2017-08-10T07:50:26-05:00 2016-09-30 420714325 RSM US LLP 1 SOUTH WACKER SUITE 800 CHICAGO IL 60606 990 2015-10-01 371110690 MEMORIAL HEALTH SYSTEM MEMO 2177883198 701 NORTH FIRST STREET SPRINGFIELD IL 627810001 ROBERT W KAY SR VICE PRESIDENT & CFO 2177883198 2017-08-10 1 ZACHARY A FORTSCH P00052725 3126343400 2015 2021-01-29 14:40:06Z EDGAR J CURTIS 701 NORTH FIRST STREET SPRINGFIELD IL 627810001 170230672 0 5670 X WWW.MHSIL.COM X 1981 IL TO IMPROVE THE HEALTH OF THE PEOPLE AND COMMUNITIES WE SERVE. 17 12 353 16 288281 0 0 0 67631433 72458078 1734629 2017422 -1194917 -295029 68171145 74180471 568286 697883 0 0 35658710 39377634 0 0 0 34016763 36116951 70243759 76192468 -2072614 -2011997 280951548 271242265 151695218 164974147 129256330 106268118 X TO IMPROVE THE HEALTH OF THE PEOPLE AND COMMUNITIES WE SERVE. 0 0 34664516 0 1673064 INFORMATION TECHNOLOGYMEMORIAL HEALTH SYSTEM IS PROACTIVE IN IMPLEMENTING TECHNOLOGY THAT BOTH IMPROVES PATIENT SAFETY, CLINICAL QUALITY, PATIENT OUTCOMES, AND MEMORIAL HEALTH SYSTEM'S BUSINESS PROCESSES. MEMORIAL HEALTH SYSTEM'S STAFF OF EXPERIENCED INFORMATION TECHNOLOGY PROFESSIONALS ARE ON THE CUTTING EDGE OF MEDICAL AND BUSINESS TECHNOLOGY. THEY SUPPORT A VAST ARRAY OF PATIENT CARE AND BUSINESS APPLICATIONS. DURING FY2016 SIGNIFICANT INFORMATION TECHNOLOGY PROJECTS INCLUDED, AMONG OTHERS, THE IMPLEMENTATION OF THE FOLLOWING: PATIENT BEDSIDE CALLS DIRECT TO CAREGIVERS TO PROVIDE A MORE DIRECT RESPONSE TO THE PATIENT; FULLY ELECTRONIC DISCHARGE PROCESS WHICH STREAMLINED THE PROCESS, LOWERED ERRORS AND PROVIDED MORE PATIENT-FRIENDLY MATERIALS; ADVANCED SERVER TECHNOLOGY TO IMPROVE PROCESSING CAPACITY WITH HIGHER RELIABILITY FOR USERS AND LOWER COSTS; EXPANDED A CLINICAL APPLICATION CALLED DBMOTION TO IMPROVE THE INTEROPERABILITY OF MULTIPLE ELECTRONIC HEALTH RECORD (EHR) SYSTEMS IN OUR REGION TO IMPROVE THE COMPLETENESS OF PATIENT INFORMATION AVAILABLE TO PHYSICIANS IN MULTIPLE CITIES; MODERNIZED THE TECHNOLOGY INFRASTRUCTURE AT PASSAVANT MEMORIAL AREA HOSPITAL ASSOCIATION, OUR NEWEST AFFILIATE; IMPROVED OUR CYBERSECURITY PREPAREDNESS WITH PENETRATION TESTING AND SECURITY PROCEDURES; AND INTEGRATED OUR TECHNOLOGY DOWNTIME PROCESSES WITH THE HEALTH SYSTEM'S DISASTER PREPAREDNESS PROCESS. 9477155 0 1755059 BUILDING AND FACILITY EXPANSION AND IMPROVEMENTSMEMORIAL HEALTH SYSTEM'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 FY2016:-ELECTRICAL MODERNIZATION PROJECT - THE GOAL OF THIS PROJECT IS TO IMPROVE THE ELECTRICAL CAPACITY, SPACE CAPACITY AND MODERNIZE ELECTRICAL EQUIPMENT THAT IS 30 YEARS OLD.-OPERATING ROOM (OR) RENOVATIONS BID PACKAGE 1 - ORS 2, 4, 18, AND OTHER MISCELLANEOUS SUPPORT SPACE MODERNIZATION OF 25 YEAR-OLD OR SUITES. THIS WORK INCLUDED REPLACEMENT OF OR LIGHTS, SURGICAL BOOMS, ADDITIONAL FINISHES, AND UPDATED MECHANICAL, ELECTRIC AND PLUMBING (MEP) CONDITIONS. -NURSING UNITS 2B, 3B, 4B, 5B, AND 6B - RENOVATED TO IMPROVE THE INTERIOR OF PATIENT ROOMS AND TO UPGRADE SOME MEP CONDITIONS. DOUBLE OCCUPANCY ROOMS WERE CONVERTED INTO SINGLE OCCUPANCY ROOMS FOR IMPROVEMENT OF THE PATIENT CARE ENVIRONMENT.-2D/3D RENOVATION - UPGRADED SPACE FOR IMPROVEMENT AND EXPANSION OF MEDICAL EDUCATION SUPPORT SPACE.OTHER PROJECTS COMPLETED FOR THE MEDICAL CENTER INCLUDE:-400 W. LAWRENCE FINANCE FACILITY - AT A COST OF APPROXIMATELY $8.7M. REMODELED AND UPGRADED MEP CONDITIONS AND PARKING LOT IMPROVEMENTS. APPROXIMATELY 260 STAFF MEMBERS WERE MOVED TO THIS FACILITY.-STERILE PROCESSING RENOVATION - AT A COST OF APPROXIMATELY $6.2M. RENOVATED TO IMPROVE CLEAN MATERIAL AND STERILE STORAGE SPACE ALONG WITH UPGRADING MEP CONDITIONS. RENOVATIONS INCLUDED ADDITIONAL CLEANING AND STERILIZATION EQUIPMENT TO INCREASE CAPACITY FOR ADDITIONAL ORS. 5084502 0 65086696 SENIOR LEADERSHIPGUIDED BY THE VALUES OF MEMORIAL HEALTH SYSTEM, SENIOR LEADERSHIP IS RESPONSIBLE FOR STRATEGIC PLANNING, PRIORITIZING AMONG COMPETING ISSUES AND ENGAGING IN DIALOGUE AND DECISION-MAKING THAT WILL ENABLE MEMORIAL HEALTH SYSTEM 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 FY2016, 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 IN FY2016, MEMORIAL HEALTH SYSTEM UPDATED ITS PERFORMANCE EXCELLENCE MODEL (MEMORIAL PERFORMANCE EXCELLENCE MODEL 2.0) TO SHARPEN OUR FOCUS ON PATIENT SAFETY QUALITY AND HEALTH OUTCOMES. MEMORIAL MEDICAL CENTER (MMC) WAS AWARDED THE 2016 AMERICAN HOSPITAL ASSOCIATION MCKESSON QUEST FOR QUALITY AWARD - THE TOP QUALITY AWARD IN THE UNITED STATES. LIKEWISE, MMC ACHIEVED 2 OF THE 4 STATEWIDE ILLINOIS HOSPITAL ASSOCIATION EXCELLENCE ACHIEVEMENT AWARDS FOR WORK RELATED TO PALLIATIVE CARE AND THE TREATMENT OF PATIENTS WITH ACUTE HEART PROBLEMS. MMC ALSO RECEIVED ITS 3RD MAGNET HOSPITAL DESIGNATION FOR NURSING EXCELLENCE FROM THE AMERICAN NURSES CREDENTIALING CENTER, A STATUS ACHIEVED BY ONLY 3% OF THE HOSPITALS IN THE UNITED STATES. THE MMC REHABILITATION PROGRAM ALSO ACHIEVED A 5-FOLD ACCREDITATION FROM THE COMMISSION ON ACCREDITATION OF REHABILITATION FACILITIES IN THE AREAS OF COMPREHENSIVE INPATIENT, COMPREHENSIVE OUTPATIENT, CLOSED HEAD INJURIES, SPINAL CORD INJURIES AND STROKES. MMC IS ONE OF ONLY 4 FACILITIES TO RECEIVE A 5-FOLD CARF ACCREDITATION FOR REHABILITATION AND THE ONLY FACILITY IN ILLINOIS. MMC RECEIVED ACCREDITATION FOR OUR LUNG VOLUME REDUCTION PROGRAM FROM THE JOINT COMMISSION ON ACCREDITATION OF HEALTHCARE ORGANIZATIONS, ONE OF ONLY FIVE HOSPITALS IN THE UNITED STATES TO RECEIVE THIS DESIGNATION. TO FURTHER ACCELERATE ADVANCEMENTS IN QUALITY, PATIENT SAFETY AND CLINICAL INNOVATION IN FY2016, MHS EXPANDED THE MIDWEST HEALTHCARE QUALITY ALLIANCE (MHQA) AND THE QUALITY ALLIANCE PATIENT SAFETY ORGANIZATION (QAPSO) A SUBSIDIARY OF MHQA, BOTH OF WHICH ARE HOUSED IN THE NEW MEMORIAL CENTER FOR LEARNING AND INNOVATION (MCLI). THE MHQA HAS ACHIEVED "MULTI-SPECIALTY PORTFOLIO APPROVAL" FROM THE AMERICAN BOARD OF MEDICAL SPECIALTIES. THIS DESIGNATION ALLOWS THE MHQA TO ASSIST PHYSICIANS IN A WIDE RANGE OF MEDICAL SPECIALTIES AND SUB-SPECIALTIES TO ACHIEVE AND MAINTAIN THEIR SPECIALTY CERTIFICATIONS BY PROVIDING CONTINUING MEDICAL EDUCATION (CME) CURRICULUM ON-SITE ON THE MEMORIAL CAMPUS. THIS YEAR THE MHQA ALSO BECAME THE UMBRELLA ORGANIZATION FOR THE SOUTHERN ILLINOIS UNIVERSITY OUTCOMES AND ANALYTICAL RESEARCH (SOAR) PROGRAM. SOAR'S MISSION IS TO UTILIZE AN EVIDENCE-BASED APPROACH TO IMPROVE HEALTHCARE QUALITY FOR THE PEOPLE OF CENTRAL AND SOUTHERN ILLINOIS IN PARTNERSHIP BETWEEN SIU SURGERY AND MEMORIAL. IN FY2016 THE MHQA EXECUTED ITS FIRST NATIONAL PATIENT SAFETY CONFERENCE IN THE MCLI FEATURING INSTITUTE OF MEDICINE AND FEDERAL AVIATION EXPERTS. THE EVENT TITLED "FUNDAMENTALLY HUMAN - AN INNOVATIVE EXPLORATION OF PATIENT SAFETY" WAS HELD THE FIRST WEEK OF FY2016 ON OCTOBER 7, 2015. MHQA WAS ALSO INVITED TO DELIVER THREE POSTER PRESENTATIONS AND ONE PODIUM PRESENTATION AT THE 39TH INTERNATIONAL HOSPITAL FEDERATION WORLD WIDE CONGRESS. THE MHQA PROJECT "IMPROVING THE SUCCESS OF STRATEGIC MANAGEMENT USING BIG DATA" WAS AWARDED TOP PRIZE FOR BEST PRESENTATION AMONG A FIELD OF 119 PRESENTATIONS FROM 19 COUNTRIES. THE AGENCY FOR HEALTHCARE QUALITY AND RESEARCH IN EARLY FY2016 OFFICIALLY CERTIFIED QAPSO AS A FEDERALLY CERTIFIED PATIENT SAFETY ORGANIZATION. THE FEDERAL PATIENT AND SAFETY AND QUALITY IMPROVEMENT ACT OF 2005 ESTABLISHED PATIENT SAFETY ORGANIZATIONS (PSOS) TO IMPROVE PATIENT SAFETY AND REDUCE THE INCIDENCE OF ADVERSE PATIENT SAFETY EVENTS THROUGH DATA SHARING SUPPORTED BY STRONG FEDERAL CONFIDENTIALITY AND PRIVILEGE PROTECTIONS. MHS AND SOUTHERN ILLINOIS UNIVERSITY HEALTHCARE WERE THE FIRST QAPSO CLIENTS. SINCE ACHIEVING FEDERAL PSO CERTIFICATION, TWO OTHER HEALTH SYSTEMS, TWO AMBULANCE COMPANIES AND FIVE SKILLED NURSING HOMES HAVE JOINED QAPSO TO ACCELERATE THEIR PATIENT SAFETY AND QUALITY IMPROVEMENT EFFORTS. SPRINGFIELD CLINIC, THE LARGEST MULTI-SPECIALTY PHYSICIAN GROUP IN THE REGION ALSO JOINED QAPSO IN FY2016. LEAN SIX SIGMA (LSS) PROCESS IMPROVEMENT PROGRAM GREW THIS YEAR WITH 28% GROWTH IN THE NUMBER OF CERTIFIED BLACK, GREEN AND WHITE BELTS, 49% GROWTH IN THE NUMBER LSS PROJECTS COMPLETED AND AN AVERAGE OF 40% IMPROVEMENT IN OUTCOMES. IN ADDITION TO IMPROVEMENTS IN QUALITY AND PATIENT SAFETY, THESE LSS PROJECTS REDUCED EXPENSES RELATED TO "REWORK AND "WASTE" BY $10,100,000.IN THE AREA OF LEADERSHIP DEVELOPMENT AND LEARNING, MEMORIAL HEALTH SYSTEM (MHS) WAS 1 OF 10 HEALTH CARE ORGANIZATIONS IN THE UNITED STATES RECOGNIZED AS A BOLD (BEST ORGANIZATIONS FOR LEADERSHIP DEVELOPMENT) AWARD RECIPIENT BY THE NATIONAL CENTER FOR HEALTHCARE LEADERSHIP. MHS ALSO ACHIEVED THE 96TH PERCENTILE IN EMPLOYEE ENGAGEMENT IN THE NATIONAL HEALTHCARE PERFORMANCE SOLUTIONS COMPARE GROUP FOR OUR ANNUAL EMPLOYEE SURVEY.IN THE AREA OF SYSTEM FACILITY PLANNING AND MANAGEMENT CONSTRUCTION, MHS'S FLAGSHIP HOSPITAL COMPLETED A MULTI-YEAR FACILITY EXPANSION PROJECT THAT INCLUDED THE CREATION OF 114 NEW PRIVATE PATIENT ROOMS, EXPANSION OF SURGICAL FACILITIES, CREATION OF A CENTER FOR LEARNING AND INNOVATION AND INFRASTRUCTURE UPGRADES THAT HAS ENABLED ENERGY CONSERVATION FOR OUR ENTIRE CAMPUS. THE NEW FACILITY OPENED IN EARLY FY2016. THE PROJECT TITLED "ADVANCING CARE BY DESIGN" HAS IMPROVED PATIENT ACCESS, SAFETY, COMFORT, PRIVACY AND QUALITY OF CARE FOR THOSE WE SERVE AND WILL DO SO FOR DECADES TO COME. THE NEW MEMORIAL CENTER FOR LEARNING AND INNOVATION IS ENHANCING HEALTH PROFESSIONS EDUCATION AND COMMUNITY HEALTH EDUCATION BY OFFERING NEW AND ADVANCED PROFESSIONAL EDUCATIONAL OPPORTUNITIES FOR MEMORIAL STAFF, SIU SCHOOL OF MEDICINE FACULTY, RESIDENTS AND STUDENTS AND OTHER REGIONAL HEALTHCARE ACADEMIC PARTNERS. FOR EXAMPLE, THE MCLI INCLUDES A STATE-OF-THE ART CLINICAL SIMULATION CENTER FEATURING TRAUMA, EMERGENCY, AMBULANCE, OBSTETRICS, INPATIENT NURSING, HOME AND OTHER CARE SETTINGS SUCH AS SURGICAL SKILLS LABORATORIES. MEMORIAL HAS ALSO PARTNERED WITH THE UNIVERSITY OF ILLINOIS - SPRINGFIELD AND UNIVERSITY OF ILLINOIS - CHICAGO TO INTRODUCE A NEW BACHELOR'S OF SCIENCE NURSING (BSN) IN SPRINGFIELD. THIS PARTNERSHIP, BASED IN THE MCLI, WILL HELP DOWNSTATE ILLINOIS MEET THE GROWING DEMAND FOR HIGHLY QUALIFIED REGISTERED NURSES TO SERVE THE COMMUNITY. 6691863 697883 379134 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 FY2016, MHS RECORDED A LOSS IN THE BJC COLLABORATIVE, LLC AND IN MIDWEST HEALTHCARE QUALITY ALLIANCE, LLC (MHQA). MHS ALSO HAD CARE COORDINATION PAYMENTS FOR MHP, A CHARGEBACK FOR STAFF TIME TO LINCOLN LAND HEALTH INFORMATION EXCHANGE, LLC IN WHICH MHS IS A 27.27% OWNER, AND A DISTRIBUTION FROM MID-AMERICA SERVICE SOLUTIONS IN WHICH MHS IS A 11.1% OWNER. 6691863 697883 379134 55918036 1 0 0 1 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 1 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 1 1 0 0 1 37 0 1 353 1 1 1 0 0 0 0 0 0 0 0 0 0 X 17 12 1 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 1 1 IL X ROBERT W KAY SENIOR VP & CFO 2177883198 701 NORTH FIRST STREET SPRINGFIELD IL 627810001 JOSEPH HURWITZ BOARD MEMBER 2.00 X 0 0 0 JAMES BRUNER BOARD MEMBER (THRU DEC 15) 1.70 X 0 0 0 MARK FERGUSON BOARD MEMBER (THRU DEC 15) 1.60 X 0 0 0 RICHARD LEVI BOARD MEMBER 0.80 X 0 0 0 NINA HARRIS BOARD MEMBER (FROM JAN 16) 1.00 X 0 0 0 HOWARD PETERS III BOARD MEMBER 0.70 X 0 0 0 SERGIO PECORI BOARD MEMBER 1.10 X 0 0 0 WILLIAM PUTMAN MD BOARD MEMBER 0.90 X 0 0 0 MICHAEL NEUMEISTER MD BOARD MEMBER 0.70 X 0 0 0 REGINALD BENTON BOARD MEMBER 0.70 1.40 X 0 0 0 JANET TERRY BOARD MEMBER (THRU DEC 15) 0.70 X 0 0 0 GINNY FANNING BOARD MEMBER (FROM JAN 16) 0.70 X 0 0 0 SUSAN KOCH EDD BOARD MEMBER (FROM JAN 16) 0.70 X 0 0 0 DEAN ROBERT JR BOARD MEMBER/2NDVCHR (FROM JAN 16) 0.70 X X 0 0 0 JOHN BLACKBURN CHAIRMAN(THRU DEC 15)/BOARDMEM 1.70 X X 0 0 0 DALE BECKER TREASURER 1.50 X X 0 0 0 RANDALL GERMERAAD 1ST VICE CHAIR(THRUDEC15)/CHAIR 0.80 X X 0 0 0 DIANE RUTLEDGE PHD 2NDVCHAIR(THRUDEC15)/1STVCHAIR 1.00 X X 0 0 0 GEOFFREY ISRINGHAUSEN SECRETARY 0.70 X X 0 0 0 EDGAR CURTIS EX-OFFICIO PRESIDENT & CEO 25.00 25.00 X X 1638194 0 298081 ROBERT KAY SVP & CFO & ASST TREASURER 25.00 25.00 X 604312 0 210666 MITCHELL JOHNSON SVP & CHIEF STRATEGY OFFICER 25.00 25.00 X 382883 0 202282 DAVID GRAHAM MD SVP & CIO 25.00 25.00 X 551715 0 150310 RAJESH GOVINDAIAH MD SVP & CMO 25.00 25.00 X 583666 0 79924 ROBERT SCOTT VP & CHRO 25.00 25.00 X 327000 0 57611 KEVIN ENGLAND VP BUSINESS DEVELOPMENT 25.00 25.00 X 335068 0 156732 ANNA EVANS JD GEN COUNSEL/VP INT AUDIT & COMPL 25.00 25.00 X 321959 0 209408 CHARLES CALLAHAN PHD EVP & COO 25.00 25.00 X 0 697718 109010 MELISSA MCGLASSON VP FINANCE 25.00 25.00 X 286528 0 42986 AIMEE ALLBRITTON PHD VP & CLO 25.00 25.00 X 330546 0 62388 LAURA COSSEY SYS DIR INT AUDIT/COMPL 25.00 25.00 X 186499 0 27299 MADONNA CROMPTON SYS DIR CLINICAL INFORMATICS 25.00 25.00 X 176458 0 30717 JERRY MILLER ADMIN IS OPERATIONS 25.00 25.00 X 176198 0 35411 DOUGLAS RAHN DBA EVP & COO (THRU MARCH 14) 0.00 50.00 X 665844 0 174949 6566870 697718 1847774 61 1 1 0 HAROLD O'SHEA BUILDERS INC 3401 CONSTITUTION DR SPRINGFIELD IL 62711 CONSTRUCTION 10442638 SIRIUS COMPUTER SOLUTIONS PO BOX 202289 DALLAS TX 75320 IT EQUIPMENT & SUPPORT SERVICES 4373030 BSA LIFESTRUCTURE INC PO BOX 6069 INDIANAPOLIS IN 46206 ARCHITECTURAL 2737792 CERNER CORPORATION PO BOX 412702 KANSAS CITY MO 64141 IT CONSULTING SERVICES 2625539 SPRINGFIELD CLINIC 1025 SOUTH SEVENTH ST SPRINGFIELD IL 62703 EHR-IT SUPPORT SERVICES 2476290 49 MANAGEMENT FEES 900099 65322535 65086696 235839 PROGRAM RELATED RENT 900099 5083345 5083345 IT REIMBURSED EXPENSES 900099 1673064 1673064 MISCELLANEOUS INCOME 900099 782775 782775 RELATED PARTNERSHIP IN 900099 -403641 -403641 72458078 1099116 1099116 10633689 13929072 -3295383 -3295383 -3328286 2311 30592 83039435 82121129 918306 918306 918306 BILLING SERVICE 561000 3000354 50131 2950223 3000354 74180471 68893953 288281 4998237 X 697883 697883 5084502 5084502 26427751 16598115 9829636 2432430 1527703 904727 3560594 2126059 1434535 1872357 1174747 697610 855299 855299 401241 401241 133750 133750 198795 198795 7806417 5175450 2630967 838799 838799 2718647 1457923 1260724 10638558 10577468 61090 2472527 1839420 633107 169396 78547 90849 45556 20480 25076 1043808 1043808 8448237 8322888 125349 135874 135874 REPAIRS & MAINTENANCE 155232 154031 1201 MINOR PROJECT COSTS 29278 29278 FOOD & DIETARY 24818 9697 15121 RECRUITMENT 682 682 37 37 76192468 55918036 20274432 0 32696790 1990937 2333011 3322863 5350306 5680561 311765892 108771616 187339214 202994276 46667818 49761314 1663711 1460811 4900698 6031503 280951548 271242265 12788143 12950741 18729 73223 13162349 12692629 99496090 111367013 26229907 27890541 151695218 164974147 X 129256330 106268118 129256330 106268118 280951548 271242265 X -2011997 1202410 -22178625 X X 0 1 X 1 0 X X 11 MEMORIAL MEDICAL CENTER 370661220 3 1 0 0 PASSAVANT MEMORIAL AREA HOSPITAL ASSOCIATION 370661230 3 1 0 0 ABRAHAM LINCOLN MEMORIAL HOSPITAL 370723793 3 1 0 0 TAYLORVILLE MEMORIAL HOSPITAL 370661250 3 1 0 0 MENTAL HEALTH CENTERS OF CENTRAL ILLINOIS 370646367 7 1 0 0 SPRINGFIELD RESIDENTIAL SERVICES 371298589 7 1 0 0 ABRAHAM LINCOLN HEALTHCARE FOUNDATION 363492268 7 1 0 0 MEMORIAL MEDICAL CENTER FOUNDATION 371110301 7 1 0 0 MEMORIAL HOME SERVICES 370714225 7 1 0 0 MEMORIAL PHYSICIAN SERVICES 371181194 9 1 0 0 MEMORIAL HEALTH VENTURES 363492266 9 1 0 0 11 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 SECTION A, LINE 1 IN THE MEMORIAL HEALTH SYSTEM GOVERNING DOCUMENTS, THE SUPPORTED ORGANIZATIONS ARE NOT LISTED. HOWEVER, IN ALL SUPPORTED AFFILIATES, WITH THE EXCEPTION OF SPRINGFIELD RESIDENTAL 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 FY2016, 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 SERVES AS THE SOLE CORPORATE MEMBER OF THE SUPPORTED ORGANIZATIONS. IN ITS CAPACITY AS THE SOLE CORPORATE MEMBER, MEMORIAL HEALTH SYSTEM HAS CERTAIN RESERVED POWERS THAT PROVIDE CONTROL OVER THE SUPPORTED ORGANIZATIONS. FOR EXAMPLE, ALL CAPITAL AND OPERATING BUDGETS MUST BE APPROVED BY MEMORIAL HEALTH SYSTEM. 0 0 0 0 0 1 133750 0 0 0 133750 0 PART II-B, LINE 1: MEMORIAL HEALTH SYSTEM ENGAGES LOBBYISTS TO ASSIST IT IN 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 1788189 23641141 25429330 123421015 60140147 51849219 131711943 1688636 67758810 55297045 14150401 15461846 17866108 1625352 31702602 202994276 DEFERRED COMPENSATION 9272637 WORKERS' COMPENSATION 474144 RESERVE FOR POST EMPLOYMENT BENEFITS 4118733 DUE TO AFFILIATES 596142 SWAP LIABILITY 2387948 RESTORATION PLAN 9990937 CONTRIBUTION PAYABLE 1050000 27890541 X 89465186 1202410 338307 1540717 87924469 198795 -13942793 -13743998 74180471 88827978 12834305 12834305 75993673 198795 198795 76192468 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, 2016 OR 2015. MEMORIAL PROPERTIES (MP), MEMORIAL HEALTH PARTNERS (MHP), AND MHS QALICB, LLC (QALICB) 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 ASSOCATION (PPA) IS A TAXABLE NOT-FOR-PROFIT CORPORATION. BOTH ARE SUBJECT TO FEDERAL AND STATE INCOME TAXES. PART XI, LINE 2D - OTHER ADJUSTMENTS: NONOPERATING CHANGE IN FV OF INT RATE SWAPS 338,307. PART XI, LINE 4B - OTHER ADJUSTMENTS: REIMBURSED IT EXPENSES 1,673,064. RENTAL EXPENSES REPORTED IN F/S AS EXPENSE 990 AS NET -13,929,072. RELATED PARTNERSHIP INCOME BOOK/TAX DIFFERENCE -221,531. REIMBURSED EXEC SALARIES IN MGMT FEE -1,465,254. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES REPORTED IN F/S AS EXPENSE 990 AS NET 13,929,072. REIMBURSED IT EXPENSES -1,673,064. NONOPERATING OTHER EXPENSE 1,276,180. NONOPERATING CONTRIBUTIONS EXPENSE -697,883. 1 UNITED WAY OF CENTRAL ILLINOIS INC 1999 WEST WABASH AVENUE SUITE 107 SPRINGFIELD IL 62704 370716060 501(C)(3) 166424 SUPPORT FOR UNITED WAY COMMUNITY FUND. GREATER SPRINGFIELD CHAMBER OF COMMERCE 1011 S SECOND STREET SPRINGFIELD IL 62704 370710280 501(C)(6) 90050 SEE PART IVPARTICIPATE IN A PUBLIC AND PRIVATE ECONOMIC GROWTH PARTNERSHIP LED BY THE CHAMBER OF COMMERCE. HOSPITAL SISTERS MISSION OUTREACH PO BOX 1665 SPRINGFIELD IL 62705 352271729 501(C)(3) 28724 SEE PART IV RESPONDS TO THE SICK, POOR AND NEEDY THROUGH MEDICAL EQUIPMENT AND SUPPLY RECOVERY AND DISTRIBUTION PROGRAM AND EDUCATION AND AWARENESS OPPORTUNITIES. 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) 176701 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. SPRINGFIELD & CENTRAL IL AFRICAN AMERICAN HISTORY MUSEUM 1440 MONUMENT AVE SPRINGFIELD IL 62702 020775028 501(C)(3) 10000 SEE PART IVDONATION FOR NEW MUSEUM AND EXHIBITS HONORING CONTRIBUTIONS OF AFRICAN AMERICANS, WITH PARTICULAR FOCUS ON OUTREACH TO MINORITY YOUTH IN THE COMMUNITY. LUTHERAN SENIOR SERVICES 1150 HANLEY INDUSTRIAL CT ST LOUIS MO 63144 430654862 501(C)(3) 5000 SEE PART IVPROVIDE SUPPORT FOR BENEVOLENT CARE FOR SENIORS WHO HAVE OUTLIVED THEIR AVAILABLE RESOURCES. ST PATRICK SCHOOL 1800 S GRAND AVE E SPRINGFIELD IL 62703 370661126 501(C)(3) 5000 SEE PART IVDONATION SUPPORTING A SCHOOL FOCUSED ON SERVING LOW-INCOME, AT-RISK CHILDREN AND ADDRESSING THEIR SPECIAL NEEDS, INCLUDING MENTAL HEALTH SERVICES THROUGH MEMORIAL'S MOSAIC PROGRAM. SPRINGFIELD URBAN LEAGUE INC 100 NORTH ELEVENTH STREET SPRINGFIELD IL 62703 370765550 501(C)(3) 10000 SEE PART IVPROVIDE SUPPORT TO ASSIST INDIVIDUALS AND COMMUNITIES TO REACH THEIR FULLEST POTENTIAL AND TO CLOSE EQUALITY GAPS FOR PEOPLE AT ALL ECONOMIC LEVELS AND STAGES OF LIFE. SIU SCHOOL OF MEDICINE PO BOX 19666 SPRINGFIELD IL 62794 376005961 501(C)(3) 128341 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 TO SUPPORT SIU SCHOOL OF MEDICINE'S SIMMONS CANCER INSTITUTE. GIRLS ON THE RUN OF CENTRAL ILLINOIS 907 CLOCKTOWER DRIVE SPRINGFIELD IL 62704 271822009 501(C)(3) 5250 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. 10 1 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 769588 0 373620 0 494986 0 279426 0 18655 0 1936275 0 134689 0 ROBERT KAY SVP & CFO & ASST TREASURER 421891 0 165014 0 17407 0 190738 0 19928 0 814978 0 0 0 MITCHELL JOHNSON SVP & CHIEF STRATEGY OFFICER 250690 0 54843 0 77350 0 184702 0 17580 0 585165 0 0 0 DAVID GRAHAM MD SVP & CIO 385722 0 150155 0 15838 0 135023 0 15287 0 702025 0 0 0 RAJESH GOVINDAIAH MD SVP & CMO 402178 0 157144 0 24344 0 72551 0 7373 0 663590 0 0 0 ROBERT SCOTT VP & CHRO 247636 0 69190 0 10174 0 41158 0 16453 0 384611 0 0 0 KEVIN ENGLAND VP BUSINESS DEVELOPMENT 223600 0 78132 0 33336 0 132592 0 24140 0 491800 0 0 0 ANNA EVANS JD GEN COUNSEL/VP INT AUDIT & COMPL 315392 0 0 0 6567 0 186844 0 22564 0 531367 0 0 0 CHARLES CALLAHAN PHD EVP & COO 0 433481 0 169918 0 94319 0 86446 0 22564 0 806728 0 21001 MELISSA MCGLASSON VP FINANCE 211619 0 58883 0 16026 0 40130 0 2856 0 329514 0 0 0 AIMEE ALLBRITTON PHD VP & CLO 235726 0 66231 0 28589 0 45503 0 16885 0 392934 0 0 0 LAURA COSSEY SYS DIR INT AUDIT/COMPL 163081 0 23100 0 318 0 12013 0 15286 0 213798 0 0 0 MADONNA CROMPTON SYS DIR CLINICAL INFORMATICS 159826 0 11180 0 5452 0 22535 0 8182 0 207175 0 0 0 JERRY MILLER ADMIN IS OPERATIONS 153685 0 22213 0 300 0 12728 0 22683 0 211609 0 0 0 DOUGLAS RAHN DBA EVP & COO (THRU MARCH 14) 348424 0 129319 0 188101 0 158767 0 16182 0 840793 0 111808 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, AN INDEPENDENT COMMITTEE OF THE MHS BOARD, AT THE 50TH PERCENTILE OF THE RELEVANT COMPENSATION RANGE, AS DETERMINED BY THE INDEPENDENT COMPENSATION CONSULTANTS. INCENTIVE COMPENSATION WAS CONTINGENT ON THE ACHIEVEMENT OF FOUR SPECIFIC PERFORMANCE METRICS OF MHS, AS DEFINED BY THE MHS BOARD. OTHER COMPENSATION IS COMPRISED PRIMARILY OF DEFERRED COMPENSATION PAYOUTS OF $134,689 MADE DURING THE YEAR FOR COMPENSATION PREVIOUSLY EARNED IN PRIOR YEARS, PAID TIME OFF BANK CASHED IN AND PAID TIME OFF DONATED BACK TO MEMORIAL MEDICAL CENTER FOUNDATION'S ANNUAL FUNDRAISING CAMPAIGN. RETIREMENT COMPENSATION REFLECTS AN INCREASE IN RETIREMENT BENEFITS OWED BY MHS UPON RETIREMENT OF MR. CURTIS. NORMAL RETIREMENT COMPENSATION FOR THE YEAR WAS $175,524. LASTLY, NONTAXABLE BENEFITS REFLECT THE VALUE OF HEALTH (MEDICAL, DENTAL, LIFE INSURANCE) BENEFITS RECEIVED DURING THE YEAR AS WELL AS CHANGES IN ACTUARIAL VALUE OF THE POSTRETIREMENT HEALTH CARE INSURANCE REIMBURSEMENT PLAN. PART I, LINE 4B THE ORGANIZATION OR A RELATED ORGANIZATION, MEMORIAL MEDICAL CENTER, PROVIDES CERTAIN SUPPLEMENTAL RETIREMENT BENEFITS TO THE FOLLOWING OFFICERS, KEY EMPLOYEES, AND HIGHEST COMPENSATED EMPLOYEES: AIMEE ALLBRITTON, PH.D., $24,553, CHARLES CALLAHAN, PH.D., $60,296, EDGAR CURTIS, $830,131, KEVIN ENGLAND, $269,432, ANNA EVANS, J.D., $276,182, RAJESH GOVINDAIAH, M.D., $56,645, DAVID GRAHAM, M.D., $244,326, MITCHELL JOHNSON, $193,723, ROBERT KAY, $246,489, MELISSA MCGLASSON, $22,026, DOUGLAS RAHN, D.B.A., $1,495, AND ROBERT SCOTT, $25,408. THESE BENEFITS ARE PROVIDED THROUGH A NONQUALIFIED DEFERRED COMPENSATION PLAN, UNDER WHICH THE BENEFITS BEING EARNED ARE SUBJECT TO A "SUBSTANTIAL RISK OF FORFEITURE." THE SUPPLEMENTAL RETIREMENT BENEFITS ARE STRUCTURED TO PROVIDE A RETENTION INCENTIVE THAT HAS BEEN DETERMINED BY THE LEADERSHIP COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS OF MEMORIAL HEALTH SYSTEM TO BE OF SUBSTANTIAL VALUE TO THE ORGANIZATION. 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: CHARLES CALLAHAN, PH.D. $30,486, EDGAR CURTIS $397,398, KEVIN ENGLAND, $8,436, MITCHELL JOHNSON $61,159, AND DOUGLAS RAHN, D.B.A., $164,686. 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. SCHEDULE J, PART II, COLUMN (D) MEMORIAL HEALTH SYSTEM PROVIDES A POSTRETIREMENT HEALTH CARE INSURANCE REIMBURSEMENT PLAN TO CERTAIN EXECUTIVES AND PHYSICIANS TO REIMBURSE HEALTH INSURANCE COSTS INCURRED BY THE RETIREES AND THEIR SPOUSES. THE CHANGE IN THE ACTUARIAL VALUE OF THE PLAN IS REPORTED ON SCHEDULE J, PART II, COLUMN (D) AS A NONTAXABLE BENEFIT. SCHEDULE J, PART II, COLUMN (D) ALSO INCLUDES OTHER NONTAXABLE BENEFITS SUCH AS MEDICAL, DENTAL, AND LIFE INSURANCE. 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 11585000 31100606 329438 110306 19254302 11406560 2004 1 0 1 1 B 4210000 147556074 1350000 146206074 2011 0 0 1 1 C 60471350 60471350 2015 0 0 0 1 D 60000000 60000000 2015 0 0 0 1 A 0 1 1 1 1 1 0.00190 0.00190 0 0 1 B 0 1 1 1 1 1 0.01820 0.01820 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: ONE SCHEDULE K WAS COMPLETED AT THE PARENT LEVEL ONLY. HOWEVER, EACH AFFILIATE IS STILL SHOWING ITS ALLOCATION OF THE LIABILITY ON THE BALANCE SHEET, AS CAN BE SEEN ON THE GROUP RETURN. 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 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 BOARD MEMBER IS OWNER OF LEVI, RAY AND SHOUP, INC. 238777 SEE PART VMEMORIAL HEALTH SYSTEM PAID FEES TO LEVI, RAY AND SHOUP, INC. FOR SERVICES FOR THE YEAR ENDED SEPTEMBER 30, 2016 IN THE AMOUNT OF $238,777. 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. 0 SPRINGFIELD CLINIC LLP PART V BOARD MEMBER IS PARTNER AND BOARD MEMBER OF SPRINGFIELD CLINIC, LLP 1882373 SEE PART VMEMORIAL HEALTH SYSTEM PAID FEES TO SPRINGFIELD CLINIC, LLP FOR SERVICES FOR THE YEAR ENDED SEPTEMBER 30, 2016 IN THE AMOUNT OF $1,882,373. A PHYSICIAN AND BOARD MEMBER OF THIS COMPANY, WILLIAM D. PUTMAN, M.D. IS ALSO A BOARD MEMBER OF MEMORIAL HEALTH SYSTEM'S BOARD OF DIRECTORS. ALL FEES ARE NEGOTIATED AT FAIR MARKET VALUE FOR THE SERVICES PROVIDED. 0 SORLING LAW OFFICES PART V BOARD MEMBER IS AN OFFICER OF SORLING LAW OFFICES 318921 SEE PART VMEMORIAL HEALTH SYSTEM PAID FEES TO SORLING LAW OFFICES FOR SERVICES FOR THE YEAR ENDED SEPTEMBER 30, 2016 IN THE AMOUNT OF $318,921. AN OFFICER OF SORLING LAW OFFICES, MARK H. FERGUSON IS ALSO A BOARD MEMBER OF MEMORIAL HEALTH SYSTEM'S BOARD OF DIRECTORS. ALL FEES ARE NEGOTIATED AT FAIR MARKET VALUE FOR THE SERVICES PROVIDED. 0 FORM 990, PART III, LINE 4C, PROGRAM SERVICE ACCOMPLISHMENT CONT. MEMORIAL COLLABORATES WITH COMMUNITY PROVIDERS TO SERVE LOW INCOME AND UNINSURED POPULATIONS. IN FY2016, MEMORIAL BEGAN CONSTRUCTION ON A FACILITY EXPANSION FOR THE SIU FAMILY AND COMMUNITY MEDICINE CLINIC FEDERALLY QUALIFIED HEALTH CENTER. THIS EXPANSION WILL DRAMATICALLY INCREASE THE NUMBER OF POOR AND VULNERABLE PATIENTS SERVED BY THE FQHC. IN ADDITION TO FUNDING THE FACILITY EXPANSION, MEMORIAL MEDICAL CENTER PROVIDES INPATIENT AND OUTPATIENT SERVICES TO ALL REFERRED SIU FQHC PATIENTS, REGARDLESS OF ABILITY TO PAY. MMC ASSISTS THESE PATIENTS TO APPLY FOR ANY INSURANCE PROGRAMS FOR WHICH THEY ARE ELIGIBLE AND ACCEPTS THE FQHC RECOMMENDED SLIDING SCALE FEE OR, IF THE PATIENT IS NOT ABLE TO PAY HIS/HER PORTION OF THE BILL, THE AMOUNT IS FORGIVEN UNDER THE HOSPITAL'S CHARITY CARE PROGRAM. IN FY2016 MEMORIAL HEALTH SYSTEM COMPLETED ITS YEAR ONE COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA) IMPLEMENTATION PLAN TO ADDRESS ACCESS TO CARE, OBESITY AND MENTAL HEALTH, THE TOP COMMUNITY HEALTH PRIORITIES. ONE PART OF THE CHNA IMPLEMENTATION PLAN IS THE "ENOS PARK ACCESS COLLABORATIVE" IN PARTNERSHIP WITH HSHS ST. JOHN'S HOSPITAL IN SPRINGFIELD AND THE SIU SCHOOL OF MEDICINE DEPARTMENT OF FAMILY AND COMMUNITY MEDICINE FEDERALLY QUALIFIED HEALTH CENTER. STARTING IN FY2016, MMC AND HSHS ST. JOHN'S HOSPITAL EACH IS PROVIDING 50% OF THE FUNDING FOR COMMUNITY HEALTH WORKERS (CHW) AND AN ELEMENTARY SCHOOL-BASED MENTAL HEALTH COUNSELOR TO WORK IN THE COMMUNITY. THESE CHW AND MENTAL HEALTH COUNSELORS HAVE IDENTIFIED HEALTH NEEDS (INCLUDING SOCIAL DETERMINANTS OF HEALTH) AND BARRIERS TO ACCESSING NEEDED SERVICES FOR THE MOST VULNERABLE POPULATIONS IN A TARGETED RESIDENTIAL NEIGHBORHOOD WITH SIGNIFICANT LEVELS OF POVERTY AND OTHER RISK FACTORS. THEY ALSO WORK WITH LOCAL HEALTH AND SOCIAL SERVICE PROVIDERS TO OVERCOME IDENTIFIED BARRIERS TO RECEIVE THE HELP THEY NEED. THROUGH THIS COLLABORATIVE, WE ORGANIZED A STEERING COMMITTEE, A COMMUNITY ADVISORY GROUP (NEIGHBORHOOD RESIDENTS), AND A PROVIDER ALLIANCE GROUP (LOCAL SOCIAL SERVICE AGENCIES). WE PARTNERED WITH THE ENOS PARK NEIGHBORHOOD IMPROVEMENT ASSOCIATION. THE FIRST YEAR HAS GREATLY EXCEEDED OUR EXPECTATIONS: 455 PEOPLE HAVE BEEN IMPACTED (SOME ASSISTED THROUGH MORE THAN ONE SERVICE). HIGHLIGHTED RESULTS INCLUDE: 111 CLIENTS SERVED BY CHWS, 100% ARE NOW INSURED AND IN A PRIMARY CARE MEDICAL HOME (51% INCREASE); 39 PRIMARY CARE APPOINTMENTS; CHWS ACCOMPANIED CLIENTS TO 290 MD VISITS; 40 DENTAL APPOINTMENTS; 44 RECEIVED MENTAL HEALTH SERVICES; 38% REDUCTION IN UNNECESSARY EMERGENCY DEPARTMENT VISITS; PROVIDED TRANSPORTATION 983 TIMES; 19 YOUTH IN SUMMER BIKE CLUB (PARTIALLY FUNDED BY FRIENDS OF MEMORIAL); 27 YOUTH IN SUMMER ENRICHMENT PROGRAM; 12 FAMILIES (28 PEOPLE) THROUGH THE MEMORIAL BEHAVIORAL HEALTH'S MOSAIC PROGRAM; 26 PAROLEES (RECIDIVISM RATE WAS 19% VS. 56.7% NATIONALLY); ADDRESSED HOUSING NEEDS; 151 REFERRALS TO SOCIAL SERVICE AGENCIES AND 13% REDUCTION IN POLICE CALLS; NEW COLLABORATION WITH POLICE DEPARTMENT. TWO SYSTEM-WIDE COMMUNITY BENEFIT INITIATIVES WERE IMPLEMENTED IN FY2016 TO ADDRESS THE COMMUNITY HEALTH NEEDS ASSESSMENT MENTAL HEALTH AND OBESITY PRIORITIES. THE NATIONALLY SANCTIONED, EVIDENCE-BASED MENTAL HEALTH FIRST AID (MHFA) TRAINING INITIATIVE TRAINED 30 CERTIFIED MHFA TRAINERS DURING AN INTENSE 5-DAY TRAINING REGIMEN. EACH CERTIFIED MHFA INSTRUCTOR, IN TURN, HAS COMMITTED TO SERVE AS INSTRUCTORS FOR ADDITIONAL 1-DAY MHFA TRAINING SESSIONS THROUGHOUT THE SERVICE AREA DURING FY2017. THE MEMORIAL CENTER FOR WEIGHT LOSS AND WELLNESS, AN EVIDENCE-BASED, PHYSICIAN-LED WEIGHT LOSS PROGRAM EXPANDED FROM ITS INITIAL ADULT-FOCUSED OBESITY PROGRAM BASED AT MEMORIAL MEDICAL CENTER TO SATELLITE PROGRAMS IN ABRAHAM LINCOLN MEMORIAL HOSPITAL AND PASSAVANT MEMORIAL AREA HOSPITAL ASSOCIATION. THE MEMORIAL MEDICAL CENTER PROGRAM ALSO EXPANDED TO PROVIDE OBESITY SERVICES FOR FAMILIES, TEENAGERS AND CHILDREN. IN THE AREA OF INFORMATION SYSTEMS, THE TOUCHWORKS ELECTRONIC AMBULATORY HEALTH RECORD HAS BEEN ENHANCED FOR SIU SCHOOL OF MEDICINE PHYSICIANS SO THAT MEMORIAL PHYSICIAN SERVICES (MPS), SPRINGFIELD CLINIC AND SIU SHARE THE SAME AMBULATORY HEALTH RECORD. THIS PROVIDES REAL-TIME INFORMATION SHARING TO BETTER COORDINATE CARE ACROSS MULTIPLE SITES OF CARE. TO CONTINUE TO IMPROVE THE ORGANIZATION'S POPULATION HEALTH, CHRONIC DISEASE MANAGEMENT AND CARE COORDINATION CAPABILITIES AND INFRASTRUCTURE, A MEMORIAL AMBULATORY HEALTH STRATEGIC PLAN BEGAN TO BE IMPLEMENTED THIS YEAR. 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. DURING FY2016, MEMORIAL FURTHER EXPANDED MEMORIAL CARE COORDINATION SERVICES TO HELP PATIENTS WITH MULTIPLE CHRONIC DISEASES AND OTHER COMPLEX MEDICAL NEEDS ACHIEVE LONG-TERM HEALTHCARE GOALS AND ACCESS THE CARE THEY NEED. SEVERAL STRATEGIES WERE EMPLOYED TO ASSURE ACCESS TO MHS PROVIDERS FOR NEWLY INSURED MEDICAID AND OTHER CONSUMERS ACCESSING THE ILLINOIS HEALTH INSURANCE MARKETPLACE (GET COVERED ILLINOIS). MHS PROVIDERS PARTICIPATED IN ALL THREE AVAILABLE ENROLLMENT OPTIONS. MPS PROVIDERS ARE OPEN TO ALL EXISTING MEMBERS PLUS A DESIGNATED NUMBER OF NEW MEMBERS. OTHER KEY SUCCESSES THIS YEAR DIRECTLY RELATED TO STRONG LEADERSHIP INCLUDE STRONG PERFORMANCE IN THE MEDICARE VALUE-BASED PURCHASING PROGRAM RELATED TO CLINICAL QUALITY AND PATIENT SATISFACTION OUTCOMES, AMONG THE LOWEST MEDICARE RE-ADMISSION RATES IN ILLINOIS, AND RETENTION OF THE MHS BOND RATING FROM MOODY'S INVESTOR SERVICES OF A1 WITH A STABLE OUTLOOK AND STANDARD & POOR'S OF AA-. MHS EMPLOYEE ENGAGEMENT SCORES WERE AT THE 96TH PERCENTILE OF THE NATIONAL COMPARISON GROUP AND POSITIVE CAHPS SATISFACTION SCORES AT ALL FOUR MHS HOSPITALS, MEMORIAL PHYSICIAN SERVICES AND MEMORIAL HOME SERVICES. THE ONGOING SUCCESS OF MHS' GREAT PATIENT EXPERIENCE INITIATIVE RESULTED IN 7 OF OUR 13 PATIENT SATISFACTION SURVEYS ACROSS THE HEALTH SYSTEM SCORING AT OR ABOVE THE 75TH PERCENTILE OF THEIR RESPECTIVE NATIONAL PEER GROUPS. MMC'S PHYSICIAN SATISFACTION RATINGS WERE AT THE 84TH PERCENTILE OF OUR NATIONAL PHYSICIAN PEER GROUP. DURING FY2016, ALL 12 MEMORIAL PHYSICIAN SERVICES PRIMARY CARE PHYSICIAN CLINICS RETAINED THE HIGHEST POSSIBLE LEVEL 3 PATIENT CENTERED MEDICAL HOME DESIGNATION FROM THE NATIONAL COMMISSION ON QUALITY ASSURANCE (NCQA). TO HELP ADDRESS THE SEVERE SHORTAGE OF PSYCHIATRIC BEDS IN THE REGION, PASSAVANT MEMORIAL AREA HOSPITAL ASSOCIATION OPENED A NEW 10-BED INPATIENT PSYCHIATRIC UNIT THAT HAS DRAMATICALLY INCREASED ACCESS TO MENTAL HEALTH SERVICES IN THE WESTERN PART OF THE MHS SERVICE AREA. MHS' 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 $28.0 MILLION IN FY2016. THIS IS A PART OF THE OVERALL STRATEGY TO IMPROVE QUALITY WHILE REDUCING COSTS. TOWARDS THIS END, MHS SAVED NEARLY $2.7 MILLION IN FY2016 THROUGH THE BJC COLLABORATIVE, LLC FORMED IN FY2013 THAT NOW INVOLVES EIGHT LEADING HEALTH SYSTEMS IN MISSOURI AND ILLINOIS. IN FY2016, OTHER SERVICES WERE DEVELOPED TO BETTER MEET THE NEEDS OF THE POPULATIONS SERVED BY MHS. FOR EXAMPLE, MMC EXPANDED ITS DAVINCI ROBOTIC SURGERY PROGRAM TO PROVIDE LESS INVASIVE SURGERIES WITH SHORTER RECOVERY TIMES AND LESS PAIN FOR PATIENTS. MMC ALSO LAUNCHED AN ADVANCED HERNIA CENTER AND INITIATED CONSTRUCTION FOR OUR FIRST RETAIL PRIMARY CARE CLINIC IN A LOCAL GROCERY STORE AND FOR OUR 4TH EXPRESSCARE FACILITY AND FIRST LOCATED OUTSIDE THE CITY OF SPRINGFIELD TO SERVE THOSE LIVING IN THE SOUTHERN PART OF OUR PRIMARY SERVICE AREA. MMC ALSO RETAINED OUR LEVEL 1 TRAUMA CENTER AND COMPREHENSIVE STROKE CENTER CERTIFICATION, THE HIGHEST LEVEL OF STROKE CERTIFICATION FROM THE JOINT COMMISSION ON ACCREDITATION OF HEALTHCARE ORGANIZATIONS (JCAHO), AMERICAN HEART ASSOCIATION AND AMERICAN STROKE ASSOCIATION. MEMORIAL PHYSICIAN SERVICES CONTINUED TO EXPAND "MEMORIALMD SMARTVISIT" WHICH FURTHER INCREASES PATIENT ACCESS TO PRIMARY CARE PHYSICIAN OFFICES BY OFFERING "VIRTUAL CARE" VIA THE SMART PHONES, TABLETS, PERSONAL COMPUTERS OR OTHER ELECTRONIC DEVICES VIA THE INTERNET. FORM 990, PART VI, SECTION A, LINE 2 MEMORIAL HEALTH SYSTEM BOARD MEMBERS JAMES BRUNER, RICHARD LEVI, AND SERGIO PECORI ARE ALL ON THE ILLINOIS NATIONAL BANK BOARD OF DIRECTORS. MEMORIAL HEALTH SYSTEM BOARD MEMBER NINA HARRIS AND KEY EMPLOYEE MITCHELL JOHNSON ARE BOARD MEMBERS OF SECURITY BANK. TODD WISE AND DIANE RUTLEDGE, PH.D. ARE BOTH MMC BOARD MEMBERS. MR. WISE IS AN OFFICER AND DIRECTOR OF UNITED COMMUNITY BANK, WHERE MS. RUTLEDGE IS ALSO A UCB BOARD MEMBER. FORM 990, PART VI, SECTION A, LINE 6 THE CORPORATION CONTAINS 100 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 A, LINE 7B INDIVIDUAL MEMBERS OF THE CORPORATION HAVE NO VOTING RIGHTS WITH RESPECT TO THE MANAGEMENT, CONTROL OR OPERATION OF THE AFFAIRS AND PROPERTIES OF THE CORPORATION. ONLY THE BOARD OF DIRECTORS CAN MAKE DECISIONS IN THAT REGARD. FORM 990, PART VI, SECTION B, LINE 11 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 DISINTERESTED 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 SITUATED 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). FORM 990, PART IX, LINE 11G PURCHASED SERVICES: PROGRAM SERVICE EXPENSES 884,422. MANAGEMENT AND GENERAL EXPENSES 1,299,918. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 2,184,340. PHYSICIAN FEES: PROGRAM SERVICE EXPENSES 1,267,326. MANAGEMENT AND GENERAL EXPENSES 188,904. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,456,230. PROFESSIONAL FEES: PROGRAM SERVICE EXPENSES 2,821,502. MANAGEMENT AND GENERAL EXPENSES 1,130,964. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 3,952,466. CONTRACT LABOR: PROGRAM SERVICE EXPENSES 202,200. MANAGEMENT AND GENERAL EXPENSES 11,181. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 213,381. FORM 990, PART XI, LINE 9: NONOPERATING RECONCILING ITEMS -239,990. CHANGE IN UNRESTRICTED NET ASSETS -23,625,420. EXEC SALARIES IN MGMT FEE INCOME 1,465,254. RELATED PARTNERSHIP BOOK/TAX DIFF 221,531. SCHEDULE R, PART V, LINE 2 MEMORIAL HEALTH SYSTEM COLLECTED RENTAL INCOME FROM AFFILIATES DURING THE FISCAL YEAR ENDED SEPTEMBER 30, 2016. THE VALUES LISTED IN SCHEDULE R, PART V, LINE 2 WERE DETERMINED USING FAIR MARKET VALUE. MEMORIAL HEALTH PARTNERS LLC 701 NORTH 1ST STREET SPRINGFIELD IL 62781 463947269 TO COORDINATE PATIENT CARE ACTIVITIES ACROSS THE HEALTHCARE CONTINUUM IL 452637 300000 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 758956 25470167 MEMORIAL HEALTH SYSTEM MEMORIAL MEDICAL CENTER 701 NORTH FIRST ST SPRINGFIELD IL 627810001 370661220 HOSPITAL SERVICES IL 501(C)(3) 170(B)(1)(A) (III) MEMORIAL HEALTH SYSTEM 1 MEMORIAL HEALTH VENTURES 701 NORTH FIRST ST SPRINGFIELD IL 627810001 363492266 HEALTHCARE ACTIVITIES IL 501(C)(3) 509(A)(2) MEMORIAL HEALTH SYSTEM 1 ABRAHAM LINCOLN MEMORIAL HOSPITAL 200 STAHLHUT DR LINCOLN IL 62656 370723793 HOSPITAL SERVICES IL 501(C)(3) 170(B)(1)(A) (III) MEMORIAL HEALTH SYSTEM 1 TAYLORVILLE MEMORIAL HOSPITAL 201 EAST PLEASANT TAYLORVILLE IL 62568 370661250 HOSPITAL SERVICES IL 501(C)(3) 170(B)(1)(A) (III) 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) 170(B)(1)(A) (VI) MEMORIAL HEALTH SYSTEM 1 MEMORIAL PHYSICIAN SERVICES 701 NORTH FIRST ST SPRINGFIELD IL 627810001 371181194 HEALTH CLINICS IL 501(C)(3) 509(A)(2) 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) 170(B)(1)(A) (VI) 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) 170(B)(1)(A) (VI) N/A 0 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) 170(B)(1)(A) (VI) 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) 170(B)(1)(A) (VI) 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) 170(B)(1)(A) (VI) 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) 170(B)(1)(A) (III) 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) 170(B)(1)(A) (VI) PASSAVANT MEM AREA HOSPITAL ASSOCIATION 1 JACKSONVILLE CRNA'S INC 1600 WEST WALNUT JACKSONVILLE IL 62650 273083265 CRNA SERVICES IL 501(C)(3) 509(A)(2) 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 MEMORIAL HOME SERVICES C 1 PASSAVANT PHYSICIAN ASSOCIATION 1600 WEST WALNUT JACKSONVILLE IL 62650 261200566 PHYSICIAN SERVICES IL PASSAVANT MEM AREA HOSPITAL ASSOCIATION C 1 1 1 1 0 0 0 0 1 0 1 1 1 1 1 1 1 1 0 0 MEMORIAL HEALTH VENTURES A 492605 FMV MEMORIAL HOME SERVICES A 108458 FMV MEMORIAL MEDICAL CENTER A 2294568 FMV MEMORIAL PHYSICIAN SERVICES A 1965475 FMV MEMORIAL HOME SERVICES OF CENTRAL ILLINOIS A 5910 FMV MEMORIAL PHYSICIAN SERVICES B 19234687 FMV MENTAL HEALTH CENTERS OF CENTRAL ILLINOIS B 675000 FMV MEMORIAL HEALTH VENTURES J 492605 FMV MEMORIAL HOME SERVICES J 108458 FMV MEMORIAL MEDICAL CENTER J 2294568 FMV MEMORIAL PHYSICIAN SERVICES J 1965475 FMV MEMORIAL MEDICAL CENTER K 151144 FMV MEMORIAL HEALTH VENTURES L 335280 FMV MEMORIAL PHYSICIAN SERVICES L 2189435 FMV MEMORIAL MEDICAL CENTER M 429280 FMV MEMORIAL MEDICAL CENTER N 813628 FMV MEMORIAL HOME SERVICES N 108458 FMV MEMORIAL MEDICAL CENTER O 5106233 FMV MEMORIAL PHYSICIAN SERVICES O 187878 FMV MENTAL HEALTH CENTERS OF CENTRAL ILLINOIS O 25480 FMV ABRAHAM LINCOLN MEMORIAL HOSPITAL O 116337 FMV TAYLORVILLE MEMORIAL HOSPITAL O 125139 FMV MEMORIAL MEDICAL CENTER P 11709286 FMV MEMORIAL PHYSICIAN SERVICES P 3284119 FMV MEMORIAL MEDICAL CENTER Q 6016251 FMV MEMORIAL HOME SERVICES Q 197086 FMV MENTAL HEALTH CENTERS OF CENTRAL ILLINOIS Q 141465 FMV MEMORIAL PHYSICIAN SERVICES Q 3061157 FMV ABRAHAM LINCOLN MEMORIAL HOSPITAL Q 164812 FMV TAYLORVILLE MEMORIAL HOSPITAL Q 135871 FMV PASSAVANT AREA MEMORIAL HOSPITAL Q 825580 FMV MEMORIAL HEALTH VENTURES Q 51523 FMV MEMORIAL MEDICAL CENTER C 2053399 FMV MEMORIAL HEALTH VENTURES B 2320000 FMV MENTAL HEALTH CENTERS OF CENTRAL ILLINOIS A 25020 FMV MEMORIAL MEDICAL CENTER L 56334513 FMV ABRAHAM LINCOLN MEMORIAL HOSPITAL L 1664456 FMV TAYLORVILLE MEMORIAL HOSPITAL L 1554842 FMV MEMORIAL PHYSICIAN SERVICES L 5140261 FMV MENTAL HEALTH CENTERS OF CENTRAL ILLINOIS L 668600 FMV MEMORIAL HOME SERVICES L 438031 FMV MEMORIAL HEALTH VENTURES L 288756 FMV PASSAVANT AREA MEMORIAL HOSPITAL L 877250 FMV