chapters each year. Donations and grants do not cover all of the research related costs.In addition to supplying the community's future healthcare providers and providing research to improve medical outcomes, Ochsner is also focused on improving the lifestyle of the patients it serves. Research has proven that many chronic health problems, such as diabetes, obesity and hypertension, are primarily caused by lifestyle choices. In order to reduce chronic disease in the community, Ochsner needs to change the choices and behaviors through exercise, nutrition and promotion of preventative health behaviors.Ochsner has embarked on an ambitious project to transform the health and wellness of its community, using schools as the focal point. Change the Kids, Change the Future(TM) is an overarching philosophy to alleviate the cause instead of the symptom. The goal is to teach children how to make good lifestyle choices to affect meaningful, lasting change for the health and wellness of the community. Ochsner currently provides two nurse practitioners at local high schools that staff fully functional clinics that see students through scheduled appointments and walk in visits. They also work with the schools to help educate the students about healthy choices. Ochsner also targets childhood obesity through a program at its fitness center, EFC On the Move Driving to Fight Childhood Obesity, where children ages 9-13 learn about health and fitness in a non-competitive environment via Elmwood Fitness Center's Mobile Fitness Unit. The mobile unit provides fitness classes and weight training equipment. Licensed dieticians provide healthy nutrition information and the staff performs pre- and post- program measurements and exercise performance assessments. Ochsner is also an advocate for the health and wellness of adults. Ochsner provided various free health screenings, such as glucose, blood pressure and total cholesterol, and health information to over 2,000 people at public health fairs. Ochsner also educates people about the benefits of smart food and lifestyle choices, disease prevention and regular medical checkups through Choose Healthy!, a partnership with Rouse's grocery stores. In addition to the in-store activities, the community is able to access recipes and information on smart food choices, proper meal planning and disease-specific diet alternatives at www.choose-healthy.org. Ochsner also helps people stop smoking with its Tobacco Control & Prevention Program by attending corporate wellness events and partnering with area schools to provide educational materials and support.Ochsner and four other health care providers formed five non-profit organizations to collaborate with the State of Louisiana and several units of local government in Louisiana to more fully fund the Medicaid program and ensure the availability of quality healthcare services for the low income and needy population. Ochsner contributed over $20 million to the collaboratives in 2012. Part VI, Line 6: Ochsner Health System is the supporting organization to Ochsner Clinic Foundation and Ochsner Community Hospitals, all related 501(c)(3) corporations. While each of the eight hospitals with the System promote the health within the separate geographical communities that they service, many overall community health initiatives are coordinated by Ochsner Health System, which is then reimbursed by the respective entities. Part V, Line 8 Facility Reporting Group A See below Facility 1 -- Ochsner Medical Center Part V, Section B, line 16e: Lawsuits are filed on balance after insurance / residual balances. Patients are sent a minimum of two statements, but typically three, and scored through a third party tool to obtain FPL. Facility 1 -- Ochsner Medical Center Part V, Section B, line 20d: The maximum amount charged is based on the average of the rates of the two largest commercial insurers. Facility 6 -- Ochsner Medical Center-Elmwood Campus Part V, Section B, line 16e: Lawsuits are filed on balance after insurance / residual balances. Patients are sent a minimum of two statements, but typically three, and scored through a third party tool to obtain FPL. Facility 6 -- Ochsner Medical Center-Elmwood Campus Part V, Section B, line 20d: The maximum amount charged is based on the average of the rates of the two largest commercial insurers. 1 Louisiana State University 433 Bolivar New Orleans LA 70112 726087770 501(c)(3) 58710 0 General Support for Diabetes Study 1 1 Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: The organization maintains records to substantiate the amount of grants and assistance through a grant application process. Grantees' ability to perform is vouched for and credit vouchers of performing persons at respective organizations are obtained. Use of grant funds is monitored by the normal accounts payable process that the organization has in place. All payments made to grantees are approved by appropriate persons associated with primary grant awards who are knowledgeable of work product on grants. In addition to the approval process, the organization has a process in place to ensure that requested payments are in line with approved budgets submitted by subrecipients. X X X X X 0 1 0 0 0 1 1 1 0 David E Beck MD 551532 0 25750 0 6696 0 52554 0 13736 0 650268 0 0 0 Joseph L Breault MD 202637 0 12011 0 5082 0 45511 0 21444 0 286685 0 0 0 Joseph R Dalovisio MD 334449 0 20500 0 5189 0 59654 0 11736 0 431528 0 0 0 Francis Dauterive MD 315792 0 26019 0 8096 0 37190 0 18321 0 405418 0 0 0 Dennis Kay MD 612061 0 19000 0 2785 0 40152 0 15863 0 689861 0 0 0 Yvens G Laborde MD 291631 0 41265 0 8306 0 43349 0 17606 0 402157 0 0 0 George Loss MD 754617 0 18750 0 2573 0 48547 0 19606 0 844093 0 0 0 Richard Milani MD 468528 0 84668 0 16201 0 67675 0 20483 0 657555 0 0 0 Patrick J Quinlan MD 0 909843 0 356928 0 34071 0 46300 0 12008 0 1359150 0 0 Bobby C Brannon 420736 0 135200 0 37221 0 24800 0 15135 0 633092 0 0 0 Michael F Hulefeld 0 398812 0 45000 0 13645 0 19300 0 22643 0 499400 0 0 Scott J Posecai 0 540690 0 106000 0 17496 0 46300 0 8530 0 719016 0 0 Warner L Thomas 0 809067 0 269555 0 20897 0 40800 0 20105 0 1160424 0 0 Joseph E Bisordi MD 0 567493 0 111488 0 20622 0 41600 0 12574 0 753777 0 0 Polly Davenport 284013 0 35000 0 3515 0 14200 0 12574 0 349302 0 0 0 Nancy L Davis 0 253352 0 16201 0 4605 0 44087 0 8908 0 327153 0 0 Steven B Deitelzweig MD 349284 0 32848 0 1960 0 29655 0 22606 0 436353 0 0 0 Mark French 219416 0 20000 0 1039 0 21813 0 19398 0 281666 0 0 0 Richard D Guthrie Jr MD 0 379838 0 45000 0 2812 0 51061 0 20961 0 499672 0 0 Robert Hart MD 293250 0 26363 0 8042 0 46300 0 2062 0 376017 0 0 0 Ernest E Martin Jr MD 291681 0 35150 0 9765 0 32536 0 17461 0 386593 0 0 0 J Eric McMillen 149476 0 21758 0 948 0 22805 0 18636 0 213623 0 0 0 Armin Schubert MD 489341 0 140755 0 4316 0 46300 0 14139 0 694851 0 0 0 Beth Walker 155854 0 15000 0 746 0 17153 0 7198 0 195951 0 0 0 Mitchell Wasden 144777 0 22426 0 1338 0 15485 0 9239 0 193265 0 0 0 Robert Wolterman 0 301519 0 30000 0 2941 0 19215 0 15960 0 369635 0 0 Cuong Bui MD 799117 0 1500 0 871 0 12045 0 9628 0 823161 0 0 0 Gregory J Eckholdt MD 797157 0 7308 0 12024 0 50512 0 16606 0 883607 0 0 0 Deryk G Jones MD 718359 0 63430 0 77526 0 44115 0 16606 0 920036 0 0 0 Denis Mello MD 984847 0 250 0 1603 0 23800 0 19106 0 1029606 0 0 0 Jose Mena MD 685176 0 0 0 299584 0 36652 0 18106 0 1039518 0 0 0 Scott Boudreaux 24663 255195 2644 27356 541 5603 2186 22614 1463 15142 31497 325910 0 0 Lisa S Colletti 217822 0 11475 0 3985 0 23494 0 2030 0 258806 0 0 0 Patrick Shannon 124935 52892 10538 4462 275 117 16708 7074 1125 476 153581 65021 0 0 Part I, Line 4b Line 4b: Patrick Quinlan, M.D., Chief Executive Officer; Warner Thomas, President; Scott Posecai, Sr. Vice President and Chief Financial Officer; and Bobby Brannon, Executive Vice President and Treasurer participate in a Supplemental Executive Retirement Plan (SERP) which is part of the terms and conditions of their employment contracts with Ochsner Health System and Ochsner Clinic Foundation and is based on a targeted replacement of a set percentage of their salary at age 65. The SERP is classified as a Supplemental Non-Qualified Retirement Plan. This benefit is funded in a Trust Account with Capital One Bank. There were no increases in actuarial value during 2012. Joseph Bisordi, Executive Vice President and Chief Medical Officer, participates in a Non-Qualified supplemental plan which is part of the terms and conditions of his employment contract with Ochsner Health System. The retirement calculation is a defined amount as a percent of base pay, calculated annually, and is earned in two vesting periods, one at age 63 March 31, 3013 at age 65 September 9, 2014 This benefit is funded in a Trust Account with Capital One Bank. Part I, Line 6 The Physician and Executive Compensation Committee of the Ochsner Clinic Foundation Board of Directors reviews and approves all officer executive incentive plans, which include those for the Officers: the President & CEO, COO, CFO, Treasurer, Regional Medical Directors, and Executive Vice Presidents. For the 2011 incentive plan, which was paid in 2012, there were seven weighted components: a System Financial Metric, which consists of Operating Margin, a Human Capital Metric consisting of turnover results, a Patient Satisfaction Metric, three Quality Metrics based on provision of all recommended care and mortality and complication indexes, and a Subjective metric based on their personal performance targets. The subjective metric is assigned for the CEO by the Physician and Executive Compensation Committee and assigned for the other executives by the CEO then reviewed by the Physician and Executive Compensation Committee. Metrics other than subjective are built on percent improvement year over year. The CEO and officers did meet annual targets as set by the terms and conditions of their employment contracts and therefore the compensation committee approved the payment of the Annual Incentive Plan which was recorded as part of their compensation in 2012. All the incentive payouts are audited by the Board Internal Audit Committee. Annually, the officers of Ochsner Health System review and approve executive incentive plans for the executive and physician leadership group. The plans are developed similar to the officer incentive plans with weighted components, including a subjective metric. The subjective metric is assigned by the officer responsible for the executive or physician leader as their direct report and the CEO approves all bonuses for this group of management. All bonus amounts are provided in Schedule J Part II in Column B(ii). Part I, Line 7 Subjective components of incentive plan are described in description of Part I, Line 6. A Louisiana Public Facilities Authority 720895871 546398VQ8 2007-09-12 371062406 RETIRE 02 BDS, FACIL IMPROV 0 0 0 B Louisiana Public Facilities Authority 720895871 546398L48 2011-05-11 148728038 FACIL ACQ, CONSTR & RENOV 0 0 0 A 322774046 371062406 365082045 340793448 4054068 47737307 2010 1 0 1 1 B 148728038 15000000 9212238 2365800 7436402 56088348 58625250 0 0 0 1 A 0 0 1 1 0 0.00000 0.00000 0.00000 0 0 0 B 0 0 1 1 0 0.00000 0.00000 0.00000 0 0 0 A 0 0 0 1 0 0 0 0 0 B 0 1 0 0 0 0 0 0 0 Schedule K Part IV, Arbitrage, Line 2c Date Rebate Computation Performed Issuer Name: Louisiana Public Facilities Authority Date the Rebate Computation was Performed: 05/31/2012 Form 8038 for CUSIP # 546398VQ8 was prepared for the issuance of Revenue Bonds (Ochsner Clinic Foundation Project) Series 2007A and Revenue Bonds (Ochsner Community Hospitals Project) Series 2007B. The bonds had a total Issue Price of $453,076,501.10. $371,062,405.65 of the Issue Price was issued for the benefit of Ochsner Clinic Foundation (EIN# 72-0502505), and the remaining $82,014,095.45 was issued for the benefit of Ochsner Community Hospitals (EIN# 20-5297040). Schedule K, Part II, Line 7 100% of line 7 relates to issuance cost. Schedule K, Part III, Line 3a All contracts meet IRS safe harbor rules per 97-13. Mello Dennis M Forgivable loans for Physician Retention and Recruitment X 1000000 1000000 0 0 1 Schubert Armin Forgivable loans for Physician Retention and Recruitment X 50000 5818 0 0 1 1005818 Jones Walker Waechter Pointevent Carrere & Denegre Independent Contractor 75649 Mr. Hines, a Director of Ochsner Health System, is managing partner of Jones Walker Law Firm which performs legal services for Ochsner. 0 Catholic Charities-PACE Program Mr. Hulefeld, a Key Employee, is a Director of Catholic Charities 872822 PACE contracts with Ochsner to provide hospitalization and specialty care for its patients 0 Tulane University Independent Contractor 2206491 Mr. Wisdom, a Director of OCF, is also a Board Member of Tulane University. 0 Jill Dalovisio Fitzpatrick Daughter of Dr. Dalovisio, a Sr. Physician Board Member of OCF 80866 Compensation as a Physician Assistant 0 Erin Dauterive MD Daughter of Dr. Dauterive, a Sr. Physician Board Member of OCF 114419 Compensation as a Physician 0 Richard D Guthrie III Son of Dr. Guthrie, a Key Employee of OCF 60344 Compensation as a RN 0 Elizabeth Guthrie Tucker Daughter of Dr. Guthrie, a Key Employee of OCF 37868 Compensation as a RN 0 Alexis Guthrie Daughter-in-Law of Dr. Guthrie, a Key Employee of OCF 33126 Compensation as a RN 0 Renee Reymond MD Wife of Mr. Hulefeld, a Key Employee of OCF 93741 Compensation as a Physician 0 Kay Belmont Sister of Mr. Posecai, an Officer of OCF 28184 Compensation as an RN 0 Nga Vu MD Wife of Dr. Quinlan, an Officer of OCF 134556 Compensation as Chief Operating Officer of Ochsner Medical Center-West Bank hospital 0 X 6 117717 Fair Market Value X 6 16500 Fair Market Value X 24 20083 Cost X Services 8 224832 Cost X Special Events 5 4236 Cost X Miscellaneous 10 5116 Cost 0 1 1 Third Party Use: Part I, Line 32b: If the organization receives a noncash contribution greater than $5,000, the donor or the organization will hire a third party to complete an appraisal. Doing Business As Form 990, Part I, Item C DBA: Ochsner Health Center DBA: Ochsner St. Anne General Hospital DBA: Ochsner Medical Center - Baton Rouge DBA: Elmwood Fitness Center (a Service of Ochsner) DBA: Ochsner DBA: Alton Ochsner Medical Foundation DBA: Ochsner Outpatient Surgery Suite Form 990, Part VI, Section A, line 1 1b: The Articles of Incorporation provide that no action of the Board may be resolved unless a majority of the independent directors present approve the matter. Thus, even in situations where there is not an absolute majority of independent directors in office, those independent directors in office control Ochsner Health System's activities. Form 990, Part VI, Section A, line 2 Dr. Quinlan and Mr. Suquet have a business relationship. Form 990, Part VI, Section A, line 6 Ochsner Clinic Foundation is a wholly-owned subsidiary of Ochsner Health System, a related 501(c)(3) organization. Ochsner Health System is the sole member of Ochsner Clinic Foundation. Ochsner Clinic Foundation has no capital stock and only one class of membership. Form 990, Part VI, Section A, line 7a The Community Directors shall be nominated exclusively by the nominating committee of the board of directors of the Member. Form 990, Part VI, Section B, line 11 One or more members of senior management reviews the return. The return is also reviewed by Deloitte Tax LLP, the company's tax advisors. The Audit and Oversight Committee, which is comprised of independent directors, is then provided the return prior to the filing date and given the opportunity to review and discuss the returns with management/staff. The meeting to review the 2012 return was held on October 28, 2013. A copy of the return is then provided to each member of the Board of Directors electronically and comments are solicited from the entire Board. Form 990, Part VI, Section B, line 12c Officers, directors, trustees, and key employees are required to complete a conflicts of interest disclosure form annually, within 30 days of becoming an employee, or within 10 days of a change in business circumstances not previously disclosed. The Vice President of Corporate Integrity reviews disclosures and determines whether action is necessary or if the disclosure needs to be reviewed by the Conflicts of Interest Committee. In addition, employees that do not fall within the scope of the Conflict of Interest Disclosure policy annually certify through the Annual Employee Evaluation process their compliance with the Conflict of Interest policy. Form 990, Part VI, Section B, line 15 All CEO and officer compensation and benefits arrangements, including salary and bonus incentive plans, are reviewed and approved by the Executive and Senior Physician Compensation Committee of the Board of Directors (Compensation Committee). No substantive change to the compensation or benefits packages is made until Committee approval is granted in accordance with Intermediate Sanctions guidelines. The Compensation Committee is without conflicts of interest and uses an independent external consultant. Appropriate data is applied to determine the comparability of fair market value pay and all actions are appropriately documented. In order to meet the requirements of the IRS Intermediate Sanctions regulations, the Compensation Committee identified the "disqualified individuals" that are in a position to exercise substantial influence over the company's operations. These individuals are the members of the Executive Officers Committee (EOC), Regional Medical Directors, physician board members and Section Heads for key departments. For disqualified individuals, the compensation review also includes the cost of benefits such as the company portion of medical and dental benefits, malpractice insurance, payments for 401K matching and pension payments. A different review process is used for Physicians. Annually, the Corporate Integrity department reviews the salary of each employed physician. This review includes a comparison of physician salaries against national survey data for their specialty. Three surveys are used for the review: McGladrey & Pullen, the Medical Group Management Association (MGMA) and American Medical Group Association (AMGA). The Physician Compensation department provides salary data for each physician including base salary, stipends, on-call pay, etc. If it is determined that a physician's compensation is higher than the survey data, the total work Relative Value Units (RVUs) are compared to the survey data. This review is performed to ensure their pay is comparable to the work performed. Comparable benefit survey data is obtained periodically from McGladrey & Pullen. Compensation for other non-physician key employees is reviewed by senior executives who take market value research into consideration when determining compensation levels. Form 990, Part VI, Section C, line 19 Financial statements for Ochsner Clinic Foundation are made available to the public quarterly via www.dacbond.com. All governing documents, conflict of interest policy, and financial statements are available upon written request to the Corporate Integrity Department. Joint Venture Procedure Part VI, Section B, 16b When the organization evaluates its participation in a joint venture, the transactions are handled carefully to ensure that the organization's tax-exempt status is intact with regard to the arrangement. The operations of the joint venture are carefully reviewed by management and legal counsel, and the transaction is not entered into unless it is a reflection of the organization's tax-exempt purpose. A clause is inserted into the joint venture agreement that the operations of the joint venture must be performed in a manner that will not jeopardize the organization's tax-exempt status. ADDITIONAL COMPENSATION EXPLANATION Part VII, Section A, Line 1a COMPENSATION OF DIRECTORS AND AVERAGE HOURS PER WEEK DEVOTED TO POSITION The amount of time shown for those Directors listed as "Board Member Sr Phys" as "average hours per week devoted to position" on the Form 990 for Ochsner Clinic Foundation (EIN 72-0502505) consists primarily of role as a Senior Physician of Ochsner Clinic Foundation. Additional time spent on boards, committees and through fulfilling other responsibilities as a member of one or more Boards of the varied Ochsner organizations is shown as a nominal amount for Ochsner Health System and/or Ochsner Community Hospitals. As a Senior Physician Director of an integrated health system, these individuals devote time to board activities of all 501(c)(3) members of the system to varying degrees including Ochsner Health System, Ochsner Clinic Foundation and Ochsner Community Hospitals. Those directors listed as "Board Member Sr Phys" on the Form 990 for Ochsner Clinic Foundation (EIN 72-0502505) are compensated entirely due to their role as a Senior Physician of a member of the integrated health system. The amount of time shown for those Directors listed as "Community Directors" for "average hours per week devoted to position" includes time spent on boards, on committees and through fulfilling other responsibilities as a member of the Board of varied Ochsner organizations. As a Community Director of an integrated health system, each Community Director devotes time to all 501(c)(3) members of the system to varying degrees including Ochsner Health System, Ochsner Clinic Foundation and Ochsner Community Hospitals. ADDITIONAL COMPENSATION EXPLANATION Part VII, Section A, Line 1a COMPENSATION OF OFFICERS AND SYSTEM-LEVEL KEY EMPLOYEES AND AVERAGE HOURS PER WEEK DEVOTED TO POSITION Compensation and average hours worked for Bobby Brannon, EVP, Secretary & Treasurer, include all compensation related to the Ochsner Health System, which includes Ochsner Health System (OHS, EIN 20-5296918), Ochsner Clinic Foundation (OCF, EIN 72-0502505) and Ochsner Community Hospitals (OCH, EIN 20-5297040), all related 501(c)(3) organizations. Other members of the Ochsner network are charged a portion of these amounts. The amount of time shown for each of the remaining officers as "average hours per week devoted to position" on this form of the organization that pays the officers directly consists primarily of role as an officer of the integrated health system. Additional time spent on boards, committees and through fulfilling other responsibilities as an officer of the integrated health system is shown as a nominal amount on the forms of the related organizations, but in reality the time is more evenly distributed across all entities. Nancy Davis and Dr. Joseph Bisordi are employed and compensated by Ochsner Health System, 20-5296918, 501(c)(3), a related organization. Both, in their duties as leaders of the integrated health system, spend a substantial amount of their time on duties pertaining to Ochsner Clinic Foundation, and in all other respects meet the requirements of Key Employees of Ochsner Clinic Foundation. The amount of time shown for each key employee as "average hours per week devoted to position" on this form of the organization that pays the key employees directly consists primarily of role as a key employee of the integrated health system. Additional time spent on boards, committees and through fulfilling other responsibilities as a key employee of the Ochsner organizations is shown as a nominal amount on the forms of the related organizations, but in reality the time is more evenly distributed across all entities. ADDITIONAL COMPENSATION EXPLANATION Part VII, Section A, Line 1a KEY EMPLOYEES COMPENSATED BY RELATED ORGANIZATIONS Dr. Richard Guthrie and Mr. Robert Wolterman are employed and compensated by Ochsner Health System, 20-5296918, 501(c)(3), a related organization. Mr. Robert Wolterman was compensated by Ochsner Community Hospitals, 20-5297040, 501(c)(3), a related organization, at the beginning of the year, until he changed roles with the health system. All, in their duties as leaders of the integrated health system, spend a substantial amount of their time on duties pertaining to Ochsner Clinic Foundation, and in all other respects meet the requirements of Key Employees of Ochsner Clinic Foundation. The amount of time shown for each key employee as "average hours per week devoted to position" on this form of the organization that pays the key employees directly consists primarily of role as a key employee of the integrated health system. Additional time spent on boards, committees and through fulfilling other responsibilities as a key employee of the Ochsner organizations is shown as a nominal amount on the forms of the related organizations, but in reality the time is more evenly distributed across all entities. Changes in Net Assets or Fund Balances: Form 990, Part XI, line 9: Items from Changes in Fund Balance that are part of 990 Part VIII Ln 1 -7,533,067. Items from Changes in Fund Balance that are part of 990 Part VIII Ln 8 -450,396. Unrestricted Impairments Recovery (Impairment) 10,727,753. Additional Pension Liability -24,024,913. Net Assets Released for Capital Acquisitions 493,865. Change in Net Assets for Brent House 869,589. Change in Net Assets for OSPC -441,132. Restricted Investment Net Earnings 3,587,171. Other (Miscellaneous and Rounding) -4,647. Part XII, Line 2c The process regarding the committee responsible for the audit, review, or compilation of the organization's financial statements and selection of an independent accountant has not changed from the prior year. Deuteron Realty 1514 Jefferson Highway New Orleans LA 70121 721079347 Nominee Real Estate Corporation LA 0 1000 N/A East Baton Rouge Medical Center LLC 17000 Medical Center Dr Baton Rouge LA 70816 201729674 Patient Care DE 107225000 31550181 N/A Foundation Assets LLC 1514 Jefferson Highway New Orleans LA 70121 770589660 Holding of donated interest in fractional share of ground lease-New Orleans LA 32826 1012794 N/A Gulf Coast Outpatient Centers -- Mandeville LLC 1514 Jefferson Highway New Orleans LA 70121 208242348 Patient Care LA 0 0 Gulf Coast Outpatient Centers LLC Gulf Coast Outpatient Centers -- Uptown LLC 1514 Jefferson Highway New Orleans LA 70121 208242525 Patient Care LA 0 0 Gulf Coast Outpatient Centers LLC Gulf Coast Outpatient Centers -- Westbank LLC 1514 Jefferson Highway New Orleans LA 70121 208241691 Patient Care LA 0 0 Gulf Coast Outpatient Centers LLC Gulf Coast Outpatient Centers LLC 1514 Jefferson Highway New Orleans LA 70121 208241553 Holding of Gulf Coast Outpatient Centers companies LA 0 0 Ochsner Urgent Care LLC Gulf Coast Physician Network LLC 6341 Lakeland East Dr Flowood MS 39208 753009725 provides healthcare svcs to employees of MS coast casinos LA 118000 70442 N/A Ochsner Accountable Care Network 1514 Jefferson Highway New Orleans LA 70121 455446191 Accountable Care Organization LA 0 0 N/A Ochsner Bayou LLC 4608 Highway 1 Raceland LA 70394 204670876 Operation of Ochsner St. Anne General Hospital LA 33052000 12632369 N/A Ochsner Clinic LLC 1514 Jefferson Highway New Orleans LA 70121 720276883 Physician Services LA 671624000 121235765 N/A Ochsner Home Medical Equipment LLC 1514 Jefferson Highway New Orleans LA 70121 720502505 Sales of Durable Medical Equipment to Patients LA 5234000 3060134 N/A Ochsner Medical Center - Northshore LLC 1514 Jefferson Highway New Orleans LA 70121 271770321 Patient Care LA 71974000 40044964 N/A Ochsner Urgent Care LLC 1514 Jefferson Highway New Orleans LA 70121 720502505 Holding of Gulf Coast Outpatient Centers LA 0 0 Ochsner Clinic LLC OMCNS MOBS LLC 1514 Jefferson Highway New Orleans LA 70121 720502505 Holding of Medical Office Buildings LA 98193 6310580 N/A Ochsner Health System 1514 Jefferson Highway New Orleans LA 70121 205296918 Health Care support LA 501(c)(3) 509(a)(3) Type II N/A 0 Ochsner Community Hospitals 1514 Jefferson Highway New Orleans LA 70121 205297040 Patient Care LA 501(c)(3) 170(b)(1) (A)(iii) Ochsner Health System 0 Brent House Corporation 1512 Jefferson Highway New Orleans LA 70121 720872457 Rents hotel rooms to patients/guests of Ochsner facilities. LA 501(c)(3) 509(a)(3) Type II Ochsner Clinic Foundation 1 Ochsner System Protection Company 1514 Jefferson Highway New Orleans LA 70121 271170999 Captive Insurance LA 501(c)(3) 509(a)(3) Type I Ochsner Clinic Foundation 1 1 0 0 1 0 1 0 0 0 1 1 1 1 0 0 1 1 0 1 Brent House Corporation A 2047230 Intercompany Billings - Mkt Value Ochsner System Protection Company F 500000 Cash transferred Brent House Corporation K 1029576 Intercompany Billings - Mkt Value Brent House Corporation L 41138 Intercompany Billings - Mkt Value Brent House Corporation M 1664989 Intercompany Billings - Mkt Value Ochsner System Protection Company M 3359910 Intercompany Billings - Mkt Value Brent House Corporation P 39480 Intercompany Billings - Mkt Value Brent House Corporation Q 223435 Intercompany Billings - Mkt Value