2011-02-04T07:58:57-06:00 2010-06-30 ParenteBeard LLC 1650 Market Street Suite 4500 Philadelphia PA 19103 990 2009-07-01 520607945 Union Hospital of Cecil County Inc UNIO 4103984000 106 Bow Street Elkton MD 219215596 LAURIE R BEYER CPA 4103984000 2011-02-03 1 Julius Green CPA 2159720701 2009 2016-02-24 21:20:13Z Kenneth S Lewis MD JD 106 Bow Street Elkton MD 219215596 148039012 0 X www.uhcc.com X 1903 MD Provide healthcare services to the residents of Cecil County, MD, and the surrounding area. 15 14 1206 402 855538 -412749 1326143 977572 125031434 128832816 1290256 -146067 890920 911141 128538753 130575462 9104910 2642957 0 59824778 61358579 0 0 64786860 71462890 133716548 135464426 -5177795 -4888964 166050325 174781521 89130780 97849767 76919545 76931754 Union Hospital of Cecil County's mission is to provide healthcare services to the residents of Cecil County, Maryland, Western New Castle County, Delaware, and Southern Chester County, Pennsylvania. 0 0 131888886 2642957 127989123 Union Hospital of Cecil County's mission is to provide health care services to the residents of Cecil County, Maryland, Western New Castle County, Delaware, and Southern Chester County, Pennsylvania, that represent quality and value and are provided with modern technology, compassionate nurses and staff, and convenient to the citizens of our community. These Healthcare services are provided regardless of race, creed, sex, national origin, handicap, age, or ability to pay. Although reimbursement for services rendered is vitally important to the operation, stability, and viability of Union Hospital of Cecil County, we recognize that not all members of our community are in the financial position to purchase essential medical services. Therefore, consistent with Union Hospital's commitment to serve all members of Cecil county, Maryland, free care and/or subsidized care and health activities and programs to support the community will be considered where the need and/or an individual's inability to pay coexists. These activities include community education, special programs for the elderly, special programs for the physically/mentally challenged, medically underserved and a variety of broad community support activities.Union Hospital of Cecil County serviced 7,986 admissions providing 29,096 patient days to inpatients in Fiscal Year 2010 of which:1) Patients covered under the Medicare Program were 3,334 admissions and 14,215 patient days2) Patients covered under the Medicaid Program were 322 admissions and 1,225 patient days3) Patients covered under the Medicaid HMO Program were 1,493 admissions and 4,285 patient days4) Patients covered under the Medicare HMO Program were 71 admissions and 337 patient daysCharity care is also provided through many reduced price services and free programs offered throughout the year based upon activities and services that Union Hospital of Cecil County believes will serve a bona fide community need. These include:a) Adult Day Care Services for the elderly and physically/mentally challengedb) Support groups for cancer patients and families, diabetes, alcoholics anonymous, ostomy and smokelessc) Offering and conducting free blood pressure, cholesterol screenings and prostate screeningsd) In conjunction with the State of Maryland and the local Department of Health, offering and conducting a cancer screening program for indigent femalese) Providing meeting facilities for a variety of nonprofits and volunteer fire companiesf) Hospital staff volunteers on nonprofit organization boards such as the American Cancer SocietyDuring the year, Union Hospital of Cecil County provided $16,063,000 in uncompensated care. 131888886 1 1 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 1 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 152 0 1 1206 1 1 1 0 0 0 0 0 0 0 0 15 14 0 0 0 0 0 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 MD X Carla Moore 4103984000 106 Bow Street Elkton MD 21921 Kenneth S Lewis MD JD 40.00 X X 0 565675 117472 Harland Graef 1.00 X X 0 0 0 Richard Guttendorf 1.00 X X 0 0 0 EUGENE MACKIE 1.00 X X 0 0 0 Mary Bolt PHD 1.00 X 0 0 0 JACK GOLDSTEIN 1.00 X 0 0 0 PHILLIP FARMER 1.00 X 0 0 0 Ronald Graybeal 1.00 X 0 0 0 HENRY PASSI 1.00 X 0 0 0 SHEELMOHAN SACHDEV MD 1.00 X 0 0 0 TIMOTHY SMITH 1.00 X 0 0 0 DWIGHT THOMEY 1.00 X 0 0 0 Martin J Healy 1.00 X 0 0 0 Martha Hosford MD 1.00 X 0 0 0 RICHARD SZUMEL MD 1.00 X 0 0 0 Laurie R Beyer CPA 40.00 X 0 235078 25208 DAVID GIPSON 40.00 X 0 223954 24560 JOANNE MILLER 40.00 X 0 193149 13420 JOSE MA 40.00 X 0 286327 26517 PETER GLOGGNER 40.00 X 165428 0 8476 MARY JANE KAMPS 40.00 X 156962 0 14377 Nader J Dababneh MD 40.00 X 533144 0 20316 Irfan M Hisamuddin MD 40.00 X 394032 0 22030 Rani S Chintam MD 40.00 X 404689 0 10321 John M Hebeka MD 40.00 X 317505 0 22566 David W Compton MD 40.00 X 310423 0 19148 2282183 1504183 324411 59 0 1 0 TEMPLETON READING LLC 1302 UPPER GLENCOE ROAD SPARKS MD 21152 PHYSICIAN RADIOLOGY SERVICES 2515017 MD-IT TRANSCRIPTION SERVICES LLC 4940 PEARL EAST CIRCLE BOULDER CO 80301 TRANSCRIPTION SERVICES 561427 PHYSIOTHERAPY ASSOCIATES INC 855 SPRINGDALE DRIVE EXTON PA 19341 PHYSICAL THERAPY SERVICES 537185 Harne Song and Woo PA 2007 Rockspring Road Forest Hill MD 21050 PHYSICIAN UROLOGY SERVICES 450000 FINANCIAL HEALTH STRATEGIES INC 704 QUINCE ORCHARD ROAD GAITHERSBURG MD 20878 COLLECTIONS ON PATIENT ACCOUNTS 313468 16 939572 38000 8000 977572 Net Patient Service Re 621990 126792646 126792646 Laboratory Revenue 621500 843693 843693 Other Operating Revenu 621990 677050 677050 ADULT DAY CARE 623990 408795 408795 Lifeline 900099 110632 110632 128832816 1258310 1258310 50837 50837 184549 70659 113890 113890 113890 15903541 34136 17194433 198458 -1290892 -164322 -1455214 -1455214 Cafeteria/Food Service 722210 767832 767832 Purchase Discounts 900099 16674 16674 UBI LOSS FROM PARTNERS 541900 11845 11845 900 900 797251 130575462 127989123 855538 753229 2642957 2642957 345243 345243 50953571 50322119 631452 -235948 -208403 -27545 6598245 6491212 107033 3697468 3643953 53515 2931867 1465933 1465934 271142 271142 126025 126025 112194 112194 15928821 15658577 270244 519646 519646 21638892 21572997 65895 96600 96600 2087374 2087374 102193 95855 6338 23477 981 22496 3949057 3949057 8349876 8349876 1791466 1791466 Bad Debt 10819843 10819843 Repairs & Maintenance 2046495 2046495 Dues/Accreditations 397541 271967 125574 employee relations 178677 178677 PUBLICATIONS 91704 91704 135464426 131888886 3575540 0 63011 205919 3313138 3426868 17071711 16872772 20000 2865224 2310616 1838694 1686189 1115404 1314477 154041567 69086844 77888934 84954723 48256763 53439337 5543093 5030779 8074353 5539841 166050325 174781521 10713030 10622232 74468276 83056483 1502326 2447148 4171052 89130780 97849767 X 74993171 75819074 1926374 1112680 76919545 76931754 166050325 174781521 X 0 1 1 X 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1134905 1134905 69866900 20780756 49086144 375000 375000 0 81040621 47103448 33937173 1624141 827640 796501 84954723 Third Party Advances 1834657 Capital Lease obligations 1836395 ESTIMATED MEDICAL MALPRACTICE CLAIMS LIABILITY 500000 4171052 130575462 135464426 -4888964 5412116 -510943 4901173 12209 135364441 5412116 -623137 4788979 130575462 0 130575462 135352232 0 135352232 112194 112194 135464426 Part X: Description of Uncertain Tax Positions Under FIN 48: The Hospital 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 and 2009. Part XI, Line 8 - Other Adjustments: CHANGE IN INTEREST IN NET ASSETS OF FOUNDATION & SUBSIDIARY: -510943. Part XII, Line 2d - Other Adjustments: CHANGE IN INTEREST IN NET ASSETS OF FOUNDATION & SUBSIDIARY: -510943. INVESTMENT FEES: -112194. 1 1 1 X 1 X 0 1 0 1 1 1440650 1440650 0.01160 23072396 23072396 24513046 23072396 1440650 0.01160 762513 243781 518732 0.00420 446388 446388 0.00360 951035 408795 542240 0.00440 175356 10287 165069 0.00130 2335292 662863 1672429 0.01350 26848338 23735259 3113079 0.02510 5175 5175 0.00000 9979 9979 0.00010 921 921 0.00000 2748 2748 0.00000 2550 2550 0.00000 10454 10454 0.00010 1092 1092 0.00000 32919 32919 0.00020 1 10008355 103086 48123043 44513815 3609228 X 1 0 Union Hospital of Cecil County Inc

106 Bow Street Elkton MD 21921

X X X Part I, Line 7: All information is based on actual cost plus overhead. Overhead is a hospital average percentage of overhead to direct costs. Direct costs exclude bad debt expense. Part I, Line 7f: The amount of bad debt expense included on Form 990, Part IX, line 25 but subtracted for purposes of calculating the percentage in this column is $10,819,843. Part III, Line 4: Costing methodology used to determine bad debt expense at cost and estimated amount attributable to patients eligible under the charity care policy: The methodology assumes that the percentage of charity care to total revenue can be applied to the amount of bad debt expense for the year.The organization accounts for discounts and payments on patient accounts in determining bad debt expense as follows: Discounts and payments are offset against bad debt expense.Method the organization uses to determine the amount that reasonably could be attributable to patients who likely would qualify for financial assistance under the charity care policy, if sufficient information had been available to make a determination of their eligibility: The Hospital uses the average charity care write-off per charity case multiplied by the number of cases not approved due to lack of documentation.Footnote to the organization's financial statements that describes bad debt expense: 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 accounts is estimated based upon a periodic review of the accounts receivable aging, payor classifications and application of historical write-off percentages. Part III, Line 8: Costing methodology used to determine the Medicare allowable costs reported in the organization's Medicare Cost Report: Medicare allowable costs equal Medicare revenue adjusted for the Hospital total ratio of patient care costs to charges due to the fact that Medicare pays full charges in Maryland.Shortfall treated as community benefit: In the State of Maryland, Medicare pays full charges. There is no shortfall that should be treated as a community benefit. For the last 30 years, Maryland hospitals have met their community benefit obligations in a unique manner that builds the costs of uncompensated care--charity care and patient bad debt--and graduate medical education into the rates that hospitals are reimbursed by all payors. The system is based in federal and state law and benefits all Maryland residents, including those in need of financial assistance to pay their hospital bills.Maryland is the only state in which all payors--governmentally-insured, commerically--insured, or self pay--are charged the same price for services at any given hospital.Under this system, Maryland hospitals are regulated by a stage agency--the Health Services Cost Review Commission (HSCRC)--that is required to:1) Publicly disclose information on the cost and financial position of hospitals;2) Review and approve hospital rates;3) Collect information detailing transactions between hospitals and firms with which their trustees have a financial interest; and,4) Maintain the solvency of efficient and effective hospitals.Since 2000, the rate setting commission has had its own framework for reporting hospitals' community benefits and issuing a report annually regarding hospitals' community benefit totals. That report is available on http://www.hscrc.state.md.us/community_benefits/documents/CBR_FY2007_final_report.pdf.Because of this unique structure, Maryland hospitals' community benefits numbers will not compare with the rest of the nation's hospitals. However, Maryland hospitals meet or exceed the community benefit standard established by the IRS in 1969. Additional detail illustrating this can be found within this Schedule H report.Maryland's regulatory system creates a unique process for hospital payment that differs from the rest of the nation. The Health Services Cost Review Commission (HSCRC) determines payment through a rate-setting process and all payors, including governmental payors, pay the same amount for the same services delivered at the same hospital. Maryland's unique all-payor system includes a method for referencing Uncompensated Care in each payors' rates, which does not enable Maryland hospitals to breakout any offsetting revenue related to Uncompensated Care. Community benefits expenses are equal to Medicaid revenues in Maryland, as such, the net effect is zero. The exception to this is the impact on the hospital of its share of the Medicaid assessment. In recent years, the state of Maryland has closed fiscal gaps in the state Medicaid budget by assessing hospitals through the rate-setting system. Part VI, Line 2: Improving the health of our community requires collaboration among community members and active participation in the planning and implementation of health programs. To identify community need, Union Hospital works with community leaders from local service providers such as the Cecil County Health Department. Union Hospital participates in the needs assessment process driven by the local Health Department and in FY09, we provided the funding for the Cecil County Community Health Survey.The Cecil County Community Health Survey conducted in the spring of 2009 collected health data that will be used to develop programs to address the priority health problems identified by the county's community task forces. The data collected through the survey are specific to the county and represent a large enough sample size that allows for the generalization of the results to the county population. The first health survey conducted in October 1999 provided data that was used to determine baseline information about the county's most pressing health problems. The community task forces used the results to review their progress and identify new health issues that were not evident or could not be measured before.In 2000, following this review process, existing task forces developed new goals and objectives, and new task forces were formed to address the new priority health problems. The second health survey conducted in 2004 provided data that was used to gauge the health of the county five years after the baseline survey. This survey's results were used by the county task forces to develop new goals and objectives as well as measure changes in the county's health status from 1999 to 2004. The Community Health Advisory Committee (CHAC), which includes Union Hospital staff and members of our medical staff, also used these results to develop the Cecil County Community Health Plan for 2010, which is an assessment of the county's health problems, and the identification of priorities and strategies to address these problems. Each task force developed its own goals and objectives, which were then combined to represent the goals and objectives of CHAC. The five task forces are: Accidents, Alcohol and Drugs, Cancer, Lifestyles and Nutrition, and Tobacco. Each task force developed questions for the 2009 survey that would meet their need for information. Part VI, Line 3: Union Hospital of Cecil County utilizes a Financial Assistance (Charity Care) policy to ensure that Hospital staff follow a consistent and equitable process in granting charity/financial assistance to appropriate patients while respecting the individual's dignity. The policy is in agreement with the established Maryland State Financial Assistance Guidelines regarding charity care.The policy describes the application process for the Financial Assistance Program, the information required to verify income and assets, the timeline for application review, and the tiered adjustments based on the Federal Poverty Guidelines.The application for Financial Assistance is available to all underinsured and uninsured patients of Union Hospital. Applications and signage are located throughout the hospital, emergency room, and outpatient areas. In addition, the Financial Assistance application and brochure (in English and Spanish) are available on the hospital's website. All inpatient, self pay patients are visited by finance staff and screened for the Financial Assistance program as well as for Medicaid and other state and county programs. Following discharge from the hospital, each patient receives a summary of charges which includes notice of the Financial Assistance program and a designated contact telephone number.Any individual who presents to the Business Office of the Hospital in person to discuss his/her bill is also provided with a Financial Assistance Application.Every January, the Hospital places an advertisement in the local paper outlining its financial assistance policy.All Financial Assistance Applications received are processed for eligibility. No one is turned away. Patients who are not eligible for charity care are referred to the Cecil County Health Department to determine if other assistance is available. Part VI, Line 4: Union Hospital's primary service area include the towns of Elkton, Elk Mills, Childs, Chesapeake City, Earleville, Warwick, Cecilton, North East, Charlestown, and Rising Sun in Cecil County. The Hospital's secondary service area includes the towns in Western Cecil County of Conowingo, Colora, Port Deposit, Perryville, and Perry Point; in Delaware Bear, Middletown, and Townsend; and Southern Chester County, Pennsylvania.In 2009, the total population of Cecil County was estimated at 100,796, there were 40,971 households, and 26,314 families residing in the county. An average of 50.5% of the population in our service area is female. Approximately 11.9% of the population is 65+. The population density was 247 people per square mile. The racial makeup of the county was 91.3% White and 6.1% African American. The median age is 36 years. The median income for a household in the county was $61,131. About 5.40% of families and 7.20% of the population were below the poverty line, including 9.20% of those under age 18 and 7.70% of those ages 65 and over. In fiscal year 2009, 7% of the hospital's patients were uninsured and 17.3% were Medicaid recipients. Part VI, Line 5: Governed by a Board of Directors made up of community leaders, Union Hospital's strategic initiatives are evaluated, and with the assistance of Executive Management, determinations are made as to the primary program focus. Each year, Union Hospital fulfills our commitment to improve the health of our community and meet the identified needs by sponsoring community-based clinical services (such as free screenings and clinics), offering health education programs, support groups and self-help programs, providing needed treatments to the underserved and training the future leaders of health care. Our employees also are dedicated to supporting area organizations that serve our community. Union Hospital strives to meet the health and wellness needs of our community. Through the community needs assessment and other community data, we learned that several areas can benefit from our health care expertise and monetary support. These include services for seniors through our Adult Day Services Program; providing medications through our community assisted medication program (CAMP); support of the uninsured/ underinsured; address wellness issues in the workforce; education regarding childbirth and parenting; and health and education. Notable program offerings include "Dining with the Doc" seminars where members of Union Hospital's medical staff deliver free educational seminars and screenings on a variety of health topics; health fairs, and community screenings; caregiver support groups; and leadership in the development of programming and education around Diabetes. Union Hospital participates in many community initiatives designed to address health care issues; sometimes we are the leader and at times we are a participant and supporter. Union Hospital leadership extends to the individual gift of time with our executives serving on boards of community organizations. Part VI, Line 6: Consistent with our nonprofit status, Union Hospital uses our revenue to reinvest in our facility, technology and medical services for the community, and collaboration with Community partners to invest in needed community programs such as Principio Health Center, which includes a state-of-the-art dental facility.Union Hospital also collaborates with the United Way of Cecil County to address community needs in the areas of health, education and income. Our president and CEO sits on the United Way Board of Directors. In addition, Union Hospital hosts an annual United Way workplace giving campaign to support United Way initiatives. Part VI, Line 7: Union Hospital of Cecil County, Inc. is part of an affiliated health care system in which Affinity Health Alliance, Inc. is the parent entity. Affinity Health Alliance, Inc.'s purpose is to support the Union Hospital of Cecil County in providing health care and health care related services through the effective management of all affiliated corporations. Specifically, this involves coordinating system wide policies, fundraising and strategic planning programs to provide health care services in response to the medical, human and related service needs of the community.Other tax-exempt organizations in the group include the Union Hospital of Cecil County Foundation, Inc., Cecil County Breeders Fair and Union Hospital of Cecil County Health Services, Inc.The Foundation conducts and supervises fundraising activities on behalf of its tax-exempt affiliates. The Foundation engages in corporate fundraising, capital campaigns, special events, activities, and a multi-faceted communication program that appeals to private and corporate contributors.CECIL COUNTY BREEDERS FAIR, INC. IS ORGANIZED FOR THE PURPOSE OF SUPPORTING THE UNION HOSPITAL OF CECIL COUNTY THROUGH FUNDRAISING ACTIVITIES CONSISTING OF THE RUNNING OF THE FAIR HILL RACES.Union Hospital of Cecil County Health Services, Inc.'s mission is to own, manage and maintain properties for health related ventures to serve Cecil County and the surrounding areas. The activities of this corporation complement and augment the health care activities of the Hospital. MD 0 Union Hospital of Cecil County Health Services Inc 106 Bow Street Elkton MD 21921 521794553 501(c)(3) 2000000 Charitable Activities Union Hospital of Cecil County Ventures Inc 106 Bow Street Elkton MD 21921 521793691 642957 Capital Contribution 1 1 Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: The organization only provides assistance to its affiliated entities. It does not provide grants to other organizations. X X X 1 1 X X X X X 0 1 0 0 0 0 0 1 0 Kenneth S Lewis MD JD 0 415359 0 60200 0 90116 0 97350 0 20122 0 683147 0 0 Laurie R Beyer CPA 0 201131 0 23167 0 10780 0 6471 0 18737 0 260286 0 0 DAVID GIPSON 0 192197 0 19578 0 12179 0 6051 0 18509 0 248514 0 0 JOANNE MILLER 0 165317 0 19078 0 8754 0 5241 0 8179 0 206569 0 0 JOSE MA 0 248517 0 24980 0 12830 0 7335 0 19182 0 312844 0 0 PETER GLOGGNER 148101 0 9972 0 7355 0 2336 0 6140 0 173904 0 0 0 MARY JANE KAMPS 140095 0 9532 0 7335 0 2304 0 12073 0 171339 0 0 0 Nader J Dababneh MD 470113 0 62832 0 199 0 3450 0 16866 0 553460 0 0 0 Irfan M Hisamuddin MD 345673 0 48160 0 199 0 6825 0 15205 0 416062 0 0 0 Rani S Chintam MD 374477 0 28750 0 1462 0 6775 0 3546 0 415010 0 0 0 John M Hebeka MD 307813 0 9360 0 332 0 6825 0 15741 0 340071 0 0 0 David W Compton MD 300529 0 9672 0 222 0 3450 0 15698 0 329571 0 0 0 Part I, Line 1a The organization's President & CEO, Dr. Kenneth Lewis, receives the following benefits which were included in taxable compensation: a) Leased car payments, gas, repairs and insurance b) Tax return preparation c) Attorney registration fee d) Social club dues Part I, Line 4a The organization's President & CEO, Dr. Kenneth Lewis, participates in a supplemental, non-qualified retirement plan under Section 457(f) of the Internal Revenue Code. $90,000 has been contributed to the plan each calendar year since 2007 ($90,000 each on 12/31/07, 12/31/08 and 12/31/09). The right to receive payments under the Plan shall be forfeited in the event that employment with the Hospital terminates prior to the vesting date for any reason other than involuntary termination without cause, death, or disability. The entire balance of the account shall vest and be paid in a single lump-sum payment on or after January 1, 2011 and on or before March 15, 2011. Part I, Line 7 A portion of the bonuses and merit increase are tied to the organizational goals, such as patient satisfaction, quality, employee turnover, etc. COUNTY COMMISSIONERS OF CECIL COUNTY 526000919 2009-12-01 16000000 FINANCING THE ACQUISITION, CONSTRUCTION, RENOVATION OF HOSPITAL FACILITIES 0 0 Maryland Health & Higher Education Facilities Authority 520936091 5742168A8 2005-07-14 31401189 FINANCING THE ACQUISITION, CONSTRUCTION, RENOVATION OF HOSPITAL FACILITIES 0 0 10093688 140715 9952972 2010 1 0 0 1 35836388 1621884 576473 33640038 2007 0 0 1 1 0 0 1 0 1 0.00000 0.00000 0.00000 1 0 0 1 0 1 0.00000 0.00000 0.00000 1 0 1 0 0 0 1 0 0 1 bank of america na 35.000000000000 0 0 0 Form 990, Part VI, Section A, line 7a Affinity Health Alliance, Inc. is the sole member of the Union Hospital of Cecil County, Inc. The bylaws of the Hospital provide that its directors are appointed by its sole member. Form 990, Part VI, Section A, line 7b Affinity Health Alliance, Inc. is the sole member of the Union Hospital of Cecil County, Inc. The bylaws of the Hospital provide that its sole member may amend its bylaws. Form 990, Part VI, Section B, line 11 The Finance Committee of the organization reviews the Form 990 prior to filing with the Internal Revenue Service. Form 990, Part VI, Section B, line 12c Board members are required to annually disclose any potential conflict of interest. The organization's CEO reviews the signed annual disclosures. The Corporate Compliance Officer is made aware of any disclosed conflict, investigates the conflict, and reports back to the Board of Directors. The Board considers the facts and makes an appropriate finding. Any board member with a conflict must abstain from Board deliberations and voting on the matter. All vice presidents annually receive a list of the individuals under their supervision who may have a potential conflict of interest. The list is comprised of all managers, certain professional staff who may have responsibility negotiating with vendors, and any other persons that hospital executives deem appropriate. Each Vice President reviews the conflict of interest policy with their designated employees, and each employee is required to sign a form stipulating whether or not they have a conflict. The forms are reviewed by the Vice President of Human Resources. If a conflict is noted, it is brought to the attention of the appropriate Vice President and the CEO to determine whether operational changes need to occur because of the potential conflict. Form 990, Part VI, Section B, line 15 The Compensation Committee of the organization's Board of Directors is responsible for setting the overall compensation philosophy of the organization, as well as setting, monitoring and reviewing the compensation package of the organization's CEO and other members of the executive management team. The Committee uses relevant market information, including the use of an independent compensation consultant and compensation studies or surveys, to set compensation. During the fiscal year ended June 30, 2010, an independent compensation consultant provided the following services: Executive Compensation and Peformance Evaluation; Employment Contract Review; and Performance Evaluation and Salary/Survey Analysis. Form 990, Part VI, Section C, line 19 The organization will make its governing documents, conflict of interest policy, and financial statements available to the public upon request. Schedule K Supplental Information Schedule K, Part II, line 1, Issue B: This number represents sale proceeds plus investment earnings in the construction fund, plus investment earnings in the cost of issuance fund, plus investment earnings in the debt service reserve fund during the construction period. Schedule K, Part II, line 7, Issue B: This number represents total proceeds less proceeds deposited into a reserve fund less proceeds spent on issuance costs. Schedule K, Part IV, line 5, Issue A: The proceeds used to refund the taxable debt were not invested beyond their temporary period. The proceeds used for "new money" expenditures projects are still subject to their temporary period. Schedule K, Part IV, line 6, Issue A: The portion of the issue used to refund the taxable debt qualified for an exception to rebate. The remainder of the issue may qualify for an exception to rebate but it is too early to make that conclusion. Union Hospital of Cecil County Foundation Inc 106 Bow Street Elkton MD 21921 521794552 FUNDRAISING & SUPPORT MD 501(c)(3) Line 11c, III-FI N/A Union Hospital of Cecil County Health Services Inc 106 Bow Street Elkton MD 21921 521794553 HEALTHCARE PROPERTY MANAGEMENT MD 501(c)(3) Line 9 N/A Cecil County Breeders Fair Inc 106 Bow Street Elkton MD 21921 516018180 FUNDRAISING & SUPPORT MD 501(c)(4) N/A Affinity Health Alliance Inc 106 Bow Street Elkton MD 21921 521794697 MANAGEMENT & SUPPORT MD 501(c)(3) Line 11c, III-FI N/A Union Hospital of Cecil County Ventures Inc 106 Bow Street Elkton MD 21921 521793691 MEDICAL SERVICES MD N/A C CECIL COUNTY ANESTHESIOLOGISTS INC 106 Bow Street Elkton MD 21921 521886386 INACTIVE MD N/A C EMERGENCY MEDICAL SPECIALISTS OF CECIL COUNTY 106 Bow Street Elkton MD 21921 521881684 INACTIVE MD N/A C 0 1 1 0 0 0 0 0 0 1 0 0 0 0 0 0 1 0