2011-11-11T16:00:52-06:00 2010-12-31 Deloitte Tax LLP 1111 Bagby Street Suite 4500 Houston TX 770024196 990 2010-01-01 760094743 THE METHODIST HOSPITAL FOUNDATION METH 8326676160 6565 Fannin No GB240 Houston TX 770302703 Edward L Tyrrell 8326676160 2011-11-11 1 Nancy Z Evetts 7139822000 2010 2016-03-07 17:11:31Z Ronald G Girotto 6565 Fannin No GB240 Houston TX 770302703 74569113 0 5792 X N/A X 1983 TX See Schedule O. 13 12 29 107 0 0 24146624 63608811 674849 1178910 12040375 9767846 -486028 -343760 36375820 74211807 10099031 8581438 0 0 2047730 2385757 0 0 2942127 1010920 1026010 13157681 11993205 23218139 62218602 118246084 182735856 1112387 1774185 117133697 180961671 X See Schedule O. 0 0 8581438 8581438 1178910 Contributions to the Methodist Hospital Foundation are used to fund various research, special purpose, or other designated Endowment Programs as requested by the donor. Special Purpose Funds can designate specialty care for indigent patients or other things such as Stroke Awareness Programs for the community. Research Designated Fund donations support things such as the work of doctors in education and research, scientists in the General Internal Medicine discipline, or research for nanotechnology in treating brain cancers. 8581438 1 1 0 0 0 0 0 0 1 1 0 0 1 0 1 1 1 0 0 0 0 0 0 1 0 0 1 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 0 0 0 1 0 0 29 1 0 0 0 0 0 1 1 0 0 0 0 0 X 13 12 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X Edward L Tyrrell FACHE 8326676160 6565 Fannin Houston TX 77030 Ronald G Girotto 12.00 X X 0 2564532 48606 Morrie K Abramson 1.00 X 0 0 0 John F Bookout 1.00 X X 0 0 0 Michael M Cone 1.00 X 0 0 0 Emily A Crosswell 1.00 X X 0 0 0 Charles W Duncan 1.00 X 0 0 0 James A Elkins III 1.00 X 0 0 0 Johns S Dunn 1.00 X 0 0 0 Raleigh W Johnson Jr 1.00 X 0 0 0 Vidal G Martinez 1.00 X 0 0 0 Robert K Moses Jr 1.00 X 0 0 0 David M Underwood 1.00 X X 0 0 0 James V Jim Walzel 1.00 X 0 0 0 Judge Ewing Werlein Jr ex officio 2.00 X 0 0 0 Edward L Tyrrell 2.00 X 0 417820 43191 John E Hagale 2.00 X 0 1024696 58270 Cynthia Riley 50.00 X 272123 0 27126 Susan Coulter 50.00 X 126040 0 22399 Nanette Duhon 50.00 X 146967 0 16361 Sandra Nauert 50.00 X 122359 0 24711 Judy Young 50.00 X 120418 0 24485 787907 4007048 265149 5 0 1 0 Aramark Services PO Box 651009 Charlotte NC 282651009 Management of Food Support 245003 1 436322 63172489 229838 63608811 Revenues 900099 1178910 1178910 1178910 9767846 9767846 13546 436322 357306 -343760 -343760 74211807 1178910 0 9424086 8545365 8545365 36073 36073 447688 447688 1514952 1514952 98015 98015 200716 200716 124386 124386 437772 436200 1572 33440 33440 360253 360253 18247 18247 110787 110787 1194 1194 8561 8561 39851 39851 15633 15633 Property Taxes 272 272 11993205 8581438 469640 2942127 21832518 41369739 196437 14483749 280626 234744 61514 45882 73729547 84056192 22426068 42780294 118246084 182735856 1112387 1774185 1112387 1774185 X 0 31120255 41894552 57289530 75239145 92551886 117133697 180961671 118246084 182735856 X 62218602 1609372 X 0 1 1 X 0 X X X 0 0 0 The Methodist Hospital 741180155 3 1 1 1 8545365 1 8545365 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 75239145 18783033 8564737 -10035029 92551886 51416692 12203792 11116253 0 -502408 75239145 66192765 3958630 -16297997 0 2436710 51416688 0.00000 1.00000 0.00000 0 0 280626 234744 45882 45882 Other Assets 2010227 Due from Sole Member 40770067 42780294 74211807 11993205 62218602 1609372 1609372 63827974 74569112 357305 357305 74211807 0 74211807 12350510 357305 357305 11993205 0 11993205 Description of Intended Use of Endowment Funds: Part V, Line 4: The Organization's permanently restricted net assets 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: The Methodist Hospital Foundation's financial statements were audited by an independent accountant as part of a consolidated financial statement of The Methodist Hospital System (Methodist), the sole Corporate Member. Methodist did not recognize any adjustments related to uncertain tax positions as of December 31, 2010. Part XI, Line 8 - Other Adjustments: Contributions from The Methodist Hospital 1,609,372. Part XII, Line 2d - Other Adjustments: Amount represents direct expenses of fund raising activities as reported on 357,305. Form 990, Part VIII, line 8b. Part XIII, Line 2d - Other Adjustments: Amount represents direct expenses of fundraising activities as reported on 357,305. Form 990, Part VIII, line 8b. S4S 380418 369872 10546 44810 33107 24090 223463 Leading Hearts 69450 66450 3000 31836 449868 436322 13546 44810 33107 24090 255299 357306 -343760 1 The Methodist Hospital 6565 Fannin GB240 Houston TX 77030 741180155 501 C (3) 8545365 Program Service Support 1 0 Scholarships and Awards 11 36073 Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: Review and approval procedures are in place to ensure that restricted funds are used consistent with donor intent. Prior to The Methodist Hospital Foundation'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. X X X X X 0 1 0 0 0 0 0 1 0 Ronald G Girotto 0 1170145 0 720000 0 674387 0 25600 0 23006 0 2613138 0 0 Edward L Tyrrell 0 277701 0 97890 0 42229 0 25600 0 17591 0 461011 0 0 John E Hagale 0 652006 0 251603 0 121087 0 25600 0 32670 0 1082966 0 0 Cynthia Riley 203739 0 57017 0 11367 0 17045 0 10081 0 299249 0 0 0 Nanette Duhon 127354 0 17835 0 1778 0 11505 0 4856 0 163328 0 0 0 Supplemental Information Part III Schedule J, Part I, Line 3: The CEO of this organization is employed by a related organization who utilized the following items to establish compensation: (1) compensation committee; (2) independent compensation consultant; (3) written employment contract; (4) compensation survey or study; (5) approval by the board or compensation committee. The boxes marked on Part I, Line 3 are indicative of the related organization's practices. Schedule J, Part I, Line 4a: 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, Part I, Line 4b: Ronald G Girotto: $571,806, Edward L Tyrrell: $12,815, John E Hagale: $100,567, and Cynthia Riley: $10,142, were all paid from the Supplemental Executive Retirement Plan (SERP) described below. The SERP is 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, eah 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, Part I, Line 7: This organization provides a variable compensation opportunity through an annual management incentive plan. A percentage of the potential bonus payout (paid as a percent of base salary) is based on whether the individual attains certain goals for their area of responsibility as determined by their immediate supervisor. X 17 11916 X 4 185844 X Printing,Food, Gift Certificates,etc 16 18641 X Rent 2 13437 0 0 1 1 Method for Determining Number of Contributors: Part I, Column (b): These numbers represent the number of contributors. Third Party Use: Part I, Line 32b: Stock Contributions are sold by outside agencies. Describe the Organization's Mission: Part I, Line 1 and Part III, Line 1: This organization is part of The Methodist Hospital System, whose mission is: 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. Form 990, Part VI, Section A, line 6 The sole corporate member is The Methodist Hospital. Form 990, Part VI, Section A, line 7a The Corporate Member of the organization (The Methodist Hospital) appoints the Board of Directors. Form 990, Part VI, Section A, line 7b The Corporate Member of the organization (The Methodist Hospital) reserves the following powers: - to appoint and remove with or without cause the Directors of the organization; - to approve the incurrence by the organization of any indebtedness and all guarantees of the debt of another party; - to approve the annual operating and capital budgets of the organization after they are prepared and approved by the organization's Board of Directors; - to approve the dissolution of the organization; - to approve the organization's participation in partnerships and joint ventures; - to approve the acquisition or disposition by the organization of real property from or to a non-Corporation controlled organization through ownership, lease or otherwise; - to approve the disposition or acquisition by the organization of, or the investment by the organization in, another business or all or a portion of the business or operations of another business; - to establish, acquire or invest in any new or different business; and - to direct the organization in its actions as the corporate member or shareholder of other organizations, including but not limited to, approving amendments to the articles of incorporation and bylaws of such other organizations. 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 parent corporation's Audit & Compliance Committee and 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 The Methodist Hospital (TMH) (sole corporate member) follows IRS regulations as it relates to establishing a rebuttable presumption of reasonableness related to total compensation of the CEO of this organization as well as other 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. For 2010, the Board Committee reviewed and recommended compensation packages for the following positions: - President/CEO, The Methodist Hospital who also serves as President/CEO for The Methodist Hospital Foundation - EVP, Chief Financial Officer/Chief Administrative Officer, The Methodist Hospital (Assistant Secretary, The Methodist Hospital Foundation) 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 Board 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 the organization's overall total compensation philosophy for executive pay. The deliberations and decisions of the committee are contemporaneously substantiated. The compensation for positions held by the other compensated Officers, Directors and Key Employees listed on Part VII, Section A 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) and conflict of interest policy of the organization are not made available to the general public. Financial Statements are made available to the general public upon written request. Changes in Net Assets or Fund Balances: Form 990, Part XI, line 5: Contributions from The Methodist Hospital 1,609,372. Total to Form 990, Part XI, Line 5: 1,609,372. Methodist Hospital Self Insurance Trust 6565 Fannin Houston TX 77030 741948396 Insurance Trust TX 501 (c)(3) Line 11a, I The Methodist Hospital 0 San Jacinto Family Practice Educ Fdn 4401 Garth Road Baytown TX 77521 760556120 Health Care Education TX 501 (c)(3) Line 11a, I San Jacinto Methodist Hosp 0 San Jacinto Medical Group 4401 Garth Road Baytown TX 77521 760516915 Health Care TX 501 (c)(3) Line 11a, I San Jacinto Methodist Hosp 0 The Methodist Health Care Sys STD Plan Trust 6565 Fannin Houston TX 77030 766161019 Insurance Trust TX Section 671 N/A The Methodist Hospital 0 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 Investments TX N/A Allied Methodist Hospital Physicians 6565 Fannin Houston TX 77030 760551274 Physician Group TX N/A C Methodist International 6565 Fannin Houston TX 77030 300347273 Health Care Consulting TX N/A C Medvest Holdings Inc 6565 Fannin Houston TX 77030 760667765 Health Care Investments TX N/A C Medvest Incorporated 6565 Fannin Houston TX 77030 760182470 Pharmacy TX N/A C Methodist West Houston MOB Condominium Association 6565 Fannin Houston TX 77030 300655123 Condominium Association TX N/A C Methodist Willowbrook MOB Condominium Association 6565 Fannin Houston TX 77030 680500294 Condominium Association TX N/A C Methodist Willowbrook MOB Condominium Association II 6565 Fannin Houston TX 77030 262137993 Condominium Association TX N/A C San Jacinto Methodist-Alexander Condominium Association 6565 Fannin Houston TX 77030 470921764 Condominium Association TX N/A C SJMH Condominium Association 6565 Fannin Houston TX 77030 412096917 Condominium Association TX N/A C The Methodist Hospital Condominium Association 6565 Fannin Houston TX 77030 861065871 Condominium Association TX N/A C TMH Medical Office Buildings Condominium Association 6565 Fannin Houston TX 77030 760287893 Condominium Association TX N/A C Wesley Insurance Company SPC LTD 6565 Fannin Houston TX 77030 980405036 Insurance CJ N/A C 0 1 1 0 0 0 0 0 1 0 0 1 0 0 1 0 0 1