2012-05-09T15:54:51-05:00 2011-06-30 KPMG LLP 440 Monticello Ave Suite 1900 Norfolk VA 235102674 990 2010-07-01 522087445 MedStar Health Inc MEDS 4107726719 5565 Sterrett Place 5th Floor Columbia MD 21044 Marc R Berger 4107726719 2012-05-07 true 7576167000 2010 2016-02-24 21:20:13Z KENNETH A SAMET 5565 STERRETT PLACE 5TH FLOOR COLUMBIA MD 21044 62513331 false X www.medstarhealth.org X 1998 MD PLAN, DEVELOP, COORDINATE, DIRECT AND MANAGE AN INTEGRATED HEALTHCARE SYSTEM. 18 13 255 12 26497 0 1025744 395622 18850931 26225979 11822623 35011938 1372231 879792 33071529 62513331 0 0 0 0 36315938 41089572 0 0 0 22262881 28337201 58578819 69426773 -25507290 -6913442 1362506894 1508495983 1297723562 1259963842 64783332 248532141 X THE MISSION OF MEDSTAR HEALTH IS TO SERVE OUR PATIENTS, THOSE WHO CARE FOR THEM, AND OUR COMMUNITIES. FOR MORE INFORMATION, SEE SCHEDULE O. false false 69426773 0 26225979 AS THE PARENT COMPANY IN AN INTEGRATED HEALTHCARE SYSTEM, MEDSTAR HEALTH, INC. ESTABLISHES THE STRATEGIC DIRECTION FOR ITS AFFILIATED ENTITIES. MEDSTAR HEALTH'S SOLE PROGRAM SERVICE IS THE MANAGEMENT AND SUPPORT OF ITS AFFILIATED ENTITIES. THE PROGRAM SERVICE EXPENSES INCURRED BY THE ORGANIZATION RELATE TO CORPORATE SERVICE FUNCTIONS IN THE FOLLOWING AREAS: FINANCIAL SERVICES, HUMAN RESOURCE SERVICES, TREASURY SERVICES, INFORMATION SYSTEMS, LEGAL SERVICES, RISK MANAGEMENT, COMPLIANCE, PRIVACY, BUSINESS AND SYSTEM DEVELOPMENT, PLANNING, MARKETING, EXTERNAL AFFAIRS, PHILANTHROPY SERVICES, MANAGED CARE, INTERNAL AUDIT, COMMUNITY HEALTH, GRADUATE MEDICAL EDUCATION AND ACADEMIC AFFAIRS. 69426773 true false false true false false false false false true true false true true true false true false false false false false false false false false false false true true false false false false false false false false false true false false false false true true true true false false true 249 0 true 255 true true true true CJ false false false false false false false false false X 18 13 true false false false false false false true true false false true true true true true true true true false MD X MARC BERGER 4107726719 5565 STERRETT PLACE 5TH FLOOR COLUMBIA MD 21044 X KENNETH SAMET 40.0 X X 3125094 0 132265 CHANDRALEKHA BANERJEE MD 1.0 X 0 0 0 ANDREW J BERRY 1.0 X 0 0 0 STEPHEN D HARLAN 1.0 X 0 0 0 EDWARD S CIVERA 1.0 X 0 0 0 JOHN J DEGIOIA PHD 1.0 X 0 0 0 DONOVAN DIETRICK MD 1.0 X 0 265268 18877 MARC N DUBER 1.0 X 0 0 0 BARBARA R HELLER EDD RN FAAN 1.0 X 0 0 0 MARK T JENSEN 1.0 X 0 0 0 JOHN R KIRKPATRICK MD 1.0 X 0 357962 32672 ROBERTA LOKER 1.0 X 0 0 0 CATHERINE A MELOY 1.0 X 0 0 0 WILLIAM J OETGEN JR MD MBA 1.0 X 0 0 0 WILLIAM R ROBERTS 1.0 X 0 0 0 SARA WATKINS 1.0 X 0 0 0 TOGO D WEST JR 1.0 X 0 0 0 STUART SEIDES MD 1.0 X 0 0 0 EDWARD J BRODY 1.0 X 0 0 0 E F SHAW WILGIS MD 1.0 X 0 0 0 CHARLES T NASON 1.0 X 0 0 0 F DONALD COONEY MD 1.0 X 0 0 0 MICHAEL CURRAN 40.0 X 1724267 0 40536 WILLIAM THOMAS MD 40.0 X 1967268 0 107732 JOY DRASS MD 40.0 X 1247987 0 35303 CARL SCHINDELAR 40.0 X 1060335 0 38378 OLIVER JOHNSON 40.0 X 713000 0 12732 ERIC WAGNER 40.0 X 864727 0 31827 CHRISTINE SWEARINGEN 40.0 X 700122 0 39904 CATHERINE SZENCZY 40.0 X 670055 0 23954 DAVID NOE 40.0 X 444047 0 18207 BRUCE BARTOO 40.0 X 441997 0 14086 JOEL BRYAN 40.0 X 407344 0 20527 LARRY SMITH 40.0 X 381878 0 19394 SUSAN NELSON 40.0 X 386815 0 27804 STEVEN COHEN 40.0 X 567124 0 25765 14702060 623230 639963 91 true true false MARSH MCLENNAN INC PO BOX 14834 14834 COLLECTIONS CTR CHICAGO IL 60693 CONSULTING 5166235 KPMG LLP DEPT 0939 PO BOX 120001 DALLAS TX 753120939 ACCOUNTING SERVICES 2067665 TOWERS WATSON DELAWARE INC PO BOX 277665 ATLANTA GA 303847665 CONSULTING 1839666 BRAULT GRAHAM SCOTT BRAULT 101 SOUTH WASHINGTON STREET ROCKVILLE MD 20850 LEGAL SERVICES 1092479 TOBIN O'CONNOR EWING 5335 WISCONSIN AVENUE NW WASHINGTON DC 20015 LEGAL SERVICES 1011443 30 395622 395622 GREENSPRING FEE 900099 23666255 23666255 TRAINING TUITION INCOME 900099 2500000 2500000 RISK CONTRACTING SERVICE 900099 1000000 1000000 PHARMACY REVENUE 900099 349 349 NET PATIENT SERVICE REVENUE 900099 -940625 -940625 26225979 23092402 26497 23065905 0 0 11918832 704 11918832 704 11919536 11919536 0 0 0 OTHER INCOME 900099 879792 879792 879792 62513331 26225979 26497 35865233 0 0 0 0 12535486 12535486 0 17283579 17283579 6244166 6244166 3535464 3535464 1490877 1490877 0 961230 961230 1639399 1639399 0 0 0 14018474 14018474 1728523 1728523 765372 765372 171155 171155 0 1498513 1498513 459886 459886 0 1248275 1248275 933885 933885 0 787707 787707 0 FOOD SERVICE/SUPPLY 149474 149474 BAD DEBT -999920 -999920 MISCELLANEOUS 4975228 4975228 69426773 69426773 0 0 398150486 404759798 511404 10660384 21580 240565 951400 405425 12313673 8977390 4094796 3336283 870092603 1007327688 88684625 81765840 1362506894 1508495983 52807181 57438854 709817 647817 1008917844 841039379 155000000 235288720 205837792 1297723562 1259963842 X 63057754 246469372 1725578 2062769 64783332 248532141 1362506894 1508495983 X -6913442 190662251 X false true true X false X X false false false THE GOOD SAMARITAN HOSPITAL OF MARYLAND INC 520591607 03 true 0 THE UNION MEMORIAL HOSPITAL 520591685 03 true 0 MEDSTAR-GEORGETOWN MEDICAL CENTER INC 522218584 03 true 0 FRANKLIN SQUARE HOSPITAL CENTER INC 520608007 03 true 0 HARBOR HOSPITAL INC 520491660 03 true 0 WASHINGTON HOSPITAL CENTER CORPORATION 521272129 03 true 0 NATIONAL REHABILITATION HOSPITAL INC 521369749 03 true 0 MEDSTAR HEALTH RESEARCH INSTITUTE INC 526056274 04 true 0 MEDSTAR HEALTH VISITING NURSES ASSOCIATION INC 530196597 09 true 0 MONTGOMERY GENERAL HOSPITAL INC 520646893 03 true 0 ST MARY'S HOSPITAL OF ST MARY'S COUNTY INC 520619006 03 true 0 11 0 false true false false false false false false true 668449 668449 false Other Activities Part IV, Supplemental Information The expenses incurred by the organization for lobbying activities reflects the total expenditures for lobbying efforts on behalf of all subsidiaries and affiliates. These expenses included a portion of the compensation expense for several employees in the government affairs department of the organization who are involved in lobbying activities as well as the amounts paid to outside advocacy and consulting groups for their lobbying activities on behalf of the organization. The lobbying work related to healthcare policy issues at the federal level as well as work in Maryland and the District of Columbia. Among the policy issues encompassed by the organization's lobbying efforts were health care coverage for the uninsured and under-insured, emergency preparedness, reimbursement policies, employment practices, health reform, and other key issues. 1164963 1164963 20952 7810 13142 3349511 2490131 859380 6134502 4901404 1233098 1643745 1578045 65700 3336283 PNC POOL AND OTHER UNR. FUNDS 585802678 F INVESTMENT IN AFFILIATES 361181122 F BOARD DESIGNATED/OTHER RESTR. 45589627 F MARKETABLE INVESTMENTS 14754261 F 1007327688 DEFERRED TAX ASSET 21351519 DEBT SERVICE L/T 12796579 DEFERRED FINANCING COST 12718581 INTERCOMPANY RECEIVABLES 9866469 OPTION IT ASSET 8904795 DEFERRED COMPENSATION ASSET 4089189 CASH SURRENDER VALUE - INS 1804612 WORKERS COMP FUNDS 866500 OTHER ASSETS 9367596 81765840 0 PENSION LIABILITY L/T 137808695 L/T LIABILITY - SWAP 15021645 PROFESSIONAL LIABILITY IBNR 10791051 STOCK OPTION PLAN 7411997 DEFERRED COMPENSATION 4089189 WORKERS COMP 1281941 OTHER LIABILITIES 29433274 205837792 FIN 48 FOOTNOTE SCHEDULE D, PART X INCOME TAXES ARE ACCOUNTED FOR UNDER THE ASSET AND LIABILITY METHOD. DEFERRED TAX ASSETS AND LIABILITIES ARE RECOGNIZED FOR THE FUTURE TAX CONSEQUENCES ATTRIBUTABLE TO DIFFERENCES BETWEEN THE FINANCIAL STATEMENT CARRYING AMOUNTS OF EXISTING ASSETS AND LIABILITIES AND THEIR RESPECTIVE TAX BASES AND OPERATING LOSS AND TAX CREDIT CARRYFORWARDS. DEFERRED TAX ASSETS AND LIABILITIES ARE MEASURED USING ENACTED TAX RATES EXPECTED TO APPLY TO TAXABLE INCOME IN THE YEARS IN WHICH THOSE TEMPORARY DIFFERENCES ARE EXPECTED TO BE RECOVERED OR SETTLED. THE EFFECT ON DEFERRED TAX ASSETS AND LIABILITIES OF A CHANGE IN TAX RATES IS RECOGNIZED IN THE PERIOD THAT INCLUDES THE ENACTMENT DATE. ANY CHANGES TO THE VALUATION ALLOWANCE ON THE DEFERRED TAX ASSET ARE REFLECTED IN TH YEAR OF CHANGE. THE CORPORATION ACCOUNTS FOR UNCERTAIN TAX POSITIONS IN ACCORDANCE WITH THE FASB ACCOUNTING STANDARDS CODIFICATION (ASC) TOPIC 740, INCOME TAXES. THERE WAS NO LIABILITY RECORDED FOR UNCERTAIN TAX POSITIONS AS OF JUNE 30, 2011. X X X false true X X X X X X true true false false false false false false false KENNETH SAMET 1180163 0 1354791 0 590140 0 112797 0 19468 0 3257359 0 0 0 MICHAEL CURRAN 761842 0 664529 0 297896 0 22523 0 18013 0 1764803 0 0 0 WILLIAM THOMAS MD 587971 0 502773 0 876524 0 87316 0 20416 0 2075000 0 0 0 JOY DRASS MD 681636 0 566351 0 0 0 16263 0 19040 0 1283290 0 0 0 CARL SCHINDELAR 577942 0 482393 0 0 0 19315 0 19063 0 1098713 0 0 0 OLIVER JOHNSON 303016 0 359369 0 50615 0 0 0 12732 0 725732 0 0 0 STEVEN COHEN 64004 0 186255 0 316865 0 17949 0 7816 0 592889 0 0 0 ERIC WAGNER 475544 0 389183 0 0 0 13766 0 18061 0 896554 0 0 0 CATHERINE SZENCZY 394168 0 275887 0 0 0 12250 0 11704 0 694009 0 0 0 CHRISTINE SWEARINGEN 395256 0 304866 0 0 0 23395 0 16509 0 740026 0 0 0 DAVID NOE 300411 0 131101 0 12535 0 6896 0 11311 0 462254 0 0 0 BRUCE BARTOO 291707 0 104258 0 46032 0 0 0 14086 0 456083 0 0 0 JOEL BRYAN 280845 0 126499 0 0 0 5235 0 15292 0 427871 0 0 0 LARRY SMITH 270684 0 111194 0 0 0 5649 0 13745 0 401272 0 0 0 SUSAN NELSON 265023 0 121792 0 0 0 12250 0 15554 0 414619 0 0 0 DONOVAN DIETRICK MD 0 258268 0 7000 0 0 0 4111 0 14766 0 284145 0 0 JOHN R KIRKPATRICK MD 0 91295 0 0 0 266667 0 27688 0 4984 0 390634 0 0 SOCIAL CLUB DUES SCHEDULE J, PART I, LINE 1A THE ORGANIZATION PAID SOCIAL CLUB DUES FOR THREE OF ITS OFFICERS DURING THIS YEAR. PARTICIPATION IN THESE ACTIVITIES BY THE OFFICERS WAS FOR BUSINESS PURPOSES, AND HELPED THE ORGANIZATION FURTHER ITS EXEMPT PURPOSES. TEMPORARY HOUSING ALLOWANCE AND GROSS-UP PAYMENTS SCHEDULE J, PART I, LINE 1A ONE OFFICER OF THE ORGANIZATION, OLIVER JOHNSON, AND ONE HIGHEST COMPENSATED EMPLOYEE, BRUCE BARTOO, EACH RECEIVED A REIMBUSEMENT PAYMENT RELATED TO TEMPORARY HOUSING EXPENSES INCURRED WHILE RELOCATING TO THEIR NEW POSITIONS WITH THE ORGANIZATION. THE REIMBURSEMENT PAYMENTS WERE GROSSED-UP FOR INCOME TAX PURPOSES. THE TOTAL AMOUNT OF THE PAYMENTS RECEIVED BY EACH INDIVIDUAL WAS TREATED AS TAXABLE COMPENSATION. OTHER REPORTABLE COMPENSATION SCHEDULE J, PART I, LINES 4A AND 4B KENNETH SAMET KENNETH SAMET'S OTHER REPORTABLE COMPENSATION IN PART II, COLUMN (B) (III) INCLUDES $568,506 REPRESENTING MR. SAMET'S ACCRUED BENEFIT IN A SUPPLEMENTAL RETIREMENT PLAN, WHICH WAS EARNED DURING THE PAST 22 YEARS OF SERVICE. THIS AMOUNT WAS NOT ACTUALLY PAID TO MR. SAMET, BUT WAS REPORTED AS COMPENSATION UNDER FICA TAX-REPORTING RULES. MICHAEL CURRAN MICHAEL CURRAN'S OTHER REPORTABLE COMPENSATION IN PART II, COLUMN (B) (III) INCLUDES $297,896 REPRESENTING MR. CURRAN'S ACCRUED BENEFIT IN A SUPPLEMENTAL RETIREMENT PLAN, WHICH WAS EARNED DURING THE PAST 10 YEARS OF SERVICE. THIS AMOUNT WAS NOT ACTUALLY PAID TO MR. CURRAN, BUT WAS REPORTED AS COMPENSATION UNDER FICA TAX-REPORTING RULES. WILLIAM THOMAS WILLIAM THOMAS' OTHER REPORTABLE COMPENSATION IN PART II, COLUMN (B) (III) INCLUDES $235,751 REPRESENTING DR. THOMAS' ACCRUED BENEFIT IN A SUPPLEMENTAL RETIREMENT PLAN, WHICH WAS EARNED DURING THE PAST 16 YEARS OF SERVICE. THIS AMOUNT WAS NOT ACTUALLY PAID TO DR. THOMAS, BUT WAS REPORTED AS COMPENSATION UNDER FICA TAX-REPORTING RULES. IN ADDITION, OTHER REPORTABLE COMPENSATION INCLUDES $640,773 RELATING TO INCOME REALIZED IN THE CURRENT YEAR ON THE APPRECIATION OF CERTAIN INVESTMENTS THAT WERE GRANTED TO DR. THOMAS IN PRIOR YEARS AND WHICH RELATED TO SERVICES PERFORMED IN PRIOR YEARS. STEVEN COHEN STEVEN COHEN'S OTHER REPORTABLE COMPENSATION IN PART II, COLUMN (B) (III) INCLUDES $62,707 REPRESENTING THE AMOUNT OF SEVERANCE PAYMENTS RECEIVED BY MR. COHEN. IN ADDITION, PART II, COLUMN (B) (III) INCLUDES $157,981 RELATING TO INCOME REALIZED IN THE CURRENT YEAR ON THE APPRECIATION OF CERTAIN INVESTMENTS THAT WERE GRANTED TO MR. COHEN IN PRIOR YEARS AND WHICH RELATED TO SERVICES PERFORMED IN PRIOR YEARS. JOHN R KIRKPATRICK JOHN R KIRKPATRICK'S OTHER REPORTABLE COMPENSATION IN PART II, COLUMN (B) (III) INCLUDES $266,267 RECEIVED BY DR. KIRKPATRICK FROM A NONQUALIFIED SUPPLEMENTAL RETIREMENT PLAN. MARYLAND HEALTH AND HIGHER EDUCATIONAL FACILITIES 520936091 574217MW2 2004-02-03 168903885 ADVANCE REFUND BONDS ISSUED 2001 false false false MARYLAND HEALTH AND HIGHER EDUCATIONAL FACILITIES 520936091 574217C60 2007-01-31 148551201 CONSTRUCT FRANKLIN SQ. HOSPITAL TO false false false DISTRICT OF COLUMBIA 536001131 2548393Y7 2008-05-15 283137423 CURRENT REFUND BONDS ISSUED 1998 false false false 7025000 0 168903885 188821 0 166098335 2616729 0 0 0 0 0 2001 false true true true 0 0 148551201 0 0 0 1801484 0 0 146749717 0 0 2010 false false true true 14200000 0 283137423 0 0 283137423 0 0 0 0 0 0 1998 true false true true false false false false true 0.00000 0.00000 0.00000 true true false false false false false false false false false false false false true false false false false GEORGETOWN UNIVERSITY SEE PART V 2331421 VARIOUS SERVICES false VERIZON ON MARYLAND SEE PART V 6600000 TELECOMMUNICATION SERVICES false BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS SCHEDULE L, PART IV DR. JOHN DEGIOIA, A BOARD MEMBER OF MEDSTAR HEALTH, IS PRESIDENT AND CEO OF GEORGETOWN UNIVERSITY. SINCE JUNE 2000, GEORGETOWN UNIVERSITY AND MEDSTAR HEALTH, INC. HAVE MAINTAINED A CLINICAL PARTNERSHIP AGREEMENT WHEREBY MEDSTAR HEALTH OWNS AND OPERATES MEDSTAR GEORGETOWN UNIVERSITY HOSPITAL'S CLINICAL ENTERPRISE, AND THE PARTIES PURCHASE VARIOUS SERVICES FROM ONE ANOTHER PURSUANT TO THIS AFFILIATION. THE NET AMOUNT PAID BY GEORGETOWN UNIVERSITY TO MEDSTAR HEALTH AND ITS AFFILIATED BUSINESSES FOR THE YEAR WAS APPROXIMATELY $2.3 MILLION. WILLIAM R. ROBERTS WAS PRESIDENT OF VERIZON OF MARYLAND. MEDSTAR HEALTH AND ITS AFFILIATED BUSINESSES SPENT APPROXIMATELY $6.6 MILLION ON TELECOMMUNICATIONS SERVICES PROVIDED BY VERIZON IN FISCAL 2011. ORGANIZATION'S MISSION PART III, LINE 1 MEDSTAR HEALTH IS A REGIONAL HEALTHCARE SYSTEM THAT INCLUDES NINE HOSPITALS, PROVIDING HEALTHCARE SERVICES IN MARYLAND AND THE WASHINGTON, D.C. REGION. IT IS THE AREA'S LARGEST HEALTH SYSTEM AND ONE OF THE REGION'S LARGEST EMPLOYERS, WITH MORE THAN 27,000 ASSOCIATES AND 5,300 AFFILIATED PHYSICIANS. THROUGH ITS HOSPITALS AND OTHER HEALTH SERVICES AFFILIATES, THE SYSTEM OFFERS A BROAD CONTINUUM OF HEALTHCARE SERVICES INCLUDING ACUTE CARE (SECONDARY, TERTIARY AND QUATERNARY), PRIMARY CARE, EMERGENCY/URGENT CARE, REHABILITATION (HOSPITAL-BASED AND OUTPATIENT), POST-ACUTE CARE, AMBULATORY SURGERY, HOME CARE, ADULT DAY CARE, HEALTH PROMOTION AND WELLNESS, AND MEDICAL RESEARCH AND EDUCATION. THE SYSTEM ALSO INCLUDES THE LARGEST HOME HEALTH BUSINESS IN THE REGION AND INCLUDES A MEDICAID MANAGED CARE COMPANY WITH APPROXIMATELY 29,000 COVERED LIVES. THE SYSTEM OFFERS SPECIALIZED SERVICES THAT INCLUDE CARDIAC SURGERY, NEUROLOGY, ORGAN TRANSPLANTATION, NEONATAL INTENSIVE CARE, CANCER CARE, SHOCK/TRAUMA, BURN CARE AND HAND SURGERY. THE SYSTEM'S PHYSICIAN NETWORK INCLUDES APPROXIMATELY 1,100 FULL AND PART-TIME EMPLOYED PHYSICIANS. MEDSTAR HEALTH RESEARCH INSTITUTE (MHRI) IS THE RESEARCH ARM FOR MEDSTAR, PROVIDING SCIENTIFIC, ADMINISTRATIVE, AND REGULATORY SUPPORT FOR RESEARCH PROGRAMS THAT COMPLEMENT THE KEY CLINICAL SERVICES AND TEACHING PROGRAMS IN ALL HOSPITALS IN THE SYSTEM. MEDSTAR HEALTH HAS ONE OF THE LARGEST GRADUATE MEDICAL EDUCATION PROGRAMS IN THE COUNTRY, TRAINING MORE THAN 1,100 MEDICAL RESIDENTS ANNUALLY, AND IS THE MEDICAL EDUCATION AND CLINICAL PARTNER OF GEORGETOWN UNIVERSITY. IN FISCAL YEAR 2011, MEDSTAR HEALTH'S HOSPITALS HAD 144,805 INPATIENT ADMISSIONS, 1,871,748 OUTPATIENT VISITS, AND 497,167 EMERGENCY VISITS. FAMILY/BUSINESS RELATIONSHIP PART VI, LINE 2 KENNETH SAMET AND EDWARD CIVERA BOTH SERVE ON THE BOARD OF AN UNRELATED CORPORATION. THE UNRELATED CORPORATION DOES NOT TRANSACT ANY BUSINESS WITH MEDSTAR HEALTH. KENNETH SAMET AND MARC DUBER BOTH SERVE ON THE BOARD OF AN UNRELATED CORPORATION. THE UNRELATED CORPORATION DOES NOT TRANSACT ANY BUSINESS WITH MEDSTAR HEALTH. PROCESS FOR REVIEWING FORM 990 PART VI, LINE 11A THE PROCESS FOR REVIEWING THE FORM 990 INCLUDED EDUCATION AND TRANSPARENCY. SENIOR FINANCIAL EXECUTIVES, WORKING WITH INDEPENDENT OUTSIDE EXPERTS, THOROUGHLY REVIEWED FORM 990 AND ACCOMPANYING INSTRUCTIONS. IN ADDITION, SENIOR EXECUTIVES REVIEWED THE RELEVANT SECTIONS OF THE FORM 990 WITH THE FOLLOWING COMMITTEES OF THE ORGANIZATION'S GOVERNING BODY: FINANCE, AUDIT, GOVERNANCE, STRATEGIC PLANNING, AND EXECUTIVE COMPENSATION. FOLLOWING THESE MEETINGS, THE GOVERNING BODY WAS PROVIDED A COPY OF THE FORM 990 IN ITS FINAL FORM AND GIVEN AN OPPORTUNITY TO PROVIDE ANY INPUT OR COMMENTS RELATING TO THE FORM 990 PRIOR TO ITS FILING. CONFLICT OF INTEREST PART VI, LINE 12C APPOINTMENT OF BOARDS OF DIRECTORS MEDSTAR HEALTH (AND ITS SUBSIDIARIES) REQUIRE ALL NOMINATED DIRECTORS, PRIOR TO THEIR APPOINTMENT OR ELECTION, TO DISCLOSE THE EXISTENCE OF (OR POTENTIAL EXISTENCE OF) ANY TRANSACTION WITH MEDSTAR THAT WOULD RESULT IN A CONFLICT OF INTEREST. SUCH DISCLOSURES (IF ANY) ARE REVIEWED BY THE GOVERNANCE COMMITTEE OF THE MEDSTAR HEALTH BOARD OF DIRECTORS WHICH DETERMINES HOW THE MATTER SHOULD BE RESOLVED. ANNUAL DISCLOSURES - ALL OFFICERS, DIRECTORS, AND SENIOR MANAGERS ALL OFFICERS, DIRECTORS AND SENIOR MANAGERS ARE REQUIRED, NOT LESS THAN ANNUALLY, TO COMPLETE A SURVEY OF QUESTIONS CONCERNING ANY TRANSACTIONS OR RELATIONSHIPS WHICH WOULD OR COULD REPRESENT A CONFLICT OF INTEREST. SUCH DISCLOSURES (IF ANY) ARE REVIEWED BY THE GOVERNANCE COMMITTEE OF THE MEDSTAR HEALTH BOARD OF DIRECTORS WHICH DETERMINES HOW THE MATTER SHOULD BE RESOLVED. IN ADDITION, OFFICERS AND DIRECTORS OF MARYLAND HOSPITALS AND NURSING CENTERS ARE REQUIRED TO ANNUALLY DISCLOSE ADDITIONAL INFORMATION RELATING TO POTENTIAL CONFLICTS OF INTEREST AND SUCH DISCLOSURES ARE REPORTED TO THE MARYLAND HEALTH SERVICES COST REVIEW COMMISSION (HSCRC). EXECUTIVE COMPENSATION PROCESS PART VI, LINE 15 THE EXECUTIVE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS OF MEDSTAR HEALTH, INC. (THE "COMMITTEE") HAS OVERSIGHT OVER THE EXECUTIVE COMPENSATION PROGRAM (THE "PROGRAM") OF MEDSTAR HEALTH, INC. AND ITS AFFILIATES. TOTAL COMPENSATION FOR THE TOP MANAGEMENT OFFICIALS, OFFICERS AND KEY EMPLOYEES OF MEDSTAR HEALTH, INC. AND ITS AFFILIATES ARE REVIEWED AND APPROVED BY THE COMMITTEE WITH ASSISTANCE AND GUIDANCE FROM AN INDEPENDENT THIRD PARTY ADVISOR. THE MEMBERS OF THE COMMITTEE ARE INDEPENDENT FROM ALL OF THE PARTICIPANTS IN THE PROGRAM. THE MAIN OBJECTIVE OF THE PROGRAM IS TO PROVIDE MARKET COMPETITIVE TOTAL COMPENSATION THAT IS INTERNALLY EQUITABLE AND HAS A STRONG PAY-FOR-PERFORMANCE LINKAGE. PERFORMANCE IS EVALUATED AT THE SYSTEM, OPERATING UNIT, AND INDIVIDUAL LEVELS. THE OVERALL TOTAL COMPENSATION PHILOSOPHY IS MANAGED AT THE 75TH PERCENTILE OF THE COMPETITIVE MARKET FOR COMPARABLE SIZE (NET REVENUE) AND TYPE (TAX-EXEMPT HEALTHCARE ORGANIZATIONS). WHERE APPROPRIATE, ADDITIONAL INDUSTRY DATA IS CONSIDERED (GENERAL BUSINESS AND/OR TAXABLE HEALTHCARE) FOR SELECTED POSITIONS THAT CAN BE RECRUITED FROM OR POTENTIALLY LOST TO THESE INDUSTRIES (E.G., INFORMATION TECHNOLOGY, FINANCE, ETC.). THE COMMITTEE HAS ENGAGED ERNST & YOUNG LLP ("E&Y") TO SERVE AS AN ADVISOR ON THE REASONABLENESS AND COMPETITIVENESS OF THE PROGRAM. IN DETERMINING REASONABLENESS AND COMPETITIVENESS, E&Y REVIEWS MARKET PRACTICES AND TRENDS, AND MAKES RECOMMENDATIONS RELATED TO THE PROGRAM. E&Y UTILIZES INFORMATION FROM CUSTOM SURVEYS, NATIONAL COMPENSATION SURVEYS, PROPRIETARY DATABASES, AND CLIENT EXPERIENCES TO DETERMINE ITS FINAL RECOMMENDATIONS. E&Y PRESENTS THEIR FINDINGS AND RECOMMENDATIONS TO THE COMMITTEE. THE COMMITTEE MAKES THE FINAL DECISIONS ON ALL OF THE COMPENSATION DETERMINATIONS OF THE PROGRAM. ALL DECISIONS MADE BY THE COMMITTEE ARE CONTEMPORANEOUSLY DOCUMENTED. FINANCIAL STATEMENT AVAILABILITY PART VI, LINE 19 MEDSTAR HEALTH POSTS ITS ANNUAL FINANCIAL AUDIT AND QUARTERLY FINANCIAL REPORTS TO THE ELECTRONIC MUNICIPAL MARKET ACCESS (EMMA) SYSTEM. THE ORGANIZATION ALSO E-MAILS ITS ANNUAL AND QUARTERLY DISCLOSURES TO HOLDERS OF THE COMPANY'S PUBLICLY TRADED DEBT. THE COMPANY'S GOVERNANCE DOCUMENTS AND CONFLICTS OF INTEREST POLICIES ARE AVAILABLE UPON REQUEST THROUGH ITS CORPORATE (OR AS APPLICABLE ENTITY) PUBLIC INFORMATION OFFICES. OTHER CHANGES IN NET ASSETS PAER XI, LINE 5 ADDITIONAL MINIMUM PENSION LIABILITY....................$ 31,745,652 EQUITY TRANSFERS - NET ASSETS............................ 96,760,619 UNREALIZED GAIN ON INVESTMENTS........................... 60,748,363 INCOME TAX PROVISION..................................... 1,407,616 =========== TOTAL $190,662,251 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:DONOVAN DIETRICK MD TITLE:BOARD MEMBER HOURS:40 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:JOHN R KIRKPATRICK MD TITLE:BOARD MEMBER HOURS:40 MEDSTAR SPORTSHEALTH LLC 5565 Sterrett Place Columbia MD 21044 Healthcare MD 201908 0 MEDSTHEALTH MEDSTAR LLC 5565 STERRET PLACE 5TH FLOOR COLUMBIA MD 21044 453113462 SUPPORT ORG MD 0 0 MEDSTHEALTH Church Home Corporation 5565 Sterrett Place 5th Floor Columbia MD 21044 237374724 Medical Fund MD 501(c)(3) PF NA Franklin Square Hospital Center Inc 9000 Franklin Square Drive Baltimore MD 21237 520608007 Hospital MD 501(c)(3) 3 NA Harbor Hospital Inc 3001 South Hanover Street Baltimore MD 21225 520491660 Hospital MD 501(c)(3) 3 NA Montgomery General Hospital 18101 Prince Philip Drive Olney MD 20832 520646893 Hospital MD 501(c)(3) 3 NA The Good Samaritan Hospital of Maryland 5601 Loch Raven Blvd Baltimore MD 21239 520591607 Hospital MD 501(c)(3) 3 NA The Union Memorial Hospital 201 East University Parkway Baltimore MD 21218 520591685 Hospital MD 501(c)(3) 3 NA Medstar Health Research Institute 108 Irving Street NW Washington DC 20010 526056274 Hospital DC 501(c)(3) 3 NA The Medstar-Georgetown Medical Center I Hopsital Admin 1 Main Bldg Washington DC 20007 522218584 Hospital DC 501(c)(3) 3 NA Washington Hospital Center Corporation 110 Irving Street NW Washington DC 20010 521272129 Hospital DC 501(c)(3) 3 NA HH Medstar Health Inc 5565 Sterrett Place 5th Floor Columbia MD 21044 521542230 Medical Svcs MD 501(c)(3) 11b II NA Bay Development Corp 5565 Sterrett Place 5th Floor Columbia MD 21044 521132992 Foundation MD 501(c)(3) 11a I NA Bay Life Services Inc 5565 Sterrett Place 5th Floor Columbia MD 21044 521496539 Mental Health MD 501(c)(3) 9 NA MedStar Surgery Center Inc 4061 Powdermill Road Suite 210 Calverton MD 20705 521061679 Medical Svcs MD 501(c)(3) 9 NA Church Home and Hospital of the City of 5565 Sterrett Place 5th Floor Columbia MD 21044 520591600 Hospital MD 501(c)(3) 3 NA Foundation for Georgetown University Hos Hopsital Admin 1 Main Bldg Washington DC 20007 522339873 Foundation DC 501(c)(3) 11a I NA Franklin Square Hospital Center Foundati 9000 Franklin Square Drive Baltimore MD 21237 522329546 Foundation MD 501(c)(3) 11a I NA Good Samaritan Hospital Foundation Inc 5601 Loch Raven Blvd Baltimore MD 21239 522307122 Foundation MD 501(c)(3) 11a I NA Good Samaritan Nursing Center Inc 5601 Loch Raven Blvd Baltimore MD 21239 521672866 Medical Svcs MD 501(c)(3) 9 NA GS Housing Inc 5601 Loch Raven Blvd Baltimore MD 21239 521481656 Elder Housing MD 501(c)(3) 9 NA GS Properties Inc 5601 Loch Raven Blvd Baltimore MD 21239 521429853 Admin Svcs MD 501(c)(3) 11a I NA Harbor Hospital Foundation Inc 3001 South Hanover Street Baltimore MD 21225 521284532 Foundation MD 501(c)(3) 11a I NA Medstar Health Infusion Inc 4061 Powdermill Road Suite 210 Calverton MD 20705 521980510 Medical Svcs MD 501(c)(3) 9 NA Medstar Health Visiting Nurses Associati 4061 Powdermill Road Calverton MD 20705 530196597 Medical Svcs MD 501(c)(3) 9 NA Medstar Long Term Care Corporation 4061 Powdermill Road Suite 210 Calverton MD 20705 521489097 Hospital MD 501(c)(3) 3 NA Medstar VNA Healthcare 4061 Powdermill Road Suite 210 Calverton MD 20705 521458516 Medical Svcs MD 501(c)(3) 9 NA MGH Community Health Inc 18101 Prince Philip Drive Olney MD 20832 521372467 Medical Svcs MD 501(c)(3) 9 NA MGH Health Foundation Inc 18101 Prince Philip Drive Olney MD 20832 521129959 Foundation MD 501(c)(3) 7 NA MGH Health Services Inc 18101 Prince Philip Drive Olney MD 20832 521366812 Foundation MD 501(c)(3) 11a I NA MGH Women's Board 18101 Prince Philip Drive Olney MD 20832 526039600 Foundation MD 501(c)(3) 11a I NA National Rehabilitation Hospital 102 Irving Street NW Washington DC 20010 521369749 Hospital DC 501(c)(3) 3 NA Regional Rehab at Olney Inc 18101 Prince Philip Drive Olney MD 20832 522310902 Medical Svcs MD 501(c)(3) 3 NA Suburban NRH Medical Rehabilitation I 102 Irving Street NW Washington DC 20010 521931151 Medical Svcs DC 501(c)(3) 3 NA The Thomas O'Neil Catholic Health Care F 5601 Loch Raven Blvd Baltimore MD 21239 521104382 Foundation MD 501(c)(3) 11a I NA Union Memorial Hospital Foundation Inc 201 East University Parkway Baltimore MD 21218 521446828 Foundation MD 501(c)(3) 11a I NA VNA Inc 4061 POWDERMILL ROAD SUITE 21 CALVERTON MD 20705 521332411 ADMIN SVCS MD 501(C)(3) 11A I NA WHC Foundation Inc 4061 Powdermill Road Suite 210 Calverton MD 20705 521332411 Admin Svcs MD 501(c)(3) 11a I NA Woodbourne Woods Inc 110 Irving Street NW Washington DC 20010 521791670 Foundation DC 501(c)(3) 11a I NA Hospice of St Mary's Inc 5601 Loch Raven Blvd Baltimore MD 21239 522299070 Elder Housing MD 501(c)(3) 9 NA St Mary's Hospital of St Mary's County 25500 Point Lookout Road Leonardtown MD 20650 520619006 Hospital MD 501(c)(3) 3 NA St Mary's Hospital Foundation Inc PO Box 527 Leonardtown MD 20650 521051368 Support Org MD 501(c)(3) 11d III NA Surgicenter at Pasadena LLC 5565 Sterrett Place 5th Floor Columbia MD 21044 522009504 Medical Servi MD N/A SJMC-RA LLC 5565 Sterrett Place 5th Floor Columbia MD 21044 753160895 Radiation The MD N/A Physician Imaging of Washington Hospital 6525 Belcrest Road Suite G 50 Hyattsville MD 20782 562616090 Lab Services MD N/A MedStar Pharmacies Inc 5565 Sterrett Place 5th Floor Columbia MD 21044 521513056 Drug Sales MD NA C Corp ExtenCare Inc 5565 Sterrett Place 5th Floor Columbia MD 21044 521556228 Medical Servi MD NA C Corp Helix Resources Management Inc 5565 Sterrett Place 5th Floor Columbia MD 21044 521913070 Admin Service MD NA C Corp HelixCare Medical Group LLC 5565 Sterrett Place 5th Floor Columbia MD 21044 521955580 Medical Servi MD NA C Corp HelixCare Properties LLC 5565 Sterrett Place 5th Floor Columbia MD 21044 521966695 Medical Servi MD NA C Corp Parkway Ventures Inc 5565 Sterrett Place 5th Floor Columbia MD 21044 521893569 Holding Compa MD NA C Corp Physicians Administrative Services Inc 5565 Sterrett Place 5th Floor Columbia MD 21044 237042074 Billing Servi MD NA C Corp MedStar Family Choice Inc 5565 Sterrett Place 5th Floor Columbia MD 21044 521995521 Managed Care MD NA C Corp Medstar Enterprises Inc 4061 Powdermill Road Suite 210 Calverton MD 20705 522139841 Admin Service MD NA C Corp Nascott Inc 4061 Powdermill Road Suite 210 Calverton MD 20705 521693808 Medical Servi MD NA C Corp Star Billing Inc 4061 Powdermill Road Suite 210 Calverton MD 20705 521850113 Billing Servi MD NA C Corp Washington Risk Network Management Inc 4061 Powdermill Road Suite 210 Calverton MD 20705 522132677 Medical Servi MD NA C Corp Washington Hospital Center Physician Hos 100 Irving Street NW Washington DC 20010 521931000 Medical Servi MD NA C Corp Medstar Physician Partners Inc 4061 Powdermill Road Suite 210 Calverton MD 20705 522030809 Medical Servi MD NA C Corp NRH Ambulatory Services Inc 102 Irving Street NW Washington DC 20010 521930165 Rehab Service MD NA C Corp Franklin Square Drive Land Condo Associa 5565 Sterrett Place 5th Floor Columbia MD 21044 760756352 Condo Owner A MD NA C Corp MGH Diversified Services Inc 18101 Prince Philip Drive Olney MD 20832 521943602 Medical Servi MD NA C Corp St Mary's Health Alliance Inc 25500 Point Lookout Road Leonardtown MD 20650 521930331 Medical Servi MD NA C Corp Greenspring Financial Insurance Limited 23 LIME TREE BAY AVENUE PO BOX 1051 KY1-1102 GRAND CAYMAN CJ 980188617 Insurance CJ NA C Corp 81014721 219910168 1.00000 MEDSTAR LIABILITY LIMITED INSURANCE CO 5565 STERRETT PLACE COLUMBIA MD 21044 202490050 INSURANCE/RISK MD NA C CORP 1103148 3664794 1.00000 false true false false false false false false false false false false false false true true false false HH MEDSTAR HEALTH INC O 3138558 VNA INC P 59802 FRANKLIN SQUARE HOSPITAL CENTER INC O 381064 THE UNION MEMORIAL HOSPITAL INC O 159629 THE GOOD SAMARITAN HOSPITAL OF MARYLAND O 150221 HARBOR HOSPITAL INC O 87993 THE MEDSTAR-GEORGETOWN MEDICAL CENTER INC O 1104052 MONTGOMERY GENERAL HOSPITAL INC P 11936172 ST MARY'S HOSPITAL OF ST MARY'S COUNTY P 2685095 GOOD SAMARITAN NURSING CENTER INC O 107910 NATIONAL REHABILITATION HOSPITAL P 331050 MEDSTAR PHYSICIAN PARTNERS INC O 60691 HELIXCARE MEDICAL GROUP LLC O 91295 MEDSTAR HEALTH VISITING NURSES ASSOCIATION P 138180 GREENSPRING FINANCIAL INSURANCE LIMITED B 8550000