2015-04-29T14:25:25-05:00 2014-06-30 Grant Thornton LLP 2010 CORPORATE RIDGE SUITE 400 MCLEAN VA 22102 990 2013-07-01 520591628 Peninsula Regional Medical Center % JIM GREGORY PENI 4105466400 100 East Carroll Street Suite Salisbury MD 21801 BRUCE RITCHIE CFO 4109124979 2015-04-28 true Mary Torretta P00847851 4109124979 2013 2016-03-07 17:11:31Z Margaret Naleppa CEO 100 East Carroll Street Salisbury MD 21801 528820045 false X www.peninsula.org X 1897 MD Improve the health of the communities we serve. 15 10 3212 189 2477051 -85989 593132 476043 382051695 389447738 13735595 22081011 858548 729289 397238970 412734081 0 0 0 0 189253691 190652104 0 0 503544 197278315 193374899 386532006 384027003 10706964 28707078 525513661 585875889 187252460 182269635 338261201 403606254 X IMPROVE THE HEALTH OF THE COMMUNITIES WE SERVE. false false 345078830 0 387768807 SEE SCHEDULE O. 345078830 true true false true false false false false false true true false false true true false true true false true true false false false false false true true false false true true false false false false false false false false false true false false false false false true true true false false true 248 0 true 3212 true true true true CJ false false false false false false false false X 15 10 true false true false true true true true true false false false true true true true true true true true true CA MD NC X JIM GREGORY 4109124979 100 EAST CARROLL STREET Salisbury MD 21801 Margaret Naleppa President/CEO 40.0 1.0 X X 1313451 0 133270 Martin Neat Immediate Past Chairman 10.0 1.0 X 22500 0 0 Herbert J Geary III Treasurer 1.0 1.0 X X 0 0 0 Michael Crouch MD Board Member (07/13-10/13) 1.0 1.0 X 0 0 0 Murray K Hoy Board Member 1.0 1.0 X 0 0 0 Christjon J Huddleston MD Board Member 1.0 1.0 X 0 0 0 Cynthia Holloway Board Member (07/13-04/14) 1.0 1.0 X 0 0 0 Marion Keenan Board Member 1.0 1.0 X 0 0 0 DebORAH Abbott Secretary 1.0 1.0 X X 0 0 0 Thomas Coates Board Member 1.0 1.0 X 0 0 0 Edward W Urban Board Member (07/13-10/13) 1.0 1.0 X 0 0 0 William McCain Chairman 1.0 1.0 X X 7500 0 0 Monty Sayler Vice-Chairman 1.0 1.0 X X 0 0 0 Thomas Riccio MD Board Member 1.0 1.0 X 0 0 0 Timothy Benning Board Member (10/13-06/14) 1.0 1.0 X 0 0 0 Farouk A Sultani MD Board Member (7/13-10/13) 1.0 1.0 X 0 0 0 David Rommel Board Member (10/13-06/14) 1.0 2.0 X William Todd MD Board Member (01/14-06/14) 1.0 2.0 X 0 0 0 Ryan McLaughlin Board Member 1.0 1.0 X Lura Lunsford VP of Operations 40.0 0.0 X 432792 0 88602 Bruce I Ritchie CFO 40.0 0.0 X 475610 0 113542 CHARLES SILVIA JR MD VP - CHIEF MEDICAL OFFICER 40.0 0.0 X 439319 41855 MARY BETH D'AMICO VP PATIENT CARE SERVICES 40.0 0.0 X 213504 34386 SARA SCOTT VP PEOPLE & ORGANIZATION DEV. 40.0 0.0 X 212617 46063 STEVEN LEONARD VP OPERATION OPTIMIZATION & IN 40.0 0.0 X 241132 83393 KAREN POISKER VP POPULATION HEALTH 40.0 0.0 X 273308 110647 DANIEL MULVANNY VP - GENERAL COUNSEL 40.0 0.0 X 329747 55462 Paul Zorsky MD Physician 40.0 0.0 X 715850 26283 Andy Pierre MD Physician 40.0 0.0 X 776654 33240 Jacek Malik MD Physician 40.0 0.0 X 789451 35051 Daniel Daniels MD Physician 40.0 0.0 X 724513 24422 Halim Charbel MD Physician 40.0 0.0 X 763966 12363 7731914 0 838579 195 false true false HORIZON CSA 265 PIT RD MOORESVILLE NC 28115 BIOMEDICAL SERVICES 5368933 SLEEP WAVES INC 873 BALTIMORE PIKE STE 345 KENNETT SQUARE PA 19348 SLEEP LAB SERVICES 2688000 SHERIDAN ANESTHESIA OF MD PO BOX 452197 SUNRISE FL 33323 ANESTHESIA SERVICES 2039858 MAYO COLLABORATIVE SERVICES PO BOX 9146 MINNEAPOLIS MN 55480 MEDICAL SERVICES 1423222 ASSOCIATES IN RADIATION MEDICINE 4901 TESLA DR STE A BOWIE MD 20715 MEDICAL SERVICES 1188764 70 49365 57000 369678 476043 NET PATIENT SERVICES 621500 387912437 387153975 758462 AMBULATORY PHARMACY 900099 1535301 1535301 389447738 5265925 -16712 5282637 0 0 84724 174064 -89340 0 -89340 -89340 132452846 274140 115897228 14672 16555618 259468 16815086 16815086 0 0 0 CAFETERIA 722210 614832 614832 MANAGEMENT FEES 561000 200000 200000 ALL OTHER REVENUE 900099 3797 3797 818629 412734081 387768807 2477051 22012180 0 0 0 0 1944218 1750018 189731 4469 0 148434528 133652421 14485345 296762 9811906 8831836 957519 22551 20432094 18380048 2005137 46909 10029358 9138101 874306 16951 0 838732 838732 206385 206385 26423 26423 0 1367593 1367593 39061276 25290362 13729107 41807 422925 273824 148648 453 100472235 98882942 1523230 66063 810593 798618 11785 190 0 4113502 4113502 292172 220746 65276 6150 0 39736 39736 5989891 5989891 0 22605993 22559899 46094 1809171 326949 1482222 BAD DEBTS 14313694 14313694 DUES 508264 168480 339076 708 OTHER EXPENSES 496314 321340 174443 531 384027003 345078830 38444629 503544 653349 1991438 18467868 25272529 0 0 36976172 38407998 0 0 0 0 0 0 7148121 9208496 5596743 5234547 492351587 289015241 207842491 203336346 176347198 209601997 0 0 0 0 0 0 72481719 92822538 525513661 585875889 20131916 16261817 0 0 0 0 128009466 124686859 0 0 0 0 0 0 30000 15000 39081078 41305959 187252460 182269635 X 312179653 375152248 17998482 20361044 8083066 8092962 338261201 403606254 525513661 585875889 X 28707078 15086233 21551742 X false true X true false X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false false false false false false false true 26423 26423 false OTHER ACTIVITIES OTHER ACTIVITIES PART II-B, LINE 1I PENINSULA REGIONAL MEDICAL CENTER does not engage in any direct lobbying activities. The organization does not engage in any direct lobbying activities. The organization pays membership dues to Maryland Hospital Association (MHA) and the American Hospital Association (AHA). MHA and AHA engage in many support activities including lobbying and advocating for their member hospitals. The MHA and AHA reported that 6.22% and 23.65% of member dues were used for lobbying purposes and such, the organization has reported this amount on Schedule C Part IV as lobbying activities. 39054428 500000 6781222 41210 321549 45972891 34734107 6448 4624939 311066 39054428 34191392 12685 801060 271030 34734107 28295999 105500 6047698 257805 34191392 25231843 206865 3074487 217196 28295999 0.50750 0.49100 0.00150 false false 10636389 10636389 221070459 74130404 146940055 246787457 208194459 38592998 13857282 6690378 7166904 203336346 INVESTMENT IN PARTNERSHIPS 2113005 UNAMORTIZED FINANCING COSTS 2156384 OTHER ASSETS 11299740 DEBT SERVICE RESERVE FUND 9266926 DONOR RESTRICTED FUND 28610389 SELF INSURANCE FUND 17151850 BOARD DESIGNATED INVESTMENTS 22224244 92822538 0 ADVANCES FROM THIRD PARTY PAYORS 9220834 ACCRUED SELF INSURANCE LIABILITY 13519472 OTHER LIABILITIES 3623359 EMPLOYEE COMPENSATION RELATED PAYROLL TAXES 14942294 41305959 414842531 15086233 -11460825 3625408 411217123 1367593 149365 1516958 412734081 382484109 174064 174064 382310045 1367593 349365 1716958 384027003 Intended Use of Endowment Funds Schedule D, Part V, Line 4 The organization's endowment funds are used for capital, patient services or educational purposes. RECONCILIATION OF REVENUE AND EXPENSES TO AUDITED FINANCIAL STATEMENTS SCHEDULE D, PART XI, LINE 2D BAD DEBT EXPENSES $(14,313,694) RENT EXPENSES 174,064 PARTNERSHIP K-1 INCOME - TAX DIFFERENCES 2,678,805 -------------- $(11,460,825) SCHEDULE D, PART XI, LINE 4B FOUNDATION CONTRIBUTIONS $ 149,365 SCHEDULE D, PART XII, LINE 2D RENT EXPENSES $ 174,064 SCHEDULE D, PART XII, LINE 4D FOUNDATION CONTRIBUTIONS $ 149,365 MANAGEMENT FEES RECLASSED FROM EXPENSES 200,000 ----------- $ 349,365 Central America and the Caribbean 1 1 INVESTMENTS 3353720 1 1 1 1 3353720 3353720 true false true false false false ACTIVITIES PER REGION Schedule F, Part IV THE AMOUNTS IN COLUMN F WERE DETERMINED USING AN ACCRUAL METHOD OF ACCOUNTING. THE ENTIRE $3,353,720 REPRESENTS A CAPTIVE INSURANCE INVESTMENT. true true X true X true X true true true false true true 15133985 15133985 0.04110 15133985 15133985 0.04110 50702 1901590 295363 1606227 0.00440 354 500816 28079 472737 0.00130 85686 35335095 16660493 18674602 0.05070 3425 132129 132129 0.00040 140167 37869630 16983935 20885695 0.05680 140167 53003615 16983935 36019680 0.09790 198 198 8600 8600 137587 137587 90106 90106 236491 236491 true 14313694 229438037 217060260 12377777 X true true 1 1 Peninsula Regional Medical Center 100 E Carroll Street Salisbury MD 21801 X X X Peninsula Regional Medical Center 1 true X X X X X X 13 true false true X WWW.PENINSULA.ORG X X X X X X X X X X false false true true 200. true 300. true X X X X X true true X X X X X X X true false X X X true X X false false Other Method used in determining eligibility for financial assistance Schedule H, Part I, Line 3c N/A - Peninsula Regional Medical Center uses the FPG in determining eligibility for financial assistance. Community Benefit Report Schedule H, Part I, Line 6a PENINSULA REGIONAL MEDICAL CENTER FILES ANNUALLY A COMMUNITY BENEFIT REPORT WITH THE STATE OF MARYLAND. THE REPORT IS FILED WITH THE HSCRC (HEALTH SERVICES COST REVIEW COMMISSION). Executive Summary - Community Benefit Report - FY2014 Peninsula Regional's FY2014 Community Benefits Narrative Report which was submitted to the Health Services Cost Review Commission (HSCRC) is broken into three sections. The report provides the types and scope of community benefit activities including our previously filed Community Health Needs Assessment & Implementation Plan. From a review of the data, Peninsula Regional has identified several health priority areas and developed an implementation plan. One area is Diabetes the other Obesity - our goal better manage diabetes and reduce obesity through creating awareness, education and management of these chronic diseases in our primary service area. There is a team that meets quarterly to evaluate the implementation plan. The Report is made up of the following six sections differentiated by blue paper. This report is now entered electronically online through the internet (Note: a printer friendly version is not available and page numbers sometimes do not follow sequential order throughout the entire report.) 1.) Section I - General Hospital Demographics and Characteristics 2.) Section II - Community Health Needs Assessment 3.) Section III- Community Benefit Administration 4.) Section IV- Hospital Community Benefit Program and Initiatives 5.) Section V- Physicians 6.) Section VI- Appendices Last Page- Community Activities Summary The difference in total community benefit dollars comparing FY2013 to FY2014: FY 2013 - $40,401,235 FY 2014 - $35,900,136 Difference - $ 4,501,099 Reduction of 4.5 Million is due to: 1. Reduction in Charity Care of 3.4 Million. 2. The other 1.1 Million reductions are due to: a. 336 plan through b. Reduction in clinical interns pt, ot, st and predominately nursing Financial Assistance and Certain Other Community Benefits at Cost Schedule H, Part I, Line 7 Part I, Line 7, Column (F)- THE AMOUNT OF BAD DEBT EXPENSE EXCLUDED FROM THE DENOMINATOR IN THE COLUMN (F) PERCENTAGES IS $14,313,694. LINE 7B COLUMN (C) & (F)- MARYLAND'S REGULATORY SYSTEM CREATES A UNIQUE PROCESS FOR HOSPITAL PAYMENT THAT DIFFERS FROM THE REST OF THE NATION. THE HEALTH SERVICES COST REVIEW COMMISSION, (HSCRC) DETERMINES PAYMENT THROUGH A RATE-SETTING PROCESS AND ALL PAYORS, INCLUDING GOVERNMENTAL PAYORS, PAY THE SAME AMOUNT FOR THE SAME SERVICES DELIVERED AT THE SAME HOSPITAL. MARYLAND'S UNIQUE ALL-PAYOR SYSTEM INCLUDES A METHOD FOR REFERENCING UNCOMPENSATED CARE IN EACH PAYORS' RATES, WHICH DOES NOT ENABLE MARYLAND HOSPITALS TO BREAKOUT ANY DIRECTED OFFSETTING REVENUE RELATED TO UNCOMPENSATED CARE. COMMUNITY BENEFIT EXPENSES ARE EQUAL TO MEDICAID REVENUES IN MARYLAND, AS SUCH, THE NET EFFECT IS ZERO. THE EXCEPTION TO THIS IS THE IMPACT ON THE HOSPITAL OF ITS SHARE OF THE MEDICAID ASSESSMENT. IN RECENT YEARS, THE STATE OF MARYLAND HAS CLOSED FISCAL GAPS IN THE STATE MEDICAID BUDGET BY ASSESSING HOSPITALS THROUGH THE RATE-SETTING SYSTEM. THE COST METHODOLOGY FOR CHARITY CARE AND CERTAIN OTHER COMMUNITY BENEFITS IS THE COST-TO-CHARGE RATIO USED FOR THE CHARITY CARE PROGRAMS AND DIRECT COST METHOD FOR THE OTHER BENEFITS/PROGRAMS. Methodology Used to esimated Bad Debt expense Schedule H, Part III, Lines 2 and 3 See response below to Line 4 regarding the methodology used by the organization regarding bad debt. Bad Debt Footnote in the Audited Financial Statements Schedule H, Part III, Line 4 The Hospital provides services to patients in the Eastern Shore area of Maryland, Delaware and Virginia, the majority of whom are covered by third-party health insurance. The Hospital bills the insurer directly for services provided. Insurance coverage and financial information is obtained from patients upon admission when available. The Hospital's policy is to perform in-house collection procedures for approximately 85 days. A determination is made at that time as to what additional collection efforts to pursue. A provision for uncollectible accounts is recorded for amounts not yet written off, which are expected to become uncollectible. Discounts ranging from 2% to 6% of charges are given to Medicare, Medicaid and certain approved commercial health insurance and health maintenance organization programs for regulated services. Discounts in varying percentages are given for certain unregulated services. These major payors routinely review patient billings and deny payment for certain charges as medically unnecessary or as performed without appropriate preauthorization. Discounts and denials are recorded as reductions of net patient service revenue. Accounts receivable from these third-party payors have been adjusted to reflect the difference between charges and the estimated reimbursable amounts. Approximately 36% and 38%, respectively, of accounts receivable were due from the Medicare program as of June 30, 2014 and 2013, respectively. The Medicare and Medicaid reimbursement programs represent a substantial portion of the Hospital's revenues. The Hospital's operations are subject to numerous laws and regulations of federal, state and local governments. These laws and regulations include, but are not necessarily limited to, matters such as licensure, accreditation, government health care program participation requirements, reimbursement for patient services and Medicare and Medicaid fraud and abuse. Medicare Costing Methodology Schedule H, Part III, Line 8 MEDICARE ALLOWABLE COSTS WERE CALCULATED USING A COST TO CHARGE RATIO. PENINSULA REGIONAL MEDICAL CENTER PROVIDES QUALITY MEDICAL SERVICES TO ALL PATIENTS REGARDLESS OF WHAT INSURANCE THEY HAVE. APPROXIMATELY, 38% OF THE MEDICAL CENTER'S REVENUE IS ATTRIBUTABLE TO MEDICARE PATIENTS DURING THE YEAR ENDED JUNE 30, 2014. Collection Policy Schedule H, Part III, Line 9B COLLECTION POLICIES ARE THE SAME FOR ALL PATIENTS. IF A PATIENT NOTIFIES THE MEDICAL CENTER ABOUT THEIR INABILITY TO PAY, THE MEDICAL CENTER WILL SEND THEM THE CHARITY CARE AND FINANCIAL ASSISTANCE FORMS TO FILL OUT. ONCE THE FORMS ARE COMPLETE AND RETURNED TO THE MEDICAL CENTER AND THE PATIENT QUALIFIES FOR FINANCIAL ASSISTANCE, THEN THE PATIENT'S ACCOUNT WILL BE REMOVED FROM COLLECTIONS AND THE ACCOUNT WILL BE WRITTEN OFF. Needs Assessment - Promotion of Community Health Schedule H, Part VI, Line 2 PENINSULA REGIONAL MEDICAL CENTER IN COOPERATION WITH THE WICOMICO, WORCESTER AND SOMERSET COUNTIES, HEALTH DEPARTMENTS, THE ATLANTIC GENERAL HOSPITAL AND THE EDWARD W. MCCREADY MEMORIAL HOSPITAL, HAS BEEN CONDUCTING COMMUNITY HEALTH SURVEYS OF THE TRI-COUNTY AREA SINCE 1995. THESE SURVEYS, ADMINISTERED BY PROFESSIONAL RESEARCH CONSULTANTS (PRC) OF OMAHA, NEBRASKA WERE ADMINISTERED IN 1995, 2000, 2004 AND 2009. IN ADDITION TO THESE ADULT SURVEYS, A SEPARATE ADOLESCENT SURVEY WAS CONDUCTED IN 2000, 2005, AND 2010. RESULTS OF THESE SURVEYS ARE USED BY THE PARTICIPANTS TO ASSESS COMMUNITY HEALTH NEEDS AND PLAN FUTURE SERVICES. OF PARTICULAR NOTE WAS THE DEVELOPMENT OF THE TRI-COUNTY DIABETES ALLIANCE, WHICH IS A COOPERATIVE VENTURE BETWEEN ALL THE PARTNERS AND COMMUNITY AGENCIES TO REDUCE THE INCIDENCES OF DIABETES IN THE TRI-COUNTY AREA. OTHER OUTCOMES RESULTING FROM THE SURVEY FINDINGS INCLUDE SMOKING CESSATION PROGRAMS, OTHER EARLY DETECTION AND SCREENING PROGRAMS FOR HEART AND CANCER, AS WELL AS HEALTH PROMOTION AND EDUCATION WITH A FOCUS ON PREVENTION. THE PRC COMMUNITY HEALTH ASSESSMENT IS A SYSTEMATIC, DATA-DRIVEN APPROACH TO DETERMINING THE HEALTH STATUS, BEHAVIORS AND NEEDS OF OUR COMMUNITY RESIDENTS. SURVEY RESULTS ARE SHARED WITH THE COMMUNITY AND ARE POSTED TO THE PARTICIPANTS WEBSITES. THIS COMMUNITY HEALTH ASSESSMENT SERVES AS A TOOL TOWARDS REACHING THE FOLLOWING THREE GOALS: 1. TO IMPROVE RESIDENTS' HEALTH STATUS, INCREASE THEIR LIFE SPANS, AND ELEVATE THEIR OVERALL QUALITY OF LIFE. 2. REDUCE THE HEALTH DISPARITIES AMONG RESIDENTS BY GATHERING DEMOGRAPHIC INFORMATION ALONG WITH HEALTH STATUS AND BEHAVIOR DATA. 3. TO INCREASE ACCESSIBILITY TO PREVENTIVE SERVICES FOR ALL COMMUNITY RESIDENTS. Patient Education of Eligibility for Assistance Schedule H, Part VI, Line 3 PENINSULA REGIONAL MEDICAL CENTER MAKES AVAILABLE TO ALL PATIENTS THE HIGHEST QUALITY OF MEDICAL CARE POSSIBLE WITHIN THE RESOURCES AVAILABLE. IF A PATIENT IS UNABLE TO PAY DUE TO FINANCIAL RESOURCES, ALL EFFORTS WILL BE MADE TO HELP THE PATIENT OBTAIN ASSISTANCE THROUGH APPROPRIATE AGENCIES, OR, IF HELP IS NOT AVAILABLE, TO PROVIDE CARE AT REDUCED OR ZERO COST. ONE OF PENINSULA REGIONAL'S OVERALL GUIDING PRINCIPLES IS THAT CONCERN OVER A HOSPITAL BILL SHOULD NEVER PREVENT ANY INDIVIDUAL FROM RECEIVING EMERGENCY HEALTH SERVICES THE MEDICAL CENTER WILL COMMUNICATE THIS MESSAGE CLEARLY TO PROSPECTIVE PATIENTS AND TO LOCAL COMMUNITY SERVICE AGENCIES AND MAKE IT CLEAR THAT EMERGENCY SERVICES WILL BE PROVIDED WITHOUT REGARD TO ABILITY TO PAY. THE MEDICAL CENTER WILL ENSURE THAT AN EMERGENCY ADMISSION OR TREATMENT IS NOT DELAYED OR DENIED PENDING DETERMINATION OF COVERAGE OR REQUIREMENT FOR PREPAYMENT OR DEPOSIT. THE MEDICAL CENTER WILL POST ADEQUATE NOTICE OF THE AVAILABILITY OF MEDICAL SERVICES, AND THE GENERAL OBLIGATION OF THE HOSPITAL TO PROVIDE CHARITY CARE. PENINSULA REGIONAL'S "FINANCIAL ASSISTANCE POLICY" INCLUDES THE REQUIRED LANGUAGE OF DETERMINATION OF PROBABLE ELIGIBILITY WITHIN TWO BUSINESS DAYS. ON PAGE 2, THE "FINANCIAL ASSISTANCE POLICY" STATES THAT UPON RECEIPT OF THE FINANCIAL ASSISTANCE REQUEST, THE REPRESENTATIVE WILL REVIEW INCOME AND ALL DOCUMENTATION. THE PATIENT MUST BE NOTIFIED WITHIN TWO BUSINESS DAYS OF THEIR PROBABLE ELIGIBILITY. IN ACCORDANCE WITH SECTION 1, 2 AND 3, PENINSULA REGIONAL PROVIDES PUBLIC NOTICE AND INFORMATION REGARDING ITS CHARITY CARE POLICY IN DELMARVA'S LARGEST PAPER "THE DAILY TIMES", POSTED SIGNS IN THE ADMISSION, BUSINESS OFFICE EMERGENCY ROOM AND OTHER MAJOR SERVICE AREAS OF THE MEDICAL CENTER; ADDITIONALLY INDIVIDUAL NOTICE IS PROVIDED TO EACH PERSON WHO SEEKS SERVICES IN THE MEDICAL CENTER AT THE TIME OF PRE-ADMISSION OR ADMISSION. Community Information Schedule H, PART VI, LINE 4 PENINSULA REGIONAL IS LOCATED IN SALISBURY, MARYLAND. THE HOSPITAL'S SERVICE AREA IS PREDOMINATELY RURAL AND COVERS 6 COUNTIES LOCATED IN THREE DIFFERENT STATES: MARYLAND, DELAWARE AND VIRGINIA. SOME OF THE UNIQUE HEALTHCARE CHARACTERISTICS OF THESE COUNTIES INCLUDE A HIGH PREVALENCE OF DIABETES WHICH IS APPROXIMATELY TWICE THAT OF THE STATE OF MARYLAND. THERE IS A HIGHER INCIDENCE OF SKIN CANCER AND THE INCIDENCE RATE FOR HEART DISEASE IS STATISTICALLY SIGNIFICANTLY HIGHER THAN MARYLAND. IN ADDITION, THE MEDIAN INCOME IS LOWER THAN THAT OF MARYLAND AND EDUCATIONAL ATTAINMENT LAGS BEHIND THE STATES AVERAGE. THE MEDICAL CENTER'S PRIMARY SERVICE AREA IS COMPRISED OF THE MAJORITY OF ZIP CODES IN WICOMICO, WORCESTER, AND SOMERSET COUNTIES. AS OF JUNE 30, 2013 THESE COUNTIES CONTRIBUTED APPROXIMATELY 77 PERCENT OF PENINSULA REGIONAL'S TOTAL DISCHARGES. THE MEDICAL CENTER ALSO SERVICES DORCHESTER COUNTY, MARYLAND, THE SOUTHERN PORTION OF SUSSEX COUNTY, DELAWARE AND THE NORTHERN PORTION OF ACCOMACK COUNTY, VIRGINIA. THESE COUNTIES COMPRISED AN ADDITIONAL 21 PERCENT OF THE MEDICAL CENTER'S TOTAL DISCHARGES DURING THE SAME TIME PERIOD. PATIENTS DISCHARGED FROM THE FOLLOWING GEOGRAPHICAL AREAS: AREA 2014 DISCHARGES % --------------------------------------------------------- WICOMICO 9,794 49.3% WORCESTER 3,338 16.8% SOMERSET 2,135 10.7% DORCHESTER, TALBOT,CAROLINE 618 3.1% DELAWARE 2,317 11.7% VIRGINIA 1,250 6.3% ALL OTHERS 431 2.1% ------ ------ TOTAL 19,883 100.0% SOURCE: PENINSULA REGIONAL MEDICAL CENTER, FINANCIAL AND STATISTICAL REPORT, JUNE 30, 2014. BETWEEN 2009 AND 2014, THE MEDICAL CENTER'S PRIMARY SERVICE AREA (WICOMICO, WORCESTER AND SOMERSET COUNTIES, MARYLAND) IS EXPECTED TO GROW 5.3 PERCENT OR SLIGHTLY MORE THAN 1 PERCENT PER YEAR. MUCH OF THIS GROWTH WILL BE EXPERIENCED IN WICOMICO COUNTY AT A RATE OF 6.8 PERCENT FOLLOWED BY WORCESTER COUNTY AT 3.4 PERCENT AND SOMERSET COUNTY AT 3.3 PERCENT. IN THE MEDICAL CENTER'S SECONDARY SERVICE AREA (DORCHESTER COUNTY, MARYLAND, SUSSEX COUNTY, DELAWARE, AND ACCOMACK COUNTY, VIRGINIA) THE POPULATION IS EXPECTED TO GROW 8 PERCENT OR 1.6 PERCENT PER YEAR OVER THE SAME TIME PERIOD. MOST OF THIS GROWTH (10.2 PERCENT) IS EXPECTED TO OCCUR IN SUSSEX COUNTY, DELAWARE. (10.2 PERCENT) IS EXPECTED TO OCCUR IN SUSSEX COUNTY, DELAWARE. Promotion of Community Health Schedule H, Part VI, Line 5 PENINSULA REGIONAL MEDICAL CENTER IS COMMITTED TO THE HEALTH OF THE RURAL COMMUNITIES IT SERVES. IN FY 2013, THE HOSPITAL'S CHARITY CARE INCREASED 19.3% ($18,575,221 TO $22,153,022) FROM THE PREVIOUS YEAR. IN ADDITION, COMBINED CHARITY AND BAD DEBT FOR FY 2014 WAS $14,313,694. THE HEALTH OF THE COMMUNITY IS THE HOSPITAL'S MISSION PROVIDING QUALITY HEALTHCARE AND EASE OF ACCESS FOR A RURAL POPULATION. TO THAT END, THE HOSPITAL HAS ESTABLISHED 9 PRIMARY CARE PHYSICIAN SATELLITE OFFICES LOCATED STRATEGICALLY THROUGHOUT THE SERVICE AREA. THESE SATELLITE LOCATIONS ADDRESS THE SPECIFIC DISEASES THAT ARE INDIGENT TO THESE RURAL AREAS. BASED ON THE INFORMATION GATHERED THROUGH THE MOST RECENT COMMUNITY HEALTH ASSESSMENT AND THE GUIDELINES SET FORTH IN HEALTHY PEOPLE 2010, THE FOLLOWING "HEALTH PRIORITIES" REPRESENT A SIGNIFICANT OPPORTUNITY FOR HEALTH IMPROVEMENT WHICH ARE BEING ADDRESSED BY THE HOSPITAL, PHYSICIAN SATELLITE OFFICES AND THE COUNTY HEALTH DEPARTMENTS: - DIABETES (AS A RESULT OF THE COMMUNITY HEALTH ASSESSMENT SURVEY, A TRI-COUNTY DIABETES ALLIANCE WAS ESTABLISHED TO HELP EDUCATE, CREATE AWARENESS, AND IMPROVE THE HEALTH OF PEOPLE WITH DIABETES AND THOSE AT RISK FOR DEVELOPING DIABETES) WWW.TRIDIABETES.ORG - HEART DISEASE & STROKE - NUTRITION - ACCESS TO HEALTH CARE SERVICES IN ADDITION TO THESE AREAS, THERE ARE MULTIPLE OTHER PRIORITIES AND CONTRIBUTING FACTORS THAT EACH PARTNER ASSESSED IN CONJUNCTION WITH THIS SURVEY. IN IDENTIFYING PRIORITIES FOR COMMUNITY ACTION AND DESIGNING STRATEGIES FOR IMPLEMENTATION, A NUMBER OF CRITERIA WERE APPLIED TO THE CONSIDERATION PROCESS, INCLUDING: - IMPACT: THE DEGREE TO WHICH THE ISSUE AFFECTS OR EXACERBATES OTHER QUALITY OF LIFE AND HEALTH-RELATED ISSUES. - MAGNITUDE: THE NUMBER OF PERSONS AFFECTED, ALSO TAKING INTO ACCOUNT VARIANCE FROM BENCHMARK DATA AND YEAR 2010 TARGETS. - SERIOUSNESS: THE DEGREE TO WHICH THE PROBLEM LEADS TO DEATH, DISABILITY OR IMPAIRS ONE'S QUALITY OF LIFE. - FEASIBILITY: THE ABILITY OF ORGANIZATIONS TO REASONABLY IMPACT THE ISSUE, GIVEN AVAILABLE RESOURCES. - CONSEQUENCES OF INACTION: THE RISK OF EXACERBATING THE PROBLEM BY NOT ADDRESSING AT THE EARLIEST OPPORTUNITY. EACH PARTNER WAS RESPONSIBLE FOR ENGAGING IN ACTIVITIES SPECIFIC TO THE GEOGRAPHY WITHIN WHICH THEY OPERATE. EACH PARTNER USED THE RESULTS OF THE SURVEY TO PLAN SCREENINGS AND/OR INTERVENTIONS TAILORED TO THE NEEDS OF THEIR POPULATION. PARTNERS SHARED PLANS AND COLLABORATED WHERE POSSIBLE. IN ADDITION TO THE PROGRAMS ALREADY PRESENTED, A NUMBER OF OTHER INITIATIVES FROM THE COMMUNITY HEALTH SURVEY HAVE BEEN STARTED INCLUDING: - UNDER THE PRIORITY AREA OF ACCESS TO CARE, ACCESS TO DENTAL SERVICES, PARTICULARLY FOR CHILDREN WAS IDENTIFIED. AS A RESULT, GRANTS AND GIFTS WERE RECEIVED TO EXPAND DENTAL PROGRAMS AT THE LOCAL HEALTH DEPARTMENT. - FOR HEART DISEASE, A STATE GRANT SUPPLIED THE MONEY TO DO WORK SITE WELLNESS PROGRAMS INCLUDING SCREENINGS. - FOR CANCER, MONEY FROM THE CIGARETTE RESTITUTION FUND WAS USED TO PROVIDE COLORECTAL SCREENINGS INCLUDING PREVENTION, EDUCATION, DIAGNOSIS AND TREATMENT. ADDITIONALLY, FUNDS WERE OBTAINED FROM A GRANT TO PROVIDE MAMMOGRAMS FOR LOW INCOME WOMEN. - IN TERMS OF OBESITY, A THREE YEAR FEDERAL GRANT PROVIDED FUNDS TARGETED AT AFRICAN-AMERICAN FAMILIES TO PARTICIPATE IN A PROGRAM TO MAKE LIFESTYLE CHANGES, QUIT SMOKING, CONTROL THEIR BLOOD PRESSURE, EXERCISE (THROUGH A WALKING PROGRAM) AND MEETINGS WITH A NUTRITIONIST TO MODIFY THEIR EATING BEHAVIOR. - FOR SUBSTANCE ABUSE, A NEW SUBOXONE (A HEROIN ALTERNATIVE) CLINIC WAS ESTABLISHED WITH GREAT SUCCESS. THIS IS THE ONLY SUCH CLINIC ON THE EASTERN SHORE. - AND FINALLY, FOR MENTAL HEALTH CARE, A NEW CLINIC WHICH IS CO-LOCATED IN A PRIMARY CARE SITE EXPANDS CARE FOR MENTAL HEALTH PATIENTS WITHOUT THE STIGMA OF BEING SEEN IN A MENTAL HEALTH CLINIC. COMMUNITY FLU SHOTS THE MISSION OF THE MEDICAL CENTER IS TO "IMPROVE THE HEALTH OF THE COMMUNITIES WE SERVE." IN FISCAL YEAR 2014, THE MEDICAL CENTER PROVIDED 5,150 FLU SHOTS (BELOW COST, WE DID ASK FOR A DONATION) THROUGH A THREE DAY DRIVE-THRU FLU CAMPAIGN. THE AMOUNT OF COMMUNITY BENEFIT PROVIDED WAS $102,973. PENINSULA PARTNERS PENINSULA PARTNERS IS DESIGNED FOR INDIVIDUALS 55 AND OLDER AND IS A SPECIAL PROGRAM PROVIDED AS A SERVICE TO OUR COMMUNITY ABSOLUTELY FREE. PENINSULA PARTNERS MEMBERS WILL LEARN TIPS ON HEALTHY LIVING, ATTEND SEMINARS AND PARTICIPATE IN HEALTH SCREENINGS. THIS PROGRAM PROVIDES: - MONTHLY LIFESTYLE NEWSLETTER - FEATURING HEALTHY TIPS, IN DEPTH HEALTH ARTICLES, ETC. - SAFE DRIVING CLASSES - HEALTH SCREENINGS - SOCIAL EVENTS - INPATIENT VISITS - SAFETY CLASSES - SEMINARS ON VARIOUS HEALTH TOPICS WAGNER WELLNESS VAN PENINSULA REGIONAL'S WAGNER WELLNESS VAN DELIVERS HEALTH CARE ASSESSMENTS AND EDUCATION TO RURAL LOCATIONS WITHIN THE HOSPITALS SERVICE AREA. THE VAN HAS MULTIPLE USES AND MANY VENUES. IT IS ON SITE AT LOCAL COMMUNITY OUTDOOR FESTIVALS WITH STAFF PROVIDING THE FOLLOWING SCREENINGS: BLOOD PRESSURE, PULSE OXIMETRY, BODY FAT ANALYSIS, GRIP STRENGTH, AND VISION. DURING FY2014 WE SCREENED 1,599 MEMBERS OF THE COMMUNITY WITH VARIED "AT RISK" LEVELS AT 58 LOCATIONS. (THIS ONLY REPRESENTS OUR VAN PRESENCE AT MAJOR COMMUNITY INITIATIVES, AND DOES NOT REPRESENT THE MULTITUDE OF COMMUNITY APPEARANCES MADE BY OTHER MEDICAL CENTER DEPARTMENTS AT HEALTH FAIRS ON THE DELMARVA PENINSULA.) IN OCTOBER 2008, IN AN EFFORT TO EXPAND OUR MOBILE SERVICE TO THE AT-RISK AND UNDERSERVED POPULATIONS, PENINSULA REGIONAL MEDICAL CENTER FORMED A PARTNERSHIP WITH THE WICOMICO HEALTH DEPARTMENT TO OFFER DIABETES, STROKE AND HYPERTENSION EDUCATION AND SCREENINGS TO THESE POPULATIONS (SITES RECOMMENDED BY THE HEALTH DEPARTMENT). THIS PROGRAM CONTINUES TODAY. OTHER INITIATIVES THE HOSPITAL AND ITS EMPLOYEES ALSO PARTICIPATE ON AN ANNUAL BASIS IN MANY CHARITABLE CAUSES THAT PROMOTE A HEALTHY LIFESTYLE AND OVERALL WELL-BEING OF THOSE IN THE COMMUNITY. IN FY2013, HOSPITAL EMPLOYEES CONTRIBUTED OVER $106,000 TO THE UNITED WAY CAMPAIGN, IN ADDITION TO HAVING EMPLOYEES WALK AND PARTICIPATE IN THE MARCH OF DIMES, HOSPITAL EMPLOYEES AND PHYSICIANS ALSO PARTICIPATED IN THE 2011 WICOMICO COUNTY RELAY FOR LIFE. THIS CANCER SURVIVOR'S RECEPTION HOSTED OVER 600 CANCER SURVIVORS AND BRINGS HOPE TO THOSE SUFFERING. EVERY YEAR HOSPITAL EMPLOYEES ARE ENGAGED IN COMMUNITY OUTREACH WHICH ARE VOLUNTEER TYPE SERVICES PROVIDED "OUTSIDE THE REALM OF NORMAL HOSPITAL PATIENT CARE." THE HOSPITAL ENCOURAGES VOLUNTEERISM IN THE FOLLOWING AREAS: - HEALTH SCREENINGS - HEALTH EDUCATION - SUPPORT GROUPS - PROGRAM SUPPORT - RESEARCH - FINANCIAL CONTRIBUTIONS IN FY2014, 251,040 HOURS WERE GIVEN BY EMPLOYEES. AS AN EXAMPLE, THE HOSPITAL IS A COMMUNITY PARTNER WITH "THE WELLNESS COMMUNITY OF DELMARVA." THIS IS A NON-PROFIT ORGANIZATION DEDICATED TO PROVIDING FREE EMOTIONAL SUPPORT, EDUCATION AND HOPE FOR PEOPLE AFFECTED BY CANCER AND THEIR LOVED ONES. THE HOSPITAL'S EMPLOYEES VOLUNTARILY GIVE OF THEIR TIME AND TALENTS TO SUPPORT THIS TERRIFIC PROGRAM. THE HOSPITAL ALSO PARTICIPATES IN THE "HEALTHIEST MARYLAND" INITIATIVE A RECENT PROGRAM LAUNCHED BY LT. GOVERNOR BROWN, THE ADMINISTRATION AND SECRETARY COLMERS. THIS IS A STATEWIDE MOVEMENT TO CREATE A CULTURE OF WELLNESS - AN ENVIRONMENT WHERE THE HEALTHIEST CHOICE IS EASY. MARYLAND RURAL HEALTHCARE ASSOCIATION IS ANOTHER AGENCY THAT PROMOTES THE DELIVERY OF RURAL HEALTH CARE, THEIR MISSION STATEMENT IS TO: ENHANCE THE HEALTH AND WELL BEING OF RURAL POPULATIONS IN MARYLAND THROUGH LEADERSHIP, EDUCATION, ADVOCACY AND COLLABORATION. THE HOSPITAL IS REPRESENTED ON THIS COMMITTEE AND IS COMMITTED TO FINDING SOLUTIONS TO PROVIDING THE MOST EFFICIENT AND EFFECTIVE HEALTHCARE DELIVERY TO AN UNDERSERVED RURAL POPULATION. THERE EXIST GEOGRAPHIC POCKETS IN PENINSULA REGIONAL'S SERVICE AREA WHICH ARE FEDERALLY LISTED AS BEING UNDERSERVED BY HEALTHCARE PROVIDERS. IN AN EFFORT TO ADDRESS THE RURAL POPULATIONS NEED FOR PROVIDERS, THE HOSPITAL HAS PARTNERED IN DEVELOPING HEALTHCARE PROGRAMS WITH LOCAL COLLEGES AND UNIVERSITIES. FOR EXAMPLE, THE HOSPITAL HAS COLLABORATED WITH UMES (UNIVERSITY OF MARYLAND EASTERN SHORE) AND HAS MADE A 5 YEAR $250,000 DOLLAR INVESTMENT IN THEIR PHYSICIAN ASSISTANT PROGRAM. THIS INVESTMENT WILL EXPAND THE HEALTHCARE EDUCATIONAL OPPORTUNITIES, AND IN THE FUTURE PROVIDE HEALTH CARE PROFESSIONALS AVAILABLE TO CARE FOR RESIDENTS IN OUR REGION. THERE CONTINUES TO BE ONGOING COLLABORATIONS WITH WOR-WIC COMMUNITY COLLEGE AND SALISBURY UNIVERSITY TO FURTHER DEVELOP HEALTHCARE PROGRAMS AND PROVIDERS TO MEET THE CHALLENGES OF 21ST CENTURY HEALTHCARE. Affiliated Health Care System Roles Schedule H, Part VI, Line 6 PENINSULA REGIONAL MEDICAL CENTER IS PART OF THE PENINSULA REGIONAL HEALTH SYSTEM. THE SYSTEM INCLUDES A FOUNDATION AND FOR-PROFIT ENTITIES WITH INTERESTS IN VARIOUS HEALTH CARE JOINT VENTURES. IN ADDITION TO THE COMMUNITY BENEFITS PROVIDED BY THE MEDICAL CENTER, THE HEALTH SYSTEM EVALUATES THE NEEDS OF THE COMMUNITY AND WILL PARTICIPATE IN COMMUNITY BENEFIT PROGRAMS AS NEEDED. Community Benefit Report State Filings Schedule H, Part VI, Line 7 State(s) with which the organization files a community benefit report: MARYLAND X X true true X X X X X X false true false false false true true true false Margaret Naleppa President/CEO 689840 0 197075 0 426536 0 119040 0 14230 0 1446721 0 0 0 Lura Lunsford VP of Operations 355382 0 73512 0 3898 0 75642 0 12960 0 521394 0 0 0 Bruce I Ritchie CFO 387364 0 84348 0 3898 0 92341 0 21201 0 589152 0 0 0 Paul Zorsky MD Physician 714632 0 1218 11111 15172 742133 0 Andy Pierre MD Physician 644186 100000 32468 17551 15689 809894 0 Jacek Malik MD Physician 648233 140000 1218 24064 10987 824502 0 Daniel Daniels MD Physician 438615 258237 27661 13355 11067 748935 0 Halim Charbel MD Physician 466424 296324 1218 11527 836 776329 0 MARY BETH D'AMICO VP PATIENT CARE SERVICES 191303 19290 2911 12903 21483 247890 0 SARA SCOTT VP PEOPLE & ORGANIZATION DEV. 192639 19463 515 28591 17472 258680 0 STEVEN LEONARD VP OPERATION OPTIMIZATION & IN 214020 23214 3898 59347 24046 324525 0 KAREN POISKER VP POPULATION HEALTH 244385 25025 3898 95067 15580 383955 0 DANIEL MULVANNY VP - GENERAL COUNSEL 297226 28623 3898 41346 14116 385209 0 CHARLES SILVIA JR MD VP - CHIEF MEDICAL OFFICER 384075 54026 1218 22622 19233 481174 0 Supplemental nonqualified retirement plan Schedule J, Part I, Line 4b PRMC has a non-qualified supplemental retirement plan. This plan was approved by the Compensation Committee of the PRMC Board of Directors to supplement the executive's retirement income. The supplemental retirement plan was developed based on an independent consultant report on market-based practices for supplemental retirement plans. The percentage of final average pay, the requirements for vesting, participants, and pay-out provisions were established, reviewed, and approved by the compensation committee. The contributions to the supplemental non-qualified retirement plan are included in schedule J, Part II, column C or in schedule J, Part I, column B(III) as part of deferred compensation. The following individuals participated in this supplemental non-qualified retirement plan: Margaret Naleppa $76,923 Lura Lunsford $40,000 Bruce I. Ritchie $40,000 Steven Leonard $40,000 AMOUNTS REPORTED ON SCHEDULE J , PART II, COLUMN (B)(III) INCLUDE DEFERRED COMPENSATION AMOUNTS UNDER A BOARD OF TRUSTEES APPROVED EXECUTIVE COMPENSATION PLAN IN ACCORDANCE WITH SECTION 457(F) OF THE INTERNAL REVENUE CODE. THESE AMOUNTS WERE DISTRIBUTED FROM A QUALIFIED RETIREMENT PLAN TRUSTEE ACCOUNT DUE TO VESTING. FOR CEO, MARGARET NALEPPA, PRMC CONTRIBUTED $250,000 WHICH APPRECIATED WITH INVESTMENT EARNINGS TO $408,027 BETWEEN THE PERIOD 4/1/2008 AND 4/1/2013. Contingent Compensation Schedule J, Part I, Lines 6a & 6b Officers and key employees of Peninsula Regional Medical Center are paid compensation determined by a number of variables including but not limited to individual goals as well as organization operational achievements in service, quality, safety, employee satisfaction, and cost. The final determination of the contigent compensation amount is determined and approved by the board as part of the overall compensation review of officers and key employees. During calendar year 2013, the following bonuses were paid: Margaret Naleppa $197,075 Lura Lunsford $73,512 Bruce I. Ritchie $84,348 MARY BETH D'AMICO $19,290 SARA SCOTT $19,463 STEVEN LEONARD $23,214 KAREN POISKER $25,025 DANIEL MULVANNY $28,623 CHARLES SILVIA JR, M.D. $54,026 Non-Fixed Payments Schedule J, Part I, Line 7 During calendar year 2013, the following retention and productivity bonuses were paid: Andy Pierre, M.D. $100,000 Jacek Malik, M.D. $140,000 Daniel Daniels, M.D. $258,237 Halim Charbel, M.D. $296,324 A MARYLAND HEALTH & HIGHER EDUCATION FACILITY 520936091 574217WT8 2006-02-09 146668251 SEE PART VI false false false A 154822905 0 154822905 11127422 0 0 1167501 0 0 100184165 0 0 2009 true false true true A false false true false true true 0.00900 0.00420 0.01320 true false false true A false false true false false true MORGAN STANLEY 20.4 false true false 0 false true A true Description of Purpose SCHEDULE K, PART I, COLUMN F THE PROCEEDS OF THE ISSUE, AFTER PAYMENT OF FINANCING COSTS, WERE USED PRIMARILY (I) TO FINANCE AND REFINANCE A PORTION OF THE COSTS OF CONSTRUCTION, RENOVATION, ACQUISITION AND EQUIPPING OF HEALTHCARE FACILITIES; (II) TO REFUND OUTSTANDING 1993 BONDS (ISSUED 10/28/93); (III) TO PAY A PORTION OF THE INTEREST ACCRUING ON THE SERIES 2006 BONDS FOR A PERIOD TO EXTEND TO JANUARY 1, 2009; AND (IV) TO PAY THE COUNTERPARTY A TERMINATION PAYMENT OF $1,575 IN CONNECTION WITH A FORWARD STARTING INTEREST RATE EXCHANGE AGREEMENT ENTERED INTO ON AUGUST 9, 2005 AND UNWOUND ON JANUARY 24, 2006. Capital Expenditures From Proceeds SCHEDULE K, PART II, LINE 10 OF THE AMOUNT REPORTED ON PART II, LINE 10, $12,281,895 IS CAPITALIZED INTEREST. Date of Rebate Computation Schedule K, Part IV, Line 2c The rebate computation was performed in August 2010. William Todd MD Trustee 97771 Medical Staff Fees false William Todd MD Trustee 144701 Emergency Room Services false David Rommel Trustee 879379 Electrical/Mechanical Services false Timothy Benning Trustee 464667 Pathology Services false Christjon J Huddleston MD Trustee 54020 Medical Director Fees false DESCRIPTION OF TRANSACTIONS WITH INTERESTED PERSONS SCHEDULE L, PART IV Each of the above-named trustees are owners of businesses which provide services to PRMC. The services provided were approved by independent members of the governing body and are charged at fair market value rates. STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS Form 990, Part III, Line 4 Peninsula Regional Medical Center is a not-for-profit 501(c)(3) non-stock corporation founded in 1897 to serve the health care needs of the community. The Hospital's primary purpose is to provide the highest primary, secondary, and selected tertiary health care services to residents of and visitors to the Mid-Delmarva Peninsula in a competent, compassionate, and cost-effective manner designed to elicit a high degree of customer satisfaction. The Hospital's mission is to improve the health of the communities we serve by providing quality medical care regardless of race, creed, sex, national origin, handicap, or age. If a patient is unable to pay due to financial resources, efforts will be taken to assure care at an affordable cost, or obtained assistance through appropriate agencies on the patient's behalf. Emergency services care will be provided to everyone regardless of ability to pay. Peninsula Regional Medical Center served over 19,000 inpatients and provided more than 500,000 outpatient services during fiscal 2014. Food service provided more than 400,000 meals to patients and employees. Although reimbursement for services rendered is critical to the operation and stability of Peninsula Regional Medical Center, it is recognized that not all individuals possess the ability to pay for essential medical services. The Hospital, in keeping with the commitment to serve all members of the community, during fiscal 2014 provided: -Charity and other allowances totaling: $49,665,021 -Discounts to third party payors including government programs such as -Medicare and Medicaid: $49,134,776 -Write-off of uncollectible accounts: $14,313,694 -The total unreimbursed value of providing care to these patients is $113,113,491. Also provided are many wellness programs, community education and free programs offered throughout the year based upon activities and services that Peninsula Regional Medical Center believes will serve a bona fide community health need. Some of the programs are as follows: -A variety of brochures are displayed in all hospital waiting areas to educate members of the community regarding programs and services. -Participation in health fairs during FY 2014 in order to foster health education in the community. -Being called upon to speak before community organizations on a variety of healthcare topics. We provide childbirth preparation classes, exercise classes for prenatal and postpartum women and CPR classes. -We provide assistance to educators through our work with student nurses, radiology, respiratory and laboratory technicians. During FY 2014, Peninsula Regional Medical Center volunteers contributed over 41,000 hours toward the common purpose of servicing the health care of the community. PROGRAM SERVICE ACTIVITY Form 990, Part III, Line 4a During FY 2014, Peninsula Regional Medical Center performed over 400 community outreach activities. Specific examples of education and outreach programs, support groups, community health screenings, and fitness and wellness activities supported by Peninsula Regional Medical Center are as follows: Community Educational and Outreach Programs: - Labor & Delivery Tours (exclusive of Childbirth Class Tours) - CPR - Childbirth Preparation Classes - Refresher Course - Childbirth - Sibling Classes - Infant Care Classes - Grandparent Classes - Safe Sitter Program - Women's Health Education Support Groups: - Diabetes Support Groups - Stroke Support Group - Head and Neck Cancer Support Group Events: Community Screenings: - Height/Weight, Blood Pressure - Skin Cancer Screenings - Oral, Head and Neck Cancer Screenings - Hearing Screenings - Flu Clinic Educational Exhibits: - Diabetes Education - Trauma - Women's Health - Safe Sitter - Relay for Life Benefits: - March of Dimes Walk America - United Way - Women Supporting Women Fitness/Exercise Programming: - Cardiac Rehabilitation - Indoor Cycling and Weights - Women and Weight Training Business Relationships Form 990, Part VI, Line 2 Margaret Naleppa, Martin Neat, and Hugh McLaughlin are members of the board of directors of Peninsula Health Ventures, a wholly-owned taxable subsidiary of Peninsula Regional Health System. Significant Changes to Governing Documents Form 990, Part VI, Line 4 The following changes were made to the organization's bylaws: 1. In Article II. Board of Trustees, Section 1 b. Appointive Trustees: The President of the Junior Auxiliary Board President of PRMC was removed as one of the Ex Officio Trustees. d. Limitations on Trustee Qualification: The revision in this section refers to the Chairman. This provision used to read: "The provision shall not prevent a Chairman from completing the second year of a two year term, or the third year of a three year term." Deleted - Or the third year of a three year term. 2. In Article III. Officers, Section 2 Chairman: Removal of Chairman's term extension language. This rovision used to read: "A Trustee must not serve as Chairman for more than two years during a continuous period of Board Membership, unless a 2/3 majority of the Board approves, and the Chairman accepts, a one (1) year extension of the Chairman's term." Deleted: Unless a 2/3 majority of the Board approves, and the Chairman accepts, a one (1) year extension of the Chairman's term was deleted. 3. In Article IV. Committees, Section 1 Committees: Corporate Strategy & Planning Committee, and Contract Committee were added 4. In Article IV. Committees, Section 9 Contract Committee: Added new Section 9 defining Contract Committee and re-numbered The Contract Committee reviews substantial contracts, determines that contracts align with Hospital's goals and mission, determines that contracts are consistent with for Fair Market Value including review and access methodologies, makes recommendations to the Board of Trustees and the President regarding these matters. Meets on a monthly basis, as called by Chairman. Changed Signatory from Edward W. Urban to Debbie Abbott Members or Stockholders Form 990, Part VI, Line 6 Peninsula Regional Health System is the sole corporate member of the medical center. Members or Stockholders Who May Elect Form 990, Part VI, Line 7a In its capacity as the sole corporate member of the medical center, Peninsula Regional Health System has the ability to elect members of the medical center's governing body. Decisions Subject to Approval Form 990, Part VI, Line 7b As the sole corporate member, Peninsula Regional Health System has the ability to approve major expenditures and long term borrowings of the medical center. Form 990 Review Process Form 990, Part VI, Line 11b Oversight of the completion of the organization's Form 990 has been delegated to the Chief Financial Officer of Peninsula Regional Medical Center by the President of the organization once the Form 990 and all schedules have been prepared by the organization's independent tax services provider, they are reviewed by the President prior to filing. Further, a copy of the Form 990 is provided to all Board members prior to filing. The return is reviewed by the Audit/Finance Committee in conjunction with management and the organization's independent tax advisors from Grant Thornton LLP. Conflict of Interest Policy Monitoring & Enforcement Form 990, Part VI, Line 12c The Board of Trustees are required to disclose annually, in writing, any and all interest which they or any immediate member of their family may have in any business entity which has or seeks a contractual or competitive relationship with the organization. The Board has the authority to determine if a violation has occured and whether any interest which should be disclosed should disqualify a director from participating in any specific Board discussion or Board membership. All disclosures are reviewed by the organization's Chief Compliance Officer. Any conflicts are presented to the Board. If a person is conflicted, they will recuse themselves from all discussions and deliberations to which they would appear to be conflicted. Process for Determining Compensation Form 990, Part VI, Line 15a & 15b The organization uses a compensation committee to determine the compensation of the CEO/Executive Director and other key employees. The CEO of the organization has a written employment contract. The compensation committee uses an independent consultant, compensation surveys and other organization's Form 990 in the determination process. The members of the compensation committee are independent and rely on this comparability data when they discuss and determine the individual's compensation. Contemporaneous minutes of such discussions are kept and maintained in the organization's files. How Documents are Made Available to the Public Form 990, Part VI, Line 19 The organization's governing documents, conflict of interest policy and financial statements are available to the public upon request to the public information office of Peninsula Regional Medical Center at 100 East Carroll Street, Salisbury, MD 21801. Other Changes in Net Assets Form 990, Part XI, Line 9 Pension Adjustment - FAS 158 $ 12,083,867 Capital contribution 6,000,000 Transfer from Foundation for Capital Campaign 1,900,000 T/R Net assets released from restriction (1,069,715) Withdrawal from Adkins endowment (41,210) Partnership K-1 Income not on books 2,678,805 Other Changes in Net Assets (5) --------------- Total $ 21,551,742 FORM 990 PART IX LINE 11G DESCRIPTION:PHYSICIAN CONTRACTED SERVICES TOTAL FEES:8305520 FORM 990 PART IX LINE 11G DESCRIPTION:TECHNICAL PROFESSIONAL FEES TOTAL FEES:7047472 FORM 990 PART IX LINE 11G DESCRIPTION:REFERENCE LAB WORK TOTAL FEES:1764184 FORM 990 PART IX LINE 11G DESCRIPTION:MEDICAL STAFF ADMNINISTRATION TOTAL FEES:75000 FORM 990 PART IX LINE 11G DESCRIPTION:CONTRACTED SERVICES TOTAL FEES:19644983 FORM 990 PART IX LINE 11G DESCRIPTION:COLLECTION FEES TOTAL FEES:930945 FORM 990 PART IX LINE 11G DESCRIPTION:TEMPORARY LABOR TOTAL FEES:991003 FORM 990 PART IX LINE 11G DESCRIPTION:PEST CONTROL TOTAL FEES:25256 FORM 990 PART IX LINE 11G DESCRIPTION:TRASH PICKUP TOTAL FEES:268792 FORM 990 PART IX LINE 11G DESCRIPTION:EMPLOYEE MOVING TOTAL FEES:8121 Peninsula Regional Medical Center Fdn 100 East Carroll Street Salisbury MD 21801 521851935 Fundraising MD 501(c)(3) 11 TYPE I PRHS false Peninsula Regional Health System (PRHS) 100 East Carroll Street Salisbury MD 21801 522132761 Parent MD 501(c)(3) 11 TYPE II NA false Peninsula General Hospital INS Trust 100 East Carroll Street Salisbury MD 21801 526321234 Insurance MD 501(c)(3) 11 TYPE III PRHS false Delmarva Surg Ctr 641 S Salisbury Salisbury MD 21801 522251436 Healthcare MD PHV 0 0 0.00000 Peninsula Health Ventures (PHV) 100 East Carroll Street Salisbury MD 21801 522250012 P'SHIP INV MD PRHS C Corp 0 0 0.00000 false PRLTC Inc 100 East Carroll Street Salisbury MD 21801 522190588 LT Care MD PHV C Corp 0 0 false Delmarva Peninsula Insurance Company PO Box 1159 Grand Cayman CJ KY1-1102 981110617 Insurance CJ PRMC C corp 0 17985407 1.00000 true false false false false false false false false false false false true true true true false true true true PENINSULA REGIONAL MEDICAL CENTER FOUNDATION N,O,Q 419460 FMV PENINSULA REGIONAL MEDICAL CENTER FOUNDATION M,S 2049365 FMV PENINSULA HEALTH VENTURES L 200000 FMV Delmarva Peninsula Insurance Company R 3082729 FMV