2019-08-14T13:58:52-05:00 2018-09-30 346565596 ERNST & YOUNG US LLP 155 N WACKER DR CHICAGO IL 60606 990 2017-10-01 371110690 MEMORIAL HEALTH SYSTEM MEMO 2177883198 701 NORTH FIRST STREET SPRINGFIELD IL 627810001 KATHRYN J KEIM SR VICE PRESIDENT & CFO 2177883830 2019-08-14 1 JESSICA A WAGENER P01622613 3128792000 170.27.135.13 2019-08-14 13:58:41 CD P 44E302E50A64F3E11F2F8B68A2E404E980E67C35 44E302E50A64F3E11F2F8B68A2E404E980E67C35 2017 2019-02-21 02:37:17Z EDGAR J CURTIS 701 NORTH FIRST STREET SPRINGFIELD IL 627810001 364786034 0 5670 X WWW.MHSIL.COM X 1981 IL TO IMPROVE THE HEALTH OF THE PEOPLE AND COMMUNITIES WE SERVE. 17 12 367 16 270109 0 0 0 68040351 68637006 2617926 5495443 71183 822792 70729460 74955241 645549 779888 0 0 38900823 35765855 0 0 0 32675633 34169705 72222005 70715448 -1492545 4239793 579077720 529554123 461289839 405770758 117787881 123783365 X TO IMPROVE THE HEALTH OF THE PEOPLE AND COMMUNITIES WE SERVE. 0 0 31597751 1594968 INFORMATION TECHNOLOGYMEMORIAL HEALTH SYSTEM (MHS) CONTINUES TO IMPLEMENT LEADING EDGE TECHNOLOGY SOLUTIONS TO AUGMENT PATIENT SAFETY, QUALITY AND CLINICAL EFFECTIVENESS AND TO IMPROVE MHS'S BUSINESS PROCESSES. MHS'S STAFF OF EXPERIENCED INFORMATION TECHNOLOGY PROFESSIONALS IS ON THE CUTTING EDGE OF MEDICAL AND BUSINESS TECHNOLOGY. THEY SUPPORT A VAST ARRAY OF PATIENT CARE TECHNOLOGY AND BUSINESS APPLICATIONS. DURING FY2018, SIGNIFICANT INFORMATION TECHNOLOGY PROJECTS INCLUDED: ENHANCED INTEROPERABILITY THROUGH PATIENT INFORMATION EXCHANGE WITH OUR 2 LARGEST PARTNERED PHYSICIAN GROUPS FOR SEAMLESS FLOW OF PATIENT INFORMATION TO ADVANCE CARE AND IMPROVE EFFICIENCY; IMPLEMENTED IMPROVED DISASTER RECOVERY FOR OUR AFFILIATE LOCATIONS IN JACKSONVILLE, LINCOLN, AND TAYLORVILLE, ILLINOIS; INTRODUCED THE MEMORIAL APP, A CUSTOM-BUILT PATIENT APPLICATION THAT PROVIDES A WIDE ARRAY OF SELF-SERVICE OPTIONS FOR OUR PATIENTS IN THE AMBULATORY SETTING; EXPANDED UPON OUR USE OF CLOUD TECHNOLOGY TO REDUCE COSTS AND OPTIMIZE FTE ALLOCATION; AND INCREASED OUR NETWORK BANDWIDTH TO OUR AFFILIATE SITES TO PROVIDE BETTER RESPONSE TIME AND ACCOMMODATE FUTURE GROWTH. 9960080 7153579 BUILDING AND FACILITY EXPANSION AND IMPROVEMENTSMHS'S MISSION IS TO IMPROVE THE HEALTH OF THE PEOPLE AND COMMUNITIES WE SERVE. SAFE, FUNCTIONAL FACILITIES ARE THE FOUNDATION OF THE HEALTHCARE SERVICES WE PROVIDE. CLINICAL PROJECTS THAT BEGAN IN FY 2018:-LOWER LEVEL C BUILDING PHARMACY - CREATE NEW CLEAN ROOM WORKPLACE TO COMPLY WITH NEW REGULATORY STANDARDS AND ADDED NEW MANUFACTURING SPACE WITH NEW BOX PICKER AND PILL PICKER ROBOTS.-NEW CATH LABS AND INTERVENTIONAL RADIOLOGY LAB - UPGRADE EQUIPMENT FOR TWO CATH LABS AND ONE IR LAB.-BAYLIS 4TH FLOOR RENOVATION - RENOVATIONS FOR MEMORIAL MEDICAL CENTER (MMC) VASCULAR SERVICES AND SOUTHERN ILLINOIS UNIVERSITY VASCULAR CLINIC.OTHER PROJECTS COMPLETED FOR THE MEDICAL CENTER INCLUDE:-FLOOR 2E ONCOLOGY - RENOVATION OF EXISTING ONCOLOGY UNIT TO INCLUDE LARGER PATIENT ROOMS .-BUILDING D WINDOW REPLACEMENT - REPLACEMENT OF WINDOWS WITH IMPROVED THERMAL BREAK.-FLOOR 4C INPATIENT (IP) RENOVATIONS - UPGRADED SPACE FOR IP PHYSICAL THERAPY/OCCUPATIONAL THERAPY SERVICES.-OPERATING ROOMS (OR) 2, 4, 18 RENOVATIONS - FINISH UPGRADES (ALL ORS); NEW LIGHTS (OR 2) AND CLEANSWEEP WITH INTEGRATION SYSTEM (OR 18).-COMPUTERIZED TOMOGRAPHY (CT) REPLACEMENT ROOM - MECHANICAL UPGRADES FOR NEW CT SCANNER. 5471914 56359655 SENIOR LEADERSHIPGUIDED BY THE VALUES OF MHS, SENIOR LEADERSHIP IS RESPONSIBLE FOR STRATEGIC PLANNING, PRIORITIZING AMONG COMPETING ISSUES AND ENGAGING IN DIALOGUE AND DECISION-MAKING THAT WILL ENABLE MHS TO ACHIEVE ITS MISSION (TO IMPROVE THE HEALTH OF THE PEOPLE AND COMMUNITIES WE SERVE), ITS VISION (TO BE A NATIONAL LEADER FOR EXCELLENCE IN PATIENT CARE) AND ITS STRATEGIC GOALS (TO ACHIEVE GREAT PATIENT OUTCOMES, BE A GREAT PLACE TO WORK, BE A GREAT PARTNER FOR PHYSICIANS, PROVIDE A GREAT REGIONAL PRESENCE AND DEMONSTRATE GREAT FINANCIAL STEWARDSHIP). IN FY18, MHS SENIOR LEADERSHIP REVIEWED AND CONFIRMED THE ORGANIZATION'S STRATEGIC PLAN, 5 YEAR GOALS AND MEASURES OF SUCCESS TO REFLECT EMERGING PRIORITIES RELATED TO HEALTH REFORM, QUALITY IMPROVEMENT, POPULATION HEALTH, CARE COORDINATION AND THE RESULTS OF OUR COMPREHENSIVE COMMUNITY HEALTH NEEDS ASSESSMENT. IN ADDITION, THE LEADERSHIP TEAM EXECUTED THE HEALTH SYSTEM STRATEGIC AND FISCAL YEAR ACTION PLANS AND REPORTED RESULTS TO ITS BOARD. IN 2018 MMC, THE HEALTH SYSTEM'S FLAGSHIP HOSPITAL, RECEIVED THE 2018 AMERICAN HOSPITAL ASSOCIATION'S NOVA AWARD, ALONG WITH HSHS ST. JOHN'S HOSPITAL IN RECOGNITION OF THEIR WORK WITH SIU MEDICINE ON THE ENOS PARK ACCESS TO CARE COLLABORATIVE. THE NOVA AWARD RECOGNIZES HOSPITALS THAT COLLABORATE WITH OTHER COMMUNITY ORGANIZATIONS TO IMPROVE COMMUNITY HEALTH STATUS BY LOOKING BEYOND PHYSICAL AILMENTS TO ADDRESS ECONOMIC AND SOCIAL BARRIERS TO CARE. THE ACCESS TO CARE PROGRAM IS A RESULT OF THE JOINT COMMUNITY HEALTH NEEDS ASSESSMENT CONDUCTED BY MEMORIAL AND ST. JOHN'S HOSPITAL IN 2015. THE PROGRAM PLACED COMMUNITY HEALTH WORKERS WITHIN A NEIGHBORHOOD WITH SIGNIFICANT RISK FACTORS FOR SOCIAL DETERMINANTS OF HEALTH. DURING ITS FIRST THREE YEARS THE PROGRAM HAS ENROLLED 422 CLIENTS, INCREASED ACCESS TO PHYSICIANS, MENTAL HEALTH CARE, AND DENTAL CARE. UNNECESSARY USE OF THE EMERGENCY DEPARTMENT DECREASED. ADDITIONALLY, THE PROGRAM HAS INCREASED ACCESS TO FOOD AND NUTRITION, EMPLOYMENT, IMPROVED HOUSING, AND TRANSPORTATION. THE NEIGHBORHOOD HAS EXPERIENCED DECREASES IN CRIME, HOMELESSNESS AND PAROLEE RECIDIVISM. TO FURTHER ACCELERATE ADVANCEMENTS IN QUALITY, PATIENT SAFETY AND CLINICAL INNOVATION IN FY18, MHS AND THE MIDWEST HEALTH QUALITY ALLIANCE (MHQA) HOSTED ITS FOURTH ANNUAL FUNDAMENTALLY HUMAN PATIENT SAFETY AND SIMULATION SYMPOSIUM AT THE MEMORIAL CENTER FOR LEARNING AND INNOVATION. THE EVENT FOCUSED ON CURRENT WORK IN DIAGNOSTIC ERROR AND THE BURDEN OF HARM, WITH A SPECIFIC FOCUS ON THE COMMON CAUSES AND TARGETS FOR ERROR REDUCTIONS, THE POTENTIAL FOR SYSTEMS-BASED SOLUTIONS THAT CAPITALIZE ON TEAMWORK; TRAINING, TECHNOLOGY AND TUNING TO HELP PREVENT DIAGNOSTIC ERRORS. ADDITIONALLY, THERE WAS EXTENSIVE LEARNING AROUND IMPLEMENTING ENHANCED RECOVERY AFTER SURGERY PROTOCOLS, WHICH INCORPORATE PRE-SURGERY HYDRATION AND CARB LOADING; APPROPRIATE PRE-OP PATIENT EDUCATION ON EXPECTATIONS FOR PAIN AND DISCOMFORT; AND REDUCTION OF OPIOIDS.THE LEAN SIX SIGMA (LSS) PROCESS IMPROVEMENT PROGRAM GREW THIS YEAR SURPASSING 1/3 OF THE TOTAL STAFF CERTIFIED AS BLACK, GREEN AND WHITE BELTS, 25% GROWTH IN THE NUMBER LSS PROJECTS COMPLETED AND AN AVERAGE OF 35% IMPROVEMENT IN OUTCOMES. IN ADDITION TO IMPROVEMENTS IN QUALITY AND PATIENT SAFETY, THESE LSS PROJECTS REDUCED EXPENSES RELATED TO "REWORK AND "WASTE" BY $10.6 MILLION.IN THE AREA OF LEADERSHIP DEVELOPMENT AND LEARNING, MHS HAS WAS RECOGNIZED BY THE NATIONAL CENTER FOR HEALTHCARE LEADERSHIP (NCHL) AS ONE OF NATION'S TOP 10 BEST ORGANIZATIONS FOR LEADERSHIP DEVELOPMENT. THE BOLD AWARD RECOGNIZES HEALTH SYSTEMS THAT ARE LEADING THE FIELD IN PREPARING LEADERS FOR BETTER HEALTH OUTCOMES FOR ALL. THANKS TO THE GENEROUS SPONSORSHIP OF CIELO HEALTHCARE, HEALTH SYSTEMS WERE ABLE TO PARTICIPATE IN THE PROGRAM THIS YEAR AT NO COST. BOLD AWARDEES SCORED HIGHLY ON A COMPREHENSIVE SURVEY OF EVIDENCE-BASED LEADERSHIP DEVELOPMENT PRACTICES. 'TOP RANKING' AWARDEES RECOGNIZES HEALTH SYSTEMS THAT ARE LEADING THE FIELD IN PREPARING LEADERS FOR BETTER HEALTH OUTCOMES FOR ALL. BOLD AWARDEES SCORED HIGHLY ON A COMPREHENSIVE SURVEY OF EVIDENCE-BASED LEADERSHIP DEVELOPMENT PRACTICES. 'TOP RANKING' AWARDEES WERE THE ORGANIZATIONS SCORING HIGHEST OVERALL; 'PROGRAM OF DISTINCTION' AWARDEES RECOGNIZE ADDITIONAL HEALTH SYSTEMS FOR SCORING AMONG THE HIGHEST IN ONE OR MORE SURVEY DIMENSIONS. DURING FY2018, MHS'S FOUR HOSPITALS COMPLETED THE THIRD YEAR OF THEIR COMMUNITY HEALTH NEEDS ASSESSMENT IMPLEMENTATION STRATEGIES TO ADDRESS PRIORITIES IDENTIFIED IN EACH HOSPITAL'S 2015 NEEDS ASSESSMENTS. ALL FOUR HOSPITALS HAD SELECTED MENTAL HEALTH AND OBESITY AS FINAL PRIORITIES. TWO SYSTEM-WIDE INITIATIVES TOOK PLACE TO ADDRESS THESE ISSUES. MENTAL HEALTH FIRST AID WAS IMPLEMENTED THROUGH ALL FOUR HOSPITALS IN THE COMMUNITIES THEY SERVE. MEMORIAL COVERED COSTS FOR TRAINING 29 CERTIFIED TRAINERS. IN FY17 AND FY18, THESE TRAINERS REACHED A TOTAL OF 1,438 COMMUNITY MEMBERS WITH EDUCATION TO IMPROVE MENTAL HEALTH LITERACY, EARLY IDENTIFICATION OF MENTAL HEALTH ISSUES, PEER INTERVENTION, AND REFERRAL OF COMMUNITY MEMBERS TO AVAILABLE RESOURCES. TO ADDRESS THE PRIORITY OF OBESITY, THE MEMORIAL WEIGHT LOSS AND WELLNESS CENTER EXPANDED ITS SERVICE OUTREACH. THIS PROGRAM PROVIDES A COMPREHENSIVE, MULTIDISCIPLINARY APPROACH TO SUPPORT INDIVIDUALS ON A PATH OF WELLNESS. THE CENTER OFFERS SURGICAL AND MEDICAL (NON-SURGICAL) WEIGHT LOSS SERVICES, DIABETES EDUCATION, THE CENTER FOR HEALTHY FAMILIES, SURGICAL OPTIMIZATION AND OUTPATIENT NUTRITION THERAPY TO INDIVIDUALS OF ALL AGES. IN FY18, THE CENTER HELD AN AVERAGE CENSUS OF 599 MEDICAL WEIGHT LOSS PATIENTS (NON-SURGICAL), COMPLETED 301 BARIATRIC SURGERIES, PROVIDED DIABETES EDUCATION TO 271 PATIENTS, AND PROVIDED FAMILY-BASED WELLNESS SERVICES TO 37 KIDS, TEENS AND THEIR FAMILIES. SERVICES ARE OFFERED IN SPRINGFIELD, JACKSONVILLE, LINCOLN, TAYLORVILLE (DIABETES SERVICES), DECATUR AND BLOOMINGTON. MMC'S ADDRESSED ITS ACCESS TO CARE PRIORITY THROUGH THE ENOS PARK ACCESS TO CARE PROGRAM, CONTINUING TO FUND COMMUNITY HEALTH WORKERS (CHWS) IN AN AT-RISK NEIGHBORHOOD, IN COLLABORATION WITH HSHS ST. JOHN'S HOSPITAL AND SIU MEDICINE. SINCE THE PROGRAM BEGAN, CHWS HAVE SERVED 422 INDIVIDUALS, WHO RECEIVED 1,604 PRIMARY CARE APPOINTMENTS, 236 SPECIALTY APPOINTMENTS, 525 MENTAL HEALTH APPOINTMENTS AND 159 DENTAL APPOINTMENTS. CHWS PROVIDED 6,354 TRANSPORTATIONS FOR CLIENTS. SIGNIFICANT COLLABORATIONS WERE BUILT WITH LOCAL SERVICE PROVIDERS AND THE POLICE DEPARTMENT. MMC'S MENTAL HEALTH PRIORITY WAS ADDRESSED THROUGH FINANCIAL SUPPORT OF MEMORIAL BEHAVIORAL HEALTH'S (MBH) MOSAIC PROGRAM, WHICH SOCIAL EMOTIONAL SCREENINGS AND BEHAVIORAL HEALTH APPOINTMENTS IN THE SCHOOL SETTING; 218 CHILDREN RECEIVED MENTAL HEALTH SERVICES IN THE 2017-2018 SCHOOL YEAR. TO ADDRESS OBESITY, MMC'S WEIGHT LOSS AND WELLNESS CENTER'S DIABETES SERVICES PARTNERED WITH THE SPRINGFIELD YMCA TO ATTAIN A CDC-RECOGNIZED DIABETES PREVENTION PROGRAM THROUGH THE PROCESS IDENTIFIED BY THE AMERICAN ASSOCIATION OF DIABETES EDUCATORS. THIS CERTIFICATION WAS ACHIEVED IN FY18. PASSAVANT AREA HOSPITAL (PAH) ADDRESSED ITS ACCESS TO CARE PRIORITY BY COLLABORATING WITH SIU MEDICINE TO SUPPORT A NEW FEDERALLY QUALIFIED HEALTH CENTER IN MORGAN COUNTY, WHICH SERVED 2,217 PATIENTS IN FY18. PAH ALSO PROVIDED FINANCIAL SUPPORT FOR MORGAN COUNTY HEALTH DEPARTMENT'S SEXUALLY TRANSMITTED DISEASE CLINIC, WHICH COULD NOT OPERATE WITHOUT THIS SUPPORT. THE PROGRAM SERVED 217 CLIENTS IN FY18. TO ADDRESS OBESITY, THE HOSPITAL SUPPORTS TWO WALKING FOR WELLNESS PROGRAMS IN THE COMMUNITY, WHICH HAD MORE THAN 10,000 INSTANCES OF PARTICIPATION, A 22% INCREASE IN PARTICIPATION IN FY18. TAYLORVILLE MEMORIAL HOSPITAL (TMH) IS COLLABORATING WITH THE CHRISTIAN COUNTY YMCA TO IMPLEMENT THE CDC'S NATIONAL DIABETES PREVENTION PROGRAM. THE PROGRAM'S DEVELOPMENT PLAN WAS APPROVED AND STARTED IN FY18. TMH ALSO BEGAN WORK TO IMPLEMENT CATCH (COORDINATED APPROACH TO CHILD HEALTH), AN EVIDENCE-BASED PROGRAM TO PREVENT CHILDHOOD OBESITY. THEY IDENTIFIED A PILOT SCHOOL TO LAUNCH THE PROGRAM IN THE FALL OF 2018. TMH IS ADDRESSING MENTAL HEALTH THROUGH SENIOR LIFE SOLUTIONS, WHICH PROVIDES GROUP MENTAL HEALTH THERAPY AND INDIVIDUALIZED PATIENT CARE PLANS FOR STRUGGLING SENIORS. THE PROGRAM REDUCES ANXIETY AND DEPRESSION AS WELL AS USE OF THE HOSPITAL EMERGENCY DEPARTMENT. ACCESS TO CARE WAS ADDRESSED BY COLLABORATING WITH SIU MEDICINE TO BEGIN A NEW FEDERALLY QUALIFIED HEALTH CENTER IN TAYLORVILLE, AND ACCESS TO PEDIATRIC DENTAL SERVICES WAS PROVIDED TO 15 CHILDREN THROUGH COLLABORATION WITH MILES OF SMILES, THE SCHOOL DISTRICT, HEAD START, A DENTAL GROUP, AND FUNDING FROM THE TMH FOUNDATION. ABRAHAM LINCOLN MEMORIAL HOSPITAL'S (ALMH) OBESITY PRIORITY WAS ADDRESSED THROUGH EXPANSION OF THE CATCH PROGRAM, WHICH ADDED AN ADDITIONAL ELEMENTARY SCHOOL, AFTER-SCHOOL PROGRAM AND THREE DAYCARES TO EXISTING SITES. 4489617 779888 3528804 OTHER REVENUE INCLUDES PARTNERSHIP INCOME AND MISCELLANEOUS INCOME FOR MHS AND MEMORIAL HEALTH PARTNERS (MHP). MHP IS A DISREGARDED ENTITY OWNED 100% BY MHS. FOR FY2018, MHS RECORDED A LOSS IN MIDWEST HEALTHCARE QUALITY ALLIANCE, LLC (MHQA) AND LLHIE. A GAIN WAS RECORDED IN MID-AMERICA SERVICE SOLUTION AND BJC COLLABORATIVE. MHS ALSO HAD CARE COORDINATION PAYMENTS FOR MHP, AND A CHARGEBACK FOR STAFF TIME TO LINCOLN LAND HEALTH INFORMATION EXCHANGE, LLC IN WHICH MHS IS A 27.27% OWNER. 4489617 779888 3528804 51519362 1 0 0 1 0 0 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 1 1 0 0 0 0 1 1 1 1 0 0 1 37 0 1 367 1 1 1 0 0 0 0 0 0 0 0 0 X 17 12 1 0 0 0 1 1 0 1 1 0 0 1 1 1 1 1 1 1 1 1 1 IL X KATHRYN J KEIM SENIOR VP & CFO 2177883830 701 NORTH FIRST STREET SPRINGFIELD IL 627810001 X JOSEPH HURWITZ BOARD MEMBER (FROM JAN 18) 0.70 0.70 X 0 0 0 RICHARD LEVI BOARD MEMBER (THRU DEC 17) 0.70 0.70 X 0 0 0 NINA HARRIS BOARD MEMBER 0.70 0.70 X 0 0 0 MICHAEL AIELLO BOARD MEMBER (FROM JAN 18) 0.70 0.00 X 0 0 0 SERGIO PECORI BOARD MEMBER (THRU DEC 17) 0.70 0.70 X 0 0 0 WILLIAM PUTMAN MD BOARD MEMBER 0.70 0.00 X 0 0 0 MICHAEL NEUMEISTER MD BOARD MEMBER 0.70 0.00 X 0 0 0 REGINALD BENTON BOARD MEMBER 0.70 1.40 X 0 0 0 GINNY FANNING BOARD MEMBER 0.70 1.40 X 0 0 0 JERRY KRUSE MD MSPH BOARD MEMBER 0.70 0.00 X 0 0 0 SUSAN KOCH EDD BOARD MEMBER 0.70 0.70 X 0 0 0 JOHN BLACKBURN BOARD MEMBER 0.70 0.70 X 0 0 0 TODD WISE BOARD MEMBER(THRUDEC17)/2NDVCHR 0.70 0.70 X X 0 0 0 DEAN ROBERT JR 2NDVCHR(THRUDEC17)/1STVCHR 0.70 0.70 X X 0 0 0 DALE BECKER TREASURER 0.70 0.70 X X 0 0 0 RANDALL GERMERAAD CHAIR(THRUDEC17)/BRDMEM 0.70 0.70 X X 0 0 0 DIANE RUTLEDGE PHD 1STVCHAIR(THRUDEC17)/CHAIR 0.70 0.70 X X 0 0 0 GEOFFREY ISRINGHAUSEN SECRETARY 0.70 0.70 X X 0 0 0 EDGAR CURTIS EX-OFFICIO PRESIDENT & CEO 25.00 25.00 X X 1276987 0 309395 ROBERT KAY SVP & CFO & ASST TREASURER 25.00 25.00 X 635808 0 228839 MITCHELL JOHNSON SVP & CHIEF STRTGY OFFCR(THRUDEC17) 25.00 25.00 X 511017 0 123219 DAVID GRAHAM MD SVP & CIO 25.00 25.00 X 578304 0 169485 ROBERT SCOTT VP & CHRO 25.00 25.00 X 371234 0 69426 KEVIN ENGLAND VPBUSDEV(THRUSEP17)/SVPBUSDEV 25.00 25.00 X 332583 0 181598 ANNA EVANS JD GEN COUNSEL/VP INT AUDIT & COMPL 25.00 25.00 X 440199 0 137801 CHARLES CALLAHAN PHD EVP & COO 25.00 25.00 X 0 706687 193426 SCOTT KIRIAKOS SVP CLINICAL INTEGRATION (THRUDEC17) 25.00 25.00 X 0 501652 129496 RAJESH GOVINDAIAH MD SVP & CMO 25.00 25.00 X 604745 0 86664 AIMEE ALLBRITTON PHD VP & CLO 25.00 25.00 X 388380 0 70012 KIMBERLY BOURNE PRESIDENT TMH & CEO TMH 0.00 50.00 X 319258 0 75988 J TRAVIS DOWELL PRESIDENT MPS & VP MPS 0.00 50.00 X 333532 0 72631 DOLAN DALPOAS PRESIDENT ALMH & CEO ALMH 0.00 50.00 X 390420 0 53720 6182467 1208339 1901700 52 0 1 0 LEVI RAY & SHOUP INC 2401 W MONROE ST SPRINGFIELD IL 62704 IT CONSULTING SERVICES 3590266 SPRINGFIELD CLINIC PO BOX 19248 SPRINGFIELD IL 62794 IT SERVICES 1561165 BURWOOD GROUP INC 8582 SOLUTIONS CTR CHICAGO IL 60677 IT CONSULTING SERVICES 1443264 MICROSOFT LICENSING GP INC 1950 N STEMMONS FWY STE 5010 LB842 DALLAS TX 75207 ENTERPRISE SERVER SERVICES 1436091 INFOR (US) INC NW 7418 PO BOX 1450 MINNEAPOLIS MN 55485 IT CONSULTING SERVICES 722096 36 X MANAGEMENT FEES 900099 56359655 56139829 219826 PROGRAM RELATED RENT 900099 7153579 7153579 IT REIMBURSED EXPENSES 900099 1594968 1594968 RELATED PSHIP INCOME 900099 -326180 -326180 3854984 3854984 68637006 917773 917773 13653019 15230901 -1577882 -1577882 -1577882 278067533 1110029 272888246 1711646 5179287 -601617 4577670 4577670 BILLING SERVICE 561000 2400030 49639 2350391 644 644 2400674 74955241 68417180 270109 6267952 736076 736076 43812 43812 5471914 5471914 66193 66193 23727109 16230280 7496829 1818430 1243878 574552 2731175 1721242 1009933 1951034 1143613 807421 934942 934942 542004 542004 128250 128250 143697 143697 3658812 995050 2663762 1627877 1627877 3946395 1521455 2424940 9352816 9274532 78284 3208928 2843384 365544 127782 54263 73519 32634 17208 15426 967821 967821 9041885 8946312 95573 174516 174516 REPAIRS & MAINTENANCE 217804 215702 2102 FOOD & DIETARY 39392 5973 33419 MINOR PROJECT COSTS 20641 20641 RECRUITMENT 3496 3496 13 13 70715448 51519362 19196086 0 7682388 10356484 2841409 4272532 6204763 5454597 349486701 152156913 205269166 197329788 48068652 21885274 3856490 796489 305154852 289458959 579077720 529554123 12504985 14043816 766522 1854219 302506000 295209002 89684752 59582059 55827580 35081662 461289839 405770758 X 117787881 123783365 117787881 123783365 579077720 529554123 X 4239793 -2740396 4496087 X 0 1 X 1 0 X X 11 MEMORIAL MEDICAL CENTER 370661220 3 0 46738152 0 PASSAVANT MEMORIAL AREA HOSPITAL ASSOCIATION 370661230 3 0 2115406 0 ABRAHAM LINCOLN MEMORIAL HOSPITAL 370723793 3 0 1299999 0 TAYLORVILLE MEMORIAL HOSPITAL 370661250 3 0 1219759 0 MENTAL HEALTH CENTERS OF CENTRAL ILLINOIS 370646367 7 0 684334 0 SPRINGFIELD RESIDENTIAL SERVICES 371298589 7 0 0 0 ABRAHAM LINCOLN HEALTHCARE FOUNDATION 363492268 7 0 0 0 MEMORIAL MEDICAL CENTER FOUNDATION 371110301 7 0 0 0 MEMORIAL HOME SERVICES 370714225 7 0 844566 0 MEMORIAL PHYSICIAN SERVICES 371181194 10 0 3418223 0 MEMORIAL HEALTH VENTURES 363492266 10 0 39216 0 11 56359655 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 SECTION A, LINE 1 MEMORIAL HEALTH SYSTEM (37-1110690) AFFILIATES ARE DESIGNATED BY THE CLASS AND PURPOSE INDICATED IN SCHEDULE R, PART II. EACH SUPPORTED ORGANIZATION IS A SECTION 501(C)(3) PUBLIC CHARITY DESCRIBED IN INTERNAL REVENUE CODE SECTION 509(A)(1) OR SECTION 509(A)(2). THE SUPPORTED ORGANIZATIONS ARE NOT LISTED BY NAME IN MEMORIAL HEALTH SYSTEM'S GOVERNING DOCUMENTS; HOWEVER, FOR ALL SUPPORTED AFFILIATES, WITH THE EXCEPTION OF SPRINGFIELD RESIDENTIAL SERVICES, THE CORPORATE MEMBER IS DESCRIBED IN THE SUPPORTED ORGANIZATIONS GOVERNING DOCUMENTS AS HAVING CERTAIN RESERVED POWERS. FOR SPRINGFIELD RESIDENTIAL SERVICES, IT IS JUST A HISTORICAL RELATIONSHIP WITH MENTAL HEALTH CENTERS OF CENTRAL ILLINOIS. SECTION A, LINE 6 DURING FY2018, MEMORIAL HEALTH SYSTEM PROVIDED GRANTS OR ALLOCATIONS TO OTHER ORGANIZATIONS AND COMMUNITY GROUPS ON BEHALF OF ITS SUPPORTED ORGANIZATIONS. THE PURPOSE OF THESE GRANTS WAS TO FURTHER THE CHARITABLE, SCIENTIFIC AND EDUCATIONAL PURPOSES OF THE SUPPORTED ORGANIZATIONS AND TO PROMOTE AND SUPPORT THE INTERESTS AND PURPOSES OF THOSE SUPPORTED ORGANIZATIONS SPECIFIED IN MEMORIAL HEALTH SYSTEM'S ORGANIZING DOCUMENTS. SECTION C, LINE 1 MEMORIAL HEALTH SYSTEM IS THE PARENT AND SOLE CORPORATE MEMBER OF EACH OF ITS SUPPORTED ORGANIZATIONS. IN ITS CAPACITY AS THE SOLE CORPORATE MEMBER, MEMORIAL HEALTH SYSTEM PROVIDES OVERALL DIRECTION, MANAGEMENT AND CONTROL OVER ITS SUPPORTED ORGANIZATIONS. MEMORIAL HEALTH SYSTEM ALSO HAS CERTAIN RESERVED POWERS. FOR EXAMPLE, ALL CAPITAL AND OPERATING BUDGETS MUST BE APPROVED BY MEMORIAL HEALTH SYSTEM. 0 0 0 0 0 1 128250 0 0 0 128250 0 PART II-B, LINE 1: MEMORIAL HEALTH SYSTEM ENGAGES LOBBYISTS TO ASSIST IT IN SECURING FEDERAL GRANTS AND MONITORING STATE REGULATIONS IN SUPPORT OF FURTHERING THE MEMORIAL HEALTH SYSTEM MISSION WHICH IS "TO IMPROVE THE HEALTH OF THE PEOPLE AND COMMUNITIES WE SERVE". THIS INCLUDES ASSISTING MEMORIAL HEALTH SYSTEM IN DEVELOPING PRESENTATIONS TO THE ILLINOIS CONGRESSIONAL DELEGATION, REQUESTING APPROPRIATIONS FOR PRIORITY PROJECTS INVOLVING LOCAL PATIENT SAFETY, QUALITY IMPROVEMENT AND IMPROVED LOCAL ACCESS TO MEDICAL CARE. THE LOBBYISTS ALSO ASSIST MEMORIAL IN COMMUNICATING THE IMPORTANCE OF ADEQUATE MEDICAID FUNDING IN SUPPORT OF THE SUBSTANTIAL SERVICES MEMORIAL'S AFFILIATES PROVIDE TO THOSE IN POVERTY AND IN MONITORING LEGISLATIVE AND REGULATORY DEVELOPMENTS THAT WOULD AFFECT MEMORIAL HEALTH SYSTEM'S ABILITY TO CONTINUE DELIVERING ITS SUBSTANTIAL COMMUNITY BENEFIT. 0 3002004 20590052 23592056 165661005 69986645 88284873 147362777 6913161 66239829 61752207 11400783 1078665 16015340 2119833 14974172 197329788 UNAMORTIZED BOND DISCOUNTS AND ISSUE COSTS 576000 DUE FROM AFFILIATES 802556 LIFE INSURANCE - VARIOUS AGREEMENTS 3576287 ENVISION PLUS POLICY ASSET 30588 INTERCOMPANY DEBT FROM RELATED ENTITIES 283625923 NOTES RECEIVABLES FROM AFFILIATES FOR SALE OF AR 847605 289458959 DEFERRED COMPENSATION 8961620 WORKERS' COMPENSATION 345216 RESERVE FOR POST EMPLOYMENT BENEFITS 3871730 DUE TO AFFILIATES 137094 SWAP LIABILITY 696972 RESTORATION PLAN 2770825 CONTRIBUTION PAYABLE 250000 CURRENT PORTION BENEFITS 877985 NOTES PAYABLE TO AFFILIATES FOR SALE OF AR 400220 QLICI LOANS 16770000 35081662 X PART X, LINE 2: THE AUTHORITATIVE GUIDANCE IN ASC 740, INCOME TAXES, CREATES A SINGLE MODEL TO ADDRESS UNCERTAINTY IN TAX POSITIONS AND CLARIFIES THE ACCOUNTING FOR INCOME TAXES BY PRESCRIBING THE MINIMUM RECOGNITION THRESHOLD A TAX POSITION IS REQUIRED TO MEET BEFORE BEING RECOGNIZED IN THE FINANCIAL STATEMENTS. UNDER THE REQUIREMENTS OF THIS GUIDANCE, TAX-EXEMPT ORGANIZATIONS COULD BE REQUIRED TO RECORD AN OBLIGATION AS THE RESULT OF A TAX POSITION THEY HAVE HISTORICALLY TAKEN ON VARIOUS TAX EXPOSURE ITEMS. EACH OF MEMORIAL HEALTH SYSTEM'S SUBSIDIARIES, EXCLUDING THOSE DESCRIBED IN THE FOLLOWING PARAGRAPH, IS A SEPARATELY INCORPORATED NOT-FOR-PROFIT CORPORATION AS DESCRIBED UNDER SECTION 501(C)(3) OF THE CODE AND IS TAX-EXEMPT FROM FEDERAL INCOME TAXES ON RELATED INCOME PURSUANT TO SECTION 501(A) OF THE CODE. THEY DO, HOWEVER, OPERATE CERTAIN PROGRAMS THAT MAY RESULT IN UNRELATED BUSINESS INCOME. UPON REVIEW AS REQUIRED BY ASC 740, NO TAX PROVISION WAS RECORDED FOR THE YEARS ENDED SEPTEMBER 30, 2018 OR 2017. MEMORIAL HEALTH SYSTEM IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS FOR YEARS PRIOR TO 2014. MHS QALICB, LLC (QALICB), MCDEKK, LLC (MCDEKK), AND MEMORIAL HEALTH PARTNERS (MHP) ARE CONSIDERED DISREGARDED ENTITIES FOR TAX PURPOSES AND ARE EXEMPT FROM INCOME TAX. MEMORIAL HOME SERVICES OF CENTRAL ILLINOIS (MHSCI) IS A TAXABLE FOR-PROFIT CORPORATION AND PASSAVANT PHYSICIAN ASSOCIATION (PPA) IS A TAXABLE NOT-FOR-PROFIT CORPORATION. BOTH ARE SUBJECT TO FEDERAL AND STATE INCOME TAXES. 1 UNITED WAY OF CENTRAL ILLINOIS INC 1999 WEST WABASH AVENUE SUITE 107 SPRINGFIELD IL 62704 370716060 501(C)(3) 203247 SUPPORT FOR UNITED WAY COMMUNITY FUND. GREATER SPRINGFIELD CHAMBER OF COMMERCE 1011 S SECOND STREET SPRINGFIELD IL 62704 370710280 501(C)(6) 98000 SEE PART IVPARTICIPATE IN A PUBLIC AND PRIVATE ECONOMIC GROWTH PARTNERSHIP LED BY THE CHAMBER OF COMMERCE. CONTACT MINISTRIES 1100 E ADAMS SPRINGFIELD IL 62703 371072627 501(C)(3) 5000 SEE PART IV PROVIDE SUPPORT FOR HOMELESS SHELTER, FOOD, CLOTHING, LIFE SKILLS EDUCATION, AND FINANCIAL ASSISTANCE FOR THE GREATER SPRINGFIELD COMMUNITY. BOYS & GIRLS CLUBS OF CENTRAL ILLINOIS 300 S 15TH ST SPRINGFIELD IL 62703 370752849 501(C)(3) 50000 SEE PART IV PROVIDE SUPPORT TO INSPIRE AND ENABLE ALL YOUNG PEOPLE TO REACH THEIR FULL POTENTIAL AS PRODUCTIVE, CARING, AND RESPONSIBLE CITIZENS. MENTAL HEALTH CENTERS OF CENTRAL ILLINOIS 710 N 8TH ST SPRINGFIELD IL 62702 370646367 501(C)(3) 137980 SEE PART IVPROVIDE SUPPORT FOR MEMORIAL BEHAVIORAL HEALTH'S CHILDREN'S MOSAIC PROGRAM, WHICH INCREASES ACCESS TO MENTAL HEALTH SERVICES FOR CHILDREN AND FAMILIES. IN ADDITION, TO PROVIDE SUPPORT FOR INITIATION OF A MENTAL HEALTH FIRST AID PROJECT IN SANGAMON, LOGAN, MORGAN AND CHRISTIAN COUNTIES. THIS PROGRAM IS HELPING ALL FOUR MHS HOSPITALS ADDRESS MENTAL HEALTH, WHICH WAS A PRIORITY IDENTIFIED BY EACH HOSPITAL'S 2015 COMMUNITY HEALTH NEEDS ASSESSMENT. MERCY COMMUNITIES INC 1344 N 5TH STREET SPRINGFIELD IL 62702 371383599 501(C)(3) 10000 SEE PART IVPROVIDE ASSISTANCE TO HOMELESS YOUNG WOMEN AND THEIR CHILDREN TO ACHIEVE STABILITY IN THEIR LIVES. SPARC 232 BRUNS LANE SPRINGFIELD IL 62702 370717761 501(C)(3) 14500 SEE PART IVPROVIDE SUPPORT TO HELP INDIVIDUALS WITH DEVELOPMENTAL DISABILITIES IMPROVE THE QUALITY OF THEIR LIVES. SIU SCHOOL OF MEDICINE PO BOX 19666 SPRINGFIELD IL 62794 376005961 501(C)(3) 109349 SEE PART IVDONATION TO PROVIDE SUPPORT FOR THE ENOS PARK ACCESS TO CARE COLLABORATIVE, A PROGRAM THAT IS ADDRESSING ACCESS TO CARE, A PRIORITY IDENTIFIED BY MMC'S 2015 COMMUNITY HEALTH NEEDS ASSESSMENT. ADDITIONAL DONATION MADE FOR FURNISHING AND SUPPLIES FOR ACADEMIC RESOURCE CENTER. ADDITIONAL DONATION WAS MADE FOR CHARITY 5K RACE WHERE PROCEEDS OF RACE WENT TO MERCY COMMUNITIES. GIRLS ON THE RUN OF CENTRAL ILLINOIS 907 CLOCKTOWER DRIVE SPRINGFIELD IL 62704 271822009 501(C)(3) 7500 SEE PART IVPROVIDE SUPPORT FOR POSITIVE YOUTH DEVELOPMENT FOR GIRLS, 3RD-8TH GRADE. LIFE SKILLS ARE TAUGHT THROUGH DYNAMIC INTERACTIVE LESSONS AND RUNNING GAMES. THE GOAL OF THE PROGRAM IS TO UNLEASH CONFIDENCE THROUGH ACCOMPLISHMENT WHILE ESTABLISHING A LIFETIME APPRECIATION OF HEALTH AND FITNESS. CENTRAL IL FOOD BANK 1937 E COOK STREET SPRINGFIELD IL 62703 371106465 501(C)(3) 5000 SEE PART IVDONATION TO PROVIDE SUPPORT FOR CENTRAL ILLINOIS FOODBANK'S MISSION TO DISTRIBUTE FOOD AND GROCERY ITEMS TO OTHER CHARITABLE ORGANIZATIONS, AND TO WORK WITH ORGANIZATIONS TO DEVELOP CREATIVE SOLUTIONS TO END HUNGER IN 21 COUNTIES IN CENTRAL AND SOUTHERN ILLINOIS. ILLINOIS STATE DENTAL 1010 SOUTH SECOND STREET SPRINGFIELD IL 62704 237244932 501(C)(3) 25000 SEE PART IVPROVIDE SUPPORT FOR FREE DENTAL CARE TO THE UNINSURED AND UNDERINSURED. KIDZEUM 412 E ADAMS STREET SPRINGFIELD IL 62701 371320003 501(C)(3) 50000 SEE PART IVPROVIDE SUPPORT FOR THE KIDZEUM HEALTH AND SCIENCE MUSEUM WHICH HAS A VERY STRONG HEALTH EDUCATION COMPONENT FOR CHILDREN. ONE SANGAMON SCHOOLS PO BOX 20285 SPRINGFIELD IL 62708 10000 SEE PART IVPROVIDE SUPPORT FOR BALLOT INITIATIVE TO SUPPORT SANGAMON COUNTY SALES TAX INCREASE FOR SCHOOL DISTRICT CAPITAL IMPROVEMENT PLANS. 11 2 EDUCATION GRANT 9 27226 EDUCATION TUITION REIMBURSEMENT 11 16586 PART I, LINE 2: MHS PROVIDES GRANTS PRIMARILY TO LOCALLY MANAGED 501(C)(3) ORGANIZATIONS THAT SUPPORT OR SHARE THE MISSION OF MHS. REQUESTS TO SUPPORT INITIATIVES IN LINE WITH MHS'S COMMUNITY HEALTH NEEDS ASSESSMENT PRIORITIES RECEIVE SPECIAL CONSIDERATION. SENIOR LEADERSHIP MUST APPROVE ALL GRANTS. MHS EMPLOYEES ARE VOLUNTEER BOARD MEMBERS OR PARTICIPATE AS VOLUNTEERS FOR SOME OF THE ORGANIZATIONS THAT MHS ASSISTS. WHEN AN ORGANIZATION IS GIVEN A DONATION, IT EITHER AGREES TO RESTRICT THE DONATION TO THE PURPOSE FOR WHICH IT WAS REQUESTED OR IT RECEIVES A LETTER DIRECTING THAT DONATION MAY BE USED ONLY FOR THE APPROVED GRANT'S PURPOSE. ADDITIONALLY, EMPLOYEES FREQUENTLY ATTEND MANY OF THE SPONSORED EVENTS OR MHS RECEIVES ACKNOWLEDGEMENT FROM THE ORGANIZATION ABOUT THE PROGRAM THAT WAS SUPPORTED BY THE GRANT. X X X X 0 1 0 0 0 0 0 0 0 EDGAR CURTIS EX-OFFICIO PRESIDENT & CEO 832114 0 367500 0 77373 0 290238 0 19157 0 1586382 0 0 0 ROBERT KAY SVP & CFO & ASST TREASURER 454858 0 162021 0 18929 0 207925 0 20914 0 864647 0 0 0 MITCHELL JOHNSON SVP & CHIEF STRTGY OFFCR(THRUDEC17) 294959 0 105786 0 110272 0 104662 0 18557 0 634236 0 33070 0 DAVID GRAHAM MD SVP & CIO 408145 0 144817 0 25342 0 152989 0 16496 0 747789 0 0 0 ROBERT SCOTT VP & CHRO 278708 0 70593 0 21933 0 44123 0 25303 0 440660 0 0 0 KEVIN ENGLAND VPBUSDEV(THRUSEP17)/SVPBUSDEV 227066 0 76088 0 29429 0 153803 0 27795 0 514181 0 0 0 ANNA EVANS JD GEN COUNSEL/VP INT AUDIT & COMPL 344893 0 88532 0 6774 0 109703 0 28098 0 578000 0 0 0 CHARLES CALLAHAN PHD EVP & COO 0 452091 0 161739 0 92857 0 164676 0 28750 0 900113 0 0 SCOTT KIRIAKOS SVP CLINICAL INTEGRATION (THRUDEC17) 0 334678 0 119533 0 47441 0 111379 0 18117 0 631148 0 0 RAJESH GOVINDAIAH MD SVP & CMO 424137 0 151559 0 29049 0 76488 0 10176 0 691409 0 0 0 AIMEE ALLBRITTON PHD VP & CLO 280102 0 71774 0 36504 0 51953 0 18059 0 458392 0 5291 0 KIMBERLY BOURNE PRESIDENT TMH & CEO TMH 241281 0 61208 0 16769 0 50856 0 25132 0 395246 0 0 0 J TRAVIS DOWELL PRESIDENT MPS & VP MPS 237164 0 60248 0 36120 0 48090 0 24541 0 406163 0 19796 0 DOLAN DALPOAS PRESIDENT ALMH & CEO ALMH 271997 0 67999 0 50424 0 53315 0 405 0 444140 0 20384 0 PART I, LINE 3 COMPENSATION AND BENEFITS RECEIVED BY EDGAR CURTIS, PRESIDENT AND CEO OF MEMORIAL HEALTH SYSTEM, WAS COMPRISED OF THE FOLLOWING COMPONENTS; BASE COMPENSATION, INCENTIVE COMPENSATION, OTHER COMPENSATION, RETIREMENT/DEFERRED COMPENSATION AND OTHER NONTAXABLE BENEFITS. BASE COMPENSATION FOR MR. CURTIS WAS DETERMINED BASED ON THE METHODS DESCRIBED IN PART I, LINE 3 CONDUCTED BY INDEPENDENT COMPENSATION CONSULTANTS. BASE COMPENSATION LEVELS WERE SET BY THE LEADERSHIP COMPENSATION COMMITTEE, A COMMITTEE OF THE MHS BOARD CONSISTING ENTIRELY OF MHS BOARD MEMBERS WHO ARE INDEPENDENT AND WHO ARE FREE OF ANY CONFLICTS OF INTEREST, AROUND THE MIDDLE OF THE MARKET SALARY DATA, AS MEASURED AND PRESENTED TO THE COMMITTEE BY THE INDEPENDENT COMPENSATION CONSULTANT. INCENTIVE COMPENSATION WAS CONTINGENT ON THE ACHIEVEMENT OF SPECIFIC PERFORMANCE METRICS OF MHS, AS REVIEWED AND APPROVED IN ADVANCE BY THE MHS BOARD. RETIREMENT COMPENSATION IN COLUMNS (B)(III) AND (C) IS THE YEAR'S NORMAL INCREASE IN TOTAL REITREMENT BENEFITS PROVIDED TO THE EXECUTIVE FOR HIS ENTIRE TERM OF SERVICE TO THE ORGANIZATION. THE RETIREMENT BENEFITS IN COLUMN (C) ARE UNVESTED, AND WILL BE FORFEITED IF THE EXECUTIVE DOES NOT SATISFY FUTURE SERVICE REQUIREMENTS. PART I, LINE 4B ONE OR MORE LISTED INDIVIDUALS PARTICIPATES IN NONQUALIFIED DEFERRED COMPENSATION PLANS MAINTAINED BY MEMORIAL HEALTH SYSTEM. MHS CREDITS ANNUAL CONTRIBUTION AMOUNTS TO THESE PLANS, AND THESE AMOUNTS SERVE TO PROVIDE SUPPLEMENTAL RETIREMENT INCOME TO THESE INDIVIDUALS. ALL CREDITED AMOUNTS ARE REVIEWED AND APPROVED BY A COMMITTEE OF THE MHS BOARD AS PART OF REASONABLE TOTAL COMPENSATION. ALL AMOUNTS CREDITED ARE UNVESTED WHILE THE EXECUTIVE IS REQUIRED TO PROVIDE SUBSTANTIAL FUTURE SERVICES, AND THEN ARE TAXED IN FULL WHEN THE SERVICE PERIOD IS COMPLETED AND THE AMOUNTS BECOME VESTED. ALL AMOUNTS CREDITED TO THESE EXECUTIVES UNDER THESE PLANS ARE INCLUDED IN COLUMN (C) AS UNVESTED, NONTAXABLE DEFERRED COMPENSATION WHEN FIRST CREDITED, AND THEN ARE AGAIN INCLUDED IN COLUMN (B)(III) WHEN THE AMOUNTS BECOME VESTED AND ARE SUBJECT TO TAX. THE FOLLOWING CURRENT OR FORMER OFFICERS, KEY EMPLOYEES, AND HIGHEST COMPENSATED EMPLOYEES RECEIVED DEFERRED COMPENSATION PAYOUTS IN THE CALENDAR YEAR FROM THE ORGANIZATION OR A RELATED ORGANIZATION, MEMORIAL MEDICAL CENTER: AIMEE ALLBRITTON $7,312, DOLAN DALPOAS $28,932, J. TRAVIS DOWELL $24,293, KEVIN ENGLAND, $2,523, MITCH JOHNSON $95,159, AND SCOTT KIRIAKOS $33,517. TO BECOME ENTITLED TO THE BENEFITS PROVIDED, EACH COVERED EMPLOYEE MUST MEET SUBSTANTIAL REQUIREMENTS RELATING TO FURTHER EMPLOYMENT. UNTIL THOSE REQUIREMENTS ARE SATISFIED, IF EVER, THE EMPLOYEE IS NOT ENTITLED TO THESE AMOUNTS. IF THE EMPLOYEE WERE TO HAVE TERMINATED EMPLOYMENT VOLUNTARILY IN THE YEAR TO WHICH THIS RETURN APPLIES AND NOT MET THESE SUBSTANTIAL REQUIREMENTS, THESE SUPPLEMENTAL RETIREMENT BENEFITS WOULD HAVE BEEN FORFEITED. THESE SUPPLEMENTAL RETIREMENT BENEFITS ARE PART OF A RETIREMENT PROGRAM THAT PROVIDES RETIREMENT INCOME FOR ALL YEARS OF SERVICE THAT THE EMPLOYEE PROVIDES TO THE ORGANIZATION. ACCORDINGLY, ANY RETIREMENT BENEFITS SHOULD BE VIEWED AS APPLYING TO THE ENTIRE LENGTH OF THE EMPLOYEE'S SERVICE. THE LEADERSHIP COMPENSATION COMMITTEE OF THE MHS BOARD APPROVES ALL RETIREMENT BENEFITS, TOGETHER WITH ALL OTHER FORMS OF COMPENSATION AND BENEFITS FOR THESE AND OTHER SYSTEM LEADERS, IN A MANNER INTENDED TO QUALIFY FOR THE "REBUTTABLE PRESUMPTION OF REASONABLENESS" UNDER FEDERAL INCOME TAX LAW. A ILLINOIS HEALTH FACILITIES AUTHORITY 362780046 45200P2U4 2003-12-17 31000000 SEE PART VI 0 0 0 B ILLINOIS FINANCE AUTHORITY 861091967 45200FJ59 2009-12-22 147401639 SEE PART VI 0 0 0 C ILLINOIS FINANCE AUTHORITY 861091967 45203HYQ9 2014-01-30 60465495 SEE PART VI 0 0 0 D ILLINOIS FINANCE AUTHORITY 861091967 2014-05-15 60000000 SEE PART VI 0 0 0 A 15920000 31100606 329438 110306 19254302 11406560 2004 1 0 1 1 B 5465000 147556074 1350000 146206074 2011 0 0 1 1 C 2195000 60471350 60471350 2015 0 0 1 1 D 2435000 60000000 60000000 2015 0 0 1 1 A 0 1 1 1 1 1 0.00030 0.00030 0 0 1 B 0 1 1 1 1 1 0.01840 0.01840 0 0 1 C 0 0 0 0 0 0 1 D 0 0 0 0 0 0 1 A 0 0 0 1 1 1 US BANCORP PIPER JAFFRAY FINANCIAL 18.800000000000 0 0 0 0 1 B 0 0 0 1 0 0 0 0 1 C 0 1 0 0 0 0 0 0 1 D 0 1 0 0 1 0 0 0 1 A 1 B 1 C 1 D 1 SCHEDULE K SUPPLENTAL INFORMATION SCHEDULE K PART I, COLUMN (F) CONTINUATIONS: ONE PURPOSE OF THE 2003 ISSUE WAS TO CURRENT REFUND $10,980,000 OF THE 1993 SERIES BONDS ISSUED ON 8/5/93 IN THE AMOUNT OF $21,245,000. PROCEEDS WERE ALSO USED TO PAY ISSUANCE EXPENSES AND TO PURCHASE EQUIPMENT AND SOFTWARE FOR MEMORIAL HEALTH SYSTEM. PROCEEDS WERE ALSO USED FOR CONSTRUCTION AND HEALTHCARE BUILDING IMPROVEMENTS AND TO CONSTRUCT AND EQUIP AN OUTPATIENT PSYCHIATRIC FACILITY. THE PURPOSE OF THE 2009 ISSUE WAS TO PAY ISSUANCE COSTS, CONSTRUCT AND EQUIP A REPLACEMENT HOSPITAL FACILITY FOR ABRAHAM LINCOLN MEMORIAL HOSPITAL, RENOVATE AND REMODEL TAYLORVILLE MEMORIAL HOSPITAL, RENOVATE, REMODEL, AND EQUIP MEMORIAL MEDICAL CENTER, CONSTRUCT A PARKING GARAGE ADJACENT TO MEMORIAL MEDICAL CENTER, CONSTRUCT AND EQUIP A WOUND CARE CENTER, RENOVATE A PAIN CLINIC, CONSTRUCT AND EQUIP A CONSOLIDATED IMAGING SERVICES AREA, PURCHASE VARIOUS PARCELS OF REAL PROPERTY IN SPRINGFIELD, IL AND TAYLORVILLE, IL FOR FUTURE EXPANSION OF EXISTING FACILITIES, CONSTRUCT AND EQUIP A SPACE FOR PHYSICAL THERAPY OWNED BY MEMORIAL MEDICAL CENTER AND LOCATED WITHIN THE NEW YMCA IN SPRINGFIELD, IL, AND ROUTINE CAPITAL EXPENDITURES. THE PURPOSE OF THE 2014A ISSUE WAS (A) TO REPAY TAXABLE DEBT IN THE AMOUNT OF $25,057,493 USED FOR PAYMENT OF THE COST OF ACQUIRING, CONSTRUCTING, RENOVATING, REMODELING AND EQUIPPING HEALTH FACILITIES AT MEMORIAL MEDICAL CENTER, AND (B) FOR PAYING ADDITIONAL COSTS OF THOSE PROJECTS NOT PREVIOUSLY FINANCED WITH THE TAXABLE DEBT. THE PURPOSE OF THE 2014B ISSUE WAS FOR THE PAYMENT OF ACQUIRING, CONSTRUCTING, RENOVATING, REMODELING AND EQUIPPING HEALTH FACILTIES AT MEMORIAL MEDICAL CENTER. THE PURPOSE OF THE 2015 ISSUE WAS TO CURRENT REFUND $22,432,282 OF THE CITY OF JACKSONVILLE ILLINOIS ADJUSTABLE RATE DEMAND INDUSTRIAL REVENUE IMPROVEMENT BONDS, SERIES 2006B. THE PROCEEDS WERE ALSO USED TO PAY ISSUANCE EXPENSES OF THE BOND ISSUANCE. SCHEDULE K PART II, LINE 3: TOTAL PROCEEDS ISSUED AMOUNT IN COLUMNS A, B, & C DOESN'T TIE TO PART I COLUMN (E) DUE TO INVESTMENT EARNINGS INCLUDED IN PART II, LINE 3. SCHEDULE K PART III, LINE 3B & 3D: MEMORIAL HEALTH SYSTEM'S INTERNAL COUNSEL, AS WELL AS EXTERNAL BOND COUNSEL, ROUTINELY REVIEWS MANAGEMENT AND SERVICE CONTRACTS AND RESEARCH AGREEMENTS RELATING TO FINANCED PROPERTY . SCHEDULE K PART IV, LINE 1: THE ARBITRAGE REBATE FILING IS ONLY REQUIRED EVERY 5 YEARS, AND NO REBATABLE ARBITRAGE HAS BEEN EARNED FOR ISSUES AT SUCH 5 YEAR ANNIVERSARIES. SCHEDULE K PART IV, LINE 2C: THE REBATE COMPUTATION FOR COLUMN A WAS PERFORMED ON 12/17/2013. THE REBATE COMPUTATION FOR COLUMN B WAS PERFORMED ON 12/22/2014, AND NO REBATABLE ARBITRAGE HAS BEEN EARNED FOR THESE ISSUES AT SUCH 5 YEAR ANNIVERSARIES. SCHEDULE K PART IV, LINE 4B: THE PROVIDER'S FULL NAME FOR COLUMN A IS U.S. BANCORP PIPER JAFFRAY FINANCIAL PRODUCTS INC. A ILLINOIS FINANCE AUTHORITY 861091967 2015-11-30 22778000 SEE PART VI 0 0 0 A 2554000 22778000 22432282 345718 1 0 1 1 A 0 1 1 1 0 0.02650 0.02650 0 0 1 A 0 1 0 0 1 0 0 0 1 A 1 LEVI RAY AND SHOUP INC SEE PART V 2462168 SEE PART V 0 SPRINGFIELD CLINIC LLP SEE PART V 873979 SEE PART V 0 GREATER SPRINGFIELD CHAMBER OF COMMERCE SEE PART V 128065 SEE PART V 0 HENRY HURWITZ SEE PART V 66193 SEE PART V 0 SCHEDULE L, PART IV, BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS: (A) NAME OF PERSON: LEVI, RAY AND SHOUP, INC.(B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: BOARD MEMBER IS THE OWNER OF LEVI, RAY AND SHOUP, INC(C) AMOUNT OF TRANSATION $2,462,168.(D) DESCRIPTION OF TRANSACTION: MEMORIAL HEALTH SYSTEM PAID FEES TO LEVI, RAY AND SHOUP, INC. FOR SERVICES FOR THE YEAR ENDED SEPTEMBER 30, 2018. RICHARD H. LEVI IS A MEMBER OF MEMORIAL HEALTH SYSTEM'S BOARD OF DIRECTORS AND IS OWNER OF LEVI, RAY AND SHOUP, INC. ALL FEES ARE NEGOTIATED AT FAIR MARKET VALUE FOR THE SERVICES PROVIDED. (E) SHARING OF ORGANIZATION REVENUES? = NO (A) NAME OF PERSON: SPRINGFIELD CLINIC, LLP (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: BOARD MEMBER IS A PARTNER AND BOARD MEMBER OF SPRINGFIELD CLINIC, LLP(C) AMOUNT OF TRANSACTION $873,979(D) DESCRIPTION OF TRANSACTION: MEMORIAL HEALTH SYSTEM PAID FEES TO SPRINGFIELD CLINIC, LLP FOR THE YEAR ENDED SEPTEMBER 30, 2018. A PHYSICIAN AND BOARD MEMBER OF THIS COMPANY, WILLIAM D PUTMAN, M.D., IS ALSO A MEMBER OF MEMORIAL HEALTH SYSTEM'S BOARD OF DIRECTORS. ALL FEES ARE NEGOTIATED AT ARM'S LENGTH AND ARE AT FAIR MARKET VALUE FOR THE SERVICES PROVIDED.(E) SHARING OF ORGANIZATION REVENUES? = NO (A) NAME OF PERSON: GREATER SPRINGFIELD CHAMBER OF COMMERCE (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: BOARD MEMBER IS A BOARD MEMBER OF THE GREATER SPRINGFIELD CHAMBER OF COMMERCE(C) AMOUNT OF TRANSACTION $128,065.(D) DESCRIPTION OF TRANSACTION: MEMORIAL HEALTH SYSTEM PAID FEES TO GREATER SPRINGFIELD CHAMBER OF COMMERCE FOR SERVICES FOR THE YEAR ENDED SEPTEMBER 30, 2018. DIANE RUTLEDGE IS A MEMBER OF MEMORIAL HEALTH SYSTEM'S BOARD OF DIRECTORS AND IS A MEMBER OF GREATER SPRINGFIELD CHAMBER OF COMMERCE. ALL FEES ARE NEGOTIATED AT FAIR MARKET VALUE FOR THE SERVICES PROVIDED.(E) SHARING OF ORGANIZATION REVENUES? = NO (A) NAME OF PERSON: HENRY HURWITZ (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: EMPLOYEE; SON OF JOSEPH HURWITZ, MHS BOARD MEMBER(C) AMOUNT OF TRANSACTION $66,193.(D) DESCRIPTION OF TRANSACTION: MEMORIAL HEALTH SYSTEM PAID COMPENSATION AND BENEFITS OF $66,193 TO HENRY HURWITZ RELATED TO EMPLOYMENT SERVICES FOR THE YEAR ENDED SEPTEMBER 30, 2018. HENRY HURWITZ IS THE SON OF JOSEPH HURWITZ, MEMBER OF MEMORIAL HEALTH SYSTEM'S BOARD OF DIRECTORS. THE COMPENSATION PAID WAS NEGOTIATED AT ARM'S LENGTH AND REPRESENTS FAIR MARKET VALUE FOR THE SERVICES PROVIDED.(E) SHARING OF ORGANIZATION REVENUES? = NO FORM 990, PART III, LINE 4C, PROGRAM SERVICE ACCOMPLISHMENT CONT. MORE THAN 3,200 STUDENTS ARE NOW BEING REACHED WITH CATCH MESSAGING, SUPPORTED BY THE HOSPITAL'S LEADERSHIP OF THE PROGRAM. ALMH'S BREASTFEEDING INITIATIVE CONTINUES TO GROW; BREASTFEEDING INITIATION RATES AT ALMH INCREASED FROM 64.1% IN FY17 TO 71.2% IN FY18. ALMH BUILT A COMMUNITY WALKING TRAIL ON ITS CAMPUS THAT OPENED IN 2017. TRAIL USE INCREASED FROM 4,452 LAPS IN FY17 TO 11,113 IN FY18. THE ALMH MARKET IS A LOCAL FARMER'S MARKET WHOSE AVERAGE WEEKLY ATTENDANCE IS 940 FROM MAY THROUGH EARLY FALL. THE MARKET OFFERED 904 FREE HEALTH SCREENINGS AND 21 WEEKLY POP CLUB ACTIVITIES, WHICH PROVIDE EDUCATION TO CHILDREN AGES 5-12 ABOUT THE FOOD SYSTEM AND HEALTHY EATING. TO ADDRESS MENTAL HEALTH, ALMH BROUGHT MENTAL HEALTH CLINICIANS WITH MEMORIAL BEHAVIORAL HEALTH'S MOSAIC PROGRAM INTO THE LOCAL JUNIOR HIGH SCHOOL TO OFFER SCREENINGS AND MENTAL HEALTH SERVICES WITHIN THE SCHOOL SETTING. ALSO IN FY2018, THE FOUR MHS HOSPITALS EACH COMPLETED NEW COMMUNITY HEALTH NEEDS ASSESSMENTS AND IDENTIFIED PRIORITIES TO ADDRESS IN FY2019-FY2021. THESE NEEDS ASSESSMENTS WERE DONE COLLABORATIVELY WITH LOCAL COUNTY HEALTH DEPARTMENTS AND INCLUDED INPUT FROM COMMUNITY ORGANIZATIONS THAT WORK WITH MEDICALLY UNDERSERVED, LOW-INCOME, AND MINORITY POPULATIONS, COMMUNITY SURVEYS AND FOCUS GROUPS. SENIOR LEADERSHIP AT EACH HOSPITAL, AT THE HEALTH SYSTEM, AND THE MHS BOARD'S COMMUNITY BENEFIT COMMITTEE HELPED OVERSEE THE CHNA PROCESS, AND THE CHNA PRIORITIES AND IMPLEMENTATION STRATEGIES WERE APPROVED BY EACH HOSPITAL'S BOARD. PRIORITIES IDENTIFIED ARE: MMC/SANGAMON COUNTY: ACCESS TO CARE, MENTAL HEALTH, SUBSTANCE ABUSE AND MOTHER/INFANT HEALTH; PASSAVANT AREA HOSPITAL/MORGAN COUNTY: ACCESS TO CARE, MENTAL HEALTH; TAYLORVILLE MEMORIAL HOSPITAL/CHRISTIAN COUNTY: MENTAL HEALTH AND SUBSTANCE ABUSE; AND ABRAHAM LINCOLN MEMORIAL HOSPITAL/LOGAN COUNTY: OBESITY, MENTAL HEALTH, SUBSTANCE ABUSE AND CANCER. TO CONTINUE TO IMPROVE THE ORGANIZATION'S POPULATION HEALTH, CHRONIC DISEASE MANAGEMENT AND CARE COORDINATION CAPABILITIES AND INFRASTRUCTURE, A MEMORIAL AMBULATORY HEALTH STRATEGIC PLAN IS IN PLACE TO IMPROVE INFORMATION SHARING TO BETTER COORDINATE CARE ACROSS MULTIPLE SITES OF CARE. THIS PLAN LAYS OUT A ROAD MAP FOR BETTER COORDINATING THE CARE PROVIDED BY OUR MENTAL HEALTH AFFILIATE, HOME SERVICES, HOSPICE, PRIMARY CARE PHYSICIAN OFFICES, DURABLE MEDICAL EQUIPMENT COMPANY, EXPRESSCARE CLINICS, MEMORIAL WEIGHT LOSS AND WELLNESS PROGRAM AND MEMORIAL CARE COORDINATION SERVICES. THE FOCUS OF THE PLAN IS TO STRENGTHEN OUR DATA AND WORKFLOWS AROUND THE POPULATION HEALTH BUILDING BLOCKS OF PHYSICIAN LEADERSHIP, WELLNESS AND PREVENTION, CLINICAL PROTOCOLS, CHRONIC DISEASE MANAGEMENT, POPULATION TARGETING, NETWORK MANAGEMENT, UTILIZATION MANAGEMENT, CARE MAP ADHERENCE, CARE MANAGEMENT, OUTREACH AND PATIENT ENGAGEMENT. OTHER KEY SUCCESSES THIS YEAR DIRECTLY RELATED TO STRONG LEADERSHIP INCLUDE RETENTION OF THE MHS BOND RATING FROM MOODY'S INVESTOR SERVICES OF A1 WITH A STABLE OUTLOOK AS WELL AS RETAINING STANDARD & POOR'S RATING OF AA- WITH A STABLE OUTLOOK. MHS EMPLOYEE ENGAGEMENT SCORES AT THE 94TH PERCENTILE OF THE NATIONAL COMPARISON GROUP AND POSITIVE CAHPS SATISFACTION SCORES AT ALL MHS HOSPITALS, MEMORIAL PHYSICIAN SERVICES (MPS) AND MEMORIAL HOME SERVICES. THE ONGOING SUCCESS OF OUR MHS' GREAT PATIENT EXPERIENCE INITIATIVE RESULTED IN 14 OF OUR 24 PATIENT SATISFACTION SURVEYS ACROSS THE HEALTH SYSTEM SCORING AT OR ABOVE THE 75TH PERCENTILE OF THEIR RESPECTIVE NATIONAL PEER GROUPS. SENIOR LEADERSHIP TEAM ALSO LED A SYSTEM-WIDE "STRENGTHEN OUR FUTURE" INITIATIVE TO IMPROVE PROCESSES AND REDUCE COSTS WHILE IMPROVING QUALITY FOR PATIENTS. THROUGH THIS INITIATIVE, COSTS WERE REDUCED BY $38.3 MILLION IN FY18. PART IV, LINE 24A ONE SCHEDULE K WAS COMPLETED AT THE PARENT (MEMORIAL HEALTH SYSTEM) LEVEL ONLY. MEMORIAL HEALTH SYSTEM IS SHOWING THE ENTIRE LIABILITY ON THE BALANCE SHEET WITH AN INTERCOMPANY DEBT FROM RELATED ENTITIES, AS CAN BE SEEN ON SCHEDULE D. FORM 990, PART VI, SECTION A, LINE 2 MEMORIAL HEALTH SYSTEM BOARD MEMBERS RICHARD LEVI AND SERGIO PECORI HAVE A BUSINESS RELATIONSHIP. MEMORIAL HEALTH SYSTEM BOARD MEMBER NINA HARRIS AND KEY EMPLOYEE MITCHELL JOHNSON HAVE A BUSINESS RELATIONSHIP. MEMORIAL HEALTH SYSTEM BOARD MEMBERS TODD WISE AND DIANE RUTLEDGE HAVE A BUSINESS RELATIONSHIP. FORM 990, PART VI, SECTION A, LINE 6 THE CORPORATION CONTAINS 102 INDIVIDUAL MEMBERS WHO ELECT THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7A THE INDIVIDUAL MEMBERS OF THE CORPORATION HAVE THE POWER AND AUTHORITY TO ELECT THE CORPORATION'S BOARD OF DIRECTORS, AS WELL AS THE POWER AND AUTHORITY TO REMOVE MEMBER ELECTED DIRECTORS. FORM 990, PART VI, SECTION B, LINE 11B A FINAL DRAFT COPY OF THE MHS FORM 990 AND ALL ATTACHMENTS IS PROVIDED TO ALL OF THE MEMORIAL HEALTH SYSTEM BOARD OF DIRECTORS AND A BOARD COMMITTEE PRIOR TO FILING. ALL QUESTIONS AND COMMENTS ARISING FROM THESE REVIEWS ARE ADDRESSED PRIOR TO SUBMISSION OF THE RETURN TO THE APPROPRIATE TAXING AUTHORITIES. FORM 990, PART VI, SECTION B, LINE 12C ALL OFFICERS, DIRECTORS AND KEY EMPLOYEES OF THE CORPORATION ARE REQUIRED TO ANNUALLY REVIEW THE CONFLICT OF INTEREST POLICY AND COMPLETE A SPECIFIC DISCLOSURE STATEMENT WHICH IS ATTACHED TO THE POLICY. MEMORIAL HEALTH SYSTEM MONITORS AND ENFORCES ITS CONFLICT OF INTEREST POLICY BY IDENTIFYING ANY POTENTIAL CONFLICTS AT THE TIME EACH MEETING AGENDA IS PREPARED. ANY OFFICER OR DIRECTOR WHO HAS A CONFLICT IS NOTIFIED OF SUCH CONFLICT, AS WELL AS THEIR OBLIGATION TO ABSTAIN FROM THE DISCUSSION AND VOTE ON ANY CONFLICTED ISSUES(S). SUCH ABSTENTION(S), IF REQUIRED, ARE DOCUMENTED IN THE MINUTES OF EACH MEETING. BOARD MEMBERS ARE ALSO REQUIRED TO UPDATE THEIR CONFLICT OF INTEREST DISCLOSURE STATEMENTS PROMPTLY IN THE EVENT OF ANY CHANGE IN PERSONAL OR BUSINESS ACTIVITIES THAT WOULD REQUIRE SUCH DISCLOSURE. FORM 990, PART VI, SECTION B, LINE 15 THE MEMORIAL HEALTH SYSTEM BOARD OF DIRECTORS HAS APPOINTED A LEADERSHIP COMPENSATION COMMITTEE MADE UP OF PAST AND PRESENT INDEPENDENT MEMBERS OF THE BOARD OF DIRECTORS, AND HAS DELEGATED TO IT THE RESPONSIBILITY OF ADMINISTERING, OVERSEEING AND APPROVING ALL FORMS OF COMPENSATION AND BENEFITS PROVIDED TO EXECUTIVE LEADERSHIP, INCLUDING THE CHIEF EXECUTIVE OFFICER AND THE CHIEF FINANCIAL OFFICER AND OTHER SENIOR VICE PRESIDENTS, WHO ARE KEY EMPLOYEES. THE BOARD HAS ADOPTED A LEADERSHIP COMPENSATION PHILOSOPHY STATEMENT DESCRIBING THE ROLE AND RESPONSIBILITIES OF THE COMMITTEE. THIS PHILOSOPHY EXPRESSLY STATES THE COMMITTEE'S INTENT, ON BEHALF OF THE CORPORATION, TO TAKE ALL THE STEPS NECESSARY TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE FEDERAL INCOME TAX LAW INTERMEDIATE SANCTIONS RULES. THE COMMITTEE ANALYZES EVERY ELEMENT OF COMPENSATION (INCLUDING CURRENT, INCENTIVE AND DEFERRED COMPENSATION) AND BENEFITS (INCLUDING QUALIFIED AND NON-QUALIFIED BENEFITS). THE COMMITTEE CONDUCTS ITS REVIEW AND APPROVAL PROCESS AT LEAST ANNUALLY, AND APPROVES COMPENSATION AND BENEFITS ONLY TO THE EXTENT THAT THE COMMITTEE HAS CONCLUDED THAT THE COMPENSATION AND BENEFITS CONSTITUTE NO MORE THAN REASONABLE COMPENSATION FOR EACH EXECUTIVE. IN CONNECTION WITH THE MOST RECENT REVIEW AND APPROVAL PROCESS, THE COMMITTEE RECEIVED PROFESSIONAL ADVICE FROM AN INDEPENDENT CONSULTANT AND OUTSIDE LEGAL COUNSEL. THE COMMITTEE CONSISTS ENTIRELY OF PAST AND PRESENT DISINTEREST MEMBERS OF THE BOARD OR DISINTERESTED COMMITTEE MEMBERS WHO UNDER STATE CORPORATE LAW MAY SERVE ON SUCH A COMMITTEE. THE COMMITTEE WORKS WITH ITS COMPENSATION CONSULTANT TO PREPARE AND REVIEW IN ADVANCE COMPREHENSIVE DATA SHOWING THE COMPENSATION PROVIDED BY SIMILARLY SITUATE ORGANIZATIONS FOR FUNCTIONALLY SIMILAR POSITIONS. THE COMMITTEE ALSO PREPARES A TIMELY AND THOROUGH WRITTEN RECORD OF ITS PROCEDURAL CRITERIA NECESSARY TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE FEDERAL INCOME TAX LAW INTERMEDIATE SANCTIONS RULES. FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS OF MEMORIAL HEALTH SYSTEM, SUCH AS ARTICLES OF INCORPORATION AND ANY AMENDMENTS THERETO, ARE AVAILABLE TO THE GENERAL PUBLIC THROUGH THE ILLINOIS SECRETARY OF STATE'S OFFICE. THESE GOVERNING DOCUMENTS, AS WELL AS THE BYLAWS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS, ARE AVAILABLE UPON REQUEST FROM THE CORPORATION. THESE DOCUMENTS ARE AVAILABLE FOR THE SAME PERIOD OF TIME AS SET FORTH IN IRC SECTION 6104(D). PART VII COMPENSATION REPORTED FOR CERTAIN INDIVIDUALS ARE BASED ON THE EMPLOYER WHO ISSUED PAYMENT. HOURS ARE REPORTED TO REFLECT AVERAGE HOURS IN THEIR OPERATIONAL ROLE. PART VIII, COLUMN (C) DUE TO THE ENACTMENT OF IRC SECTION 512(A)(7) THERE IS A DISCREPANCY BETWEEN FORM 990, PART VIII, COLUMN C AND FORM 990-T, LINE 13. FORM 990-T HAS A GREATER AMOUNT OF UNRELATED BUSINESS INCOME DUE TO THE INCLUSION OF DISALLOWED QUALIFIED TRANSPORTATION FRINGE BENEFITS ON FORM 990-T, LINE 12. FORM 990, PART XI, LINE 9: NONOPERATING RECONCILING ITEMS -4,712,388. CHANGE IN UNRESTRICTED NET ASSETS 9,073,211. RELATED PARTNERSHIP BOOK/TAX DIFF 135,264. MEMORIAL HEALTH PARTNERS LLC 701 NORTH 1ST STREET SPRINGFIELD IL 62781 463947269 TO COORDINATE PATIENT CARE ACTIVITIES ACROSS THE HEALTHCARE CONTINUUM IL 3373181 3256944 MEMORIAL HEALTH SYSTEM MHS QALICB LLC 701 NORTH 1ST STREET SPRINGFIELD IL 62781 475644450 TO FACILITATE NEW MARKETS TAX CREDITS TRANSACTIONS RELATED TO SIU IL 1885111 20010005 MEMORIAL HEALTH SYSTEM MCDEKK LLC 701 NORTH 1ST STREET SPRINGFIELD IL 62781 822701739 TO FACILITATE FACTORING OF RECEIVABLES IL 0 410221 MEMORIAL HEALTH SYSTEM MEMORIAL MEDICAL CENTER 701 NORTH FIRST ST SPRINGFIELD IL 627810001 370661220 HOSPITAL SERVICES IL 501(C)(3) LINE 3 MEMORIAL HEALTH SYSTEM 1 MEMORIAL HEALTH VENTURES 701 NORTH FIRST ST SPRINGFIELD IL 627810001 363492266 HEALTHCARE ACTIVITIES IL 501(C)(3) LINE 10 MEMORIAL HEALTH SYSTEM 1 ABRAHAM LINCOLN MEMORIAL HOSPITAL 200 STAHLHUT DR LINCOLN IL 62656 370723793 HOSPITAL SERVICES IL 501(C)(3) LINE 3 MEMORIAL HEALTH SYSTEM 1 TAYLORVILLE MEMORIAL HOSPITAL 201 EAST PLEASANT TAYLORVILLE IL 62568 370661250 HOSPITAL SERVICES IL 501(C)(3) LINE 3 MEMORIAL HEALTH SYSTEM 1 MEMORIAL HOME SERVICES 720 NORTH BOND ST SPRINGFIELD IL 627024915 370714225 HOME HEALTH, HOSPICE, AND CONTINUOUS CARE SERVICES IL 501(C)(3) LINE 7 MEMORIAL HEALTH SYSTEM 1 MEMORIAL PHYSICIAN SERVICES 701 NORTH FIRST ST SPRINGFIELD IL 627810001 371181194 HEALTH CLINICS IL 501(C)(3) LINE 10 MEMORIAL HEALTH SYSTEM 1 MEMORIAL MEDICAL CENTER FOUNDATION 701 NORTH FIRST ST SPRINGFIELD IL 62781 371110301 GRANTS TO HOSPITALS, OTHER CHARITABLE ORGANIZATIONS, AND SCHOLARSHIPS IL 501(C)(3) LINE 7 MEMORIAL MEDICAL CENTER 1 TAYLORVILLE MEMORIAL HOSPITAL FOUNDATION 201 EAST PLEASANT TAYLORVILLE IL 62568 371337485 GRANTS TO OTHER CHARITABLE ORGANIZATIONS AND HOSPITALS IL 501(C)(3) LINE 7 TAYLORVILLE MEMORIAL HOSPITAL 1 MENTAL HEALTH CENTERS OF CENTRAL ILLINOIS 710 NORTH EIGHTH ST SPRINGFIELD IL 627026395 370646367 TRAINING, PSYCHIATRIC, AND RESIDENT SERVICES FOR MENTALLY ILL AND DISABLED IL 501(C)(3) LINE 7 MEMORIAL HEALTH SYSTEM 1 ABRAHAM LINCOLN HEALTHCARE FOUNDATION 200 STAHLHUT DR LINCOLN IL 62656 363492268 GRANTS TO OTHER CHARITABLE ORGANIZATIONS AND HOSPITALS IL 501(C)(3) LINE 7 MEMORIAL HEALTH SYSTEM 1 SPRINGFIELD RESIDENTIAL SERVICES 710 NORTH EIGHTH ST SPRINGFIELD IL 62702 371298589 RESIDENTIAL HUD HOUSING PROJECT FOR MENTALLY ILL IL 501(C)(3) LINE 7 MENTAL HEALTH CENTERS OF CENTRAL ILLINOIS 1 PASSAVANT MEMORIAL AREA HOSPITAL ASSOCIATION 1600 WEST WALNUT JACKSONVILLE IL 62650 370661230 HOSPITAL SERVICES IL 501(C)(3) LINE 3 MEMORIAL HEALTH SYSTEM 1 PASSAVANT AREA HOSPITAL FOUNDATION 1600 WEST WALNUT JACKSONVILLE IL 62650 461037396 GRANTS TO OTHER CHARITABLE ORGANIZATIONS AND HOSPITALS IL 501(C)(3) LINE 7 PASSAVANT MEM AREA HOSPITAL ASSOCIATION 1 JACKSONVILLE CRNA'S INC 1600 WEST WALNUT JACKSONVILLE IL 62650 273083265 CRNA SERVICES IL 501(C)(3) LINE 10 PASSAVANT MEM AREA HOSPITAL ASSOCIATION 1 MEMORIAL HOME SERVICES OF CENTRAL ILLINOIS INC 701 NORTH FIRST ST SPRINGFIELD IL 62781 371190216 PROVIDE DURABLE MEDICAL EQUIPMENT AND SUPPLIES TO PATIENTS IL N/A C 1 PASSAVANT PHYSICIAN ASSOCIATION 1600 WEST WALNUT JACKSONVILLE IL 62650 261200566 PHYSICIAN SERVICES IL N/A C 1 1 1 1 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 0 MEMORIAL MEDICAL CENTER A 4296993 FMV MEMORIAL PHYSICIAN SERVICES A 2840506 FMV MEMORIAL PHYSICIAN SERVICES B 18519834 FMV MENTAL HEALTH CENTERS OF CENTRAL ILLINOIS B 225000 FMV MEMORIAL HEALTH VENTURES C 1200000 FMV TAYLORVILLE MEMORIAL HOSPTIAL B 204999 FMV MEMORIAL MEDICAL CENTER C 23499026 FMV MEMORIAL MEDICAL CENTER J 4296993 FMV MEMORIAL PHYSICIAN SERVICES J 2840506 FMV MEMORIAL MEDICAL CENTER K 247861 FMV MEMORIAL MEDICAL CENTER M 807517 FMV TAYLORVILLE MEMORIAL HOSPTIAL M 65498 FMV MEMORIAL MEDICAL CENTER O 160414 FMV MEMORIAL PHYSICIAN SERVICES O 2337143 FMV ABRAHAM LINCOLN MEMORIAL HOSPITAL O 478883 FMV TAYLORVILLE MEMORIAL HOSPTIAL O 283898 FMV PASSAVANT AREA HOSPTIAL O 536739 FMV MENTAL HEALTH CENTERS OF CENTRAL ILLINOIS O 680230 FMV MEMORIAL MEDICAL CENTER P 67359301 FMV MEMORIAL PHYSICIAN SERVICES P 4360660 FMV MEMORIAL MEDICAL CENTER Q 59886421 FMV MEMORIAL HOME SERVICES Q 64977 FMV MENTAL HEALTH CENTERS OF CENTRAL ILLINOIS Q 63696 FMV MEMORIAL PHYSICIAN SERVICES Q 8315914 FMV ABRAHAM LINCOLN MEMORIAL HOSPITAL Q 2608636 FMV TAYLORVILLE MEMORIAL HOSPTIAL Q 2542324 FMV PASSAVANT AREA HOSPTIAL Q 648903 FMV MEMORIAL HOME SERIVCES Q 1233242 FMV MEMORIAL MEDICAL CENTER L 46054537 FMV ABRAHAM LINCOLN MEMORIAL HOSPITAL L 1299999 FMV TAYLORVILLE MEMORIAL HOSPTIAL L 1220764 FMV MEMORIAL PHYSICIAN SERVICES L 5403854 FMV MENTAL HEALTH CENTERS OF CENTRAL ILLINOIS L 688109 FMV MEMORIAL HOME SERVICES L 624740 FMV PASSAVANT AREA HOSPTIAL L 2000928 FMV MEMORIAL MEDICAL CENTER N 1777019 FMV MEMORIAL PHYSICIAN SERVICES N 755577 FMV MEMORIAL MEDICAL CENTER I 7212771 FMV MEMORIAL PHYSICIAN SERVICES I 764057 FMV ABRAHAM LINCOLN MEMORIAL HOSPITAL I 292238 FMV TAYLORVILLE MEMORIAL HOSPTIAL I 332761 FMV PASSAVANT AREA HOSPTIAL I 641674 FMV MEMORIAL MEDICAL CENTER R 6892491 FMV MEMORIAL PHYSICIAN SERVICES R 738672 FMV ABRAHAM LINCOLN MEMORIAL HOSPITAL R 283193 FMV TAYLORVILLE MEMORIAL HOSPTIAL R 321563 FMV PASSAVANT AREA HOSPTIAL R 621738 FMV SCHEDULE R, PART V, LINE 2 MEMORIAL HEALTH SYSTEM COLLECTED RENTAL INCOME FROM AFFILIATES DURING THE FISCAL YEAR ENDED SEPTEMBER 30, 2018. THE VALUES LISTED IN SCHEDULE R, PART V, LINE 2 WERE DETERMINED USING FAIR MARKET VALUE.