2012-08-15T12:28:07-05:00 2011-09-30 FEELEY & DRISCOLL PC 200 PORTLAND STREET BOSTON MA 02114 990 2010-10-01 042780816 MORTON HOSPITAL AND MEDICAL CENTER INC MORT 5088287000 88 WASHINGTON STREET TAUNTON MA 02780 DAVID GAY 5088287000 2012-07-31 1 ALAN GAROFALO 6177427788 2010 2016-02-24 21:20:13Z DAVID GAY 88 WASHINGTON STREET TAUNTON MA 02780 143235610 0 X MORTONHOSPITAL.ORG X 1889 MA MORTON HOSPITAL AND MEDICAL CENTER, INC. IS A VOLUNTARY NON-PROFIT CORPORATION LOCATED IN THE CITY OF TAUNTON IN BRISTOL COUNTY, MASSACHUSETTS. THE HOSPITAL IS A 153-BED AND 14 BASSINET GENERAL MEDICAL/SURGICAL ACUTE COMMUNITY HOSPITAL. THE HOSPITAL OFFERS A FULL RANGE OF HOSPITAL SERVICES AND, IN ADDITION, PROVIDES OTHER SPECIALTY PROGRAMS AND SERVICES TO FURTHER THE COMMUNITY. THE SERVICE AREA OF THE HOSPITAL IS COMPOSED OF THE FOLLOWING LOCALES: TAUNTON, EAST TAUNTON, RAYNHAM, NORTH DIGHTON, DIGHTON, MIDDLEBORO, REHOBOTH, LAKEVILLE, BRIDGEWATER AND NORTON. THE POPULATION OF THE SERVICE AREA IS APPROXIMATELY 120,000 BASED UPON THE LATEST AVAILABLE DATA FROM THE MORTON HOSPITAL MARKETING DEPARTMENT. 27 26 1330 120 0 0 553587 360930 127318134 120570937 1021039 1588626 2093075 2015999 130985835 124536492 0 0 0 0 76510393 74006551 0 0 0 52415404 51648631 128925797 125655182 2060038 -1118690 67683435 43056811 75131942 68371583 -7448507 -25314772 TO IMPROVE THE HEALTH STATUS OF OUR COMMUNITIES BY PROVIDING ACCESS TO COMPREHENSIVE, HIGH QUALITY, COMPASSIONATE AND EFFICIENT HEALTHCARE SERVICES. 0 0 51440513 55255358 INPATIENT HEALTHCARE SERVICES - PROVIDING INPATIENT SERVICES CONSISTENT WITH OUR CORE VALUES BY PROVIDING ACCESS TO COMPREHENSIVE, HIGH QUALITY, COMPASSIONATE AND EFFICIENT HEALTHCARE SERVICES. THE COMMUNITY SERVED OF THE HOSPITAL IS COMPOSED OF THE FOLLOWING LOCALES: TAUNTON, EAST TAUNTON, RAYNHAM, NORTH DIGHTON, DIGHTON, MIDDLEBORO, REHOBOTH, LAKEVILLE, BRIDGEWATER AND NORTON. DURING FY11, MORTON HOSPITAL PROVIDED 30,927 PATIENT DAYS OF INPATIENT SERVICES, WITH 7,720 DISCHARGES. 41794748 49254646 OUTPATIENT HEALTHCARE SERVICES - PROVIDING OUTPATIENT SERVICES CONSISTENT WITH OUR CORE VALUES BY PROVIDING ACCESS TO COMPREHENSIVE, HIGH QUALITY, COMPASSIONATE AND EFFICIENT HEALTHCARE SERVICES. THE COMMUNITY SERVED OF THE HOSPITAL IS COMPOSED OF THE FOLLOWING LOCALES: TAUNTON, EAST TAUNTON, RAYNHAM, NORTH DIGHTON, DIGHTON, MIDDLEBORO, REHOBOTH, LAKEVILLE, BRIDGEWATER AND NORTON. DURING FY11, MORTON HOSPITAL HAD 66,102 OUTPATIENT VISITS. 13628412 16060933 EMERGENCY ROOM SERVICES - PROVIDING EMERGENCY ROOM SERVICES CONSISTENT WITH OUR CORE VALUES BY PROVIDING ACCESS TO COMPREHENSIVE, HIGH QUALITY, COMPASSIONATE AND EFFICIENT HEALTHCARE SERVICES. THE COMMUNITY SERVED BY THE HOSPITAL IS COMPOSED OF THE FOLLOWING LOCALES: TAUNTON, EAST TAUNTON, RAYNHAM, NORTH DIGHTON, DIGHTON, MIDDLEBORO, REHOBOTH, LAKEVILLE, BRIDGEWATER AND NORTON. DURING FY11, MORTON HOSPITAL HAD 52,343 EMERGENCY ROOM VISITS. 106863673 1 1 0 1 0 0 0 0 0 1 1 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 1 1 0 0 1 1 0 1 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 1 93 0 1330 1 0 0 0 0 0 0 0 0 X 27 26 1 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 MA X X RICHARD JEFFCOTE 5088287000 88 WASHINGTON STREET TAUNTON MA 02780 MICHAEL G BROUTSAS DDS 2.00 X 0 0 0 ORLANDO F DE ABREU 2.00 X 0 0 0 LOUISE A FREEMAN 2.00 X 0 0 0 DAVID T GAY 2.00 X 0 0 0 HENRY C GILL JR 2.00 X 0 0 0 HAROLD GOREN OD 2.00 X 0 0 0 A WERNER HORLBECK 2.00 X 0 0 0 JAMES P HOYE MD 2.00 X 0 0 0 E DENNIS KELLY JR 2.00 X 0 0 0 BARBARA LAFRANCE 2.00 X 0 0 0 DONALD L MCKINNON 2.00 X 0 0 0 ROBERT J MCNAMEE MD 2.00 X 0 0 0 JOSEPH I QUINN 2.00 X 0 0 0 LOUIS M RICCIARDI 2.00 X 0 0 0 EDWARD A ROSTER 2.00 X 0 0 0 VICTOR P SANTOS 2.00 X 0 0 0 MAUREEN SROCZYNSKI 2.00 X 0 0 0 DAVID A ST YVES 2.00 X 0 0 0 RICHARD H TAUS MD 2.00 X 0 0 0 CHARLES A THAYER MD 2.00 X 0 0 0 FRANK M TOMASE MD 2.00 X 0 0 0 TERRENCE GOMES ED D 2.00 X 0 0 0 MARK HICKEY 2.00 X 0 0 0 JEAN S SCARBOROUGH 2.00 X 0 0 0 KATHLEEN HOYE 2.00 X 0 0 0 DIANE COTE 2.00 X 0 0 0 MAUREEN A BRYANT 40.00 X 803042 0 15791 DONNA MAHER 40.00 X 199006 0 3103 SUSAN MANGINI 40.00 X 95110 0 315 ORLA M BRANDOS 40.00 X 164034 0 16133 RICHARD E JEFFCOTE 40.00 X 45885 0 503 HAROLD R LEMIEUX 40.00 X 137566 0 8413 MARK GRONBERG 40.00 X 156091 0 18765 LAWRENCE E SECK 40.00 X 369039 0 37787 1969773 0 100810 6 1 1 0 SE MASS MRI CONSORTIUM 153 WASHINGTON STREET BELMONT MA 02478 MRI SCANS 1672580 CENTER FOR WOUND HEALING INC 155 WHITE PLAINS ROAD TARRYTOWN NY 10591 MANAGEMENT SERVICES FOR WOUND CENTER. 944873 NEXIS HEALTHCARE 66 NORTH STREET SOUTH BOSTON MA 02127 PROFESS COMP - HOSPITALIST PROGRAM. 750190 HORIZON MENTAL HEALTH MANAGEMENT 1500 WATERS RIDGE DRIVE LOUISVILLE TX 75057 MANAGEMENT SERVICES FOR EBHS DEPARTMENT. 693864 SPECIALTY LABORATORIES INC PO BOX 54920 LOS ANGELES CA 90054 LAB SERVICES 666206 5 34075 112349 214506 360930 PATIENT SERVICE REVENU 900099 120570937 120570937 120570937 410623 410623 352846 352846 352846 352846 19871174 18693171 1178003 1178003 1178003 16096 34075 5947 10149 10149 SEMRI INCOME 900099 1123460 1123460 OTHER 900099 386139 386139 SPORTS MEDICINE INCOME 900099 143405 143405 1653004 124536492 122576787 0 1598775 2468476 2119188 349288 53211506 45682101 7529405 14298963 12275666 2023297 4027606 3457702 569904 126763 126763 193641 193641 669291 669291 165744 165744 308879 308879 1679873 1442172 237701 1054148 1054148 4249470 3648172 601298 494240 494240 PROGRAM SUPPLIES AND EX 33716760 33716760 PROFESSIONAL COMPENSATI 4521912 4521912 BAD DEBT EXPENSE 4467910 4467910 125655182 106863673 18791509 0 5464139 1065364 12210243 11712226 1417005 1699139 1448598 1778982 105684840 80952088 26094197 24732752 16900298 618348 3116028 1200000 1032927 250000 67683435 43056811 16245508 16456727 18889998 6531998 2727698 33464438 49187158 75131942 68371583 X -9962452 -25933062 2050802 155147 463143 463143 -7448507 -25314772 67683435 43056811 X -1118690 -16747575 X X 0 1 1 X 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 20003 20003 0 EXPLANATION OF OTHER LOBBYING ACTIVITIES: PART II-B, LINE 1I: LOBBYING ACTIVITY IS A PORTION OF DUES PAID TO MHA AND AHA ALONG WITH AMOUNTS PAID TO DENNIS SMITH & ASSOCIATES. 10565004 1290305 11392140 463169 9526929 1038075 10565004 9322325 204604 9526929 0.00000 1.00000 0.00000 0 1 1 2277182 2277182 42253307 34451304 7802003 3647459 3411331 236128 17315 17315 57489577 43089453 14400124 24732752 LONG-TERM PENSION LIABILITY 44560699 ESTIMATED SETTLEMENTS WITH THIRD PARTY PAYORS 4200370 ASSET RETIREMENT OBLIGATION 426089 49187158 124536492 125655182 -1118690 -16747575 -16747575 -17866265 123456217 593497 593497 122862720 1673772 1673772 124536492 125655182 0 125655182 0 125655182 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: THE HOSPITAL'S ENDOWMENT INCLUDES BOTH DONOR RESTRICTED ENDOWMENT FUNDS AND FUNDS DESIGNATED BY THE BOARD OF DIRECTORS TO FUNCTION AS ENDOWMENTS. THE INTENDED USE OF THE HOSPITAL'S ENDOWMENT FUNDS ARE DIRECTED IN ACCORDANCE WITH THE DONOR'S INTENT INCLUDING THE PRESERVATION OF THE ORIGINAL GIFT AND VARIOUS PURPOSES. PART XI, LINE 8 - OTHER ADJUSTMENTS: LOSS ON DEFEASANCE -2,373,347. RECORD PENSION LIABILITY -13,182,753. NET TRANSFERS TO AFFILIATES -1,145,437. TEMP RESTRICTED UNREALIZED GAINS ON INVESTMENTS -46,038. PART XII, LINE 2D - OTHER ADJUSTMENTS: NET ASSETS RELEASED 722,857. TEMP RESTRICTED REALIZED GAINS -129,360. PART XII, LINE 4B - OTHER ADJUSTMENTS: OTHER CONTRIBUTIONS 214,507. INVESTMENT INCOME 1,459,265. FIN 48 FOOTNOTE: NO PROVISION FOR FEDERAL INCOME TAXES HAS BEEN RECORDED IN THE ACCOMPANYING FINANCIAL STATEMENTS. IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, THE HOSPITAL ANNUALLY EVALUATES ITS TAX STATUS AND TAX POSITIONS TAKEN WITH RESPECT TO ITS OPERATIONS AND FINANCIAL POSITION. X X X X X MA GOLF TOURNAMENT 50171 34075 16096 3820 1934 193 50171 34075 16096 3820 1934 193 5947 10149 1 1 1 X 1 X 1 1 1 0 1 1 2186979 2186979 0.01740 4838008 4838008 0.03850 7024987 7024987 0.05590 445236 445236 0.00350 445236 445236 0.00350 7470223 7470223 0.05940 1 2372460 1124330 12992147 14010714 -1018567 X 1 1 1 SHIELDS MRI MRI SERVICES 0.25000 0.00000 0.00000 1 1 MORTON HOSPITAL AND MEDICAL CENTER INC

88 WASHINGTON STREET TAUNTON MA 02780

X X X EBHS, TCU, HOMECARE MORTON HOSPITAL AND MEDICAL CENTER INC 1 1 X X X X X X X X X 1 0 1 X 1 1 1 200.000000000000 1 200.000000000000 1 X 1 1 X PART I, L7 COL(F): THE HOSPITAL PROVIDES AN ALLOWANCE FOR DOUBTFUL ACCOUNTS EQUAL TO ESTIMATED BAD DEBT LOSSES. THE ESTIMATED LOSSES ARE BASED UPON HISTORICAL COLLECTION EXPERIENCE TOGETHER WITH A REVIEW OF THE CURRENT STATUS OF THE EXISTING RECEIVABLES. PART III, LINE 4: THE COSTING METHODOLOGY CONSISTS OF APPLYING A COST TO CHARGE RATIO TO THE RECORDED PROVISION FOR BAD DEBT AND CHARITY CARE REVENUES BASED ON A COST REPORT. PART III, LINE 8: THE COMPUTED SHORTFALL HAS NOT BEEN INCLUDED IN THE COMMUNITY BENEFIT. MORTON HOSPITAL AND MEDICAL CENTER, INC. PART V, SECTION B, LINE 3: THE ASSESSMENT RELIED HEAVILY ON THE PARTICIPATION OF A BROAD RANGE OF COMMUNITYSTAKEHOLDERS THROUGH A SERIES OF INTERVIEWS, STREET SURVEYS, WEB SURVEYS AND FOCUSGROUPS, PARTICIPANTS INCLUDED: PARENTS, PROFESSIONALS, COMMUNITY MEMBERS, ELDERS ANDYOUTH, EACH GROUP COMPLETED INTERVIEWS AND SURVEYS IN VARIOUS LOCATIONS, INCLUDINGCOUNCILS ON AGING, PARENT AND FAMILY ORGANIZATIONS, GROCERY STORES AND LIBRARIES. PART VI, LINE 2: MORTON HOSPITAL AND MEDICAL CENTER'S COMMUNITY BENEFITS MISSION STATEMENT AND THE GUIDING PHILOSOPHY OF OUR COMMUNITY INITIATIVES IS TO IMPROVE THE HEALTH STATUS OF THE COMMUNITY BY PROVIDING ACCESS TO COMPREHENSIVE, HIGH QUALITY, COMPASSIONATE AND EFFICIENT HEALTH SERVICES IN THE COMMUNITY SETTING. MORTON HOSPITAL IS RECOGNIZED BY THE DEPARTMENT OF HEALTH CARE FINANCING AND POLICY AS AN ESSENTIAL COMMUNITY PROVIDER AND RECEIVES FUNDING BASED ON THE HOSPITAL'S STATUS UNDER THE MASSACHUSETTS HEALTH SAFETY NET'S DESIGNATION OF A MEDICALLY-UNDERSERVED AREA. THROUGH CONTINUOUS ASSESSMENT OF UNMET COMMUNITY HEALTH NEEDS, PARTICIPATION ON LOCAL ACTION COMMITTEES AND FUNDING OF SEVERAL COMMUNITY-BASED HEALTH CARE INITIATIVES, THE HOSPITAL IS ABLE TO RESPOND TO LOW-INCOME, UNDER OR UNINSURED POPULATIONS, PROVIDING ACCESS TO COMPREHENSIVE CARE ACROSS CENTRAL SOUTHEASTERN MASSACHUSETTS - PRIMARILY TAUNTON, RAYNHAM, BERKLEY, DIGHTON, BRIDGEWATER, REHOBOTH, MIDDLEBORO, LAKEVILLE, CARVER, ASSONET, EAST FREETOWN AND NORTON. THE HOSPITAL SUBSIDIZES SUCH SERVICES AS NECESSARY WITHIN ITS FINANCIAL CAPABILITIES.THIS COMMUNITY BENEFITS PHILOSOPHY EXPANDS UPON THE MISSION OF MORTON HOSPITAL TO IDENTIFY AND ADDRESS COMMUNITY NEEDS, PARTICULARLY THOSE THAT AFFECT THE HEALTH AND WELLNESS OF RESIDENTS THROUGHOUT THE GREATER TAUNTON AREA. AIMING TO PROVIDE CULTURALLY-SENSITIVE, LINGUISTICALLY-APPROPRIATE, ACCESSIBLE HEALTH CARE SERVICES TO THE COMMUNITIES IT SERVES, MORTON HOSPITAL ENCOURAGES THE COMMUNITY TO ENGAGE IN HEALTHY LIFESTYLES, BE ACTIVE PARTICIPANTS IN THEIR HEALTH CARE, AND EDUCATE THEMSELVES OF THE RISKS ASSOCIATED WITH UNHEALTHY BEHAVIORS AND POOR LIFESTYLE CHOICES. THE HOSPITAL ALSO WORKS TO ADDRESS BARRIERS TO HEALTH CARE ACCESS AND MAINTAINS ADULT AND SCHOOL-BASED CLINICS IN THE COMMUNITY TO PROVIDE PRIMARY HEALTH CARE SERVICES TO UNDER-INSURED OR UNINSURED PEOPLE.THE HOSPITAL FOSTERS AN INTERNAL ENVIRONMENT THAT ENCOURAGES INVOLVEMENT IN COMMUNITY BENEFIT ACTIVITIES AND INCLUDES IN ITS MISSION AND GOALS THE DEVELOPMENT OF ORGANIZATION-WIDE CULTURAL DIVERSITY PROGRAMMING ADDRESSING THE CULTURAL NEEDS OF OUR COMMUNITY. PART VI, LINE 3: THE HOSPITAL EMPLOYS A FINANCIAL COUNSELOR WHO ASSISTS AND EDUCATES PATIENTS AND THEIR FAMILIES ON FINANCIAL MATTERS CONCERNING THE HOSPITAL CHARITY CARE POLICY AND ELIGIBILITY FOR STATE AND FEDERAL PROGRAMS. PART VI, LINE 4: MORTON HOSPITAL'S PRIMARY SERVICE AREA IS LOCATED IN CENTRAL SOUTHEASTERN MASSACHUSETTS, APPROXIMATELY 40 MILES SOUTH OF BOSTON, AND INCLUDES THE TOWNS OF: TAUNTON, EAST TAUNTON, RAYNHAM, MIDDLEBOROUGH, LAKEVILLE, DIGHTON, NORTH DIGHTON, AND BERKLEY. THE PRIMARY POPULATION SERVED IS (AGGREGATE ETHNICITY: 85% NON-HISPANIC WHITE; 5.2% HISPANIC/LATINO; 4.6% BLACK; 1.4% ASIAN; AND 3.8% OTHER). MEDIAN HOUSEHOLD INCOME FOR THE CITY OF TAUNTON IS ESTIMATED AT $55,607 (2009 DATA). REPORTS FILED WITH STATES PART VI, LINE 7 MA X X X X X X 0 1 0 0 0 0 0 0 0 MAUREEN A BRYANT 769146 0 0 0 33896 0 0 0 15791 0 818833 0 0 0 DONNA MAHER 175389 0 0 0 23617 0 0 0 3103 0 202109 0 0 0 SUSAN MANGINI 95110 0 0 0 0 0 0 0 315 0 95425 0 0 0 ORLA M BRANDOS 147186 0 0 0 16848 0 0 0 16133 0 180167 0 0 0 RICHARD E JEFFCOTE 45192 0 0 0 693 0 0 0 503 0 46388 0 0 0 HAROLD R LEMIEUX 134720 0 0 0 2846 0 0 0 8413 0 145979 0 0 0 MARK GRONBERG 139150 0 0 0 16941 0 0 0 18765 0 174856 0 0 0 LAWRENCE E SECK 364662 0 0 0 4377 0 16500 0 21287 0 406826 0 0 0 PART I, LINE 4B SINCE 1992, THE HOSPITAL HAS PROVIDED THE FORMER PRESIDENT OF THE HOSPITAL WITH SUPPLEMENTAL EXECUTIVE RETIREMENT BENEFITS THROUGH A SPLIT DOLLAR LIFE INSURANCE AGREEMENT. DURING 2008, THE HOSPITAL REVIEWED THE SUPPLEMENTAL EXECUTIVE RETIREMENT BENEFIT AGREEMENT AND DETERMINED THAT THE BENEFIT THAT WOULD HAVE BEEN PROVIDED FROM THIS PLAN WOULD NOT HAVE BEEN CONSISTENT WITH THE LEVEL OF RETIREMENT BENEFIT COMMONLY PROVIDED TO EXECUTIVES IN THE INDUSTRY. IN 2008, THE HOSPITAL RESTRUCTURED THIS SPLIT DOLLAR POLICY AGREEMENT AND CONVERTED IT TO A TRADITIONAL NON-QUALIFIED DEFERRED COMPENSATION PLAN THAT IS IN ACCORDANCE WITH INTERNAL REVENUE CODE SECTION 457(F) AND 409A. IN 2009, THE HOSPITAL PAID OFF THE RELATED LIABILITY. SUPPLEMENTAL INFORMATION PART III PART II, COLUMN (F): DEFERRED COMPENSATION - SINCE 1992, THE HOSPITAL HAS PROVIDED THE FORMER PRESIDENT OF THE HOSPITAL WITH SUPPLEMENTAL EXECUTIVE RETIREMENT BENEFITS THROUGH A SPLIT DOLLAR LIFE INSURANCE AGREEMENT. DURING 2008, THE HOSPITAL REVIEWED THE SUPPLEMENTAL EXECUTIVE RETIREMENT BENEFIT AGREEMENT AND DETERMINED THAT THE BENEFIT THAT WOULD HAVE BEEN PROVIDED FROM THIS PLAN WOULD NOT HAVE BEEN CONSISTENT WITH THE LEVEL OF RETIREMENT BENEFIT COMMONLY PROVIDED TO EXECUTIVES IN THE INDUSTRY. IN 2008, THE HOSPITAL RESTRUCTURED THIS SPLIT DOLLAR POLICY AGREEMENT AND CONVERTED IT TO A TRADITIONAL NON-QUALIFIED DEFERRED COMPENSATION PLAN THAT IS IN ACCORDANCE WITH INTERNAL REVENUE CODE SECTION 457(F) AND 409A. IN 2009, THE HOSPITAL PAID OFF THE RELATED LIABILITY. MASSACHUSETTS HEALTH AND EDUCATIONAL FACILITIES AUTHORITY 042456011 57586CAX3 2004-12-14 25250000 BONDS WERE ISSUED TO ADVANCE REFUND THE HOSPITAL'S SERIES B REVENUE BOND 1 1 0 25250000 25250000 1122890 0 1 1 1 0 0 0 0 1 1 0 0 0 0 0 0 CHARLES A THAYER MD BOARD MEMBER OF HOSPITAL 620608 THE ORGANIZATION RENTS OFFICE SPACE FROM ROCKYKNOLL ESTATES, INC, AN ENTITY OF THE THEODORE R. THAYER IRREVOCABLE TRUST, OF WHICH DR. THAYER IS A TRUSTEE. THE ORGANIZATION ALSO COMPENSATES MORTON SURGICAL, P.C. (DR THAYER'S PRACTICE) FOR GENERAL SURGICAL COVERAGE. 0 JAMES HOYE MD BOARD MEMBER OF HOSPITAL 137687 JAMES HOYE'S WIFE IS COMPENSATED FOR SERVING AS MEDICAL DIRECTOR OF HOME CARE. 0 BARRY SAPERIA MD BOARD MEMBER OF HOSPITAL 52000 COMPENSATION FOR SERVING AS PRESIDENT OF THE MEDICAL STAFF. 0 FRANK TOMASE MD BOARD MEMBER OF HOSPITAL 8000 COMPENSATION FOR SERVING AS DIRECTOR OF THE SCHOLL BASED HEALTH CLINIC. 0 FORM 990, PART VI, SECTION A, LINE 2 KATHLEEN AND JAMES HOYE ARE MEMBERS OF THE BOARD THAT ARE BROTHER AND SISTER IN-LAW. FORM 990, PART VI, SECTION A, LINE 6 MORTON HEALTH FOUNDATION IS THE SOLE MEMBER OF THE ORGANIZATION AND ELECTS THE BOARD OF DIRECTORS. THERE ARE NO CLASSES OF DIRECTORS. MORTON HEALTH FOUNDATION HAS THE POWER TO REMOVE DIRECTORS, TO FILL VACANCIES, AND TO INCREASE OR DECREASE THE SIZE OF THE BOARD. FORM 990, PART VI, SECTION A, LINE 7A MORTON HEALTH FOUNDATION IS THE SOLE MEMBER OF THE ORGANIZATION AND ELECTS THE BOARD OF DIRECTORS. THERE ARE NO CLASSES OF DIRECTORS. MORTON HEALTH FOUNDATION HAS THE POWER TO REMOVE DIRECTORS, TO FILL VACANCIES, AND TO INCREASE OR DECREASE THE SIZE OF THE BOARD. FORM 990, PART VI, SECTION A, LINE 7B MORTON HEALTH FOUNDATION IS THE SOLE MEMBER OF THE ORGANIZATION AND ELECTS THE BOARD OF DIRECTORS. THERE ARE NO CLASSES OF DIRECTORS. MORTON HEALTH FOUNDATION HAS THE POWER TO REMOVE DIRECTORS, TO FILL VACANCIES, AND TO INCREASE OR DECREASE THE SIZE OF THE BOARD. FORM 990, PART VI, SECTION B, LINE 11 THE ORGANIZATION PREPARES THE FORM 990 AND THE RELATED DISCLOSURES WITH ASSISTANCE AND GUIDANCE FROM ITS INDIVIDUAL TAX ADVISORS (CPA FIRM). THE FORM 990 IS REVIEWED BY MANAGEMENT PRIOR TO SUBMISSION TO THE BOARD OF DIRECTORS AND THE IRS. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION REQUIRES THAT ALL KEY EMPLOYEES, OFFICERS AND MEMBERS OF THE BOARD OF DIRECTORS AND ANY MEMBER OF ANY COMMITTEE TO DISCLOSE IN WRITING (AND UPDATE ANNUALLY) ALL BUSINESS AND OTHER RELATIONSHIPS WHICH MIGHT POTENTIALLY CREATE A CONFLICT OF INTEREST AS DEFINED BY THE POLICY. THE WRITTEN DISCLOSURE SHALL INCLUDE AN ITEMIZATION OF ANY SUBSTANTIVE CONFLICT OF INTEREST FOR SUCH INDIVIDUAL BY VIRTUE OF HIS OR HER ACTIVITIES. THE CONFLICT OF INTEREST POLICY IS REVIEWED AND COMMUNICATED TO ENSURE INDIVIDUALS WITH OUTSIDE RELATIONSHIPS DO NOT INAPPROPRIATELY PARTICIPATE IN BUSINESS DECISIONS OF THE ORGANIZATION IN WHICH THEY ARE NOT INDEPENDENT. FORM 990, PART VI, SECTION B, LINE 15 ALL COMPENSATION FOR THE CEO AND SENIOR EXECUTIVES THROUGHOUT THE ORGANIZATION ARE GOVERNED AND OVERSEEN BY THE BOARD OF DIRECTORS. THE BOARD ESTABLISHED A COMPENSATION COMMITTEE, MADE UP OF INDEPENDENT TRUSTEES, WHO ARE GIVEN THE AUTHORITY TO ESTABLISH COMPENSATION FOR ALL SENIOR EXECUTIVES. THE COMPENSATION COMMITTEE PERFORMS ANNUAL REVIEWS AND APPROVES EXECUTIVE COMPENSATION. IN ORDER TO ASSIST THE COMMITTEE IN ITS RESPONSIBILITIES, THE COMPENSATION COMMITTEE HIRES INDEPENDENT, OUTSIDE COMPENSATION CONSULTANTS TO ADVISE THE COMMITTEE ON THE REASONABLENESS OF THE OVERALL EXECUTIVE COMPENSATION. THE COMMITTEE WORKS WITH THESE CONSULTANTS TO ENSURE THAT ALL COMPENSATION IS REASONABLE, MEETS ALL REGULATORY REQUIREMENTS AND IS COMPETITIVE WITHIN THE RELEVANT MARKET. FORM 990, PART VI, SECTION C, LINE 18 THE ORGANIZATION MAKES ITS FORM 990 AVAILABLE TO THE PUBLIC UPON REQUEST. ADDITIONALLY, THE ORGANIZATION'S FORM 990 IS AVAILABLE ON THE PUBLIC CHARITIES WEBSITE MAINTAINED BY THE COMMONWEALTH OF MASSACHUSETTS ATTORNEY GENERAL. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. ADDITIONALLY, THE ORGANIZATION'S FINANCIAL STATEMENTS ARE AVAILABLE ON THE PUBLIC CHARITIES WEBSITE MAINTAINED BY THE COMMONWEALTH OF MASSACHUSETTS ATTORNEY GENERAL. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: TRANSFER TO AFFILIATES -1,145,437. PERIODIC PENSION COST -13,182,753. TEMP RESTRICTED UNREALIZED GAINS -46,038. LOSS ON DEFEASANCE OF DEBT -2,373,347. TOTAL TO FORM 990, PART XI, LINE 5: -16,747,575. THE ORGANIZATION'S FINANCIAL STATEMENTS WERE AUDITED BY AN INDEPENDENT ACCOUNTING FIRM. THE ORGANIZATION HAS AN AUDIT COMMITTEE RESPONSIBLE FOR OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AS WELL AS THE SELECTION OF AN INDEPENDENT ACCOUNTING FIRM. ON MARCH 29, 2011, THE HOSPITAL TOGETHER WITH CERTAIN OF ITS AFFILIATES ENTERED INTO AN ASSET PURCHASE AGREEMENT WITH STEWARD MEDICAL HOLDINGS SUBSIDIARY THREE, INC. (STEWARD), PURSUANT TO WHICH THE HOSPITAL AGREED TO SELL AND ASSIGN SUBSTANTIALLY ALL OF ITS BUSINESS, ASSETS, AND OPERATIONS TO STEWARD AND/OR ITS DESIGNATED AFFILIATES. THE CLOSING OF THE TRANSACTION SET FORTH IN THE ASSET PURCHASE AGREEMENT (THE TRANSACTION) WAS EFFECTIVE OCTOBER 1, 2011. AS PART OF THE TRANSACTION, ALL OF THE HOSPITALS INVESTMENTS, EXCEPT THOSE IN ITS SELF-INSURANCE DEPOSIT AND CERTAIN RESTRICTED INVESTMENTS, WERE EITHER LIQUIDATED OR PLACED IN ESCROW IN ORDER TO REPAY OR DEFEASE ITS DEBT OBLIGATIONS UNDER THE MHEFA REVENUE BONDS, AND SUBSTANTIALLY ALL OF ITS OTHER DEBT, EXCEPT FOR CERTAIN CAPITAL LEASES AND BANK MORTGAGES, WAS EITHER REPAID OR ASSUMED BY THE ESCROW AGENT FOR FUTURE LIQUIDATION (NOTE 13). THE HOSPITAL, INCURRED EXPENSES OF APPROXIMATELY $2,160,000 RELATED TO THE TRANSACTION. PURSUANT TO THE TRANSACTION, THE HOSPITAL TRANSFERRED ALL OF ITS NET ASSETS, ALONG WITH NET ASSETS OF MP AND MPA EFFECTIVE OCTOBER 1, 2011, INCLUDING ITS NET UNFUNDED OBLIGATIONS UNDER THE MORTON HOSPITAL EMPLOYEES PENSION PLAN, VALUED AT $46,641,104 IN THE ACCOMPANYING FINANCIAL STATEMENT. IN ADDITION, STEWARD AGREED TO THE FOLLOWING: - A PENSION TRANSFER AGREEMENT, UNDER WHICH STEWARD AGREED TO ASSUME THE NET UNFUNDED OBLIGATIONS OF THE MORTON HOSPITAL EMPLOYEES PENSION PLAN WITH RESPECT TO ITS CURRENT AND FORMER EMPLOYEES, EFFECTIVE ON THE CLOSING DATE OF THE TRANSACTION, ESTIMATED AT $46,641,104. - AGGREGATE CAPITAL EXPENDITURES FOR STEWARD AND ITS WHOLLY-OWNED SUBSIDIARIES OF $85 MILLION OVER THE FIVE-YEAR PERIOD FOLLOWING THE TRANSACTION AND A MAXIMUM OF $35 MILLION DURING YEARS SIX (6) THROUGH TEN (10). - OTHER COMMITMENTS AND OPERATING RESTRICTIONS AS IMPOSED BY THE MASSACHUSETTS ATTORNEY GENERAL AND THE MASSACHUSETTS DEPARTMENT OF PUBLIC HEALTH. DIRECTOR'S COMPENSATION FORM 990, PART VII DR. SAPERIA IS NOT COMPENSATED FOR HIS ROLE AS A BOARD MEMBER HE IS COMPENSATED WITH A 1099 FOR ORTHO COVERAGE AS WELL AS FOR SERVING AS THE PRESIDENT OF THE MEDICAL STAFF. MORTON HEALTH FOUNDATION INC 88 WASHINGTON STREET TAUNTON MA 02780 042103605 PARENT CORPORATION WHICH MANAGES ENDOWMENT FUNDS MA 501 (C)(3) SUPPORTING - TYPE 3 0 MORTON PHYSICIAN ASSOCIATES INC 88 WASHINGTON STREET TAUNTON MA 02780 043288841 PROVIDE COMPREHENSIVE/COMPASSIONATE HEALTHCARE TO THE COMMUNITY MA 501 (C)(3) SUPPORTING - TYPE 3 MORTON HEALTH FOUNDATION INC 0 MORTON HOSPITAL AUXILIARY INC 88 WASHINGTON STREET TAUNTON MA 02780 042789935 FUND RAISING FOR THE BENEFIT OF MORTON HOSPITAL AND MEDICAL CENTER MA 501 (C)(3) SUPPORTING - TYPE 3 MORTON HEALTH FOUNDATION INC 0 COMMUNITY COUNSELING OF BRISTOL COUNTY INC 1 WASHINGTON STREET TAUNTON MA 02780 043035697 PROVIDE MENTAL HEALTH ASSESSMENT AND TREATMENT TO CLIENTS MA 501 (C)(3) SUPPORTED ORG MORTON HEALTH FOUNDATION INC 0 MORTON PROPERTY INC 88 WASHINGTON STREET TAUNTION MA 02780 042810927 LEASING OF REAL ESTATE FOR MEDICAL PURPOSES MA MORTON HEALTH FOUNDATION INC C 0 1 0 1 0 0 0 0 1 1 0 0 1 1 1 1 0 1 MORTON PHYSICIAN ASSOCIATES INC D 1834231 FINANCIAL STATEMENT BALANCE MORTON HOSPITAL AUXILIARY INC R 14923 FINANCIAL STATEMENT BALANCE MORTON PHYSICIAN ASSOCIATES INC I 84092 FINANCIAL STATEMENT BALANCE MORTON PROPERTY INC J 494122 FINANCIAL STATEMENT BALANCE