2018-05-07T14:47:57-05:00 2017-06-30 ERNST & YOUNG US LLP 370 17TH ST 3300 DENVER CO 80202 990 2016-07-01 990238120 THE QUEEN'S HEALTH SYSTEMS % CLINTON YEE QUEE 8085389011 1301 PUNCHBOWL STREET HONOLULU HI 96813 MICHEL RICCIONI TREASURER 2018-05-02 true KELLEY SIMON P00791436 7209314000 2016 2022-09-23 18:48:47Z ARTHUR A USHIJIMA 1301 PUNCHBOWL STREET HONOLULU HI 96813 216811606 false X WWW.QUEENSHEALTHSYSTEMS.ORG X 1985 HI TO SUPPORT, PROMOTE AND MAINTAIN THE AFFILIATE CORPORATIONS OF QUEEN'S HEALTH SYSTEMS AND TO PROMOTE, SUPERVISE AND CONTRIBUTE TO HEALTHCARE RELATED ACTIVITIES. 25 22 333 0 5746 338000 0 139792961 155188169 -3603191 16349167 873008 558054 137400778 172095390 338000 0 0 0 68958534 86716925 0 0 0 71746201 69225200 141042735 155942125 -3641957 16153265 235585960 217313317 182566011 142225354 53019949 75087963 X TO SUPPORT, PROMOTE AND MAINTAIN THE SUBSIDIARY AND AFFILIATE, CORPORATIONS OF THE QUEEN'S HEALTH SYSTEMS AND TO PROMOTE, SUPERVISE, AND OTHERWISE CONTRIBUTE TO HEALTHCARE RELATED ACTIVITIES. false false 131391279 0 155746223 THE QUEEN'S HEALTH SYSTEMS ("QHS") IS THE PARENT COMPANY OF THE QUEEN'S MEDICAL CENTER ("QMC"), QUEEN EMMA LAND COMPANY ("QEL"), QUEEN'S DEVELOPMENT CORPORATION ("QDC"), MOLOKAI GENERAL HOSPITAL ("MGH"), NORTH HAWAII COMMUNITY HOSPITAL ("NHCH") AND VARIOUS OTHER HEALTHCARE RELATED ENTITIES (COLLECTIVELY REFERRED TO AS "QUEEN'S"). SEE SCHEDULE O. 131391279 true false false true false false false false false false true true false true true true false true false false false false false false false false false false false true true false false false false false false false false false false false false false false false true true true false false true 972 0 true 333 true true true false false false false false false false false false X 25 22 false false false false false false false true true false false true true true true true true true true false X CLINTON YEE 8085389011 1301 PUNCHBOWL STREET HONOLULU HI 96813 MAENETTE BENHAM EDD TRUSTEE 1.0 2.0 X 0 0 0 GARY CAUFIELD TRUSTEE 1.0 1.0 X 0 0 0 DIANE CECCHETTINI RN TRUSTEE 2.0 1.0 X 0 0 0 KYLE CHOCK TRUSTEE 1.0 1.0 X 0 0 0 LANCE DUNBAR TRUSTEE - PART YEAR 2.0 1.0 X 0 0 0 ERNEST FUKEDA JR TRUSTEE 2.0 2.0 X 0 0 0 CHRISTINE GAYAGAS TRUSTEE 2.0 1.0 X 0 0 0 PETER HALFORD MD TRUSTEE 1.0 4.0 X 0 19307 0 LYLE HARADA TRUSTEE 2.0 2.0 X 0 0 0 PETER HANASHIRO TRUSTEE 2.0 1.0 X 0 0 0 DAVID HULIHEE TRUSTEE - PART YEAR 1.0 0.0 X 0 0 0 KEAWE KAHOLOKULA PHD TRUSTEE 2.0 1.0 X 0 0 0 STANLEY KURIYAMA TRUSTEE 2.0 1.0 X 0 0 0 MARK LUM MD TRUSTEE 1.0 0.0 X 0 0 0 SHERRY MENOR-MCNAMARA TRUSTEE 2.0 1.0 X 0 0 0 ROBERT MOMSEN TRUSTEE 2.0 3.0 X 0 0 0 CAMERON NEKOTA TRUSTEE 1.0 1.0 X 0 0 0 STEVEN NISHIDA MD TRUSTEE 1.0 1.0 X 0 0 0 JAMES STEINWASCHER TRUSTEE 1.0 2.0 X 0 0 0 R BRIAN TSUJIMURA TRUSTEE - PART YEAR 1.0 1.0 X 0 0 0 ARTHUR USHIJIMA PRESIDENT/CEO 32.0 33.0 X X 1479422 0 85825 ALLEN UYEDA TRUSTEE 1.0 1.0 X 0 0 0 JENAI WALL TRUSTEE/CHAIR-ELECT 2.0 1.0 X 0 0 0 BARRY WEINMAN TRUSTEE 2.0 2.0 X 0 0 0 LESLIE WILCOX TRUSTEE 1.0 1.0 X 0 0 0 C SCOTT WO PHD TRUSTEE 2.0 1.0 X 0 0 0 JIM YATES TRUSTEE 2.0 1.0 X 0 0 0 ERIC YEAMAN TRUSTEE/CHAIR 4.0 3.0 X X 0 0 0 JASON CHANG EVP & COO 25.0 30.0 X 614431 0 135039 KENNETH GRAHAM VICE PRESIDENT - PART YEAR 1.0 54.0 X 262855 0 0 JANICE KALANIHUIA VICE PRESIDENT 1.0 54.0 X 298017 0 51414 CYNTHIA KAMIKAWA VICE PRESIDENT 1.0 54.0 X 197437 195886 127450 WHITNEY LIMM MD VICE PRESIDENT 48.0 12.0 X 682848 0 191467 ERIC MARTINSON TREASURER/CFO 37.0 23.0 X 560615 0 127107 JOHN NITAO VP/GENERAL COUNSEL 51.0 4.0 X 452879 0 102326 ROBERT NOBRIGA TREASURER/CFO - PART YEAR 45.0 15.0 X 631596 0 65347 JOELLE TANABE ASSISTANT SECRETARY 27.0 18.0 X 104986 0 36001 SHARLENE TSUDA SECRETARY 52.0 3.0 X 297177 0 89285 CLINTON YEE ASSISTANT TREASURER 10.0 45.0 X 92257 97905 47483 GERARD AKAKA VP NAT HWN AFFAIRS/CLIN SUPPRT 50.0 0.0 X 458957 0 93708 BERNADETTE MERLINO VP AMBULATORY SVCS/PRES QDC 50.0 0.0 X 373187 0 98704 KATHLEEN MORIMOTO VP STRATEGIC PLANNING 50.0 0.0 X 280622 11328 67479 HUNTER PRAYWELL VP IT/CIO 50.0 0.0 X 488740 0 35169 PAULA YOSHIOKA SVP CORP DEVELOPMENT 50.0 0.0 X 454493 0 106520 7730519 324426 1460324 47 false true false PRICEWATERHOUSE COOPERS LLP PO BOX 514038 LOS ANGELES CA 900514038 CONSULTING SERVICES 4074613 ALLIED BUILDERS SYSTEM 1717 AKAHI STREET HONOLULU HI 968194265 CONSTRUCTION SVCS 3105068 ELITE PARKING SERVICES LLC 900 FORT STREET MALL 1240 HONOLULU HI 96813 PARKING MANAGEMENT 1686941 SYNAPTIQ LLC 1808 ALLIUM DRIVE AUSTIN TX 78733 IT CONSULTING 1052821 ACCENTURE LLP PO BOX 70629 CHICAGO IL 606730629 CONSULTING SERVICES 666820 55 0 0 0 SUPPORT SRVCS TO TAX-EXEMPT AFFILIATES 561000 155188169 155188169 0 0 155188169 5873537 5746 5867791 0 0 0 0 0 55191846 44716216 10475630 10475630 10475630 0 0 0 0 0 0 0 0 0 EXPENSE REIMBURSEMENT FROM AFFILIATES 900099 558054 558054 0 0 558054 172095390 155746223 5746 16343421 0 0 0 0 0 0 0 0 5619836 4776860 842976 0 0 0 0 0 62609378 53217971 9391407 0 5359602 4555662 803940 0 8504654 7228957 1275697 0 4623455 3929937 693518 0 0 0 0 0 584989 0 584989 0 779162 0 779162 0 52042 0 52042 0 0 0 0 0 0 0 29737649 25277002 4460647 0 234051 198943 35108 0 1255780 1067413 188367 0 16735855 14225477 2510378 0 0 0 0 0 1380026 1173022 207004 0 1028860 874531 154329 0 0 0 0 0 168294 143050 25244 0 799263 679374 119889 0 0 0 0 0 6519320 5541422 977898 0 418869 356039 62830 0 PURCHASED AFFILIATE SVCS 5950989 5058341 892648 0 RECRUITMENT & RELOCATION 749118 636750 112368 0 TELEPHONE 609426 518012 91414 0 REPAIRS & MAINTENANCE 511199 434519 76680 0 1710308 1497997 212311 155942125 131391279 24550846 0 0 0 4852297 3875772 0 0 246301 179199 0 0 0 0 0 0 0 0 65561 2616787 142974154 76718585 55936490 66255569 37527455 35301799 26580324 37191017 0 0 0 0 110377532 71893174 235585960 217313317 34750811 72936944 0 0 0 0 71247769 50072918 0 0 0 0 2811355 2795454 0 0 73756076 16420038 182566011 142225354 X 53019949 75087963 0 0 0 0 53019949 75087963 235585960 217313317 X 16153265 7026097 0 0 0 -1111348 X false true X true true true X X X 3 THE QUEEN'S MEDICAL CENTER 990073524 3 true 0 0 MOLOKAI GENERAL HOSPITAL 990251372 3 true 0 0 NORTH HAWAII COMMUNITY HOSPITAL 990260423 3 false 0 0 3 false 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 12H, COLUMN (VII) DESCRIPTION OF NON-MONETARY SUPPORT QUEEN'S HEALTH SYSTEM (QHS) PROVIDES LEGAL, ACCOUNTING, HUMAN RESOURCES AND ADMINISTRATIVE SERVICES TO THE QUEENS MEDICAL CENTER (QMC), MOLOKAI GENERAL HOSPITAL (MGH) AND NORTH HAWAII COMMUNITY HOSPITAL (NHCH). SCHEDULE A, PART IV, SECTION A, LINE 1 IN ITS ARTICLES OF INCORPORATION, QHS LISTS THE FOLLOWING SUPPORTED ORGANIZATIONS: QMC, MGH AND A CLASS DEFINED AS ALL SECTION 509(A)(1) ORGANIZATIONS IN WHICH QHS IS A MEMBER. NHCH BELONGS TO THIS SUPPORTED CLASS. QHS IS THE SOLE MEMBER OF QMC, MGH AND NHCH. NHCH IS THE NEWEST MEMBER OF THE AFFILIATED GROUP. QHS HAS MAINTAINED A CLINICAL AFFILIATION WITH NHCH SINCE 2005 AND A FORMAL AFFILIATION SINCE 2014. SCHEDULE A, PART IV, SECTION D, LINE 3 TWENTY-FOUR TRUSTEES FOR QHS ALSO SERVE AS TRUSTEES FOR QMC, INCLUDING THE PRESIDENT OF QMC. FIVE TRUSTEES FOR QHS ALSO SERVE AS TRUSTEES FOR NHCH AND THREE TRUSTEES FOR QHS SERVE AS TRUSTEES FOR MGH. THEREFORE, QHS' SUPPORTED ORGANIZATIONS HAD A SIGNIFICANT VOICE IN THE INVESTMENT POLICY AND DIRECTING THE USE OF THE ORGANIZATION'S INCOME AND ASSETS AT ALL TIMES DURING THE YEAR. SCHEDULE A, PART IV, SECTION E, LINE 3A QHS IS THE SOLE MEMBER WITH THE SOLE POWER TO ELECT BOARD MEMBERS FOR EACH OF ITS SUPPORTED ORGANIZATIONS, QMC, MGH AND NHCH. IN ADDITION, QHS' PRESIDENT SERVES AS THE CHAIR OF THE BOARD FOR MGH AND NHCH. SCHEDULE A, PART IV, SECTION E, LINE 3B QHS IS THE SOLE MEMBER OF QMC, NHCH AND MGH AND SETS ITS OVERARCHING ADMINISTRATIVE POLICIES FOR ITS SUPPORTED ORGANIZATIONS SUCH AS PRIVACY AND CORPORATE COMPLIANCE. IN ADDITION, CERTAIN MAJOR DECISIONS APPROVED BY THE BOARD OF TRUSTEES OF THE SUPPORTED ORGANIZATIONS MUST ALSO BE APPROVED BY QHS. SUCH DECISIONS INCLUDE: 1. A CHANGE TO THE PURPOSE OF THE COMPANY; 2. A FINANCING TRANSACTION IN EXCESS OF $500,000; 3. A LEASE TRANSACTION THAT HAS A TERM THAT IS LONGER THAN 3 YEARS OR HAS A RENT OBLIGATION IN EXCESS OF $1,000,000 OVER THE LEASE TERM; 4. A TRANSACTION INVOLVING THE SALE, LEASE, DISPOSITION OR HYPOTHECATION OF REAL PROPERTY; 5. ANNUAL OPERATIONAL AND CAPITAL BUDGETS; 6. STRATEGIC PLANS; 7. MERGER OR MAJOR ACQUISITIONS; 8. CREATION OF A NEW ENTITY OR JOINT VENTURE; 9. SALE OR DISPOSITION OF ALL OR SUBSTANTIALLY ALL OF ITS ASSETS; 10. DISSOLUTION; 11. AMENDMENT OF BYLAWS; 12. ADOPTION, AMENDMENT OR RESCISSION OF A BOARD POLICY; 13. CAPITAL EXPENDITURES IN EXCESS OF $2,000,000 FOR QMC, NHCH AND MGH. 0 0 52042 103797 52042 103797 131391279 1279583387 131443321 1279687184 1000000 1000000 250000 250000 1000000 1000000 1000000 1000000 4000000 6000000 116026 52172 126289 103797 398284 250000 250000 250000 250000 1000000 1500000 0 0 0 12002 12002 105618316 76718585 28899731 37343836 37343836 66255569 POOLED INVESTMENTS-NON PUBLIC 37191017 F 37191017 DUE FROM AFFILIATES 16294011 FIRST TRUST ASSETS 1660068 TRUSTEE HELD ASSETS 53939095 71893174 0 DUE TO AFFILIATES 9623824 INTEREST PAYABLE 6796214 16420038 X SCHEDULE D, PART X, LINE 2 FIN 48 (ASC 740) FOOTNOTE QHS EVALUATES ITS UNCERTAIN TAX POSITIONS AND HAS NO MATERIAL UNRECOGNIZED TAX BENEFITS AS OF JUNE 30, 2017. X X X X X false false false false false false false true false ARTHUR USHIJIMA PRESIDENT/CEO 853963 0 308920 0 316539 0 70534 0 15291 0 1565247 0 0 0 JASON CHANG EVP & COO 491955 0 101990 0 20486 0 111107 0 23932 0 749470 0 0 0 KENNETH GRAHAM VICE PRESIDENT - PART YEAR 262855 0 0 0 0 0 0 0 0 0 262855 0 0 0 JANICE KALANIHUIA VICE PRESIDENT 182691 0 32070 0 83256 0 36129 0 15285 0 349431 0 0 0 CYNTHIA KAMIKAWA VICE PRESIDENT 142614 174590 49071 965 5752 20331 95479 17749 5345 8877 298261 222512 0 0 WHITNEY LIMM MD VICE PRESIDENT 493446 0 142977 0 46425 0 168592 0 22875 0 874315 0 0 0 ERIC MARTINSON TREASURER/CFO 400764 0 121089 0 38762 0 102359 0 24748 0 687722 0 0 0 JOHN NITAO VP/GENERAL COUNSEL 342523 0 75290 0 35066 0 79908 0 22418 0 555205 0 0 0 ROBERT NOBRIGA TREASURER/CFO - PART YEAR 436636 0 146519 0 48441 0 46196 0 19151 0 696943 0 0 0 SHARLENE TSUDA SECRETARY 223541 0 49092 0 24544 0 74454 0 14831 0 386462 0 0 0 CLINTON YEE ASSISTANT TREASURER 80922 93898 7400 0 3935 4007 15709 4630 12442 14702 120408 117237 0 0 GERARD AKAKA VP NAT HWN AFFAIRS/CLIN SUPPRT 365559 0 51016 0 42382 0 68748 0 24960 0 552665 0 0 0 BERNADETTE MERLINO VP AMBULATORY SVCS/PRES QDC 293747 0 63876 0 15564 0 82346 0 16358 0 471891 0 0 0 KATHLEEN MORIMOTO VP STRATEGIC PLANNING 220497 10542 50755 0 9370 786 45629 0 20030 1820 346281 13148 0 0 HUNTER PRAYWELL VP IT/CIO 402504 0 0 0 86236 0 24142 0 11027 0 523909 0 0 0 PAULA YOSHIOKA SVP CORP DEVELOPMENT 365660 0 68967 0 19866 0 92965 0 13555 0 561013 0 0 0 SCHEDULE J, PART I, LINE 3 COMPENSATION COMMITTEE REFERS TO A COMMITTEE OF THE ORGANIZATIONS GOVERNING BODY RESPONSIBLE FOR DETERMINING THE TOP MANAGEMENT OFFICIALS COMPENSATION PACKAGE, WHETHER OR NOT THE COMMITTEE HAS BEEN DELEGATED THE AUTHORITY TO MAKE AN EMPLOYMENT AGREEMENT WITH THE TOP MANAGEMENT OFFICIAL ON BEHALF OF THE ORGANIZATION. THE COMPENSATION COMMITTEE MAY ALSO HAVE OTHER DUTIES. SCHEDULE J, PART I, LINE 7 OTHER NON-FIXED PAYMENTS RECOGNITION AWARDS WERE PAID TO ALL EMPLOYEES BASED ON ACCOMPLISHMENTS OF PREDETERMINED GOALS SET FORTH IN THE INCENTIVE AND STRATEGIC PLANS AND DEFINED ELIGIBILITY OF THE EMPLOYEE. RECOGNITION AWARDS ARE DISCRETIONARY AND CONSIDER QUALITY THRESHOLDS WHICH INCLUDE ANNUAL ACCREDITATION AND MINIMUM OPERATING INCOME LEVEL CRITERIA. IN ADDITION, EXECUTIVE AWARDS ARE WEIGHTED BASED ON INDIVIDUAL GOALS ESTABLISHED FOR EACH EXECUTIVE. SCHEDULE J, PART II COMPENSATION PAID FOR SERVICES ARTHUR A. USHIJIMA MR. USHIJIMA SERVES AS A TRUSTEE FOR THE QUEENS HEALTH SYSTEMS ("QHS") AND SEVERAL OTHER QUEENS RELATED AFFILIATES. HE IS A VOLUNTEER TRUSTEE AND IS NOT COMPENSATED FOR THESE SERVICES. HIS HOURS SERVED AS A TRUSTEE OF QHS ARE 2 HOURS PER WEEK. MR. USHIJIMA ALSO SERVES AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF QHS AND AS PRESIDENT OF THE QUEENS MEDICAL CENTER ("QMC"). THE COMPENSATION LISTED IS HIS TOTAL COMPENSATION FOR HIS VARIOUS SERVICES. JASON CHANG MR. CHANG SERVES AS EVP OF QHS AND EVP AND COO OF QMC. HE IS NOT SEPARATELY COMPENSATED FOR THESE SERVICES. THE COMPENSATION LISTED IS HIS TOTAL COMPENSATION FOR ALL SERVICES. JANICE KALANIHUIA MS. KALANIHUIA SERVES AS VP FOR THE QHS AND PRESIDENT OF MOLOKAI GENERAL HOSPITAL ("MGH"). SHE IS NOT SEPARATELY COMPENSATED FOR THESE SERVICES. THE COMPENSATION LISTED IS HER TOTAL COMPENSATION FOR ALL SERVICES. ROBERT NOBRIGA MR. NOBRIGA SERVED AS TREASURER OF QUEEN EMMA LAND COMPANY ("QEL"), QMC AND THE TREASURER/CHIEF FINANCIAL OFFICER OF QHS THROUGH OCTOBER 2016. HE WAS NOT SEPARATELY COMPENSATED FOR THESE SERVICES. THE COMPENSATION LISTED IS HIS TOTAL COMPENSATION FOR ALL SERVICES. SHARLENE TSUDA MS. TSUDA SERVES AS SECRETARY FOR QHS, QMC AND NORTH HAWAII COMMUNITY HOSPITAL ("NHCH") AND VP OF COMMUNITY DEVELOPMENT OF QHS. SHE IS NOT SEPARATELY COMPENSATED FOR THESE SERVICES. THE COMPENSATION LISTED IS HER TOTAL COMPENSATION FOR ALL SERVICES. ERIC MARTINSON MR. MARTINSON SERVED AS TREASURER OF QMC AND THE TREASURER/CHIEF FINANCIAL OFFICER OF QHS FROM NOVEMBER 2016 THROUGH JUNE 2017, AND PRESIDENT OF QEL FOR THE ENTIRE YEAR. HE WAS NOT SEPARATELY COMPENSATED FOR THESE SERVICES. THE COMPENSATION LISTED IS HIS TOTAL COMPENSATION FOR ALL SERVICES. JOHN NITAO MR. NITAO SERVES AS VP/GENERAL COUNSEL FOR QHS AND SECRETARY OF QEL. HE IS NOT SEPARATELY COMPENSATED FOR THESE SERVICES. THE COMPENSATION LISTED IS HIS TOTAL COMPENSATION FOR ALL SERVICES. WHITNEY LIMM, MD DR. LIMM SERVES AS SENIOR VP OF CLINICAL INTEGRATION AND CHIEF PHYSICIAN EXECUTIVE OF QHS AND QMC. HE IS NOT SEPARATELY COMPENSATED FOR THESE SERVICES. THE COMPENSATION LISTED IS HIS TOTAL COMPENSATION FOR ALL SERVICES. KENNETH GRAHAM MR. GRAHAM SERVED AS VP OF QHS AND AS PRESIDENT OF NHCH THROUGH JULY 2016. HE WAS NOT SEPARATELY COMPENSATED FOR THESE SERVICES. THE COMPENSATION LISTED WAS HIS TOTAL COMPENSATION FOR ALL SERVICES. CYNTHIA KAMIKAWA MS. KAMIKAWA SERVES AS VP OF QHS AND AS PRESIDENT OF NHCH. SHE IS NOT SEPARATELY COMPENSATED FOR THESE SERVICES. THE COMPENSATION LISTED IS HER TOTAL COMPENSATION FOR ALL SERVICES. CLINTON YEE MR. YEE SERVES AS CORPORATE CONTROLLER OF QHS, ASSISTANT TREASURER OF QMC, QHS QEL AND TREASURER OF MGH. HE IS NOT SEPARATELY COMPENSATED FOR THESE SERVICES. THE COMPENSATION LISTED IS HIS TOTAL COMPENSATION FOR ALL SERVICES. A DEPT OF BUDGET & FINANCE STATE OF HI 990266961 419800LM7 2015-01-29 350356476 SEE PART VI false false false A 0 0 350362507 0 0 0 4726000 0 0 156477605 160009007 29149895 true false false true A false false false true true 0 false false true A false true false false true true ML CAPITAL SERVICES 6.5 false false false 0 false true A true SCHEDULE K DESCRIPTION OF ARRANGEMENT RELATED ORGANIZATION REPORTING THE QUEENS HEALTH SYSTEMS (QHS) BORROWED ON BEHALF OF ITSELF AND ITS AFFILIATES, THE QUEENS MEDICAL CENTER (QMC) AND NORTH HAWAII COMMUNITY HOSPITAL (NHCH). INFORMATION REPORTED ON SCHEDULE K IS FOR THE ENTIRE BOND ISSUE. THE OUTSTANDING BOND LIABILITY IS ALLOCATED BETWEEN ENTITIES AND REPORTED SEPARATELY ON FORM 990, PART X. QHS' SHARE OF THE OUTSTANDING LIABILITY IS $50,072,918. PART I, LINE A, COLUMN (F) DESCRIPTION OF PURPOSE THE BONDS ARE ISSUED FOR THE BENEFIT OF THE BORROWER (THE QUEEN'S HEALTH SYSTEMS) AND THE FOLLOWING ORGANIZATIONS, EACH OF WHICH IS CONTROLLED BY THE BORROWER AND WHICH IS AN ORGANIZATION DESCRIBED IN SECTION 501(C)(3) OF THE CODE: THE QUEEN'S MEDICAL CENTER AND NORTH HAWAII COMMUNITY HOSPITAL (TOGETHER WITH THE BORROWER, THE "OBLIGATED GROUP MEMBERS"). ON JANUARY 23, 2015, QHS ISSUED SPECIAL PURPOSE REVENUE BONDS 2015 SERIES A, 2015 SERIES B AND 2015 SERIES C. THE PURPOSE OF THIS ISSUE WAS TO REFUND ALL DEBT OBLIGATIONS PREVIOUSLY ISSUED UNDER THE MASTER TRUST INDENTURE DATED JULY 1, 1996, AS AMENDED AMONG THE BORROWER, THE QUEENS MEDICAL CENTER, AND OTHER AFFILIATED CORPORATIONS, AND THE MASTER TRUSTEE NAMED THEREIN, FINANCE, REFINANCE OR REIMBURSE THE COSTS OF ACQUIRING, CONSTRUCTING, RENOVATING AND EQUIPPING FACILITIES BENEFITTING THE OBLIGATED GROUP MEMBERS AND PAY COSTS OF ISSUANCE OF THE BONDS. THE ISSUANCE DATES FOR THE BONDS WERE: 12/11/2003 05/06/2009 03/16/2006 FORM 990, PART III, LINE 4A PROGRAM SERVICE ACCOMPLISHMENTS THE MISSION OF QUEEN'S HEALTH SYSTEMS ("QHS") IS TO FULFILL THE INTENT OF QUEEN EMMA AND KING KAMEHAMEHA IV TO PROVIDE IN PERPETUITY QUALITY HEALTH CARE SERVICES TO IMPROVE THE WELL-BEING OF NATIVE HAWAIIANS AND ALL THE PEOPLE OF HAWAII. QHS FULFILLS ITS EXEMPT PURPOSE BY SUPPORTING THE QUEEN'S MEDICAL CENTER ("QMC"), MOLOKAI GENERAL HOSPITAL ("MGH") AND NORTH HAWAII COMMUNITY HOSPITAL ("NHCH"). IN ADDITION, QHS SUPPORTS ITS SUBSIDIARIES BY PROVIDING ADMINISTRATIVE AND SUPPORT SERVICES (INCLUDING LEGAL, ACCOUNTING AND HUMAN RESOURCES). QMC SUPPORTS NATIVE HAWAIIAN HEALTH INITIATIVES THROUGH MANY OF ITS PROGRAMS AND SERVICES, PARTICULARLY ITS NATIVE HAWAIIAN HEALTH PROGRAM (NHHP). THE FOCUS AREAS OF NHHP INCLUDE IMPROVEMENTS IN CLINICAL OUTCOMES, HEALTHCARE TRAINING, RESEARCH, AND ACCESS AND OUTREACH. NHHP CONDUCTS ONGOING ASSESSMENT AND DEVELOPMENT OF QMC PROGRAMS AND SERVICES FOCUSED ON NATIVE HAWAIIANS, INCLUDING SPECIFIC CLINICAL PROGRAMS IN AREAS SUCH AS CARDIOLOGY, ONCOLOGY, COMPREHENSIVE WEIGHT MANAGEMENT, MEDICINE, NEUROSCIENCE, AND DIABETES. QMC COLLABORATES AND PARTNERS TO PROVIDE HEALTHCARE TRAINING AND EDUCATION OPPORTUNITIES TO NATIVE HAWAIIAN STUDENTS AND THOSE COMMITTED TO SERVING NATIVE HAWAIIAN COMMUNITIES FROM ADOLESCENCE TO GRADUATE STUDIES, SUCH AS, THE ULU KUKUI PROJECT, WHICH IS A PRE-COLLEGE SCIENCE EDUCATION PROGRAM AT STEVENSON MIDDLE SCHOOL TO PROMOTE EXCELLENCE IN SCIENCE EDUCATION AND THE PURSUIT OF BIOMEDICAL CAREERS BY NATIVE HAWAIIANS AND PACIFIC ISLANDERS. IN ADDITION, NHHP PROGRAMS FOCUS ON QUALITY IMPROVEMENT AND INCREASED ACCESS FOR NATIVE HAWAIIANS TO QMC AND COLLABORATE WITH THE NATIVE HAWAIIAN COMMUNITY IN EDUCATION, RESEARCH, AND COMMUNITY OUTREACH. THROUGH EACH OF THESE AREAS OF FOCUS, NHHP WORKS TO PROVIDE A FRAMEWORK FOR THE DEVELOPMENT, IMPLEMENTATION AND EVALUATION OF CLINICAL INITIATIVES THAT AIM TO ENHANCE THE OLA PONO (WELL BEING) OF NATIVE HAWAIIANS. IN ADDITION TO NHHP, MANY OF QMC'S PROGRAM SERVICES DESCRIBED BELOW PROVIDE BENEFITS TO NATIVE HAWAIIANS, INCLUDING COMPONENTS OF CHARITY CARE AND UNCOMPENSATED CARE PROVIDED TO OUR PATIENTS. THE QUEENS MEDICAL CENTER WEST OAHU WAS OPENED IN MAY 2014. QHS WAS ABLE TO EXTEND ITS MISSION BY OPENING QMC WEST OAHU, A COMMUNITY HOSPITAL THAT PROVIDES WEST OAHU RESIDENTS AND VISITORS WITH HIGH QUALITY, STATE-OF-THE-ART HEALTH CARE CLOSE TO HOME. QMC - WEST OAHU FEATURES COMPLETELY NEW AND CONVENIENT FACILITIES WITH A CARING, DEDICATED STAFF WHO DEMONSTRATE COMMITMENT TO THE LEGACY OF OUR FOUNDERS, QUEEN EMMA AND KING KAMEHAMEHA IV. TO SUPPORT THE QUEEN'S MISSION AND TO FULFILL THE TAX EXEMPT PURPOSE AS A CHARITABLE HOSPITAL, QUEEN'S PROVIDED THE FOLLOWING COMMUNITY BENEFITS, TOTALING APPROXIMATELY $204.2M ON A SYSTEM-WIDE BASIS, FOR THE YEAR ENDED JUNE 30, 2017. 1. UNCOMPENSATED CARE - QMC PROVIDES MEDICAL SERVICES TO PATIENTS WHO DO NOT HAVE THE ABILITY TO PAY (CHARITY CARE) AND PATIENTS WHO REFUSE TO PAY (BAD DEBTS). FOR THE YEAR ENDED JUNE 30, 2017, THE ESTIMATED COST OF PROVIDING CHARITY CARE AND FOR SERVICES THAT WERE BAD DEBTS WAS $2,573,000 AND $38,396,000 RESPECTIVELY. 2. QUEEN'S TRANSPLANT CENTER - IN JANUARY 2012, QMC OPENED THE ONLY ORGAN TRANSPLANT CENTER IN HAWAII AND THE PACIFIC BASIN. THIS NEW CENTER IS HOME TO PHYSICIANS AND STAFF WITH OVER 20 YEARS OF EXPERIENCE IN TRANSPLANTATION. FOR THE YEAR ENDED JUNE 30, 2017, THE ESTIMATED COST OF OPERATIONS OF THE QUEEN'S TRANSPLANT CENTER WAS $3,136,000. 3. BEHAVIORAL HEALTH - QMC PROVIDES INPATIENT AND OUTPATIENT BEHAVIORAL HEALTH SERVICES THAT ARE NECESSARY AND IN CERTAIN INSTANCES, NOT GENERALLY AVAILABLE IN THE STATE OF HAWAII. THE ESTIMATED COST OF OPERATIONS RESULTING FROM BEHAVIORAL HEALTH SERVICES WAS $1,627,000 FOR THE YEAR ENDED JUNE 30, 2017. 4. QUEEN EMMA CLINICS - QMC PROVIDES OUTPATIENT SERVICES TO INDIGENT PATIENTS AND OTHERS THROUGH THE QUEEN EMMA CLINICS. THE ESTIMATED COST OF OPERATION OF THE QUEEN EMMA CLINICS WAS APPROXIMATELY $4,682,000 FOR THE YEAR ENDED JUNE 30, 2017. 5. ON CALL PHYSICIAN COMPENSATION - QMC MAINTAINS THE ONLY LEVEL II TRAUMA CENTER IN THE STATE OF HAWAII. IN ORDER TO PROVIDE LEVEL II TRAUMA COVERAGE, THE MEDICAL CENTER INCURRED APPROXIMATELY $9,475,000 IN ON CALL PHYSICIAN COVERAGE DURING THE YEAR ENDED JUNE 30, 2017. 6. FELLOWSHIP, RESIDENT AND INTERN COSTS - QMC INCURRED COSTS IN EXCESS OF REIMBURSEMENT OF APPROXIMATELY $14,414,000 DURING THE YEAR ENDED JUNE 30, 2017 RELATED TO ITS CARDIAC FELLOWSHIP, RESIDENT AND INTERN PROGRAMS. AS A TEACHING FACILITY, THE MEDICAL CENTER PARTICIPATES IN AND SHARES THE COSTS OF THE HAWAII RESIDENCY PROGRAM. 7. HAWAII MEDICAL LIBRARY - QMC MAINTAINS A MEDICAL LIBRARY THAT BENEFITS HEALTHCARE PROFESSIONALS IN THE STATE OF HAWAII. THE ESTIMATED COST OF OPERATING THE HAWAII MEDICAL LIBRARY FOR THE YEAR ENDED JUNE 30, 2017 WAS $754,000. 8. TRANSFER HOTLINE - QMC MAINTAINS A CARDIAC TRANSFER HOTLINE AND A REFERRAL HOTLINE TO ASSIST PATIENTS AND OTHER HEALTHCARE PROVIDERS WITH THE TRANSFER AND/OR REFERRAL OF PATIENTS TO APPROPRIATE HEALTHCARE SERVICES. THE ESTIMATED COST OF PROVIDING THESE SERVICES FOR THE YEAR ENDED JUNE 30, 2017 WAS $1,599,000. 9. TRANSPORTATION SERVICES - QMC PROVIDES TRANSPORTATION TO AND FROM THE MEDICAL CENTER TO PATIENTS WHO REQUIRE ASSISTANCE. THE COST OF PROVIDING THESE SERVICES WAS $63,000 FOR THE YEAR ENDED JUNE 30, 2017. 10. HEALTH AND WELLNESS EDUCATION - QMC PROVIDES HEALTH AND WELLNESS EDUCATION TO THE COMMUNITY IN AN EFFORT TO PROMOTE HEALTHY LIFESTYLES. FOR THE YEAR ENDED JUNE 30, 2017, THE COST OF PROVIDING HEALTH AND WELLNESS EDUCATION WAS $204,000. 11. RESEARCH LOSSES - QMC EMPLOYS STAFF AND INCURS UNFUNDED COSTS FOR MEDICAL RESEARCH. FOR THE YEAR ENDED JUNE 30, 2017, RESEARCH COSTS WERE $922,000. 12. CHARITABLE CONTRIBUTIONS - QMC MAKES CONTRIBUTIONS TO OUTSIDE CHARITABLE ORGANIZATIONS. FOR THE YEAR ENDED JUNE 30, 2017, CONTRIBUTIONS TO OUTSIDE CHARITABLE ORGANIZATIONS WERE $2,066,000. OF THIS AMOUNT, $375,000 WAS FOR FUNDING TO THE DEPARTMENT OF NATIVE HAWAIIAN HEALTH UNDER THE JOHN A. BURNS SCHOOL OF MEDICINE OF THE UNIVERSITY OF HAWAII AND $500,000 WAS DONATED TO THE UNIVERSITY OF HAWAII CANCER CONSORTIUM. 13. ELECTRICAL GENERATOR PROJECT - IN ORDER TO MAINTAIN NECESSARY LIFE SUPPORT, DIAGNOSTIC AND OPERATING SYSTEMS, IN THE EVENT OF AN EMERGENCY, QMC SIGNIFICANTLY UPGRADED ITS POWER PLANT BY ADDING TWO NEW GENERATORS THAT ARE CAPABLE OF PROVIDING ELECTRICAL POWER FOR THE MEDICAL CENTER. FOR THE YEAR ENDED JUNE 30, 2017, COSTS INCURRED FOR THE ELECTRICAL GENERATOR PROJECT WERE $34,000. TOTAL PROJECT COSTS INCURRED AS OF JUNE 30, 2017 WERE APPROXIMATELY $34,369,000. 14. MEDICAID SHORTFALL IN PAYMENTS - QMC PROVIDES INPATIENT AND OUTPATIENT SERVICES TO MEDICAID PATIENTS IN THE STATE OF HAWAII. QMC INCURRED COSTS IN EXCESS OF REIMBURSEMENT OF APPROXIMATELY $50,775,000 DURING THE YEAR ENDED JUNE 30, 2017. 15. MEDICARE SHORTFALL IN PAYMENTS - QMC PROVIDES INPATIENT AND OUTPATIENT SERVICES TO MEDICARE PATIENTS IN THE STATE OF HAWAII. QMC INCURRED COSTS IN EXCESS OF REIMBURSEMENT BASED ON MEDICARE COST REPORTS OF APPROXIMATELY $51,510,000 DURING THE YEAR ENDED JUNE 30, 2017. CONSISTENT WITH COST REPORT REQUIREMENTS, THERE ARE AMOUNTS THAT ARE EXCLUDED FROM THE COSTS ABOVE. 16. LEASE PRICING BELOW FAIR MARKET VALUE - QMC EXTENDED LEASE RATES TO THE UNIVERSITY OF HAWAII THAT ARE BELOW FAIR MARKET VALUE. FOR THE YEAR ENDED JUNE 30, 2017, REVENUES FOREGONE FROM LEASE RATES THAT WERE BELOW FAIR MARKET VALUE WERE $45,000. 17. PROGRAMS THAT IMPROVE ACCESS TO HEALTHCARE - QMC IMPROVES THE COMMUNITY'S ACCESS TO HEALTHCARE BY HELPING PATIENTS QUALIFY FOR MEDICAID AND OTHER TYPES OF INSURANCE. FOR THE YEAR ENDED JUNE 30, 2017, THESE PROGRAM COSTS TOTALED $905,000. 18. MOLOKAI GENERAL HOSPITAL QUEENS SUPPORTS MGH IN PROVIDING HEALTHCARE SERVICES TO THE ISLAND OF MOLOKAI. FOR THE YEAR ENDED JUNE 30, 2017, MGH PROVIDED COMMUNITY BENEFITS TOTALING $1,913,862. 19. NORTH HAWAII COMMUNITY HOSPITAL QUEENS SUPPORTS NHCH IN PROVIDING HEALTHCARE SERVICES TO THE NORTH HAWAII REGION. FOR THE YEAR ENDED JUNE 30, 2017, NHCH PROVIDED COMMUNITY BENEFITS TOTALING $13,762,505. FORM 990, PART III, LINE 4A - CONTINUED 20. NATIVE HAWAIIAN HEALTH AT QMC QUEENS SUPPORTS A NATIVE HAWAIIAN HEALTH PROGRAM AT QMC. FOR THE YEAR ENDED JUNE 30, 2017, EXPENSES TOTALED $406,000. 21. KINAU STREET OFF-RAMP IMPROVEMENT PROJECT - IN ORDER TO IMPROVE ACCESS TO ITS EMERGENCY DEPARTMENT AND HOSPITAL, QMC, IN CONJUNCTION WITH THE STATE DEPARTMENT OF TRANSPORTATION AND CITY DEPARTMENT OF TRANSPORTATION SERVICES, SUPPORTED CONSTRUCTION OF THE KINAU STREET OFF-RAMP. FOR THE YEAR ENDED JUNE 30, 2017, COSTS INCURRED FOR THE IMPROVEMENT PROJECT WERE $43,000. 22. DENTAL CLINIC - QMC PROVIDES DENTAL SERVICES TO INDIGENT PATIENTS AND OTHERS THROUGH ITS DENTAL CLINIC. THE COST OF OPERATIONS FROM THE DENTAL CLINIC WAS APPROXIMATELY $1,252,000 FOR THE YEAR ENDED JUNE 30, 2017. 23. DONATED USE OF CONFERENCE ROOMS - QMC ALLOWS PHYSICIANS AND TEACHERS FROM THE JOHN A. BURNS SCHOOL OF MEDICINE OF THE UNIVERSITY OF HAWAII, VARIOUS GOVERNMENTAL ENTITIES INCLUDING THE HAWAII DEPARTMENT OF HEALTH AND OTHER NONPROFIT ORGANIZATIONS THE FREE USE OF ITS FACILITIES AT THE QUEEN'S CONFERENCE CENTER. FOR THE YEAR ENDED JUNE 30, 2017, THE VALUE OF THE USE OF THE CENTER WAS $274,000. 24. TUTU BERTS HOUSE TUTU BERT'S HOUSE IS AN 8-BED PRIVATE MEDICAL RESPITE HOUSE IN PARTNERSHIP WITH THE QUEEN'S MEDICAL CENTER AND HOMEAID HAWAII. TUTU BERT'S HOUSE OFFERS MEDICALLY FRAIL HOMELESS DISCHARGED FROM THE QUEEN'S MEDICAL CENTER WHO NO LONGER IN NEED OF IN-PATIENT HOSPITALIZATION, BUT WHO ARE STILL TOO FRAIL TO RECUPERATE ON THE STREETS OR IN AN URBAN SHELTER, WITH A SAFETY NET RESOURCE. THE HOUSE FACILITATES SHORT-TERM STABILIZATION AND SUPPORTIVE CASE MANAGEMENT THAT ACCELERATES THEIR TRANSITION OUT OF HOMELESSNESS, AND INTO AVAILABLE HOUSING OPTIONS. FOR THE YEAR ENDED JUNE 30, 2017 COSTS INCURRED FOR THE PROGRAM WERE $436,000. 25. OHANA HOUSE OHANA HOUSE IS A 14-BED PRIVATE MEDICAL RESPITE HOUSE IN PARTNERSHIP WITH THE QUEEN'S MEDICAL CENTER AND KALIHI PALAMA HEALTH CENTER. THIS PROGRAM PROVIDES CASE MANAGEMENT AND SHORT-TERM RESIDENTIAL CARE THAT ALLOWS HOMELESS DISCHARGED FROM THE HOSPITAL THE OPPORTUNITY TO REST IN A SAFE ENVIRONMENT WHILE ACCESSING MEDICAL CARE AND OTHER SUPPORTIVE SERVICES. THE SERVICES PROVIDED TO CLIENTS INCLUDE CASE MANAGEMENT, TRANSPORTATION, SHELTER, MEALS, EMERGENCY CLOTHING AND HYGIENE SERVICES. FOR THE YEAR ENDED JUNE 30, 2017 COSTS INCURRED FOR THE PROGRAM WERE $218,000. 26. TELESTROKE PROGRAM QUEEN'S NEUROSCIENCE INSTITUTE PROVIDES STATE-OF-THE-ART MEDICAL CARE TO PATIENTS WITH NEUROLOGICAL DISEASES THROUGH THE INTEGRATION OF CLINICAL EXCELLENCE, EDUCATION AND RESEARCH. QMC INCURRED COSTS IN EXCESS OF REIMBURSEMENT AND STATE GRANTS OF APPROXIMATELY $2,715,000 DURING THE TAX YEAR ENDED JUNE 30, 2017 27. COMMUNITY OUTREACH - QHS EMPLOYEES VOLUNTEER THEIR TIME AND EXPERIENCE PROVIDING FREE LECTURES TO MEMBERS OF THE COMMUNITY INCLUDING PROFESSIONALS, STUDENTS AND MEMBERS OF THE PUBLIC. 28. VOLUNTEER EFFORTS - QHS EMPLOYEES PERIODICALLY VOLUNTEER FOR OTHER CHARITABLE ORGANIZATIONS. FOR THE YEAR ENDED JUNE 30, 2017, THESE EVENTS INCLUDED THE AMERICAN HEART ASSOCIATION'S "HEART WALK", AMERICAN CANCER SOCIETY'S "RELAY FOR LIFE"HOPE LODGE FUNDRAISER", SUSAN G. KOMEN FOUNDATION'S "RACE FOR THE CURE", WAIKIKI IMPROVEMENT ASSOCIATION'S "BEACH CLEAN UPTHE AMERICAN DIABETES ASSOCIATION'S "STEP OUT" FUNDRAISER. IN ADDITION, QHS OFFICERS DEDICATE MANY HOURS SERVING AS VOLUNTEER BOARD MEMBERS FOR OTHER HAWAII BASED CHARITABLE ORGANIZATIONS. FORM 990, PART VI, LINE 11B PROCESS USED TO REVIEW THE FORM 990 THE FORM 990 FOR THE QUEEN'S HEALTH SYSTEMS (QHS) AND THE SEPARATE FORMS FOR EACH OF THE NOT-FOR-PROFIT SUBSIDIARIES OF QHS WERE REVIEWED BY THE GOVERNING BODY PRIOR TO THE FILING OF THE TAX RETURN. THE QHS AUDIT COMMITTEE, WHICH IS COMPRISED OF MEMBERS OF THE QHS BOARD OF TRUSTEES, WAS DELEGATED THE RESPONSIBILITY TO REVIEW THE RETURNS PRIOR TO THEIR FILING. THE RETURNS WERE PRESENTED TO THE COMMITTEE BY MANAGEMENT AND BY THE INDEPENDENT PUBLIC ACCOUNTING FIRM THAT PREPARED THE RETURNS. IN ADDITION, COMPENSATION RELATED DISCLOSURES IN THE RETURNS WERE REVIEWED BY THE CHAIRPERSON OF THE COMPENSATION COMMITTEE PRIOR TO FILING THE RETURNS. ALSO, A COPY OF THE QHS RETURN WAS MADE AVAILABLE TO EACH OF THE MEMBERS OF THE QHS BOARD OF TRUSTEES PRIOR TO THE RETURNS BEING FILED WITH THE INTERNAL REVENUE SERVICE.WITH THE INTERNAL REVENUE SERVICE. FORM 990, PART VI, LINE 12C MONITORING AND ENFORCEMENT OF COMPLIANCE WITH CONFLICT OF INTEREST POLICY ALL QHS COMPANIES ARE SUBJECT TO A WRITTEN CONFLICT OF INTEREST POLICY. ALL TRUSTEES, OFFICERS, DESIGNATED EMPLOYEES AND CONTRACTORS ARE REQUIRED TO COMPLETE AN ANNUAL DISCLOSURE FORM. THE DESIGNATED EMPLOYEES ARE THOSE SELECTED BY EXECUTIVES IN THE ORGANIZATION WHO IDENTIFY THOSE EMPLOYEES (TYPICALLY MANAGER LEVEL AND ABOVE) WHO MAY BE IN A POSITION TO SELECT OR INFLUENCE THE SELECTION OF A VENDOR. DISCLOSURES ARE SUMMARIZED AND MAINTAINED BY EACH COMPANY'S CORPORATE SECRETARY. THE CONTRACTS MANAGER DEPARTMENT AND LEGAL DEPARTMENT HAVE THE CONFLICT OF INTEREST SUMMARIES AND CHECK FOR CONFLICTS OF INTEREST AT THE BEGINNING OF THE CONTRACT PROCESS. ANY CONFLICT OF INTEREST INVOLVING A TRUSTEE IS PRESENTED TO THE BOARD OF TRUSTEES. ANY CONFLICT OF INTEREST INVOLVING A DISQUALIFIED PERSON IS SUBJECT TO THE PROCESS OF ESTABLISHING A REBUTTABLE PRESUMPTION OF REASONABLENESS. ANY TRUSTEE WITH A CONFLICT OF INTEREST IS EXCUSED FOR THE PORTION OF THE MEETING WHERE THE SUBJECT MATTER IS DISCUSSED AND VOTED ON. FORM 990, PART VI, LINES 15A AND 15B PROCESS FOR DETERMINING COMPENSATION A COMMITTEE OF THE BOARD OF TRUSTEES CALLED THE COMPENSATION COMMITTEE MEETS REGULARLY TO REVIEW THE COMPENSATION OF ALL EXECUTIVES OF ALL COMPANIES WITHIN QHS. QHS' EXECUTIVE COMPENSATION IS REVIEWED ANNUALLY FOR ITS PRESIDENT/CEO, EXECUTIVE VP/COO, EXECUTIVE VP/CFO, QHS SENIOR VP ENDOWMENT, QHS SENIOR VP CORPORATE DEVELOPMENT, QHS VP GENERAL COUNSEL, QHS VP HUMAN RESOURCES, QHS VP INFORMATION TECHNOLOGY/CIO, QHS VP COMMUNITY DEVELOPMENT, QHS VP MEDICAL AFFAIRS AND QHS VP CLINICAL INTEGRATION. ALL DECISIONS REGARDING EXECUTIVE COMPENSATION ARE MADE IN CONFORMITY WITH THE PROCEDURES REQUIRED TO ESTABLISH A REBUTTABLE PRESUMPTION OF REASONABLENESS. ANY ADJUSTMENT TO COMPENSATION IS SUBJECT TO THE PROCESS OF ANNUAL PERFORMANCE REVIEWS AND COMPARISON TO COMPARABLE COMPENSATION DATA PREPARED BY A NATIONALLY RECOGNIZED INDEPENDENT COMPENSATION CONSULTANT. THE MOST RECENT REVIEW TOOK PLACE IN OCTOBER 2016. OUTSIDE COUNSEL ASSISTS WITH THE REVIEW PROCESS AND DOCUMENTS THE DECISIONS OF THE COMMITTEE. FORM 990, PART VI, LINE 19 PROCESS FOR MAKING DOCUMENTS AVAILABLE TO THE PUBLIC QHS' GOVERNING DOCUMENTS ARE AVAILABLE UPON REQUEST AND THE QHS' CONSOLIDATED AUDITED FINANCIAL STATEMENTS ARE ATTACHED TO THE QUEEN'S MEDICAL CENTER ("QMC"), MOLOKAI GENERAL HOSPITAL ("MGH") AND NORTH HAWAII COMMUNITY HOSPITAL ("NHCH") TAX RETURNS, AS REQUIRED. QHS DOES NOT MAKE ITS CONFLICT OF INTEREST POLICY AVAILABLE TO THE PUBLIC. FORM 990, PART XI, LINE 9 OTHER CHANGES IN NET ASSETS PENSION FAS 87 ADJUSTMENT $ (1,074,445) CHANGE IN OTHER COMPREHENSIVE INCOME $ ( 36,905) ROUNDING $ 2 ------------- TOTAL $ (1,111,348) FORM 990 PART IX LINE 11G DESCRIPTION:PURCHASED SERVICES TOTAL FEES:21839592 FORM 990 PART IX LINE 11G DESCRIPTION:CONSULTING SERVICES TOTAL FEES:6726028 FORM 990 PART IX LINE 11G DESCRIPTION:OTHER SERVICES TOTAL FEES:1172029 THE QUEEN'S MEDICAL CENTER 1301 PUNCBOWL STREET HONOLULU HI 96813 990073524 MEDICAL SVCS HI 501(c)(3) 3 QHS true QUEEN EMMA LAND COMPANY 1301 PUNCHBOWL STREET HONOLULU HI 96813 990183769 SUPPORT SVCS HI 501(c)(3) 12a QHS true MOLOKAI GENERAL HOSPITAL PO BOX 408 KAUNAKAKAI MOLOKAI HI 96748 990251372 MEDICAL SVCS HI 501(c)(3) 3 QHS true NORTH HAWAII COMMUNITY HOSPITAL 67-1125 MAMALAHOA HIGHWAY KAMUELA HI 96743 990260423 MEDICAL SVCS HI 501(c)(3) 3 QHS true HAMAMATSUQUEEN'S PET IMAGING CENTER LLC 1301 PUNCHBOWL STREET HONOLULU HI 96813 943266916 PET IMAGING HI NA N/A THE QUEEN'S DEVELOPMENT CORPORATION 1301 PUNCHBOWL STREET HONOLULU HI 96813 990240109 DEVELOPMENT HI QHS C Corp 137149154 117908148 1.00000 true DIAGNOSTIC LABORATORY SERVICES 99-859 IWAIWA STREET AIEA HI 96701 990240499 MEDICAL LAB SVCS HI NA C Corp true QUEEN'S INSURANCE EXCHANGE 1301 PUNCHBOWL STREET HONOLULU HI 96813 911913839 INSURANCE HI QHS C Corp -648780 22806599 1.00000 true false false false false false false false false false false false false false false false true true false false QUEEN'S MEDICAL CENTER p 5113017 FMV MOLOKAI GENERAL HOSPITAL q 1763210 FMV QUEEN EMMA LAND COMPANY q 2465678 FMV QUEEN'S MEDICAL CENTER q 133991711 FMV THE QUEEN'S DEVELOPMENT CORPORATION q 3261678 FMV QUEEN'S INSURANCE EXCHANGE q 346165 FMV NORTH HAWAII COMMUNITY HOSPITAL q 9573013 FMV SCHEDULE R, PART III IDENTIFICATION OF RELATED ORGANIZATIONS TAXABLE AS A PARTNERSHIP HAMAMATSU/QUEEN'S PET IMAGING CENTER, LLC EIN: 94-3266916 ADDRESS: 1301 PUNCHBOWL STREET HONOLULU, HI 96813 Name: Queen Emma Land Company Address: 1301 Punchbowl Street Honolulu, HI 96813 EIN: 99-0183769 Expenses: $37,912,637 501(H) Election: YES Share of excess Lobbying Expenditures: $0 Name: The Queen's Health Systems Address: 1301 Punchbowl Street Honolulu, HI 96813 EIN: 99-0238120 Expenses: $131,391,279 501(H) Election: YES Share of excess Lobbying Expenditures: $52,042 Name: The Queen's Medical Center Address: 1301 Punchbowl Street Honolulu, HI 96813 EIN: 99-0073524 Expenses: $1,045,823,096 501(H) Election: YES Share of excess Lobbying Expenditures: $48,824 Name: Molokai General Hospital Address: P.O. Box 408 Kaunakakai Molokai, HI 96748 EIN: 99-0251372 Expenses: $10,457,545 501(H) Election: YES Share of excess Lobbying Expenditures: $760 Name: NORTH HAWAII COMMUNITY HOSPITAL Address: 67-1125 MAMALAHOA HIGHWAY KAMUELA, HI 96743-8496 EIN: 99-0260423 Expenses: $53,998,830 501(H) Election: NO Share of excess Lobbying Expenditures: $2,171