2014-05-15T13:00:37-05:00 2013-06-30 ERNST & YOUNG US LLP 1101 NEW YORK AVE NW WASHINGTON DC 20005 990 2012-07-01 520591612 Frederick Memorial Hospital Inc % MICHELLE K MAHAN FRED 2405663300 400 WEST SEVENTH STREET Suite FREDERICK MD 21701 Michelle K Mahan 2014-05-15 2023277097 2012 2015-11-30 17:44:51Z Thomas A Kleinhanzl 400 WEST SEVENTH STREET FREDERICK MD 21701 376282036 false X WWW.FMH.ORG X 1897 MD TO CONTRIBUTE TO THE HEALTH AND WELL-BEING OF AREA RESIDENTS BY PROVIDING QUALITY HEALTHCARE IN A CARING, COST EFFICIENT, SAFE AND CONVENIENT MANNER. 19 14 3108 759 25623 1544404 1286310 349642033 339333256 5813060 4654109 -454399 -463760 356545098 344809915 100000 100000 0 0 178059458 180677969 0 48000 1111406 171529894 159527803 349689352 340353772 6855746 4456143 415327620 443861280 253045947 256998009 162281673 186863271 X The mission of Frederick Memorial Hospital, Inc. is to contribute to the health and well-being of area residents by providing quality health care in a caring, cost efficient, safe and convenient manner through a coordinated program of prevention, diagnosis and treatment, rehabilitation, and support. false false 36970219 100000 54558152 In FY2013, Frederick Memorial Hospital's Inpatient Medical-Surgical Departments provided quality, patient-centered care, regardless of ability to pay, to approximately 23,057 inpatients and observation patients. Major Medical and Surgical Services include Cardiology, Congestive Heart Failure, Post-Cardiac Catheterization, Center for Chest Pain, Hemodialysis, Peritoneal Dialysis, Neurology, Neurosurgery, Pulmonology, Oncology, Orthopedics, General Medicine and Surgical Care. Inpatient care is supported by a team of Board-Certified Physician Hospitalists. The FMH Joint Works Program with its UnitedHealth Premium Total Joint Replacement Specialty Center Designation in recognition of quality care, serving approximately 2000 patients in 2013. In addition, FMH is designated as a Primary Stroke Center by the Maryland Institute of Emergency Medical Service Systems (MIEMSS) and is recognized with the Stroke Center Gold Performance Award by the American Heart Association. In addition to the program services expense listed here, FMH incurred $39.0 million of general and administrative expenses in meeting the health needs of our primary service area. 35707346 0 59686299 Frederick Memorial Hospital's Perioperative Services provided high quality care to 13,163 surgical and endoscopy patients in fiscal year 2013. Procedures were performed in our state of the art facility which includes a dedicated imaging room for vascular and other procedures. We have participated in the SCIP Quality improvement project for continual improvements in care following evidence based medicine. We tracked our patient satisfaction through Press Ganey to benchmark our results to the national data base. In addition to the program services expense listed here, FMH incurred $39.0 million of general and administrative expenses in meeting the health needs of our primary service area. 24147134 0 32698590 FMH's Oncology Program provides integrated, multidisciplinary, patient centered cancer care for patients with malignancies, regardless of ability to pay. Services include medical oncology consultations, chemotherapy, radiation oncology consultations and treatment and surgical oncology consultations and treatment. We offer coordinated multidisciplinary clinics for patients with cancers of the lung, breast and prostate. Integrated palliative care and hospice services, both inpatient and outpatient are available for patients with advanced malignancies. Support services include nutrition, patient navigation and social work, as well as other forms of psychosocial support. For those with additional financial need, financial counselors and a patient assistance fund are available. The program treats approximately 850 newly diagnosed cancers per year and also has a community outreach program that includes education and screening. This past year, educational seminars were held for the community on breast and prostate cancer, as well as a community screening event for prostate cancer The program is accredited by the American College of Surgeons Commission on Cancer and in 2013, received an award of exceptional achievement from the commission, meriting commendation in all 8 of the 8 assessed competencies. In addition to the program services expense listed here, FMH incurred $39.0 million of general and administrative expenses in meeting the health needs of our primary service area. 203410946 0 192390215 300235645 true true false true false false false false false true true false true false true false false true false false true false false true false false true true true false true true false false false false false true false false false false true false false false true true true true false false true 320 0 true 3108 true true true false false false false false false false false false X 19 14 true false false false true true true true true false true true true true true true true true true true true true MD X MICHELLE K MAHAN 2405663350 400 WEST SEVENTH STREET FREDERICK MD 21701 Marvin Ausherman End 93012 2.0 0.0 X 0 0 0 Gregory P Dormitzer 2.0 0.0 X 0 0 0 Bernard Gouin 2.0 0.0 X 0 0 0 Theodore Luck 2.0 0.0 X 0 0 0 J Frederick Manning 2.0 0.0 X 0 0 0 John Molesworth DO 2.0 0.0 X 563 0 0 Greg Powell PhD End 93012 2.0 0.0 X X 0 0 0 P Gregory Rausch MD 6.0 0.0 X 24875 0 0 E James Reinsch 2.0 0.0 X X 0 0 0 Adriana Roa BSN End 9112 2.0 0.0 X 0 0 0 Anne Herbert Rollins 6.0 0.0 X X 0 0 0 Neil Waravdekar MD 10.0 0.0 X X 71058 0 0 Rev Roger W Wilmer Jr 2.0 0.0 X 0 0 0 Gerald Winnan MD 4.0 0.0 X 0 0 0 Adriane Wodey 2.0 0.0 X X 0 0 0 Shawn Wolf 2.0 0.0 X 0 0 0 Ravi Yalamanchili 6.0 0.0 X 61000 0 0 Cornelius Fay Beg 10112 2.0 0.0 X 0 0 0 Terrence McPherson Beg 10112 2.0 0.0 X 0 0 0 Laura Melia Beg 10112 2.0 0.0 X 0 0 0 Donna Tisdale Beg 10112 2.0 0.0 X 0 0 0 Thomas A Kleinhanzl 40.0 1.0 X X 744431 0 174978 Michelle K Mahan 40.0 1.0 X 390114 0 84741 John R Verbus 40.0 4.0 X 388827 0 58898 Rachel I Mandel 20.0 0.0 X 113677 0 5532 Mary B Mann 40.0 0.0 X 150250 0 11331 Terry P O'Malley 40.0 0.0 X 229083 0 44589 David JQuirke 40.0 0.0 X 285698 0 43580 Craig F Rosendale 40.0 0.0 X 193198 0 29786 Donald R Schilling 40.0 0.0 X 214620 0 18844 Lucy A Shamash 40.0 0.0 X 250964 0 24588 Jennifer G Teeter 40.0 0.0 X 171614 0 23482 Shirley B Thompson 20.0 0.0 X 85078 0 4002 Jim R Williams 40.0 0.0 X 210723 0 30749 Manual A Casiano 40.0 0.0 X 380086 0 67816 Cheryl L Cioffi 40.0 0.0 X 118407 0 23153 Kenneth R Coffey II 40.0 0.0 X 194874 0 32797 James S Grissom 20.0 0.0 X 134866 0 9135 Hannah R Jacobs 40.0 0.0 X 178012 0 10619 Rose A Labriola 20.0 0.0 X 306121 0 33775 Brian M O'Connor 40.0 0.0 X 504710 0 35264 Mark S Soberman 40.0 0.0 X 492364 0 20893 Paul N Chomiak 40.0 0.0 X 495522 0 25737 Elhamy D Eskander 40.0 0.0 X 500942 0 34893 Mark G Goldstein 40.0 2.0 X 505612 0 25664 7397289 0 874846 161 false true false TXTEAM REHAB INC 4625 East Stop 11 Road Indianapolis IN 46237 Rehab Services 7262394 PRIME DOC OF FREDERICK PA PO Box 7568 Asheville NC 28802 Physician services 2020352 QUEST DIAGNOSTICS 12436 Collections Center Drive CHICAGO IL 606932436 Diagnostic services 1825898 ALLIANCE RADIOSURGERY LLC PO Box 6600 Newport Beach CA 92658 Medical services 1528692 SLEEPMED DIGITRACE CARE SERVICES 200 Corporate Place Peabody MA 11960 Medical services 1277650 24 0 1286310 40415 1286310 Inpatient Revenue 624110 159639475 159639475 0 0 Outpatient Revenue 621410 170771062 170771062 0 0 Transcription Services 561110 305751 305751 0 0 Group Purchasing -Premier 525990 749442 723819 25623 0 Hitech and Medical Home 621610 3915792 3915792 0 0 3951734 3951734 0 339333256 2995975 2995975 0 0 535623 535623 0 535623 535623 33130255 31458524 13597 1671731 -13597 1658134 1658134 0 0 0 0 Cafeteria and Coffee Shop 722511 1269954 0 0 1269954 Mt. 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WALK-IN CLINIC Schedule H, Part I SUPPLEMENTAL INFORMATION FOR THE LAST 30 YEARS, MARYLAND HOSPITALS HAVE MET THEIR COMMUNITY BENEFIT OBLIGATIONS IN A UNIQUE MANNER THAT BUILDS THE COSTS OF UNCOMPENSATED CARE (CHARITY CARE AND PATIENT BAD DEBT) AND GRADUATE MEDICAL EDUCATION INTO THE RATES THAT HOSPITALS ARE REIMBURSED BY ALL PAYORS. THE SYSTEM IS BASED IN FEDERAL AND STATE LAW AND BENEFITS ALL MARYLAND RESIDENTS, INCLUDING THOSE IN NEED OF FINANCIAL ASSISTANCE TO PAY THEIR HOSPITAL BILLS. MARYLAND IS THE ONLY STATE IN WHICH ALL PAYORS (GOVERNMENTALLY-INSURED, COMMERCIALLY-INSURED, OR SELF-PAY) ARE CHARGED THE SAME PRICE FOR SERVICES AT ANY GIVEN HOSPITAL. UNDER THIS SYSTEM, MARYLAND HOSPITALS ARE REGULATED BY A STATE AGENCY, KNOWN AS THE HEALTH SERVICES COST REVIEW COMMISSION (HSCRC), THAT IS REQUIRED TO: -PUBLICLY DISCLOSE INFORMATION ON THE COST AND FINANCIAL POSITION OF HOSPITALS; -REVIEW AND APPROVE HOSPITAL RATES; -COLLECT INFORMATION DETAILING TRANSACTIONS BETWEEN HOSPITALS AND FIRMS WITH WHICH THEIR TRUSTEES HAVE A FINANCIAL INTEREST; AND, -MAINTAIN THE SOLVENCY OF EFFICIENT AND EFFECTIVE HOSPITALS. SINCE 2000, THE RATE SETTING COMMISSION HAS HAD ITS OWN FRAMEWORK FOR REPORTING HOSPITALS' COMMUNITY BENEFITS AND ISSUING A REPORT ANNUALLY REGARDING HOSPITALS' COMMUNITY BENEFIT TOTALS. THAT REPORT IS AVAILABLE ON TTP://WWW.HSCRC.STATE.MD.US/ BECAUSE OF THIS UNIQUE STRUCTURE MARYLAND HOSPITALS' COMMUNITY BENEFITS NUMBERS WILL NOT COMPARE WITH THE REST OF THE NATION'S HOSPITALS. HOWEVER, MARYLAND HOSPITALS MEET OR EXCEED THE COMMUNITY BENEFIT STANDARD ESTABLISHED BY THE IRS IN 1969. ADDITIONAL DETAIL ILLUSTRATING THIS CAN BE FOUND WITHIN THIS SCHEDULE H REPORT. Schedule H, Part I, Line 3c Criteria for Determining Eligibility for Free or Discounted Care Patients may receive financial assistance if their bill is 25% or more of their annual income. Every inpatient or outpatient who accumulates $10,000 or more in charges receives a visit from a financial counselor along with a financial assistance application. We also mail these patients another financial assistance application with a cover letter stating that due to the balance of their bill, they may qualify for financial assistance. Schedule H, Part I, Line 7 Cost-To-Charge Ratio AMOUNTS WERE CALCULATED USING THE COST-TO-CHARGE RATIO DERIVED FROM WORKSHEET 2. Schedule H, Part III, Line 4 Text of bad debt expense footnote The amount included in part III, line 2 is the amount of charges written off of patient accounts after pursuing payment and other alternatives such as qualifying the patient for charity care or for state and federal government programs. The charges are reduced to approximate cost by using the cost to charge ratio computed in schedule H, part I, Worksheet 2. Any adjustments or payments received on accounts previously written-off to bad debt have the impact of reducing the reported bad debt cost. We adopted FAS B-issued ASU 2011-07 which provided guidance on the presentation and disclosure of patient service revenue, provisions for bad debts, and the allowance for doubtful accounts for certain health care entities effective for the fiscal year ending June 30, 2013. Schedule H, Part III, Line 8 Medicare Costing Methodology Medicare PS&R reports used as source of costs and payments. Schedule H, Part III, Line 9b Collection Practices to those Qualifying for Financial Assistance PATIENTS WHO QUALIFY FOR CHARITY CARE OR FINANCIAL ASSISTANCE ARE SPECIFICALLY EXCLUDED FROM THE COLLECTION PROCESS. Schedule H, Part V, Line 18e Other efforts made before initiating collections actions Patients with balances greater than $10,000 receive a special letter stating they may qualify for charity and requests that they contact the hospital. Schedule H, Part V, Line 20d Other method for determining maximum charged amount Maryland's HSCRC determines rates charged. Schedule H, Part V, Line 3 Input from community representatives Seven focus groups including thirty eight (38) representatives from government agencies, area Nonprofits and professional service providers gathered to provide their assessments of Frederick County's human needs, relative to available services, and gaps in service provision. Individuals who were invited to attend but were unable to do so were interviewed by phone. Eight key informant interviews were conducted with current and former elected officials, civic leaders, and representatives from United Way of Frederick County, Frederick County judiciary, and Frederick County Public Schools. A survey was conducted polling 111 service providers to collect information about available services. The survey included an open-response question: "In your professional opinion, what are the top three unmet needs in all of Frederick County?" Responses to the survey were received from 167 programs, which represented the majority of the largest providers of human needs services. The responses to the question were used as part of the human needs assessment portion of the analysis. A focus group comprised of 15 individuals who were recipients of Frederick County human services programs including services for people who are homeless, free clinic patients, and consumers of soup kitchens and food programs, was conducted. Participants were asked about their daily needs, programs that have helped them and why, their unmet needs, and the needs of community youth. Community Foundation leaders who participated in United Way of Frederick County's strategic planning process contributed their notes, which also were used in gauging community human needs. A survey of the general public was conducted asking respondents to rank unmet needs in the Community Foundation's three core strategic areas: health, youth, and basic human needs. One hundred and fourteen responses were received, with the survey's availability reported in local print media, on the Community Foundation's website, through email blasts, and social media. The primary source data was supplemented by third party focus groups and surveys, most notably those of United Way of Frederick County and the Frederick County Local Management Board. The report also includes a preliminary aggregation of service delivery issues raised by key local participants in the assessment, as well as suggested quantifiable indicators for discussion by the Community Foundation and community partners of how to measure progress and impact. The qualitative analysis of needs, supply of services, and gaps in services relied to a large extent on the knowledge and opinions of Frederick County "experts," individuals who have long experience in delivering human services in Frederick County or who are currently or in the past held elected or appointed policy making positions. Schedule H, Part VI, Needs assessment Needs Assessment The 2013 Frederick County Health Assessment is a data driven approach to determining the health status of Frederick community residents by capturing and comparing statistical information from three independent community-based health focused and human needs driven organization: - The Frederick Community Foundation's Human Needs Assessment conducted in August of 2011, - The local Health Improvement Plan (L-HIP) Priorities Summit conducted in October of 2011, and - Frederick Memorial Hospital's utilization data for the Emergency room, Inpatient admissions and Outpatient service provision. The FMH data served as an evidence-based confirmation of the other two studies' findings. The comparative assessment findings were additionally verified using the current data from the State Health Improvement Plan. In addition, the assessment uses the most current statistical information available from a variety of resources including the Maryland Health Services Cost Review Commission, the Maryland Behavioral Risk Factor Surveillance System, the Maryland Department of Health and Mental Hygiene, the US Census and other state and federal agencies. The 2013 Community Health Assessment provides the information that the Frederick County Health Department, Frederick Regional Health System, the Frederick County Health Care Coalition and partner grass-roots agencies and organizations need to identify issues of greatest concern. Decisions to commit resources to those areas identified in this comparative study will ensure that our collective efforts have the greatest impact on our community's health status. Project Goals The 2013 Frederick County Health Assessment will serve as a resource and tool for reaching three goals: - To improve the health status of Frederick County residents, elevate their overall quality of life, and increase their life spans. Quality of life issues remain an important component of the plan as all agree that the measure of our community's health goes beyond addressing physical, dental, mental and behavioral health needs. - To identify the socio-economic factors which have historically had a negative impact on our residents' health. By identifying population segments that are most at-risk for various diseases and injuries we will, as a community, be better positioned to address health disparities. - To provide more accessible preventive services to assist community partners in improving the health status of Frederick County residents, and to help us as a community keep the costs of providing care for late-stage disease in check. Schedule H, Part VI, Patient education Patient Education of Eligibility for Assistance FREDERICK MEMORIAL HOSPITAL POSTS ITS CHARITY CARE POLICY AND FINANCIAL ASSISTANCE CONTACT INFORMATION IN ADMISSION AREAS, THE FMH EMERGENCY DEPARTMENT, AND IN ALL OF OUR SATELLITE FACILITIES IN AREAS WHERE ELIGIBLE PATIENTS ARE LIKELY TO PRESENT. FMH PROVIDES A SUMMARY OF THE CHARITY CARE POLICY AND FINANCIAL ASSISTANCE CONTACT INFORMATION TO ALL PATIENTS AT THE TIME OF ADMISSION TO THE HOSPITAL. FMH ADMISSIONS PERSONNEL DISCUSS THE AVAILABILITY OF VARIOUS GOVERNMENT BENEFITS SUCH AS MEDICAID OR STATE PROGRAMS WITH PATIENTS AND/OR THEIR FAMILY MEMBERS, AND THEY ASSIST PATIENTS WITH QUALIFICATION FOR THE PROGRAMS. FREDERICK MEMORIAL HOSPITAL INCREASED ITS EFFORTS TO PROVIDE FINANCIAL ASSISTANCE TO ITS PATIENTS THROUGH A VARIETY OF INITIATIVES. FMH INCREASED ITS FINANCIAL ASSISTANCE FOR CATASTROPHIC SITUATIONS. IN OUR PROGRAM, PATIENTS MAY RECEIVE FINANCIAL ASSISTANCE IF THEIR BILL IS 25% OR MORE OF THEIR ANNUAL INCOME. IN FY11 A FINANCIAL COUNSELOR MET WITH PATIENTS WHO HAD NO INSURANCE THE DAY AFTER ADMISSION TO EXPLAIN OUR FINANCIAL ASSISTANCE PROGRAM AND THE STATE'S MEDICAL ASSISTANCE PROGRAM. BECAUSE THE MEETING WITH THE PATIENT WAS EARLY IN THEIR STAY, THE PATIENT'S ACCUMULATED CHARGES TYPICALLY DID NOT REACH A CATASTROPHIC STAGE. THEREFORE, WE HAD PATIENTS WHO LEFT THE HOSPITAL WITHOUT A DETAILED CATASTROPHIC FINANCIAL ASSISTANCE DISCUSSION AND WITHOUT A FINANCIAL ASSISTANCE APPLICATION. NOW, EVERY INPATIENT OR OUTPATIENT WHO ACCUMULATES $10,000 OR MORE IN CHARGES WILL RECEIVE A SECOND VISIT FROM A FINANCIAL COUNSELOR ALONG WITH A FINANCIAL ASSISTANCE APPLICATION. ALSO, WE MAIL THESE PATIENTS ANOTHER FINANCIAL ASSISTANCE APPLICATION WITH A COVER LETTER STATING THAT DUE TO THE BALANCE OF THEIR BILL, THEY MAY QUALIFY FOR FINANCIAL ASSISTANCE. Schedule H, Part VI, Community information Community Information IN THE YEAR ENDED JUNE 30, 2013, FREDERICK MEMORIAL HOSPITAL ADMITTED 20,074 PATIENTS. THE FMH EMERGENCY DEPARTMENT TREATED NEARLY 80,000 PATIENTS. APPROX. 10% OF ALL COUNTY RESIDENTS LACK HEALTH INSURANCE AND 9% ARE MEDICAID RECIPIENTS. FMH DEFINES ITS PRIMARY SERVICE AREA AS FREDERICK COUNTY, MARYLAND, WHICH ACCOUNTED FOR APPROXIMATELY 60% OF FMH'S DISCHARGES IN FISCAL YEAR 2013. THE HOSPITAL IS THE ONLY HOSPITAL LOCATED IN ITS PRIMARY SERVICE AREA AND THE ONLY HOSPITAL WITHIN A 25-MILE RADIUS OF THE CITY OF FREDERICK. MT. AIRY THE MOUNT AIRY AREA IS PREDOMINANTLY WHITE (92.1%), WITH SMALLER HISPANIC OR LATINO (4.7%), AFRICAN AMERICAN (2.4%) AND ASIAN (2.2%) POPULATIONS. THE MEDIAN AGE IS 36, WITH APPROXIMATELY 20% OF THE POPULATION IN EACH OF TWO RANGES: 5-14 AND 40-49 YEARS OF AGE. ABOUT 10% OF ALL RESIDENTS ARE AGE 62 OR OLDER. THE POPULATION IS 51.5% FEMALE AND 48.5% MALE. 79% OF MOUNT AIRY RESIDENTS LIVE IN FAMILY HOUSEHOLDS (A HOUSEHOLDER AND ONE OR MORE OTHER PEOPLE RELATED BY BIRTH, MARRIAGE, OR ADOPTION). 86.9% OF THE HOUSING UNITS ARE OWNER-OCCUPIED. THE POVERTY LEVEL IN MOUNT AIRY IS 5.3%, WELL BELOW THE STATE-WIDE RATE OF 12.0%. LIFE EXPECTANCY IS ABOVE THE STATE AVERAGE AT 80.1%. CANCER AND HEART DISEASE (INCLUDING STROKE) RATE HIGHEST IN TERMS OF CAUSES OF DEATH AND YEARS OF POTENTIAL LIFE LOST. ABOUT 5.0% OF THE RESIDENTS IN THIS AREA LIVE WITH CHRONIC HEART DISEASE, JUST 1.3% HAVE HAD A STROKE, AND 28.5% HAVE BEEN TOLD THEY HAVE HIGH BLOOD PRESSURE. 6.1% HAVE BEEN DIAGNOSED WITH SKIN CANCER AND ANOTHER 6.8% HAVE BEEN DIAGNOSED WITH ANOTHER FORM OF CANCER. THURMONT THURMONT'S POPULATION IS FAIRLY EVENLY DISTRIBUTED IN TERMS OF AGE, WITH THE LARGEST COHORT (18%) IN THE 40-49 AGE BRACKET. RESIDENTS ARE 95.8% WHITE, 2.4% HISPANIC OR LATINO, AND 1% AFRICAN AMERICAN. NEARLY 16% OF THURMONT'S POPULATION IS AGE 62 OR OLDER. SIMILARLY TO MOUNT AIRY, THE POPULATION IS 48.4% MALE AND 51.6% FEMALE. 72% OF THURMONT RESIDENTS LIVE IN FAMILY HOUSEHOLDS, WITH 74.7% OF HOUSING UNITS OCCUPIED BY THE PROPERTY OWNER. 7.2% OF RESIDENTS IN THE AREA EARN INCOME BELOW THE POVERTY LEVEL. AGAIN, CANCER AND HEART DISEASE (INCLUDING STROKE) RATE HIGHEST IN TERMS OF CAUSES OF DEATH AND YEARS OF POTENTIAL LIFE LOST. ABOUT 4.6% OF RESIDENTS IN THIS AREA SUFFER FROM CHRONIC HEART DISEASE, 4.1% HAVE HAD A STROKE, AND 24.7% HAVE BEEN TOLD THEY HAVE HIGH BLOOD PRESSURE. 6.8% HAVE BEEN DIAGNOSED WITH SKIN CANCER AND ANOTHER 8.1% HAVE BEEN DIAGNOSED WITH ANOTHER FORM OF CANCER. FREDERICK CITY AND SUBURBS FREDERICK CITY AND ITS IMMEDIATE SUBURBS ARE MORE RACIALLY DIVERSE THAN EITHER THURMONT OR MT. AIRY, WITH WHITE (63.9%), AFRICAN AMERICAN (18.6%), HISPANIC OR LATINO (14.4%) AND ASIAN (5.8%) GROUPS ACCOUNTING FOR THE LARGEST PERCENTAGES. RESIDENTS ARE EVENLY DISTRIBUTED IN TERMS OF AGE, WITH THE LARGEST GROUP (17%) APPEARING IN THE 25-34 AGE BRACKET. THE POPULATION IS 48.2% MALE AND 51.8% FEMALE. JUST 60.5% OF THIS AREA'S RESIDENTS LIVE IN FAMILY HOUSEHOLDS, WITH A RELATIVELY EVEN SPLIT BETWEEN OWNER-OCCUPIED (57.6%) AND RENTER-OCCUPIED (42.4%) HOUSING. 12.1% OF RESIDENTS IN THIS AREA LIVE BELOW THE POVERTY LEVEL, WHICH IS JUST ABOVE THE STATE AVERAGE OF 12.0%. AS IN THE OTHER TWO AREAS DESCRIBED, CANCER AND HEART DISEASE (INCLUDING STROKE) RATE HIGHEST IN TERMS OF CAUSES OF DEATH AND YEARS OF POTENTIAL LIFE LOST. 6.5% OF THE RESIDENTS IN THIS AREA LIVE WITH CHRONIC HEART DISEASE, 3.1% HAVE SUFFERED A STROKE, 30.2% HAVE BEEN TOLD THEY HAVE HIGH BLOOD PRESSURE. 4.0% REPORT BEING DIAGNOSED WITH SKIN CANCER AND ANOTHER 4.5% HAVE BEEN DIAGNOSED WITH ANOTHER FORM OF CANCER. Schedule H, Part VI, Promotion of community Promotion of Community Health A MAJORITY OF THE SYSTEM'S GOVERNING BODY (14 OUT OF 19) ARE PERSONS WHO RESIDE IN THE HOSPITAL'S PRIMARY SERVICE AREA AND WHO ARE NEITHER EMPLOYEES NOR INDEPENDENT CONTRACTORS OF THE SYSTEM, NOR FAMILY MEMBERS THEREOF. THE SYSTEM EXTENDS MEDICAL STAFF PRIVILEGES TO ALL QUALIFIED PHYSICIANS IN THE COMMUNITY. THE SYSTEM SPENT NEARLY $31 MILLION DOLLARS ON CAPITAL EXPENDITURES DURING FISCAL YEAR 2013, FOR UPGRADES TO PHYSICAL PLANT, MEDICAL EQUIPMENT AND INFORMATION TECHNOLOGY INVESTMENTS. The Community Needs Health Assessment identified lung disease as focus need: FMH conducted Camp YesUCan, a day-long event for children with asthma. The goal of the camp is to remind children with asthma that they can safely enjoy sports and many other outdoor activities without fearing the onset of an asthma attack. Thirteen (13) children participated in this year's event. Under the watchful supervision of highly skilled nurses, respiratory therapists and certified asthma educators - the campers learned how asthma attacks start and how they can be avoided. They were taught how to take their medications appropriately and what to do to manage the onset of an attack. Of the 13 participants in this year's Camp YesUCan, only 2 required emergency department intervention for asthma attack symptoms. In FY 12, July 1, 2011 - June 30, 2012, the cost of caring for the 12 children who attended Camp YesUCan was $13,586.00. So far, in FY 13, July 1, 2012 through November 8, 2012, the children who attended the camp have logged only $478.00 in care expense. This puts the camp experience on track for decreasing cost for caring for participants by more than $12,000. The FMH Pulmonary Community Outreach Program will continue with Camp YesUCan and the other programs, events and educational opportunities to inform the community about practicing good lung hea1l5th and controlling environmental triggers. The Community Needs Health Assessment identified heart disease as focus need: Stroke Workshops were provided to those communities in our service area where the incidence of heart and vascular disease are more prevalent with the goal of increasing awareness about the signs and symptoms of stroke. The Director of the FMH Stroke Program attended a number of community meetings and event to educated attendees about the risk factors associated with cardiovascular disease. Attendees are given information on risk factors and steps they can take right away to change their own risk for stroke. At the conclusion of the workshops, approximately ninety-eight (98%) percent of the attendees are able to name and identify stroke signs and symptoms and know what to do in case they, or someone they know, are having a stroke. Continuation of Initiative FMH will continue to offer free Stroke Workshops to the citizens of Frederick County to increase awareness and provide details on stroke care and prevention. Efforts will focus even more specifically in those underserved communities in which the incidence of cardiovascular disease is highest in Frederick County. The Community Needs Health Assessment identified breast cancer as focus need: The purpose of these outreach efforts is to influence a woman's decision to practice monthly breast self-examinations, be examined yearly by a health care provider, have a yearly mammogram as indicated by screening protocols. The overarching goal is to decrease the incidence of late-stage breast cancer diagnosis in Frederick County. The theme for this free and open to the public event was "Celebrating Life & Embracing Changes." Fellowship breasts surgeon, Dr. Susan Bahl spoke about life after breast cancer. Medical Oncologist, Dr. Mark Goldstein spoke about the importance of creating a survivorship plan after a diagnosis of breast cancer; and Dr. Sadaf Taimur spoke about healthy living strategies. Over the past 5 years, the FMH cancer registry has recorded an increase in the number of breast cancers diagnosed in Stage I and Stage II. Continuation of Initiative Given the favorable outcomes as measured by the number of breast cancer patients presenting in the early stages of the disease, FMH plans to continue hosting the Breast Cancer Symposium for many years to come. The Community Needs Health Assessment identified dental/oral healthcare as focus need: Frederick Memorial Hospital has been working to lay the groundwork to establish a dental clinic in Frederick County. The progress that we have made is illustrative of a dynamic working relationship between government, academia, the private sector, non-profits and Frederick Memorial Hospital. The hospital has played a pivotal role in initiating talks between local officials and the University of Maryland Dental School. In late December of 2012, Christian S. Stohler, DMD, Dean of University of Maryland Dental School and Marcelena Holmes, Assistant Dean of Institutional Advancement, confirmed their plans to work with the hospital to start a dental clinic in Frederick. Continuation of Initiative FMH will work with the University to help identify a location for the clinic and will engage with the Frederick Dental Society to recruit area Dentists to participate in the development of the facility, the curriculum and provide oversight as necessary. The Community Needs Health Assessment identified prenatal care as focus need: The FMH Auxiliary Prenatal Center provides prenatal care for women with no insurance - or with Medicaid programs who are unable to obtain care from other providers. Many of the women in the Prenatal Center's programs are high-risk pregnancy patients, and many of the women present with medical conditions of which they are unaware, that may pose significant risk to full-term fetal development. The staff of the FMH Auxiliary Prenatal Center - 2 nurse midwives, a medical assistant, a department assistant, and an interpreter - under the direction of Dr. Edwin Chen, Medical Director for the Prenatal Center, and Dr. Wayne Kramer, perinatology consultant with the practice of Mid Maryland Perinatology Associates, are able to diagnose and treat these underlying conditions before they adversely affect the course of the pregnancy. Access to the FMH Auxiliary Prenatal Center is mainly through referrals from the Frederick County Health Department (FCHD), and the Frederick County Mission of Mercy. Before the FMH Prenatal Center opened, there was a backlog of 80 patients waiting to be seen at the Mission of Mercy. The opening of the Prenatal Center has completely eliminated that backlog of patients. There is no waiting time at all at the Mission of Mercy. In FY13, 264 newborn deliveries were from women who sought prenatal care through the FMH Auxiliary Prenatal Center. Of those births, 18 (7%) newborns required admission to the FMH Neonatal Intensive Care Unit. In FY06, 372 newborn deliveries were from women who had no neonatal care. Of those births, 57 (15%) required admission to the FMH Neonatal Intensive Care Unit. Continuation of Initiative The Frederick Regional Health System will continue to fund operations of the FMH Prenatal Center through the generosity of the FMH Auxiliary. The Community Needs Health Assessment identified care management as focus need: The Care Transitions Program rolled out in July of 2012 with 1,038 patients receiving interventions from our Care Transitions RN and 470 patients receiving some intervention from a Care Transition Pharmacist. Through the work of our Care Transitions team patients receive more focused disease management education, and intensive transition planning, which often includes financial support for medications, follow up physician appointments, transportation and various other medical and social support services in the community. As the team of Care Transitions nurses, social workers and pharmacist works closely with patients who have been identified as high risk for readmission a great deal of time and energy is spent working with patients and caregivers to establish a post discharge plan. This includes discussing affordability and access to the necessary services. If the Care Transition team, or case manager, identifies the need for financial assistance arrangements are made directly with the post-acute provider to ensure the patient will have the necessary access to service without concern for cost. Collaborative partnerships have established with the community to ensure services are provided and appropriate charges covered by the Care Transitions Program. Of the 1508 patients served by the Care Transition Team, approximately 20% (302) receive some amount of financial support to ensure access to the necessary care after discharge. Without the financial assistance the most vulnerable and at risk patients would continue to require care within the hospital or ED setting. Continuation of the Care Transitions Initiative is on-going. In order to fulfill our mission, The Health System has entered into a number of exclusive contracts and/or subsidy arrangements with Schedule H, Part VI, Affiliated health care Affiliated Health Care System ON JUNE 28, 2011 FREDERICK MEMORIAL HOSPITAL, INC. (FMH) BOARD OF DIRECTORS APPROVED A CORPORATE RESTRUCTURING WHICH INCLUDED THE CREATION OF A NON-PROFIT PARENT CORPORATION KNOWN AS FREDERICK REGIONAL HEALTH SYSTEM (FRHS). ADDITIONALLY TWO NEW ENTITIES WERE ORGANIZED, MONOCACY INSURANCE, LTD AND MONOCACY HEALTH PARTNERS, LLC, BOTH OF WHICH ARE 100% CONTROLLED BY FRHS. MONOCACY INSURANCE, LTD IS A CAYMAN ISLANDS DOMICILED SINGLE PARENT CAPTIVE ORGANIZED TO PROVIDE A FLEXIBLE RISK FINANCING STRUCTURE TO MEET THE NEEDS OF FRHS. MONOCACY HEALTH PARTNERS, LLC WILL SERVE AS A NON-PROFIT PHYSICIAN ENTERPRISE, PROVIDING GOVERNANCE, MANAGEMENT AND SUPPORT FUNCTIONS FOR EMPLOYED PHYSICIANS. COMPLETION OF THIS RESTRUCTURING WILL OCCURED DURING FISCAL YEAR 2014. FRHS IS THE SOLE MEMBER OF FMH. AS SOLE MEMBER, FRHS SHALL EXERCISE ALL POWERS CONFERRED ON FMH BY THE FMH ARTICLES OF INCORPORATION, BYLAWS, AND THE LAWS OF THE STATE OF MARYLAND. FRHS SHALL ACT AS MEMBER THROUGH ITS BOARD OF DIRECTORS, EXECUTIVE COMMITTEE, OR SUCH OFFICER(S) DESIGNATED BY ITS BOARD OF DIRECTORS FROM TIME TO TIME. Schedule H, Part VI, State filing State filing of community benefit report MARYLAND true FREDERICK COMMUNITY COLLEGE 7932 Opossumtown Pike FREDERICK MD 21702 520743590 501(c)(3) 100000 SUPPORT OF ALLIED HEALTH PROGRAM 1 PROCEDURES FOR MONITORING THE USE OF GRANTS THE HOSPITAL PROVIDES FUNDING TO A LOCAL COMMUNITY COLLEGE (501(C)(3)) IN AN EFFORT TO ENHANCE ITS ALLIED HEALTH PROGRAM. THROUGH THIS PROGRAM A FORMAL EDUCATION FORUM IS ESTABLISHED RESULTING IN FULLY ACCREDITED PROGRAMS THAT MEET THE HOSPITAL'S NEEDS. X true true X X X X false true false false false true false false false Michelle K Mahan 328025 0 59767 0 2322 0 71532 0 13209 0 474855 0 0 0 Mary B Mann 149289 0 0 0 961 0 9317 0 2014 0 161581 0 0 0 Brian M O'Connor 502914 0 212 0 1584 0 19992 0 15272 0 539974 0 0 0 Terry P O'Malley 203208 0 22311 0 3564 0 31618 0 12971 0 273672 0 0 0 David JQuirke 240020 0 45138 0 540 0 32502 0 11078 0 329278 0 0 0 Craig F Rosendale 169394 0 20240 0 3564 0 17008 0 12778 0 222984 0 0 0 Donald R Schilling 190072 0 22226 0 2322 0 5873 0 12971 0 233464 0 0 0 Lucy A Shamash 204591 0 45563 0 810 0 11617 0 12971 0 275552 0 0 0 Mark S Soberman 491600 0 212 0 552 0 5621 0 15272 0 513257 0 0 0 Jennifer G Teeter 151191 0 19181 0 1242 0 10861 0 12621 0 195096 0 0 0 John R Verbus 325147 0 61358 0 2322 0 50188 0 8710 0 447725 0 0 0 Jim R Williams 183896 0 23263 0 3564 0 17856 0 12893 0 241472 0 0 0 Manual A Casiano 315749 0 62015 0 2322 0 54843 0 12973 0 447902 0 0 0 Paul N Chomiak 494950 0 212 0 360 0 10465 0 15272 0 521259 0 0 0 Kenneth R Coffey II 171442 0 21110 0 2322 0 17228 0 15569 0 227671 0 0 0 Elhamy D Eskander 499698 0 212 0 1032 0 19621 0 15272 0 535835 0 0 0 Mark G Goldstein 505184 0 212 0 216 0 10622 0 15042 0 531276 0 0 0 Hannah R Jacobs 158001 0 19536 0 475 0 8424 0 2195 0 188631 0 0 0 Thomas A Kleinhanzl 549614 0 191412 0 3405 0 158666 0 16312 0 919409 0 0 0 Rose A Labriola 268004 0 35795 0 2322 0 20804 0 12971 0 339896 0 125335 0 Form 990, Schedule J, Part I, Line 1a Compensation Provided by Org listed in 990, Part VII, Section A, 1a FREDERICK MEMORIAL HOSPITAL HOLDS TWO CORPORATE MEMBERSHIPS TO A LOCAL GOLF/COUNTRY CLUB THAT ARE USED BY THE CHIEF EXECUTIVE OFFICER AND THE CHIEF FUND DEVELOPMENT OFFICER OF THE HOSPITAL. WHILE THE MAJORITY OF THE FEES ASSOCIATED WITH THE CLUB DUES, ETC. IS BUSINESS RELATED, GENERAL PERSONAL USE EXPENSES ARE REIMBURSED BACK TO THE HOSPITAL BY THESE INDIVIDUALS AS NEEDED. Form 990, Schedule J, Part I, Line 4b Payment from a Supplemental Nonqualified Retirement Plan FREDERICK MEMORIAL HOSPITAL HAS ONE 457(F) NON-QUALIFIED DEFERRED COMPENSATION PLAN FOR CERTAIN MEMBERS OF SENIOR MANAGEMENT. UNDER THE PLAN, THEY MAY CONTRIBUTE AMOUNTS FROM THEIR COMPENSATION TO THE PLAN AND MAY RECEIVE A DISCRETIONARY EMPLOYER CONTRIBUTION. EMPLOYEES ARE FULLY VESTED IN ALL EMPLOYEE CONTRIBUTIONS TO THE PLAN. VESTING IN EMPLOYER CONTRIBUTIONS OCCURS IN ACCORDANCE WITH THE UNDERLYING PLAN DOCUMENTS. ALL ASSETS OF THE PLAN ARE HELD IN A SEPARATE TRUST. TOTAL HOSPITAL CONTRIBUTIONS TO THIS PLAN WERE $349,000 FOR THE YEAR. Form 990, Schedule J, Part I, Line 6 Compensation Contingent on Net Earnings of a Related Organization THE EXECUTIVE COMPENSATION PROGRAM IS DESIGNED TO CARRY OUT THE HEALTH SYSTEM MISSION, TO ACHIEVE THE CHARITABLE PURPOSE, TO ATTRACT, RETAIN, MOTIVATE AND REWARD EXECUTIVE MANAGEMENT, AND TO MAINTAIN A COMPETITIVE POSITION WITH PEER ORGANIZATIONS IN THE REGION. OVERSIGHT OF THE EXECUTIVE COMPENSATION PROGRAM IS PROVIDED BY THE EXECUTIVE COMPENSATION COMMITTEE OF THE BOARD, COMPOSED OF THE BOARD CHAIR, VICE CHAIR, IMMEDIATE PRECEDING CHAIR, CHAIR OF THE FINANCE COMMITTEE AND CHAIR OF THE GOVERNANCE COMMITTEE. ANNUALLY, UTILIZING AN INDEPENDENT OUTSIDE COMPENSATION CONSULTING FIRM, THE COMMITTEE REVIEWS AND RECOMMENDS TO THE BOARD VARIABLE PAY GOALS FOR THE COMING YEAR, AND PAYMENT LEVELS BASED ON PERFORMANCE FOR THE CURRENT YEAR. THE EXECUTIVE COMPENSATION PHILOSOPHY OF THE BOARD PROVIDES FOR BASE COMPENSATION AT THE 50TH TO 60TH PERCENTILE WITH VARIABLE PAY DESIGNED TO PROVIDE A TARGET OPPORTUNITY FOR TOTAL COMPENSATION TO REACH THE 75TH PERCENTILE. VARIABLE PAY CRITERIA ARE CLINICAL QUALITY (33%), CUSTOMER SERVICE (11%), PEOPLE (11%), FINANCIAL VIABILITY (28%), AND GROWTH (17%). GOALS USING THE VARIABLE PAY CRITERIA ARE ESTABLISHED AT BOTH THE CORPORATE AND INDIVIDUAL LEVEL. INDIVIDUAL PAYMENTS ARE BASED ON PERFORMANCE AGAINST CORPORATE GOALS, INDIVIDUALS GOALS, AND DISCRETION OF THE BOARD. A MARYLAND HEALTH & HIGHER EDU FACILITIES AUTH 2012A 520936091 574218ly7 2012-12-05 96240000 SEE PART VI false false false B Maryland Health & Higher Edu Facilities Auth 2012B 520936091 2012-12-05 70020000 SEE PART VI false false false A 68293488 0 108345805 0 1648756 0 1203561 0 0 14450568 0 22749432 2014 true false false false B 70020000 0 70690852 0 0 320948 349253 0 0 0 0 0 2012 true false true true A false true true true true true 0.00000 0.00630 0.00630 false false 0.00000 false true B false true true true true true 0.00210 0.00050 0.00260 false false 0.00000 false true A false true false false 0 false 0 false true B false true true true UBS AG Stamford 3.8 false false false 0 false true A true B true Description of tax exempt bonds schedule K, part I, column F Maryland Health & Higher Ed Authority 2012a: Finance 2012 Project and current refund 2002 bonds which funded the 2002 Project. Maryland Health & Higher Ed Authority 2012b: Refund the 2008 series bonds which were used to finance the 2006 and prior projects. Difference between issue price and total proceeds Schedule K, Part II, Line 3 Maryland Health & Higher Ed Authority 2012a: Original issue premium of $3,989,854 and previously trusteed held funds of $8,115,951. Management Practices and Procedures Schedule K, Part III, Line 9 The organization has policies and procedures in place to ensure tax exempt bond post issuance compliance, written policies were created and adopted during the tax year. PAUL CHOMIAK PHYSICIAN PHYSICIAN RECRUITMNT X 649518 27063 false false true 27063 LOANS TO AND FROM INTERESTED PERSONS SCHEDULE L, PART II PURPOSE OF LOAN: PHYSICIAN RECRUITMENT AND INCOME GUARANTEE AGREEMENT. X 3 40415 FAIR MARKET VALUE false true false Form 990, Part VI, Line 2 Family or Business Relationships MARVIN AUSHERMAN, FORMER DIRECTOR OF FMH, INC. IS ENGAGED IN AN INDIRECT BUSINESS RELATIONSHIP WITH THOMAS KLEINHANZL, JOHN VERBUS, KENNETH COFFEY, JAMES REINSCH AND ANNE HERBERT ROLLINS. Form 990, Part VI, Line 6 Members or Stockholders THE SOLE MEMBER OF THE ORGANIZATION IS FREDERICK REGIONAL HEALTH SYSTEM. Form 990, Part VI, Line 7a Power to Elect or Appoint Members THE SOLE MEMBER, FREDERICK REGIONAL HEALTH SYSTEM, HAS THE POWER TO APPOINT THE PRESIDENT/CEO AND THE DIRECTORS OF FREDERICK MEMORIAL HOSPITAL. Form 990, Part VI, Line 7b Decisions Reserved to Members or Stockholders THE MEMBER, FREDERICK REGIONAL HEALTH SYSTEM, MUST APPROVE THE INCURRENCE OF DEBT IF SUCH DEBT EXCEEDS A CERTAIN AMOUNT TO BE DESIGNATED BY THE MEMBER, CAPITAL EXPENDITURES EXCEEDING A CERTAIN AMOUNT TO BE DESIGNATED BY THE MEMBER, THE DECISION TO DISSOLVE OR LIQUIDATE, THE CREATION OF A SUBSIDIARY, AND AMENDMENTS TO THE BYLAWS. Form 990, Part VI, Line 11b Process used to Review the Form 990 THE 990 IS PREPARED IN CONJUNCTION WITH OUTSIDE TAX ACCOUNTANTS AND REVIEWED BY UPPER MANAGEMENT PRIOR TO PROVIDING A COPY TO THE BOARD. A COPY OF FORM 990 IS PROVIDED TO ALL MEMBERS OF THE BOARD PRIOR TO FILING. Form 990, Part VI, Line 12c Monitoring and Enforcement of Compliance with Conflict of Interest Policy THE FREDERICK MEMORIAL HOSPITAL, INC. BOARD OF DIRECTORS IS COMMITTED TO MEETING ITS FIDUCIARY RESPONSIBILITIES AND MAINTAINING ITS DUTY OF LOYALTY TO THE HOSPITAL AND THE COMMUNITY IT SERVES. TO THIS END, THE BOARD WILL EXERCISE VIGILANCE IN IDENTIFYING ANY CONFLICTS OF INTEREST. THE BOARD WILL ALSO MAINTAIN TRANSPARENCY AND OBJECTIVITY IN MAKING DECISIONS ABOUT CONFLICTS OF INTEREST SO THAT THE ORGANIZATION'S MISSION IS ALWAYS THE FIRST PRIORITY. THE CHAIRPERSON (OR VICE CHAIRPERSON IF THE CHAIR IS INVOLVED) WILL NOTIFY ALL DIRECTORS OF A REPORTED CONFLICT OF INTEREST AND DECIDE WHETHER TO TAKE THE MATTER TO THE FULL BOARD TO DECIDE WHETHER A CONFLICT EXISTS AND, IF SO, WHAT ACTION TO TAKE, OR WILL REFER THE MATTER TO THE GOVERNANCE COMMITTEE FOR AN IN-DEPTH EXAMINATION, SUMMARY, AND RECOMMENDATION PRIOR TO A FULL BOARD DISCUSSION AND DECISION. IF TIME IS OF THE ESSENCE, THE CHAIRPERSON OR VICE CHAIRPERSON WILL TAKE THE MATTER TO THE EXECUTIVE COMMITTEE FOR DISCUSSION AND A DECISION, AND WILL THEN NOTIFY THE FULL BOARD. WHERE A CONFLICT OF INTEREST HAS BEEN IDENTIFIED, THE BOARD MEMBER SHALL NOT VOTE OR BE PRESENT FOR THE DISCUSSION OR THE VOTE REGARDING THE TRAN SACTION AT EITHER THE FULL BOARD, EXECUTIVE COMMITTEE, OR GOVERNANCE COMMITTEE MEETINGS, EXCEPT TO ANSWER QUESTIONS THAT MAY BE ASKED OF HIM OR HER. TO PREVENT ACTUAL OR PERCEIVED INFLUENCE ON THE BOARD'S DECISION, THE CONFLICTED MEMBER IS PROHIBITED, AFTER INITIAL DISCLOSURE, FROM DISCUSSING THE CONFLICT OF INTEREST EITHER FORMALLY OR INFORMALLY WITH FELLOW DIRECTORS OR WITH MEMBERS OF THE MANAGEMENT. THERE WILL BE AN ANNUAL REVIEW OF ALL BOARD MEMBERS AND OFFICERS TRANSACTIONS PREPARED BY THE ADMINISTRATION AND REVIEWED BY THE GOVERNANCE COMMITTEE AND THE FULL BOARD OF DIRECTORS. AT THAT TIME, ALL DIRECTORS WILL BE REMINDED OF THE IRS INTERMEDIATE SANCTIONS REGULATION THAT ESTABLISHES EXCISE TAXES AS A SANCTION AGAINST ADMINISTRATORS AND DIRECTORS OF TAX-EXEMPT ORGANIZATIONS WHO ARTICIPATEIN 'EXCESS BENEFIT TRANSACTIONS' (E.G., UNREASONABLY HIGH EMPLOYMENT COMPENSATION OR BUSINESS DEALS). Form 990, Part VI, Line 15 Process for Determining Compensation THE EXECUTIVE COMPENSATION PROGRAM IS DESIGNED TO CARRY OUT THE HEALTH SYSTEM MISSION, TO ACHIEVE THE CHARITABLE PURPOSE, TO ATTRACT, RETAIN, MOTIVATE AND REWARD EXECUTIVE MANAGEMENT, AND TO MAINTAIN A COMPETITIVE POSITION WITH PEER ORGANIZATIONS IN THE REGION. OVERSIGHT OF THE EXECUTIVE COMPENSATION PROGRAM IS PROVIDED BY THE EXECUTIVE COMPENSATION COMMITTEE OF THE BOARD, COMPOSED OF THE BOARD CHAIRMAN, VICE CHAIRMAN, IMMEDIATE PRECEDING CHAIRMAN, CHAIRMAN OF THE FINANCE COMMITTEE AND THE CHAIRMAN OF THE GOVERNANCE COMMITTEE. THE EXECUTIVE COMPENSATION PHILOSOPHY OF THE BOARD PROVIDES FOR BASE COMPENSATION AT THE 50TH TO 60TH PERCENTILE OF OUR PEER GROUP. IN ADDITION TO THE BOARD'S COMPENSATION COMMITTEE, WE UTILIZED AN EXTERNAL INDEPENDENT CONSULTANT AND MARKET SURVEYS FOR ALL EXECUTIVE MANAGEMENT COMPENSATION. THE PRESIDENT AND CEO HAVE A WRITTEN EMPLOYMENT CONTRACT. Form 990, Part VI, Line 19 Process for Making Documents Available to the Public GOVERNING DOCUMENTS AND THE CONFLICT OF INTEREST POLICY ARE AVAILABLE UPON REQUEST. FREDERICK MEMORIAL HOSPITAL, INC. CONSOLIDATED ANNUAL AUDITED FINANCIAL STATEMENTS ARE AVAILABLE AT WWW.FMH.ORG. Form 990, Part IX, Line 11g Other fees exceed 10% Contract services for physical therapy, physicians, laboratory services. Also see Part VII, Section B. Form 990, Part XI, Line 9 Other Changes in Net Assets or Fund Balances UNREALIZED GAIN ON INTEREST RATE SWAP: 4,885,113 PENSION ADJUSTMENT: 13,534,300 RELEASES FROM RESTRICTION: 119,397 CHANGE IN TEMP RESTRICTED NET ASSETS: 226,348 LOSS ON EXTINGUISHMENT OF DEBT: (3,063,268) --------------- 15,701,890. 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