2014-11-12T19:55:33-06:00 2013-12-31 861065772 Deloitte Tax LLP 1111 Bagby Street Suite 4500 Houston TX 77002 990 2013-01-01 571201170 TMH PHYSICIAN ORGANIZATION TMHP 8326676160 6565 Fannin No GB-240 Houston TX 770302707 Edward L Tyrrell Treasurer 8326676160 2014-11-12 1 Jeffrey D Frank P00287234 7139822000 2013 2015-11-30 17:44:51Z Houston Methodist Specialty Physician Group Robert A Phillips MDPhD 6565 Fannin No GB-240 Houston TX 770302707 322311056 0 5792 X www.houstonmethodist.org X 2004 TX See Schedule O 18 0 1998 0 0 0 182561 128996 291416789 322182060 0 -3292980 0 0 291599350 319018076 31600 31159 0 0 234494192 262932848 0 0 0 57013047 62763507 291538839 325727514 60511 -6709438 41897299 41616808 53005982 59209869 -11108683 -17593061 X See Schedule O 0 0 311373904 31159 322182060 See Schedule O 311373904 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 0 0 1998 1 0 0 0 0 0 0 0 0 0 0 0 X 18 0 0 0 1 0 1 1 1 1 1 0 0 0 1 1 1 1 1 0 0 0 X Edward L Tyrrell FACHE 8326676160 6565 Fannin GB-240 Houston TX 770302707 X Stuart M Dobbs MD Director 2.00 0.00 X 0 650000 0 H Dirk Sostman MD Officer/Director, part year 0.00 0.00 X X 0 190955 20700 Stanley M Appel MD Director 50.00 0.00 X 734787 0 45063 Barbara L Bass MD Director 50.00 0.00 X 1478779 0 53875 Timothy B BooneMD PHD Director 50.00 0.00 X 1063154 0 51910 E Brian Butler MD Director 50.00 0.00 X 838744 0 62758 Jamie Gateno DDS MD Director 50.00 0.00 X 271479 0 54856 Alan Kaplan MD Director 50.00 0.00 X 487227 0 47048 Andrew G Lee MD Director 50.00 0.00 X 446301 0 44164 Alan B Lumsden MD Director 50.00 0.00 X 921875 0 65064 James M Musser MD PHD Director 45.00 0.00 X 933910 0 59069 Joseph J Naples MD Director 50.00 0.00 X 568065 0 25647 Miguel A Quinones MD Director 50.00 0.00 X 642485 0 48733 Richard J Robbins MD Director 50.00 0.00 X 890205 0 43251 Eric J Haufrect MD Director 48.00 2.00 X 0 92206 0 Gavin S Britz MD Director 50.00 0.00 X 685616 0 32468 Kevin Varner MD Director 50.00 0.00 X 947035 0 69904 Robert A Phillips MD PhD Director, Chairperson, President & CEO 30.00 20.00 X X 0 495334 9719 Reginald Munden MD Director 50.00 0.00 X 0 0 0 Ramon M Cantu Officer, part year 0.00 50.00 X 0 1010432 75487 Stephen Spielman Chief Operating Officer 45.00 5.00 X 355797 0 40356 Roberta L Schwartz Vice President 7.00 43.00 X 0 770195 49192 Edward L Tyrrell Treasurer 3.00 47.00 X 0 508965 47207 Kevin J Burns Secretary 1.00 47.00 X 0 811733 58568 Aldona Spiegel MD Physician 50.00 0.00 X 1779192 0 63120 Pierre Chevray MD Physician 50.00 0.00 X 1282901 0 26404 Vincent C Phan MD Physician 50.00 0.00 X 1489111 0 52425 Warren Ellsworth Physician 50.00 0.00 X 1213501 0 34664 Yi Zhang MD Physician 50.00 0.00 X 1266332 0 52994 Marc L Boom MD Officer, Former 0.00 50.00 X 0 1662154 46884 18296496 6191974 1281530 506 1 1 0 ATHENAHEALTH INC P O BOX 415615 BOSTON MA 02241 A/R SERVICES 1772575 ALLEGRO TRAVEL 19 BRIAR HOLLOW SUITE 246 HOUSTON TX 77027 TRAVEL SERVICES 507258 ADDISION SEARCH LLC 222 S RIVERSIDE PLAZA SUITE 1710 CHICAGO IL 60606 STAFFING SERVICE 433900 PULSE STAFFING 5353 WEST ALABAMA HOUSTON TX 77056 MEDICAL TEMP STAFFING 288273 BHADRESH B SHAH MD PA 4780 Sweetwater Blvd Suite 150 Sugar Land TX 77479 PHYSICIAN SERVICES 283242 17 64745 64251 128996 Professional Fees 900099 201523180 201523180 I/C Hospital Assoc Rev 900099 111706993 111706993 8951887 8951887 322182060 3292980 -3292980 -3292980 -3292980 319018076 322182060 0 -3292980 31159 31159 12009622 12009622 210938230 205764138 5174092 12315396 12021079 294317 17477325 17060580 416745 10192275 9954944 237331 1100000 1100000 16835416 10590902 6244514 456660 456660 9164007 8919451 244556 46286 38345 7941 11909004 11567109 341895 2384136 2327200 56936 748509 728251 20258 3684518 3476092 208426 6909004 6908454 550 Medical Supplies 8341980 8335931 6049 Research Fundning & Res 941333 941333 Intercompany Expenses 204387 204387 Other 26923 26923 11344 11344 325727514 311373904 14353610 0 788532 462192 17099885 19527505 179592 0 107471 0 38459113 17435636 17543068 21023477 6178751 603634 41897299 41616808 29322484 30727297 23683498 28482572 53005982 59209869 X -11108683 -17593061 -11108683 -17593061 41897299 41616808 X -6709438 225060 X 1 X 1 X 1 0 X X X 0 0 0 The Methodist Hospital 741180155 3 1 0 1 0 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 11070517 2785434 8285083 27388596 14650202 12738394 21023477 Due to Related Organization 28482572 28482572 X Part X, Line 2: The financial statements of TMH Physician Organization, doing business as Houston Methodist Specialty Physician Group (HM Specialty Physician Group), are included in the consolidated finanical statements of The Methodist Hospital, doing business as Houston Methodist (HM), which are audited by an independent accountant. HM did not recognize any adjustments related to uncertain tax positions as of December 31, 2013 1 Houston Area Parkinson Society 2700 Southwest Fwy Ste 296 Houston TX 77098 510138356 501 (c)(3) 15000 Medical Research 1 0 Part I, Line 2: Prior to HM Specialty Physician Group's approval of a grant to a requesting organization, the following criteria must be met: - The requesting organization must be an organization exempt from federal income tax under Section 501 (c) (3) of the Internal Revenue Code. - The requesting organization must provide a recognizable or demonstrable benefit to the community. - The mission of the requesting organization must augment the mission of HM Specialty Physician Group. - The requesting organization's mission and services should not duplicate and must not conflict with HM Specialty Physician Group. By following the above criteria, the Organization ensures all grants are used by receiving organizations for their exempt purpose. 0 1 0 0 0 0 0 1 0 Stuart M Dobbs MD Director 0 650000 0 0 0 0 0 0 0 0 0 650000 0 0 H Dirk Sostman MD Officer/Director, part year 0 0 0 90000 0 100955 0 20700 0 0 0 211655 0 0 Stanley M Appel MD Director 684432 0 10000 0 40355 0 25915 0 19148 0 779850 0 0 0 Barbara L Bass MD Director 1283895 0 127440 0 67444 0 21315 0 32560 0 1532654 0 0 0 Timothy B BooneMD PHD Director 887092 0 166000 0 10062 0 21315 0 30595 0 1115064 0 0 0 E Brian Butler MD Director 399508 0 432053 0 7183 0 21167 0 41591 0 901502 0 0 0 Jamie Gateno DDS MD Director 267093 0 0 0 4386 0 21167 0 33689 0 326335 0 0 0 Alan Kaplan MD Director 477969 0 0 0 9258 0 25800 0 21248 0 534275 0 0 0 Andrew G Lee MD Director 440556 0 3000 0 2745 0 21315 0 22849 0 490465 0 0 0 Alan B Lumsden MD Director 786813 0 125000 0 10062 0 21742 0 43322 0 986939 0 0 0 James M Musser MD PHD Director 703540 0 191500 0 38870 0 23483 0 35586 0 992979 0 0 0 Joseph J Naples MD Director 448720 0 60000 0 59345 0 21315 0 4332 0 593712 0 0 0 Miguel A Quinones MD Director 598813 0 0 0 43672 0 25915 0 22818 0 691218 0 0 0 Richard J Robbins MD Director 763832 0 65833 0 60540 0 21742 0 21509 0 933456 0 0 0 Gavin S Britz MD Director 635981 0 45598 0 4037 0 4217 0 28251 0 718084 0 0 0 Kevin Varner MD Director 940400 0 0 0 6635 0 25717 0 44187 0 1016939 0 0 0 Robert A Phillips MD PhD Director, Chairperson, President & C 0 340035 0 137309 0 17990 0 2347 0 7372 0 505053 0 0 Ramon M Cantu Officer, part year 0 669125 0 209749 0 131558 0 25915 0 49572 0 1085919 0 0 Stephen Spielman Chief Operating Officer 276024 0 57610 0 22163 0 22058 0 18298 0 396153 0 0 0 Roberta L Schwartz Vice President 0 521492 0 155176 0 93527 0 25875 0 23317 0 819387 0 0 Edward L Tyrrell Treasurer 0 346971 0 101588 0 60406 0 26347 0 20860 0 556172 0 0 Kevin J Burns Secretary 0 646131 0 140282 0 25320 0 26473 0 32095 0 870301 0 0 Aldona Spiegel MD Physician 1221484 0 555368 0 2340 0 27140 0 35980 0 1842312 0 0 0 Pierre Chevray MD Physician 606231 0 673160 0 3510 0 21125 0 5279 0 1309305 0 0 0 Vincent C Phan MD Physician 982998 0 502603 0 3510 0 20890 0 31535 0 1541536 0 0 0 Warren Ellsworth Physician 504962 0 707030 0 1509 0 20976 0 13688 0 1248165 0 0 0 Yi Zhang MD Physician 1221492 0 40000 0 4840 0 21167 0 31827 0 1319326 0 0 0 Marc L Boom MD Officer, Former 0 1012902 0 460000 0 189252 0 25885 0 20999 0 1709038 0 0 Part I, Line 3 The CEO of this organization is employed by a related organization who utilized the following items to establish compensation: (1) compensation committee; (2) independent compensation consultant; (3) compensation survey or study; (4) approval by the board or compensation committee. Part I, Line 4a Houston Methodist (HM) has a formal severance plan. Eligible employees include all staff including hourly staff up through senior vice presidents provided they work at least 20 hours per week and are not otherwise covered by a physician employment agreement. The plan only provides salary and benefits in the event an eligible employee is involuntarily terminated due to the elimination of their position or if their current position is significantly impacted by an organizational restructuring or change in requirement and a comparable position is not available within the organization. The eligible person must also sign a termination agreement in order to receive salary continuation and benefits under the plan to which they would not normally be eligible to receive under a voluntary resignation. Part I, Line 4b The Supplemental Physician Retirement Plan is a non-qualified employer funded plan. Funding is based upon a predetermined percentage of base salary paid. Contributions are made biweekly into a tax deferred account and are considered taxable upon vesting (i.e. completion of three years of vesting service). Once vested, each year's subsequent contribution is taxable within the calendar year in which the deposit was made. Account balances cannot be accessed until retirement or termination (whichever occurs first) and may be subject to non-revocable distribution options selected upon employment. Stanley H Appel, MD: $27,583; James M Musser, MD: $28,808; Richard J Robbins, MD: $30,822; Barbara Bass, MD: $52,000; and Joseph J Naples, MD: $27,000; all received monies from the Supplemental Physician Retirement Plan described above. The Supplemental Employee Retirement Plan is a non qualified employer funded plan. Contributions are made annually into a tax deferred account and are considered taxable upon vesting (i.e. completion of three years of vesting service). Once vested, each year's subsequent contribution is taxable within the calendar year in which the deposit was made. Account balances cannot be access until retirement or termination (whichever occurs first) and may be subject to non-revocable distribution options selected upon employment. Marc Boom, MD, Former Officer: $167,652; Edward L Tyrrell: $23,300; Ramon Cantu, Former Officer: $79,295; Roberta L Schwartz: $45,137; and H. Dirk Sostman, MD, Former Officer/Director: $12,645; all received monies from the Supplmental Employee Retirement Plan described above. Part I, Line 7 This organization provides variable compensation opportunity through an annual management incentive plan. A percent of the bonus payout is based on the consolidated operating income result of Houston Methodist, which includes the operating income results of this organization. The targeted operating income is part of the annual budget approved by the governing Board which takes into consideration operational goals, market conditions, past performance, and external benchmarking information. Form 990, Part I and Part III, Line 1 This organization is part of The Methodist Hospital, doing business as Houston Methodist Hospital, whose mission is: To provide high quality, cost-effective health care that delivers the best value to the people we serve in a spiritual environment of caring in association with internationally recognized teaching and research. Form 990, Part III, Line 4a The TMH Physician Organization, doing business as Houston Methodist Specialty Physician Group (HMSPG) was organized to engage in activities to further one or more of the following specific purposes: (i) the carrying out of scientific research and research projects in the public interest in the fields of medical sciences, medical economics, public health, sociology, and related areas; (ii) the supporting of medical education in medical schools through grants and scholarships, (iii) the improving and developing of abilities of individuals and institutions studying, teaching, and practicing medicine; (iv) the engaging in the instruction of the general public in the area of medical science, public health and hygiene and related instruction useful to the individual and beneficial to the community; and (v) the delivery of various modalities of health care to the public. In 2013, HMSPG pursued the above specific purposes largely through the employment of physicians that were organized in the departments according to the specialties. In 2013, HMSPG provided services through over 900,000 patient visits (excluding Anesthesia, MASTOS and Pathology services). As of December 31, 2013, HMSPG employed 394 physicians and 1,121 staff. Educational opportunities were provided to 246 HMSPG residents and fellows from various ACGME approved programs. Form 990, Part VI, Section A, line 4 On September 13, 2013, the Board of Directors of Houston Methodist, sole member of TMH Physician Organization, unanimously approved by Resolution to amend the Certification of Formation to reflect the change of the sole member of the corporation to TMH Health Care Group. Form 990, Part VI, Section A, line 6 TMH Health Care Group is the sole Corporate Member of this organization. Houston Methodist Hospital is the sole member of TMH Health Care Group. Form 990, Part VI, Section A, line 7a The sole Corporate Member of the organization, TMH Health Care Group, appoints the Board of Directors. Form 990, Part VI, Section A, line 7b The sole Corporate Member of the Organization (TMH Health Care Group) reserves the following powers: -to appoint and remove with or without cause the Directors of the organization; -to approve the incurrence by the organization of any indebtedness and all guarantees of the debt of another party; -to approve the annual operating and capital budgets of the organization after they are prepared and approved by the organization's Board of Directors; -to approve the dissolution of the organization; -to approve the organization's participation in partnerships and joint ventures; -to approve the acquisition or disposition by the organization of real property from or to a non-Corporation controlled organization through ownership, lease or otherwise; -to approve the disposition or acquisition by the organization of, or the investment by the organization in, another business or all or a portion of the business or operations of another business; -to establish, acquire or invest in any new or different business; and -to direct the organization in its actions as the corporate member or shareholder of other entities, including but not limited to, approving amendments to the articles of incorporation and bylaws of such other organizations. Form 990, Part VI, Section B, line 11 Management, including certain Officers, works diligently to complete the Form 990 and attached schedules (Return) in a thorough manner. The Return is prepared by a Paid Preparer. Form 990, Part VI, Section B, line 12c All individuals serving in a significant decision making capacity complete a Conflict of Interest (COI) questionnaire annually. A comprehensive evaluation and thorough review of all disclosures is performed by a 6-member COI Committee comprised of executives, management, and staff. The results of the COI disclosures are reported to the parent corporation, Houston Methodist Hospital's Audit & Compliance Committee and Board of Directors, including the actions being taken to protect the integrity of decision-making. In addition, disclosure results are also communicated to management and to affected committee chairs to promote transparency and to ensure that actions are taken and restrictions are imposed where appropriate. Conflicted individuals may not vote or exert self-serving influence on the disclosed matter. Form 990, Part VI, Section B, Lines 15a & 15b: Houston Methodist Hospital, the sole corporate memeber of TMH Health Care Group (sole corporate member of this organization) follows IRS regulations as it relates to establishing a rebuttable presumption of reasonableness related to total compensation of the CEO of this organization as well as other key employees and compensated officers of the organization listed below. It has established a process that includes the following elements: A separate committee of the board of HMH (the "Board Committee"), comprised of independent directors, meets at least annually to review, deliberate and make recommendations to the Board of HMH as it relates to any changes in total compensation including base pay, bonus awards from incentive programs or benefits and perquisites of the CEO. For 2013, the Board Committee reviewed and recommended compensation packages for the following positions: -EVP/Chief Medical Officer, Houston Methodist Hospital, who also serves as President, Chairperson & CEO for Houston Methodist Specialty Physician Group The Board Committee establishes that no member has any conflict of interest with regard to the executive compensation arrangements being approved. The Board Committee reviews and considers information provided by an external consultant engaged to ensure it has direct access to: -Compensation information paid by comparable organizations, for functionally comparable positions. -Compensation norms in the organization's immediate locale and from other independent compensation surveys by nationally recognized independent firms that represent the organization's logical peer group. -Compensation information that includes information on base salary, incentives, benefits and perquisites for total compensation comparison purposes to ensure reasonable competitive ranking. The Board Committee relies on the comparability data to reach consensus that its recommendations to the Board regarding executive compensation changes are reasonable and in line with organization's overall total compensation philosophy for executive pay. The deliberations and decisions of the Board Committee are contemporaneously substantiated. The compensation for positions held by the other compensated Officers and Directors listed on Part VII, Section A is determined based on a thorough review of numerous compensation studies conducted by nationally recognized, independent firms that provide market data for total compensation for similar positions. The compensation information considered includes information on base salary, incentives, and benefits for total compensation purposes to ensure reasonable competitive ranking in order to meet recruitment and retention objectives that secure the talent required to contribute to organizational success. Form 990, Part VI, Section C, line 19 The governing documents (except the Articles of Incorporation, which are on file with the Secretary of the State of Texas), conflict of interest policy and financial statements of the organization are not made available to the general public. Form 990, Part VII, Section A, Column B Certain officers/directors of Houston Methodist Specialty Physician Group are employees of Houston Methodist Hospital or its affiliates. These officers and directors who are employed by this or other related organizations work approximately 50 hours per week on behalf of this organization and other organizations of Houston Methodist (HM). The compensation shown on Schedule J reflects the total compensation earned for the officers/directors for the combined hours spent working for all the organizations in the HM. Form 990, Part XI, line 9: Equipment Transfers - Restricted Funds 225,060. The Methodist Hospital Self Insurance Trust 6565 Fannin Houston TX 77030 741948396 Insurance Trust TX 501 ( c ) (3) Line 11a, I The Methodist Hospital 0 Methodist Primary Care Group 4401 Garth Road Baytown TX 77521 760556120 Health Care TX 501 ( c ) (3) Line 11a, I TMH Health Care Group 0 Houston Methodist St John Hospital 18300 St John Dr Nassau Bay TX 77058 464389870 Health Care TX 501 ( c ) (3) Line 11a, I Methodist Health Centers 0 Houston Methodist St Catherine Hospital 701 S Fry Road Katy TX 77450 464402004 Health Care TX 501 ( c ) (3) Line 11a, I Methodist Health Centers 0 Medvest 1 Limited 6565 Fannin Houston TX 77030 760534067 Health Care Investments TX N/A Allied Methodist Hospital Physicians 6565 Fannin Houston TX 77030 760551274 Physician Group TX N/A C 0 Medvest Holdings Inc 6565 Fannin Houston TX 77030 760667765 Health Care Investments TX N/A C 0 Medvest Incorporated 6565 Fannin Houston TX 77030 760182470 Health Care Investment TX N/A C 0 Methodist Willowbrook MOB Condominium Assoc 6565 Fannin Houston TX 77030 680500294 Condo Assoc TX N/A C 0 Methodist Willowbrook MOB Condominium Assoc II 6565 Fannin Houston TX 77030 262137993 Condo Assoc TX N/A C 0 San Jacinto Methodist - Alexander Condominium Assoc 6565 Fannin Houston TX 77030 470921764 Condo Assoc TX N/A C 0 SJMH Condominium Association 6565 Fannin Houston TX 77030 412096917 Condo Assoc TX N/A C 0 The Methodist Hospital Condominium Association 6565 Fannin Houston TX 77030 861065871 Condo Assoc TX N/A C 0 TMH Medical Office Buildings Condominium Assoc 6565 Fannin Houston TX 77030 760287893 Condo Assoc TX N/A C 0 Methodist West Houston Medical Office Building Condo Assoc 6565 Fannin Houston TX 77030 300655123 Condo Assoc TX N/A C 0 Methodist International 6565 Fannin Houston TX 77030 300347273 Health Care Consulting TX N/A C 0 Methodist Delaware 6565 Fannin Houston TX 77030 462417339 Health Care Consulting DE N/A C 0 Methodist Health Care System Short Term Disability Plan Trust 6565 Fannin Houston TX 77030 766161019 Short Term Disability Plan TX N/A T 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 1 1 0 1