2015-11-12T17:02:57-06:00 2014-12-31 560747981 DIXON HUGHES GOODMAN LLP 500 RIDGEFIELD COURT ASHEVILLE NC 28806 990 2014-01-01 620841121 ALLIANCE HEALTH SERVICES INC ALLI 9013808000 6400 SHELBY VIEW DRIVE NO 101 MEMPHIS TN 38134 CHRISTOPHER MCLEAN CFO / TREASURER 9013808000 2015-11-12 1 AMY BIBBY P00445891 8282542254 2014 2016-02-25 16:41:14Z EUGENE CASHMAN 6400 SHELBY VIEW DRIVE NO 101 MEMPHIS TN 38134 24448855 0 X WWW.METHODISTHEALTH.ORG X 1971 TN ALLIANCE HEALTH SERVICES, INC. ("AHS") COMPLIES WITH METHODIST LE BONHEUR HEALTHCARE STANDARDS TO PROVIDE SAFE AND EFFECTIVE TREATMENT, INCLUDING THE PERSONNEL, EQUIPMENT, SUPPLIES AND MEDICATIONS TO PATIENTS IN THEIR HOME OR HOSPICE RESIDENCE RATHER THAN THE HOSPITAL. 3 0 321 0 0 0 570000 550000 24320089 23843600 -36281 0 57178 55255 24910986 24448855 0 0 0 0 15134648 15005471 0 0 0 9297074 10675639 24431722 25681110 479264 -1232255 15387971 15624181 2090237 2410245 13297734 13213936 X THE MISSION STATEMENT OF METHODIST LE BONHEUR HEALTHCARE AND ITS RELATED COMPANIES IS THE FOLLOWING: METHODIST LE BONHEUR HEALTHCARE, IN PARTNERSHIP WITH ITS MEDICAL STAFFS, WILL COLLABORATE WITH PATIENTS AND THEIR FAMILIES TO BE THE LEADER IN PROVIDING HIGH QUALITY, COST-EFFECTIVE PATIENT-AND FAMILY-CENTERED CARE. SERVICES WILL BE PROVIDED IN A MANNER WHICH SUPPORTS THE HEALTH MINISTRIES AND SOCIAL PRINCIPLES OF THE UNITED METHODIST CHURCH TO BENEFIT THE COMMUNITIES WE SERVE. 0 0 15667723 19806733 ALLIANCE HEALTH SERVICES IS A SUBSIDIARY OF THE METHODIST LE BONHEUR HEALTHCARE SYSTEM AND DEMONSTRATES COMMUNITY BENEFIT BY PARTICIPATING IN A VARIETY OF ACTIVITIES THROUGHOUT THE YEAR. ALLIANCE HEALTH SERVICES ENCOMPASSES HOME HEALTH, HOME MEDICAL EQUIPMENT, AND HOSPICE.PLEASE SEE OUR EXTENDED STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS ON SCHEDULE O. 4522541 4036867 OUR LARGEST COMMUNITY INITIATIVE IS THE OPERATION OF A HOSPICE RESIDENCE. A FREE-STANDING HOSPICE RESIDENCE WITH 30-BEDS ON SIX ACRES IS PART OF ALLIANCE HEALTH SERVICES, INC. SINCE 1979, METHODIST HOSPICE HAS PROVIDED COMPASSIONATE CARE AND SUPPORT TO INDIVIDUALS AND THEIR FAMILIES WHO ARE FACING LIFE'S FINAL JOURNEY. AS ONE OF THE FIRST HOSPICES IN THE COUNTRY TO RECEIVE MEDICARE CERTIFICATION, METHODIST HOSPICE WORKS TO HELP EASE THE END-OF-LIFE TRANSITION FOR OVER 150 FAMILIES IN THE MID-SOUTH EVERY DAY. WE'VE BUILT A PLACE-- A HOME, SO FULL OF LIGHT, LOVE AND COMPASSION THAT IT SPILLS OUTSIDE AND TOUCHES EVERYTHING THAT SURROUNDS IT. IT IS A PLACE LIKE HOME FOR THOSE WITH A SHORT TIME TO LIVE AND A PLACE FOR FAMILIES AND FRIENDS TO SHARE IN THE LAST DAYS OF A LOVED ONE'S LIFE. OUR RESIDENCE REPRESENTS THE VERY BEST CARE AT THE END OF LIFE--THE VERY BEST OF US AS HUMAN BEINGS. IT IS OUR WORK MADE REAL AND VISIBLE.THERE MAY COME A TIME WHEN THE CARE OF THE PATIENT IS TOO DIFFICULT TO MANAGE IN THE HOME, OR THE PATIENT HAS NO HOME TO GO TO - THAT IS WHERE THE METHODIST HOSPICE RESIDENCE CAN HELP. BUILT TO FUNCTION AS A HOSPITAL, WITH THE LOOK AND FEEL OF A HOME, THE RESIDENCE CAN MEET MOST PATIENTS' NEEDS WHEN CARE IN THE HOME IS NO LONGER POSSIBLE. OUR RESIDENCE INCLUDES THESE UNIQUE FEATURES: - COMFORTS FROM HOME ARE ENCOURAGED: PHOTOS, BEDDING, PERSONAL MEMENTOS, ETC. - BEDS MAY BE WHEELED OUTSIDE TO THE GARDEN - VIEWS OF THE WALKING PATHS AND GARDENS ABOUND FOR THOSE WHO CANNOT GO OUTSIDE - 30 BEDROOMS, FIVE OF WHICH ARE EQUIPPED TO CARE FOR INFANTS AND CHILDREN - PRIVATE BATHS AND COMFORTABLE SURROUNDINGS IN EACH BEDROOM - 24-HOUR OPEN ACCESS FOR FAMILY, FRIENDS AND PETS TO VISITTHE METHODIST HOSPICE RESIDENCE MAKES IT POSSIBLE TO PROVIDE A PLACE WHERE PATIENTS CAN EMBRACE LIFE TO THE FULLEST AND HAVE THE DIGNITY THEY DESERVE DURING THEIR FINAL STAGE OF LIFE. 20190264 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 38 0 1 321 1 0 0 0 0 0 0 0 0 0 0 X 3 0 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 TN X X SUE WAUGH 9015160656 1211 UNION AVENUE SUITE 600 MEMPHIS TN 38104 GARY SHORB CEO 2.00 48.00 X X 0 1893994 584846 CHRISTOPHER MCLEAN TREASURER 2.00 48.00 X X 0 881550 207519 NIKKI POLIS BOARD MEMBER 2.00 48.00 X 0 309369 81158 TOM BRABYN SECRETARY 2.00 38.00 X 0 145125 39705 MITCH GRAVES PRESIDENT THOUGH OCT 2014 48.00 2.00 X 455919 0 126973 EUGENE CASHMAN III VICE PRES./PRESIDENT AS OF NOV 2014 20.00 22.00 X 248924 0 40003 SALLY ALDRICH DIRECTOR 40.00 X 187966 0 47641 TALEKA PERRY DIRECTOR 40.00 X 100077 0 19822 HELEN SCHLESSINGER DIRECTOR 40.00 X 106683 0 36936 1099569 3230038 1184603 5 0 1 0 ENCLARA HEALTH LLC PO BOX 95000-7220 PHILADELPHIA PA 191957220 PHARMACY SERVICES 389954 HOSPITAL HOUSEKEEPING SYSTEMS LLC PO BOX 826 AUSTIN TX 782930826 CLEANING SERVICES 337698 HOME HEALTH STRATEGIC 1000 W SAINT JOSEPH ST STE 100 LANSING MI 489152552 CONSULTING SERVICES 195117 COMPHEALTH MEDICAL STAFFING INC PO BOX 972670 DALLAS TX 753972670 RECRUITING SERVICES 187027 JOSEPH L WEEMS MD 261 BELLE MEADE LN MEMPHIS TN 381173028 PHYSICIAN SERVICES 155298 8 550000 550000 NET HOME CARE, HEALTH 621610 20366698 20366698 NET HOSPICE HOUSE 623000 3470652 3470652 RECOVERIES OF BAD DEBTS 900099 6250 6250 23843600 OTHER MISCELLANEOUS 900099 55255 55255 55255 24448855 23843600 0 55255 582892 582892 11298286 9266228 2032058 713137 713137 1549091 847493 701598 862065 860308 1757 5150 5150 2395261 1799140 596121 878073 497514 380559 111432 24374 87058 648549 329226 319323 492436 465769 26667 768701 658104 110597 75547 19442 56105 MEDICAL EQUIPMENT 3405136 3405136 MEDICAL SUPPLIES 1328999 1292885 36114 CORPORATE ALLOCATION 542787 542787 MISCELLANEOUS EXPENSES 23568 11508 12060 25681110 20190264 5490846 0 46740 -68265 3771877 3798083 2963735 3676927 48561 46673 13456031 5285268 8489073 8170763 67985 0 15387971 15624181 2047481 2402451 42756 7794 2090237 2410245 X 13297734 13213936 13297734 13213936 15387971 15624181 X -1232255 1148457 X X 0 1 X 1 1 1 X 4932984 237410 250000 570000 550000 6540394 22453941 21520467 24251879 24320089 23843600 116389976 27386925 21757877 24501879 24890089 24393600 122930370 0 0 0 122930370 -7509 -36281 -43790 -7509 -36281 -43790 82363 147823 68318 57178 55255 410937 27469288 21905700 24562688 24910986 24448855 123297517 0.99700 0.99750 0.00000 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 617572 617572 4836429 948201 3888228 1399080 1103849 295231 6598903 3233218 3365685 4047 4047 8170763 DUE TO AFFILIATES 7794 7794 X 25597312 1148457 1148457 24448855 0 24448855 25681110 0 25681110 0 25681110 PART X, LINE 2: THE ORGANIZATION CONSOLIDATES ITS AUDIT WITH ITS CORPORATE PARENT AND OTHER SUBSIDIARIES OF THE PARENT. THE FOLLOWING STATEMENT REFLECTS THE FIN 48 FOOTNOTE OF THE CONSOLIDATED GROUP. THE INTERNAL REVENUE SERVICE HAS DETERMINED THAT THE SYSTEM AND ALL OF THE NONPROFIT AFFILIATES FOR WHICH THE SYSTEM OR ITS BOARD OF DIRECTORS IS CONTROLLING MEMBER ARE EXEMPT FROM FEDERAL INCOME TAX UNDER INTERNAL REVENUE CODE (IRC) SECTION 501(A) AS ORGANIZATIONS DESCRIBED IN SECTION 501(C)(3). AS QUALIFIED TAX-EXEMPT ORGANIZATIONS, THE SYSTEM'S NONPROFIT AFFILIATES MUST OPERATE IN CONFORMITY WITH THE IRC TO MAINTAIN THEIR TAX-EXEMPT STATUS. INCOME TAX FROM THE OPERATIONS OF THE SYSTEM'S WHOLLY OWNED FOR-PROFIT SUBSIDIARY, AMBULATORY OPERATIONS, INC., AND ITS SUBSIDIARIES IS NOT SIGNIFICANT. THE SYSTEM APPLIES FASB ASC TOPIC 740 (TOPIC 740), ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES. TOPIC 740 CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAX POSITIONS AND PROVIDES GUIDANCE ON WHEN TAX POSITIONS ARE RECOGNIZED IN AN ENTITY'S FINANCIAL STATEMENTS AND HOW THE VALUES OF THESE POSITIONS ARE DETERMINED. THERE HAS BEEN NO IMPACT ON THE SYSTEM'S COMBINED FINANCIAL STATEMENTS AS A RESULT OF TOPIC 740. PART XI, LINE 2D - OTHER ADJUSTMENTS: EQUITY TRANSFERS FROM AFFILIATES 1,148,457. 0 1 0 0 0 0 0 1 0 GARY SHORB CEO 0 884106 0 328798 0 681090 0 568878 0 15968 0 2478840 0 641866 CHRISTOPHER MCLEAN TREASURER 0 605094 0 158897 0 117559 0 185191 0 22328 0 1089069 0 136822 NIKKI POLIS BOARD MEMBER 0 254349 0 48850 0 6170 0 72493 0 8665 0 390527 0 0 TOM BRABYN SECRETARY 0 136873 0 8052 0 200 0 16134 0 23571 0 184830 0 0 MITCH GRAVES PRESIDENT THOUGH OCT 2014 319230 0 46271 0 90418 0 106345 0 20628 0 582892 0 75377 0 EUGENE CASHMAN III VICE PRES./PRESIDENT AS OF NOV 2014 230530 0 17597 0 797 0 18867 0 21136 0 288927 0 0 0 SALLY ALDRICH DIRECTOR 180784 0 3059 0 4123 0 26518 0 21123 0 235607 0 0 0 PART I, LINE 3 THE BOARD OF METHODIST LE BONHEUR HEALTHCARE, A RELATED ORGANIZATION AND CORPORATE OVERSIGHT ENTITY, CONDUCTS THE FOLLOWING METHODS TO ESTABLISH COMPENSATION FOR ITS OFFICERS AND KEY EMPLOYEES: - COMPENSATION COMMITTEE - INDEPENDENT COMPENSATION CONSULTANT - FORM 990 OF OTHER ORGANIZATIONS - WRITTEN EMPLOYMENT CONTRACT - COMPENSATION STUDY / SURVEY - APPROVAL BY THE BOARD / COMPENSATION COMMITTEE PART I, LINE 4B THE PURPOSE OF THE METHODIST LE BONHEUR HEALTHCARE CONSOLIDATED EXECUTIVE DEFERRED COMPENSATION PLAN IS TO PROVIDE RETIREMENT BENEFITS FOR CERTAIN EXECUTIVE LEVEL EMPLOYEES IN ADDITION TO THE BENEFITS PROVIDED THROUGH THE OTHER RETIREMENT PLANS THAT ARE SPONSORED BY THE COMPANY. IT IS INTENDED THAT THIS PLAN COMPLY WITH INTERNAL REVENUE CODE SECTION 457(F) AND QUALIFY FOR THE SHORT TERM DEFERRAL EXCEPTION TO CODE SECTION 409A. UNDER THE PLAN, CORPORATE EXECUTIVES AT OR ABOVE THE VICE PRESIDENT LEVEL ARE ELIGIBLE TO RECEIVE EXECUTIVE DEFERRED COMPENSATION CREDITS DEPENDING ON THEIR POSITION CLASSIFICATION [6%,8%,10%,12% OF BASE SALARY]. EACH PLAN YEAR, THE EXECUTIVE MUST ELECT A DEFERRED VESTING DATE TO BE APPLIED TO THE DEFERRED COMPENSATION CREDIT THAT WILL BE EARNED IN THAT PLAN YEAR. THE DEFERRED VESTING DATE IS SUBJECT TO A VESTING SCHEDULE THAT REQUIRES A MINIMUM DEFERRAL OF 5 YEARS TO BECOME VESTED. UPON REACHING AGE 55, THE MINIMUM DEFERRAL IS REDUCED TO 3 YRS. UPON REACHING AGE 60, THE MINIMUM DEFERRAL IS REDUCED TO 2 YRS. AT AGE 64, A CASH EQUIVALENT IS PROVIDED TO THE EXECUTIVE AND NO ADDITIONAL DEFERRALS ARE MADE UNDER THIS PLAN. THE PLAN IS UNFUNDED WITH ALL BENEFITS PAID FROM THE COMPANY'S GENERAL ASSETS. HOWEVER, THE EXECUTIVE IS ALLOWED TO DIRECT THE INVESTMENTS OF HIS DEFERRED COMPENSATION CREDIT IN A MENU OF INVESTMENT ALTERNATIVES MADE AVAILABLE BY THE COMPANY. UPON VESTING, A DISTRIBUTION IS PROVIDED LESS APPLICABLE TAX. IN THE CASE OF A VOLUNTARY TERMINATION OF EMPLOYMENT BY THE EXECUTIVE OR INVOLUNTARY TERMINATION OF EMPLOYMENT FOR CAUSE BY THE COMPANY, THE NON-VESTED FUNDS ARE FORFEITED. ACCELERATED VESTING (100%) IS ALLOWED UPON DEATH, DISABILITY OR AN INVOLUNTARY TERMINATION BY THE COMPANY WITHOUT CAUSE. ALLOCATIONS TO THE PLAN FROM THE ORGANIZATION FOR 2014 INCLUDE THE FOLLOWING: MITCH GRAVES - $ 41,876 EUGENE CASHMAN III - 14,150 ALLOCATIONS TO THE PLAN FROM RELATED ORGANIZATIONS FOR 2014 INCLUDE THE FOLLOWING: CHRISTOPHER MCLEAN - $ 73,384 NIKKI POLIS - 30,782 THE FOLLOWING INDIVIDUALS RECEIVED 457(F) PAYOUTS. THIS AMOUNT REPRESENTS THE FULLY VESTED PORTION PURSUANT TO THE 457(F) PLAN. THIS AMOUNT WAS REFLECTED IN COLUMN (C) ON THE PRIOR YEARS FORM 990 AS REQUIRED. PAYOUTS FROM THE PLAN FROM THE ORGANIZATION FOR 2014 INCLUDE THE FOLLOWING: MITCH GRAVES - $ 58,605 PAYOUTS FROM THE PLAN FROM RELATED ORGANIZATIONS FOR 2014 INCLUDE THE FOLLOWING: CHRISTOPHER MCLEAN - 98,808 GARY SHORB - 558,092 IN ADDITION, GARY SHORB RECEIVED AN EXECUTIVE RETIREMENT LUMP SUM PAYOUT. THIS AMOUNT REPRESENTS THE FULLY VESTED PORTION PURSUANT TO THE 457(F) PLAN. THIS AMOUNT WAS REFLECTED IN COLUMN (C) ON THE PRIOR YEAR'S FORM 990 AS REQUIRED. PAYOUTS FROM THE EXECUTIVE RETIREMENT PLAN FROM RELATED ORGANIZATIONS FOR 2014: GARY SHORB - $ 103,197 PART I, LINE 7 THE MANAGEMENT INCENTIVE PLAN INTENDS TO REWARD MANAGEMENT FOR THE ACHIEVEMENT OF PERFORMANCE AGAINST A PRE-ESTABLISHED SET OF BALANCED AND CHALLENGING GOALS. THE PLAN ALSO INCLUDES A PROVISION THAT DEFERS VESTING OF A PORTION OF THE AWARD SUBJECT TO CONTINUED EMPLOYMENT (WITH A SUBSTANTIAL RISK OF FORFEITURE) TO ENCOURAGE RETENTION OF EXECUTIVES. THIS PLAN IS REVIEWED BY AN EXTERNAL THIRD-PARTY CONSULTANT. FORM 990, PART III, LINE 4A THE ORGANIZATION HOSTS AN ANNUAL HOSPICE CELEBRATION OF LIFE, A SPECIAL SERVICE TO REMEMBER LOVED ONES WHO WERE IN OUR HOSPICE PROGRAM AND PASSED AWAY. CAMP BRAVEHEARTS, A FREE FAMILY GRIEF CAMP, IS OFFERED ANNUALLY TO HELP CHILDREN AND THEIR FAMILIES WHO HAVE LOST A LOVED ONE UNDERSTAND AND PROCESS GRIEF. THROUGH GAMES, MUSIC, AND ART, TRAINED PROFESSIONALS AND VOLUNTEERS HELP PARTICIPANTS EXPLORE THEIR EMOTIONS, THOUGHTS, AND QUESTIONS INVOLVING GRIEF AND WALK BESIDE THEM AS THEY TAKE THEIR FIRST STEPS IN THE HEALING PROCESS. ADDITIONALLY, ALLIANCE STAFF PARTICIPATED IN NUMEROUS HEALTH FAIRS THROUGHOUT THE COMMUNITY: UNIVERSITY PLACE, LEWIS SENIOR CITIZENS' CENTER, METHODIST SOUTH HOSPITAL, METHODIST FAYETTE HOSPITAL, METHODIST NORTH HOSPITAL, IMPACT BAPTIST CHURCH, LUTHERAN VILLAGE, JEWISH COMMUNITY CENTER, HORSESHOE CASINO, ROADHOUSE CASINO, GRAINGER, FUTURE ELECTRONICS, HOLLYWOOD CASINO, NIKE, FEDEX RETIREES, AND TATE COUNTY. SPEAKERS WERE PROVIDED TO A VARIETY OF CHURCHES AND SPECIAL PROGRAMS THROUGHOUT THE COMMUNITY, AS WELL AS A SLEEP DISORDER PROGRAM AND A HOSPICE SERIES ON THE LOCAL LIBRARY'S TELEVISION CHANNEL. FORM 990, PART VI, SECTION A, LINE 6 ALLIANCE HEALTH SERVICES, INC. IS A SUBSIDIARY OF METHODIST LE BONHEUR HEALTHCARE (MLH, 58-1454711),THE SOLE MEMBER OF THE ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 7A AS THE SOLE MEMBER OF THE ORGANIZATION, METHODIST LE BONHEUR HEALTHCARE ELECTS ALL MEMBERS OF THE GOVERNING BODY FOR ALLIANCE HEALTH SERVICES, INC. FORM 990, PART VI, SECTION A, LINE 7B THE MEMBER SHALL, FROM TIME TO TIME, ADOPT AND PROMULGATE SUCH AMENDMENTS, AS IT SHALL DEEM APPROPRIATE TO THE BYLAWS AND TO THE GENERAL POLICIES AND GUIDELINES OF THE CORPORATION, ALL OF WHICH SHALL BE CONSISTENT WITH THE PURPOSES OF THE CORPORATION. UPON REQUEST BY THE BOARD OF DIRECTORS AND AT SUCH OTHER TIMES AS THE MEMBER MAY SELECT, THE MEMBER SHALL REVIEW THE AFFAIRS OF THE CORPORATION AND TAKE SUCH ACTION AS IT MAY DEEM APPROPRIATE IN ACCORDANCE WITH THE BYLAWS. THE FOLLOWING ITEMS, AFTER BEING REVIEWED AND ADOPTED BY THE BOARD OF DIRECTORS, SHALL BE SUBMITTED TO THE MEMBER FOR APPROVAL: - IN THE LAST MONTH OF EACH FISCAL YEAR, A LONG RANGE PLAN, ONE (1) YEAR CAPITAL IMPROVEMENT PLAN, AND A ONE (1) YEAR OPERATING BUDGET OF THE CORPORATION'S ENSUING FISCAL YEAR, AND, THEREAFTER, ANY ACTION WHICH WILL RESULT IN A SUBSTANTIAL CHANGE IN THE EXPENDITURES OR REVENUE FORECAST IN ANY SUCH PLANS OR BUDGETS; - ANY CREATION, OR SUBSTANTIVE AMENDMENT OR A CONTRACT, LEASE OR OTHER AGREEMENT OF WHICH THE CORPORATION IS A PARTY WHICH INVOLVES AN OBLIGATION, OR A POTENTIAL OBLIGATION, ON THE PART OF THE CORPORATION IN EXCESS OF FIVE HUNDRED THOUSAND DOLLARS ($500,000), UNLESS SUCH TRANSACTION HAS BEEN PREVIOUSLY APPROVED WITHIN THE CAPITAL OR OPERATING BUDGETS; - ANY SALE, EXCHANGE, GIFT, MORTGAGE, OPTION, LEASE WITH A TERM IN EXCESS OF ONE YEAR, OR OTHER DISPOSITION OF ANY REAL PROPERTY (INCLUDING IMPROVEMENTS THEREON) OR INTEREST THEREIN OWNED BY THE CORPORATION, OR ANY OTHER ASSET OR ASSETS OWNED BY THE CORPORATION WITH A VALUE IN EXCESS OF FIVE HUNDRED THOUSAND DOLLARS ($500,000) EXCEPT WITH RESPECT TO TRANSACTIONS SPECIFIED AND PREVIOUSLY APPROVED WITHIN THE CAPITAL OR OPERATING BUDGETS; - ANY APPLICATION FOR A GOVERNMENT GRANT; - ANY AMENDMENT OR RESTATEMENT OF THE CORPORATE CHARTER OR ANY PLAN OF MERGER, CONSOLIDATION OR DISSOLUTION OF THE CORPORATION; - ANY INDEMNIFICATION OF PERSONS BY THE CORPORATION EXCEPT AS SPECIFIED IN THE BYLAWS; - ANY ACTION OR INACTION AT VARIANCE WITH THE STATED POLICIES OF THE CORPORATION WHICH POLICIES HAVE BEEN APPROVED BY THE MEMBER; AND - ANY OTHER MATTERS AS MAY BE REQUIRED BY LAW TO BE SUBMITTED TO THE MEMBER OF A NOT-FOR-PROFIT CORPORATION. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS PREPARED BY AN INDEPENDENT ACCOUNTING FIRM WITH INPUT FROM HUMAN RESOURCES, LEGAL, COMPLIANCE, AND FINANCE DEPARTMENTS AND EXTERNAL FINANCIAL CONSULTANTS. FINANCIAL INFORMATION IS RECONCILED TO AUDITED FINANCIAL STATEMENTS AS APPROPRIATE. THE INFORMATION TO BE DISCLOSED REGARDING COMPENSATION IS REVIEWED WITH THE COMPENSATION COMMITTEE OF THE BOARD. THE RETURN IS REVIEWED BY THE CHIEF FINANCIAL OFFICER OF MLH AND MANAGEMENT OF THE ORGANIZATION AS APPROPRIATE. A COPY OF THE RETURN IS PROVIDED TO EACH BOARD MEMBER VIA E-MAIL PRIOR TO FILING THE RETURN. FORM 990, PART VI, SECTION B, LINE 12C METHODIST LE BONEHUR HEALTHCARE, THE PARENT ORGANIZATION, EMPLOYS A COMPLIANCE OFFICER WHO MONITORS AND ENFORCES COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY FOR ALL VOTING BOARD MEMBERS AND APPLICABLE OFFICERS. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION FOR OFFICERS AND KEY EMPLOYEES OF THE ORGANIZATION IS DETERMINED BY THE BOARD OF DIRECTORS OF METHODIST LE BONHEUR HEALTHCARE, THE PARENT ORGANIZATION. AN EXTERNAL INDEPENDENT CONSULTANT ADVISES THE BOARD COMPENSATION COMMITTEE ON EXECUTIVE SALARY AND INCENTIVE COMPENSATION. BENEFITS ARE PERIODICALLY BENCHMARKED BY A SEPARATE EXTERNAL CONSULTANT AND ANY CHANGES ARE APPROVED BY THE BOARD OF DIRECTORS COMPENSATION COMMITTEE. THE COMPENSATION COMMITTEE IS COMPRISED OF INDEPENDENT MEMBERS AND IS A SUBGROUP OF THE FULL BOARD OF DIRECTORS. THE COMPENSATION CONSULTANT ANNUALLY DEVELOPS TOTAL CASH COMPENSATION COMPARISONS OF PEER NON-PROFIT SYSTEMS ESTABLISHED BY THE COMPENSATION COMMITTEE. THE COMPENSATION CONSULTANT INTERPRETS THE INFORMATION AND PROVIDES AN OPINION OF REASONABLENESS ON THE TOTAL CASH COMPENSATION PACKAGE. THE COMPENSATION COMMITTEE APPROVES ANY CHANGES TO THE COMPENSATION AND EXECUTIVE BENEFIT STRUCTURE OF THE CEO AND OTHER TOP EXECUTIVES, OTHERWISE KNOWN AS DISQUALIFIED CANDIDATES. ALL OTHER COMPENSATION DECISIONS ARE DETERMINED BY ARRANGEMENT AS DELEGATED BY THE BOARD OF DIRECTORS. THE COMMITTEE DOCUMENTS ALL DETERMINATIONS. FORM 990, PART VI, SECTION C, LINE 18 PHOTOCOPIES OF THE FORM 990 ARE AVAILABLE UPON REQUEST AT THE ORGANIZATION'S ADMINISTRATIVE OFFICE. IN ADDITION, RECENT FILINGS OF THE FORM 990 ARE AVAILABLE ONLINE AT OUR WEBSITE IN THE "ABOUT US" SECTION. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S FINANCIAL STATEMENTS ARE AUDITED IN A CONSOLIDATION WITH ITS CORPORATE PARENT, METHODIST LE BONHEUR HEALTHCARE, AND RELATED SUBSIDIARIES. INFORMATION ON FINANCIAL STATEMENTS IS AVAILABLE BY CONTACTING THE ORGANIZATION'S CORPORATE OFFICE. PLEASE SEE FORM 990, PART VI, LINE 20 FOR DETAILS. CONFLICT OF INTEREST POLICY AND GOVERNING DOCUMENTS FOR ALL AFFILIATES OF METHODIST LE BONHEUR HEALTHCARE ARE ALSO AVAILABLE BY REQUEST. PART VI, SECTION A, LINE 1B: INDEPENDENCE OF BOARD: ALLIANCE HEALTH SERVICES IS A SUBSIDIARY OF METHODIST LE BONHEUR HEALTHCARE (MLH, 58-1454711), WHICH SERVES AS THE MEMBER OF THE ORGANIZATION. THE BOARD OF ALLIANCE HEALTH SERVICES FAILS TO MEET THE DEFINITION OF INDEPENDENCE FOR THE PURPOSE OF THE FORM 990 DUE TO THE FACT THAT ALL OF THE DIRECTORS ARE COMPENSATED BY MLH. THE BOARD OF MLH HAS A MAJORITY OF INDEPENDENT DIRECTORS AND THROUGH ITS MEMBERSHIP HAS A CONSIDERABLE OVERLAP OF CONTROL WITH ALLIANCE HEALTH SERVICES AND ITS OTHER SUBSIDIARIES. FORM 990, PART XI, LINE 9: EQUITY TRANSFER FROM AFFILIATE 1,148,457. FORM 990, PART XII, LINE 2C: THE PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. METHODIST LE BONHEUR HEALTHCARE 1211 UNION AVENUE SUITE 700 MEMPHIS TN 38104 581454711 SUPPORTING ORGANIZATION TN 501(C)(3) LINE 11B, II N/A 0 METHODIST HEALTHCARE - MEMPHIS HOSPITALS 1265 UNION AVENUE MEMPHIS TN 38104 620479367 HOSPITALS TN 501(C)(3) LINE 3 METHODIST LE BONHEUR HEALTHCARE 0 METHODIST HEALTHCARE-FAYETTE HOSPITAL 214 LAKEVIEW DRIVE SOMERVILLE TN 38068 620862334 HOSPITAL TN 501(C)(3) LINE 3 METHODIST LE BONHEUR HEALTHCARE 0 METHODIST EXTENDED CARE HOSPITAL INC 225 SOUTH CLAYBROOK MEMPHIS TN 38104 621518342 HOSPITAL TN 501(C)(3) LINE 3 METHODIST LE BONHEUR HEALTHCARE 0 METHODIST HEALTHCARE PRIMARY CARE ASSOCIATES 1211 UNION AVENUE SUITE 657 MEMPHIS TN 38104 582078931 INACTIVE HOSPITAL TN 501(C)(3) LINE 9 METHODIST LE BONHEUR HEALTHCARE 0 METHODIST HEALTHCARE COMMUNITY CARE ASSOCIATES 6400 SHELBY VIEW SUITE 101 MEMPHIS TN 38134 621403517 OUTPATIENT HEALTHCARE TN 501(C)(3) LINE 9 METHODIST LE BONHEUR HEALTHCARE 0 METHODIST HEALTHCARE FOUNDATION 1211 UNION AVENUE SUITE 450 MEMPHIS TN 38104 237320638 FOUNDATION TN 501(C)(3) LINE 11A, I METHODIST LE BONHEUR HEALTHCARE 0 LE BONHEUR CHILDREN'S HOSPITAL FOUNDATION 850 POPLAR AVENUE BLDG 2 MEMPHIS TN 38105 621872938 FOUNDATION TN 501(C)(3) LINE 11A, I METHODIST LE BONHEUR HEALTHCARE 0 LE BONHEUR COMMUNITY HEALTH AND WELL-BEING 50 PEABODY PLACE MEMPHIS TN 38103 621251288 FOUNDATION TN 501(C)(3) LINE 7 LE BONHEUR CHILDREN'S FOUNDATION 0 METHODIST HEALTHCARE-JONESBORO HOSPITAL 1211 UNION AVENUE SUITE 657 MEMPHIS TN 38104 710499625 INACTIVE HOSPITAL TN 501(C)(3) LINE 3 METHODIST LE BONHEUR HEALTHCARE 0 METHODIST HEALTHCARE-DYERSBURG HOSPITAL 1211 UNION AVENUE SUITE 657 MEMPHIS TN 38104 621155084 INACTIVE HOSPITAL TN 501(C)(3) LINE 3 METHODIST LE BONHEUR HEALTHCARE 0 METHODIST HEALTHCARE CENTRAL MS MEDICAL ASSOCIATES 1211 UNION AVENUE SUITE 657 MEMPHIS TN 38104 640884720 INACTIVE HOSPITAL TN 501(C)(3) LINE 3 METHODIST LE BONHEUR HEALTHCARE 0 METHODIST HEALTHCARE-JACKSON HOSPITAL 1211 UNION AVENUE SUITE 657 MEMPHIS TN 38104 640794199 INACTIVE HOSPITAL TN 501(C)(3) LINE 3 METHODIST LE BONHEUR HEALTHCARE 0 METHODIST HEALTHCARE-MIDDLE MISSISSIPPI HOSPITAL 1211 UNION AVENUE SUITE 657 MEMPHIS TN 38104 640698911 INACTIVE HOSPITAL TN 501(C)(3) LINE 3 METHODIST LE BONHEUR HEALTHCARE 0 METHODIST HEALTHCARE-OLIVE BRANCH HOSPITAL 1211 UNION AVENUE SUITE 700 MEMPHIS TN 38104 640889822 HOSPITAL MS 501(C)(3) LINE 3 METHODIST LE BONHEUR HEALTHCARE 0 NORTH SURGERY CENTER LP 3960 NEW COVINGTON PIKE MEMPHIS TN 38128 621685756 SURGERY CENTER TN N/A METHODIST SURGERY CENTER-GERMANTOWN LP 1363 S GERMANTOWN ROAD GERMANTOWN TN 38138 621659904 SURGERY CENTER TN N/A HAMILTON EYE INSTITUTE SURGERY CENTER LP 930 MADISON AVE 3RD FLOOR MEMPHIS TN 38103 202873438 SURGERY CENTER TN N/A AMBULATORY OPERATIONS INC 1211 UNION AVENUE SUITE 600 MEMPHIS TN 38104 621157166 MEDICAL SERVICES TN N/A C 0 SOLUS MANAGEMENT SERVICES INC 6400 SHELBY VIEW SUITE 1010 MEMPHIS TN 38134 621361349 HEALTH SERVICES MANAGEMENT TN N/A C 0 MEMPHIS PROFESSIONAL BUILDING INC 1211 UNION AVENUE SUITE 600 MEMPHIS TN 38104 621847544 INVESTMENTS TN N/A C 0 0 0 1 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0