2011-11-14T15:49:20-06:00 2010-12-31 DELOITTE TAX LLP 1111 BAGBY STREET SUITE 4500 HOUSTON TX 770022591 990 2010-01-01 741180155 THE METHODIST HOSPITAL METH 8326676160 6565 Fannin No GB240 Houston TX 770302707 Ronald G Girotto 7134412221 2011-11-14 1 Nancy Z Evetts 7139822000 2010 2016-02-24 21:20:13Z Ronald G Girotto 6565 Fannin No GB240 Houston TX 770302707 5194170163 0 5792 X www.methodisthealth.com X 1946 TX PROVIDE MEDICAL CARE (SEE MISSION STATEMENT ON PAGE 2) 24 21 7786 1489 447901 0 10670118 8808654 1185216495 1187213665 50593825 -24794667 113537283 24203482 1360017721 1195431134 5891051 6685648 0 0 500139242 503504187 0 0 0 707671822 638104199 1213702115 1148294034 146315606 47137100 4617059746 4871953096 2042694012 2038986438 2574365734 2832966658 X To provide high quality, cost-effective health care that delivers the best value to the people we serve in a spiritual environment of caring in association with internationally recognized teaching and research. 0 0 943881815 6685648 1187213665 SEE SCHEDULE OCurrently The Methodist Hospital operates 934 staffed beds in its Texas Medical Center facilities. The Methodist Hospital recorded 389,119 visits during 2010 which was comprised of 306,329 outpatient visits, 45,254 emergency room visits and 37,536 inpatient visits and performed 16,245 inpatient surgeries and 17,173 outpatient surgeries in 2010.The principal medical services available at The Methodist Hospital are Anesthesiology, Cardiovascular Surgery, Oral & Maxillofacial-Hospital Dentistry, Dermatology, Family Medicine, General Surgery, Internal Medicine, Atherosclerosis/Lipoprotein, Cardiology, Clinical Immunology, Gastroenterology, General Medicine, Hematology, Hypertension, Infectious Diseases, Medical Genetics, Metabolic and Endocrine Diseases, Nuclear Medicine, Oncology, Pharmacology, Pulmonary Diseases, Renal Diseases, Rheumatology, Neurophysiology, Neurosurgery, Obstetrics and Gynecology, Ophthalmology, Orthopedic Surgery, Otolaryngology-Head & Neck Surgery, Pathology, Pediatrics, Physical Medicine and Rehabilitation, Plastic Surgery, Psychiatry, Radiology, Radiotherapy, and Urology. The Methodist Hospital also offers a range of additional patient services, including ambulatory surgery, a blood donor center, diabetes treatment in a dedicated inpatient unit, a rehabilitation center, a skilled nursing facility, and a broad range of preventive health care instruction, including smoking cessation, stress management, weight control, and cardiac and pulmonary rehabilitation.General outpatient services offered by The Methodist Hospital include audiology, speech pathology, psychiatric services, diagnostic cardiology (including nuclear cardiology, echocardiography, electrocardiography, pacemaker evaluation, and coronary catheterization), chronic renal dialysis, endoscopy, emergency services, general and diagnostic radiology (including fluoroscopy, ultrasound, mammography, myelography, CT scanning, and MRI), nuclear medicine, pathology, peripheral vascular laboratory, dermatology, physical medicine, radiotherapy, sleep studies and neurophysiologic evaluations, and surgery.The Methodist Hospital operates a multi-organ transplant center. Transplants being performed at present include kidney, heart, lungs, liver, pancreas, islet cell and bone marrow. The Methodist Hospital performed the first islet cell transplant in Texas of liver cells from a donor's pancreas to the liver of a diabetic patient resulting in donor cells producing insulin.The Methodist Hospital responds to the community's needs not only through the provision of medical care, but also through education of health professionals and patients, community health education, donations to health care related events and other services, and medical and health research. SEE SCHEDULE O 943881815 1 1 0 1 0 0 0 0 1 1 0 0 1 1 1 0 1 0 0 1 0 0 0 0 0 1 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 X 1138 0 1 7786 1 1 1 1 CJ TU BD BR LH MY RP TH EZ DA EG GR HU ID KS PL CH TW IS AE CO 0 0 0 0 0 0 0 0 X 24 21 0 0 0 0 0 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 X Edward L Tyrrell FACHE 8326676160 6565 Fannin GB240 Houston TX 77030 X Methodist Hospital Group 2.00 X 85092 62601 22016 Methodist Hospital Group 43.00 X 3589228 0 106876 Methodist Hospital Group 48.00 X 3750742 0 289067 Methodist Hospital Group 50.00 X 1432213 0 123747 Methodist Hospital Group 0.00 X 0 147177 5391 8857275 209778 547097 408 1 1 0 Methodist Hospital Group See Schedule O Houston TX 77030 See Schedule O 91851643 107 8781769 26885 8808654 Patient Care Services 900099 1168068037 1168068037 Related Org. Rent 531390 19145628 19145628 1187213665 36749962 36749962 3936665000 529400 3956979718 41759311 -20314718 -41229911 -61544629 -61544629 Other Income 900099 13831826 85602 13746224 Patient Food Services 900099 9923541 9923541 Management Fee Income 541200 362299 362299 85816 85816 24203482 1195431134 1187213665 447901 -1039086 6667048 6667048 18600 18600 7821002 837426 6983576 381729382 323636126 58093256 19382651 15031691 4350960 67217489 63446230 3771259 27353663 23195962 4157701 5744849 5744849 572446 572446 427803 427803 7995660 7995660 60668191 49261691 11406500 8698795 2576965 6121830 25786932 18512483 7274449 18736803 193730 18543073 21556399 20493545 1062854 1684472 980408 704064 363241 29417 333824 21495508 21495508 85067344 58638302 26429042 16070262 16070262 Medical Supplies 248080564 247835044 245520 Prof. Services (Net) 77802117 77802117 Bad Debt Expense 34693838 34693838 Property Taxes 1031568 31192 1000376 1627407 1627407 1148294034 943881815 204412219 0 14192530 43977213 167343738 163566566 989141 18198026 18686352 32971915 33500214 2022745169 988412844 643521344 1034332325 2595805534 2602818008 17999567 17999567 1126037951 957072851 4617059746 4871953096 229550476 231584311 1746024401 1741831967 67119135 65570160 2042694012 2038986438 X 2574358233 2832966658 7501 0 2574365734 2832966658 4617059746 4871953096 X 47137100 211463824 X 0 1 1 X 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 523844 523844 1047370201 1047894045 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 349456 383566 496653 523844 1753519 250000 250000 250000 250000 1000000 1500000 75239145 18783033 8564737 -10035029 92551886 51416692 12203792 11116253 -502408 75239145 66192765 3958630 -16297997 2436710 51416688 0.00000 1.00000 0.00000 0 1 0 56253156 91168936 147422092 1116676980 430285399 686391581 11159016 4332225 6826791 747487081 553795220 193691861 1034332325 Due from Affiliates 908017941 Construction in Progress 40747783 Deposits and Miscellaneous Receivables 6338948 Deferred Financing Costs 1968179 957072851 Reserve for Contingencies 57570160 Asset Retirement Obligation 8000000 65570160 Description of Intended Use of Endowment Funds: Part V, Line 4: The Methodist Hospital Foundation, a related organization of The Methodist Hospital, holds permanently restricted net assets which consist of 49 individual endowment accounts. Unless otherwise directed by the donor, gifts received for endowment accounts are invested consistent with The Methodist Hospital's approved investment policy. Unless otherwise directed by the donor, The Foundation has a policy of annually appropriating a certain percentage of each endowment account, which is then available to be spent consistent with donor intent. In order to preserve the real value of a donor's gift and to sustain funding consistent with donor intent, the annual appropriation rate is set to strike a reasonable balance between long-term objectives of preserving and growing each endowment fund for the future and providing stable, year-to-year appropriation amounts. Description of Uncertain Tax Positions Under FIN 48: Part X: Part X, Line 2: The Methodist Hospital's financial statements were audited by an independent accountant as part of a consolidated financial statement. Methodist did not recognize any adjustments related to uncertain tax positions as of December 31, 2010. CENTRAL AMERICA & THE CARIBBEAN 0 0 OFFSHORE CAPTIVE INSURANCE OPERATIONS 0 EAST ASIA AND THE PACIFIC 0 0 PASSIVE INVESTMENT 0 EUROPE 0 0 PASSIVE INVESTMENT 0 MIDDLE EAST AND NORTH AFRICA 0 0 PASSIVE INVESTMENT 0 SOUTH AMERICA 0 0 PASSIVE INVESTMENT 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 X 1 X 1 0 1 1 26137711 26137711 0.02350 43317616 19377385 23940231 0.02150 428300 98955 329345 0.00030 69883627 19476340 50407287 0.04530 41620495 9193901 32426594 0.02910 58917940 18616 58899324 0.05290 6058670 6058670 0.00540 106597105 9212517 97384588 0.08740 176480732 28688857 147791875 0.13270 1 8062824 279615618 362808100 -83192482 X 1 1 1 1 The Methodist Hospital

6565 Fannin Houston TX 77030

X X X X Skilled Nursing Facility, Psych, Rehab Units Not Applicable 1 Part I, Line 3c: The Methodist Hospital uses Federal Poverty Guidelines (FPG) and other information to determine eligibility for providing free care and discounted care to low income individuals. Part I, Line 6a: The Methodist Hospital System (The Methodist Hospital is the flagship hospital of the System) prepares an annual community benefit report which is made available to the public. This report includes charity care and community benefits provided by The Methodist Hospital and three other related acute care community hospitals in Harris County and in neighboring Fort Bend County, Texas. A fourth community hospital opened in West Houston on December 17, 2010. As expected, charity care and community benefits provided were minimal in 2010; therefore, this hospital was not included in the annual community benefit report made available to the public. Part I, Line 7g: The Methodist Hospital has not reported any subsidized health services in Part I, line 7(g). Part I, L7 Col(f): The amount of bad debt expense that was included in Form 990, Part IX, line 25, column (A), but removed from this figure for purposes of calculating the percentage in Schedule H, Part I, line 7, column (f) was $34,693,838.Part I, Ln 7: The costing methodology used to calculate the amounts reported in the Table in Part I was a cost to charge ratio derived from Worksheet 2 (Ratio of Patient Care Cost to Charges), as provided in the instructions to Form 990 Schedule H. Community Benefit Activities: Part II The Methodist Hospital has not reported any community benefit activities in Part II, lines 1-10. Part III, Line 4 The text of the footnote that describes bad debt expense from the audited consolidated financial statements of The Methodist Hospital System, which includes accounts of The Methdodist Hospital, is as follows:Uncollectible, uncompensated care generally represents standard charges that are unrealizable due to an unwillingness to pay by those responsible for payment (bad debt). Uncollectible, uncompensated care is reflected as an expense in the consolidated statements of operations and changes in net assets.The costing methodology used in determining the amount of bad debt expense (at cost) reported on line 2 (no amount was reported on line 3) was derived from Worksheet A, as provided in the instructions to Form 990 Schedule H.Part III, Line 8:Medicare allowable costs were derived from The Methodist Hospital's filed Medicare Cost Report for the year ended December 31, 2010. The entire Medicare shortfall ($83.2 million) as reported in Part III, line 7 as well as the unreimbursed cost of the Medicare managed care program ($10.6 million) should be treated as a community benefit, since these shortfalls, or subsidies, reduce the federal government's burden in providing health care to Medicare beneficiaries.Part III, Line 9b:The Methodist Hospital System has a written debt collection policy; However, no collection efforts are put forth for patients who are known to qualify for financial assistance under the charity care policy. Part V, Section B: The Methodist Hospital has not completed this section since it is optional for the 2010 Schedule H Form 990. Part VI, Line 2: The Methodist Hospital System utilized several different methods to identify its Community Health priorities (health care needs) of the communities it serves. These methods include but are not limited to the review of the Texas Institute of Health Policy research community data; Harris County Public Health & Environmental Services community data; Texas State Data Center and Office of the State Demographer; Texas Department of State Health Services; Texas Cancer Registry; Healthy People 2010; community advisory group committee reports for nonprofit clinics and agencies (e.g., Harris County Healthcare Alliance Primary Health Needs Assessment); Texas Department of Public Health selected health data; and community health status report for Harris, Liberty, Fort Bend and Montgomery counties. Additionally, The Methodist Hospital System performs an annual Community Health Needs Assessment that evaluates the population of The Methodist Hospital service area by looking at demographics, current health characteristics in the community and access to healthcare. Part VI, Line 3: Financial Assistance is provided in multiple locations within The Methodist Hospital System; at the point of registration, during case management and at the time of collections post discharge. Every check-in location has information posted in both English and Spanish stating how the patient can access financial assistance. Additionally, this information is posted on The Methodist Hospital System website and is included in the patient guide provided to the patient at the time of registration. The Methodist Hospital System financial counselors actively seek all uninsured inpatients and outpatients with scheduled services for a personal visit. During these visits, the financial counselors will screen the patient for financial assistance and will provide the patient with the financial assistance application. The patient will then be provided a list of resources with contact information should the patient require further assistance in completing the application. The Methodist Hospital System utilizes an eligibility partner to work closely with patients to quality for State and Federal assistance programs (e.g., Medicaid, SCHIP, Crime Victims, etc.). This eligibility partner will meet with all uninsured inpatients to discuss State and Federal assistance programs; where the patient is not eligible for these programs, The Methodist Hospital System's internal financial assistance program is introduced. The Methodist Hospital System's case management unit works closely with the patient during patient discharge management to ensure the patient is introduced to all resources that may be needed post discharge (e.g., home health, skilled nursing, etc.). The case management unit works with the patient to qualify the patient and to gain access to these resources. Additionally, the case management unit works closely with the financial counselors when the patient is identified as having a need for financial assistance.The Methodist Hospital System's patient accounting unit works closely with all uninsured patients post discharge during the billing and collections process. The Methodist Hospital System's collections personnel will verbally screen patients for financial assistance during collection calls; where applicable, the patient will be sent a financial assistance application either in English or Spanish. Additionally, all billing statements provide the patient with a phone number for customer service to obtain payment options. The Methodist Hospital System utilizes outside collection assistance, for both early out and bad debt collections. Each collection agency must adhere to The Methodist Hospital System's financial assistance policy and philosophy during all communication and collection events with The Methodist Hospital System patients. The Methodist Hospital System's financial assistance application is reviewed periodically; additionally, The Methodist Hospital System personnel are provided with educational inservices in the administering of the financial assistance policy as needed. Part VI, Line 4: The Methodist Hospital is a Texas non- profit corporation which owns and operates a tertiary care hospital and related medical office buildings, research, outpatient and other facilities in and near the Texas Medical Center in Houston, Texas.The Methodist Hospital's primary services area is comprised of 8 counties - Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery and Waller with a population estimated at more than 5.8 million for 2010. Harris County has the largest population with an estimated 4.15 million as of January 1, 2010. From 2000 to 2010 the population has increased at a rate of 25%. The population is expected to grow 10% in the next five years. The specific make-up of the service area includes Caucasian 41%, Hispanic 35%, African American 16%, Asian 6% and other 2%. Economically, the median household income is $40,600 and the average household income is $72,800. Examining the service area at the insurance level, the area consists of 76% insured and 24% uninsured. Part VI, Line 6: The Methodist Hospital, an acute care complex with 851 operating beds, 70 operating rooms, 1,725 affiliated physicians and 5489 employees, is the flagship of The Methodist Hospital System. Affiliated with the Texas Annual Conference of the United Methodist Church, The Methodist Hospital works closely with local church leaders to bring compassion and spirituality to all of its endeavors and to help meet the health needs of the community it serves. The Methodist Hospital's primary academic affiliates are Weill Cornell Medical College and New York Presbyterian Hospital. The Methodist Hospital also has affiliations with the University of Houston, Rice University, Baylor College of Medicine and others. The Methodist Hospital is a teaching hospital and as part of its teaching program it sponsored 180 medical residents in 26 accredited programs and 8 non-accredited programs in 2010. Governing BodyThe Methodist Hospital is governed by a board of directors comprised of members of the community where it is located. The Methodist Hospital's board of directors includes members from the community as well as the System's President/CEO, The Methodist Hospital's medical staff president and the bishop of the Texas Annual Conference of the United Methodist Church. Community CouncilsThe Methodist Hospital also has community involvement through advisory councils comprised of community members, including members of The Methodist Hospital Board of Directors, who volunteer to create health-related programs for Houstonians. One example is The Methodist DeBakey Heart & Vascular Center Council, which is a group of Houston's leaders who advise the DeBakey Heart & Vascular Center on how it can best serve our patients and our community. The group is comprised of opinion leaders whose experience in business and non-profit boards help shape our future direction and use of resources. One way the council directs these resources to promote the health of the community is through the Save a Life CPR/AED Training Sessions. For the last three years, The Methodist DeBakey Heart & Vascular Center has partnered with the Houston Texans, American Red Cross, and Texas Arrhythmia Institute to offer mass CPR/AED training days to the Houston community. The effort is spearheaded by the DeBakey Heart & Vascular Center's council members and has successfully trained more than 1,800 individuals since its inception.Other councils include the Neurological Institute Council and the Center for Performing Arts Medicine.The Methodist Hospital Young Leaders for Medicine are an auxiliary group of young professionals dedicated to improving patient care, education, and research at The Methodist Hospital and in the Houston community. When The Methodist Hospital System began its Taking Strides4Stroke Community Stroke Awareness Campaign, the Young Leaders took an active role in educating the public about stroke symptoms, treatment and prevention. Since 2007, the Young Leaders have provided volunteer leadership at the Stride4Stroke 5K Run/Walk in addition to raising more than $140,000 for The Methodist Hospital System's community stroke education efforts. Medical Staff ModelThe Methodist Hospital has an open medical staff model. The open model gives patients access to physicians of all affiliations. Health EducationThe Methodist Hospital Education Institute (TMHEI) was established by The Methodist Hospital System in 2006 upon the recommendation of an interdisciplinary team of health care practitioners charged by The Methodist Hospital Board of Directors with creating a vision for health professions education and training in The Methodist Hospital System. The purpose of TMHEI is to provide the best education and training to all disciplines in the hospital, enabling the best patient care. The Office of Continuing Medical Education provides local, national and international education concentrated in areas where our clinicians and scientists have recognized excellence and where our community has the greatest need.Since 2005, The Methodist Hospital has trained physicians in various medical and surgical specialties. Methodist sponsored 26 ACGME-accredited and 8 non-accredited programs in 2010. Additional specialty programs have been developed since then. The Methodist Institute for Technology, Innovation and Education (MITIE) is a comprehensive, state-of-the-art education and research center for physicians who wish to acquire new procedural skills and integrate new technologies into their practices. Its research mission is to enhance the use of image guided technology to guide procedures, incorporate robotic surgery into the image guided platform and develop new technology and procedural techniques.The Methodist Hospital also offers a medical laboratory science program with a 12-month track for professionals in pathology and laboratory medicine; an administrative fellowship and internship program for future health care leaders; professional development programs for nursing; a pharmacy residency program and a postgraduate residency for cardiovascular surgery physician assistants. The Methodist Hospital has created the Finger Fellowship Program in Sustainable Health to allow young people to experience the nexus of health science, policy, and community. This fellowship gives exceptional young people an opportunity to pursue individualized interdisciplinary research and to use that experience to lead improvements in health at the national, state or local level.Medical ResearchThe Methodist Hospital Research Institute, a subsidiary of The Methodist Hospital, was established in 2004 to conduct essential translational research. It is home to more than 1,000 credentialed physicians, faculty and staff and more than 700 ongoing clinical trials. The Methodist Hospital Research Institute is directly tied to clinicians and patients to help move the best in medical technology to the patient faster - for better prevention, diagnosis and treatment of disease. The Methodist Hospital Research Institute is one way The Methodist Hospital integrates its services, by bringing the research conducted in the laboratory to the patients bedside. The discoveries made by our researchers quickly filter down to our hospitals in the form of new treatments and improved procedures. Use of Surplus FundsAn internal charity care program provides services to the indigent at The Methodist Hospital and through affiliated organizations. The majority of patients who qualified for charity care were educated about the program through signs posted throughout the hospital. Other patients were referred by their physicians, hospital staff, other patients and through funded community agencies. Surplus funds are also used each year to strengthen community service outreach to support low-income and uninsured patients to help them attain access to comprehensive health care. Approximately 183,621 patient contact visits were reported in 2010 from 30 charity care agencies supported by The Methodist Hospital System Community Benefits program. Services provided include primary health care, emergency and routine care, immunizations, dental care, psychological and case management services, well child examinations, sick visits, health education, health screenings, well woman exams and in-kind lab services and X-rays. The Methodist Hospital's support allowed these organizations to enhance their services to low-income patients with diverse health needs. Methodist provided direct funding and/or in-kind services including lab tests, X-rays, immunizations, human resources consultation and other services. With The Methodist Hospital's support, agencies like Denver Harbor Clinic and Good Neighbor Healthcare Center were positioned to meet Federally Qualified Health Center designee qualifications, thereby allowing them to qualify for enhanced Medicare and Medicaid reimbursement.Programs at The Methodist Hospital helped to improve awareness of stroke signs, risk factors and prevention. In 2010 the numbers of people educated through our programs exceeded 11,000, more than double the activity from 2009; that amount is in addition to the participants of the Stride4Stroke walk. Programs addressed health disparities through our presence in minority communities and through outreach to women.For further information regarding what The Methodist Hospital is doing to benefit the communities it serves, see the response to Part VI, Line 6. Part VI, Line 7: Located in the heart of the Texas Medical Center, The Methodist Hospital is the flagship hospital of The Methodist Hospital System and serves patients from all over the world. The Methodist Hospital System includes Methodist Sugar Land Hospital in Fort Bend County, San Jacinto Methodist Hospital in Baytown, Methodist Willowbrook Hospital in northwest Houston and Methodist West Houston Hospital which opened in December 2010. The Methodist Hospital shares the greater mission of The Methodist Hospital System to provide high quality, cost-effective health care that delivers the best value to the people we serve in a spiritual environment of caring in association with internationally recognized teaching and research. The Methodist Hospital is among the country's largest non-profit health care providers and is certified by the Joint Commission of Accreditation of Healthcare Organizations. In 2010, The Methodist Hospital treated 37,536 inpatients and 306,329 outpatients. It received 45,254 emergency room visits. In order to better serve the growing needs of the communities served by The Methodist Hospital System, the System completed over $1.6 billion in construction projects comprising a total of 4 million new square feet in 2010. Expansion projects included an outpatient center and a research institute at The Methodist Hospital and two new patient facility and bed expansions at Methodist Sugar Land Hospital and Methodist Willowbrook Hospital. In addition, two imaging centers and an emergency care clinic opened in Summer 2009 to further serve the community. A new 100-bed licensed hospital in West Houston opened in December 2010 (with a future capacity of 193 total beds) and includes a breast center, heart services and radiation oncology. The Methodist Hospital promotes the health of the community and the mission of The Methodist Hospital System by delivering the highest quality and safest health care to our patients. Quality initiatives range from hand hygiene programs (with exceptionally good results), to patient fall and infection reduction programs. The Methodist Hospital was the first hospital in the Texas Medical Center to require its employees, vendors and volunteers to receive the seasonal flu shot to protect our patients, those typically most vulnerable to complications from the flu. The Methodist Hospital is the academic medical center in The Methodist Hospital System, bringing the community an institution dedicated to patient care, research and education. By serving as a leading academic medical center, it provides the community quality patient care, leading research that can be quickly translated into treatments and the training of our country's future doctors. While all System hospitals provide quality patient care, The Methodist Hospital expands the vision to include research and a comprehensive residency program. Aside from promoting the health of our community by delivering exceptional leading care to our patients, The Methodist Hospital System makes significant contributions through community benefits programs as descibed below. Community Benefit Activities and Health ServicesThe Methodist Hospital System in 2010 provided medical care to patients who were medically and/or financially indigent as well as patients who qualified for government sponsored indigent care. In 2010, The Methodist Hospital Community Benefits Program funded grassroots agencies across the Greater Houston area, including those communities served by our community hospitals. In 2010, The Methodist Hospital System's cash and in-kind contributions totaling approximately $10.0 million supported the following grassroots agencies across the Greater Houston area:-Bering Omega Community Services-Boys and Girls Country of Houston, Inc-Breath of Life Children's Center, Inc-Casa De Esperanza de los Ninos, Inc -Catholic Charities of the Diocese of Galveston-Houston-CHRISTUS HomeCare-Communities in Schools Houston, Inc-El Centro de Corazon-Eye Care for Kids Foundation-Fort Bend Family Healthcare Center-Good Neighbor Healthcare Center-Healthcare for the Homeless - Houston-HOPE Clinic-Houston Area Women's Center-Houston Comm Health Centers,Inc (Denver Harbor Clinic)-Houston Hospice-IBN Sina Foundation-Jewish Community Center of Houston-Krist Samaritan Center for Counseling and Education-Legacy Community Health Services-Matagorda Episcopal Hospital Outreach Program-Montrose Counseling Center, Inc-Northwest Assistance Ministries-San Jose Clinic-Service Organization of Greater Houston-Seven Acres Jewish Senior Care-Shalom Mobile Health Ministry-Star of Hope Mission-The Community Clinic-The Fort Bend County Women's Center, Inc-The Women's Home-TOMAGWA Health Care MinistriesThis support allowed these organizations to leverage dollars and enhance their services to low-income patients with diverse health needs. The Methodist Hospital System provided direct funding and/or in-kind services including lab tests, X-rays, immunizations, human resources consultation and other services. With Methodist's support, agencies like Denver Harbor Clinic and Good Neighbor Healthcare Center were positioned to meet Federally Qualified Health Center designee qualifications, thereby allowing them to qualify for enhanced Medicare and Medicaid reimbursement. EducationThe Methodist Hospital's primary academic partner is Weill Cornell Medical College in New York. The two institutions share best practices and collaborate on research, education and clinical care. More than 300 Methodist physicians have Weill Cornell faculty positions, and The Methodist Hospital sponsors almost 180 of its own medical residents in various specialties - ranging from neurosurgery to pathology to gynecology - and hosts 100 more from other medical institutions. In addition, The Methodist Hospital collaborates with many other academic and medical institutions to promote the health of the community, including New York-Presbyterian Hospital, Rice University, Baylor College of Medicine, University of Houston, Texas A&M University, Texas Children's Hospital, University of Texas Health Science Center, Texas Woman's University and Prairie View A&M, among others. Community InvolvementThe Methodist Hospital actively develops awareness initiatives, sponsorships and programs that promote health and wellness, prevention and early detection. The Methodist Hospital staff and volunteers can be seen at health screenings, exercise and nutrition promotions, stress management clinics and other health promotion activities throughout the year. For example, The Methodist Hospital participated in The Methodist Hospital System's fourth annual Stride4Stroke 5K Walk/Run, which raised more than $380,000 in 2010. The walk/run is part of The Methodist Hospital System's community stroke awareness campaign aimed at increasing stroke awareness and education in the community. More than 1,200 employees participated in this drive to raise public awareness and funds for an event that clearly has an impact on the community.In 2010, Methodist established the Methodist Concussion Center to provide comprehensive services and a dedicated team of concussion specialists to educate athletes, especially student-athletes, about the importance of concussion awareness. Through the center, student athletes have access to ImPACT (Immediate, Post Concussion Assessment and Cognitive Testing) testing, at their schools or at the Concussion Center. ImPACT is the first computerized concussion evaluation system. In addition to providing clinical care, the concussion center staff educates the community about signs and symptoms, dangers and proper medical management. The Center conducts outreach activities which benefit more than 1,000 Houston-area residents monthly. Methodist also created the Nantz National Alzheimer Center to advance research and treatment of Alzheimer's disease, one of the biggest threats to the elderly population in our country. It is projected that as many as 16 million people will have Alzheimer's by 2050. The center, dedicated to finding a cure for Alzheimer's, addresses one of the biggest health crises affecting Americans today. The Methodist Hospital promotes the health of the community by fulfilling The Methodist Hospital System's mission through exceptional, high-quality patient care, education and research, affiliations with academic and medical partners for improved community health care, charity care and community involvement. The Methodist Hospital also cooperates with local entities to identify community needs. Members of The Methodist Hospital's executive team are on the boards of the Greater Houston Health Care Alliance and the Greater Houston Partnership which both advocate for educational, environmental and health care issues that affect public policy and international Reports Filed With States Part VI, Line 7 TX Continuation of Affiliated Health Care, Schedule H Schedule H, Part VI, Line 6 companies that do business in Houston.The Methodist Hospital System's employees have a longstanding tradition of supporting efforts to improve the health and well being of our community. Our employees donate time, talent and money to many great community causes.Hospital administration also allocates hours to coordinate and support voluntary employee projects to meet specific community needs. As a result of administrative support, hospital employees participated in or provided a service for the following: United Way Campaign, American Heart Association's Houston Heart Walk and Stroke Continuum of Care, National Multiple Sclerosis 150 Bike Tour (Houston-to-Austin), Komen Race for the Cure, ADA Diabetes Walk, Stride4Stroke 5K Run/Walk, PAWS, Star of Hope, Save a Life Community Heart Training Day, Adopt-a-Child/Family holiday program, emergency funds for food and transportation vouchers for patients, employee blood drive (donations of blood, plasma and platelets), Career Day - Talks, Houston Food Bank - Texas Medical Center Food Drive, Houston Area Women's Shelter, Medical Bridges, Habitat for Humanity, House Renovation based at Ripley Center, MI Lewis Social Services, San Jose Clinic - Art for Heart, DeBakey High School, African American Health Coalition, Texas Woman's University, The House of Amos and the Houston Museum of Natural Science Texas Clinics Are Responding Event (TCARE).The Methodist Hospital System also encourages its employees to volunteer for the good of their respective communities. A program, called MCAT, Methodist Community Action team, supports employees who volunteer in the community. Through MCAT, employees volunteer at various community events supported by the hospital. Employees participate in local health fairs, serve on committee groups to help organize and coordinate events and activities for the community, provide assistance at local walk/run events, provide assistance at several hurricane relief centers, and sort and organize medical supplies for medical mission trips.Other beneficial efforts are organized by smaller groups within the hospital. For example, a group of nurses volunteer at a dental clinic for AIDS patients. The Methodist Hospital supports this clinic financially and employees are also engaged. A group of Filipino nurses who are members of the Philippines Nurses Association of Metropolitan Houston participate in various community outreach programs. They participate at the annual health fair for the underserved populations in Houston and neighboring counties. The nurses take blood pressure as well as blood sugar readings. They also provide health teachings to clients that speak Spanish only with a Spanish interpreter. They provide clients with verbal and written educational materials on healthy food groups, importance of exercise, smoking cessation, prevention of diabetes, hypertension, coronary heart disease and cardiovascular conditions. The Methodist Hospital operates a thriving volunteer program that offers members of the outside community an opportunity to participate in a number of patient-oriented activities including hospital visits; collecting and/or creating items to distribute to patients and wayfinding help for patients and families visiting the complex for doctors appointments and tests. Identifying Community Health IssuesThe Methodist Hospital identified its community health priorities for 2010 using several methods including, but not limited to, review of the Texas Institute for Health Policy Research community data, Texas Department of Public Health selected health data, community health status reports for Harris, Liberty, Fort Bend and Montgomery counties and community advisory groups committee reports for nonprofit clinics and agencies. The review indicated that chronic diseases, including heart disease and stroke, are acute in our service area, exceeding the overall mortality rates in Texas and peer counties. Because stroke was identified as a primary killer and health care issue for people in our region, The Methodist Hospital System in 2006 created the Stride4Stroke initiative to raise awareness about stroke and to raise funds for community stroke education. A 5K Run/Walk each spring allows members of the community to participate alongside hospital employees. The Methodist Hospital System has initiated community education efforts by training and providing nurse-educators to the community for public events, particularly in minority communities and for outreach to women. The Methodist Hospital System also works to assist smaller hospitals in the community in developing their own stroke programs and achievement of Primary Stroke Center status, while we offer a venue for comprehensive stroke care to those patients from community hospitals that are not equipped to offer more than basic stroke care.Another initiative has sought to increase early detection and community awareness of cancer. The Methodist Hospital annually stages a Men's Health Expo for community awareness and education on men's health issues. At a Men's Health Expo in 2010, The Methodist Hospital screened 285 men for prostate cancer. The Methodist Hospital also sponsors and/or coordinates a number of events spotlighting women's health issues. The Methodist Hospital sponsored the Komen Race/Walk and Pink Ribbons campaign to promote breast cancer awareness as well as to communicate the importance of early detection of breast cancer.Summary As a System, Methodist made significant contributions through its community benefits and charity care program which have been a resource for patients in the community. Based on IRS cost definitions The Methodist Hospital System provided $183.5 million in Charity Care and Certain other Community Benefits for the year ended December 31, 2010, which included $77.3 million in connection with Charity Care and Means-tested Government Programs and $106.2 million in Other Benefits (e.g., health professions education, research and cash and in-kind contributions to community groups). In addition, based on IRS cost definitions The Methodist Hospital System provided $144.2 million in care to Medicare and TRICARE program beneficiaries for the year ended December 31, 2010. 1 BeringOmega Community Service Foundation 1429 Hawthorne Street Houston TX 770063711 760589592 501(c)3 310000 Dental Services Boys and Girls Country of Houston Inc 18806 Roberts Road Hockley TX 774479327 746026198 501(c)3 15000 Mental Health Services Breath of Life Children's Center Inc 21715 Kingsland Blvd Ste 103 Katy TX 77450 760626159 501(c)3 50000 Children's Clinic Casa de Esperanza de los Ninos Inc 2911 Corder St Houston TX 77054 760105306 501(c)3 50000 Mental Health Services Catholic Charities of the Doicese of Galveston-Houston 2900 Louisiana Street Houston TX 770063435 741109733 501(c)3 50000 Mental Health Services Christus Home Care (CHRISTUS Foundation for HealthCare) 2045 Space Park Dr 185 Houston TX 770586306 746074210 501(c)3 1083333 Home Care Services Communities in Schools Houston Inc 1235 North Loop West Suite 300 Houston TX 77008 760031827 501(c)3 25000 Mental Health Services The Community Clinic 101 Pine Manor Oak Ridge North TX 77385 752634623 501(c)3 50000 Health Care Services El Centro de CorazonEastwood Health Clinic 5001 Navigation Houston TX 77011 760442781 501(c)3 275000 Health Care Services Eye Care for Kids Foundation 9660 Hillcroft St 325 Houston TX 77096 760573182 501(c)3 25000 Children's Ophthalmology Services Fort Bend Family Health Center Inc 400 Austin Street Richmond TX 774694498 741951476 501(c)3 170000 Health Care Services Good Neighbor Healthcare Center 190 Heights Blvd Houston TX 77007 204881280 501(c)3 225000 Health Care Services Healthcare for the Homeless - Houston 2505 Fannin St Houston TX 77002 760647934 501(c)3 290000 Health Care Services Asian American Health Coalition - HOPE Clinic 7001 Corporate Dr Suite 120 Houston TX 77036 311756818 501(c)3 50000 Health Care Services Houston Area Women's Center 1010 Waugh Drive Houston TX 770193996 742029166 501(c)3 25000 Mental Health Services Houston Community Health Centers Inc 424 Hahlo Street Houston TX 770203022 760622208 501(c)3 727000 Health Care Services Houston Hospice 1905 Holcombe Blvd Houston TX 77030 742092951 501(c)3 30000 Hospice Services IBN Sina Foundation 11226 S Wilcrest Dr Houston TX 77099 760698464 501(c)3 15000 Dental/Health Care Services Jewish Community Center of Houston 5601 S Braeswood Houston TX 770963907 741198298 501(c)3 28000 Senior Health Care Services Krist Samaritan Center of Counseling & Ed 17555 El Camino Real Houston TX 770583031 760173176 501(c)3 80000 Mental Health Services Matagorda Episcopal Hospital Outreach Program 101 Avenue F North Bay City TX 77414 200537948 501(c)3 40000 Dental/Health Care Services Montrose Counseling Center Inc 401 Branard Street 2nd Floor Houston TX 77006 742050245 501(c)3 30000 Mental Health Services Northwest Assistance Ministries 15555 Kuykendahl Road Houston TX 770903651 760088702 501(c)3 325000 Children's Clinic Support San Jose Clinic 301 Hamilton St Houston TX 77002 766071951 501(c)3 250000 Health Care Services Service Organization of Greater Houston 2950 50th St Lubbock TX 79413 800357284 501(c)3 1420337 Health Care Services Seven Acres Jewish Senior Care Services 6200 North Braeswood Boulevard Houston TX 77074 741143086 501(c)3 35000 Senior Health Care Services Shalom Mobile Health Ministry 2220 Broadway Houston TX 77012 760570086 501(c)3 190000 Health Care Services Star of Hope Mission 6897 Ardmore Houston TX 77054 741152599 501(c)3 25000 Homeless care The Fort Bend County Women's Center Inc 905 3rd Street Rosenberg TX 77471 760032451 501(c)3 25000 Mental health services TOMAGWA Health Care Ministries 13414 Medical Complex Dr 1 Tomball TX 773753333 760280324 501(c)3 95000 Health Care Services The Women's Home 811 Westheimer Road Houston TX 770063917 741467811 501(c)3 50000 Mental Health Services American Academy of Otolaryngology-Head and Neck Surgery 1650 Diagonal Road Alexandria VA 22314 521219434 501(c)3 25000 Medical Research American Heart Association PO Box 15186 Austin TX 78761 135613797 501(c)3 25000 Medical Research Arthritis Foundation 3120 Southwest Frwy Ste 215 Houston TX 77098 951885447 501(c)3 15000 Medical Research Can Care of Houston 9575 Katy Freeway Ste 428 Houston TX 77024 760305357 501(c)3 23000 Medical Research Golfers Against Cancer Inc 1700 Lake Kingwood Trail Kingwood TX 77345 760574871 501(c)3 25000 Medical Research Good Samaritan Foundation 5615 Kirby Drive Ste 610 Houston TX 77005 741235398 501(c)3 9500 Community Service Harris County Hospital District Foundation PO Box 301168 Houston TX 77230 760408224 501(c)3 50000 Community Service Houston Ballet 1921 West Bell PO Box 130487 Houston TX 77019 741394920 501(c)3 25000 Community Service Houston Livestock Show and Rodeo PO Box 20070 Houston TX 77225 741142851 501(c)3 5000 Community Service Houston Symphony Society 615 Louisiana Jones Hall Houston TX 77002 741157373 501(c)3 50000 Community Service Inprint 1520 West Main Houston TX 77006 760127748 501(c)3 5000 Life Writing Workshop Komen Houston 5433 Westheimer Rd Ste 325 Houston TX 77056 760360372 501(c)3 20650 Medical Research Marine Corps Scholarship Foundation 4715 N 32nd Street Ste 104 Phoenix AZ 85018 221905062 501(c)3 5000 Education Assistance Muscular Dystrophy Association 5615 Kirby Dr Suite 500 Houston TX 77005 131665552 501(c)3 7700 Medical Research The Periwinkle Foundation 3000 Richmond Suite 340 Houston TX 77098 760093914 501(c)3 7000 Community Service Rice University 6100 Main St Houston TX 77005 741109620 501(c)3 10000 Community Service Texas Annual ConferenceHaiti Relief 5215 Main Street Houston TX 77002 741491628 501(c)3 65493 Disaster Relief Victory - American Cancer Society PO Box 572915 Houston TX 772572915 756198499 501(c)3 25000 Community Service White Oak Gives Back 12941 N Frwy Ste 550 Houston TX 77060 262753368 501(c)3 5000 Community Service 50 0 Scholarships for TMH Clinical Laboratory Science Program 4 9600 Continuing Education Scholarship 9 9000 Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: Prior to The Methodist Hospital's approval of a grant to a requesting organization, the following criteria must be met: (1) The requesting organization must be an organization exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code; (2) The requesting organization must provide a recognizable or demonstrable benefit to the community; (3) The mission of the requesting organization must augment the mission of The Methodist Hospital; (4) The requesting organization's mission and services should not duplicate and must not conflict with those of The Methodist Hospital. Periodic reports were reviewed to ensure the funds were used to support indigent care service of the community. Grants to Individuals: Everyone accepted into The Methodist Hospital Clinical Laboratory Science Program receives a $2,400 scholarship. Acceptance into that program is based upon GPA, letters of recommendation, and interview scores. X X 1 1 X X X X X 0 1 0 0 0 0 0 1 0 Methodist Hospital Group 85092 62601 0 0 0 0 0 0 0 0 85092 62601 0 0 Methodist Hospital Group 1822151 0 971603 0 795474 0 51200 0 55676 0 3696104 0 0 0 Methodist Hospital Group 2228114 0 1229017 0 293611 0 120905 0 168162 0 4039809 0 0 0 Methodist Hospital Group 918600 0 392642 0 120971 0 61678 0 62069 0 1555960 0 0 0 Methodist Hospital Group 0 40683 0 102014 0 4480 0 3800 0 1591 0 152568 0 0 Supplemental Information Part III SCHEDULE J, PAGE 1, LINE 1A: Travel for Companions Methodist requires all employees including officers to provide written substantiation of all expenses related to their business travel through the provision of detailed receipts in order to receive approval from their direct superiors for reimbursement in accordance with our corporate policy on travel and other business expenses. In 2010, the President/CEO had three trips approved for attendance at out of state meetings where it was deemed appropriate by the Chair of our Board that the attendance of the President/CEO's spouse (and the related expenses for her travel to these meetings) was integral to conducting effective Methodist business at these meetings. SCHEDULE J, PAGE 1, LINE 1A: Health or Social Club Dues As stipulated by the employment contract of the CEO, he is entitled to annual membership in the Houston City Club paid for by The Methodist Hospital in support of Methodist related business development activities. This amount is not included in the taxable income of the CEO as it directly relates to the hospital's tax exempt business purpose. SCHEDULE J, PAGE 1, LINE 1A: Compensation Reporting Pursuant to Treasury Reg Section 1 6033-2(D)(5), The Methodist Hospital has elected to report information about contributions, gifts & grants, compensation and other information about Officers, Directors, Trustees, Key Employees, Former Employees, certain other highly paid employees, certain professional contractors and certain other contrators on a consolidated basis for all of the members of the group, including the parent organization, on the Group Return of Methodist Hospital Group, EIN 35-2410801. SCHEDULE J, PAGE 1, QUESTION 4A: Severance Plan The Methodist Hospital System has a formal severance plan. Eligible employees include all staff including hourly staff up through senior vice presidents provided they work at least 20 hours per week and are not otherwise covered by a physician employment agreement. The plan only provides salary and benefits in the event an eligible employee is involuntarily terminated due to the elimination of their position or if their current position is significantly impacted by an organizational restructuring or change in requirement and a comparable position is not available within the organization. The eligible person must also sign a termination agreement in order to receive salary continuation and benefits under the plan to which they would not normally be eligible to receive under a voluntary resignation. SCHEDULE J, PAGE 1, QUESTION 4A: Compensation Reporting Pursuant to Treasury Reg Section 1 6033-2(D)(5), The Methodist Hospital has elected to report information about contributions, gifts & grants, compensation and other information about Officers, Directors, Trustees, Key Employees, Former Employees, certain other highly paid employees, certain professional contractors and certain other contrators on a consolidated basis for all of the members of the group, including the parent organization, on the Group Return of Methodist Hospital Group, EIN 35-2410801. SCHEDULE J, PAGE 1, QUESTION 4B: The Methodist Hospital has a Supplemental Executive Retirement Plan, a non-qualified employer funded plan. Contributions are made annually into a tax deferred account and are considered taxable upon vesting (i.e. completion of three years of vesting service). Once vested, each year's subsequent contribution is taxable within the calendar year in which the deposit was made. Account balances cannot be accessed until retirement or termination (whichever occurs first) and may be subject to non-revocable distribution options selected upon employment. SCHEDULE J, PAGE 1, QUESTION 4B: Pursuant to Treasury Reg Section 1 6033-2(D)(5), The Methodist Hospital has elected to report information about contributions, gifts & grants, compensation and other information about Officers, Directors, Trustees, Key Employees, Former Employees, certain other highly paid employees, certain professional contractors and certain other contrators on a consolidated basis for all of the members of the group, including the parent organization, on the Group Return of Methodist Hospital Group, EIN 35-2410801. SCHEDULE J, PAGE 1, QUESTION 7: This organization provides variable compensation opportunity through an annual management incentive plan. Executives at the Assistant Vice President level and above may be eligible to participate. The annual incentive program is based on system and operating entity level performance in the areas of quality improvement outcomes, patient satisfaction and financial performance. In addition, a portion of the payout percentage is based on goals that are specific to the participants' management roles at the division or department level including but not limited to such metrics as operating results, quality and safety improvements, customer satisfaction measures, growth and innovation initiatives. Determination of a participant's percentage of the potential bonus payout (paid as a percent of base salary) is based on whether the individual attains agreed upon goals for their area of responsibility as determined by their immediate supervisor. Harris County Health Facilities Development Corp 521284201 41315RGV0 2008-04-10 350000000 See Part V Refunding Bonds for Series 2006B issued 5/10/06 0 0 0 Harris County Cultural Education Facilities Finance Corporation 760337885 414009AS9 2008-08-21 257239185 See Part V Refunding Bonds for portion of Ser. 2006A issued 4/4/06 0 0 0 Harris County Cultural Education Facilities Finance Corporation 760337885 414009AW0 2008-08-21 692760000 See Part V Refunding Bonds for portion of Ser. 2006A issued 4/4/06 0 0 0 Harris County Cultural Education Facilities Finance Corporation 760337885 414009BQ2 2009-06-02 149993979 See Part V Ref Ser 2006C issued 5/10/06 & Ser 2008C issued 8/21/08 0 0 0 350000000 350000000 1 0 1 1 257239185 257239185 1 0 1 1 286480000 692760000 692760000 1 0 1 1 149993979 149993979 1 0 1 1 0 1 1 1 1 0.03700 0.00000 0.03700 1 0 1 1 1 1 0.03700 0.00000 0.03700 1 0 1 0 0 0 1 0 0 0 0 0 1 0 1 0 0 0 1 0 1 0 0 0 1 Schedule K, Part II, Line 13, (Issues A through E) Year of Substantial Completion: All outstanding bonds of the Methodist Hospital as of 12-31-10 are refunding bonds. The Methodist Hospital assumes that Line 13 does not address refunding bonds. Schedule K-Part III, Line 4 (Issue D) Enter % of Business use by entities other than 501(c)(3): The reported private use percentage of 3.7% has been calculated on the portion of the Series 2009A-B refunding bonds that refunded the Series 2006C bonds issued in the amount of $100,000,000. The remaining amount of the Series 2009A-B bonds that refunded bonds issued prior to December 31, 2002 in the amount of $49,993,979 were excluded from determining the reported 3.7% private use calculation for 2010. Schedule K, Part III, Line 4 (Issue E) Enter % of Business use by entities other than 501(c)(3): The reported private use percentage of 1.8% has been calculated on the portion of the Series 2009C refunding bonds that refunded the Series 2005A bonds issued in the amount of $350,000,000. The remaining amount of the Series 2009C bonds that refunded bonds issued prior to December 31,2002 in the amount of $236,480,000 were excluded from determining the reported 1.8% private use calculation for 2010. Harris County Cultural Education Facilities Finance Corporation 760337885 414009BS8 2009-06-02 586480000 See Part V Ref Ser 2005A issued 1/20/05 & Ser 2008C issued 8/21/08 0 0 0 586480000 586480000 1 0 1 1 0 1 1 1 1 0.01800 0.00000 0.01800 1 0 1 0 0 0 1 Form 990, Part VI, Section A, line 1 The Executive Committee consists of the officers who are members of the Board of Directors as defined in the Bylaws; the Resident Bishop; and one Physician Director. In the event of an emergency when there is insufficient time to convene the Board of Directors, the Executive Committee has and may exercise all the powers of the Board of Directors in the management of the business and affairs of the Corporation in such a manner as the Executive Committee may deem to be in the best interest of the Corporation in all cases in which specific directions have been given by the Board of Directors, provided any action which the Committee may take does not conflict with the mission of the Corporation and the policies and directives of the Board of Directors. The Chairperson of the Board of Directors, upon the calling of any Executive Committee meeting, as the first item of business, is required to state the nature of the emergency and the fact that there was insufficient time to convene the Board of Directors, which is recorded in the minutes before any action is deemed valid and on behalf of the Board of Directors. Vacancies in the membership of said Committee are filled by appointment of the Chairperson and approval by the Board of Directors. The Executive Committee meets upon the call of the Chairperson. The Committee keeps regular minutes of its proceedings and forthwith delivers by mail, facsimile, email, or in person, a written report of the same to all members of the Board of Directors. All Acts or resolutions of the Executive Committee are subject to the approval of, or revision by, the Board of Directors, but no rights of third parties are affected by any such revision. The Secretary of the Corporation acts as Secretary of the Executive Committee. Form 990, Part VI, Section A, line 7a The Texas Annual Conference of the South Central Jurisdiction of the United Methodist Church ("Conference") elects the Board of Directors. Form 990, Part VI, Section A, line 7b The Conference has the authority to approve any amendments to the following provisions of The Methodist Hospital's Bylaws or the Articles of Incorporation: i) the provision that the Conference elects all Directors of this organization from nominees recommended by the committee on Nominations of the Conference from nominations made by the Board of Directors, (ii) the provision that a sufficient number of Directors be members of The United Methodist Church to comply with the membership requirements set forth in the Book of Discipline of The United Methodist Church, (iii) the provision that four Methodist Ministers, including the Resident Bishop be members of the Board of Directors, (iv) the provision that the Board of Directors shall consist of no more than twenty-six and no fewer than fifteen members, or (v) the provision that amend the purpose clauses (Article II and VI) of the Articles of Incorporation of the Corporation or the dissolution clause (Article VII) of the Articles of Incorporation of the Corporation. Form 990, Part VI, Section B, line 11 Management, including certain Officers, works diligently to complete the Form 990 and attached schedules ("return") in a thorough manner. The return is prepared by a Paid Preparer. Prior to filing the return, Board members are provided a copy of the Form 990 (including required schedules), and management team members are available to answer any Board Members' questions. Form 990, Part VI, Section B, line 12c All Individuals serving in a significant decision making capacity complete a Conflict of Interest (COI) questionnaire annually. A comprehensive evaluation and thorough review of all disclosures is performed by a 6-member COI Committee comprised of executives, management, and staff. The results of the COI disclosures are reported to the Audit & Compliance Committee and The Methodist Hospital Board of Directors, including the actions being taken to protect the integrity of decision-making. In addition, disclosure results are also communicated to management and to affected committee chairs to promote transparency and to ensure that actions are taken and restrictions are imposed where appropriate. Conflicted individuals may not vote or exert self-serving influence on the disclosed matter. Form 990, Part VI, Section B, line 15 This organization follows IRS regulations as it relates to establishing a rebuttable presumption of reasonableness related to total compensation of key employees and compensated officers of the organization listed below. It has established a process that includes the following elements: A separate committee (the Board Committee) comprised of independent directors meets at least annually to review, deliberate and make recommendations to the Board as it relates to any changes in total compensation including base pay, bonus awards from incentive programs or benefits and perquisites of the CEO and other officers and some key employees (typically those who report directly to the CEO). For 2010, the Board Committee reviewed and recommended compensation packages for the following positions: - President/CEO, The Methodist Hospital System - EVP, Chief Financial Officer/Chief Administrative Officer, The Methodist Hospital System - EVP, Chief Medical Officer/Chief Academic Officer, The Methodist Hospital System - EVP, The Methodist Hospital - SVP, President & CEO of Methodist International - EVP, Chief Legal Officer, The Methodist Hospital System The Board Committee establishes that no member has any conflict of interest with regard to the executive compensation arrangements being approved. The Board Committee reviews and considers information provided by an external consultant engaged to ensure it has direct access to: - Compensation information paid by comparable organizations, for functionally comparable positions. - Compensation norms in the organization's immediate locale and from other independent compensation surveys by nationally recognized independent firms that represent the organization's logical peer group; - Compensation information that includes information on base salary, incentives, benefits and perquisites for total compensation comparison purposes to ensure reasonable competitive ranking. The committee relies on the comparability data to reach consensus that its recommendations to the Board regarding executive compensation changes are reasonable and in line with this organization's overall total compensation philosophy for executive pay. The deliberation and decisions of the committee are contemporaneously substantiated. The compensation for positions held by Key Employees not included in the process above, specifically the SVP, Nursing and SVP, Operations for The Methodist Hospital, is determined based on a thorough review of numerous compensation studies conducted by nationally recognized, independent firms that provide market data for total compensation for similar positions. The compensation information considered includes information on base salary, incentives, and benefits for total compensation purposes to ensure reasonable competitive ranking in order to meet recruitment and retention objectives that secure the talent required to contribute to organizational success. Form 990, Part VI, Section C, line 19 The governing documents (except for the Articles of Incorporation, which are on file with the Secretary of the State of Texas), conflict of interest policy, and financial statements of the organization are not made available to the general public. Compensation of Officers, Directors, Key Employees, Highest Compensated: Part VII, Section A Pursuant to Treasury Reg Section 1 6033-2(D)(5), The Methodist Hospital has elected to report information about contributions, gifts & grants, compensation and other information about Officers, Directors, Trustees, Key Employees, Former Employees, certain other highly paid employees, certain professional contractors and certain other contrators on a consolidated basis for all of the members of the group, including the parent organization, on the Group Return of Methodist Hospital Group, EIN 35-2410801. Form 990, Part VII, Section B Highest Pd Independent Contractors: Pursuant to Treasury Reg Section 1 6033-2(D)(5), The Methodist Hospital has elected to report information about contributions, gifts & grants, compensation and other information about Officers, Directors, Trustees, Key Employees, Former Employees, certain other highly paid employees, certain professional contractors and certain other contrators on a consolidated basis for all of the members of the group, including the parent organization, on the Group Return of Methodist Hospital Group, EIN 35-2410801. Professional Service: Form 990, Part IX, Line 24b Professional Service 140,347,344 Corporate Management fee allocation -62,545,227 Professional Service Net 77,802,117 Changes in Net Assets or Fund Balances: Form 990, Part XI, line 5: Net unrealized gains on investments: 216,392,859. Prior period adjustments: -10,583,660. Transfer to Methodist Hospital Foundation -1,609,372. Donated Equipment 7,114,523. Transfer from Donor Restricted Funds (Net) 149,474. Total to Form 990, Part XI, Line 5: 211,463,824. Included in Group Return Schedule B, Detail Pursuant to Treasury Reg Section 1 6033-2(D)(5), The Methodist Hospital has elected to report information about contributions, gifts & grants, compensation and other information about Officers, Directors, Trustees, Key Employees, Former Employees, certain other highly paid employees, certain professional contractors and certain other contrators on a consolidated basis for all of the members of the group, including the parent organization, on the Group Return of Methodist Hospital Group, EIN 35-2410801. METHODIST HOSPITAL SELF INSURANCE TRUST 6565 FANNIN HOUSTON TX 77030 741948396 INSURANCE TRUST TX 501(c)(3) Line 11a, I THE METHODIST HOSPITAL 1 SAN JACINTO FAMILY PRACTICE EDUCATION FOUNDATION 4401 GARTH ROAD BAYTOWN TX 77521 760556120 HEALTH CARE EDUCATION TX 501(c)(3) Line 11a, I SAN JACINTO METHODIST HOSPITAL 0 SAN JACINTO MEDICAL GROUP 4401 GARTH ROAD BAYTOWN TX 77521 760516915 HEALTH CARE TX 501(c)(3) Line 11a, I SAN JACINTO METHODIST HOSPITAL 0 THE METHODIST HEALTH CARE SYSTEM STD PLAN TRUST 6565 FANNIN HOUSTON TX 77030 766161019 INSURANCE TRUST TX SECTION 671 N/A THE METHODIST HOSPITAL 1 METHODIST RADIOLOGY ASSOCIATES PLLC 6565 FANNIN HOUSTON TX 77030 383768845 HEALTH CARE TX 501(c)(3) Line 11b, II TMH PHYSICIAN ORGANIZATION 0 TMH PHYSICIAN ASSOCIATES PLLC 6565 FANNIN HOUSTON TX 77030 300520570 HEALTH CARE TX 501(c)(3) Line 11b, II TMH PHYSICIAN ORGANIZATION 0 MEDVEST 1 LIMITED PARTNERSHIP 6565 FANNIN HOUSTON TX 77030 760534067 HEALTH CARE INVESTMENT TX N/A N/A 0 0 ALLIED METHODIST HOSPITAL PHYSICIANS 6565 FANNIN HOUSTON TX 77030 760551274 PHYSICIAN GROUP TX N/A C MEDVEST HOLDINGS INC 6565 FANNIN HOUSTON TX 77030 760667765 HEALTHCARE INVESTMENT TX N/A C MEDVEST INCORPORATED 6565 FANNIN HOUSTON TX 77030 760182470 PHARMACY TX N/A C METHODIST INTERNATIONAL 6565 FANNIN HOUSTON TX 77030 300347273 HEALTHCARE CONSULTING TX N/A C METHODIST WILLOWBROOK MOB CONDO ASSOCIATION 6565 FANNIN HOUSTON TX 77030 680500294 CONDO ASSOCIATION TX N/A C METHODIST WILLOWBROOK MOB CONDO ASSOCIATION II 6565 FANNIN HOUSTON TX 77030 262137993 CONDO ASSOCIATION TX N/A C SAN JACINTO METHODIST-ALEXANDER CONDOMINIUM ASSOCIATION 6565 FANNIN HOUSTON TX 77030 470921764 CONDO ASSOCIATION TX N/A C SJMH CONDOMINIUM ASSOCIATION 6565 FANNIN HOUSTON TX 77030 412096917 CONDO ASSOCIATION TX N/A C THE METHODIST HOSPITAL CONDOMINIUM ASSOCIATION 6565 FANNIN HOUSTON TX 77030 861065871 CONDO ASSOCIATION TX N/A C TMH MEDICAL OFFICE BUILDINGS CONDOMINIUM ASSOCIATION 6565 FANNIN HOUSTON TX 77030 760287893 CONDO ASSOCIATION TX N/A C METHODIST WEST HOUSTON MOB CONDOMINIUM ASSOC 6565 FANNIN HOUSTON TX 77030 300655123 CONDO ASSOCIATION TX N/A C WELSEY INSURANCE COMPANY SPC LTD 6565 FANNIN HOUSTON TX 77030 980405036 INSURANCE CJ THE METHODIST HOSPITAL C 449178 1.00000 1 1 1 0 0 0 0 0 0 0 1 0 0 0 1 1 1 1 Methodist Hospital Foundation K 436200 Fair Market Value Methodist Hospital Foundation Q 11592056 Fair Market Value Methodist Hospital Foundation C 8938744 Fair Market Value Methodist International O 3154431 Fair Market Value Methodist International P 116392 Fair Market Value Methodist International K 74400 Fair Market Value Methodist International A 50846 Fair Market Value Methodist International Q 2929804 Fair Market Value Allied Methodist Hospital Physicians O 677307 Fair Market Value Allied Methodist Hospital Physicians K 88900 Fair Market Value Allied Methodist Hospital Physicians A 35857 Fair Market Value Allied Methodist Hospital Physicians Q 563285 Fair Market Value Methodist Hospital Self Insurance Trust O 8000000 Fair Market Value TMH Physician Organization O 64275956 Fair Market Value TMH Physician Organization P 4916515 Fair Market Value TMH Physician Organization K 1020000 Fair Market Value TMH Physician Organization A 6105958 Fair Market Value TMH Physician Organization Q 64831367 Fair Market Value Medvest Incorporated K 198999 Fair Market Value Medvest Incorporated A 88503 Fair Market Value Medvest Incorporated R 1640132 Fair Market Value Methodist Health Centers O 312558 Fair Market Value Methodist Health Centers P 3510117 Fair Market Value Methodist Health Centers K 35321300 Fair Market Value Methodist Health Centers R 129429394 Fair Market Value Diagnostic Center Hospital O 1730769 Fair Market Value Diagnostic Center Hospital Q 1038469 Fair Market Value TMH Medical Office Buildings O 6370300 Fair Market Value TMH Medical Office Buildings A 564527 Fair Market Value TMH Medical Office Buildings P 529480 Fair Market Value TMH Medical Office Buildings K 1196000 Fair Market Value TMH Medical Office Buildings Q 43746388 Fair Market Value The Methodist Hospital Research Institute O 41049580 Fair Market Value The Methodist Hospital Research Institute P 1127035 Fair Market Value The Methodist Hospital Research Institute K 830568 Fair Market Value The Methodist Hospital Research Institute A 7850533 Fair Market Value The Methodist Hospital Research Institute Q 219247120 Fair Market Value San Jacinto Methodist Hospital P 340893 Fair Market Value San Jacinto Methodist Hospital K 14607720 Fair Market Value San Jacinto Methodist Hospital A 540934 Fair Market Value San Jacinto Methodist Hospital R 18662085 Fair Market Value