2014-05-13T16:39:32-05:00 2013-06-30 ERNST & YOUNG US LLP 4370 LA JOLLA VILLAGE DRIVE STE 500 SAN DIEGO CA 92122 990 2012-07-01 990238120 THE QUEEN'S HEALTH SYSTEMS % Clinton Yee QUEE 8085389011 1301 PUNCHBOWL STREET Suite HONOLULU HI 96813 Robert Nobriga 2014-05-13 8585357200 2012 2015-11-30 17:44:51Z ARTHUR A USHIJIMA 1301 PUNCHBOWL STREET HONOLULU HI 96813 76973690 false X WWW.QUEENSHEALTHSYSTEMS.COM X 1985 HI TO SUPPORT, PROMOTE AND MAINTAIN THE SUBSIDIARY AND AFFILIATE CORPORATIONS OF THE QUEEN'S HEALTH SYSTEMS AND TO PROMOTE, SUPERVISE, SUPPORT AND OTHERWISE CONTRIBUTE TO HEALTHCARE RELATED ACTIVITIES. 27 23 86 0 100701 801839 411191 23710455 29709061 1725287 6379695 0 0 26237581 36499947 438925 354079 0 0 15635492 19340715 0 0 0 8183500 10809773 24257917 30504567 1979664 5995380 73357867 73542316 32113814 26444669 41244053 47097647 X TO SUPPORT, PROMOTE AND MAINTAIN THE SUBSIDIARY AND AFFILIATE CORPORATIONS OF THE QUEEN'S HEALTH SYSTEMS AND TO PROMOTE, SUPERVISE, SUPPORT AND OTHERWISE CONTRIBUTE TO HEALTHCARE RELATED ACTIVITIES. false false 24937160 354079 29709061 THE QUEEN'S HEALTH SYSTEMS ("QHS") IS THE PARENT COMPANY OF THE QUEEN'S MEDICAL CENTER ("QMC"), QUEEN EMMA LAND COMPANY, QUEEN'S DEVELOPMENT CORPORATION, MOLOKAI GENERAL HOSPITAL ("MGH"), AND VARIOUS OTHER HEALTHCARE RELATED ENTITIES (COLLECTIVELY REFERRED TO AS "QUEEN'S"). 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RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 18674 113796 18674 113796 25627913 791495357 25646587 791609153 1000000 1000000 250000 250000 false 1000000 1000000 1000000 1000000 4000000 6000000 31942 46088 55188 113796 247014 250000 250000 250000 250000 1000000 1500000 40104 40104 1512385 1512385 0 9267850 7594554 1673296 181688 181688 1895088 INVESTMENT IN QDC -10538580 C INVESTMENT IN QIE -3003993 C POOLED INVESTMENTS-NON PUBLIC 32709027 F 19166454 DUE FROM AFFILIATES 13686892 FIRST TRUST ASSET 2100286 15787178 0 Due to affiliates 4982279 4982279 X ASC 740 SCHEDULE D, PART X, LINE 2 THE QUEEN'S HEALTH SYSTEM EVALUATES ITS UNCERTAIN TAX POSITIONS AND HAS NO MATERIAL UNRECOGNIZED TAX BENEFITS AS OF JUNE 30, 2013. true Univ of Hawaii Office of Research Services 2440 Campus Rd Box 368 Honolulu HI 96822 996000354 501(c)(3) 354079 General Support 1 Form 990, Schedule I Description of Organization's Procedures for Monitoring the Use of Grants THE QUEEN'S HEALTH SYSTEMS MAKES DONATIONS TO VARIOUS TAX-EXEMPT ORGANIZATIONS WITH THE PURPOSE OF PROVIDING OPPORTUNITIES FOR BETTER HEALTH AND WELLNESS TO ALL THE PEOPLE OF HAWAII. THERE ARE GENERALLY NO RESTRICTIONS PLACED ON THE USE OF THOSE DONATIONS AND THE RECEIVING ORGANIZATIONS MAY USE THE DONATIONS AT THEIR DISCRETION IN ORDER TO FURTHER THEIR EXEMPT PURPOSE. WHERE RESTRICTIONS ARE PLACED ON THE USE OF THOSE DONATIONS, QHS REQUESTS FINANCIAL REPORTS IN ORDER TO MONITOR SUCH USE. X X X X X true true false false false false false true false Arthur A Ushijima 860163 0 264958 0 58993 0 436171 0 13092 0 1633377 0 0 0 Janice Kalanihuia 184279 0 44957 0 13957 0 43995 0 12521 0 299709 0 0 0 Richard Keene 439218 0 98654 0 31959 0 64154 0 6621 0 640606 0 0 0 Eric Martinson 344577 0 83498 0 21920 0 51118 0 26706 0 527819 0 0 0 Sharlene Tsuda 198063 0 51143 0 16968 0 49262 0 12604 0 328040 0 0 0 Mark Yamakawa 468448 0 140060 0 41300 0 144705 0 16274 0 810787 0 0 0 Clinton Yee 0 162700 0 14300 0 6976 0 15284 0 20165 0 219425 0 0 Paula Yoshioka 370434 0 96681 0 16142 0 56435 0 9185 0 548877 0 0 0 Whitney Limm 360650 0 44100 0 29211 0 49872 0 14823 0 498656 0 0 0 John Nitao 312016 0 76642 0 25275 0 45889 0 17265 0 477087 0 0 0 Hunter Praywell 256618 0 66861 0 10458 0 34584 0 17068 0 385589 0 0 0 Carla Nishimoto 162400 0 16400 0 2322 0 15613 0 7128 0 203863 0 0 0 COMPENSATION COMMITTEE SCHEDULE J, PART I, LINE 3 COMPENSATION COMMITTEE REFERS TO A COMMITTEE OF THE ORGANIZATION'S GOVERNING BODY RESPONSIBLE FOR DETERMINING THE TOP MANAGEMENT OFFICIAL'S COMPENSATION PACKAGE, WHETHER OR NOT THE COMMITTEE HAS BEEN DELEGATED THE AUTHORITY TO MAKE AN EMPLOYMENT AGREEMENT WITH THE TOP MANAGEMENT OFFICIAL ON BEHALF OF THE ORGANIZATION. THE COMPENSATION COMMITTEE MAY ALSO HAVE OTHER DUTIES. SCHEDULE J, PART I, LINE 4A THE FOLLOWING INDIVIDUALS RECEIVED A SEVERANCE PAYMENT FROM QHS DURING THE YEAR: KANOE MARGOL - $59,242 SCHEDULE J, PART I, LINE 4B THE SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP) PROVIDES FOR AN UMBRELLA BENEFIT EQUAL TO A LIFE ANNUITY OF 60% OF FINAL AVERAGE SALARY AT NORMAL RETIREMENT AGE (WHICH BENEFIT IS OFFSET HOWEVER BY THE BENEFIT PROVIDED TO THE CEO UNDER THE QHS PENSION PLAN, THE QHS 401(K) PLAN FOR MATCHING CONTRIBUTIONS ONLY, THE QHS PENSION RESTORATION PLAN, AND 50% OF ESTIMATED SOCIAL SECURITY RETIREMENT BENEFITS.) NORMAL RETIREMENT AGE IS DEFINED AS AGE 65 AND THE BENEFIT VESTS AND IS PAID OUT AS A LUMP SUM AT THAT POINT REGARDLESS IF EMPLOYMENT IS CONTINUED PAST AGE 65. THERE WERE NO PAYOUTS DURING 2012. SCHEDULE J, PART I, LINE 7 RECOGNITION AWARDS WERE PAID TO ALL EMPLOYEES BASED ON ACCOMPLISHMENTS OF PREDETERMINED GOALS AND OBJECTIVES SET FORTH IN THE INCENTIVE AND STRATEGIC PLANS AND DEFINED ELIGIBILITY OF THE EMPLOYEE. RECOGNITION AWARDS ARE DISCRETIONARY AND CONSIDER QUALITY THRESHOLDS WHICH INCLUDE ANNUAL ACCREDITATION AND MINIMUM OPERATING INCOME LEVEL CRITERIA. IN ADDITION, EXECUTIVE AWARDS ARE WEIGHTED BASED ON INDIVIDUAL GOALS ESTABLISHED FOR EACH EXECUTIVE. COMPENSATION FOR SERVICES SCHEDULE J, PART II & FORM 990, PART VII ARTHUR A. USHIJIMA MR. USHIJIMA SERVES AS A TRUSTEE FOR THE QUEEN'S HEALTH SYSTEMS (PARENT COMPANY) AND SEVERAL OTHER QUEEN'S RELATED AFFILIATES. HE IS A VOLUNTEER TRUSTEE AND IS NOT COMPENSATED FOR THESE SERVICES. HIS HOURS SERVED AS A TRUSTEE FOR QHS IS 2 HOURS PER WEEK. MR. USHIJIMA ALSO SERVES AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE QUEEN'S HEALTH SYSTEMS (PARENT COMPANY) AND AS PRESIDENT OF QMC. THE COMPENSATION LISTED IS HIS TOTAL COMPENSATION FOR HIS VARIOUS SERVICES. MARK YAMAKAWA MR. YAMAKAWA SERVES AS EVP AND COO OF THE QUEEN'S HEALTH SYSTEMS (PARENT COMPANY), EVP AND COO OF QMC AND CHAIRMAN OF QDC. HE IS NOT SEPARATELY COMPENSATED FOR THESE VARIOUS SERVICES. THE COMPENSATION LISTED IS HIS TOTAL COMPENSATION FOR ALL SERVICES. JANICE KALANIHUIA MS. KALANIHUIA SERVES AS VP FOR THE QUEEN'S HEALTH SYSTEMS (PARENT COMPANY) AND PRESIDENT OF MGH. SHE IS NOT SEPARATELY COMPENSATED FOR THESE VARIOUS SERVICES. THE COMPENSATION LISTED IS HER TOTAL COMPENSATION FOR ALL SERVICES. RICHARD C. KEENE MR. KEENE SERVES AS QMC TREASURER, SVP/CFO AND TREASURER FOR THE QUEEN'S HEALTH SYSTEMS (PARENT COMPANY), TREASURER OF QEL AND TREASURER OF MGH. HE IS NOT SEPARATELY COMPENSATED FOR THESE SERVICES. THE COMPENSATION LISTED IS HIS TOTAL COMPENSATION FOR ALL SERVICES. SHARLENE TSUDA MS. TSUDA SERVES AS SECRETARY FOR QMC AND VP/SECRETARY FOR THE QUEEN'S HEALTH SYSTEMS (PARENT COMPANY). SHE IS NOT SEPARATELY COMPENSATED FOR THESE SERVICES. THE COMPENSATION LISTED IS HER TOTAL COMPENSATION FOR ALL SERVICES. JOHN S. NITAO MR. NITAO SERVES AS VP/GENERAL COUNSEL FOR THE QUEEN'S HEALTH SYSTEMS (PARENT COMPANY), SECRETARY OF QEL AND ON THE MANAGEMENT BOARD OF QIE AND QDC. THE COMPENSATION LISTED IS HIS TOTAL COMPENSATION FOR HIS VARIOUS SERVICES. ERIC MARTINSON MR. MARTINSON SERVES AS PRESIDENT OF QEL AND EVP AND CIO FOR THE QUEEN'S HEALTH SYSTEMS (PARENT COMPANY). HE IS NOT SEPARATELY COMPENSATED FOR THESE SERVICES. THE COMPENSATION LISTED IS HIS TOTAL COMPENSATION FOR ALL SERVICES. CLINTON YEE MR. YEE SERVES AS ASSISTANT TREASURER AND CORPORATE CONTROLLER OF QHS AND ASSISTANT TREASURER OF QMC AND QDC. HE IS NOT SEPARATELY COMPENSATED FOR THESE SERVICES. THE COMPENSATION LISTED IS HIS TOTAL COMPENSATION FOR ALL SERVICES. SUSAN HARAMOTO MS. HARAMOTO SERVES AS ASSISTANT SECRETARY OF QMC, QHS AND QDC AND COORDINATOR OF COMMUNITY DEVELOPMENT OF QHS. SHE IS NOT SEPARATELY COMPENSATED FOR THESE SERVICES. THE COMPENSATION LISTED IS HER TOTAL COMPENSATION FOR ALL SERVICES. WILLIAM G. OBANA, MD DR. OBANA SERVES AS A TRUSTEE FOR THE QUEEN'S HEALTH SYSTEMS (3 HOURS PER WEEK). HE IS A VOLUNTEER TRUSTEE AND IS NOT COMPENSATED FOR THESE SERVICES. THE REPORTABLE COMPENSATION FROM RELATED ORGANIZATIONS IS FOR HIS ON-CALL SERVICES AT THE QUEEN'S MEDICAL CENTER (ESTIMATED AVERAGE OF 11 HOURS PER WEEK). ROBB K. OHTANI, MD DR. OHTANI SERVES AS A TRUSTEE FOR THE QUEEN'S HEALTH SYSTEMS (2 HOURS PER WEEK). HE IS A VOLUNTEER TRUSTEE AND IS NOT COMPENSATED FOR THESE SERVICES. THE REPORTABLE COMPENSATION FROM RELATED ORGANIZATIONS IS FOR HIS ON-CALL SPECIALTY SERVICES AT THE QUEEN'S MEDICAL CENTER (ESTIMATED AVERAGE OF 12 HOURS PER WEEK). BANK OF HAWAII DONNA TANOUE, QHS TRUSTEE 123698 SEE PART V false Business Transactions With Interested Persons SCHEDULE L, PART IV DONNA TANOUE IS AN OFFICER OF BANK OF HAWAII, A FINANCIAL INSTITUTION WITH WHICH THE ORGANIZATION HAS A BANKING RELATIONSHIP. DURING THE YEAR, THE ORGANIZATION PAID FEES TO THIS FINANCIAL INSTITUTION OF $123,698. X FURNITURE/FIXTURES/EQUIP 1 57112 COST false false false PROGRAM SERVICE ACCOMPLISHMENTS FORM 990, PART III, LINE 4A THE MISSION OF QUEEN'S IS TO FULFILL THE INTENT OF QUEEN EMMA AND KING KAMEHAMEHA IV TO PROVIDE IN PERPETUITY QUALITY HEALTH CARE SERVICES TO IMPROVE THE WELL-BEING OF NATIVE HAWAIIANS AND ALL OF THE PEOPLE OF HAWAII. QHS FULFILLS ITS EXEMPT PURPOSE BY SUPPORTING THE QUEEN'S MEDICAL CENTER AND MOLOKAI GENERAL HOSPITAL. IN ADDITION, QHS SUPPORTS ITS SUBSIDIARIES BY PROVIDING ADMINISTRATIVE AND SUPPORT SERVICES (INCLUDING LEGAL, ACCOUNTING AND HUMAN RESOURCES). QMC SUPPORTS NATIVE HAWAIIAN HEALTH INITIATIVES THROUGH MANY OF ITS PROGRAMS AND SERVICES, PARTICULARLY ITS NATIVE HAWAIIAN HEALTH PROGRAM (NHHP). THE FOCUS AREAS OF NHHP INCLUDE IMPROVEMENTS IN CLINICAL OUTCOMES, HEALTHCARE TRAINING, RESEARCH, AND ACCESS AND OUTREACH. NHHP CONDUCTS ONGOING ASSESSMENT AND DEVELOPMENT OF QMC PROGRAMS AND SERVICES FOCUSED ON NATIVE HAWAIIANS, INCLUDING SPECIFIC CLINICAL PROGRAMS IN AREAS SUCH AS CARDIOLOGY, ONCOLOGY, COMPREHENSIVE WEIGHT MANAGEMENT, MEDICINE, NEUROSCIENCE, AND DIABETES. QMC COLLABORATES AND PARTNERS TO PROVIDE HEALTHCARE TRAINING AND EDUCATION OPPORTUNITIES TO NATIVE HAWAIIAN STUDENTS AND THOSE COMMITTED TO SERVING NATIVE HAWAIIAN COMMUNITIES FROM ADOLESCENCE TO GRADUATE STUDIES, SUCH AS, THE ULU KUKUI PROJECT, WHICH IS A PRE-COLLEGE SCIENCE EDUCATION PROGRAM AT STEVENSON MIDDLE SCHOOL TO PROMOTE EXCELLENCE IN SCIENCE EDUCATION AND THE PURSUIT OF BIOMEDICAL CAREERS BY NATIVE HAWAIIANS AND PACIFIC ISLANDERS. IN ADDITION, NHHP PROGRAMS FOCUS ON QUALITY IMPROVEMENT AND INCREASED ACCESS FOR NATIVE HAWAIIANS TO QMC AND COLLABORATE WITH THE NATIVE HAWAIIAN COMMUNITY IN EDUCATION, RESEARCH, AND COMMUNITY OUTREACH. THROUGH EACH OF THESE AREAS OF FOCUS, NHHP WORKS TO PROVIDE A FRAMEWORK FOR THE DEVELOPMENT, IMPLEMENTATION AND EVALUATION OF CLINICAL INITIATIVES THAT AIM TO ENHANCE THE OLA PONO (WELL BEING) OF NATIVE HAWAIIANS. IN ADDITION TO NHHP, MANY OF QMC'S PROGRAM SERVICES DESCRIBED BELOW PROVIDE BENEFITS TO NATIVE HAWAIIANS, INCLUDING COMPONENTS OF CHARITY CARE AND UNCOMPENSATED CARE PROVIDED TO OUR PATIENTS. IN MAY 2012, QHS AND ST. FRANCIS HEALTHCARE SYSTEM OF HAWAII ANNOUNCED A SIGNED LETTER-OF-INTENT TO ENABLE QHS TO EXPLORE THE FEASIBILITY OF ACQUIRING AND REOPENING THE FORMER HAWAII MEDICAL CENTER (HMC) WEST CAMPUS, WHICH WAS IN THE PROCESS OF BEING RETURNED TO ST. FRANCIS HEALTHCARE SYSTEM FOLLOWING A LENGTHY BANKRUPTCY PROCESS. IN DECEMBER 2012, QHS ANNOUNCED THAT IT OFFICIALLY ACQUIRED HMC FROM ST. FRANCIS HEALTHCARE SYSTEM OF HAWAII AND PLANS TO OPEN THE QUEENS MEDICAL CENTER - WEST OAHU IN 2014. TO SUPPORT THE QUEEN'S MISSION AND TO FULFILL THE TAX EXEMPT PURPOSE AS A CHARITABLE HOSPITAL, QUEEN'S PROVIDED THE FOLLOWING COMMUNITY BENEFITS, TOTALING APPROXIMATELY $120.5 MILLION ON A SYSTEM-WIDE BASIS, FOR THE YEAR ENDED JUNE 30, 2013. 1. UNCOMPENSATED CARE - QMC PROVIDES MEDICAL SERVICES TO PATIENTS WHO DO NOT HAVE THE ABILITY TO PAY (CHARITY CARE) AND PATIENTS WHO REFUSE TO PAY (BAD DEBTS). FOR THE YEAR ENDED JUNE 30, 2013, THE ESTIMATED COST OF PROVIDING CHARITY CARE AND FOR SERVICES THAT WERE BAD DEBTS WAS $3,189,000 AND $21,431,000 RESPECTIVELY. 2. QUEEN'S TRANSPLANT CENTER - IN JANUARY 2012, QMC OPENED THE ONLY ORGAN TRANSPLANT CENTER IN HAWAII AND THE PACIFIC BASIN. THIS NEW CENTER IS HOME TO PHYSICIANS AND STAFF WITH OVER 20 YEARS OF EXPERIENCE IN TRANSPLANTATION. FOR THE YEAR ENDED JUNE 30, 2013, THE ESTIMATED COST OF OPERATIONS OF THE QUEEN'S TRANSPLANT CENTER WAS $1,514,000 AND CAPITAL INVESTMENTS MADE TOTALED $34,000. 3. BEHAVIORAL HEALTH - QMC PROVIDES INPATIENT AND OUTPATIENT BEHAVIORAL HEALTH SERVICES THAT ARE NECESSARY AND IN CERTAIN INSTANCES, NOT GENERALLY AVAILABLE IN THE STATE OF HAWAII. THE ESTIMATED COST OF OPERATIONS RESULTING FROM BEHAVIORAL HEALTH SERVICES WAS $3,538,000 FOR THE YEAR ENDED JUNE 30, 2013. 4. QUEEN EMMA CLINICS - QMC PROVIDES OUTPATIENT SERVICES TO INDIGENT PATIENTS AND OTHERS THROUGH THE QUEEN EMMA CLINICS. THE ESTIMATED COST OF OPERATION OF THE QUEEN EMMA CLINICS WAS APPROXIMATELY $5,894,000 FOR THE YEAR ENDED JUNE 30, 2013. 5. ON CALL PHYSICIAN COMPENSATION - QMC MAINTAINS THE ONLY LEVEL II TRAUMA CENTER IN THE STATE OF HAWAII. IN ORDER TO PROVIDE LEVEL II TRAUMA COVERAGE, THE MEDICAL CENTER INCURRED APPROXIMATELY $9,720,000 IN ON CALL PHYSICIAN COVERAGE DURING THE YEAR ENDED JUNE 30, 2013. 6. FELLOWSHIP, RESIDENT AND INTERN COSTS - QMC INCURRED COSTS IN EXCESS OF REIMBURSEMENT OF APPROXIMATELY $11,420,000 DURING THE YEAR ENDED JUNE 30, 2013 RELATED TO ITS CARDIAC FELLOWSHIP, RESIDENT AND INTERN PROGRAMS. AS A TEACHING FACILITY, THE MEDICAL CENTER PARTICIPATES IN AND SHARES THE COSTS OF THE HAWAII RESIDENCY PROGRAM. 7. HAWAII MEDICAL LIBRARY - QMC MAINTAINS A MEDICAL LIBRARY THAT BENEFITS HEALTHCARE PROFESSIONALS IN THE STATE OF HAWAII. THE ESTIMATED COST OF OPERATING THE HAWAII MEDICAL LIBRARY FOR THE YEAR ENDED JUNE 30, 2013 WAS $702,000. 8. TRANSFER HOTLINE - QMC MAINTAINS A CARDIAC TRANSFER HOTLINE AND A REFERRAL HOTLINE TO ASSIST PATIENTS AND OTHER HEALTHCARE PROVIDERS WITH THE TRANSFER AND/OR REFERRAL OF PATIENTS TO APPROPRIATE HEALTHCARE SERVICES. THE ESTIMATED COST OF PROVIDING THESE SERVICES FOR THE YEAR ENDED JUNE 30, 2013 WAS $1,429,000. 9. TRANSPORTATION SERVICES - QMC PROVIDES TRANSPORTATION TO AND FROM THE MEDICAL CENTER TO PATIENTS WHO REQUIRE ASSISTANCE. THE COST OF PROVIDING THESE SERVICES WAS $94,000 FOR THE YEAR ENDED JUNE 30, 2013. 10. HEALTH AND WELLNESS EDUCATION - QMC PROVIDES HEALTH AND WELLNESS EDUCATION TO THE COMMUNITY IN AN EFFORT TO PROMOTE HEALTHY LIFESTYLES. FOR THE YEAR ENDED JUNE 30, 2013, THE COST OF PROVIDING HEALTH AND WELLNESS EDUCATION WAS $519,000. 11. RESEARCH LOSSES - QMC EMPLOYS STAFF AND INCURS UNFUNDED COSTS FOR MEDICAL RESEARCH. FOR THE YEAR ENDED JUNE 30, 2013, RESEARCH COSTS WERE $1,404,000. 12. CHARITABLE CONTRIBUTIONS - QMC MAKES CONTRIBUTIONS TO OUTSIDE CHARITABLE ORGANIZATIONS. FOR THE YEAR ENDED JUNE 30, 2013, CONTRIBUTIONS TO OUTSIDE CHARITABLE ORGANIZATIONS WERE $1,452,000. OF THIS AMOUNT, $354,000 WAS FOR FUNDING TO THE DEPARTMENT OF NATIVE HAWAIIAN HEALTH UNDER THE JOHN A. BURNS SCHOOL OF MEDICINE OF THE UNIVERSITY OF HAWAII AND $750,000 WAS DONATED TO THE UNIVERSITY OF HAWAII CANCER CONSORTIUM. 13. EMERGENCY PREPAREDNESS - QMC IS THE ONLY LEVEL II TRAUMA CENTER IN THE STATE OF HAWAII. QMC ALLOCATED RESOURCES TO PLAN AND TEST ITS READINESS FOR COMMUNITY EMERGENCIES, INCLUDING TRAUMA, TERRORIST ATTACKS AND CONDITIONS RESULTING FROM HAZARDOUS MATERIAL SPILLS. FOR THE YEAR ENDED JUNE 30, 2013, THE COSTS OF EMERGENCY PREPAREDNESS WERE $507,000. 14. ELECTRICAL GENERATOR PROJECT - IN ORDER TO MAINTAIN NECESSARY LIFE SUPPORT, DIAGNOSTIC AND OPERATING SYSTEMS, IN THE EVENT OF AN EMERGENCY, QMC SIGNIFICANTLY UPGRADED ITS POWER PLANT BY ADDING TWO NEW GENERATORS THAT ARE CAPABLE OF PROVIDING ELECTRICAL POWER FOR THE MEDICAL CENTER. FOR THE YEAR ENDED JUNE 30, 2013, COSTS INCURRED FOR THE ELECTRICAL GENERATOR PROJECT WERE $36,000. TOTAL PROJECT COSTS INCURRED AS OF JUNE 30, 2013 WERE APPROXIMATELY $34,174,000. 15. MEDICAID SHORTFALL IN PAYMENTS - QMC PROVIDES INPATIENT AND OUTPATIENT SERVICES TO MEDICAID PATIENTS IN THE STATE OF HAWAII. QMC INCURRED COSTS IN EXCESS OF REIMBURSEMENT OF APPROXIMATELY $30,132,000 DURING THE YEAR ENDED JUNE 30, 2013. 16. MEDICARE SHORTFALL IN PAYMENTS - QMC PROVIDES INPATIENT AND OUTPATIENT SERVICES TO MEDICARE PATIENTS IN THE STATE OF HAWAII. QMC INCURRED COSTS IN EXCESS OF REIMBURSEMENT BASED ON MEDICARE COST REPORTS OF APPROXIMATELY $21,316,000 DURING THE YEAR ENDED JUNE 30, 2013. CONSISTENT WITH COST REPORT REQUIREMENTS, THERE ARE AMOUNTS THAT ARE EXCLUDED FROM THE COSTS ABOVE. 17. LEASE PRICING BELOW FAIR MARKET VALUE - QMC EXTENDED LEASE RATES TO THE UNIVERSITY OF HAWAII THAT ARE BELOW FAIR MARKET VALUE. FOR THE YEAR ENDED JUNE 30, 2013, REVENUES FOREGONE FROM LEASE RATES THAT WERE BELOW FAIR MARKET VALUE WERE $63,000. 18. PROGRAMS THAT IMPROVE ACCESS TO HEALTHCARE - QMC IMPROVES THE COMMUNITY'S ACCESS TO HEALTHCARE BY HELPING PATIENTS QUALIFY FOR MEDICAID AND OTHER TYPES OF INSURANCE. FOR THE YEAR ENDED JUNE 30, 2013, THESE PROGRAM COSTS TOTALED $1,000,000. 19. MOLOKAI GENERAL HOSPITAL - QUEEN'S SUPPORTS MGH IN PROVIDING HEALTHCARE SERVICES TO THE ISLAND OF MOLOKAI. FOR THE YEAR ENDED JUNE 30, 2013, QHS INCURRED COSTS FROM OPERATIONS OF $432,000. 20. NATIVE HAWAIIAN HEALTH AT QMC - QUEEN'S SUPPORTS A NATIVE HAWAIIAN HEALTH PROGRAM AT QMC. FOR THE YEAR ENDED JUNE 30, 2013, EXPENSES TOTALED APPROXIMATELY $1,365,000. 21. KINAU STREET OFF-RAMP IMPROVEMENT PROJECT - IN ORDER TO IMPROVE ACCESS TO ITS EMERGENCY DEPARTMENT AND HOSPITAL, QMC, IN CONJUNCTION WITH THE STATE DEPARTMENT OF TRANSPORTATION AND CITY DEPARTMENT OF TRANSPORTATION SERVICES, BEGAN CONSTRUCTION TO THE KINAU STREET OFF-RAMP. FOR THE YEAR ENDED JUNE 30, 2013, COSTS INCURRED FOR THE IMPROVEMENT PROJECT WERE $534,000. 22. DENTAL CLINIC - QMC PROVIDES DENTAL SERVICES TO INDIGENT PATIENTS AND OTHERS THOUGH ITS DENTAL CLINIC. THE COST OF OPERATIONS FROM THE DENTAL CLINIC WAS APPROXIMATELY $502,000 FOR THE YEAR ENDED JUNE 30, 2013. 23. DONATED USE OF CONFERENCE ROOMS - QMC ALLOWS PHYSICIANS AND TEACHERS FROM THE JOHN A. BURNS SCHOOL OF MEDICINE OF THE UNIVERSITY OF HAWAII, VARIOUS GOVERNMENTAL ENTITIES INCLUDING THE HAWAII DEPARTMENT OF HEALTH AND OTHER NONPROFIT ORGANIZATIONS THE FREE USE OF ITS FACILITIES AT THE QUEEN'S CONFERENCE CENTER. FOR THE YEAR ENDED JUNE 30, 2013, THE VALUE OF THE USE OF THE CENTER WAS $291,000. 24. JOB SHADOWING PROGRAM - QMC SPONSORS A JOB SHADOWING PROGRAM FOR STUDENTS IN THE STATE OF HAWAII. FOR THE YEAR ENDED JUNE 30, 2013, COSTS INCURRED FOR THE PROGRAM WERE $10,000. 25. QMC NURSING PROGRAM - QMC PROVIDES NURSING INTERNSHIPS AND NURSE TRAINING THAT HELP ADDRESS THE CONTINUED NEED FOR SKILLED NURSES IN THE ISLANDS. FOR THE YEAR ENDED JUNE 30, 2013, THESE COSTS TOTALED $1,656,000. 26. HOSPITAL MINISTRY - QMC PROVIDES NON-DENOMINATIONAL SPIRITUAL GUIDANCE AND SUPPORT TO ITS PATIENTS AND THEIR FAMILIES THROUGH ITS HOSPITAL MINISTRY PROGRAM. QUALIFIED, PROFESSIONAL CHAPLAINS ARE PRESENT TO PROVIDE MINISTRY SERVICES 24-HOURS A DAY, 7-DAYS A WEEK. FOR THE YEAR ENDED JUNE 30, 2013, THE COST OF THESE SERVICES TOTALED $337,000. 27. COMMUNITY OUTREACH - QHS EMPLOYEES VOLUNTEER THEIR TIME AND EXPERIENCE PROVIDING FREE LECTURES TO MEMBERS OF THE COMMUNITY INCLUDING PROFESSIONALS, STUDENTS AND MEMBERS OF THE PUBLIC. 28. VOLUNTEER EFFORTS - QHS EMPLOYEES PERIODICALLY VOLUNTEER FOR OTHER CHARITABLE ORGANIZATIONS. FOR THE YEAR ENDED JUNE 30, 2013, THESE EVENTS INCLUDED THE AMERICAN HEART ASSOCIATION'S "HEART WALK", WAIKIKI IMPROVEMENT ASSOCIATION'S "BEACH CLEAN UP" AND THE AMERICAN DIABETES ASSOCIATION'S "STEP OUT" FUNDRAISER. IN ADDITION, QMC OFFICERS DEDICATE MANY HOURS SERVING AS VOLUNTEER BOARD MEMBERS FOR OTHER HAWAII BASED CHARITABLE ORGANIZATIONS. DESCRIBE THE PROCESS USED BY MANAGEMENT &/OR GOVERNING BODY TO REVIEW 990 FORM 990, PART VI, LINE 11B THE FORM 990 FOR THE QUEEN'S HEALTH SYSTEMS (QHS) AND THE SEPARATE FORMS FOR EACH OF THE NOT-FOR-PROFIT SUBSIDIARIES OF QHS WERE REVIEWED BY THE GOVERNING BODY PRIOR TO THE FILING OF THE TAX RETURNS. THE QHS FINANCE COMMITTEE, WHICH IS COMPRISED OF MEMBERS OF THE QHS BOARD OF TRUSTEES, WAS DELEGATED THE RESPONSIBILITY TO REVIEW THE RETURNS PRIOR TO THEIR FILING. THE RETURNS WERE PRESENTED TO THE COMMITTEE BY MANAGEMENT AND BY THE INDEPENDENT PUBLIC ACCOUNTING FIRM THAT PREPARED THE RETURNS. IN ADDITION, COMPENSATION RELATED DISCLOSURES IN THE RETURNS WERE REVIEWED BY THE CHAIRPERSON OF THE QHS COMPENSATION COMMITTEE PRIOR TO FILING THE RETURNS. ALSO, A COPY OF THE QHS RETURNS WERE MADE AVAILABLE TO EACH OF THE MEMBERS OF THE QHS BOARD OF TRUSTEES PRIOR TO THE RETURNS BEING FILED WITH THE INTERNAL REVENUE SERVICE. DESCRIPTION OF PROCESS TO MONITOR TRANSACTIONS FOR CONFLICTS OF INTEREST FORM 990, PART VI, LINE 12C ALL QHS COMPANIES ARE SUBJECT TO A WRITTEN CONFLICT OF INTEREST POLICY. ALL TRUSTEES, OFFICERS, DESIGNATED EMPLOYEES AND CONTRACTORS ARE REQUIRED TO COMPLETE AN ANNUAL DISCLOSURE FORM. THE DESIGNATED EMPLOYEES ARE THOSE SELECTED BY EXECUTIVES IN THE ORGANIZATION WHO IDENTIFY THOSE EMPLOYEES (TYPICALLY MANAGER LEVEL AND ABOVE) WHO MAY BE IN A POSITION TO SELECT OR INFLUENCE THE SELECTION OF A VENDOR. DISCLOSURES ARE SUMMARIZED AND MAINTAINED BY EACH COMPANY'S CORPORATE SECRETARY. THE CONTRACTS DEPARTMENT AND LEGAL DEPARTMENT HAVE THE CONFLICT OF INTEREST SUMMARIES AND CHECK FOR CONFLICTS OF INTEREST AT THE BEGINNING OF THE CONTRACT PROCESS. ANY CONFLICT OF INTEREST INVOLVING A TRUSTEE IS PRESENTED TO THE BOARD OF TRUSTEES. ANY TRANSACTION INVOLVING A DISQUALIFIED PERSON IS SUBJECT TO THE PROCESS OF ESTABLISHING A REBUTTABLE PRESUMPTION OF REASONABLENESS. ANY TRUSTEE WITH A CONFLICT OF INTEREST IS EXCUSED FOR THE PORTION OF THE MEETING WHERE THE SUBJECT MATTER IS DISCUSSED AND VOTED ON. OFFICES & POSITIONS FOR WHICH PROCESS WAS USED, & YEAR PROCESS WAS BEGUN FORM 990, PART VI, LINES 15A AND 15B A COMMITTEE OF THE BOARD OF TRUSTEES CALLED THE COMPENSATION COMMITTEE MEETS REGULARLY TO REVIEW THE COMPENSATION OF ALL EXECUTIVES OF ALL COMPANIES WITHIN QHS. QHS' EXECUTIVE COMPENSATION IS REVIEWED ANNUALLY FOR ITS PRESIDENT/CEO, EXECUTIVE VP/COO, QHS SENIOR VP/CFO, QHS SENIOR VP ENDOWMENT, QHS SENIOR VP CORPORATE DEVELOPMENT, QHS VP GENERAL COUNSEL, QHS VP HUMAN RESOURCES, QHS VP INFORMATION TECHNOLOGY/CIO, QHS VP COMMUNITY DEVELOPMENT, QHS VP MEDICAL AFFAIRS AND QHS VP CLINICAL INTEGRATION. ALL DECISIONS REGARDING EXECUTIVE COMPENSATION ARE MADE IN CONFORMITY WITH THE PROCEDURES REQUIRED TO ESTABLISH A REBUTTABLE PRESUMPTION OF REASONABLENESS. ANY ADJUSTMENT TO COMPENSATION IS SUBJECT TO THE PROCESS OF PERFORMANCE REVIEWS AND COMPARISON TO COMPARABLE COMPENSATION DATA PREPARED BY A NATIONALLY RECOGNIZED INDEPENDENT COMPENSATION CONSULTANT. OUTSIDE COUNSEL ASSISTS WITH THE REVIEW PROCESS AND DOCUMENTS THE DECISIONS OF THE COMMITTEE. AVAIL OF GOV DOCS, CONFLICT OF INTEREST POLICY, & FIN STMTS TO GEN PUBLIC FORM 990, PART VI, LINE 19 QHS'S GOVERNING DOCUMENTS ARE AVAILABLE UPON REQUEST AND THE QHS' CONSOLIDATED AUDITED FINANCIAL STATEMENTS ARE ATTACHED TO MOLOKAI GENERAL HOSPITAL'S ("MGH") TAX RETURN, AS REQUIRED. QHS DOES NOT MAKE ITS CONFLICT OF INTEREST POLICY AVAILABLE TO THE PUBLIC. OTHER FEES FOR SERVICES FORM 990, PART IX, LINE 11G CONSULTING FEES $3,461,911 OTHER PROFESSIONAL FEES $ 60,557 ---------- TOTAL $3,522,468 OTHER CHANGES IN NET ASSETS FORM 990, PART XI, LINE 9 Pension FAS87 adjustment $ 592,426 Change in Other Comprehensive Income 934,775 Transfer from QMC (57,112) Net assets transferred to affiliates 340,696 Rounding (1) ----------- Total $ 1,810,784 The Queen's Medical Center 1301 Punchbowl Street Honolulu HI 96813 990073524 Medical Svcs HI 501(c)(3) 3 QHS true Queen Emma Land Company 1301 Punchbowl Street Honolulu HI 96813 990183769 Support Svcs HI 501(c)(3) 11 Type 2 QHS true Molokai General Hospital PO Box 408 Kaunakakai HI 96748 990251372 Health Care HI 501(c)(3) 3 QHS true HAMQueen's PET 943266916 PET Imaging HI NA N/A The Queen's Development Corporation 1301 Punchbowl Street Honolulu HI 96813 990240109 Development HI QHS C Corp 113798978 138886211 1.00000 true Queen's Insurance Exchange Inc 1301 Punchbowl Street Honolulu HI 96813 911913839 Insurance HI QHS C Corp 2264212 25120450 1.00000 true Diagnostic Laboratory Services Inc 99-859 Iwaiwa Street Aiea HI 96701 990240499 Medical Lab Svcs HI NA C Corp true true false true false false true false false false false false false false false false true true false false Queen's Insurance Exchange A-I 536614 FMV Queen's Medical Center C 411191 FMV Queen's Medical Center P 1026030 FMV The Queen's Development Corporation F 13000000 FMV Queen's Insurance Exchange F 3466500 FMV Molokai General Hospital Q 404783 FMV Queen Emma Land Company Q 6364323 FMV Queen's Medical Center Q 19769603 FMV The Queen's Development Corporation Q 2784953 FMV Queen's Insurance Exchange Q 293894 FMV IDENTIFICATION OF RELATED ORGANIZATIONS TAXABLE AS A PARTNERSHIP SCHEDULE R, PART III HAMAMATSU/QUEEN'S PET IMAGING CENTER, LLC EIN: 94-3266916 ADDRESS: 1301 PUNCHBOWL STREET HONOLULU, HI 96813 Name: Queen Emma Land Company Address: 1301 Punchbowl Street Honolulu, HI 96813 EIN: 99-0183769 Expenses: $34,297,301 Share of excess Lobbying Expenditures: $0 Name: The Queen's Health Systems Address: 1301 Punchbowl Street Honolulu, HI 96813 EIN: 99-0238120 Expenses: 25,627,913 Share of excess Lobbying Expenditures: $0 Name: The Queen's Medical Center Address: 1301 Punchbowl Street Honolulu, HI 96813 EIN: 99-0073524 Expenses: $723,081,753 Share of excess Lobbying Expenditures: $0 Name: Molokai General Hospital Address: P.O. Box 408 Kaunakakai, HI 96748 EIN: 99-0251372 Expenses: $8,488,690 Share of excess Lobbying Expenditures: $0