2021-05-14T14:26:42-05:00 2020-06-30 990 2019-07-01 741161944 Hillcrest Baptist Medical Center HILL 2148204135 301 N Washington Avenue Dallas TX 75246 Shellie Mach VP CFO 2542029450 2021-05-13 2019 2022-09-23 18:48:47Z Baylor Scott & White Medical Center-Hillcrest Charles Williams 100 Hillcrest Medical Blvd Waco TX 76712 408621539 0 X www.bswhealth.com X 1916 TX Faith based acute care hospital providing exemplary patient care, medical education, medical research and community service to residents of the Central Texas region since 1916. 12 7 1763 65 0 0 7170646 15817659 332620258 315492697 5521063 4862529 1277408 1224242 346589375 337397127 18991202 25549511 0 0 102156537 107420433 0 0 0 182639256 201409645 303786995 334379589 42802380 3017538 392949710 450329085 251053392 309740452 141896318 140588633 X Founded as a Christian ministry of healing, Baylor Scott & White Health promotes the well-being of all individuals, families and communities. 0 0 283484206 25549511 315492697 See Schedule OHillcrest Baptist Medical Center dba Baylor Scott & White Medical Center - Hillcrest (BSW Hillcrest) is a faith-based, nonprofit, 236-bed acute care hospital providing exemplary patient care services to the residents of McLennan County and the surrounding communities since 1916. BSW Hillcrest is affiliated with Baylor Scott & White Health (BSWH), a faith-based nationally acclaimed network of acute care hospitals and related health care entities providing quality patient care, medical education, medical research and other community services to the residents of North and Central Texas. As the largest not-for-profit health care system in Texas and one of the largest in the United States, BSWH was born from the 2013 combination of Baylor Health Care System and Scott & White Healthcare. Today, BSWH has over 1,000 patient care sites including 52 hospitals, 562 specialty care clinics, 195 outpatient clinics, 172 primary care clinics, 31 pharmacies, 26 ambulatory surgery centers, and approximately 7,300 active physicians. The system also includes a state certified health maintenance organization, the Scott and White Health Plan and the Baylor Scott & White Quality Alliance accountable care organization both covering over 906,000 lives. BSW Hillcrest is a Magnet recognized hospital with a vast array of specialty services including a major Level II Trauma Center serving the five county region, the only Level III Neonatal Intensive Care Unit in the Waco Region, the only comprehensive CARF certified inpatient rehabilitation facility in the Waco Region, a comprehensive freestanding cancer center and a freestanding sports and orthopedic center. During the fiscal year, BSW Hillcrest admitted 13,663 patients resulting in 58,972 days of care; delivered 2,751 babies and received 66,282 emergency department visits. Additionally, BSW Hillcrest provided community benefits (as reported to the Texas Department of State Health Services and in accordance with the State of Texas Statutory methodology) of $28,564,420 and provided community benefits (as reported on the Internal Revenue Service (IRS) Form 990, Schedule H) of $26,847,643 during the tax year. See Schedule H for more information regarding these services and how BSW Hillcrest promotes the health of the communities. 283484206 1 1 0 1 0 0 0 0 0 1 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 1 1 1 0 1 0 0 0 0 0 0 1 0 0 0 0 0 0 1 1 1 0 0 1 139 0 1 1763 1 0 0 0 0 0 0 0 0 0 0 0 0 X 12 7 1 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X Angie Hutson 2148201075 301 N Washington Avenue Dallas TX 75246 X Patricia M Currie Director 1.00 40.00 X 0 1542848 341787 Glen R Couchman MD Director 1.00 40.00 X 0 1462551 44642 Glenn A Robinson President/CEO 40.00 0.00 X 956650 0 114297 Michael D Reis MD Director/Vice Chair 1.00 40.00 X X 0 746241 104249 James Morrison MD SVP CMO 40.00 0.00 X 613866 0 95965 Richard Perkins VP CFO 40.00 0.00 X 372253 0 41631 John W Speckmiear MD Director 1.00 40.00 X 0 355437 51512 Rebecca Hardie VP CNO 40.00 0.00 X 328590 0 35771 Brad Crye VP Operations 40.00 0.00 X 283768 0 33395 Joni L Watson Director Clinic Operations 40.00 40.00 X 44501 186546 39281 Matthew Rohrer VP Clinic Operations 40.00 0.00 X 221912 0 34899 David Gentsch Director Pharmacy 40.00 0.00 X 232634 0 11450 Anna Schlatter VP Patient Care 40.00 0.00 X 203571 0 32326 April D Hayes Director Nursing 40.00 0.00 X 199165 0 19967 Arianne Mccord Director HR Strategic Svcs 40.00 0.00 X 171831 0 22526 Walter Abercrombie Director 1.00 0.00 X 0 0 0 Billy H Davis Jr Director 1.00 0.00 X 0 0 0 Gynnis Cantrell Gaines Director 1.00 0.00 X 0 0 0 Carey Hobbs Director 1.00 0.00 X 0 0 0 Terry Maness Director/Chair 1.00 2.00 X X 0 0 0 G Michael Reitmeier Director 1.00 0.00 X 0 0 0 J Mark Rister MD Director/Treasurer 1.00 0.00 X X 0 0 0 Gordon L Swanson Director/Secretary 1.00 0.00 X X 0 0 0 3628741 4293623 1023698 78 0 1 0 Adolfson and Peterson 1600 N Collins Blvd Suite 2000 Richardson TX 75080 Construction Services 23032970 Scott & White Clinic 301 N Washington Ave Dallas TX 75246 Physician Services 9500138 Hillcrest Physician Services 301 N Washington Ave Dallas TX 75246 Physician Services 8710706 Aramark Services Inc PO Box 651009 Charlotte NC 282651009 Engineering/Food Services 7738420 McLennan County Medical Education&Resear 1600 Providence Dr Waco TX 76707 Physician Services 2044840 27 7170215 8494883 152561 21320 15817659 Patient Care 622110 311975328 311975328 Rent 531120 2047842 2047842 Shared Savings 622110 1204804 1204804 Corporate Services 561110 225838 225838 Education 611710 14135 14135 24750 24750 315492697 2964017 2964017 73122924 71203031 21381 1919893 -21381 1898512 1898512 Cafeteria/Vending 722514 971824 971824 Gift Shop/Retail 453220 250392 250392 Parking 812930 2026 2026 1224242 337397127 315492697 0 6086771 X 25549511 25549511 2453467 2453467 189640 189640 85251286 83178380 2072906 2973489 2901145 72344 10154006 9906708 247298 6398545 6246601 151944 16213 16213 49653 49653 79750487 35506297 44244190 238567 15991 222576 1636000 1569796 66204 14851394 14808570 42824 22972401 21945659 1026742 221159 212229 8930 176256 160871 15385 81487 81487 10745148 10745148 66018 66018 Medical Supplies 62370904 62370904 LPPF Expenses 5349996 5349996 Indigent Care Expense 1584344 1584344 Federal Income Tax -13499 -13499 1313117 1174428 138689 334379589 283484206 50895383 0 20214933 45689821 29328225 33963669 6860669 7579613 11156 2231 277835510 119514051 128499851 158321459 191354944 172385183 2340710 1802334 14339222 30584775 392949710 450329085 38052146 41285012 35096480 18643346 213001246 214715614 251053392 309740452 X 131667944 130879293 10228374 9709340 141896318 140588633 392949710 450329085 X 3017538 -2089687 -2235536 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 0 0 0 1 15527 1 49653 0 0 65180 0 Part II-B, Line 1: Statement Regarding Legislative Activity: Health care policy is critical to all Americans, and the Organization believes that health care providers must participate in forming health care policy by interacting with national, state and local representatives and their staff members to help them better understand the complexities and ramifications of key health care policies including, without limitation, those related to uninsured and indigent patient needs as well as the legislative and regulatory needs to assure the delivery of cost-efficient, quality health care. The Organization has established relationships with persons and industry associations that often communicate the Organization's positions on major health care issues. These contacts may include direct contact, telephone conversations and/or letters. Also, the Organization may attempt to educate the local community on certain legislative initiatives that may impact the Organization's ability to provide quality health care services to the community through direct mailings, media advertising or broadcast statements. The amount of resources (time and money) involved in these activities is insubstantial. The Organization has not intervened in any political campaign. 1755795 115 572 2925 1753557 1759114 5376 8695 1755795 1716030 130 43954 1000 1759114 1681012 7 36363 1352 1716030 1669842 831 11364 1025 1681012 0.00000 0.97170 0.02830 0 1 1 14983838 14983838 189882354 73038086 116844268 71571362 46475965 25095397 1397956 1397956 158321459 Vested SERP Assets 1535008 457B Assets 2572882 Interest in Net Assets of Related Foundations 9692094 Operating Lease Assets 16784791 30584775 Note Payable to Related Organizations 203429632 Retirement Plan 1613254 Environmental Liabilities 9172728 Other Long Term Liabilities 500000 214715614 X Part V, Line 4: The Baylor Scott & White-Central Texas Foundation and Hillcrest Health Foundation endowments provide support for the activities and purposes of BSW Holdings and its affiliated entities (collectively, "BSWH"). They enable BSWH to advance its medical objective and mission, including sponsorship of patient care, research, and educational and training programs. The Hillcrest Health Foundation endowments are used to fund charity care and educational programs at BSW Hillcrest. Part X, Line 2: The filing organization does not have separate individual audited financial statements; however, the organization is included in BSW Holdings' combined audited financial statements (System). The System follows the provisions of ASC 740 "Income Taxes". As of June 30, 2020 and 2019, the System had no material gross unrecognized tax benefits. 1 1 X 1 X 1 X 500.000000000000 1 1 1 0 1 1 22204542 63568 22140974 0.06620 47033020 48977123 0 0.00000 1290297 390422 899875 0.00270 70527859 49431113 23040849 0.06890 2438604 320 2438284 0.00730 507642 0 507642 0.00150 0 0 0 0 860869 0 860869 0.00260 3807115 320 3806795 0.01140 74334974 49431433 26847644 0.08030 1 33590264 0 72261160 53469269 18791891 X 1 1 1 1 Baylor Scott & White Med Ctr-Hillcrest 100 Hillcrest Medical Blvd Waco TX 76712 www.bswhealth.com 000506 X X X Baylor Scott & White Med Ctr-Hillcrest 1 0 0 1 X X X X X X X X X 18 1 0 0 1 X www.BSWHealth.com/CommunityNeeds X 1 18 1 www.BSWHealth.com/CommunityNeeds 0 1 X 200.000000000000 500.000000000000 X X 1 1 X X X 1 X https://www.bswhealth.com/financialassistance X https://www.bswhealth.com/financialassistance X https://www.bswhealth.com/financialassistance X X X X X X X 1 X 0 X X X X X 1 X 0 0 Baylor Scott & White Med Ctr-Hillcrest Part V, Section B, Line 5: One (1) focus group with a total of 13 participants, as well as 11 key informant interviews, were conducted to take into account the input of persons representing the broad interests of the community served. The focus group and interviews solicited feedback from leaders and representatives who serve the community and have insight into community needs. Prioritization sessions were also held with hospital clinical leadership and/or other community leaders to identify significant health needs from the assessment and prioritize them.The focus group familiarized participants with the CHNA process and solicited input to understand health needs from the community's perspective. Focus groups, formatted for individual as well as small group feedback, helped identify barriers and social determinants influencing the community's health needs. Barriers and social determinants were new topics added to the 2019 community input sessions.Watson Health conducted key informant interviews for the community served by the hospital facility. The interviews aided in gaining understanding and insight into participants concerns about the general health status of the community and the various drivers that contributed to health issues. Participation in the qualitative assessment included at least one state, local, or regional governmental public health department (or equivalent department or agency) with knowledge, information, or expertise relevant to the health needs of the community, as well as individuals or organizations who served and/or represented the interests of medically underserved, low-income and minority populations in the community. Participation from community leaders/groups, public health organizations, other healthcare organizations, and other healthcare providers (including physicians) ensured that the input received represented the broad interests of the community served.The following is a list of groups consulted: Baylor Scott & White Hillcrest Nurse-Family Partnership, Baylor Scott &White Health, Baylor Scott and White Medical Center-Hillcrest, Caritas of Waco, Carter Blood Care, Central Texas Catholic Charities, Central Texas Food Bank, Department of Public Health, Baylor University, Family Abuse Center, Family Health Center, Heart of Texas Region MHMR, Heart of Texas Regional Advisory Council, Inner Peace Outer Beauty Salon & Spa, One Fellowship Church, Prosper Waco, Providence Health Center, Texas Department of State Health Services - HSR 7, United Way of Waco-McLennan County, Waco Police Department, and Waco-McLennan County Public Health District. Baylor Scott & White Med Ctr-Hillcrest Part V, Section B, Line 6a: NonePart V, Section B, Line 9: The hospital adopted its most recent Implementation Strategy before November 15, 2019, the 15th day of the fifth month after the 2018 tax year as described in IRS Regulation Section 1.501(r)-3(c)(5). Baylor Scott & White Med Ctr-Hillcrest Part V, Section B, Line 11: The hospital is committed to serving the community by adhering to its charitable mission, using its skills and capabilities, and remaining a strong organization which continues to provide a wide range of important health care services and community benefits. The hospital has teamed up with other hospital facilities and/or other health care organizations in the community to complete a joint community health needs assessment and develop a joint implementation strategy to address the health needs of the community while meeting certain federal and state requirements. These organizations will address all significant community health needs (except the need(s) listed below) based on the anticipated impact to the community, hospital resources available, and the expertise of each respective organization. Specific actions can be found in the joint implementation strategy that is made widely available on the hospital's website at www.BSWHealth.com/CommunityNeeds.The following identified needs have not been addressed in the joint community benefit implementation plan: Individuals Living Below Poverty Level and No Vehicle Available.There are multiple community and state agencies whose expertise and infrastructure are better suited for meeting the needs not addressed in the Community Health Implementation Strategies. Therefore, BSWH leadership has opted to focus its resources on the listed priorities for the betterment of the community. Baylor Scott & White Med Ctr-Hillcrest Part V, Section B, Line 16j: Measures to publicize the policy within the community served by the hospital facility, include but are not limited to, the following: 1) posting signs and notices regarding the financial assistance policy in the emergency departments, admitting areas and business offices located throughout the organization: 2) annual posting regarding the organization's financial assistance program in the local newspapers: 3) information regarding financial assistance, including the organization's financial assistance policy, is posted on the organization's website: 4) notices about the organization's financial assistance policies are posted on each bill sent to patients including providing a phone number to access the customer service unit dedicated to answering patients billing questions, as well as provide information regarding financial assistance: and 5) the organization may provide free financial counselors to help inpatients determine how to meet their financial obligations for services provided. Specifically financial counselors assist patients in applying for government assistance programs such as Medicaid or the organization's financial assistance program. Any patient may request to speak to a financial counselor when being treated at the organization. Uninsured patients who are admitted to the hospital may receive help from a financial counselor. These services are also offered through interpretation services in the primary language of the patient requesting assistance. The organization has the 501(r) policies available on its website in eight languages: English, Spanish, Russian, Korean, Vietnamese, Arabic, French and Chinese. The organization can also accommodate other languages including American Sign Language as needed. Baylor Scott & White Med Ctr-Hillcrest Part V, Section B, Line 20e: A copy of the Plain Language Summary is included on the back of every billing statement. 4 1 - BSW McClinton Cancer Center 150 Hillcrest Medical Blvd Waco TX 76712 Specialty clinic 2 - BSW Ortho Surgery-Waco 140 Hillcrest Medical Blvd Ste 3 Waco TX 76712 Orthopedic Surgery Ctr 3 - BSW Outpatient Rehab-Hewitt 511 North Hewitt Dr Ste 10 Hewitt TX 76643 Rehabilitation clinic 4 - BSW MacArthur OP Rehab-Waco 2201 MacArthur Dr Ste 100 Waco TX 76708 Specialty clinic Part I, Line 3c: and Line 3b: In addition to providing free care to financially indigent patients at 200% of the federal poverty guidelines ("FPG"), the organization provides discounted care to the medically indigent which is based on both the FPG (up to 500%) and the percentage of the patient's total bills from all Baylor Scott & White Health related providers in relation to the patient's annual income. Part I, Line 6a: The organization prepares and files an Annual Report of Community Benefit Plan with the Texas Department of State Health Services. This report is made available through the organization's website at www.BSWHealth.com/CommunityNeeds. Part I, Line 7: A ratio of patient care cost to charges, as determined in Worksheet 2, was used to report the amounts in Part I, Lines 7a - 7d. For amounts reported on lines 7e - 7k, actual expenses for each community benefit activity are tracked and reported using both community benefit software and/or the organization's cost accounting system.Part I, Line 7i, Column (c): Includes charity care payments of $399,000 that are made directly to or on the behalf of a local public hospital and/or other nonprofit organizations for the treatment of indigent patients of those organizations. Part I, Ln 7 Col(f): The amount of bad debt expense included on Form 990, Part IX, line 25, but removed for Schedule H, Part I, Line 7, Column (f) totaled $0. Part III, Line 4: As stated in the combined audited financial statements, "The System maintains allowances for uncollectible accounts for estimated losses resulting from a payor's inability to make payments on accounts. The System assesses the reasonableness of the allowance account based on the historical write-offs, cash collections, the aging of the accounts and other economic factors. Accounts are written off when collection efforts have been exhausted. Management continually monitors and adjusts its allowance associated with its receivables." Bad debt does not include amounts for patients who are known to qualify under the organization's charity care policy. The amount of bad debt attributable to patient's accounts is net of contractual allowance, payments received and recoveries of bad debt previously written off. The organization has entered zero on Schedule H, Part III, Line 3; however, based on prior experience and certain demographics and other information obtained during admission, the organization believes a portion of the bad debt expenses (estimated to range from 1-5%) would be attributable to patients that would otherwise qualify for charity care. Despite all of the effort and ways the organization educates patients about qualifying for its charity care program as demonstrated in Part VI, question 3 below, many uninsured patients either refuse or fail to complete a charity care application or provide sufficient information at the time of admission, during their stay or after being discharged to qualify for assistance under the organization's charity care policy. Part III, Line 8: The amount reported on Part III, Section B, line 7 was calculated in accordance with the Schedule H instructions utilizing the organization's allowable cost reported in the Medicare cost report based on a cost to charge ratio. However, the allowable costs in the Medicare cost report do not reflect the actual cost of providing care to patients since the Medicare cost report excludes many direct patient care costs that are essential to providing quality care to these patients. For example, certain coverage fees to physicians, cost of Medicare C and D, and other similar direct patient care expenses are specifically excluded as allowable cost in the cost reports. Using the same methodology to calculate the unreimbursed cost of providing charity care and Medicaid (using applicable Schedule H Worksheets) would result in a shortfall of $15,067,639 which is $33,859,530 higher than the amount reported on Part III, Section B, Line 7.The organization believes that all of the shortfall should be considered as a community benefit for the following reasons. First, the IRS Community Benefit Standard includes the provision of care to the elderly and Medicare patients. IRS Revenue Ruling 69-545 provides, in part, that hospitals serving patients with governmental health benefits, including for example Medicare, is an indication that the hospital operates for the promotion of health in the community. Second, the organization provides care to Medicare patients regardless of this shortfall, i.e., loss, and thereby relieves the state and federal government of the burden of paying the full cost for the care of Medicare beneficiaries. Medicare does not provide sufficient reimbursement to cover the entire cost of providing care to these patients causing the organization to use other surplus funds to cover the shortfall. It is expected that reimbursement under the Medicare program will continue to decline and therefore may further limit access to care due to the anticipated reduction of participating Medicare providers in the community. As a result, the care for these patients will likely increase at, and rest on the shoulders of, nonprofit hospitals or county hospital districts. Third, many of the Medicare participants have low fixed incomes and therefore would qualify for charity care or other means tested government programs absent being enrolled in the Medicare program. Fourth, Texas nonprofit hospitals must provide a minimum level of community benefit in order to obtain exemption from state and local taxes. According to the current Texas Health and Safety Code, the unreimbursed cost of Medicare is considered to be a community benefit in determining these state statutory requirements as it helps relieve a governmental burden of providing this care that would otherwise be provided through the county hospital system in Texas. Part III, Line 9b: The organization's patient billing and collection policy prohibits any collection efforts for the portion of the account balance that qualifies for financial assistance under the organization's financial assistance policy. For any remaining balances due, the same policy contains the actions that may be taken in the event of nonpayment, which are applied equally to all patient types. The policy is made widely available to the public on the organization's website https://www.bswhealth.com/financialassistance. Part VI, Line 2: During the fiscal year ending June 30, 2019, the Organization conducted a Community Health Needs Assessment (CHNA) to assess the health care needs of the community for each of its licensed hospital facilities and developed an implementation strategy to address the needs identified in the CHNAs. The CHNAs were conducted in accordance with state and federal guidelines including Internal Revenue Code Section 501(r) and the Texas Health and Safety Code Section 311. These CHNAs and implementation strategies have been made widely available to the public and are located on the Organization's website at the following address: www.BSWHealth.com/CommunityNeeds. Part VI, Line 3: The organization is committed to promoting health in the community including providing or finding financial assistance programs to assist patients. Patients who may qualify for financial assistance through the organization's charity care program or other federal, state and local government programs are informed and educated about their eligibility in several ways including, but not limited to, the following: 1) posting signs and notices regarding the financial assistance policy in the emergency departments, admitting areas and business offices located throughout the organization: 2) annual posting regarding the organization's financial assistance program in the local newspapers: 3) information regarding financial assistance, including the organization's financial assistance policy, is posted on the organization's website: 4) notices about the organization's financial assistance policy is posted on each bill sent to patients including providing a phone number to access the customer service unit dedicated to answering patients billing questions, as well as provide information regarding financial assistance: and 5) the organization may provide free financial counselors to help inpatients determine how to meet their financial obligations for services provided. Specifically financial counselors assist patients in applying for government assistance programs such as Medicaid or the organization's financial assistance program. Any patient may request to speak to a financial counselor when being treated at the organization. Uninsured patients who are admitted to the hospital will automatically receive help from a financial counselor. These services are provided in writing and through interpretation services in the primary language of the patient requesting assistance. The organization has the 501(r) policies available on its website in eight languages: English, Spanish, Russian, Korean, Vietnamese, Arabic, French and Chinese. The organization can also accommodate other languages including American Sign Language as needed. Part VI, Line 4: The organization operates a hospital facility that primarily serves the geographical area of McLennan County. Additional information regarding the community can be found below, and in the hospital's community health needs assessment and implementation strategy located on the organization's website at www.BSWHealth.com/CommunityNeeds.The population is approximately 256,897 with a median household income for the ZIP codes within this community ranging from $25,829 to $82,895. There were nine ZIP codes with median household incomes less than $50,200 twice the 2018 Federal Poverty Limit for a family of four. The community served expects to grow 5.6% by 2023, an increase by more than 14,000 people. The 5.6% projected population growth is lower than the state's 5-year projected growth rate (7.1%) and higher compared to the national projected growth rate (3.5%). The ZIP codes expected to experience the most growth in five years are also the most populated zip codes are 76706 South Waco-Robinson 2,519 people and 76712 Woodway 1,843 people. The community's population skewed younger with 38.6% of the population ages 18-44 and 24.9% under age 18. The largest cohort (18-44) is expected to grow by 5,260 people by 2023. The age 65 plus cohort was the smallest (14.4% of the total population) but is expected to experience the fastest growth (15.8%) over the next five years, adding 5,835 seniors to the community. The age 45-64 cohort, representing 22.2% of the current population, is expected to shrink minimally (-0.1%).Population statistics is by analysis of race and by Hispanic ethnicity. The community was primarily white and non-Hispanic, but diversity in the community will slightly increase due to the projected growth of minority populations over the next five years. The expected growth rate of the Hispanic population (all races) is over 9,000 people (13.5% change) by 2023. In particular, the White and Multi-Racial Hispanics will add the most residents in the area. The non-Hispanic white and black populations are expected to have the slowest growth (1.5% and 3.9% respectively) while the non-Hispanic Asian / Pacific Islander, multi-racial, and American Indian / Native American populations are expected to increase marginally in the next 5 years. A majority of the population (37%) were insured through employer sponsored health coverage, followed by those without health insurance (26%). The remainder of the population was divided between Medicaid (14%), Medicare (15%), and private market (8%) (the purchasers of coverage directly or through the health insurance marketplace).The community includes five (5) Health Professional Shortage Areas and one (1) Medically Underserved Areas as designated by the U.S. Department of Health and Human Services Health Resources Services Administration. Part VI, Line 5: Under the control and oversight of Hillcrest Health Systems Inc. and Baylor Scott & White Holdings, the organization's ultimate parents, the organization's hospital facilities and/or other health care facilities have promoted health and benefited the community by providing exemplary health care, medical education, research and other community services. The organization's governing body is comprised of a majority of volunteer community representatives that provide leadership and governance for the organization. The members of the governing body contribute their wisdom, insights, and expertise to ensure the organization is fulfilling its mission and charitable purpose while providing efficient administrative support services and direction for the organization. The members are well respected residents and/or own businesses in the organization's primary or secondary service area and understand the needs of the community. The medical staff of the organization is open to all physicians in the community who meet membership and clinical privilege requirements. As a nonprofit organization surplus funds are continuously invested back to the community and are utilized to maintain access to limited patient care services or expand access points of care to patients throughout the community. These efforts are generally targeted to meet the community health needs identified in the community health needs assessment conducted by each of the hospital facilities. More information of these efforts can be found in the written implementation strategies that have been made widely available to the public and are located on the organization's website at the following address: www.BSWHealth.com/CommunityNeeds. Below are summaries of a few of the hospital's key patient care services or community benefit programs designed to promote the health of the community. The organization provides financial assistance in the form of charity care to patients who are indigent and satisfy certain eligibility requirements. Additionally, the organization is committed to treating patients who are eligible for means tested government programs such as Medicaid and other government sponsored programs including Medicare, which is provided regardless of the reimbursement shortfall, and thereby relieves the state and federal government of the burden of paying the full cost of care for these patients. Often, patients are unaware of the federal, state and local programs open to them for financial assistance, or they are unable to access them due to the cumbersome enrollment process required to receive these benefits. The organization offers assistance in enrollment to these government programs or extends financial assistance in the form of charity care through the organization's Financial Assistance Policy which can be located on the organization's website at www.bswhealth.com/financialassistance.The organization provides a comprehensive Level II Trauma Center with Board Certified emergency physicians and specially-trained nursing staff. The Emergency Center houses the Baylor Scott & White Stroke Center, awarded the Joint Commission's Gold Seal in recognition for providing all necessary elements to provide quality care for stroke patients. The Women's & Children's Center at the organization includes a comprehensive obstetrics and gynecology program, Kidsville Pediatrics and the area's only Level III Neonatal Intensive Care Unit. Our comprehensive women's services program also includes the Breast Center that offers the county's first digital mammography capabilities plus stereotactic and ultrasound services.The Baylor Scott & White McClinton Cancer Center on the main campus of the organization is the area's most comprehensive, freestanding multidisciplinary cancer facility. The Center's ever-expanding scope of services is fulfilling our mission to provide personalized health and wellness through exemplary care by providing technologically advanced diagnosis and treatment for a variety of cancers. For many, this is eliminating the need to seek these services miles away from home and family. The Cancer Center has recently expanded its radiation therapy capabilities with the addition of Brachytherapy and the Varian TrueBeam Linear Accelerator. These strengthening radiation therapy capabilities are bringing unique treatment options to cancer patients in our broader service area. The organization is the only healthcare facility in central Texas to provide the full-service version of TrueBeam technology to cancer patients - technology which is taking the guesswork out of knowing where a tumor is and where the other critical structures are in the body in relation to the tumor. The Cancer Center's range of specialties include neuro-oncology, gynecologic oncology, high-risk breast clinic services, medical oncology, radiation oncology and advanced radiation therapies, hematology, outpatient infusion services and laboratory services. The organization provides access to other quality medical services including areas of excellence such as cardiology, orthopedics, outpatient care, physical medicine and rehabilitation. The Hillcrest Family Health Centers provide primary care through their network of clinics.The organization is also committed to promoting the health and well-being of individuals and families beyond the health activities of the traditional hospital or clinic setting through its community outreach programs. Community outreach and preventative health care are important areas of focus that fuel the organization's efforts to screen and educate local residents to improve the overall health and wellness of the community its services. Prevention leads to early detection and the ability to catch disease when treatment will be most reliable and effective. These programs are targeted to positively alter the health of the community by providing education on such topics as adult nutrition, childhood obesity, and behavioral health issues and to build support groups for individuals suffering with chronic diseases such as diabetes, cardiovascular and pulmonary diseases, and cancer. Throughout the year the organization offers free preventive health services to the community such as health screenings, health fairs, immunizations and many other community education programs. Equipping people with quality health information encourages individuals to make appropriate lifestyle changes to benefit their health. Further community outreach is through our Nurse-Family Partnership (NFP) program. The Nurse-Family Partnership is an evidence-based community health program that serves low-income women pregnant with their first child. Each vulnerable new mom is partnered with a registered nurse early in her pregnancy and receives ongoing nurse home visits. It is a life-transforming partnership, for the mom and the child. Nurse-Family Partnership helps families - and the community they live in - become stronger while saving money for state, local and governments.The organization is one of two medical centers to serve as a training site for the Family Health Center's (FHC) family medicine residency program. Physicians trained at FHC provide primary care to low income individuals and families in McLennan County, surrounding counties and other underserved areas including third world countries.During the year, the organization had to shift its focus and efforts to fighting the unexpected COVID-19 pandemic with detailed planning and preparations. From the beginning, teams began securing costly personal protection equipment and finding new innovative ways to adapt. The organization's patient-centric focus motivated it to be one of the first private hospitals (along with other Baylor Scott & White hospitals) to offer online screening for COVID-19, eVisits and drive-thru lab specimen collection sites. This kept patients from crowding emergency departments, helping limit the virus' spread and preserving scarce resources needed to care for those severely impacted by the pandemic. In May 2020, the organization launched Safe Care to create a safe environment for the organization's caregivers, patients and their loved ones, which supplemented previously updated surgery and safety protocols, all designed to limit spread in the community. From the start of the pandemic, the organization along with other Baylor Scott & White affiliates have invested and devoted many resources in developing and expanding its capabilities and infrastructure to care for the community during the pandemic. Part VI, Line 6: The organization is affiliated with Baylor Scott & White Health (BSWH or the System), a faith based nationally acclaimed network of acute care hospitals and related health care entities providing quality patient care, medical education, medical research and other community services to the communities of North and Central Texas. BSWH is the largest not-for-profit health care system in the State of Texas and one of the largest in the United States as measured by total operating revenue of $10.5 Billion and total assets of $15.1 Billion based on the fiscal year ended June 30, 2020. Today, BSWH has over 1,000 patient care sites including 52 hospitals, 562 specialty care clinics, 195 outpatient clinics, 172 primary care clinics, 31 pharmacies, 26 ambulatory surgery centers, and approximately 7,300 active physicians. The System includes a robust spectrum of owned, operated, ventured and affiliated philanthropic foundations, a research institute, physician clinics and networks, acute care hospitals, short-stay hospitals, specialty hospitals, ambulatory surgery centers, free standing emergency medical centers, free standing imaging centers, retail pharmacies, an accountable care organization, a health plan and other health care providers all which fall under the common control of BSW Holdings. Under the guidance of an independent community board, the System follows one single mission, vision and values focusing on quality patient centered care while meeting the demands of health care reform, the changing needs of patients and extraordinary recent advances in clinical care. With a commitment to and a track record of innovation, collaboration, integrity and compassion for the patient, BSWH stands to be one of the nation's exemplary health care organizations.Community benefits are provided through the provision of financial assistance, governmental sponsored programs (such as Medicaid and Medicare), medical research, medical education, community health improvement services, donations to other nonprofit health care providers, and many other community service activities. During the year, the affiliated nonprofit hospitals reported community benefits (as reported to the Texas Department of State Health Services, and in accordance with the State of Texas Statutory methodology) of $768 Million. The System's nonprofit hospitals provided community benefits (as reported on the IRS Form 990, Schedule H) of $421 Million during the tax year. The Texas Annual Statement of Community Benefit Standard includes approximately $262 Million of unreimbursed cost of Medicare that is not included in the IRS Form 990, Schedule H. As part of the System, certain affiliates make grants and/or contributions to other related nonprofit affiliates to help financially support and/or fund worthy community benefits activities. The System has also established a patient transfer system among the affiliated hospitals allowing patients needing a particular level of care to be transferred as needed to a related hospital that can provide that service in an efficient and effective manner. As part of the System, all hospitals and other affiliated health care providers are required to adhere to high standards for medical quality, patient safety and patient satisfaction. These standards are set forth by BSW Holdings, the organization's parent, which helps ensures consistency across the System.Technology is rapidly changing the way consumers and health care providers connect, which has enabled the development of new and innovative solutions that enhance the patient experience and support wellness and quality health care. The System is integrating these new technologies, programs and resources into the health information technology infrastructure through the Consumer Digital Experience. This initiative enhances the way consumers discover, decide and connect with the System; improves wellness and care outcomes through digitization and analytics; and enables support for specific measures for availability, geographic use and capacity needs. The Consumer Digital Experience includes video visits, mobile device apps and patient portals, putting a variety of health and wellness tools into the patient's hands. The growth strategy in this area is to create a virtual health capability where users can book an appointment, be treated on demand through a video or electronic visit, assemble their information and personalized profile, and find out where the nearest urgent walk-in clinic might be. Part VI, Line 7, Reports Filed With States TX 1 American Heart Association 7272 Greenville Ave Dallas TX 752315129 135613797 501(c)(3) 8000 N/A N/A General Support Waco Family Practice Foundation 1600 Providence Dr Waco TX 76707 742446071 501(c)(3) 10000 N/A N/A General Support Hillcrest Family Health Center 301 N Washington Avenue Dallas TX 75246 742730350 501(c)(3) 9945904 N/A N/A General Support Hillcrest Physician Services 301 N Washington Avenue Dallas TX 75246 742967081 501(c)(3) 15152957 N/A N/A General Support McLennan Area Clinical Services 2801 Via Fortuna Ste 500 Austin TX 78746 460884394 501(c)(3) 399000 N/A N/A Indigent Care March of Dimes - Austin 9430 Research Blvd Bldg 2 Ste 250 Austin TX 78759 131846366 501(c)(3) 15000 N/A N/A General Support Mission Waco 1315 N 15th Waco TX 76707 742605621 501(c)(3) 5200 N/A N/A General Support 7 0 Part I, Line 2: Monitoring Grants & Other Assistance: As part of its mission, the organization provides grants and other assistance to related organizations and/or unrelated not-for-profit organizations which are religious, charitable, scientific, or educational in nature, within the meaning of Internal Revenue Code Section 501(c)(3), when the use will further one or more tenets of the organization's charitable mission and one of the following criteria for use of these funds is met: (1) Fulfills a need identified by a community needs assessment conducted by the organization and/or outlined in an implementation strategy, (2) Serves an under-served community or group of people through medical mission work to improve their health status (3) promotes health in the community, (4) supports community buildings activities that protect or improves the community's health or safety and/or (5) provides positive visibility and good community relations with other organization serving the health needs of the community. For related organizations, all grants and other assistance are subject to the policies and procedures set forth by BSWH which ensures all funds are used in accordance with the guidelines set forth above and in accordance with the related organization's exempt purpose. Grants and other assistance provided to unrelated organizations are typically monitored by personal inspection. Examples include providing assistance to entities where the filing organization's employee serves as a Board Member for the recipient organization or through attendance at community events where the filing organization employees work as volunteers or to help coordinate these events. Community Benefit grants and/or contributions provided to unrelated organizations are given as a restricted gift and the receiving organization must return a signed receipt indicating the funds were used for that purpose. X X 1 1 X X X X 0 1 0 0 0 0 0 1 0 Patricia M Currie Director 0 746270 0 772995 0 23583 0 319807 0 21980 0 1884635 0 173232 Glen R Couchman MD Director 0 652781 0 689061 0 120709 0 14000 0 30642 0 1507193 0 0 Glenn A Robinson President/CEO 504926 0 429440 0 22284 0 84109 0 30188 0 1070947 0 91754 0 Michael D Reis MD Director/Vice Chair 0 512849 0 221908 0 11484 0 81939 0 22310 0 850490 0 0 James Morrison MD SVP CMO 412785 0 194717 0 6364 0 67889 0 28076 0 709831 0 0 0 Richard Perkins VP CFO 284080 0 85961 0 2212 0 14000 0 27631 0 413884 0 0 0 John W Speckmiear MD Director 0 317370 0 11333 0 26734 0 30910 0 20602 0 406949 0 16730 Rebecca Hardie VP CNO 251505 0 75394 0 1691 0 13154 0 22617 0 364361 0 0 0 Brad Crye VP Operations 218809 0 64071 0 888 0 11485 0 21910 0 317163 0 0 0 Joni L Watson Director Clinic Operations 36973 112481 0 38092 7528 35973 1991 6016 6977 24297 53469 216859 0 0 Matthew Rohrer VP Clinic Operations 169859 0 51627 0 426 0 8984 0 25915 0 256811 0 0 0 David Gentsch Director Pharmacy 188536 0 43710 0 388 0 9505 0 1945 0 244084 0 0 0 Anna Schlatter VP Patient Care 156381 0 46909 0 281 0 8175 0 24151 0 235897 0 0 0 April D Hayes Director Nursing 161391 0 37418 0 356 0 8166 0 11801 0 219132 0 0 0 Arianne Mccord Director HR Strategic Svcs 137292 0 32965 0 1574 0 7166 0 15360 0 194357 0 0 0 Part I, Line 1a Tax indemnification and gross-up payments-The organization provides tax indemnification where the BSW Holdings' CEO, COO or CFO determines there is justification to reimburse an individual for the tax impact on certain taxable, non-cash benefits provided to them. All tax indemnification payments provided are treated as taxable compensation. Four of the persons listed in the Form 990, Part VII, Section A, received this benefit during the tax year. Discretionary spending account-The organization provides eligible employees certain monthly expense allowances in lieu of reimbursement for actual expenses under the organization's business travel and expense reimbursement policy. This may include providing an auto expense allowance for business mileage for those who travel frequently in their personal vehicle or a cell phone allowance for individuals who are required to use their mobile phone for business purposes. All expense allowances are treated as taxable compensation. Two of the persons listed in the Form 990, Part VII, Section A, received this benefit during the tax year. Part I, Line 3 Process for determining compensation: The organization, a controlled affiliate of BSW Holdings, recognizes that those chosen to lead the organization are vital to its ongoing success and growth. Thus, it must attract, retain and engage the highest quality officers and key employees to lead the organization and help the organization maintain its national reputation for achieving high targets for medical quality, patient safety, and patient satisfaction. A significant portion of the organization's officers and key employees' total compensation is based on significant performance achievements. This strategy places a greater emphasis on the importance of the organization achieving targeted improvements in the areas of people, quality, patient satisfaction and financial stewardship, annually. Total executive compensation is part of an integrated talent management strategy developed by the BSW Holdings Board of Trustees and its Compensation Committee to attract, motivate, and retain the best leadership resources for the organization. Executive compensation is determined pursuant to guidelines outlined in the intermediate sanction rules under IRC Section 4958 including taking steps to meet the rebuttable presumption standard of reasonableness under Treasury Regulation 53.4958-6, as summarized below. When making compensation decisions, the organization compares itself to similarly-sized, and structured businesses including other integrated health care service systems and other similarly-sized organizations, both locally and nationally. Each year the BSW Holdings Board of Trustees and the Compensation Committee, on behalf of the organization through reserved powers held by BSW Holdings, works directly with an independent compensation expert(s) to identify reasonable and competitive market rates as well as provide an annual review of the total compensation of the organization's top management officials and other officers and key employees to ensure total compensation is within a fair market range. The annual review included management reviewing all officers and key employees listed on the Form 990 during the current tax year. Any individual whose direct compensation exceeded the projected compensation from prior year, any new individual whose position has not been reviewed by the Compensation Committee during the prior 2 years, or any individual whose responsibilities or scope of operations expanded during the current year were reviewed by the Compensation Committee during the current tax year. The Compensation Committee is made up of members of the BSW Holdings Board of Trustees, who are independent, community volunteers. Guided by the information provided by the independent compensation expert(s), the Compensation Committee approves the annual process and methodology for setting fair market salary ranges, earned incentives, and/or benefit offerings for the organization's President, other officers and/or key employees to be comparable to similar organizations for similar services and/or positions. Furthermore, the Compensation Committee is charged with the responsibility of reviewing annually the major elements of the executive compensation program to assure designs remain consistent with the business needs, market practices, and compensation philosophy. As part of the decision making process, the Compensation Committee will often meet in executive session to discuss and review recommendations made by the independent compensation expert(s). No officer or key employee whose compensation is being reviewed is present during these discussions. All decisions are properly documented in the minutes of the meetings. Part I, Line 4b In order to recruit and retain key talent, BSW Holdings and certain tax exempt affiliates (BSWH) offers a supplemental non-qualified retirement plan to eligible employees. The plan provides an annual benefit (based on a percentage of compensation) to the employee that is paid to the employee on a future date upon vesting in the plan. The following individual(s) participated in and/or received payments (noted in parenthesis) from BSWH's supplemental non-qualified retirement plan during the tax year: Glen R. Couchman, M.D. ($94,612), Glenn A. Robinson, James Morrison, M.D., John W. Speckmiear, M.D. ($16,730), Michael D. Reis, M.D. and Patricia M. Currie. Part I, Line 7 The organization has adopted and implemented BSW Holdings', the organization's ultimate parent, Annual Incentive Program to provide a market competitive total cash compensation incentive program that is designed to attract and retain key leaders and establish greater individual accountability and alignment to business performance. Payout targets are based upon a percentage of base pay and are developed by independent third party expert(s) using comparable market competitive data within the bounds of reasonableness and that are reviewed and approved by BSW Holdings' governing body. Payout levels are based upon a combination of system, entity, and individual performance using various metrics related to quality, patient satisfaction, employee retention, and financial stewardship. BSW Holdings' governing body may approve modifications to annual incentive awards provided under the program consistent with market comparability data. Form 990, Schedule J, Part III Supplemental Information: Governing Body Compensation The members of the governing body serve on a voluntary basis and receive no cash compensation from the organization for these duties as a member of the governing body. Some, but not all, members may have received modest benefits incident to their service on the board and/or multiple board committees or received compensation as an employee of a related organization. These benefits may include reimbursement for certain reasonable expenses paid on behalf of the member's spouse while accompanying the member on business travel on behalf of the related organization. All such benefits are treated as taxable compensation to the extent required by law and are reported in the Form 990 where applicable. Sarah K Hannah Family member of Glenn A. Robinson, Officer 75512 Employee Compensation 0 Andrea Swanson Family member of Gordon Swanson, Director/Officer 114128 Employee Compensation 0 Form 990, Part VI, Section A, line 2 Business relationship: Gordon L. Swanson and Billy H. Davis, Jr. Form 990, Part VI, Section A, line 6 Members or stockholders: BSW Hillcrest's members are Hillcrest Health Systems Inc. and Scott & White Memorial Hospital, organizations exempt from tax under IRC section 501(c)(3) and public charities under IRC section 509(a)(3) and 509(a)(1) respectively. Form 990, Part VI, Section A, line 7a Election of members of governing body by members, stockholders, or other persons: Both Baylor Scott & White Holdings (BSW Holdings) and Hillcrest Health Systems, Inc. have substantial reserved powers over the organization, including those to elect and remove the governing body of the organization. Both the BSW Holdings and Hillcrest Health Systems Inc. Board of Trustees are comprised of a majority of independent community representatives that provide leadership and governance to their affiliated tax exempt entities, including the filing organization, to ensure it is meeting its charitable purpose. Form 990, Part VI, Section A, line 7b Governing body decisions subject to approval: Both BSW Holdings and Hillcrest Health Systems, Inc. have substantial rights and powers including, without limitation, approval of the organization's certificate of formation and bylaws and amendments thereto, appointment and removal of members of the organization's governing body, approval of dissolutions and mergers, and other similar decisions over the organization. Both the BSW Holdings and Hillcrest Health Systems Inc. Board of Trustees are comprised of a majority of independent community representatives that provide leadership and governance to their affiliated tax exempt entities, including the filing organization, to ensure it is meeting its charitable purpose. Form 990, Part VI, Section B, line 11b Process used to review the Form 990: The Form 990 is prepared and reviewed by the BSWH tax department. During the return preparation process the tax department works with other functional areas including finance, accounting, treasury, legal, human resources, and corporate compliance for advice, information and assistance to prepare a complete and accurate return. Upon completion, the Form 990 is reviewed by the organization's President, financial officer and/or other key officers. A complete final copy of the return is provided to the organization's governing body prior to filing with the IRS. Form 990, Part VI, Section B, line 12c Process used to monitor and enforce compliance with the organization's conflict of interest policy: Persons with an actual or perceived ability to influence the organization have the duty to disclose annually and otherwise promptly as potential conflicts are identified, any familial, professional or financial relationships with entities or individuals that do, or seek to do business with the organization or that compete with the organization. These individuals include the organization's officers, governing body, management, physicians with administrative services agreements, employed physicians, persons who participate in the design, coordination, conduct, or reporting of research on behalf of BSWH, and other key personnel who interact with outside organizations or businesses on behalf of the organization. The BSW Holdings' Board of Trustees Audit and Compliance Committee and the BSW Holdings' Corporate Compliance Committee review all relevant disclosures submitted by these individuals to determine whether a conflict of interest exists and to determine an appropriate resolution, if necessary any individual with a perceived or potential conflict is prohibited from voting or participating in the decision making process regarding such transaction with that individual. Form 990, Part VI, Section B, line 15 Process for determining compensation: The organization, a controlled affiliate of BSW Holdings, recognizes that those chosen to lead the organization are vital to its ongoing success and growth. Thus, it must attract, retain and engage the highest quality officers and key employees to lead the organization and help the organization maintain its national reputation for achieving high targets for medical quality, patient safety, and patient satisfaction. A significant portion of the organization's officers and key employees' total compensation is based on significant performance achievements. This strategy places a greater emphasis on the importance of the organization achieving targeted improvements in the areas of people, quality, patient satisfaction and financial stewardship, annually. Total executive compensation is part of an integrated talent management strategy developed by the BSW Holdings Board of Trustees and its Compensation Committee to attract, motivate, and retain the best leadership resources for the organization. Executive compensation is determined pursuant to guidelines outlined in the intermediate sanction rules under IRC Section 4958 including taking steps to meet the rebuttable presumption standard of reasonableness under Treasury Regulation 53.4958-6, as summarized below. When making compensation decisions, the organization compares itself to similarly-sized, and structured businesses including other integrated health care service systems and other similarly-sized organizations, both locally and nationally. Each year the BSW Holdings Board of Trustees and the Compensation Committee, on behalf of the organization through reserved powers held by BSW Holdings, works directly with an independent compensation expert(s) to identify reasonable and competitive market rates as well as provide an annual review of the total compensation of the organization's top management officials and other officers and key employees to ensure total compensation is within a fair market range. The annual review included management reviewing all officers and key employees listed on the Form 990 during the current tax year. Any individual whose direct compensation exceeded the projected compensation from prior year, any new individual whose position has not been reviewed by the Compensation Committee during the prior 2 years, or any individual whose responsibilities or scope of operations expanded during the current year were reviewed by the Compensation Committee during the current tax year. The Compensation Committee is made up of members of the BSW Holdings Board of Trustees, who are independent, community volunteers. Guided by the information provided by the independent compensation expert(s), the Compensation Committee approves the annual process and methodology for setting fair market salary ranges, earned incentives, and/or benefit offerings for the organization's President, other officers and/or key employees to be comparable to similar organizations for similar services and/or positions. Furthermore, the Compensation Committee is charged with the responsibility of reviewing annually the major elements of the executive compensation program to assure designs remain consistent with the business needs, market practices, and compensation philosophy. As part of the decision making process, the Compensation Committee will often meet in executive session to discuss and review recommendations made by the independent compensation expert(s). No officer or key employee whose compensation is being reviewed is present during these discussions. All decisions are properly documented in the minutes of the meetings. Form 990, Part VI, Section C, line 19 Process for making governing documents, conflict of interest policy, & financial statements available to the public: The organization's certificate of formation and amendments thereto are made available to the public by the filing of those documents with the Texas Secretary of State. Also, the organization is included within the combined financial statements of BSW Holdings that are made available to the public by the posting of those documents through DAC Bond and are attached to this return. The organization's other governing documents and conflicts of interest policy are not made available to the public. Form 990, Part VII, Hours Devoted to Related Organizations: During the year, employees may transfer to or from a related organization. In those cases, 40 hours per week is reflected at both the reporting organization and related organizations to reflect the average of hours they devoted to each respective organization before and after the transfer. Form 990, Part IX, line 11g Other Purchased Services: Program service expenses 22,898,743. Management and general expenses 2,894,986. Fundraising expenses 0. Total expenses 25,793,729. Contract Labor: Program service expenses 169,367. Management and general expenses 0. Fundraising expenses 0. Total expenses 169,367. Laboratory: Program service expenses 1,342,941. Management and general expenses 0. Fundraising expenses 0. Total expenses 1,342,941. Repairs & Maintenance: Program service expenses 705,269. Management and general expenses 3,557. Fundraising expenses 0. Total expenses 708,826. Patient Care: Program service expenses 500. Management and general expenses 0. Fundraising expenses 0. Total expenses 500. Professional Fees: Program service expenses 10,389,477. Management and general expenses 4,742,281. Fundraising expenses 0. Total expenses 15,131,758. Corporate Overhead: Program service expenses 0. Management and general expenses 36,603,366. Fundraising expenses 0. Total expenses 36,603,366. Form 990, Part XI, line 9: Self Insurance Liability Reserve -1,817,903. Change in Net Assets of Related Foundations -519,034. Cumulative Effect Change in Accounting Principle 101,401. Supplemental Information: IRC Section 6038 Statement: Disclosure Statement Related to Forms 5471, Information Return of U.S. Persons with Respect to Certain Foreign Corporations, Filed on Behalf of the Taxpayer: In accordance with IRC Section 6038 and the constructive ownership rules of IRC Sections 958(a) and (b), the taxpayer is required to file Forms 5471, Information Return of U.S. Persons with Respect to Certain Foreign Corporations, with respect to certain controlled foreign corporations (CFCs) including Baylor Scott & White Assurance SPC. These filing requirements are or will be satisfied through the filing of Forms 5471 for this CFC by the U.S. taxpayer identified below who has the same filing requirement. Taxpayer Name: Baylor University Medical Center Taxpayer Address: 301 N. Washington Avenue, Dallas, TX 75246 Taxpayer Identification Number of U.S. tax return with which the Forms 5471 were or will be filed: 75-1837454 IRS Service Center where U.S. tax return was or will be filed: E-filed All Saints Health Foundation 301 N Washington Avenue Dallas TX 75246 751947007 Fundraising TX 501(c)(3) Line 7 Baylor All Saints Medical Center 1 Baylor All Saints Medical Center 301 N Washington Avenue Dallas TX 75246 751008430 Hospital TX 501(c)(3) Line 3 Baylor Health Care System 1 Baylor Health Care System 301 N Washington Avenue Dallas TX 75246 751812652 Management Services TX 501(c)(3) Line 12b, II Baylor Scott & White Holdings 1 Baylor Health Care System Employee Benefit Trust 301 N Washington Avenue Dallas TX 75246 751848557 VEBA TX 501(c)(9) Baylor Health Care System 1 Baylor Health Care System Foundation 301 N Washington Avenue Dallas TX 75246 751606705 Fundraising TX 501(c)(3) Line 7 Baylor Health Care System 1 Baylor Health Services 301 N Washington Avenue Dallas TX 75246 751917311 Inactive TX 501(c)(3) Line 3 Baylor Health Care System 1 Baylor Institute for Rehabilitation at Gaston Episcopal Hosp 301 N Washington Avenue Dallas TX 75246 751037226 Rehabilitation Hospital TX 501(c)(3) Line 3 Baylor Health Care System 1 Baylor Medical Center at Carrollton 301 N Washington Avenue Dallas TX 75246 454510252 Hospital TX 501(c)(3) Line 3 Baylor Health Care System 1 Baylor Medical Center at Irving 301 N Washington Avenue Dallas TX 75246 752586857 Hospital TX 501(c)(3) Line 3 Baylor Health Care System 1 Baylor Medical Center at Waxahachie 301 N Washington Avenue Dallas TX 75246 751844139 Hospital TX 501(c)(3) Line 3 Baylor Health Care System 1 Baylor Medical Centers at Garland and McKinney 301 N Washington Avenue Dallas TX 75246 751037591 Hospital TX 501(c)(3) Line 3 Baylor Health Care System 1 Baylor Regional Medical Center at Grapevine 301 N Washington Avenue Dallas TX 75246 751777119 Hospital TX 501(c)(3) Line 3 Baylor Health Care System 1 Baylor Regional Medical Center at Plano 301 N Washington Avenue Dallas TX 75246 820551704 Hospital TX 501(c)(3) Line 3 Baylor Health Care System 1 Baylor Research Institute 301 N Washington Avenue Dallas TX 75246 751921898 Research TX 501(c)(3) Line 4 Baylor Health Care System 1 Baylor Scott & White Health 301 N Washington Avenue Dallas TX 75246 463131350 Management Services TX 501(c)(3) Line 12b, II Baylor Scott & White Holdings 1 Baylor Scott & White Holdings 301 N Washington Avenue Dallas TX 75246 463130985 Parent TX 501(c)(3) Line 12b, II N/A 0 Baylor University Medical Center 301 N Washington Avenue Dallas TX 75246 751837454 Hospital TX 501(c)(3) Line 3 Baylor Health Care System 1 HealthTexas Provider Network 301 N Washington Avenue Dallas TX 75246 752536818 Physician Services TX 501(c)(3) Line 3 Baylor Health Care System 1 Hillcrest Family Health Center 301 N Washington Avenue Dallas TX 75246 742730350 Physician Services TX 501(c)(3) Line 12a, I Hillcrest Baptist Medical Center 1 Hillcrest Health Foundation 301 N Washington Avenue Dallas TX 75246 311804708 Fundraising TX 501(c)(3) Line 12a, I Hillcrest Health System 0 Hillcrest Health System 301 N Washington Avenue Dallas TX 75246 742924512 Operational Support TX 501(c)(3) Line 12b, II 0 Hillcrest Physician Services 301 N Washington Avenue Dallas TX 75246 742967081 Physician Services TX 501(c)(3) Line 12a, I Hillcrest Baptist Medical Center 1 Irving Healthcare Foundation 301 N Washington Avenue Dallas TX 75246 751570933 Fundraising TX 501(c)(3) Line 7 Baylor Medical Center at Irving 1 Scott & White Clinic 301 N Washington Avenue Dallas TX 75246 742958277 Physician Services TX 501(c)(3) Line 10 Scott & White Healthcare 1 Scott & White Continuing Care Hospital 301 N Washington Avenue Dallas TX 75246 202850920 Long Term Acute Care Hospital TX 501(c)(3) Line 3 Scott & White Healthcare 1 Scott & White EMS Inc 301 N Washington Avenue Dallas TX 75246 753242749 Emergency Transport TX 501(c)(3) Line 10 Scott & White Memorial Hospital 1 Scott & White Foundation-Brenham 301 N Washington Avenue Dallas TX 75246 742460815 Fundraising TX 501(c)(3) Line 7 Scott & White Hospital-Brenham 1 Scott and White Health Plan 301 N Washington Avenue Dallas TX 75246 742052197 HMO TX 501(c)(4) Baylor Scott & White Holdings 1 Scott & White Healthcare 301 N Washington Avenue Dallas TX 75246 264532547 Management Services TX 501(c)(3) Line 12b, II Baylor Scott & White Holdings 1 Scott & White Healthcare Foundation 301 N Washington Avenue Dallas TX 75246 273513154 Fundraising TX 501(c)(3) Line 7 Scott & White Healthcare 1 Scott & White Hospital-Brenham 301 N Washington Avenue Dallas TX 75246 742519752 Hospital TX 501(c)(3) Line 3 Scott & White Healthcare 1 Scott & White Hospital-College Station 301 N Washington Avenue Dallas TX 75246 274434451 Hospital TX 501(c)(3) Line 3 Scott & White Healthcare 1 Scott & White Hospital-Llano 301 N Washington Avenue Dallas TX 75246 273026151 Hospital TX 501(c)(3) Line 3 Scott & White Healthcare 1 Scott & White Hospital-Marble Falls 301 N Washington Avenue Dallas TX 75246 464007700 Hospital TX 501(c)(3) Line 3 Scott & White Healthcare 1 Scott & White Hospital-Round Rock 301 N Washington Avenue Dallas TX 75246 203749695 Hospital TX 501(c)(3) Line 3 Scott & White Healthcare 1 Scott & White Hospital-Taylor 301 N Washington Avenue Dallas TX 75246 741595711 Hospital TX 501(c)(3) Line 3 Scott & White Healthcare 1 Scott & White Memorial Hospital 301 N Washington Avenue Dallas TX 75246 741166904 Hospital TX 501(c)(3) Line 3 Scott & White Healthcare 1 Southern Sector Health Initiative 301 N Washington Avenue Dallas TX 75246 263087442 Diabetes Health & Wellness Center TX 501(c)(3) Line 12a, I Baylor University Medical Center 1 Baylor Scott & White Medical Centers-Capitol Area 301 N Washington Avenue Dallas TX 75246 813040663 Hospital TX 501(c)(3) Line 3 Baylor Scott & White Health 1 Century Integrated Partners Inc 301 N Washington Avenue Dallas TX 75246 810872075 Physician Services/Emergency Care TX 501(c)(3) Line 3 Baylor University Medical Center 1 Baylor Scott & White Medical Center - Centennial 301 N Washington Avenue Dallas TX 75246 824052186 Hospital TX 501(c)(3) Line 3 Baylor Health Care System 1 Scott & White Care Plans 301 N Washington Avenue Dallas TX 75246 822794853 HMO TX 501(c)(4) Scott and White Health Plan 1 Lake Pointe Operating Company LLC 301 N Washington Avenue Dallas TX 75246 260194016 Hospital TX 501(c)(3) Line 3 Baylor Health Care System 1 Arlington Ortho & Spine Hospital LLC 14201 Dallas Parkway Dallas TX 75254 261578178 Hospital TX N/A Baylor Affiliated Services LLC 301 N Washington Avenue Dallas TX 75246 260614730 Benefit Plans TX N/A Baylor Heart and Vascular Center LLP 301 N Washington Avenue Dallas TX 75246 752834135 Specialty Hospital TX N/A Baylor Surgicare at Ennis LLC 14201 Dallas Parkway Dallas TX 75254 274202856 Ambulatory Surgery Center TX N/A Baylor Surgicare at Granbury LLC 14201 Dallas Parkway Dallas TX 75254 263896477 Ambulatory Surgery Center TX N/A Baylor Surgicare at Mansfield LLC 14201 Dallas Parkway Dallas TX 75254 271835675 Ambulatory Surgery Center TX N/A Baylor Surgicare at Plano Parkway LLC 14201 Dallas Parkway Dallas TX 75254 274282604 Ambulatory Surgery Center TX N/A Baylor Surgicare at Plano LLC 14201 Dallas Parkway Dallas TX 75254 260308454 Ambulatory Surgery Center TX N/A Bellaire Outpatient Surgery Center LLP 14201 Dallas Parkway Dallas TX 75254 562297308 Ambulatory Surgery Center TX N/A BIR JV LLP 4714 Gettysburg Rd Mechanicsburg PA 17055 274586141 Rehabilitation Hospitals TX N/A BTDI JV LLP 1431 Perrone Way Franklin TN 37069 462908086 Outpatient Imaging Centers TX N/A Dallas Surgical Partners LLC 14201 Dallas Parkway Dallas TX 75254 722183815 Ambulatory Surgery Center TX N/A Denton Surgicare Partners Ltd 14201 Dallas Parkway Dallas TX 75254 752708579 Ambulatory Surgery Center TX N/A Desoto Surgicare Partners Ltd 14201 Dallas Parkway Dallas TX 75254 752592508 Ambulatory Surgery Center TX N/A EBD JV LLP 8686 New Trails Dr Suite 100 The Woodlands TX 77381 455434614 Free Standing Emergency Hospitals TX N/A Frisco Medical Center LLP 14201 Dallas Parkway Dallas TX 75254 752865177 Hospital TX N/A Ft Worth Surgicare Partners Ltd 14201 Dallas Parkway Dallas TX 75254 752658178 Hospital TX N/A Garland Surgicare Partners Ltd 14201 Dallas Parkway Dallas TX 75254 752764855 Ambulatory Surgery Center TX N/A Grapevine Surgicare Partners Ltd 14201 Dallas Parkway Dallas TX 75254 752854711 Ambulatory Surgery Center TX N/A HealthTexas Provider Network-Gastro Serv LLP 301 N Washington Avenue Dallas TX 75246 731697736 Ambulatory Surgery Center TX N/A Heritage Park Surgical Hospital LLC 14201 Dallas Parkway Dallas TX 75254 611762781 Hospital TX N/A Irving Coppell Surgical Hospital LLP 14201 Dallas Parkway Dallas TX 75254 542086863 Hospital TX N/A Lewisville Surgicare Partners Ltd 14201 Dallas Parkway Dallas TX 75254 752862263 Ambulatory Surgery Center TX N/A Lone Star Endoscopy Center LLC 14201 Dallas Parkway Dallas TX 75254 273635726 Ambulatory Surgery Center TX N/A MEDCO Construction LLC 301 N Washington Avenue Dallas TX 75246 205965871 Construction TX N/A Metrocrest Surgery Center LP 14201 Dallas Parkway Dallas TX 75254 030380493 Ambulatory Surgery Center TX N/A Metroplex Surgicare Partners Ltd 14201 Dallas Parkway Dallas TX 75254 752567179 Ambulatory Surgery Center TX N/A MSH Partners LLC 14201 Dallas Parkway Dallas TX 75254 752829613 Hospital TX N/A North Central Surgical Center LLP 14201 Dallas Parkway Dallas TX 75254 201508140 Hospital TX N/A North Garland Surgery Center LLP 14201 Dallas Parkway Dallas TX 75254 562399993 Ambulatory Surgery Center TX N/A Park Cities Surgery Center LLC 14201 Dallas Parkway Dallas TX 75254 562357079 Ambulatory Surgery Center TX N/A Physicians Surgical Center of Ft Worth LLP 14201 Dallas Parkway Dallas TX 75254 208303422 Ambulatory Surgery Center TX N/A Rockwall Ambulatory Surgery Center LLP 14201 Dallas Parkway Dallas TX 75254 205506447 Ambulatory Surgery Center TX N/A Specialty Surgery Center of Fort Worth LP 14201 Dallas Parkway Dallas TX 75254 201942281 Inactive TX N/A Surgery Center of Richardson Phys Pship LP 14201 Dallas Parkway Dallas TX 75254 200606781 Inactive TX N/A Texas Endoscopy Centers LLC 14201 Dallas Parkway Dallas TX 75254 470985876 Ambulatory Surgery Center TX N/A Texas Health Ventures Group LLC 14201 Dallas Parkway Dallas TX 75254 752696845 Holds interests in ASCs/ Short Stay Hospitals TX N/A Texas Heart Hospital of the Southwest LLP 301 N Washington Avenue Dallas TX 75246 412101361 Specialty Hospital TX N/A THVG Bariatric LLC 14201 Dallas Parkway Dallas TX 75254 383894636 Holds interests in Ambulatory Surgery Centers TX N/A Trophy Club Medical Center LP 14201 Dallas Parkway Dallas TX 75254 481260190 Hospital TX N/A Tuscan Surgery Center at Las Colinas LLC 14201 Dallas Parkway Dallas TX 75254 273578014 Ambulatory Surgery Center TX N/A University Surgical Partners of Dallas LLP 14201 Dallas Parkway Dallas TX 75254 550823809 Ambulatory Surgery Center TX N/A Baylor Surgicare at North Dallas LLC 14201 Dallas Parkway Dallas TX 75254 752900902 Ambulatory Surgery Center TX N/A BT East Dallas JV LLP 301 N Washington Avenue Dallas TX 75246 475119983 Former Hospital/Wind Down TX N/A BT Garland JV LLP 301 N Washington Avenue Dallas TX 75246 475009342 Former Hospital/Wind Down TX N/A Blue Stone JV LLP 1431 Perrone Way Franklin TN 37069 474798129 Outpatient Imaging Centers TX N/A Baylor Surgicare at Baylor Plano LLC 14201 Dallas Parkway Dallas TX 75254 813127185 Ambulatory Surgery Center TX N/A Blue Stone Frisco JV LLP 1431 Perrone Way Franklin TN 37069 812480586 Outpatient Imaging Centers TX N/A Centennial ASC LLC 14201 Dallas Parkway Dallas TX 75254 352199232 Ambulatory Surgery Center TX N/A Texas Regional Medical Center LLC 14201 Dallas Parkway Dallas TX 75254 510570864 Hospital TX N/A Texas Spine and Joint Hospital LLC 14201 Dallas Parkway Dallas TX 75254 752951355 Hospital TX N/A Baylor Surgicare at Blue Star LLC 14201 Dallas Parkway Dallas TX 75254 814638201 Ambulatory Surgery Center TX N/A Baylor All Saints Med Ctr at Ft Worth Condo Owners Assoc Inc 301 N Washington Avenue Dallas TX 75246 261661900 Condo Association TX N/A C 1 Baylor Health Enterprises LP 301 N Washington Avenue Dallas TX 75246 751997378 Fitness Center/Pharmacy TX N/A C 1 Baylor Health Network Inc 301 N Washington Avenue Dallas TX 75246 752463251 Health Care Consulting Services TX N/A C 1 Baylor Med Ctr at Grapevine Condo Owners Association Inc 301 N Washington Avenue Dallas TX 75246 752747555 Condo Association TX N/A C 1 Baylor Quality Health Care Alliance LLC 301 N Washington Avenue Dallas TX 75246 454015863 ACO TX N/A C 4999442 2488214 0.08330 1 BMP Incorporated 301 N Washington Avenue Dallas TX 75246 751436779 Post Office TX N/A C 1 BUMCRoberts Condominium Owners Association Inc 301 N Washington Avenue Dallas TX 75246 752897806 Condo Association TX N/A C 1 Charitable Remainder Trust (51) Investment TX N/A T 0 Charitable Lead Trust (3) Investment TX N/A T 0 Hillcrest Health Holdings Inc 301 N Washington Avenue Dallas TX 75246 742793367 Inactive TX Hillcrest Baptist Medical Center C 1.00000 1 Insurance Company of Scott & White 301 N Washington Avenue Dallas TX 75246 743092083 Insurance TX N/A C 1 Baylor Scott & White Assurance SPC 23 Lime Tree Bay Grand Cayman CJ 980589956 Investment CJ N/A C 1 SHA LLC 301 N Washington Avenue Dallas TX 75246 752569094 HMO TX N/A C 1 Southwest Life & Health Insurance Company 301 N Washington Avenue Dallas TX 75246 751085046 Insurance TX N/A C 1 APN 14201 Dallas Parkway Dallas TX 75254 320416211 Inactive TX N/A C 1 Spine & Joint Physician Associates 14201 Dallas Parkway Dallas TX 75254 473135825 Inactive TX N/A C 1 1 1 1 0 0 1 0 0 0 0 0 1 1 0 0 1 1 1 0 Hillcrest Family Health Center A 1551855 GAAP Hillcrest Physician Services A 19185 GAAP Baylor Health Enterprises LP A 60951 GAAP Scott & White Memorial 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