2012-05-14T15:35:58-05:00 2011-06-30 Deloitte Tax LLP 1132 BISHOP STREET SUITE 1200 HONOLULU HI 96813 990 2010-07-01 990073524 THE QUEEN'S MEDICAL CENTER QUEE 8085389011 1301 PUNCHBOWL STREET HONOLULU HI 96813 RICHARD C KEENE 2012-05-11 8085430700 2010 2016-02-24 21:20:13Z RICHARD C KEENE 1301 PUNCHBOWL STREET HONOLULU HI 96813 702295412 false X WWW.QUEENSMEDICALCENTER.NET X 1859 HI THE MISSION OF QMC IS TO FULFILL THE INTENT OF QUEEN EMMA AND KING KAMEHAMEHA IV TO PROVIDE IN PERPETUITY QUALITY HEALTHCARE SERVICES TO IMPROVE THE WELL-BEING OF NATIVE HAWAIIANS AND ALL OF THE PEOPLE OF HI 18 13 4215 400 6829471 -80415 25662588 35906761 622500499 630539204 10279310 16868401 14333018 18757031 672775415 702071397 2689905 1788944 0 0 323050578 339010626 0 0 54652 316235265 328185293 641975748 668984863 30799667 33086534 881785450 987672169 601515918 600202380 280269532 387469789 X THE MISSION OF QMC IS TO FULFILL THE INTENT OF QUEEN EMMA AND KING KAMEHAMEHA IV TO PROVIDE IN PERPETUITY QUALITY HEALTHCARE SERVICES TO IMPROVE THE WELL-BEING OF NATIVE HAWAIIANS AND ALL OF THE PEOPLE OF HAWAII. false false THE QUEEN'S MEDICAL CENTER IS THE LARGEST PRIVATE, NONPROFIT, ACUTE CARE MEDICAL FACILITY IN HAWAII. ITS STAFF IS DEDICATED TO PROVIDING QUALITY HEALTH CARE TO THE PEOPLE OF HAWAII AND THE PACIFIC. ESTABLISHED IN 1859 BY KING KAMEHAMEHA IV AND QUEEN EMMA, QMC IS THE FIRST HOSPITAL IN THE UNITED STATES FOUNDED BY ROYALTY. TODAY, IT IS THE LARGEST PRIVATE HOSPITAL IN HAWAII AND THE PACIFIC BASIN. THE QUEEN'S MEDICAL CENTER HAS 505 ACCUTE CARE BEDS AND 28 SUB-ACUTE BEDS. WITH OVER 3,000 EMPLOYEES AND OVER 1,200 PHYSICIANS ON STAFF, IT IS ALSO ONE OF THE STATE OF HAWAII'S LARGEST EMPLOYERS. AS THE LEADING MEDICAL REFERRAL CENTER IN HAWAII AND THE PACIFIC BASIN, QMC IS WIDELY KNOWN FOR ITS PROGRAMS IN CANCER, CARDIOVASCULAR DISEASE, NEUROSCIENCE, ORTHOPEDICS, SURGERY, TRAUMA, BEHAVIORAL MEDICINE, AND WOMEN'S HEALTH. QMC OFFERS A COMPREHENSIVE RANGE OF SPECIALTIES, INCLUDING CARDIAC DIAGNOSTICS, GASTROENTEROLOGY, GENETICS, GERIATRICS, GYNECOLOGY, NEONATOLOGY, OBSTRETICS, AND PULMONOLOGY. QMC serves as the main Trauma Center in the Pacific Basin, ("trauma" is defined as a life-threatening injury or shock.) and is designated as a Level II Trauma Center by the State of Hawaii Department of Health. QMC is home to a number of residency programs offered in conjunction with the John A. Burns School of Medicine at the University of Hawaii. QMC IS ACCREDITED BY THE JOINT COMMISSION (TJC). QUEEN'S IS ALSO APPROVED TO PARTICIPATE IN RESIDENCY TRAINING BY THE ACCREDITATION COUNCIL FOR GRADUATE MEDICAL EDUCATION (ACGME), AND IS A MEMBER OF VHA, A NATIONAL COOPERATIVE OF OVER 1,400 HOSPITALS. QMC HAS ACHIEVED MAGNET STATUS - THE HIGHEST INSTITUTIONAL HONOR FOR HOSPITAL EXCELLENCE - FROM THE AMERICAN NURSES CREDENTIALING CENTER. MAGNET RECOGNITION IS HELD BY LESS THAN SEVEN PERCENT OF HOSPITALS IN THE UNITED STATES. QMC IS THE FIRST HOSPITAL IN HAWAII TO ACHIEVE MAGNET STATUS. 639015398 1788944 630539204 TO SUPPORT THE QUEEN'S MISSION AND TO FULFILL ITS TAX EXEMPT PURPOSE AS A CHARITABLE HOSPITAL, THE QUEEN'S MEDICAL CENTER PROVIDED COMMUNITY BENEFITS TOTALING APPROXIMATELY $89,700,000 FOR THE YEAR ENDED JUNE 30, 2011. SEE LINE 4C (SCHEDULE O ATTACHMENT 2) FOR A DETAILED EXPLANATION. The Queen's Medical Center ("QMC") also supports Native Hawaiian Health initiatives through its Native Hawaiian Health Program (NHH). The program areas of the NHH are healthcare training, research, access and outreach, and clinical outcomes. QMC collaborates and partners to provide healthcare training and education opportunities to Native Hawaiian students and those committed to serving Native Hawaiian communities. The Ulu Kukui Project, a 5-year grant funded by the Howard Hughes Medical Institute, is a pre-college science education program with Stevenson Middle School to promote excellence in science education and the pursuit of biomedical careers by Native Hawaiians and Pacific Islanders. The NHH conducts ongoing assessment and development of QMC programs and services focused on Native Hawaiians. In addition, NHH's program focuses on quality improvement and increased access for Native Hawaiians to The Queen's Medical Center as well as collaborating with the Native Hawaiian community in education, research, and community outreach. For clinical outcomes, NHH works to provide a framework for the development, implementation and evaluation of clinical initiatives that aim to enhance the ola pono (well being) of Native Hawaiians. In addition to NHH, many of QMC's program services described below provide benefits to Native Hawaiians, including components of charity care and uncompensated care provided to our patients. The Queen's Medical Center ("QMC") provided approximately $118 million of community benefits, in support of its mission as a tax-exempt charitable hospital: 1.Uncompensated care - QMC provides medical services to patients who do not have the ability to pay (patients are not billed charity care) and patients who refuse to pay (bad debts). For the year ended June 30, 2011, the estimated losses from providing charity care and for services that were bad debts was $2,382,000 and $12,670,000 respectively. 2.Behavioral Health - QMC provides inpatient and outpatient behavioral health services that are necessary and in certain instances, not generally available in the State of Hawaii. The estimated losses from operations resulting from behavioral health services were $10,122,000 for the year ended June 30, 2011. 3.Queen Emma Clinics - QMC provides outpatient services to indigent patients and others though the Queen Emma Clinics. The losses from operations from the Queen Emma Clinics were approximately $3,904,000 for the year ended June 30, 2011. 4.On call physician compensation - QMC maintains the only Level II trauma center in the State of Hawaii. In order to provide Level II trauma coverage, the Medical Center incurred approximately $6,604,000 in on call physician coverage during the year ended June 30, 2011. 5.Resident and Intern Costs - QMC incurred costs in excess of reimbursement of approximately $5,427,000 during the year ended June 30, 2011 related to resident and intern programs. As a teaching facility, the Medical Center participates in and shares the costs of the Hawaii Residency Program. 6.Hawaii Medical Library - QMC maintains a medical library that benefits healthcare professionals in the State of Hawaii. The operating losses of the Hawaii Medical Library for the year ended June 30, 2011 were $898,000. 7.Transfer Hotline - QMC maintains a cardiac transfer hotline and a referral hotline to assist patients and other healthcare providers with the transfer and/or referral of patients to appropriate healthcare services. The operating losses of providing these services for the year ended June 30, 2011 were $1,356,000. 8.Transportation Services - QMC provides transportation to and from the Medical Center to patients who require assistance. The cost of providing these services was $147,000 for the year ended June 30, 2011. 9.Health and Wellness Education - QMC provides health and wellness education to the community in an effort to promote healthy lifestyles. For the year ended June 30, 2011, losses of providing health and wellness education were $376,000. 10.Research Losses - QMC employs staff and incurs unfunded costs for medical research. For the year ended June 30, 2011, research costs were $1,875,000. 11.Charitable Contributions - QMC makes contributions to outside charitable organizations. For the year ended June 30, 2011, contributions to outside charitable organizations were $1,450,000. Of this amount, $367,000 was for funding to the Department of Native Hawaiian Health under the John A. Burns School of Medicine of the University of Hawaii. In addition, $250,000 was donated to the University of Hawaii Cancer Consortium. 12.Emergency Preparedness - QMC is the only Level II trauma center in the State of Hawaii. QMC allocated resources to plan and test its readiness for community emergencies, including trauma, terrorist attacks and conditions resulting from hazardous material spills. For the year ended June 30, 2011, the costs of emergency preparedness were $721,000. 13.Electrical Generator Project - In order to maintain necessary life support, diagnostic and operating systems, in the event of an emergency, QMC significantly upgraded its power plant by adding two new generators that are capable of providing electrical power for the medical center. For the year ended June 30, 2011, costs incurred for the electrical generator project were $417,000. Total project costs incurred as of June 30, 2011 were approximately $34,086,000. 14.Medicaid Shortfall in Payments - QMC provides inpatient and outpatient services to Medicaid patients in the State of Hawaii. QMC incurred costs in excess of reimbursement of approximately $24,553,000 during the year ended June 30, 2011. 15.Medicare Shortfall in Payments - QMC provides inpatient and outpatient services to Medicare patients in the State of Hawaii. QMC incurred costs in excess of reimbursement based on Medicare Cost reports of approximately $14,200,000 during the year ended June 30, 2011. Consistent with cost report requirements, there are amounts that are excluded from the costs above. 16.Lease Pricing Below Fair Market Value - QMC extended lease rates to the University of Hawaii that are below fair market value. For the year ended June 30, 2011, revenues foregone from lease rates that were below fair market value were $43,000. 17.Programs That Improve Access to Healthcare - QMC improves the community's access to healthcare by helping patients qualify for Medicaid and other types of insurance. For the year ended June 30, 2011, these program costs totaled $849,000. 18.Kinau Street Off-ramp Improvement Project - In order to improve access to its Emergency Department and hospital, QMC, in conjunction with the state Department of Transportation and City Department of Transportation Services, began construction to the Kinau Street off-ramp. For the year ended June 30, 2011, costs incurred for the improvement project were $679,000. 19.Dental Clinic - QMC provides dental services to indigent patients and others through its Dental Clinic. The losses from operations from the Dental Clinic were approximately $96,000 for the year ended June 30, 2011. 20.Donated Use of Conference Rooms - QMC allows physicians and teachers from the John A. Burns School of Medicine of the University of Hawaii, various governmental entities including the Hawaii Department of Health and other nonprofit organizations the free use of its facilities at The Queen's Conference Center. For the year ended June 30, 2011, the value of the use of the center was $261,000. 21.Job Shadowing Program - QMC sponsors a job shadowing program for students in the state of Hawaii. For the year ended June 30, 2011, costs incurred for the program were $10,000. 22.QMC Nursing Program - QMC provides nursing internships and nurse training that help address the continued need for skilled nurses in the islands. For the year ended June 30, 2011, these costs totaled $700,000. 23.Community Health Improvement - QMC sponsored a senior health fair which included information booths, handouts and complimentary health checks. For the year ended June 30, 2011, non-marketing costs incurred related to the health fair was $3,000. 24.Community Outreach - QMC employees volunteer their time and experience providing free lectures to members of the community including professionals, students and members of the public. 25.Volunteer Efforts - QMC employees periodically volunteer for other charitable organizations. For the year ended June 30, 2011, these events included the American Heart Association's "Heart Walk", American Cancer Society's "Relay for Life" and "Hope Lodge Fundraiser", Susan G. Komen Foundation's "Race for the Cure", Waikiki Improvement Association's "Beach Clean Up" and the American Diabetes Association's "Step Out" Fundraiser. In addition, QMC employees dedicate many hours serving as volunteer board members for other Hawaii based charitable organizations. 639015398 true true false true false false false false true true true false true true true true true false false false false false false true false true true true false true true false false false false false false false false false true false false false false false true true true false false true 458 0 true 4215 true true true false false false false false false false false false X 18 13 false false false false true true true true true false false true true true true true true true true true false CA X CLINTON YEE 8085389011 1301 PUNCHBOWL STREET HONOLULU HI 96813 NALEEN N ANDRADE MD 1.0 X 0 0 0 EVELYN J BLACK 1.0 X 0 0 0 NORMAN T S CHONG 1.0 X 0 0 0 ERNEST H FUKEDA JR 1.0 X 0 0 0 NEIL J HANNAHS 1.0 X 0 0 0 NOREEN MOKUAU DSW 2.0 X X 0 0 0 WILLIAM G OBANA MD 13.0 X X 120052 0 0 CAROLINE WARD ODA 1.0 X 0 0 0 GARRETT K SERIKAWA 1.0 X 0 0 0 ARTHUR A USHIJIMA 65.0 X X 0 884694 422887 JULIA C WO 1.0 X 0 0 0 ERIC K YEAMAN 1.0 X 0 0 0 Peter Halford MD 22.0 X 121705 0 0 Robb Ohtani MD 13.0 X 48225 0 0 PETER HANASHIRO 1.0 X 0 0 0 ROBERT NOBRIGA 1.0 X 0 0 0 CHRISTINE GAYAGAS 1.0 X 0 0 0 BARRY WEINMAN 1.0 X 0 0 0 SHARLENE K TSUDA 55.0 X 0 226191 50003 MARK H YAMAKAWA 55.0 X 0 563595 101958 PAULA YOSHIOKA 55.0 X 381217 0 55391 Richard C Keene 55.0 X 0 462823 60974 Clinton Yee 55.0 X 167614 0 25786 Michael H Dang MD 60.0 X 741134 0 22736 Cherylee W J Chang MD 60.0 X 496339 0 33060 TODD SETO MD 60.0 X 499349 0 17354 CHARLES BRADY III MD 60.0 X 489348 0 31525 ROBERT A HONG MD 60.0 X 489294 0 19922 3554277 2137303 841596 573 false true false AFFILIATED COMPUTER SVS PO BOX 201322 DALLAS TX 753201322 INFO SYS OUTSOURCING 11090333 UCERA 677 ALA MOANA BLVD STE 1003 HONOLULU HI 96813 MEDICAL SERVICE 8334621 HAWAII RESIDENCY PROGRAMS INC 1356 LUSITANA ST 510 HONOLULU HI 96813 MEDICAL SERVICE 8810827 UNITED LAUNDRY SERVICES INC 2291 ALAHAO PL HONOLULU HI 96819 LAUNDRY SERVICES 2463856 SODEXO Inc Affiliates 1301 PUNCHBOWL STREET HONOLULU HI 96813 MANAGEMENT SERVICE 3811293 95 207524 33518867 2180370 35906761 NET PATIENT REVENUE 622477648 622477648 INTERCO PURCHASED 561000 8061556 5620671 2440885 630539204 6649844 -347724 6997568 0 0 438180 438180 438180 438180 10391035 172478 10391035 -172478 10218557 10218557 31526 207524 51537 -20011 -20011 0 0 SERVICE TAXABLE 621500 1689004 1486157 202847 RESEARCH 621500 2519570 2519570 OTHER SERVICES 621500 6707720 2630253 4077467 7422568 6966572 455996 18338862 702071397 641700871 6829471 17634294 1788944 1788944 0 0 0 841420 292589 548831 0 0 260799165 253848153 6951012 26945445 26119852 825593 32067515 30960035 1107480 18357081 17802232 554849 0 802918 549128 253790 375180 61327 313853 30092 30092 0 0 24738273 24414650 323623 721791 645258 76533 311806 189436 122370 501439 486697 14742 0 15317613 15054035 263578 1269242 447165 822077 0 7883 7883 9903328 9903328 31202772 30269972 932800 35411185 35369106 42079 8446737 294523 8152214 SUPPLIES 105229472 104990339 239133 PURCHASED SERVICES 51504970 44608740 6888696 7534 BAD DEBT 30096291 30096291 LICENSE, PERMITS & FEES 1964524 1716337 248187 EDUCATION 2364924 2358877 6047 7984853 6710409 1227326 47118 668984863 639015398 29914813 54652 29034 28502 36260220 21679191 80241046 71224222 8284333 8237762 9084695 9059438 630043795 393134023 242866431 236909772 411434750 440843899 9072698 103142893 84512243 96546490 881785450 987672169 209050265 195134390 286220000 274330000 1980444 106245653 128757546 601515918 600202380 X 262843000 368639256 11475532 12879719 5951000 5950814 280269532 387469789 881785450 987672169 X 33086534 74113723 X false true true X true true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 0 0 30092 46088 30092 46088 638985306 704062127 639015398 704108215 1000000 1000000 250000 250000 false 1000000 1000000 1000000 1000000 4000000 6000000 244324 134730 31942 46088 457084 250000 250000 250000 250000 1000000 1500000 0 0 0 0 0 7195561 40500 662352 48405 612152 7237856 6633813 852775 386481 32281 645226 7195562 6236306 710304 42671 80428 275040 6633813 1.00000 false false 19735383 19735383 383084347 235811702 147272645 8069664 2127548 5942116 191196924 147909368 43287556 27957477 7285405 20672072 236909772 HI CREDENTIAL VERIFICATION 160075 HAMAMATSU/QUEEN'S PET IMAGING 3493209 CARERESOURCE HAWAII 1281266 OTHER INVESTMENTS 98208343 103142893 OTHER ASSETS RESTRICTED FOR LT 1995476 ASSETS LIMITED - BOND FUND 12741980 INTANGIBLE - DEFERRED FINANCE. 6386116 DUE FROM AFFILIATES 75383433 DEFERRED RENT-UH TOWER 39485 96546490 0 DUE TO AFFILIATES 81718762 DUE TO GOVERNMENT 6768853 CAPITAL LEASE/OTHER OBLIGATION 4232228 TAXABLE COMMERCIAL PAPER 18378645 DUE TO GOVT REIMBURSEMENT 17659058 128757546 702071397 668984863 33086534 30228940 43884784 74113724 107200258 658175768 11429875 11429875 646745893 55325504 55325504 702071397 665617437 -1649419 -1649419 667266856 1718007 1718007 668984863 RECONCILIATION OF CHANGE IN NET ASSETS SCHEDULE D, PART XI, LINE 8 EQUITY IN SUBSIDIARIES 412,814 PENSION FAS 87 ADJUSTMENT 16,981,878 GAIN ON INTEREST RATE SWAP 4,679,028 OTHER THAN TEMPORARY GAIN ON INVESTMENT 21,702,066 UNREALIZED GAIN ON HEDGING TRANSACTION 108,998 ----------- 43,884,784 REVENUE BOOK TO TAX RECONCILIATION SCHEDULE D, PART XII, LINE 2D REVENUE FROM HAMAMATSU/QUEEN'S PET 3,745,395 ELIMINATION (5,411,541) NET ASSETS RELEASED FROM RESTRICTION 12,683,207 EQUITY IN SUBSIDIARIES 412,814 ----------- 11,429,875 REVENUE BOOK TO TAX RECONCILIATION SCHEDULE D, PART XII, LINE 4B INVESTMENT INCOME INCLUDED IN NONOPERATING INCOME 16,509,713 REVENUE - TEMP. RESTRICTED 5,469,402 LOSS FROM SALE OF EQUIPMENT INCLUDED IN NONOPER. INCOME (172,478) TRANSFERS FROM AFFILIATES 33,518,867 ------------- 55,325,504 EXPENSES BOOK TO TAX RECONCILIATION SCHEDULE D, PART XIII, LINE 2D EXPENSES FROM HAMAMATSU/QUEEN'S PET 3,086,757 ELIMINATION (4,736,176) ----------- (1,649,419) EXPENSES BOOK TO TAX RECONCILIATION SCHEDULE D, PART XIII, LINE 4B TRANSFERS TO AFFILIATES 330,635 DONATIONS INCLUDED IN NONOPERATING EXPENSE 1,458,309 NONOPERATING EXPENSE (70,940) ROUNDING 3 ---------- 1,718,007 ENDOWMENT FUNDS Schedule D, Part V, line 4 The Queen's Medical Center uses the earnings on permanently endowed investments for the purposes intended by the donors of these funds. ASC 740 Schedule D, Part X, line 2 QMC REGULARLY ASSESSES ITS TAX POSITIONS AND DID NOT HAVE MATERIAL UNCERTAIN TAX BENEFITS FOR THE YEAR ENDED JUNE 30, 2011 AND 2010. BENEFIT DINNER 239050 207524 31526 1047 36703 9658 4129 0 239050 207524 31526 1047 36703 9658 4129 51537 -20011 true true true X true X true true true false true true 2382000 0 2382000 0.00370 105835000 81282000 24553000 0.03850 0 0 0 0.00000 108217000 81282000 26935000 0.04220 2731000 0 2731000 0.00430 7035000 0 7035000 0.01100 20726000 0 20726000 0.03250 1875000 0 1875000 0.00290 1754000 0 1754000 0.00270 34121000 0 34121000 0.05340 142338000 81282000 61056000 0.09560 1817000 0 1817000 0.00280 1817000 0 1817000 0.00280 true 12670000 0 172300000 186500000 -14200000 X true true HamQueen's PET operate/maint. PET equipment 0.00700 0.00000 0.00000 1 1 THE QUEEN'S MEDICAL CENTER

1301 Punchbowl Street HONOLULU HI 96813

X X X X X THE QUEEN'S MEDICAL CENTER 1 PART I, LINE 3c For patients who are citizens of a foreign country who do not reside in the United States, QMC uses 125% of the resident country's minimum wage. PART I, LINE 6a Community benefits are reported annually as part of the Form 990. This is not separately available to the public. A formal report issued by the parent company, The Queen's Health Systems, includes the community benefits of the Queen's Medical Center. This report is published periodically and is separately available to the public. PART I, LINE 7g The Queen Emma Clinics provide comprehensive patient care to indigent patients and serve a large homeless population. The net costs associated with these clinics was $3,851,000. PART I, LINE 7 The costing methodology considers all patient segments. Amounts represent the net costs for the various programs and operations, considering actual amounts incurred and calculated benefits based on cost-to-charge ratios and average rates (i.e. wage rates). PART I, LINE 7, COLUMN F BAD DEBT EXPENSE OF $30,096,291 WAS EXCLUDED FOR THE CALCULATION OF THE NET COMMUNITY BENEFIT PERCENTAGE IN PART I, LINE 7, COLUMN F. PART III, LINE 4 The audited financial statements do not describe bad debt expense. The audited financial statements do describe the allowance for uncollectible accounts. "QMC provides for an allowance against accounts receivable that could become uncollectible by establishing an allowance to reduce the carrying value of such receivables to their estimated net realizable value. QMC estimates the allowance based on the aging of the accounts receivable. Historical collection experience by payor, and other relevant factors." The data above is based on the application of a cost-to-charge ratio against the internal accounting of uncollectible accounts. PART III, LINE 8 The Medicare amounts above are calculated with data from the June 30, 2011 Medicare Cost Report, using the step down method. Consistent with reporting requirements, there are amounts excluded from the costs listed in line 6. When using a fully allocated cost calculation, the medicare shortfall was approximately $42.5 million. PART III, LINE 9B Every attempt is made before discharge to screen patients who have no documentation of medical insurance for possible eligibility for discounted care. The granting of charity care discounts are based on a determination of financial need using income and asset thresholds and is in compliance with all state and federal rules and regulations. Patients are required to complete a discounted care application and must submit income and asset verification documents. Once eligibility is confirmed, payment plans are arranged. Billing statements are mailed monthly. When eligible for discounted service, the statements reflect related discounts. NEEDS ASSESSMENT QMC's mission is to fulfill the intent of Queen Emma and King Kamehameha IV to provide in perpetuity quality health care services to improve the well-being of native Hawaiians and all the people of Hawaii. PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE QMC provides guidance and assistance to patients by assisting in the application for eligible patients to local, state, and/or federal health assistance with this process. COMMUNITY INFORMATION QMC is the leading medical referral center in the Pacific Basin. Located in downtown Honolulu, it's the largest private hospital in Hawaii. According to recent demographic census data, the state of Hawaii is very diverse and includes a population that is approximately 10% Native Hawaiian, other Pacific Islander, Native Alaskan and American Indian. PROMOTION OF COMMUNITY HEALTH The amounts mentioned in Part II of Schedule H represent costs incurred to ensure continued operations that benefit the community. These include emergency preparedness costs and amounts expended to expand and test back-up power that can service patients in times of emergency. In addition, QMC provides many free informational seminars and educational opportunities to the public to promote the health of the community. These programs are specifically directed to address health issues within the community including diabetes, cancer and women's health issues. AFFILIATED HEALTH CARE SYSTEM In addition to the Queen's Medical Center, affiliate organizations of the Queen's Health Systems operate the only hospital on the Island of Moloka'I, provide diagnostic laboratory services, operate pharmacies, and provide the hospitals with general and professional liability insurance. true Aloha Medical Mission 810 North Vineyard Blvd HONOLULU HI 96817 990234811 501(C)(3) 25000 Sponsor Free Health Care Services Aloha United Way 200 N Vineyard Blvd Suite 700 HONOLULU HI 96817 990073494 501(C)(3) 5100 Sponsor Community Executive Program American Diabetes Association 875 Waimanu Street 601 HONOLULU HI 96813 131623888 501(C)(3) 7500 Sponsor Diabetes Annual Walk American Heart Association 677 Ala Moana Blvd 600 HONOLULU HI 96813 135613797 501(C)(3) 20000 Sponsor Heart Ball & Medical Symposium Girl Scouts of Hawaii 420 Wyllie Street HONOLULU HI 96817 990073488 501(c)(3) 7500 Sponsor Woman of Distinction Hawaii Academy of Science 1776 University Ave Honolulu HI 96822 996006863 501(c)(3) 10000 Sponsor Science & Engineering Fair Hina Mauka 45-845 Pookela Street Kaneohe HI 96744 990173356 501(c)(3) 8500 Sponsor Multiple Fundraising Events March of Dimes 1451 S King St Honolulu HI 96814 131846366 501(c)(3) 7500 Sponsor Governor's Ball Pacific Health Ministry 1245 Young Street 204 Honolulu HI 96814 990281185 501(C)(3) 6000 Sponsor Multiple Fundraising Events Public Schools of Hawaii Foundation PO Box 4148 Honolulu HI 96812 880243449 501(C)(3) 15000 Kulia I Ka Nu'u Awards Banquet The Queen's Health System 1301 Punchbowl Street HONOLULU HI 96813 990238120 501(c)(3) 330635 OPERATING GRANT TO AFFILIATE University of Hawaii Foundation 2444 Dole St Bachman Hall Rm 105 HONOLULU HI 96822 990085260 501(C)(3) 62500 Native Hawaiian Health Training Scholarship Fund & Contributions UH Office of Research Services 2530 Dole Street Sakamaki D-200 HONOLULU HI 96822 990085260 501(C)(3) 90000 Ike Ao Pono / Native Hawaiian Health Initiative Various 5000 1301 Punchbowl Street HONOLULU HI 96813 87769 Donations Aloha Council Boy Scouts of America 42 Puiwa Road Honolulu HI 96817 221576300 501(C)(3) 9000 Hawaii Distinguished Citizen Event Cancer Research Center of Hawaii 1236 Lauhala Street Honolulu HI 96813 990207313 501(c)(3) 7600 Sponsor Fundraiser & Silent Auction East-West Center 1601 East-West Road Honolulu HI 96848 990161603 501(C)(3) 50000 Sponsor APEC 2011 Hawaii Hawaii Maoli PO Box 1135 Honolulu HI 96807 943274865 501(C)(3) 6500 Sponsor Annual Convention Historic Hawaii Foundation PO Box 1658 Honolulu HI 96806 237441972 501(C)(3) 7000 Annual Kama'aina of the Year Event Japan-America Society of Hawaii 220 S King StSuite 1501 Honolulu HI 96813 990359990 501(C)(3) 15000 Japan Disaster Relief Ka Meheu 'Ohu O Ka Honu PO Box 1072 Wailuku HI 96793 990328359 501(C)(3) 9000 Purchase of Health Screenings Supplies Na Pu'u Wai PO Box 130 Kaunakakai HI 96748 990255760 501(C)(3) 270000 FMV Building Contribution of Building Property Papa Ola Lokahi 894 Queen Street Honolulu HI 96813 990273765 501(C)(3) 20000 Sponsor Multiple Fundraising Events Hawaii Cancer Consortium c/o 55 Merchant Street Suite 2700 Honolulu HI 96813 452280259 501(c)(3) 250000 Sponsor Cancer Consortium Department of Native Hawaiian Health Donation on behalf of Queens Healt Honolulu HI 96813 996000354 501(c)(3) 366840 Commitment for DNHH and Scholarship Fund Hospice of Hilo 1011 Waianuenue Avenue Hilo HI 96720 990218512 501(C)(3) 25000 Capital Campaign 108 2 ORGANIZATION'S PROCEDURES FOR MONITORING GRANT FUNDS SCHEDULE I GRANTS AND OTHER ASSISTANCE, PART I, LINE 2 The Queens Medical Center makes donations to various tax-exempt organizations with the purpose of providing opportunities for better health and wellness to all the people of Hawaii. There are generally no restrictions placed on the use of those donations and the receiving organizations may use the donations at their discretion in order to further their exempt purpose. Where restrictions are placed on the use of those donations, QMC requests financial reports in order to monitor such use. X true false X X X X X true true false false false true true true false SHARLENE K TSUDA 0 176497 0 32317 0 17377 0 27219 0 22784 0 276194 ARTHUR A USHIJIMA 0 616935 0 165532 0 102227 0 358148 0 64739 0 1307581 MARK H YAMAKAWA 0 427515 0 101891 0 34189 0 58131 0 43827 0 665553 PAULA YOSHIOKA 315689 0 45271 0 20257 0 23628 0 31763 0 436608 0 Richard C Keene 0 384491 0 58461 0 19871 0 23662 0 37312 0 523797 Clinton Yee 154327 0 12800 0 487 0 12465 0 13321 0 193400 0 Michael H Dang MD 621166 0 81500 0 38468 0 12126 0 10610 0 763870 0 Cherylee W J Chang MD 317363 0 65172 0 113804 0 23809 0 9251 0 529399 0 TODD SETO MD 298268 0 59160 0 141921 0 11025 0 6329 0 516703 0 CHARLES BRADY III MD 417732 0 64758 0 6858 0 21493 0 10032 0 520873 0 ROBERT A HONG MD 389771 0 95635 0 3888 0 18405 0 1517 0 509216 0 COMPENSATION COMMITTEE SCHEDULE J, PART I, LINE 3 Compensation committee refers to a committee of the organization's governing body responsible for determining the top management official's compensation package, whether or not the committee has been delegated the authority to make an employment agreement with the top management official on behalf of the organization. The compensation committee may also have other duties. Arthur A Ushijima FORM 990 PART VII Arthur A Ushijima AVERAGE HOURS PER WEEK: 30 hours per week - QMC President 2 hours per week - QMC & affiliates Trustee 65 hrs per week - QHS & affiliates MR. USHIJIMA SERVES AS A TRUSTEE FOR THE QUEEN'S MEDICAL CENTER, THE QUEEN'S HEALTH SYSTEMS, AND SEVERAL OTHER QUEEN'S RELATED AFFILIATES (2 HOURS PER WEEK). He is a volunteer Trustee and is not compensated for those services. Mr. Ushijima also serves as President & Chief Executive Officer of The Queen's Health Systems (parent company) and as President of QMC. The compensation listed on FORM 990 PART VII is his total compensation for all services. Mark Yamakawa FORM 990 PART VII Mark Yamakawa AVERAGE HOURS PER WEEK: 39 hours per week - QMC 55 hrs per week - QHS & affiliates Mr. Yamakawa serves as EVP & COO of the Queen's Health System (parent company), EVP& COO of QMC and Chairman of QDC. He is not separately compensated for these various services. The compensation listed on FORM 990 PART VII is his total compensation for all services. Richard C Keene FORM 990 PART VII Richard C. Keene AVERAGE HOURS PER WEEK: 20 hrs per week - QMC 55 hrs per week - QHS & affiliates Mr. Keene serves as QMC Treasurer, EVP/CFO and Treasurer for The Queen's Health Systems (parent company), Treasurer of QEL and Treasurer of MGH. He is not separately compensated for these services. The compensation listed on FORM 990 PART VII is his total compensation for all services. Sharlene Tsuda FORM 990 PART VII Sharlene Tsuda AVERAGE HOURS PER WEEK: 2 hrs per week - QMC 55 hrs per week - QHS & affiliates Ms. Tsuda serves as Secretary for QMC and VP/Secretary for the Queen's Health Systems (Parent Company). She is not separately compensated for these various services. The compensation listed on FORM 990 PART VII is her total compensation for all services. Paula Yoshioka FORM 990 PART VII Paula Yoshioka Average Hours Per Week: 54 Hours per week - QMC 55 Hours per week - QHS & Affiliates Ms. Yoshioka serves as EVP/CAO of QMC and A Director of QIE. She is not separately compensated for these services. The compensation listed on Form 990 Part VII is her total compensation all services. CLINTON YEE FORM 990 PART VII Clinton Yee average hours per week: 40 hours per week - QMC 55 hours per week - QHS & Affiliates Mr. Yee serves as Assistant Treasurer and Corporate Controller of QMC. He is not separately compensated for these services. The compensation listed on Form 990 Part VII is his total compensation for all services. WILLIAM G OBANA MD FORM 990 PART VII DR. OBANA SERVES AS A TRUSTEE FOR THE QUEEN'S MEDICAL CENTER (2 HOURS PER WEEK). HE IS A VOLUNTEER TRUSTEE AND IS NOT COMPENSATED FOR THESE SERVICES. DR. OBANA'S COMPENSATION IS FOR HIS ON-CALL SPECIALTY SERVICES AT THE QUEEN'S MEDICAL CENTER (ESTIMATED AVERAGE OF 11 HOURS PER WEEK). Peter Halford MD FORM 990 PART VII DR. HALFORD SERVES AS A TRUSTEE FOR THE QUEEN'S MEDICAL CENTER (1 HOUR PER WEEK). HE IS A VOLUNTEER TRUSTEE AND IS NOT COMPENSATED FOR THESE SERVICES. DR. HALFORD'S COMPENSATION IS FOR HIS ON-CALL SPECIALTY SERVICES AT THE QUEEN'S MEDICAL CENTER (ESTIMATED AVERAGE OF 21 HOURS PER WEEK). Robb K Ohtani MD FORM 990 PART VII DR. OHTANI SERVES AS A TRUSTEE FOR THE QUEEN'S MEDICAL CENTER (1 HOUR PER WEEK). HE IS A VOLUNTEER TRUSTEE AND IS NOT COMPENSATED FOR THESE SERVICES. DR. OHTANI'S COMPENSATION IS FOR HIS ON-CALL SPECIALTY SERVICES AT THE QUEEN'S MEDICAL CENTER (ESTIMATED AVERAGE OF 12 HOURS PER WEEK). Department of Budget & Finance State of Hawaii 990266961 419800FB8 2003-12-11 114300000 ADVANCE REFUNDING false false false Department of Budget & Finance State of Hawaii 990266961 419800FR3 2006-03-16 144875000 Multipurpose Issue false false false Department of Budget & Finance State of Hawaii 990266961 419800HT7 2009-05-06 78670000 CURRENT REFUNDING false false false 6225000 0 114300000 0 0 0 1391568 3276390 292217 0 0 0 2003 false true true true 18900000 0 149237584 0 1300000 0 1270326 2193032 3870420 76594210 0 1995476 true false false 3390000 0 78670000 0 0 0 1332516 236880 0 0 0 0 2009 true false true true false false false false true 0.00000 0.00000 0.00000 true false true true BANK OF AMERICA ML 25.6 false false false false false true true BANK OF AMERICA ML 18.2 false false false false false true true BANK OF AMERICA ML 22.2 false false false false SEE SCHEDULE O Eric K Yeaman Trustee of QMC 315571 SEE PART V false ERIC K YEAMAN SCHEDULE L PART IV LINE 1 ERIC K YEAMAN IS AN OFFICER OF A TELECOMMUNICATIONS COMPANY THAT PROVIDES SERVICES TO THE ORGANIZATION. DURING THE YEAR, THE ORGANIZATION PAID SERVICE FEES TO THIS TELECOMMUNICATIONS COMPANY TOTALING $315,571. FORM 990, PT VI, SECTION A, LINE 7A QMC has a sole member, which is The Queen's Health Systems, a Hawaii nonprofit corporation ("QHS"). QHS elects all of the board members of the QMC Board of Trustees. FORM 990, PT VI, SECTION A, LINE 7B Certain major decisions approved by the QMC Board of Trustees must also be approved by QHS. Such decisions include: 1. A change to the purpose of the company; 2. A financing transaction in excess of $500,000; 3. A lease transaction that has a term that is longer than 3 years or has a rent obligation in excess of $1,000,000 over the lease term; 4. A transaction involving the sale, lease, disposition or hypothecation of real property; 5. Annual operational and capital budgets; 6. Strategic plans; 7. Merger or major acquisitions; 8. Creation of a new entity or joint venture; 9. Sale or disposition of all or substantially all of its assets; 10. Dissolution; 11. Amendment of Bylaws; 12. Adoption, amendment or rescission of a Board Policy; 13. Capital expenditures in excess of $2,000,000 for QMC. FORM 990, PT VI, SECTION A, LINE 11B The Form 990 for The Queen's Health System (QHS) and the separate forms for each of the not-for-profit subsidiaries of QHS were reviewed by the governing body of QHS prior to the filing of the returns. The QHS Finance Committee, which is comprised of members of the QHS Board of Trustees, was delegated the responsibility to review the returns prior to their filing. The returns were presented to the Committee by management and by the independent public accounting firm that prepared the returns. In addition, compensation related disclosures in the returns were reviewed by the Chairperson of the QHS Compensation Committee prior to filing the returns. Also, a copy of the QHS returns was made available to each of the members of the Board of Trustees prior to the returns being filed with the Internal Revenue Service. FORM 990, PT VI, SECTION B, LINE 12C All QHS companies are subject to a written Conflict of Interest Policy. All trustees, officers, designated employees and contractors are required to complete an annual disclosure form. The designated employees are those selected by Executives in the organization who identify those employees (typically manager level and above) who may be in a position to select or influence the selection of a vendor. Disclosures are summarized and maintained by each company's corporate secretary. The contracts management department and legal department have the conflict summaries and check for conflicts of interest at the beginning of the contract process. Any conflict of interest involving a trustee is presented to the Board of Trustees. Any transaction involving a disqualified person is subject to the process of establishing a rebuttable presumption of reasonableness. Any trustee with a conflict of interest is excused for the portion of the meeting where the subject matter is discussed and voted on. FORM 990, PT VI, SECTION B, LINE 15A & 15B A committee of the Board of Trustees called the Compensation Committee meets regularly to review compensation of all executives of all companies within QHS. Executive compensation is reviewed annually. All decisions regarding executive compensation are made in conformity with the procedures required to establish a rebuttable presumption of reasonableness. Any adjustment to compensation is subject to the process of performance reviews and comparison to comparable compensation data prepared by a nationally recognized independent compensation consultant. Outside counsel assists with the review process and documents the decisions of the committee. FORM 990, PT VI, SECTION C, LINE 19 QMC's governing documents are available to the general public upon request. QMC does not make its conflict of interest policy or financial statements available to the public. Schedule K, Supplemental Information on Tax-Exempt Bonds On December 11, 2003, The Queen's Medical Center issued Special Purpose Revenue Bonds (The Queen's Health System) 2003 Series A, 2003 Series B, and 2003 Series C (the 2003 Issue). The purpose of the 2003 Issue was to advance refund a portion of the 1996 bond series issued on July 18, 1996. On March 16, 2006, The Queen's Medical Center issued Special Purpose Revenue Bonds (The Queen's Health System) 2006 Series A and 2006 Series B (the 2006 issue). The purpose of the 2006 issue was to refund a portion of the 1998 bond series issued on July 1, 1998 on a current basis and to finance approved capital projects. On May 6, 2009, The Queen's Medical Center issued Special Purpose Revenue Bonds (The Queen's Health System) 2009 Series A and 2009 Series B (the 2009 Issue). The purpose of the 2009 issue was to refund the 2003C and 2006C bond series issued December 11, 2003 and March 16, 2006, respectively, on a current basis. The CUSIP number for 2009 Series A is 419800HT7 and the CUSIP number for 2009 Series B is 419800HV2. The Queen's Medical center believes, and has prepared Schedule K in a manner consistent with such belief, that the Part III exclusion provided in the instructions for bonds that refund a pre-2003 bond issue applies to the 2003 Series A bonds, though no allocations under Regulations section 1.141-13(d) have yet been elected; this submission does not constitute an allocation election under Regulations section 1.141-13(d). The Queen's Medical center believes, and has prepared Schedule K in a manner consistent with such belief, that the Part III exclusion provided in the instructions for bonds that refund a pre-2003 bond issue applies to the 2003 Series B bonds, though no allocations under Regulations section 1.141-13(d) have yet been elected; this submission does not constitute an allocation election under Regulations section 1.141-13(d). The Queen's Medical center believes, and has prepared Schedule K in a manner consistent with such belief, that the Part III exclusion provided in the instructions for bonds that refund a pre-2003 bond issue applies to the 2006 Series A bonds, though no allocations under Regulations section 1.141-13(d) have yet been elected; this submission does not constitute an allocation election under Regulations section 1.141-13(d). The Queen's Medical center believes, and has prepared Schedule K in a manner consistent with such belief, that the Part III exclusion provided in the instructions for bonds that refund a pre-2003 bond issue applies to the 2009 Series A bonds, though no allocations under Regulations section 1.141-13(d) have yet been elected; this submission does not constitute an allocation election under Regulations section 1.141-13(d). The Queen's Medical center believes, and has prepared Schedule K in a manner consistent with such belief, that the Part III exclusion provided in the instructions for bonds that refund a pre-2003 bond issue applies to the 2009 Series B bonds, though no allocations under Regulations section 1.141-13(d) have yet been elected; this submission does not constitute an allocation election under Regulations section 1.141-13(d). For purposes of Part II, QMC assumes that amounts spent to retire prior debt are neither working capital nor capital expenditures, and are not reported herein. There is more than one hedging contract related to the 2009 issue. The term of the 2003 hedge is 25.6 Years while the term of the 2006C hedge is 22.2 Years. FORM 990, PT XI, LINE 5 OTHER CHANGES IN NET ASSETS OR FUND BALANCES UNREALIZED GAIN ON INVESTMENTS 30,228,940 EQUITY IN SUBSIDIARIES 412,814 PENSION FAS 87 ADJUSTMENT 16,981,878 GAIN ON INTEREST RATE SWAP 4,679,028 OTHER THAN TEMPORARY GAIN ON INVESTMENT 21,702,066 UNREALIZED GAIN ON HEDGING TRANSACTION 108,998 ROUNDING (1) ------------ 74,113,723 ------------ THE QUEEN'S HEALTH SYSTEM (QHS) 1301 PUNCHBOWL STREET HONOLULU HI 96813 990238120 ADMIN SERVICE HI 501(c)(3) 11 TYPE I NA QUEEN EMMA LAND COMPANY 1301 PUNCHBOWL STREET HONOLULU HI 96813 990183769 SUPPORT SVCS HI 501(c)(3) 11 TYPE II QHS MOLOKAI GENERAL HOSPITAL PO BOX 408 KAUNAKAKAI HI 96748 990251372 HEALTH CARE HI 501(c)(3) 3 QHS HAMQUEEN'S PET 1301 PUNCHBOWL HON HI 96813 943266916 PET IMAGING HI NA RELATED 565550 3508841 false 0 false 0.70000 THE QUEEN'S DEVELOPMENT CORP & SUBS 1301 PUNCHBOWL STREET HONOLULU HI 96813 990240109 DEVELOPMENT HI QHS C CORP QUEEN'S INSURANCE EXCHANGE INC 1301 PUNCHBOWL STREET HONOLULU HI 96813 911913839 INSURANCE HI QHS INSURANCE CORP DIAGNOSTIC LABORATORY SERVICES INC 99-859 IWAIWA STREET AIEA HI 96701 990240499 MEDICAL LAB SERV HI QDC C CORP false true true false false false false false true true false false false false true true false true THE QUEEN'S HEALTH SYSTEMS B 330635 QUEEN EMMA LAND COMPANY C 33518867 THE QUEEN'S DEVELOPMENT CORP & SUBS I 1986829 DIAGNOSTIC LABORATORY SERVICES INC I 776980 QUEEN EMMA LAND COMPANY J 429046 THE QUEEN'S DEVELOPMENT CORP & SUBS J 2234698 THE QUEEN'S HEALTH SYSTEMS O 13867764 DIAGNOSTIC LABORATORY SERVICES INC O 12048814 MOLOKAI GENERAL HOSPITAL P 648371 QUEEN EMMA LAND COMPANY P 1677 THE QUEEN'S HEALTH SYSTEMS P 484599 THE QUEEN'S DEVELOPMENT CORP & SUBS P 1662675 QUEEN EMMA LAND COMPANY R 1883010