2016-08-15T06:43:47-05:00 2015-09-30 135381590 BDO USA LLP 200 PORTLAND STREET BOSTON MA 02114 990 2014-10-01 042104434 WINCHESTER HOSPITAL WINC 7817562135 41 HIGHLAND AVENUE WINCHESTER MA 018900000 HOWARD R GRANT JD MD PRESIDENT/CEO 7817562135 2016-08-10 1 JEFFREY T ROGERS P01074284 6177427788 2014 2016-09-27 15:27:22Z HOWARD R GRANT JD MD 41 MALL ROAD BURLINGTON MA 01805 350889831 0 X WWW.WINCHESTERHOSPITAL.ORG X 1906 MA WINCHESTER HOSPITAL IS COMMITTED TO BENEFITTING ALL OF THE COMMUNITIES WE SERVE BY COLLABORATING WITH COMMUNITY PARTNERS TO IDENTIFY HEALTH NEEDS AND IMPROVE THE HEALTH STATUS OF THE COMMUNITY RESIDENTS. 26 19 2406 760 6709916 0 0 47500 255587182 262592438 8416882 49332016 9113776 9213914 273117840 321185868 0 0 0 0 152865807 148734575 0 0 0 111740144 119146531 264605951 267881106 8511889 53304762 425469449 418568237 172812504 164650693 252656945 253917544 X TO CARE. TO HEAL. TO EXCEL. IN SERVICE TO OUR COMMUNITY. 0 0 15195965 13929349 *OBSTETRICS SERVICES* WINCHESTER HOSPITAL IS PROUD TO HAVE BEEN INVOLVED IN THE BEGINNING OF MANY NEW LIVES. RECOGNIZED AS ONE OF THE AREA'S MOST PROMINENT OBSTETRIC HOSPITALS, WINCHESTER HOSPITAL HAS NEARLY 2,000 BABIES BORN PER YEAR AT OUR MOTHER BABY UNIT. THE HOSPITAL ALSO OFFERS A SPECIAL CARE NURSERY FOR NEWBORNS IN NEED OF THE CLINICAL INTERVENTION OF A LEVEL IIB NURSERY. 15127364 15238461 *ORTHOPEDICS SERVICES* WINCHESTER HOSPITAL PROVIDES HIGH QUALITY ORTHOPEDIC CARE IN COLLABORATION WITH WELL-TRAINED, BOARD-CERTIFIED ORTHOPEDIC SURGEONS. WE UTILIZE STATE-OF-THE-ART TECHNIQUES AND OFFER A FULL RANGE OF TREATMENTS FOR MANY DIFFERENT CONDITIONS - FROM SPORTS AND WORK-RELATED INJURIES TO MUSCULOSKELETAL DISORDERS TO JOINT DISEASES. 12100235 13046745 *PULMONARY SERVICES* THE PULMONARY SERVICES PROGRAM AT WINCHESTER HOSPITAL HAS BEEN IN EXISTENCE FOR OVER TWENTY YEARS. THE REHAB CENTER IS A PLACE THAT COORDINATES STRUCTURED, FULL PHASE PULMONARY REHABILITATION AIMED AT HELPING PATIENTS ACHIEVE A HEALTHY LEVEL OF PULMONARY FITNESS. 162900918 220377883 PROVIDING CARE IN MAJOR CLINICAL CATEGORIES INCLUDING MEDICINE, SURGERY, PEDIATRICS, OBSTETRICS/GYNECOLOGY AND A LEVEL IIB SPECIAL CARE NURSERY, WINCHESTER HOSPITAL IS THE LEADING PROVIDER IN SUCH IMPORTANT SUBSPECIALTIES AS CARDIOLOGY, PULMONARY MEDICINE, ONCOLOGY, GASTROENTEROLOGY, ORTHOPEDICS, REHABILITATION, RADIATION ONCOLOGY AND PAIN MANAGEMENT. 162900918 220377883 205324482 1 0 0 1 0 0 0 0 0 1 1 1 0 1 1 1 0 1 0 0 0 0 0 0 0 0 1 1 0 0 1 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 1 1 0 0 0 1 356 0 1 2406 1 1 1 0 0 0 0 0 0 0 0 0 X 26 19 1 0 0 0 0 0 0 1 0 0 0 1 1 1 1 1 0 1 1 1 1 MA X X MATTHEW J WOODS VICE PRESIDENT OF FINANCE 7817562135 41 HIGHLAND AVENUE WINCHESTER MA 01890 JONATHAN ADLER MD DIRECTOR 1.00 40.00 X 0 649519 669 PAUL ANDREWS CHAIRMAN 1.00 1.00 X X 0 0 0 JAMES CONWAY DIRECTOR 1.00 1.00 X 0 0 0 JAMES FICOCIELLO DDS DIRECTOR 1.00 1.00 X 0 0 0 ROBERT FORTUNATO MD DIRECTOR 1.00 1.00 X 0 0 0 ERIC HAYDEN DIRECTOR 1.00 1.00 X 0 0 0 JANICE HOUGHTON DIRECTOR 1.00 1.00 X 0 0 0 HOWARD R GRANT JD MD TRUSTEE/OFFICER/PRESIDENT & CEO 1.00 40.00 X X 0 2012525 278701 ARTHUR LITTLE MD DIRECTOR 1.00 1.00 X 0 0 0 DALE LODGE DIRECTOR 43.00 1.00 X 946636 0 26848 JOHN MARTINI DIRECTOR 1.00 1.00 X 0 0 0 DEBORAH MCDONOUGH DIRECTOR 1.00 1.00 X 0 0 0 RICHARD OCKERBLOOM DIRECTOR 1.00 1.00 X 0 0 0 TIMOTHY O'CONNOR TRUSTEE/OFFICER/EVP CFO & TREASURER 1.00 40.00 X X 0 746676 148875 PETER ROTOLO MD DIRECTOR 1.00 1.00 X 0 0 0 RICHARD SAYRE DIRECTOR 1.00 1.00 X 0 0 0 KEVIN SMITH CEO 43.00 1.00 X X 1204871 0 26255 DAVID G SPACKMAN TRUSTEE/OFFICER/SVP GOV AFFAIRS & GEN COUNSEL 1.00 40.00 X X 0 450576 51385 JOSEPH TARBY III JD ASSISTANT CLERK 1.00 1.00 X X 0 0 0 JOSEPH TAYLOR MD DIRECTOR 1.00 1.00 X 0 0 0 CYNTHIA DEROSA EX-OFFICIO 1.00 1.00 X 0 0 0 JANE WALSH VICE CHAIRMAN 1.00 1.00 X X 0 0 0 MATTHEW WOODS ASSISTANT TREASURER 43.00 1.00 X X 442587 0 33201 JAMES YOUNG DIRECTOR 1.00 1.00 X 0 0 0 MARLENE WILLIAMSON EX-OFFICIO 1.00 1.00 X 0 0 0 DENNIS BEGOS MD EX-OFFICIO 1.00 1.00 X 0 0 0 KATHY ANN SCHULER V.P. - PATIENT CARE SERVIC 40.00 X 370308 0 23575 ANN LANG TALBOT V.P. - HUMAN RESOURCES 40.00 X 337836 0 26237 RICHARD J ISEKE MD V.P. - MEDICAL AFFAIRS 40.00 X 567216 0 6281 MARY ELIZABETH CANNING VICE PRESIDENT 40.00 X 282657 0 33453 WILLIAM ROBERTSON VICE PRESIDENT 40.00 X 273996 0 33214 MARY T SWEENEY VICE PRESIDENT 40.00 X 282634 0 4007 EDWARD P SULLIVAN PHYSICIAN RELATIONS 40.00 X 247548 0 29851 4956289 3859296 722552 243 0 1 0 CORNERSTONE ADVISORS GROUP LLC 65 ALLERTON STREET BOSTON MA 02119 CONSULTANTS 1986250 STRATA PATHOLOGY INC 1 CRANBERRY HILL SUITE 303 LEXINGTON MA 02421 LAB 1750106 ABBOTT LABORATORIES 100 ABBOTT ROAD ABBOTT PARK IL 60064 LAB 1611995 SODEXHO MARRIOTT SERVICES PO BOX 905374 CHARLOTTE NC 28290 MANAGEMENT 1492424 LABORATORY CORPORATION OF AMERICA PO BOX 4070 PORTSMOUTH NH 03802 LAB 1339027 31 47500 47500 NET PATIENT SERVICE REVENUE 900009 257508371 257508371 OTHER PROGRAM REVENUE 900009 5084067 5084067 262592438 2969837 2969837 76066142 29703963 46362179 46362179 46362179 LABORATORY REVENUE 621500 5076086 5076086 CAFETERIA 900099 857609 857609 PEDIATRIC REVENUE 621990 794413 794413 2485806 839417 1646389 9213914 321185868 262592438 6709916 51836014 2761200 2761200 106045861 89517436 16528425 31346659 26900513 4446146 8580855 7379535 1201320 -3777 -1133 -2644 308400 92520 215880 16595451 12890643 3704808 182857 182857 1320955 1320955 67668 67668 4863739 4863739 16922106 11845474 5076632 1463516 1463516 SUPPLIES 65882495 48958778 16923717 UTILITIES 3983064 398306 3584758 HEALTH SAFETY NET ASSES 2003345 2003345 OTHER - NON OPERATING 1606053 1078905 527148 3950659 1498960 2451699 267881106 205324482 62556624 0 20158993 28126535 27091434 26825485 2280163 4782140 3036549 3222411 2822724 4715275 155361374 20768770 146164691 134592604 163238849 159868723 60676046 56435064 425469449 418568237 46034742 42156746 104951717 101774891 735098 389585 21090947 20329471 172812504 164650693 X 228300080 230204124 17978986 17764889 6377879 5948531 252656945 253917544 425469449 418568237 X 53304762 -50003236 -2040927 X 0 1 X 1 0 X 0 0 0 0 0 0 0 1 43540 0 43540 0 PART II-B, LINE 1: MASSACHUSETTS COUNCIL OF COMMUNITY HOSPITALS (MCCH): THE MASSACHUSETTS COUNCIL OF COMMUNITY HOSPITALS IS A NON-PROFIT CORPORATION FORMED TO ADVOCATE FOR THE COMMONWEALTH'S COMMUNITY HOSPITALS. THESE HOSPITALS PLAY A VITAL ROLE IN PROVIDING CONVENIENT, HIGH QUALITY HEALTH CARE AT A REASONABLE COST. FOR A NUMBER OF REASONS OUR HOSPITALS ARE OFTEN DISADVANTAGED BY THE CURRENT FINANCING AND DELIVERY SYSTEM IN GAINING ACCESS TO CAPITAL, TECHNOLOGY AND CLINICAL RESOURCES. IT IS THE GOAL OF THE COUNCIL TO EDUCATE AND ARGUE OUR CASE TO POLICYMAKERS, EMPLOYERS AND PAYERS TO ELIMINATE INEQUITIES IN THE SYSTEM. ANNUAL PORTION OF DUES RELATED TO LOBBYING - $3,006 MASSACHUSETTS HOSPITAL ASSOCIATION (MHA): THE MASSACHUSETTS HOSPITAL ASSOCIATION IS A VOLUNTARY, NOT-FOR-PROFIT ORGANIZATION COMPRISED OF HOSPITALS AND HEALTH SYSTEMS, RELATED ORGANIZATIONS, AND OTHER MEMBERS WITH A COMMON INTEREST IN PROMOTING THE HEALTH OF THE PEOPLE OF THE COMMONWEALTH. THROUGH LEADERSHIP IN PUBLIC ADVOCACY, EDUCATION, AND INFORMATION, MHA REPRESENTS AND ADVOCATES FOR THE COLLECTIVE INTERESTS OF ITS MEMBER HOSPITALS AND HEALTH SYSTEMS, AND SUPPORTS THEIR EFFORTS TO PROVIDE HIGH QUALITY, COST EFFECTIVE, AND ACCESSIBLE CARE. ANNUAL PORTION OF DUES RELATED TO LOBBYING - $32,774 AMERICAN HOSPITAL ASSOCIATION (AHA): THE AMERICAN HOSPITAL ASSOCIATION (AHA) IS THE NATIONAL ORGANIZATION THAT REPRESENTS AND SERVES ALL TYPES OF HOSPITALS, HEALTH CARE NETWORKS, AND THEIR PATIENTS AND COMMUNITIES. CLOSE TO 5,000 HOSPITALS, HEALTH CARE SYSTEMS, NETWORKS, OTHER PROVIDERS OF CARE AND 37,000 INDIVIDUAL MEMBERS COME TOGETHER TO FORM THE AHA. THROUGH OUR REPRESENTATION AND ADVOCACY ACTIVITIES, AHA ENSURES THAT MEMBERS' PERSPECTIVES AND NEEDS ARE HEARD AND ADDRESSED IN NATIONAL HEALTH POLICY DEVELOPMENT, LEGISLATIVE AND REGULATORY DEBATES, AND JUDICIAL MATTERS. OUR ADVOCACY EFFORTS INCLUDE THE LEGISLATIVE AND EXECUTIVE BRANCHES AND INCLUDE THE LEGISLATIVE AND REGULATORY ARENAS. FOUNDED IN 1898, THE AHA PROVIDES EDUCATION FOR HEALTH CARE LEADERS AN IS A SOURCE OF INFORMATION ON HEALTH CARE ISSUES AND TRENDS. ANNUAL PORTION OF DUES RELATED TO LOBBYING - $7,760 23661535 -1185730 22475805 20837955 2823580 23661535 19506178 1331777 20837955 20837590 -1331416 19506174 18301006 2536588 20837594 0.68000 0.32000 0 0 18199901 18199901 80756184 6548968 74207216 12069051 2007565 10061486 40277823 12212237 28065586 4058415 4058415 134592604 DEPRECIATION FUND 10394022 F OTHER INTERNALLY DESIGNATED INVESTMENTS 96748572 F HELD BY TRUSTEE UNDER BOND INDENTURE 1518892 F TEMP RESTRICTED INVESTMENTS 15215933 F PERM RESTRICTED INVESTMENTS 1790975 F PERM RESTRICTED IRREVOCABLE TRUST 3886829 F INTERNALLY DESIGNATED FOR CAPITAL PURCHASES 30313500 F 159868723 NOTE RECIEVABLE INTERNATIONAL FAMILY CHURCH 2500000 RESERVE- NOTE RECEIVABLE -2500000 SPLIT DOLLAR LIFE EQUITY 3930009 RETIREMENT PLAN - 457B 994465 INVESTMENT IN CAPTIVE INSURANCE 894158 INVESTMENT IN JP-SHIELDS-ONC 3403000 INVESTMENT IN JP-SHIELDS-MRI 8121800 INVESTMENT IN YANKEE ALLIANCE, LLC 2829073 NOTE RECEIVABLE - RHC PHYS 207142 CERTIFICATE OF NEED - VALUATION 7000000 INDEPENDENT MD NETWORK - VALUATION 5600000 ACCUMULATED AMORTIZATION MD NETWROK -700000 CLINICAL RELATIONSHIP - BCH - VALUATION 1100000 ACCUMULATED AMORTIZATION - BCH -137500 PAYOR RELATIONSHIPS - VALUATION 800000 ACCUMULATED AMORTIZATION-PAYOR RELATIONSHIP -355818 TRADE NAME - VALUATION 5700000 PROFESSIONAL INSURANCE RECEIVABLE 4881692 LEASEHOLDS VALUATION 2559083 BENEFICIAL INTEREST FOUNDATION 2819683 OTHER 6788277 56435064 CURRENT PORTION LONG TERM DEBT AND CAPITAL LEASES 3354877 ESTIMATED SETTLEMENT AMOUNTS DUE THIRD-PARTY PAYORS 9201601 ACCRUED POSTRETIREMENT BENEFITS 257632 OTHER LONG TERM LIABILITIES 7515361 20329471 X PART X, LINE 2: WINCHESTER HOSPITAL HAS EVALUATED ITS TAX POSITIONS AND BELIEVES IT HAS NO UNCERTAIN TAX POSITIONS. 1 1 X 1 X 1 X 1 1 1 0 1 1 2684114 2684114 0.01000 12005771 9470256 2535515 0.00950 11244367 6727048 4517319 0.01690 25934252 16197304 9736948 0.03640 4519308 1939337 2579971 0.00960 104413 104413 0.00040 4250939 690012 3560927 0.01330 147674 105739 41935 0.00020 9022334 2735088 6287246 0.02350 34956586 18932392 16024194 0.05990 0 3529800 27179 54202644 63628497 -9425853 X 1 1 1 NOT APPLICABLE NOT APPLICABLE 0.00000 0.00000 0.00000 1 1 WINCHESTER HOSPITAL 41 HIGHLAND AVENUE WINCHESTER MA 01890 X X X ACUTE CARE FACILITY WINCHESTER HOSPITAL 1 0 0 1 X X X X X X X X X 13 1 0 0 1 X WWW.WINCHESTERHOSPITAL.ORG X 1 14 1 WWW.WINCHESTERHOSPITAL.ORG/OUR-PROMISE/SUPPORTING-OUR-COMMUNITY 0 0 1 X 200.000000000000 400.000000000000 X 1 1 1 X WWW.WINCHESTERHOSPITAL.ORG X X 1 0 X 1 X 0 0 WINCHESTER HOSPITAL PART V, SECTION B, LINE 5: THE APPROACH TAKEN TO DATA COLLECTION INCLUDED RESEARCHING AVAILABLE SECONDARY SOURCE DATA, INCLUDING MASSCHIP TOWN REPORTS, MASSCHIP COMMUNITY HEALTH NETWORK AREA REPORTS AND THE BEHAVIORAL RISK SURVEILLANCE SURVEY (BRSS) ALONG WITH HEALTH AND RISK BEHAVIORS OF MASSACHUSETTS YOUTH. IN ADDITION TO SECONDARY DATA SOURCES, STAFF FROM THE CENTER FOR HEALTHY LIVING HELD FACE-TO-FACE INTERVIEWS WITH THE PUBLIC HEALTH NURSES AND/OR HEALTH AGENTS FROM EACH OF THE SIX TOWNS. SUMMARIZED FINDINGS WERE ALSO SHARED WITH THE MEMBERS OF THE HOSPITAL'S COMMUNITY BENEFITS ADVISORY BOARD. AT EACH STEP IN THE PROCESS, THERE WAS THE OPPORTUNITY FOR QUESTIONS, ADDITIONS, CORRECTIONS AND MODIFICATIONS. WINCHESTER HOSPITAL PART V, SECTION B, LINE 16I: MEASURES TO PUBLICIZE FINANCIAL ASSISTANCE POLICY, PART V, SEC. B, LINE 14G WINCHESTER HOSPITAL PUBLICIZED ITS FINANCIAL ASSISTANCE POLICY IN BROCHURES AND PAMPHLETS. WINCHESTER HOSPITAL PART V, SECTION B, LINE 22D: AMOUNTS BILLED TO INDIVIDUALS WITH NO INSURANCE, PART V, SEC. B, LINE 20D THE HOSPITAL BILLS PATIENTS WITH NO INSURANCE AND THEY SUBSEQUENTLY APPLY FOR FINANCIAL ASSISTANCE. PART V, SECTION B, LINE 16 FINANCIAL ASSISTANCE POLICY WEBSITE AVAILABILITY WINCHESTER HOSPITAL PART V, SECTION B, LINE 16A WEBSITE: WWW.WINCHESTERHOSPITAL.ORG 22 WINCHESTER HOSPITAL 1021 MAIN STREET WINCHESTER MA 01890 ADMIN OFFICES, BILLING, DOCTOR OFFICES WINCHESTER HOSPITAL 200 UNICORN PARK WOBURN MA 01801 COMMUNITY HEALTH, MRI, BREAST CANCER CTR WINCHESTER HOSPITAL 620 WASHINGTON STREET WINCHESTER MA 01890 RADIOLOGY/ONCOLOGY SERVICES FACILITY WINCHESTER HOSPITAL - BALDWIN PARK I 12 ALFRED STREET WOBURN MA 01801 COMMUNITY HEALTH INST., SLEEP CARE & ADMIN OFFICES WINCHESTER HOSPITAL - BALDWIN PARK II 12 ALFRED STREET WOBURN MA 01801 BREAST CARE, IMAGING HEMOTOLOGY/ONCOLOGY LAB, PHARMACY, CHIRO FAMILY MEDICAL SERVICES 500 SALEM STREET WILMINGTON MA 01887 AUDIOLOGY, OB/GYN, CARDIO-PUL, LAB, PT, URGENT CARE, PEDI WINCHESTER HOSPITAL 262/264 W CUMMINGS PARK WOBURN MA 01801 LAB & HOME CARE SERVICE WINCHESTER HOSPITAL RUSSELL HILL BUILDING 955 MAIN STREET WINCHESTER MA 01890 LAB, RADIOLOGY & PHYSICAL THERAPY WINCHESTER HOSPITAL 150 PRUDENTIAL WAY WOBURN MA 01801 MRI SERVICE READING HEALTH CENTER 20 POND MEADOW DRIVE READING MA 01867 LAB PATIENT SPECIMEN COLLECTION& SERV CTR 3 WOODLAND ROAD STONEHAM MA 02180 LAB MONTVALE DIAGNOSTIC CENTER 88 MONTVALE AVENUE STONEHAM MA 02180 LAB WINCHESTER HOSPITAL 790 BOSTON POST ROAD BILLERICA MA 01821 LAB WINCHESTER HOSPITAL 100 BYPASS ROAD NORTH ANDOVER MA 01845 LAB WINCHESTER HOSPITAL 101 CAMBRIDGE STREET BURLINGTON MA 01803 LAB WINCHESTER HOSPITAL 11 SHORE ROAD WINCHESTER MA 01890 LAB WINCHESTER HOSPITAL 75 RIVERSIDE AVENUE MEDFORD MA 02155 LAB, WEIGHT MGMT, WOUND CARE CENTER WINCHESTER HOSPITAL 10P COMMERCE WAY WOBURN MA 01801 ENDOSCOPY CENTER WINCHESTER HOSPITAL 21 MAIN STREET NORTH READING MA 01864 DIAGNOSTIC CENTER PAIN MANAGEMENT CENTER 444 WASHINGTON STREET WOBURN MA 01801 PAIN CLINIC CENTER CHOATE MEDICAL CENTER 23 WARREN AVENUE WOBURN MA 01801 PHYSICAL THERAPY WINCHESTER HOSPITAL 95 MAPLE STREET STONEHAM MA 02180 STOREROOM/WAREHOUSE PART I, LINE 7: WINCHESTER HEALTHCARE MANAGEMENT, INC. AFFILIATES USED THEIR OWN COST ACCOUNTING SYSTEM TO DERIVE THE NUMBER SET FORTH IN PART I, LINE 7 INSTEAD OF THE CHARGE TO COST RATIO OPTION. PART I, LN 7 COL(F): BAD DEBT EXPENSE OF $6,662,000 WAS SUBTRACTED FROM TOTAL EXPENSES REPORTING IN FORM 990, PART IX IN CALCULATING THE PERCENTAGE IN PART 1, LINE 7, COLUMN (F). PART III, LINE 2: WINCHESTER HEALTHCARE AND AFFILIATES GRANT CREDIT WITHOUT COLLATERAL TO PATIENTS, MOST OF WHOM ARE LOCAL RESIDENTS AND ARE INSURED UNDER THIRD PARTY ARRANGEMENTS. ACCOUNTS RECEIVABLE ARE REDUCED BY AN ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS. IN EVALUATING THE COLLECTABILITY OF ACCOUNTS RECEIVABLE, THE HOSPITAL ANALYZES ITS PAST HISTORY AND IDENTIFIES TRENDS FOR EACH OF ITS MAJOR CATEGORIES OF REVENUE TO ESTIMATE THE APPROPRIATE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS AND PROVISION FOR BAD DEBTS. MANAGEMENT REGULARLY REVIEWS DATA ABOUT THESE MAJOR CATEGORIES OF REVENUE IN EVALUATING THE SUFFICIENCY OF THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS. THROUGHOUT THE YEAR, THE HOSPITAL, AFTER ALL REASONABLE COLLECTION EFFORTS HAVE BEEN EXHAUSTED, WILL WRITE OFF THE DIFFERENCE BETWEEN THE STANDARD RATES AND THE AMOUNTS ACTUALLY COLLECTED AGAINST THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS. IN ADDITION TO THE REVIEW OF THE CATEGORIES OF REVENUE, MANAGEMENT MONITORS THE WRITE OFFS AGAINST ESTABLISHED ALLOWANCES AS OF A POINT IN TIME TO DETERMINE THE APPROPRIATENESS OF THE UNDERLYING ASSUMPTIONS USED IN ESTIMATING THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS. THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS APPROXIMATES 13% FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014.WINCHESTER HEALTHCARE MANAGEMENT INC. AND AFFILIATES UTILIZED WORKSHEET A: ESTIMATED BAD DEBT EXPENSE (AT COST) TO DETERMINE THE AMOUNT FOR SCHEDULE H, PART III, LINE 2. WINCHESTER HEALTHCARE MANAGEMENT INC. AND AFFILIATES USED NET FREE CARE PROVIDED AS A PERCENTAGE OF NET PATIENT SERVICE REVENUE TO REASONABLY ESTIMATE THE AMOUNT IN BAD DEBT THAT COULD BE ATTRIBUTABLE TO PATIENTS WHO LIKELY WOULD QUALIFY FOR FINANCIAL ASSISTANCE UNDER OUR CHARITY CARE POLICY HAD SUFFICIENT INFORMATION BEEN SUBMITTED IN ORDER TO DETERMINE ELIGBILITY. PART III, LINE 3: THE METHODOLOGY USED TO CALCULATE BAD DEBT EXPENSE ATTRIBUTABLE TO PATIENTS UNDER THE FINANCIAL ASSISTANCE POLICY SCHEDULE H, PART III, LINE 3 IS AS FOLLOWS:USED HEALTH SAFETY NET AS A PERCENTAGE OF NET PATIENT SERVICE REVENUE FROM THE DIVISION OF HEALTH CARE FINANCE AND POLICY 403 COST REPORT SCHEDULE VA.HEALTH SAFETY NET - NET REVENUE (SCHEDULE VA LINE 52.01 COLUMN 14) OF $2,003,000 DIVIDED BY TOTAL NET PATIENT SERVICE REVENUE (SCHEDULE VA LINE 52.01 COLUMN 2) OF $262,585,000. THIS YIELDED A .77% THAT WAS MULTIPLIED BY THE BAD DEBT EXPENSE AT COST OF $3,529,800 RESULTING IN THE $27,179 APPLICABLE TO PATIENTS THAT WOULD HAVE QUALIFIED UNDER THE FINANCIAL ASSISTANCE POLICY. PART III, LINE 4: WINCHESTER HOSPITAL GRANTS CREDIT WITHOUT COLLATERAL TO PATIENTS, MOST OF WHOM ARE LOCALRESIDENTS AND ARE INSURED UNDER THIRD PARTY ARRANGEMENTS. WINCHESTER HOSPITAL RECOGNIZESPATIENT SERVICE REVENUE ASSOCIATED WITH SERVICES PROVIDED TO PATIENTS WHO HAVE THIRD-PARTY PAYORCOVERAGE ON THE BASIS OF CONTRACTUAL RATES FOR THE SERVICES RENDERED. FOR UNINSURED PATIENTS THATDO NOT QUALIFY FOR CHARITY CARE, REVENUE IS RECOGNIZED ON THE BASIS OF ITS STANDARD RATES (SUBJECT TODISCOUNTS) FOR SERVICES PROVIDED. ON THE BASIS OF HISTORICAL EXPERIENCE, A SIGNIFICANT PORTION OF THEWINCHESTER HOSPITAL'S UNINSURED PATIENTS ARE UNABLE OR FAIL TO PAY FOR THE SERVICES PROVIDED.CONSEQUENTLY, A PROVISION FOR BAD DEBTS IS RECORDED RELATED TO UNINSURED PATIENTS IN THE PERIOD THESERVICES ARE PROVIDED. PART III, LINE 8: ALL MEDICARE COSTS ARE ALLOCATED BY COST CENTER IN ACCORDANCE WITH MEDICARE REGULATIONS. THIS IS A SIGNIFICANT BENEFIT TO THE COMMUNITY SINCE REIMBURSEMENT FROM THE FEDERAL GOVERNMENT'S MEDICARE PROGRAM IS LESS THAN THE ACTUAL COST FOR THE HEALTHCARE SERVICES PROVIDED TO THE INDIVIDUALS RECEIVING IT. PART III, LINE 9B: THE HOSPITAL HAS A FIDUCIARY DUTY TO SEEK REIMBURSEMENT FOR SERVICES IT HAS PROVIDED FROM INDIVIDUALS WHO ARE ABLE TO PAY, FROM THIRD PARTY INSURERS WHO COVER THE COST OF CARE, AND FROM OTHER PROGRAMS OF ASSISTANCE FOR WHICH THE PATIENT IS ELIGIBLE. TO DETERMINE WHETHER A PATIENT IS ABLE TO PAY FOR THE SERVICES PROVIDED AS WELL AS TO ASSIST THE PATIENT IN FINDING ALTERNATIVE COVERAGE OPTIONS IF THEY ARE UNINSURED OR UNDERINSURED, THE HOSPITAL FOLLOWS THE FOLLOWING CRITERIA RELATED TO BILLING AND COLLECTING FROM PATIENTS. THE HOSPITAL MAKES THE SAME REASONABLE EFFORT AND FOLLOWS THE SAME REASONABLE PROCESS FOR COLLECTING ON BILLS OWED BY AN UNINSURED PATIENT AS IT DOES FOR ALL OTHER PATIENTS. THE HOSPITAL WILL FIRST SHOW THAT IT HAS A CURRENT UNPAID BALANCE THAT IS RELATED TO SERVICES PROVIDED TO THE PATIENT AND NOT COVERED BY A PRIVATE INSURER OR A FINANCIAL ASSISTANCE PROGRAM. THE HOSPITAL FOLLOWS REASONABLE COLLECTION/BILLING PROCEDURES,WHICH INCLUDE MULTIPLE PROGRESSIVE BILLING NOTICES THAT CONTAIN INFORMATION ABOUT THE AVAILABILITY OF FINANCIAL ASSISTANCE PROGRAMS, DOCUMENTATION OF CONTINUOUS BILLING EFFORTS, CHECKING THE MASSACHUSETTS ELIGIBILITY VERIFICATION SYSTEM TO ENSURE THE PATIENT IS NOT A LOW INCOME PATIENT, AND OUTSIDE COLLECTION AGENCIES. FORM 990, SCHEDULE H, PART VI, LINE 2 - NEEDS ASSESSMENT THE COMMUNITY HEALTH INSTITUTE AND THE DEPARTMENT OF PLANNING AND BUSINESS DEVELOPMENT COLLABORATED ON THE COMMUNITY NEEDS ASSESSMENT. THE PURPOSE OF THE WINCHESTER HOSPITAL COMMUNITY HEALTH NEEDS ASSESSMENT (WHCHNA) IS TO INFORM AND GUIDE THE HOSPITAL'S SELECTION OF AND COMMITMENT TO PROGRAM AND SERVICE INITIATIVES THAT ADDRESS THE HEALTH AND SOCIAL NEEDS OF THE COMMUNITIES IT SERVES. THE WHCHNA IS UNDERTAKEN EVERY 3 YEARS AND INCLUDES THE FOLLOWING:- RESEARCH THE CHANGING DEMOGRAPHICS OF THE CITIES AND TOWNS THAT COMPRISE THE HOSPITAL'S SERVICE AREA, BASED ON AVAILABLE SECONDARY DATA SOURCES.- STUDY PRELIMINARY DEMOGRAPHIC FINDINGS, ESPECIALLY WITH REGARD TO DEFINED STATEWIDE HEALTH PRIORITIES- SUPPORTING HEALTH CARE REFORM- CHRONIC DISEASE MANAGEMENT IN DISADVANTAGE POPULATION- REDUCING HEALTH DISPARITIES- PROMOTING THE WELLNESS OF VULNERABLE POPULATIONS- IDENTIFY POTENTIAL POPULATION GROUPS, RISK FACTORS, AND CAUSES OF ILL HEALTH THAT MAY BE THE TARGET OF PROGRAM AND SERVICE INITIATIVES; PURSUE PRIMARY DATA SOURCES TO VALIDATE AND REFINE PRELIMINARY FINDINGS- COMMUNICATE WITH COMMUNITY LEADERS AND OTHER AGENCIES TO PURSUE PRIMARY DATA SOURCES TO VALIDATE AND REFINE PRELIMINARY FINDINGS- COLLABORATE WITH COMMUNITY LEADERS AND OTHER AGENCIES TO IDENTIFY OPPORTUNITIES FOR PARTNERSHIP IN MEETING HEALTH NEEDS AND IMPROVING HEALTH STATUS- RECOMMEND SPECIFIC PROGRAM AND SERVICE INITIATIVES FOR BUDGET APPROVAL- ESTABLISH METRICS TO MEASURE PROGRAM EFFORTS AND OUTCOMES- ENSURE COMPLIANCE WITH STATE AND FEDERAL REQUIREMENTS FOR COMMUNITY BENEFIT PROGRAMMING BY THE HOSPITAL THE SPECIFIC METHODOLOGY UTILIZED WAS TO:- FOCUS THE ANALYSIS ON THE SIX TOWNS IN THE PSA THAT ARE MOST DEPENDENT OF WINCHESTER HOSPITAL- WOBURN- WILMINGTON- READING- WINCHESTER- STONEHAM- NORTH READING- REVIEW AND ANALYZE DEMOGRAPHIC DATA USING 2009 AND PROJECTED 2015 DATA ON RACE, AGE, GENDER AND INCOME- RESEARCH AVAILABLE SECONDARY SOURCE DATA (MASSCHIP) REPORTS TO DETERMINE HEALTH STATUS OF THE POPULATION- SOLICIT AND REVIEW AVAILABLE PRIMARY SOURCE DATA, GENERATED THROUGH FACE-TO-FACE INTERVIEWS, TO VALIDATE FINDINGS OF UNMET HEALTH NEEDS THAT CAN DRIVE EFFECTIVE COMMUNITY BENEFIT PROGRAM DEVELOPMENT- IDENTIFY COMMUNITY PROGRAM INITIATIVES BASED ON POPULATION NEEDS AND BARRIERS TO CARE THE COMMUNITY BENEFIT ADVISORY BOARD ADDED NEW MEMBERS FROM UNREPRESENTED TOWNS IN WINCHESTER HOSPITAL'S GEOGRAPHIC AREA TO PROVIDE ADDITIONAL COMMUNITY NEEDS INFORMATION. ALL OF THE NOTED SOURCES WERE UTILIZED TO ESTABLISH THE COMMUNITY BENEFIT PROGRAMS FOR THE 2014 AND 2015 FISCAL YEAR. FORM 990, SCHEDULE H, PART VI, LINE 3 - PATIENT EDUCATION PATIENTS IN NEED OF FINANCIAL ASSISTANCE ARE REFERRED TO THE HOSPITAL'S DEDICATED PATIENT FINANCIAL SERVICES ACCOUNT REPRESENTATIVE THAT PROVIDES FINANCIAL ASSISTANCE COUNSELING. THE REPRESENTATIVE PROVIDES PATIENTS WITH INFORMATION ON THE AVAILABLE PROGRAMS AND ASSISTS PATIENTS THROUGHOUT THE APPLICATION PROCESS, INCLUDING COMPLETION OF REQUIRED FORMS TO DETERMINE ELIGIBILITY. FORM 990, SCHEDULE H, PART VI, LINE 4 - COMMUNITY INFORMATION WINCHESTER HOSPITAL IS THE NORTHWEST SUBURBAN BOSTON AREA'S LEADING PROVIDER OF COMPREHENSIVE HEALTH CARE SERVICES. WITH A TOTAL OF 229 BEDS AND BASSINETS, WINCHESTER HOSPITAL SERVES THE HEALTH CARE NEEDS OF ANDOVER, ARLINGTON, BILLERICA, BURLINGTON, MALDEN, MEDFORD, MELROSE, METHUEN, NORTH ANDOVER, NORTH READING, READING, STONEHAM, TEWKSBURY, WAKEFIELD, WINCHESTER, WILMINGTON, AND WOBURN AND SEVERAL OTHER SURROUNDING COMMUNITIES. IN ADDITION TO ACUTE CARE INPATIENT SERVICES, WINCHESTER HOSPITAL ALSO PROVIDES INTEGRATED HOME CARE.IN REVIEWING THE DEMOGRAPHIC DATA ON THE SIX TOWNS THAT ARE MOST DEPENDENT ON WINCHESTER HOSPITAL FOR THE YEARS 2008 - 2013, THE 0 - 14 YEAR OLD AGE GROUP REMAINS THE LARGEST AGE COHORT; THE 35 - 44 YEAR OLD AGE GROUP IS EXPECTED TO DECLINE AND THE 55+ AGE GROUP IS PROJECTED TO INCREASE. THE FEMALE POPULATION IN THE 55+ AGE GROUP IS ALSO PROJECTED TO INCREASE. IN ADDITION, THE FASTEST GROWING ETHNIC GROUP IN WINCHESTER HOSPITAL'S SERVICE AREA IS THE ASIAN POPULATION. HEALTH INDICATORS SHOW THAT HIGHER-THAN-STATE RATES OF TOTAL CANCER DEATHS ARE FOUND IN THREE OF OUR TARGETED TOWNS. FOUR OF OUR TARGETED TOWNS HAVE HIGHER-THAN-STATE RATES OF BREAST CANCER DEATHS AND A HIGHER-THAN-STATE RATE OF CARDIOVASCULAR DISEASE DEATHS IS FOUND IN THREE OF OUR TARGETED TOWNS. HOSPITAL DISCHARGES FOR ASTHMA, ANGINA, AND BACTERIAL PNEUMONIA ARE ABOVE-THE-STATE RATE IN FIVE OF OUR TARGETED TOWNS. AS A RESULT, WINCHESTER HOSPITAL'S COMMUNITY BENEFIT PROGRAMMING TARGETS THE NOTED POPULATIONS AND THE CHRONIC DISEASES THAT ACCOMPANY THEM. FORM 990, SCHEDULE H, PART VI, LINE 5 - COMMUNITY HEALTH WINCHESTER HOSPITAL IS COMMITTED TO BENEFITING ALL OF THE COMMUNITIES WE SERVE BY COLLABORATING WITH COMMUNITY PARTNERS TO IDENTIFY HEALTH NEEDS, IMPROVING THE HEALTH STATUS OF COMMUNITY RESIDENTS, ADDRESSING HEALTH DISPARITIES AND EDUCATING COMMUNITY MEMBERS ABOUT PREVENTION AND SELF-CARE.THROUGHOUT 2014-2015 WINCHESTER HOSPITAL WILL RUN FREE COMMUNITY BENEFIT PROGRAMS DESIGNED TO REDUCE HEALTH CARE DISPARITIES, PROMOTE WELLNESS IN AT-RISK POPULATIONS, AND TEACH RESIDENTS HOW TO PROPERLY MANAGE CHRONIC DISEASES.WINCHESTER HOSPITAL OFFERS SERVICES TO COMMUNITY MEMBERS THROUGH OSTEOPOROSIS SCREENINGS, PEDIATRIC ASTHMA HOME VISITS AND EDUCATION SESSIONS, TELEPHONIC HEART FAILURE COUNSELING SESSIONS, EDUCATIONAL AND SOCIAL SENIOR CITIZEN OUTREACH INITIATIVES, A FREE HOME BLOOD DRAW PROGRAM FOR QUALIFIED INDIVIDUALS, AN ANTICOAGULATION CLINIC, AND BLOOD PRESSURE CLINICS.PARTNERING WITH WOBURN COUNCIL FOR SOCIAL CONCERN AND WOBURN BOYS AND GIRLS CLUB, THE HOSPITAL ALSO OFFERS COMMUNITY MEMBERS FITNESS CLASSES FOR BOTH ADULTS AND CHILDREN, NUTRITION EDUCATION AND INSTRUCTIONAL DISEASE MANAGEMENT SESSIONS FOR CHILD CARE PROVIDERS. THROUGH PARTNERSHIPS WITH AREA SCHOOLS AND THE WINCHESTER MULTICULTURAL NETWORK, WINCHESTER HOSPITAL PROMOTES WELLNESS IN VARIOUS COMMUNITY POPULATIONS. FORM 990, SCHEDULE H, PART VI, LINE 6 - AFFILIATED SYSTEM WINCHESTER HOSPITAL OFFICIALLY AFFILIATED WITH LAHEY HEALTH SYSTEM ON JULY 1, 2014 AND IS ASSESSING HOW BEST TO MEET THE NEEDS OF THE COMMUNITIES IT SERVES IN CONJUNCTION WITH LAHEY HEALTH SYSTEM, INC. FORM 990, SCHEDULE H, PART VI, LINE 7 - STATE FILING WINCHESTER HOSPITAL FILES A COMMUNITY BENEFIT REPORT WITH THE STATE OF MASSACHUSETTS. X X X X X X 0 1 0 0 0 0 0 1 0 JONATHAN ADLER MD DIRECTOR 0 320667 0 0 0 328852 0 0 0 669 0 650188 0 0 HOWARD R GRANT JD MD TRUSTEE/OFFICER/PRESIDENT & CEO 0 1587025 0 385000 0 40500 0 248405 0 30296 0 2291226 0 0 DALE LODGE DIRECTOR 525132 0 330226 0 91278 0 4791 0 22057 0 973484 0 138732 0 TIMOTHY O'CONNOR TRUSTEE/OFFICER/EVP CFO & TREASURER 0 590556 0 123120 0 33000 0 121600 0 27275 0 895551 0 0 KEVIN SMITH CEO 539483 0 328261 0 337127 0 4780 0 21475 0 1231126 0 131813 0 DAVID G SPACKMAN TRUSTEE/OFFICER/SVP GOV AFFAIRS & GE 0 368475 0 64020 0 18081 0 28405 0 22980 0 501961 0 0 MATTHEW WOODS ASSISTANT TREASURER 355859 0 86096 0 632 0 3760 0 29441 0 475788 0 0 0 KATHY ANN SCHULER V.P. - PATIENT CARE SERVIC 296266 0 72231 0 1811 0 3614 0 19961 0 393883 0 0 0 ANN LANG TALBOT V.P. - HUMAN RESOURCES 256083 0 78973 0 2780 0 3800 0 22437 0 364073 0 0 0 RICHARD J ISEKE MD V.P. - MEDICAL AFFAIRS 430853 0 129720 0 6643 0 4324 0 1957 0 573497 0 0 0 MARY ELIZABETH CANNING VICE PRESIDENT 250572 0 30990 0 1095 0 3749 0 29704 0 316110 0 0 0 WILLIAM ROBERTSON VICE PRESIDENT 219269 0 53758 0 969 0 3274 0 29940 0 307210 0 0 0 MARY T SWEENEY VICE PRESIDENT 226854 0 53000 0 2780 0 3228 0 779 0 286641 0 0 0 EDWARD P SULLIVAN PHYSICIAN RELATIONS 244882 0 1000 0 1666 0 3410 0 26441 0 277399 0 0 0 PART I, LINE 4B KEVIN SMITH, PRESIDENT OF WINCHESTER HOSPITAL, PARTICIPATES IN A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN. $332,415 WAS REPORTED IN TAXABLE WAGES IN CALENDAR YEAR 2014. DALE LODGE, DIRECTOR, PARTICIPATES IN A SPLIT DOLLAR LIFE INSURANCE PLAN. THE IMPUTED INCOME OF $85,381 WAS REPORTED IN TAXABLE WAGES IN CALENDAR YEAR 2014. LAHEY CLINIC FOUNDATION (RELATED ORGANIZATION) MAINTAINS A 457F NONQUALIFIED DEFERRED COMPENSATION PLAN FOR CERTAIN PHYSICIANS, EXECUTIVE MANAGEMENT AND DEFINED MEDICAL STAFF. THE PLAN OFFERS PARTICIPATING EMPLOYEES AN ANNUAL DEFERRAL OF COMPENSATION IN ADDITION TO THEIR SALARIES. AMOUNTS PROVIDED WERE AS FOLLOWS. HOWARD R. GRANT, JD, MD $220,000 TIMOTHY O'CONNOR $121,600 PART I, LINE 7 THE NON-FIXED PAYMENT BONUSES REPORTED IN SCHEDULE J, PART II, COLUMN (B)(II) ARE DETERMINED BY AN INDEPENDENT COMPENSATION COMMITTEE, WHICH INCLUDES A GROUP OF TRUSTEES. IN A SUBJECTIVE MANNER, THE COMMITTEE TAKES INTO ACCOUNT THE ACHIEVEMENTS OF BOTH THE ORGANIZATION AND THE INDIVIDUAL TO DETERMINE THE APPROPRIATE AMOUNT OF SUCH BONUSES, WHICH INCLUDE, BUT NOT LIMITED TO, THE ORGANIZATION MEETING ITS CORPORATE GOALS, (INCLUDING NET INCOME) AND QUALITY MEASURES, (SUCH AS PATIENT SATISFACTION AND QUALITY OF CARE). A MASSACHUSETTS HEALTH AND ED FACILITIES AUTHORITY 042456011 57586EWC1 2010-09-09 79047442 SERIAL BOND SERIES H - REFUND 0 0 0 B MASSACHUSETTS HEALTH AND ED FACILITIES AUTHORITY 042456011 57586CDD4 2004-07-08 30340000 SERIAL BON SERIES F - ADV. REF 0 0 0 A 5902442 79047442 25510784 1148365 52388293 2012 0 1 1 1 B 30340000 29927552 412448 2006 0 1 1 1 A 0 0 0 0 0 0 1 B 0 0 0 0 0 0 1 A 0 1 0 0 0 0 0 0 1 B 1 1 1 MORGAN STANLEY 20.000000000000 0 0 0 0 1 A 1 B 1 UMS NE LITHOTRIPSY A. LITTLE, OWNER, IS A DIRECTOR OF WINCHESTER HOSPITAL 100200 LASER LITHOTRIPSY SERVICES 0 FORM 990, PART VI, SECTION A, LINE 2 KEVIN F. SMITH, MATTHEW WOODS, JOSEPH R. TARBY III, AND JAMES FICOCIELLO HAVE A BUSINESS RELATIONSHIP. THEY ARE OFFICERS/DIRECTORS OF WINCHESTER HOSPITAL AND ALSO OFFICERS/DIRECTORS OF RELATED FOR PROFIT ENTITY WINCHESTER HEALTHCARE ENTERPRISES, INC. KEVIN F. SMITH, DALE M. LODGE, MATTHEW WOODS, AND ROBERT FORTUNATO HAVE A BUSINESS RELATIONSHIP. THEY ARE OFFICERS/DIRECTORS OF WINCHESTER HOSPITAL AND ALSO OFFICERS/DIRECTORS OF RELATED FOR PROFIT ENTITY WINCHESTER PHYSICIANS ASSOCIATES, INC. FORM 990, PART VI, SECTION A, LINE 8B WINCHESTER HOSPITAL DOES NOT HAVE ANY COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11 MANAGEMENT PREPARED THE IRS FORM 990 ALONG WITH INDEPENDENT TAX CONSULTANTS WHO SIGN THE RETURN AS A PAID PREPARER. EXECUTIVE MANAGEMENT REVIEWED AND PRESENTED A DRAFT OF THE IRS FORM 990 TO THE AUDIT AND COMPLIANCE COMMITTEE OF THE LAHEY HEALTH SYSTEM, INC. BOARD OF TRUSTEES. PRIOR TO THE FILING DATE, A DRAFT OF THE IRS FORM 990 AND THE FINAL IRS FORM 990 WERE BOTH PROVIDED TO THE ENTIRE BOARD OF TRUSTEES BEFORE THE FILING DATE VIA A SECURED WEBSITE. FORM 990, PART VI, SECTION B, LINE 12C SEMI-ANNUAL AUDIT AND COMPLIANCE COMMITTEE REVIEWS COMPILED CONFLICT OF INTEREST REPORT FROM LEGAL SERVICES QUESTIONNAIRES SENT TO ALL AFFILIATES, DIRECTORS, AND TRUSTEES. THE CHAIR OF THE AUDIT/COMPLIANCE COMMITTEE, IN COOPERATION WITH THE COMPLIANCE OFFICER, SHALL CONDUCT THE INITIAL REVIEW OF ANY POTENTIAL CONFLICTS OF INTEREST IDENTIFIED IN THE DISCLOSURES AND SHALL ADOPT A FINDING THAT THE ACTIVITY RAISING THE POTENTIAL CONFLICT OF INTEREST: SHOULD BE PERMITTED UNDER THE POLICY; SHOULD BE PERMITTED WITH MODIFICATION OR OVERSIGHT; IF UNDERTAKEN, WILL REQUIRE THE DIRECTOR, OR COMPLIANCE OFFICER TO ABSTAIN FROM PARTICIPATING IN GOVERNANCE/MANAGEMENT ACTIVITIES RELATED TO THE ACTIVITY; OR SHOULD NOT BE UNDERTAKEN. UPON FINAL DISPOSITION OF THE POTENTIAL CONFLICT, THE RESULTS OF THE REVIEW SHALL BE REPORTED TO THE AFFECTED LEADER. THE AUDIT/COMPLIANCE COMMITTEE SHALL PROVIDE AN ANNUAL REPORT OF ITS REVIEW TO THE BOARD OF DIRECTORS OF WINCHESTER. THE BOARD OF DIRECTORS OF WINCHESTER SHALL, UPON WRITTEN REQUEST OF THE MEMBER OF THE BOARD OF DIRECTORS OR THE COMPLIANCE OFFICER, REVIEW A FINDING OF THE AUDIT/COMPLIANCE COMMITTEE. THE BOARD OF DIRECTORS OF WINCHESTER SHALL EITHER REAFFIRM OR REVIEW THE FINDING AND SHALL REPORT SUCH FINDING TO THE AUDIT/COMPLIANCE COMMITTEE AND TO THE LEADER. THIS CONFLICT OF INTEREST POLICY SHALL BE REVIEWED ANNUALLY BY AND ON BEHALF OF WINCHESTER AND ITS AFFILIATES. FORM 990, PART VI, SECTION B, LINE 15 WINCHESTER HOSPITAL OFFICER SALARIES AND BENEFITS ARE PAID AND DETERMINED UNDER THE COMPENSATION POLICIES WHICH INCLUDES THE USE OF A COMPENSATION COMMITTEE, INDEPENDENT COMPENSATION CONSULTANT, THE FORM 990 OF OTHER ORGANIZATIONS, COMPENSATION SURVEY OR STUDY, AND APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE. THE HOSPITAL'S EXECUTIVE COMPENSATION COMMITTEE THAT IS INDEPENDENT OF MANAGEMENT AND FREE OF ANY CONFLICTS OF INTEREST THAT WOULD INTERFERE WITH THE EXERCISE OF THEIR INDEPENDENT JUDGMENT REVIEWS COMPARABILITY DATA PROVIDED BY AN INDEPENDENT EXTERNAL CONSULTANT, LAL ASSOCIATES INC., TO ESTABLISH COMPENSATION. ALL COMPENSATION DECISIONS ARE DOCUMENTED CONCURRENTLY UPON MAKING THE DECISION. FORM 990, PART VI, SECTION C, LINE 19 WINCHESTER HOSPITAL MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. THE FORM 990 AND AUDITED FINANCIAL STATEMENTS ARE ALSO AVAILABLE ON THE MASSACHUSETTS ATTORNEY GENERAL'S WEBSITE. FORM 990, PART XI, LINE 9: INDIRECT PUBLIC SUPPORT 1,925,138. CHANGE IN INTEREST OF FOUNDATION -37,503. CHANGE IN VALUATION OF SWAPS -1,251,214. OTHER CHANGES IN TRUST -429,348. TRANSFERS TO AFFILIATES -2,248,000. LAHEY CLINICAL HOSPITAL INC 41 MALL ROAD BURLINGTON MA 01805 042704686 HEALTHCARE MA 501(C) (3) LINE 3 LCF INC 0 LAHEY CLINIC INC 41 MALL ROAD BURLINGTON MA 01805 042704683 HEALTHCARE MA 501(C) (3) LINE 9 LCF INC 0 LAHEY HEALTH SHARED SERVICES INC 41 MALL ROAD BURLINGTON MA 01805 043178972 ADMINISTRATIVE SUPPORT TO LHS AND AFFILIATES MA 501(C) (3) LINE 9 LHS INC 0 NORTHEAST HEALTH SYSTEM INC 85 HERRICK STREET BEVERLY MA 01915 043240453 SUPPORT MA 501(C) (3) LINE 11C, III-FI LHS INC 0 NORTHEAST BEHAVIORAL HEALTH CORPORATION ZERO CENTENNIAL DRIVE PEABODY MA 01960 042777145 BEHAVIORAL HEALTH CARE MA 501(C) (3) LINE 7 LHS INC 0 HEALTH AND EDUCATION HOUSING SERVICES INC 131 RANTOUL STREET BEVERLY MA 01915 223232914 HUD HOUSING MA 501(C) (3) LINE 9 NEBH CORP 0 NORTHEAST HOSPITAL CORPORATION 85 HERRICK STREET BEVERLY MA 01915 042121317 HEALTHCARE MA 501(C) (3) LINE 3 LHS INC 0 NORTHEAST MEDICAL PRACTICES INC 85 HERRICK STREET BEVERLY MA 01915 043201853 HEALTHCARE MA 501(C) (3) LINE 9 NEH CORP 0 SEACOAST NURSING & REHABILITATION CENTER 300 WASHINGTON STREET GLOUCESTER MA 01930 041305001 HEALTHCARE MA 501(C) (3) LINE 9 LHS INC 0 NORTHEAST PROFESSIONAL REGISTRY OF NURSES 800 CUMMINGS CENTER BEVERLY MA 01915 201287349 HEALTHCARE MA 501(C) (3) LINE 9 NESH CORP 0 NORTHEAST SENIOR HEALTH CORPORATION 131 RANTOUL STREET BEVERLY MA 01915 042731137 HEALTHCARE MA 501(C) (3) LINE 9 LHS INC 0 CAB HEALTH & RECOVERY 111 MIDDLETON ROAD DANVERS MA 01923 042400270 SUBSTANCE ABUSE MA 501(C) (3) LINE 9 NEBH CORP 0 LAHEY HEALTH SYSTEM INC 41 MALL ROAD BURLINGTON MA 01805 611665701 SUPPORT MA 501(C) (3) LINE 11C, III-FI N/A 0 WINCHESTER HOSPITAL FOUNDATION INC 41 HIGHLAND AVENUE WINCHESTER MA 01890 043399570 SUPPORT MA 501(C) (3) LINE 11C, III-FI WHM INC 0 WINCHESTER HEALTHCARE INVESTMENTS 41 HIGHLAND AVENUE WINCHESTER MA 01890 222701819 SUPPORT MA 501(C) (3) LINE 11C, III-FI WHM INC 0 WINCHESTER HEALTHCARE MANAGEMENT 41 HIGHLAND AVENUE WINCHESTER MA 01890 222701817 MANAGEMENT SERVICE MA 501(C) (3) LINE 11A, I LHS INC 0 WINCHESTER COMMUNITY ACCOUNTABLE CARE ORGANIZATION 41 HIGHLAND AVENUE WINCHESTER MA 01890 223137856 ACO MA 501(C) (3) LINE 11A, I WHM INC 0 LAHEY CLINIC FOUNDATION 41 MALL ROAD BURLINGTON MA 01805 042323457 SUPPORT MA 501(C) (3) LINE 7 LHS INC 0 ADDISON GILBERT SOCIETY INC 41 MALL ROAD BURLINGTON MA 01805 464371382 SUPPORT MA 501(C) (3) LINE 11A, I LHS INC 0 VISITING NURSE ASSOCIATION OF MIDDLESEX-EAST INC 607 NORTH AVENUE WAKEFIELD MA 01880 046151973 HEALTHCARE MA 501(C) (3) LINE 11A, I LHS INC 0 COMMUNITY CARE INC 607 NORTH AVENUE WAKEFIELD MA 01880 900396973 HEALTHCARE MA 501(C) (3) LINE 11A, I LHS INC 0 LAHEY COMMUNITY PHYSICIAN ORGANIZATION 1 INC 41 MALL ROAD BURLINGTON MA 01805 477248298 HEALTHCARE MA 501(C) (3) LINE 11A, I LHS INC 0 RADIATION THERAPY OF WINCHESTER 700 CONGRESS STREET QUINCY MA 02169 205330549 CANCER CENTER MA WINCHESTER HOSPITAL RELATED 515000 1383000 0 0 0.50000 WINCHESTER SHIELDS MRI SERVICES LLC 700 CONGRESS STREET QUINCY MA 02169 462523117 MRI SERVICES MA WINCHESTER HOSPITAL RELATED 2464000 9490600 0 0 0.70000 LAHEY CLINIC INSURANCE CO LTD PO BOX HM 2450 HAMILTON BD INSURANCE BD LHS INC C 0 PERPETUAL TRUSTS (8) 41 MALL ROAD BURLINGTON MA 01805 SUPPORT MA SEE PART VII T 0 REMAINDER TRUSTS (19) 41 MALL ROAD BURLINGTON MA 01805 SUPPORT MA SEE PART VII T 0 POOLED INCOME FUNDS (3) 41 MALL ROAD BURLINGTON MA 01805 SUPPORT MA SEE PART VII T 0 NORTHEAST PROPRIETARY CORPORATION 85 HERRICK STREET BEVERLY MA 01915 042855191 MEDICAL SERVICES MA LHS INC C 0 WINCHESTER PHYSICIAN HOSPITAL ORGANIZATION 41 HIGHLAND AVENUE WINCHESTER MA 01890 472646454 PHYSICIAN SERVICE MA WHM INC C 0 WINCHESTER HEALTHCARE ENTERPRISES INC 41 HIGHLAND AVENUE WINCHESTER MA 01890 042932059 HEALTHCARE VENTURES MA WHM INC C 0 WINCHESTER PHYSICIAN ASSOCIATES INC 41 HIGHLAND AVENUE WINCHESTER MA 01890 043262963 PHYSICIAN PRACTICE MA WHM INC C 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 FORM 990, SCHEDULE R, PART IV LAHEY CLINIC FOUNDATION, INC., NORTHEAST HOSPITAL CORPORATION AND WINCHESTER HOSPITAL, RESPECTIVELY, HAVE FOUR, FOUR AND ONE PERPETUAL TRUSTS. THE PERPETUAL TRUSTS ARE DOMICILED IN MASSACHUSETTS, PENNSYLVANIA AND FLORIDA. LAHEY CLINIC FOUNDATION, INC. HAS NINETEEN REMAINDER TRUSTS. THE REMAINDER TRUSTS ARE DOMICILED IN MASSACHUSETTS, NEW HAMPSHIRE, WISCONSIN AND NEW YORK. LAHEY CLINIC FOUNDATION, INC. HAS THREE POOLED INCOME FUNDS, DOMICILED IN MASSACHUSETTS. FORM 990, SCHEDULE R, PART V THE LAHEY HEALTH SHARED SERVICES, INC. PHILANTHROPY DEPARTMENT CONDUCTS FUNDRAISING AND SOLICITATION EFFORTS ON BEHALF OF ALL ENTITIES WITHIN THE LAHEY HEALTH SYSTEM, INC. FAMILY OF ORGANIZATIONS, EXCEPT "WINCHESTER" AS LISTED IN IRS FORM 990, SCHEDULE R, PART II. THE WINCHESTER HOSPITAL FOUNDATION, INC. PHILANTHROPY DEPARTMENT CONDUCTS FUNDRAISING AND SOLICITATION EFFORTS ON BEHALF OF ALL ENTITIES WITHIN "WINCHESTER", ALSO LISTED IN IRS FORM 990, SCHEDULE R, PART II. LAHEY HEALTH SYSTEM, INC. AND ITS RELATED ORGANIZATIONS, LAHEY CLINIC FOUNDATION, INC. AND ITS RELATED ORGANIZATIONS, WINCHESTER HEALTHCARE MANAGEMENT, INC. AND ITS RELATED ORGANIZATIONS, NORTHEAST BEHAVIORAL HEALTH CORPORATION AND ITS RELATED ORGANIZATIONS, NORTHEAST SENIOR HEALTH CORPORATION AND ITS RELATED ORGANIZATION, NORTHEAST HEALTH SYSTEM, INC. AND ITS RELATED ORGANIZATION, AND NORTHEAST HOSPITAL CORPORATION AND ITS RELATED ORGANIZATION, PROVIDE VARIOUS CORPORATE AND OTHER SERVICES TO EACH OTHER. THE ORGANIZATIONS REIMBURSE EACH OTHER FOR EXPENSES INCURRED SUCH AS EMPLOYEE SALARIES AND BENEFITS, MATERIALS, SUPPLIES, UTILITIES, ETC. CASH IS TRANSFERRED BETWEEN THE ORGANIZATIONS.