2011-11-09T13:15:43-06:00 2010-12-31 DELOITTE TAX LLP TWO JERICHO PLAZA JERICHO NY 11753 990 2010-01-01 111839567 LUTHERAN MEDICAL CENTER LUTH 7186307100 150 55TH STREET BROOKLYN NY 11220 RICHARD LANGFELDER 7186307100 2011-11-08 1 5169187000 2010 2016-03-07 17:11:31Z RICHARD LANGFELDER 150 55TH STREET BROOKLYN NY 112202559 396686996 0 X WWW.LUTHERANMEDICALCENTER.COM X 1955 NY SEE SCHEDULE O 31 30 3901 551 98427 -918 10927559 10374768 351349998 367456000 527535 1077154 24177195 17364028 386982287 396271950 130802 188401 0 0 211646195 224978699 0 60000 392887 155492088 161059910 367269085 386287010 19713202 9984940 281436579 288082579 231897532 233059349 49539047 55023230 X SEE SCHEDULE O 0 0 84939994 0 95342478 SEE SCHEDULE O 21958457 0 14868298 SEE SCHEDULE O 7304487 0 8021840 SEE SCHEDULE O 167739246 0 264985241 A FULL DESCRIPTION OF THE NUMEROUS AND VARIED OTHER HEALTHCARE SERVICES PROVIDED BY LUTHERAN MEDICAL CENTER ARE CONTAINED IN THE ORGANIZATION'S 2010 ANNUAL REPORT, WHICH IS PUBLISHED ON THE HOSPITAL'S WEBPAGE AT WWW.LUTHERANMEDILCALCENTER.COM/DATA/DOCUMENTS/LHCANNUALREPORT2010.PDF 167739246 264985241 281942184 1 1 0 1 0 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 1 1 0 1 0 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 1 486 0 1 3901 1 1 1 0 0 0 0 1 1 0 0 0 0 X 31 30 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X LUTHERAN MEDICAL CENTER 7186307100 150 55TH STREET BROOKLYN NY 112202559 X WENDY Z GOLDSTEIN 35.00 X X 963111 0 302656 THOMAS J EDWARDS 1.00 X 0 0 0 KRISTINE M GEBBIE RN DR OF PH 1.00 X 0 0 0 GENEVIEVE GO MD 1.00 X 0 0 0 EMMA GRAEBER-PORTER 1.00 X 0 0 0 BRENDA GRANDELL 1.00 X 0 0 0 MIRIAM KATOWITZ 1.00 X 0 0 0 JOSEPH LODATO 1.00 X 0 0 0 LORETTA LUNDBERG 1.00 X 0 0 0 BARBARA LUNDBLAD 1.00 X 0 0 0 GERALD LUTERMAN 1.00 X 0 0 0 VIOLETA MAYA 1.00 X 0 0 0 REV CRAIG MILLER 1.00 X 0 0 0 GEORGE RENERT 1.00 X 0 0 0 BISHOP ROBERT RIMBO 1.00 X 0 0 0 VINCENT ROHAN 1.00 X 0 0 0 CAROL KNUTH SAKOIAN 1.00 X 0 0 0 DANNY TSOI 1.00 X 0 0 0 REV JEANNE WARFIELD 1.00 X 0 0 0 REV SAMUEL FOOK WONG 1.00 X 0 0 0 KATHRYN S WYLDE 1.00 X 0 0 0 LYNDA ANDERSON 1.00 X 0 0 0 MARTHA BAKOS DIETZ 1.00 X 0 0 0 ANGELA MARTINEZ 1.00 X 0 0 0 DARIN MCATEE 1.00 X 0 0 0 LAWRENCE DIGIOVANNA 1.00 X 0 0 0 MARTHA WOLFGANG 1.00 X 0 0 0 MARIA CARLSON 1.00 X 0 0 0 DALE C CHRISTENSEN JR ESQ 1.00 X 0 0 0 FRANK COMERFORD 1.00 X 0 0 0 DAVID ROMMEREIM 1.00 X 0 0 0 BARBARA ARKY 35.00 X 385462 0 52878 RICHARD LANGFELDER 35.00 X 532836 0 49116 CLAUDIA CAINE 35.00 X 713706 0 39021 BETH RAUCHER MD 35.00 X 416886 0 55920 STEVE ART 35.00 X 257924 0 35615 MYLES DAVIS 35.00 X 272431 0 30492 GEORGE MARTIN MD 35.00 X 640486 0 31458 MICHAEL PARKS 35.00 X 287257 0 43922 ROSANNE RASO 35.00 X 297683 0 43483 FRANK SCHEETS 35.00 X 312666 0 68123 KAREN LENNON 35.00 X 249556 0 41404 CANDACE FINKELSTEIN 35.00 X 354683 0 42575 AUDREY SAITTA MD 40.00 X 524654 0 41767 IFFATH HOSKINS MD 40.00 X 441075 0 10506 SAVITRI BIRLA MD 40.00 X 312322 0 35125 CLAUDIA LYON MD 40.00 X 307201 0 36399 7269939 0 960460 440 0 1 0 LMC PHYSICIAN SERVICES 150 55TH ST BROOKLYN NY 11220 PHYSICIAN SERVICES 16422681 UNIVERSITY PHYSICIANS OF BROOKLYN 450 CLARKSON AVE BROOKLYN NY 11203 PHYSICIAN SERVICES 6463463 NES HEALTHCARE GROUP 3724 NATIONAL DR STE 109 RALEIGH NC 27612 PHYSICIAN SERVICES 4160594 SHORE ROAD RADIOLOGY 150 55TH ST BROOKLYN NY 11220 PHYSICIAN SERVICES 2825122 GEORGE FERZLI 65 CROMWELL AVE STATEN ISLAND NY 10304 PHYSICIAN SERVICES 2679143 65 560390 15500 9798878 10374768 PATIENT SERVICE REVENU 622110 213817799 213817799 MEDICARE PAYMENTS 923130 115954687 115954687 MEDICAID PAYMENTS 923130 37683514 37683514 367456000 814996 814996 602650 602650 602650 49293 553357 262158 262158 262158 262158 644573 560390 415046 229527 229527 NEIGHBORHOOD HEALTH CE 621498 11702712 11702712 MEDICAL EDUCATION PROG 900099 1574802 1574802 ADMINISTRATIVE SERVICE 900099 720860 720860 2533477 2484343 49134 16531851 396271950 383217857 98427 2580898 188401 188401 6104657 4700586 1326073 77998 164050258 126965347 36933082 151829 12878443 9965339 2897754 15350 28924070 22381445 6502816 39809 13021271 10075859 2929324 16088 1331475 17353 1314122 1191567 1140823 50744 214937 214937 174114 174114 60000 60000 72862 72862 403647 40001 363646 42590328 38950017 3640311 462204 146470 308921 6813 5746324 508278 5238046 109914 40221 69693 125372 56952 68420 3221077 3221077 10448556 8085096 2363460 18707928 14476195 4231733 PHYSICIAN PAYMENTS 29236032 29236032 BAD DEBTS 20782316 20782316 PURCHASED SERVICES 13624912 7724406 5900506 REPAIRS AND MAINTENANCE 6197189 3346041 2851148 EQUIP GRANT EXPS 1799942 1799942 4619214 1923266 2670948 25000 386287010 281942184 103951939 392887 3995 5518 21532220 15630482 5129870 2689265 44352856 47113211 3384881 4201200 4503653 7420461 316089677 210196312 95728665 105893365 38502369 42058875 16565352 13577030 1718033 1509253 50014685 47983919 281436579 288082579 45593146 50334563 85580 3217484 64996410 60271003 11610778 12392705 109611618 106843594 231897532 233059349 X 45850097 52366246 3380966 2349000 307984 307984 49539047 55023230 281436579 288082579 X 9984940 -4500757 X 0 1 1 X 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 0 1 14483 0 0 1 51041 1 45932 1 174114 285570 0 EXPLANATION OF OTHER LOBBYING ACTIVITIES: PART II-B, LINE 1I: THE HOSPITAL HAS MEMBERSHIP WITH CERTAIN HOSPITAL GROUPS AND/OR ASSOCIATIONS TO WHICH IT PAYS DUES AND THESE ORGANIZATIONS INCLUDING THE GREATER NEW YORK HOSPITAL ASSOCIATION (GNYHA), THE HOSPITAL ASSOCIATION OF NEW YORK (HANYS) AND THE HEALTHCARE EDUCATION PROJECT ENGAGED IN LOBBYING ACTIVITIES. PART II-B LN 1A-1H: LUTHERAN MEDICAL CENTER EMPLOYS A PERSON WHO AS PART OF HER FUNTION ADVOCATES AND LOBBIES IN ALBANY ON BEHALF OF THE HOSPITAL WITH RESPECT TO GOVERNMENTAL POLICIES AND LEGISLATION IMPORTANT TO LMC. 1575733 1575733 130873750 84625836 46247914 13509733 2666976 10842757 158981544 122819491 36162053 11148917 84009 11064908 105893365 DUE FROM AFFILIATES 11473071 OTHER RECEIVABLES & ASSETS 1831323 OTHER ASSETS 15978665 EST REC FROM 3RD PARTY PAYORS 18700860 47983919 ACCRUED PENSION LIABILITY 46693301 DUE TO AFFILIATES 14616860 DUE TO THIRD PARTY PAYORS 33884878 OTHER LONG TERM LIABILITIES 286551 RESERVE FOR SELF INSUR CLAIMS 11362004 106843594 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: FIN 48 FOOTNOTE IN 2006, THE FASB ISSUED FASB INTERPRETATION (FIN) NO. 48, ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES- AN INTERPRETATION OF FASB STATEMENT NO. 109. FIN NO. 48 CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN AN ENTITY'S FINANCIAL STATEMENTS IN ACCORDANCE WITH FASB STATEMENT NO. 109, ACCOUNTINF FOR INCOME TAXES. IT PRESCRIBES AN UNCERTAINTY THRESHOLD AND MEASUREMENT ATTRIBUTES FOR FINANCIAL STATEMENT DISCLOSURE OF TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN ON A TAX RETURN. LUTHERAN HEALTHCARE ADOPTED FIN NO. 48 IN 2007. THE IMPACT OF ADOPTING FIN NO. 48 WAS NOT MATERIAL. X X X X X 1 SUSAN SHAPIRO ASSOCIATES LLC 245 5TH AVENUE NEW YORK NY 100168716 FUNDRAISING 0 326988 66166 260822 326988 66166 260822 DINNER DANCE 962209 344404 617805 0 0 0 0 0 376375 JOURNAL 215986 215986 0 0 0 0 0 27667 26768 0 26768 0 0 0 0 0 11004 1204963 560390 644573 415046 415046 229527 1 1 0 1 X 1 0 1 1 15117099 7176394 7940705 0.02060 137838082 118473133 19364949 0.05010 614082 467516 146566 0.00040 153569263 126117043 27452220 0.07110 114166 0 114166 0.00030 29358504 12189822 17168682 0.04440 8953055 0 8953055 0.02320 253311 0 253311 0.00070 190833 0 190833 0.00050 38869869 12189822 26680047 0.06910 192439132 138306865 54132267 0.14020 0 0 0.00000 0 0 0.00000 12325 0 12325 0.00000 0 0 0.00000 0 0 0.00000 114812 0 114812 0.00030 19677 0 19677 0.00000 0 0 0.00000 0 0 0.00000 146814 146814 0.00030 0 13028236 1824943 134940771 133123653 1817118 1 1 1 1 LUTHERAN MEDICAL CENTER

150 55TH STREET BROOKLYN NY 11220

X X X X PSYCHIATRIC & REHAB EXCLUDED UNITS NA 1 0 0 0 0 0 0 0 0 0 0 0 PART I, LINE 3C LUTHERAN MEDICAL CENTER USES THE FEDERAL POVERTY GUIDELINES (FPG) TODETERMINE ELIGIBILITY FOR DISCOUNTED CARE TO LOW-INCOME PATIENTS. PART I. LINE 6A LUTHERAN MEDICAL CENTER IS REQUIRED TO PREPARE AN ANNUAL COMMUNITYSERVICE PLAN (CSP) A.K.A., THE COMMUNITY BENEFIT REPORT FOR THE NYSDEPARTMENT OF HEALTH. THIS REPORT IS FILED WITH THE NYS DOH AND ISPUBLISHED IN ITS ENTIRETY ON OUR WEB SITE(WWW.LUTHERANHEALTHCARE.ORG) AND A SUMMARY DOCUMENT THAT INCLUDES OUR COMMITMENT TO PUBLIC HEALTH PROGRAMS AND FINANCIAL ASSISTANCE IS ALSOPOSTED. ADDITIONALLY, LUTHERAN POSTS INFORMATION REGARDING FINANCIALASSISTANCE PROGRAMS AND INTENDS TO ADD PROGRAMMATIC INFORMATION AS ITBECOMES AVAILABLE REGARDING PREVENTION AGENDA INITIATIVES. LUTHERANPROVIDES INFORMATION TO THE PUBLIC IN OUR PATIENT GUIDES, POSTERS ANDFINANCIAL ASSISTANCE BROCHURES; ALL ARE AVAILABLE THROUGHOUT THEHEALTH CARE SYSTEM, COPIES OF THE CSP WERE MAILED TO ALL COMMUNITYPARTNERS. PART I, LINE 7G LUTHERAN MEDICAL CENTER ("LMC") CONTROLS SEVERAL AFFILIATEDTAX-EXEMPT PHYSICIAN GROUPS THAT, PURSUANT TO A SERVICE AGREEMENT,PROVIDE TEACHING, ADMINISTRATIVE, SUPERVISORY AND DIRECT PATIENT CARESERVICES TO LMC'S PATIENTS. LMC PAYS THESE PHYSICIAN GROUPS FORTHEIR SERVICES AT FAIR MARKET VALUE. LMC ALSO PROVIDES A MISSIONSUPPORT PAYMENT TO THE PHYSICIAN GROUPS TO RECOGNIZE THEUN-REIMBURSED CHARITY CARE AND UNDER-REIMBURSED MEDICAID SERVICES THEGROUPS PROVIDE TO LMC PATIENTS IN SUPPORT OF LMC'S MISSION. IN 2010LMC PAID THE LMC PC'S $8,953,055.00 FOR PHYSICIAN RELATEDUN-REIMBURSED AND UNDER-REIMBURSED SERVICES PROVIDED TO CHARITY CAREAND MEDICAID PATIENTS. PART I, LINE 7, COLUMN F LUTHERAN MEDICAL CENTER HAS INCLUDED BAD DEBT EXPENSE IN THE AMOUNTOF $20,782,000 ON THE FORM 990, PART IX, LINE 25. THIS AMOUNT ISEXCLUDED FOR PURPOSES OF CALCULATING THE PERCENTAGE IN SCHEDULE H,PART I, LINE 7 (F) AS PER THE INSTRUCTIONS. PART I, LINE 7 LUTHERAN MEDICAL CENTER USED VARIOUS COSTING METHODS IN CALCULATINGTHE AMOUNTS LISTED ON PART I, LINE 7. LMC UTILIZED FIGURES FROM ITSPOWERHEALTH DECISION SUPPORT SYSTEM WHICH FIGURES COSTS BASED ON ACOST ACCOUNTING SYSTEM. FOR HEALTH PROFESSIONS EDUCATION, LMC WASABLE TO SHOW COSTING DATA PREPARED FOR THE NYS DOH AND GME DATA. PART II: LUTHERAN HEALTHCARE HAS NO REASON FOR BEING OF ITS OWN; IT EXISTS ONLY TO SERVE THE NEEDS OF ITS NEIGHBORS. LUTHERAN HEALTHCARE DEFINES HEALTH AS THE TOTAL WELL BEING OF THE COMMUNITY AND ITS RESIDENTS. BEYOND THE ABSENCE OF INDIVIDUAL PHYSICAL ILLNESS, THIS INCLUDES, AT LEAST, DECENT HOUSING, THE ABILITY TO COMMUNICATE EFFECTIVELY, EMPLOYMENT AND EDUCATIONAL OPPORTUNITIES, AND CIVIC PARTICIPATION. LUTHERAN HEALTHCARE UNDERSTANDS A HOSPITAL IS NOT A COLLECTION OF BUILDINGS, MACHINES AND BEDS, BUT A STAFF OF TALENTED, CREATIVE AND COMMITTED PEOPLE WHO SERVE THE COMMUNITY AS THEY ARE NEEDED. LUTHERAN HEALTHCARE WORKS IN PARTNERSHIP WITH ITS NEIGHBORS, EACH RELYING ON THE OTHER AS FRIENDS WHO CARE ABOUT AND ASSIST EACH OTHER. MOTIVATED TO SERVE BY ITS OWN HISTORY WITHIN THE BIBLICAL TRADITION OF FAITH AND TEACHING, AND ORGANIZED AS A NOT-FOR-PROFIT ORGANIZATION ACCORDING TO THE UNIQUELY AMERICAN HERITAGE OF DEMOCRATIC VOLUNTARY ASSOCIATIONS, LUTHERAN HEALTHCARES PURPOSE IS TO SERVE AS THE CORPORATE VEHICLE FOR ITS TRUSTEES, MEDICAL AND DENTAL STAFF, NURSES, EMPLOYEES, VOLUNTEERS AND OTHERS TO CARE FOR THE NEEDS OF OUR NEIGHBORS.LUTHERAN HEALTHCARE MISSION STATEMENTLUTHERAN HEALTHCARES MISSION STATEMENT MAKES CLEAR ITS COMMITMENT TOWARD PROVIDING SERVICES TO THOSE WE SERVE. FOR 128 YEARS, THIS COMMITMENT TO SERVE IS THE SOLID FOUNDATION ON WHICH LUTHERAN EXISTS AND ON WHICH IT MEASURES ITS SUCCESS. IN FACT, LUTHERAN HEALTHCARES SYSTEM INCLUDES MULTIPLE ORGANIZATIONS ALL OF WHICH WERE CREATED IN RESPONSE TO AN URGENT NEED WITHIN OUR GROWING, DIVERSE AND EVER CHANGING COMMUNITIES. THROUGHOUT ITS HISTORY, LHCS DIVERSITY HAS ALWAYS REFLECTED THE CONTINUOUS GROWTH AND CHANGE THAT HAS CHARACTERIZED ITS SERVICE AREA. TODAY, LHC OPERATES A ROBUST DEPARTMENT OF CULTURAL COMPETENCE, WHICH WORKS TO ELIMINATE CULTURAL BARRIERS TO CARE. THE DEPARTMENT ENSURES THAT SERVICES ARE ACCESSIBLE IN ALL FIVE OF THE MAJOR LANGUAGES FOUND WITHIN THE SERVICE AREA. IN ADDITION, LHC EMPLOYS A TEAM OF COMMUNITY LIAISONS REPRESENTING THE ARABIC, CHINESE AND ORTHODOX JEWISH COMMUNITIES, WHO ACT AS CONDUITS BETWEEN PATIENTS, CLINICAL PROVIDERS, AND MEMBERS OF THE COMMUNITY, TO ASSIST PATIENTS AS THEY NAVIGATE THROUGH THE SYSTEM. PATIENT REPRESENTATIVES WHO SPEAK CANTONESE, RUSSIAN, SPANISH AND ARABIC HAVE BEEN RECRUITED TO PROVIDE MEDICAL INTERPRETING AND ADVOCACY. TRAINING IN MEDICAL INTERPRETING FOR BILINGUAL STAFF, CULTURAL DIVERSITY TRAINING, AND SKILLS DEVELOPMENT IN CROSS-CULTURAL CARE GIVING ARE ONGOING, FUNDED THROUGH BOTH PUBLIC AND PRIVATE SOURCES. LHC CONTINUES TO WORK CLOSELY WITH COMMUNITY MEMBERS AND LEADERSHIP FROM ITS ETHNIC NEIGHBORHOODS TO ASSURE COMMUNITY VOICE AND PARTICIPATION IN ITS PROGRAMS, AND TO PURSUE THE HIGHEST DEGREE OF CULTURALLY COMPETENT SERVICES TO AFFORD THE BEST CLINICAL OUTCOMES.LFHC APPLIED FOR AND RECEIVED LEVEL 3 PATIENT-CENTERED MEDICAL HOME RECOGNITION STATUS FOR EIGHT OF ITS FAMILY HEALTH CENTER SITES IN 2010 BY THE NATIONAL COMMITTEE FOR QUALITY ASSURANCE (NCQA). THIS RELATIONSHIP WILL FOSTER A MORE COLLABORATIVE APPROACH BETWEEN THE PATIENT AND THE PRIMARY CARE TEAM TO PROACTIVELY MANAGE INDIVIDUAL HEALTH THROUGH A WHOLE-PERSON ORIENTATION, ENHANCING COMMUNICATION TO INCREASE COMPLIANCE WITH FOLLOW-UP APPOINTMENTS, AND IMPROVE THE OVERALL QUALITY OF PRIMARY AND PREVENTIVE CARE. THE LFHC FAMILY SUPPORT CENTER OFFERS AN INTEGRATIVE APPROACH TO COMMUNITY-BASED SERVICES. DESIGNED TO SUPPORT COMMUNITY-BUILDING AND FAMILY STRENGTHENING, THE CENTER PROVIDES A HOST OF CULTURALLY COMPETENT SERVICES INCLUDING ADULT AND FAMILY EDUCATION CLASSES, MENTAL HEALTH COUNSELING FOR CHILDREN AND FAMILIES IN TRAUMA THROUGH ITS HEALTHY CONNECTIONS PROGRAM, ADULT AND FAMILY EDUCATION, WIC NUTRITION SERVICES, PEDIATRIC LITERACY SERVICES THROUGH THE REACH OUT AND READ PROGRAM, AND VOLUNTEERISM AND LEADERSHIP DEVELOPMENT THROUGH LFHCS AMERICORPS PROGRAM, THE SUNSET PARK COMMUNITY HEALTHCORPS. AT THE CENTER'S CORE IS THE FAMILY SUPPORT SERVICES (FSS) PROGRAM, WHICH SERVES AS THE HUB FOR OUTREACH, EDUCATION, SUPPORTIVE COUNSELING, AND CARE MANAGEMENT. FSS UTILIZES A CARE MANAGEMENT MODEL TO PROVIDE A HOST OF SUPPORTIVE SERVICES TO CLIENTS INCLUDING SHORT-TERM COUNSELING, INFORMATION AND REFERRAL, IMMIGRATION COUNSELING, CAREER COUNSELING, ADVOCACY, LIFE SKILLS WORKSHOPS AND ASSISTANCE WITH ENROLLMENT IN ENTITLEMENTS AND PUBLIC BENEFITS. THE FAMILY SUPPORT CENTER SERVES OVER 5,500 PARTICIPANTS (CONT.) PART III, LINE 4 2010 LUTHERAN HEALTHCARE AUDITED FINANCIAL STATEMENT NOTE REGARDINGBAD DEBT AND CHARITY CARE:LUTHERAN MEDICAL CENTER OPERATES A 468-BED HOSPITAL AND IS ACO-OPERATOR WITH LUTHERAN FAMILY HEALTH CENTERS (LFHC, AN LMCAFFILIATE) OF A NETWORK OF NINE (9) NEIGHBORHOOD PRIMARY CARE SITES, 28 SCHOOL-BASED HEALTH CLINICS THAT PROVIDE A COMBINATION OF MEDICAL,BEHAVIORAL HEALTH AND DENTAL SERVICES, FIVE COMPREHENSIVE DENTALSITES, AND NUMEROUS SOCIAL SUPPORT AND ENABLING SERVICES THAT PROVIDEAPPROXIMATELY 530,000 MEDICAL AND DENTAL VISITS ANNUALLY.THE MISSION OF LUTHERAN HEALTHCARE IS AS FOLLOWS:A. LUTHERAN HEALTHCARE EXISTS ONLY TO SERVE THE NEEDS OF ITSNEIGHBORS.B. LUTHERAN HEALTHCARE DEFINES HEALTH AS THE TOTAL WELL-BEING OFTHE COMMUNITY AND ITS RESIDENTS. BEYOND THE ABSENCE OF INDIVIDUALPHYSICAL ILLNESS, THIS INCLUDES, AT LEAST, DECENT HOUSING, THEABILITY TO SPEAK ENGLISH, EMPLOYMENT AND EDUCATIONAL OPPORTUNITIES,AND CIVIC PARTICIPATION.C. LUTHERAN HEALTHCARE UNDERSTANDS THAT A HOSPITAL IS NOT ACOLLECTION OF BUILDINGS, MACHINES, AND BEDS, BUT A STAFF OF TALENTED,CREATIVE, AND COMMITTED PEOPLE WHO SERVE THE COMMUNITY AS THEY ARENEEDED.D. LUTHERAN HEALTHCARE WORKS WITH ITS NEIGHBORS, EACH RELYINGON THE OTHER AS FRIENDS WHO CARE ABOUT AND ASSIST EACH OTHER.IN KEEPING WITH THIS MISSION, LUTHERAN HEALTHCARE PROVIDES MEDICAL CARE TO ALL PATIENTS, REGARDLESS OF THEIR ABILITY TO PAY. PATIENTS ARE NOTIFIED OF THE AVAILABILITY OF FREE AND REDUCED PRICE CARE, AND PATIENTS ARE EVALUATED FOR CHARITY CARE IN ACCORDANCE WITH ESTABLISHED POLICIES. IN ADDITION, LUTHERAN HEALTHCARE OPERATES NUMEROUS COMMUNITY BENEFIT PROGRAMS THAT SEEK TO IMPROVE THE HEALTH AND WELFARE OF ITS COMMUNITY. SERVICES PROVIDED TO THESE PATIENTS ARE NOT REPORTED AS REVENUE IN THE COMBINED STATEMENTS OF OPERATIONS. CHARITY CARE REPRESENTS THE CHARGES FOREGONE FOR SERVICES PROVIDED TO PATIENTS WHO CANNOT AFFORD HEALTH CARE SERVICES BECAUSE THEY ARE UNINSURED OR UNDERINSURED OR HAVE INADEQUATE RESOURCES. SUCH CHARGESAMOUNTED TO APPROXIMATELY $XX,XXX,XXX AND $45,276,000 FOR 2010 AND2009, RESPECTIVELY. LUTHERAN HEALTHCARE ALSO PROVIDES A SIGNIFICANTAMOUNT OF UNCOMPENSATED CARE THAT IS REPORTED AS A PROVISION FOR BADDEBTS, WHICH IS NOT INCLUDED IN THE AMOUNTS REPORTED ABOVE. SUCHPROVISION FOR BAD DEBTS AMOUNTED TO APPROXIMATELY $20,782,000 AND $33,530,000 FOR 2010 AND 2009 RESPECTIVELY.COSTING METHODOLOGY USED FOR BAD DEBTBAD DEBT EXPENSE REPRESENTS THE REVENUE EQUIVALENT OF THE ACCOUNTSTHAT ARE NOT EXPECTED TO BE COLLECTED. THE AMOUNTS REPORTED CONSISTOF SOME ACCOUNTS AT CHARGES, SOME AT MEDICAID BALANCES, AND SOMECOINSURANCE BALANCES AND DEDUCTIBLE BALANCES NET OF ANY COLLECTIONS.TO DETERMINE THE BAD DEBT AT COST AN ADJUSTED RATIO OF COST TOCHARGES (ARCC) WAS COMPUTED BASED ON THE DISTRIBUTION OF THE VARIOUSACCOUNT BALANCES MENTIONED ABOVE. THE ARCC WAS THEN APPLIED TO THEBAD DEBT EXPENSE TO ESTIMATE THE COST. PART III, LINE 8 LUTHERAN MEDICAL CENTER DID NOT REPORT A SHORTFALL IN PART III, LINE7. THE EXPENSES, REVENUES, AND SURPLUS REPORTED IN PART III LINES5-7 WERE DEVELOPED FROM THE 2010 LUTHERAN MEDICAL CENTER COST REPORTSFILED WITH CMS AND THE NYS DOH. PART III, LINE 9B THE ORGANIZATION'S FINANCIAL ASSISTANCE POLICY CONTAINS PROVISIONS ONTHE COLLECTION PRACTICES TO BE FOLLOWED FOR PATIENTS WHO ARE KNOWN TOQUALIFY FOR FINANCIAL ASSISTANCE ALSO KNOWN AS CHARITY CARE ASFOLLOWS:INTERNAL PROCEDURES1. ALL PATIENTS REGISTERED WILL BE INFORMED BY THE PATIENTSERVICE ASSOCIATE THAT THEY MAY BE ELIGIBLE FOR AN INSTALLMENT PLANARRANGEMENT.2. INSTALLMENT PLAN ARRANGEMENTS ARE AVAILABLE ONLY TO PATIENTSWHO HAVE FULLY COOPERATED IN THE FINANCIAL ASSISTANCE DETERMINATIONPROCESS DESCRIBED ABOVE.3. IF A PATIENT HAS BEEN FULLY COOPERATIVE IN THE FINANCIAL ASSISTANCE PROCESS AND STILL DEEMED INELIGIBLE FOR FINANCIAL ASSISTANCE, OTHER INSTALLMENT PLANS MAY BE ARRANGED ONLY BY CONTACTING THE VP OF PATIENT FINANCIAL SERVICES (EXT. 8415) OR THE DIRECTOR FOR BILLING & COLLECTIONS (EXT. 8950).4. INSTALLMENT PLANS WILL NOT EXCEED 10% OF THE PATIENT'S GROSSMONTHLY INCOME.5. ALL INSTALLMENT PLANS SHOULD BE PAID IN FULL WITHIN ONE YEAROF ARRANGEMENT, UNLESS APPROVED BY THE VP FOR PATIENT FINANCIALSERVICES.6. THE DIRECTOR OF BILLING AND COLLECTION WILL ENSURE FORINPATIENT AND HIGH COST CARE THAT REASONABLE EFFORTS WERE UNDERTAKENTO ENSURE OFFER FINANCIAL ASSISTANCE BEFORE ANY COLLECTION AGENCYASSIGNMENT.7. NO INTEREST WILL BE CHARGED ON OUTSTANDING BALANCES.8. ALL DEPOSITS WILL BE CONSIDERED PART OF THE FINANCIALASSISTANCE CONSIDERATION.EXTERNAL PROCEDURES1. ALL COLLECTIONS AGENCIES WILL RECEIVE A COPY OF LUTHERANMEDICAL CENTER'S FINANCIAL ASSISTANCE POLICIES, MISSION STATEMENT,VALUES, AND DIRECTIONS.2. THE COLLECTION AGENCY WILL CONFIRM, WHEN CONTACTING A PATIENTOR PATIENTS REPRESENTATIVE, THAT THE PATIENT HAS BEEN INFORMED OF ANDUNDERSTANDS LUTHERAN MEDICAL CENTER'S FINANCIAL ASSISTANCE POLICY ANDTHAT THE AMOUNT DUE REPRESENTS THE CORRECT BALANCE IN CONFORMANCEWITH THIS POLICY.3. THE COLLECTION AGENCY WILL ADHERE TO THESE POLICIES WHENMAKING COLLECTIONS ON BEHALF OF LUTHERAN MEDICAL CENTER.4. THE COLLECTION AGENCY WILL NOT INITIATE LEGAL ACTION WITHOUT WRITTEN AUTHORIZATION OF THE VP OF PATIENT FINANCIAL SERVICES.5. THE COLLECTION AGENCY WILL NOT GARNISH WAGES WHEN THERE ISEVIDENCE THAT THE PATIENT OR RESPONSIBLE PARTY HAS INSUFFICIENTINCOME AND/OR ASSETS TO MEET HIS OR HER OBLIGATION.6. THE COLLECTION AGENCY WILL NOT EXECUTE A LIEN BY FORCING THESALE OR FORECLOSURE OF THE PATIENT'S PRIMARY RESIDENCE TO PAY FOR ANOUTSTANDING MEDICAL BILL.7. THE COLLECTION AGENCY WILL NOT CHARGE INTEREST ON ANYOUTSTANDING BALANCE.8. ACCOUNTS WILL NOT BE SENT TO COLLECTION WHILE AN ELIGIBILITYDETERMINATION IS PENDING.9. ALL PATIENT BILLS WILL INDICATE THAT A PATIENT HAS 30 DAYS TORESOLVE ACCOUNT BALANCES PRIOR TO BEING SENT TO COLLECTION.10. NO COLLECTION EFFORT WILL BE INITIATED AGAINST ANY PATIENTELIGIBLE FOR MEDICAID AT TIME OF SERVICE. PART V LUTHERAN MEDICAL CENTER IS PART OF AN INTEGRATED HEALTHCARE DELIVERYSYSTEM AND SOCIAL SERVICES NETWORK KNOWN AS LUTHERAN HEALTHCARE ("LHC") THAT INCLUDES THE FOLLOWING ORGANIZATIONS, EACH OF WHICH HASA SEPARATE FINANCIAL STATEMENT AND TAX RETURN:SUNSET PARK HEALTH COUNCIL, INC. D/B/A LUTHERAN FAMILY HEALTHCENTERS, LUTHERAN AUGUSTANA, CENTER FOR EXTENDED CARE ANDREHABILITATION, INC., SHORE HILL HOUSING COMPANY, INC., HARBOR HILLHOUSING DEVELOPMENT FUND CORPORATION, SHORE HILL HOUSING ASSOCIATES, L.P., SUNSET GARDENS HOUSING DEVELOPMENT FUND CORPORATION, HEALTH PLUS PREPAID HEALTH SERVICES PLAN, INC., SHORE ROAD CARDIOLOGY, PC, SHORE ROAD RADIOLOGY, PC, LMC PHYSICIAN SERVICES, PC., SHORE ROAD COMMUNITY SERVICES, INC., SUNSET BAY COMMUNITY SERVICES, INC., COMMUNITY CARE ORGANIZATION, INC., AND LUTHERAN MEDICAL CENTER COMMUNITY FOUNDATION, INC. PART VI, LINE 2: THROUGHOUT LUTHERAN HEALTHCARE'S (LHC) 128-YEAR HISTORY, NEEDS ASSESSMENT AND STRATEGIC PLANNING HAVE EVOLVED INTO A COLLABORATIVE PROCESS IN WHICH STAKEHOLDERS AT EVERY LEVEL PLAY A CRITICAL ROLE IN THE DETERMINATION OF A STRATEGIC RESPONSE TO COMMUNITY NEEDS. LUTHERAN'S PARTICIPATORY PROCESS IS DIRECTED BY AND IN COOPERATION WITH SENIOR LEADERSHIP, COMMUNITY PARTNERS, PATIENTS, AND STAFF REPRESENTATIVES FROM CLINICAL, RESEARCH, ADMINISTRATIVE, AND COMMUNITY OUTREACH DIVISIONS. LHC USES DEMOGRAPHIC AND DIAGNOSTIC DATA FROM HOSPITAL ADMISSIONS; AMBULATORY CARE VISITS, UTILIZATION RATES AND COMMUNITY-LEVEL DATA SETS AND REPORTS. THESE INCLUDE BUT ARE NOT LIMITED TO: THE FEDERAL DECENNIAL CENSUS AND AMERICAN COMMUNITY SURVEY (ISSUED BY THE NYS DEPARTMENT OF CITY PLANNING); "STATISTICS AND DATA" PROVIDED BY THE NEW YORK STATE DEPARTMENT OF HEALTH (HTTP://WWW.HEALTH.STATE.NY.US/STATISTICS/) INCLUDING PQI, QARR, BRFSS, AND NYS CANCER REGISTRY; PREVENTION QUALITY INDICATOR DATA; "COMMUNITY HEALTH PROFILES," AND NUMEROUS OTHER REFERENCE MATERIALS COMPILED BY THE NEW YORK CITY DEPARTMENT OF HEALTH AND MENTAL HYGIENE. THE SELECTION OF PUBLIC HEALTH PRIORITIES FOR LHC HAS ALSO BEEN INFORMED BY COMMUNITY-BASED PARTICIPATORY RESEARCH PROJECTS CONDUCTED BY LHC'S DEPARTMENT OF RESEARCH. THE DEPARTMENT HAS ADMINISTERED EXTENSIVE NEEDS ASSESSMENTS IN THE ARABIC, CHINESE, AND MEXICAN COMMUNITIES THAT ARE SERVED BY LHC; THE RESULTS OF THE STUDY OF THE CHINESE POPULATION WERE PUBLISHED IN THE JOURNAL OF HEALTH CARE FOR THE POOR AND UNDERSERVED (HEALTH NEEDS IN BROOKLYN'S CHINATOWN: A PILOT ASSESSMENT USING RAPID PARTICIPATORY APPRAISAL. MAY 2009). PART VI, LINE 3: THE EDUCATION AND INFORMATION REGARDING THE AVAILABLE GOVERNMENTALASSISTANCE PROGRAMS, IE, MEDICAID AND OTHERS, AS WELL AS THEFACILITY'S FINANCIAL ASSISTANCE POLICY IS MADE WIDELY AVAILABLE TOPATIENTS THROUGH VARIOUS VENUES. FIRST, THIS INFORMATION IS POSTEDIN KEY AREAS THROUGHOUT THE FACILITY INCLUDING THE ER, AND OUTPATIENTAREAS. IN ADDITION TO THE POSTED INFORMATION THERE ARE VARIOUSBROCHURES AVAILABLE THROUGHOUT THE HOSPITAL AS WELL. BOTH THE POSTEDINFORMATION AND BROCHURES ARE AVAILABLE IN SEVERAL DIFFERENTLANGUAGES INCLUDING THOSE LANGUAGES THAT HAVE BEEN DEFINED BY LOCALCENSUS STUDIES AS THE MAIN LANGUAGES FOR THE LMC SERVICE AREA. THEREIS ALSO A FREQUENTLY ASKED QUESTIONS (FAQS) DOCUMENT REGARDING THESESERVICES IN THE SAME FORMATS AND VENUES AS ABOVE AND ON THEHOSPITAL'S WEBSITE AS WELL. ANOTHER KEY AREA IS THE TRAINING OF THELMC FRONT LINE STAFF (ADMITTING, REGISTRATION AND PATIENT ACCOUNTSTAFF) IN TERMS OF THE AVAILABLE GOVERNMENTAL ASSISTANCE PROGRAMS,APPLICATION PROCEDURES AND THE HOSPITAL'S FINANCIAL ASSISTANCE PROGRAMS. PART VI, LINE 4: LHC USES DEMOGRAPHIC AND DIAGNOSTIC DATA FROM HOSPITAL ADMISSIONS; AMBULATORY CARE VISITS AND UTILIZATION RATES TO KEEP CURRENT ON PATIENT NEEDS AND TO DETERMINE OUR GENERAL SERVICE AREA. IN ADDITION, CENSUS DATA, STATISTICAL REPORTS FROM THE NEW YORK CITY DEPARTMENT OF HEALTH AND MENTAL HYGIENE AND THE UNITED HOSPITAL FUND, AS WELL AS THE NYS PREVENTION AGENDA ARE USED TO HELP IDENTIFY OUR SERVICE AREA. IN 2010, 478,000 PEOPLE WERE SERVED THROUGH ONE OF LUTHERAN HEALTHCARE'S ORGANIZATIONS.LUTHERAN MEDICAL CENTER (LMC) SYSTEM, IS PRIMARILY LOCATED THROUGHOUT SOUTHWEST AND CENTRAL BROOKLYN, SERVES ONE OF THE MOST CULTURALLY, ETHNICALLY AND LINGUISTICALLY DIVERSE COMMUNITIES IN THE WORLD. WE HAVE RECENTLY EXPANDED TO INCLUDE LOCATIONS IN MANHATTAN, QUEENS AND STATEN ISLAND. LHC CONSIDERS ITS CURRENT SERVICE AREA TO BE:ZIP CODES FULLY CONTAINED:11203, 11204, 11209, 11210, 11214, 11215, 11217, 11218, 11219, 11220, 11223, 11224, 11225, 11226, 11228, 11230, 11231, 11232ZIP CODES PARTIALLY CONTAINED:10011, 10001, 10003, 10010, 10011, 10012, 10016, 10018, 10027, 10035, 10036, 10301, 10455, 11201, 11207, 11212, 11213, 11216, 11217, 11121, 11213, 11229, 11233, 11234, 11235, 11236, 11238, 11239, 11433,COMMUNITY DEMOGRAPHICS:37% OF THE COMMUNITY IS LATINO/HISPANIC27% OF THE COMMUNITY IS CHINESE10% OF THE COMMUNITY IS ORTHODOX JEWISH 7% OF THE COMMUNITY IS ARABIC 7% OF THE COMMUNITY IS RUSSIAN 28% OF RESIDENTS LIVE BELOW 100 PERCENT FEDERAL POVERTY LEVEL16% OF THE COMMUNITY IS OVER THE AGE OF 60ACCESS TO CARE DATA:-31 PERCENT OF RESIDENTS IN SUNSET PARK (THE NEIGHBORHOOD IN WHICH LUTHERAN MEDICAL CENTER (LMC) AND LUTHERAN FAMILY HEALTH CENTERS ARE LOCATED AND HEADQUARTERED) DO NOT HAVE A PERSONAL DOCTOR; THIS COMPARES TO 23 PERCENT FOR BROOKLYN, AND 24 PERCENT FOR ALL NEW YORK CITY (OLSON EC, VAN WYE G, KERKER B, THORPE L, FRIEDEN TR. TAKE CARE SUNSET PARK. NYC COMMUNITY HEALTH PROFILES, SECOND EDITION; 2006; 12(42):1-16). -11 PERCENT OF SUNSET PARK RESIDENTS REPORT THAT THEY USE AN EMERGENCY DEPARTMENT WHEN THEY ARE SICK OR NEED ADVICE; THIS COMPARES TO 8 PERCENT FOR BOTH BROOKLYN AND ALL NYC (IBID).-EMERGENCY ROOM VISITS AT LMC HAVE RISEN BY MORE THAN 23 PERCENT OVER THE PAST 5 YEARS. FORTY SEVEN PERCENT OF THESE VISITS ARE FOR CARE THAT IS CONSIDERED TO BE TREATABLE IN A PRIMARY CARE SETTING. THIS COMPARES TO 33 PERCENT NATIONALLY (INTERNAL DATA).-NEARLY 13 PERCENT OF LMCS INPATIENT ADMISSIONS COULD HAVE BEEN PREVENTED THROUGH TIMELY ACCESS TO WELL-COORDINATED PRIMARY CARE (INTERNAL DATA).-AMONG THE ARAB-AMERICAN POPULATION IN LHC'S SERVICE AREA, 27 PERCENT OF INDIVIDUALS REPORT THAT THEY ARE NOT CURRENTLY RECEIVING THE HEALTH CARE SERVICES THEY NEED (HEALTH ASSESSMENT OF ARAB-AMERICAN/ARAB COMMUNITY IN SOUTHWEST BROOKLYN. LUTHERAN MEDICAL CENTER, DEPARTMENT OF RESEARCH. JUNE, 2008).-THE POPULATION TO PRIMARY CARE PHYSICIAN RATIO IN LHC'S SERVICE AREA IS 1,652:1; THIS COMPARES TO THE NATIONAL AVERAGE OF 1,111:1. HRSA RECOMMENDS A RATIO OF 1,500:1 (DATA PROVIDED DIRECTLY TO LHC BY THE CENTER FOR HEALTH WORKFORCE STUDIES AT SUNY, ALBANY).-IN BROOKLYN, THE RATES OF EARLY DIAGNOSIS OF BREAST, CERVICAL, AND COLORECTAL CANCERS ALL FALL BELOW STATE AND NATIONAL AVERAGES, AND FALL SHORT OF 2013 PREVENTION AGENDA OBJECTIVES BY 14 PERCENT 23 PERCENT (NYS DOH CANCER REGISTRY).PERINATAL AND PEDIATRIC HEALTH DATA:-ONE OF THE TWO ZIP CODES (11232) THAT COMPRISES SUNSET PARK HAS THE SECOND HIGHEST BIRTH RATE OF ALL ZIP CODES IN BROOKLYN, THE THIRD HIGHEST IN NEW YORK CITY, AND SEVENTEENTH HIGHEST IN NEW YORK STATE (IN THE TOP DECILE FOR THE STATE). -THE AVERAGE PERCENTAGE OF WOMEN WHO RECEIVED PRENATAL CARE LATE OR HAD NO PRENATAL CARE AT ALL HAS DECLINED IN OUR CATCHMENT AREA, HOWEVER 23 PERCENT OF WOMEN IN BOROUGH PARK AND 33 PERCENT OF WOMEN IN EAST FLATBUSH DIDN'T RECEIVE CARE DURING THEIR FIRST TRIMESTER -17 ZIP CODES IN LHC'S SERVICE AREA HAVE PREGNANCY RATES ABOVE THE NEW YORK STATE AVERAGE.-SETTLEMENT AND MIGRATION PATTERNS AMONG PARTICULAR SUBSETS OF THE SERVICE POPULATION ARE HIGHLY PROBLEMATIC, MOST NOTABLY IN THE CHINESE COMMUNITY. ACCORDING TO OUR "NEED IN BROOKLYN CHINATOWN STUDY," IT IS NOT UNCOMMON FOR EXPECTING PARENTS TO EMIGRATE FROM CHINA OR MIGRATE FROM ELSEWHERE IN THE UNITED STATES TO RECEIVE PRENATAL CARE IN NEW YORK.FACTORS DRIVING THIS PATTERN INCLUDE THE ASSURANCE OF "FREE CARE OFFERED BY NYS, LOWER RISK OF DEPORTATION FOR UNDOCUMENTED IMMIGRANTS IF THEIR CHILDREN ARE CITIZENS, AND THE FREEDOM FROM THE ONE-CHILD POLICY IN CHINA." CONSEQUENTLY, THE BIRTH RATE AMONG CHINESE IN SUNSET PARK HAS DOUBLED IN THE PAST DECADE. AT 24.7 BIRTHS PER 1,000, THIS RATE IS THE HIGHEST AMONG ALL ETHNIC GROUPS IN SUNSET PARK AND SIGNIFICANTLY EXCEEDS AVERAGES FOR THE BOROUGH, THE CITY, AND THE STATE. VERY FREQUENTLY, HOWEVER, BABIES (AS YOUNG AS THREE MONTHS OLD) ARE SENT BACK TO CHINA FOR A FEW YEARS; EXPERTS ATTRIBUTE THIS TO PARENTS' LONG WORKING HOURS IN THE UNITED STATES, THEIR NEED FOR MOBILITY, AND THE HIGH COST OF LIVING. INFANTS COMMONLY RETURN TO THE UNITED STATES AT FOUR OR FIVE YEARS OF AGE TO BEGIN SCHOOL; THEY GENERALLY LACK IMMUNIZATIONS, AND MANY HAVE NOT SEEN A DOCTOR SINCE THEY WERE BORN (THEIN).-FEWER THAN 59 PERCENT OF BROOKLYN'S THIRD-GRADERS HAVE SEEN A DENTIST IN THE PAST YEAR; THIS THE LOWEST RATE IN ALL FIVE BOROUGHS, AND OVER FOURTEEN PERCENTAGE POINTS SHY OF THE NYS AVERAGE (KUMAR, JAYANTH. DONNA ALTSHUL. TIMOTHY COOKE. ELMER L. GREEN. ORAL HEALTH STATUS OF THIRD GRADE CHILDREN. NEW YORK STATE, DEPARTMENT OF HEALTH, ORAL HEALTH SURVEILLANCE SYSTEM. DECEMBER, 2005. CITY AND BOROUGH LEVEL DATA PROVIDED DIRECTLY TO LHC BY DR. KUMAR). PART VI, LINE 6: RECOGNIZING THE TREMENDOUS CONTRIBUTION LUTHERAN PLAYS IN THE HEALTH CARE INDUSTRY PARTICULARLY IN NYS, LUTHERAN HAS BEEN AWARDED NUMEROUS FEDERAL AND STATE HEAL GRANTS FOR THE FOLLOWING PROJECTS TOTALING MORE THAN $35 MILLION.LHC HAS A PROVEN HISTORY OF WORKING COLLABORATIVELY WITH LOCAL PARTNERS TO RESPOND TO EMERGENT COMMUNITY NEEDS. TO ACCOMMODATE GROWING COMMUNITY DEMANDS, WE RECENTLY COMPLETED AN EXPANSION AND RENOVATION OF BOTH THE EMERGENCY DEPARTMENT AND THE INTENSIVE CARE UNITS AT LMC. ALONG WITH LFHC'S NEWLY BUILT 25,000 SQUARE-FOOT SUNSET PARK FAMILY HEALTH CENTER SITE, 4,500 SQUARE-FEET FOR A NEW OUTPATIENT REHABILITATION CENTER ON 60TH STREET AND A 9,000 SQUARE-FOOT SPACE FOR AN UPDATED BROOKLYN-CHINESE FAMILY HEALTH CENTER, THE SYSTEM NOW HANDLES MORE PATIENTS THAN EVER. THESE PROJECTS, ALONG WITH THE ACQUISITION OF 40,000 SQUARE-FEET ON 58TH STREET FOR ADMINISTRATIVE OFFICES, PLANNED RENOVATIONS OF LUTHERAN'S MEDICAL ARTS PAVILION AT 87TH STREET AND THE COMPLETED RENOVATION OF THE SHORE HILL SENIOR HOUSING FACILITY, HAVE KEPT LUTHERAN FULLY ENGAGED IN COMMUNITY OUTREACH.WE HAVE ALSO BROUGHT NEW CLINICAL SERVICES TO SOUTHWEST BROOKLYN. FOR EXAMPLE, THROUGH A UNIQUE PARTNERSHIP WITH MOUNT SINAI MEDICAL CENTER, THE MAY ELLEN AND GERALD RITTER CARDIOLOGY CENTER EXPANDED ITS SCOPE OF SERVICES TO INCLUDE BOTH DIAGNOSTIC AND INTERVENTIONAL PCI, CREATING A FULL SERVICE CARDIAC CENTER. IN ADDITION, LMC'S NEW EPILEPSY CENTER, LED BY WORLD RENOWNED NEUROLOGIST ORRIN DEVINSKY, M.D., NOW OFFERS BROOKLYN RESIDENTS SUFFERING FROM SEIZURE DISORDERS ADVANCED CLINICAL SERVICES CLOSE TO HOME. THESE INNOVATIVE CLINICAL PROGRAMS, ALONG WITH NUMEROUS OTHERS, WERE BUILT ON EXISTING STRENGTHS AUGMENTED THROUGH CREATIVE PARTNERSHIPS AND AFFILIATIONS. IN MAY OF 2010, LFHC BECAME THE EMERGENCY OPERATOR OF THE HEALTH CARE FOR THE HOMELESS PROGRAM FORMERLY ADMINISTERED BY THE SAINT VINCENT'S CATHOLIC MEDICAL CENTER (SVCMC) DEPARTMENT OF COMMUNITY MEDICINE. SVCMC DECLARED BANKRUPTCY IN APRIL AND INITIATED CLOSURE OF ITS HOSPITAL AND ALL OUTPATIENT SERVICES, INCLUDING THE HOMELESS PROGRAM, WHICH HAD SERVED 8,196 OF NEW YORK CITY'S MOST VULNERABLE HOMELESS PATIENTS EACH YEAR. CITING LFHC'S HISTORY OF PROVIDING PRIMARY AND PREVENTIVE CARE TO NEW YORK CITY'S INDIGENT AND UNDERSERVED POPULATIONS, SVCMC APPROACHED LFHC TO ASSUME OPERATION OF THE HOMELESS PROGRAM AND PREVENT A GAP IN SERVICES. WORKING WITH PARTNERS AT THE FEDERAL, STATE, AND LOCAL LEVELS, LFHC WAS ABLE TO EXPEDITE THE TRANSFER OF THE PROGRAM AND PROVIDE UNINTERRUPTED SERVICES TO PATIENTS AT 23 SITES LOCATED THROUGHOUT ALL FIVE BOROUGHS OF NEW YORK CITY. IN RESPONSE TO A NEW COMMUNITY NEED, LFHC WILL ABSORB AND SUSTAIN LICH'S DENTAL PROGRAM. LFHC EXPECTS TO COMMENCE SERVICE PROVISION IN THE SUMMER OF 2010 AND WILL PROVIDE SERVICES 50 HOURS PER WEEK, OFFERING EXTENDED HOURS TO BEST SERVE THE NEEDS OF THE SERVICE AREA. THIS NEW COMMUNITY NEED COMES FROM FISCAL ISSUES AT LONG ISLAND COLLEGE HOSPITAL (LICH) THAT HAVE RENDERED ITS PRIMARY CARE AND DENTAL SERVICES UNSUSTAINABLE. AS SUCH, LICH HAS RECENTLY INITIATED THE CLOSURE OF ITS DENTAL PROGRAM. FORMERLY SERVING THE NEIGHBORHOODS SURROUNDING DOWNTOWN BROOKLYN, OVER 70 PERCENT OF ITS AMBULATORY CARE PATIENTS HAD EITHER MEDICAID OR NO INSURANCE. IN 2008, AS PART OF SWEEPING BUDGET CUTS, THE NEW YORK CITY DEPARTMENT OF HEALTH AND MENTAL HYGIENE (DOHMH) CLOSED ITS ORAL HEALTH PROGRAM, WHICH CONSISTED OF 46 SCHOOL AND COMMUNITY-BASED SITES AND PROVIDED DENTAL SERVICES TO 17,000 CHILDREN. DOHMH APPROACHED LFHC TO ASSUME OPERATION OF 14 OF THESE SCHOOL-BASED DENTAL CLINICS TO PREVENT A GAP IN SERVICES, CITING LFHC'S LONG-STANDING SCHOOL-BASED HEALTH PROGRAM AND HISTORY OF PROVIDING HIGH-QUALITY, LOW-COST DENTAL SERVICES. LFHC AGREED TO ABSORB AND SUSTAIN THE SITES, AND IS FACILITATING OPERATIONAL IMPROVEMENTS TO INCREASE SERVICE CAPACITY, SCHEDULED TO COMMENCE WITH THE 2010-2011 SCHOOL-YEAR.ADDITIONALLY, OUR FAMILY SUPPORT CENTER -(COMMUNITY-BASED PROGRAMS) ADDRESS SOCIAL, EDUCATIONAL, VOCATIONAL AND NUTRITIONAL NEEDS INCLUDING: ENGLISH AS A SECOND LANGUAGE INSTRUCTIONLITERACY CLASSESGED PREPARATIONCOMPUTER TRAININGFAMILY COUNSELINGDOMESTIC VIOLENCE PREVENTIONCITIZENSHIP AND VOTER REGISTRATION TRAININGSHOOT FOR BETTER HEALTH SCHOOL-BASEDNUTRITION PROGRAMWORKFORCE DEVELOPMENTAFFORDABLE CHILD CARESENIOR PROGRAMSAFTER SCHOOL PROGRAMS PART VI, LINE 7: LUTHERAN HEALTHCARE (LHC) IS AN ACADEMIC, FAITH-BASED, COMMUNITY HEALTH CARE AND SOCIAL SUPPORT ORGANIZATION COMMITTED TO EXCELLENCE. THE PRINCIPAL PROVIDER OF HEALTH CARE FOR THE RESIDENTS OF SOUTHWEST AND CENTRAL BROOKLYN, THE SYSTEM PROVIDES SUPERB PRIMARY AND SUPPORTIVE CARE. THIS UNIQUELY INTEGRATED HEALTH CARE SYSTEM INCLUDES LUTHERAN MEDICAL CENTER (LMC), LUTHERAN FAMILY HEALTH CENTERS (LFHC), LUTHERAN AUGUSTANA CENTER FOR EXTENDED CARE AND REHABILITATION (LAC), SENIOR HOUSING, COMMUNITY CARE ORGANIZATION, AND HEALTH PLUS - LHC'S AFFILIATED MEDICAID MANAGED CARE ORGANIZATION.IN 2010, ACCESS TO CARE EXPANDED SIGNIFICANTLY SYSTEM-WIDE, OUR 984 PHYSICIANS AND 5,399 EMPLOYEES (59% OF WHICH LIVE IN OUR CATCHMENT AREA) SERVED 478,000 PEOPLE. LUTHERAN MEDICAL CENTER (LMC) MANAGING NEARLY 65,000 EMERGENCY VISITS AND 27,594 INPATIENT DISCHARGES. THE LUTHERAN FAMILY HEALTH CENTERS (LFHC) HANDLED NEARLY 550,000 PATIENT VISITS AND PROVIDED HEALTH AND DENTAL SERVICES TO OVER 10,000 CHILDREN IN 28 SCHOOLS. AND, WITH NEW PRODUCT INNOVATIONS AND CREATIVE COMMUNITY OUTREACH, HEALTH PLUS EXPANDED ITS MEMBER BASE TO NEARLY 310,000. LUTHERAN'S THREE SENIOR HOUSING FACILITIES HAVE MORE THAN 800 RESIDENTS. WHILE AUGUSTANA PROVIDES LONG TERM CARE AND REHABILITATION PROVIDES SERVICES TO APPROXIMATELY 232 RESIDENTS.AWARDS AND DISTINCTIONSLEVEL I TRAUMA CENTERFDNY OFFICE OF MEDICAL AFFAIRS CERTIFIED CARDIAC ARREST CENTERNEW YORK STATE DEPARTMENT OF HEALTH DESIGNATED STROKE CENTERNEW YORK STATE DEPARTMENT OF HEALTH DESIGNATED BARIATRIC SPECIALTY CENTER FOR MEDICAIDDESIGNATED HYPOTHERMIA CENTERBARIATRIC CENTER OF EXCELLENCE, AS NAMED BY THE AMERICAN SOCIETY OF METABOLIC AND BARIATRIC SURGERYINTERVENTIONAL AND THERAPEUTIC CARDIAC CATHETERIZATION LABORATORYNAMED TO THE COMMUNITY VALUE INDEX (CVI) TOP 100 HOSPITALS AND FIVE STAR FACILITY LIST BY CLEVERLY AND ASSOCIATES IN 2006, 2007, 2008 2009, 2010 AND 2011. RANKED "BEST IN BROOKLYN-STATEN ISLAND AREA FOR OVERALL ORTHOPEDICS" BY HEALTH GRADES (2006, 2007, 2009, 2010, 2011) REPORTS FILED WITH STATES PART VI, LINE 7 NY PART VI, LINE 5 (CONTINUED.)ANNUALLY AND OFFERS SERVICES IN THE MAJOR LANGUAGES FOUND IN THE COMMUNITY. WITH A FOCUS ON THE HEALTH AND LIFESTYLE NEEDS OF THE EXTENSIVE LOW-INCOME NON-ENGLISH SPEAKING IMMIGRANT POPULATION OF LHC'S SERVICE AREA, FSS PROGRAMS AND SERVICES ARE EMPLOYED WITH A VIEW TO EMPOWERING FAMILIES WITH THE RESOURCES THEY NEED TO SUCCESSFULLY AND SECURELY INTEGRATE INTO THE COMMUNITY. ALL SERVICES PROVIDED AT THE LFHC FAMILY SUPPORT CENTER ARE FREE. LHC'S INNOVATIVE COMMUNITY BUILDING ACTIVITIES RECOGNIZE THE IMPORTANCE OF COLLABORATIVE COMMUNITY INVOLVEMENT TO FOSTER A HEALTHIER COMMUNITY. IN ADDITION TO STRUCTURED PROGRAMMING, LHC PROVIDED 89 COMMUNITY HEALTH FAIRS OR EDUCATIONAL LECTURES IN 2010 TO INCREASE AWARENESS OF THE IMPORTANCE OF ACCESSING COMMUNITY HEALTH SERVICES AS WELL AS TO EDUCATE YOUTH ON HEALTH CARE CAREERS LUTHERAN HEALTHCARE IS AT THE CENTER OF THE COMMUNITY IT SERVES. IN FACT, MORE THAN PROVIDING CARE AND SUPPORT SERVICES, LUTHERAN IS A MAJOR EMPLOYER WITHIN ITS OWN CATCHMENT AREA WITH 59 PERCENT OF EMPLOYEES LIVE IN BROOKLYN. FINALLY, THE MEDICAL CENTER HAS BEEN NAMED TO THE COMMUNITY VALUE INDEX (CVI) TOP 100 HOSPITALS IN THE COUNTRY LIST FOR THE SIXTH YEAR IN A ROW. SCORING IN THE TOP TWENTY PERCENT, IT HAS ALSO BEEN DESIGNATED A "FIVE-STAR" FACILITY. THE CVI IS A PROPRIETARY INDEX CREATED TO OFFER A MEASURE OF THE VALUE THAT A HOSPITAL PROVIDES TO ITS COMMUNITY. THE ANNUAL LISTING IDENTIFIES THE NATION'S TOP HOSPITALS THAT ARE LOW COST, LOW CHARGE HOSPITALS, WHICH USES FINANCIAL RESOURCES EFFICIENTLY WHILE MAINTAINING A HIGH DEGREE OF COMMUNITY VALUE. 1 CARIBBEAN WOMENS HEALTH ASSOC INC 21 SNYDER AVE BROOKLYN NY 11226 133323168 501(C)(3) 17150 N/A N/A GENERAL SUPPORT UNITED HOSPITAL FUND 1411 BROADWAY 12TH FLOOR NEW YORK NY 10018 131562656 501(C)(3) 16500 N/A N/A GENERAL SUPPORT HATZOLOH OF FLATBUSH 1880 OCEAN AVENUE BROOKLYN NY 11230 133213138 501(C)(3) 15000 N/A N/A GENERAL SUPPORT HATZOLOH OF BOROUGH PARK 5215 16TH AVENUE BROOKLYN NY 11204 113043090 501(C)(3) 14762 N/A N/A GENERAL SUPPORT AMERICAN CANCER SOCIETY (31WASHING) 17 EASTERN PARKWAY BROOKLYN NY 11238 160743902 501(C)(3) 10500 N/A N/A GENERAL SUPPORT HELEN KELLER SERVICES FOR THE BLIND 57 WILLOUGHBY STREET BROOKLYN NY 11201 111630807 501(C)(3) 7500 N/A N/A GENERAL SUPPORT REACH OUT & READ 30 EAST 33RD STREET NEW YORK NY 10016 134080045 501(C)(3) 7500 N/A N/A GENERAL SUPPORT S W B I D C SOUTHWEST BROOKLYN IDC BROOKLYN NY 11232 112508370 501(C)(3) 7500 N/A N/A GENERAL SUPPORT ASSOCIATION OF HISPANIC HEALTHCARE EXECU PO BOX 230832 NEW YORK NY 10023 134169037 501(C)(3) 5000 N/A N/A GENERAL SUPPORT 9 9 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: SCHEDULE I, PART I, LINE 1 OTHER INFORMATION: PART IV: SCHEDULE I, PART I, LINE 1 LUTHERAN MEDICAL CENTER ONLY MAKES GRANTS TO CHARITABLE ORGANIZATIONS LOCATED IN ITS NEIGHBORING COMMUNITY. THESE FUNDS ARE USED TO SUPPORT THE TAX EXEMPT MISSION AND COMMUNITY BETTERMENT AIMS OF EACH ORGANIZATION. LUTHERAN REQUIRES EACH APPLICANT (FOR GRANT AID) TO PROVIDE A DETAILED DESCRIPTION OF THE USE OF THE INTENDED FUNDS AND SUCH AMOUNTS ARE GRANTED AFTER LUTHERAN HAS VERIFIED THAT THE INTENDED PROJECT SUPPORTS THE COMMUNITY. X 1 1 X X X X 0 1 0 0 0 0 0 1 0 WENDY Z GOLDSTEIN 798623 0 75000 0 89488 0 269600 0 33056 0 1265767 0 0 0 BARBARA ARKY 356423 0 0 0 29039 0 19600 0 33278 0 438340 0 0 0 RICHARD LANGFELDER 467480 0 0 0 65356 0 19600 0 29516 0 581952 0 0 0 CLAUDIA CAINE 649688 0 40000 0 24018 0 19600 0 19421 0 752727 0 0 0 BETH RAUCHER MD 371136 0 15000 0 30750 0 19600 0 36320 0 472806 0 0 0 STEVE ART 226610 0 0 0 31314 0 19600 0 16015 0 293539 0 0 0 MYLES DAVIS 224537 0 0 0 47894 0 19600 0 10892 0 302923 0 0 0 GEORGE MARTIN MD 567630 0 20000 0 52856 0 14700 0 16758 0 671944 0 0 0 MICHAEL PARKS 241555 0 0 0 45702 0 19600 0 24322 0 331179 0 0 0 ROSANNE RASO 267393 0 0 0 30290 0 19600 0 23883 0 341166 0 0 0 FRANK SCHEETS 265762 0 0 0 46904 0 19600 0 48523 0 380789 0 0 0 KAREN LENNON 220431 0 0 0 29125 0 19600 0 21804 0 290960 0 0 0 CANDACE FINKELSTEIN 328213 0 0 0 26470 0 19600 0 22975 0 397258 0 0 0 AUDREY SAITTA MD 507769 0 0 0 16885 0 14417 0 27350 0 566421 0 0 0 IFFATH HOSKINS MD 377769 0 35000 0 28306 0 3438 0 7068 0 451581 0 0 0 SAVITRI BIRLA MD 304936 0 0 0 7386 0 19600 0 15525 0 347447 0 0 0 CLAUDIA LYON MD 263423 0 21245 0 22533 0 14700 0 21699 0 343600 0 0 0 PART I, LINE 1B THE HOUSING ALLOWANCE NOTED ON PART I TO THE SCHEDULE J IS ONLY PROVIDED TO CLERGY MEMBERS AND IS BASED UPON A CONTRACT OR AGREEMENT. PART I, LINE 4B WENDY Z. GOLDSTEIN, PRESIDENT & CEO IS THE ONLY INDIVIDUAL REPORTED ON SCHEDULE J THAT PARTICIPATES IN A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN. MS. GOLDSTEIN ALSO PARTICIPATES IN A SECTION 457F PLAN AND HER 2009 DEFERRALS ARE REPORTED ON THE FORM 990, SCHEDULE J, PART II, COLUMN (C). PART I, LINE 7 LUTHERAN MEDICAL CENTER DOES NOT HAVE A FORMAL EXECUTIVE BONUS PROGRAM IN PLACE. EXECUTIVE BONUSES ARE DISCRETIONARY AND PROVIDED AT THE APPROVAL OF THE BOARD OF DIRECTORS FOR THE CEO AND THE CEO'S RECOMMENDATIONS FOR OTHER SR. EXECUTIVES BASED ON WORK PERFORMANCE DURING THE YEAR. THE BOARD OF DIRECTOR RETAINS THE RIGHT TO APPROVE OR DISAPPROVE ALL BONUSES AND TYPICALLY BASES ITS DECISION UPON MARKET DATA PROVIDED BY THE EXTERNAL CONSULTING FIRM THE MEDICAL CENTER USES TO DETERMINE COMPENSATION. DORMITORY AUTHORITY STATE OF NEW YORK 146000923 649901U94 2003-03-27 91804147 RENOVATION OF HOSPITAL FACILITY REFUND BONDS ISSUED 5/4/75 & 7/12/79 0 0 0 26465000 93536081 12348916 1041309 1170791 1704651 423782 43007758 40597767 2005 1 0 1 1 0 0 1 0 0 0.00000 0.00000 0.00000 0 0 0 0 1 SEE PART V 1 1 0 PART II, LINE 3 THE DIFFERENCE BETWEEN THE ISSUE PRICE OF THE BONDS AND TOTAL PROCEEDS IS DUE TO INVESTMENT EARNINGS. PART II, LINE 4 THE REPORTED AMOUNT INCLUDES A DEBT SERVICE RESERVE FUND OF $8,395,000, AND A DEBT SERVICE FUND OF $3,953,916. PART III, LINE 3C MANAGEMENT FREQUENTLY SEEKS PROFESSIONAL ADVICE FROM EXTERNAL EXPERTS ON TAX-EXEMPT BOND PRIVATE BUSINESS USE AND ARBITRAGE REPORTING RULES. PART IV, LINES 4B AND 4C THERE WERE TWO GICS HOLDING GROSS PROCEEDS OF THE BONDS, ONE WITH AIG MATCHED FUNDING CORP. (TERM 28.3 YEARS), AND ONE WITH MBIA, INC. (TERM 2.3 YEARS). PART IV, LINE 5 AMOUNTS HELD BEYOND AN ALLOWABLE TEMPORARY PERIOD WERE APPROPRIATELY YIELD RESTRICTED PART I LINE 1 LUTHERAN MEDICAL CENTER IS A COMPREHENSIVE HEALTH CARE AND SOCIAL SUPPORT SYSTEM SERVING THE DIVERSE AND GROWING COMMUNITIES OF SOUTHWEST BROOKLYN. PART III LINE 4B THE EMERGENCY ROOM SERVICE AND TRAUMA CENTER IS A VITAL SERVICE PROVIDED TO THE RESIDENTS OF SOUTHWEST BROOKLYN. EMERGENCY TREATMENT SERVICES ARE AVAILABLE TO ALL THOSE THAT PRESENT ON A 24-HOUR/365-DAY PER YEAR BASIS. THE EMERGENCY ROOM IS STAFFED BY A MULTI-LINGUAL, DIVERSE TEAM OF HIGHLY TRAINED PHYSICIANS, NURSES, PHYSICIAN ASSISTANTS, NURSE PRACTITIONERS AND SOCIAL WORKERS, WHO WORK CLOSELY WITH TRAUMA SURGEONS AND STROKE SPECIALISTS AND ALL OTHER STAFF TO PROVIDE HIGH QUALITY HEALTH CARE SERVICES AROUND THE CLOCK 365 DAYS PER YEAR. THE EMERGENCY ROOM SERVICE IS A MAJOR GATEWAY TO INPATIENT SERVICES AND IN 2010, 15,885 OR 23% OF THE TOTAL OF 67,694 INDIVIDUAL PATIENT ENCOUNTERS RESULTED IN AN ADMISSION TO AN INPATIENT SERVICE. WITH THE RECENT CLOSINGS AND/OR DOWNSIZING OF OTHER HOSPITALS IN THE AREA, LMC CONTINUES TO EXPERIENCE AN INCREASE IN PATIENT VOLUME WITH HIGHER ACUITY LEVELS, I.E., SICKER PATIENTS SEEKING EMERGENCY SERVICES. IN ORDER TO KEEP UP WITH THIS PATIENT FLOW, RENOVATION BEGUN IN 2009 AND IS STILL IN PROGRESS TO EXPAND THE CAPACITY OF THE EMERGENCY DEPARTMENT. THIS EXPANSION PROJECT IS BEING FUNDED BY THE NYS DOH THROUGH AN APPROVED HEAL VII GRANT OF $13.3 MILLION DOLLARS, ONE OF THE LARGEST AWARDED IN NEW YORK. DUE TO THE EPISODIC NATURE OF THIS SERVICE THE UNDOCUMENTED, UNINSURED AND UNDERINSURED PATIENTS TEND TO BE HIGHER THAN WITH ANY OTHER SERVICE. THE MAJORITY OF THE PATIENTS THAT DO PRESENT WITH INSURANCE TEND TO BE MEDICAID FEE-FOR-SERVICE OR MEDICAID HMO, WHICH IS CONSIDERED MEDICALLY INDIGENT. WHEN COMBINED WITH THE UNINSURED THE DATA REVEALS THAT JUST ABOUT 58% OF ALL PATIENTS PRESENTING TO THE ER FOR EMERGENCY SERVICES WERE EITHER UNDOCUMENTED, UNINSURED OR UNDERINSURED IN CY 2010. PART III LINE 4C THE THIRD LARGEST PROGRAM OF THE MEDICAL CENTER IS THE INPATIENT MATERNITY SERVICE. DURING 2010, THE MEDICAL CENTER WAS ABLE TO ACCOMMODATE, ON AVERAGE, APPROXIMATELY 34 PATIENTS PER DAY AND TREATED AND DISCHARGED 4,281 PATIENTS. THE AVERAGE LENGTH OF STAY FOR PATIENTS IN THIS PROGRAM WAS APPROXIMATELY 2.6 DAYS, WHICH TRANSLATED INTO 11,286 DAYS OF MATERNITY CARE PROVIDED IN 2010. THIS UNIT SUPPORTED APPROXIMATELY 4,170 BIRTHS DURING 2010. APPROXIMATELY 2.0% OF THE OB PATIENTS WERE SELF-PAY AND/OR CHARITY-CARE PATIENTS, I.E., MEANING THEY PRESENTED WITHOUT INSURANCE OR THE ABILITY TO PAY AND WERE CONSIDERED 'UNINSURED'. THE MAJORITY OF THE PATIENTS IN THIS SERVICE, ABOUT 81.4% WERE CONSIDERED MEDICALLY INDIGENT. THIS SERVICE TENDS TO HAVE LESS UNINSURED AS NYS INSURANCE COVERAGE FOR PREGNANT WOMEN, NEWBORNS AND CHILDREN IS PROBABLY THE BEST IN THE COUNTRY, BUT IT DID HAVE A SIGNIFICANT PERCENTAGE OF 'UNDERINSURED' PATIENTS. THE OBJECTIVES FOR THE OBSTETRICS PROGRAM IS TO OFFER THE FINEST CARE TO OUR NEIGHBORS BY PROVIDING HIGHLY QUALIFIED PHYSICIANS, PERINATOLOGISTS, NEONATOLOGISTS AND NURSING STAFF PART III LINE 1 LUTHERAN MEDICAL CENTER HAS NO REASON FOR BEING OF ITS OWN; IT EXISTS ONLY TO SERVE THE NEEDS OF ITS NEIGHBORS. LUTHERAN MEDICAL CENTER DEFINES HEALTH AS THE TOTAL WELL BEING OF THE COMMUNITY AND ITS RESIDENTS. BEYOND THE ABSENCE OF INDIVIDUAL PHYSICAL ILLNESS, THIS INCLUDES, AT LEAST, DECENT HOUSING, THE ABILITY TO COMMUNICATE EFFECTIVELY, EMPLOYMENT, EDUCATIONAL OPPORTUNITIES AND CIVIC PARTICIPATION. LUTHERAN MEDICAL CENTER UNDERSTANDS THAT A HOSPITAL IS NOT A COLLECTION OF BUILDINGS, MACHINES AND BEDS, BUT A STAFF OF TALENTED, CREATIVE AND COMMITTED PEOPLE WHO SERVE THE COMMUNITY AS THEY ARE NEEDED. LUTHERAN MEDICAL CENTER WORKS IN PARTNERSHIP WITH ITS NEIGHBORS, EACH RELYING ON THE OTHER AS FRIENDS WHO CARE ABOUT AND ASSIST EACH OTHER. MOTIVATED TO SERVE BY ITS OWN HISTORY WITHIN THE BIBLICAL TRADITION OF FAITH AND TEACHING, AND ORGANIZED AS A NOT-FOR-PROFIT ORGANIZATION ACCORDING TO THE UNIQUELY AMERICAN HERITAGE OF DEMOCRATIC VOLUNTARY ASSOCIATION, LUTHERAN MEDICAL CENTER'S PURPOSE IS TO SERVE AS THE CORPORATE VEHICLE FOR ITS TRUSTEES, MEDICAL AND DENTAL STAFF, NURSES, EMPLOYEES, VOLUNTEERS AND OTHERS, TO CARE FOR THE NEEDS OF OUR NEIGHBORS. *LUTHERAN MEDICAL CENTER IS A SOCIAL MINISTRY OF THE EVANGELICAL LUTHERAN CHURCH IN AMERICA (ELCA) FORM 990, PART IV, LINE 12B LUTHERAN MEDICAL CENTER RECEIVES A COMBINED AUDITED FINANCIAL STATEMENT FOR THE YEAR ENDING DECEMBER 31ST, 2010. THE COMBINED FINANCIAL STATEMENTS ARE PREPARED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN THE UNITED STATES OF AMERICA ("GAAP"). THE COMBINED FINANCIAL STATEMENTS INCLUDE THE ACCOUNTS OF LUTHERAN MEDICAL CENTER AND ALL OF ITS AFFILIATED ORGANIZATIONS. PER THE INSTRUCTIONS TO THE FORM 990, THE ORGANIZATION IS REQUIRED TO RESPOND "YES" TO PART IV, QUESTION 12B IF THE ORGANIZATION IS PART OF A CONSOLIDATED FINANCIAL STATEMENT. SINCE SELECTING "YES" TO THIS QUESTION MAY BE MISCONSTRUED, LUTHERAN IS ATTACHING THIS EXPLANATION TO ITS FORM 990. FORM 990, PART VI, SECTION A, LINE 6 THE EVANGELICAL LUTHERAN CHURCH IN AMERICA ("ELCA"), A MINNESOTA NOT-FOR-PROFIT CORPORATION, IS THE SOLE MEMBER OF LUTHERAN MEDICAL CENTER ("LMC"). FORM 990, PART VI, SECTION A, LINE 7A AS SOLE MEMBER, THE ELCA ELECTS THE GOVERNING BODY OF LMC. FORM 990, PART VI, SECTION A, LINE 7B THE POWERS RESERVED TO MEMBERS UNDER THE NEW YORK NOT-FOR-PROFIT CORPORATION LAW ARE HELD BY THE ELCA. SUCH POWERS INCLUDE: THE RIGHT TO ELECT AND REMOVE MEMBERS OF THE GOVERNING BODY; APPROVAL OF AMENDMENTS TO LMC'S CERTIFICATE OF INCORPORATION; AND THE RIGHT TO APPROVE SIGNIFICANT CORPORATE TRANSACTIONS (E.G.S MERGERS, CONSOLIDATIONS, DISSOLUTION). IN ADDITION, THE ELCA IS VESTED WITH THE POWER TO AMEND THE CONSTITUTION SECTION OF LMC'S CONSTITUTION AND BYLAWS, WHICH SUCH SECTION SETS OUT THE MISSION, NAME AND QUALIFICATIONS OF BOARD MEMBERS, AMONG OTHER SIMILAR ITEMS. FORM 990, PART VI, SECTION B, LINE 11 A COPY OF THE FORM 990 WILL BE PROVIDED TO EACH MEMBER OF THE LUTHERAN MEDICAL CENTER BOARD OF DIRECTORS PRIOR TO ITS FILING WITH THE INTERNAL REVENUE SERVICE (IN EITHER AN ELECTRONIC OR PAPER FORMAT) THE FORM 990 WILL BE REVIEWED WITH THE LUTHERAN MEDICAL CENTER AUDIT & LEGAL COMMITTEE ON SEPTEMBER 14, 2011, THE AUDIT & LEGAL COMMITTEE WILL THEN PROVIDE AN OVERVIEW OF THE FORM 990 TO THE FULL LUTHERAN MEDICAL CENTER BOARD. FORM 990, PART VI, SECTION B, LINE 12C LUTHERAN MEDICAL CENTER REQUIRES ALL BOARD OF TRUSTEES MEMBERS TO COMPLETE AN ANNUAL CONFLICT OF INTEREST AND RELATED MATTERS DISCLOSURE STATEMENT PRIOR TO SERVING ON THE BOARD FOR THE CURRENT YEAR. THIS DISCLOSURE STATEMENT IS MONITORED AND REVIEWED BY LUTHERAN'S GENERAL COUNSEL. IN 2010, LUTHERAN SUPPLEMENTED ITS ORIGINAL DISCLOSURE STATEMENT WITH AN ADDITIONAL QUESTIONNAIRE INTENDED TO COVER ISSUES RAISED BY THE NEW FORM 990, BUT NOT ADDRESSED IN THE ORIGINAL DISCLOSURE STATEMENT. THIS QUESTIONNAIRE WAS COMPLETED BY ALL BOARD OF TRUSTEE MEMBERS, OFFICERS AND KEY EMPLOYEES PRIOR TO THE FILING OF THE FORM 990. FORM 990, PART VI, SECTION B, LINE 15 THE LUTHERAN MEDICAL CENTER BOARD OF TRUSTEES ENGAGES SULLIVAN COTTER & ASSOCIATES, INC TO PROVIDE ANNUAL REPORTS AND SUPPORTING DATA RELATIVE TO EXECUTIVE COMPENSATION. THE COMPENSATION COMMITTEE, ACTING ON BEHALF OF THE FULL LUTHERAN BOARD OF TRUSTEES, RECEIVES AND REVIEWS THESE REPORTS WHICH CONTAIN A) A MARKET ANALYSIS OF THE TOTAL COMPENSATION LEVELS OF SENIOR EXECUTIVES IN RELATION TO THEIR PEERS IN THE MARKETPLACE, B) A REVIEW OF CURRENT COMPENSATION AND BENEFIT PLAN DESIGNS TO ENSURE COMPETITIVENESS TO THE MARKETPLACE, AND C) COMPLIANCE WITH STATE AND/OR FEDERAL REGULATIONS THE COMPENSATION COMMITTEE RELIES UPON THE DATA AND RECOMMENDATIONS PROVIDEO BY SULLIVAN COTTER & ASSOCIATES TO DETERMINE THE COMPENSATION LEVEL OF THE CEO. FOR THE OTHER KEY EXECUTIVE POSITIONS, THE CEO RECOMMENDS ADJUSTMENTS TO THE COMMITTEE WHO IN TURN REVIEW THESE RECOMMENDATIONS UTILIZING THE SULLIVAN COTTER & ASSOCIATES REPORTS AND APPROVES, DISAPPROVES OR ALTERS THE PROPOSALS OF THE CEO FOR THE OTHER SENIOR EXECUTIVES FORM 990, PART VI, SECTION C, LINE 19 LUTHERAN MEDICAL CENTER POSTS ITS CURRENT ANNUAL REPORT ON ITS WEBSITE, WWW.LUTHERANMEDLCALCENTER.COM. THE ORGANIZATION'S FINANCIAL STATEMENTS, GOVERNING DOCUMENTS AND CONFLICTS OF INTEREST POLICY ARE AVAILABLE TO THE PUBLIC UPON REQUEST AND AT THE DISCRETION OF THE MEDICAL CENTER'S GENERAL COUNSEL. COMPENSATION FORM 990, PART VII & SCHEDULE J THE COMPENSATION REPORTED ON BOTH PART VII AND SCHEDULE J OF THE FORM 990 FOR THE CERTAIN OFFICERS AND KEY PERSONNEL INCLUDING, WENDY Z GOLDSTEIN, RICHARD LANGFELDER, BARBARA ARKY, FRANK SCHEETS REPRESENTS AMOUNTS PAID FOR SERVICES RENDERED TO LUTHERAN MEDICAL CENTER AND ITS AFFILIATED ORGANIZATIONS WITHIN LUTHERAN HEALTHCARE THE FORM 990 REQUIRES COMPENSATION TO BE REPORTED BASED ON THE ORGANIZATION THAT PROVIDES THE OFFICER HIS OR HER W-2, HOWEVER, REPORTING COMPENSATION IN THIS FASHION DOES NOT TAKE INTO ACCOUNT THE INTEGRATED RELATIONSHIPS WITHIN A HEALTH SYSTEM THAT REQUIRE OFFICERS AND EMPLOYEES TO ALLOCATE THEIR TIME AND SERVICES AMONG MANY ORGANIZATIONS. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 747,000. DEFINED BENEFIT PLAN ADJUSTMENTS -4,279,000. TRANSFER OF NET ASSETS TO/FROM RELATED PARTIES -969,000. ROUNDING ADJUSTMENT 243. TOTAL TO FORM 990, PART XI, LINE 5: -4,500,757. PART III LINE 4A THE LARGEST PROGRAM OFFERED BY LUTHERAN IS THE MEDICAL/SURGICAL INPATIENT SERVICE, WHICH CAN ACCOMMODATE APPROXIMATELY 274 PATIENTS ON A DAILY BASIS. MANY RESIDENTS OF THE SOUTHWEST AREA OF BROOKLYN RELY ON LUTHERAN AS ITS MAIN HEALTH CARE PROVIDER. DURING 2010, THE MEDICAL CENTER ADMITTED, TREATED AND DISCHARGED 15,705 PATIENTS FROM THE MEDICAL/SURGICAL PROGRAM. THESE PATIENTS REMAINED IN-HOUSE ON AVERAGE FOR 5.5 DAYS, RESULTING IN APPROXIMATELY 85,839 DAYS OF MEDICAL/SURGICAL CARE PROVIDED. A SIGNIFICANT PORTION OF THESE PATIENTS JUST OVER 4%, PRESENTED WITHOUT ANY FORM OF INSURANCE COVERAGE OR THE ABILITY TO PAY FOR THE CARE RECEIVED. IN CY 2010 THESE UNINSURED MEDICAL/SURGICAL PATIENTS GENERATED IN EXCESS OF $7.0 MILLION OF CHARGES FOR SERVICES THAT WILL GO UN-REIMBURSED BY THE PATIENT OR ANY THIRD PARTY PAYER. IN ADDITION TO THE UNINSURED PATIENTS, LMC TREATS A HIGH NUMBER OF WHAT IS CONSIDERED MEDICALLY INDIGENT OR 'UNDER-INSURED' PATIENTS. THESE PATIENTS INCLUDING THOSE WITH MEDICAID COVERAGE MAKE UP A SIGNIFICANT PORTION OF THE PATIENTS SERVED BY LMC. IN THE INPATIENT MEDICAL/SURGICAL PROGRAM ALONE, APPROXIMATELY 28% OF THE TOTAL PATIENTS TREATED WERE CONSIDERED MEDICALLY INDIGENT. ALTHOUGH THIS CAN BE FINANCIALLY CHALLENGING TO A HEALTH CARE PROVIDER, LUTHERAN VIEWS THIS CHALLENGE AS PART OF ITS OVERALL MISSION, IN THAT IT EXISTS ONLY TO SERVE THE NEEDS OF ITS NEIGHBORS AND TO KEEP PEOPLE HEALTHY AND TO THE EXTENT POSSIBLE, OUT OF THE HOSPITAL. LUTHERAN HAS SUCCESSFULLY INCREASED ACCESS TO HIGH QUALITY COMMUNITY BASED HEALTH CARE SERVICES AND HAS WORKED HARD TO REDUCE MEDICAL DISPARITIES IN THE COMMUNITY IT SERVES, WHILE ALSO STAYING CURRENT WITH PATIENT SAFETY INITIATIVES AND ADVANCED TECHNOLOGY, ALL WHICH ARE NECESSARY TO CONTINUE ITS MISSION TO PROVIDE A HIGH QUALITY SERVICE TO THOSE IN NEED IN ITS SURROUNDING COMMUNITIES. LUTHERAN AUGUSTANA CECR INC 5434 2ND AVE BROOKLYN NY 11220 112150953 EXTENDED CARE NY 501(C)(3) 9 N/A 0 HEALTH PLUS PREPAID HEALTH SERVICES PLAN 5800 3RD AVENUE BROOKLYN NY 11220 113245559 INSURANCE NY 501(C)(4) N/A N/A 1 SHORE HILL HOUSING COMPANY INC 9000 SHORE ROAD BROOKLYN NY 11209 237405105 HOUSING NY 501(C)(3) 7 N/A 0 HARBOR HILL HOUSING 150 55TH STREET BROOKLYN NY 11220 113152691 HOUSING NY 501(C)(3) 9 N/A 0 SUNSET BAY COMMUNITY SERVICES 150 55TH STREET BROOKLYN NY 11220 112439925 HOUSING NY 501(C)(3) 7 N/A 0 LMC COMMUNITY FOUNDATION 150 55TH STREET BROOKLYN NY 11220 237439784 SUPPORT ORG. NY 501(C)(3) 11B N/A 0 COMMUNITY CARE ORGANLZATLON 246 55TH STREET APT AA4 BROOKLYN NY 11220 113001682 HOME HEALTH NY 501(C)(3) 9 N/A 0 SUNSET GARDENS HOUSING CORP 150 55TH STREET BROOKLYN NY 11220 203461755 HOUSING NY 501(C)(3) 7 N/A 0 LMC HEALTH SYSTEM INC 150 55TH STREET BROOKLYN NY 11220 113589771 SUPPORT ORG. NY 501(C)(3) 11A N/A 0 LMC PHYSICIAN SERVICES PC 150 55TH STREET BROOKLYN NY 11220 113192423 PHYS. SERVICE NY 501(C)(3) 11C N/A 0 SHORE ROAD RADIOLOGY ASSOCIATES PC 150 55TH STREET BROOKLYN NY 11220 112665457 HEALTHCARE NY 501(C)(3) 11C N/A 0 SHORE ROAD CARDIOLOGY ASSOCIATES PC 150 55TH STREET BROOKLYN NY 11220 112670952 HEALTHCARE NY 501(C)(3) 11C N/A 0 SHORE ROAD COMMUNITY SERVICES 150 55TH STREET BROOKLYN NY 11220 NURSING & HOUSING NY LMC COMMUNITY FOUNDATION C SHORE HILL HOUSING ASSOCIATES 150 55TH STREET BROOKLYN NY 11220 HOUSING NY N/A C 1 1 1 1 0 0 0 0 1 1 1 1 1 1 1 0 0 1 HEALTH PLUS PREPAID HEALTH SERVICES PLAN E 530048 HEALTH PLUS PREPAID HEALTH SERVICES PLAN J 444852 HEALTH PLUS PREPAID HEALTH SERVICES PLAN K 45355630 HEALTH PLUS PREPAID HEALTH SERVICES PLAN N 2237170 HEALTH PLUS PREPAID HEALTH SERVICES PLAN R 2500000