2014-11-17T09:31:06-06:00 2013-12-31 420714325 MCGLADREY LLP ONE SOUTH WAKER DRIVE SUITE 800 CHICAGO IL 60606 990 2013-01-01 521682858 FORT WASHINGTON MEDICAL CENTER INC FORT 3012927000 11711 LIVINGSTON ROAD FORT WASHINGTON MD 20744 JOSEPH B TUCKER SR VP/CFO 3012927000 2014-11-13 1 WAYNE L HARDER P00294296 3126343400 2013 2015-11-30 17:44:51Z VERNA MEACHAM 174 WATERFRONT STREET SUITE 225 NATIONAL HARBOR MD 20745 41358813 0 X WWW.FORTWASHINGTONMC.ORG X 1989 MD TO ENSURE HIGH QUALITY, COMPASSIONATE AND RESPONSIVE HEALTH CARE SERVICES DEDICATED TO ADVANCING THE HEALTH OF OUR COMMUNITY CUSTOMERS. 14 12 482 20 0 0 89747 212229 40240581 39638675 808 748 1653100 1349335 41984236 41200987 0 0 0 0 22956297 21573554 0 0 198303 17925940 19051391 40882237 40624945 1101999 576042 21750077 20996593 18729403 17399877 3020674 3596716 TO ENSURE HIGH QUALITY, COMPASSIONATE AND RESPONSIVE HEALTH CARE SERVICES DEDICATED TO ADVANCING THE HEALTH OF OUR COMMUNITY CUSTOMERS. 0 0 30603251 40654586 IN 2013, FORT WASHINGTON MEDICAL CENTER INC, AN ACUTE CARE HOSPITAL PROVIDED MEDICAL AND SURGICAL SERVICES TO THE COMMUNITY. IN ADDITION, THEY PROVIDED BENEFITS TO THE COMMUNITY THAT INCLUDE CHARITY CARE, TEACHNG PERCEPTOR OPPORTUNITIES, HEALTH SCREENINGS, COMMUNITY HEALTH EDUCATION, COMMUNITY SPONSORSHIP OPPORTUNITIES, AND COMMUNITY ENGAGEMENT ACTIVITIES.SEE SCHEDULE H FOR ADDITIONAL INFORMATION. 30603251 1 1 0 1 0 0 0 0 0 0 1 0 0 1 1 1 1 0 0 0 0 0 0 0 1 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 46 0 1 482 1 0 0 0 0 0 1 1 0 0 0 0 X 14 12 0 1 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 MD X THERESA PITTMAN 3016861523 174 WATERFRONT STREET SUITE 225 NATIONAL HARBOR MD 20745 BEVERLY ANDERSON PH D DIRECTOR 1.00 0.70 X 0 0 0 SAMIR AZER MD DIRECTOR 1.00 0.70 X 0 0 0 VIMLA BHOOSHAN MD DIRECTOR/PHYSICIAN 41.00 0.70 X 516956 0 0 CHARLES E DAY SR DIRECTOR 1.00 0.70 X 0 0 0 ELIAS DEBBAS MD DIRECTOR 1.00 0.70 X 0 0 0 MONICA HOLMAN EVANS ESQ DIRECTOR (THRU JUNE 2013) 1.00 0.70 X 0 0 0 REGINALD A JONES TREASURER 1.00 0.70 X X 0 0 0 YVONNE S MAGEE PHD BOARD CHAIR-ELECT 1.00 0.70 X X 0 0 0 VIRGIL C MCDONALD DIRECTOR 1.00 0.70 X 0 0 0 HENRY W MOSLEY DIRECTOR 1.00 0.70 X 0 0 0 KIMBERLY ROBERTSON PANNELL CHAIR 1.00 0.70 X X 0 0 0 JOHN A PETTY SECRETARY 1.00 0.70 X X 0 0 0 MANERVIA W RIDDICK IMMEDIATE PAST CHAIR 1.00 0.70 X X 0 0 0 VERNA S MEACHAM PRESIDENT/CEO 40.00 16.00 X X 177716 0 16325 JOSEPH B TUCKER SR. VP FINANCE/CFO 40.00 16.00 X 177164 0 5831 MARJORIE QUINT-BOUZID DIR. OF PATIENT CARE SERVICES 38.00 X 152457 0 22294 SOCORRO OBEDOZA DIRECTOR OR & PACU 38.00 X 126759 0 5151 BEVERLY L ARCIAGA CLINICAL NURSE II 38.00 X 138799 0 8627 FREDERICK L ASHBY DIRECTOR INFORMATION TECHNOLOGY 38.00 X 131765 0 22641 HOWARD L ROBINSON JR DIRECTOR OF PHARMACY 38.00 X 121469 0 14179 LILLIAN ANTONIO PARAOAN CLINICAL NURSE II 38.00 X 120107 0 6593 1663192 0 101641 24 0 1 0 VIMLA BHOOSHAN 9739 AVENSEL FARM DR POTOMAC MD 20854 PHYSICIAN 516956 QUEST DIAGNOSTICS 14225 NEW BROOK DR CHANTILLY VA 20153 LAB 476404 ALPHA SECURITY 12805 OLD FORT RD SUITE 302 FORT WASHINGTON MD 20744 SECURITY 368287 CPSI 6600 WALL STREET MOBILE AL 36695 COMPUTER SERVICES 338471 HEALTH CARE RESOLUTIONS INC 14504 GREENVIEW DRIVE STE 3300 LAUREL MD 20708 ICD-10 IMPLEMENTATION 287385 15 186030 26199 212229 PATIENT SERVICES 621400 39599750 39599750 DIETARY SERVICES 900099 38925 38925 39638675 748 748 65577 0 65577 65577 65577 101903 186030 157826 -55923 -55923 MEDICARE INCENTIVE PAY 900099 915000 915000 REPORT AND RECORD FEES 900099 33014 33014 391667 2320 389347 1339681 41200987 40654586 0 334172 1067139 691707 375432 17293127 14730738 2414645 147744 2604 2604 1873290 1449637 406719 16934 1337394 1138398 188801 10195 168237 168237 72011 72011 95350 95350 7054744 4623106 2419491 12147 27074 24891 2183 1087457 591142 493146 3169 935544 93355 842189 28879 2797 26082 36131 10353 25491 287 544383 544383 801129 801129 971882 199029 772853 MEDICAL SUPPLIES 4869143 4860114 8217 812 BAD DEBT 1850854 1850854 508573 362021 141720 4832 40624945 30603251 9823391 198303 2011937 1122622 46000 46000 6743932 5243940 964235 903483 762384 899653 25173536 18278893 6800759 6894643 4420830 5886252 21750077 20996593 7854760 7068904 9215044 8683676 450369 456254 1209230 1191043 18729403 17399877 X 2913674 3489716 107000 107000 3020674 3596716 21750077 20996593 576042 0 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 3697 3697 0 PART II-B, LINE 1: DUES PAID TO MARYLAND HOSPITAL ASSOCIATION RELATING TO LOBBYING ACTIVITIES. 122528 122528 8881193 6548153 2333040 751841 541458 210383 12944137 11189282 1754855 2473837 2473837 6894643 DUE FROM AFFILIATES 1798158 MISCELLANEOUS ACCOUNTS RECEIVABLE 215803 ASSETS LIMITED AS TO USE 1524655 DEPOSITS 132297 DEFERRED FINANCING COSTS 1299629 INCENTIVE PAYMENTS RECEIVABLE 915710 5886252 ADVANCES FROM THIRD PARTY PAYEE 915452 CAPITAL LEASE 275591 1191043 X 41358813 157826 157826 41200987 0 41200987 40782771 157826 157826 40624945 0 40624945 PART X, LINE 2: THE HOSPITAL HAS ADOPTED THE ACCOUNTING STANDARD ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES, WHICH ADDRESSES THE DETERMINATION OF WHETHER TAX BENEFITS CLAIMED OR EXPECTED TO BE CLAIMED ON A TAX RETURN SHOULD BE RECORDED IN THE FINANCIAL STATEMENTS. UNDER THIS POLICY, THE HOSPITAL MAY RECOGNIZE THE TAX BENEFIT FROM AN UNCERTAIN TAX POSITION ONLY IF IT IS MORE LIKELY THAN NOT THAT THE TAX POSITION WOULD BE SUSTAINED ON EXAMINATION BY TAXING AUTHORITIES, BASED ON THE TECHNICAL MERITS OF THE POSITION. MANAGEMENT HAS EVALUATED THE HOSPITAL'S TAX POSITIONS AND HAS CONCLUDED THAT THE HOSPITAL HAS TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE FINANCIAL STATEMENTS TO COMPLY WITH PROVISIONS OF THIS GUIDANCE. THE HOSPITAL IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS BY THE U.S. FEDERAL, STATE OR LOCAL TAX AUTHORITIES FOR YEARS BEFORE DECEMBER 31, 2010. PART XI, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES NETTED WITH REVENUE FUNDRAISING EVENT EXPENSES NETTED WITH REVENUE 157,826. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES NETTED WITH REVENUE FUNDRAISING EVENT EXPENSES NETTED WITH REVENUE 157,826. GALA 287933 186030 101903 35986 53400 21633 46807 287933 186030 101903 35986 53400 21633 46807 157826 -55923 1 1 1 X 1 X 1 1 0 1 1 1310645 958865 351780 0.00870 2564107 1534803 1029304 0.02530 3874752 2493668 1381084 0.03400 73033 73033 0.00180 409874 15000 394874 0.00970 60597 60597 0.00150 543504 15000 528504 0.01300 4418256 2508668 1909588 0.04700 0 3666567 1310645 14542741 12889051 1653690 X 1 1 1 1 FORT WASHINGTON MEDICAL CENTER INC 11711 LIVINGSTON ROAD FORT WASHINGTON MD 20744 X X X FORT WASHINGTON MEDICAL CENTER INC 1 1 X X X X X X X X X 13 1 0 1 X WWW.FORTWASHINGTONMC.ORG X X X X X X X X 0 0 1 1 200.000000000000 1 400.000000000000 1 X X X X X X 1 1 X X X X 1 0 X X X X 1 X 0 0 FORT WASHINGTON MEDICAL CENTER, INC. PART V, SECTION B, LINE 3: FORT WASHINGTON MEDICAL CENTER (FWMC) INITIATED A COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA) IN MARCH 2013 TO IDENTIFY THE NEEDS OF THOSE LIVING IN ITS PRIMARY AND SECONDARY SERVICE AREAS IN PRINCE GEORGE'S COUNTY, CHARLES COUNTY, AND WASHINGTON, D.C. THIS COMMUNITY HEALTH NEEDS ASSESSMENT WAS CONDUCTED TO EVALUATE THE STUDY AREA (BY ZIP CODE) AND UNDERSTAND THE REGION'S HEALTH NEEDS. THE CHNA, CONDUCTED BY CHNA CONSULTANT TRIPP UMBACH, IDENTIFIED SPECIFIC COMMUNITY HEALTH NEEDS AND EVALUATED HOW THOSE NEEDS ARE BEING MET IN ORDER TO BETTER CONNECT HEALTH AND HUMAN SERVICES WITH THE NEEDS OF RESIDENTS IN THE REGION. FORT WASHINGTON MEDICAL CENTER CONNECTED WITH A WIDE RANGE OF ORGANIZATIONS, HEALTH-RELATED PROFESSIONALS, LOCAL GOVERNMENT OFFICIALS, HUMAN SERVICE ORGANIZATIONS, AND FAITH-BASED ORGANIZATIONS TO EVALUATE THE COMMUNITY'S HEALTH AND SOCIAL NEEDS. THE ASSESSMENT INCLUDED PRIMARY DATA COLLECTION VIA ELECTRONIC AND HAND-DISTRIBUTED SURVEYS AND PHONE INTERVIEWS WITH THE FOLLOWING:COMMUNITY STAKEHOLDERS INTERVIEWED VIA PHONE- YMCA POTOMAC OVERLOOK: ALLISON JONES, VICE PRESIDENT OPERATIONS - PRINCE GEORGE'S COUNTY HEALTH DEPARTMENT: DR. ERNEST CARTER, DEPUTY HEALTH OFFICER - PRINCE GEORGE'S COUNTY COUNCILMAN /STATE LEGISLATOR: PRINCE GEORGE'S COUNTY COUNCILMAN OBIE PATTERSON; D-8 MARYLAND STATE DELEGATE KRISELDA VALDERRAMA- FORT FOOTE BAPTIST CHURCH: REV. NORMAN ROBINSON, PASTOR- RIVER JORDAN PROJECT COMMUNITY ORGANIZATION AND FWMC ADVISORY COUNCIL MEMBERS: REV. DR. ROBERT SCREEN; REV. TIERNEY SCREENCOMMUNITY POPULATION SURVEYSFORT WASHINGTON MEDICAL CENTER ATTENDED HEALTH FAIRS, AND DISTRIBUTED THE HAND SURVEY TO END-USERS IN THE STUDY AREA. AN ONLINE SURVEY ALSO WAS EMPLOYED. THE HAND SURVEY WAS DISTRIBUTED TO THE COMMUNITY THROUGH THE YMCA, FWMC HOSPITAL, LOCAL SCHOOL, LIBRARY AND LOCAL GROUP EVENTS, HEALTH FAIRS, STRIP MALLS, BARBERSHOPS, AND SENIOR HOMES. - A TOTAL OF 339 SURVEYS WERE COLLECTED- 299 VIA IN-PERSON, HAND-SURVEY COLLECTION; 88.2% - 40 VIA ONLINE COLLECTION; 11.8%TRIPP UMBACH'S INDEPENDENT DATA ANALYSIS, IN CONCERT WITH COMMUNITY FORUMS AND PRIORITIZATION OF THE COMMUNITY HEALTH ASSESSMENT FINDINGS, RESULTED IN THE IDENTIFICATION OF KEY COMMUNITY HEALTH NEEDS. THE COMMUNITY HEALTH NEEDS WERE PRIORITIZED AND AN IMPLEMENTATION STRATEGY WAS DEVELOPED AND EXECUTED.TO ENSURE THAT ALL HEALTH NEEDS WERE MET, FWMC IDENTIFIED AT LEAST ONE AND OFTEN MULTIPLE RESOURCES AVAILABLE TO MEET EACH IDENTIFIED COMMUNITY HEALTH NEED THROUGH THE CHNA ASSET COMMUNITY INVENTORY ASSESSMENT. FWMC MADE THE CHNA AVAILABLE TO ITS EMPLOYEES, AND TO THE PUBLIC VIA ITS WEBSITE AND UPON REQUEST. FORT WASHINGTON MEDICAL CENTER, INC. PART V, SECTION B, LINE 7: THE HOSPITAL CANNOT ADDRESS ALL COMMUNITY NEEDS DUE TO BUDGET CONSTRAINTS. FORT WASHINGTON MEDICAL CENTER, INC. PART V, SECTION B, LINE 20D: 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 OFFSETTING REVENUE RELATED TO UNCOMPENSATED CARE. PART I, LINE 6A: THE COMMUNITY BENEFIT REPORT FOR FORT WASHINGTON MEDICAL CENTER IS FILED ANNUALLY WITH THE MARYLAND HEALTH SERVICES COST REVIEW COMMISSION WHICH ALLOWS FOR PUBLIC ACCESS TO INFORMATION FILED. PART I, LINE 7A, COLUMN D: 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 OFFSETTING REVENUE RELATED TO UNCOMPENSATED CARE. PART I, LINE 7B, COLUMNS B, C, D, AND 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 INCLUDING UNCOMPENSATED CARE IN EACH PAYORS' RATES, WHICH DOES NOT ENABLE MARYLAND HOSPITALS TO BREAKOUT ANY 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 HOSPITAL PORTION OF THE MEDICAID ASSESSMENT FOR FORT WASHINGTON MEDICAL CENTER WAS $170,015 IN 2013. PART I, LINE 7F, COLUMNS C AND D: 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 OFFSETTING REVENUE RELATED TO UNCOMPENSATED CARE. PART I, LINE 7F: BAD DEBT EXPENSE INCLUDED ON FORM 990, PART IX, LINE 25, COLUMN (A), BUT SUBTRACTED FOR PURPOSES OF CALCULATING THE PERCENTAGE IN THIS COLUMN. PART II, COMMUNITY BUILDING ACTIVITIES: THE HOSPITAL ROUTINELY PARTICIPATES IN COMMUNITY HEALTH FAIRS PROVIDING EDUCATION AND BLOOD PRESSURE SCREENINGS AT VARIOUS LOCATIONS THROUGHOUT THE SERVICE AREA. CLASSES ARE ALSO HELD TO EDUCATE THE COMMUNITY ON DIABETES, HEART DISEASE AND SMOKING CESSATION. PART III, LINE 4: PATIENT ACCOUNTS RECEIVABLE ARISE FROM HEALTH CARE SERVICES PROVIDED PRIMARILY TO RESIDENTS OF MARYLAND. THE PRINCIPAL PAYERS FOR THESE SERVICES ARE THE PATIENTS, INSURANCE COMPANIES (INCLUDING CAREFIRST) AND MEDICARE AND CERTAIN MEDICAID PROGRAMS. ACCOUNTS RECEIVABLE ARE REDUCED BY AN ALLOWANCE FOR DOUBTFUL ACCOUNTS. IN EVALUATING THE COLLECTABILITY OF ACCOUNTS RECEIVABLE, THE HOSPITAL ANALYZES ITS PAST HISTORY AND IDENTIFIES TRENDS FOR EACH OF ITS MAJOR PAYOR SOURCES OF REVENUE TO ESTIMATE THE APPROPRIATE ALLOWANCE FOR DOUBTFUL ACCOUNTS AND PROVISION FOR BAD DEBTS. MANAGEMENT REGULARLY REVIEWS DATA ABOUT THESE MAJOR PAYOR SOURCES OF REVENUE IN EVALUATING THE SUFFICIENCY OF THE ALLOWANCE FOR DOUBTFUL ACCOUNTS. FOR RECEIVABLES ASSOCIATED WITH SERVICES PROVIDED TO PATIENTS WHO HAVE COVERAGE, THE HOSPITAL ANALYZES CONTRACTUALLY DUE AMOUNTS AND PROVIDES AN ALLOWANCE FOR DOUBTFUL ACCOUNTS AND A PROVISION FOR BAD DEBT, IF NECESSARY (FOR EXAMPLE, FOR EXPECTED UNCOLLECTIBLE DEDUCTIBLES AND COPAYMENTS ON ACCOUNTS FOR WHICH THE THIRD PARTY PAYOR HAS NOT YET PAID, OR FOR PAYORS WHO ARE KNOWN TO BE HAVING FINANCIAL DIFFICULTIES THAT MAKE THE REALIZATION OF AMOUNTS DUE UNLIKELY). FOR RECEIVABLES ASSOCIATED WITH SELF-PAY PATIENTS (WHICH INCLUDE BOTH PATIENTS WITHOUT INSURANCE AND PATIENTS WITH DEDUCTIBLE AND COPAYMENT BALANCES DUE FOR WHICH THIRD-PARTY COVERAGE EXISTS FOR PART OF THE BILL), THE HOSPITAL RECORDS A SIGNIFICANT PROVISION FOR BAD DEBTS IN THE PERIOD OF SERVICE ON THE BASIS OF ITS PAST EXPERIENCE, WHICH INDICATES THAT MANY PATIENTS ARE UNABLE OR UNWILLING TO PAY THE PORTION OF THEIR BILL FOR WHICH THEY ARE FINANCIALLY RESPONSIBLE. THE DIFFERENCE BETWEEN THE STANDARD RATES AND THE AMOUNTS ACTUALLY COLLECTED AFTER ALL REASONABLE COLLECTION EFFORTS HAVE BEEN EXHAUSTED IS CHARGED OFF AGAINST THE ALLOWANCE FOR DOUBTFUL ACCOUNTS.THE HOSPITAL GRANTS CREDIT TO PATIENTS, SUBSTANTIALLY ALL OF WHOM ARE LOCAL RESIDENTS. THE HOSPITAL GENERALLY DOES NOT REQUIRE COLLATERAL OR OTHER SECURITY IN EXTENDING CREDIT; HOWEVER, IT ROUTINELY OBTAINS ASSIGNMENT OF (OR IS OTHERWISE ENTITLED TO RECEIVE) PATIENTS' BENEFITS RECEIVABLE UNDER THEIR HEALTH INSURANCE PROGRAMS, PLANS, OR POLICIES.THE MARYLAND HEALTH SERVICES COST REVIEW COMMISSION (HSCRC) REGULATES THE HOSPITAL'S RATES FOR ALL OF ITS INPATIENT AND OUTPATIENT SERVICES. AS PART OF THE REGULATORY PROCESS, THE HSCRC APPROVES UNIT RATES AND CHARGES PER CASE AMOUNTS, AND THE HOSPITAL IS REQUIRED TO CHARGE WITHIN CERTAIN LIMITS RELATED TO THESE APPROVED AMOUNTS. THE HSCRC CHARGE PER CASE METHODOLOGY RECOGNIZES CASE MIX CHANGES. ANNUAL COMPLIANCE PERIODS BEGIN ON JULY 1 AND END ON JUNE 30. THE HOSPITAL RECEIVED A 1.65% UNIT RATE AND CHARGE PER CASE INCREASE EFFECTIVE JULY 1, 2013. PART III, LINE 8: A COST-TO-CHARGE METHODOLOGY WAS USED TO DETERMINE MEDICARE ALLOWABLE COSTS. PART III, LINE 9B: ONCE THE COLLECTION PROCESS HAS BEGUN, THE ORGANIZATION CONTINUES TO MONITOR WHETHER THE PATIENT QUALIFIES FOR CHARITY CARE UNDER THE FINANCIAL ASSISTANCE POLICY. IF THE ORGANIZATION DETERMINES THAT A PATIENT QUALIFIES FOR FINANCIAL ASSISTANCE, INCLUDING ONCE THE COLLECTION PROCESS HAS BEGUN, THE ORGANIZATION WILL APPROVE THE PATIENT FOR CHARITY CARE. ONCE CHARITY CARE HAS BEEN APPROVED, THERE IS NO FURTHER ATTEMPT MADE BY THE ORGANIZATION TO COLLECT. PART VI, LINE 2: FORT WASHINGTON MEDICAL CENTER (FWMC) INITIATED A COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA) IN MARCH 2013 TO IDENTIFY THE NEEDS OF THOSE LIVING IN ITS PRIMARY AND SECONDARY SERVICE AREAS IN PRINCE GEORGE'S COUNTY, CHARLES COUNTY, AND WASHINGTON, D.C. THIS COMMUNITY HEALTH NEEDS ASSESSMENT WAS CONDUCTED TO EVALUATE THE STUDY AREA (BY ZIP CODE) AND UNDERSTAND THE REGION'S HEALTH NEEDS. IN ADDITION, WE ARE ACTIVELY INVOLVED WITH THE PRINCE GEORGE'S COUNTY HEALTHCARE ACTION COALITION (PGHAC) DEVELOPED BY THE MARYLAND DEPARTMENT OF HEALTH AND MENTAL HYGIENE TO ASSIST IN MAKING MARYLAND HEALTHIER. PGHAC'S MISSION IS TO IMPROVE THE HEALTH OF THE RESIDENTS OF PRINCE GEORGE'S COUNTY BY INCREASING ACCESS TO CARE, PROMOTING COLLABORATION AMONG HEALTH CARE PROVIDERS AND KEY STAKEHOLDERS, AND INTEGRATING AND COORDINATING PATIENT CARE TO REDUCE DUPLICATION OF AND ENHANCE SEAMLESS HEALTH SERVICE DELIVERY.FWMC IS INVOLVED WITH THE "ACCESS TO CARE" WORK GROUP WITH A FOCUS ON ENSURING RESIDENTS RECEIVE NEEDED HEALTH CARE, PARTICULARLY LOW INCOME, UNINSURED/UNDERINSURED ADULTS AND CHILDREN. THE ORGANIZATION HAS BEEN INVOLVED FROM THE BEGINNING OF THE INITIATIVE WORKING WITH PUBLIC HEALTHEXPERTS, AGENCIES, HOSPITAL PERSONNEL AND COMMUNITY ORGANIZATIONS TO LAY A FOUNDATION FOR ADDRESSING THIS ISSUE AND ESTABLISHING WAYS TO PROMOTE AND COMMUNICATE THE INITIATIVE AND MONITOR AND MEASURE ITS OVERALL EFFECTIVENESS.TO GAIN MORE INSIGHT INTO THE HEALTH OF THE COUNTY, IN OCTOBER 2011, THE ORGANIZATION INVITED PRINCE GEORGE'S COUNTY ACTING HEALTH OFFICER PAMELA CREEKMUR TO A PUBLIC ANNUAL MEETING TO DISCUSS THE COUNTY'S HEALTH IMPROVEMENT PLAN - ITS BLUEPRINT FOR A HEALTHIER COUNTY TO LEARN MORE ABOUT THE COUNTY'S 10 HEALTH PRIORITIES, AND HOW WE CAN WORK COLLABORATIVELY. WE HELD A ROUNDTABLE AFTER THE DISCUSSION WITH COMMUNITY FEEDBACK TO GAIN FURTHER INSIGHT ON THE ISSUES PRESENTED AND DETERMINED THAT UNINSURED AND WELLNESS PREVENTION WAS A LEADING AREA OF CONCERN. PARTICIPANTS NOTED THE AVAILABLE HEALTH SERVICES FOR THE UNINSURED AND THE LACK OF SUFFICIENT PRIMARY CARE PROVIDERS (ACCESS TO CARE), WHICH LED TO THE PGHAC INITIATIVE WE ARE INVOLVED IN TODAY.WE ALSO ENGAGE OUR FWMC COMMUNITY ADVISORY COUNCIL, WHICH CONSISTS OF CLERGY, EDUCATORS, GOVERNMENT REPRESENTATIVES AND OTHER PROFESSIONALS TO GAIN COMMUNITY FEEDBACK ON HOSPITAL GOALS, OBJECTIVES AND THE COMMUNITIIES' NEEDS. PART VI, LINE 3: FORT WASHINGTON MEDICAL CENTER COMMUNICATES THE AVAILABILITY OF FINANCIAL ASSISTANCE ON THE HOSPITAL WEBSITE AND IN HOSPITAL PUBLICATIONS. FINANCIAL ASSISTANCE PROGRAM NOTICES ARE POSTED FOR PUBLIC VIEW IN THE ADMITTING AREA, REGISTRATION AREA, PATIENT ACCOUNTS OFFICE, THE EMERGENCY DEPARTMENT AND ADMINISTRATION. FURTHERMORE, A COPY OF THE FINANCIAL ASSISTANCE POLICY IS PROVIDED TO PATIENTS OR THEIR FAMILIES AS PART OF THE ADMISSION PROCESS. ALSO, ONCE THE PATIENT IS DISCHARGED, EACH BILLING STATEMENT CONTAINS A SUMMARY OF THE FINANCIAL ASSISTANCE POLICY. STAFF HAS BEEN TRAINED TO ASSIST PATIENTS WHO WISH TO UTILIZE THE FINANCIAL ASSISTANCE PROGRAM BY REFERRING THEM TO FINANCIAL COUNSELORS THAT HELP THE PATIENTS TO COMPLETE THE FINANCIAL ASSISTANCE APPLICATIONS. PART VI, LINE 4: FORT WASHINGTON, OXON HILL AND TEMPLE HILLS COMPRISE FORT WASHINGTON MEDICAL CENTER'S COMMUNITY BASED SERVICE AREA (CBSA) AND ARE LOCATED IN PRINCE GEORGE'S COUNTY. THE SUBURBAN CITIES ARE WITHIN A SHORT DISTANCE FROM THE WASHINGTON, D.C./MARYLAND LINE. FORT WASHINGTON ENCOMPASSES A 14-SQUARE MILE RADIUS. ACCORDING TO CLARITAS.COM, IT HAS A POPULATION OF 50,463 PEOPLE. THE RACIAL DYNAMIC OF FORT WASHINGTON IS PRIMARILY AFRICAN-AMERICAN WITH 75.5% RESIDENTS; 14.6% WHITE RESIDENTS; 6.4% ASIAN, AND THE REMAINDER OF OTHER RACES ARE, NATIVE HAWAIIAN, AMERICAN INDIAN, AND PACIFIC ISLANDER. THE MEDIAN FORT WASHINGTON HOUSEHOLD INCOME IS $87,600.SURROUNDING PORTIONS OF FORT WASHINGTON IS 9-SQUARE MILES OF LAND IN OXON HILL, MARYLAND. IT EXTENDS ALONG THE 210 NORTH CORRIDORS AND ALONG SOUTHERN AVENUE, WHICH SEPARATES IT FROM WASHINGTON, D.C. ACCORDING TO THE CLARITAS.COM, ITS POPULATION IS 28,199 RESIDENTS. THE RACIAL MAKE-UP OF OXON HILL IS 84.6% AFRICAN-AMERICANS; 8.2% WHITE RESIDENTS AND 4.2% ASIAN RESIDENTS.THE MEDIAN OXON HILL HOUSEHOLD INCOME IS $52,300 AND THE AVERAGE AGE OF THE OXON HILL RESIDENT IS 35.4 YEARS.ANOTHER COMPONENT OF THE FWMC SERVICE AREA IS TEMPLE HILLS, WHICH IS 1.4 SQUARE MILES, AND IS WEST OF OXON HILL AND SOUTHEAST OF WASHINGTON, D.C. TEMPLE HILLS HAS A POPULATION OF 36,626 PEOPLE. AFRICAN-AMERICANS COMPRISE THE MAJORITY OF THE POPULATION WITH 85.4% RESIDENTS, 11.0% WHITE RESIDENTS AND 1.9% HISPANIC RESIDENTS. THERE IS A SMALL POPULATION OF NATIVE HAWAIIAN, AMERICAN INDIAN AND PACIFIC ISLANDERS. NEARLY 14% OF THE POPULATION IS CONSIDERED BELOW THE PROVERTY LINE.THE MEDIAN TEMPLE HILLS HOUSEHOLD INCOME IS $61,400 AND THE AVERAGE AGE OF THE TEMPLE HILLS RESIDENT IS 38.4 YEARS. PART VI, LINE 5: THE HOSPITAL HAS A BOARD THAT IS MADE UP OF MEMBERS OF THE COMMUNITY WHO SERVE AS THE OVERSIGHT BODY FOR THE ACTIVITIES OF THE HOSPITAL. SURPLUS HOSPITAL FUNDS ARE REINVESTED IN THE OPERATION TO SECURE REQUIRED REPLACEMENT EQUIPMENT AND BUILDING UPGRADES/REPAIRS. THE HOSPITAL EXTENDS MEDICAL STAFF PRIVILEDGES TO ALL QUALIFIED PHYSICIANS FOR ALL OF ITS DEPARTMENTS.FORT WASHINGTON MEDICAL CENTER ROUTINELY PARTICIPATES IN COMMUNITY HEALTHFAIRS, PROVIDING EDUCATION AND BLOOD PRESSURE SCREENINGS AT VARIOUSLOCATIONS THROUGH THE PATIENT SERVICE AREA. IN ADDITION, CLASSES ARE HELD TO EDUCATE THE COMMUNITY ON A NUMBER OF HEALTH ISSUES, INCLUDING:DIABETES, HEART DISEASE AND SMOKING CESSATION.FORT WASHINGTON MEDICAL CENTER HAS A BOARD OF DIRECTORS COMPRISEDPREDOMINANTLY FROM MEMBERS OF THE COMMUNITY WHO SERVE AS THE OVERSIGHTBODY FOR THE ACTIVITIES OF THE HOSPITAL. SURPLUS FUNDS ARE REINVESTED INTHE HOSPITAL TO PROVIDE REQUIRED REPLACEMENT EQUIPMENT AND BUILDINGUPGRADES/REPAIRS AS WELL AS TO CONTINUE TO PROVIDE COMMUNITY BENEFITACTIVITIES FOR THE COMMUNITY.IT IS BELIEVED THAT A SUBSTANTIAL NUMBER OF THE EMERGENCY ROOM CASES AT FWMC ARE LINKED TO DIABETES. IN AN EFFORT TO HELP PATIENTS BETTER MANAGE DIABETES, AND TO REDUCE THE INCIDENCE OF RECIDIVISM, PATIENTS NOW SEEN AT FWMC OR THROUGH THE EMERGENCY ROOM, OR IF HOSPITALIZED, ARE RECRUITED TO PARTICIPATE IN THE CLASSES.DURING THIS REPORTING YEAR, FWMC PROVIDED THE FOLLOWING PROGRAMMATICACTIVITIES RELATED TO COMMUNITY NEED:- CONDUCTED (2) 4-WEEK DIABETES MANAGEMENT SERIES HELD IN THE SPRING AND FALL.- PROVIDED A HEALTH EDUCATION PRESENTATION SPECIFICALLY ON HEART HEALTH FOCUSING ON HYPERTENSION, CONGESTIVE HEART FAILURE, AND LIFESTYLE ELEMENTS.- PROVIDED A HEALTH EDUCATION PRESENTATION ON RESPIRATORY AILMENTS, INCLUDING ASTHMA, EMPHYSEMA AND BRONCHITIS.- PROVIDED NEARLY 30 COMMUNITY-BASED EVENTS TO 450 PARTICIPANTS.- PARTNERED WITH CHURCHES, COMMUNITY AND SOCIAL GROUPS, SCHOOLS, AND SERVICE ORGANIZATIONS TO PROVIDE HEALTH EDUCATION AND SCREENINGS.- ESTABLISHED A FRAMEWORK TO HOLD COMMUNITY ENGAGEMENT ACTIVITIES.- WORKED WITH OTHER HEALTH CARE PROVIDERS, INCLUDING THE PRINCE GEORGE'S HEALTH DEPARTMENT, THE AMERICAN HEART ASSOCIATION, AND THE FWMC MEDICAL STAFF.- PROVIDED PROFESSIONAL HEALTH EDUCATION TO 108 PARTICIPANTS.EVALUATIONS ARE DONE ON PARTS OF THE PROGRAM, WHICH HAVE INCLUDED THE DIABETES AWARENESS PROGRAM, MAJOR COMMUNITY OFFERINGS AND SPECIAL MEETINGS. THE DIABETES PROGRAM AT FWMC HAS BEEN HIGHLY SUCCESSFUL. PARTICIPANTS THEMSELVES RATE THE PROGRAM HIGHLY, NOTING THE EXPERTISE OF THE INSTRUCTORS, THE DESIGN OF THE CLASS AND THE EASY ACCESS TO THE CLASS.HEALTH FAIRS AND SCREENING PROGRAMS ARE EVALUATED ON A CASE-BY-CASE BASIS TO ASCERTAIN COMMUNITY PARTICIPATION, SPONSOR FEEDBACK, CLINICAL FOLLOW-UP, EDUCATIONAL MATERIALS, COMMUNITY AWARENESS AND AFFIRMATION, AND GENERAL FEEDBACK.EVALUATION OF PRECEPTOR-SHIP PROGRAMS ARE BUILT IN AND ARE DONE ON A CONTINUAL BASIS. FORT WASHINGTON MEDICAL CENTER'S TEACHING - PRECEPTOR PROGRAM CONTINUES TO BE A MAJOR PORTION OF COMMUNITY BENEFIT. NURSING AND ALLIED TRAINING PRECEPTOR OPPORTUNITIES HAVE CONTINUED AT FWMC. UNDER THE DIRECTION OF THE FWMC'S PERFORMANCE IMPROVEMENT DEPARTMENT, WHICH ADHERES TO THE STANDARD ESTABLISHED BY JCAHO, STUDENTS ARE REQUIRED TO MEET CERTAIN HOSPITAL STANDARDS. THE DEPARTMENT WORKS WITH THE NURSING AND ALLIED HEALTH SCHOOLS TO INSURE THAT THE STANDARDS ARE MET AND THAT THERE IS APPROPRIATE REPORTING, AS REQUIRED FROM ALL PARTICIPANTS. PART VI, LINE 6: THE NEXUS HEALTH CARE SYSTEM PROVIDES MEDICAL CARE TO COMMUNITIES IN PRINCE GEORGE'S COUNTY, MARYLAND AND WASHINGTON, D.C. THROUGH ITS OWNERSHIP IN FORT WASHINGTON MEDICAL CENTER AND CAROLYN BOONE LEWIS HEALTH CARE CENTER. CAROLYN BOONE LEWIS HEALTH CENTER IS A 183-BED TEACHING NURSING HOME LOCATED ON THE MARYLAND-WASHINGTON, D.C. LINE IN SOUTHEAST WASHINGTON D.C. IT PROVIDES SKILLED NURSING, REHABILITATION SERVICES, AND LONG-TERM CARE. FORT WASHINGTON MEDICAL CENTER IS A 37-BED HOSPITAL, CURRENTLY LICENSED FOR 31 BEDS. THE HOSPITAL UTILIZES 33 ACUTE CARE BEDS, WITH FOUR BEDS DESIGNATED FOR INTENSIVE CARE. THE HOSPITAL PROVIDES MEDICAL AND SURGICAL SERVICES, INCLUDING SPECIALTY SERVICES SUCH AS ENDOCRINOLOGY, PATHOLOGY AND HEMATOLOGY ON BOTH AN INPATIENT AND OUTPATIENT BASIS. ADDITIONALLY, THE HOSPITAL PROVIDES 24/7 EMERGENCY ROOM SERVICES. PART VI, LINE 7, REPORTS FILED WITH STATES MD X X X 0 0 0 0 0 0 0 0 0 VIMLA BHOOSHAN MD DIRECTOR/PHYSICIAN 516956 0 0 0 0 0 0 0 0 0 516956 0 0 0 VERNA S MEACHAM PRESIDENT/CEO 177716 0 0 0 0 0 5442 0 10883 0 194041 0 0 0 JOSEPH B TUCKER SR. VP FINANCE/CFO 177164 0 0 0 0 0 3889 0 1942 0 182995 0 0 0 MARJORIE QUINT-BOUZID DIR. OF PATIENT CARE SERVICES 152457 0 0 0 0 0 4740 0 17554 0 174751 0 0 0 FREDERICK L ASHBY DIRECTOR INFORMATION TECHNOLOGY 131765 0 0 0 0 0 4118 0 18523 0 154406 0 0 0 FORM 990, PART VI, SECTION A, LINE 3 ON SEPTEMBER 1, 2013, THE HOSPITAL ENTERED INTO MANAGEMENT SERVICES AGREEMENT WITH UNIVERSITY OF MARYLAND MEDICAL SYSTEM CORPORATION (UMMS) WHEREBY THE HOSPITAL'S CURRENT CHIEF EXECUTIVE OFFICER (CEO) AND CHIEF FINANCIAL OFFICER (CFO) BECAME DIRECT EMPLOYEES OF UMMS, AND UMMS WAS TASKED WITH PROVIDING MANAGEMENT SUPERVISION FOR THE OPERATION AND BUSINESS DEVELOPMENT OF THE HOSPITAL. THE CEO REPORTS DIRECTLY TO THE BOARD OF DIRECTORS OF THE HOSPITAL AND IS RESPONSIBLE FOR SUPERVISING THE DAY-TO-DAY OPERATION, MANAGEMENT, ADMINISTRATIVE SUPERVISION, AND MAINTENANCE OF THE FACILITY ON BEHALF OF THE HOSPITAL. THE CFO, JOSEPH TUCKER REPORTS DIRECTLY TO THE CEO. CEO, VERNA MEACHAM, RECIEVED COMPENSATION IN THE AMOUNT OF $75,209 FROM UMMS. CFO, JOSEPH TUCKER, RECEIVED COMPENSATION IN THE AMOUNT OF $52,443 FROM UMMS. FORM 990, PART VI, SECTION B, LINE 11 UPON COMPLETION OF THE FORM 990 BY THE EXTERNAL ACCOUNTING FIRM, A REVIEW OF THE RETURN IS COMPLETED BY THE CORPORATE FINANCE DEPARTMENT AS WELL AS THE SENIOR VICE PRESIDENT FOR FINANCE AND THE PRESIDENT & CEO. THE 990 IS THEN REVIEWED BY THE AUDIT COMMITTEE OF THE BOARD OF TRUSTEES. THE FINAL VERSION OF THE DOCUMENTS ARE THEN MADE AVAILABLE TO ALL BOARD MEMBERS PRIOR TO FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C IN CONNECTION WITH ACTUAL OR POSSIBLE CONFLICTS OF INTEREST, AN INTERESTED PERSON MUST DISCLOSE THE EXISTENCE OF AND NATURE OF HIS OR HER FINANCIAL INTEREST TO THE PRESIDENT, DIRECTORS AND/OR MEMBERS OF COMMITTEES WITH BOARD DELEGATED POWERS CONSIDERING THE PROPOSED TRANSACTION OR ARRANGEMENT. INTERESTED PERSONS ALSO SHOULD BE ALERT TO DISCLOSE ANY SITUATION THAT, BY VIRTUE OF A TRANSACTION OR ARRANGEMENT UNDER CONSIDERATION, COULD BE PERCEIVED BY ANYONE AS A CONFLICT OF INTEREST. A. DURING THE YEAR ALL INTERESTED PERSONS ARE OBLIGATED TO MONITOR THEIR OUTSIDE ACTIVITIES WITH REGARD TO ENTITIES THAT DO BUSINESS WITH NEXUS HEALTH, INC OR ITS SUBSIDIARIES. AT ANY TIME DURING THE YEAR, INTERESTED PERSONS MAY HAVE A CHANGE IN A FINANCIAL ARRANGEMENT OR ADDITION OF A NEW POTENTIAL CONFLICT OF INTEREST THAT MAY HAVE AN EFFECT ON BUSINESS. IT IS THE RESPONSIBILITY OF THE INDIVIDUAL TO REPORT THIS INFORMATION TO THE CHAIR PERSON OF THE BOARD OF TRUSTEES, PRESIDENT OR COMPLIANCE OFFICER. THE INDIVIDUAL WILL BE PROVIDED WITH THE APPROPRIATE DOCUMENTS TO REPORT THE POTENTIAL CONFLICT. B. ANNUAL REPORTING ON AN ANNUAL BASIS, EACH TRUSTEE, OFFICER, SENIOR MANAGER, DIRECTOR, MEMBER OF THE MEDICAL STAFF EXECUTIVE COMMITTEE, OR MEDICAL DIRECTOR, SHALL COMPLETE A CONFLICT OF INTEREST DISCLOSURE AND REVIEW THE CONFLICTS OF INTEREST POLICY. TRUSTEES SHOULD ALSO REVIEW THE CORPORATION BYLAWS. THE CONFLICT OF INTEREST DISCLOSURE AND POLICY WILL BE ISSUED TO EACH INTERESTED PERSON DURING THE MONTH OF NOVEMBER BY THE EXECUTIVE ASSISTANT TO THE CEO. ALL FORMS ARE TO BE RETURNED TO THE EXECUTIVE ASSISTANT TO THE CEO NO LATER THAN DECEMBER 31ST. MANAGEMENT OF CONFLICTS: IF AN INTERESTED PERSON HAS A POTENTIAL CONFLICT OF INTEREST, IT MUST BE DISCLOSED. THE INTERESTED PERSON INVOLVED IN THE CONFLICT MAY NOT PARTICIPATE IN ANY PROCESS LEADING TO THE APPROVAL OR DISAPPROVAL OF THE TRANSACTION CREATING THE CONFLICT, INCLUDING ANY VOTE OR OTHER SUBMISSION OF OPINION. IN ADDITION, THE INTERESTED PERSON MUST NOT INDIRECTLY ATTEMPT TO INFLUENCE THE DECISION-MAKING PROCESS. INTERESTED PERSONS WHO FAIL TO DISCLOSE POTENTIAL CONFLICTS OF INTEREST AND AVOID ANY DIRECT OR INDIRECT INFLUENCE IN ACCORDANCE WITH THIS POLICY SHALL BE APPROPRIATELY DISCIPLINED. VIOLATION OF THIS POLICY WILL SUBJECT THE INDIVIDUAL TO DISCIPLINARY ACTION INCLUDING POSSIBLE DISMISSAL AND MEMBERS OF THE BOARD OF TRUSTEES WILL BE SUBJECT TO REMOVAL. DISCIPLINE WILL BE COMMENSURATE WITH THE SERIOUSNESS OF THE ACTION. ALL REPORTS OF CONFLICTS OR POTENTIAL CONFLICTS OF INTEREST WILL BE REVIEWED BY THE CHAIRMAN OF THE BOARD OF TRUSTEES, PRESIDENT AND THE COMPLIANCE OFFICER. CONFLICT DISCLOSURES WILL ALSO BE REVIEWED BY LEGAL COUNSEL. THE CHAIRMAN, PRESIDENT, COMPLIANCE OFFICER, AND LEGAL COUNSEL WILL DETERMINE IF ANY ACTION MUST BE TAKEN TO PROTECT NEXUS HEALTH, INC. OR ITS AFFECTED AFFILIATES. A REPORT OF ALL CONFLICTS OF INTEREST SHALL BE SHARED WITH THE EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES ANNUALLY. FORM 990, PART VI, SECTION B, LINE 15 EXECUTIVE COMPENSATION: PURPOSE: THE WAGE AND SALARY STRUCTURE GOVERNING EXECUTIVE COMPENSATION IS ESTABLISHED AND APPROVED BY THE BOARD OF DIRECTORS OF NEXUS HEALTH, INC. VIA THE EXECUTIVE COMPENSATION COMMITTEE IN CONSULTATION WITH THE CEO. PHILOSOPHY: THE INTENT OF THIS POLICY IS TO GUIDE THE EXECUTIVE COMPENSATION PRACTICES OF THE ORGANIZATION TO ASSURE A FAIR AND EQUITABLE, WELL-DEFINED PROCESS FOR DETERMINING COMPENSATION, AND TO PROVIDE A STANDARDIZED STRUCTURE FOR MANAGING THIS ISSUE. 1. COMPENSATION OF THE PRESIDENT AND CEO OF THE ORGANIZATION IS GOVERNED BY CONTRACT. THE COMPENSATION COMMITTEE USES AN INDEPENDENT STUDY AS PART OF THEIR PROCESS IN DETERMINING THE COMPENSATION OF THE CEO. 2. COMPENSATION FOR THE SENIOR EXECUTIVE STAFF IS ESTABLISHED AS FOLLOWS: THE HUMAN RESOURCES DEPARTMENT, OR AN EXTERNAL ORGANIZATION WILL DETERMINE THE CURRENT MARKET SALARY RANGES FOR EXECUTIVE LEVEL POSITIONS BY CONDUCTING PERIODIC SALARY SURVEYS. A RANGE SHALL BY ESTABLISHED FOR EACH EXECUTIVE POSITION. THIS SHALL BE PRESENTED TO THE BOARD THROUGH THE EXECUTIVE COMPENSATION COMMITTEE ON AN ANNUAL BASIS AT THE APRIL BOARD MEETING. 3. THE CEO HAS THE AUTHORITY TO SET EXECUTIVE COMPENSATION AND SALARY INCREASES WITHIN THE RANGES DETERMINED BY THE HR DEPARTMENT AND APPROVED BY THE BOARD. SENIOR EXECUTIVE STAFF IS DEFINED AS AN INDIVIDUAL WITH THE TITLE VICE PRESIDENT, CHIEF FINANCIAL OFFICER, SENIOR VICE PRESIDENT, OR CORPORATE DIRECTOR. 4. EXECUTIVES SHALL BE ENTITLED TO ALL BENEFITS BEYOND SALARY AS EXTENDED TO OTHER EMPLOYEES OF THE CORPORATION. THESE INCLUDE HEALTH AND MEDICAL BENEFITS, 403B MATCH FOR RETIREMENT SAVINGS, LIFE, SHORT AND LONG-TERM DISABILITY INSURANCES OR ANY OTHER BENEFITS THAT MAY BE OFFERED AT SOME FUTURE DATE. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST FOR THE SAME PERIOD OF DISCLOSURE AS SET FORTH IN SECTION 6104(D). NEXUS HEALTH INC 174 WATERFRONT STREET SUITE 225 NATIONAL HARBOR MD 20745 520238460 PARENT ORGANIZATION MD 501(C)(3) 509(A)(2) N/A 0 CAROLYN BOONE LEWIS HEALTH CARE CENTER 1380 SOUTHERN AVE SE WASHINGTON DC 20032 521127260 NURSING HOME DC 501(C)(3) LINE 9 NEXUS HEALTH 0 NEXUS CONSULTING SERVICES INC 174 WATERFRONT STREET SUITE 225 NATIONAL HARBOR MD 20745 521602159 CURRENTLY INACTIVE DE N/A C 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0