2014-11-17T05:54:05-08:00 2013-12-31 Axley & Rode LLP 1307 S 1st St Lufkin TX 759014717 990 2013-01-01 750755367 Memorial Health System of East Texas MEMO 9366348111 P O Box 1447 Lufkin TX 75902 GARY N LOOPER CEO 2014-11-06 true J LEON MANNING CPA P00045819 9366346621 2013 2015-11-30 17:44:51Z GARY N LOOPER 156 MAGNOLIA BEND LUFKIN TX 75904 122281271 false false X N/A X 1944 TX THE ORGANIZATION OPERATES AN ACUTE CARE HOSPITAL WITH 271 LICENSED BEDS, A CANCER CENTER, AN IMAGING CENTER, A REHABILITATION CENTER AND A DEDICATED HEART STROKE CARE FACILITY. 18 14 1064 68 0 2159487 2814009 126520680 118494736 479290 540216 22915 -3739 129182372 121845222 0 0 57934959 56927180 0 0 68868148 63646432 126803107 120573612 2379265 1271610 250660919 255494623 151133986 142801337 99526933 112693286 THE MISSION IS TO SUPPORT, MANAGE & FURNISH FACILITIES TO PROVIDE QUALITY ACUTE HEALTHCARE SERVICES FOR THE CITIZENS OF ANGELINA, POLK, SAN AUGUSTINE & SURROUNDING COUNTIES REGARDLESS OF RACE, COLOR, GENDER, AGE, NATIONAL ORIGIN, OR, TO THE EXTENT OF ITS AVAILABLE RESOURCES, ABILITY TO PAY, & TO FACILITATE & ENCOURAGE EDUCATION & TRAINING ACTIVITIES TO PROMOTE THE HEALTH & WELFARE OF THOSE CITIZENS. false false 110161222 117812751 HOSPITAL SERVICES TO PATIENTS AND SERVICES TO THE COMMUNITY INCLUDE 35,740 PATIENT DAYS DURING THE YEAR. THIS ALSO INCLUDES 7,875 INPATIENT ADMISSIONS, 102,769 OUTPATIENT VISITS, 35,922 EMERGENCY ROOM VISITS AND 9,370 HOME HEALTH VISITS. 110161222 true true false false false false false false false false true false true true true false false true false false false 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 false false false false true 209 0 true 1064 true false false false false false false false false 0 false false false false false false false false false false X 18 14 true true false false false true true true true false false false true true true true true true true false X GARY N LOOPER 9366348111 1201 W Frank Avenue LUFKIN TX 75904 X HAROLD MAXWELL Trustee 0.00 0.00 X 0 0 0 MIKE ARNOLD M D Director 1.00 0.00 X 0 0 0 JOHN F GLICK 2ND VCHAIR/SEC 1.00 0.00 X 0 0 0 DANIEL FUENTES D O PRES MED STAFF 1.00 0.00 X 0 0 0 ROBERT TELFORD Trustee 0.00 0.00 X 0 0 0 AL MEYER Trustee 0.00 0.00 X 0 0 0 GIPSON FRIESEN 1ST V CHAIR 1.00 0.00 X 0 0 0 RAVINDER BACHIREDDY M D Director 1.00 0.00 X 0 0 0 PATRICIA MCKENZIE EDD Director 1.00 0.00 X 0 0 0 RAY BALDWIN Director 1.00 0.00 X 0 0 0 RANDY GEORGE Director 1.00 0.00 X 0 0 0 GEORGE HENDERSON III Director 1.00 0.00 X 0 0 0 SW HENDERSON III Director 1.00 0.00 X 0 0 0 JACK SWEENY Chairman 1.00 0.00 X 0 0 0 H J SHANDS III Director 1.00 0.00 X 0 0 0 CARL RAY POLK Director 1.00 0.00 X 0 0 0 SID ROBERTS MD Director 1.00 0.00 X 42400 0 0 TED LANKFORD Trustee 0.00 0.00 X 0 0 0 CORKY EVANS Director 1.00 0.00 X 0 0 0 RONA FRIESEN Director 1.00 0.00 X 0 0 0 JOHN ANDERSON Trustee 0.00 0.00 X 0 0 0 DAVID PERKINS Trustee 0.00 0.00 X 0 0 0 DR THOMAS MCLAURIN Trustee 0.00 0.00 X 0 0 0 JOHN MILLER Trustee 0.00 0.00 X 0 0 0 JIM ROPER Trustee 0.00 0.00 X 0 0 0 DON BRILEY Trustee 0.00 0.00 X 0 0 0 ROSS ELDER Trustee 0.00 0.00 X 0 0 0 RONNIE ROBINSON Trustee 0.00 0.00 X 0 0 0 DON DURAN Trustee 0.00 0.00 X 0 0 0 DR THOMAS DUNCAN Trustee 0.00 0.00 X 0 0 0 JACK GORDEN Trustee 0.00 0.00 X 0 0 0 JOHN STRAIN Trustee 0.00 0.00 X 0 0 0 ARTIE BEDARD Trustee 0.00 0.00 X 0 0 0 MACK FRAZIER Trustee 0.00 0.00 X 0 0 0 H J TROUT JR Trustee 0.00 0.00 X 0 0 0 KEVIN SMITHHART Trustee 0.00 0.00 X 0 0 0 EDD TERRILL III Trustee 0.00 0.00 X 21600 0 0 JERRY SUTTON Trustee 0.00 0.00 X 0 0 0 THOMAS MOORE Trustee 0.00 0.00 X 0 0 0 DAVID GLENN M D Director 0.00 0.00 X 22000 0 0 DAVID TAMMINGA Trustee 0.00 0.00 X 0 0 0 GEORGE FIDONE M D Pres Elect M S 0.00 0.00 X 0 0 0 MIKE SMITH Trustee 0.00 0.00 X 0 0 0 PEGGY MORTENSON COO/VP CLINICAL 40.00 0.00 X 0 0 0 KRISTI GAY VP/CFO 40.00 0.00 X 150367 0 18801 DAVID HEARNE GENERAL COUNSEL 40.00 0.00 X 206778 0 7097 DONALD L MORRIS VP HUMAN RESOUR 40.00 0.00 X 199268 0 14329 KENNETH MILLER VP/CFO 40.00 0.00 X 0 0 0 GARY N LOOPER President & CEO 40.00 0.00 X 0 0 0 LESLIE LEACH ASST COO 40.00 0.00 X 172196 0 12426 KATHY GRIFFIN DIRECTOR OF PHARMACY 40.00 0.00 X 159539 0 11876 THOMAS A BROSE ASST DIR - PHARM 40.00 0.00 X 142675 0 22761 STEPHANIE STRICKLAND DIRECTOR - SURGERY 40.00 0.00 X 135507 0 5849 STACY GARCIA CNO 40.00 0.00 X 134558 0 9243 SANYUDE SANYUDE PHARMACIST 40.00 0.00 X 137009 0 21322 DANNY LOYD DIR - CATH LAB 40.00 0.00 X 130701 0 15882 1654598 139586 34 false true false HB ANESTHESIOLOGY GROUP PA 7032 COLLECTION CENTER DR CHICAGO IL 60693 ANESTHESIOLOGY 3618815 SODEXO SERVICES P O BOX 536992 ATLANTA GA 30353 DIETARY/ENVIROMENTAL 4143034 MCKESSON TECHNOLOGIES INC P O BOX 98347 CHICAGO IL 60693 TECHNOLOGY SERVICES 2766395 WILLIAM BASSUKCLINICAL ENG 1606 DOE CREST SAN ANTONIO TX 78248 EQUIPMENT MAINTENANC 3166092 COMMUNITY HOSPITAL CONSULTING INC 7800 NORTH DALLAS PKWY STE 200 PLANO TX 75024 MANAGEMENT & OTHER 2394582 33 2814009 2814009 CAFETERIA REVENUE 621990 555037 555037 ELECTRONIC HEALTH RECORDS 621990 2440060 2440060 OTHER HOSPITAL SERVICES 621990 332293 332293 PATIENT SERVICE REVENUE 621990 114799678 114799678 RENTAL INCOME - AFFILIATE 621990 228720 228720 138948 12000 126948 118494736 540216 540216 0 0 193816 196757 -2941 -2941 -2941 0 0 0 238494 239292 -798 -798 0 121845222 117812751 1218462 X 0 0 0 0 915695 390093 525602 0 41644035 37597369 4046666 919537 820910 98627 10314978 9163918 1151060 3132935 2796904 336031 2292998 2292998 553968 236395 317573 123776 123776 0 0 0 26953346 21862195 5091151 283392 27504 255888 2297938 1536973 760965 0 0 2639254 2635604 3650 219153 209700 9453 0 0 361063 361063 0 10523999 10523999 1309246 1309246 PATIENT CARE SUPPLIES 19202165 19202165 REPAIRS & MAINTENANCE 2780324 568034 2212290 OTHER OPERATING EXPENSES 979280 471194 508086 RENTS & LEASES - EQUIP 520898 511426 9472 -7394368 -63470 -7330898 120573612 110161222 10412390 0 1985433 693590 57068263 59134283 0 14746621 12414753 0 0 0 2107083 1777321 838914 1131788 196359337 126856431 76755102 69502906 0 0 15495514 15599989 0 81663989 95239993 250660919 255494623 16219112 23679794 109085000 107100000 107500 25829874 11914043 151133986 142801337 X 80247728 92027410 19279205 20665876 99526933 112693286 250660919 255494623 X 1271610 11894743 X false true X true false X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 2613815 2613815 91257581 44644785 46612796 100196428 80046329 20150099 2291513 2165317 126196 69502906 15599989 BOND DISCOUNTS 880699 CARE TRANSITIONS RECEIVABLE 100680 Due from AFFILIATES 78676029 DUE FROM PINEYWOODS MED DEV CO 17859446 DUE TO MEMORIAL SPECIALTY HOSPITAL -26548261 GRANT RECEIVABLE 550735 HELD IN TRUST ACCOUNTS 20585310 INSURANCE RECOVERIES - LONG TERM 658980 INVESTMENT IN PREMIER 316470 Miscellaneous Receivables 1699 PHYSICIAN CONTRACT RECEIVABLE 1513310 PREPAID BOND ISSUANCE COST 644896 95239993 BOND ISSUE DISCOUNT -1035504 CHANGE IN FAIR VALUE OF SWAP 5767939 EXECUTIVE RETIREMENT BENEFIT PAYABLE 125037 Insurance Reserve Payable 2452196 LEASES PAYABLE 2058171 PENSION PLAN PAYABLE 1466967 THIRD PARTY SETTLEMENTS 1052564 UNAMORTIZED ORIGINAL ISSUR DISCOUNT 26673 11914043 true true X true X true X true true true false true true 7363644 7363644 0.06110 11168287 10283307 884980 0.00730 18531931 10283307 8248624 0.06840 229246 229246 0.00190 229246 229246 0.00190 18761177 10283307 8477870 0.07030 false 8746947 874695 41016520 47260374 -6243854 X true true 1 1 MEMORIAL HEALTH SYSTEM OF E T 1201 W FRANK AVE LUFKIN TX 75904 X X X MEMORIAL HEALTH SYSTEM OF E T 1 true X X X X X X X X X 12 true true true X MEMORIALHEALTH.ORG X X X X X X X false false false true true 200.0000 true 250.0000 true X X X X true true X X X X false true X X X X X true X false true Part V, Line 3 - Account Input from Person Who Represent the Community Interview Methodology- Memorial Health System of East Texas provided CHC Consulting with a list of people with special knowledge of Angelina, Polk and San Augustine Counties including public health representatives, not-for-profit organization professionals, charities and other individuals who focus specifically on underrepresented groups.- From that list, 21 in depth interviews were conducted using a structured interview guide. In order to further quantify the data, a follow up survey was sent to the list of 21 with the option to forward the survey on to others.- Extensive notes were taken during each interview and then quantified based on responses, communities and populations (minority, elderly, un/underinsured, etc.)served, and priorities identified by respondents. Qualitative data from the interviews was also analyzed and reported. Survey Construction, Distribution, and Collection- An electronic survey was constructed using Survey Monkey(TM) software in order to gather opinions and input of those with special knowledge regarding the health needs and priorities of the study area.- The survey was restricted so that respondents could only complete the survey once per computer to protect the integrity of the data.- The survey was initially distributed to the 21 interviewees. Recipients were allowed to forward the survey to other stakeholders in the community. The survey remained open for approximately one month.- Responses were quantified and analyzed for reporting purposes, including any free-form comments. Interviewee list- Tina Battise, Deputy Administrator, Alabama-Coushatta Tribe- Deborah Walters, RN, Director, Case Management and Social Work, MHSET- Marilyn Kegler, Director of Nurses, Lufkin ISD- Marshall McMillan, Member, MMC-San Augustine Board of Directors, Chair, Boys and Girls Club of San Augustine- John L. Brink, RN, Nurse Manager, Cardiac Cath Lab/Cardiac Rehab, MHSET/Member of the Angelina County Heart Alliance- Dr. Sid Roberts, Radiation Oncologist- Jean Hines, SAN Augustine County Hospital District Board member- Carla Hight, Director, United Way - Angelina County- Judge Sammye Johnson, San Augustine County Judge- Brittney Johnson, Project Manager, San Augustine County- Sharon Shaw, Administrator, Angelina County and Cities Health District- Dr. Robert Fayle, Neurologist- Jerry Hathorne, Chairman, Polk County Advisory Committee- Susan Rushing, CEO, Burke Center- Letha Tullos, Regional Vice President for the East Texas Region, American Cancer Society- Carrie Yocum, Administrator, Twin Lakes Rehabilitation and Care Center- Ray Polk, Diabetes Activist and former Board Member, Memorial Medical Center- Lufkin- Phyllis Grandgeorge, Executive Director, Alcohol and Drug Abuse Council- Heather Kartye, Executive Director, Family Crisis Center of East Texas- Minerva Palomino, Social Worker, MHSET- Judge John Thompson, Judge, Polk County Part V, Line 4 - List Other Hospital Facilities that Jointly Conducted Needs Assessment The Community Health Needs Assessment was conducted to include all four (4) facilities which comprise Memorial Health System of East Texas: (1) Memorial Medical Center of East Texas (Lufkin), (2) Memorial Medical Center Livingston, (3) Memorial Medical Center San Augustine, and (4) Memorial Specialty Hospital. Part V, Line 7 - Explanation of Needs Not Addressed and Reasons Why Following the completion of thorough process designed to comply with the requirements of Patient Protection and Affordable Care Act, including research, individual interviews with stakeholders, and receipt of the survey results, a Community Health Needs Assessment Team consisting of hospital representatives and the Executive Director of the local Health District reviewed all results identified and prioritized eight (8) specific health needs. Working with the consultants from Community Hospital Consulting, the team identified actions to address those needs and developed implementation plans FOR Seven (7) of the eight (8) needs identified. The eighth identified need, increasing access to affordable dental care, was not addressed as it was deemed not a core business function of the health system. Part V, Line 17e - Other Collection Actions by Facility or Third Party Engaged THE ONLY CASE IN WHICH THE SYSTEM TAKES ANY ACTION TO COLLECT PRIOR TO DETERMINING ELIGIBILITY FOR FINANCIAL ASSISTANCE IS WHEN A PATIENT IS INJURED IN AN ACCIDENT AND A THIRD-PARTY MAY BE RESPONSIBLE. IN THAT CASE, ACCIDENT LIABILITY CASE LIENS ARE FILED AGAINST FUTURE SETTLEMENTS TO COLLECT UNPAID AMOUNTS. IF THE FUTURE SETTLEMENT DOES NOT COVER THE ENTIRE ACCOUNT BALANCE, THE REMAINING AMOUNT IS WRITTEN OFF. Part V, Line 20d - Other Billing Determination of Individuals Without Insurance PATIENTS WITHOUT INSURANCE ARE BILLED USING THE SAME RATES FOR SERVICES AS ALL OTHER PATIENTS. Part V, Line 22 - Charge Patients Amount Equal Gross Charge for Services ALL PATIENTS ARE EQUALLY CHARGED. PATIENTS WHO FILE AN APPLICATION FOR FINANCIAL ASSISTANCE ARE NOT BILLED UNLESS IT IS LATER DETERMINED THAT THEY DO NOT QUALIFY FOR ASSISTANCE. Part III, Line 2 - Methodology Used To Estimate Bad Debt Expense THE AMOUNT SHOWN ON LINE 2 WAS DETERMINED BY USING THE COSTING METHODOLOGY DERIVED FROM WORKSHEET 2 - "RATIO OF PATIENT CARE COST-TO-CHARGES". THE HOSPITAL ACCOUNTS FOR DISCOUNTS AS A DEDUCTION FROM GROSS PATIENT REVENUE AND WHERE APPLICABLE, PAYMENTS ON PATIENTS' ACCOUNTS AS DEDUCTIONS FROM UNCOLLECTIBLE (BAD DEBTS EXPENSE) ACCOUNTS. Part III, Line 3 - Methodology of Estimated Amount & Rationale for Including in Community Benefit THE AMOUNT SHOWN ON LINE 3 IS BASED ON THE HOSPITAL'S ESTIMATE THAT 10% OF THE ACCOUNTS RECORDED AS BAD DEBT EXPENSE WOULD HAVE BEEN CLASSIFIED AS CHARITY (COMMUNITY BENEFIT) HAD THE APPROPRIATE INFORMATION BEEN OBTAINED. THIS ESTIMATE IS PRIMARILY BASED ON THE FACT THAT THE MEDIAN INCOME PER HOUSEHOLD OF THE COMMUNITY IS $40,150, THAT 18.9% OF COMMUNITY RESIDENTS HAD INCOME BELOW THE POVERTY LIMIT AND THAT 49.44% OF GROSS PATIENT REVENUE WAS FROM OUTPATIENTS. REASONS WHY ADEQUATE INFORMATION WAS NOT OBTAINED INCLUDE, BUT ARE NOT LIMITED TO, THE FOLLOWING: LANGUAGE BARRIERS WITH THE SPANISH SPEAKING POPULATION A PATIENT'S LACK OF UNDERSTANDING ABOUT THE PROCESS AND WHERE TO FIND THE INFORMATION REQUESTED SOME PATIENTS ARE UNABLE OR UNWILLING TO SUPPLY SUPPORTING DOCUMENTATION, SUCH AS INCOME TAX RETURN DATA LACK OF UNDERSTANDING ON THE PATIENT'S PART ABOUT HOW A CHARITY CLASSIFICATION RATHER THAN A BAD DEBT CLASSIFICATION MAY BENEFIT THEM Part III, Line 4 - Bad Debt Expense THE HOSPITAL DOES NOT REPORT BAD DEBTS EXPENSE (UNCOLLECTIBLE ACCOUNTS) IN ACCORDANCE WITH HFMA STATEMENT NO. 15. THE HOSPITAL ACCOUNTS FOR ANY LOSSES ON ACCOUNTS RECEIVABLE USING THE ALLOWANCE METHOD. THE HOSPITAL IS A MEMBER OF A SYSTEM WITH CONSOLIDATED FINANCIAL STATEMENTS AUDITED BY BKD, LLP. THE CONSOLIDATED FINANCIAL STATEMENTS FOOTNOTE TO PATIENT ACCOUNTS RECEIVABLE INCLUDES THE FOLLOWING:"ACCOUNTS RECEIVABLE ARE REDUCED BY AN ALLOWANCE FOR DOUBTFUL ACCOUNTS. IN EVALUATING THE COLLECTABILITY OF ACCOUNTS RECEIVABLE, THE SYSTEM ANALYZES ITS PAST HISTORY AND IDENTIFIES TRENDS FOR EACH OF ITS MAJOR PAYER SOURCES OF REVENUE TO ESTIMATE THE APPROPRIATE ALLOWANCE FOR DOUBTFUL ACCOUNTS AND PROVISION FOR UNCOLLECTIBLE ACCOUNTS. MANAGEMENT REGULARLY REVIEWS DATA ABOUT THESE MAJOR PAYER SOURCES OF REVENUE IN EVALUATING THE SUFFICIENCY OF THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS." Part III, Line 8 - Explanation Of Shortfall As Community Benefit THE HOSPITAL BELIEVES THAT THE SHORTFALL SHOWN ON LINE 7 SHOULD BE TREATED AS A COMMUNITY BENEFIT. IN THE HOSPITAL'S ANNUAL COMMUNITY BENEFIT REPORT FILED WITH THE STATE OF TEXAS, THE UNREIMBURSED COST APPLICABLE TO MEDICARE PATIENTS IS A PART OF THE DETERMINATION THAT A HOSPITAL MEETS THE STATE'S REQUIREMENT THAT THE COST OF PROVIDING CHARITY CARE IS EQUAL TO AT LEAST 5% OF NET PATIENT SERVICE REVENUE. IRS REVENUE RULING 69-545, WHICH ESTABLISHED THE COMMUNITY BENEFIT STANDARD FOR NON-PROFIT HOSPITALS, STATES THAT IF A HOSPITAL SERVES PATIENTS WITH GOVERNMENTAL HEALTH BENEFITS, INCLUDING MEDICARE, THEN THIS IS AN INDICATION THAT THE HOSPITAL OPERATES TO PROMOTE THE HEALTH OF THE COMMUNITY.THE SHORTFALL AMOUNT WAS DETERMINED BY USING THE COST INFORMATION SHOWN ON THE 2013 "COST REPORT" FILED WITH THE CENTERS OF MEDICARE AND MEDICAID SERVICES (CMS). Part III, Line 9b - Provisions On Collection Practices For Qualified Patients AS SOON AS SUFFICIENT INFORMATION IS AVAILABLE CONCERNING THE PATIENT'S FINANCIAL RESOURCES AND ELIGIBILITY FOR GOVERNMENT ASSISTANCE, A DETERMINATION IS MADE CONCERNING THE PATIENT'S ELIGIBILITY FOR CHARITY. NO COLLECTION EFFORTS ARE PURSUED ON A CHARITY ACCOUNT AFTER SUCH DETERMINATION IS MADE. Part VI - Needs Assessment IN ADDITION TO THE COMMUNITY HEALTH NEEDS ASSESSMENT REQUIRED BY LAW, THE HOSPITAL HAS A BOARD OF DIRECTORS MADE UP OF COMMUNITY MEMBERS WHO PROVIDE INPUT ABOUT NEEDS IN THE COMMUNITY. OUR PHYSICIANS HAVE NUMEROUS COMMITTEES AT THE HOSPITAL, IN PART TO KEEP US INFORMED ABOUT COMMUNITY MEDICAL NEEDS. Part VI - Patient Education of Eligibility for Assistance THE HOSPITAL INFORMS AND EDUCATES PATIENTS BY PROVIDING PATIENT HANDBOOKS TO INPATIENT AND DAY SURGERY PATIENTS THAT CONTAIN INFORMATION FOR UNINSURED PATIENTS AS WELL AS FINANCIAL COUNSELOR INFORMATION. PATIENT BILLS HAVE INFORMATION AND WORDING IN THEM WHICH INSTRUCTS THE PATIENT TO CALL THE BUSINESS OFFICE FOR POSSIBLE DISCOUNTS FOR UNINSURED PATIENTS. WE ALSO PROVIDE LITERATURE FOR THE PUBLIC TITLED, "NEED HELP WITH HOSPITAL BILLS?" THAT LISTS POSSIBLE PROGRAMS AND FINANCIAL COUNSELOR HOURS OF OPERATION.THE HOSPITAL HAS SIGNS IN THE EMERGENCY DEPARTMENT AND ALL OUTPATIENT REGISTRATION AREAS NOTIFYING PATIENTS THAT FINANCIAL ASSISTANCE IS AVAILABLE AND GIVES INSTRUCTIONS FOR CONTACTING FINANCIAL COUNSELORS.WE ALSO HAVE A THIRD PARTY ELIGIBILITY CONTRACTOR WHOSE ROLE IS TO SCREEN SELF PAY PATIENTS AND QUALIFY THEM FOR GOVERNMENT PROGRAMS AND TO FORWARD POTENTIAL CHARITY PATIENTS TO OUR FINANCIAL COUNSELORS. THE HOSPITAL HAS AN ON-SITE MEDICAID ELIGIBILITY SPECIALIST TO HELP PATIENTS COMPLETE PAPERWORK AND EXPEDITE APPLICATION PROCESSING. Part VI - Community Information ANGELINA COUNTY HAS AN APPROXIMATE POPULATION OF 87,441 AS OF 2013 AND IS A FEDERALLY DESIGNATED HEALTH PROFESSIONAL SHORTAGE AREA. THE POPULATION MEDIAN INCOME PER HOUSEHOLD, AS OF 2012, IS $40,150; AS OF 2012, 18.9% OF PERSONS IN ANGELINA COUNTY ARE BELOW THE POVERTY LEVEL. APPROXIMATELY 11% OF OUR PATIENT BASE IS UNINSURED, APPROXIMATELY 18% OF OUR PATIENT BASE IS MEDICAID RECIPIENTS, AND APPROXIMATELY 50% OF OUR PATIENT BASE IS MEDICARE RECIPIENTS. THE HOSPITAL IS ONE OF TWO ACUTE CARE FACILITIES IN ANGELINA COUNTY, AND IS THE ONLY NOT-FOR-PROFIT HOSPITAL WHICH DIRECTLY SERVES OUR COMMUNITY.WITH THE CITY OF LUFKIN BEING THE COUNTY SEAT, WE SERVE AS THE MEDICAL AND RETAIL HUB OF ANGELINA AND SURROUNDING COUNTIES. WITH PROXIMITY TO TWO NATIONAL FORESTS AND LAKE SAM RAYBURN, WHICH IS THE LARGEST LAKE COMPLETELY IN TEXAS, THE HOSPITAL SERVES A LARGE POPULATION OF RETIREES AND RECREATIONAL LAND USERS. ANGELINA COUNTY IS HOME TO ANGELINA COLLEGE, A VETERAN'S ADMININSTRATION HEALTH CLINIC, THREE MUSEUMS, AND A ZOO. Part VI - Explanation Of How Organization Furthers Its Exempt Purpose THE HOSPITAL PROMOTES THE HEALTH OF THE COMMUNITY THROUGH PARTICIPATION IN DIABETIC, CARDIOVASCULAR AND STROKE, ORTHOPEDIC, CANCER THERAPY AND NUTRITION EDUCATION. THE HOSPITAL PARTICIPATES IN HEALTH FAIRS AT THE HOSPITAL, DIABETES EXPO, SENIOR LIFESTYLE EXPO, WOMEN'S LIFESTYLE EXPO, AND AT MANY LOCAL BUSINESSES. ADDITIONALLY, THE HOSPITAL IS ACTIVE WITH THE ANGELINA COUNTY BUSINESS COALITION THAT PROMOTES A DRUG FREE WORKPLACE AND EDUCATES THE COMMUNITY ON HOW TO LEAD A HEALTHIER LIFE. WE ALSO PROVIDE SPEAKERS TO COMMUNITY GROUPS AS REQUESTED. THE HOSPITAL PARTNERS WITH THE FOLLOWING COMMUNITY GROUPS: CANCER SUPPORT GROUPS, DIABETES SUPPORT GROUP, RELAY FOR LIFE, RED CROSS, ANGELINA COUNTY HEART ASSOCIATION, BLOOD CENTER OF EAST TEXAS, ANGELINA COLLEGE, STEPHEN F. AUSTIN STATE UNIVERSITY, AND TYLER COUNTY NURSING PROGRAMS, AND WITH AREA HIGH SCHOOLS' HEALTH CAREERS PROGRAMS WHICH ALLOW HIGH SCHOOL STUDENTS TO PARTICIPATE IN CLINICAL STUDIES AT THE HOSPITAL. WE HOST A MONTHLY WOMEN'S POWER LUNCH TO PROVIDE MEDICAL EDUCATION TO THE COMMUNITY AND HOST THE ANNUAL POWER OF PINK BANQUET TO EDUCATE WOMEN AND TO CELEBRATE CANCER SURVIVORS. HOSPICE IN THE PINES, WHICH IS A NOT-FOR-PROFIT ORGANIZATION, HAS AN INPATIENT FACILITY IN OUR HOSPITAL. WE HAVE A CLOSE PARTNERSHIP WITH THE ANGELINA COUNTY AND CITIES HEALTH DISTRICT WHICH MEETS THE MEDICAL NEEDS OF UNDERSERVED PEOPLE IN OUR COMMUNITY AND PROVIDE FUNDING FOR THE DIRECTOR'S SALARY. THE HOSPITAL IS A MEMBER OF THE ANGELINA COUNTY EMERGENCY PLANNING COMMITTEE IN ORDER TO PLAN FOR MEETING MEDICAL NEEDS IN COMMUNITY EMERGENCIES. WE ALSO FILM HEALTHY COOKING CLASSES WHICH AIR ON A LOCAL TV CHANNEL AND PROVIDE HEART EDUCATION CLASSES. THE HOSPITAL'S WEB SITE OFFERS A MEDICAL LIBRARY TO VISITORS AND A HOST OF VIDEOS THAT DETAIL MEDICAL PROCEDURES. THE HOSPITAL OFFERS EDUCATION TO THE PUBLIC THROUGH SOCIAL NETWORKS SUCH AS YOU TUBE, FACEBOOK AND TWITTER. Part VI - Affilated Health Care System Roles and Promotion IN ADDITION TO THE CUSTOMIZED OUTREACH IN EACH INDIVIDUAL COMMUNITY THE CORPORATE STRUCTURE PROVIDES EACH HOSPITAL IN ANGELINA, POLK AND SAN AUGUSTINE COUNTIES WITH IMPROVED MEDICAL TECHNOLOGY THROUGH A COMMON COMPUTER SYSTEM, COMMUNICATION TO ALL COMMUNITIES THROUGH THE CORPORATE MARKETING DEPARTMENT, AND COORDINATION OF MEDICAL TRAINING FOR ALL CLINICAL EMPLOYEES. MEMORIAL HEALTH SYSTEM OF EAST TEXAS IS ABLE TO ACCEPT TRANSFERS OF MORE MEDICALLY COMPLEX CASES FROM OTHER AFFILIATED HOSPITALS. Part VI - States Where Community Benefit Report Filed TX Part VI - Additional Information PART I, LINE 7 - THE HOSPITAL USED A COST-TO-CHARGE RATIO TO CALCULATE THE AMOUNTS REPORTED IN THIS TABLE. THIS COST-TO-CHARGE RATIO WAS DERIVED FROM WORKSHEET 2- "RATIO OF PATIENT CARE COST-TO-CHARGES".PART I, LINE 7, COLUMN (F):IN ACCORDANCE WITH THE INSTRUCTIONS,COMMUNITY BENEFITS EXPENSE TOTALING $229,246 INCLUDED IN PART IX, LINE 25, COLUMN A AND $1,214,206 IN REVENUE FROM NON PATIENT CARE ACTIVITIES INCLUDED IN PART VIII, LINE 12, COLUMN A HAVE BEEN REMOVED FROM THE DENOMINATOR IN THE CALCULATION OF THE PERCENTAGES SHOWN IN COLUMN (F) FOR LINES 7 (A) THRU 7 (K). AS THE RESULT OF THE FOREGOING, THE CALCULATION OF THE DENOMINATOR AMOUNT IS SHOWN BELOW: TOTAL FUNCTIONAL EXPENSES FROM PART IX, LINE 25, COLUMN A $120,573,612 LESS: COMMUNITY BENEFITS EXPENSE ( 229,246) CAFETERIA REVENUE ( 555,037) COPY REVENUE - MEDICAL RECORDS ( 86,156) RENTAL INCOME ( 240,720) OTHER REVENUE ( 332,293) ADJUSTED PATIENT CARE COSTS $119,130,160 X true true X X false false false false false true false false false false DAVID HEARNE GENERAL COUNSEL 185531 20535 712 7097 213875 DONALD L MORRIS VP HUMAN RESOUR 151296 47891 81 1512 12817 213597 KATHY GRIFFIN DIRECTOR OF PHARMACY 132695 10164 16680 4401 7475 171415 KRISTI GAY VP/CFO 126078 24030 259 4152 14649 169168 LESLIE LEACH ASST COO 151026 20250 920 7088 5338 184622 SANYUDE SANYUDE PHARMACIST 104041 32968 3980 17342 158331 THOMAS A BROSE ASST DIR - PHARM 127470 15205 6489 16272 165436 Part I, Line 1a: Relevant information in regards to selections on 1a. IN 2013, THE ORGANIZATION PAID MONTHLY COUNTRY CLUB DUES FOR THE CEO AND THE VP OF HUMAN RESOURCES. THE AMOUNT OF DUES WAS $7,092. A LUFKIN HEALTH FACILITIES 521441564 549802BN5 2007-10-17 42372303 HOSPITAL BUILDINGS & EQUIPMENT, BOND RESERVE FUND false false false B LUFKIN HEALTH FACILITIES DEVELOPMENT CORPORATION 521441564 549802BY1 2009-11-19 70186034 REFUND 2005A & 2005B BONDS/HOSP BLDGS/EQUIP false false false A 1930000 42372303 4100766 638477 37633060 false false true true B 4875000 70186034 5936406 1363916 5004694 57881018 true false true true A false false true false false false false false B false true true false false false false false A false true false true MBIA Inc 29.3000 true false false B false true false false false false A false B false Part VI A PORTION ($57,881,018) OF THE BONDS ISSUED ON 11/19/2009 WERE USED TO RETIRE SERIES 2005 AND 2005A VARIABLE RATE DEMAND REVENUE BONDS. THE ORGANIZATION HAD ENTERED INTO TWO INTEREST RATE SWAPS IN CONJUNCTION WITH THE ISSUANCE OF THE SERIES 2005 AND 2005A REVENUE BONDS. THESE SWAPS WERE ORIGINALLY DESIGNATED AS CASH FLOW HEDGES. THE SWAPS FAILED TO QUALIFY AS CASH FLOW HEDGES UPON REPAYMENT OF THE 2005 AND 2005A REVENUE BONDS DURING 2009. CONSEQUENTLY, ALL PRIOR CHANGES IN THE SWAPS' FAIR VALUE THAT HAD BEEN DEEMED EFFECTIVE, TOTALING $8,499,134, WERE RECLASSIFIED INTO DEFICIENCY OF REVENUES OVER EXPENSES FOR 2009. THE SWAPS REMAIN IN EFFECT SUBSEQUENT TO THE RETIREMENT OF 2005 AND 2005A BONDS. AT DECEMBER 31, 2013 THE FAIR VALUE OF INTEREST RATE SWAP AGREEMENTS TOTALING $5,767,939 IS INCLUDED IN LIABILITIES ON THE ORGANIZATION'S BALANCE SHEET.PART III - PRIVATE BUSINESS USE, LINE 9 - BOND ISSUES A & B:THE ORGANIZATION IS IN THE PROCESS OF ESTABLISHING WRITTEN PROCEDURES TO ENSURE THAT NONQUALIFIED BONDS OF THE ISSUE, IF THERE ARE ANY, ARE REMEDIATED IN ACCORDANCE WITH THE REQUIREMENTS UNDER REGULATIONS SECTIONS 1.141-12 AND 1.145-2. PART IV - ARBITRAGE - LINE 2C - BOND ISSUE A:THE DATE THE REBATE COMPUTATION WAS PERFORMED - NOVEMBER 26, 2012PART IV - ARBITRAGE - LINE 7 - BOND ISSUES A & B: THE ORGANIZATION IS IN THE PROCESS OF ESTABLISHING WRITTEN PROCEDURES TO MONITOR THE REQUIREMENTS OF SECTION 148.PART V - PROCEDURES TO UNDERTAKE CORRECTIVE ACTION - BOND ISSUES A & B:THE ORGANIZATION IS IN THE PROCESS OF ESTABLISHING WRITTEN PROCEDURES TO ENSURE THAT VIOLATIONS OF FEDERAL TAX REQUIREMENTS ARE TIMELY IDENTIFIED AND CORRECTED THROUGH THE VOLUNTARY CLOSING AGREEMENT PROGRAM IF SELF-REMEDIATION IS NOT AVAILABLE UNDER APPLICABLE REGULATIONS. RAY BALDWIN DIRECTOR 363499 COMMERCIAL INS BROKER false EDD TERRILL III TRUSTEE 332699 SECURITY SERVICES false DANIEL FUENTES D O DIRECTOR 365000 MEDICAL SERVICES false SID ROBERTS M D DIRECTOR 300388 MEDICAL SERVICES false RAVINDER BACHIREDDY M D DIRECTOR 279759 MEDICAL SERVICES false Schedule L, Part V Supplemental Information RAY BALDWIN HAS AN OWNERSHIP INTEREST IN SWAIN AND BALDWIN INSURANCE TO WHICH THE ORGANIZATION PAID $363,499 FOR INSURANCE COVERAGE.EDD TERRILL, III HAS AN OWNERSIP INTEREST IN SECURITY SERVICES OF LUFKIN TO WHICH THE ORGANIZATION PAID $332,699 FOR SECURITY SERVICES.DANIEL FUENTES, D. O. HAS A PARTNERSHIP INTEREST IN TEXAS SPECIALIST CENTER, PLLC TO WHICH THE ORGANIZATION PAID $365,000 FOR MEDICAL SERVICESSID ROBERTS, M. D. HAS AN OWNERSHIP INTEREST IN ANGELINA RADIATION ONCOLOGY ASSOCIATES TO WHICH THE ORGANIZATION PAID $300,388 FOR MEDICAL SERVICESRAVINDER BACHIREDDY, M. D. HAS AN OWNERSHIP INTEREST IN THE HEART INSTITUTE OF EAST TEXAS TO WHICH THE ORGANIZATION PAID $279,759 FOR MEDICAL SERVICES. Form 990, Part VI, Line 2: Description of Business or Family Relationship of Officers, Directors, Et BOARD MEMBER RELATIONSHIPS: GEORGE H. HENDERSON, III AND H.J. SHANDS, III - BUSINESS RELATIONSHIP CARL RAY POLK AND GEORGE H. HENDERSON, III - BUSINESS RELATIONSHIP GIBSON FRIESEN AND RONA FRIESEN - FAMILY RELATIONSHIP Form 990, Part VI, Line 3: Description of Delegated Duties to Management Company IN AUGUST 2011, THE SYSTEM ENGAGED COMMUNITY HOSPITAL CONSULTING, INC. (CHC) FOR CERTAIN MANAGEMENT SERVICES INCLUDING RESPONSIBILITY FOR OVERSIGHT AND MANAGEMENT OF DAY-TO-DAY OPERATIONS OF THE SYSTEM AND ITS HOSPITALS, AND TO MEMORIAL SPECIALTY HOSPITAL TO WHICH IT PROVIDES ADMINISTRATIVE OVERSIGHT AND SERVICES BY CONTRACT. THE CONTRACT AUTHORIZES PLACEMENT OF COMMUNITY HOSPITAL CONSULTING EMPLOYEES OR CONTRACTORS AS SUCH OF THE SENIOR AND OTHER MANAGEMENT PERSONNEL AS COMMUNITY HOSPITAL CONSULTING, INC. DEEMS APPROPRIATE SUBJECT TO THE OVERSIGHT OF THE SYSTEM BOARD OF DIRECTORS. IN 2013, THE FOLLOWING SENIOR PERSONNEL WERE EMPLOYEES OF CHC: CHIEF EXECUTIVE OFFICER CHIEF OPERATING OFFICER/VP CLINICAL OPERATIONS CHIEF FINANCIAL OFFICER Form 990, Part VI, Line 7a: How Members or Shareholders Elect Governing Body Nominations for election to the Board of Trustees may be made by any Member, the Board of Directors, or by any Trustee. Nominations for election to the Board of Trustees may be made by the Board of Directors or by any Trustee. In each case, nominations other than those made on behalf of the Board of Directors must be in writing and mailed or delivered to the Chair of the Board of Directors not less than10 days, nor more than 30 days, prior to any meeting called for election of Directors or Trustees. Form 990, Part VI, Line 7b: Describe Decisions of Governing Body Approval by Members or Shareholders The Board of Trustees has authority to amend the Articles of Incorporation, to elect new and additional Directors, and to approve the ultimate disposition of assets of the corporation on dissolution in accordance with the provisions of the Articles of Incorporation. Form 990, Part VI, Line 11b: Form 990 Review Process THE BOARD OF DIRECTORS, BY RESOLUTION, DETERMINES WHETHER THE FORM 990 WILL BE REVIEWED BY ALL DIRECTORS, AN EXISTING COMMITTEE, OR A SPECIAL COMMITTEE APPOINTED FOR SUCH PURPOSE PRIOR TO FILING. ONCE THE RETURN IS COMPLETED, IT IS PROVIDED TO THE DIRECTORS OF THE COMMITTEE RESPONSIBLE FOR REVIEWING, EITHER INDIVIDUALLY OR IN A JOINT SESSION. EMPLOYEES OF THE CORPORATION RESPONSIBLE FOR FILING ARE AVAILABLE TO RESPOND TO QUESTIONS OR PROVIDE BACKGROUND AS NEEDED. ONCE THE DIRECTORS RESPONSIBLE FOR REVIEWING THE FORM 990 ARE SATISFIED IT IS COMPLETE, THE RETURN IS FILED. SUBSEQUENTLY, THE RETURN IS MADE AVAILABLE TO ALL DIRECTORS FOR THEIR REVIEW. Form 990, Part VI, Line 12c: Explanation of Monitoring and Enforcement of Conflicts ANNUALLY, EACH MEMBER OF THE BOARD AND OFFICER OF THE CORPORATION IS PROVIDED A COPY OF THE CONFLICTS OF INTEREST POLICY, A STATEMENT ACKNOWLEDGING ITS RECEIPT, AND DISCLOSURE OF OUTSIDE INTERESTS AND ACTIVITIES FORM. THE POLICY IS DISCUSSED WITH THE BOARD AND EACH OFFICER. EACH BOARD MEMBER AND OFFICER COMPLETES THE DISCLOSURE OF OUTSIDE INTERESTS AND ACTIVITIES FORM AND RETURNS THEM TO THE CHIEF EXECUTIVE OFFICER (CEO). THE CEO AND THE SYSTEM'S GENERAL COUNSEL REVIEW EACH STATEMENT ACKNOWLEDGING RECEIPT OF THE POLICY AND THE DISCLOSURES TO FAMILIARIZE THEMSELVES WITH POTENTIAL CONFLICTS. Form 990, Part VI, Line 15b: Compensation Review and Approval Process for Officers and Key Employees The Executive Committee of the Board of Directors is responsible for establishing compensation for Executives and key management employees of corporation. As a part of the management services provided corporation pursuant to the Management Agreement referenced in response to Part VI, Line 3, Community Hospital Consulting, Inc. (CHC) assists the Executive Committee in its review and evaluation of compensation for its Executives, and its key management employees, some of which are employees of CHC seated with corporation. To set compensation for the Chief Executive Officer, CHC establishes an appropriate salary using its internal compensation policy and then engages an independent nationally known compensation consultant to perform a competitive market analysis considering the job description, scope of responsibility and current compensation of the Chief Executive Officer. The consultant recommends appropriate comparison data, and using data from four major compensation surveys, provides the data and makes recommendations based on the articulated compensation policy. Those recommendations and the market data on which they are based are then forwarded to the Executive Committee of the Board which establishes an appropriate compensation level for the Chief Executive Officer. Other key employees compensation is set in much the same manner using information related to their positions and data developed with the assistance of CHC from major compensation surveys, passed on to the Chief Executive Officer and the Executive Committee of the Board, which establishes compensation levels as appropriate. Form 990, Part VI, Line 19: Other Organization Documents Publicly Available ORGANIZATIONAL DOCUMENTS, APPLICATIONS FOR EXEMPTION AND FINANCIAL STATEMENTS OF THE CORPORATION ARE AVAILABLE FOR INSPECTION AND COPYING IN THE OFFICE OF THE CHIEF FINANCIAL OFFICER LOCATED AT 1201 W. FRANK AVENUE, LUFKIN, TX 75904 ON ORAL OR WRITTEN REQUEST DURING REGULAR BUSINESS HOURS, OR SUCH OTHER TIMES AS ARE SCHEDULED DIRECTLY WITH THE CHIEF FINANCIAL OFFICER. Other Changes In Net Assets Or Fund Balances - Other Increases ASSETS RELEASED FROM RESTRICTIONS USED FOR PURCHASE OF P & E = $8055 Other Changes In Net Assets Or Fund Balances - Other Increases CHANGE IN DEFINED PENSION PLAN GAINS & LOSSES = $10500016 Other Changes In Net Assets Or Fund Balances - Other Increases CONTRIBUTIONS RECEIVED - RESTRICTED FUND = $59265 Other Changes In Net Assets Or Fund Balances - Other Increases INTEREST INCOME - RESTRICTED FUND = $46 Other Changes In Net Assets Or Fund Balances - Other Increases NET INCREASE IN BENEFICIAL INTEREST IN TRUST = $2970917 Other Changes In Net Assets Or Fund Balances - Other Decreases NET RESTRICTED FUND ASSETS RELEASED FROM RESTRICTIONS = -$1643556 PATIENT SERVICE REVENUE RECONCILIATION: PATIENT SERVICE REVENUE SHOWN ON FORM 990, PART VIII, LINE 2A WAS DETERMINED AS FOLLOWS: GROSS CHARGES TO PATIENTS $755,812,092 LESS: MEDICARE CONTRACTUAL ADJUSTMENTS (268,537,679) MEDICAID CONTRACTUAL ADJUSTMENTS ( 20,956,484) INSURED/MANAGE CARE ADJUSTMENTS (229,973,636) OTHER DISCOUNTS ( 19,320,049)UNCOLLECTIBLE ACCOUNTS ( 55,500,934) CHARITY DEDUCTIONS ( 46,723,632) PATIENT SERVICE REVENUE 114,799,678 MEMORIAL MEDICAL CENTER - LIVINGSTON 1717 HWY 59 BYPASS LIVINGSTON TX 77351 760436439 LICENSED HOSPITAL TX 501(C)(3) (3) HOSPITAL MEMORIAL HEALTH SYSTEM OF EAST TEXAS false MEMORIAL MEDICAL CENTER - SAN AUGUSTINE 511 HOSPITAL ST SAN AUGUSTINE TX 75972 752663904 LICENSED HOSPITAL TX 501(C)(3) (3) HOSPITAL MEMORIAL HEALTH SYSTEM OF EAST TEXAS false LUFKIN VISION ACQUISITIONS 1201 W FRANK AVE LUFKIN TX 75904 820563768 PROVIDES OFFICE SPACE FOR HEALTH CARE PROFESSIONALS TX 501(C)(3) 11C MEMORIAL HEALTH SYSTEM OF EAST TEXAS false MEMORIAL MULTISPECIALTY ASSOCIATES 1201 W FRANK AVE LUFKIN TX 75904 752721155 PHYSICIAN OFFICES TX 501(C)(3) 11 - TYPE III MEMORIAL HEALTH SYSTEM OF EAST TEXAS false MHI CLINICAL SERVICES 1201 W FRANK AVE LUFKIN TX 75904 461967952 MEDICAL SERVICES TX MHSET C -759323 473364 1.00000 false MEMORIAL CV SERVICE LINE MANAGEMENT 1201 W FRANK AVE LUFKIN TX 75904 463622849 MEDICAL SERVICES TX MHSET C 1.00000 false false false false false false false false false false true true true false false false false true false false MEMORIAL MEDICAL CENTER - LIVINGSTON j 6498 COST MEMORIAL MEDICAL CENTER - LIVINGSTON l 250082 COST MEMORIAL MEDICAL CENTER - LIVINGSTON q 4327711 COST MEMORIAL MEDICAL CENTER - SAN AUGUSTINE k 8964 AMOUNT RECEIVED MEMORIAL MEDICAL CENTER - SAN AUGUSTINE l 38289 COST MEMORIAL MEDICAL CENTER - SAN AUGUSTINE q 84592 COST MEMORIAL MULTISPECIALTY ASSOCIATES q 1248996 COST