2016-11-14T14:42:06-06:00 2015-12-31 WithumSmithBrown PC 465 South St Ste 200 Morristown NJ 079606497 990 2015-01-01 210660835 SHORE MEMORIAL HOSPITAL % DAVID R HUGHES SHOR 6096533545 100 MEDICAL CENTER WAY SOMERS POINT NJ 082442387 DAVID R HUGHES CFO 6096533545 2016-11-14 true Scott J Mariani P00642486 9738989494 2015 2017-02-10 21:41:12Z SHORE MEDICAL CENTER RONALD W JOHNSON 100 MEDICAL CENTER WAY SOMERS POINT NJ 082442387 183673872 false X WWW.SHOREMEDICALCENTER.ORG X 1942 NJ TO CARE FOR & RESPECT ALL PATIENTS, THEIR FAMILIES & EACH OTHER. 20 19 1255 350 0 2891375 3243608 180708089 177810141 3295274 1213651 1036903 659735 187931641 182927135 109800 198522 0 0 88134586 83869175 0 0 489104 100363719 95948132 188608105 180015829 -676464 2911306 273191723 272000298 219939296 212461334 53252427 59538964 X THE MISSION OF SHORE MEDICAL CENTER IS TO CARE FOR AND RESPECT ALL PATIENTS, THEIR FAMILIES AND EACH OTHER. Through innovative thinking and strong physician partnerships, we will strive to deliver best in class cost performance, the highest level of clinical quality, and exceptional customer service. OUR VALUES INCLUDE THE FOLLOWING: Put Patients First - We go to extraordinary lengths to provide the highest quality of care for our patients and their families in a safe and compassionate environment. They are the reason we are here and the center of all we do. Respect Others - We foster an environment of mutual respect and teamwork by listening to others and valuing different points of view, knowing that together we are stronger. Pursue Excellence - We relentlessly strive for excellence in every action we take. We explore innovations, exceed expectations and promote continuous learning and empowerment at all levels. Do The Right Thing - Always. PLEASE REFER TO THE ORGANIZATION'S COMMUNIT true false 67343636 0 55532694 Expenses incurred in providing medically necessary inpatient medical services (excludes surgical cases and maternal child health), to all individuals in a non-discriminatory manner regardless of race, color, creed, sex, national origin or ability to pay. During 2015, the organization had 6,441 admissions for a total of 28,781 patient days. Please refer to Schedule O for the organization's community benefit statement. 20708005 0 21034748 Expenses incurred in providing medically necessary maternal and pediatric inpatient services to all individuals in a non-discriminatory manner regardless of race, color, creed, sex, national origin, or ability to pay. During 2015, the organization had 1,416 admissions for a total of 3,596 patient days. Please refer to Schedule O for the organization's community benefit statement. 16692830 0 25836160 Expenses incurred in providing medically necessary same day surgery services to all individuals in a non-discriminatory manner regardless of race, color, creed, sex, national origin or ability to pay. During 2015, the organization performed 3,563 same day surgical procedures. Please refer to Schedule O for the organization's community benefit statement. 28635005 198522 75406539 133379476 true true false true false false false false false true true false true true true true false true false false false false false false false false true true true false true true false false false false false false false false false false false false false false true true true true false false true 361 0 true 1255 true false false false false false false false false false X 20 19 false false false false true true true true true false false true true true true true true true true false NJ X DAVID R HUGHES 6096533545 100 MEDICAL CENTER WAY SOMERS POINT NJ 082442387 X GERALD J CORCORAN ESQ CHAIRMAN - TRUSTEE 1.0 0.0 X X 0 0 0 ROBERT J BRAY DDS MS VICE CHAIRMAN - TRUSTEE 1.0 0.0 X X 0 0 0 SANDY TZAFEROS PHARMD SECRETARY/ASST TREAS - TRUSTEE 1.0 0.0 X X 0 0 0 RONALD B STABLINI CPA MBA TREAS/ASST SECRETARY - TRUSTEE 1.0 0.0 X X 0 0 0 AUTUMN BAYLES TRUSTEE 1.0 0.0 X 0 0 0 DAVID BEYEL TRUSTEE 1.0 0.0 X 0 0 0 AUGGIE CIPOLLINI TRUSTEE 1.0 0.0 X 0 0 0 PATRICIA Q CONNOLLY TRUSTEE 1.0 0.0 X 0 0 0 FERNANDO DELASOTTA MD TRUSTEE 1.0 0.0 X 0 0 0 ARTHUR T FORD III ESQ TRUSTEE 1.0 0.0 X 0 0 0 CAROL L GAFFNEY RN BSN TRUSTEE 1.0 0.0 X 0 0 0 LEONARD T GALLER MD TRUSTEE 2.0 0.0 X 2775 0 0 JAY A GILLIAN TRUSTEE 1.0 0.0 X 0 0 0 R SCOTT HALLIDAY TRUSTEE 1.0 0.0 X 0 0 0 RONALD W JOHNSON TRUSTEE - PRESIDENT/CEO 50.0 0.0 X X 940738 0 122375 EDWARD KUEHNLE TRUSTEE 1.0 0.0 X 0 0 0 GARY G SCHAFFER TRUSTEE 1.0 0.0 X 0 0 0 RAYMOND S SCHREYER MD TRUSTEE - PRESIDENT MED STAFF 2.0 0.0 X 2800 0 0 HON CARMINE J TAGLIALATELLA JWC TRUSTEE 1.0 0.0 X 0 0 0 RICHARD L TRAA TRUSTEE 1.0 0.0 X 0 0 0 JAMES FRASER TRUSTEE (1/1/15 - 11/23/15) 1.0 0.0 X 0 0 0 ROBIN MEADOWS TRUSTEE (1/1/15 - 7/6/15) 1.0 0.0 X 0 0 0 DAVID R HUGHES CHIEF FINANCIAL OFFICER 50.0 0.0 X 424370 0 36196 LINDA S KENWOOD COO/CNO 50.0 0.0 X 320785 0 37828 JEANNE M ROWE CHIEF MEDICAL OFFICER 50.0 0.0 X 415835 0 26638 PAULINE MCDANIEL CHIEF DEV OFF(TERMED 10/21/15) 50.0 0.0 X 324045 0 27883 FREDERICK L BANNER CHIEF INFORMATION OFFICER 50.0 0.0 X 243040 0 39471 ALAN L BEATTY VICE PRESIDENT HUMAN RESOURCES 50.0 0.0 X 227051 0 40635 BENNETT E OJSERKIS MD PHYSICIAN 50.0 0.0 X 296669 0 38089 KENT VOLOSIN PHYSICIAN ADVISOR 50.0 0.0 X 270258 0 42575 ROBERT L WOOD FINANCE DIRECTOR 50.0 0.0 X 202802 0 33322 ROBIN KEYACK AVP SURGICAL SERVICES 50.0 0.0 X 193069 0 28696 MICHAEL J SMITH ADM DIR OF PATIENT FIN SVCS 50.0 0.0 X 182740 0 39229 4046977 0 512937 73 false true false XANITOS INC 3809 WEST CHESTER PIKE NEWTOWN SQUARE PA 19073 ENVIRONMENTAL 3372008 UNIDINE COMPANY 1000 WASHINGTON STREET SUITE 510 BOSTON MA 02118 FOOD/MANAGEMENT 3360019 CERNER CORPORATION 2800 ROCKCREEK PARKWAY NORTH KANSAS CITY MO 64117 IT 1693114 ADVANCED ICU SERVICES ONE CITY PLACE DRIVE SUITE 570 ST LOUIS MO 63141 MEDICAL 1122169 ONSITE NEONATAL PARTNERS 1000 HADDONFIELD-BERLIN ROAD VOORHEES TOWNSHIP NJ 08043 MEDICAL 905777 57 X 527113 2716495 3243608 NET PATIENT SERVICE REVENUE 541900 184446044 184446044 NET LOSS IN RELATED PROFESSIONAL MEDICAL CORPORATIONS 541900 -10115461 -10115461 OTHER HEALTHCARE RELATED REVENUE 541900 3479558 3479558 177810141 -12847 -12847 2147 2147 0 619867 746737 -126870 0 -126870 -126870 1056509 167842 1056509 167842 1224351 1224351 0 0 0 CAFETERIA/VENDING 722410 786605 786605 786605 182927135 177810141 1873386 X 198522 198522 0 0 0 3232466 2687149 536913 8404 0 62949986 52332183 10455819 161984 2873144 2388445 477229 7470 7812204 6494285 1297607 20312 7001375 5820243 1162928 18204 143274 49401 93085 788 415238 143174 269780 2284 186791 64406 121358 1027 63895 63895 0 8323 2870 5407 46 31778579 18008168 13654817 115594 487051 487051 1862786 642289 1210252 10245 2671314 921069 1735553 14692 0 3371137 1162368 2190228 18541 110861 110861 0 74866 74866 3141140 1083065 2040799 17276 0 13352471 4603932 8675100 73439 1725671 595011 1121169 9491 MEDICAL SUPPLIES 30646136 30646136 0 0 REPAIRS & MAINTENANCE 3916440 3916440 0 0 DUES & SUBSCRIPTIONS 300295 300295 0 0 OTHER EXPENSES 1691864 583352 1099205 9307 180015829 133379476 46147249 489104 X 198791 398220 432506 893421 0 511029 20477934 21963796 0 0 0 0 0 0 2583031 2593334 1224273 1724823 367020167 218984228 158895649 148035939 0 0 0 0 69497711 79433228 1401667 1248046 18480161 15198462 273191723 272000298 27081197 26368014 0 0 2081432 9561460 68304596 65219330 0 0 0 0 14748849 14786331 0 0 107723222 96526199 219939296 212461334 X 49388625 56440739 1132905 577949 2730897 2520276 53252427 59538964 273191723 272000298 X 2911306 -878545 4253776 X X false true X true true true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true false false false false false true 56000 true 7895 63895 false SCHEDULE C, PART II-B; QUESTIONS 1H & 1I SHORE MEDICAL CENTER ("MEDICAL CENTER") ENGAGES IN LOBBYING EFFORTS ON A FEDERAL AND STATE LEVEL. DURING 2015, THE MEDICAL CENTER PAID TWO INDEPENDENT FIRMS A TOTAL OF $56,000 FOR LOBBYING CONSULTING SERVICES. IN ADDITION, THE MEDICAL CENTER IS A MEMBER OF THE NEW JERSEY HOSPITAL ASSOCIATION WHICH ENGAGEs IN LOBBYING EFFORTS ON BEHALF OF ITS MEMBER HOSPITALS. A PORTION OF THE ORGANIZATION'S ANNUAL DUES PAID TO THIS ORGANIZATION IS ALLOCATED TOWARDS ITS LOBBYING EFFORTS. THIS ALLOCATION AMOUNTED TO $7,895 during 2015. LASTLY, THE ORGANIZATION IS ALSO A MEMBER OF FAIR SHARE HOSPITALS COLLABORATIVE, INC. TO WHICH IT PAID DUES IN THE AMOUNT OF $15,000 IN 2015. ONE OF THE FUNCTIONS OF FAIR SHARE HOSPITALS COLLABORATIVE, INC. IS TO ENGAGE IN LOBBYING ACTIVITIES PERFORMED ON BEHALF OF ITS MEMBER HOSPITALS. 3863802 -765577 3098225 3458540 -10751 -416013 3863802 4849312 174503 1565275 3458540 6187421 143997 1482106 4849312 6670180 -115746 367013 6187421 0.81350 0.18650 false false 5823670 5823670 140533346 80954140 59579206 219429968 136895694 82534274 1233183 1134394 98789 148035939 LIMITED AS TO USE 899933 F LIMITED USE 43157033 F LIMITED USE 3190000 F LIMITED USE 27473040 F LIMITED USE 356882 F LIMITED USE 507504 F LIMITED USE 145339 F INVESTMENTS; LIMITED USE 1367866 F DONOR; LIMITED USE 756953 F LIMITED USE 2432260 F PERPETUAL TRUST 1763323 F INVESTMENT IN AFFILIATES -2616905 F 79433228 DUE FROM AFFILIATES 8988670 DEPOSITS 561134 OTHER RECEIVABLES 15983 OTHER ASSETS 5632675 15198462 0 ACCRUED INTEREST PAYABLE 260794 DUE TO AFFILIATES 1932879 THIRD PARTY PAYORS 3773803 ACCRUED RETIREMENT BENEFITS 82706054 RESERVE FOR INSURANCE CLAIMS 5177661 OTHER LIABILITIES 2675008 96526199 X SCHEDULE D, PART V; QUESTION 4 The Medical Center has adopted investment policies for its endowment assets that are consistent with the policies and objectives of their overall investments; TO FURTHER THE ORGANIZATION'S CHARITABLE PURPOSES, PROGRAMS AND SERVICES. The assets are invested in a manner that is intended to produce a positive rate of return while assuming a low level of risk. From time to time, the fair value of assets associated with the donor-restricted endowment funds may fall below the level that the donor requires the Medical Center to maintain in perpetual duration. Deficiencies of this nature are reported in unrestricted net assets in accordance with generally accepted accounting principles. SCHEDULE D, PART X THE ORGANIZATION IS AN AFFILIATE within SHORE MEMORIAL HEALTH SYSTEM and affiliates; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM ("SYSTEM"). SHORE MEMORIAL HEALTH SYSTEM IS THE tax-exempt PARENT ENTITY OF THE SYSTEM. AN INDEPENDENT CPA FIRM AUDITED THE CONSOLIDATED FINANCIAL STATEMENTS OF THE SYSTEM FOR THE YEARS ENDED DECEMBER 31, 2015 AND DECEMBER 31, 2014; RESPECTIVELY. THE FOOTNOTE BELOW IS FROM THE SYSTEM'S 2015 AUDITED CONSOLIDATED FINANCIAL STATEMENTS AND REPORTS THE ORGANIZATION'S LIABILITY FOR UNCERTAIN TAX POSITIONS UNDER FIN 48 (ASC 740): THE SYSTEM FOLLOWS THE ACCOUNTING GUIDANCE FOR UNCERTAINTIES IN INCOME TAX POSITIONS, WHICH REQUIRES THAT A TAX POSITION BE RECOGNIZED OR DERECOGNIZED BASED ON A "MORE LIKELY THAN NOT" THRESHOLD. THIS APPLIES TO POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. THE SYSTEM DOES NOT BELIEVE ITS CONSOLIDATED FINANCIAL STATEMENTS INCLUDE ANY MATERIAL UNCERTAIN TAX POSITIONS. AS OF DECEMBER 31, 2015, THE SYSTEM'S TAX YEARS ENDED DECEMBER 31, 2012 THROUGH DECEMBER 31, 2014 FOR FEDERAL TAX JURISDICTION REMAIN OPEN TO EXAMINATION. true true X true X true X 500. true true true false false 3090 1721666 394507 1327159 0.00740 23634 29132447 20976972 8155475 0.04530 26724 30854113 21371479 9482634 0.05270 12 6041 237581 2575 235006 0.00130 12 6041 237581 2575 235006 0.00130 12 32765 31091694 21374054 9717640 0.05400 1 54320 54320 0.00030 1 54320 54320 0.00030 false 8221721 3426268 61293074 77568778 -16275704 X true true 1 1 SHORE MEMORIAL HOSPITAL 100 MEDICAL CENTER WAY SOMERS POINT NJ 082442387 www.shoremedicalcenter.org 10103 X X X 1 SHORE MEMORIAL HOSPITAL 1 false false true X X X X X X X 13 true false false true X www.shoremedicalcenter.org X true 13 true www.shoremedicalcenter.org false false true 200. 500. X X X X X true true X X X X true X X X true X false X X X X true X false false SCH H,PT V,ST B,Q's 2,3J,6A&B,7D,13B,15E,16I,18D,19D,20E,21C,21D,22D,23&24 NOT APPLICABLE. SCHEDULE H, PART V, SECTION B, QUESTION 5 Shore Memorial Hospital ("Hospital") created a coalition of professional members from the community to participate in the Community Health Needs Assessment ("CHNA") conducted by the hospital. A series of meetings occurred during 2012 in which public health partners: 1) gave insight into proper processes for conducting a needs assessment; 2) provided information on disparity groups in the community that should be focused on; and 3) pointed out particular needs and gaps in the community. According to the organization's CHNA the following public health experts provided guidance regarding the assessment process: Atlantic City Department of Health - Ronald Cash, Health Officer - Rhonda Fitzgerald, Coordinator of Community Health/Educator Atlantic County, Division of Public Health - Patricia Diamond, Health Officer - Ben Mount, Partnership Coordinator Atlantic County Department of Corrections - John McLernon, Director, Social Services Rutgers Cooperative Extension - Joanne Kinsey, Assistant Professor of Family & Community Health Sciences Southern Jersey Family Medical Center - Carol Malette, Program Director of Prenatal Access to Care Stockton College of Continuing Studies - Ariane Newman, Assistant Director of Continuing Studies United Way of America - Fran Wise, Director of Community Investments & Partnerships SCHEDULE H, PART V, SECTION B, QUESTION 11 Once the CHNA was conducted and posted on the hospital's website in 2013, the next step consisted of creating a Community Benefit Plan. The Community Benefit Plan is for 2013 - 2015 and consists of the goals and objectives the hospital is pursuing over the next couple of years. Eight health risk factors were identified (obesity, tobacco use, alcohol use, LOW BIRTH WEIGHT, heart disease, cancer, STROKE and CHRONIC respiratory diseases). Each of these topics has been put in the Community Benefit Plan and is being pursued over the course of the implementation period. Below is a summary of how the hospital plans to address the identified needs: Obesity ------- Approximately 28% of Atlantic County and 24.9% of Cape May County RESIDENTS are obese equating to approximately 70,000 to 81,000 people. Men, African-Americans, Hispanics, and people with lower levels of educational attainment were more likely to be overweight. Obesity is linked to heart disease and diabetes. For this reason proper nutrition, the importance of physical exercise and maintaining a healthy lifestyle need to be the focus. A priority on children needs to occur to prevent obesity. Plans to address obesity include: 1) Incorporate BMI, blood pressure, cholesterol and glucose screenings into all community health events; 2) Provide individual coAching to those at high risk; 3) Distribute educational materials about nutrition, exercise and healthy lifestyles at locations wHere men tend to gather, such as local barbershops; 4) Provide educational programs in Spanish as well as English at local Spanish Community Centers; 5) Ensure that the educational materials about nutrition, exercise and healthy lifestyles are written at the level of 7th 8th grade; and 6) Offer a program similar to "Sustainable Me" developed by Rutgers Cooperative Extension, which focuses on health eating and physical activity in local middle schools. Tobacco Use ----------- Smoking percentages among adults is estimated at 24% in Atlantic County and 22% for Cape May County. These are some of the highest rates in New Jersey and equate to approximately 68,000 PEOPLE. Tobacco use is linked to a variety of chronic diseases, such as lung cancer, emphysema, COPD, and heart disease. For this reason, tobacco education, smoking cessation, and the prevention of smoking are priorities. Because 80% of adult smokers started before the age of 18, children need to be a specific focus in the plan. Plans to address tobacco use include: 1) Offer community education through the Shore Medical Center Speakers' Bureau; 2) Incorporate CO2 level testing into all community health screenings; 3) Provide individual coaching to people who use tobacco; 4) Provide education to local communities who are considering "outdoor tobacco-free spaces 5) Provide information to physicians on recommended means by which to discuss smoking cessation with their patients; and 6) Offer a program similar to "Sustainable Me" developed by Rutgers Cooperative Extension, which focuses on avoiding tobacco use. Alcohol Use ----------- Excessive drinking (binge drinking and heavy drinking) among adults is estimated to be 18% for both Atlantic County and Cape May County. This percentage is the highest rate in New Jersey and equates to approximately 52,000 people. Alcohol use is linked to a variety of chronic diseases, such as hypertension and is linked to unintentional injuries. A priority on children needs to occur to prevent the use of alcohol. Plans to address alcohol use include: 1) Offer a program similar to "Sustainable Me" developed by Rutgers Cooperative Extension, which focuses on avoiding the use of alcohol in local middle schools. Low Birth Weight ---------------- Low birth weight is estimated at 10.1% OF Atlantic County RESIDENTS as compared to 6.5% in New Jersey. Low birth weight can be caused by smoking, use of alcohol and hypertension. Plans to address low birth weight include: 1) Continue to be an active member of the Southern New Jersey Perinatal Cooperative.; 2) Follow the plan developed for the use of tobacco with a focus on women of child-bearing years; 3) Incorporate blood pressure screenings into all community health screenings; and 4) Provide individual coaching to women who are pregnant. In addition to the preceding strategic initiatives, the hospital plans to provide other community benefit programs responsive to the health needs identified in the CHNA. These may include, but are not limited to, health education programs, screenings, and education for physicians, nurses and allied health professionals. These identified needs include: - Heart Disease; - Cancer; - Stroke; and - Chronic Respiratory disease. Health insurance was also identified as a problem. This is not in the Community Benefit Plan, but is being addressed through multiple initiatives the hospital participates in such as aiding patients with the Affordable Care Act process, assistance with the Medicaid process, charity care for patients in need and grant programs to provide cancer screening. the organization has choosen not to address alcoholism and alcohol abuse in adultS. this is due to the fact that Shore Medical Center does not have an Alcohol treatment center, a detoxification program or alcohol counselors. however, the hospital will refer adults who have needs related to alcohol abuse to other facilities who provide these services within the region. 1 OUTPATIENT TESTING CENTER 914 HAVEN AVENUE OCEAN CITY NJ 08226 LAB SERVICES - CLOSED 6/2015 SCHEDULE H, PART I, LINE 3C INCOME-BASED CRITERIA USED TO DETERMINE ELIGIBILITY ARE IN ACCORDANCE WITH THE NJ ADMINISTRATIVE CODE 10:52 SUB-CHAPTERS 11, 12 AND 13. FEDERAL POVERTY GUIDELINES ARE INCLUDED IN THE CRITERIA FOR DETERMINING ELIGIBILITY FOR CHARITY AND DISCOUNTED CARE. IN ADDITION TO THE FEDERAL POVERTY GUIDELINES, THE FOLLOWING CRITERIA ARE USED IN DETERMINING ELIGIBILITY FOR FREE OR DISCOUNTED CARE: - ASSET LEVEL; - MEDICAL INDIGENCY; - INSURANCE STATUS; - UNDERINSURANCE STATUS; AND - RESIDENCY. SCHEDULE H, PART I, LINE 6A NOT APPLICABLE. SCHEDULE H, PART I, LINE 7 NO COSTS RELATING TO SUBSIDIZED HEALTHCARE SERVICES ARE ATTRIBUTABLE TO ANY PHYSICIAN CLINICS. WORKSHEET 2 WAS USED FOR THE COST TO CHARGE RATIO. SCHEDULE H, PART II SHORE MEMORIAL HOSPITAL D/B/A SHORE MEDICAL CENTER ("THE MEDICAL CENTER") IS PROUD TO MAKE A DIFFERENCE IN THE COMMUNITIES WE CALL HOME. OUR GENEROUS MEDICAL CENTER STAFF HAVE PARTICIPATED IN NUMEROUS EVENTS THAT SUPPORT AND EXEMPLIFY THE MEDICAL CENTER'S COMMITMENT TO OUR COMMUNITY. OUR PRIMARY GOAL IS TO CARE FOR AND RESPECT, ALL PATIENTS THEIR FAMILIES AND EACH OTHER. ALONG WITH THE SUPERIOR CARE THAT WE DELIVER EVERY DAY, WE STRIVE TO EDUCATE AND PROMOTE WELLNESS TO THE COMMUNITY THROUGH THE MANY OUTREACH PROGRAMS WE OFFER. MORE RECENTLY, THE MEDICAL CENTER BECAME THE FIRST HOSPITAL IN NEW JERSEY AND ONE OF LESS THAN 50 ORGANIZATIONS WORLDWIDE TO RECEIVE PLANETREE PATIENT-CENTERED CARE DESIGNATION. THE PLANETREE MODEL OF CARE IS A PATIENT-CENTERED, HOLISTIC APPROACH TO HEALTHCARE, PROMOTING MENTAL, EMOTIONAL, SPIRITUAL, SOCIAL AND PHYSICAL HEALING. WE HOPE TO EMPOWER OUR PATIENTS AND FAMILIES THROUGH THE EXCHANGE OF INFORMATION TO ULTIMATELY ENCOURAGE AND FOSTER HEALING PARTNERSHIPS WITH CAREGIVERS. SCHEDULE H, PART III, LINES 2, 3 & 4 Bad debt expense was calculated using the providers' bad debt expense from THE AUDITIED CONSOLIDATED financial statementS, net of accounts written off at charges. Shore memorial health system prepares and issues audited CONSOLIDATED financial statements. The attached text was obtained from the footnotes to the audited financial statements of shore MEMORIAL HEALTH SYSTEM & AFFILIATES. Patient accounts receivable/allowance for doubtful accounts ----------------------------------------------------------- Patient accounts receivable result from the healthcare services provided by the system. The system provides an allowance for doubtful accounts for estimated losses resulting from the unwillingness of patients to make payments for services. The allowance is determined by analyzing historical data and trends. Accounts receivable are charged off against the allowance for doubtful accounts when management determines that recovery is unlikely and the SYSTEM ceases collection efforts. Charity care ------------ The system provides charity care to patients who meet certain financial criteria established by the state of new jersey. The cost of services provided and supplies furnished under its charity care policy is estimated using internal data and is calculated based on the system's cost to charge ratio. The total direct and indirect amount of charity care provided, determined on the basis of cost, approximated $1,818,000 and $3,135,000 in 2015 and 2014, respectively. The new jersey health care reform act of 1992, chapter 160, established the health care subsidy fund (hcsf) to provide a mechanism and funding source to compensate certain hospitals for charity care. For the years ended December 31, 2015 and 2014, the system recognized $394,507 AND $649,470, respectively, as subsidies for charity care, which is included in net patient service revenue. the health care subsidy fund amounts are subject to change from year to year based on available state budget amounts and allocation methodologies. SCHEDULE H, PART III, LINE 8 MEDICARE COSTS WERE DERIVED FROM THE 2015 MEDICARE COST REPORT. MEDICARE UNDERPAYMENTS AND BAD DEBT ARE COMMUNITY BENEFIT AND ASSOCIATED COSTS ARE INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. THE ORGANIZATION FEELS THAT MEDICARE UNDERPAYMENTS (SHORTFALL) AND BAD DEBT ARE COMMUNITY BENEFIT AND ASSOCIATED COSTS ARE INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. AS OUTLINED MORE FULLY BELOW THE ORGANIZATION BELIEVES THAT THESE SERVICES AND RELATED COSTS PROMOTE THE HEALTH OF THE COMMUNITY AS A WHOLE AND ARE RENDERED IN CONJUNCTION WITH THE ORGANIZATION'S CHARITABLE TAX-EXEMPT PURPOSES AND MISSION IN PROVIDING MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER WITHOUT REGARD TO RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY AND CONSISTENT WITH THE COMMUNITY BENEFIT STANDARD PROMULGATED BY THE IRS. THE COMMUNITY BENEFIT STANDARD IS THE CURRENT STANDARD FOR A HOSPITAL FOR RECOGNITION AS A TAX-EXEMPT AND CHARITABLE ORGANIZATION UNDER INTERNAL REVENUE CODE ("IRC") 501(C)(3). THE ORGANIZATION IS RECOGNIZED AS A TAX-EXEMPT ENTITY AND CHARITABLE ORGANIZATION UNDER 501(C)(3) OF THE IRC. ALTHOUGH THERE IS NO DEFINITION IN THE TAX CODE FOR THE TERM "CHARITABLE" A REGULATION PROMULGATED BY THE DEPARTMENT OF THE TREASURY PROVIDES SOME GUIDANCE AND STATES THAT "THE TERM CHARITABLE IS USED IN SECTION 501(C)(3) IN ITS GENERALLY ACCEPTED LEGAL SENSE,PROVIDES EXAMPLES OF CHARITABLE PURPOSES, INCLUDING THE RELIEF OF THE POOR OR UNPRIVILEGED; THE PROMOTION OF SOCIAL WELFARE; AND THE ADVANCEMENT OF EDUCATION, RELIGION, AND SCIENCE. NOTE IT DOES NOT EXPLICITLY ADDRESS THE ACTIVITIES OF HOSPITALS. IN THE ABSENCE OF EXPLICIT STATUTORY OR REGULATORY REQUIREMENTS APPLYING THE TERM "CHARITABLE" TO HOSPITALS, IT HAS BEEN LEFT TO THE IRS TO DETERMINE THE CRITERIA HOSPITALS MUST MEET TO QUALIFY AS IRC 501(C)(3) CHARITABLE ORGANIZATIONS. THE ORIGINAL STANDARD WAS KNOWN AS THE CHARITY CARE STANDARD. THIS STANDARD WAS REPLACED BY THE IRS WITH THE COMMUNITY BENEFIT STANDARD WHICH IS THE CURRENT STANDARD. CHARITY CARE STANDARD IN 1956, THE IRS ISSUED REVENUE RULING 56-185, WHICH ADDRESSED THE REQUIREMENTS HOSPITALS NEEDED TO MEET IN ORDER TO QUALIFY FOR IRC 501(C)(3) STATUS. ONE OF THESE REQUIREMENTS IS KNOWN AS THE "CHARITY CARE STANDARD." UNDER THE STANDARD, A HOSPITAL HAD TO PROVIDE, TO THE EXTENT OF ITS FINANCIAL ABILITY, FREE OR REDUCED-COST CARE TO PATIENTS UNABLE TO PAY FOR IT. A HOSPITAL THAT EXPECTED FULL PAYMENT DID NOT, ACCORDING TO THE RULING, PROVIDE CHARITY CARE BASED ON THE FACT THAT SOME PATIENTS ULTIMATELY FAILED TO PAY. THE RULING EMPHASIZED THAT A LOW LEVEL OF CHARITY CARE DID NOT NECESSARILY MEAN THAT A HOSPITAL HAD FAILED TO MEET THE REQUIREMENT SINCE THAT LEVEL COULD REFLECT ITS FINANCIAL ABILITY TO PROVIDE SUCH CARE. THE RULING ALSO NOTED THAT PUBLICLY SUPPORTED COMMUNITY HOSPITALS WOULD NORMALLY QUALIFY AS CHARITABLE ORGANIZATIONS BECAUSE THEY SERVE THE ENTIRE COMMUNITY, AND A LOW LEVEL OF CHARITY CARE WOULD NOT AFFECT A HOSPITAL'S EXEMPT STATUS IF IT WAS DUE TO THE SURROUNDING COMMUNITY'S LACK OF CHARITABLE DEMANDS. COMMUNITY BENEFIT STANDARD IN 1969, THE IRS ISSUED REVENUE RULING 69-545, WHICH "REMOVED" FROM REVENUE RULING 56-185 "THE REQUIREMENTS RELATING TO CARING FOR PATIENTS WITHOUT CHARGE OR AT RATES BELOW COST." UNDER THE STANDARD DEVELOPED IN REVENUE RULING 69-545, WHICH IS KNOWN AS THE "COMMUNITY BENEFIT STANDARD," HOSPITALS ARE JUDGED ON WHETHER THEY PROMOTE THE HEALTH OF A BROAD CLASS OF INDIVIDUALS IN THE COMMUNITY. THE RULING INVOLVED A HOSPITAL THAT ONLY ADMITTED INDIVIDUALS WHO COULD PAY FOR THE SERVICES (BY THEMSELVES, PRIVATE INSURANCE, OR PUBLIC PROGRAMS SUCH AS MEDICARE), BUT OPERATED A FULL-TIME EMERGENCY ROOM THAT WAS OPEN TO EVERYONE. THE IRS RULED THAT THE HOSPITAL QUALIFIED AS A CHARITABLE ORGANIZATION BECAUSE IT PROMOTED THE HEALTH OF PEOPLE IN ITS COMMUNITY. THE IRS REASONED THAT BECAUSE THE PROMOTION OF HEALTH WAS A CHARITABLE PURPOSE ACCORDING TO THE GENERAL LAW OF CHARITY, IT FELL WITHIN THE "GENERALLY ACCEPTED LEGAL SENSE" OF THE TERM "CHARITABLE," AS REQUIRED BY TREAS. REG. 1.501(C)(3)-1(D)(2). THE IRS RULING STATED THAT THE PROMOTION OF HEALTH, LIKE THE RELIEF OF POVERTY AND THE ADVANCEMENT OF EDUCATION AND RELIGION, IS ONE OF THE PURPOSES IN THE GENERAL LAW OF CHARITY THAT IS DEEMED BENEFICIAL TO THE COMMUNITY AS A WHOLE EVEN THOUGH THE CLASS OF BENEFICIARIES ELIGIBLE TO RECEIVE A DIRECT BENEFIT FROM ITS ACTIVITIES DOES NOT INCLUDE ALL MEMBERS OF THE COMMUNITY, SUCH AS INDIGENT MEMBERS OF THE COMMUNITY, PROVIDED THAT THE CLASS IS NOT SO SMALL THAT ITS RELIEF IS NOT OF BENEFIT TO THE COMMUNITY. THE IRS CONCLUDED THAT THE HOSPITAL WAS "PROMOTING THE HEALTH OF A CLASS OF PERSONS THAT IS BROAD ENOUGH TO BENEFIT THE COMMUNITY" BECAUSE ITS EMERGENCY ROOM WAS OPEN TO ALL AND IT PROVIDED CARE TO EVERYONE WHO COULD PAY, WHETHER DIRECTLY OR THROUGH THIRD-PARTY REIMBURSEMENT. OTHER CHARACTERISTICS OF THE HOSPITAL THAT THE IRS HIGHLIGHTED INCLUDED THE FOLLOWING: ITS SURPLUS FUNDS WERE USED TO IMPROVE PATIENT CARE, EXPAND HOSPITAL FACILITIES, AND ADVANCE MEDICAL TRAINING, EDUCATION, AND RESEARCH; IT WAS CONTROLLED BY A BOARD OF TRUSTEES THAT CONSISTED OF INDEPENDENT CIVIC LEADERS; AND HOSPITAL MEDICAL STAFF PRIVILEGES WERE AVAILABLE TO ALL QUALIFIED PHYSICIANS. MEDICARE UNDERPAYMENTS AND BAD DEBT ARE COMMUNITY BENEFIT AND ASSOCIATED COSTS ARE INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. THE AMERICAN HOSPITAL ASSOCIATION ("AHA") FEELS THAT MEDICARE UNDERPAYMENTS (SHORTFALL) AND BAD DEBT ARE COMMUNITY BENEFIT AND THUS INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. THIS ORGANIZATION AGREES WITH THE AHA POSITION. AS OUTLINED IN THE AHA LETTER TO THE IRS DATED AUGUST 21, 2007 WITH RESPECT TO THE FIRST PUBLISHED DRAFT OF THE NEW FORM 990 AND SCHEDULE H, THE AHA FELT THAT THE IRS SHOULD INCORPORATE THE FULL VALUE OF THE COMMUNITY BENEFIT THAT HOSPITALS PROVIDE BY COUNTING MEDICARE UNDERPAYMENTS (SHORTFALL) AS QUANTIFIABLE COMMUNITY BENEFIT FOR THE FOLLOWING REASONS: - PROVIDING CARE FOR THE ELDERLY AND SERVING MEDICARE PATIENTS IS AN ESSENTIAL PART OF THE COMMUNITY BENEFIT STANDARD. - MEDICARE, LIKE MEDICAID, DOES NOT PAY THE FULL COST OF CARE. RECENTLY, MEDICARE REIMBURSES HOSPITALS ONLY 92 CENTS FOR EVERY DOLLAR THEY SPEND TO TAKE CARE OF MEDICARE PATIENTS. THE MEDICARE PAYMENT ADVISORY COMMISSION ("MEDPAC") IN ITS MARCH 2007 REPORT TO CONGRESS CAUTIONED THAT UNDERPAYMENT WILL GET EVEN WORSE, WITH MARGINS REACHING A 10-YEAR LOW AT NEGATIVE 5.4 PERCENT. - MANY MEDICARE BENEFICIARIES, LIKE THEIR MEDICAID COUNTERPARTS, ARE POOR. MORE THAN 46 PERCENT OF MEDICARE SPENDING IS FOR BENEFICIARIES WHOSE INCOME IS BELOW 200 PERCENT OF THE FEDERAL POVERTY LEVEL. MANY OF THOSE MEDICARE BENEFICIARIES ARE ALSO ELIGIBLE FOR MEDICAID -- SO CALLED ELIGIBLES." THERE IS EVERY COMPELLING PUBLIC POLICY REASON TO TREAT MEDICARE AND MEDICAID UNDERPAYMENTS SIMILARLY FOR PURPOSES OF A HOSPITAL'S COMMUNITY BENEFIT AND INCLUDE THESE COSTS ON FORM 990, SCHEDULE H, PART I. MEDICARE UNDERPAYMENT MUST BE SHOULDERED BY THE HOSPITAL IN ORDER TO CONTINUE TREATING THE COMMUNITY'S ELDERLY AND POOR. THESE UNDERPAYMENTS REPRESENT A REAL COST OF SERVING THE COMMUNITY AND SHOULD COUNT AS A QUANTIFIABLE COMMUNITY BENEFIT. BOTH THE AHA AND THIS ORGANIZATION ALSO FEEL THAT PATIENT BAD DEBT IS A COMMUNITY BENEFIT AND THUS INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. LIKE MEDICARE UNDERPAYMENT (SHORTFALLS), THERE ALSO ARE COMPELLING REASONS THAT PATIENT BAD DEBT SHOULD BE COUNTED AS QUANTIFIABLE COMMUNITY BENEFIT AS FOLLOWS: - A SIGNIFICANT MAJORITY OF BAD DEBT IS ATTRIBUTABLE TO LOW-INCOME PATIENTS, WHO, FOR MANY REASONS, DECLINE TO COMPLETE THE FORMS REQUIRED TO ESTABLISH ELIGIBILITY FOR HOSPITALS' CHARITY CARE OR FINANCIAL ASSISTANCE PROGRAMS. A 2006 CONGRESSIONAL BUDGET OFFICE ("CBO") REPORT, NONPROFIT HOSPITALS AND THE PROVISION OF COMMUNITY BENEFITS, CITED TWO STUDIES INDICATING THAT "THE GREAT MAJORITY OF BAD DEBT WAS ATTRIBUTABLE TO PATIENTS WITH INCOMES BELOW 200% OF THE FEDERAL POVERTY LINE." - THE REPORT ALSO NOTED THAT A SUBSTANTIAL PORTION OF BAD DEBT IS PENDING CHARITY CARE. UNLIKE BAD DEBT IN OTHER INDUSTRIES, HOSPITAL BAD DEBT IS COMPLICATED BY THE FACT THAT HOSPITALS FOLLOW THEIR MISSION TO THE COMMUNITY AND TREAT EVERY PATIENT THAT COMES THROUGH THEIR EMERGENCY DEPARTMENT, REGARDLESS OF ABILITY TO PAY. PATIENTS WHO HAVE OUTSTANDING BILLS ARE NOT TURNED AWAY, UNLIKE OTHER INDUSTRIES. BAD DEBT IS FURTHER COMPLICATED BY THE AUDITING INDUSTRY'S STANDARDS ON REPORTING CHARITY CARE. MANY PATIENTS CANNOT OR DO NOT PROVIDE THE NECESSARY, EXTENSIVE DOCUMENTATION REQUIRED TO BE DEEMED CHARITY CARE BY AUDITORS. AS A RESULT, ROUGHLY 40% OF BAD DEBT IS PENDING CHARITY CARE. - THE CBO CONCLUDED THAT ITS FINDINGS "SUPPORT THE VALIDITY OF THE USE OF UNCOMPENSATED CARE [BAD DEBT AND CHARITY CARE] AS A MEASURE OF COMMUNITY BENEFITS" ASSUMING THE FINDINGS ARE GENERALIZABLE NATIONWIDE; THE EXPERIENCE SCHEDULE H, PART III, LINE 9B ACCOUNTS CONSIDERED TO BE CHARITY CARE ARE NOT INCLUDED IN THE BAD DEBT EXPENSE, BUT RATHER, ACCOUNTED FOR AS AN ALLOWANCE. Shore Medical Center provides a full-range of healthcare services to our community regardless of the patients ability to pay. We recognize that a critical part of providing healthcare services includes mitigating concerns our patients may have related to billing matters. This business philosophy is our commitment to the community, patients and family members we serve. This commitment runs parallel to our not for profit mission and is evidenced by the following proactive measures taken by Shore Medical Center to provide financial assistance to our patients. Shore Medical Center has a discounting program to assist patients who are least able to pay. The policy is designed to provide financial relief to our self-pay population by reducing the hospitals standard charge for services rendered. At the time of billing the patient, the charges are reduced to an estimated cost of services. The hospital also ensures that all patients receive information pertaining to the State Charity Care Program for the uninsured and under-insured. To inquire about Shores Self-Pay Billing and Discount Policy, Charity Care or payment arrangements, PATIENTS MAY contact the Patient Financial Services Credit and Collections Office. Shore Medical Center also offers financial counseling and screening for patients to ensure that any potential third party coverage under other government programs, such as Medicaid, can be identified. This service is provided at no cost to the patient. The hospital approves payment arrangements for our patients who cannot pay their bills in full. These payment arrangements can be tailored to the individual needs of the patient. We do not charge additional fees in the form of interest for carrying the balances being paid under these arrangements. The hospital absorbs a significant amount of bad debt annually (balances due by patients that are intentionally not paid), or are incurred as a result of mitigating circumstances, bankruptcy filings and other collection matters. Shore Medical Center pursues collection of balances rightfully owed by patients for services rendered and contracts with third party collection agencies for the purpose of collecting delinquent account balances. The collection agencies operate under the federal fair debt, credit and collection guidelines. Collection agency activity is closely monitored by the hospital to ensure that patient collection efforts are appropriate and in-line with our customer service philosophy. All patient complaints regarding dissatisfaction with services rendered or billing issues are handled promptly and in a courteous manner to ensure that customer service remains the focus of any patient concern. All complaints are considered valid and patient feedback is welcome with respect to disputed matters. SCHEDULE H, PART VI; QUESTION 2 IN ADDITION TO THE COMMUNITY HEALTH NEEDS ASSESSMENT PROCESS OUTLINED IN SCHEDULE H, SECTION B, QUESTIONS 1-12 AND SECTION C, the organization took the following steps in 2013 to ensure that the CHNA was managed in a logical and effective manner included the following: (1) Identifying reputable guides and advice; (2) Engaging community representatives, especially those with public health expertise; (3) Defining the community that we serve; (4) Selecting quality data sources; (5) Reviewing and analyzing available information; and (6) Prioritizing the health and health-related problems. The guides and expert advice for the conducting the assessment included the following: (1) Educational Webinars by the New Jersey Hospital Association; (2) Guide for Planning & Reporting Community Benefit by Catholic Health Association; (3) Mobilizing for Action through Planning and Partnership ("MAPP") by the National Association of County & City Officials; and (4) Schedule H (Form 990) by the US Department of the Treasury Internal Revenue Service. In 2013, Shore MEDICAL CENTER met with public health experts that aided in the CHNA process to report the hospital's findings and share its implementation plan. Partners such as the Atlantic County Division of Public Health, Atlantic City Health Department, the Richard Stockton College of New Jersey Public Health Department, Atlantic County Jail System, Southern New Jersey Family Medical Centers and United Way participated. Discussions of the next steps toward implementation and partnerships occurred. Additionally, Shore MEDICAL CENTER began to address their findings. - Atlantic and Cape May County have some of the highest smoking rates and lung cancer rates in the state. Continued support to maintain the Tobacco Prevention and Treatment Program has been continued despite discontinuation of grant funding from the state in 2011. Additionally educational information is provided as needed to coalition activities for "outdoor smoke free spaces". These types of interventions create an environment that discourages smoking and creates a nonsmoking social norm. - Cape May County has the highest Melanoma Skin Cancer rate in the state. Awareness activities on how to protect our skin and free skin cancer screenings are performed each summer on both the Atlantic and Cape May County Beaches with community partners. In 2013, four screenings occurred (2 in each county) in which participants were educated on sun safety and how to put on sun screen correctly, screened for skin cancers and referred if anything was suspicious. - Atlantic County's heart disease rate is 13.7% higher than the state. Heart disease and stroke is in the leading causes of death for both Atlantic and Cape May County and diabetes accounts for many health complications including heart disease and stroke. Shore Memorial Hospital continues to be committed to raise awareness through multiple free screening opportunities for early detection of these types of chronic diseases. SCHEDULE H, PART VI; QUESTION 3 SHORE MEDICAL CENTER HAS ENGAGED A THIRD PARTY NCO, TO PROVIDE EDUCATION AND ELIGIBILITY PROCESSING FOR CHARITY CARE AND MEDICAID ELIGIBILITY. THIS 3RD PARTY MEETS WITH INPATIENTS, THEIR FAMILIES AND WALK IN PATIENTS TO PROVIDE ALL NECESSARY GUIDANCE FOR THE PATIENT FINANCIAL NEEDS. IN ADDITION THEY ALSO MAKE HOUSE CALLS FOR THOSE THAT NEED FURTHER ASSISTANCE AND HELP IN GETTING TO THE AGENCIES NECESSARY TO COMPLETE STATE APPLICATIONS. THE MEDICAL CENTER ALSO HAS AN ADDITIONAL 4 INDIVIDUALS THAT HELP PATIENTS COMPLETE THESE FORMS IN THE BUSINESS OFFICE, EMERGENCY DEPARTMENT AND THE ADMISSIONS OFFICE. THE MEDICAL CENTER ALSO MAINTAINS SIGNAGE (MULTI LINGUAL) TO DIRECT PATIENTS TO THE HELP THEY MAY NEED. SCHEDULE H, PART VI; QUESTION 4 SHORE MEDICAL CENTER IS LOCATED IN SOMERS POINT, ATLANTIC COUNTY, NEW JERSEY, APPROXIMATELY 10 MILES SOUTH OF ATLANTIC CITY, NEW JERSEY. THE MEDICAL CENTER SERVES THE HEALTHCARE NEEDS OF BOTH THE YEAR ROUND AND SUMMER RESIDENTS OF ATLANTIC AND CAPE MAY COUNTIES AS WELL AS SEASONAL VISITORS FROM OTHER COMMUNITIES AND STATES. ACCORDING TO THE MOST RECENT CENSUS DATA, ATLANTIC COUNTY IS ONE OF THE MOST DIVERSE OF NEW JERSEY'S 21 COUNTIES. OF THE 270,000 PEOPLE RESIDING IN ATLANTIC COUNTY 17.5 PERCENT ARE OF AFRICAN AMERICAN DESCENT AND 15.3 PERCENT ARE OF HISPANIC DESCENT. NEARLY 50,000 RESIDENTS SUFFER FROM DISABILITIES AND MORE THAN 10 PERCENT OF THE POPULATION IS BELOW THE POVERTY LEVEL. SCHEDULE H, PART VI; QUESTION 5 SHORE MEDICAL CENTER IS PROUD TO MAKE A DIFFERENCE IN THE COMMUNITIES WE CALL HOME. OUR GENEROUS MEDICAL CENTER STAFF HAVE PARTICIPATED IN NUMEROUS EVENTS THAT SUPPORT AND EXEMPLIFY THE MEDICAL CENTER'S COMMITMENT TO OUR COMMUNITY. OUR PRIMARY GOAL IS TO CARE FOR AND RESPECT, ALL PATIENTS THEIR FAMILIES AND EACH OTHER. ALONG WITH THE SUPERIOR CARE THAT WE DELIVER EVERY DAY, WE STRIVE TO EDUCATE AND PROMOTE WELLNESS TO THE COMMUNITY THROUGH THE MANY OUTREACH PROGRAMS WE OFFER. MORE RECENTLY, THE MEDICAL CENTER BECAME THE FIRST HOSPITAL IN NEW JERSEY AND ONE OF LESS THAN 50 ORGANIZATIONS WORLDWIDE TO RECEIVE PLANETREE PATIENT-CENTERED CARE DESIGNATION. THE PLANETREE NETWORK IS A PATIENT CENTERED, HOLISTIC APPROACH TO HEALTHCARE, PROMOTING MENTAL, EMOTIONAL, SPIRITUAL, SOCIAL AND PHYSICAL HEALING. WE HOPE TO EMPOWER OUR PATIENTS AND FAMILIES THROUGH THE EXCHANGE OF INFORMATION TO ULTIMATELY ENCOURAGE AND FOSTER HEALING PARTNERSHIPS WITH CAREGIVERS. SCHEDULE H, PART VI; QUESTION 6 NOT FOR-PROFIT SHORE MEMORIAL HEALTH SYSTEM ENTITIES: SHORE MEMORIAL HOSPITAL D/B/A SHORE MEDICAL CENTER -------------------------------------------------- SHORE MEDICAL CENTER IS a 296-bed not-for-profit, acute-care, tax-exempt hospital located in Somers Point, New Jersey. The Medical Center provides general healthcare services to residents within its geographic location for a wide range of inpatient and outpatient services, including medical, surgical, obstetrical, gynecological, pediatric, emergency and ambulatory care. The HOSPITAL is RECOGNIZED BY THE IRS AS AN INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, THE MEDICAL CENTER PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. MOREOVER, THE MEDICAL CENTER OPERATES CONSISTENTLY WITH THE FOLLOWING CRITERIA OUTLINED IN IRS REVENUE RULING 69-545: 1) THE MEDICAL CENTER PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF ABILITY TO PAY, INCLUDING CHARITY CARE, SELF-PAY, MEDICARE AND MEDICAID PATIENTS; 2) THE MEDICAL CENTER OPERATES AN ACTIVE EMERGENCY department FOR ALL PERSONS; WHICH IS OPEN 24 HOURS A DAY, SEVEN DAYS A WEEK, 365 DAYS PER YEAR; 3) THE MEDICAL CENTER MAINTAINS AN OPEN MEDICAL STAFF, WITH PRIVILEGES AVAILABLE TO ALL QUALIFIED PHYSICIANS; 4) CONTROL OF THE MEDICAL CENTER RESTS WITH ITS BOARD OF TRUSTEES; WHICH IS COMPRISED OF INDEPENDENT CIVIC LEADERS AND OTHER PROMINENT MEMBERS OF THE COMMUNITY; AND 5) SURPLUS FUNDS ARE USED TO IMPROVE THE QUALITY OF PATIENT CARE, EXPAND AND RENOVATE FACILITIES AND ADVANCE MEDICAL CARE; PROGRAMS AND ACTIVITIES. SHORE HEALTH SERVICES CORPORATION --------------------------------- SHORE HEALTH SERVICES CORPORATION IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3). THE ORGANIZATION, NOW INACTIVE, is a not-for-profit, tax-exempt controlled affiliate of the Medical Center and was incorporated to hold certain property for future development. SHORE MEMORIAL HEALTH SYSTEM ---------------------------- SHORE MEMORIAL HEALTH SYSTEM IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(1). THE ORGANIZATION FUNCTIONS AS THE PARENT CORPORATION OF AND SUPPORTS THE CHARITABLE PURPOSES, PROGRAMS AND SERVICES OF SHORE MEMORIAL HEALTH SYSTEM AND AFFILIATES, INCLUDING SHORE MEDICAL CENTER, WHICH PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. ThE ORGANZATION also provides leadership and coorindation activities for its affiliates. SHORE MEMORIAL HEALTH FOUNDATION, INC. -------------------------------------- SHORE MEMORIAL HEALTH FOUNDATION, INC. IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(1). THE ORGANIZATION SUPPORTS AND RAISES FUNDS ON BEHALF OF THE SHORE MEMORIAL HEALTH SYSTEM, INCLUDING SHORE MEDICAL CENTER. On December 31, 2015, the Foundation transferred all of its assets and liabilities to the Medical Center. BRIGHTON BAY, LLC ----------------- BRIGHTON BAY, LLC IS A LIMITED LIABILITY COMPANY WHOSE SOLE CORPORATE MEMBER IS SHORE MEDICAL CENTER. BRIGHTON BAY, LLC MAINTAINS AND OPERATES CERTAIN HEALTHCARE RELATED RENTAL REAL ESTATE. SHORE QUALITY PARTNERS, LLC --------------------------- SHORE QUALITY PARTNERS, LLC IS A LIMITED LIABILITY COMPANY WHOSE SOLE CORPORATE MEMBER IS SHORE MEDICAL CENTER. SHORE QUALITY PARTNERS, LLC OPERATES AN INTEGRATED PHYSICIAN NETWORK THAT DOES NOT EMPLOY PHYSICIANS. FOR-PROFIT SHORE MEMORIAL HEALTH SYSTEM ENTITY: SHORE HEALTH ENTERPRISES, INC. ------------------------------ SHORE HEALTH ENTERPRISES, INC. IS A FOR-PROFIT CORPORATION WHOSE SOLE SHAREHOLDER IS SHORE MEMORIAL HEALTH SYSTEM. THIS CORPORATION IS A MANAGEMENT SERVICE ORGANIZATION THAT PROVIDES SERVICES TO SHORE MEMORIAL PHYSICIAN'S GROUP, P.C. SHORE MEMORIAL PHYSICAN'S GROUP, P.C. ------------------------------------- SHORE MEMORIAL PHYSICIAN'S GROUP, P.C. IS A FOR-PROFIT PHYSICIAN PRACTICE PROFESSIONAL CORPORATION CONTROLLED BY SHORE MEDICAL CENTER THROUGH A NOMINEE OWNERSHIP BY A LICENSED PROFESSIONAL DUE TO STATE OF NEW JERSEY CORPORATE PRACTICE OF MEDICINE PROHIBITION RULES AND REGULATIONS. THIS ORGANIZATION WAS INCORPORATED AS A FOR-PROFIT PROFESSIONAL CORPORATION FOR THE PURPOSE of developing an employed physician network. The Physicians Group is designed to achieve a more integrated approach to the delivery of medical care for the community served by the Medical Center. BAYFRONT URGENT CARE PROFESSIONAL ASSOCIATION D/B/A SHORE URGENT CARE, P.A. --------------------------------------------------------------------- SHORE URGENT CARE, P.A. IS A CONTROLLED AFFILIATE OF SHORE MEMORIAL PHYSICIANS GROUP, P.C.; A FOR-PROFIT PHYSICIAN PRACTICE PROFESSIONAL ASSOCIATION CONTROLLED BY SHORE MEDICAL CENTER THROUGH A NOMINEE OWNERSHIP BY A LICENSED PROFESSIONAL DUE TO STATE OF NEW JERSEY CORPORATE PRACTICE OF MEDICINE PROHIBITION RULES AND REGULATIONS. THIS ORGANIZATION WAS INCORPORATED AS A FOR-PROFIT PROFESSIONAL ASSOCIATION FOR THE PURPOSE OF OPERATING URGENT CARE CENTERS IN THE COMMUNMITY SERVED BY THE MEDICAL CENTER. SHORE PATHOLOGY ASSOCIATES, P.C. -------------------------------- SHORE PATHOLOGY ASSOCIATES, P.C. IS A FOR-PROFIT PHYSICIAN PRACTICE PROFESSIONAL CORPORATION CONTROLLED BY SHORE MEDICAL CENTER THROUGH A NOMINEE OWNERSHIP BY A LICENSED PROFESSIONAL DUE TO STATE OF NEW JERSEY CORPORATE PRACTICE OF MEDICINE PROHIBITION RULES AND REGULATIONS. THIS ORGANIZATION WAS INCORPORATED AS A FOR-PROFIT PROFESSIONAL CORPORATION FOR THE PURPOSE OF EMPLOYING PATHOLOGISTS THAT WORK AT THE MEDICAL CENTER. SHORE HOSPITALISTS ASSOCIATES, P.A. ----------------------------------- SHORE HOSPITALISTS ASSOCIATES, P.A IS A FOR-PROFIT PHYSICIAN PRACTICE PROFESSIONAL ASSOCIATION CONTROLLED BY SHORE MEDICAL CENTER THROUGH A NOMINEE OWNERSHIP BY A LICENSED PROFESSIONAL DUE TO STATE OF NEW JERSEY CORPORATE PRACTICE OF MEDICINE PROHIBITION RULES AND REGULATIONS. THIS ORGANIZATION WAS INCORPORATED AS A FOR-PROFIT PROFESSIONAL ASSOCIATION FOR THE PURPOSE OF ENGAGING IN THE PRACTICE OF MEDICINE AND SURGERY IN THE COMMUNITY SERVED BY THE MEDICAL CENTER. SHORE SPECIALTY CONSULTANTS, P.A. --------------------------------- SHORE SPECIALTY CONSULTANTS, P.A. IS A FOR-PROFIT PHYSICIAN PRACTICE PROFESSIONAL ASSOCIATION CONTROLLED BY SHORE MEDICAL CENTER THROUGH A NOMINEE OWNERSHIP BY A LICENSED PROFESSIONAL DUE TO STATE OF NEW JERSEY CORPORATE PRACTICE OF MEDICINE PROHIBITION RULES AND REGULATIONS. THIS ORGANIZATION WAS INCORPORATED AS A FOR-PROFIT PROFESSIONAL ASSOCIATION FOR THE PURPOSE OF ENGAGING IN THE PRACTICE OF MEDICINE AND SURGERY IN THE COMMUNITY SERVED BY THE MEDICAL CENTER. SCHEDULE H, PART VI; QUESTION 7 NOT APPLICABLE. THE ENTITY AND RELATED PROVIDER ORGANIZATIONS ARE LOCATED IN NEW JERSEY. THE STATE OF NEW JERSEY DOES NOT REQUIRE HOSPITALS TO ANNUALLY FILE A COMMUNITY BENEFIT REPORT WITH THE STATE OF NEW JERSEY. true JEWISH COMMUNITY CENTER OF ATLANTIC COUNTY 501 N JEROME AVENUE MARGATE NJ 08234 210634476 501(c)(3) 15000 PROGRAM SUPPORT SOMERS POINT BAYFEST COMMITTEE PO BOX 697 SOMERS POINT NJ 08244 10000 PROGRAM SUPPORT UNITED WAY OF ATLANTIC COUNTY INC 1709 BENJAMIN FRANKLIN PARKWAY PHILADELPHIA PA 19103 210646540 501(c)(3) 8380 PROGRAM SUPPORT SOMERS POINT FOUNDATION FOR EDUCATION 121 W New York Ave Somers Point NJ 08244 223435116 501(C)(3) 41500 PROGRAM SUPPORT OCEAN CITY CHAMBER OF COMMERCE PO Box 1706 Ocean City NJ 08226 222810508 501(C)(3) 12040 PROGRAM SUPPORT SAINT JOSEPH REGIONAL SCHOOL 11 Harbor Lane Somers Point NJ 08244 020315368 501(C)(3) 5400 PROGRAM SUPPORT SOUTH JERSEY JAZZ SOCIETY Inc PO Box 329 Somers Point NJ 08244 201268261 501(C)(3) 20000 PROGRAM SUPPORT 6 1 SCHEDULE I, PART I, QUESTION 2 GRANTS ARE MONITORED BY THE ORGANIZATION'S FINANCE PERSONNEL THROUGH THE UTILIZATION OF COST CENTERS AND OTHER INFORMATION; INCLUDING WRITTEN DOCUMENTATION AND RECEIPTS. X true true X X X X X true true false false false false false true false RONALD W JOHNSON TRUSTEE - PRESIDENT/CEO 533372 0 109594 0 297772 0 100144 0 22231 0 1063113 0 0 0 DAVID R HUGHES CHIEF FINANCIAL OFFICER 349725 0 69800 0 4845 0 10388 0 25808 0 460566 0 0 0 LINDA S KENWOOD COO/CNO 269206 0 43520 0 8059 0 10911 0 26917 0 358613 0 0 0 JEANNE M ROWE CHIEF MEDICAL OFFICER 353773 0 56000 0 6062 0 10547 0 16091 0 442473 0 0 0 PAULINE MCDANIEL CHIEF DEV OFF(TERMED 10/21/15) 196712 0 9400 0 117933 0 9313 0 18570 0 351928 0 0 0 FREDERICK L BANNER CHIEF INFORMATION OFFICER 207375 0 34016 0 1649 0 7380 0 32091 0 282511 0 0 0 ALAN L BEATTY VICE PRESIDENT HUMAN RESOURCES 192565 0 31312 0 3174 0 9991 0 30644 0 267686 0 0 0 BENNETT E OJSERKIS MD PHYSICIAN 296669 0 0 0 0 0 11791 0 26298 0 334758 0 0 0 KENT VOLOSIN PHYSICIAN ADVISOR 254307 0 13925 0 2026 0 9581 0 32994 0 312833 0 0 0 ROBERT L WOOD FINANCE DIRECTOR 196875 0 4994 0 933 0 5890 0 27432 0 236124 0 0 0 ROBIN KEYACK AVP SURGICAL SERVICES 186656 0 4762 0 1651 0 8418 0 20278 0 221765 0 0 0 MICHAEL J SMITH ADM DIR OF PATIENT FIN SVCS 178035 0 3475 0 1230 0 6802 0 32427 0 221969 0 0 0 SCHEDULE J, PART 1, QUESTION 1 THE ORGANIZATION MAINTAINS A CLUB MEMBERSHIP FOR BUSINESS PURPOSES AND MEETINGS. THIS MEMBERSHIP ENTITLES CERTAIN SHORE MEDICAL CENTER SENIOR EXECUTIVES TO THE USE OF THE CLUB'S FACILITIES. THE AMOUNTS OUTLINED HEREIN RELATING TO THE PERSONAL USE OF THIS CORPORATE MEMBERSHIP ARE TREATED AS TAXABLE WAGES AND ARE INCLUDED ON EACH INDIVIDUAL'S RESPECTIVE 2015 FORM W-2 AS TAXABLE WAGES: RONALD W. JOHNSON, $357; DAVID R. HUGHES, $2,223; LINDA S. KENWOOD, $1,896; JEANNE M. ROWE, $1,160; PAULINE MCDANIEL, $967 AND ALAN L. BEATTY, $357. SCHEDULE J, PART I; QUESTION 4A PAULINE MCDANIEL RECEIVED A SEVERANCE PAYMENT IN THE AMOUNT OF $115,170 DURING CALENDAR YEAR 2015. THE AMOUNT OUTLINED HEREIN WAS INCLUDED IN HER 2015 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES. SCHEDULE J, PART I; QUESTION 4B THE AMOUNT REFLECTED IN COLUMN B(III) FOR THE FOLLOWING INDIVIDUAL INCLUDES CURRENT YEAR VESTING IN AN INTERNAL REVENUE CODE SECTION 457(F) PLAN (NON-QUALIFIED DEFERRED COMPENSATION PLAN) AS THE AMOUNT was NO LONGER SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. THE AMOUNT OUTLINED HEREIN Was INCLUDED in his 2015 FORM W-2 AS TAXABLE WAGES: RONALD W. JOHNSON, $275,746. SCHEDULE J, PART I; QUESTION 7 CERTAIN INDIVIDUALS INCLUDED IN SCHEDULE J, PART II RECEIVED A BONUS DURING CALENDAR YEAR 2015 WHICH AMOUNTS WERE INCLUDED IN COLUMN B(II) HEREIN AND IN EACH INDIVIDUAL'S 2015 FORM W-2 AS TAXABLE WAGES. PLEASE REFER TO THIS SECTION OF THE FORM 990, SCHEDULE J FOR THIS INFORMATION BY PERSON BY AMOUNT. A NJ HEALTH CARE FACILITIES FINANCING AUTHORITY 221487590 64579FYS6 2009-09-17 30000000 BUILDINGS & STRUCTURES false false false B NJ HEALTH CARE FACILITIES FINANCING AUTHORITY 221987084 64579FZH9 2010-01-27 15000000 BUILDINGS & STRUCTURES false false false C NJ HEALTH CARE FACILITIES FINANCING AUTHORITY 221987084 2011-12-01 13000000 BUILDINGS & STRUCTURES false false false D NJ HEALTH CARE FACILITIES FINANCING AUTHORITY 221987084 2013-09-01 16890000 REPAY 2003 BONDS false false false A 0 0 30000000 0 0 0 598394 0 0 29401606 0 0 2011 false false true true B 0 0 15000000 0 0 0 300000 0 0 14700000 0 0 2011 false false true true C 0 0 13000000 0 0 0 218370 0 0 12781630 0 0 2011 false false true true D 0 0 16890000 0 0 0 104620 0 0 16785380 0 0 2013 false true true true A false true false false 0.00188 0.00188 true false false true B false false false false 0 true false false true C false false true false 0 true false false true D false false false false 0 true false false true A false true true true BARCLAY'S BANK PLC 30. false false 0 false true B false true true false 0 false 0 false true C false true false false 0 false 0 false true D false true true false 0 false 0 false true A true B true C true D true SCHEDULE K, PART IV, LINE C THE REBATE COMPUTATION FOR THE 2009 NEW JERSEY HEALTH CARE FACILITIES FINANCING AUTHORITY TAX-EXEMPT BOND ISSUANCE WAS PERFORMED ON DECEMBER 30, 2014. THE REBATE COMPUTATION FOR THE 2010 NEW JERSEY HEALTH CARE FACILITIES FINANCING AUTHORITY TAX-EXEMPT BOND ISSUANCE WAS PERFORMED ON January 16, 2015. FORM 990, PART III; STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS Background ========== Shore Medical Center ("THE MEDICAL CENTER") is a general medical and surgical hospital recognized by the IRS as an internal revenue code section 501(c)(3) tax-exempt organization. Pursuant to its charitable purposes, Shore provides medically necessary healthcare services to all individuals in a non-discriminatory manner regardless of race, color, creed, sex, national origin, or ability to pay. Moreover, THE MEDICAL CENTER operates consistently with the following criteria outlined in IRS revenue ruling 69-545: 1) THE MEDICAL CENTER provides medically necessary healthcare services to all individuals regardless of ability to pay, including charity care, self-pay, Medicare and Medicaid patients; 2) THE MEDICAL CENTER operates an active emergency department for all persons; which is open 24 hours a day, seven days a week, 365 days per year; 3) THE MEDICAL CENTER maintains an open medical staff, with privileges available to all qualified physicians; 4) Control of THE MEDICAL CENTER rests with its Board of Trustees; which is comprised of independent civic leaders and other prominent members of the community; and 5) Surplus funds are used to improve the quality of patient care, expand and renovate facilities and advance medical care; programs and activities. The operations of THE MEDICAL CENTER, as shown through the factors outlined above and other information contained herein, clearly demonstrate that the medical center provides substantial community benefit and that the use and control of Shore is for the benefit of the public and that no part of the income or net earnings of the organization inures to the benefit of any private individual nor is any private interest being served other than incidentally. Mission statement ================= We care for and respect all patients, their families and each other. Organization overview ===================== THE MEDICAL CENTER is a not-for-profit healthcare resource that has served southern New Jersey for more than 70 years. In that time, THE MEDICAL CENTER has become known for providing a compassionate level of service that goes hand in hand with its advanced technology and modern medical facilities. THE MEDICAL CENTER is a 296 bed, not-for-profit acute care medical center located in Somers Point, Atlantic County, New Jersey, approximately 10 miles south of Atlantic City, New Jersey. THE MEDICAL CENTER is licensed and approved by the state of New Jersey to operate as a general acute care hospital providing both inpatient and outpatient services to the community. Founded in 1928 and chartered in 1940 as a not-for-profit corporation, THE MEDICAL CENTER serves the healthcare needs of both the year-round and summer residents of Atlantic and Cape May counties, as well as visitors from other communities and states. THE MEDICAL CENTER has undergone more than fourteen major construction and renovation projects since 1940 to provide necessary facilities and services for its expanding patient population. In 2013, THE MEDICAL CENTER unveiled a new state-of-the-art medical oncology suite on the third floor of its freestanding Cancer Center. The 3,600 square foot expansion features eight spacious infusion therapy bays, three exam rooms, a family waiting room, nutrition center and a fully equipped and stocked pharmacy with a full-time oncology pharmacist. THE MEDICAL CENTER engages the talents and teamwork of the best and brightest people in the industry. Our team of physicians, nurses, technologists, managers, financial experts, Board of Trustees and our affiliates all work together to ensure that the community has access to the best healthcare resources when needed. THE MEDICAL CENTER continues to be accredited by the Joint Commission, the nation's predominant standards setting and accrediting body in healthcare, as a primary stroke center. Shore also is also certified by the Joint Commission for its spine surgery and hip and knee replacement programs in recognition of the medical center's strict adherence to quality standards. In 2015, THE MEDICAL CENTER received the following honors for its quality and safety measures: Shore Medical Center is a High Quality and Safety organization -------------------------------------------------------------- - 2015 The Joint Commission survey outcome exceeds expectation for Hospital. Accreditation and Disease Specific recertification for Stroke, Spine, Hip and Knee -------------------------------------------------------------- - Leapfrog Hospital Safety Score A concurrently for 3 cycles; - Leapfrog Horizon Recognition Program Achievement recognition; - No Hospital Acquired Condition Reduction Program Payment Reduction; - Pneumonia Core Measure 2014 - 98.4% and 2015 - 100%; AND - Heart Failure Core Measure 2014 - 97.6% and 2015 - 99.5%. In 2015, more than 9,230 patients were admitted to the medical center, and approximately 44,465 were treated in Shore's emergency department. Community focused education ============================ THE MEDICAL CENTER's wellness program has been an integral part of the community, offering health education and screenings for more than 20 years. In 2015 thousands of local residents participated in clinical encounters, including approximately 500 blood pressure screenings and more than 1,000 participants in additional health screenings such as glucose and cholesterol screenings. THE MEDICAL CENTER is the lead agency for the New Jersey Cancer Education and Early Detection ("CEED") program in Atlantic County. The program provides cancer screening services at convenient locations within the communities we serve. THE MEDICAL CENTER coordinated 645 clinical breast exams, 279 mammograms, 717 cervical cancer screenings, 81 colorectal screenings and 47 prostate screenings for the underserved population. In 2015, THE MEDICAL CENTER received $393,330 in CEED grant funding for these screenings and matched $20,111. THE MEDICAL CENTER is also lead agency for the Comprehensive Cancer Control ("CCC") coalitions to provide policy, environmental and system changes in Atlantic and Cape May County in an effort to reduce cancer. In 2015, THE MEDICAL CENTER received $138,329 for these initiatives. In 2015, 2,940 individuals were part of the education and outreach conducted through CEED and CCC through awareness events, workshops or lectures. Childbirth education, breast feeding, sibling preparation and other programs to welcome a newborn into the family are offered to the entire community. THE MEDICAL CENTER's website provides information on medical center programs, services and physicians. It also offers educational videos, health-focused articles and assessments. THE MEDICAL CENTER's physician finder service is free and available on the internet. The service matches a person's needs such as specialty, location, insurance and office hours to a Shore medical staff physician. Shore Medical Center, in partnership with Cape Regional Medical Center and Inspira Health NETWORK is part of a Health Information Exchange called NJ SHINE. This Health Information Exchange is comprised of a Physician Portal and a Patient Portal. The Patient Portal is designed to help improve the healthcare for patients through the real-time sharing of medical information. Patients can view test results, reports, medications and other healthcare information on services provided by Shore Medical Center, Inspira and Cape Regional quickly and efficiently. This greatly impacts a patient's continuity of care by providing timely access to healthcare information, avoiding unnecessary lab tests or prescribing medications that might interact with other medications the patient is on. The Physician Portal and Patient Portal can be accessed at www.shoremedicalcenter.org. Uncompensated care ================== THE MEDICAL CENTER has long been a regional leader in meeting its commitment to the medically underserved members of the community. In addition to its community outreach programs, the medical center provides substantial amounts of uncompensated care to those least able to pay for these services. In keeping with its mission to care for patients, the medical center serves all without regard to ability to pay. In 2015 THE MEDICAL CENTER spent approximately $10.7 million at cost for medical services delivered to these patients. The THE MEDICAL CENTER only received a state subsidy of approximately $395,000 to offset this amount. FORM 990, PART III; STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS THE MEDICAL CENTER recognizes the financial difficulty imposed on the self-pay patient who is least able to afford to pay for healthcare services when billed at the medical center's standard charges. Therefore the medical center established an innovative policy to address the disparity between hospital-billed charges and the actual cost of providing care to the self-pay patient or under-insured patient. The method adopted is based upon sound accounting principles to determine the actual cost of providing care to patients using a known standard developed for the Medicare cost report. The policy is to apply the most current hospital specific Medicare cost to charge ratio to the self-pay patient's total charge balance and adjust the bill to cost. This adjustment is limited only to those patients not covered by insurance. This ratio is subject to change as determined by the Medicare fiscal intermediary. Patients unable to pay the cost adjusted bill in full are permitted to enter into a hospital-approved payment arrangement. Payment arrangements are determined based upon the financial condition of the patient and paid over time using our existing payment arrangement methodology. As a non-profit healthcare provider, it is THE MEDICAL CENTER's responsibility to deliver high-quality healthcare regardless of the patient's ability to pay. THE MEDICAL CENTER is committed to the community that it serves. The challenge of meeting the high costs of providing quality health services is made possible through the dedication of physicians, staff and volunteers. Affiliations ============ THE MEDICAL CENTER is a proud member of the Jefferson Neuroscience Network. The Shore Neuroscience Center's extraordinary high-tech diagnosis and treatment options, which are enhanced through the advanced technology found within the Shore Surgical Pavilion, are delivered with the caring touch expected from THE MEDICAL CENTER. As a member of the Jefferson Neuroscience Network, THE MEDICAL CENTER can ensure the highest quality care for area residents. Specialists from the Shore Neurosciences Center and the Jefferson Neuroscience Network collaborate using a multi-disciplinary approach to evaluation, diagnosis and treatment. Highly complex cases can be referred with accuracy and speed, aided by a seamless exchange of information. In 2015, THE MEDICAL CENTER fully transitioned over to using Mayo Medical Laboratories ("MML") as its primary reference laboratory, a relationship established in 2014 that gives THE MEDICAL CENTER access to Mayo Clinic's extensive menu of laboratory tests and clinical expertise, while enhancing the efficiency and affordability of advanced laboratory testing. Through this partnership, Shore has access to more advanced diagnostic and newly developed tests, especially in the areas of genetic and molecular testing. In addition, Mayo Clinic physicians and scientists in every specialty laboratory will be available for consultation regarding test selection, utilization and methodologies and result interpretation THE MEDICAL CENTER is pleased to partner with Advanced Radiology Solutions ("ARS") to provide superior diagnostic imaging services. The ARS team has been accredited by the Joint Commission for its Teleradiology Services. ARS is the only one within 100 miles of THE MEDICAL CENTER to earn this recognition for its high quality services. The ARS team includes fellowship-trained and board certified radiologists who cover the broad spectrum of radiology, including interventional radiology, breast imaging, musculoskeletal radiology and neuroradiology. ARS, under the leadership of President and Medical Director Thomas Yu, M.D., has a rich history of team building and providing patients with a seamless continuum of care. Through its interventional radiology program, ARS has developed joint ventures in the fields of nephrology and vascular surgery, leading to successful access and endovascular aneurysm repair programs. ARS' radiologists are also trained in coronary CTA, CT colonography and breast MRI interpretations, making ARS one of the region's leading destinations for radiology services. Advanced ICU Care offers ICU programs to improve the clinical performance of its hospital partners using a comprehensive approach with a proven track record of success. As the nation's largest tele-ICU provider, Advanced ICU Care has successfully implemented and managed more programs than any other organization. The Advanced ICU Care tele-ICU program combines experienced intensivist-led care teams, sophisticated technology and collaborative programs with hospital staff and physicians to achieve a rigorous focus on evidence-based best practices that improve patient care and safety. THE MEDICAL CENTER is pleased to be affiliated with Onsite Neonatal Partners. With a unique model that places neonatologists in hospitals 24 HOURS A DAY, 7 DAYS A WEEK, 365 DAYS A YEAR, this nationally renowned group of nearly 40 neonatologists is able to improve the quality of care and reduce risks for more than 100,000 premature or otherwise fragile full term infants. Onsite physicians also provide staffing for Shore's Pediatric Care Center. Additionally, THE MEDICAL CENTER's Pediatric Care Center became aligned with St. Christopher's Hospital for Children in Philadelphia to provide 24/7 pediatric care at Shore Medical Center. THE MEDICAL CENTER's long-standing affiliation with Penn Medicine continues to be a valuable partnership, providing patients with access to advanced treatment in multiple disciplines, including maternal-fetal medicine and cardiac care. Heart disease patients can turn to THE MEDICAL CENTER and Penn Heart & Vascular. Located in THE MEDICAL CENTER's Surgical Pavilion, A 400-square-foot, state-of-the-art cardiac catheterization suite is staffed by Penn physicians trained in performing serious cardiac procedures. When needed, the Penn Heart Rescue helicopter is available 24 hours per day, seven days per week to provide rapid transport to Philadelphia. The Penn Maternal-Fetal Medicine Program at Shore provides extra care to mothers-to-be and their children. Women facing high-risk pregnancies can be treated for a variety of conditions, including heart disease, placental problems, diabetes, multiple gestation pregnancy and later-age pregnancy. Dr. Robert Debbs, D.O., a renowned specialist with Penn Medicine and STHE MEDICAL CENTER, leads the Maternal-Fetal Medicine program. THE MEDICAL CENTER has physicians on staff from the Rothman Institute, which is internationally recognized for excellence in orthopedic science and technology. These physicians are experts in their specialty areas and leaders in clinical research and technology. Spirit of Shore: A Planetree Initiative ======================================= Hospitals are busy places, but the staff at THE MEDICAL CENTER is never too busy to pay attention to the thoughtful gestures and kind acts that can make a meaningful difference to patients and their family members. This philosophy is the driving force behind the Spirit of Shore initiative at THE MEDICAL CENTER. The Spirit of Shore reflects the culture of caring that is unique to Shore. This culture is further evident in the medical center's affiliation with Planetree, a global non-profit organization that promotes patient-centered care in healing environments. THE MEDICAL CENTER is the first and only hospital in New Jersey to be awarded the prestigious Planetree Designation, recognizing THE MEDICAL CENTER's commitment to patient-centered care. There is a dedicated Planetree Resource Room within the Surgical Pavilion gives patients and visitors a location where they can do research or enjoy some quiet time. Since the implementation of its Spirit of Shore program in 2008, THE MEDICAL CENTER has been on a journey to create and nurture an institutional culture of patient-centered clinical, emotional and spiritual care for its patients, their families and staff. Initiatives touch every corner of the THE MEDICAL CENTER'S community, promoting an environment where everyone is a caregiver, regardless of their position within the organization. Our many programs and initiatives include, BUT ARE NOT LIMITED TO, THE FOLLOWING: - Shared Medical Record; - Comfortable Family Lounges; - Patient Directed Visitation; - Hourly Rounds; - Leadership Rounds; - Bedside Report; - Tele-ICU; - No Passing Zone; - Motorized Scooters for Patients; - Community Education; AND - Weekly Prayer Circles. FORM 990, PART III; STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS THE MEDICAL CENTER's No One Dies Alone program is a volunteer program that provides companions for patients near death who do not have any family or close friends to be with them in their final hours. Volunteers sit with patients and offer solace through meditation, music, poems or simply through touch. THE MEDICAL CENTER's Patient and Family Advisory Council is made up of former Shore patients and family members, community members and volunteers. Group members share stories, provide valuable feedback on their hospital experiences and assist leadership in decision making by incorporating their experiences into Shore's philosophy and operation. THE MEDICAL CENTER staff members also use these meetings to educate the council about the medical center and healthcare issues in general. Centers of Excellence ===================== THE MEDICAL CENTER's recognized Centers of Excellence include but are not limited to the following: Cancer Center ------------- A cancer diagnosis is an experience that is unique to every individual. At THE MEDICAL CENTER, we respond to each patient with optimism and real solutions: a comprehensive, nationally recognized program combining the best available technology, experts in the field and quality services, including our state-of-the-art facility. The THE MEDICAL CENTER Cancer Center was designed with one goal in mind: fulfilling our continuing mission to provide the most advanced healthcare services by using A multidisciplinary approach for you and your family in a warm and caring environment. A Nationally-Recognized Cancer Care Program ------------------------------------------- Since 1987, THE MEDICAL CENTER has received approval from the American College of Surgeons Commission on Cancer by meeting or exceeding the organizations stringent standards for patient care. Only one in four community cancer programs nationwide are qualified to earn this level of approval. The THE MEDICAL CENTER Cancer Center specializes in prevention, advanced pulmonary diagnostics, early detection, radiation oncology, medical oncology, nurse navigation and support services, including nutritional support, guided imagery, social services, tobacco prevention and treatment and a cancer survivorship program. CardioVascular Institute ("CVI") -------------------------------- THE MEDICAL CENTERs CardioVascular Services brings university setting cardiac and vascular services to the community. The facility houses sophisticated technology for the diagnosis and treatment of disorders of the heart and circulatory system. THE MEDICAL CENTERs comprehensive cardiac care program includes advanced diagnostic capabilities and treatment options, as well as prevention, rehabilitation and education for those with coronary and vascular disease. THE MEDICAL CENTERs 138,000-squarefoot Surgical Pavilion includes a state-of-the-art cardiovascular services suite for invasive procedures such as cardiac catheterizations. Patients in need of less invasive testing, including EKGs and echocardiograms, can also have their testing done in the CardioVascular suite. THE MEDICAL CENTER also offers a non-invasive heart and lung testing center, featuring cardiac stress testing, holter-monitoring and transesophageal echocardiography. Penn Heart and Vascular at Shore Medical Center ----------------------------------------------- As a member of Penn Heart and Vascular, THE MEDICAL CENTER provides residents of the community with access to a number of high-tech diagnoses, treatments and services. Our affiliation with this national leader in heart care enhances the level of extraordinary cardiac care available in our CardioVascular Suite and provides quick, coordinated access to a wide range of world-class cardiac services. THE MEDICAL CENTER also provides 24-hour, seven-day-a-week emergency transport to Philadelphia via ambulance or PennSTAR helicopter for cardiac patients in need. Emergency Services ------------------ (1) Emergency Department Whether it's a sprained ankle from a run on the boardwalk or a life-threatening heart attack or stroke, the emergency staff at THE MEDICAL CENTER is ready, willing and able to help. Board certified emergency medicine physicians, who are specially trained in cardiology, neurosciences, orthopedics, obstetrics, pediatrics and more, staff the Shore Medical Center Emergency Department. (2) Nationally Recognized Primary Stroke Center Having received Advanced Certification as a Primary Stroke Center by The Joint Commission, our Emergency Department staff and physicians are trained in the care and treatment of stroke patients and skilled in administering tPA, the "clot busting" medication that can provide full cognitive and physical recovery when administered in time. We also provide 24-hour neurology and neurosurgery physician care. Through our membership in the Jefferson Neuroscience Network, Jefferson neuroscience specialists are available digitally 24/7 to evaluate patients, speak with their families and, if needed, facilitate their transfer to another facility for care. (3) Penn Heart Rescue Through the Penn Heart Rescue Program, patients who arrive at the Shore Emergency Department with symptoms of a heart attack can immediately be referred and transported via helicopter to Penn Presbyterian Medical Center in Philadelphia, a part of Penn Medicine. While the helicopter is en route, a flight nurse and paramedic perform the essential tests needed to prepare the patient for an emergency angioplasty so that no time is lost during the 25-minute helicopter flight. In 2015, THE MEDICAL CENTERs Clinical Decision Unit, an extension of our Emergency Department designed to provide our observation patients with quality care and superior customer service in an efficient and timely manner, became permanent. This designated space is a high-priority unit where patients are monitored and evaluated to determine whether they should be transitioned to inpatient care or discharged for further outpatient follow-up as necessary. After a successful threemonth pilot of the Clinical Decision Unit, THE MEDICAL CENTER made the Clinical Decision Unit permanent, renovating the space in 2015 to provide a better patient experience. Neuroscience Center ------------------- THE MEDICAL CENTER has received Advanced Certification as a Primary Stroke Center by The Joint Commission, earning the organization's Gold Seal of Approval for strict adherence to the national standards and guidelines that help diagnose and treat stroke faster with better outcomes for our patients. Using state-of-the-art technology, including leading-edge, computer-assisted image guidance and microsurgical instrumentation, Shore's board certified neurosurgeons, neurologists, specially trained nurses and technical staff are able to diagnose and treat neurological injuries and disorders with amazing precision. THE MEDICAL CENTER's Neurosciences Center provides extraordinary high-tech diagnosis and treatment services, which are enhanced through the advanced technology found within the Shore Surgical Pavilion and delivered with the caring touch you expect from THE MEDICAL CENTER. Along with its Penn Medicine affiliation, THE MEDICAL CENTER is a member of the world-renowned Jefferson Neuroscience Network, which further ensures the highest quality care for area residents. Specialists from the Shore Neurosciences Center, Penn Medicine and the Jefferson Neuroscience Network collaborate using a multi-disciplinary approach to evaluation, diagnosis and treatment. This team approach provides unmatched services and medical sophistication to our community, a seamless delivery of care and rehabilitation designed to produce the best medical outcomes possible. Maternity Care Center --------------------- THE MEDICAL CENTER has a family-centered approach when it comes to childbirth and the hospitalization of a child. The Maternity Care Center provides patients with a special combination of compassion, expertise and advanced technology. Special attention is paid to helping pregnant mothers and new families develop and maintain those early bonds. THE MEDICAL CENTER's family centered approach to care is also evident in the inpatient Pediatric Care Center. In 2015, 1,238 babies were born at THE MEDICAL CENTER. Maternal-Fetal Medicine Program -------------------------------- Sometimes a woman needs additional expertise in the form of a maternal-fetal medicine specialist - an obstetrician who is trained in fetal medicine and high-risk pregnancies. Through our affiliation with Penn Medicine and renowned specialist Dr. Robert Debbs, D.O., the Penn Maternal-Fetal Medicine Program at THE MEDICAL CENTER provides these expectant mothers with the specialized care they need. FORM 990, PART III; STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS Groundbreaking Pediatric Care Center ------------------------------------- THE MEDICAL CENTER's kid-friendly Pediatric Care Center is the first of its kind in New Jersey, featuring a dedicated and separate pediatric treatment area for minor illnesses and injuries, as well as inpatient rooms. Children are seen by expert Emergency Department physicians in consultation with the physicians of St. Christopher's Onsite Neonatal Partners. THE MEDICAL CENTERs Laborist program ensures that a highly trained obstetrician-gynecologist is onsite at Shore 24 hours a day, seven days a week to assist patients in labor until their own physician arrives. The Laborist program features seven skilled laborists who rotate to assist with gynecological emergencies, inpatient consultations, emergency C-sections and other needs. Thanks to the Laborist program, births at Shore are on the rise, and weve seen a significant reduction in the hospital's C-section rates. Advanced Spine & Orthopedic Institute ------------------------------------- THE MEDICAL CENTER Advanced Spine & Orthopedic Institute ("ASOI") is unparalleled, offering a comprehensive continuum of care within a highly integrated healthcare delivery network that takes our patients from diagnosis through treatment and rehabilitation. We help patients deal with everything from everyday aches and strains to sports injuries, serious spine and orthopedic injuries and disease, as well as joint replacement and reconstruction. Our goal is to return our patients to normal function as quickly and safely as possible. THE MEDICAL CENTER's Spine Surgery and Hip and Knee Replacement programs have received the Gold Seal of Approval for healthcare quality by The Joint Commission. Advanced Care from the Region's Top Physicians ---------------------------------------------- The exceptional spine surgeons at THE MEDICAL CENTER have access to some of the most advanced technology available in their fields. When a patient's problem exceeds our advanced capabilities, THE MEDICAL CENTER's affiliation with Penn Medicine and our membership in the Jefferson Neuroscience Network allow for a seamless transfer of care to specialists at these two leading Philadelphia healthcare providers, in addition to the area's most exceptional and passionate physicians. Joint Replacement & Spine Education ----------------------------------- Joint and spine education classes are offered regularly for patients about to undergo joint replacement or spine surgery, as well as for the community at large through THE MEDICAL CENTER's Advanced Spine & Orthopedic Institute. Medical Services ================ Consistent with revenue ruling 69-545, all qualified physicians are eligible for medical staff privileges. During 2015, THE MEDICAL CENTER had 385 physicians on its medical staff comprised of the following medical specialties: - Alcohol & drug dependency; - Allergy/immunology; - Anesthesiology; - Cardiology; - Dermatology; - Emergency medicine; - Endocrinology; - Family practice; - Gastroenterology; - Gynecology; - Hematology; - Internal medicine; - Infectious disease; - Maternal & Fetal medicine; - Medical oncology; - Nephrology; - Neurological surgery; - Neurology; - Obstetrics; - Ophthalmology; - Orthopedic surgery; - Otorhinolaryngology; - Pain management; - Pathology; - Pediatrics; - Physical medicine/rehabilitation; - Plastic surgery; - Podiatry; - Psychiatry; - Psychology; - Pulmonary medicine; - Radiation therapy; - Radiology; - Rheumatology; - General Surgery; - Trauma Surgery; - Thoracic Surgery; - Vascular Surgery; and - Urology. Community Programs and Medical Screenings ========================================= THE MEDICAL CENTER provides numerous medical screening and other programs and services to the community in furtherance of its tax-exempt purposes including the following: 1. Shore Speakers Bureau - a free program where Shore healthcare specialists and educators provide screenings, give presentations and do question & answer sessions for community groups who request them. 2. Cancer screenings for the uninsured funded by the NJ CEED grant. - breast; - cervical; - colorectal; - prostate; and - skin cancer screenings for the public at area beaches funded by the Office of Cancer Control and Prevention grant. 3. Mammograms 4. Annual Bayfest Health Fair - cholesterol; - glucose; - blood pressure screening; - stroke assessment; - cardiac assessment; and - sleep and balance testing. 5. JCC Senior Expo - cholesterol; - glucose; - blood pressure screening; - stroke risk assessment; - cardiac risk assessment; - pharmaceutical advice; and - sleep and balance testing. Please note that the aforementioned list of medical screening programs is not an all inclusive list. More than 2,500 individuals participated in medical screenings, educational programs and other free wellness programs provided by THE MEDICAL CENTER during 2015. Lectures and seminars ====================== THE MEDICAL CENTER provides numerous lectures, seminars and other educational programs to the community in furtherance of its tax exempt purposes including the following: 1. Shore Beginnings: Prenatal and Wellness - preparation for childbirth and early parenting; - nursing your baby; - sibling preparation classes; - mom-to-mom (post-partum support group); and - maternal child health community outreach. 2. Cancer Recovery and Supportive Care Services 3. Adult Support Groups - Living at the Shore with Lymphedema; and - Look good....Feel better. 4. Smoking Cessation 5. Free surgical education programs (Neck & Spine Surgery, Joint Replacement Education) 6. Workshops - family life services; - health workshops; - lifestyle workshops; - medical lectures; and - nutrition. 7. Senior Socials The Volunteers at THE MEDICAL CENTER launched the popular "Senior Socials" series in 2015. Each month, seniors are invited to attend free social and educational events hosted by THE MEDICAL CENTERs senior volunteers in DiOrio Hall. These events feature free "Bingo" for prizes, complimentary refreshments, and an educational session hosted by a MEDICAL CENTER health expert or community partner. Topics included exercise for seniors, healthy diet tips, Alzheimers education, financial planning and identity theft protection. Please note that the aforementioned list of community education programs is not an all inclusive list. Community involvement ====================== THE MEDICAL CENTER is proud to support our local community in a number of ways, including through sponsorships, walk-a-thons, toy drives, health fairs and expos. In 2015, we supported the following: - American Heart Association Heart Walk; - Walk for the Wounded; - the Somers Point Memorial Day Parade; - the Community Partnership for Egg Harbor Township Schools; - the Milton & Betty Katz Jewish Community Center and their annual Senior Expo; - Somers Point Bayfest and Good Old Days Festival; - American Cancer Societys Making Strides Walk; and - South Jersey Jazz Society and much more. THE MEDICAL CENTER also provided health screenings at many of these events and other community health fairs at 55 and over communities, fitness centers and some of our areas larger employers. United Way ---------- THE MEDICAL CENTER employees generously contributed more than $8,900 to the United Way of Greater Philadelphia and Southern New Jersey. The United Way supports more than 60 programs at 39 local health and human services agencies. CORE FORM, PART III, QUESTION 2 ON DECEMBER 31, 2015 SHORE MEMORIAL HEALTH FOUNDATION, INC.; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION, TRANSFERRED ALL OF ITS ASSETS AND LIABILITIES TO THIS ORGANIZATION. ACCORDINGLY, ALL ACTIVITIES AND OPERATIONS OF THE FOUNDATION WILL BE PERFORMED BY THIS ORGANIZATION PROSPECTIVELY. CORE FORM, PART III, QUESTION 4D EXPENSES INCURRED IN PROVIDING VARIOUS OTHER MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. PLEASE REFER TO THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT INCLUDED IN SCHEDULE O. CORE FORM, PART VI, SECTION A; QUESTIONS 6 & 7 SHORE MEMORIAL HEALTH SYSTEM ("SYSTEM") IS THE SOLE MEMBER OF THIS ORGANIZATION. SYSTEM HAS THE RIGHT TO ELECT THE MEMBERS OF THIS ORGANIZATION'S BOARD OF TRUSTEES AND HAS CERTAIN RESERVED POWERS AS DEFINED IN THIS ORGANIZATION'S BYLAWS. CORE FORM, PART VI, SECTION B; QUESTION 11B THE ORGANIZATION IS AN AFFILIATE within SHORE MEMORIAL HEALTH SYSTEM and affiliates; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM ("SYSTEM"). SHORE MEMORIAL HEALTH SYSTEM IS THE tax-exempt PARENT ENTITY OF THE SYSTEM. THis ORGANIZATION'S FEDERAL FORM 990 WAS provided TO EACH VOTING MEMBER OF ITS GOVERNING BODY (ITS BOARD OF TRUSTEES) PRIOR TO FILING WITH THE INTERNAL REVENUE SERVICE ("IRS"). THE ORGANIZATION'S AUDIT AND COMPLIANCE COMMITTEE ASSUMED THE RESPONSIBILITY TO OVERSEE AND COORDINATE THE FEDERAL FORM 990 PREPARATION, REVIEW AND FILING PROCESS. AS PART OF THE ORGANIZATION'S FEDERAL FORM 990 TAX RETURN PREPARATION PROCESS THE ORGANIZATION HIRED A PROFESSIONAL CPA FIRM WITH EXPERIENCE AND EXPERTISE IN BOTH HEALTHCARE AND NOT-FOR-PROFIT TAX RETURN PREPARATION TO PREPARE THE FEDERAL FORM 990. THE CPA FIRM'S TAX PROFESSIONALS WORKED CLOSELY WITH THE ORGANIZATION'S FINANCE PERSONNEL AND SYSTEM INDIVIDUALS INCLUDING THE CHIEF FINANCIAL OFFICER, DIRECTOR OF FINANCE AND VARIOUS OTHER INDIVIDUALS ("INTERNAL WORKING GROUP") TO OBTAIN THE INFORMATION NEEDED IN ORDER TO PREPARE A COMPLETE AND ACCURATE TAX RETURN. THE CPA FIRM PREPARED A DRAFT FEDERAL FORM 990 AND FURNISHED IT TO THE ORGANIZATION'S INTERNAL WORKING GROUP FOR REVIEW. THE ORGANIZATION'S INTERNAL WORKING GROUP REVIEWED THE DRAFT FEDERAL FORM 990 AND DISCUSSED QUESTIONS AND COMMENTS WITH THE CPA FIRM. REVISIONS WERE MADE TO THE DRAFT FEDERAL FORM 990 WHERE NECESSARY AND A FINAL DRAFT WAS FURNISHED BY THE CPA FIRM TO THE ORGANIZATION'S INTERNAL WORKING GROUP FOR FINAL REVIEW AND APPROVAL. A MEETING with the organization's audit and compliance committee WAS ALSO HELD TO REVIEW THE FINAL DRAFT OF THE FEDERAL FORM 990. FOLLOWING THIS REVIEW, THE FINAL FEDERAL FORM 990 WAS provided TO EACH VOTING MEMBER OF THE ORGANIZATION'S GOVERNING BODY PRIOR TO FILING WITH THE IRS. CORE FORM, PART VI, SECTION B; QUESTION 12 THE ORGANIZATION IS AN AFFILIATE within SHORE MEMORIAL HEALTH SYSTEM and affiliates; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM ("SYSTEM"). SHORE MEMORIAL HEALTH SYSTEM IS THE tax-exempt PARENT ENTITY OF THE SYSTEM. THIS ORGANIZATION AND THE SYSTEM REGULARLY MONITOR AND ENFORCE COMPLIANCE WITH ITS CONFLICT OF INTEREST POLICY. ANNUALLY ALL MEMBERS OF THE BOARD OF TRUSTEES, OFFICERS AND SENIOR MANAGEMENT PERSONNEL ARE REQUIRED TO REVIEW THE EXISTING CONFLICT OF INTEREST POLICY AND COMPLETE A QUESTIONNAIRE. THE COMPLETED QUESTIONNAIRES ARE RETURNED TO THE ORGANIZATION AND ITS CHIEF COMPLIANCE OFFICER FOR REVIEW. THEREAFTER THE CHIEF COMPLIANCE OFFICER PREPARES A SUMMARY OF THE COMPLETED QUESTIONNAIRES WHICH CONTAINS INFORMATION DISCLOSED ON AN INDIVIDUAL BY INDIVIDUAL BASIS AND PRESENTS THIS SUMMARY TO THE ORGANIZATION'S AUDIT AND COMPLIANCE COMMITTEE FOR ITS REVIEW AND DISCUSSION. CORE FORM, PART VI, SECTION B; QUESTION 15 THE ORGANIZATION IS AN AFFILIATE within SHORE MEMORIAL HEALTH SYSTEM and affiliates; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM ("SYSTEM"). SHORE MEMORIAL HEALTH SYSTEM IS THE tax-exempt PARENT ENTITY OF THE SYSTEM. THIS ORGANIZATION'S BOARD OF TRUSTEES HAS AN EXECUTIVE COMPENSATION COMMITTEE ("COMMITTEE"). THE COMMITTEE HAS ADOPTED A WRITTEN EXECUTIVE COMPENSATION PHILOSOPHY WHICH IT FOLLOWS WHEN IT REVIEWS AND APPROVES OF THE COMPENSATION AND BENEFITS OF THE ORGANIZATION'S SENIOR MANAGEMENT INCLUDING, BUT NOT LIMITED TO, THE PRESIDENT/CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER. THE COMMITTEE REVIEWS THE "TOTAL COMPENSATION" OF THE INDIVIDUALS WHICH IS INTENDED TO INCLUDE BOTH CURRENT AND DEFERRED COMPENSATION AND ALL EMPLOYEE BENEFITS, BOTH QUALIFIED AND NON-QUALIFIED. THE COMMITTEE'S REVIEW IS DONE ON AT LEAST AN ANNUAL BASIS AND ENSURES THAT THE "TOTAL COMPENSATION" OF SENIOR MANAGEMENT OF THE ORGANIZATION IS REASONABLE. THE ACTIONS TAKEN BY THE COMMITTEE ENABLE THE ORGANIZATION TO RECEIVE THE REBUTTABLE PRESUMPTION OF REASONABLENESS FOR PURPOSES OF INTERNAL REVENUE CODE SECTION 4958 WITH RESPECT TO THE TOTAL COMPENSATION OF CERTAIN MEMBERS OF THE SENIOR MANAGEMENT TEAM, INCLUDING THE PRESIDENT/CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER. THE THREE FACTORS WHICH MUST BE SATISFIED IN ORDER TO RECEIVE THE REBUTTABLE PRESUMPTION OF REASONABLENESS ARE THE FOLLOWING: 1. THE COMPENSATION ARRANGEMENT IS APPROVED IN ADVANCE BY AN "AUTHORIZED BODY" OF THE APPLICABLE TAX-EXEMPT ORGANIZATION WHICH IS COMPOSED ENTIRELY OF INDIVIDUALS WHO DO NOT HAVE A "CONFLICT OF INTEREST" WITH RESPECT TO THE COMPENSATION ARRANGEMENT; 2. THE AUTHORIZED BODY OBTAINED AND RELIED UPON "APPROPRIATE DATA AS TO COMPARABILITY" PRIOR TO MAKING ITS DETERMINATION; AND 3. THE AUTHORIZED BODY "ADEQUATELY DOCUMENTED THE BASIS FOR ITS DETERMINATION" CONCURRENTLY WITH MAKING THAT DETERMINATION. THE COMMITTEE IS COMPRISED OF MEMBERS OF THE BOARD OF TRUSTEES EACH OF WHO ARE INDEPENDENT AND ARE FREE FROM ANY CONFLICTS OF INTEREST. THE COMMITTEE RELIED UPON APPROPRIATE COMPARABLE DATA; SPECIFICALLY THE COMMITTEE OBTAINED A WRITTEN COMPENSATION STUDY FROM AN INDEPENDENT FIRM WHICH SPECIALIZES IN THE REVIEWING OF HOSPITAL AND HEALTHCARE SYSTEM EXECUTIVE COMPENSATION AND BENEFITS THROUGHOUT THE UNITED STATES. THIS STUDY USED COMPARABLE GEOGRAPHIC AND DEMOGRAPHIC MARKET DATA INCLUDING BUT NOT LIMITED TO SIMILAR SIZED HOSPITALS, # OF LICENSED BEDS AND NET PATIENT SERVICE REVENUE. THE COMMITTEE ADEQUATELY DOCUMENTED ITS BASIS FOR ITS DETERMINATION THROUGH THE TIMELY PREPARATION OF WRITTEN MINUTES OF THE COMPENSATION COMMITTEE MEETINGS DURING WHICH THE EXECUTIVE COMPENSATION AND BENEFITS WAS REVIEWED AND SUBSEQUENTLY APPROVED. THE ACTIONS OUTLINED ABOVE WITH RESPECT TO THE COMMITTEE AND THE ESTABLISHMENT OF THE REBUTTABLE PRESUMPTION OF REASONABLENESS ONLY APPLIES TO CERTAIN SENIOR MANAGEMENT PERSONNEL INCLUDING, BUT NOT LIMITED TO, THE PRESIDENT/CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER. THE COMPENSATION AND BENEFITS OF CERTAIN OTHER INDIVIDUALS CONTAINED IN THIS FORM 990 ARE REVIEWED ANNUALLY BY THE PRESIDENT/CHIEF EXECUTIVE OFFICER WITH ASSISTANCE FROM ORGANIZATION'S HUMAN RESOURCES DEPARTMENT IN CONJUNCTION WITH THE INDIVIDUAL'S JOB PERFORMANCE DURING THE YEAR AND IS BASED UPON OTHER OBJECTIVE FACTORS DESIGNED TO ENSURE THAT REASONABLE AND FAIR MARKET VALUE COMPENSATION IS PAID BY THE ORGANIZATION. OTHER OBJECTIVE FACTORS INCLUDE MARKET SURVEY DATA FOR COMPARABLE POSITIONS, INDIVIDUAL GOALS AND OBJECTIVES, PERSONNEL REVIEWS, EVALUATIONS, SELF-EVALUATIONS AND PERFORMANCE FEEDBACK MEETINGS. CORE FORM, PART VI, SECTION C; QUESTION 19 THE ORGANIZATION HAS ISSUED TAX-EXEMPT BONDS TO FINANCE VARIOUS CAPITAL IMPROVEMENT PROJECTS, RENOVATIONS AND EQUIPMENT. IN CONJUCTION WITH THE ISSUANCE OF THESE TAX-EXEMPT BONDS, THE ORGANIZATION'S FINANCIAL STATEMENTS WERE INCLUDED WITH THE TAX-EXEMPT BOND PROSPECTUS WHICH WAS MADE AVAILABLE TO THE GENERAL PUBLIC FOR REVIEW. IN ADDITION, THE ORGANIZATION'S FILED CERTIFICATE OF INCORPORATION AND ANY AMENDMENTS CAN BE OBTAINED AND REVIEWED THROUGH THE STATE OF NEW JERSEY department of the treasury. CORE FORM, PART VII AND SCHEDULE J PART VII AND SCHEDULE J REFLECT CERTAIN BOARD MEMBERS AND OFFICERS RECEIVING COMPENSATION AND BENEFITS FROM THIS ORGANIZATION. PLEASE NOTE THIS REMUNERATION WAS FOR SERVICES RENDERED AS FULL-TIME EMPLOYEES OF THIS ORGANIZATION AND NOT FOR SERVICES RENDERED AS A VOTING MEMBER OR OFFICER OF THIS ORGANIZATION'S BOARD OF TRUSTEES. CORE FORM, PART VII, SECTION A, COLUMN B THE ORGANIZATION IS AN AFFILIATE within SHORE MEMORIAL HEALTH SYSTEM and affiliates; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM ("SYSTEM"). SHORE MEMORIAL HEALTH SYSTEM IS THE tax-exempt PARENT ENTITY OF THE SYSTEM. THE SYSTEM INCLUDES BOTH FOR-PROFIT AND NOT FOR-PROFIT ORGANIZATIONS. CERTAIN BOARD OF TRUSTEE MEMBERS and OFFICERS LISTED ON CORE FORM, PART VII AND SCHEDULE J OF THIS FORM 990 MAY HOLD SIMILAR POSITIONS WITH BOTH THIS ORGANIZATION AND OTHER AFFILIATES WITHIN THE SYSTEM. THE HOURS SHOWN ON THIS FORM 990, FOR BOARD MEMBERS WHO RECEIVE NO COMPENSATION FOR SERVICES RENDERED IN A NON-BOARD CAPACITY, REPRESENT THE ESTIMATED HOURS DEVOTED PER WEEK FOR THIS ORGANIZATION. TO THE EXTENT THESE INDIVIDUALS SERVE AS A MEMBER OF THE BOARD OF TRUSTEES OF OTHER RELATED ORGANIZATIONS IN THE SYSTEM, THEIR RESPECTIVE HOURS PER WEEK PER ORGANIZATION ARE APPROXIMATELY THE SAME AS REFLECTED ON PART VII OF THIS FORM 990. THE HOURS REFLECTED ON PART VII OF THIS FORM 990, FOR BOARD MEMBERS WHO RECEIVE COMPENSATION FOR SERVICES RENDERED IN A NON-BOARD CAPACITY, PAID OFFICERS, REFLECT TOTAL HOURS WORKED PER WEEK ON BEHALF OF SHORE MEMORIAL HEALTH SYSTEM; NOT SOLELY THIS ORGANIZATION. CORE FORM, PART X CERTAIN RECLASSIFICATIONS HAVE BEEN MADE TO THE PRIOR YEAR BALANCES PREVIOUSLY REPORTED TO CONFORM TO THE CURRENT YEAR PRESENTATION IN THE ORGANIZATION'S AUDITED CONSOLIDATED FINANCIAL STATEMENTS. CORE FORM, PART XI; QUESTION 9 OTHER CHANGES IN FUND BALANCE INCLUDE: - CHANGE IN FAIR VALUE OF INTEREST RATE SWAP - $214,903; - TRANSFER TO SHORE MEMORIAL HEALTH FOUNDATION, INC.; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION - ($3,543,959); - OTHER CHANGES IN PENSION AND OTHER POSTRETIREMENT BENEFITS - $8,335,545; - TEMPORARILY RESTRICTED CHANGE IN INTEREST IN NET ASSETS OF SHORE MEMORIAL HEALTH FOUNDATION, Inc.; a related internal revenue code section 501(c)(3) tax-exempt organization - ($554,956); AND - PERMANENTLY RESTRICTED CHANGE IN BENEFICIAL INTEREST IN PERTUAL TRUST - ($197,757). CORE FORM, PART XII; QUESTION 2 THE ORGANIZATION IS AN AFFILIATE within SHORE MEMORIAL HEALTH SYSTEM and affiliates; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM ("SYSTEM"). SHORE MEMORIAL HEALTH SYSTEM IS THE tax-exempt PARENT ENTITY OF THE SYSTEM. AN INDEPENDENT CPA FIRM AUDITED THE CONSOLIDATED FINANCIAL STATEMENTS OF SHORE MEMORIAL HEALTH SYSTEM AND ALL ITS AFFILIATES FOR THE YEARS ENDED DECEMBER 31, 2015 AND DECEMBER 31, 2014; RESPECTIVELY. THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS CONTAIN CONSOLIDATING SCHEDULES ON AN ENTITY BY ENTITY BASIS. THE INDEPENDENT CPA FIRM ISSUED AN UNQUALIFIED OPINION WITH RESPECT TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR each YEAR. THE organization's AUDIT AND COMPLIANCE COMMITTEE HAS ASSUMED RESPONSIBILITY FOR THE OVERSIGHT OF THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS, WHICH INCLUDES THIS ORGANIZATION, AND THE SELECTION OF AN INDEPENDENT AUDITOR. CORE FORM, PART XII; QUESTION 3 THE ORGANIZATION IS AN AFFILIATE within SHORE MEMORIAL HEALTH SYSTEM and affiliates; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM ("SYSTEM"). THE SYSTEM ENGAGED AN INDEPENDENT ACCOUNTING FIRM TO PREPARE AND ISSUE A SYSTEM WIDE CONSOLIDATED AUDIT UNDER THE SINGLE AUDIT ACT AND OMB CIRCULAR A-133 AUDIT. FORM 990 PART IX LINE 11G DESCRIPTION:PURCHASED SERVICES TOTAL FEES:17837354 FORM 990 PART IX LINE 11G DESCRIPTION:PHYSICIAN SALARIES & FEES TOTAL FEES:8848748 FORM 990 PART IX LINE 11G DESCRIPTION:PROFESSIONAL FEES TOTAL FEES:1283602 FORM 990 PART IX LINE 11G DESCRIPTION:CARE MANAGEMENT FEES TOTAL FEES:626024 FORM 990 PART IX LINE 11G DESCRIPTION:COLLECTION FEES TOTAL FEES:1286695 FORM 990 PART IX LINE 11G DESCRIPTION:TRANSCRIPTION FEES TOTAL FEES:371238 FORM 990 PART IX LINE 11G DESCRIPTION:OTHER FEES TOTAL FEES:1524918 BRIGHTON BAY LLC 100 MEDICAL CENTER WAY SOMERS POINT NJ 08244 454335590 HOLDING/MGMT NJ 383811 10202139 SMH SHORE QUALITY PARTNERS LLC 100 MEDICAL CENTER WAY SOMERS POINT NJ 08244 464384840 HEALTH SVCS. NJ 1419343 195448 SMH SHORE HEALTH SERVICES CORPORATION 100 MEDICAL CENTER WAY SOMERS POINT NJ 08244 222866335 HEALTH SVCS. NJ 501(C)(3) 509(A)(3) SMHS false SHORE MEMORIAL HEALTH SYSTEM 100 MEDICAL CENTER WAY SOMERS POINT NJ 08244 222866326 HEALTH SVCS. 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NJ SMH C CORP. 2537257 598621 1.00000 true false false false true true false false false false false false true false true true false false true false SHORE MEMORIAL HEALTH FOUNDATION INC E 12059501 COST SHORE MEMORIAL PHYSICIAN'S GROUP PC D 365087 COST SHORE MEMORIAL HEALTH FOUNDATION INC D 7357678 COST SHORE MEMORIAL PHYSICIAN'S GROUP PC E 199325 COST SHORE PATHOLOGY ASSOCIATES PC E 255000 COST SHORE MEMORIAL HEALTH FOUNDATION INC R 3543959 COST SHORE MEMORIAL HEALTH FOUNDATION INC O 1239149 COST SHORE MEMORIAL HEALTH SYSTEM INC O 66395 COST SCHEDULE R, PART V THE ORGANIZATION IS AN AFFILIATE within SHORE MEMORIAL HEALTH SYSTEM AND AFFILIATES; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM ("SYSTEM"). SHORE MEMORIAL HEALTH SYSTEM IS THE TAX-EXEMPT PARENT ENTITY OF THE SYSTEM. Shore MEMORIAL HOSPITAL ROUTINELY PAYS EXPENSES FOR VARIOUS RELATED AFFILIATES IN THE ORDINARY COURSE OF BUSINESS. THESE RELATED PARTY TRANSACTIONS ARE RECORDED ON THE REVENUE/EXPENSE AND BALANCE SHEET STATEMENTS OF THIS ORGANIZATION AND ITS AFFILIATES. THESE ENTITIES WORK TOGETHER TO DELIVER HIGH QUALITY HEALTHCARE AND WELLNESS SERVICES TO THE COMMUNITIES IN WHICH THEY ARE SITUATED.