2012-09-28T10:34:29-05:00 2011-12-31 560747981 DIXON HUGHES GOODMAN LLP 500 RIDGEFIELD COURT ASHEVILLE NC 28806 990 2011-01-01 237320638 METHODIST HEALTHCARE FOUNDATION METH 9015160500 1211 UNION AVENUE NO 450 MEMPHIS TN 38104 CHRISTOPHER MCLEAN 9015160500 2012-09-28 1 AMY BIBBY P00445891 8282542254 2011 2016-02-24 21:20:13Z PAULA JACOBSON 1211 UNION AVENUE NO 450 MEMPHIS TN 38104 5251593 0 X WWW.METHODISTHEALTH.ORG X 1974 TN PHILANTHROPIC ACTIVITIES AWARDING GRANTS AND SCHOLARSHIPS FOR PROGRAMS AND PROJECTS. 19 18 16 275 0 0 6267607 5069644 0 0 608762 100650 -175979 -261157 6700390 4909137 8467302 3320310 0 0 852881 861080 116076 63613 458373 1767091 1816002 11203350 6061005 -4502960 -1151868 14371156 13974850 324899 540047 14046257 13434803 X TO SUPPORT THE LIFE OF METHODIST LE BONHEUR HEALTHCARE BY INVITING COMMUNITY PHILANTHROPIC PARTNERS TO INVEST IN THE PARTS OF OUR MISSION THAT DEMAND ENHANCEMENTS IN RESEARCH, FACILITY OR PROGRAMS. THE FOUNDATION INVITES ITS PARTNERS TO BUILD THE CAPACITY OF THE HEALTHCARE SYSTEM BY COMMUNICATING THE BOLD FAITH OF OUR FOUNDERS AND EXPANSIVE VISION OF A MORE FULL AND HEALTHY LIFE FOR THE COMMUNITIES WE SERVE. 0 0 1280047 1280047 #1 - PHYSICIANS' RESEARCH NETWORK:METHODIST LE BONHEUR HEALTHCARE HAD 503 OPEN CLINICAL RESEARCH PROTOCOLS IN 2011 OF WHICH 147 WERE NEW STUDIES. THE PHYSICIANS' RESEARCH NETWORK (PRN) OPERATES UNDER THE UMBRELLA OF THE METHODIST HEALTHCARE FOUNDATION AND FACILITATES ADULT AND PEDIATRIC RESEARCH WITHIN METHODIST HEALTHCARE. PRN PROVIDES STUDY COORDINATION, SUPPORT SERVICES, AND REGULATORY ASSISTANCE TO INVESTIGATORS MANAGING INPATIENT AND OUTPATIENT CLINICAL RESEARCH TRIALS. 1091067 1091067 #2 - THE CENTER OF EXCELLENCE IN FAITH AND HEALTH:THE SPIRIT OF FAITH AND HEALING PERVADES METHODIST LE BONHEUR HEALTHCARE. AS A FAITH-BASED INSTITUTION, WE ARE WORKING TO DEFINE HOW WE CAN BETTER UTILIZE OUR FAITH RESOURCES AND OTHER ASSETS IN THE COMMUNITY TO IMPROVE HEALTH. THAT MISSION HAS RESULTED IN A STRATEGY AROUND CONGREGATIONS AND OUR CONNECTION WITH THEM. WE BELIEVE THAT CONGREGATIONS CAN PLAY A SIGNIFICANT ROLE IN HEALTHCARE WHEN THEY ARE STRATEGIC PARTNERS IN THEIR MEMBERS' HEALTH JOURNEYS. TO THAT END, WE HAVE ENTERED INTO CONVENTIONAL RELATIONSHIPS WITH 350+ CONGREGATIONS TO IMPROVE THE ACCESS TO COMPREHENSIVE HEALTH SERVICES FOR ALL CITIZENS AND TO IMPROVE THE HEALTH STATUS OF THESE PATIENTS. THE CENTER OF EXCELLENCE IN FAITH AND HEALTH (COE) WAS COMPLETED IN JANUARY 2011 AND IS HOUSED IN RENOVATED SPACE AT METHODIST UNIVERSITY HOSPITAL. THE COE WILL ADVANCE HEALTH BY BRINGING FAITH AND HEALTH TOGETHER FOR THE IMPROVED WELLBEING OF THOUSANDS OF PATIENTS. THE CENTER'S GOAL IS TO DRAMATICALLY ENHANCE QUALITY OF CARE AND SUPPORT FOR OUR PATIENTS AND THEIR FAMILIES. WE BELIEVE THAT THE COUPLING OF FAITH AND HEALTH CAN NOT ONLY ELEVATE THE LEVEL OF CARE WE DELIVER TO OUR PATIENTS, BUT ALSO IMPROVE THE QUALITY OF LIFE FOR OUR COMMUNITY AND BEYOND. THE ACTUAL CENTER OF EXCELLENCE SPACE TRANSFORMED THE PREVIOUSLY EXISTING INTENSIVE CARE WAITING ROOM INTO A STATE-OF-THE-ART FAMILY-CENTERED HEALING ENVIRONMENT WITH A QUIET AREA, RESOURCE ROOM, EDUCATION SPACES, MOVEABLE FURNITURE, AS WELL AS SPACE FOR LOCAL CLERGY TO COUNSEL THEIR MEMBERS. IT ALSO HOUSES CREATIVE MEETING SPACE FOR ACADEMIC PARTNERS LOCALLY AND ACROSS THE GLOBE TO WORK WITH EACH OTHER, AS WELL AS PROVIDE TRAINING AND EDUCATION TO OUR ASSOCIATES, LOCAL CLERGY AND COMMUNITY HEALTH PARTNERS. THE FOUNDATION RAISED OVER $2 MILLION TO MAKE THIS PROJECT A REALITY. REVENUES GENERATED FOR THE YEAR WERE $651,656 AND EXPENSES INCURRED TOTALED $1,091,067. 659120 #3 - COMPREHENSIVE SICKLE CELL CENTER OF MEMPHIS:THE COMPREHENSIVE SICKLE CELL CENTER OF MEMPHIS OPENED IN 2012. IT PROVIDES COMPREHENSIVE CARE FOR ADULT PATIENTS WITH SICKLE CELL DISEASE. THE CENTER INCLUDES AN OUTPATIENT TREATMENT CENTER FOR CLINICAL CARE AND ROUTINE HEALTH MAINTENANCE CARE AND AN IN-PATIENT UNIT FOR THOSE WITH MORE URGENT CARE NEEDS. REVENUES GENERATED IN EFFORT TO OPEN THE CENTER WERE $ 611,333 AND EXPENSES INCURRED TOTALED $659,120. 1440331 949196 THE FOUNDATION RAISES FUNDS TO BENEFIT AND STRENGTHEN THE METHODIST LE BONHEUR HEALTHCARE PROGRAMS AND CENTERS OF EXCELLENCE. FUNDS RAISED ENHANCE AND STRENGTHEN CLINICAL AND RESEARCH INITIATIVES, UNDERWRITE COSTS FOR FACILITIES, TECHNICIANS, AND EQUIPMENT AND BRIDGE THE GAP BETWEEN WHAT HOSPITAL CHARGES COVER AND WHAT IS NECESSARY TO STAY ON THE CUTTING EDGE OF MEDICAL SCIENCE. THE HOSPICE RESIDENCE IS A $9 MILLION, 30-BED FREE-STANDING FACILITY ON SIX ACRES THAT PROVIDES RESIDENTIAL HOSPICE CARE FOR THOSE PATIENTS WHO CANNOT STAY IN THEIR HOMES AT THE END OF THEIR LIVES. THE FACILITY CONTAINS A LARGE "LIVING ROOM", FAMILY RECHARGE AREAS AND LOVELY GARDENS THAT CAN BE ACCESSED BY ALL PATIENT ROOMS. IT IS PART OF ALLIANCE HEALTH SERVICES, A 501(C)(3) ORGANIZATION EIN 62-0841121, AND A SUBSIDIARY OF METHODIST LE BONHEUR HEALTHCARE. SINCE 1979, METHODIST HOSPICE HAS PROVIDED COMPASSIONATE CARE AND SUPPORT TO INDIVIDUALS AND THEIR FAMILIES WHO ARE FACING LIFE'S FINAL JOURNEY. AS ONE OF THE FIRST HOSPICES IN THE COUNTRY TO RECEIVE MEDICARE CERTIFICATION, METHODIST HOSPICE WORKS TO HELP EASE THE END-OF-LIFE TRANSITION FOR ALMOST 150 FAMILIES IN THE MID-SOUTH EVERY DAY. THE GRAND OPENING OF THIS FACILITY WAS HELD IN JULY, 2011. EXPENSES FOR OUR HOSPICE PROGRAM AND RESIDENCE TOTALED $329,479 IN 2011, AND REVENUES WERE $477,028.METHODIST HEALTHCARE FOUNDATION SUPPORTS LIFELONG LEARNING FOR PHYSICIANS BY PROVIDING THEM THE NECESSARY EVIDENCE-BASED INFORMATION IN FORMATS THAT WILL DEVELOP AND MAINTAIN COMPETENCE, ENHANCE KNOWLEDGE AND SKILLS, IMPROVE PERFORMANCE AND PATIENT OUTCOMES. IN 2011 THE FOUNDATION OFFERED 18 COURSES, 50 REGULARLY SCHEDULED SERIES AND 5 ENDURING MATERIALS FOR A TOTAL OF 73 PROGRAMS, 1,346 HOURS. A TOTAL OF 15,652 PHYSICIANS ATTENDED AND 3,567 NON-PHYSICIANS. THE FOUNDATION SPENT $295,394 AND BROUGHT IN $167,748 IN 2011 IN SUPPORT OF THESE EDUCATIONAL OFFERINGS.ANNUAL GIVING AND SPECIAL EVENT EFFORTS (NOT INCLUDING OUR TOP THREE EVENTS) HAD TOTAL EXPENSES OF $78,658 AND REVENUE OF $666,863. PROCEEDS FROM THESE EFFORTS BENEFIT OUR GRANT AND SCHOLARSHIP PROGRAMS AND PROVIDE FUNDS FOR THE AREAS OF GREATEST NEED WITHIN METHODIST LE BONHEUR HEALTHCARE AS DETERMINED BY OUR FOUNDATION BOARD OF DIRECTORS.THE METHODIST FOUNDATION AWARDS COLLEGE SCHOLARSHIPS TO CHILDREN AND DEPENDENTS OF ASSOCIATES WHO PLAN TO PURSUE A CAREER IN A HEALTH-RELATED FIELD OF STUDY. IN 2011, THE FOUNDATION PRESENTED 19 SCHOLARSHIPS TOTALING $22,000.MANY YEARS AGO, THE METHODIST FOUNDATION ESTABLISHED "THE HUMANITARIAN FUND" WHICH HELPS ASSOCIATES IN TIMES OF CRISIS (I.E., FIRE, CRIME, DEATH). IN 2011, THE FOUNDATION PROVIDED $302,583 IN SUPPORT OF THESE ASSOCIATES. THE HUMANITARIAN FUND PROGRAM HAD EXPENSES OF $91,150 AND REVENUE OF $79,702. THIS PROGRAM ALLOWS MLH ASSOCIATES TO CREATE FUNDS FOR SPECIFIC ASSOCIATES TO HELP THEM IN THEIR TIME OF DIRE NEED.THE NURSE LEADER INSTITUTE OF MHF HAD EXPENSES OF $99,016 AND REVENUE OF $106,711. THIS INSTITUTE IS FUNDED BY THE H.R.S.A.-NURSE EDUCATION PRACTICE RETENTION GRANT FUNDING STREAM, AND IT PROVIDES LEADERSHIP TRAINING AND COACHING FOR MID-LEVEL AND FRONTLINE NURSE LEADERS, WITH A GOAL OF IMPROVED RN RETENTION AND LEADING TO GREATER EXPERTISE IN PROVIDING PATIENT CARE AND IMPROVED PATIENT OUTCOMES.EXTERNAL ACCOUNTS AND HOSPITAL/DEPARTMENTAL FUNDS, INCLUDING OUR AUXILIARY'S FUNDRAISING, REPRESENTED $439,068 IN EXPENSES AND $159,915 IN REVENUE.OTHER FUNDRAISING INITIATIVES FOR METHODIST LE BONHEUR HEALTHCARE SERVICE LINES AND PROGRAMS HAD REVENUES OF $353,025 AND EXPENSES OF $252,901. 1440331 949196 4470565 1 1 0 0 0 0 0 0 0 1 1 1 0 1 0 1 0 1 0 0 0 0 0 1 1 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 58 0 1 16 1 0 0 0 0 0 1 1 0 0 0 0 X 19 18 1 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 TN X X X SUE WAUGH 9015160656 1211 UNION AVENUE SUITE 600 MEMPHIS TN 38104 X PAULA JACOBSON 40.00 X X 252186 0 46409 SUSAN MURRMANN 2.00 X X 0 0 0 L KIRKPATRICK BOBO 2.00 X X 0 0 0 CAROLE W WEST 2.00 X X 0 0 0 NANCY BARNETT 2.00 X 0 0 0 JEANNE JEMISON 2.00 X 0 0 0 DEBBIE JONES 2.00 X 0 0 0 ANDREW MCCARROLL 2.00 X 0 0 0 REV DR DEBORAH SMITH 2.00 X 0 0 0 REV DR ERIC WINSTON 2.00 X 0 0 0 LEWIS WILLIAMSON 2.00 X 0 0 0 THOMAS MARTY CARR 2.00 X 0 0 0 MAURICE ELLIOTT 2.00 X 0 0 0 JOHN GLASS 2.00 X 0 0 0 DENNIS HIGDON 2.00 X 0 0 0 WILLIAM TAD MAYS JR 2.00 X 0 0 0 JOHN PETTEY 2.00 X 0 0 0 SALLY SHY 2.00 X 0 0 0 BRIDGET TRENARY 2.00 X 0 0 0 ED ROBERTSON 2.00 X 0 0 0 B LANE CARRICK 2.00 X 0 0 0 BENA CATES 2.00 X 0 0 0 REV CYNTHIA DAVIS 2.00 X 0 0 0 REV RICK KIRCHOFF 2.00 X 0 0 0 W STEVEN WEST 2.00 X 0 417051 89839 LARRY SPRATLIN 2.00 X 0 276095 62960 CHRISTOPHER MCLEAN 2.00 X 0 621300 136733 MARK BILLINGSLEY 40.00 X 123736 0 18314 LORI KESSLER 40.00 X 149672 0 28735 ROBERT PLUNK 40.00 X 108510 0 25107 634104 1314446 408097 4 0 1 0 AMERICAN PROGRAM BUREAU 313 WASHINGTON STREET STE 225 NEWTON MA 02458 SPEAKER TALENT AGENCY 125000 1 91684 413665 10505 250940 4302850 9120 5069644 100650 100650 81299 413665 342456 -261157 -261157 4909137 0 0 -160507 1523872 1523872 1796438 1796438 252186 126093 126093 424183 199156 225027 93662 93662 48516 48516 42533 16758 25775 1448 1448 63613 63613 63199 58159 5040 1890 1890 69637 63157 6480 1308 1308 4231 1375 2856 25896 22418 3478 476483 476483 3240 3240 447 447 SICKLE CELL CENTER 659120 659120 OTHER PROJECT DISBURSEM 392119 392119 NURSE LEADERSHIP TRAINI 99016 99016 MISCELLANEOUS EXPENSE 17968 17957 11 6061005 4470565 1132067 458373 637 17700 3512019 2931245 208358 199242 6949 9116 8035454 7536604 1040224 1913143 1775873 1567042 14371156 13974850 324899 540047 324899 540047 X 5543953 5163087 8502304 8271716 14046257 13434803 14371156 13974850 X -1151868 540414 X X 0 1 1 X 1 1 X X X 0 0 0 METHODIST HEALTHCARE - MEMPHIS HOSPITALS 620479367 3 1 1 1 1091067 METHODIST LE BONHEUR HEALTHCARE 581454711 3 1 1 1 195395 ALLIANCE HEALTH SERVICES INC 620841121 9 1 1 1 223000 3 1509462 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 8502305 1046041 96373 1373003 8271716 11410332 2762788 278478 1195806 4753487 8502305 10163577 1510669 362622 260261 366275 11410332 7204323 4813973 -417684 324504 1112531 10163577 1.00000 0 0 208358 199242 9116 9116 HEDGE FUND OF FUNDS-LONG/SHORT EQUITY 526239 F PRIVATE REAL ESTATE COMINGLED FUND 367010 F COMINGLED EQUITY SECURITIES 1019894 F 1913143 CSV-LIFE ENDOWMENT 538954 DIVERSIFIED UNITRUST 510947 CHARITABLE REM UNITRUST - MERRIL LYNCH 360503 ADVANCES TO AFFILIATES 156638 1567042 4909137 6061005 -1151868 540414 540414 -611454 5315524 540414 540414 4775110 476483 -342456 134027 4909137 5926978 342456 342456 5584522 476483 476483 6061005 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: THE FOUNDATION RECEIVED A LIMITED AMOUNT OF DONOR-RESTRICTED ENDOWMENT FUNDING AND DOES NOT MAINTAIN ANY BOARD-DESIGNATED ENDOWMENTS. IN ALL MATERIAL RESPECTS, INCOME FROM THE DONOR RESTRICTED ENDOWMENT FUNDS IS ITSELF RESTRICTED TO SPECIFIC DONOR-DIRECTED PURPOSES, AND IS THEREFORE ACCOUNTED FOR WITHIN TEMPORARILY RESTRICTED NET ASSETS UNTIL EXPENDED IN ACCORDANCE WITH THE DONOR'S WISHES. FOUNDATION FUNDS ARE INVESTED IN SECURITIES THAT, FROM TIME TO TIME, CAN EXPERIENCE DROPS IN MARKET VALUATIONS. WHILE OUR INVESTMENT POLICIES ARE CONSERVATIVE AND STRIVE TO PROTECT PRINCIPAL AND CORPUS, THERE IS NO ASSURANCE THAT THE ABSOLUTE VALUE OF FUNDS CANNOT DROP BELOW ORIGINAL VALUE DURING TIMES OF SEVERE MARKET DROPS. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE ORGANIZATION CONSOLIDATES ITS AUDIT WITH ITS CORPORATE PARENT AND OTHER SUBSIDIARIES OF THE PARENT. THE FOLLOWING STATEMENT REFLECTS THE FIN 48 FOOTNOTE OF THE CONSOLIDATED GROUP. THE INTERNAL REVENUE SERVICE HAS DETERMINED THAT THE SYSTEM AND ALL OF THE NONPROFIT AFFILIATES FOR WHICH THE SYSTEM OR ITS BOARD OF DIRECTORS IS CONTROLLING MEMBER ARE EXEMPT FROM FEDERAL INCOME TAX UNDER INTERNAL REVENUE CODE (IRC) SECTION 501(A) AS ORGANIZATIONS DESCRIBED IN SECTION 501(C)(3). AS QUALIFIED TAX-EXEMPT ORGANIZATIONS, THE SYSTEM'S NONPROFIT AFFILIATES MUST OPERATE IN CONFORMITY WITH THE IRC TO MAINTAIN THEIR TAX-EXEMPT STATUS. INCOME TAX FROM THE OPERATIONS OF THE SYSTEM'S WHOLLY OWNED FOR-PROFIT SUBSIDIARY, AMBULATORY OPERATIONS, INC., AND ITS SUBSIDIARIES IS NOT SIGNIFICANT. THE SYSTEM APPLIES FASB ASC TOPIC 740 (TOPIC 740), ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES. TOPIC 740 CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAX POSITIONS AND PROVIDES GUIDANCE ON WHEN TAX POSITIONS ARE RECOGNIZED IN AN ENTITY'S FINANCIAL STATEMENTS AND HOW THE VALUES OF THESE POSITIONS ARE DETERMINED. THERE HAS BEEN NO IMPACT ON THE SYSTEM'S COMBINED FINANCIAL STATEMENTS AS A RESULT OF TOPIC 740. PART XII, LINE 4B - OTHER ADJUSTMENTS: DIRECT FUNDRAISING EXPENSES -342,456. PART XIII, LINE 2D - OTHER ADJUSTMENTS: DIRECT FUNDRAISING EXPENSES 342,456. X X X X X X X 1 GASKILL STRATEGIES LLC 2125 CENTRAL AVE MEMPHIS TN 38104 CONSULTATION 0 0 57613 0 HOLTZCLAW GROUP 1781 CARR MEMPHIS TN 38104 CONSULTATION 0 0 6000 0 63613 AR TN MS CANCER CENTER LUNCHEON 328924 280065 48859 2141 24630 43677 125500 14441 MH GOLF CLASSIC 166040 133600 32440 11558 36547 6892 150 3584 1 2714 16205 36292 500 17625 494964 413665 81299 16413 77382 86861 126150 35650 342456 -261157 1 ALLIANCE HEALTH SERVICES INC 6400 SHELBY VIEW SUITE 101 MEMPHIS TN 38104 620841121 501(C)(3) 223000 14410 FMV VARIOUS MEDICAL EQUIPMENT VARIOUS PROGRAMS AND OPERATIONAL SUPPORT METHODIST HEALTHCARE - MEMPHIS HOSPITALS 1265 UNION AVE MEMPHIS TN 38104 620479367 501(C)(3) 1091067 CONSTRUCTION OF EXCELLENCE CENTER. SEE FORM 990, PART III FOR ADDITIONAL DETAILS METHODIST LE BONHEUR HEALTHCARE 1211 UNION AVENUE SUITE 700 MEMPHIS TN 38104 581454711 501(C)(3) 195395 OPERATIONAL SUPPORT 3 0 PHYSICIANS' RESEARCH NETWORK - SUPPORT SERVICES AND REGULATORY ASSISTANCE FOR TRIALS MANAGEMENT 456 1280047 COLLEGE SCHOLARSHIPS 19 22000 THE HUMANITARIAN FUND - ASSISTANCE IN TIMES OF CRISIS 447 302583 THE HELP FUND 92 91150 GRANT AND SCHOLARSHIP PROGRAMS 100658 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: THE GRANT REVIEW COMMITTEE (GRC) OF THE METHODIST HEALTHCARE FOUNDATION (MHF) BIANNUALLY ASSESSES PROPOSALS, IN THE FORMAT PROVIDED AS PART OF ITS GRANT APPLICATION PACKET, FOR FUNDING. PROJECTS ARE FUNDED BASED ON A STANDARD ADMINISTRATION PROCESS ESTABLISHED BY THE GRC. ADDITIONALLY, FUNDED PROJECTS INCLUDE THOSE THAT FIT CURRENT GRANT MAKING PRIORITIES OF METHODIST LE BONHEUR HEALTHCARE (MLH). GRANT APPLICATION PROCESS: 1. ELIGIBILITY CRITERIA. TO BE ELIGIBLE FOR THE GRANT, THE APPLICANT MUST FOCUS ON CLINICAL RESEARCH OR HEALTH OUTCOMES RELATED TO THE MISSION, GOALS AND STRATEGIC PLAN OF MLH, BE A MEMBER OF THE MLH MEDICAL STAFF IN GOOD STANDING WITH MLH, AND HAVE RECEIVED APPROPRIATE ADMINISTRATIVE OR INSTITUTIONAL REVIEW BOARD APPROVAL, IF APPLICABLE. 2. GRANT MAKING PRIORITIES. THE GRC FUNDS PROJECTS OF MANY TYPES, INCLUDING RESEARCH. THE GRC WILL GIVE PRIORITY TO PROJECTS THAT FIT THE MISSION AND GOALS OF MLH. THE GRANT AWARD PROGRAM PROVIDES SUPPORT TO GROUPS AND INDIVIDUALS THAT COMPLEMENT THE WORK CONDUCTED IN AREAS OF MOST INTEREST TO MLH, SPECIFICALLY NEUROSCIENCE, TRANSPLANTATION, CANCER, PATIENT SAFETY, QUALITY OF CARE, AND NURSING EXCELLENCE AND EDUCATION. DUE TO THE HIGH LEVEL OF COMPETITION FOR PHILANTHROPIC RESOURCES, SOME TYPES OF PROJECTS ARE NOT SUPPORTED AS A MATTER OF GENERAL POLICY. THE FOLLOWING IS A LIST OF ACTIVITIES THAT ARE NOT SUPPORTED BY THE GRANT REVIEW PROCESS OF THE FOUNDATION: - BASIC SCIENCE - ONGOING GENERAL OPERATING EXPENSES OR EXISTING DEFICITS - INDIRECT COSTS - POLITICAL CONTRIBUTIONS - PROJECTS IN CONFLICT WITH THE MISSION STATEMENT OF MLH - PROJECTS IN CONFLICT WITH THE SOCIAL PRINCIPLE OF THE UNITED METHODIST CHURCH ADDITIONALLY, THE GRC RARELY AWARDS GRANTS FOR: - CONFERENCES OR SYMPOSIA (UNLESS THEY ARE CLEARLY RELATED TO THE FOUNDATION'S GOALS AND PRIORITIES) - PUBLICATIONS OR MEDIA PROJECTS, EXCEPT THOSE THAT GROW OUT OF ONE OF OUR GRANT PROGRAMS 0 1 0 0 0 0 0 1 0 PAULA JACOBSON 195251 0 38798 0 18137 0 38228 0 8181 0 298595 0 13899 0 W STEVEN WEST 0 310320 0 78691 0 28040 0 76298 0 13541 0 506890 0 22404 LARRY SPRATLIN 0 233595 0 19825 0 22675 0 49659 0 13301 0 339055 0 19312 CHRISTOPHER MCLEAN 0 465323 0 114042 0 41935 0 123432 0 13301 0 758033 0 36815 LORI KESSLER 137960 0 11712 0 0 0 15434 0 13301 0 178407 0 0 0 PART I, LINE 4B THE PURPOSE OF THE METHODIST LE BONHEUR HEALTHCARE CONSOLIDATED EXECUTIVE DEFERRED COMPENSATION PLAN IS TO PROVIDE RETIREMENT BENEFITS FOR CERTAIN EXECUTIVE LEVEL EMPLOYEES IN ADDITION TO THE BENEFITS PROVIDED THROUGH THE OTHER RETIREMENT PLANS THAT ARE SPONSORED BY THE COMPANY. IT IS INTENDED THAT THIS PLAN COMPLY WITH INTERNAL REVENUE CODE SECTION 457(F) AND QUALIFY FOR THE SHORT TERM DEFERRAL EXCEPTION TO CODE SECTION 409A. UNDER THE PLAN, CORPORATE EXECUTIVES AT OR ABOVE THE VICE PRESIDENT LEVEL ARE ELIGIBLE TO RECEIVE EXECUTIVE DEFERRED COMPENSATION CREDITS DEPENDING ON THEIR POSITION CLASSIFICATION [6%,8%,10%,12% OF BASE SALARY]. EACH PLAN YEAR, THE EXECUTIVE MUST ELECT A DEFERRED VESTING DATE TO BE APPLIED TO THE DEFERRED COMPENSATION CREDIT THAT WILL BE EARNED IN THAT PLAN YEAR. THE DEFERRED VESTING DATE IS SUBJECT TO A VESTING SCHEDULE THAT REQUIRES A MINIMUM DEFERRAL OF 5 YEARS TO BECOME VESTED. UPON REACHING AGE 55, THE MINIMUM DEFERRAL IS REDUCED TO 3 YRS. UPON REACHING AGE 60, THE MINIMUM DEFERRAL IS REDUCED TO 2 YRS. AT AGE 64, A CASH EQUIVALENT IS PROVIDED TO THE EXECUTIVE AND NO ADDITIONAL DEFERRALS ARE MADE UNDER THIS PLAN. THE PLAN IS UNFUNDED WITH ALL BENEFITS PAID FROM THE COMPANY'S GENERAL ASSETS. HOWEVER, THE EXECUTIVE IS ALLOWED TO DIRECT THE INVESTMENTS OF HIS DEFERRED COMPENSATION CREDIT IN A MENU OF INVESTMENT ALTERNATIVES MADE AVAILABLE BY THE COMPANY. UPON VESTING, A DISTRIBUTION IS PROVIDED LESS APPLICABLE TAX. IN THE CASE OF A VOLUNTARY TERMINATION OF EMPLOYMENT BY THE EXECUTIVE OR INVOLUNTARY TERMINATION OF EMPLOYMENT FOR CAUSE BY THE COMPANY, THE NON-VESTED FUNDS ARE FORFEITED. ACCELERATED VESTING (100%) IS ALLOWED UPON DEATH, DISABILITY OR AN INVOLUNTARY TERMINATION BY THE COMPANY WITHOUT CAUSE. ALLOCATIONS TO THE PLAN FOR 2011 INCLUDE THE FOLLOWING: PAULA JACOBSON - $ 15,531 CHRISTOPHER MCLEAN - 54,104 LARRY SPRATLIN - 18,629 W. STEVEN WEST - 25,362 PART I, LINE 7 THE MANAGEMENT INCENTIVE PLAN INTENDS TO REWARD MANAGEMENT FOR THE ACHIEVEMENT OF PERFORMANCE AGAINST A PRE-ESTABLISHED SET OF BALANCED AND CHALLENGING GOALS. THE PLAN ALSO INCLUDES A PROVISION THAT DEFERS VESTING OF A PORTION OF THE AWARD SUBJECT TO CONTINUED EMPLOYMENT (WITH A SUBSTANTIAL RISK OF FORFEITURE) TO ENCOURAGE RETENTION OF EXECUTIVES. THIS PLAN IS REVIEWED BY AN EXTERNAL THIRD-PARTY CONSULTANT. SUPPLEMENTAL INFORMATION PART III PART I, LINE 3: THE BOARD OF METHODIST LE BONHEUR HEALTHCARE, A RELATED ORGANIZATION AND CORPORATE OVERSIGHT ENTITY, CONDUCTS THE FOLLOWING METHODS TO ESTABLISH COMPENSATION FOR ITS OFFICERS AND KEY EMPLOYEES: - COMPENSATION COMMITTEE - INDEPENDENT COMPENSATION CONSULTANT - COMPENSATION STUDY / SURVEY - APPROVAL BY THE BOARD / COMPENSATION COMMITTEE FORM 990, PART VI, SECTION A, LINE 2 DUE TO THE INTER-CONNECTIVE NATURE OF BUSINESS, A FEW INDIVIDUALS ON THE BOARD WERE IDENTIFIED AS HAVING BUSINESS RELATIONSHIPS WITH OTHER BOARD MEMBERS. THE METHODIST HEALTHCARE FOUNDATION DIRECTOR SELECTION COMMITTEE HAS TAKEN GREAT CARE IN IDENTIFYING THESE RELATIONSHIPS PRIOR TO SELECTION TO ENSURE THE INTEGRITY OF BOARD DECISIONS ARE PRESERVED AND POTENTIAL CONFLICTS OF INTEREST ARE MINIMIZED IN THE FUTURE. BOARD MEMBERS L. KIRKPATRICK BOBO AND JOHN PETTEY HAVE A BUSINESS RELATIONSHIP. FORM 990, PART VI, SECTION A, LINE 6 METHODIST HEALTHCARE FOUNDATION IS A SUBSIDIARY OF METHODIST LE BONHEUR HEALTHCARE (MLH, 58-1454711) WITH MLH AS THE SOLE MEMBER. FORM 990, PART VI, SECTION A, LINE 7A AS THE SOLE MEMBER OF THE ORGANIZATION, MLH AND ITS BOARD OF DIRECTORS ELECT ALL MEMBERS OF THE GOVERNING BODY FOR METHODIST HEALTHCARE FOUNDATION. FORM 990, PART VI, SECTION A, LINE 7B THE MEMBER SHALL FROM TIME TO TIME ADOPTS AND PROMULGATE SUCH AMENDMENTS, AS THEY SHALL DEEM APPROPRIATE TO THESE BYLAWS AND TO THE GENERAL POLICIES AND GUIDELINES OF THE CORPORATION, ALL OF WHICH SHALL BE CONSISTENT WITH THE PURPOSES OF THE CORPORATION. UPON REQUEST BY THE BOARD OF DIRECTORS AND AT SUCH OTHER TIMES AS THE MEMBER MAY SELECT, THE MEMBER SHALL REVIEW THE AFFAIRS OF THE CORPORATION AND TAKE SUCH ACTION AS IT MAY DEEM APPROPRIATE IN ACCORDANCE WITH THESE BYLAWS. THE FOLLOWING ITEMS, AFTER BEING REVIEWED AND ADOPTED BY THE BOARD OF DIRECTORS, SHALL BE SUBMITTED TO THE MEMBER FOR APPROVAL: - IN THE LAST MONTH OF EACH FISCAL YEAR, A STRATEGIC PLAN, AND A ONE (1) YEAR OPERATING BUDGET OF THE CORPORATION'S ENSUING FISCAL YEAR, AND THEREAFTER, ANY ACTION WHICH WILL RESULT IN A SUBSTANTIAL CHANGE IN THE EXPENDITURES OR REVENUE FORECAST IN ANY SUCH PLANS OR BUDGETS; - ANY SALE, EXCHANGE, GIFT MORTGAGE, OPTION, LEASE WITH A TERM IN EXCESS OF ONE (1) YEAR (EXCEPT TO DOCTORS FOR OFFICE SPACE), OR OTHER DISPOSITION OF ANY REAL PROPERTY (INCLUDING IMPROVEMENTS THEREON) OR INTEREST THEREIN OWNED BY THE CORPORATION, OR ANY OTHER ASSET OR ASSETS OWNED BY THE CORPORATION WITH A VALUE IN EXCESS OF FIVE HUNDRED THOUSAND DOLLARS ($500,000), EXCEPT WITH RESPECT TO TRANSACTIONS SPECIFIED AND PREVIOUSLY APPROVED WITHIN THE CAPITAL OR OPERATING BUDGETS; - ANY APPLICATION FOR A GOVERNMENT GRANT; - ANY AMENDMENT OR RESTATEMENT OF THE CORPORATE CHARTER OR ANY PLAN OF MERGER, CONSOLIDATION OR DISSOLUTION OF THE CORPORATION; - ANY INDEMNIFICATION OF PERSONS BY THE CORPORATION EXCEPT AS SPECIFIED IN THESE BYLAWS; - ANY ACTION OR INACTION AT VARIANCE WITH THE STATED POLICIES OF THE CORPORATION, WHICH POLICIES HAVE BEEN APPROVED BY THE MEMBER; - THE NEGOTIATION, IMPLEMENTATION, NON-RENEWAL OR ANY OTHER ACTION TAKEN WITH RESPECT TO ANY MANAGEMENT CONTRACT; - ANY RELEASE OR CANCELLATION BY THE CORPORATION OF A CLAIM OR RIGHT OF ACTION AGAINST ANOTHER PARTY IN AN AMOUNT IN EXCESS OF FIVE HUNDRED THOUSAND DOLLARS ($500,000); - THE SELECTION OF ANY BANKING INSTITUTIONS AS A DEPOSITORY OF CORPORATE FUNDS; AND - ANY OTHER MATTERS AS MAY BE REQUIRED BY LAW TO BE SUBMITTED TO THE MEMBER OF A NOT FOR PROFIT CORPORATION. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS PREPARED BY AN INDEPENDENT ACCOUNTING FIRM WITH INPUT FROM HUMAN RESOURCES, LEGAL, COMPLIANCE, AND FINANCE DEPARTMENTS AND EXTERNAL FINANCIAL CONSULTANTS. FINANCIAL INFORMATION IS RECONCILED TO AUDITED FINANCIAL STATEMENTS AS APPROPRIATE. THE INFORMATION TO BE DISCLOSED REGARDING COMPENSATION IS REVIEWED WITH THE COMPENSATION COMMITTEE OF THE BOARD. THE RETURN IS REVIEWED BY THE CHIEF FINANCIAL OFFICER OF MLH AND MANAGEMENT OF THE ORGANIZATION AS APPROPRIATE. A COPY OF THE RETURN IS PROVIDED TO EACH BOARD MEMBER VIA E-MAIL PRIOR TO FILING THE RETURN. FORM 990, PART VI, SECTION B, LINE 12C METHODIST LE BONHEUR HEALTHCARE, THE PARENT ORGANIZATION, EMPLOYS A COMPLIANCE OFFICER WHO MONITORS AND ENFORCES COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY FOR ALL VOTING BOARD MEMBERS AND APPLICABLE OFFICERS. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION FOR OFFICERS AND KEY EMPLOYEES OF THE ORGANIZATION IS DETERMINED BY THE BOARD OF DIRECTORS OF METHODIST LE BONHEUR HEALTHCARE, THE PARENT ORGANIZATION. AN EXTERNAL INDEPENDENT CONSULTANT ADVISES THE BOARD COMPENSATION COMMITTEE ON EXECUTIVE SALARY AND INCENTIVE COMPENSATION. BENEFITS ARE PERIODICALLY BENCHMARKED BY A SEPARATE EXTERNAL CONSULTANT AND ANY CHANGES ARE APPROVED BY THE BOARD OF DIRECTORS COMPENSATION COMMITTEE. THE COMPENSATION COMMITTEE IS COMPRISED OF INDEPENDENT MEMBERS AND IS A SUBGROUP OF THE FULL BOARD OF DIRECTORS. THE COMPENSATION CONSULTANT ANNUALLY DEVELOPS TOTAL CASH COMPENSATION COMPARISONS OF PEER NON-PROFIT SYSTEMS ESTABLISHED BY THE COMPENSATION COMMITTEE. THE COMPENSATION CONSULTANT INTERPRETS THE INFORMATION AND PROVIDES AN OPINION OF REASONABLENESS ON THE TOTAL CASH COMPENSATION PACKAGE. THE COMPENSATION COMMITTEE APPROVES ANY CHANGES TO THE COMPENSATION AND EXECUTIVE BENEFIT STRUCTURE OF THE CEO AND OTHER TOP EXECUTIVES, OTHERWISE KNOWN AS DISQUALIFIED CANDIDATES. ALL OTHER COMPENSATION DECISIONS ARE DETERMINED BY ARRANGEMENT AS DELEGATED BY THE BOARD OF DIRECTORS. THE COMMITTEE DOCUMENTS ALL DETERMINATIONS. FORM 990, PART VI, SECTION C, LINE 18 PHOTOCOPIES OF THE FORM 990 ARE AVAILABLE UPON REQUEST AT THE ORGANIZATION'S ADMINISTRATIVE OFFICE. IN ADDITION, RECENT FILINGS OF THE FORM 990 ARE AVAILABLE ONLINE AT OUR WEBSITE IN THE "ABOUT US" SECTION, OR AT WWW.GUIDESTAR.ORG. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S FINANCIAL STATEMENTS ARE AUDITED IN A CONSOLIDATION WITH ITS CORPORATE PARENT, METHODIST LE BONHEUR HEALTHCARE, AND RELATED SUBSIDIARIES. INFORMATION ON FINANCIAL STATEMENTS IS AVAILABLE BY CONTACTING THE ORGANIZATION'S CORPORATE OFFICE. PLEASE SEE FORM 990, PART VI, LINE 20 FOR DETAILS. CONFLICT OF INTEREST POLICY AND GOVERNING DOCUMENTS FOR ALL AFFILIATES OF METHODIST LE BONHEUR HEALTHCARE ARE ALSO AVAILABLE BY REQUEST. FORM 990, PART VII, LINE 1: AVERAGE HOURS FOR RELATED ORGANIZATIONS: W. STEVEN WEST - 32 HOURS LARRY SPRATLIN - 40 HOURS CHRISTOPHER MCLEAN - 40 HOURS CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 540,414. FORM 990, PART XII, LINE 2C: THE PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. METHODIST LE BONHEUR HEALTHCARE 1211 UNION AVENUE SUITE 700 MEMPHIS TN 38104 581454711 SUPPORTING ORGANIZATION TN 501(C)(3) LINE 11B, II N/A 0 METHODIST HEALTHCARE - MEMPHIS HOSPITALS 1265 UNION AVENUE MEMPHIS TN 38104 620479367 HOSPITALS TN 501(C)(3) LINE 3 METHODIST LE BONHEUR HEALTHCARE 0 METHODIST HEALTHCARE - FAYETTE HOSPITAL 214 LAKEVIEW DRIVE SOMERVILLE TN 38068 620862334 HOSPITAL TN 501(C)(3) LINE 3 METHODIST LE BONHEUR HEALTHCARE 0 METHODIST EXTENDED CARE HOSPITAL INC 225 SOUTH CLAYBROOK MEMPHIS TN 38104 621518342 HOSPITAL TN 501(C)(3) LINE 3 METHODIST LE BONHEUR HEALTHCARE 0 METHODIST HEALTHCARE PRIMARY CARE ASSOCIATES 1211 UNION AVENUE SUITE 657 MEMPHIS TN 38104 582078931 OUTPATIENT HEALTHCARE TN 501(C)(3) LINE 9 METHODIST LE BONHEUR HEALTHCARE 0 METHODIST HEALTHCARE COMMUNITY CARE ASSOCIATES 6400 SHELBY VIEW SUITE 101 MEMPHIS TN 38134 621403517 OUTPATIENT HEALTHCARE TN 501(C)(3) LINE 9 METHODIST LE BONHEUR HEALTHCARE 0 ALLIANCE HEALTH SERVICES INC 6400 SHELBY VIEW SUITE 101 MEMPHIS TN 38134 620841121 HEALTHCARE TN 501(C)(3) LINE 9 METHODIST LE BONHEUR HEALTHCARE 0 LE BONHEUR CHILDREN'S HOSPITAL FOUNDATION 850 POPLAR AVENUE BLDG 2 MEMPHIS TN 38105 621872938 FOUNDATION TN 501(C)(3) LINE 11A, I METHODIST LE BONHEUR HEALTHCARE 0 LE BONHEUR COMMUNITY HEALTH AND WELL-BEING 50 PEABODY PLACE MEMPHIS TN 38103 621251288 FOUNDATION TN 501(C)(3) LINE 7 LE BONHEUR CHILDREN'S FOUNDATION 0 METHODIST HEALTHCARE-JONESBORO HOSPITAL 1211 UNION AVENUE SUITE 657 MEMPHIS TN 38104 710499625 INACTIVE HOSPITAL TN 501(C)(3) LINE 3 METHODIST LE BONHEUR HEALTHCARE 0 METHODIST HEALTHCARE-DYERSBURG HOSPITAL 1211 UNION AVENUE SUITE 657 MEMPHIS TN 38104 621155084 INACTIVE HOSPITAL TN 501(C)(3) LINE 3 METHODIST LE BONHEUR HEALTHCARE 0 METHODIST HEALTHCARE CENTRAL MS MEDICAL ASSOCIATES 1211 UNION AVENUE SUITE 657 MEMPHIS TN 38104 640884720 INACTIVE HOSPITAL TN 501(C)(3) LINE 3 METHODIST LE BONHEUR HEALTHCARE 0 METHODIST HEALTHCARE-JACKSON HOSPITAL 1211 UNION AVENUE SUITE 657 MEMPHIS TN 38104 640794199 INACTIVE HOSPITAL TN 501(C)(3) LINE 3 METHODIST LE BONHEUR HEALTHCARE 0 METHODIST HEALTHCARE-MIDDLE MISSISSIPPI HOSPITAL 1211 UNION AVENUE SUITE 657 MEMPHIS TN 38104 640698911 INACTIVE HOSPITAL TN 501(C)(3) LINE 3 METHODIST LE BONHEUR HEALTHCARE 0 DESOTO DIAGNOSTIC IMAGING LLC 9085 SANDIDGE CTR CV OLIVE BRANCH MS 38654 621802576 RADIOLOGY MS N/A NORTH SURGERY CENTER LP 3960 NEW COVINGTON PIKE MEMPHIS TN 38128 621685756 SURGERY CENTER TN N/A METHODIST SURGERY CENTER-GERMANTOWN LP 1363 S GERMANTOWN ROAD GERMANTOWN TN 38138 621659904 SURGERY CENTER TN N/A HAMILTON EYE INSTITUTE SURGERY CENTER LP 930 MADISON AVE 3RD FLOOR MEMPHIS TN 38103 202873438 SURGERY CENTER TN N/A AMBULATORY OPERATIONS INC 1211 UNION AVENUE SUITE 600 MEMPHIS TN 38104 621157166 MEDICAL SERVICES TN N/A C SOLUS MANAGEMENT SERVICES INC 6400 SHELBY VIEW SUITE 101 MEMPHIS TN 38134 621361349 HEALTH SERVICES MANAGEMENT TN N/A C MEMPHIS PROFESSIONAL BUILDING INC 1211 UNION AVENUE SUITE 600 MEMPHIS TN 38104 621847544 INVESTMENTS TN N/A C 0 1 1 1 0 0 0 0 1 1 1 1 0 1 1 0 0 0