2018-05-11T09:09:35-05:00 2017-06-30 KPMG LLP 1676 INTERNATIONAL DRIVE McLean VA 22102 990 2016-07-01 521542230 HH Medstar Health Inc % JOEL BRYAN HHME 4107726721 10980 Grantchester Way Columbia MD 21044 JOEL BRYAN VP/TREASURER 4017726721 2018-05-10 true JG WHITE P01498698 7032868000 2018-05-10 2016 2022-09-23 18:48:47Z Kenneth Samet 10980 Grantchester Way Columbia MD 21044 506742182 false X N/A X 1987 MD PLAN, DEVELOP, COORDINATE, DIRECT AND MANAGE AN INTEGRATED HEALTHCARE SYSTEM. 4 0 1900 0 0 0 21853 1773 436733965 503261383 0 0 9160613 3479026 445916431 506742182 0 0 0 0 277415855 358017426 0 0 0 207278126 210617836 484693981 568635262 -38777550 -61893080 142092689 144962655 440086474 443158001 -297993785 -298195346 X SEE SCHEDULE O false false 322889530 503261383 HH MEDSTAR HEALTH, INC.'S LARGEST PROGRAM SERVICE IS TO PROVIDE MANAGEMENT AND SUPPORT TO MEDSTAR HEALTH, INC. AND ITS AFFILIATED ENTITIES. IN ADDITION TO THE PROGRAM SERVICE EXPENSES LISTED ABOVE, HH MEDSTAR HEALTH INCURRED $245.7M OF MANAGEMENT AND GENERAL EXPENSES IN PROVIDING MANAGEMENT AND SUPPORT TO ITS AFFILIATED ENTITIES. THE PROGRAM SERVICE EXPENSES INCURRED BY THE ORGANIZATION RELATE TO CORPORATE SERVICE FUNCTIONS INCLUDING FINANCIAL SERVICES AND INFORMATION SYSTEMS. HH MEDSTAR HEALTH, INC. PROVIDES PHYSICIAN SERVICES THROUGH ITS PHYSICIAN PRACTICES TO MEDSTAR HEALTH, INC. AND ITS AFFILIATED ENTITIES. THESE PHYSICIAN PRACTICES SERVE AS PHYSICIAN PRACTICES TO EACH OF THE HOSPITALS (WHICH ARE INCLUDED IN HH MEDSTAR HEALTH INC.'S SUPPORTED ORGANIZATIONS) IN THE MEDSTAR HEALTH INTEGRATED HEALTH CARE SYSTEM. 322889530 true false false false false false false false false false true false false false true true false true false false false false false false false false false false false true false false false false false false false false false false false false true true true true false false true 130 0 true 1900 true false false false false false false false false false false false X 4 0 false false false false true true true true true false false true true true true true true true true false X JOEL BRYAN 4107726721 10980 GRANTCHESTER WAY COLUMBIA MD 21044 X KENNETH A SAMET PRESIDENT/CEO 1.0 39.0 X X 0 7675042 76815 MICHAEL J CURRAN CFO/DIRECTOR 1.0 39.0 X X 0 3147926 45358 ERIC R WAGNER VICE PRESIDENT/DIRECTOR 1.0 39.0 X X 0 1551712 57963 STEPHEN RT EVANS MD DIRECTOR 1.0 39.0 X 0 1725638 55398 DAVID P NOE VICE PRESIDENT 1.0 39.0 X 0 716617 35372 OLIVER M JOHNSON VP/SECRETARY 1.0 39.0 X 0 1213946 35355 Rich Goldberg PHYSICIAN 40.0 0.0 X 1340048 0 46168 Atul Shah PHYSICIAN 40.0 0.0 X 1406694 0 9368 Anil Shah PHYSICIAN 40.0 0.0 X 1402701 0 9545 Minal Shah PHYSICIAN 40.0 0.0 X 1051538 0 9529 Amish Shah PHYSICIAN 40.0 0.0 X 1048198 0 9545 Alex Ryzhikov PHYSICIAN 40.0 0.0 X 930365 0 9545 WILLIAM L THOMAS MD FORMER OFFICER 0.0 0.0 X 0 245950 0 7179544 16276831 399961 445 true true false CERNER CORPORATION PO BOX 412702 KANSAS CITY MO 641412702 Medical Services 41743851 DELL MARKETING LP PO BOX 802816 CHICAGO IL 606802816 IT services 40923697 TEK SYSTEMS 7437 Race Road HANOVER MD 21076 Staffing services 4936177 GOODELL DEVRIES LEECH DANN One South Street 20th Floor BALTIMORE MD 21202 Legal Services 3037545 FIRST CHOICE PROFESSIONALS LLC 6501 E Greenway Parkway Suite 103 SCOTTSDALE AZ 85254 CONSULTING/MGMT SVCS 2821947 106 1773 1773 MANAGEMENT FEES 900099 229015518 229015518 NET PATIENT SERVICE REVENUE 621400 270283473 270283473 OTHER PHYSICIAN REVENUE 621400 2880339 2880339 PREMIUM REVENUE - CAPITATION 900099 576547 576547 MEANINGFUL USE INCOME 900099 505506 505506 503261383 0 0 0 34414 34414 0 34414 34414 0 0 0 0 0 0 0 0 0 0 0 SUBSIDY REVENUE - INTERCOMPANY 900099 5295797 5295797 REBATE INCOME 900099 369373 369373 MISCELLANEOUS REVENUE 900099 -2220558 -2220558 3444612 506742182 503261383 0 3479026 0 0 0 0 1386216 930095 456121 0 312428246 212445500 99982746 4298329 2390865 1907464 24525821 10033353 14492468 15378814 9255194 6123620 13358371 2448117 10910254 28929 27000 1929 0 0 0 0 52431710 21181758 31249952 1938317 575781 1362536 9848254 6706842 3141412 12730187 3272 12726915 0 14355170 8697992 5657178 2190851 1364975 825876 0 356739 221420 135319 996630 996630 0 10029891 6547519 3482372 3966133 3995669 -29536 MAINTENANCE 52330239 3000988 49329251 MED/SURG SUPPLIES 21612040 21686972 -74932 UTILITIES 8622346 2850275 5772071 FOOD SERVICES/SUPPLIES 244882 84951 159931 5577147 7444362 -1867215 568635262 322889530 245745732 0 4232607 6844594 0 0 0 0 29044039 34151370 0 0 0 0 505254 96068 1146118 1443516 18051693 23859090 99128495 21983309 87294693 77145186 0 0 0 0 0 0 1367149 969764 451136 453067 142092689 144962655 132406318 148884710 0 0 2773335 2863758 0 0 0 0 0 0 0 0 0 0 304906821 291409533 440086474 443158001 X -297993785 -298195346 0 0 0 0 -297993785 -298195346 142092689 144962655 X -61893080 61691519 X false true X true false X X 23 BAY LIFE SERVICES 521496539 10 true 0 0 FRANKLIN SQUARE HOSPITAL CENTER INC 520608007 3 true 0 0 GOOD SAMARITAN NURSING CENTER INCORPORATED 521672866 10 true 0 0 GS HOUSING INCORPORATED 521481656 10 true 0 0 HARBOR HOSPITAL INC 520491660 3 true 0 0 THE MEDSTAR-GEORGETOWN MEDICAL CENTER INC 522218584 3 true 0 0 MEDSTAR HEALTH INFUSION INC 521980510 10 true 0 0 MEDSTAR HEALTH RESEARCH INSTITUTE INC 526056274 4 true 0 0 MEDSTAR HEALTH VISITING NURSES ASSOCIATION INC 530196597 3 true 0 0 MEDSTAR SOUTHERN MARYLAND HOSPITAL CENTER INC 460726303 3 true 0 0 MEDSTAR SURGERY CENTER INC 521061679 10 true 0 0 MEDSTAR VNA HEALTHCARE INC 521458516 10 true 0 0 MGH COMMUNITY HEALTH INC 521372467 10 true 0 0 MGH HEALTH FOUNDATION INC 521129959 7 true 0 0 MONTGOMERY GENERAL HOSPITAL INC 520646893 3 true 0 0 NATIONAL REHABILITATION HOSPITAL INC 521369749 3 true 0 0 NRH REGIONAL REHAB AT OLNEY INC 522310902 3 true 0 0 ST MARY'S HOSPITAL OF ST MARY'S COUNTY INC 520619006 3 true 0 0 SUBURBANNRH MEDICAL REHABILITATION INC 521931151 3 true 0 0 THE UNION MEMORIAL HOSPITAL 520591685 3 true 0 0 THE GOOD SAMARITAN HOSPITAL OF MARYLAND INC 520591607 3 true 0 0 WASHINGTON HOSPITAL CENTER CORPORATION 521272129 3 true 0 0 WOODBOURNE WOODS INC 522299070 10 true 0 0 23 0 0 true false false false false false false false false false false false false false false true true true X true true SCHEDULE A, PART I, LINE 11G OTHER SUPPORT THE EXPENSES INCURRED BY HH MEDSTAR HEALTH, INC. THAT ARE REPORTED ON FORM 990, PART IX WERE EXPENDED TO PROVIDE SUPPORT AND MANAGEMENT SERVICES TO ITS SUPPORTED ORGANIZATIONS. SCHEDULE A, PART IV, SECTION D, LINE 3 THE OFFICERS/DIRECTORS OF THE SUPPORTED ORGANIZATIONS HAVE A CLOSE AND CONTINUOUS RELATIONSHIP WITH HH MEDSTAR HEALTH, INC., AND THUS A SIGNIFICANT VOICE. KEN SAMET, THE PRESIDENT/CEO OF HH MEDSTAR HEALTH, INC., SERVES ON THE BOARD OF DIRECTORS OF MANY OF HH MEDSTAR HEALTH INC.'S SUPPORTED ORGANIZATIONS. BECAUSE OF THIS, THE SUPPORTED ORGANIZATIONS ARE ABLE TO HAVE A SIGNIFICANT VOICE IN THE INVESTMENT POLICIES OF HH MEDSTAR HEALTH AND IN DIRECTING THE USE OF ITS INCOME AND ASSETS. SCHEDULE A, PART IV, SECTION E, LINE 2A SUBSTANTIALLY ALL OF THE ACTIVITIES OF HH MEDSTAR HEALTH, INC. DIRECTLY FURTHER THE EXEMPT PURPOSES OF THE SUPPORTED ORGANIZATIONS LISTED. HH MEDSTAR HEALTH, INC. PROVIDES ADMINISTRATIVE AND MANAGEMENT SERVICES TO ITS SUPPORTED ORGANIZATIONS TO PROMOTE AN INTEGRATED HEALTH CARE SYSTEM. HH MEDSTAR HEALTH, INC. ALSO DIRECTLY FURTHERS THE EXEMPT PURPOSES OF ITS SUPPORTED ORGANIZATIONS BY PROVIDING PHYSICIAN SERVICES THROUGH ITS PHYSICIAN PRACTICES. HH MEDSTAR HEALTH, INC. IS RESPONSIVE TO ITS SUPPORTED ORGANIZATIONS WHEN PROVIDING THESE SERVICES. SUBSTANTIALLY ALL OF THE STAFFING AND FINANCIAL RESOURCES OF HH MEDSTAR HEALTH, INC. WERE DEDICATED TO ACTIVITIES THAT DIRECTLY FURTHER THE EXEMPT PURPOSES OF ITS SUPPORTED ORGANIZATIONS. SCHEDULE A, PART IV, SECTION E, LINE 2B HH MEDSTAR HEALTH, INC. PROVIDED ADMINISTRATIVE AND MANAGEMENT SUPPORT SERVICES TO ITS SUPPORTED ORGANIZATIONS INCLUDING FINANCIAL SERVICES AND INFORMATION SYSTEMS SERVICES. IF NOT FOR THE EXISTENCE OF HH MEDSTAR HEALTH, INC., THESE SUPPORTED ORGANIZATIONS WOULD PERFORM THESE SERVICES THEMSELVES. HOWEVER, IT IS MORE EFFICIENT TO PERFORM ALL OF THESE SERVICES AT THE SAME ORGANIZATION RATHER THAN AT 23 SEPARATE ORGANIZATIONS (THE SUPPORTED ORGANIZATIONS). HH MEDSTAR HEALTH, INC. PROVIDES PHYSICIAN SERVICES THROUGH BEING THE SOLE MEMBER OF A NUMBER OF SINGLE-MEMBER LLC PHYSICIAN PRACTICES. THESE PHYSICIAN PRACTICES SERVE AS PHYSICIAN PRACTICES TO EACH OF THE HOSPITALS (WHICH ARE INCLUDED IN HH MEDSTAR HEALTH INC.'S SUPPORTED ORGANIZATIONS) IN THE MEDSTAR HEALTH INTEGRATED HEALTH CARE SYSTEM. IF NOT FOR THE EXISTENCE OF HH MEDSTAR HEALTH, INC., ITS SUPPORTED ORGANIZATIONS COULD OWN THESE PHYSICIAN PRACTICES THEMSELVES. HOWEVER, IT IS MORE EFFICIENT TO PERFORM THESE PHYSICIAN SERVICES UNDERNEATH A SINGLE ORGANIZATION'S OWNERSHIP (HH MEDSTAR HEALTH, INC.) RATHER THAN AT MULTIPLE SEPARATE ORGANIZATIONS (THE SUPPORTED ORGANIZATIONS). 53926 53926 15817 3131 12684 10244287 3343452 6900835 33789337 13179339 20609998 55025128 5457385 49567743 77145186 0 PENSION LIABILITY 213266143 INTERCOMPANY PAYABLES 57129617 CAPITAL LEASE LIABILITY 16703717 CREDIT PATIENT BALANCES A/R 3474473 STOCK OPTION PLAN 357474 WORKERS COMP LIABILITY 169581 OTHER LIABILITIES 308528 291409533 X FIN 48 FOOTNOTE SCHEDULE D, PART X INCOME TAXES ARE ACCOUNTED FOR UNDER THE ASSET AND LIABILITY METHOD. DEFERRED TAX ASSETS AND LIABILITIES ARE RECOGNIZED FOR THE FUTURE TAX CONSEQUENCES ATTRIBUTABLE TO DIFFERENCES BETWEEN THE FINANCIAL STATEMENT CARRYING AMOUNTS OF EXISTING ASSETS AND LIABILITIES AND THEIR RESPECTIVE TAX BASES AND OPERATING LOSS AND TAX CREDIT CARRYFORWARDS. DEFERRED TAX ASSETS AND LIABILITIES ARE MEASURED USING ENACTED TAX RATES EXPECTED TO APPLY TO TAXABLE INCOME IN THE YEARS IN WHICH THOSE TEMPORARY DIFFERENCES ARE EXPECTED TO BE RECOVERED OR SETTLED. THE EFFECT ON DEFERRED TAX ASSETS AND LIABILITIES OF A CHANGE IN TAX RATES IS RECOGNIZED IN THE PERIOD THAT INCLUDES THE ENACTMENT DATE. ANY CHANGES TO THE VALUATION ALLOWANCE ON THE DEFERRED TAX ASSET ARE REFLECTED IN THE YEAR OF CHANGE. THE CORPORATION ACCOUNTS FOR UNCERTAIN TAX POSITIONS IN ACCORDANCE WITH THE FASB ACCOUNTING STANDARDS CODIFICATION (ASC) TOPIC 740, INCOME TAXES. THERE WAS NO LIABILITY RECORDED FOR UNCERTAIN TAX POSITIONS AS OF JUNE 30, 2017. X X X X X X false false false false false false false false false KENNETH A SAMET PRESIDENT/CEO 0 1739872 0 3775374 0 2159796 0 47768 0 29047 0 7751857 0 0 MICHAEL J CURRAN CFO/DIRECTOR 0 1138911 0 2009015 0 0 0 14241 0 31117 0 3193284 0 0 ERIC R WAGNER VICE PRESIDENT/DIRECTOR 0 756335 0 795377 0 0 0 26397 0 31566 0 1609675 0 0 WILLIAM L THOMAS MD FORMER OFFICER 0 0 0 0 0 245950 0 0 0 0 0 245950 0 0 STEPHEN RT EVANS MD DIRECTOR 0 814196 0 911442 0 0 0 16430 0 38968 0 1781036 0 0 DAVID P NOE VICE PRESIDENT 0 401677 0 314940 0 0 0 17192 0 18180 0 751989 0 0 OLIVER M JOHNSON VP/SECRETARY 0 568884 0 645062 0 0 0 7950 0 27405 0 1249301 0 0 Rich Goldberg PHYSICIAN 693641 0 646407 0 0 0 21757 0 24411 0 1386216 0 0 0 Atul Shah PHYSICIAN 448953 0 949525 0 8216 0 7950 0 1418 0 1416062 0 0 0 Anil Shah PHYSICIAN 441232 0 953248 0 8221 0 7950 0 1595 0 1412246 0 0 0 Minal Shah PHYSICIAN 394963 0 648036 0 8539 0 7950 0 1579 0 1061067 0 0 0 Amish Shah PHYSICIAN 436439 0 603538 0 8221 0 7950 0 1595 0 1057743 0 0 0 Alex Ryzhikov PHYSICIAN 423554 0 501738 0 5073 0 7950 0 1595 0 939910 0 0 0 SCHEDULE J, PART III Messrs. Samet and Curran's compensation in Part II, Column (B) includes $3,752,690 and $967,297 respectively, representing benefits received from executive retirement plans that are comprised of target benefits determined annually based on compensation and years of service and long-term retention arrangements. FORM 990, PART III, LINE 1 - ORGANIZATION'S MISSION THE MISSION OF MEDSTAR HEALTH, INC. (MEDSTAR) IS TO SERVE OUR PATIENTS, THOSE WHO CARE FOR THEM AND OUR COMMUNITIES. MEDSTAR IS THE CONTROLLING ENTITY OF AN INTEGRATED HEALTH SERVICES ORGANIZATION (THE SYSTEM) OFFERING A WIDE VARIETY OF HEALTHCARE SERVICES TO RESIDENTS OF MARYLAND AND THE WASHINGTON, D.C. REGION (COMPRISING BALTIMORE CITY, ELEVEN COUNTIES IN MARYLAND, THE DISTRICT OF COLUMBIA, AND NORTHERN VIRGINIA). MEDSTAR HEALTH IS THE REGIONS LARGEST HEALTH SYSTEM AND ONE OF THE LARGEST EMPLOYERS IN MARYLAND AND WASHINGTON, D.C., WITH APPROXIMATELY 31,200 ASSOCIATES AND APPROXIMATELY 6,400 AFFILIATED PHYSICIANS. THROUGH OUR HOSPITALS, OUTPATIENT FACILITIES, PHYSICIAN ORGANIZATIONS, AND OTHER HEALTH-RELATED ORGANIZATIONS, THE SYSTEM OFFERS A BROAD CONTINUUM OF HEALTHCARE SERVICES, INCLUDING PRIMARY CARE, ACUTE CARE (SECONDARY, TERTIARY AND QUATERNARY), EMERGENCY, TRAUMA AND URGENT CARE, ADULT BURN CARE, REHABILITATION (HOSPITAL-BASED AND OUTPATIENT), POST-ACUTE CARE, AMBULATORY SURGERY, HOME CARE, HEALTH PROMOTION AND WELLNESS, AND MEDICAL RESEARCH AND EDUCATION. THE SYSTEM OPERATES THE LARGEST HOME HEALTH BUSINESS IN THE REGION WITH APPROXIMATELY 294,500 VISITS IN FISCAL YEAR 2017. MEDSTAR FAMILY CHOICE, A MEDICARE AND MEDICAID MANAGED CARE COMPANY COVERED APPROXIMATELY 157,800 LIVES AS OF JUNE 30, 2017. THE SYSTEMS PHYSICIAN NETWORK INCLUDES APPROXIMATELY 2,000 EMPLOYED PHYSICIANS. THE SYSTEM OFFERS SPECIALIZED SERVICES THAT INCLUDE CANCER CARE, CARDIAC DISEASE TREATMENT (INCLUDING HEART TRANSPLANTATION), HAND SURGERY, MINIMALLY INVASIVE SURGERY, NEUROSCIENCES, MULTI-ORGAN TRANSPLANTATION, NEONATAL INTENSIVE CARE, ORTHOPAEDICS, SHOCK/TRAUMA, BURN CARE, AND STROKE CARE. MEDSTAR HEALTH RESEARCH INSTITUTE IS THE RESEARCH ARM FOR MEDSTAR, PROVIDING SCIENTIFIC, ADMINISTRATIVE, AND REGULATORY SUPPORT FOR RESEARCH PROGRAMS THAT COMPLEMENT THE KEY CLINICAL SERVICES AND TEACHING PROGRAMS IN ALL HOSPITALS ACROSS THE SYSTEM. MEDSTAR HAS ONE OF THE LARGEST GRADUATE MEDICAL EDUCATION PROGRAMS IN THE COUNTRY, TRAINING APPROXIMATELY 1,100 MEDICAL RESIDENTS AND FELLOWS ANNUALLY, AND IS THE MEDICAL EDUCATION AND CLINICAL PARTNER OF GEORGETOWN UNIVERSITY. IN FISCAL YEAR 2017, MEDSTAR HOSPITALS HAD APPROXIMATELY 176,500 INPATIENT ADMISSIONS AND OBSERVATION CASES, AND APPROXIMATELY 4,683,000 OUTPATIENT VISITS INCLUDING 501,600 EMERGENCY VISITS. ORGANIZATION MEMBERS PART VI, LINE 6 THE ORGANIZATION IS AN AFFILIATE AND SUBSIDIARY OF MEDSTAR HEALTH, INC., A TAX-EXEMPT MARYLAND NON-STOCK CORPORATION. MEDSTAR HEALTH, INC., OR ONE OF ITS AFFILIATES AND SUBSIDIARIES, IS THE SOLE MEMBER OF THE ORGANIZATION. DESCRIPTION OF MEMBERS PART VI, LINE 7A AS AN AFFILIATE AND SUBSIDIARY OF MEDSTAR HEALTH, INC., A TAX-EXEMPT MARYLAND NON-STOCK CORPORATION, THE ORGANIZATION MAY RECOMMEND PERSON(S) FOR MEMBERSHIP ON THE ORGANIZATION'S GOVERNING BODY. ANY SUCH RECOMMENDATION BY THE ORGANIZATION IS SUBJECT TO APPROVAL BY THE GOVERNANCE COMMITTEE OF THE BOARD OF DIRECTORS OF MEDSTAR HEALTH, INC. THE BOARD OF MEDSTAR HEALTH, INC. HAS DELEGATED CERTAIN APPROVAL AUTHORITY TO THE GOVERNANCE COMMITTEE AND THE PRESIDENT & CEO OF MEDSTAR HEALTH, INC. APPROVAL OF DECISIONS OF THE GOVERNING BODY PART VI, LINE 7B AS AN AFFILIATE AND SUBSIDIARY OF MEDSTAR HEALTH, INC., A TAX-EXEMPT MARYLAND NON-STOCK CORPORATION, THE BYLAWS OF THE ORGANIZATION ARE SUBJECT TO CERTAIN RESERVED POWERS, WHICH PROVIDE THAT THE SOLE MEMBER OF THE ORGANIZATION MUST APPROVE CERTAIN DECISIONS, INCLUDING BUT NOT LIMITED TO MATTERS CONCERNING THE SALE OR PURCHASE OF REAL OR PERSONAL PROPERTY, CAPITAL BUDGETS, STRATEGIC PLANNING, INVESTMENTS, AND CORPORATE GOVERNANCE. PROCESS FOR REVIEWING FORM 990 PART VI, LINE 11B THE PROCESS FOR REVIEWING THE FORM 990 INCLUDED EDUCATION AND TRANSPARENCY. SENIOR FINANCIAL EXECUTIVES, WORKING WITH INDEPENDENT OUTSIDE EXPERTS, THOROUGHLY REVIEWED FORM 990 AND ACCOMPANYING INSTRUCTIONS. IN ADDITION, SENIOR EXECUTIVES REVIEWED THE RELEVANT SECTIONS OF THE FORM 990 WITH THE FOLLOWING COMMITTEES OF THE ORGANIZATION'S GOVERNING BODY: FINANCE, AUDIT, GOVERNANCE, STRATEGIC PLANNING, AND EXECUTIVE COMPENSATION. FOLLOWING THESE MEETINGS, THE GOVERNING BODY WAS PROVIDED A COPY OF THE FORM 990 IN ITS FINAL FORM AND GIVEN AN OPPORTUNITY TO PROVIDE ANY INPUT OR COMMENTS RELATING TO THE FORM 990 PRIOR TO ITS FILING. CONFLICT OF INTEREST PART VI, LINE 12C POLICY APPOINTMENT OF BOARDS OF DIRECTORS MEDSTAR HEALTH (AND ITS SUBSIDIARIES) REQUIRE ALL NOMINATED DIRECTORS, PRIOR TO THEIR APPOINTMENT OR ELECTION, TO DISCLOSE THE EXISTENCE OF (OR POTENTIAL EXISTENCE OF) ANY TRANSACTION WITH MEDSTAR THAT WOULD RESULT IN A CONFLICT OF INTEREST. SUCH DISCLOSURES (IF ANY) ARE REVIEWED BY THE GOVERNANCE COMMITTEE OF THE MEDSTAR HEALTH BOARD OF DIRECTORS WHICH DETERMINES HOW THE MATTER SHOULD BE RESOLVED. ANNUAL DISCLOSURES - ALL OFFICERS, DIRECTORS, AND SENIOR MANAGERS ALL OFFICERS, DIRECTORS AND SENIOR MANAGERS ARE REQUIRED, NOT LESS THAN ANNUALLY, TO COMPLETE A SURVEY OF QUESTIONS CONCERNING ANY TRANSACTIONS OR RELATIONSHIPS WHICH WOULD OR COULD REPRESENT A CONFLICT OF INTEREST. SUCH DISCLOSURES (IF ANY) RELATED TO DIRECTORS ARE REVIEWED BY THE GOVERNANCE COMMITTEE OF THE MEDSTAR HEALTH BOARD OF DIRECTORS WHICH DETERMINES HOW THE MATTER SHOULD BE RESOLVED. SUCH DISCLOSURES (IF ANY) RELATED TO OFFICERS AND SENIOR MANAGERS ARE REVIEWED BY AN APPROPRIATE EXECUTIVE WHO DETERMINES HOW THE MATTER SHOULD BE RESOLVED. IN ADDITION, OFFICERS AND DIRECTORS OF MARYLAND HOSPITALS AND NURSING CENTERS ARE REQUIRED TO ANNUALLY DISCLOSE ADDITIONAL INFORMATION RELATING TO POTENTIAL CONFLICTS OF INTEREST AND SUCH DISCLOSURES ARE REPORTED TO THE MARYLAND HEALTH SERVICES COST REVIEW COMMISSION (HSCRC). EXECUTIVE COMPENSATION POLICY PART VI, LINE 15 THE EXECUTIVE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS OF MEDSTAR HEALTH, INC. (THE "COMMITTEE") HAS OVERSIGHT OVER THE EXECUTIVE COMPENSATION PROGRAM (THE "PROGRAM") OF MEDSTAR HEALTH, INC. AND ITS AFFILIATES. TOTAL COMPENSATION FOR THE TOP MANAGEMENT OFFICIALS, OFFICERS AND KEY EMPLOYEES OF MEDSTAR HEALTH, INC. AND ITS AFFILIATES ARE REVIEWED AND APPROVED BY THE COMMITTEE WITH ASSISTANCE AND GUIDANCE FROM AN INDEPENDENT THIRD PARTY ADVISOR. THE MEMBERS OF THE COMMITTEE ARE INDEPENDENT FROM ALL OF THE PARTICIPANTS IN THE PROGRAM. THE MAIN OBJECTIVE OF THE PROGRAM IS TO PROVIDE MARKET COMPETITIVE TOTAL COMPENSATION THAT IS INTERNALLY EQUITABLE AND HAS A STRONG PAY-FOR-PERFORMANCE LINKAGE. PERFORMANCE IS EVALUATED AT THE SYSTEM, OPERATING UNIT, AND INDIVIDUAL LEVELS. THE OVERALL TOTAL COMPENSATION PHILOSOPHY IS MANAGED AT THE 75TH PERCENTILE OF THE COMPETITIVE MARKET FOR COMPARABLE SIZE (NET REVENUE) AND TYPE (TAX-EXEMPT HEALTHCARE ORGANIZATIONS). WHERE APPROPRIATE, ADDITIONAL INDUSTRY DATA IS CONSIDERED (GENERAL BUSINESS AND/OR TAXABLE HEALTHCARE) FOR SELECTED POSITIONS THAT CAN BE RECRUITED FROM OR POTENTIALLY LOST TO THESE INDUSTRIES (E.G., INFORMATION TECHNOLOGY, FINANCE, ETC.). THE COMMITTEE HAS ENGAGED ERNST & YOUNG LLP ("E&Y") TO SERVE AS AN ADVISOR ON THE REASONABLENESS AND COMPETITIVENESS OF THE PROGRAM. IN DETERMINING REASONABLENESS AND COMPETITIVENESS, E&Y REVIEWS MARKET PRACTICES AND TRENDS, AND MAKES RECOMMENDATIONS RELATED TO THE PROGRAM. E&Y UTILIZES INFORMATION FROM CUSTOM SURVEYS, NATIONAL COMPENSATION SURVEYS, PROPRIETARY DATABASES, AND CLIENT EXPERIENCES TO DETERMINE ITS FINAL RECOMMENDATIONS. E&Y PRESENTS THEIR FINDINGS AND RECOMMENDATIONS TO THE COMMITTEE. THE COMMITTEE MAKES THE FINAL DECISIONS ON ALL OF THE COMPENSATION DETERMINATIONS OF THE PROGRAM. ALL DECISIONS MADE BY THE COMMITTEE ARE CONTEMPORANEOUSLY DOCUMENTED. FINANCIAL STATEMENT AVAILABILITY PART VI, LINE 19 MEDSTAR HEALTH POSTS ITS ANNUAL FINANCIAL AUDIT AND QUARTERLY FINANCIAL REPORTS TO THE ELECTRONIC MUNICIPAL MARKET ACCESS (EMMA) SYSTEM. THE ORGANIZATION ALSO E-MAILS ITS ANNUAL AND QUARTERLY DISCLOSURES TO HOLDERS OF THE COMPANY'S PUBLICLY TRADED DEBT. THE COMPANY'S GOVERNANCE DOCUMENTS AND CONFLICTS OF INTEREST POLICIES ARE AVAILABLE UPON REQUEST THROUGH ITS CORPORATE (OR AS APPLICABLE ENTITY) PUBLIC INFORMATION OFFICES. OTHER CHANGES IN NET ASSETS PART XI, LINE 9 EQUITY TRANSFERS - NET ASSETS..................$ 32,026,242 ADDITIONAL MINIMUM PENSION LIABILITY...........$ 29,665,277 ============= TOTAL: $ 61,691,519 MEDSTAR CONNECT LLC 10980 GRANTCHESTER WAY Columbia MD 21044 271831497 MED INF SVCS MD 407275 29470 NA MEDSTAR MEDICAL GROUP LLC 10980 GRANTCHESTER WAY Columbia MD 21044 274234575 MEDICAL SVCS MD 6064 42011 NA CARDIOLOGY ASSOCIATES LLC 10980 GRANTCHESTER WAY Columbia MD 21044 274234724 MEDICAL SVCS MD 38846556 11652731 NA Chesapeake Cardiovascular AssociatesLLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 274465955 MEDICAL SVCS MD 10417958 2356351 NA MMG MMP LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 274234575 MEDICAL SVCS MD 69573132 20591698 NA MMG GeorgetoWn Family Practice LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 452660572 MEDICAL SVCS MD 1194811 98945 NA MEDSTAR SOUTHERN MARYLAND PHYSICIANS LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 460773035 MEDICAL MGMT MD 25994421 3326744 NA MMG RADIOLOGY LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 464003552 MEDICAL MGMT MD 48990940 12303621 NA MEDSTAR FSMC PHYSICIANS LLC 10980 GRANTCHESTER WAY Columbia MD 21044 464207755 MEDICAL MGMT MD 0 0 NA MEDSTAR GSH PHYSICIANS LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 464217508 MEDICAL MGMT MD 0 0 NA MEDSTAR HARBOR HOSPITAL PHYSICIANS LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 464228016 MEDICAL MGMT MD 0 0 NA MEDSTAR UMH PHYSICIANS LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 464237992 MEDICAL MGMT MD 0 0 NA MEDSTAR SHAH MEDICAL GROUP LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 462691028 MEDICAL MGMT MD 82371528 39897515 NA MedStar Accountable Care LLC 10980 GRANTCHESTER WAY Columbia MD 21044 474607024 ACCOUNT. 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