2012-11-14T17:16:52-06:00 2011-12-31 861065772 DELOITTE TAX LLP 1111 BAGBY STREET SUITE 4500 HOUSTON TX 770022591 990 2011-01-01 741180155 THE METHODIST HOSPITAL METH 8326676160 6565 Fannin No GB240 Houston TX 770302707 Kevin J Burns 7134413421 2012-11-14 1 Nancy Z Evetts P00407310 7139822000 2011 2016-02-24 21:20:13Z Kevin J Burns 6565 Fannin Houston TX 77030 3504762116 0 5792 X www.methodisthealth.com X 1946 TX PROVIDE MEDICAL CARE (SEE MISSION STATEMENT ON PAGE 2) 25 22 7745 196 429916 0 8808654 9159499 1187213665 1232011052 -24794667 22708757 24203482 23599480 1195431134 1287478788 6685648 6482892 0 0 503504187 490072124 0 0 0 638104199 676687881 1148294034 1173242897 47137100 114235891 4871953096 4927064658 2038986438 2044416806 2832966658 2882647852 X To provide high quality, cost-effective health care that delivers the best value to the people we serve in a spiritual environment of caring in association with internationally recognized teaching and research. 0 0 938801652 6482892 1232011052 SEE SCHEDULE OCurrently The Methodist Hospital operates 840 staffed beds in its Texas Medical Center facilities. The Methodist Hospital recorded 373,275 visits during 2011 which were comprised of 290,038 outpatient visits, 46,651 emergency room visits and 36,586 inpatient visits. And it performed 15,495 inpatient surgeries and 17,787 outpatient surgeries in 2011.The principal medical services available at The Methodist Hospital are Anesthesiology, Cardiovascular Surgery, Oral & Maxillofacial-Hospital Dentistry, Dermatology, Family Medicine, General Surgery, Internal Medicine, Atherosclerosis/Lipoprotein, Cardiology, Clinical Immunology, Gastroenterology, General Medicine, Hematology, Hypertension, Infectious Diseases, Medical Genetics, Metabolic and Endocrine Diseases, Nuclear Medicine, Oncology, Pharmacology, Pulmonary Diseases, Renal Diseases, Rheumatology, Neurophysiology, Neurosurgery, Obstetrics and Gynecology, Ophthalmology, Orthopedic Surgery, Otolaryngology-Head & Neck Surgery, Pathology, Pediatrics, Physical Medicine and Rehabilitation, Plastic Surgery, Psychiatry, Radiology, Radiotherapy, and Urology. The Methodist Hospital also offers a range of additional patient services, including ambulatory surgery, a blood donor center, diabetes treatment in a dedicated inpatient unit, a rehabilitation center, a skilled nursing facility, and a broad range of preventive health care instruction, including smoking cessation, stress management, weight control, and cardiac and pulmonary rehabilitation.General outpatient services offered by The Methodist Hospital include audiology, speech pathology, psychiatric services, diagnostic cardiology (including nuclear cardiology, echocardiography, electrocardiography, pacemaker evaluation, and coronary catheterization), chronic renal dialysis, endoscopy, emergency services, general and diagnostic radiology (including fluoroscopy, ultrasound, mammography, myelography, CT scanning, and MRI), nuclear medicine, pathology, peripheral vascular laboratory, dermatology, physical medicine, radiotherapy, sleep studies and neurophysiologic evaluations, and surgery.The Methodist Hospital operates a multi-organ transplant center. Transplants being performed at present include kidney, heart, lungs, liver, pancreas, islet cell and bone marrow. The Methodist Hospital performed the first islet cell transplant in Texas of liver cells from a donor's pancreas to the liver of a diabetic patient resulting in donor cells producing insulin.The Methodist Hospital responds to the community's needs not only through the provision of medical care, but also through education of health professionals and patients, community health education, donations to health care related events and other services, and medical and health research. 938801652 1 1 0 1 0 0 0 0 0 1 1 0 0 1 1 1 0 1 0 0 1 0 0 0 0 0 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 X 1076 0 1 7745 1 1 1 1 CJ TU BD BR LH MY RP TH EZ DA EG GR HU ID KS PL CH TW IS AE CO RS 0 0 0 0 0 0 0 0 X 25 22 0 0 0 0 0 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 X Edward L Tyrrell FACHE 8326676160 6565 Fannin GB240 Houston TX 77030 X Methodist Hospital Group 2.00 X 82231 183256 21392 Methodist Hospital Group 40.00 X 3619944 0 105442 Methodist Hospital Group 50.00 X 3248166 0 289168 Methodist Hospital Group 50.00 X 1512590 0 146323 8462931 183256 562325 398 0 1 0 Methodist Hospital Group See Schedule O Houston TX 77030 See Schedule O 43341418 166 9159499 9159499 Patient Care Services 900099 1206876066 1206876066 Related Org. Rent 531390 25134986 25134986 1232011052 42450827 42450827 2196074000 1467258 2216615626 667702 -20541626 799556 -19742070 -19742070 Other Income 900099 16342506 16342506 Patient Food Services 900099 6894682 67624 6827058 Management Fee Income 541200 362292 362292 0 23599480 1287478788 1232011052 429916 45878321 6464292 6464292 18600 18600 7344951 941027 6403924 376961209 316221034 60740175 19053791 14557235 4496556 59116475 57806410 1310065 27595698 23090306 4505392 7056028 7056028 544000 544000 812880 812880 9435418 9435418 68498122 53377559 15120563 9329727 2565782 6763945 27474071 18902889 8571182 22918741 423885 22494856 23179469 674067 22505402 1996433 1010132 986301 398432 30275 368157 20758923 20758923 93970490 69673877 24296613 13825904 13825904 Medical Supplies 252842444 251856576 985868 Prof. Services (Net) 93144800 93144800 Bad Debt Expense 28011775 28011775 Property Taxes 1323828 31131 1292697 1166396 1166396 1173242897 938801652 234441245 0 43977213 48216160 163566566 178743874 18686352 22440671 33500214 29814863 2082644618 1077670557 1034332325 1004974061 2602818008 2567974623 17999567 17999567 957072851 1056900839 4871953096 4927064658 231584311 235495842 1741831967 1737666841 65570160 71254123 2038986438 2044416806 X 2832966658 2882647852 2832966658 2882647852 4871953096 4927064658 X 114235891 -64554697 X 0 1 1 X 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 812880 812880 937988772 938801652 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 383566 496653 523844 812880 2216943 250000 250000 250000 250000 1000000 1500000 105888889 9226495 -508641 -556289 114050454 82721284 20659008 8564737 -6056140 105888889 61269374 13855093 11116253 -3519436 82721284 43868781 2447456 16521527 -1558625 61269374 0.00000 0.89720 0.10280 0 1 1 56588356 89805431 146393787 1145038938 469187550 675851388 11164165 4609293 6554872 780047728 603873714 176174014 1004974061 Due from Affiliates 1001899063 Construction in Progress 41896223 Deposits and Miscellaneous Receivables 11399793 Deferred Financing Costs 1705760 1056900839 Reserve for Contingencies 63654123 Asset Retirement Obligation 7600000 71254123 Description of Intended Use of Endowment Funds: Part V, Line 4: The Methodist Hospital Foundation, a related organization of The Methodist Hospital, holds permanently restricted net assets which consist of 61 individual endowment accounts. Unless otherwise directed by the donor, gifts received for endowment accounts are invested consistent with The Methodist Hospital's approved investment policy. Unless otherwise directed by the donor, The Foundation has a policy of annually appropriating a certain percentage of each endowment account, which is then available to be spent consistent with donor intent. In order to preserve the real value of a donor's gift and to sustain funding consistent with donor intent, the annual appropriation rate is set to strike a reasonable balance between long-term objectives of preserving and growing each endowment fund for the future and providing stable, year-to-year appropriation amounts. Description of Uncertain Tax Positions Under FIN 48: Part X: Part X, Line 2: The Methodist Hospital's financial statements were audited by an independent accountant as part of a consolidated financial statement. Methodist did not recognize any adjustments related to uncertain tax positions as of December 31, 2011. CENTRAL AMERICA & THE CARIBBEAN 0 0 OFFSHORE CAPTIVE INSURANCE OPERATIONS EAST ASIA AND THE PACIFIC 0 0 PASSIVE INVESTMENT EUROPE 0 0 PASSIVE INVESTMENT MIDDLE EAST AND NORTH AFRICA 0 0 PASSIVE INVESTMENT SOUTH AMERICA 0 0 PASSIVE INVESTMENT RUSSIA & THE NEWLY INDEPENDENT STATES 0 0 PASSIVE INVESTMENT 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 X 1 X 1 0 1 1 28012700 0 28012700 0.02450 44140703 18980540 25160163 0.02200 172441 8970 163471 0.00010 72325844 18989510 53336334 0.04660 42255428 10273554 31981874 0.02790 83771520 168880 83602640 0.07300 5646289 0 5646289 0.00490 131673237 10442434 121230803 0.10580 203999081 29431944 174567137 0.15240 1 6333477 284044506 381502109 -97457603 X 1 1 1 1 The Methodist Hospital

6565 Fannin Houston TX 77030

X X X X Skilled Nursing Facility, Psych, Rehab Units The Methodist Hospital 1 1 1 200.000000000000 1 400.000000000000 1 X 1 1 X X X X 1 0 1 X 0 0 Part I, Line 3c: The Methodist Hospital uses Federal Poverty Guidelines (FPG) and other information to determine eligibility for providing free care and discounted care to low income individuals. Part I, Line 6a: The Methodist Hospital System (the "System", The Methodist Hospital is the flagship hospital of the System) prepares an annual community benefit report which is made available to the public. This report includes charity care and community benefits provided by The Methodist Hospital and four other related acute care community hospitals in Harris County and in neighboring Fort Bend County, Texas. Part I, Line 7: The costing methodology used to calculate the amounts reported in the Table in Part I was a cost to charge ratio derived from Worksheet 2 (Ratio of Patient Care Cost to Charges), as provided in the instructions to Form 990 Schedule H. Part I, Line 7g: The Methodist Hospital has not reported any subsidized health services in Part I, line 7(g). Part I, L7 Col(f): The amount of bad debt expense that was included in the Form 990, Part IX, line 25, column (a), but removed from this figure for purpose of calculating the percentage in Schedule H, Part I, line 7, column (f) was $28,011,775. Part II: The Methodist Hospital has not reported any community building activities in Part II, lines 1-10. Part III, Line 4: The text of the footnote that describes bad debt expense from the audited consolidated financial statements of The Methodist Hospital System, which includes The Methodist Hospital, is as follows: Uncollectible, uncompensated care generally represents standard charges that are unrealizable due to an unwillingness to pay by those responsible for payment (bad debt).Uncollectible, uncompensated care is reported as an expense in theconsolidated statements of operations and changes in net assets. Thecosting methodology used in determining the amount of bad debt expense (atcost) reported on line 2 (no amount was reported on line 3) was derivedfrom applying the ratio of patient care cost to charges (from Worksheet 2, line 11) to bad debt attributable to patient accounts. Part III, Line 8: Medicare allowable costs were derived from The Methodist Hospital's filed Medicare Cost Reports for the year ended December 31, 2011. The entire Medicare shortfall ($97.5 million) as reported in Part III, line 7, as well as the unreimbursed cost of the Medicare managed care program ($11.3 million), should be treated as a community benefit, since these shortfalls, or subsidies, reduce the federal government's burden in providing health care to Medicare beneficiaries. Part III, Line 9b: The Methodist Hospital System has a written bad debt collection policy; however, no collection efforts are put forth for patients who are known to qualify for financial assistance under the charity care policy.Part V, Section B-Lines 1 through 7 The Methodist Hospital has not completed this section since it is optional for the 2011 Schedule H Form 990.Part V, Section B-Line 15 The Methodist Hospital does not take any actions (e.g., reporting to credit agency, lawsuits, liens on residences, body attachments nor any other similar actions) against an individual. Part V, Section B-Line 19d The Methodist Hospital charges FAP-Eligible patients the same as all other patients, however, a discount is provided in accordance with the financial assistance policy. This discount is greater than the discount provided to non-FAP-Eligible patients. Part VI, Line 2: The Methodist Hospital System utilized several different methods toidentify its Community Health priorities (health care needs) of thecommunities it serves. These methods include but are not limited to thereview of the Texas Institute of Health Policy research community data;Harris County Public Health & Environmental Services community data; TexasState Data Center and Office of the State Demographer; Texas Department ofState Health Services; Texas Cancer Registry; Healthy People 2010;community advisory group committee reports for nonprofit clinics andagencies (e.g., Harris County Healthcare Alliance Primary Health NeedsAssessment); Texas Department of Public Health selected health data; andcommunity health status report for Harris, Liberty, Fort Bend andMontgomery counties. Additionally, The Methodist Hospital System performsan annual Community Health Needs Assessment that evaluates the populationof The Methodist Hospital service area by looking at demographics, currenthealth characteristics in the community and access to healthcare. Resources used to assess the health priorities for the Community Health Needs Assessment include but are not limited to Behavioral Risk Factor Surveillance System; The State of Health 2012;Texas STD Surveillance Report; and the National Vital Statistics Report. Part VI, Line 3: Financial Assistance is provided in multiple locations within The Methodist Hospital System; at the point of registration, during case management and at the time of collections post discharge. Every check-in location has information posted in both English and Spanish stating how the patient can access financial assistance. Additionally, this information is posted on The Methodist Hospital System website and is included in the patient guide provided to the patient at the time of registration. The Methodist Hospital System financial counselors actively seek all uninsured inpatients and outpatients with scheduled services for a personal visit. During these visits, the financial counselors will screen the patient for financial assistance and will provide the patient with the financial assistance application. The patient will then be provided a list of resources with contact information should the patient require further assistance in completing the application. The Methodist Hospital System utilizes an eligibility partner to work closely with patients to quality for State and Federal assistance programs (e.g., Medicaid, SCHIP, Crime Victims, etc.). This eligibility partner will meet with all uninsured inpatients to discuss State and Federal assistance programs; where the patient is not eligible for these programs, The Methodist Hospital System's internal financial assistance program is introduced. The Methodist Hospital System's case management unit works closely with the patient during patient discharge management to ensure the patient is introduced to all resources that may be needed post discharge (e.g., home health, skilled nursing, etc.). The case management unit works with the patient to qualify the patient and to gain access to these resources. Additionally, the case management unit works closely with the financial counselors when the patient is identified as having a need for financial assistance.The Methodist Hospital System's patient accounting unit works closely with all uninsured patients post discharge during the billing and collections process. The Methodist Hospital System's collections personnel will verbally screen patients for financial assistance during collection calls; where applicable, the patient will be sent a financial assistance application either in English or Spanish. Additionally, all billing statements provide the patient with a phone number for customer service to obtain payment options. The Methodist Hospital System utilizes outside collection assistance, for both early out and bad debt collections. Each collection agency must adhere to The Methodist Hospital System's financial assistance policy and philosophy during all communication and collection events with The Methodist Hospital System patients. The Methodist Hospital System's financial assistance application is reviewed periodically; additionally, The Methodist Hospital System personnel are provided with educational inservices in the administering of the financial assistance policy as needed. Part VI, Line 4: The Methodist Hospital is a Texas non-profit corporation which owns andoperates a tertiary care hospital and related medical office buildings,research, outpatient and other facilities in and near the Texas MedicalCenter in Houston, Texas.The Methodist Hospital's primary services area is comprised of 8 counties- Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomeryand Waller with a population estimated at more than 6.1 million for 2012.Harris County has the largest population with an estimated 4.24 million asof January 1, 2012. From 2000 to 2012 the population has increased at arate of 31%. The population is expected to grow 9% in the next fiveyears. The specific make-up of the service area includes Caucasian 38%,Hispanic 37%, African American 17%, Asian 7% and other 1%. Economically,the median household income is $48,900 and the average household income is$68,400. Examining the service area at the insurance level, the areaconsists of 79% insured and 21% uninsured. Part VI, Line 5: The Methodist Hospital, an acute care complex with 840 operating beds, 70 operating rooms, 1,773 affiliated physicians and 5502 employees, is the flagship of The Methodist Hospital System.Affiliated with the Texas Annual Conference of the United Methodist Church, The Methodist Hospital works closely with local church leaders to bring compassion and spirituality to all of its endeavors and to help meet the health needs of the community it serves. The Methodist Hospital's primary academic affiliates are Weill Cornell Medical College and New York Presbyterian Hospital. The Methodist Hospital also has affiliations with the University of Houston, Rice University, Baylor College of Medicine and others. The Methodist Hospital is a teaching hospital and as part of its teaching program it sponsored 192 medical residents in 31 accredited programs and 6 non-accredited programs in 2011. It also hosted approximately 450 resident rotations, 100 medical student rotations and 350 other learner rotations from different programs around the country.Governing BodyThe Methodist Hospital is governed by a board of directors comprised of members of the community where it is located. The Methodist Hospital's board of directors includes members from the community as well as the System's President/CEO, The Methodist Hospital's medical staff president and the bishop of the Texas Annual Conference of the United Methodist Church.Community CouncilsThe Methodist Hospital also has community involvement through advisory councils comprised of community members, including members of The Methodist Hospital Board of Directors, who volunteer to create health-related programs for Houstonians. One example is The Methodist DeBakey Heart & Vascular Center Council, which is a group of Houston's leaders who advise the DeBakey Heart & Vascular Center on how it can best serve our patients and our community. The group is comprised of opinion leaders whose experience in business and non-profit boards help shape our future direction and use of resources. One way the council directs these resources to promote the health of the community is through the Save a Life CPR/AED Training Sessions. For the last five years, The Methodist DeBakey Heart & Vascular Center has partnered with the Houston Texans, American Red Cross, and Texas Arrhythmia Institute to offer mass CPR/AED training days to the Houston community. The effort is spearheaded by the DeBakey Heart & Vascular Center's council members and has successfully trained more than 3,100 individuals since its inception.Other councils include the Neurological Institute National Council and the Center for Performing Arts Medicine Advisory Council.Medical Staff ModelThe Methodist Hospital has an open medical staff model. The open model gives patients access to physicians of all affiliations.Health EducationThe Methodist Hospital Education Institute (TMHEI) was established by The Methodist Hospital System in 2006 upon the recommendation of an interdisciplinary team of health care practitioners charged by The Methodist Hospital Board of Directors with creating a vision for health professions education and training in The Methodist Hospital System. The purpose of TMHEI is to provide the best education and training to all disciplines in the hospital, enabling the best patient care. The Office of Continuing Medical Education provides local, national and international education concentrated in areas where our clinicians and scientists have recognized excellence and where our community has the greatest need.Since 2005, The Methodist Hospital has trained physicians in various medical and surgical specialties. Methodist sponsored 28 ACGME-accredited and 7 non-accredited programs in 2011. The Methodist Institute for Technology, Innovation and Education (MITIE) is a comprehensive, state-of-the-art education and research center for physicians who wish to acquire new procedural skills and integrate new technologies into their practices. Its research mission is to enhance the use of image guided technology to guide procedures, incorporate robotic surgery into the image guided platform and develop new technology and procedural techniques.The Methodist Hospital also offers a medical laboratory science program with a 12-month track for professionals in pathology and laboratory medicine; an administrative fellowship and internship program for future health care leaders; professional development programs for nursing; a pharmacy residency program and a postgraduate residency for cardiovascular surgery physician assistants.The Methodist Hospital has created the Finger Fellowship Program in Sustainable Health to allow young people to experience the nexus of health science, policy, and community. This fellowship gives exceptional young people an opportunity to pursue individualized interdisciplinary research and to use that experience to lead improvements in health at the national, state or local level.Medical ResearchThe Methodist Hospital Research Institute, a subsidiary of The Methodist Hospital, was established in 2004 to conduct essential translational research. It is home to more than 1,500 credentialed researchers and 695 ongoing clinical trials. The Methodist Hospital Research Institute is directly tied to clinicians and patients to help move the best in medical technology to the patient faster - for better prevention, diagnosis and treatment of disease. The Methodist Hospital Research Institute is one way The Methodist Hospital integrates its services, by bringing the research conducted in the laboratory to the patient's bedside. The discoveries made by our researchers quickly filter down to our hospitals in the form of new treatments and improved procedures.Use of Surplus FundsIn 2011 The Methodist Hospital provided $28.0 million in financial assistance based on the IRS definition of cost. An internal charity care program provides services to the indigent at The Methodist Hospital and through affiliated organizations. The majority of patients who qualified for charity care were educated about the program through signs posted throughout the hospital. Other patients were referred by their physicians, hospital staff, other patients and through funded community agencies.Surplus funds are also used each year to strengthen community service outreach to support low-income and uninsured patients to help them attain access to comprehensive health care. Approximately 137,420 patient contact visits were reported in 2011 from 26 charity care agencies supported by The Methodist Hospital System Community Benefits program. Services provided include primary health care, emergency and routine care, immunizations, dental care, psychological and case management services, well child examinations, sick visits, health education, health screenings, well woman exams and in-kind lab services and X-rays.The Methodist Hospital's support allowed these organizations to enhance their services to low-income patients with diverse health needs. Methodist provided direct funding and/or in-kind services including lab tests, X-rays, immunizations, human resources consultation and other services. With The Methodist Hospital's support, agencies like Denver Harbor Clinic and Good Neighbor Healthcare Center were positioned to meet Federally Qualified Health Center designee qualifications, thereby allowing them to qualify for enhanced Medicare and Medicaid reimbursement.Programs at The Methodist Hospital helped improve awareness of stroke signs, risk factors and prevention through the Stride4Stroke community awareness campaign. Since the campaign's inception, Methodist has educated more than 35,000 people; that amount is in addition to the participants of the Stride4Stroke walk. Programs addressed health disparities through our presence in minority communities and through outreach to women. For further information regarding what The Methodist Hospital is doing to benefit the communities it serves, see the response to Part VI, Line 6. Part VI, Line 6: Located in the heart of the Texas Medical Center, The Methodist Hospital is the flagship hospital of The Methodist Hospital System and serves patients from all over the world. The Methodist Hospital System includes Methodist Sugar Land Hospital in Fort Bend County, San Jacinto Methodist Hospital in Baytown, Methodist Willowbrook Hospital in northwest Houston and Methodist West Houston Hospital which opened in December 2010. The Methodist Hospital shares the greater mission of The Methodist Hospital System to provide high quality, cost-effective health care that delivers the best value to the people we serve in a spiritual environment of caring in association with internationally recognized teaching and research. The Methodist Hospital is among the country's largest non-profit health care providers. In 2011, The Methodist Hospital treated 36,586 inpatients and 290,038 outpatients. It received 46,651 emergency room visits.In order to better serve the growing needs of the communities served by The Methodist Hospital System, the System recently completed over $1.6 billion in construction projects comprising a total of 4 million new square feet. In addition to five hospitals, the system now operates an outpatient center, a research institute, two imaging centers, two freestanding emergency care clinics and five outpatient rehabilitation clinics.The Methodist Hospital promotes the health of the community and the mission of The Methodist Hospital System by delivering the highest quality and safest health care to our patients. Quality initiatives range from hand hygiene programs (with exceptionally good results), to patient fall and infection reduction programs. The Methodist Hospital was the first hospital in the Texas Medical Center to require its employees, vendors and volunteers to receive the seasonal flu shot to protect our patients, those typically most vulnerable to complications from the flu.The Methodist Hospital is the academic medical center in The Methodist Hospital System, bringing the community an institution dedicated to patient care, research and education. By serving as a leading academic medical center, it provides the community quality patient care, leading research that can be quickly translated into treatments and the training of our country's future doctors. While all System hospitals provide quality patient care, The Methodist Hospital expands the vision to include research and a comprehensive residency program.Aside from promoting the health of our community by delivering exceptional leading care to our patients, The Methodist Hospital System makes significant contributions through community benefits programs as described below.Community Benefit Activities and Health ServicesThe Methodist Hospital System in 2011 provided medical care to patients who were medically and/or financially indigent as well as patients who qualified for government sponsored indigent care. In 2011, The Methodist Hospital System's cash and in-kind contributions totaling approximately $8.5 million supported the following grassroots agencies across the Greater Houston area, including those communities served by our community hospitals:-Bering Omega Community Services-Boys and Girls Country of Houston, Inc. -Breath of Life Children's Center, Inc.-Casa De Esperanza de los Ninos, Inc.-CHRISTUS HomeCare-Covenant House Texas-El Centro de Corazon/Eastwood Health Clinic-Eye Care for Kids Foundation-Fort Bend Family Health Center, Inc.-Good Neighbor Healthcare Center-Healthcare for the Homeless - Houston-HOPE Clinic-Houston Area Women's Center-Houston Community Health Centers, Inc. (Denver Harbor Clinic)-Houston Hospice-Interfaith Community Clinic-Krist Samaritan Center for Counseling and Education-Legacy Community Health Services-Matagorda Episcopal Hospital Outreach Program-Northwest Assistance Ministries-San Jose Clinic-Service Organization of Greater Houston-Shalom Mobile Health Ministry-The Rose-The Women's Home-TOMAGWA Health Care MinistriesThis support allowed these organizations to leverage dollars and enhance their services to low-income patients with diverse health needs. The Methodist Hospital System provided direct funding and/or in-kind services including lab tests, X-rays, immunizations, human resources consultation and other services. With Methodist's support, agencies like Denver Harbor Clinic and Good Neighbor Healthcare Center were positioned to meet Federally Qualified Health Center designee qualifications, thereby allowing them to qualify for enhanced Medicare and Medicaid reimbursement.EducationThe Methodist Hospital's primary academic partner is Weill Cornell Medical College in New York. The two institutions share best practices and collaborate on research, education and clinical care. More than 300 Methodist physicians have Weill Cornell faculty positions, and TheMethodist Hospital sponsors almost 200 of its own medical residents in various specialties - ranging from neurosurgery to pathology to obstetrics/gynecology - and hosts several more from other medical institutions.In addition, The Methodist Hospital collaborates with many other academic and medical institutions to promote the health of the community, including New York-Presbyterian Hospital, Rice University, Baylor College of Medicine, University of Houston, Texas A&M University, Texas Children's Hospital, University of Texas Health Science Center, Texas Woman's University and Prairie View A&M, among others.Community InvolvementThe Methodist Hospital actively develops awareness initiatives, sponsorships and programs that promote health and wellness, prevention and early detection. The Methodist Hospital staff and volunteers can be seen at health screenings, exercise and nutrition promotions, stress management clinics and other health promotion activities throughout the year. For example, The Methodist Hospital participated in The Methodist Hospital System's fourth annual Stride4Stroke 5K Walk/Run, which raised more than $440,000 in 2011. The walk/run is part of The Methodist Hospital System's community stroke awareness campaign aimed at increasing stroke awareness and education in the community. More than 3,500 employees and community participants joined this effort to raise public awareness and funds for an event that clearly has an impact on the community.The Methodist Concussion Center provides comprehensive services and a dedicated team of concussion specialists to educate athletes, especially student-athletes, about the importance of concussion awareness. Through the center, student athletes have access to ImPACT (Immediate, Post Concussion Assessment and Cognitive Testing) testing, at their schools or at the Concussion Center. ImPACT is the first computerized concussion evaluation system. In addition to providing clinical care, the concussion center staff educates the community about signs and symptoms, dangers and proper medical management. The Center conducts outreach activities which benefit more than 1,000 Houston-area residents monthly.The Nantz National Alzheimer Center at The Methodist Hospital advances research and treatment of Alzheimer's disease, one of the biggest threats to the elderly population in our country. It is projected that as many as 16 million people will have Alzheimer's by 2050. The center, dedicated to finding a cure for Alzheimer's, addresses one of the biggest health crises affecting Americans today.The Methodist Hospital promotes the health of the community by fulfilling The Methodist Hospital System's mission through exceptional, high-quality patient care, education and research, affiliations with academic and medical partners for improved community health care, charity care and community involvement.The Methodist Hospital also cooperates with local entities to identify community needs. Members of The Methodist Hospital's executive team are on the boards of local organizations like the Greater Houston Health Care Alliance that advocate for educational, environmental and health care issues that affect public policy and international companies that do business in Houston.The Methodist Hospital System's employees have a longstanding tradition of supporting efforts to improve the health and well-being of our community. Our employees donate time, talent and money to many great community causes.The Methodist Hospital System recently created a program called I CARE in Action, which provides employees paid time to volunteer at approved community organizations. The program encourages employees to become involved in the local communities Methodist serves and provides the expertise and passion of Methodist employees to assist others. Hospital administration also allocates hours to coordinate and support voluntary employee projects to meet specific community needs. Hospital employees participated in or provided a service for the following: -United Way Campaign-employee contributions-American Heart Association's Houston Heart Walk and Stroke Continuum of Care-sponsorship; employee participated in Walk-National Multiple Sclerosis 150 Bike Tour (Houston-to-Austin)-sponsorship employees participated in Bike Ride-Komen Race for the Cure-sponsorship; employee participated in Walk and volunteered-ADA Diabetes Walk-contributions/Walk-Stride4Stroke 5K Run/Walk-contributions/volunteers/Walk/Run-PAWS-corporate sponsorship -Star of Hope-donations-employees giving of their time to volunteer-Save a Life Community Heart Training Day-TMH sponsored in conjunction w/American Red Cross & Texas Arrhythmia Institute-Adopt-a-Child/Family holiday program-employee participation-gift giving and volunteer employee blood drive (donations of blood, plasma and platelets)-Career Day-Talks-employee volunteering -Houston Food Bank-Texas Medical Center Food Drive-Corporate sponsorship- employees giving of their time to volunteer-Houston Area Women's Shelter-corporate sponsorship-Medical Bridges-hospital donations, corporate sponsorship and employees volunteering their time-Habitat for Humanity-employees volunteering their time-San Jose Clinic-Art for Heart-corporate sponsorship and employees volunteering their time -DeBakey High School-African American Health Coalition -Texas Woman's University-The House of Amos-hospital donated supplies-Houston Museum of Natural Science-employees volunteering their time The Methodist Hospital operates a thriving volunteer program that offers members of the outside community an opportunity to participate in a number of patient-oriented activities including hospital visits; collecting and/or creating items to distribute to patients and wayfinding help for patients and families visiting the complex for doctors' appointments and tests.Identifying Community Health IssuesThe Methodist Hospital identified its community health priorities for 2011 using several methods including, but not limited to, review of the Texas Institute for Health Policy Research community data, Texas Department of Public Health selected health data, community health status reports for Harris, Liberty, Fort Bend and Montgomery counties and community advisory groups committee reports for nonprofit clinics and agencies. The review indicated that chronic diseases, including heart disease and stroke, are acute in our service area, exceeding the overall mortality rates in Texas and peer counties.Because stroke was identified as a primary killer and health care issue for people in our region, The Methodist Hospital System in 2006 created the Stride4Stroke initiative to raise awareness about stroke and to raise funds for community stroke education. A 5K Run/Walk each spring allows members of the community to participate alongside hospital employees. The Methodist Hospital System has initiated community education efforts by training and providing nurse-educators to the community for public events, particularly in minority communities and for outreach to women. The Methodist Hospital System also works to assist smaller hospitals in the community in developing their own stroke programs and achievement of Primary Stroke Center status, while we offer a venue for comprehensive stroke care to those patients from community hospitals that are not equipped to offer more than basic stroke care.Another initiative has sought to increase early detection and community awareness of cancer. The Methodist Hospital annually stages a Men's Health Expo for community awareness and education on men's health issues. At a Men's Health Expo in 2011, The Methodist Hospital screened 369 men for prostate cancer. The Methodist Hospital also sponsors and/or coordinates a number of events spotlighting women's health issues. The Methodist Hospital sponsored the Komen Race/Walk and Pink Ribbons campaign to promote breast cancer awareness as well as to communicate the importance of early detection of breast cancer.SummaryAs a System, Methodist made significant contributions through its community benefits and charity care program which have been a resource for patients in the community. Based on IRS cost definitions The Methodist Hospital System provided $222.8 million in Charity Care and Certain other Community Benefits for the year ended December 31, 2011, which included $93.2 million in connection with Charity Care and Means-tested Government Programs and $129.6 million in Other Benefits (e.g., health professions education, research and cash and in-kind contributions to community groups). In addition, based on IRS cost definitions The Methodist Hospital System provided $186.1 million in care to Medicare, Medicare Managed Care and TRICARE program beneficiaries for the year ended December 31, 2011. Reports Filed With States Part VI, Line 7 TX 1 Asian American Health Coalition - HOPE Clinic 7001 Corporate Dr Suite 120 Houston TX 77036 311756818 501(c)3 118000 Health Care Services BeringOmega Community Service Foundation 1429 Hawthorne Street Houston TX 770063711 760589592 501(c)3 340000 Dental Services Boys and Girls Country of Houston Inc 18806 Roberts Road Hockley TX 774479327 746026198 501(c)3 15000 Mental Health Services Breath of Life Children's Center Inc 21715 Kingsland Blvd Ste 103 Katy TX 77450 760626159 501(c)3 40000 Children's Clinic Casa de Esperanza de los Ninos Inc 2911 Corder St Houston TX 77054 760105306 501(c)3 25000 Mental Health Services Christus Home Care (CHRISTUS Foundation for HealthCare) 2045 Space Park Dr 185 Houston TX 770586306 746074210 501(c)3 731814 Home Care Services Covenant House Texas 1111 Lovett Boulevard Houston TX 77006 760050882 501(c)3 15000 Homeless Shelter El Centro de CorazonEastwood Health Clinic 5001 Navigation Houston TX 77011 760442781 501(c)3 295000 Health Care Services Eye Care for Kids Foundation 9660 Hillcroft St 325 Houston TX 77096 760573182 501(c)3 25000 Children's Ophthalmology Services Fort Bend Family Health Center Inc 400 Austin Street Richmond TX 774694498 741951476 501(c)3 170000 Health Care Services Good Neighbor Healthcare Center 190 Heights Blvd Houston TX 77007 204881280 501(c)3 142500 Health Care Services Healthcare for the Homeless - Houston 2505 Fannin St Houston TX 77002 760647934 501(c)3 290000 Health Care Services Houston Area Women's Center 1010 Waugh Drive Houston TX 770193996 742029166 501(c)3 65000 Mental Health Services Houston Community Health Centers Inc 424 Hahlo Street Houston TX 770203022 760622208 501(c)3 625000 Health Care Services Houston Hospice 1905 Holcombe Blvd Houston TX 77030 742092951 501(c)3 7500 Hospice Services Interfaith Community Clinic 101 Pine Manor Drive Oak Ridge North TX 77385 752634623 501(c)3 54000 Dental/Health Care Services Krist Samaritan Center of Counseling & Ed 17555 El Camino Real Houston TX 770583031 760173176 501(c)3 65000 Mental Health Services Matagorda Episcopal Hospital Outreach Program 101 Avenue F North Bay City TX 77414 200537948 501(c)3 40000 Dental/Health Care Services Northwest Assistance Ministries 15555 Kuykendahl Road Houston TX 770903651 760088702 501(c)3 358000 Children's Clinic Support San Jose Clinic 301 Hamilton St Houston TX 77002 766071951 501(c)3 200000 Health Care Services Service Organization of Greater Houston 2950 50th St Lubbock TX 79413 800357284 501(c)3 1539475 Health Care Services Shalom Mobile Health Ministry 2220 Broadway Houston TX 77012 760570086 501(c)3 200000 Health Care Services The Rose 12700 North Featherwood Drive 260 Houston TX 77034 760193812 501(c)3 50000 Cancer Screening Services The Women's Home 811 Westheimer Road Houston TX 770063917 741467811 501(c)3 100000 Mental Health Services TOMAGWA Health Care Ministries 13414 Medical Complex Dr 1 Tomball TX 773753333 760280324 501(c)3 135000 Health Care Services American Academy of Medicine and Engineering 1616 Guadalupe St Ste 3304 Austin TX 78701 201014851 501(c)3 10000 Medical Research Alley Theatre 615 Teas Avenue Houston TX 77002 741143076 501(c)3 10000 Arts Amazing Place 3735 Drexel Houston TX 77027 760604478 501(c)3 5000 Adult Day Care for Dementia Pts American Diabetes Association 2400 August Dr Ste 175 Houston TX 77057 131623888 501(c)3 5000 Medical Research American Heart Association PO Box 15186 Austin TX 78761 135613797 501(c)3 62000 Medical Research American Liver Foundation PO Box 940814 Houston TX 77094 362883000 501(c)3 8500 Health Care Services American Society for Metabolic & Bariatric Surg Fdn 100 SW 7th St Ste 201 Gainsville FL 32607 521203109 501(c)6 7500 Health Care Services Arthritis Foundation 3120 Southwest Frwy Ste 215 Houston TX 77098 951885447 501(c)3 15000 Medical Research Boy Scouts of America Sam Houson Area Council PO Box 924528 Houston TX 772924528 741109732 501(c)3 5000 Community Service Brookwood Community 1752 FM 1489 Brookshire TX 77423 741587672 501(c)3 5000 Mental Health Services Can Care of Houston 9575 Katy Freeway Ste 428 Houston TX 77024 760305357 501(c)3 10000 Medical Research Cancer Prevention and Research Institute TX Fdn PO Box 12631 Austin TX 78711 264551120 501(c)3 15000 Medical Research Collaborative for Children 3800 Buffalo Speedway Ste 300 Houston TX 77098 760228065 501(c)3 5000 Education Assistance DA Camera of Houston 1427 Branard St Houston TX 77006 760232578 501(c)3 5000 Education Assistance Faith in Practice 7500 Beechnut Ste 208 Houston TX 77074 760415986 501(c)3 10000 Medical Relief overseas Golfers Against Cancer Inc 1700 Lake Kingwood Trail Kingwood TX 77345 760574871 501(c)3 25000 Medical Research Good Samaritan Foundation 5615 Kirby Drive Ste 610 Houston TX 77005 741235398 501(c)3 15500 Community Service Gulf Coast Marrow Donor Program-Blood Center 1400 La Concha Lane Houston TX 77054 741809687 501(c)3 5000 Health Care Services Hadassah-The Women's Zionist Ord of America 4654 Beechnut Houston TX 77096 237201570 501(c)3 10000 Volunteer Organization Harris County Hospital District Foundation PO Box 301168 Houston TX 77230 760408224 501(c)3 50000 Community Service Houston Children's Chorus PO Box 66567 Houston TX 772666567 760286895 501(c)3 5000 Education Assistance Houston Food Bank 3811 Eastex Freeway Houston TX 77026 760311190 501(c)3 5000 Community Service Houston Grand Opera 510 Preston St Houston TX 770021504 746016764 501(c)3 100000 Community Service Houston Symphony Society 615 Louisiana Jones Hall Houston TX 77002 741157373 501(c)3 57500 Community Service Junior Achievment of SE Texas 2115 E Governers Circle Houston TX 77092 741153957 501(c)3 5000 Education Assistance Medical Bridges PO Box 300245 Houston TX 772300245 760548161 501(c)3 10000 Relief Services Muscular Dystrophy Association 5615 Kirby Dr Suite 500 Houston TX 77005 131665552 501(c)3 7500 Medical Research Nora's Life Gift Foundation PO Box 8350 Houston TX 772888350 621763895 501(c)3 25000 Housing for Transplant Pts PAWS Houston 5201 Memorial Dr Ste 1162 Houston TX 77007 260054032 501(c)3 5000 Rehabilitative Support Rice University 6100 Main St Houston TX 77005 741109620 501(c)3 5000 Community Service Susan G Komen Houston 5433 Westheimer Rd Ste 325 Houston TX 77056 760360372 501(c)3 20750 Medical Research Texas Annual ConferenceHaiti Relief 5215 Main Street Houston TX 77002 741491628 501(c)3 18902 Disaster Relief Texas Medical Center Orchestra PO Box 310066 Houston TX 772310066 760669727 501(c)3 20000 Community Service The Living Bank PO Box 6725 Houston TX 77265 741607315 501(c)3 5000 Donor Education University of St Thomas 3800 Montrose Blvd Houston TX 770064626 741277664 501(c)3 5000 Education Assistance Victory - American Cancer Society PO Box 572915 Houston TX 772572915 756198499 501(c)3 25000 Community Service Young Survival Coalition 3104 Edloe Suite 209 Houston TX 77027 134057685 501(c)3 5000 Community Service TMH Physicians Organization 6565 Fannin St Houston TX 77030 571201170 501(c)3 12993 Capital Support The Methodist Hospital Research Institute 6565 Fannin St Houston TX 77030 870721923 501(c)3 87149 Capital Support 63 1 Scholarships for TMH Clinical Laboratory Science Program 4 9600 Continuing Education Scholarship 9 9000 Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: Prior to The Methodist Hospital's approval of a grant to a requesting organization, the following criteria must be met: (1) The requesting organization must be an organization exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code; (2) The requesting organization must provide a recognizable or demonstrable benefit to the community; (3) The mission of the requesting organization must augment the mission of The Methodist Hospital; (4) The requesting organization's mission and services should not duplicate and must not conflict with those of The Methodist Hospital. Periodic reports were reviewed to ensure the funds were used to support indigent care service and or other needs of the community. Grants to Individuals: Everyone accepted into The Methodist Hospital Clinical Laboratory Science Program receives a $2,400 scholarship. Acceptance into that program is based upon GPA, letters of recommendation, and interview scores. X X 1 1 X X X X X 0 1 0 0 0 0 0 1 0 Methodist Hospital Group 82231 173402 0 0 0 9854 0 3711 0 17681 82231 204648 0 0 Methodist Hospital Group 1762670 0 954574 0 902700 0 50446 0 54996 0 3725386 0 0 0 Methodist Hospital Group 2241727 0 674848 0 331591 0 121086 0 168082 0 3537334 0 0 0 Methodist Hospital Group 961354 0 328333 0 222903 0 63562 0 82761 0 1658913 0 0 0 Supplemental Information Part III SCHEDULE J, PAGE 1, LINE 1A: Travel for Companions Methodist requires all employees including officers to provide written substantiation of all expenses related to their business travel through the provision of detailed receipts in order to receive approval from their direct superiors for reimbursement in accordance with our corporate policy on travel and other business expenses. In 2011, the President/CEO had three trips approved for attendance at out of state meetings where it was deemed appropriate by the Chair of our Board that the attendance of the President/CEO's spouse (and the related expenses for her travel to these meetings) was integral to conducting effective Methodist business at these meetings. Health or Social Club Dues As stipulated by the employment contract of the CEO, he is entitled to annual membership in the Houston City Club paid for by The Methodist Hospital in support of Methodist related business development activities. This amount is not included in the taxable income of the CEO as it directly relates to the hospital's tax exempt business purpose. SCHEDULE J, PAGE 1, LINE 4A: The Methodist Hospital System has a formal severance plan. Eligible employees include all staff including hourly staff up through senior vice presidents provided they work at least 20 hours per week and are not otherwise covered by a physician employment agreement. The plan only provides salary and benefits in the event an eligible employee is involuntarily terminated due to the elimination of their position or if their current position is significantly impacted by an organizational restructuring or change in requirement and a comparable position is not available within the organization. The eligible person must also sign a termination agreement in order to receive salary continuation and benefits under the plan to which they would not normally be eligible to receive under a voluntary resignation. SCHEDULE J, PAGE 1, LINE 4B: The Methodist Hospital has a Supplemental Executive Retirement Plan, a non-qualified employer funded plan. Contributions are made annually into a tax deferred account and are considered taxable upon vesting (i.e. completion of three years of vesting service). Once vested, each year's subsequent contribution is taxable within the calendar year in which the deposit was made. Account balances cannot be accessed until retirement or termination (whichever occurs first) and may be subject to non-revocable distribution options selected upon employment. Pursuant to Treasury Reg Section 1 6033-2(D)(5), The Methodist Hospital has elected to report information about contributions, gifts & grants, compensation and other information about Officers, Directors, Trustees, Key Employees, Former Employees, certain other highly paid employees, certain professional contractors and certain other contractors on a consolidated basis for all of the members of the group, including the parent organization, on the Group Return of Methodist Hospital Group, EIN 35-2410801. SCHEDULE J, PAGE 1, QUESTION 7: This organization provides variable compensation opportunity through an annual management incentive plan. Executives at the Assistant Vice President level and above may be eligible to participate. The annual incentive program is based on system and operating entity level performance in the areas of quality improvement outcomes, patient satisfaction and financial performance. In addition, a portion of the payout percentage is based on goals that are specific to the participants' management roles at the division or department level including but not limited to such metrics as operating results, quality and safety improvements, customer satisfaction measures, growth and innovation initiatives. Determination of a participant's percentage of the potential bonus payout (paid as a percent of base salary) is based on whether the individual attains agreed upon goals for their area of responsibility as determined by their immediate supervisor. Harris County Health Facilities Development Corp 521284201 41315RGV0 2008-04-10 350000000 Refunding Bonds for Series 2006B issued 5/10/06 0 0 0 Harris County Cultural Education Facilities Finance Corporation 760337885 414009AS9 2008-08-21 257239185 Refunding Bonds for portion of Ser. 2006A issued 4/4/06 0 0 0 Harris County Cultural Education Facilities Finance Corporation 760337885 414009AW0 2008-08-21 692760000 Refunding Bonds for portion of Ser. 2006A issued 4/4/06 0 0 0 Harris County Cultural Education Facilities Finance Corporation 760337885 414009BQ2 2009-06-02 149993979 Ref Ser 2006C issued 5/10/06 & Ser 2008C issued 8/21/08 0 0 0 350000000 350000000 1 0 1 1 257239185 257239185 1 0 1 1 286480000 692760000 692760000 1 0 1 1 149993979 149993979 1 0 1 1 0 1 1 1 1 1 0.03700 0.00000 0.03700 1 0 1 1 1 1 1 0.03700 0.00000 0.03700 1 0 1 0 0 0 1 0 0 0 0 0 1 0 1 0 0 0 1 0 1 0 0 0 1 Schedule K, Part II, Line 13 (Issues A through E) Year of Subtantial Completion: All outstanding bonds of the Methodist Hospital as of 12-31-11 are refunding bonds. The Methodist Hospital assumes that line 13 does not address refunding bonds. Schedule K - Part III, Column B and C Private Business Use These columns are not completed since these are refunding bonds for bond issues prior to January 1, 2003. Had completion of Part III been required for these bonds, line 7 would have been answered "yes". Schedule K, Part III, Line 4 (Issues D) Enter % of Business use by entities other than 501(c)(3): The reported private use percentage of 3.7% has been calculated on the portion of the Series 2009A-B refunding bonds that refunded the Series 2006C bonds issued in the amount of $100,000,000. The remaining amout of Series 2009A-B bonds that refunded bonds issued prior to December 31, 2002 in the amount of $49,993,979 were excluded from determining the reported 3.7% private use calculation for 2011. Schedule K, Part III, Line 4 (Issues E) Enter % of Business use by entities other than 501(c)(3): The reported private use percentage of 1.8% has ben calculated on the portion of the Series 2009C refunding bonds that refunded the Series 2005A bonds issued in the amount of $350,000,000. The remaining amount of Series 2009C bonds that refunded bonds issued prior to December 31, 2002 in the amount of $236,480,000 were excluded from determining the reported 1.8% private use calculation for 2011. Part V Procedures To Undertake Corrective Action The Methodist Hospital is in the process of revising its written procedures to include such provisions; the revisions are expected to be in place before the close of the current year. Harris County Cultural Education Facilities Finance Corporation 760337885 414009BS8 2009-06-02 586480000 Ref Ser 2005A issued 1/20/05 & Ser 2008C issued 8/21/08 0 0 0 586480000 586480000 1 0 1 1 0 1 1 1 1 1 0.01800 0.00000 0.01800 1 0 1 0 0 0 1 Form 990, Part VI, Section A, line 1 The Executive Committee consists of the officers who are members of the Board of Directors as defined in the Bylaws; the Resident Bishop; and one Physician Director. In the event of an emergency when there is insufficient time to convene the Board of Directors, the Executive Committee has and may exercise all the powers of the Board of Directors in the management of the business and affairs of the Corporation in such a manner as the Executive Committee may deem to be in the best interest of the Corporation in all cases in which specific directions have been given by the Board of Directors, provided any action which the Committee may take does not conflict with the mission of the Corporation and the policies and directives of the Board of Directors. The Chairperson of the Board of Directors, upon the calling of any Executive Committee meeting, as the first item of business, is required to state the nature of the emergency and the fact that there was insufficient time to convene the Board of Directors, which is recorded in the minutes before any action is deemed valid and on behalf of the Board of Directors. Vacancies in the membership of said Committee are filled by appointment of the Chairperson and approval by the Board of Directors. The Executive Committee meets upon the call of the Chairperson. The Committee keeps regular minutes of its proceedings and forthwith delivers by mail, facsimile, email, or in person, a written report of the same to all members of the Board of Directors. All Acts or resolutions of the Executive Committee are subject to the approval of, or revision by, the Board of Directors, but no rights of third parties are affected by any such revision. The Secretary of the Corporation acts as Secretary of the Executive Committee. Form 990, Part VI, Section A, line 7a The Texas Annual Conference of the South Central Jurisdiction of the United Methodist Church ("Conference") elects the Board of Directors. Form 990, Part VI, Section A, line 7b The Conference has the authority to approve any amendments to the following provisions of The Methodist Hospital's Bylaws or the Articles of Incorporation: i) the provision that the Conference elects all Directors of this organization from nominees recommended by the committee on Nominations of the Conference based on nominations made by the Board of Directors, (ii) the provision that a sufficient number of Directors be members of The United Methodist Church to comply with the membership requirements set forth in the Book of Discipline of The United Methodist Church, (iii) the provision that four Methodist Ministers, including the Resident Bishop be members of the Board of Directors, (iv) the provision that the Board of Directors shall consist of no more than twenty-six and no fewer than fifteen members, or (v) the provision that amend the purpose clauses (Article II and VI) of the Articles of Incorporation of the Corporation or the dissolution clause (Article VII) of the Articles of Incorporation of the Corporation. Form 990, Part VI, Section B, line 11 Management, including certain Officers, works diligently to complete the Form 990 and attached schedules ("return") in a thorough manner. The return is prepared by a Paid Preparer. Prior to filing the return, Board members are provided a copy of the Form 990 (including required schedules), and management team members are available to answer any Board Members' questions. Form 990, Part VI, Section B, line 12c All Individuals serving in a significant decision making capacity complete a Conflict of Interest (COI) questionnaire annually. A comprehensive evaluation and thorough review of all disclosures is performed by a 6-member COI Committee comprised of executives, management, and staff. The results of the COI disclosures are reported to the Audit & Compliance Committee and The Methodist Hospital Board of Directors, including the actions being taken to protect the integrity of decision-making. In addition, disclosure results are also communicated to management and to affected committee chairs to promote transparency and to ensure that actions are taken and restrictions are imposed where appropriate. Conflicted individuals may not vote or exert self-serving influence on the disclosed matter. Form 990, Part VI, Section B, line 15 This organization follows IRS regulations as it relates to establishing a rebuttable presumption of reasonableness related to total compensation of key employees and compensated officers of the organization listed below. It has established a process that includes the following elements: A separate committee (the Board Committee) comprised of independent directors meets at least annually to review, deliberate and make recommendations to the Board as it relates to any changes in total compensation including base pay, bonus awards from incentive programs or benefits and perquisites of the CEO and other officers and some key employees (typically those who report directly to the CEO). For 2011, the Board Committee reviewed and recommended compensation packages for the following positions: - President/CEO, The Methodist Hospital System - EVP, Chief Financial Officer/Chief Administrative Officer, The Methodist Hospital System - EVP, Chief Medical Officer/Chief Academic Officer, The Methodist Hospital System - EVP, The Methodist Hospital - EVP, Chief Legal Officer, The Methodist Hospital System The Board Committee establishes that no member has any conflict of interest with regard to the executive compensation arrangements being approved. The Board Committee reviews and considers information provided by an external consultant engaged to ensure it has direct access to: - Compensation information paid by comparable organizations, for functionally comparable positions. - Compensation norms in the organization's immediate locale and from other independent compensation surveys by nationally recognized independent firms that represent the organization's logical peer group; - Compensation information that includes information on base salary, incentives, benefits and perquisites for total compensation comparison purposes to ensure reasonable competitive ranking. The committee relies on the comparability data to reach consensus that its recommendations to the Board regarding executive compensation changes are reasonable and in line with this organization's overall total compensation philosophy for executive pay. The deliberation and decisions of the committee are contemporaneously substantiated. The compensation for positions held by Key Employees not included in the process above, is determined based on a thorough review of numerous compensation studies conducted by nationally recognized, independent firms that provide market data for total compensation for similar positions. The compensation information considered includes information on base salary, incentives, and benefits for total compensation purposes to ensure reasonable competitive ranking in order to meet recruitment and retention objectives that secure the talent required to contribute to organizational success. Form 990, Part VI, Section C, line 19 The governing documents (except for the Articles of Incorporation, which are on file with the Secretary of the State of Texas), conflict of interest policy, and financial statements of the organization are not made available to the general public. Compensation of Officers, Directors, Key Employees, Highest Compensated: Part VII, Section A Pursuant to Treasury Reg Section 1 6033-2(D)(5), The Methodist Hospital has elected to report information about contributions, gifts & grants, compensation and other information about Officers, Directors, Trustees, Key Employees, Former Employees, certain other highly paid employees, certain professional contractors and certain other contractors on a consolidated basis for all of the members of the group, including the parent organization, on the Group Return of Methodist Hospital Group,EIN 35-2410801. Highest Paid Independent Contractors: Form 990, Part VII, Section B Pursuant to Treasury Reg Section 1 6033-2(D)(5), The Methodist Hospital has elected to report information about contributions, gifts & grants, compensation and other information about Officers, Directors, Trustees, Key Employees, Former Employees, certain other highly paid employees, certain professional contractors and certain other contractors on a consolidated basis for all of the members of the group, including the parent organization, on the Group Return of Methodist Hospital Group, EIN 35-2410801. Changes in Net Assets or Fund Balances: Form 990, Part XI, line 5: Net unrealized losses on investments: -65,468,637. Transfer from Methodist Hospital Foundation 913,940. Total to Form 990, Part XI, Line 5: -64,554,697. METHODIST HOSPITAL SELF INSURANCE TRUST 6565 FANNIN HOUSTON TX 77030 741948396 INSURANCE TRUST TX 501(c)(3) Line 11a, I THE METHODIST HOSPITAL 1 SAN JACINTO FAMILY PRACTICE EDUCATION FOUNDATION 4401 GARTH ROAD BAYTOWN TX 77521 760556120 HEALTH CARE EDUCATION TX 501(c)(3) Line 11a, I SAN JACINTO METHODIST HOSPITAL 0 SAN JACINTO MEDICAL GROUP 4401 GARTH ROAD BAYTOWN TX 77521 760516915 HEALTH CARE TX 501(c)(3) Line 11a, I SAN JACINTO METHODIST HOSPITAL 0 THE METHODIST HEALTH CARE SYSTEM STD PLAN TRUST 6565 FANNIN HOUSTON TX 77030 766161019 INSURANCE TRUST TX SECTION 671 N/A THE METHODIST HOSPITAL 1 MEDVEST 1 LIMITED PARTNERSHIP 6565 FANNIN HOUSTON TX 77030 760534067 HEALTH CARE INVESTMENT TX N/A N/A 0 0 ALLIED METHODIST HOSPITAL PHYSICIANS 6565 FANNIN HOUSTON TX 77030 760551274 PHYSICIAN GROUP TX N/A C MEDVEST HOLDINGS INC 6565 FANNIN HOUSTON TX 77030 760667765 HEALTHCARE INVESTMENT TX N/A C MEDVEST INCORPORATED 6565 FANNIN HOUSTON TX 77030 760182470 PHARMACY TX N/A C METHODIST INTERNATIONAL 6565 FANNIN HOUSTON TX 77030 300347273 HEALTHCARE CONSULTING TX N/A C METHODIST WILLOWBROOK MOB CONDO ASSOCIATION 6565 FANNIN HOUSTON TX 77030 680500294 CONDO ASSOCIATION TX N/A C METHODIST WILLOWBROOK MOB CONDO ASSOCIATION II 6565 FANNIN HOUSTON TX 77030 262137993 CONDO ASSOCIATION TX N/A C SAN JACINTO METHODIST-ALEXANDER CONDOMINIUM ASSOCIATION 6565 FANNIN HOUSTON TX 77030 470921764 CONDO ASSOCIATION TX N/A C SJMH CONDOMINIUM ASSOCIATION 6565 FANNIN HOUSTON TX 77030 412096917 CONDO ASSOCIATION TX N/A C THE METHODIST HOSPITAL CONDOMINIUM ASSOCIATION 6565 FANNIN HOUSTON TX 77030 861065871 CONDO ASSOCIATION TX N/A C TMH MEDICAL OFFICE BUILDINGS CONDOMINIUM ASSOCIATION 6565 FANNIN HOUSTON TX 77030 760287893 CONDO ASSOCIATION TX N/A C METHODIST WEST HOUSTON MOB CONDOMINIUM ASSOC 6565 FANNIN HOUSTON TX 77030 300655123 CONDO ASSOCIATION TX N/A C WELSEY INSURANCE COMPANY SPC LTD 6565 FANNIN HOUSTON TX 77030 980405036 INSURANCE CJ N/A C 1 1 1 0 0 0 0 0 0 0 1 0 0 0 1 1 1 1 Methodist Hospital Foundation K 436200 Fair Market Value Methodist Hospital Foundation Q 3420755 Fair Market Value Methodist Hospital Foundation C 10073434 Fair Market Value Methodist International O 3787449 Fair Market Value Methodist International P 231918 Fair Market Value Methodist International K 74400 Fair Market Value Methodist International A 56787 Fair Market Value Methodist International Q 4295997 Fair Market Value Allied Methodist Hospital Physicians O 741339 Fair Market Value Allied Methodist Hospital Physicians K 88896 Fair Market Value Allied Methodist Hospital Physicians Q 433157 Fair Market Value Methodist Hospital Self Insurance Trust O 8000000 Fair Market Value Methodist Hospital Self Insurance Trust K 8000000 Fair Market Value Methodist Hospital Self Insurance Trust P 32480325 Fair Market Value Methodist Hospital Self Insurance Trust Q 32480325 Fair Market Value TMH Physician Organization O 66344883 Fair Market Value TMH Physician Organization P 2767297 Fair Market Value TMH Physician Organization K 1020000 Fair Market Value TMH Physician Organization A 6587049 Fair Market Value TMH Physician Organization Q 83849944 Fair Market Value Medvest Incorporated A 50954 Fair Market Value Medvest Incorporated K 198996 Fair Market Value Medvest Incorporated R 2438950 Fair Market Value Methodist Health Centers O 333389 Fair Market Value Methodist Health Centers P 3820713 Fair Market Value Methodist Health Centers K 46700004 Fair Market Value Methodist Health Centers R 104826012 Fair Market Value Methodist Health Centers Q 75107463 Fair Market Value Diagnostic Center Hospital O 1730769 Fair Market Value Diagnostic Center Hospital Q 1092884 Fair Market Value TMH Medical Office Buildings O 6636936 Fair Market Value TMH Medical Office Buildings A 488429 Fair Market Value TMH Medical Office Buildings P 1240623 Fair Market Value TMH Medical Office Buildings K 1196004 Fair Market Value TMH Medical Office Buildings Q 12062225 Fair Market Value The Methodist Hospital Research Institute O 64494997 Fair Market Value The Methodist Hospital Research Institute P 240621 Fair Market Value The Methodist Hospital Research Institute K 830568 Fair Market Value The Methodist Hospital Research Institute A 11753098 Fair Market Value The Methodist Hospital Research Institute Q 91534140 Fair Market Value The Methodist Hospital Research Institute B 87149 Fair Market Value San Jacinto Methodist Hospital P 1328979 Fair Market Value San Jacinto Methodist Hospital K 14607720 Fair Market Value San Jacinto Methodist Hospital A 521423 Fair Market Value San Jacinto Methodist Hospital R 11471208 Fair Market Value San Jacinto Methodist Hospital O 957912 Fair Market Value