Baylor Specialty Health Centers: Form 990, tax year 2011

View the entire original 990 at ProPublica ↗

Organization: Baylor Specialty Health Centers (EIN 75-1765385)
Tax period: 2011-07-01 to 2012-06-30
Filed: 2013-05-10
IRS object ID: 201311309349303506
Schema version: 2011v1.2
Source: Download XML · Original 990 at ProPublica

Every field in the e-filed return. Faint text is the IRS element name, for citing.

Return header
Form 990
Schedule A
Schedule B
Schedule C
Schedule D
Schedule H
Schedule I
Schedule J
Schedule O
Schedule R

Return header ReturnHeader

Field	Value	IRS element (for citing)
Timestamp	2013-05-10T20:29:40-05:00	Timestamp
Tax Period End Date	2012-06-30	TaxPeriodEndDate
Return Type	990	ReturnType
Tax Period Begin Date	2011-07-01	TaxPeriodBeginDate

Filer Filer

Field	Value	IRS element (for citing)
EIN	751765385	EIN

Name Name

Field	Value	IRS element (for citing)
Business Name Line1	Baylor Specialty Health Centers	BusinessNameLine1

Field	Value	IRS element (for citing)
Name Control	BAYL	NameControl
Phone	2148204135	Phone

US Address USAddress

Field	Value	IRS element (for citing)
Address Line1	2001 Bryan Street No 2200	AddressLine1
City	Dallas	City
State	TX	State
ZIP Code	752013005	ZIPCode

Officer Officer

Field	Value	IRS element (for citing)
Name	Clint Stapp	Name
Title	VP Finance/HFO	Title
Phone	2148204135	Phone
Date Signed	2013-05-08	DateSigned

Field	Value	IRS element (for citing)
Tax Year	2011	TaxYear
Build TS	2016-02-24 21:20:13Z	BuildTS

Form 990 IRS990

Field	Value	IRS element (for citing)
Name Of Principal Officer Person	Liz Youngblood	NameOfPrincipalOfficerPerson

Address Principal Officer US AddressPrincipalOfficerUS

Field	Value	IRS element (for citing)
Address Line1	3504 Swiss Ave	AddressLine1
City	Dallas	City
State	TX	State
ZIP Code	75204	ZIPCode

Field	Value	IRS element (for citing)
Gross Receipts	62364669	GrossReceipts
Group Return For Affiliates	0	GroupReturnForAffiliates
Organization501c3	X	Organization501c3
Web Site	www.BaylorHealth.com	WebSite
Type Of Organization Corporation	X	TypeOfOrganizationCorporation
Year Formation	1981	YearFormation
State Legal Domicile	TX	StateLegalDomicile
Activity Or Mission Description	Faith based long term acute care hospitals providing exemplary adult and pediatric health care services to the residents of Dallas County and the surrounding communities.	ActivityOrMissionDescription
Nbr Voting Members Governing Body	12	NbrVotingMembersGoverningBody
Nbr Independent Voting Members	10	NbrIndependentVotingMembers
Total Nbr Employees	628	TotalNbrEmployees
Total Nbr Volunteers	51	TotalNbrVolunteers
Total Gross UBI	0	TotalGrossUBI
Net Unrelated Business Txbl Income	0	NetUnrelatedBusinessTxblIncome
Contributions Grants Prior Year	349943	ContributionsGrantsPriorYear
Contributions Grants Current Year	395050	ContributionsGrantsCurrentYear
Program Service Revenue Prior Year	64504153	ProgramServiceRevenuePriorYear
Program Service Revenue CY	59169605	ProgramServiceRevenueCY
Investment Income Prior Year	326643	InvestmentIncomePriorYear
Investment Income Current Year	299927	InvestmentIncomeCurrentYear
Other Revenue Prior Year	0	OtherRevenuePriorYear
Other Revenue Current Year	0	OtherRevenueCurrentYear
Total Revenue Prior Year	65180739	TotalRevenuePriorYear
Total Revenue Current Year	59864582	TotalRevenueCurrentYear
Grants And Similar Amnts Prior Year	0	GrantsAndSimilarAmntsPriorYear
Grants And Similar Amnts CY	75215	GrantsAndSimilarAmntsCY
Benefits Paid To Members Prior Year	0	BenefitsPaidToMembersPriorYear
Benefits Paid To Members CY	0	BenefitsPaidToMembersCY
Salaries Etc Prior Year	35499719	SalariesEtcPriorYear
Salaries Etc Current Year	33700943	SalariesEtcCurrentYear
Total Prof Fundrsng Exp Prior Year	0	TotalProfFundrsngExpPriorYear
Total Prof Fundrsng Exp CY	0	TotalProfFundrsngExpCY
Total Fundrsng Exp Current Year	0	TotalFundrsngExpCurrentYear
Other Expense Prior Year	28657389	OtherExpensePriorYear
Other Expenses Current Year	29039393	OtherExpensesCurrentYear
Total Expenses Prior Year	64157108	TotalExpensesPriorYear
Total Expenses Current Year	62815551	TotalExpensesCurrentYear
Revenues Less Expenses Prior Year	1023631	RevenuesLessExpensesPriorYear
Revenues Less Expenses CY	-2950969	RevenuesLessExpensesCY
Total Assets BOY	34052520	TotalAssetsBOY
Total Assets EOY	30516965	TotalAssetsEOY
Total Liabilities BOY	2256988	TotalLiabilitiesBOY
Total Liabilities EOY	1510888	TotalLiabilitiesEOY
Net Assets Or Fund Balances BOY	31795532	NetAssetsOrFundBalancesBOY
Net Assets Or Fund Balances EOY	29006077	NetAssetsOrFundBalancesEOY
Info In Schedule O Part III	X	InfoInScheduleOPartIII
Mission Description	To serve a unique population of patients with multiple acute physical care needs in a comprehensive multidisciplinary long term acute care setting with a commitment to excellence in safe and cost effective patient care providing outcomes that contribute to the commitment and value of the Baylor Health Care System.	MissionDescription
Significant New Program Services	0	SignificantNewProgramServices
Significant Change	0	SignificantChange
Expense	54566972	Expense
Grants	75215	Grants
Revenue	59169605	Revenue
Description	See Schedule OBaylor Health Specialty Centers is comprised of two separately licensed hospitals: Baylor Specialty Hospital (BSH) and Our Children's House at Baylor (OCH), or collectively, BSHC. BSHC is an affiliate of Baylor Health Care System (BHCS), a nationally acclaimed network of acute care hospitals and related health care entities providing quality patient care, medical education, medical research and other community services to the North Texas region. During the fiscal year ended June 30, 2012, both hospitals admitted a total of 1,461 inpatients resulting in 36,171 days of care and treated 29,340 outpatients.During the year, BSHC reported community benefits (as reported to the Texas Department of State Health Services, and in accordance with the State of Texas Statutory methodology) of $8,211,814. BSHC provided community benefits (as reported on the Internal Revenue Service Form 990, Schedule H) of $6,449,230 during the tax year. The Texas Annual Statement of Community Benefit Standard includes approximately $3,383,246 of unreimbursed cost of Medicare that is not included in the IRS Form 990, Schedule H.BSH is a faith-based, nonprofit, 68-bed long-term acute care hospital providing exemplary adult care to patients in Dallas and the surrounding communities. BSH was established in 1989 to provide patients who needed a long-term acute care option with the same level of quality and compassion for which BHCS is known. From services such as cardiac management, stroke recovery and wound care to pulmonary care and other medically complex issues, acutely ill patients receive the focused attention of an experienced team of trained specialists supported by advanced medical technology designed specifically for such complex cases. This coordinated treatment is offered in a setting that allows proper time for recovery. Some of these services are provided despite a financial loss to BSH.BSH provided supervisory education programs for the training of future nurses and other respiratory health professionals in an effort to increase the supply of health care professionals nationwide. Assisting with the preparation of future nurses and other allied health professionals at entry and advanced levels of care education is critical to establishing a workforce of qualified health care providers. During the year, BSH invested 5,940 hours in training 35 undergraduate health professionals. Total unreimbursed cost of providing this health professional education program is $53,080.BSH provides transportation programs for patients and families to enhance patient access to care for low-income patients and families. Patients often transfer between BSH and other hospitals and treatment facilities as needed for their recovery. This service was provided at a cost of $204,379 for fiscal year 2012. OCH is a faith-based, nonprofit, 54-bed pediatric hospital. Opened in 1993, OCH provides coordinated comprehensive exemplary pediatric care to children with special health care needs and has grown to include nine outpatient clinics throughout the Dallas/ Fort Worth Metroplex. OCH is a licensed pediatric hospital dedicated to giving quality care to children from infancy to age 18 who need medical care and treatment for developmental and birth disorders, traumatic injury and severe illnesses. Children come to the OCH with a variety of conditions including communication disorders, developmental delay, traumatic injury, feeding disorders, congenital disorders, chromosomal abnormalities, premature birth and more. Parents of patients at the OCH find an extraordinary amount of support, education and counseling. An average inpatient length of stay is one month because of the time required to equip parents as they transition from OCH to caring for their child at home. The OCH outpatient services offer specialized care long after patients return home to their families. Services at the hospital include: child life Services; a day neurology program (both inpatient and outpatient); a feeding program; inpatient and outpatient headache treatment; pulmonary services; rehabilitation services; sleep studies; care coordination/case management; medical management provided by pediatric nurse practitioners and pediatric pulmonologists; neuropsychology/psychology; nursing care; occupational therapy; on-site education; physical therapy; respiratory therapy; social work/psychosocial needs; speech-language pathology; and spiritual support and counseling.OCH's child life services consist of certified child life specialists trained to help children and their families cope with being in the hospital. Child life is affirmed by the American Academy of Pediatrics as an essential component of quality pediatric health care and facilitates a child's plan of care through medical play, teaching techniques for coping and supporting the child's growth and development. Child life specialists build rapport with the child, explain medical procedures to the child in easy-to-understand language, engage the child in therapeutic activities such as dramatic play, arts and crafts, and peer groups, make birthdays, holidays, and treatment milestones special and provide emotional support for families-especially siblings. Whether the child is being treated for developmental delays, birth disorders, traumatic injury or severe illness, a child life specialist interacts with every inpatient child. These services are provided free of charge. The pediatric day neurology rehabilitation program offers services to children living at home who still need intensive, concentrated therapy. The program is a way to bridge inpatient care with traditional, less intensive outpatient care and serves children ages 5-18 who have an acquired brain injury and are making rapid gains in the acute phase of their recovery process. This intensive, cognitive-based therapy program is designed to help a child optimize his or her rehabilitation potential. Physicians and therapists may determine, as a part of discharge planning, that a child may benefit from this hospital-based program. If so, the child's case manager will help manage the transition. The feeding program at OCH specializes in teaching children to eat and drink as independently as possible. Whether this means transitioning from tube feedings to solid foods or overcoming disruptive mealtime behaviors, OCH will help when eating problems affect the health and growth of a child. The pediatric headache center at OCH constitutes a comprehensive and unique headache program in the North Texas area that provides care to patients with headaches. The pulmonary program was designed for children who need short-term tracheotomy/ventilator assistance and those with long-term tracheotomy/ventilator dependencies who will return home. OCHs team of pediatric specialists monitors all patients on a 24-hour basis. Patients are placed on a portable ventilator and may receive therapies outside of their rooms in either the living or therapy areas. As children improve, they may receive Bi-level Positive Airway Pressure (BiPAP) (R) or Continuous Positive Airway Pressure (CPAP) as other forms of ventilation. OCH also provided supervisory education programs for training future nurses and other allied health professionals in an effort to increase the supply of health care professionals nationwide. Assisting with the preparation of future nurses and other allied health professionals at both entry and advanced levels of care education is critical to establishing a workforce of qualified health care providers. During the year, OCH invested 1,720 hours in training 206 undergraduate health professionals. Total unreimbursed cost of providing these educational programs is $73,677.With nine outpatient clinics throughout the Dallas-Fort Worth Metroplex, OCH uses its profits to improve the health of Dallas and surrounding communities through patient care, education, research, and community service. In the fiscal year ended June 30, 2012 these services were provided at a cost of $64,541.	Description
Total Program Service Expense	54566972	TotalProgramServiceExpense
Described In501 C3	1	DescribedIn501C3
Schedule B Required	1	ScheduleBRequired
Political Activities	0	PoliticalActivities
Lobbying Activities	1	LobbyingActivities
Subject To Proxy Tax	0	SubjectToProxyTax
Donor Advised Funds	0	DonorAdvisedFunds
Conservation Easements	0	ConservationEasements
Collections Of Art	0	CollectionsOfArt
Credit Counseling	0	CreditCounseling
Term Or Permanent Endowments	0	TermOrPermanentEndowments
Report Land Bldg Equip	1	ReportLandBldgEquip
Report Invest Oth Securities	0	ReportInvestOthSecurities
Report Prog Rel Invest	0	ReportProgRelInvest
Report Other Assets	1	ReportOtherAssets
Report Other Liabilities	0	ReportOtherLiabilities
Report Fin48 Footnote	1	ReportFin48Footnote
Independent Audit Financial Stmt	0	IndependentAuditFinancialStmt
Consolidated Audit Financial Stmt	1	ConsolidatedAuditFinancialStmt
School	0	School
Foreign Office	0	ForeignOffice
Foreign Activities	0	ForeignActivities
More Than5000 K To Organizations	0	MoreThan5000KToOrganizations
More Than5000 K To Individuals	0	MoreThan5000KToIndividuals
Professional Fundraising	0	ProfessionalFundraising
Fundraising Activities	0	FundraisingActivities
Gaming	0	Gaming
Hospital	1	Hospital
Financial Stmt Attached	1	FinancialStmtAttached
Grants To Organizations	1	GrantsToOrganizations
Grants To Individuals	0	GrantsToIndividuals
Schedule J Required	1	ScheduleJRequired
Tax Exempt Bonds	0	TaxExemptBonds
Excess Benefit Transaction	0	ExcessBenefitTransaction
Prior Excess Benefit Transaction	0	PriorExcessBenefitTransaction
Loan To Officer Or DQP	0	LoanToOfficerOrDQP
Grant To Related Person	0	GrantToRelatedPerson
Bsnss Rltnshp With Organization	0	BsnssRltnshpWithOrganization
Bsnss Rltnshp Thru Family Member	0	BsnssRltnshpThruFamilyMember
Officer Entity With Bsnss Rltnshp	0	OfficerEntityWithBsnssRltnshp
Deductible Non Cash Contributions	0	DeductibleNonCashContributions
Deductible Contributions Of Art	0	DeductibleContributionsOfArt
Terminated	0	Terminated
Partial Liquidation	0	PartialLiquidation
Disregarded Entity	0	DisregardedEntity
Related Entity	1	RelatedEntity
Related Org Controlled Entity	1	RelatedOrgControlledEntity
Transaction Related Entity	1	TransactionRelatedEntity
Transfers To Exempt Non Chrtbl Org	0	TransfersToExemptNonChrtblOrg
Activities Conducted Partnership	0	ActivitiesConductedPartnership
Schedule O Required	1	ScheduleORequired
Number Forms Transmitted With1096	109	NumberFormsTransmittedWith1096
Number W2 G Included	0	NumberW2GIncluded
Compliance With Backup Witholding	1	ComplianceWithBackupWitholding
Number Of Employees	628	NumberOfEmployees
Employment Tax Returns Filed	1	EmploymentTaxReturnsFiled
Unrelated Business Income	0	UnrelatedBusinessIncome
Foreign Financial Account	0	ForeignFinancialAccount
Prohibited Tax Shelter Trans	0	ProhibitedTaxShelterTrans
Taxable Party Notification	0	TaxablePartyNotification
Non Deductible Contributions	0	NonDeductibleContributions
Quid Pro Quo Contributions	0	QuidProQuoContributions
Form8282 Property Disposed Of	0	Form8282PropertyDisposedOf
Funds To Pay Premiums	0	FundsToPayPremiums
Premiums Paid	0	PremiumsPaid
Indoor Tanning Services	0	IndoorTanningServices
Info In Schedule O Part VI	X	InfoInScheduleOPartVI
Nbr Voting Governing Body Members	12	NbrVotingGoverningBodyMembers
Number Independent Voting Members	10	NumberIndependentVotingMembers
Family Or Business Relationship	0	FamilyOrBusinessRelationship
Delegation Of Management Duties	0	DelegationOfManagementDuties
Changes To Organizing Docs	0	ChangesToOrganizingDocs
Material Diversion Or Misuse	0	MaterialDiversionOrMisuse
Members Or Stockholders	1	MembersOrStockholders
Election Of Board Members	1	ElectionOfBoardMembers
Decisions Subject To Approval	1	DecisionsSubjectToApproval
Minutes Of Governing Body	1	MinutesOfGoverningBody
Minutes Of Committees	1	MinutesOfCommittees
Officer Mailing Address	0	OfficerMailingAddress
Local Chapters	0	LocalChapters
Form990 Provided To Governing Body	1	Form990ProvidedToGoverningBody
Conflict Of Interest Policy	1	ConflictOfInterestPolicy
Annual Disclosure Covered Persons	1	AnnualDisclosureCoveredPersons
Regular Monitoring Enforcement	1	RegularMonitoringEnforcement
Whistleblower Policy	1	WhistleblowerPolicy
Document Retention Policy	1	DocumentRetentionPolicy
Compensation Process CEO	1	CompensationProcessCEO
Compensation Process Other	1	CompensationProcessOther
Investment In Joint Venture	0	InvestmentInJointVenture
Upon Request	X	UponRequest

The Books Are In Care Of TheBooksAreInCareOf

Field	Value	IRS element (for citing)
Name Person	Clint Stapp	NamePerson
Telephone Number	2148209743	TelephoneNumber

Address US AddressUS

Field	Value	IRS element (for citing)
Address Line1	3504 Swiss Avenue	AddressLine1
City	Dallas	City
State	TX	State
ZIP Code	75204	ZIPCode

Field	Value	IRS element (for citing)
Info In Schedule O Part VII	X	InfoInScheduleOPartVII

Form990 Part VII Section A Form990PartVIISectionA (26 entries)

TitleTitle	Average Hours Per WeekAverageHoursPerWeek	Individual Trustee Or DirectorIndividualTrusteeOrDirector	Reportable Comp From OrganizationReportableCompFromOrganization	Reportable Comp From Related OrgsReportableCompFromRelatedOrgs	Other CompensationOtherCompensation	OfficerOfficer	Highest Compensated EmployeeHighestCompensatedEmployee	FormerFormer
Molly Bogen
Trustee	1.00	X	0	0	0
Jeffrey Carter
Trustee	1.00	X	0	0	0
Elsa Grivas
Trustee	1.00	X	0	0	0
Rodric Cummins
Trustee	1.00	X	0	0	0
Carol Kent
Trustee	1.00	X	0	0	0
Cristie Columbus MD
Trustee	1.00	X	0	261176	32101
Lawrence Gardner
Trustee	1.00	X	0	0	0
Kenneth Klaveness
Trustee	1.00	X	0	0	0
Cecilia McKay
Trustee	1.00	X	0	0	0
Luz Tolentino
Trustee	1.00	X	0	330822	53480
Lisa Hembry
Trustee	1.00	X	0	0	0
Tom Perkowski
Trustee	1.00	X	0	0	0
Kelli Terpstra
VP Clinical Ops/CNO	40.00		186568	0	32191	X
Robert Knowlton
VP Finance/Hosp Fin Off	40.00		117768	53451	22965	X
Liz Youngblood
President	40.00		0	361700	41395	X
Fabian Polo
COO	40.00		0	182278	47610	X
Clint Stapp
VP Finance/Hosp Fin Off	40.00		20764	88577	20823	X
David Slaughterbeck
Clinical Pharmacist	40.00		126064	0	22704		X
Ngozi Agwu
Registered Nurse	56.00		128447	0	21514		X
Anne Morton
Director Pediatric Services	40.00		130715	0	20612		X
Carrin Feagins
Director Healthcare Improvement	40.00		121874	0	30119		X
Darla Johnston
Director Nursing Services	40.00		119157	0	34396		X
Scott Peek
Former Officer	0.00		0	423627	100228			X
Trey Wicke
Former Officer	0.00		0	206033	27362			X
Jon Skinner
Former Officer	0.00		0	134898	42493			X
James Thaxton
Former Officer	0.00		0	116512	52736			X

Field	Value	IRS element (for citing)
Total Reportable Comp From Org	951357	TotalReportableCompFromOrg
Total Reportable Comp Frm Rltd Orgs	2159074	TotalReportableCompFrmRltdOrgs
Total Other Compensation	602729	TotalOtherCompensation
Number Individuals GT100 K	25	NumberIndividualsGT100K
Formers Listed	1	FormersListed
Total Comp GT150 K	1	TotalCompGT150K
Compensation From Other Sources	0	CompensationFromOtherSources

Contractor Compensation ContractorCompensation (5 entries)

Address Line1AddressOfContractor/AddressUS/AddressLine1	CityAddressOfContractor/AddressUS/City	StateAddressOfContractor/AddressUS/State	ZIP CodeAddressOfContractor/AddressUS/ZIPCode	Description Of ServicesDescriptionOfServices	CompensationCompensation
Baylor Health Care System
2001 Bryan St Ste 2200	Dallas	TX	75201	Management Services	9249514
Baylor University Medical Center
2001 Bryan St Ste 2200	Dallas	TX	75201	Clinical Services	3403613
HealthTexas Provider Network
2001 Bryan St Ste 2200	Dallas	TX	75201	Clinical/Administrative	876191
Aramark Services Inc
P O Box 651009	Charlotte	NC	282651009	Engineering Services	430334
Shiftwise
1800 SW 1st Ave Suite 510	Portland	OR	97201	Staffing	395731

Field	Value	IRS element (for citing)
Number Of Contractors GT100 K	14	NumberOfContractorsGT100K
Related Organizations	395050	RelatedOrganizations
Total Contributions	395050	TotalContributions

Program Service Revenue ProgramServiceRevenue (5 entries)

DescriptionDescription	Business CodeBusinessCode	Total Revenue ColumnTotalRevenueColumn	Related Or Exempt Function IncomeRelatedOrExemptFunctionIncome	ExclusionExclusionAmount
Patient Care Revenue	621990	58908772	58908772
Day Care	624410	151612		$151,612
Parking	812930	45270		$45,270
Medical Education	611600	29773	29773
Rent	531120	24039	24039

Total Oth Program Service Revenue TotalOthProgramServiceRevenue

Field	Value	IRS element (for citing)
Total Revenue Column	10139	TotalRevenueColumn
Related Or Exempt Function Income	4545	RelatedOrExemptFunctionIncome
Exclusion	$5,594	ExclusionAmount

Field	Value	IRS element (for citing)
Total Program Service Revenue	59169605	TotalProgramServiceRevenue

Investment Income InvestmentIncome

Field	Value	IRS element (for citing)
Total Revenue Column	122643	TotalRevenueColumn
Exclusion	$122,643	ExclusionAmount

Gross Amount Sales Assets GrossAmountSalesAssets

Field	Value	IRS element (for citing)
Securities	2677371	Securities

Less Cost Oth Basis Sales Expenses LessCostOthBasisSalesExpenses

Field	Value	IRS element (for citing)
Securities	2500087	Securities

Gain Or Loss GainOrLoss

Field	Value	IRS element (for citing)
Securities	177284	Securities

Net Gain Or Loss Investments NetGainOrLossInvestments

Field	Value	IRS element (for citing)
Total Revenue Column	177284	TotalRevenueColumn
Exclusion	$177,284	ExclusionAmount

Total Revenue TotalRevenue

Field	Value	IRS element (for citing)
Total Revenue Column	59864582	TotalRevenueColumn
Related Or Exempt Function Income	58967129	RelatedOrExemptFunctionIncome
Unrelated Business Revenue	0	UnrelatedBusinessRevenue
Exclusion	$502,403	ExclusionAmount

Grants To Domestic Orgs GrantsToDomesticOrgs

Field	Value	IRS element (for citing)
Total	75215	Total
Program Services	75215	ProgramServices

Comp Current Officers Directors CompCurrentOfficersDirectors

Field	Value	IRS element (for citing)
Total	419022	Total
Management And General	419022	ManagementAndGeneral

Other Salaries And Wages OtherSalariesAndWages

Field	Value	IRS element (for citing)
Total	26160535	Total
Program Services	25206830	ProgramServices
Management And General	953705	ManagementAndGeneral

Pension Plan Contributions PensionPlanContributions

Field	Value	IRS element (for citing)
Total	922276	Total
Program Services	878036	ProgramServices
Management And General	44240	ManagementAndGeneral

Other Employee Benefits OtherEmployeeBenefits

Field	Value	IRS element (for citing)
Total	4252174	Total
Program Services	4057988	ProgramServices
Management And General	194186	ManagementAndGeneral

Payroll Taxes PayrollTaxes

Field	Value	IRS element (for citing)
Total	1946936	Total
Program Services	1857485	ProgramServices
Management And General	89451	ManagementAndGeneral

Fees For Services Legal FeesForServicesLegal

Field	Value	IRS element (for citing)
Total	1713	Total
Management And General	1713	ManagementAndGeneral

Fees For Services Other FeesForServicesOther

Field	Value	IRS element (for citing)
Total	14967628	Total
Program Services	8901547	ProgramServices
Management And General	6066081	ManagementAndGeneral

Advertising Advertising

Field	Value	IRS element (for citing)
Total	64376	Total
Management And General	64376	ManagementAndGeneral

Office Expenses OfficeExpenses

Field	Value	IRS element (for citing)
Total	1898650	Total
Program Services	1723083	ProgramServices
Management And General	175567	ManagementAndGeneral

Information Technology InformationTechnology

Field	Value	IRS element (for citing)
Total	2918463	Total
Program Services	2918463	ProgramServices

Occupancy Occupancy

Field	Value	IRS element (for citing)
Total	1866283	Total
Program Services	1752218	ProgramServices
Management And General	114065	ManagementAndGeneral

Travel Travel

Field	Value	IRS element (for citing)
Total	47591	Total
Program Services	29412	ProgramServices
Management And General	18179	ManagementAndGeneral

Conferences Meetings ConferencesMeetings

Field	Value	IRS element (for citing)
Total	30072	Total
Program Services	28913	ProgramServices
Management And General	1159	ManagementAndGeneral

Depreciation Depletion DepreciationDepletion

Field	Value	IRS element (for citing)
Total	1435356	Total
Program Services	1435356	ProgramServices

Insurance Insurance

Field	Value	IRS element (for citing)
Total	29464	Total
Program Services	2769	ProgramServices
Management And General	26695	ManagementAndGeneral

Other Expenses OtherExpenses (4 entries)

DescriptionDescription	TotalTotal	Program ServicesProgramServices	Management And GeneralManagementAndGeneral
Medical Supplies	4697372	4697372
Bad Debt	981624	981624
Dues & Memberships	55209	8781	46428
Special Functions	38096	11880	26216

All Other Expenses AllOtherExpenses

Field	Value	IRS element (for citing)
Total	7496	Total
Management And General	7496	ManagementAndGeneral

Total Functional Expenses TotalFunctionalExpenses

Field	Value	IRS element (for citing)
Total	62815551	Total
Program Services	54566972	ProgramServices
Management And General	8248579	ManagementAndGeneral
Fundraising	0	Fundraising

Cash Non Interest Bearing CashNonInterestBearing

Field	Value	IRS element (for citing)
BOY	67749	BOY
EOY	3182	EOY

Accounts Receivable AccountsReceivable

Field	Value	IRS element (for citing)
BOY	6240496	BOY
EOY	4766417	EOY

Inventories For Sale Or Use InventoriesForSaleOrUse

Field	Value	IRS element (for citing)
BOY	677136	BOY
EOY	500973	EOY

Prepaid Expenses Deferred Charges PrepaidExpensesDeferredCharges

Field	Value	IRS element (for citing)
BOY	25797	BOY
EOY	26066	EOY

Field	Value	IRS element (for citing)
Land Buildings Equipment Basis	36327262	LandBuildingsEquipmentBasis
Land Bldg Equipment Accum Deprec	18417947	LandBldgEquipmentAccumDeprec

Land Buildings Equipment Basis Net LandBuildingsEquipmentBasisNet

Field	Value	IRS element (for citing)
BOY	18672908	BOY
EOY	17909315	EOY

Investments Pub Traded Securities InvestmentsPubTradedSecurities

Field	Value	IRS element (for citing)
BOY	6880641	BOY
EOY	5572699	EOY

Other Assets Total OtherAssetsTotal

Field	Value	IRS element (for citing)
BOY	1487793	BOY
EOY	1738313	EOY

Total Assets TotalAssets

Field	Value	IRS element (for citing)
BOY	34052520	BOY
EOY	30516965	EOY

Accounts Payable Accrued Expenses AccountsPayableAccruedExpenses

Field	Value	IRS element (for citing)
BOY	1881616	BOY
EOY	1201869	EOY

Deferred Revenue DeferredRevenue

Field	Value	IRS element (for citing)
BOY	375372	BOY
EOY	309019	EOY

Total Liabilities TotalLiabilities

Field	Value	IRS element (for citing)
BOY	2256988	BOY
EOY	1510888	EOY

Field	Value	IRS element (for citing)
Follow SFAS117	X	FollowSFAS117

Unrestricted Net Assets UnrestrictedNetAssets

Field	Value	IRS element (for citing)
BOY	30307739	BOY
EOY	27267763	EOY

Temporarily Restricted Net Assets TemporarilyRestrictedNetAssets

Field	Value	IRS element (for citing)
BOY	1000951	BOY
EOY	1251471	EOY

Permanently Restricted Net Assets PermanentlyRestrictedNetAssets

Field	Value	IRS element (for citing)
BOY	486842	BOY
EOY	486843	EOY

Total Net Assets Fund Balances TotalNetAssetsFundBalances

Field	Value	IRS element (for citing)
BOY	31795532	BOY
EOY	29006077	EOY

Total Liab Net Assets Fund Balances TotalLiabNetAssetsFundBalances

Field	Value	IRS element (for citing)
BOY	34052520	BOY
EOY	30516965	EOY

Field	Value	IRS element (for citing)
Info In Schedule O Part XI	X	InfoInScheduleOPartXI
Reconcilation Revenue Expenses	-2950969	ReconcilationRevenueExpenses
Reconcilation Other Changes	161514	ReconcilationOtherChanges
Method Of Accounting Accrual	X	MethodOfAccountingAccrual
Accountant Compile Or Review	0	AccountantCompileOrReview
FS Audited	1	FSAudited
Audit Committee	1	AuditCommittee
Financial Statement Consolidated	X	FinancialStatementConsolidated
Federal Grant Audit Required	1	FederalGrantAuditRequired
Federal Grant Audit Performed	1	FederalGrantAuditPerformed

Schedule A IRS990ScheduleA

Field	Value	IRS element (for citing)
Hospital170b1 Aiii	X	Hospital170b1Aiii

Schedule B IRS990ScheduleB

Contributor Info ContributorInfo

Field	Value	IRS element (for citing)
Contributor Number	RESTRICTED	ContributorNumber

Contributor Name Business ContributorNameBusiness

Field	Value	IRS element (for citing)
Business Name Line1	RESTRICTED	BusinessNameLine1

Contributor Address US ContributorAddressUS

Field	Value	IRS element (for citing)
Address Line1	RESTRICTED	AddressLine1
Address Line2	RESTRICTED	AddressLine2
City	RESTRICTED	City
State	RESTRICTED	State
ZIP Code	RESTRICTED	ZIPCode

Field	Value	IRS element (for citing)
Aggregate Contributions	RESTRICTED	AggregateContributions

Schedule C IRS990ScheduleC

Field	Value	IRS element (for citing)
Volunteers	0	Volunteers
Paid Staff Or Management	1	PaidStaffOrManagement
Media Advertisements	0	MediaAdvertisements
Mailings Members	0	MailingsMembers
Publications Or Broadcast	0	PublicationsOrBroadcast
Grants Other Organizations	1	GrantsOtherOrganizations
Grants Other Organizations	$1,544	GrantsOtherOrganizationsAmount
Direct Contact Legislators	1	DirectContactLegislators
Direct Contact Legislators	$14,674	DirectContactLegislatorsAmount
Rallies Demonstrations	0	RalliesDemonstrations
Other Activities	0	OtherActivities
Total Lobbying Expenditures IIB	16218	TotalLobbyingExpendituresIIB
Not Described In501c3	0	NotDescribedIn501c3

Form990 Schedule C Part IV Form990ScheduleCPartIV

Field	Value	IRS element (for citing)
Identifier	Part IV, Supplemental Information:	Identifier
Explanation	Statement Regarding Legislative Activity Health care policy is critical to all Americans, and Baylor Specialty Health Centers ("BSHC") believes that health care providers must participate in forming health care policy by interacting with national, state and local representatives and their staff members to help them better understand the complexities and ramifications of key health care policies including, without limitation, those related to uninsured and indigent patient needs as well as the legislative and regulatory needs to assure the delivery of cost-efficient, quality health care. BSHC has established relationships with persons and industry associations that often communicate BSHC's positions on major health care issues. These contacts may include direct contact, telephone conversations and/or letters. Also, BSHC may attempt to educate the local community on certain legislative initiatives that may impact BSHC's ability to provide quality health care services to the community through direct mailings, media advertising or broadcast statements. The amount of resources (time and money) involved in these activities is insubstantial. BSHC has not intervened in any political campaign.	Explanation

Schedule D IRS990ScheduleD

Land Land

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	2630925	OtherCostOrOtherBasis
Book Value	2630925	BookValue

Buildings Buildings

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	26156385	OtherCostOrOtherBasis
Depreciation	14011026	Depreciation
Book Value	12145359	BookValue

Equipment Equipment

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	7539952	OtherCostOrOtherBasis
Depreciation	4406921	Depreciation
Book Value	3133031	BookValue

Field	Value	IRS element (for citing)
Total Of Book Value Land Buildings	17909315	TotalOfBookValueLandBuildings

Other Assets OtherAssets (2 entries)

DescriptionDescription	Book ValueBookValue
BSHC Assets at BHCS Fdn	1543042
BSHC Assets at Irving Fdn	195271

Field	Value	IRS element (for citing)
Total Book Value Other Assets	1738313	TotalBookValueOtherAssets

Form990 Schedule D Part XIV Form990ScheduleDPartXIV

Field	Value	IRS element (for citing)
Identifier	Description of Uncertain Tax Positions Under FIN 48:	Identifier
Return Reference	Part X:	ReturnReference
Explanation	The filing organization does not have separate individual audited financial statements; however, the organization is included in Baylor Health Care System's combined audited financial statements (System). The System follows the provisions of ASC 740 "Income Taxes." As of June 30, 2012 and 2011, the System had no material gross unrecognized tax benefits.	Explanation

Schedule H IRS990ScheduleH

Field	Value	IRS element (for citing)
Charity Care Policy	1	CharityCarePolicy
Written Policy	1	WrittenPolicy
Policy Applied To All Hospitals	X	PolicyAppliedToAllHospitals
FPG Reference Free Care	1	FPGReferenceFreeCare
Pcent200	X	Pcent200
FPG Reference Discounted Care	1	FPGReferenceDiscountedCare

Discounted Other DiscountedOther

Field	Value	IRS element (for citing)
Other	X	Other
Discounted Other Percentage	500.000000000000	DiscountedOtherPercentage

Field	Value	IRS element (for citing)
Free Disc Care Medically Indigent	1	FreeDiscCareMedicallyIndigent
Amounts Budgeted For Charity Care	1	AmountsBudgetedForCharityCare
Expenses Exceeded Budget	1	ExpensesExceededBudget
Unable To Provide Care	0	UnableToProvideCare
Annual Community Benefit Report	1	AnnualCommunityBenefitReport
Report Publically Available	1	ReportPublicallyAvailable

Charity Care At Cost CharityCareAtCost

Field	Value	IRS element (for citing)
Total Community Benefit Expense	1547801	TotalCommunityBenefitExpense
Direct Offsetting Revenue	0	DirectOffsettingRevenue
Net Community Benefit Expense	1547801	NetCommunityBenefitExpense
Percent Of Total Expense	0.02500	PercentOfTotalExpense

Unreimbursed Medicaid UnreimbursedMedicaid

Field	Value	IRS element (for citing)
Total Community Benefit Expense	17272970	TotalCommunityBenefitExpense
Direct Offsetting Revenue	13049727	DirectOffsettingRevenue
Net Community Benefit Expense	4223243	NetCommunityBenefitExpense
Percent Of Total Expense	0.06830	PercentOfTotalExpense

Unreimbursed Costs UnreimbursedCosts

Field	Value	IRS element (for citing)
Total Community Benefit Expense	0	TotalCommunityBenefitExpense
Direct Offsetting Revenue	0	DirectOffsettingRevenue
Percent Of Total Expense	0.00000	PercentOfTotalExpense

Total Charity Care TotalCharityCare

Field	Value	IRS element (for citing)
Total Community Benefit Expense	18820771	TotalCommunityBenefitExpense
Direct Offsetting Revenue	13049727	DirectOffsettingRevenue
Net Community Benefit Expense	5771044	NetCommunityBenefitExpense
Percent Of Total Expense	0.09330	PercentOfTotalExpense

Community Health Services CommunityHealthServices

Field	Value	IRS element (for citing)
Total Community Benefit Expense	265246	TotalCommunityBenefitExpense
Direct Offsetting Revenue	0	DirectOffsettingRevenue
Net Community Benefit Expense	265246	NetCommunityBenefitExpense
Percent Of Total Expense	0.00430	PercentOfTotalExpense

Health Professions Education HealthProfessionsEducation

Field	Value	IRS element (for citing)
Total Community Benefit Expense	326757	TotalCommunityBenefitExpense
Direct Offsetting Revenue	0	DirectOffsettingRevenue
Net Community Benefit Expense	326757	NetCommunityBenefitExpense
Percent Of Total Expense	0.00530	PercentOfTotalExpense

Subsidized Health Services SubsidizedHealthServices

Field	Value	IRS element (for citing)
Total Community Benefit Expense	0	TotalCommunityBenefitExpense
Direct Offsetting Revenue	0	DirectOffsettingRevenue
Percent Of Total Expense	0.00000	PercentOfTotalExpense

Research Research

Field	Value	IRS element (for citing)
Total Community Benefit Expense	0	TotalCommunityBenefitExpense
Direct Offsetting Revenue	0	DirectOffsettingRevenue
Percent Of Total Expense	0.00000	PercentOfTotalExpense

Cash And In Kind Contributions CashAndInKindContributions

Field	Value	IRS element (for citing)
Total Community Benefit Expense	86183	TotalCommunityBenefitExpense
Direct Offsetting Revenue	0	DirectOffsettingRevenue
Net Community Benefit Expense	86183	NetCommunityBenefitExpense
Percent Of Total Expense	0.00140	PercentOfTotalExpense

Total Other Benefits TotalOtherBenefits

Field	Value	IRS element (for citing)
Total Community Benefit Expense	678186	TotalCommunityBenefitExpense
Net Community Benefit Expense	678186	NetCommunityBenefitExpense
Percent Of Total Expense	0.01100	PercentOfTotalExpense

Total Community Benefits TotalCommunityBenefits

Field	Value	IRS element (for citing)
Total Community Benefit Expense	19498957	TotalCommunityBenefitExpense
Direct Offsetting Revenue	13049727	DirectOffsettingRevenue
Net Community Benefit Expense	6449230	NetCommunityBenefitExpense
Percent Of Total Expense	0.10430	PercentOfTotalExpense

Field	Value	IRS element (for citing)
Bad Debt Expense Reported	1	BadDebtExpenseReported
Bad Debt Expense	$981,624	BadDebtExpenseAmount
Amount Attributable To	53008	AmountAttributableTo
Amount Reimbursed By Medicare	15159026	AmountReimbursedByMedicare
Cost Of Care Reimbursed By Medicare	17264267	CostOfCareReimbursedByMedicare
Medicare Surplus Or Shortfall	-2105241	MedicareSurplusOrShortfall

Costing Methodology Used CostingMethodologyUsed

Field	Value	IRS element (for citing)
Cost To Charge Ratio	X	CostToChargeRatio

Field	Value	IRS element (for citing)
Written Debt Collection Policy	1	WrittenDebtCollectionPolicy
Provision For Charity Care	1	ProvisionForCharityCare
Number Of Hospital Facilities	2	NumberOfHospitalFacilities

Form990 Schedule H Part V Section A Form990ScheduleHPartVSectionA (2 entries)

Facility NumberFacilityNumber	Address Line1Address/AddressLine1	CityAddress/City	StateAddress/State	ZIP CodeAddress/ZIPCode	Licensed HospitalLicensedHospital	General Medical And SurgicalGeneralMedicalAndSurgical	Childrens HospitalChildrensHospital	OtherOther
Our Children's House at Baylor
1	3301 Swiss Avenue	Dallas	TX	75204	X	X	X
Baylor Specialty Hospital
2	3504 Swiss Avenue	Dallas	TX	75204	X	X		Long term acute care

Form990 Schedule H Part V Section B Form990ScheduleHPartVSectionB (2 entries)

Hospital Facility NumberHospitalFacilityNumber	Eligibility Criteria ExplainedEligibilityCriteriaExplained	Uses FPG FreeUsesFPGFree	FPG Free PercentFPGFreePercent	Uses FPG DiscountedUsesFPGDiscounted	FPG Discount PercentFPGDiscountPercent	Explains BasisExplainsBasis	Income LevelIncomeLevel	Asset LevelAssetLevel	Medical IndigencyMedicalIndigency	State RegulationStateRegulation	Other FactorsOtherFactors	Explains Application MethodExplainsApplicationMethod	Includes Publicity MeasuresIncludesPublicityMeasures	Posted On WebsitePostedOnWebsite	Available On RequestAvailableOnRequest	Other PublicityOtherPublicity	Actions On NonpaymentActionsOnNonpayment	Collection ActivitiesCollectionActivities	Nondiscrim Emergency Care PolicyNondiscrimEmergencyCarePolicy	Used Other MethodUsedOtherMethod	Amounts Generally BilledAmountsGenerallyBilled	Gross ChargesGrossCharges
Our Children's House at Baylor
1	1	1	200.000000000000	1	500.000000000000	1	X	X	X	X	X	1	1	X	X	X	1	0	1	X	0	0
Baylor Specialty Hospital
2	1	1	200.000000000000	1	500.000000000000	1	X	X	X	X	X	1	1	X	X	X	1	0	1	X	0	0

Form990 Schedule H Part V Section C Form990ScheduleHPartVSectionC

Field	Value	IRS element (for citing)
Number Of Other Facilities	8	NumberOfOtherFacilities

Other Facilities OtherFacilities (8 entries)

Address Line1Address/AddressLine1	CityAddress/City	StateAddress/State	ZIP CodeAddress/ZIPCode	Facility TypeFacilityType
Our Children's House at Allen
8 Prestige Circle Suite 101	Allen	TX	75002	Outpatient Rehabilitation Clinic
Our Children's House at Las Colinas
7453 Las Colinas Blvd	Las Colinas	TX	75063	Outpatient Rehabilitation Clinic
Our Children's House at Frisco
7010 Preston Rd Suite 240	Frisco	TX	75034	Outpatient Rehabilitation Clinic
Our Children's House at Rockwall
2455 Ridge Rd Suite 255	Rockwall	TX	75087	Outpatient Rehabilitation Clinic
Our Children's House at Grapevine
1643 Lancaster Dr Suite 300	Grapevine	TX	76051	Outpatient Rehabilitation Clinic
Our Children's House at Waxahachie
1540 N Hwy 77 Bldg C Suite 10	Waxahachie	TX	75165	Outpatient Rehabilitation Clinic
Our Children's House at Plano
7000 W Plano Parkway Suite 210	Plano	TX	75093	Outpatient Rehabilitation Clinic
Our Children's House at Irving
3337 Stovall	Irving	TX	75061	Outpatient Rehabilitation Clinic

Form990 Schedule H Part VI Form990ScheduleHPartVI (22 entries)

ExplanationExplanation	IdentifierIdentifier	Return ReferenceReturnReference
Part I, Line 3c: and Line 3b: In addition to providing free care to financially indigent patients at 200% of the federal poverty guidelines ("FPG"), the organization provides discounted care to the medically indigent which is based on both the FPG (up to 500%) and the percentage of the patient's total bills from all providers in relation to the patient's annual income. Pursuant to the charity care policy, a patient's total balance due will not exceed 10% of total annual income if the patient qualifies as medically indigent. The organization also provides discounted care to those individuals whose amount of total bills, after all payments from third parties, exceeds 50% of the patient's annual income (regardless of the level of income) if the patient is unable to pay the remaining bill.
Part I, Line 6a: The organization prepares and files an Annual Report of Community Benefit Plan with the Texas Department of State Health Services. These reports are made available through the organization's website at www.baylorhealth.com.
Part I, Line 7: A ratio of patient care cost to charges, as determined in Worksheet 2, was used to report the amounts in Part I, Lines 7a - 7d. For amounts reported on lines 7e - 7k, actual expenses for each community benefit activity are tracked and reported using both community benefit software and/or the organization's cost accounting system.Part I, Line 7b: The organization also provides care to Medicaid beneficiaries who have been transferred from a related hospital after the patient has exhausted all Medicaid benefits. Therefore, the unreimbursed costs for these patients are designated as Medicaid even though no reimbursement will be received since the patient has exhausted any Medicaid limits prior to being admitted to the organization.Part I, Line 7b, Column (d): Includes payments from the State Medicaid Private Upper Payment Limit Program, which funds are to be used to expand indigent care.
Part I, Line 7g: Part I, Line 7i, Column (c): Includes charity care payments of $82,609 that are made directly to or on the behalf of a local public hospital and/or other nonprofit organizations for the treatment of indigent patients of those organizations.
Part I, L7 Col(f): The amount of bad debt expense included on Form 990, Part IX, line 25, but removed for Schedule H, Part I, Line 7, Column (f) totaled $981,624.
Part III, Line 4: As stated in the combined audited financial statements, the organization maintains allowances for uncollectible accounts for estimated losses resulting from a payor's inability to make payments on accounts. The organization assesses the reasonableness of the allowance account based on the historical write-offs, cash collections, the aging of the accounts and other economic factors. Accounts are written off when collection efforts have been exhausted. Management continually monitors and adjusts its allowance associated with its receivable. Bad debt does not include amounts for patients who are known to qualify under the organizations charity care policy. The amount of bad debt attributable to patient's accounts is net of contractual allowances, payments received and recoveries of bad debt previously written off. Based on prior experience and certain demographics and other information obtained during admission, the organization believes a portion of the bad debt expenses would be attributable to patients that would otherwise qualify for charity care. Despite all of the effort and ways the organization educates patients about qualifying for its charity care program as demonstrated in Part IV, question 3 below, many uninsured patients either refuse or fail to complete a charity care application or provide sufficient information at the time of admission, during their stay or after being discharged to qualify for assistance under the organization's charity care policy. The amount reported on Part III, Line 3 was determined by taking the average acceptance rate for all charity care applications received during the year multiplied by the number of denials that were attributable to insufficient information.
Part III, Line 8: The amount reported on Part III, Section B, line 6 was calculated in accordance with the Schedule H instructions utilizing the organization's allowable cost reported in the Medicare cost report based on a cost to charge ratio. However, the allowable costs in the Medicare cost report do not reflect the actual cost of providing care to patients since the Medicare cost report excludes many direct patient care costs that are essential to providing quality care to these patients. For example, certain coverage fees to physicians, cost of Medicare C and D, and other similar direct patient care expenses are specifically excluded as allowable cost in the cost reports. Using the same methodology to calculate the unreimbursed cost of providing charity care and Medicaid (using applicable Schedule H Worksheets) would result in a shortfall of $6,543,322, which is $4,438,081 higher than the shortfall reported on Part III, Section B, Line 7. The organization believes that all of the shortfall should be considered as a community benefit for the following reasons. First, the IRS Community Benefit Standard includes the provision of care to the elderly and Medicare patients. IRS Revenue Ruling 69-545 provides, in part, that hospitals serving patients with governmental health benefits, including for example Medicare, is an indication that the hospital operates for the promotion of health in the community. Second, the organization provides care to Medicare patients regardless of this shortfall, i.e., loss, and thereby relieves the state and federal government of the burden of paying the full cost for the care of Medicare beneficiaries. Medicare does not provide sufficient reimbursement to cover the entire cost of providing care to these patients causing the organization to use other surplus funds to cover the shortfall. It is expected that reimbursement under the Medicare program will continue to decline and therefore may further limit access to care due to the anticipated reduction of participating Medicare providers in the community. As a result, the care for these patients will likely increase at, and rest on the shoulders of, nonprofit hospitals or county hospital districts. Third, many of the Medicare participants have low fixed incomes and therefore would qualify for charity care or other means tested government programs absent being enrolled in the Medicare program. Fourth, Texas nonprofit hospitals must provide a minimum level of community benefit in order to obtain exemption from state and local taxes. According to the current Texas Health and Safety Code, the unreimbursed cost of Medicare is considered to be a community benefit in determining these state statutory requirements as it helps relieve a governmental burden of providing this care that would otherwise be provided through the county hospital system in Texas.
Part III, Line 9b: The organization's debt collection policy and procedures prohibit any collection efforts for the portion of the patient account balance that qualifies for financial assistance under the organization's charity care policy. For any remaining balances due, the same collection policy and procedures are applied equally to all patient types.
Part V, Section B, Line 10: In addition to providing free care to financially indigent patients at 200% of the federal poverty guidelines (FPG), the organization provides discounted care to the medically indigent which is based on both the FPG (up to 500%) and the percentage of the patient's total bills from all providers in relation to the patient's annual income. Pursuant to the charity care policy, a patient's total balance due will not exceed 10% of total annual income if the patient qualifies as medically indigent. The organization also provides discounted care to those individuals whose amount of total bills, after all payments from third parties, exceeds 50% of the patient's annual income (regardless of the level of income) if the patient is unable to pay the remaining bill.	Our Children's House at Baylor
Part V, Section B, Line 10: In addition to providing free care to financially indigent patients at 200% of the federal poverty guidelines (FPG), the organization provides discounted care to the medically indigent which is based on both the FPG (up to 500%) and the percentage of the patient's total bills from all providers in relation to the patient's annual income. Pursuant to the charity care policy, a patient's total balance due will not exceed 10% of total annual income if the patient qualifies as medically indigent. The organization also provides discounted care to those individuals whose amount of total bills, after all payments from third parties, exceeds 50% of the patient's annual income (regardless of the level of income) if the patient is unable to pay the remaining bill.	Baylor Specialty Hospital
Part V, Section B, Line 11h: For almost 20 years, the hospital has adopted a financial assistance policy written in accordance with Texas Health and Safety Code Chapter 311. In general, that statute defines charity care as providing, funding or otherwise financially supporting health care services to a person classified by the hospital as financially or medically indigent; or providing funding or otherwise financially supporting health care services provided to financially indigent persons through other nonprofit or public clinics, hospitals or hospital organizations. To determine if a patient meets the definition of financially or medically indigent in the statute, the number in the household is required. Additionally, although assets and other resources are not included in the calculation to determine whether a patient is financially or medically indigent, the organization's policy reserves the right to allow the patient's assets or other resources to be considered when determining if financial assistance will be granted.	Our Children's House at Baylor
Part V, Section B, Line 11h: For almost 20 years, the hospital has adopted a financial assistance policy written in accordance with Texas Health and Safety Code Chapter 311. In general, that statute defines charity care as providing, funding or otherwise financially supporting health care services to a person classified by the hospital as financially or medically indigent; or providing funding or otherwise financially supporting health care services provided to financially indigent persons through other nonprofit or public clinics, hospitals or hospital organizations. To determine if a patient meets the definition of financially or medically indigent in the statute, the number in the household is required. Additionally, although assets and other resources are not included in the calculation to determine whether a patient is financially or medically indigent, the organization's policy reserves the right to allow the patient's assets or other resources to be considered when determining if financial assistance will be granted.	Baylor Specialty Hospital
Part V, Section B, Line 13g: Measures to publicize the policy within the community served by the hospital facility, include but are not limited to, the following: 1) posting signs and notices regarding the charity care policy in the emergency departments, admitting areas and business offices located throughout the organization: 2) annual posting regarding the organization's charity care program in the local newspapers: 3) information regarding financial assistance, including the organization's charity care policy, is posted on the organization's website: 4) notices about the organization's financial assistance policies are posted on each bill sent to patients including providing a phone number to access the customer service unit dedicated to answering patients billing questions, as well as provide information regarding financial assistance: and 5) the organization provides free financial counselors to help patients determine how to meet their financial obligations for services provided. Specifically financial counselors assist patients in applying for government assistance programs such as Medicaid or the organization's charity care program. Any patient may request to speak to a financial counselor when being treated at the organization. Uninsured patients who are admitted to the hospital will automatically receive help from a financial counselor. These services are provided in writing and through interpretation services in the primary language of the patient requesting assistance. Though the most often needed alternate language is Spanish, the organization can accommodate multiple languages including American Sign Language.	Our Children's House at Baylor
Part V, Section B, Line 13g: Measures to publicize the policy within the community served by the hospital facility, include but are not limited to, the following: 1) posting signs and notices regarding the charity care policy in the emergency departments, admitting areas and business offices located throughout the organization: 2) annual posting regarding the organization's charity care program in the local newspapers: 3) information regarding financial assistance, including the organization's charity care policy, is posted on the organization's website: 4) notices about the organization's financial assistance policies are posted on each bill sent to patients including providing a phone number to access the customer service unit dedicated to answering patients billing questions, as well as provide information regarding financial assistance: and 5) the organization provides free financial counselors to help patients determine how to meet their financial obligations for services provided. Specifically financial counselors assist patients in applying for government assistance programs such as Medicaid or the organization's charity care program. Any patient may request to speak to a financial counselor when being treated at the organization. Uninsured patients who are admitted to the hospital will automatically receive help from a financial counselor. These services are provided in writing and through interpretation services in the primary language of the patient requesting assistance. Though the most often needed alternate language is Spanish, the organization can accommodate multiple languages including American Sign Language.	Baylor Specialty Hospital
Part V, Section B, Line 19d: The organizations financial assistance policy is developed to provide discounted care to those qualifying for financial assistance to where the amount charged under the policy will always be equal to or lower than the average of the three largest (by volume) negotiated commercial insurance rates. However, for those qualifying as medically indigent and whose income level is from 200% to 500% of the federal poverty level shall not be billed more than 10% of their annual income which is generally lower than the methodology listed above and the three methods listed in Question Part V, Line 19ac.	Our Children's House at Baylor
Part V, Section B, Line 19d: The organizations financial assistance policy is developed to provide discounted care to those qualifying for financial assistance to where the amount charged under the policy will always be equal to or lower than the average of the three largest (by volume) negotiated commercial insurance rates. However, for those qualifying as medically indigent and whose income level is from 200% to 500% of the federal poverty level shall not be billed more than 10% of their annual income which is generally lower than the methodology listed above and the three methods listed in Question Part V, Line 19ac.	Baylor Specialty Hospital
Part VI, Line 2: Prior to June 30, 2012, the organization has elected to base their service area needs on a report generated by the local county hospital district. The annual Our Community Health Checkup for the Dallas/Fort Worth Combined Metropolitan Statistical Area (Checkup) is a collaborative effort of member hospitals of the Dallas Fort Worth Hospital Council (DFWHC). The preparation (including support, research and analysis) of the report was provided by the staffs of the Strategic Planning and Population Medicine Department of the Parkland Health & Hospital System also known as the Dallas County Hospital District, Baylor Health Care System and other health care providers. The Checkup was developed to address issues relative to health pertaining to individuals, families, and communities for use by the residents of the community and the institutions serving them. The Checkup provides a framework by which health needs can be joined with the assets or investments made by the community in its social and physical infrastructure. During the tax year ending June 30, 2013, the organization will be conducting a community health needs assessment and developing a written implementation strategy in accordance with the requirements under the Internal Revenue Code Section 501(r) which will be made widely available to the public on or before June 30, 2013.
Part VI, Line 3: The organization is committed to promoting health in the community including providing or finding financial assistance programs to assist patients. Patients who may qualify for financial assistance through the organization's charity care program or other federal, state and local government programs are informed and educated about their eligibility in several ways including, but not limited to, the following: 1) posting signs and notices regarding the charity care policy in the emergency departments, admitting areas and business offices located throughout the organization, 2) annual posting regarding the organization's charity care program in the local newspapers, 3) information regarding financial assistance, including the organization's charity care policy, is posted on the organization's website, 4) notices about the organization's financial assistance policies are posted on each bill sent to patients including providing a phone number to access the customer service unit dedicated to answering patients billing questions, as well as provide information regarding financial assistance, and 5) the organization provides free financial counselors to help patients determine how to meet their financial obligations for services provided. Specifically financial counselors assist patients in applying for government assistance programs such as Medicaid or the organization's charity care program. Any patient may request to speak to a financial counselor when being treated at the organization. Uninsured patients who are admitted to the hospital will automatically receive help from a financial counselor. These services are provided in writing and through interpretation services in the primary language of the patient requesting assistance. Though the most often needed alternate language is Spanish, the organization can accommodate multiple languages including American Sign Language.
Part VI, Line 4: The organization is comprised of two separately licensed hospitals: Baylor Specialty Hospital (BSH) and Our Children's House at Baylor (OCH).Located in Dallas County, BSHs service area includes parts of the urban/suburban North Texas area including Dallas, Collin, Denton, Ellis, Henderson, Hunt, Kaufman, Rockwall and Tarrant Counties. The population is estimated to be approximately 4,196,259. The average household income is $76,541 with 11.2 percent of the population having household incomes below the Federal Poverty Level (FPL). The population is made up of 45.9 percent white non-Hispanic, 30.8 percent Hispanic, 15.6 percent black non-Hispanic, 5.6 percent Asian and Pacific Islanders Non-Hispanic and 2.2 percent other. BSHs service area payer mix is comprised of 35.1 percent Managed Care, 18.8 percent Medicaid, 34.7 percent Medicare and 11.0 percent Self-pay/Charity and 0.4 percent other. There are approximately 55 other hospitals located within the organization service area. BSHs service area contains 25 medically underserved areas or populations. Located in Dallas County, OCHs service area includes parts of the urban/suburban North Texas area including Dallas, Collin, Denton, Ellis, Henderson, Hunt, Kaufman, Rockwall and Tarrant Counties. The population is estimated to be approximately 4,196,259. The average household income is $76,541 with 11.2 percent of the population having household incomes below the Federal Poverty Level (FPL). The population is made up of 45.9 percent white non-Hispanic, 30.8 percent Hispanic, 15.6 percent black non-Hispanic, 5.6 percent Asian and Pacific Islanders Non-Hispanic and 2.2 percent other. OCHs service area payer mix is comprised of 35.1 percent Managed Care, 18.8 percent Medicaid, 34.7 percent Medicare and 11.0 percent Self-pay/Charity and 0.4 percent other. There are approximately 55 other hospitals located within the organization service area. OCHs service area contains 25 medically underserved areas or populations.
Part VI, Line 5: With the oversight of an independent volunteer community board and Baylor Health Care System, the organization's sole member, the organization has promoted health and benefited the community through its two licensed hospitals OCH and BSH. The organization's governing body is comprised of volunteer community representatives that provide leadership and governance for the organization. The members of the governing body contribute their wisdom, insights, and expertise to ensure the organization is fulfilling its mission and charitable purpose while providing efficient administrative support services and direction for the organization. The members are well respected residents and/or own businesses in the organization's primary or secondary service area and understand the needs of the community. The medical staff of OCH and BSH is open to all physicians in the community who meet membership and clinical privileges requirements. Surplus funds are continuously utilized to maintain access to limited patient services or expand access points of care to patients throughout the community including, but not limited to, the following: OCH is dedicated to providing specialized quality care to children from infancy to age 18 who need medical care and treatment for developmental or birth disorders, traumatic injury or severe illness. OCH lessens the gap through community benefit efforts and activities such as support groups, camp activities, and parental education services designed to support those individuals and families whose access to care is limited. OCH provides an annual retreat for patients and their families with opportunities to participate in fun/leisure activities as a family while providing support staff to answer questions relative to managing recovery. Additionally, both parenting education and pediatric health services were provided as community benefits.With nine outpatient clinics throughout the Dallas/Fort Worth area OCH uses its revenue after expenses to improve the health of Dallas and surrounding communities through patient care, education, and community service. In the fiscal year ending June 30, 2012, OCH had 1,220 total admits resulting in a total of 24,253 days of care. In the period from fiscal years 2010-2012, more than $4 million has been re-invested into the health of our communities. OCH is also committed to assisting with the preparation of future nurses at entry and advanced levels of the profession to establish a workforce of qualified nurses. Through the Systems relationships with fifteen North Texas schools of nursing, the Hospital maintains strong affiliations with schools of nursing. In the fiscal year ending June 30, 2012, OCH invested in training 206 nurses. Total unreimbursed cost of these programs was $73,677. Like physicians, nursing graduates trained at a System entity are not obligated to join the staff although many remain in the North Texas area to provide top quality nursing services to many health care institutions. BSH serves a unique population with multiple acute physical care needs in a comprehensive multidisciplinary long term acute care setting. It offers innovative services for medically complex patients who have the potential to respond to individualized, comprehensive treatment plans developed by a multi-disciplinary care team. BSH is also committed to assisting with the preparation of College students studying to be clinicians in physical, speech, and respiratory therapy and nursing receive important hands-on medical experiences during clinical practicums with highly trained staff at the BSH. Master's level nursing students are among the future health care professionals who receive clinical training at the Hospital to establish a workforce of qualified nurses. Through the Systems relationships with fifteen North Texas schools of nursing, BSH maintains strong affiliations with schools of nursing. In the fiscal year ending June 30, 2012, the Hospital invested in training of 35 such students. Total unreimbursed cost of these programs was $253,080. Like physicians, nursing graduates trained at a System entity are not obligated to join the staff although many remain in the North Texas area to provide top quality nursing services to many health care institutions.
Part VI, Line 6: The organization is part of a large faith based integrated health care delivery system ("System") serving the health care needs of the twelve county Dallas-Fort Worth metroplex area. The System exists to serve all people through exemplary health care, education, research and community service. Community benefits are provided through the provision of charity care, governmental sponsored programs (such as Medicaid and Medicare), medical research, medical education, community health improvement services, donations to other nonprofit health care providers, and many other community service activities. During the year, the affiliated nonprofit hospitals reported community benefits (as reported to the Texas Department of State Health Services, and in accordance with the State of Texas Statutory methodology) in excess of $539,700,000. The System's nonprofit hospitals provided community benefits (as reported on the IRS Form 990, Schedule H) in excess of $221,650,000 during the tax year. The Texas Annual Statement of Community Benefit Standard includes approximately $297,000,000 of unreimbursed cost of Medicare that is not included in the IRS Form 990, Schedule H. The System is comprised of separate legal entities including philanthropic foundations, a research institute, a physician network, acute care hospitals, short-stay hospitals, specialty hospitals, ambulatory surgery centers and other health care providers all which fall under the common control of Baylor Health Care System, the organization's sole member. As part of the System, certain affiliates make grants and/or contributions to other related nonprofit affiliates to help financially support and/or fund worthy community benefits activities. The System has also established a patient transfer system among the affiliated hospitals allowing patients needing a particular level of care to be transferred as needed to a related hospital that can provide that service in an efficient and effective manner. As part of the System, all hospitals and other affiliated health care providers are required to adhere to high standards for medical quality, patient safety and patient satisfaction. These standards are set forth by Baylor Health Care System, the organization's sole member, which helps ensures consistency across the System.
TX	Reports Filed With States	Part VI, Line 7

Schedule I IRS990ScheduleI

Field	Value	IRS element (for citing)
Records Maintained	1	RecordsMaintained

Recipient Table RecipientTable

Recipient Name Business RecipientNameBusiness

Field	Value	IRS element (for citing)
Business Name Line1	Dallas County Indigent Care Corporation	BusinessNameLine1

Address US AddressUS

Field	Value	IRS element (for citing)
Address Line1	PO Box 655999	AddressLine1
City	Dallas	City
State	TX	State
ZIP Code	75265	ZIPCode

Field	Value	IRS element (for citing)
EIN Of Recipient	260610562	EINOfRecipient
IRC Section	501(c)(3)	IRCSection
Amount Of Cash Grant	71781	AmountOfCashGrant
Method Of Valuation	N/A	MethodOfValuation
Description Of Non Cash Assistance	N/A	DescriptionOfNonCashAssistance
Purpose Of Grant	Indigent Care	PurposeOfGrant

Field	Value	IRS element (for citing)
Total Nbr Of501 C3 And Govt Grants	1	TotalNbrOf501C3AndGovtGrants
Total Nbr Of Other Organizations	0	TotalNbrOfOtherOrganizations

Form990 Schedule I Part IV Form990ScheduleIPartIV

Field	Value	IRS element (for citing)
Identifier	Procedure for Monitoring Grants in the U.S.:	Identifier
Return Reference	Part I, Line 2:	ReturnReference
Explanation	Schedule I, Part I, Line 2: Monitoring Grants and Other Assistance As part of its mission, the organization provides grants and other assistance to related organizations and/or unrelated not-for-profit organizations which are religious, charitable, scientific, or educational in nature, within the meaning of Internal Revenue Code Section 501(c)(3), when the use will further one or more tenets of Baylor's charitable mission and one of the following criteria for use of these funds is met: (1)Fulfills a need identified by a community needs assessment conducted by Baylor Health Care System (BHCS) or a third party (such as Community Health Check Up or by the United Way) and adopted as a priority by BHCS's Community Service Advisory Council, (2) Serves an under-served community or group of people through medical mission work to improve their health status. For related organizations, all grants and other assistance are subject to the policies and procedures set forth by BHCS which ensures all funds are used in accordance with the guidelines set forth above and in accordance with the related organization's exempt purpose. Grants and other assistance provided to unrelated organizations are typically monitored by personal inspection. Examples include providing assistance to entities where the filing organization's employee serves as a Board Member for the recipient organization or through attendance at community events where the filing organization employees work as volunteers or to help coordinate these events.	Explanation

Schedule J IRS990ScheduleJ

Field	Value	IRS element (for citing)
Idemnification Gross Up Payments	X	IdemnificationGrossUpPayments
Club Dues Or Fees	X	ClubDuesOrFees
Written Policy Re T And E Expenses	1	WrittenPolicyReTAndEExpenses
Substantiation Required	1	SubstantiationRequired
Compensation Committee	X	CompensationCommittee
Independent Consultant	X	IndependentConsultant
Compensation Survey	X	CompensationSurvey
Board Or Committee Approval	X	BoardOrCommitteeApproval
Severance Payment	0	SeverancePayment
Supplemental Nonqual Retire Plan	1	SupplementalNonqualRetirePlan
Equity Based Comp Arrangement	0	EquityBasedCompArrangement
Comp Based On Revenue Of Filing Org	0	CompBasedOnRevenueOfFilingOrg
Comp Based On Revenue Related Orgs	0	CompBasedOnRevenueRelatedOrgs
Comp Based Net Earnings Filing Org	0	CompBasedNetEarningsFilingOrg
Comp Based Net Earnings Relate Orgs	0	CompBasedNetEarningsRelateOrgs
Any Non Fixed Payments	1	AnyNonFixedPayments
Initial Contract Exception	0	InitialContractException

Form990 Schedule J Part II Form990ScheduleJPartII (13 entries)

Base Compensation Filing OrgBaseCompensationFilingOrg	Comp Based On Related OrgsCompBasedOnRelatedOrgs	Bonus Filing OrgBonusFilingOrg	Bonus Related OrgsBonusRelatedOrgs	Other Compensation Filing OrgOtherCompensationFilingOrg	Other Compensation Related OrgsOtherCompensationRelatedOrgs	Deferred Comp Filing OrgDeferredCompFilingOrg	Deferred Comp Related OrgsDeferredCompRelatedOrgs	Nontaxable Benefits Filing OrgNontaxableBenefitsFilingOrg	Nontaxable Benefits Related OrgsNontaxableBenefitsRelatedOrgs	Total Compensation Filing OrgTotalCompensationFilingOrg	Total Compensation Related OrgsTotalCompensationRelatedOrgs	Comp Report Prior990 Filing OrgCompReportPrior990FilingOrg	Comp Report Prior990 Related OrgsCompReportPrior990RelatedOrgs
Cristie Columbus MD
0	233086	0	26180	0	1910	0	11919	0	20182	0	293277	0	0
Luz Tolentino
0	213526	0	52119	0	65177	0	34778	0	18702	0	384302	0	60774
Kelli Terpstra
151232	0	34546	0	790	0	8051	0	24140	0	218759	0	0	0
Robert Knowlton
114789	25606	0	27805	2979	40	5805	1292	6239	9629	129812	64372	0	0
Liz Youngblood
0	257829	0	73247	0	30624	0	40803	0	592	0	403095	0	19013
Fabian Polo
0	147598	0	33026	0	1654	0	22534	0	25076	0	229888	0	0
Anne Morton
117275	0	12570	0	870	0	5888	0	14724	0	151327	0	0	0
Carrin Feagins
107783	0	13706	0	385	0	5635	0	24484	0	151993	0	0	0
Darla Johnston
103808	0	13644	0	1705	0	5498	0	28898	0	153553	0	0	0
Scott Peek
0	253199	0	104261	0	66167	0	75368	0	24860	0	523855	0	19598
Trey Wicke
0	165578	0	40145	0	310	0	8503	0	18859	0	233395	0	0
Jon Skinner
0	73985	0	0	0	60913	0	35087	0	7406	0	177391	0	57450
James Thaxton
0	52866	0	0	0	63646	0	49990	0	2746	0	169248	0	61232

Form990 Schedule J Part III Form990ScheduleJPartIII (5 entries)

Return ReferenceReturnReference	ExplanationExplanation	IdentifierIdentifier
Part I, Line 1a	Tax indemnification and gross up payments - The organization provides tax indemnification where an authorized member of management determines there is justification to reimburse an individual for the tax impact on certain taxable, non-cash benefits provided to them. All tax indemnification payments provided are treated as taxable compensation. Two of the persons listed in the Form 990, Part VII, Section A, received this benefit during the tax year.
Part I, Line 1a	Health or social club dues or initiation fees-The organization may reimburse eligible employees for dues for a health club and/or a social club where there is a bona fide business need for the membership. For example, as part of the organization's promotion of health, the organization will cover a portion of any employees' fitness center club membership dues paid to an affiliated entity that owns and operates a fitness center. All employees are eligible for this benefit. Such reimbursements are treated as taxable compensation to the extent any part of the membership is used for personal use. Three of the persons listed in the Form 990, Part VII, Section A, received this benefit during the tax year.
Part I, Line 4b	In order to recruit and retain key talent, Baylor Health Care System ("BHCS") offers a supplemental non qualified retirement plan to eligible employees. The plan provides an annual benefit (based on a percentage of compensation) to the employee that is paid to the employee on a future date upon vesting in the plan. The following individual(s) participated in and/or received payments (noted in parenthesis) from BHCS' supplemental non qualified retirement plan during the tax year: Jon Skinner ($57,450), Liz Youngblood ($19,013), Luz Tolentino ($60,774), James Thaxton ($61,232), Fabian Polo, and Scott Peek ($19,598). Also, select certain officers, as designated by BHCS's governing body, are eligible to participate in a Long Term Incentive Plan that is designed to recognize the key senior leaders value and contribution to BHCS as well as align their compensation to the long term strategy of BHCS. Performance targets are based upon a percentage of the participant's base salary and are developed by independent third party expert(s) using market competitive data within the guides of reasonableness. The plan is based on BHCS's three-year performance against its peers, determined based on peer rankings or percentile rankings in quality, patient satisfaction and financial performance. At the end of three years, awards are determined by BHCS's governing body for participants. Payouts are partially made in cash and the remainder vests over an additional two year period. The following individual participated in and/or received payments (noted in parenthesis) from this plan during the tax year: Scott Peek ($37,459).
Part I, Line 7	The organization has adopted and implemented BHCS's, the organization's sole member, Performance Award Program to provide a market competitive total cash compensation incentive program that is designed to attract and retain key leaders and establish greater individual accountability and alignment to business performance. Payout targets are based upon a percentage of base pay and are developed by independent third party expert(s) using comparable market competitive data within the bounds of reasonableness and that are reviewed and approved by BHCS's governing body. Payout levels are based upon a combination of system, entity, and individual performance using various metrics related to quality, patient satisfaction, employee retention, and financal stewardship. BHCS's governing body may approve modifications to annual incentive awards provided under the program consistent with market comparability data.
Part III	Supplemental Information: Governing body compensation The members of the governing body serve on a voluntary basis and receive no cash compensation from the organization for these duties as a member of the governing body. However, certain members receive compensation from a related organization in their capacity as an employee of the related organization.	Supplemental Information

Schedule O IRS990ScheduleO

General Explanation GeneralExplanation (10 entries)

Return ReferenceReturnReference	ExplanationExplanation	IdentifierIdentifier
Form 990, Part VI, Section A, line 6	Members or stockholders: The organization is a Texas nonprofit membership organization in which Baylor Health Care System ("BHCS"), a tax exempt, Texas nonprofit corporation, is the sole member.
Form 990, Part VI, Section A, line 7a	Election of members of governing body by members, stockholders, or other persons: The sole member, BHCS, elects and removes one-sixth of the members of the governing body. The remaining members are self perpetuating and elected and removed by the organization's governing body.
Form 990, Part VI, Section A, line 7b	Governing body decisions subject to approval: The sole member, Baylor Health Care System, has final authority over certain decisions/powers of the organization such as approval of the organization's articles of incorporation and bylaws and amendments thereto, appointment and removal of the members of the organization's governing body, approval of dissolutions and mergers, and other similar decisions/powers over the organization.
Form 990, Part VI, Section B, line 11	Process used to review the Form 990: The Form 990 is prepared and reviewed by BHCS's tax department. During the return preparation process the tax department works with other functional areas including finance, accounting, treasury, legal, human resources, and corporate compliance for advice, information and assistance to prepare a complete and accurate return. Upon completion, the Form 990 is reviewed by the organization's President, financial officer and/or other key officers. A complete final copy of the return is provided to the organization's governing body prior to filing with the IRS.
Form 990, Part VI, Section B, line 12c	Process used to monitor and enforce compliance with the organization's conflict of interest policy: Persons with the actual or perceived ability to influence the organization have the duty to disclose annually and otherwise promptly as potential conflicts are identified, any familial, professional or financial relationships with entities or individuals that do, or seek to do business with the organization or that compete with the organization. These individuals include the organization's officers, governing body, management, physicians with administrative services agreements and other key personnel who interact with outside organizations or businesses on behalf of the organization. The BHCS Board of Trustees Audit and Compliance Committee and the BHCS Corporate Compliance Committee review all relevant disclosures submitted by these individuals to determine whether a conflict of interest exists and to determine an appropriate resolution, if necessary. Any individual with a perceived or potential conflict is prohibited from voting or participating in the decision making process regarding such transaction with that individual.
Form 990, Part VI, Section B, line 15	Process for determining compensation: The organization, a controlled affiliate of BHCS, recognizes that those chosen to lead the organization are vital to its ongoing success and growth. Thus, it must attract, retain and engage the highest quality officers and key employees to lead the organization and help BHCS maintain its national reputation for achieving high targets for medical quality, patient safety, and patient satisfaction. A significant portion of the organization's officers' and key employees' total compensation is based on significant performance achievements. This strategy, known as the Performance Award Program, works to put a greater emphasis on the importance of the organization achieving targeted improvements in the areas of People, Quality, Patient Satisfaction and Financial Stewardship, annually. Total executive compensation is part of an integrated talent management strategy developed by the BHCS Board of Trustees and its Compensation and Governance Committee (Committee) to attract, motivate, and retain the best leadership resources for the organization. Executive compensation is determined pursuant to guidelines outlined in the intermediate sanction rules under IRC Section 4958 including taking steps to meet the rebuttable presumption standard of reasonableness under Treasury Regulation 53.4958-6, as summarized below. When making compensation decisions, the organization compares itself to similar-sized, and structured businesses including other integrated health care service systems and other similar-sized organizations, both locally and nationally. The BHCS Board of Trustees and Committee, on behalf of the organization, work directly with independent compensation expert(s) to identify reasonable and competitive market rates as well as provide an annual review of the total compensation of the organization's top management officials and key employees. The Committee is made up of members of the BHCS Board of Trustees, who are independent, community volunteers. Guided by the information provided by the independent compensation expert(s), the Committee approves and recommends to the BHCS Board of Trustees salary increases, earned incentives, and benefit offerings for the organization's President, other officers and/or key employees to be comparable to similar organizations for similar services and/or positions. Furthermore, the Committee is charged with the responsibility of reviewing annually the major elements of the executive compensation program to assure designs remain consistent with the business needs, market practices, and compensation philosophy. As part of the decision making process, the Committee will often meet in executive session to discuss and review recommendations made by the independent compensation expert(s). During the executive session no officer or key employee whose compensation is being reviewed is present during these discussions. All decisions are contemporaneously documented in the Committee minutes which are timely reviewed and approved by the Committee.
Form 990, Part VI, Section C, line 19	Process for making governing documents, conflict of interest policy, & financial statements available to the public: The organization's articles of incorporation and amendments thereto are made available to the public by the filing of those documents with the Texas Secretary of State. Also, the organization is included within the combined financial statements of BHCS that are made available to the public by the posting of those documents through DAC Bond and are attached to this return. The organization's other governing documents and conflicts of interest policy are not made available to the public.
Form 990, Part VII: Hours devoted to related organizations:	The persons listed below also serve as employees of a related organization. The average hours per week devoted to the related organizations are listed below: Cristie Columbus, M.D. (40 Hours) Jon Skinner (40 Hours) Luz Tolentino (40 Hours) Liz Youngblood (40 Hours) Fabian Polo (40 Hours) Scott Peek (40 Hours) Trey Wicke (40 Hours) James Thaxton (40 Hours) Bob Knowlton transferred to a related organization during the year. He worked an average of 40 hours per week both before and after the transfer. Clint Stapp transferred to a related organization during the year. He worked an average of 40 hours per week both before and after the transfer.
Form 990, Part XI, line 5:	Net unrealized losses on investments: -347,059. Change in Net Assets Held at BHCS Foundation 376,422. Change in Net Assets Held at Irving Foundation -125,901. Transfer to/from BHCS-Liability Reserve 258,052. Total to Form 990, Part XI, Line 5: 161,514.	Changes in Net Assets or Fund Balances:
Supplemental Information: IRC Section 6038 Statement:	BSHC is controlled by BHCS, employer identification number 75-1812652. BHCS also owns Health Care Insurance Company of Texas, Ltd. (HCIC). HCIC is a controlled foreign corporation. BHCS furnishes all information required of BSHC by IRC Section 6038 and the regulations thereunder with respect to HCIC. Therefore, pursuant to Treasury Regulation Sec. 1.6038-2(j)(2), BSHC is excepted from providing such information. BHCS files its Return of Organization Exempt from Income Tax in Ogden, Utah.

Schedule R IRS990ScheduleR

Form990 Schedule R Part II Form990ScheduleRPartII (17 entries)

Address Line1AddressUS/AddressLine1	CityAddressUS/City	StateAddressUS/State	ZIP CodeAddressUS/ZIPCode	EINEIN	Primary ActivitiesPrimaryActivities	Legal Domicile StateLegalDomicileState	Exempt Code SectionExemptCodeSection	Public Charity StatusPublicCharityStatus	Direct Controlling Entity NADirectControllingEntityNA	Controlled OrgControlledOrg	Business Name Line1DirectControllingEntityName/BusinessNameLine1
Baylor Health Care System
2001 Bryan Street Suite 2200	Dallas	TX	75201	751812652	Management Services	TX	501(c)(3)	11, Type III	N/A	0
Baylor University Medical Center
2001 Bryan Street Suite 2200	Dallas	TX	75201	751837454	Acute Care Hospital	TX	501(c)(3)	3		1	Baylor Health Care System
Baylor Medical Centers at Garland and McKinney
2001 Bryan Street Suite 2200	Dallas	TX	75201	751037591	Acute Care Hospital	TX	501(c)(3)	3		1	Baylor Health Care System
Baylor Medical Center at Irving
2001 Bryan Street Suite 2200	Dallas	TX	75201	752586857	Acute Care Hospital	TX	501(c)(3)	3		1	Baylor Health Care System
Baylor Medical Center at Waxahachie
2001 Bryan Street Suite 2200	Dallas	TX	75201	751844139	Acute Care Hospital	TX	501(c)(3)	3		1	Baylor Health Care System
Baylor Regional Medical Center at Plano
2001 Bryan Street Suite 2200	Dallas	TX	75201	820551704	Acute Care Hospital	TX	501(c)(3)	3		1	Baylor Health Care System
Baylor Regional Medical Center at Grapevine
2001 Bryan Street Suite 2200	Dallas	TX	75201	751777119	Acute Care Hospital	TX	501(c)(3)	3		1	Baylor Health Care System
Baylor Institute for Rehabilitation at Gaston Episcopal Hospital
2001 Bryan Street Suite 2200	Dallas	TX	75201	751037226	Rehabilitation Hospital	TX	501(c)(3)	3		1	Baylor Health Care System
Baylor All Saints Medical Center
2001 Bryan Street Suite 2200	Dallas	TX	75201	751008430	Acute Care Hospital	TX	501(c)(3)	3		1	Baylor Health Care System
Baylor Health Care System Foundation
2001 Bryan Street Suite 2200	Dallas	TX	75201	751606705	Fundraising	TX	501(c)(3)	7		1	Baylor Health Care System
All Saints Health Foundation
2001 Bryan Street Suite 2200	Dallas	TX	75201	751947007	Fundraising	TX	501(c)(3)	7		1	Baylor All Saints Medical Center
HealthTexas Provider Network
2001 Bryan Street Suite 2200	Dallas	TX	75201	752536818	Physician Practices	TX	501(c)(3)	3		1	Baylor Health Care System
Baylor Health Services
2001 Bryan Street Suite 2200	Dallas	TX	75201	751917311	Inactive	TX	501(c)(3)	3		1	Baylor Health Care System
Baylor Research Institute
2001 Bryan Street Suite 2200	Dallas	TX	75201	751921898	Research	TX	501(c)(3)	4		1	Baylor Health Care System
Southern Sector Health Initiative
2001 Bryan Street Suite 2200	Dallas	TX	75201	263087442	Diabetes Health & Wellness Center	TX	501(c)(3)	11, Type I		1	Baylor University Medical Center
Baylor Health Care System Employee Benefit Trust
2001 Bryan Street Suite 2200	Dallas	TX	75201	751848557	VEBA	TX	501(c)(9)			1	Baylor Health Care System
Irving Healthcare Foundation
2001 Bryan Street Suite 2200	Dallas	TX	75201	751570933	Fundraising	TX	501(c)(3)	7		1	Baylor Medical Center at Irving

Form990 Schedule R Part III Form990ScheduleRPartIII (42 entries)

Address Line1AddressUS/AddressLine1	CityAddressUS/City	StateAddressUS/State	ZIP CodeAddressUS/ZIPCode	EINEIN	Primary ActivityPrimaryActivity	Legal Domicile StateLegalDomicileState	Direct Controlling Entity NADirectControllingEntityNA
MEDCO Construction LLC
2001 Bryan Street Suite 2200	Dallas	TX	75201	205965871	Construction	TX	N/A
Baylor Affiliated Services LLC
2001 Bryan Street Suite 2200	Dallas	TX	75201	260614730	Benefit Plans	TX	N/A
Baylor Heart and Vascular Center LLP
2001 Bryan Street Suite 2200	Dallas	TX	75201	752834135	Specialty Hospital	TX	N/A
Texas Heart Hospital of the Southwest LLP
2001 Bryan Street Suite 2200	Dallas	TX	75201	412101361	Specialty Hospital	TX	N/A
HealthTexas Provider Network-Gastro Serv LLP
2001 Bryan St Ste 2200	Dallas	TX	75201	731697736	Ambulatory Surgery Center	TX	N/A
Texas Health Venture Group LLC
15305 Dallas Parkway Suite 1600	Addison	TX	75001	752696845	Holds interests in ASCs/ Short Stay Hospitals	TX	N/A
Dallas Surgical Partners LLC
15305 Dallas Parkway Suite 1600	Addison	TX	75001	722183815	Ambulatory Surgery Center	TX	N/A
Valley View Surgicare Partners Ltd
15305 Dallas Parkway Suite 1600	Addison	TX	75001	752900902	Ambulatory Surgery Center	TX	N/A
Denton Surgicare Partners Ltd
15305 Dallas Parkway Suite 1600	Addison	TX	75001	752708579	Ambulatory Surgery Center	TX	N/A
Bellaire Outpatient Surgery Center LLP
15305 Dallas Parkway Suite 1600	Addison	TX	75001	562297308	Ambulatory Surgery Center	TX	N/A
Grapevine Surgicare Partners Ltd
15305 Dallas Parkway Suite 1600	Addison	TX	75001	752854711	Ambulatory Surgery Center	TX	N/A
Lewisville Surgicare Partners Ltd
15305 Dallas Parkway Suite 1600	Addison	TX	75001	752862263	Ambulatory Surgery Center	TX	N/A
North Garland Surgery Center LLP
15305 Dallas Parkway Suite 1600	Addison	TX	75001	562399993	Ambulatory Surgery Center	TX	N/A
Garland Surgicare Partners Ltd
15305 Dallas Parkway Suite 1600	Addison	TX	75001	752764855	Ambulatory Surgery Center	TX	N/A
Arlington Surgicare Partners Ltd
15305 Dallas Parkway Suite 1600	Addison	TX	75001	752748040	Ambulatory Surgery Center	TX	N/A
Rockwall Ambulatory Surgery Center LLP
15305 Dallas Parkway Suite 1600	Addison	TX	75001	205506447	Ambulatory Surgery Center	TX	N/A
Metroplex Surgicare Partners Ltd
15305 Dallas Parkway Suite 1600	Addison	TX	75001	752567179	Ambulatory Surgery Center	TX	N/A
Baylor Surgicare at Plano LLC
15305 Dallas Parkway Suite 1600	Addison	TX	75001	260308454	Ambulatory Surgery Center	TX	N/A
RockwallHeath Surgery Center LLP
15305 Dallas Parkway Suite 1600	Addison	TX	75001	200334166	Ambulatory Surgery Center	TX	N/A
Irving Coppell Surgical Hospital LLP
15305 Dallas Parkway Suite 1600	Addison	TX	75001	542086863	Short Stay Hospital	TX	N/A
North Central Surgical Center LLP
15305 Dallas Parkway Suite 1600	Addison	TX	75001	201508140	Short Stay Hospital	TX	N/A
Trophy Club Medical Center LLP
15305 Dallas Parkway Suite 1600	Addison	TX	75001	481260190	Short Stay Hospital	TX	N/A
Ft Worth Surgicare Partners Ltd
15305 Dallas Parkway Suite 1600	Addison	TX	75001	752658178	Short Stay Hospital	TX	N/A
Frisco Medical Center LLP
15305 Dallas Parkway Suite 1600	Addison	TX	75001	752865177	Short Stay Hospital	TX	N/A
MSH Partners LLP
15305 Dallas Parkway Suite 1600	Addison	TX	75001	752829613	Short Stay Hospital	TX	N/A
Arlington Orthopedic Spine Hospital LLC
15305 Dallas Pkwy Suite 1600	Addison	TX	75001	261578178	Short Stay Hospital	TX	N/A
University Surgical Partners of Dallas LLP
15305 Dallas Parkway Suite 1600	Addison	TX	75001	550823809	Ambulatory Surgery Center	TX	N/A
Baylor Surgicare at Granbury LLC
15305 Dallas Parkway Suite 1600	Addison	TX	75001	263896477	Ambulatory Surgery Center	TX	N/A
Baylor Surgicare at Mansfield LLC
15305 Dallas Parkway Suite 1600	Addison	TX	75001	271835675	Ambulatory Surgery Center	TX	N/A
Physicians Surgical Center of Ft Worth LLP
15305 Dallas Parkway Suite 1600	Addison	TX	75001	208303422	Ambulatory Surgery Center	TX	N/A
Desoto Surgicare Partners Ltd
15305 Dallas Parkway Suite 1600	Addison	TX	75001	752592508	Ambulatory Surgery Center	TX	N/A
Metrocrest Surgery Center LP
15305 Dallas Parkway Suite 1600	Addison	TX	75001	030380493	Ambulatory Surgery Center	TX	N/A
Lone Star Endoscopy Center LLC
15305 Dallas Parkway Suite 1600	Addison	TX	75001	273635726	Ambulatory Surgery Center	TX	N/A
Tuscan Surgery Center at Las Colinas LLC
15305 Dallas Parkway Suite 1600	Addison	TX	75001	273578014	Ambulatory Surgery Center	TX	N/A
Baylor Surgicare at Ennis LLC
15305 Dallas Parkway Suite 1600	Addison	TX	75001	274202856	Ambulatory Surgery Center	TX	N/A
Baylor Surgicare at Plano Parkway LLC
15305 Dallas Parkway Suite 1600	Addison	TX	75001	274282604	Ambulatory Surgery Center	TX	N/A
Baylor Surgicare at Duncan- ville LLC
15305 Dallas Parkway Suite 1600	Addison	TX	75001	273583837	Ambulatory Surgery Center	TX	N/A
BIR JV LLP
4714 Gettysburg Rd	Mechanicsburg	PA	17055	274586141	Rehabilitation Hospitals	TX	N/A
Park Cities Surgery Center LLC
15305 Dallas Parkway Suite 1600	Addison	TX	75001	562357079	Ambulatory Surgery Center	TX	N/A
GlobalRehab LP
4714 Gettysburg Rd	Mechanicsburg	PA	17055	288077072	Rehabilitation Hospitals	TX	N/A
GlobalRehab-Fort Worth LP
4714 Gettysburg Rd	Mechanicsburg	PA	17055	205558682	Rehabilitation Hospitals	TX	N/A
EBD JV LLP
10077 Grogans Mill Rd Suite 100	The Woodlands	TX	77380	455434614	Free-standing ER's	TX	N/A

Form990 Schedule R Part IV Form990ScheduleRPartIV (8 entries)

Address Line1AddressUS/AddressLine1	CityAddressUS/City	StateAddressUS/State	ZIP CodeAddressUS/ZIPCode	EINEIN	Primary ActivityPrimaryActivity	Legal Domicile StateLegalDomicileState	Direct Controlling Entity NADirectControllingEntityNA	Type Of EntityTypeOfEntity	Address Line1AddressForeign/AddressLine1	CityAddressForeign/City	CountryAddressForeign/Country	Legal Domicile Foreign CountryLegalDomicileForeignCountry
Baylor Health Enterprises LP
2001 Bryan Street Suite 2200	Dallas	TX	75201	751997378	Fitness Center/Pharmacy/ Hotel	TX	N/A	C
Baylor Health Network Inc
2001 Bryan Street Suite 2200	Dallas	TX	75201	752463251	Billing/ Collection	TX	N/A	C
BMP Incorporated
2001 Bryan Street Suite 2200	Dallas	TX	75201	751436779	Post Office	TX	N/A	C
Health Care Insurance Company of Texas Ltd
				980403182	Investments		N/A	C	PO Box GT 2nd Fl Buckingham Sq	Grand Cayman	CJ	CJ
Baylor Medical Center at Grapevine Condominium Owners Association Inc
2001 Bryan Street Suite 2200	Dallas	TX	75201	752747555	Condo Association	TX	N/A	C
BUMCRoberts Condominium Owners Association Inc
2001 Bryan Street Suite 2200	Dallas	TX	75201	752897806	Condo Association	TX	N/A	C
Baylor All Saints Med Cntr at Ft Worth Condo Owners Association Inc
2001 Bryan Street Suite 2200	Dallas	TX	75201	261661900	Condo Association	TX	N/A	C
Baylor Quality Health Care Alliance LLC
2001 Bryan Street Suite 2200	Dallas	TX	75201	454015863	ACO	TX	N/A	C

Field	Value	IRS element (for citing)
Receipt Of Int Ann Rents Royalties	1	ReceiptOfIntAnnRentsRoyalties
Gift Grant Or Cap Contr To Other Org	0	GiftGrantOrCapContrToOtherOrg
Gift Grant Or Cap Contr Fr Other Org	1	GiftGrantOrCapContrFrOtherOrg
Loans Or Guarantees To Other Org	0	LoansOrGuaranteesToOtherOrg
Loans Or Guarantees From Other Org	0	LoansOrGuaranteesFromOtherOrg
Sale Of Assets To Other Org	0	SaleOfAssetsToOtherOrg
Purchase Of Assets From Other Org	0	PurchaseOfAssetsFromOtherOrg
Exchange Of Assets	0	ExchangeOfAssets
Rental Of Facilities To Other Orgs	0	RentalOfFacilitiesToOtherOrgs
Rental Of Facilities Fr Other Orgs	0	RentalOfFacilitiesFrOtherOrgs
Perform Of Services For Other Orgs	1	PerformOfServicesForOtherOrgs
Perform Of Services By Other Orgs	1	PerformOfServicesByOtherOrgs
Sharing Of Facilities	0	SharingOfFacilities
Sharing Of Paid Employees	0	SharingOfPaidEmployees
Reimbursement Paid To Other Org	1	ReimbursementPaidToOtherOrg
Reimbursement Paid By Other Org	0	ReimbursementPaidByOtherOrg
Other Transfer To Other Org	0	OtherTransferToOtherOrg
Other Transfer From Other Org	1	OtherTransferFromOtherOrg

Transactions Related Orgs Table TransactionsRelatedOrgsTable (15 entries)

Transaction TypeTransactionType	Amount InvolvedAmountInvolved	Method Of Amt DeterminationMethodOfAmtDetermination
Irving Healthcare Foundation
C	300000	GAAP
HealthTexas Provider Network
A	24039	GAAP
Baylor Health Care System
L	9684973	GAAP
BIR JV LLP
L	99521	GAAP
Baylor University Medical Center
L	3510399	GAAP
HealthTexas Provider Network
L	891274	GAAP
MEDCO Construction LLC
L	78646	GAAP
Baylor Health Care System
O	98293	GAAP
Baylor Health Care System
R	258052	GAAP
Baylor Heart and Vascular Hospital
L	58459	GAAP
Baylor Specialty Health Centers
K	74103	GAAP
Baylor Specialty Health Centers
L	73339	GAAP
Baylor University Medical Center
K	86991	GAAP
BIR JV LLP
K	99866	GAAP
Baylor Health Care System Foundation
C	95050	GAAP