2015-11-13T08:21:54-06:00 2014-12-31 EISNERAMPER LLP 111 WOOD AVE SO STE 600 ISELIN NJ 088302700 990 2014-01-01 226019101 THE COMMUNITY HOSPITAL GROUP INC % RICHARD C SMITH COMM 7323217747 98 JAMES STREET EDISON NJ 08820 RICHARD C SMITH CFO 7323217747 2015-11-09 true RICHARD A SACKIN P00184276 7322437000 2015-11-09 2014 2016-04-25 22:37:26Z JFK MEDICAL CENTER RAYMOND F FREDERICKS 80 JAMES STREET EDISON NJ 08820 493865253 false X jfkhealthsystem.org X 1962 NJ WE ARE COMMITTED TO EXCELLENCE IN PROVIDING QUALITY AND COMPASSIONATE HEALTHCARE SERVICES TO OUR DIVERSE COMMUNITIES. 23 19 4571 443 537944 -191097 2711585 2858416 446722020 466781029 1182979 1416223 15538964 17886818 466155548 488942486 0 0 0 0 251851486 256548128 0 0 0 201364647 208370528 453216133 464918656 12939415 24023830 268685938 266588129 249649207 250285285 19036731 16302844 X WE ARE COMMITTED TO EXCELLENCE IN PROVIDING QUALITY AND COMPASSIONATE HEALTHCARE SERVICES TO OUR DIVERSE COMMUNITIES. false false 60629142 68601094 JFK JOHNSON REHABILITATION INSTITUTE - During 2014, the JFK Johnson Rehabilitation Institute had 2,005 admissions resulting in 26,544 patient days. Please refer to Schedule O, JFK Medical Center Background and History for more information. 118270152 118195746 INPATIENT SERVICE - During 2014, JFK Medical Center had 17,641 admissions resulting in 85,760 patient days. Please refer to Schedule O, JFK Medical Center Background and History for more information. 94553186 110495884 OPERATING ROOM AND SAME DAY SURGERIES - During 2014, JFK Medical Center performed 5,373 inpatient surgeries, 6,300 same day stay surgical procedures and 3,095 surgical procedures at the Mediplex Surgery Center. Please refer to Schedule O, JFK Medical Center Background and History for more information. 154227554 169488305 427680034 true true false true false false true false false false true false false true true true true true false false false false false false false false true true false false true true false false false false false false false false false false false false false false true true true true false false true 379 0 true 4571 true true true false false false false false false false false false X 23 19 false true false false true false true true true false false true true true true true true true true true true NJ X RICHARD C SMITH 7323217747 80 JAMES STREET EDISON NJ 08820 X PRAFUL RAJA CHAIRMAN 0.0 0.0 X 0 0 0 MICHAEL A KLEIMAN DMD VICE CHAIRMAN 0.0 0.0 X 0 0 0 JAY M JENEY SECRETARY & TREASURER 0.0 0.0 X 0 0 0 DAVID A BELOWICH BOARD MEMBER 0.0 0.0 X 0 0 0 RICHARD BULLOCK MD BOARD MEMBER 0.0 0.0 X 0 0 0 SIMPSON YT CHOI BOARD MEMBER 0.0 0.0 X 0 0 0 KIMBERLY GALEOTA BOARD MEMBER 0.0 0.0 X 0 0 0 DONALD GRIFFIN BOARD MEMBER 0.0 0.0 X 0 0 0 JOHN O GRUN BOARD MEMBER 0.0 0.0 X 0 0 0 DONALD KLINE MD BOARD MEMBER 0.0 0.0 X 0 0 0 JOHN G MCDONOUGH DMD BOARD MEMBER 0.0 0.0 X 0 0 0 VAL MESZAROS BOARD MEMBER 0.0 0.0 X 0 0 0 JULANE MILLER-ARMBISTER BOARD MEMBER 0.0 0.0 X 0 0 0 PARAG P PATEL ESQ BOARD MEMBER 0.0 0.0 X 0 0 0 PETER A POGANY BOARD MEMBER 0.0 0.0 X 0 0 0 ELAINE SANTOWASSO BOARD MEMBER 0.0 0.0 X 0 0 0 LEONARD SENDELSKY BOARD MEMBER 0.0 0.0 X 0 0 0 FRANKLIN SPIRN BOARD MEMBER 0.0 0.0 X 0 0 0 RAYMOND F FREDERICKS CEO/PRESIDENT/EX-OFFICIO 40.0 0.0 X X 982944 0 330667 SCOTT GEBHARD COO/EX-OFFICIO 40.0 0.0 X X 538600 0 102858 BARBARA BRAYNOCK EX-OFFICIO 0.0 0.0 X 0 0 0 ELAINE GRAVES EX-OFFICIO 0.0 0.0 X 0 0 0 JASBIR S SARKARIA MD EX-OFFICIO 0.0 0.0 X 0 0 0 BHUDEV SHARMA EX-OFFICIO 0.0 0.0 X 0 0 0 RICHARD C SMITH SENIOR VP & CFO 40.0 0.0 X 555497 0 104226 AMIE THORNTON VP OPERATIONS 40.0 0.0 X 365459 0 41329 WILLIAM OSER SVP MEDICAL AFFAIR 40.0 0.0 X 536862 0 107966 SHIRLEY HIGGINS BOWERS SVP HUMAN RESOURCES 40.0 0.0 X 355410 0 73533 INDRANIL GANGULY CIO 40.0 0.0 X 309347 0 46681 SARA JEAN CUCCURULLO MED DIRECTOR EXEC. 40.0 0.0 X 389598 0 66229 GUDRUN MOLL CNO 40.0 0.0 X 278804 0 11836 ASIF BASHIR HIGHEST COMPENSATED 40.0 0.0 X 686710 0 22325 STEPHEN BLOOMFIELD MD HIGHEST COMPENSATED 40.0 0.0 X 673575 0 21809 JAWAD F KIRMANI HIGHEST COMPENSATED 40.0 0.0 X 487189 0 19771 MOHAMMAD MOUSSAVI HIGHEST COMPENSATED 40.0 0.0 X 456258 0 22295 THOMAS STEINEKE MD HIGHEST COMPENSATED 40.0 0.0 X 681800 0 24350 JOHN MCGEE FORMER OFFICER 0.0 0.0 X 387140 0 0 7685193 0 995875 396 true true false GE HEALTHCARE 3000 North Grandview Blvd WAUKESHA WI 53188 EQUIPMENT MAINT 4499338 MCKESSON TECHNOLOGIES INC 5995 Windward PARKWAY ALPHARETTA GA 30005 SOFTWARE SVCS. 3545915 OA PETERSON CONSTRUCTION CO 78 WILLOW STREET MONTCLAIR NJ 07042 BLDG. CONSTRUCTION 2944804 Adickman Communications LLC 356 Bloomfield Avenue MONTCLAIR NJ 07042 MEDIA & ADVERTISTING 2223309 DHP Management Services 170 Southport Drive MORRISVILLE NC 27560 PROF. SERVICES 1701927 160 X 1792189 882673 183554 2858416 PATIENT SERVICE REVENUE 900099 466098121 466098121 MEDICAL RECORDS 900099 188899 188899 NEURO DRUG STUDY 900099 439528 439528 LAMAZE 900099 21320 21320 CPR COURSE 900099 33161 33161 466781029 1340095 1340095 0 0 435974 435974 0 435974 435974 4998895 4922767 76128 76128 76128 0 0 0 SCHOOL OF NURSING 900099 4573309 4112346 460963 HURRICANE SANDY REVENUE 900099 2205571 2205571 MEDICAID STIMULUS 900099 1870011 1870011 8801953 8724972 76981 17450844 488942486 483693929 537944 1852197 0 0 0 0 5824810 5242329 582481 0 215320550 193788495 21532055 631692 568523 63169 17521847 15769662 1752185 17249229 15524306 1724923 0 1933777 1740399 193378 206107 185496 20611 0 0 0 0 1716379 1544741 171638 2977616 2679854 297762 11012297 9911067 1101230 0 2748653 2473788 274865 0 0 888784 799906 88878 6820517 6138465 682052 0 16292183 14662965 1629218 8180466 7362419 818047 MEDICAL SUPPLIES 66047629 66047629 BAD DEBT 17853233 17853233 PURCHASE SERVICES 35077099 31569389 3507710 EQUIPMENT RENTAL & MAINT. 9349132 8414219 934913 27266656 25403149 1863507 464918656 427680034 37238622 0 X 37093651 35963369 0 0 0 0 57396853 56351023 0 0 0 0 0 0 6379550 6719108 8497485 9383942 419151897 295950107 126867416 123201790 16888965 17739081 0 0 0 0 0 0 15562018 17229816 268685938 266588129 68611135 70076646 0 0 2692527 2959514 114997176 111308536 0 0 0 0 0 0 0 0 63348369 65940589 249649207 250285285 X 12921755 9615913 4897350 5442305 1217626 1244626 19036731 16302844 268685938 266588129 X 24023830 456571 -27214288 X X false true X true true true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true false false false false true false true 177176 177176 false Part II-B, Line 1(I) OTHER LOBBYING ACTIVITIES RETAINER WITH WASHINGTON STRATEGIC CONSULTING, TRAVEL & CONVENTIONS, MEALS & SPECIAL FUNCTIONS AND PAID STAFF OR MANAGEMENT. Also the hospital is a member of the New Jersey Hospital Association, the American Hospital Association, the AMERICAN MEDICAL REHAB PROVIDERS ASSOCIATION, AND THE FAIR SHARE HOSPITAL COLLABORATIVE. ALL FOUR engage in lobbying efforts on behalf of their member hospitals AND A portion of the dues paid to these organizations has been allocated to lobbying activities performed on behalf of the organization. This allocation amounted to $48,678. X 1 3.00 1 false false 8677147 8677147 193383629 110169033 83214596 858287 654927 203360 214862628 185126147 29736481 1370206 1370206 123201790 OTHER ASSETS 3536934 BENEFICIAL INT IN NET ASSETS 6686931 NOTE REC. HARTWYCK AT OAK TREE 2789882 DUE FROM JFK HEALTHSHARE, INC. 88336 DUE FROM JFK FOUNDATION 934512 DUE FROM ATLANTIC INSURANCE EX 271448 DUE FROM RWJ JR LIFESTYLE INST 66284 DUE FROM MUHLENBERG FOUNDATION 222176 NOTE REC FROM JFK HEALTHSHARE 51984 DEFERRED FINANCING COSTS 2529305 DUE FROM HARTWYCK WEST NURSING 52024 17229816 0 OTHER LIABILITIES 6787798 AMOUNTS DUE 3RD PARTY PAYORS 22735013 ACCRUED PENSION LIABILITY 26583337 ACCRUED POST RETIREMENT BENEFIT 105138 CAPITAL LEASE OBLIGATIONS 3928240 CURRENT PORTION OF CAP LEASE OBLIGATION 1921245 CURRENT PORTION OF LONG-TERM DEBT 3688640 DUE TO JFK MEDICAL ASSOCIATES, P.A. 191178 65940589 X 467898258 -18725866 -18725866 486624124 2318362 2318362 488942486 447065422 447065422 17853234 17853234 464918656 PART II, LINE 5 JFK MEDICAL CENTER CREATED THE CONSERVATION EASEMENT. THE LAND WAS NOT CONTRIBUTED TO JFK MEDICAL CENTER. PART II, QUESTIONS 6 AND 7 THE ONLY STAFF HOURS AND EXPENSES INCURRED FOR THE PROPERTY AND EASEMENT WOULD BE FOR ORDINARY LAND UPKEEP. PART II, LINE 8 THE EASEMENT IS UNDEVELOPABLE RAW LAND. PART II, LINE 9 JFK MEDICAL CENTER REPORTS CONSERVATION EASEMENTS WITHIN PROPERTY PLANT AND EQUIPMENT ON THE BALANCE SHEET. PART X, QUESTION 2 JFK Medical Center accounts for uncertainty in income taxes by prescribing a recognition threshold of more-likely-than-not to be sustained upon examination by the appropriate taxing authority. Measurement of the tax uncertainty occurs if the recognition threshold has been met. There were no tax uncertainties that met the recognition threshold in 2014 or 2013. PART XI, LINE 2D - OTHER ADJUSTMENTS PROVISION FOR DOUBTFUL COLLECTIONS: -18,725,866 PART XI, LINE 4B - OTHER ADJUSTMENTS INVESTMENT INCOME: 603,961 NET ASSETS RELEASED FROM RESTRICTIONS FOR CAPITAL PURCHASES: 1,714,401 TOTAL PART XI, LINE 4B: 2,318,362 PART XII, LINE 4B - OTHER ADJUSTMENTS PROVISION FOR DOUBTFUL COLLECTIONS: 18,725,866 RECOVERY OF DOUBTFUL COLLECTIONS ON RELATED PARTY RECEIVABLES: -872,633 TOTAL PART XII, LINE 4B: 17,853,234 true true X true X 300. true X 500. true true true false false 18186978 5071495 13115483 0.02930 43185351 34744152 8441199 0.01890 61372329 39815647 21556682 0.04820 674405 674405 0.00150 13457116 10379558 3077558 0.00690 30317699 28363716 1953983 0.00440 1869166 1869166 0.00420 46318386 38743274 7575112 0.01700 107690715 78558921 29131794 0.06520 true 17853233 12494058 126012177 170161207 -44149030 X true true 20 1 THE COMMUNITY HOSPITAL GROUP INC 65 JAMES STREET EDISON NJ 08820 JFKHEALTHSYSTEM.ORG X X X X X ACUTE HOSPITAL 1 2 THE COMMUNITY HOSPITAL GROUP INC 65 JAMES STREET EDISON NJ 08820 JFKHEALTHSYSTEM.ORG X X X X REHAB FACILITY 2 3 THE COMMUNITY HOSPITAL GROUP INC PARK RANDOLPH ROADS PLAINFIELD NJ 07061 JFKHEALTHSYSTEM.ORG X X Plainfield SED and Imaging 1 4 THE COMMUNITY HOSPITAL GROUP INC 60 James Street Edison NJ 08820 JFKHEALTHSYSTEM.ORG X Image Center/MRI 1 5 THE COMMUNITY HOSPITAL GROUP INC 98 JAMES STREET EDISON NJ 08820 JFKHEALTHSYSTEM.ORG X SURGERY CENTER 1 6 THE COMMUNITY HOSPITAL GROUP INC 60 JAMES STREET EDISON NJ 08820 JFKHEALTHSYSTEM.ORG X IMAGE/WOMEN CENTER 1 7 THE COMMUNITY HOSPITAL GROUP INC 4 Ethel Road Suite 406A Edison NJ 08817 JFKHEALTHSYSTEM.ORG X DIAGNOSTIC CARDIOLOGY CENTER 2 8 THE COMMUNITY HOSPITAL GROUP INC 65 JAMES STREET EDISON NJ 08820 JFKHEALTHSYSTEM.ORG X FAMILY MEDICINE 1 9 THE COMMUNITY HOSPITAL GROUP INC 2048 OAKTREE ROAD EDISON NJ 08818 JFKHEALTHSYSTEM.ORG X COGNITIVE REHAB 2 10 THE COMMUNITY HOSPITAL GROUP INC 2050 OAKTREE ROAD EDISON NJ 08818 JFKHEALTHSYSTEM.ORG X PEDIATRIC REHAB 2 11 THE COMMUNITY HOSPITAL GROUP INC 65 JAMES STREET EDISON NJ 08820 JFKHEALTHSYSTEM.ORG X BEHAV/OCCUPATIONAL HEALTH 1 12 THE COMMUNITY HOSPITAL GROUP INC 308 TALMADGE ROAD EDISON NJ 08817 JFKHEALTHSYSTEM.ORG X P&O LAB 2 13 THE COMMUNITY HOSPITAL GROUP INC 1314 Park Ave Suite 9 Plainfield NJ 07060 JFKHEALTHSYSTEM.ORG X Diagnostic Cardiology CENTER 2 14 THE COMMUNITY HOSPITAL GROUP INC 300 OVERLOOK DRIVE MONROE TOWNSHIP NJ 08831 JFKHEALTHSYSTEM.ORG X OUTPATIENT REHAB FACILITY 2 15 THE COMMUNITY HOSPITAL GROUP INC 481 MEMORIAL PARKWAY METUCHEN NJ 08840 JFKHEALTHSYSTEM.ORG X OUTPATIENT REHAB FACILITY 2 16 THE COMMUNITY HOSPITAL GROUP INC 561 Middlesex Ave Metuchen NJ 08840 JFKHEALTHSYSTEM.ORG X Cardiac Lab 2 17 THE COMMUNITY HOSPITAL GROUP INC 2050 OAKTREE ROAD EDISON NJ 08818 JFKHEALTHSYSTEM.ORG X CHILDCARE 2 18 THE COMMUNITY HOSPITAL GROUP INC 225 May Street Suite F Edison NJ 08837 JFKHEALTHSYSTEMS.ORG X Diagnostic Cardiology CENTER 2 19 THE COMMUNITY HOSPITAL GROUP INC 3 PROGRESS STREET EDISON NJ 08817 JFKHEALTHSYSTEM.ORG X ADULT DAY CARE 2 20 THE COMMUNITY HOSPITAL GROUP INC 98 James Street Edison NJ 08820 JFKHEALTHSYSTEMS.ORG X Breast Center 2 THE COMMUNITY HOSPITAL GROUP INC 1 false false true X X X X X X X X X 13 true false false true X JFKMC.ORG X true 13 true JFKMC.ORG false false true X 300. 500. X X true true X X true X X X true false true X false false THE COMMUNITY HOSPITAL GROUP INC 2 false false true X X X X X X X X X 13 true false false true X JFKMC.ORG X true 13 true jfkmc.org false false true X 300. 500. X X true true X X true X X X true false false X X false false PART I, LN 7 COL(F) The bad debt expense included on form 990, Part IX, Line 25, column (A), but subtracted for purposes of calculating the percentage in this column is $17,853,233 Part I, Line 7 WORKSHEET 2 WAS USED FOR THE COST TO CHARGE RATIO. PART 1, LINE 3C JFK MEDICAL CENTER USES THE INCOME/ASSET CRITERIA AND SLIDING SCALE PROVIDED BY THE STATE OF NEW JERSEY WHEN SCREENING PATIENTS FOR FINANCIAL ASSISTANCE. ADDITIONALLY, JFK MEDICAL CENTER HAS A COMPASSIONATE CARE POLICY TO APPLY DISCOUNTS (WHEN APPLICABLE) IF A PATIENT DOES NOT QUALIFY OR ONLY QUALIFIES FOR PARTIAL CHARITY CARE. PART 1, LINE 7G Subsidized health services represent clinical patient care services that are provided, despite operating expenses in excess of revenue, because they are needed in the community. During 2014, the organization provided family practice, dental, adult day care, peds rehabilitation and cognitive rehabilitation services programs. The net community benefit expenses represents the total expenses offset by any patient and grant revenue. PART III, LINE 4 Accounts receivable, patients are reported at net realizable value. Accounts are written off when they are determined to be uncollectible based upon management's assessment of individual accounts. The allowance for doubtful collections is estimated based upon a periodic review of the accounts receivable aging, payor classifications and application of historical write-off percentages. The costing methodology used is the ratio of the cost to charges as described in Worksheet #2 instructions. PART III, LINE 8 Medicare costs were derived from the 2012 Medicare cost report. The organization's position is that Medicare underpayments and bad debt are community benefits and associated costs should be includable on Form 990, Schedule H, Part I as outlined more fully below. The organization believes that these services and related costs promote health of the community as a whole and are rendered in conjunction with the organization's charitable tax-exempt purpose and mission in providing medically necessary healthcare services to all individuals in a non-discriminatory manner without regard to race, color, creed, sex, national origin, religion or ability to pay and consistent with the Community Benefit Standard promulgated by the IRS. The Community Benefit Standard is the current standard for a hospital for recognition as a tax-exempt and charitable organization under the Internal Revenue Code (IRC) 501(c)(3). The organization is recognized as a tax-exempt and charitable organization under the Internal Revenue Code (IRC) 501(c)(3). Although there is no definition in the tax code for the term "charitable", a regulation promulgated by the Department of the Treasury provides some guidance and states that the term charitable is used in section 501(c)(3) in its generally accepted legal sense, and provides examples of charitable purposes, including the relief of the poor or underprivileged, the promotion of social welfare, and the advancement of education and science. Note, it does not explicitly address the activities of hospitals in the absence of explicit statutory or regulatory requirements applying the term "charitable" to hospitals, it has been left to the IRS to determine the criteria hospitals must meet to qualify as an IRC 501(c)(3) charitable organization. The original standard was known as the Charity Care Standard. This standard was replaced by the IRS with the Community Benefit Standard which is the current Charity Care Standard. In 1956, the IRS issued revenue ruling 56-185, which addressed the requirements hospitals needed to meet in order to qualify for IRC 501(c)(3) status. One of these requirements is known as the Charity Care Standard. Under the standard, a hospital had to provide, to the extent of its financial ability, free or reduced-cost care to patients unable to pay for it. A hospital that expected full payment did not, according to the ruling, provide charity care. The ruling emphasized that a low level of charity care did not necessarily mean that a hospital had failed to meet the requirement since that level could reflect its financial ability to provide such care. The ruling also noted that a publically supported community hospital would normally qualify as a charitable organization because it serves the entire community, and a low level of charity care would not affect a hospitals exempt status if it was due to the surrounding community lack of charitable demands. In 1969, the IRS issued revenue ruling 69-545 which removed from ruling 56-185 the requirements relating to caring for patients without charge or at rates below costs. Under the standard developed in ruling 69-545, which is know as the "Community Benefit Standard", hospitals are judged on whether they promote health of a broad class of individuals in the community. The ruling involved a hospital that only admitted individuals who could pay for the services (by themselves, private insurance, or public programs such as Medicare), but operated a full-time Emergency Room that was open to everyone. The IRS ruled that the hospital qualified as a charitable organization because it promoted the health of people in its community. The IRS reasoned that because the promotion of health was a charitable purpose according to the general law of charity, it fell within the "generally accepted legal sense" of the term "charitable", as required by Treasury Regulation 1.501 (c)(3)-1(d)(2). The IRS ruling stated that the promotion of health, like the relief of poverty and the advancement of education and religion, is one of the purposes in the general law of charity that is deemed beneficial to the community as a whole, even though the class of beneficiaries eligible to receive a direct benefit from its activities does not include all members of the community, such as indigent members of the community, provided that the class is not so small that its relief is not of benefit to the community. The IRS concluded that the hospital was promoting the health of a class of persons that is broad enough to benefit the community because its Emergency Room was open to all and it provided care to everyone who could pay, whether directly or through third-party reimbursement. Other characteristics of the hospital that the IRS highlighted included the following: o Its surplus funds were used to improve patient care, expand hospital facilities, and advance medical training, education and research. o It was controlled by a Board of Trustees that consisted of independent civic leaders. o Hospital medical staff privileges were available to all qualified physicians. The organization believes that Medicare underpayments and bad debt are community benefits and associated costs should be includable on Form 990, Schedule H, Part I. The American Hospital Association's (AHA) position is that Medicare underpayments and bad debt are community benefits and associated costs should be includable on Form 990, Schedule H, Part I. This organization agrees with the AHA position as outlined in the AHA letter to the IRS dated August 21, 2007. With respect to the first published draft of the new Form 990 and Schedule H, the AHA felt that the IRS should incorporate the full value of the community benefit that hospitals provide by counting Medicare underpayments as quantifiable community benefit for the following reasons; o Providing care for the elderly and serving Medicare patients is an essential part of the Community Benefit Standard. o Medicare, like Medicaid, does not pay the full cost of care. Medicare reimburses the hospital only 89 cents for every dollar they spend to take care of Medicare patients. o Many Medicare beneficiaries, like their Medicaid counterparts, are poor. More than 46 percent of Medicare spending is for beneficiaries whose income is below 200 percent Federal poverty level. Many of those Medicare beneficiaries are also eligible for Medicaid, so called dual eligibles. There is every compelling public policy reason to treat Medicare and Medicaid underpayments similarly for the purposes of a hospital's community benefit and include the costs on Form 990, Schedule H, Part I. Medicare underpayment must be shouldered by the hospital in order to continue treating the community's elderly and poor. These underpayments represent a real cost of serving the community and should count as a quantifiable community benefit. Both the AHA and this organization also feel that patient bad debt is a community benefit and thus includable on Form 990, Schedule H, Part I. Like Medicare underpayment, there also are compelling reasons that patient bad debt should be counted as a quantifiable community benefit. A significant majority of bad debt is attributable to low-income patients, who, for many reasons, decline to complete the forms required to establish eligibility for the hospital's Charity Care or Financial Assistance programs. A 2006 Congressional Budget Office Report, Nonprofit Hospitals and the Provision of Community Benefits, cited two studies indicating that "the great majority of bad debt was attributable to patients with incomes below 200 percent of the Federal Poverty Line". The report also noted that a substantial portion of bad debt is pending Charity Care. Unlike bad debt in other industries, hospital bad debt is complicated by the fact that hospitals follow their mission to the community and treat every patient that comes through their Emergency department, regardless of their ability to pay. Patients who have outstanding bills are not turned away, unlike other industries. Bad debt is further complicated by auditing industry standards on reporting Charity Care, many patients cannot or do not provide the necessary extensive documentation required to be deemed Charity Care by the auditors. As a result, roughly 40% of bad debt is pending Charity Care. PART III, LINE 9B JFK Medical Center recognizes the financial difficulty imposed on the self-pay patient who is least able to pay for healthcare services when billed at the Hospital's standard charges. Credit adjustments to the self-pay balance will be permitted for the purpose of billing and collecting from the self-pay patient. This policy does not affect any billings for services rendered by hospital based physicians groups, professional practice physicians, or parties providing other medical services to the patient not billed by the Hospital. This policy excludes billing for Obstetrics, Gynecology (selected), Newborn, and Cosmetic procedures (covered under separate policy). This policy does not cover amounts owed relating to copays, deductibles, and coinsurance. The cost and subsequent self-pay billing amount will be determined based upon a review of the most current Hospital Specific Medicare Cost Report and managed care commercial rate. All patients that present to the Hospital for medically necessary services who are identified as self-pay patients will be advised when appropriate, by the hospital registrar to contact the New Jersey Hospital Care Payment Assistance Program representative or a Patient Accounting department representative. The Hospital has a formal self-pay billing and collection practice in place to assist the patient with the payment of their account. A. All patients are to be made aware of the New Jersey Hospital Care Payment Assistance program and be provided with the appropriate notice of the availability of the program as required by the program's regulatory guidelines. B. Patients who are determined to be eligible for the New Jersey Hospital Care Payment Assistance Program will have their charges for services reduced using the program calculation and methodology. C. Patients found ineligible for the New Jersey Hospital Care Payment Assistance Program are advised of the uninsured eligibility criteria and are encouraged to apply. D. The billing practice shall be explained when appropriate to the patient to ensure that proper communication occurs regarding this policy. E. A determination will be made at the time of service or as soon as possible thereafter to access and identify any and all other 3rd party benefits available to the patient. This will ensure that all 3rd party payers are billed appropriately, prior to a self-pay adjustment being made on an account. F. The adjustment will be manually made through the hospital billing system and appear as a credit adjustment to the patient balance. G. If the patient expresses an inability to pay the account balance in full, a payment arrangement may be authorized by the Hospital at its discretion. Payment arrangements will be based upon the Hospital's credit and collection policy. PART VI, NO. 2 This organization reviewed key factors that by population (primary and secondary service areas) that included a representative cross-section of demographics by ethnicity and age. This was accomplished a number of ways. We performed extensive focus groups attended by our primary and secondary service area patient base. We asked questions about health needs, inpatient and outpatient experiences and needs, clinic needs, clinical service line needs and patient satisfaction. These focus groups were done at various times in order to accomplish our goal of having the representative base. We performed an independent telephone survey asking 1,000 residents similar questions regarding health care needs. We also worked with our local community based organizations, both faith based and non-faith based, to provide and identify health needs. Additionally, we were members of a Community Action Group in the Plainfield community to address the health needs of this primary service area. PART VI, NO. 3 FINANCIAL ASSISTANCE SIGNS ARE POSTED THROUGHOUT THE FACILITY, INCLUDING ADMITTING, Emergency room, Satellite emergency department, IMAGING CENTER AND OTHER PATIENT REGISTRATION AREAS. aLL ELIGIBLE PATIENTS ARE SCREENED FOR FINANCIAL ASSISTANCE ACCORDING TO THE FEDERAL POVERTY GUIDELINES AND REFERRED TO THE APPROPRIATE AGENCIES OR PROGRAMS. aLL PATIENTS THAT CONTACT THE HOSPITAL FOR PRICING ARE INFORMED OF THE CHARITY AND COMPASSIONATE CARE POLICIES OF THE MEDICAL CENTER. PART VI, NO. 4 According to the US CENSUS WEBSITE 2014 QUICK FACTS, the population of Middlesex County (where JFK is located) reached 836,297, an increase of 11% since 2012. Almost half the total population is comprised of minorities and 8.5% of families live in poverty. As a result of the closure of nearby Muhlenberg Regional Medical Center in August 2008, JFK'S primary service area has expanded as it has become the nearest full service hospital for residents of southwestern Union County, including the city of Plainfield, where over 76.5% of the 50,588 residents are minorities, more than 21.9% of families live in poverty and portions of the city are considered an Urban Enterprise Zone (an area where blighted neighborhoods receive encouragement through tax relief to businesses and entrepreneurs). In 2013, Plainfield'S median household income was $54,158, 24% lower than the state'S $71,637. In terms of ethnicity, Middlesex County has the highest percentage of Asian residents of all New Jersey counties (23.5%). African Americans account for 11% of the population, while Hispanics make up 19.5%. Over 8.5% of families live below the federal poverty level ($23,550 per year for a family of four). The County'S median income of $79,596 in 2014 (the most recent data available) was higher than the state, nevertheless, Middlesex County has pockets of working poor and unemployed persons who rely on JFK for care. According to the Middlesex County FreeholderS' website, "close to one third of the population still earns less than a living wage." Unemployment IN MIDDLEsEX COUNTY rose from 5% in 2008 to 5.1% in 2014. PART VI, NO. 5 Community building activities undertaken by this organization are focused on improving both the well-being of our PRIMARY SERVICE AREA and SECONDARY SERVICE AREA and improving access to health care. We accomplish this through partnerships with local organizations like the YMCA, FEDERALLY QUALIFIED HEALTH CENTER, Religious and Cultural organizations and individuals who reside in the community. We participate in conferences, lectures, seminars, health fairs and sponsorships. We provide materials, professional and medical personnel, classrooms, social halls for the community benefit. PART VI, NO. 6 JFK Medical Center performs community outreach from health fairs and seminars, to speeches and tours, each affiliate goes into the community to reinforce and educate regarding access to health care and programs available. PART VI, NO. 7 NOT APPLICABLE PART V, SECTION A ALL PROGRAMS LISTED IN THIS SECTION OPERATE UNDER THE COMMUNITY HOSPITAL GROUP LICENSE. PART V, SECTION B, LINE 5 APPROXIMATELY 100 INDIVIDUALS AND ORGANIZATIONS WERE CONTACTED IN THE COMMUNITY SERVED SOLICITING FEEDBACK ON HEALTH STATUS AND NEEDS IN THE COMMUNITY IN ORDER TO INCORPORATE INTO THE COMMUNITY HEALTH NEEDS ASSESSMENT PROCESS. INTERVIEWS WERE CONDUCTED WITH MUNICIPAL HEALTH OFFICERS/PUBLIC HEALTH DEPARTMENT EMPLOYEES IN MIDDLESEX AND UNION COUNTIES, A COMMUNITY PHYSICIAN, A SENIOR ADMINISTRATOR AT A LARGE PRIMARY CARE PRACTICE, EMPLOYEES OF ADVOCACY AND/OR COMMUNITY SERVICE ORGANIZATIONS AND COMMUNITY LEADERS PART V, SECTION B, LINE 11 SIGNIFICANT HEALTH NEEDS WERE PRIORITIZED AND CATEGORIZED BASED ON JFK MEDICAL CENTER'S CORE SERVICES AND ABILITY TO SOLVE FOR THESE ISSUES: JFK MEDICAL CENTER'S CORE SERVICES ARE THE NEEDS RELATED TO PROVISION OF SERVICES OFFERED BY JFK MEDICAL CENTER TODAY AND THE NEEDS RELATED TO AREAS OF EXPERTISE OF JFK MEDICAL CENTER AND ITS CLINICAL STAFF. THESE NEEDS INCLUDE EMERGENCY CARE SERVICES, WEIGHT CONTROL PROGRAMS, PHYSICAL ACTIVITY PROGRAMS, MAMMOGRAPHY SCREENING, DIABETIC SCREENING AND LOW BIRTHWEIGHT. SPECIALIZED COMMUNITY ASSETS ARE NEEDS RELATED TO THE PROVISION OF HEALTH SERVICES THAT JFK MEDICAL CENTER DOES NOT OFFER TODAY OR WHERE OTHER ORGANIZATIONS ARE BETTER POSITIONED AND POSSESS THE SPECIALIZED EXPERTISE TO ADDRESS. THESE INCLUDE MENTAL HEALTH SERVICES, SUBSTANCE ABUSE SERVICES, REPRODUCTIVE SERVICES FOR YOUTH, EXCESSIVE DRINKING AND SEXUALLY TRANSMITTED INFECTIONS ENVIRONMENTAL ISSUES ARE NEEDS THAT REQUIRE ACTIONS THAT ARE NOT DIRECTLY RELATED TO THE MISSION OF JFK MEDICAL CENTER AND/OR NEEDS WHERE JFK MEDICAL CENTER HAS LIMITED ABILITY TO INFLUENCE OR DIRECT REQUIRED ACTIONS TO ADDRESS OR WHERE RESPONSIBILITY TO ADDRESS LIES WITH SOME OTHER EXTERNAL ENTITY OR ORGANIZATION THAT DOES NOT TYPICALLY PROVIDE HEALTH SERVICES AND ON NEEDS THAT REQUIRE INDIVIDUALS TO MODIFY BEHAVIORS AND PERSONAL HABITS OUTSIDE OF ANY INSTITUTIONAL SUPPORT OR ANY OTHER ACTIONS BY JFK MEDICAL CENTER. THESE NEEDS INCLUDE SERVICES FOR LOW INCOME, VIOLENT CRIME RATE, INADEQUATE SOCIAL SUPPORT, FAST FOOD RESTAURANTS, UNEMPLOYMENT RATE, DAILY FINE PARTICULATE MATTER, CANCER INCIDENCE, CHILDREN OF SINGLE PARENT HOMES AND POPULATION IN POOR/FAIR HEALTH. Plainfield Health Connections Plainfield Health Connections (PHC) is a JFK Medical Center initiative serving the Plainfield community. The programs mission is to improve healthcare of the un- and underinsured residents of the community and reduce healthcare costs through innovative community healthcare with a goal of reducing avoidable utilization of high-cost hospital and Emergency Department services. The funding for the programs first year was supported in part by a grant. The programs purpose is to improve patient's health by focusing on community development, health literacy education and coordination of existing health and social service programs to address the needs of the sickest members of the community. PHC staff feature Advance Practice Nurses with a community nursing background and outreach workers to guide patients to appropriate community-base healthcare and social service resources available. Some of the resources available include Federally Qualified Health Centers and other primary care providers, pharmacies, housing and transportation resources and religious and civic organizations. Health literacy education is provided along with individualized and group visits to improve patients' understanding of their particular chronic condition and how to manage the condition. PHC works with community based resources noted above to coordinate care and develop individualized care plans for each patient. PHC seeks to identify barriers to care that impede each patient's wellness, and develop a care plan that will remove those barriers. Examples of these barriers include: cost, transportation, language and cultural barriers, lack of awareness of available resources, lack of knowledge of their chronic condition and how to manage the condition and lack of trust in the traditional healthcare system. During 2014, PHC provided services to approximately 45 patients with a cost of $92,850. X X X X X true true true false false true false true false AMIE THORNTON VP OPERATIONS 319398 0 46061 0 0 0 37617 0 3712 0 406788 0 0 0 WILLIAM OSER SVP MEDICAL AFFAIR 446279 0 87863 0 2720 0 87393 0 20573 0 644828 0 0 0 RICHARD C SMITH SENIOR VP & CFO 468910 0 65228 0 21359 0 84362 0 19864 0 659723 0 0 0 ASIF BASHIR HIGHEST COMPENSATED 640124 0 20200 0 26386 0 5200 0 17125 0 709035 0 0 0 STEPHEN BLOOMFIELD MD HIGHEST COMPENSATED 639750 0 12500 0 21325 0 7238 0 14571 0 695384 0 0 0 JAWAD F KIRMANI HIGHEST COMPENSATED 412445 0 29119 0 45625 0 5200 0 14571 0 506960 0 0 0 MOHAMMAD MOUSSAVI HIGHEST COMPENSATED 395562 0 14985 0 45711 0 5200 0 17095 0 478553 0 0 0 THOMAS STEINEKE MD HIGHEST COMPENSATED 642650 0 17050 0 22100 0 6241 0 18109 0 706150 0 0 0 RAYMOND F FREDERICKS CEO/PRESIDENT/EX-OFFICIO 786186 0 184438 0 12320 0 309831 0 20836 0 1313611 0 0 0 SCOTT GEBHARD COO/EX-OFFICIO 460652 0 75228 0 2720 0 84568 0 18290 0 641458 0 0 0 JOHN MCGEE FORMER OFFICER 0 0 0 0 387140 0 0 0 0 0 387140 0 0 0 SHIRLEY HIGGINS BOWERS SVP HUMAN RESOURCES 279767 0 44877 0 30766 0 55714 0 17819 0 428943 0 0 0 INDRANIL GANGULY CIO 299347 0 10000 0 0 0 30000 0 16681 0 356028 0 0 0 SARA JEAN CUCCURULLO MED DIRECTOR EXEC. 389512 0 0 0 86 0 51658 0 14571 0 455827 0 0 0 GUDRUN MOLL CNO 255684 0 10000 0 13120 0 0 0 11836 0 290640 0 0 0 SCHEDULE J, PART II OTHER REPORTABLE COMPENSATION CONSISTS OF 457F PLAN EARNED IN 2013, BUT PAID IN 2014, LONG TERM DISABILITY, AUTO ALLOWANCE AND CALL STIPENDS, TAXABLE MOVING, AND TIME BANK PAYOUT. THE REPORTABLE AMOUNT FOR 457F PLAN IS $28,900 FOR SHIRLEY HIGGINS BOWERS. THE REPORTABLE AMOUNTS FOR LONG TERM DISABILITY CONSISTS OF $2,720 FOR WILLIAM OSER, $2,720 FOR RICHARD C. SMITH, $86 FOR ASIF BASHIR, $86 FOR MOHAMMAD MOUSSAVI, $2,720 FOR RAYMOND FREDERICKS, $2,720 FOR SCOTT GEBHARD, $1,866 FOR SHIRLEY HIGGINS BOWERS, $86 FOR SARA JEAN CUCCURULLO. THE REPORTABLE AMOUNT FOR AUTO ALLOWANCE IS $9,600 FOR RAYMOND FREDERICKS. THE REPORTABLE AMOUNTS FOR CALL STIPENDS ARE $26,300 FOR ASIF BASHIR, $21,325 FOR STEPHEN BLOOMFIELD, $45,625 FOR JAWAD F KIRMANI, $45,625 MOHAMMAD MOUSSAVI, $22,100 FOR THOMAS STEINEKE. THE REPORTABLE AMOUNT FOR TAXABLE MOVING IS $4,546 FOR GUDRUN MOLL. THE REPORTABLE AMOUNT FOR TIME BANK PAYOUT IS $8,574 FOR GUDRUN MOLL SCHEDULE J, PART I, QUESTION 4B THIS QUESTION WAS ANSWERED YES DUE TO THE TWO BENEFIT PLANS THAT SEVERAL KEY EXECUTIVES ARE PARTICIPANTS IN: A) A 457 (F) plan that was established but not funded in 2010, service credits for 2012, 2013 and 2014 were funded in 2013, 2014 and 2015 respectively. B) A KESOP PLAN THAT WAS FROZEN TO NEW CONTRIBUTIONS SUBSEQUENT TO 2002. SCHEDULE J, PART I, LINE 4A JOHN MCGEE RECEIVED SEVERANCE PAYMENTS IN 2014. THIS AMOUNT IS INCLUDED ON SCHEDULE J, PART II, COLUMN B(III), OTHER REPORTABLE COMPENSATION. HE RECEIVED $387,140 IN SEVERANCE PAYMENTS. HE LEFT THE ORGANIZATION DURING 2011. SCHEDULE J, PART I, QUESTION 4C EQUITY-BASED COMPENSATION RECEIVED FROM THE ORGANIZATION RICHARD C. SMITH RECEIVED KESOP DISTRIBUTIONS IN 2014 IN THE AMOUNT OF $18,639. IT IS REPORTED ON SCHEDULE J, PART II, COLUMN B(III), OTHER REPORTABLE COMPENSATION. SCHEDULE J, PART I, QUESTIONS 6A AND 7. The purpose of the Incentive Plan is to provide financial incentives for the achievement of performance objectives that are most important to JFKs mission and financial, quality and operational success. The Executive Compensation Committee makes a recommendation to the Board of Trustees the overall funding as well as the performance measures and the goals in each of these areas. The performance measures, goals and weights are intended to reflect objectives for the current fiscal year in areas of financial, patient care and quality outcomes and patient satisfaction. A NJ HEALTHCARE FACILTIES FINANCING AUTHORITY 221987084 64580AAT8 2009-06-01 119623712 SEE SCHEDULE O false false false A 0 0 119745700 0 0 0 1946274 0 0 21892468 0 0 2013 true false true true A false true false false 0.00000 0.00000 0.00000 false false false true A false false false true false false 0 false 0 false true A true SCHEDULE K, PART IV, QUESTION 2C THE 2009 ISSUE WAS A MULTIPURPOSE ISSUE. SEE SCHEDULE O. NO REBATE WAS DUE FOR EITHER THE REFUNDING OF THE NEW MONEY BONDS. THE REBATE REPORT WAS CALCULATED AS OF MAY 31, 2014. FORM 990, PART VI, SECTION A, LINE 3 The organization uses outside management services for the following departments: Pharmacy, BIOMED SERVICES, Hemodialysis, Housekeeping management (Includes housekeeping, linen & patient transport), MRI SERVICES AND WOUND CARE. FORM 990, PART VI, SECTION A, LINE 6 The organization has JFK HEALTH SYSTEM, INC. AS ITS SOLE member. FORM 990, PART VI, SECTION A, LINE 7B CERTAIN decisions of the governing body of the organization are subject to approval by the member. FORM 990, PART VI, SECTION B, LINE 11 An Ad-hoc Committee, which includes the Chairman of the Audit and Compliance Committee and a selected designee of the Audit and Compliance Committee as well as designees from the Finance, Legal, Audit and Compliance departments, review the IRS 990 Tax Returns with EisnerAmper LLP, the tax accountant for JFK Health System, Inc. During this review, all comments and recommendations that are made are addressed by the Finance, Legal, and Audit and Compliance departments along with EisnerAmper. The final revised drafts are reviewed by the Ad-hoc Committee to ensure all comments and recommendations were addressed in the final drafts. The Audit and Compliance committee has given the Ad-hoc Committee the authority to approve the IRS 990 Tax Returns. Once the IRS 990 Tax Returns are approved by the Ad-hoc Committee, all Board members are sent an e-mail with instructions on how to access the respective IRS 990 Tax Returns for their review and comments for 4 days on a secure website provided by EisnerAmper LLP. At the end of the 4 day review period, and after any comments have been addressed, the IRS 990 Tax Returns are finalized and filed. Also, after the IRS 990 Tax Returns are filed, the returns are posted on the JFK Health System Board Portal. FORM 990, PART VI, SECTION B, LINE 12C On an annual basis, Conflict of Interest Disclosure Statements are distributed to all Board Members and employees that are department head and higher levels. All disclosures are reviewed by the Compliance Officer and the Chair of the JFK Audit and Compliance Committee. Any potential conflict of interest is brought to the said Committee for review and consideration and any appropriate action deemed necessary pursuant to the Conflict of Interest policy. FORM 990, PART VI, SECTION B, LINE 15 THE JFK BOARD OF DIRECTORS HAS DULY APPOINTED AN EXECUTIVE COMPENSATION COMMITTEE (THE "COMMITTEE") THAT IS RESPONSIBLE FOR THE REVIEW AND APPROVAL OF ALL COMPENSATION AND BENEFITS PROVIDED TO EXECUTIVE MANAGEMENT OF THE ORGANIZATION. THE COMMITTEE HAS ADOPTED A WRITTEN EXECUTIVE COMPENSATION PHILOSOPHY STATEMENT AND AN EXECUTIVE COMPENSATION COMMITTEE CHARTER. THE COMMITTEE FOLLOWS THE PROCEDURES DESCRIBED IN THE PHILOSOPHY STATEMENT AND THE CHARTER WHEN IT REVIEWS AND APPROVES THE COMPENSATION AND EMPLOYEE BENEFITS PROVIDED TO THE ORGANIZATION'S SENIOR MANAGEMENT, INCLUDING THE PRESIDENT AND CHIEF EXECUTIVE OFFICER AND THE CHIEF FINANCIAL OFFICER. THE COMMITTEE'S REVIEW ANALYZES EVERY ELEMENT OF COMPENSATION, INCLUDING CURRENT AND DEFERRED COMPENSATION, AND BENEFITS, INCLUDING QUALIFIED AND NON-QUALIFIED BENEFITS. THE COMMITTEE CONDUCTS ITS REVIEW AND APPROVAL PROCESS AT LEAST ANNUALLY, AND APPROVES COMPENSATION AND BENEFITS ONLY TO THE EXTENT THAT THE COMMITTEE HAS CONCLUDED THAT THE TOTAL COMPENSATION AND BENEFITS CONSTITUTE NO MORE THAN REASONABLE COMPENSATION. THE COMMITTEE CONSISTS ENTIRELY OF INDEPENDENT MEMBERS OF THE JFK HEALTH SYSTEM BOARD, THE COMMITTEE REVIEWS IN ADVANCE INDEPENDENT DATA SHOWING THE COMPENSATION PROVIDED BY NON-PROFIT ORGANIZATIONS FOR FUNCTIONALLY SIMILAR POSITIONS, AND THE COMMITTEE PREPARES A TIMELY AND THOROUGH WRITTEN RECORD OF ITS DELIBERATIONS AND CONCLUSIONS. ASSISTING THE COMMITTEE IS AN OUTSIDE COMPENSATION CONSULTANT ALONG WITH OUTSIDE LEGAL COUNSEL. AS A RESULT, THE COMMITTEE'S REVIEW PROCESS IS DESIGNED TO SATISFY THE PROCEDURAL CRITERIA NECESSARY TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE FEDERAL INCOME TAX LAW INTERMEDIATE SANCTIONS RULES. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S CONSOLIDATED FINANCIAL STATEMENTS ARE POSTED ON THE JFK HEALTH SYSTEM WEBSITE; ANY OTHER PUBLIC INFORMATION IS AVAILABLE UPON REQUEST. FORM 990, PART XI, LINE 9, CHANGES IN NET ASSETS PENSION/POST RETIREMENT LIABILITY ADJUSTMENT -6,406,653 TRANSFERS TO AFFILIATES -15,837,118 CHANGE IN BENEFICIAL INTEREST IN NET ASSETS OF JFK FOUNDATION 571,955 PROVISION SETTLEMENT CHARGE -5,542,473 TOTAL TO FORM 990, PART XI, LINE 9 -27,214,288 FORM 990, PART XII, QUESTION 2C THE PROCESS HAS NOT CHANGED SINCE LAST YEAR. JFK HEALTH SYSTEM HAS A COMMITTEE THAT ASSUMES RESPONSIBILTY FOR OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND SELECTION OF AN INDEPENDENT ACCOUNTANT. JFK MEDICAL CENTER BACKGROUND JFK MEDICAL CENTER ("JFK") IS A GENERAL MEDICAL AND SURGICAL HOSPITAL. JFK IS RECOGNIZED BY THE IRS AS AN INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION PURSUANT TO ITS CHARITABLE PURPOSES, JFK PROVIDES MEDICALLY NECESSARY HEALTH CARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY, MOREOVER, JFK OPERATES CONSISTENTLY WITH THE FOLLOWING CRITERIA OUTLINED IN IRS REVENUE RULING 69-545. 1) JFK PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF ABILITY TO PAY, INCLUDING CHARITY CARE, SELF-PAY, MEDICARE AND MEDICAID PATIENTS. 2) JFK OPERATES AN ACTIVE EMERGENCY ROOM FOR ALL PERSONS, WHICH IS OPEN 24 HOURS A DAY, 7 DAYS A WEEK, 365 DAYS PER YEAR. 3) JFK MAINTAINS AN OPEN MEDICAL STAFF WITH PRIVILEGES AVAILABLE TO ALL QUALIFIED PHYSICIANS. 4) CONTROL OF JFK RESTS WITH ITS BOARD OF TRUSTEES, WHICH IS COMPRISED OF INDEPENDENT CIVIC LEADERS AND OTHER PROMINENT MEMBERS OF THE COMMUNITY. 5) SURPLUS FUNDS ARE USED TO IMPROVE THE QUALITY OF PATIENT CARE, EXPAND AND RENOVATE FACILITIES AND ADVANCE MEDICAL CARE PROGRAMS AND ACTIVITIES. THE OPERATIONS OF JFK AS SHOWN THROUGH THE FACTORS OUTLINED ABOVE AND OTHER INFORMATION CONTAINED HEREIN, CLEARLY DEMONSTRATE THAT THE USE AND CONTROL OF JFK FOR THE BENEFIT OF THE PUBLIC AND THAT NO PART OF THE INCOME OR NET EARNINGS OF THE ORGANIZATION INURES TO THE BENEFIT OF ANY PRIVATE INDIVIDUAL NOR IS ANY PRIVATE INTEREST BEING SERVED OTHER THAN INCIDENTALLY. JFK MEDICAL CENTER HISTORY JFK BEGAN IN THE 1960'S IN RESPONSE TO THE INCREASING DEMAND FOR HEALTH CARE SERVICES CREATED BY RAPID POPULATION GROWTH IN EDISON TOWNSHIP AND ITS SURROUNDING COMMUNITIES. THE LATE EDISON MAYOR ANTHONY M. YELENCSICS, FOR WHOM THE ORIGINAL COMMUNITY HOSPITAL WAS NAMED, LED A GRASSROOTS EFFORT TO OPEN A HOSPITAL TO MEET THIS DEMAND. FOLLOWING A FUNDRAISING CAMPAIGN PIONEERED BY TRUSTEES, PHYSICIANS, AUXILIANS AND COMMUNITY RESIDENTS, THE ORIGINAL 205-BED HOSPITAL OPENED ITS DOORS AND ADMITTED ITS FIRST PATIENT IN 1967. THE 1970'S REPRESENTED A PERIOD OF SIGNIFICANT GROWTH FOR JFK. ONE OF THE MOST IMPORTANT HIGHLIGHTS IN ITS HISTORY WAS THE OPENING OF THE JFK JOHNSON REHABILITATION INSTITUTE ("JRI") IN 1974 FOLLOWING A MERGER WITH MIDDLESEX REHABILITATION HOSPITAL. SINCE THAT TIME, JRI HAS FORGED A REPUTATION FOR EXCELLENCE IN PATIENT CARE AND HAS BECOME A NATIONAL LEADER IN PHYSICAL REHABILITATION MEDICINE. JRI WAS ONE OF THE FIRST REHABILITATION CENTERS IN THE NATION TO RECOGNIZE THAT INDIVIDUALS WITH ACQUIRED TRAUMATIC BRAIN INJURY REQUIRE A SPECIALIZED TREATMENT ENVIRONMENT. WITH ITS UNPRECEDENTED, COMPREHENSIVE APPROACH TO CARE, JRI'S CENTER FOR HEAD INJURIES IS REGARDED AS PIONEERING IN HEAD TRAUMA EVALUATION AND TREATMENT. IN ADDITION, JRI'S PEDIATRIC REHABILITATION DEPARTMENT PROVIDES CHILDREN WITH THE ADAPTIVE AND COPING SKILLS THEY NEED TO ACHIEVE SUCCESS IN EVERYDAY LIFE THROUGH PHYSICAL AND OCCUPATIONAL THERAPY. JRI ALSO OFFERS INPATIENT AND DAY REHABILITATION, OUTPATIENT THERAPIES, AND PROSTHETICS AND ORTHOTICS. JFK ALSO OPENED ITS RADIATION THERAPY CENTER AND ITS FAMILY PRACTICE CENTER DURING THIS DECADE. JFK REACHED A SIGNIFICANT MILESTONE IN 1992 WHEN IT OPENED THE NEW JERSEY NEUROSCIENCE INSTITUTE ("INSTITUTE"), WHICH IS A NATIONALLY RECOGNIZED COMPREHENSIVE CENTER FOR THE DIAGNOSIS, TREATMENT, AND STUDY OF NEUROLOGICAL DISEASE. THE INSTITUTE CONTINUES TO ATTRACT TOP NEUROSCIENCE EXPERTS FROM ACROSS THE UNITED STATES. IT ALSO WORKS TO PROMOTE INVESTIGATIVE EFFORTS IN BASIC AND CLINICAL RESEARCH. OTHER SIGNIFICANT ADDITIONS THAT OCCURRED OVER THE PAST THREE DECADES INCLUDED JFK'S CANCER CENTER, WHICH FEATURES STATE-OF-THE-ART CANCER DIAGNOSIS AND TREATMENT CAPABILITIES, HOSPICE CARE AND PARTICIPATION IN NATIONWIDE CANCER RESEARCH NETWORKS; JFK'S OUTPATIENT MEDIPLEX SURGERY CENTER WHICH PROVIDES SAME-DAY PROCEDURES, INCLUDING LASER, ENDOSCOPIC AND ARTHROSCOPIC SURGERY, JFK'S IMAGING CENTER AND BREAST CENTER. BOTH OFFER A FULL RANGE OF DIAGNOSTIC EXAMINATIONS, INCLUDING CAT SCAN AND MRI SERVICES. JFK MEDICAL CENTER CURRENT INFORMATION JFK MEDICAL CENTER ("JFK") IS a 499-BED HOSPITAL CONSISTING OF THE 405-acute care BED ANTHONY M. YELENCSICS COMMUNITY HOSPITAL AND THE ADJACENT 94-BED JFK JOHNSON REHABILITATION INSTITUTE. JFK FEATURES A COMPLETE ARRAY OF SERVICES, INCLUDING GENERAL SURGERY, EMERGENCY MEDICINE, BEHAVIORAL HEALTH, ORTHOPEDICS, MATERNITY AND PEDIATRIC CARE PROGRAMS. SPECIAL SERVICES AT THE MEDICAL CENTER INCLUDE THE NEW JERSEY NEUROSCIENCE INSTITUTE, A DIAGNOSTIC, TREATMENT, TEACHING AND RESEARCH CENTER FOR THE STUDY OF COMPLEX NEUROLOGICAL DISORDERS; THE REGIONAL CANCER CENTER, OFFERING COMPREHENSIVE MEDICAL, SURGICAL AND RADIATION ONCOLOGY SERVICES; THE JFK DIAGNOSTIC IMAGING CENTER WHICH HOUSES TRADITIONAL AND OPEN AIR MRI CAPABILITIES, HIGH SPEED COMPUTER TOMOGRAPHY (CT), ADVANCED BONE DENSITY TECHNOLOGY, AND THE BREAST CENTER, PROVIDING COMPLETE MAMMOGRAPHY SERVICES INCLUDING FULL-FIELD DIGITAL AND THE R2 IMAGE CHECKER TECHNOLOGY. OTHER SERVICES INCLUDE THE JFK FITNESS CENTER, OCCUPATIONAL HEALTH PROGRAM AND FAMILY MEDICINE CENTER. THE FAMILY MEDICINE CENTER WAS ESTABLISHED IN 1976 AND HAS SERVED THE SURROUNDING COMMUNITIES TO PROVIDE PRIMARY CARE SERVICES TO INSURED AND UNINSURED PATIENTS IN THE SERVICE AREA. STAFFED BY FACULTY AND RESIDENT PHYSICIANS, IT PROVIDES SERVICES WHICH INCLUDE: GENERAL MEDICINE, OB/GYN CARE, PEDIATRIC AND MINOR SURGERY. IN ADDITION, HEALTH EDUCATION/PROMOTION, NUTRITIONAL COUNSELING AND EMOTIONAL SUPPORT PROGRAMS ARE OFFERED. IN 2014 JFK RECORDED 17,568 ADMISSIONS AND 2,392 BIRTHS, AND MORE THAN 80,000 EMERGENCY ROOM VISITS. JFK IS AN AFFILIATE OF JFK HEALTH SYSTEM, A NOT-FOR-PROFIT HEALTH SYSTEM SERVING THE RESIDENTS OF CENTRAL NEW JERSEY WITH STRONG TIES TO THE LOCAL COMMUNITY, ESTABLISHED REGIONAL REPUTATION, EXCEPTIONAL EMPLOYEES, A COMMITMENT TO PATIENT SATISFACTION AND QUALITY MEDICAL STAFF TO PROVIDE HIGH QUALITY, COST-EFFECTIVE CARE. SPECIAL SUPPORT SERVICES ARE ALSO AVAILABLE SUCH AS DIAGNOSTIC IMAGING, GERIATRIC CARE AND COMMUNITY HEALTH AND FITNESS PROGRAMS. THROUGH COMMUNITY OUTREACH, JFK OFFERS HEALTH AND WELLNESS PROGRAMS, SCREENINGS, LECTURES AND EDUCATIONAL SEMINARS TO MORE THAN 23,500 AREA RESIDENTS ANNUALLY. THE HAROLD B. AND DOROTHY A. SNYDER SCHOOLS OF NURSING, RADIOGRAPHY, NUCLEAR MEDICINE TECHNOLOGY, RADIATION THERAPY AND DIAGNOSTIC MEDICAL SONOGRAPHY ARE OPERATED BY AND FOR PURPOSES OF ACADEMIC ACCREDITATION, SPONSORED BY JFK. THE SCHOOLS CARRY ON A LONG TRADITION OF EDUCATING FUTURE HEALTH CARE PROFESSIONALS WITH MORE THAN 300 STUDENTS ENROLLED IN THE FIVE SCHOOLS ANNUALLY. THE SCHOOL OFFERS STUDENTS ACCESS TO JFK HEALTH SYSTEM'S STATE-OF-THE-ART EQUIPMENT AND EXPANSIVE CLINICAL FACILITIES. JFK MEDICAL CENTER VISION WE WILL BE RECOGNIZED FOR BEING RESPONSIVE AND SENSITIVE TO COMMUNITY NEEDS, EXTENDING BEYOND OUR TRADITIONAL BOUNDARIES, IN ORDER TO ACHIEVE HIGHER LEVELS OF COMMUNITY HEALTH AND ACCESS. WE WILL BE RECOGNIZED FOR A CULTURE DRIVEN BY TRUST, IN WHICH DEDICATED, CARING AND COMPASSIONATE INDIVIDUALS WORK TOGETHER WITH FAMILIES TO OVERCOME HEALTH CARE CHALLENGES. WE WILL BE RECOGNIZED FOR HIGH QUALITY SERVICES AND OUTSTANDING SAFETY PERFORMANCE BASED UPON NATIONAL STANDARDS. WE WILL BE RECOGNIZED AS AN EMPLOYER THAT EMPHASIZES PROFESSIONAL AND PERSONAL DEVELOPMENT IN ORDER TO MAXIMIZE THE POTENTIAL OF EVERY INDIVIDUAL. WE WILL BE RECOGNIZED FOR CLINICAL SUPERIORITY THROUGH THE EXPERTISE OF OUR MEDICAL STAFF AND THE CONTINUED APPLICATION OF CUTTING-EDGE TECHNOLOGIES. JFK MEDICAL CENTER DEMOGRAPHICS JFK MEDICAL CENTER IS LOCATED IN EDISON - AN URBAN/SUBURBAN AREA OF MIDDLESEX COUNTY. ONE OF THE FASTEST GROWING COUNTIES IN THE STATE, MIDDLESEX COUNTY IS THE THIRD LARGEST COUNTY IN NEW JERSEY WITH MORE THAN 836,000 RESIDENTS. EXTENSION DESCRIPTION ON WHY THE RETURN WAS NOT TIMELY FILED AWAITING INFORMATION FROM THIRD PARTIES NECESSARY TO FILE A COMPLETE AND ACCURATE RETURN. FORM 990, PART VII METHOD EMPLOYED IN THE DETERMINATION OF ESTIMATED HOURS PER WEEK. DURING THE ANNUAL BUDGET PROCESS, THE FINANCE DEPARTMENT PERFORMS AN ANALYSIS OF THE EXECUTIVE LEVEL EMPLOYEES' TIME ALLOCATION FROM TIME KEEPING RECORDS. THE APPROPRIATE ADJUSTMENTS ARE MADE TO THE TIME ALLOCATIONS AT THAT TIME. The officers and key employees of JFK Health System hours per week are allocated among many of the related organizations. SCHEDULE R, PART V, LINE 1O JFK HEALTH system maintains a master employee leasing agreement that provides for the leasing of personnel to and from various JFK HEALTH SYSTEM entities. SCHEDULE K, PART I New money -- $21,892,468.25 for various capital improvements to JFK Medical Center, including, but not limited to, expansion of inpatient bed capacity and unit renovations, emergency room expansion, operating room renovations and expansion, relocation of support departments, conversion of HVAC system and other necessary expansions, renovations and improvements, and the refinancing of various series of bonds issued on behalf of, and other indebtedness of, JFK Medical Center, Hartwyck at Oak Tree and Muhlenberg Regional Medical Center, as described below, all in connection with the termination of the provision of hospital acute care services at Muhlenberg Regional Medical Center and pursuant to the State's Hospital Asset Transformation Program. Current Refundings: 1995 Bonds $17,670,697 1998 Bonds $36,114,765 2003 Bonds $33,137,809 2005 Bonds $17,935,000 Line of credit $6,571,000 Capitalized Interest -- 1,761,145 Costs of issuance- -- 1,946,274 FORM 990, PART VI, SECTION A, LINE 7A While the member cannot elect or appoint one or more members of the governing body, all board appointments are subject to approval by the member. THE DIRECTORS, OTHER THAN EX-OFFICIO DIRECTORS, ARE ELECTED BY A VOTE OF THE BOARD AT THE ANNUAL MEETING OF THE CORPORATION. THE DIRECTOR MEMBERSHIP COMMITTEE SHALL NOMINATE A SLATE OF DIRECTORS TO SERVE AS OFFICERS TO REPLACE OR REELECT THOSE OFFICERS WHOSE TERMS ARE ENDING. FORM 990, PART VII DEFINITION OF EX-OFFICIO People who hold a position by virtue of their office FORM 990, PART VII, SECTION A LEONARD SENDELSKY IS NO LONGER A BOARD MEMBER AS OF DECEMBER 2014. FORM 990, PART VII FOR DR. RICHARD B. BULLOCK, THE COMPENSATION REPRESENTS SERVICES AS ACLS - MEDICAL DIRECTOR JFK POPULATION HEALTH COMPANY LLC 98 JAMES STREET EDISON NJ 08820 422866956 HOSPITAL NJ 1316930 JFKMC JFK HEALTH SYSTEM INC 98 JAMES STREET EDISON NJ 08820 222421432 HEALTHCARE NJ 501(C)(3) 11a N/A false MUHLENBERG REGIONAL MEDICAL CENTER INC 98 JAMES STREET EDISON NJ 08820 221487258 HEALTHCARE NJ 501(C)(3) 9 JFKHS false MUHLENBERG FOUNDATION INC 98 JAMES STREET EDISON NJ 08820 510212678 FUNDRAISING NJ 501(C)(3) 11a MRMC false JFK MEDICAL CENTER FOUNDATION INC 98 JAMES STREET EDISON NJ 08820 222315044 FUNDRAISING NJ 501(C)(3) 11a JFKHS false JFK HEALTH SYSTEM REALTY CORPORATION 98 JAMES STREET EDISON NJ 08820 521703518 INACTIVE NJ 501(C)(25) JFKHS false ROBERT WOOD JOHNSON JR INC LIFESTYLE 98 JAMES STREET EDISON NJ 08820 222421433 HEALTHCARE NJ 501(C)(3) 9 JFKHS false HARTWYCK WEST NURSING HOME INC 98 JAMES STREET EDISON NJ 08820 221802017 HEALTHCARE NJ 501(C)(3) 9 JFKHS false JFK ASSISTED LIVING INC 98 JAMES STREET EDISON NJ 08820 223715324 HEALTHCARE NJ 501(C)(3) 9 HARTWYCK WES false HARTWYCK AT OAK TREE INC 98 JAMES STREET EDISON NJ 08820 222666023 HEALTHCARE NJ 501(C)(3) 9 JFKHS false HARTWYCK AT JFK INC 98 JAMES STREET EDISON NJ 08820 204144804 HEALTHCARE NJ 501(C)(3) 11b JFKHS false JFK MEDICAL ASSOCIATES PA 98 JAMES STREET EDISON NJ 08820 462219798 PHYS PRACTICE NJ 501(C)(3) 9 JFKHS false MSO - SEE PART VII 98 JAMES STREET EDISON NJ 08820 INACTIVE NJ JFKHS related false false MEDIPLEX - SEE PART VII 98 JAMES STREET EDISON NJ 08820 RENTALS NJ JFK HEALTHSHARE excluded false false ATLANTIC INSURANCE EXCHANGE LTD 98 JAMES STREET EDISON NJ 08820 999999999 INSURANCE CAPTIVE BD JFKHS C CORP false CENTRAL JERSEY MEDICAL GROUP PA 98 JAMES STREET EDISON NJ 08820 223477610 INACTIVE NJ MRMC C CORP false JFK MEDICAL GROUP PC 98 JAMES STREET EDISON NJ 08820 223482637 MEDICAL SERVICES NJ JFKMC C CORP 1154 1.00000 true JFK HARTWYCK MGT & CONSULTING INC 98 JAMES STREET EDISON NJ 08820 223812130 INACTIVE NJ HARTWYCK WEST C CORP false JFK HEALTHSHARE INC 98 JAMES STREET EDISON NJ 08820 222528967 MANAGEMENT SVCS NJ JFKHS C CORP false MIDTOWN SHOPS INC 98 JAMES STREET EDISON NJ 08820 221536954 RETAIL COMPLEX NJ MRMC C CORP false PRIMARY CARE NETWORK 98 JAMES STREET EDISON NJ 08820 522069919 HEALTH ORG. NJ JFKMC C CORP -2478 208336 1.00000 true true false true false false false false false false false true false false false true true true false false HARTWYCK AT OAK TREE INC A 1027831 SEE PART VII JOHN F KENNEDY MEDICAL CENTER FOUNDATION INC C 1758803 SEE PART VII MUHLENBERG REGIONAL MEDICAL CENTER INC K 888315 SEE PART VII JFK HEALTH SYSTEM INC P 7635000 SEE PART VII JFK HEALTHSHARE INC P 10000 SEE PART VII HARTWYCK AT OAK TREE INC Q 4655869 SEE PART VII HARTWYCK WEST NURSING HOME INC Q 650000 SEE PART VII JFK HEALTH SYSTEM INC Q 2075648 SEE PART VII ROBERT WOOD JOHNSON JR LIFESTYLE INSTITUTE Q 385384 SEE PART VII JOHN F KENNEDY MEDICAL CENTER FOUNDATION INC Q 1486000 SEE PART VII JFK ASSISTED LIVING INC Q 950000 SEE PART VII MUHLENBERG REGIONAL MEDICAL CENTER INC A 240000 SEE PART VII ROBERT WOOD JOHNSON JR LIFESTYLE INSTITUTE C 244101 SEE PART VII MUHLENBERG FOUNDATION INC C 33386 SEE PART VII HARTWYCK AT OAK TREE INC K 372000 SEE PART VII MUHLENBERG REGIONAL MEDICAL CENTER INC P 1001685 SEE PART VII HARTWYCK AT OAK TREE K 27216 SEE PART VII SCHEDULE R, PART IV DR. WILLIAM OSER IS THE LEGAL OWNER OF JFK MEDICAL GROUP. JFK HEALTH SYSTEMS IS THE BENEFICIAL OWNER. SCHEDULE R, PART III LINE 1 INFORMATION: MANAGEMENT SERVICES ORGANIZATION OF CENTRAL JERSEY, LLC 98 JAMES STREET EDISON, NJ 08820 EIN: 22-3489091 LINE 2 INFORMATION: MEDIPLEX SURGICAL CENTER ASSOCIATION, LP 98 JAMES STREET EDISON, NJ 08820 EIN: 22-2846980 SCHEDULE R, PART V, LINE 2 ALL TRANSACTIONS WITH RELATED ORGANIZATIONS ARE VALUED AT ACTUAL AMOUNTS.