2011-11-10T10:42:03-06:00 2010-12-31 EISNERAMPER LLP 2015 LINCOLN HIGHWAY POBOX 988 EDISON NJ 088180988 990 2010-01-01 226019101 THE COMMUNITY HOSPITAL GROUP INC COMM 7323217747 98 JAMES STREET EDISON NJ 08820 RICHARD C SMITH 7323217747 2011-11-04 1 RICHARD A SACKIN 7322871000 2010 2016-03-07 17:11:31Z JFK MEDICAL CENTER RAYMOND F FREDERICKS 80 JAMES STREET EDISON NJ 08820 428349346 0 X SOLARISHS.ORG X 1962 NJ SEE SCHEDULE O. 21 19 4429 450 747906 -90523 1342172 1421505 410277760 414461584 1116557 954050 11565563 11041616 424302052 427878755 0 0 0 0 240611770 243128806 0 0 0 180485454 186888560 421097224 430017366 3204828 -2138611 238836869 243935184 254656328 276711712 -15819459 -32776528 X WE ARE COMMITTED TO EXCELLENCE IN PROVIDING QUALITY AND COMPASSIONATE HEALTHCARE SERVICES TO OUR DIVERSE COMMUNITIES. 0 0 54228564 60280085 JFK JOHNSON REHABILITATION INSTITUTE 106683161 118083899 INPATIENT SERVICE 98179342 107862594 OPERATING ROOM AND SAME DAY SURGERIES 137304258 127171657 OTHER PROGRAM SERVICE EXPENSES 137304258 127171657 396395325 1 1 0 1 0 1 0 0 0 1 0 0 1 1 1 1 1 0 0 0 0 0 0 0 0 1 1 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 318 0 1 4429 1 1 1 0 0 0 0 0 0 0 0 0 X 21 19 0 1 0 0 1 0 1 1 1 0 0 1 1 1 1 1 1 1 1 0 NJ X RICHARD C SMITH 7323217747 80 JAMES STREET EDISON NJ 08820 X PRAFUL RAJA 0.00 X 0 0 0 MICHAEL A KLEIMAN DMD 0.00 X 0 0 0 JAY M JENEY 0.00 X 0 0 0 DAVID A BELOWICH 0.00 X 0 0 0 MORRIS BROWN ESQ 0.00 X 0 0 0 SIMPSON YT CHOI 0.00 X 0 0 0 DONALD GRIFFIN 0.00 X 0 0 0 JOHN O GRUN 0.00 X 0 0 0 DONALD KLINE MD 1.00 X 4875 0 0 WILLIAM J LOVETT 0.00 X 0 0 0 JOHN G MCDONOUGH DMD 0.00 X 0 0 0 VAL MESZAROS 0.00 X 0 0 0 PARAG P PATEL ESQ 0.00 X 0 0 0 ELAINE SANTOWASSO 0.00 X 0 0 0 LEONARD SENDELSKY 0.00 X 0 0 0 JOHN P MCGEE 40.00 X X 673885 0 41418 SCOTT GEBHARD 40.00 X X 485738 0 45563 BARBARA BRAYNOCK 0.00 X 0 0 0 BHUDEV SHARMA 0.00 X 0 0 0 FRANKLIN SPIRN MD 0.50 X 1037 0 0 JUDITH SPIEGEL 0.00 X 0 0 0 SEAN PATRICK MURPHY ESQ 40.00 X 333737 0 34911 RICHARD C SMITH 40.00 X 332684 0 34368 RAYMOND FREDERICKS 40.00 X 461043 0 42481 LOUIS HERMANS 40.00 X 273467 0 31716 AMIE THORNTON 40.00 X 261928 0 8932 ANN LOGAN 40.00 X 246937 0 26507 WILLIAM OSER 40.00 X 414065 0 36261 THOMAS STRAX MD 40.00 X 421282 0 51055 GREGORY PRZYBYLSKI MD 40.00 X 717556 0 26837 SIMON SALERNO MD 40.00 X 624681 0 20588 STEPHEN BLOOMFIELD MD 40.00 X 545644 0 21126 THOMAS STEINEKE MD 40.00 X 685705 0 19659 WILLIAM MAGGIO MD 40.00 X 539338 0 2290 7023602 0 443712 315 0 1 0 MCKESSON TECHNOLOGIES INC PO BOX 98347 CHICAGO IL 60693 SOFTWARE SERVICES 4648771 GE HEALTHCARE PO BOX 96483 CHICAGO IL 60693 EQUIPMENT MAINTENANCE CONTRACTS 4597915 TRI COUNTY HEART NEW JERSEY LLC 10720 SIKES PLACE STE 300 CHARLOTTE NC 28277 CATH LAB MANAGEMENT 3379970 DAVITA PO BOX 403008 ATLANTA GA 30384 HEMODIALYSIS SERVICES 1855552 DELPHI HEALTHCARE PARTNERS INC 170 SOUTHPORT DRIVE MORRISVILLE NC 27560 PHYSICIAN SERVICES 1463100 96 353821 1067684 1421505 PATIENT SERVICE REVENU 900099 413398234 413398234 JRI GRANT INCOME 900099 741997 741997 MEDICAL RECORDS 900099 139338 139338 NEURO DRUG STUDY 900009 92669 92669 LAMAZE 900099 45373 45373 43973 43973 414461584 944575 944575 305700 305700 305700 305700 480066 470591 9475 9475 9475 SCHOOL OF NURSING 900099 4565516 4565516 CHILDCARE 900099 1635452 950585 684867 SCHOOL OF RADIOGRAPHY 900099 1205955 1205955 3328993 3265954 63039 10735916 427878755 425251025 747906 1259750 4257977 3832179 425798 197452766 177707490 19745276 2743506 2469155 274351 21701738 19531564 2170174 16972819 15275537 1697282 532511 479260 53251 166106 149495 16611 1038349 934514 103835 2468551 2221696 246855 11280866 10152779 1128087 3673459 3306113 367346 364334 327901 36433 6161731 5545558 616173 12743016 11468714 1274302 4586589 4127930 458659 MEDICAL SUPPLIES 59683947 59683947 BAD DEBT 27093267 27093267 PURCHASE SERVICES 21232103 19108896 2123207 EQUIPMENT RENTAL & MAIN 9894727 8905254 989473 OTHER 8805617 7925053 880564 17163387 16149023 1014364 430017366 396395325 33622041 0 23483926 26767071 50550611 52395715 6958177 6086762 5790768 6122442 341154304 238471447 100338361 102682857 15868952 16175528 35846074 33704809 238836869 243935184 52982407 57431153 2342912 2069872 119636336 119636336 79694673 97574351 254656328 276711712 X -21328961 -38806718 5509502 6030190 -15819459 -32776528 238836869 243935184 X -2138611 -14818458 X X 0 1 1 X 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 0 0 0 0 1 0 1 159619 159619 0 EXPLANATION OF OTHER LOBBYING ACTIVITIES: PART II-B, LINE 1I: RETAINER WITH WASHINGTON STRATEGIC CONSULTING AND IMPACT NJ, LLC, TRAVEL & CONVENTIONS, MEALS & SPECIAL FUNCTIONS AND PAID STAFF OR MANAGEMENT. ALSO, THE HOSPITAL IS A MEMBER OF THE NEW JERSEY HOSPITAL ASSOCIATION AND THE AMERICAN HOSPITAL ASSOCIATION WHICH BOTH ENGAGE IN LOBBYING EFFORTS ON BEHALF OF THEIR MEMBER HOSPITALS. A PORTION OF THE DUES PAID TO THESE ORGANIZATIONS HAS BEEN ALLOCATED TO LOBBYING ACTIVITIES PERFORMED ON BEHALF OF THE ORGANIZATION. THIS ALLOCATION AMOUNTED TO $31,472. X 1 3.00 0 0 1 0 0 8309784 8309784 146682027 88114266 58567761 646022 122757 523265 180062862 150234424 29828438 5453609 5453609 102682857 OTHER ASSETS 19596767 BENEFICIAL INTEREST IN NET ASSETS OF JFK FOUNDATION 6030190 DUE FROM HARTWYCK AT OAK TREE, INC. 3059343 DUE FROM JFK HEALTHSHARE, INC. 170286 DUE FROM JFK MEDICAL CENTER FOUNDATION, INC. 402221 DUE FROM ATLANTIC INSURANCE EXCHANGE, LTD 645753 DUE FROM LIFESTYLE INSTITUTE, INC. 36669 DUE FROM MUHLENBERG FOUNDATION, INC. 60825 NOTE RECEIVABLE FROM JFK HEALTHSHARE, INC. 93000 DEFERRED FINANCING COSTS 3609755 33704809 AMOUNTS DUE 3RD PARTY PAYORS 10464833 ACCRUED PENSION LIABILITY 69057945 ACCRUED POST RETIREMENT BENEFITS 12628412 DUE TO HARTWYCK WEST NURSING HOME, INC. 138065 CAPITAL LEASE OBLIGATIONS 4131589 CURRENT PORTION OF CAPITAL LEASE OBLIGATION 1153507 97574351 427878755 430017366 -2138611 75111 -14893569 -14818458 -16957069 427132052 0 427132052 746703 746703 427878755 430017366 0 430017366 0 430017366 EXPLANATION OF EASEMENTS ENFORCEMENT POLICIES: PART II, LINE 5: JFK MEDICAL CENTER CREATED THE CONSERVATION EASEMENT. THE LAND WAS NOT CONTRIBUTED TO JFK MEDICAL CENTER. DESCRIPTION OF HOW ORGANIZATION REPORTS CONSERVATION EASEMENTS: PART II, LINE 9: JFK MEDICAL CENTER REPORTS CONSERVATION EASEMENTS WITHIN PROPERTY PLANT AND EQUIPMENT ON THE BALANCE SHEET. PART II, LINE 8 - THE EASEMENT IS UNDEVELOPABLE RAW LAND. PART XI, LINE 8 - OTHER ADJUSTMENTS: PENSION/POST RETIREMENT LIABILITY ADJUSTMENT: -16,414,404 TRANSFER FROM LIFESTYLE, INC.: 115,000 TRANSFER FROM SOLARIS: 70,000 CHANGE IN BENEFICIAL INTEREST IN NET ASSETS OF JFK FOUNDATION: 520,688 PROVISION FOR DOUBTFUL COLLECTIONS: 815,147 TOTAL PART XI, LINE 8: -14,893,569 PART XII, LINE 4B - OTHER ADJUSTMENTS: INVESTMENT INCOME: 543,383 NET ASSETS RELEASED FROM RESTRICTIONS FOR CAPITAL PURCHASES: 203,320 TOTAL PART XII, LINE 4B: 746,703 PART X, QUESTION 2: JFK MEDICAL CENTER ACCOUNTS FOR UNCERTAINTY IN INCOME TAXES BY PRESCRIBING A RECOGNITION THRESHOLD OF MORE-LIKELY-THAN-NOT TO BE SUSTAINED UPON EXAMINATION BY THE APPROPRIATE TAXING AUTHORITY. MEASUREMENT OF THE TAX UNCERTAINTY OCCURS IF THE RECOGNITION THRESHOLD HAS BEEN MET. THERE WERE NO TAX UNCERTAINTIES THAT MET THE RECOGNITION THRESHOLD IN 2010 OR 2009. PART II, QUESTIONS 6 AND 7: THE ONLY STAFF HOURS AND EXPENSES INCURRED FOR THE PROPERTY AND EASEMENT WOULD BE FOR ORDINARY LAND UPKEEP. 1 1 X 1 X 300.000000000000 1 X 500.000000000000 1 1 1 0 0 14506163 4367351 10138812 0.02520 32619008 23600888 9018120 0.02240 47125171 27968239 19156932 0.04760 377278 377278 0.00090 14387035 8647291 5739744 0.01420 9748592 8557375 1191217 0.00300 1915352 819930 1095422 0.00270 26428257 18024596 8403661 0.02080 73553428 45992835 27560593 0.06840 1 27093267 29003149 124685035 150230650 -25545615 X 1 1 13 1 THE COMMUNITY HOSPITAL GROUP INC

65 JAMES STREET EDISON NJ 08820

X X X X X ACUTE HOSPITAL 2 THE COMMUNITY HOSPITAL GROUP INC

65 JAMES STREET EDISON NJ 08820

X X X X REHAB FACILITY 3 THE COMMUNITY HOSPITAL GROUP INC

98 JAMES STREET EDISON NJ 08820

SURGERY CENTER 4 THE COMMUNITY HOSPITAL GROUP INC

PARK RANDOLPH ROADS PLAINFIELD NJ 07061

X SATELLITE ER 5 THE COMMUNITY HOSPITAL GROUP INC

60 JAMES STREET EDISON NJ 08820

OUTPATIENT CENTER 6 THE COMMUNITY HOSPITAL GROUP INC

2048 OAKTREE ROAD EDISON NJ 08818

REHAB 7 THE COMMUNITY HOSPITAL GROUP INC

2050 OAKTREE ROAD EDISON NJ 08818

PEDIATRIC REHAB 8 THE COMMUNITY HOSPITAL GROUP INC

65 JAMES STREET EDISON NJ 08820

BEHAV/OCCUPAT HEALTH 9 THE COMMUNITY HOSPITAL GROUP INC

481 MEMORIAL PARKWAY METUCHEN NJ 08840

OUTPATIENT REHAB FACILITY 10 THE COMMUNITY HOSPITAL GROUP INC

300 OVERLOOK DRIVE MONROE TOWNSHIP NJ 08831

OUTPATIENT REHAB FACILITY 11 THE COMMUNITY HOSPITAL GROUP INC

3 PROGRESS STREET EDISON NJ 08817

ADULT DAY CARE 12 THE COMMUNITY HOSPITAL GROUP INC

65 JAMES STREET EDISON NJ 08820

FAMILY MEDICINE 13 THE COMMUNITY HOSPITAL GROUP INC

308 TALMADGE ROAD EDISON NJ 08818

DIABETES CENTER NOT REQUIRED 1 PART I, LINE 7: WORKSHEET 2 WAS USED FOR THE COST TO CHARGE RATIO. PART I, L7 COL(F): THE BAD DEBT EXPENSE INCLUDED ON FORM 990, PART IX, LINE 25, COLUMN (A), BUT SUBTRACTED FOR PURPOSES OF CALCULATING THE PERCENTAGE IN THIS COLUMN IS $27,093,267. PART 1, LINE 3C JFK MEDICAL CENTER USES THE INCOME/ASSET CRITERIA AND SLIDING SCALE PROVIDED BY THE STATE OF NEW JERSEY WHEN SCREENING PATIENTS FOR FINANCIAL ASSISTANCE. ADDITIONALLY, JFK MEDICAL CENTER HAS A COMPASSIONATE CARE POLICY TO APPLY DISCOUNTS (WHEN APPLICABLE) IF A PATIENT DOES NOT QUALIFY OR ONLY QUALIFIES FOR PARTIAL CHARITY CARE. PART 1, LINE 6A IN LIEU OF A WRITTEN REPORT, IN JUNE 2010, JFK MEDICAL CENTER HELD A PUBLIC ANNUAL COMMUNITY MEETING. AT THIS MEETING, SENIOR MANAGEMENT AND BOARD MEMBERS DISCUSSED THE MEDICAL CENTER'S COMMUNITY BENEFITS, CLINICAL AND COMMUNITY STRATEGIES AND FINANCIAL STATUS FOR THE CURRENT YEAR AND BEYOND. THIS MEETING IS OPEN TO THE PUBLIC AND NOTICE IS ADVERTISED TO THE MEDICAL CENTER'S PRIMARY AND SECONDARY SERVICE AREAS. PART I, LINE 7G SUBSIDIZED HEALTH SERVICES REPRESENT CLINICAL PATIENT CARE SERVICES THAT ARE PROVIDED, DESPITE A NEGATIVE MARGIN, BECAUSE THEY ARE NEEDED IN THE COMMUNITY. DURING 2010, THE ORGANIZATION PROVIDED FAMILY PRACTICE, DENTAL, ADULT DAY CARE, PEDS REHABILITATION, CARDIAC REHABILITATION, AND COGNITIVE REHABILITATION SERVICES PROGRAMS. THE NET COMMUNITY BENEFIT EXPENSES REPRESENTS THE TOTAL EXPENSES OFFSET BY ANY PATIENT AND GRANT REVENUE. PART III, LINE 4: ACCOUNTS RECEIVABLE, PATIENTS ARE REPORTED AT NET REALIZABLE VALUE. ACCOUNTS ARE WRITTEN OFF WHEN THEY ARE DETERMINED TO BE UNCOLLECTIBLE BASED UPON MANAGEMENT'S ASSESSMENT OF INDIVIDUAL ACCOUNTS. THE ALLOWANCE FOR DOUBTFUL COLLECTIONS IS ESTIMATED BASED UPON A PERIODIC REVIEW OF THE ACCOUNTS RECEIVABLE AGING, PAYOR CLASSIFICATIONS AND APPLICATION OF HISTORICAL WRITE-OFF PERCENTAGES. THE COSTING METHODOLOGY USED IS THE RATIO OF THE COST TO CHARGES AS DESCRIBED IN WORKSHEET #2 INSTRUCTIONS. PART III, LINE 8: MEDICARE ALLOWABLE COSTS PER FILED MEDICARE COST REPORT WORKSHEET B-1 WAS $364,933,188. TOTAL MEDICARE REIMBURSEMENT PER PS&R REPORTS FOR 2010 TOTALED $124,685,035 THE DIFFERENCE IS THE SHORTFALL. PART III, LINE 9B: JFK MEDICAL CENTER RECOGNIZES THE FINANCIAL DIFFICULTY IMPOSED ON THE SELF-PAY PATIENT WHO IS LEAST ABLE TO PAY FOR HEALTHCARE SERVICES WHEN BILLED AT THE HOSPITAL'S STANDARD CHARGES. CREDIT ADJUSTMENTS TO THE SELF-PAY BALANCE WILL BE PERMITTED FOR THE PURPOSE OF BILLING AND COLLECTING FROM THE SELF-PAY PATIENT. THIS POLICY DOES NOT AFFECT ANY BILLINGS FOR SERVICES RENDERED BY HOSPITAL BASED PHYSICIANS GROUPS, PROFESSIONAL PRACTICE PHYSICIANS, OR PARTIES PROVIDING OTHER MEDICAL SERVICES TO THE PATIENT NOT BILLED BY THE HOSPITAL. THIS POLICY EXCLUDES BILLING FOR OBSTETRICS, GYNECOLOGY (SELECTED), NEWBORN, AND COSMETIC PROCEDURES (COVERED UNDER SEPARATE POLICY). THIS POLICY DOES NOT COVER AMOUNTS OWED RELATING TO COPAYS, DEDUCTIBLES, AND COINSURANCE.THE COST AND SUBSEQUENT SELF-PAY BILLING AMOUNT WILL BE DETERMINED BASED UPON A REVIEW OF THE MOST CURRENT HOSPITAL SPECIFIC MEDICARE COST REPORT AND MANAGED CARE COMMERCIAL RATE. ALL PATIENTS THAT PRESENT TO THE HOSPITAL FOR MEDICALLY NECESSARY SERVICESWHO ARE IDENTIFIED AS SELF-PAY PATIENTS WILL BE ADVISED WHEN APPROPRIATE, BY THE HOSPITAL REGISTRAR TO CONTACT THE NEW JERSEY HOSPITAL CARE PAYMENT ASSISTANCE PROGRAM REPRESENTATIVE OR A PATIENT ACCOUNTING DEPARTMENT REPRESENTATIVE. THE HOSPITAL HAS A FORMAL SELF-PAY BILLING AND COLLECTION PRACTICE IN PLACE TO ASSIST THE PATIENT WITH THE PAYMENT OF THEIR ACCOUNT.A. ALL PATIENTS ARE TO BE MADE AWARE OF THE NEW JERSEY HOSPITAL CARE PAYMENT ASSISTANCE PROGRAM AND BE PROVIDED WITH THE APPROPRIATE NOTICE OF THE AVAILABILITY OF THE PROGRAM AS REQUIRED BY THE PROGRAM'S REGULATORY GUIDELINES.B. PATIENTS WHO ARE DETERMINED TO BE ELIGIBLE FOR THE NEW JERSEY HOSPITAL CARE PAYMENT ASSISTANCE PROGRAM WILL HAVE THEIR CHARGES FOR SERVICES REDUCED USING THE PROGRAM CALCULATION AND METHODOLOGY.C. PATIENTS FOUND INELIGIBLE FOR THE NEW JERSEY HOSPITAL CARE PAYMENT ASSISTANCE PROGRAM ARE ADVISED OF THE UNINSURED ELIGIBILITY CRITERIA AND ARE ENCOURAGED TO APPLY.D. THE BILLING PRACTICE SHALL BE EXPLAINED WHEN APPROPRIATE TO THE PATIENT TO ENSURE THAT PROPER COMMUNICATION OCCURS REGARDING THIS POLICY.E. A DETERMINATION WILL BE MADE AT THE TIME OF SERVICE OR AS SOON AS POSSIBLE THEREAFTER TO ACCESS AND IDENTIFY ANY AND ALL OTHER 3RD PARTY BENEFITS AVAILABLE TO THE PATIENT. THIS WILL ENSURE THAT ALL 3RD PARTY PAYERS ARE BILLED APPROPRIATELY, PRIOR TO A SELF-PAY ADJUSTMENT BEING MADE ON AN ACCOUNT.F. THE ADJUSTMENT WILL BE MANUALLY MADE THROUGH THE HOSPITAL BILLING SYSTEM AND APPEAR AS A CREDIT ADJUSTMENT TO THE PATIENT BALANCE.G. IF THE PATIENT EXPRESSES AN INABILITY TO PAY THE ACCOUNT BALANCE IN FULL, A PAYMENT ARRANGEMENT MAY BE AUTHORIZED BY THE HOSPITAL AT ITS DISCRETION. PAYMENT ARRANGEMENTS WILL BE BASED UPON THE HOSPITAL'S CREDIT AND COLLECTION POLICY. PART VI, NO. 2 THIS ORGANIZATION REVIEWS KEY FACTORS THAT BY POPULATION (PRIMARY AND SECONDARY SERVICE AREAS) THAT INCLUDES A REPRESENTATIVE CROSS-SECTION OF DEMOGRAPHICS BY ETHNICITY AND AGE. THIS IS ACCOMPLISHED A NUMBER OF WAYS. WE PERFORM EXTENSIVE FOCUS GROUPS ATTENDED BY OUR PRIMARY AND SECONDARY SERVICE AREA PATIENT BASE. WE ASK QUESTIONS ABOUT HEALTH NEEDS, INPATIENT AND OUTPATIENT EXPERIENCES AND NEEDS, CLINIC NEEDS, CLINICAL SERVICE LINE NEEDS AND PATIENT SATISFACTION. THESE FOCUS GROUPS ARE DONE AT VARIOUS TIMES IN ORDER TO ACCOMPLISH OUR GOAL OF HAVING THE REPRESENTATIVE COHORTS. WE PERFORM A TELEPHONE SURVEY ASKING 1,000 RESIDENTS SIMILAR QUESTIONS REGARDING HEALTH CARE NEEDS. WE ALSO WORK WITH OUR LOCAL COMMUNITY BASED ORGANIZATIONS, BOTH FAITH BASED AND NON-FAITH BASED, TO PROVIDE AND IDENTIFY HEALTH NEEDS. ADDITIONALLY, WE ARE MEMBERS OF A COMMUNITY ACTION GROUP IN THE PLAINFIELD COMMUNITY TO ADDRESS THE HEALTH NEEDS OF THIS PRIMARY SERVICE AREA. PART VI, NO. 3 FINANCIAL ASSISTANCE SIGNS ARE POSTED THROUGHOUT THE FACILITY, INCLUDING ADMITTING, EMERGENCY ROOM, SATELLITE EMERGENCY DEPARTMENT, IMAGING CENTER AND OTHER PATIENT REGISTRATION AREAS. ALL ELIGIBLE PATIENTS ARE SCREENED FOR FINANCIAL ASSISTANCE ACCORDING TO THE FEDERAL POVERTY GUIDELINES AND REFERRED TO THE APPROPRIATE AGENCIES OR PROGRAMS. ALL PATIENTS THAT CONTACT THE HOSPITAL FOR PRICING ARE INFORMED OF THE CHARITY AND COMPASSIONATE CARE POLICIES OF THE MEDICAL CENTER. PART VI, NO. 4 ACCORDING TO THE 2010 CENSUS, THE POPULATION OF MIDDLESEX COUNTY (WHERE JFK IS LOCATED) REACHED 809,858, AN INCREASE OF 8% SINCE THE 2000 CENSUS. ALMOST HALF THE TOTAL POPULATION IS COMPRISED OF MINORITIES AND 7% OF FAMILIES LIVE IN POVERTY. AS A RESULT OF THE CLOSURE OF NEARBY MUHLENBERG REGIONAL MEDICAL CENTER IN AUGUST 2008, JFK'S PRIMARY SERVICE AREA HAS EXPANDED AS IT HAS BECOME THE NEAREST FULL SERVICE HOSPITAL FOR RESIDENTS OF SOUTHWESTERN UNION COUNTY, INCLUDING THE CITY OF PLAINFIELD, WHERE OVER 80% OF THE 46,318 RESIDENTS ARE MINORITIES, MORE THAN 12% OF FAMILIES LIVE IN POVERTY AND PORTIONS OF THE CITY ARE CONSIDERED AN URBAN ENTERPRISE ZONE (AN AREA WHERE BLIGHTED NEIGHBORHOODS RECEIVE ENCOURAGEMENT THROUGH TAX RELIEF TO BUSINESSES AND ENTREPRENEURS). IN 2009, PLAINFIELD'S MEDIAN HOUSEHOLD INCOME WAS $49,210, 39% LOWER THAN THE STATE'S $68,342. UNEMPLOYMENT IN PLAINFIELD WAS LAST REPORTED IN MARCH 2011 AT 14.3%. IN TERMS OF ETHNICITY, MIDDLESEX COUNTY HAS THE HIGHEST PERCENTAGE OF ASIAN RESIDENTS OF ALL NEW JERSEY COUNTIES (21.4%). AFRICAN AMERICANS ACCOUNT FOR 9.7% OF THE POPULATION, WHILE HISPANICS MAKE UP 18.4%. OVER 7% OF FAMILIES LIVE BELOW THE FEDERAL POVERTY LEVEL ($22,300 PER YEAR FOR A FAMILY OF FOUR). THE COUNTY'S MEDIAN INCOME OF $74,959 IN 2009 (THE MOST RECENT DATA AVAILABLE) WAS HIGHER THAN THE STATE, NEVERTHELESS, MIDDLESEX COUNTY HAS POCKETS OF WORKING POOR AND UNEMPLOYED PERSONS WHO RELY ON JFK FOR CARE. ACCORDING TO THE MIDDLESEX COUNTY FREEHOLDERS' WEBSITE, "CLOSE TO ONE THIRD OF THE POPULATION STILL EARNS LESS THAN A LIVING WAGE." UNEMPLOYMENT IN MIDDLESEX COUNTY ROSE FROM 5% IN 2008 TO 8.7% IN 2010. THE HEALTH RESOURCES AND SERVICES ADMINISTRATION (HRSA) AREA RESOURCE FILE STATES THAT, IN 2008 (MOST RECENT DATA AVAILABLE), THERE WERE 193,329 UNINSURED PERSONS UNDER AGE 65 AND 65,053 MEDICAID RECIPIENTS IN MIDDLESEX COUNTY. HRSA ALSO RECORDED 89,740 INDIVIDUALS 65 AND OLDER AND 13,323 DISABLED INDIVIDUALS RECEIVING MEDICARE. IMMIGRANTS MAKE UP 25.3% OF THE POPULATION AND HOMELESS PERSONS NUMBERED 796 MEN, WOMEN AND CHILDREN AS OF JANUARY 2009 - THE MOST RECENT SURVEY BY THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD). PART VI, NO. 5 COMMUNITY BUILDING ACTIVITIES UNDERTAKEN BY THIS ORGANIZATION ARE FOCUSED ON IMPROVING BOTH THE WELL-BEING OF OUR PRIMARY SERVICE AREA AND SECONDARY SERVICE AREA AND IMPROVING ACCESS TO HEALTH CARE. WE ACCOMPLISH THIS THROUGH PARTNERSHIPS WITH LOCAL ORGANIZATIONS LIKE THE YMCA, FEDERALLY QUALIFIED HEALTH CENTER, RELIGIOUS AND CULTURAL ORGANIZATIONS AND INDIVIDUALS WHO RESIDE IN THE COMMUNITY. WE PARTICIPATE IN CONFERENCES, LECTURES, SEMINARS, HEALTH FAIRS AND SPONSORSHIPS. WE PROVIDE MATERIALS, PROFESSIONAL AND MEDICAL PERSONNEL, CLASSROOMS, SOCIAL HALLS FOR THE COMMUNITY BENEFIT. PART VI, NO. 6 THE ORGANIZATION HOLDS AN ANNUAL BOARD MEETING OPEN TO THE PUBLIC. THE MAJORITY OF BOARD MEMBERS OF JFK MEDICAL CENTER ARE INDIVIDUALS WITH LOCAL BUSINESSES OR WHO RESIDE IN THE COMMUNITY. HOSPITAL STAFF MEMBERS SERVE ON THE BOARDS OF MANY LOCAL NOT-FOR-PROFIT ORGANIZATIONS AND PROVIDE OTHER FORMS OF SUPPORT (FUNDRAISING, ACTIVITY PARTICIPATION). SURPLUS FUNDS ARE UTILIZED FOR CAPITAL PROJECTS TO IMPROVE SERVICES OR PURCHASE EQUIPMENT WHICH IN TURN BENEFIT THE COMMUNITY. PART VI, NO. 7 NOT APPLICABLE X X X X X 0 1 0 0 0 0 0 1 0 JOHN P MCGEE 673885 0 0 0 0 0 29543 0 11875 0 715303 0 0 0 SCOTT GEBHARD 373003 0 0 0 112735 0 25676 0 19887 0 531301 0 0 0 SEAN PATRICK MURPHY ESQ 333737 0 0 0 0 0 16667 0 18244 0 368648 0 0 0 RICHARD C SMITH 332684 0 0 0 0 0 18831 0 15537 0 367052 0 0 0 RAYMOND FREDERICKS 432715 0 0 0 28328 0 24774 0 17707 0 503524 0 0 0 LOUIS HERMANS 273467 0 0 0 0 0 24814 0 6902 0 305183 0 0 0 AMIE THORNTON 261928 0 0 0 0 0 5784 0 3148 0 270860 0 0 0 ANN LOGAN 246937 0 0 0 0 0 13277 0 13230 0 273444 0 0 0 WILLIAM OSER 414065 0 0 0 0 0 15681 0 20580 0 450326 0 0 0 THOMAS STRAX MD 421282 0 0 0 0 0 44619 0 6436 0 472337 0 0 0 GREGORY PRZYBYLSKI MD 717556 0 0 0 0 0 7032 0 19805 0 744393 0 0 0 SIMON SALERNO MD 599681 0 25000 0 0 0 4900 0 15688 0 645269 0 0 0 STEPHEN BLOOMFIELD MD 545644 0 0 0 0 0 6863 0 14263 0 566770 0 0 0 THOMAS STEINEKE MD 685705 0 0 0 0 0 5903 0 13756 0 705364 0 0 0 WILLIAM MAGGIO MD 529338 0 0 0 10000 0 0 0 2290 0 541628 0 0 0 PART I, LINE 7 THE NON-FIXED PAYMENTS WERE BASED ON PRODUCTIVITY, MEASURED AS RELATIVE VALUE UNITS (RVU). THE AMOUNTS WERE INCLUDED IN BOX 5 OF FORM W-2. SUPPLEMENTAL INFORMATION PART III SCHEDULE J, PART II: SCOTT GEBHARD AND RAYMOND FREDERICKS OTHER REPORTABLE COMPENSATION WAS A KESOP DISTRIBUTION INCLUDED IN BOX 5 OF FORM W-2. WILLIAM MAGGIO, MD OTHER REPORTABLE COMPENSATION WAS A LOAN FORGIVENESS INCLUDED IN BOX 5 OF FORM W-2. SUPPLEMENTAL INFORMATION PART III THE AMOUNTS LISTED BELOW ARE COMPENSATION REIMBURSED BY ANOTHER ACUTE HOSPITAL FOR NEUROSURGICAL SERVICES RENDERED IN CONJUNCTION WITH A MANAGEMENT AGREEMENT. THE AMOUNTS SHOWN BELOW WERE INCLUDED IN BOX 5 OF FORM W-2. DR. PRZYBYLSKI - $67,400 DR. BLOOMFIELD - $69,531 DR. STEINEKE - $152,967 DR. SALERNO - $624,681 DR. MAGGIO - $539,338 SUPPLEMENTAL INFORMATION PART III SCHEDULE J, PART I, QUESTION 4B: THIS QUESTION WAS ANSWERED YES DUE TO THE TWO BENEFIT PLANS THAT SEVERAL KEY EXECUTIVES ARE PARTICIPANTS IN: A) A 457(F) PLAN THAT WAS ESTABLISHED, BUT NOT FUNDED IN 2010; HOWEVER, 2010 SERVICE WILL BE CREDITED B) A KESOP PLAN THAT WAS FROZEN TO NEW CONTRIBUTIONS SUBSEQUENT TO 2002 NJ HEALTHCARE FACILITIES FINANCING AUTHORITY 221987084 64580AAT8 2009-06-01 119623712 SEE SCHEDULE O. 0 0 0 119655272 1946274 2629008 19596767 2013 1 0 0 1 0 0 0 0 1 0.00000 0.00000 0.00000 1 0 0 0 NA 0 0 0 FORM 990, PART VI, SECTION A, LINE 3 THE ORGANIZATION USES OUTSIDE MANAGEMENT SERVICES FOR THE FOLLOWING DEPARTMENTS: PHARMACY, CARDIAC CATH SERVICES, HEMODIALYSIS AND HOUSEKEEPING MANAGEMENT (INCLUDES HOUSEKEEPING, LINEN & PATIENT TRANSPORT). FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION HAS SOLARIS HEALTH SYSTEM, INC. AS ITS SOLE MEMBER. FORM 990, PART VI, SECTION A, LINE 7B CERTAIN DECISIONS OF THE GOVERNING BODY OF THE ORGANIZATION ARE SUBJECT TO APPROVAL BY THE MEMBER. FORM 990, PART VI, SECTION B, LINE 11 AN AD-HOC COMMITTEE, WHICH INCLUDES THE CHAIRMAN OF THE AUDIT & COMPLIANCE COMMITTEE AND A SELECTED DESIGNEE OF THE AUDIT AND COMPLIANCE COMMITTEE AS WELL AS DESIGNEES FROM FINANCE, LEGAL AND AUDIT AND COMPLIANCE, REVIEW THE IRS 990 TAX RETURNS WITH EISNERAMPER, LLP, THE TAX ACCOUNTANT FOR SOLARIS HEALTH SYSTEM, INC. DURING THIS REVIEW, ALL COMMENTS AND RECOMMENDATIONS THAT ARE MADE ARE ADDRESSED BY FINANCE, LEGAL, AUDIT AND COMPLIANCE AND EISNERAMPER. THE FINAL REVISED DRAFTS ARE REVIEWED BY THE AD-HOC COMMITTEE TO ENSURE ALL COMMENTS AND RECOMMENDATIONS WERE ADDRESSED IN THE FINAL DRAFTS. THE AUDIT AND COMPLIANCE COMMITTEE HAS GIVEN THE AD-HOC COMMITTEE THE AUTHORITY TO APPROVE THE IRS 990 TAX RETURNS. ONCE THE IRS 990 TAX RETURNS ARE APPROVED BY THE AD-HOC COMMITTEE, ALL BOARD MEMBERS ARE SENT AN E-MAIL WITH INSTRUCTIONS ON HOW TO ACCESS THE RESPECTIVE IRS 990 TAX RETURNS FOR THEIR REVIEW AND COMMENTS FOR 4 DAYS ON A SECURE WEBSITE PROVIDED BY EISNERAMPER, LLP. AT THE END OF THE 4 DAY REVIEW PERIOD, AND AFTER ANY COMMENTS HAVE BEEN ADDRESSED, THE IRS 990 TAX RETURNS ARE FINALIZED AND FILED. ALSO, AFTER THE IRS 990 TAX RETURNS ARE FILED, THE RETURNS ARE POSTED ON THE SOLARIS HEALTH SYSTEM BOARD PORTAL. FORM 990, PART VI, SECTION B, LINE 12C ON AN ANNUAL BASIS, CONFLICT OF INTEREST DISCLOSURE STATEMENTS ARE DISTRIBUTED TO ALL BOARD MEMBERS AND EMPLOYEES THAT ARE DEPARTMENT HEAD AND HIGHER LEVELS. ALL DISCLOSURES ARE REVIEWED BY THE COMPLIANCE OFFICER AND THE CHAIR OF THE SOLARIS AUDIT AND COMPLIANCE COMMITTEE. ANY POTENTIAL CONFLICT OF INTEREST IS BROUGHT TO THE SAID COMMITTEE FOR REVIEW AND CONSIDERATION AND ANY APPROPRIATE ACTION DEEMED NECESSARY PURSUANT TO THE CONFLICT OF INTEREST POLICY. FORM 990, PART VI, SECTION B, LINE 15 THE SOLARIS BOARD OF DIRECTORS HAS DULY APPOINTED AN EXECUTIVE COMPENSATION COMMITTEE (THE "COMMITTEE") THAT IS RESPONSIBLE FOR THE REVIEW AND APPROVAL OF ALL COMPENSATION AND BENEFITS PROVIDED TO EXECUTIVE MANAGEMENT OF THE ORGANIZATION. THE COMMITTEE HAS ADOPTED A WRITTEN EXECUTIVE COMPENSATION PHILOSOPHY STATEMENT AND AN EXECUTIVE COMPENSATION COMMITTEE CHARTER. THE COMMITTEE FOLLOWS THE PROCEDURES DESCRIBED IN THE PHILOSOPHY STATEMENT AND THE CHARTER WHEN IT REVIEWS AND APPROVES THE COMPENSATION AND EMPLOYEE BENEFITS PROVIDED TO THE ORGANIZATION'S SENIOR MANAGEMENT, INCLUDING THE PRESIDENT AND CHIEF EXECUTIVE OFFICER AND THE CHIEF FINANCIAL OFFICER. THE COMMITTEE'S REVIEW ANALYZES EVERY ELEMENT OF COMPENSATION, INCLUDING CURRENT AND DEFERRED COMPENSATION, AND BENEFITS, INCLUDING QUALIFIED AND NON-QUALIFIED BENEFITS. THE COMMITTEE CONDUCTS ITS REVIEW AND APPROVAL PROCESS AT LEAST ANNUALLY, AND APPROVES COMPENSATION AND BENEFITS ONLY TO THE EXTENT THAT THE COMMITTEE HAS CONCLUDED THAT THE TOTAL COMPENSATION AND BENEFITS CONSTITUTE NO MORE THAN REASONABLE COMPENSATION. THE COMMITTEE CONSISTS ENTIRELY OF INDEPENDENT MEMBERS OF THE SOLARIS BOARD, THE COMMITTEE REVIEWS IN ADVANCE INDEPENDENT DATA SHOWING THE COMPENSATION PROVIDED BY NON-PROFIT ORGANIZATIONS FOR FUNCTIONALLY SIMILAR POSITIONS, AND THE COMMITTEE PREPARES A TIMELY AND THOROUGH WRITTEN RECORD OF ITS DELIBERATIONS AND CONCLUSIONS. ASSISTING THE COMMITTEE IS AN OUTSIDE COMPENSATION CONSULTANT ALONG WITH OUTSIDE LEGAL COUNSEL. AS A RESULT, THE COMMITTEE'S REVIEW PROCESS IS DESIGNED TO SATISFY THE PROCEDURAL CRITERIA NECESSARY TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE FEDERAL INCOME TAX LAW INTERMEDIATE SANCTIONS RULES. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S CONSOLIDATED FINANCIAL STATEMENTS ARE POSTED ON THE SOLARIS WEBSITE; ANY OTHER PUBLIC INFORMATION IS AVAILABLE UPON REQUEST. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 75,111. PENSION/POST RETIREMENT LIABILITY ADJUSTMENT -16,414,404. TRANSFERS FROM AFFILIATES 185,000. CHANGE IN BENEFICIAL INTEREST IN NET ASSETS OF JFK FOUNDATION 520,688. PROVISION FOR DOUBTFUL COLLECTIONS 815,147. TOTAL TO FORM 990, PART XI, LINE 5: -14,818,458. FORM 990, PART XI, QUESTION 2C THE PROCESS HAS NOT CHANGED SINCE LAST YEAR. SOLARIS HAS A COMMITTEE THAT ASSUMES RESPONSIBILTY FOR OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND SELECTION OF AN INDEPENDENT ACCOUNTANT. JFK MEDICAL CENTER BACKGROUND JFK MEDICAL CENTER ("JFK") IS A GENERAL MEDICAL AND SURGICAL HOSPITAL. JFK IS RECOGNIZED BY THE IRS AS AN INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION PURSUANT TO ITS CHARITABLE PURPOSES, JFK PROVIDES MEDICALLY NECESSARY HEALTH CARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY, OPERATES AN ACTIVE EMERGENCY ROOM FOR ALL PERSONS, WHICH IS OPEN 24 HOURS A DAY, 7 DAYS A WEEK, 365 DAYS PER YEAR, MAINTAINS AN OPEN MEDICAL STAFF, WITH PRIVILEGES AVAILABLE TO ALL QUALIFIED PHYSICIANS, AND HAS A BOARD OF TRUSTEES WHICH IS COMPRISED OF INDEPENDENT CIVIC LEADERS, SOME MEDICAL STAFF MEMBERS, AND OTHER PROMINENT MEMBERS OF THE COMMUNITY. THE OPERATIONS OF JFK, AS SHOWN THROUGH THE FACTORS OUTLINED ABOVE AND OTHER INFORMATION CONTAINED HEREIN, CLEARLY DEMONSTRATE THE HOSPITAL PROVIDES SUBSTANTIAL COMMUNITY BENEFIT AND THAT THE USE AND CONTROL OF JFK IS FOR THE BENEFIT OF THE PUBLIC. JFK MEDICAL CENTER HISTORY JFK BEGAN IN THE 1960'S IN RESPONSE TO THE INCREASING DEMAND FOR HEALTH CARE SERVICES CREATED BY RAPID POPULATION GROWTH IN EDISON TOWNSHIP AND ITS SURROUNDING COMMUNITIES. THE LATE EDISON MAYOR ANTHONY M. YELENCSICS, FOR WHOM THE ORIGINAL COMMUNITY HOSPITAL WAS NAMED, LED A GRASSROOTS EFFORT TO OPEN A HOSPITAL TO MEET THIS DEMAND. FOLLOWING A FUNDRAISING CAMPAIGN PIONEERED BY TRUSTEES, PHYSICIANS, AUXILIANS AND COMMUNITY RESIDENTS, THE ORIGINAL 205-BED HOSPITAL OPENED ITS DOORS AND ADMITTED ITS FIRST PATIENT IN 1967. THE 1970'S REPRESENTED A PERIOD OF SIGNIFICANT GROWTH FOR JFK. ONE OF THE MOST IMPORTANT HIGHLIGHTS IN ITS HISTORY WAS THE OPENING OF THE JFK JOHNSON REHABILITATION INSTITUTE ("JRI") IN 1974 FOLLOWING A MERGER WITH MIDDLESEX REHABILITATION HOSPITAL. SINCE THAT TIME, JRI HAS FORGED A REPUTATION FOR EXCELLENCE IN PATIENT CARE AND HAS BECOME A NATIONAL LEADER IN PHYSICAL REHABILITATION MEDICINE. JRI WAS ONE OF THE FIRST REHABILITATION CENTERS IN THE NATION TO RECOGNIZE THAT INDIVIDUALS WITH ACQUIRED TRAUMATIC BRAIN INJURY REQUIRE A SPECIALIZED TREATMENT ENVIRONMENT. WITH ITS UNPRECEDENTED, COMPREHENSIVE APPROACH TO CARE, JRI'S CENTER FOR HEAD INJURIES IS REGARDED AS PIONEERING IN HEAD TRAUMA EVALUATION AND TREATMENT. IN ADDITION, JRI'S PEDIATRIC REHABILITATION DEPARTMENT PROVIDES CHILDREN WITH THE ADAPTIVE AND COPING SKILLS THEY NEED TO ACHIEVE SUCCESS IN EVERYDAY LIFE THROUGH PHYSICAL AND OCCUPATIONAL THERAPY. JRI ALSO OFFERS INPATIENT AND DAY REHABILITATION, OUTPATIENT THERAPIES, AND PROSTHETICS AND ORTHOTICS. JFK ALSO OPENED ITS RADIATION THERAPY CENTER AND ITS FAMILY PRACTICE CENTER DURING THIS DECADE. JFK REACHED A SIGNIFICANT MILESTONE IN 1992 WHEN IT OPENED THE NEW JERSEY NEUROSCIENCE INSTITUTE ("INSTITUTE"), WHICH IS A NATIONALLY RECOGNIZED COMPREHENSIVE CENTER FOR THE DIAGNOSIS, TREATMENT, AND STUDY OF NEUROLOGICAL DISEASE. THE INSTITUTE CONTINUES TO ATTRACT TOP NEUROSCIENCE EXPERTS FROM ACROSS THE UNITED STATES. IT ALSO WORKS TO PROMOTE INVESTIGATIVE EFFORTS IN BASIC AND CLINICAL RESEARCH. OTHER SIGNIFICANT ADDITIONS THAT OCCURRED OVER THE PAST THREE DECADES INCLUDED JFK'S CANCER CENTER, WHICH FEATURES STATE-OF-THE-ART CANCER DIAGNOSIS AND TREATMENT CAPABILITIES, HOSPICE CARE AND PARTICIPATION IN NATIONWIDE CANCER RESEARCH NETWORKS; JFK'S OUTPATIENT MEDIPLEX SURGERY CENTER WHICH PROVIDES SAME-DAY PROCEDURES, INCLUDING LASER, ENDOSCOPIC AND ARTHOSCOPIC SURGERY, JFK'S IMAGING CENTER AND BREAST CENTER. BOTH OFFER A FULL RANGE OF DIAGNOSTIC EXAMINATIONS, INCLUDING CAT SCAN AND MRI SERVICES. JFK MEDICAL CENTER CURRENT INFORMATION JFK MEDICAL CENTER ("JFK") IS A 498-BED HOSPITAL CONSISTING OF THE 404-ACUTE CARE BED ANTHONY M. YELENSICS COMMUNITY HOSPITAL AND THE ADJACENT 94-BED JFK JOHNSON REHABILITATION INSTITUTE. JFK FEATURES A COMPLETE ARRAY OF SERVICES, INCLUDING GENERAL SURGERY, EMERGENCY MEDICINE, BEHAVIORAL HEALTH, ORTHOPEDICS, MATERNITY AND PEDIATRIC CARE PROGRAMS. SPECIAL SERVICES AT THE MEDICAL CENTER INCLUDE THE NEW JERSEY NEUROSCIENCE INSTITUTE, A DIAGNOSTIC, TREATMENT, TEACHING AND RESEARCH CENTER FOR THE STUDY OF COMPLEX NEUROLOGICAL DISORDERS; THE REGIONAL CANCER CENTER, OFFERING COMPREHENSIVE MEDICAL, SURGICAL AND RADIATION ONCOLOGY SERVICES; THE JFK DIAGNOSTIC IMAGING CENTER WHICH HOUSES TRADITIONAL AND OPEN AIR MRI CAPABILITIES, HIGH SPEED COMPUTER TOMOGRAPHY (CT), ADVANCED BONE DENSITY TECHNOLOGY, AND THE BREAST CENTER, PROVIDING COMPLETE MAMMOGRAPHY SERVICES INCLUDING FULL-FIELD DIGITAL AND THE R2 IMAGE CHECKER TECHNOLOGY. OTHER SERVICES INCLUDE THE JFK FITNESS CENTER, OCCUPATIONAL HEALTH PROGRAM AND FAMILY MEDICINE CENTER. THE FAMILY MEDICINE CENTER WAS ESTABLISHED IN 1976 AND HAS SERVED THE SURROUNDING COMMUNITIES TO PROVIDE PRIMARY CARE SERVICES TO INSURED AND UNINSURED PATIENTS IN THE SERVICE AREA. STAFFED BY FACULTY AND RESIDENT PHYSICIANS, IT PROVIDES SERVICES WHICH INCLUDE: GENERAL MEDICINE, OB/GYN CARE, PEDIATRIC AND MINOR SURGERY. IN ADDITION, HEALTH EDUCATION/PROMOTION, NUTRITIONAL COUNSELING AND EMOTIONAL SUPPORT PROGRAMS ARE OFFERED. ANNUALLY JFK RECORDS OVER 19,500 ADMISSIONS, OVER 2,700 BIRTHS, AND MORE THAN 60,000 EMERGENCY ROOM VISITS. JFK IS AN AFFILIATE OF SOLARIS HEALTH SYSTEM, A NOT-FOR-PROFIT HEALTH SYSTEM SERVING THE RESIDENTS OF CENTRAL NEW JERSEY WITH STRONG TIES TO THE LOCAL COMMUNITY, ESTABLISHED REGIONAL REPUTATIONS, EXCEPTIONAL EMPLOYEES, A COMMITMENT TO PATIENT SATISFACTION AND QUALITY MEDICAL STAFFS ARE KEY FACTORS THAT BROUGHT THE ORGANIZATIONS TOGETHER IN ORDER TO PROVIDE HIGH QUALITY, COST-EFFECTIVE CARE. SPECIAL SUPPORT SERVICES ARE ALSO AVAILABLE SUCH AS DIAGNOSTIC IMAGING, GERIATRIC CARE AND COMMUNITY HEALTH AND FITNESS PROGRAMS. THROUGH COMMUNITY OUTREACH, JFK OFFERS HEALTH AND WELLNESS PROGRAMS, SCREENINGS, LECTURES AND EDUCATIONAL SEMINARS TO MORE THAN 15,000 AREA RESIDENTS ANNUALLY. THE HAROLD B. AND DOROTHY A. SNYDER SCHOOLS OF NURSING, RADIOGRAPHY, NUCLEAR MEDICINE TECHNOLOGY, RADIATION THERAPY AND DIAGNOSTIC MEDICAL SONOGRAPHY ARE OPERATED BY AND FOR PURPOSES OF ACADEMIC ACCREDITATION, SPONSORED BY JFK. THE SCHOOLS CARRY ON A LONG TRADITION OF EDUCATING FUTURE HEALTH CARE PROFESSIONALS WITH MORE THAN 300 STUDENTS ENROLLED IN THE FIVE SCHOOLS ANNUALLY. THE SCHOOL OFFERS STUDENTS ACCESS TO SOLARIS HEALTH SYSTEM'S STATE-OF-THE-ART EQUIPMENT AND EXPANSIVE CLINICAL FACILITIES. JFK MEDICAL CENTER VISION WE WILL BE RECOGNIZED FOR BEING RESPONSIVE AND SENSITIVE TO COMMUNITY NEEDS, EXTENDING BEYOND OUT TRADITIONAL BOUNDARIES, IN ORDER TO ACHIEVE HIGHER LEVELS OF COMMUNITY HEALTH AND ACCESS. WE WILL BE RECOGNIZED FOR A CULTURE DRIVEN BY TRUST, IN WHICH DEDICATED, CARING AND COMPASSIONATE INDIVIDUALS WORK TOGETHER WITH FAMILIES TO OVERCOME HEALTH CARE CHALLENGES. WE WILL BE RECOGNIZED FOR HIGH QUALITY SERVICES AND OUTSTANDING SAFETY PERFORMANCE BASED UPON NATIONAL STANDARDS. WE WILL BE RECOGNIZED AS AN EMPLOYER THAT EMPHASIZES PROFESSIONAL AND PERSONAL DEVELOPMENT IN ORDER TO MAXIMIZE THE POTENTIAL OF EVERY INDIVIDUAL. WE WILL BE RECOGNIZED FOR CLINICAL SUPERIORITY THROUGH THE EXPERTISE OF OUR MEDICAL STAFF AND THE CONTINUED APPLICATION OF CUTTING-EDGE TECHNOLOGIES. JFK MEDICAL CENTER DEMOGRAPHICS JFK MEDICAL CENTER IS LOCATED IN EDISON - AN URBAN/SUBURBAN AREA OF MIDDLESEX COUNTY. ONE OF THE FASTEST GROWING COUNTIES IN THE STATE, MIDDLESEX COUNTY IS THE THIRD LARGEST COUNTY IN NEW JERSEY WITH MORE THAN 809,000 RESIDENTS. DESCRIBE THE ORGANIZATION'S MISSION OR MOST SIGNIFICANT ACTIVITIES. FORM 990, PART I, QUESTION 1 WE ARE COMMITTED TO EXCELLENCE IN PROVIDING QUALITY AND COMPASSIONATE HEALTHCARE SERVICES TO OUR DIVERSE COMMUNITIES. DESCRIPTION ON WHY THE RETURN WAS NOT TIMELY FILED EXTENSION AWAITING INFORMATION FROM THIRD PARTIES NECESSARY TO FILE A COMPLETE AND ACCURATE RETURN. METHOD EMPLOYED IN THE DETERMINATION OF ESTIMATED HOURS PER WEEK. FORM 990, PART VII DURING THE ANNUAL BUDGET PROCESS, THE FINANCE DEPARTMENT PERFORMS AN ANALYSIS OF THE EXECUTIVE LEVEL EMPLOYEES TIME ALLOCATION FROM TIME KEEPING RECORDS. THE APPROPRIATE ADJUSTMENTS ARE MADE TO THE TIME ALLOCATIONS AT THAT TIME. THE OFFICERS AND KEY EMPLOYEES OF SOLARIS HEALTH SYSTEM HOURS PER WEEK ARE ALLOCATED AMONG MANY OF THE RELATED ORGANIZATIONS. SCHEDULE R, PART V, LINE 1N SOLARIS HEALTH SYSTEM MAINTAINS A MASTER EMPLOYEE LEASING AGREEMENT THAT PROVIDES FOR THE LEASING OF PERSONNEL TO AND FROM VARIOUS SOLARIS ENTITIES. SCHEDULE K, PART I NEW MONEY -- $21,892,468.25 FOR VARIOUS CAPITAL IMPROVEMENTS TO JFK MEDICAL CENTER, INCLUDING, BUT NOT LIMITED TO, EXPANSION OF INPATIENT BED CAPACITY AND UNIT RENOVATIONS, EMERGENCY ROOM EXPANSION, OPERATING ROOM RENOVATIONS AND EXPANSION, RELOCATION OF SUPPORT DEPARTMENTS, CONVERSION OF HVAC SYSTEM AND OTHER NECESSARY EXPANSIONS, RENOVATIONS AND IMPROVEMENTS, AND THE REFINANCING OF VARIOUS SERIES OF BONDS ISSUED ON BEHALF OF, AND OTHER INDEBTEDNESS OF, JFK MEDICAL CENTER, HARTWYCK AT OAK TREE AND MUHLENBERG REGIONAL MEDICAL CENTER, AS DESCRIBED BELOW, ALL IN CONNECTION WITH THE TERMINATION OF THE PROVISION OF HOSPITAL ACUTE CARE SERVICES AT MUHLENBERG REGIONAL MEDICAL CENTER AND PURSUANT TO THE STATE'S HOSPITAL ASSET TRANSFORMATION PROGRAM. CURRENT REFUNDINGS: 1995 BONDS $17,670,697 1998 BONDS $36,114,765 2003 BONDS $33,137,809 2005 BONDS $17,935,000 LINE OF CREDIT $6,571,000 CAPITALIZED INTEREST -- 1,761,145 COSTS OF ISSUANCE- -- 1,946,274 SCHEDULE K, PART III THE PRIVATE BUSINESS PART OF SCHEDULE K IS NOT APPLICABLE. SEE ABOVE EXPLANATION. FORM 990, PART III, QUESTION 2 IN NOVEMBER 2009, JFK MEDICAL CENTER TOOK OVER THE OPERATIONS OF THE ADULT DAY CARE CENTER FROM ITS AFFILIATE HARTWYCK AT OAK TREE. FORM 990, PART VI, SECTION A, LINE 7A WHILE THE MEMBER CANNOT ELECT OR APPOINT ONE OR MORE MEMBERS OF THE GOVERNING BODY, ALL BOARD APPOINTMENTS ARE SUBJECT TO APPROVAL BY THE MEMBER. THE DIRECTORS, OTHER THAN EX-OFFICIO DIRECTORS, ARE ELECTED BY A VOTE OF THE BOARD AT THE ANNUAL MEETING OF THE CORPORATION. THE DIRECTOR MEMBERSHIP COMMITTEE SHALL NOMINATE A SLATE OF DIRECTORS TO SERVE AS OFFICERS TO REPLACE OR REELECT THOSE OFFICERS WHOSE TERMS ARE ENDING. DEFINITION OF EX-OFFICIO FORM 990, PART VII PEOPLE WHO HOLD A POSITION BY VIRTUE OF THEIR OFFICE SOLARIS HEALTH SYSTEM INC 98 JAMES STREET EDISON NJ 08820 222421432 TO FURTHER COMMUNITY HEALTHCARE. NJ 501(C)(3) 509(A)(3) - TYPE 1 0 MUHLENBERG REGIONAL MEDICAL CENTER INC 98 JAMES STREET EDISON NJ 08820 221487258 HOMECARE NJ 501(C)(3) 509(A)(2) SOLARIS 0 MUHLENBERG FOUNDATION INC 98 JAMES STREET EDISON NJ 08820 510212678 FUNDRAISING ENTITY TO SUPPORT MRMC AND ITS NOT-FOR-PROFIT AFFILIATES NJ 501(C)(3) 509(A)(3) - TYPE 1 SOLARIS 0 JFK MEDICAL CENTER FOUNDATION INC 98 JAMES STREET EDISON NJ 08820 222315044 ENGAGE IN PROGRAMS AND ACTIVITIES FOR THE BENEFIT OF JFK MEDICAL CENTER. NJ 501(C)(3) 509(A)(3) - TYPE 1 SOLARIS 0 JFK HEALTH SYSTEMS REALTY CORPORATION 98 JAMES STREET EDISON NJ 08820 521703518 INACTIVE. NJ 501(C)(25) 509(A)(3) - TYPE 1 SOLARIS 0 LIFESTYLE INSTITUTE INC 98 JAMES STREET EDISON NJ 08820 222421433 PROVIDE COMMUNITY HEALTHCARE SERVICES. NJ 501(C)(3) 509(A)(2) SOLARIS 0 HARTWYCK WEST NURSING HOME INC 98 JAMES STREET EDISON NJ 08820 221802017 PROVIDE COMMUNITY HEALTHCARE. NJ 501(C)(3) 509(A)(2) SOLARIS 0 JFK ASSISTED LIVING 98 JAMES STREET EDISON NJ 08820 223715324 PROMOTE THE HEALTH OF THE COMMUNITY NJ 501(C)(3) 509(A)(2) HARTWYCK WEST 0 HARTWYCK AT OAK TREE INC 98 JAMES STREET EDISON NJ 08820 222666023 PROVIDE COMMUNITY HEALTHCARE. NJ 501(C)(3) 509(A)(2) SOLARIS 0 HARTWYCK AT JFK INC 98 JAMES STREET EDISON NJ 08820 204144804 PROVIDE COMMUNITY HEALTHCARE. NJ 501(C)(3) 509(A)(2) SOLARIS 0 MANAGEMENT SERVICES ORGANIZATION OF CENTRAL JERSEY LLC 98 JAMES STREET EDISON NJ 08820 223489091 INACTIVE. NJ SOLARIS RELATED 0 0 MEDIPLEX SURGICAL CENTER ASSOCIATION LP 98 JAMES STREET EDISON NJ 08820 222846980 RENTALS. NJ JFK HEALTHSHARE INC EXCLUDED 0 0 TRI-COUNTY HEART NJ LLC 98 JAMES STREET EDISON NJ 08820 261104379 PROVIDE COMMUNITY HEALTH CARE. NJ SOLARIS RELATED 0 0 ATLANTIC INSURANCE EXCHANGE LTD 98 JAMES STREET EDISON NJ 08820 999999999 INSURANCE CAPTIVE BD SOLARIS C CENTRAL JERSEY MEDICAL GROUP PA 98 JAMES STREET EDISON NJ 08820 223477610 INACTIVE NJ MRMC C JFK MEDICAL GROUP PC 98 JAMES STREET EDISON NJ 08820 223482637 CAPTIVE PROFESSIONAL MEDICAL SERVICES NJ JFKMC C 47040 1.00000 JFK HARTWYCK MGT & CONSULTING INC 98 JAMES STREET EDISON NJ 08820 223812130 INACTIVE NJ HARTWYCK WEST C JFK HEALTHSHARE INC 98 JAMES STREET EDISON NJ 08820 222528967 MANAGEMENT SERVICES NJ SOLARIS C MIDTOWN SHOPS INC 98 JAMES STREET EDISON NJ 08820 221536954 RETAIL COMPLEX NJ MRMC C PRIMARY CARE NETWORK 98 JAMES STREET EDISON NJ 08820 522069919 PHYSICIAN HEALTH ORGANIZATION NJ JFKMC C -1466 219336 1.00000 1 0 1 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 HARTWYCK AT OAK TREE INC A 1076500 CASH SOLARIS HEALTH SYSTEM INC C 70000 CASH JOHN F KENNEDY MEDICAL CENTER FOUNDATION INC C 353821 CASH MUHLENBERG REGIONAL MEDICAL CENTER INC P 9088249 INTERCOMPANY ACCOUNT MUHLENBERG REGIONAL MEDICAL CENTER INC J 1029192 CASH SOLARIS HEALTH SYSTEM INC O 720000 INTERCOMPANY ACCOUNT JFK HEALTHSHARE INC J 375864 CASH HARTWYCK AT OAK TREE INC P 4983784 INTERCOMPANY ACCOUNT HARTWYCK WEST NURSING HOME INC P 880000 INTERCOMPANY ACCOUNT SOLARIS HEALTH SYSTEM INC P 1545333 INTERCOMPANY ACCOUNT LIFESTYLE INSTITUTE INC P 520000 INTERCOMPANY ACCOUNT JOHN F KENNEDY MEDICAL CENTER FOUNDATION INC P 176179 INTERCOMPANY ACCOUNT MUHLENBERG REGIONAL MEDICAL CENTER FOUNDATION INC P 363486 INTERCOMPANY ACCOUNT JFK ASSISTED LIVING P 588000 INTERCOMPANY ACCOUNT MUHLENBERG REGIONAL MEDICAL CENTER INC A 933006 CASH MUHLENBERG REGIONAL MEDICAL CENTER INC C 214241 CASH LIFESTYLE INSTITUTE INC C 115000 CASH SCHEDULE R, PART IV DR. WILLIAM OSER IS THE LEGAL OWNER OF JFK MEDICAL GROUP. JFK MEDICAL CENTER IS THE BENEFICIAL OWNER.