2013-11-13T15:08:51-06:00 2012-12-31 EISNERAMPER LLP 111 WOOD AVE SO STE 600 ISELIN NJ 088302700 990 2012-01-01 226019101 THE COMMUNITY HOSPITAL GROUP INC % RICHARD C SMITH COMM 7323217747 98 JAMES STREET Suite EDISON NJ 08820 RICHARD C SMITH 7323217000 2013-11-15 true RICHARD A SACKIN 7322437000 2012 2016-02-24 21:20:13Z JFK MEDICAL CENTER RAYMOND F FREDERICKS 80 JAMES STREET EDISON NJ 08820 462647675 false X jfkhealthsystem.org X 1962 NJ SEE SCHEDULE O. 20 18 4289 445 689693 -199354 830103 3779962 432458515 436803015 1249518 1106539 13992921 18822693 448531057 460512209 0 0 0 0 236723689 242375082 0 0 0 201746601 203317795 438470290 445692877 10060767 14819332 254943530 264153185 275647614 269575607 -20704084 -5422422 X WE ARE COMMITTED TO EXCELLENCE IN PROVIDING QUALITY AND COMPASSIONATE HEALTHCARE SERVICES TO OUR DIVERSE COMMUNITIES. false false 57619122 63224979 JFK JOHNSON REHABILITATION INSTITUTE - During 2012, the JFK Johnson Rehabilitation Institute had 1,875 admissions resulting in 25,663 patient days. Please refer to Schedule O, JFK Medical Center Background and History for more information. 104927986 106711529 INPATIENT SERVICE - During 2012, JFK Medical Center had 18,042 admissions resulting in 83,907 patient days. Please refer to Schedule O, JFK Medical Center Background and History for more information. 93568444 103205511 OPERATING ROOM AND SAME DAY SURGERIES - During 2012, JFK Medical Center performed 3,752 inpatient surgeries, 5,835 same day stay surgical procedures and 3,434 surgical procedures at the Mediplex Surgery Center. 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Also the hospital is a member of the New Jersey Hospital Association, the American Hospital Association, and the AMERICAN MEDICAL REHAB PROVIDERS ASSOCIATION. ALL THREE engage in lobbying efforts on behalf of their member hospitals AND A portion of the dues paid to these organizations has been allocated to lobbying activities performed on behalf of the organization. This allocation amounted to $45,271. X 1 3.00 1 false false 8446399 8446399 164085232 97927766 66157466 646022 368097 277925 200999441 168513544 32485897 2594373 2594373 109962060 OTHER ASSETS 14364116 BENEFICIAL INT IN NET ASSETS 6775847 NOTE REC. HARTWYCK AT OAK TREE 2873343 DUE FROM JFK HEALTHSHARE, INC. 476440 DUE FROM JFK FOUNDATION 326064 DUE FROM ATLANTIC INSURANCE EX 50757 DUE FROM RWJ JR LIFESTYLE INST 41013 DUE FROM MUHLENBERG FOUNDATION 43565 NOTE REC FROM JFK HEALTHSHARE 93000 DEFERRED FINANCING COSTS 3064745 DUE FROM HARTWYCK WEST NURSING 87883 28196773 0 OTHER LIABILITIES 6547211 AMOUNTS DUE 3RD PARTY PAYORS 21433908 ACCRUED PENSION LIABILITY 54451182 ACCRUED POST RETIREMENT BENEFIT 811453 CAPITAL LEASE OBLIGATIONS 3842867 CURRENT PORTION OF CAP LEASE OBLIG 2432406 CURRENT PORTION OF LONG-TERM DEBT 1881481 91400508 X 427656299 -29677123 -29677123 457333422 3178787 3178787 460512209 416015754 416015754 29677123 29677123 445692877 PART II, LINE 5 JFK MEDICAL CENTER CREATED THE CONSERVATION EASEMENT. THE LAND WAS NOT CONTRIBUTED TO JFK MEDICAL CENTER. PART II, LINE 9 JFK MEDICAL CENTER REPORTS CONSERVATION EASEMENTS WITHIN PROPERTY PLANT AND EQUIPMENT ON THE BALANCE SHEET. PART II, LINE 8 THE EASEMENT IS UNDEVELOPABLE RAW LAND. PART XI, LINE 4B - OTHER ADJUSTMENTS INVESTMENT INCOME: 541,521 NET ASSETS RELEASED FROM RESTRICTIONS FOR CAPITAL PURCHASES: 1,178,021 PROPERTY, PLANT & EQUIPMENT TRANSFERRED FROM MEDIPLEX SURGICAL CENTER ASSOCIATES: 1,459,245 TOTAL PART XI, LINE 4B: 3,178,787 PART X, QUESTION 2 JFK Medical Center accounts for uncertainty in income taxes by prescribing a recognition threshold of more-likely-than-not to be sustained upon examination by the appropriate taxing authority. Measurement of the tax uncertainty occurs if the recognition threshold has been met. There were no tax uncertainties that met the recognition threshold in 2012 or 2011. PART II, QUESTIONS 6 AND 7 THE ONLY STAFF HOURS AND EXPENSES INCURRED FOR THE PROPERTY AND EASEMENT WOULD BE FOR ORDINARY LAND UPKEEP. 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JFKHEALTHSYSTEM.ORG X ADULT DAY CARE 2 THE COMMUNITY HOSPITAL GROUP INC 1 true true 300. true 500. true X X X X true true X X true false true X false false THE COMMUNITY HOSPITAL GROUP INC 2 true true 300. true 500. true X X X X true true X X true false false X X false false PART I, LN 7 COL(F) The bad debt expense included on form 990, Part IX, Line 25, column (A), but subtracted for purposes of calculating the percentage in this column is $29,677,123. Part I, Line 7 WORKSHEET 2 WAS USED FOR THE COST TO CHARGE RATIO. PART 1, LINE 3C JFK MEDICAL CENTER USES THE INCOME/ASSET CRITERIA AND SLIDING SCALE PROVIDED BY THE STATE OF NEW JERSEY WHEN SCREENING PATIENTS FOR FINANCIAL ASSISTANCE. ADDITIONALLY, JFK MEDICAL CENTER HAS A COMPASSIONATE CARE POLICY TO APPLY DISCOUNTS (WHEN APPLICABLE) IF A PATIENT DOES NOT QUALIFY OR ONLY QUALIFIES FOR PARTIAL CHARITY CARE. PART 1, LINE 7G Subsidized health services represent clinical patient care services that are provided, despite a negative margin, because they are needed in the community. During 2012, the organization provided family practice, dental, adult day care, peds rehabilitation, cardiac rehabilitation, and cognitive rehabilitation services programs. The net community benefit expenses represents the total expenses offset by any patient and grant revenue. PART III, LINE 4 Accounts receivable, patients are reported at net realizable value. Accounts are written off when they are determined to be uncollectible based upon management's assessment of individual accounts. The allowance for doubtful collections is estimated based upon a periodic review of the accounts receivable aging, payor classifications and application of historical write-off percentages. The costing methodology used is the ratio of the cost to charges as described in Worksheet #2 instructions. PART III, LINE 8 Medicare costs were derived from the 2012 Medicare cost report. The organization's position is that Medicare underpayments and bad debt are community benefits and associated costs should be includable on Form 990, Schedule H, Part I as outlined more fully below. The organization believes that these services and related costs promote health of the community as a whole and are rendered in conjunction with the organization's charitable tax-exempt purpose and mission in providing medically necessary healthcare services to all individual's in a non-discriminatory manner without regard to race, color, creed, sex, national origin, religion or ability to pay and consistent with the Community Benefit Standard promulgated by the IRS. The Community Benefit Standard is the current standard for a hospital for recognition as a tax-exempt and charitable organization under the Internal Revenue Code (IRC) 501(c)(3). The organization is recognized as a tax-exempt and charitable organization under the Internal Revenue Code (IRC) 501(c)(3). Although there is no definition in the tax code for the term "charitable", a regulation promulgated by the Department of the Treasury provides some guidance and states that the term charitable is used in section 501(c)(3) in its generally accepted legal sense, and provides examples of charitable purposes, including the relief of the poor or unprivileged, the promotion of social welfare, and the advancement of education and science. Note, it does not explicitly address the activities of hospitals in the absence of explicit statutory or regulatory requirements applying the term "charitable" to hospitals, it has been left to the IRS to determine the criteria hospitals must meet to qualify as an IRC 501(c)(3) charitable organization. The original standard was known as the Charity Care Standard. This standard was replaced by the IRS with the Community Benefit Standard which is the current Charity Care Standard. In 1956, the IRS issued revenue ruling 56-185, which addressed the requirements hospitals needed to meet in order to qualify for IRC 501(c)(3) status. One of these requirements is known as the Charity Care Standard. Under the standard, a hospital had to provide, to the extent of its financial ability, free or reduced-cost care to patients unable to pay for it. A hospital that expected full payment did not, according to the ruling, provide charity care. The ruling emphasized that a low level of charity care did not necessarily mean that a hospital had failed to meet the requirement since that level could reflect its financial ability to provide such care. The ruling also noted that a publically supported community hospital would normally qualify as a charitable organization because it serves the entire community, and a low level of charity care would not affect a hospitals exempt status if it was due to the surrounding community lack of charitable demands. In 1969, the IRS issued revenue ruling 69-545 which removed from ruling 56-185 the requirements relating to caring for patients without charge or at rates below costs. Under the standard developed in ruling 69-545, which is know as the "Community Benefit Standard", hospitals are judged on whether they promote health of a broad class of individuals in the community. The ruling involved a hospital that only admitted individuals who could pay for the services (by themselves, private insurance, or public programs such as Medicare), but operated a full-time Emergency Room that was open to everyone. The IRS ruled that the hospital qualified as a charitable organization because it promoted the health of people in its community. The IRS reasoned that because the promotion of health was a charitable purpose according to the general law of charity, it fell within the "generally accepted legal sense" of the term "charitable", as required by Treasury Regulation 1.501 (c)(3)-1(d)(2). The IRS ruling stated that the promotion of health, like the relief of poverty and the advancement of education and religion, is one of the purposes in the general law of charity that is deemed beneficial to the community as a whole, even though the class of beneficiaries eligible to receive a direct benefit from its activities does not include all members of the community, such as indigent members of the community, provided that the class is not so small that its relief is not of benefit to the community. The IRS concluded that the hospital was promoting the health of a class of persons that is broad enough to benefit the community because its Emergency Room was open to all and it provided care to everyone who could pay, whether directly or through third-party reimbursement. Other characteristics of the hospital that the IRS highlighted included the following: o Its surplus funds were used to improve patient care, expand hospital facilities, and advance medical training, education and research. o It was controlled by a Board of Trustees that consisted of independent civic leaders. o Hospital medical staff privileges were available to all qualified physicians. The organization believes that Medicare underpayments and bad debt are community benefits and associated costs should be includable on Form 990, Schedule H, Part I. The American Hospital Association's (AHA) position is that Medicare underpayments and bad debt are community benefits and associated costs should be includable on Form 990, Schedule H, Part I. This organization agrees with the AHA position as outlined in the AHA letter to the IRS dated August 21, 2007. With respect to the first published draft of the new Form 990 and Schedule H, the AHA felt that the IRS should incorporate the full value of the community benefit that hospitals provide by counting Medicare underpayments as quantifiable community benefit for the following reasons; o Providing care for the elderly and serving Medicare patients is an essential part of the Community Benefit Standard. o Medicare, like Medicaid, does not pay the full cost of care. Medicare reimburses the hospital only 92 cents for every dollar they spend to take care of Medicare patients. o Many Medicare beneficiaries, like their Medicaid counterparts, are poor. More than 46 percent of Medicare spending is for beneficiaries whose income is below 200 percent Federal poverty level. Many of those Medicare beneficiaries are also eligible for Medicaid, so called dual eligibles. There is every compelling public policy reason to treat Medicare and Medicaid underpayments similarly for the purposes of a hospitals community benefit and include the costs on Form 990, Schedule H, Part I. Medicare underpayment must be shouldered by the hospital in order to continue treating the community's elderly and poor. These underpayments represent a real cost of serving the community and should count as a quantifiable community benefit. Both the AHA and this organization also feel that patient bad debt is a community benefit and thus includable on Form 990, Schedule H, Part I. Like Medicare underpayment, there also are compelling reasons that patient bad debt should be counted as a quantifiable community benefit. A significant majority of bad debt is attributable to low-income patients, who, for many reasons, decline to complete the forms required to establish eligibility for the hospital's Charity Care or Financial Assistance programs. A 2006 Congressional Budget Office Report, Nonprofit Hospitals and the Provision of Community Benefits, cited two studies indicating that "the great majority of bad debt was attributable to patients with incomes below 200 percent of the Federal Poverty Line". The report also noted that a substantial portion of bad debt is pending Charity Care. Unlike bad debt in other industries, hospital bad debt is complicated by the fact that hospitals follow their mission to the community and treat every patient that comes through their Emergency department, regardless of their ability to pay. Patients who have outstanding bills are not turned away, unlike other industries. Bad debt is further complicated by auditing industry standards on reporting Charity Care, many patients cannot or do not provide the necessary extensive documentation required to be deemed Charity Care by the auditors. As a result, roughly 40% of bad debt is pending Charity Care. PART III, LINE 9B JFK Medical Center recognizes the financial difficulty imposed on the self-pay patient who is least able to pay for healthcare services when billed at the Hospital's standard charges. Credit adjustments to the self-pay balance will be permitted for the purpose of billing and collecting from the self-pay patient. This policy does not affect any billings for services rendered by hospital based physicians groups, professional practice physicians, or parties providing other medical services to the patient not billed by the Hospital. This policy excludes billing for Obstetrics, Gynecology (selected), Newborn, and Cosmetic procedures (covered under separate policy). This policy does not cover amounts owed relating to copays, deductibles, and coinsurance. The cost and subsequent self-pay billing amount will be determined based upon a review of the most current Hospital Specific Medicare Cost Report and managed care commercial rate. All patients that present to the Hospital for medically necessary services who are identified as self-pay patients will be advised when appropriate, by the hospital registrar to contact the New Jersey Hospital Care Payment Assistance Program representative or a Patient Accounting department representative. The Hospital has a formal self-pay billing and collection practice in place to assist the patient with the payment of their account. A. All patients are to be made aware of the New Jersey Hospital Care Payment Assistance program and be provided with the appropriate notice of the availability of the program as required by the program's regulatory guidelines. B. Patients who are determined to be eligible for the New Jersey Hospital Care Payment Assistance Program will have their charges for services reduced using the program calculation and methodology. C. Patients found ineligible for the New Jersey Hospital Care Payment Assistance Program are advised of the uninsured eligibility criteria and are encouraged to apply. D. The billing practice shall be explained when appropriate to the patient to ensure that proper communication occurs regarding this policy. E. A determination will be made at the time of service or as soon as possible thereafter to access and identify any and all other 3rd party benefits available to the patient. This will ensure that all 3rd party payers are billed appropriately, prior to a self-pay adjustment being made on an account. F. The adjustment will be manually made through the hospital billing system and appear as a credit adjustment to the patient balance. G. If the patient expresses an inability to pay the account balance in full, a payment arrangement may be authorized by the Hospital at its discretion. Payment arrangements will be based upon the Hospital's credit and collection policy. PART VI, NO. 2 This organization reviewed key factors that by population (primary and secondary service areas) that included a representative cross-section of demographics by ethnicity and age. This was accomplished a number of ways. We performed extensive focus groups attended by our primary and secondary service area patient base. We asked questions about health needs, inpatient and outpatient experiences and needs, clinic needs, clinical service line needs and patient satisfaction. These focus groups were done at various times in order to accomplish our goal of having the representative base. We performed an independent telephone survey asking 1,000 residents similar questions regarding health care needs. We also worked with our local community based organizations, both faith based and non-faith based, to provide and identify health needs. Additionally, we were members of a Community Action Group in the Plainfield community to address the health needs of this primary service area. PART VI, NO. 3 FINANCIAL ASSISTANCE SIGNS ARE POSTED THROUGHOUT THE FACILITY, INCLUDING ADMITTING, Emergency room, Satellite emergency department, IMAGING CENTER AND OTHER PATIENT REGISTRATION AREAS. aLL ELIGIBLE PATIENTS ARE SCREENED FOR FINANCIAL ASSISTANCE ACCORDING TO THE FEDERAL POVERTY GUIDELINES AND REFERRED TO THE APPROPRIATE AGENCIES OR PROGRAMS. aLL PATIENTS THAT CONTACT THE HOSPITAL FOR PRICING ARE INFORMED OF THE CHARITY AND COMPASSIONATE CARE POLICIES OF THE MEDICAL CENTER. PART VI, NO. 4 According to the 2011 Census, the population of Middlesex County (where JFK is located) reached 814,217, an increase of 8% since the 2000 Census. Almost half the total population is comprised of minorities and 7.4% of families live in poverty. As a result of the closure of nearby Muhlenberg Regional Medical Center in August 2008, JFK'S primary service area has expanded as it has become the nearest full service hospital for residents of southwestern Union County, including the city of Plainfield, where over 76.5% of the 50,085 residents are minorities, more than 16.8% of families live in poverty and portions of the city are considered an Urban Enterprise Zone (an area where blighted neighborhoods receive encouragement through tax relief to businesses and entrepreneurs). In 2011, Plainfield'S median household income was $52,056, 34% lower than the state'S $69,811. In terms of ethnicity, Middlesex County has the highest percentage of Asian residents of all New Jersey counties (22.2%). African Americans account for 10.7% of the population, while Hispanics make up 18.9%. Over 7.4% of families live below the federal poverty level ($22,300 per year for a family of four). The County'S median income of $77,615 in 2011 (the most recent data available) was higher than the state, nevertheless, Middlesex County has pockets of working poor and unemployed persons who rely on JFK for care. According to the Middlesex County FreeholderS' website, "close to one third of the population still earns less than a living wage." Unemployment IN MIDDLEsEX COUNTY rose from 5% in 2008 to 8.2% in 2012. The Health Resources and Services Administration (HRSA) Area Resource File states that, in 2009 (most recent data available), there were 123,329 uninsured persons under age 65 and 65,053 Medicaid recipients in Middlesex County. HRSA also recorded 89,740 individuals 65 and older and 13,323 disabled individuals receiving Medicare. Immigrants make up 25.3% of the population and homeless persons numbered 796 men, women and children as of January 2009 - the most recent survey by the U.S. Department of Housing and Urban Development (HUD). PART VI, NO. 5 Community building activities undertaken by this organization are focused on improving both the well-being of our PRIMARY SERVICE AREA and SECONDARY SERVICE AREA and improving access to health care. We accomplish this through partnerships with local organizations like the YMCA, FEDERALLY QUALIFIED HEALTH CENTER, Religious and Cultural organizations and individuals who reside in the community. We participate in conferences, lectures, seminars, health fairs and sponsorships. We provide materials, professional and medical personnel, classrooms, social halls for the community benefit. PART VI, NO. 6 The parent organization performs community outreach as well as each affiliate. From health fairs and seminars, to speeches and tours, each affiliate goes into the community to reinforce and educate regarding access to health care and programs available. PART VI, NO. 7 NOT APPLICABLE PART V, SECTION A ALL ENTITIES LISTED IN THIS SECTION OPERATE UNDER THE COMMUNITY HOSPITAL GROUP LICENSE. X X X X X true true true false false true false true false SEAN PATRICK MURPHY ESQ 355264 20000 72856 21618 469738 LOUIS HERMANS 290038 10000 33841 8188 342067 AMIE THORNTON 140028 30000 36179 1835 208042 PATRICIA RACKOVAN 210000 15000 1131 0 226131 WILLIAM OSER 441963 65000 84847 18858 610668 RICHARD C SMITH 402876 55000 69231 17372 544479 GREGORY PRZYBYLSKI MD 660947 10000 6750 19618 697315 THOMAS STRAX MD 432455 41613 6585 480653 martin gizzi MD 417272 40500 13878 6497 478147 STEPHEN BLOOMFIELD MD 497054 6611 15634 519299 THOMAS STEINEKE MD 521483 5823 19682 546988 ASIF BASHIR 510713 20000 5000 17818 553531 RAYMOND F FREDERICKS 709595 100000 44290 302807 21983 1178675 SCOTT GEBHARD 419664 65000 199809 74348 16383 775204 JOHN MCGEE 0 468853 20221 18454 507528 SCHEDULE J, PART II ASIF BASHIR, MD OTHER REPORTABLE COMPENSATION WAS A LOAN FORGIVENESS INCLUDED IN BOX 5 OF FORM W-2. SCHEDULE J, PART I, QUESTION 4B THIS QUESTION WAS ANSWERED YES DUE TO THE TWO BENEFIT PLANS THAT SEVERAL KEY EXECUTIVES ARE PARTICIPANTS IN: a)A 457 (F) plan that was established but not funded in 2010, service credits for 2010 and 2011 were funded in 2012 and service credits for 2012 were funded in 2013. B) A KESOP PLAN THAT WAS FROZEN TO NEW CONTRIBUTIONS SUBSEQUENT TO 2002. SCHEDULE J, PART I, LINE 4A JOHN MCGEE RECEIVED SEVERANCE PAYMENTS IN 2012. THIS AMOUNT IS INCLUDED ON SCHEDULE J, PART II, COLUMN B(III), OTHER REPORTABLE COMPENSATION. HE RECEIVED $468,853 IN SEVERANCE PAYMENTS. HE LEFT THE ORGANIZATION DURING 2011. SCHEDULE J, PART I, QUESTION 4C EQUITY-BASED COMPENSATION RECEIVED FROM THE ORGANIZATION TWO INDIVIDUALS RECEIVED KESOP DISTRIBUTIONS IN 2012. RAYMOND FREDERICKS RECEIVED $44,290 AND SCOTT GEBHARD RECEIVED $199,809. IT IS REPORTED ON SCHEDULE J, PART II, COLUMN B(III), OTHER REPORTABLE COMPENSATION. SCHEDULE J, PART I, QUESTIONS 6A AND 7. The purpose of the Incentive Plan is to provide financial incentives for the achievement of performance objectives that are most important to JFKs mission and financial, quality and operational success. The Executive Compensation Committee makes a recommendation to the Board of Trustees the overall funding as well as the performance measures and the goals in each of these areas. The performance measures, goals and weights are intended to reflect objectives for the current fiscal year in areas of financial, patient care and quality outcomes and patient satisfaction. A NJ HEALTHCARE FACILITIES FINANCING AUTHORITY 221987084 64580AAT8 2009-06-01 119623712 SEE SCHEDULE O. false false false A 0 0 119745700 0 0 0 1946274 0 0 11538889 0 10353579 2013 true false false true A false false false false 0.00000 0.00000 0.00000 false false false true A false true false true false false 0 false 0 false true A true SCHEDULE K, PART IV, QUESTION 2C 0 THE 2009 ISSUE WAS A MULTIPURPOSE ISSUE. SEE SCHEDULE O. THE REBATE AMOUNT IS NOT YET DUE FOR THE NEW MONEY AND LINE OF CREDIT REFINANCING PORTIONS. NO REBATE WAS DUE WITH RESPECT TO THE REFUNDING PORTIONS. THE COMPUTATIONS WERE DONE JULY 2013. X PROPERTY, PLANT AND EQUIPMENT 1 1459245 BOOK VALUE 0 false false false FORM 990, PART VI, SECTION A, LINE 3 The organization uses outside management services for the following departments: Pharmacy, BIOMED SERVICES, Hemodialysis, Housekeeping management (Includes housekeeping, linen & patient transport) AND MRI SERVICES. FORM 990, PART VI, SECTION A, LINE 6 The organization has JFK HEALTH SYSTEM, INC. AS ITS SOLE member. FORM 990, PART VI, SECTION A, LINE 7B CERTAIN decisions of the governing body of the organization are subject to approval by the member. FORM 990, PART VI, SECTION B, LINE 11 An Ad-hoc Committee, which includes the Chairman of the Audit & Compliance Committee and a selected designee of the Audit and Compliance Committee as well as designees from the Finance, Legal and Audit and Compliance departments, review the IRS 990 Tax Returns with EisnerAmper LLP, the tax accountant for JFK Health System, Inc. During this review, all comments and recommendations that are made are addressed by the Finance, Legal, and Audit and Compliance departments along with EisnerAmper. The final revised drafts are reviewed by the Ad-hoc Committee to ensure all comments and recommendations were addressed in the final drafts. The Audit and Compliance committee has given the Ad-hoc Committee the authority to approve the IRS 990 Tax Returns. Once the IRS 990 Tax Returns are approved by the Ad-hoc Committee, all Board members are sent an e-mail with instructions on how to access the respective IRS 990 Tax Returns for their review and comments for 4 days on a secure website provided by EisnerAmper LLP. At the end of the 4 day review period, and after any comments have been addressed, the IRS 990 Tax Returns are finalized and filed. Also, after the IRS 990 Tax Returns are filed, the returns are posted on the JFK Health System Board Portal. FORM 990, PART VI, SECTION B, LINE 12C On an annual basis, Conflict of Interest Disclosure Statements are distributed to all Board Members and employees that are department head and higher levels. All disclosures are reviewed by the Compliance Officer and the Chair of the JFK Audit and Compliance Committee. Any potential conflict of interest is brought to the said Committee for review and consideration and any appropriate action deemed necessary pursuant to the Conflict of Interest policy. FORM 990, PART VI, SECTION B, LINE 15 THE JFK BOARD OF DIRECTORS HAS DULY APPOINTED AN EXECUTIVE COMPENSATION COMMITTEE (THE "COMMITTEE") THAT IS RESPONSIBLE FOR THE REVIEW AND APPROVAL OF ALL COMPENSATION AND BENEFITS PROVIDED TO EXECUTIVE MANAGEMENT OF THE ORGANIZATION. THE COMMITTEE HAS ADOPTED A WRITTEN EXECUTIVE COMPENSATION PHILOSOPHY STATEMENT AND AN EXECUTIVE COMPENSATION COMMITTEE CHARTER. THE COMMITTEE FOLLOWS THE PROCEDURES DESCRIBED IN THE PHILOSOPHY STATEMENT AND THE CHARTER WHEN IT REVIEWS AND APPROVES THE COMPENSATION AND EMPLOYEE BENEFITS PROVIDED TO THE ORGANIZATION'S SENIOR MANAGEMENT, INCLUDING THE PRESIDENT AND CHIEF EXECUTIVE OFFICER AND THE CHIEF FINANCIAL OFFICER. THE COMMITTEE'S REVIEW ANALYZES EVERY ELEMENT OF COMPENSATION, INCLUDING CURRENT AND DEFERRED COMPENSATION, AND BENEFITS, INCLUDING QUALIFIED AND NON-QUALIFIED BENEFITS. THE COMMITTEE CONDUCTS ITS REVIEW AND APPROVAL PROCESS AT LEAST ANNUALLY, AND APPROVES COMPENSATION AND BENEFITS ONLY TO THE EXTENT THAT THE COMMITTEE HAS CONCLUDED THAT THE TOTAL COMPENSATION AND BENEFITS CONSTITUTE NO MORE THAN REASONABLE COMPENSATION. THE COMMITTEE CONSISTS ENTIRELY OF INDEPENDENT MEMBERS OF THE JFK HEALTH SYSTEM BOARD, THE COMMITTEE REVIEWS IN ADVANCE INDEPENDENT DATA SHOWING THE COMPENSATION PROVIDED BY NON-PROFIT ORGANIZATIONS FOR FUNCTIONALLY SIMILAR POSITIONS, AND THE COMMITTEE PREPARES A TIMELY AND THOROUGH WRITTEN RECORD OF ITS DELIBERATIONS AND CONCLUSIONS. ASSISTING THE COMMITTEE IS AN OUTSIDE COMPENSATION CONSULTANT ALONG WITH OUTSIDE LEGAL COUNSEL. AS A RESULT, THE COMMITTEE'S REVIEW PROCESS IS DESIGNED TO SATISFY THE PROCEDURAL CRITERIA NECESSARY TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE FEDERAL INCOME TAX LAW INTERMEDIATE SANCTIONS RULES. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S CONSOLIDATED FINANCIAL STATEMENTS ARE POSTED ON THE JFK HEALTH SYSTEM WEBSITE; ANY OTHER PUBLIC INFORMATION IS AVAILABLE UPON REQUEST. FORM 990, PART XI, LINE 9, CHANGES IN NET ASSETS PENSION/POST RETIREMENT LIABILITY ADJUSTMENT 1,023,587 TRANSFERS TO AFFILIATES -3,207,622 CHANGE IN BENEFICIAL INTEREST IN NET ASSETS OF JFK FOUNDATION -402,659 PROVISION FOR DOUBTFUL COLLECTIONS 3,018,788 TOTAL TO FORM 990, PART XI, LINE 9 432,094 FORM 990, PART XII, QUESTION 2C THE PROCESS HAS NOT CHANGED SINCE LAST YEAR. JFK HEALTH SYSTEM HAS A COMMITTEE THAT ASSUMES RESPONSIBILTY FOR OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND SELECTION OF AN INDEPENDENT ACCOUNTANT. JFK MEDICAL CENTER BACKGROUND JFK MEDICAL CENTER ("JFK") IS A GENERAL MEDICAL AND SURGICAL HOSPITAL. JFK IS RECOGNIZED BY THE IRS AS AN INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION PURSUANT TO ITS CHARITABLE PURPOSES, JFK PROVIDES MEDICALLY NECESSARY HEALTH CARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY, MOREOVER, JFK OPERATES CONSISTENTLY WITH THE FOLLOWING CRITERIA OUTLINED IN IRS REVENUE RULING 69-545. 1) JFK PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF ABILITY TO PAY, INCLUDING CHARITY CARE, SELF-PAY, MEDICARE AND MEDICAID PATIENTS. 2) JFK OPERATES AN ACTIVE EMERGENCY ROOM FOR ALL PERSONS, WHICH IS OPEN 24 HOURS A DAY, 7 DAYS A WEEK, 365 DAYS PER YEAR. 3) JFK MAINTAINS AN OPEN MEDICAL STAFF WITH PRIVILEGES AVAILABLE TO ALL QUALIFIED PHYSICIANS. 4) CONTROL OF JFK RESTS WITH ITS BOARD OF TRUSTEES, WHICH IS COMPRISED OF INDEPENDENT CIVIC LEADERS AND OTHER PROMINENT MEMBERS OF THE COMMUNITY. 5) SURPLUS FUNDS ARE USED TO IMPROVE THE QUALITY OF PATIENT CARE, EXPAND AND RENOVATE FACILITIES AND ADVANCE MEDICAL CARE PROGRAMS AND ACTIVITIES. THE OPERATIONS OF JFK AS SHOWN THROUGH THE FACTORS OUTLINED ABOVE AND OTHER INFORMATION CONTAINED HEREIN, CLEARLY DEMONSTRATE THAT THE USE AND CONTROL OF JFK FOR THE BENEFIT OF THE PUBLIC AND THAT NO PART OF THE INCOME OR NET EARNINGS OF THE ORGANIZATION INURES TO THE BENEFIT OF ANY PRIVATE INDIVIDUAL NOR IS ANY PRIVATE INTEREST BEING SERVED OTHER THAN INCIDENTALLY. JFK MEDICAL CENTER HISTORY JFK BEGAN IN THE 1960'S IN RESPONSE TO THE INCREASING DEMAND FOR HEALTH CARE SERVICES CREATED BY RAPID POPULATION GROWTH IN EDISON TOWNSHIP AND ITS SURROUNDING COMMUNITIES. THE LATE EDISON MAYOR ANTHONY M. YELENCSICS, FOR WHOM THE ORIGINAL COMMUNITY HOSPITAL WAS NAMED, LED A GRASSROOTS EFFORT TO OPEN A HOSPITAL TO MEET THIS DEMAND. FOLLOWING A FUNDRAISING CAMPAIGN PIONEERED BY TRUSTEES, PHYSICIANS, AUXILIANS AND COMMUNITY RESIDENTS, THE ORIGINAL 205-BED HOSPITAL OPENED ITS DOORS AND ADMITTED ITS FIRST PATIENT IN 1967. THE 1970'S REPRESENTED A PERIOD OF SIGNIFICANT GROWTH FOR JFK. ONE OF THE MOST IMPORTANT HIGHLIGHTS IN ITS HISTORY WAS THE OPENING OF THE JFK JOHNSON REHABILITATION INSTITUTE ("JRI") IN 1974 FOLLOWING A MERGER WITH MIDDLESEX REHABILITATION HOSPITAL. SINCE THAT TIME, JRI HAS FORGED A REPUTATION FOR EXCELLENCE IN PATIENT CARE AND HAS BECOME A NATIONAL LEADER IN PHYSICAL REHABILITATION MEDICINE. JRI WAS ONE OF THE FIRST REHABILITATION CENTERS IN THE NATION TO RECOGNIZE THAT INDIVIDUALS WITH ACQUIRED TRAUMATIC BRAIN INJURY REQUIRE A SPECIALIZED TREATMENT ENVIRONMENT. WITH ITS UNPRECEDENTED, COMPREHENSIVE APPROACH TO CARE, JRI'S CENTER FOR HEAD INJURIES IS REGARDED AS PIONEERING IN HEAD TRAUMA EVALUATION AND TREATMENT. IN ADDITION, JRI'S PEDIATRIC REHABILITATION DEPARTMENT PROVIDES CHILDREN WITH THE ADAPTIVE AND COPING SKILLS THEY NEED TO ACHIEVE SUCCESS IN EVERYDAY LIFE THROUGH PHYSICAL AND OCCUPATIONAL THERAPY. JRI ALSO OFFERS INPATIENT AND DAY REHABILITATION, OUTPATIENT THERAPIES, AND PROSTHETICS AND ORTHOTICS. JFK ALSO OPENED ITS RADIATION THERAPY CENTER AND ITS FAMILY PRACTICE CENTER DURING THIS DECADE. JFK REACHED A SIGNIFICANT MILESTONE IN 1992 WHEN IT OPENED THE NEW JERSEY NEUROSCIENCE INSTITUTE ("INSTITUTE"), WHICH IS A NATIONALLY RECOGNIZED COMPREHENSIVE CENTER FOR THE DIAGNOSIS, TREATMENT, AND STUDY OF NEUROLOGICAL DISEASE. THE INSTITUTE CONTINUES TO ATTRACT TOP NEUROSCIENCE EXPERTS FROM ACROSS THE UNITED STATES. IT ALSO WORKS TO PROMOTE INVESTIGATIVE EFFORTS IN BASIC AND CLINICAL RESEARCH. OTHER SIGNIFICANT ADDITIONS THAT OCCURRED OVER THE PAST THREE DECADES INCLUDED JFK'S CANCER CENTER, WHICH FEATURES STATE-OF-THE-ART CANCER DIAGNOSIS AND TREATMENT CAPABILITIES, HOSPICE CARE AND PARTICIPATION IN NATIONWIDE CANCER RESEARCH NETWORKS; JFK'S OUTPATIENT MEDIPLEX SURGERY CENTER WHICH PROVIDES SAME-DAY PROCEDURES, INCLUDING LASER, ENDOSCOPIC AND ARTHROSCOPIC SURGERY, JFK'S IMAGING CENTER AND BREAST CENTER. BOTH OFFER A FULL RANGE OF DIAGNOSTIC EXAMINATIONS, INCLUDING CAT SCAN AND MRI SERVICES. JFK MEDICAL CENTER CURRENT INFORMATION JFK MEDICAL CENTER ("JFK") IS a 493-BED HOSPITAL CONSISTING OF THE 399-acute care BED ANTHONY M. YELENCSICS COMMUNITY HOSPITAL AND THE ADJACENT 94-BED JFK JOHNSON REHABILITATION INSTITUTE. JFK FEATURES A COMPLETE ARRAY OF SERVICES, INCLUDING GENERAL SURGERY, EMERGENCY MEDICINE, BEHAVIORAL HEALTH, ORTHOPEDICS, MATERNITY AND PEDIATRIC CARE PROGRAMS. SPECIAL SERVICES AT THE MEDICAL CENTER INCLUDE THE NEW JERSEY NEUROSCIENCE INSTITUTE, A DIAGNOSTIC, TREATMENT, TEACHING AND RESEARCH CENTER FOR THE STUDY OF COMPLEX NEUROLOGICAL DISORDERS; THE REGIONAL CANCER CENTER, OFFERING COMPREHENSIVE MEDICAL, SURGICAL AND RADIATION ONCOLOGY SERVICES; THE JFK DIAGNOSTIC IMAGING CENTER WHICH HOUSES TRADITIONAL AND OPEN AIR MRI CAPABILITIES, HIGH SPEED COMPUTER TOMOGRAPHY (CT), ADVANCED BONE DENSITY TECHNOLOGY, AND THE BREAST CENTER, PROVIDING COMPLETE MAMMOGRAPHY SERVICES INCLUDING FULL-FIELD DIGITAL AND THE R2 IMAGE CHECKER TECHNOLOGY. OTHER SERVICES INCLUDE THE JFK FITNESS CENTER, OCCUPATIONAL HEALTH PROGRAM AND FAMILY MEDICINE CENTER. THE FAMILY MEDICINE CENTER WAS ESTABLISHED IN 1976 AND HAS SERVED THE SURROUNDING COMMUNITIES TO PROVIDE PRIMARY CARE SERVICES TO INSURED AND UNINSURED PATIENTS IN THE SERVICE AREA. STAFFED BY FACULTY AND RESIDENT PHYSICIANS, IT PROVIDES SERVICES WHICH INCLUDE: GENERAL MEDICINE, OB/GYN CARE, PEDIATRIC AND MINOR SURGERY. IN ADDITION, HEALTH EDUCATION/PROMOTION, NUTRITIONAL COUNSELING AND EMOTIONAL SUPPORT PROGRAMS ARE OFFERED. ANNUALLY JFK RECORDS OVER 18,000 ADMISSIONS, OVER 2,600 BIRTHS, AND MORE THAN 70,000 EMERGENCY ROOM VISITS. JFK IS AN AFFILIATE OF JFK HEALTH SYSTEM, A NOT-FOR-PROFIT HEALTH SYSTEM SERVING THE RESIDENTS OF CENTRAL NEW JERSEY WITH STRONG TIES TO THE LOCAL COMMUNITY, ESTABLISHED REGIONAL REPUTATION, EXCEPTIONAL EMPLOYEES, A COMMITMENT TO PATIENT SATISFACTION AND QUALITY MEDICAL STAFF TO PROVIDE HIGH QUALITY, COST-EFFECTIVE CARE. SPECIAL SUPPORT SERVICES ARE ALSO AVAILABLE SUCH AS DIAGNOSTIC IMAGING, GERIATRIC CARE AND COMMUNITY HEALTH AND FITNESS PROGRAMS. THROUGH COMMUNITY OUTREACH, JFK OFFERS HEALTH AND WELLNESS PROGRAMS, SCREENINGS, LECTURES AND EDUCATIONAL SEMINARS TO MORE THAN 22,000 AREA RESIDENTS ANNUALLY. THE HAROLD B. AND DOROTHY A. SNYDER SCHOOLS OF NURSING, RADIOGRAPHY, NUCLEAR MEDICINE TECHNOLOGY, RADIATION THERAPY AND DIAGNOSTIC MEDICAL SONOGRAPHY ARE OPERATED BY AND FOR PURPOSES OF ACADEMIC ACCREDITATION, SPONSORED BY JFK. THE SCHOOLS CARRY ON A LONG TRADITION OF EDUCATING FUTURE HEALTH CARE PROFESSIONALS WITH MORE THAN 500 STUDENTS ENROLLED IN THE FIVE SCHOOLS ANNUALLY. THE SCHOOL OFFERS STUDENTS ACCESS TO JFK HEALTH SYSTEM'S STATE-OF-THE-ART EQUIPMENT AND EXPANSIVE CLINICAL FACILITIES. JFK MEDICAL CENTER VISION WE WILL BE RECOGNIZED FOR BEING RESPONSIVE AND SENSITIVE TO COMMUNITY NEEDS, EXTENDING BEYOND OUT TRADITIONAL BOUNDARIES, IN ORDER TO ACHIEVE HIGHER LEVELS OF COMMUNITY HEALTH AND ACCESS. WE WILL BE RECOGNIZED FOR A CULTURE DRIVEN BY TRUST, IN WHICH DEDICATED, CARING AND COMPASSIONATE INDIVIDUALS WORK TOGETHER WITH FAMILIES TO OVERCOME HEALTH CARE CHALLENGES. WE WILL BE RECOGNIZED FOR HIGH QUALITY SERVICES AND OUTSTANDING SAFETY PERFORMANCE BASED UPON NATIONAL STANDARDS. WE WILL BE RECOGNIZED AS AN EMPLOYER THAT EMPHASIZES PROFESSIONAL AND PERSONAL DEVELOPMENT IN ORDER TO MAXIMIZE THE POTENTIAL OF EVERY INDIVIDUAL. WE WILL BE RECOGNIZED FOR CLINICAL SUPERIORITY THROUGH THE EXPERTISE OF OUR MEDICAL STAFF AND THE CONTINUED APPLICATION OF CUTTING-EDGE TECHNOLOGIES. JFK MEDICAL CENTER DEMOGRAPHICS JFK MEDICAL CENTER IS LOCATED IN EDISON - AN URBAN/SUBURBAN AREA OF MIDDLESEX COUNTY. ONE OF THE FASTEST GROWING COUNTIES IN THE STATE, MIDDLESEX COUNTY IS THE THIRD LARGEST COUNTY IN NEW JERSEY WITH MORE THAN 814,000 RESIDENTS. FORM 990, PART 1, QUESTION 1 DESCRIBE THE ORGANIZATION'S MISSION OR MOST SIGNIFICANT ACTIVITIES. WE ARE COMMITTED TO EXCELLENCE IN PROVIDING QUALITY AND COMPASSIONATE HEALTHCARE SERVICES TO OUR DIVERSE COMMUNITIES. EXTENSION DESCRIPTION ON WHY THE RETURN WAS NOT TIMELY FILED AWAITING INFORMATION FROM THIRD PARTIES NECESSARY TO FILE A COMPLETE AND ACCURATE RETURN. FORM 990, PART VII METHOD EMPLOYED IN THE DETERMINATION OF ESTIMATED HOURS PER WEEK. DURING THE ANNUAL BUDGET PROCESS, THE FINANCE DEPARTMENT PERFORMS AN ANALYSIS OF THE EXECUTIVE LEVEL EMPLOYEES TIME ALLOCATION FROM TIME KEEPING RECORDS. THE APPROPRIATE ADJUSTMENTS ARE MADE TO THE TIME ALLOCATIONS AT THAT TIME. The officers and key employees of JFK Health System hours per week are allocated among many of the related organizations. SCHEDULE R, PART V, LINE 1O JFK HEALTH system maintains a master employee leasing agreement that provides for the leasing of personnel to and from various JFK HEALTH SYSTEM entities. SCHEDULE K, PART I New money -- $21,892,468.25 for various capital improvements to JFK Medical Center, including, but not limited to, expansion of inpatient bed capacity and unit renovations, emergency room expansion, operating room renovations and expansion, relocation of support departments, conversion of HVAC system and other necessary expansions, renovations and improvements, and the refinancing of various series of bonds issued on behalf of, and other indebtedness of, JFK Medical Center, Hartwyck at Oak Tree and Muhlenberg Regional Medical Center, as described below, all in connection with the termination of the provision of hospital acute care services at Muhlenberg Regional Medical Center and pursuant to the State's Hospital Asset Transformation Program. Current Refundings: 1995 Bonds $17,670,697 1998 Bonds $36,114,765 2003 Bonds $33,137,809 2005 Bonds $17,935,000 Line of credit $6,571,000 Capitalized Interest -- 1,761,145 Costs of issuance- -- 1,946,274 FORM 990, PART VI, SECTION A, LINE 7A While the member cannot elect or appoint one or more members of the governing body, all board appointments are subject to approval by the member. THE DIRECTORS, OTHER THAN EX-OFFICIO DIRECTORS, ARE ELECTED BY A VOTE OF THE BOARD AT THE ANNUAL MEETING OF THE CORPORATION. THE DIRECTOR MEMBERSHIP COMMITTEE SHALL NOMINATE A SLATE OF DIRECTORS TO SERVE AS OFFICERS TO REPLACE OR REELECT THOSE OFFICERS WHOSE TERMS ARE ENDING. FORM 990, PART VII DEFINITION OF EX-OFFICIO People who hold a position by virtue of their office FORM 990, PART VI, QUESTION 16A DURING 2011, JFK ENTERED INTO A JOINT VENTURE TO PROVIDE MANAGEMENT SERVICES WITH EDISON IMAGING ASSOCIATES, P.A. TO CREATE EDISON IMAGING AT JFK MEDICAL CENTER, LLC. FORM 990, PART VII, SECTION A WILLIAM J. LOVETT RESIGNED FROM THE BOARD DURING 2012. JFK HEALTH SYSTEM INC 98 JAMES STREET EDISON NJ 08820 222421432 HEALTHCARE NJ 501(C)(3) 11a N/A false MUHLENBERG REGIONAL MEDICAL CENTER INC 98 JAMES STREET EDISON NJ 08820 221487258 HEALTHCARE NJ 501(C)(3) 9 JFKHS false MUHLENBERG FOUNDATION INC 98 JAMES STREET EDISON NJ 08820 510212678 FUNDRAISING NJ 501(C)(3) 11a MRMC false JFK MEDICAL CENTER FOUNDATION INC 98 JAMES STREET EDISON NJ 08820 222315044 FUNDRAISING NJ 501(C)(3) 11a JFKHS false JFK HEALTH SYSTEM REALTY CORPORATION 98 JAMES STREET EDISON NJ 08820 521703518 INACTIVE NJ 501(C)(25) JFKHS false ROBERT WOOD JOHNSON JR INC LIFESTYLE 98 JAMES STREET EDISON NJ 08820 222421433 HEALTHCARE NJ 501(C)(3) 9 JFKHS false HARTWYCK WEST NURSING HOME INC 98 JAMES STREET EDISON NJ 08820 221802017 HEALTHCARE NJ 501(C)(3) 9 JFKHS false JFK ASSISTED LIVING INC 98 JAMES STREET EDISON NJ 08820 223715324 HEALTHCARE NJ 501(C)(3) 9 HARTWYCK WES false HARTWYCK AT OAK TREE INC 98 JAMES STREET EDISON NJ 08820 222666023 HEALTHCARE NJ 501(C)(3) 9 JFKHS false HARTWYCK AT JFK INC 98 JAMES STREET EDISON NJ 08820 204144804 HEALTHCARE NJ 501(C)(3) 11b JFKHS false MSO - SEE PART VII 98 JAMES STREET EDISON NJ 08820 INACTIVE NJ JFKHS RELATED false false MEDIPLEX - SEE PART VII 98 JAMES STREET EDISON NJ 08820 RENTALS NJ JFK HEALTHSHARE EXCLUDED false false TRI-COUNTY - SEE PART VII 98 JAMES STREET EDISON NJ 08820 HEALTHCARE NJ JFKHS RELATED false false ATLANTIC INSURANCE EXCHANGE LTD 98 JAMES STREET EDISON NJ 08820 999999999 INSURANCE CAPtive BD JFKHS C CORP false CENTRAL JERSEY MEDICAL GROUP PA 98 JAMES STREET EDISON NJ 08820 223477610 INACTIVE NJ MRMC C CORP false JFK MEDICAL GROUP PC 98 JAMES STREET EDISON NJ 08820 223482637 MEDICAL SERVICES NJ JFKMC C CORP 22663 1.00000 true JFK HARTWYCK MGT & CONSULTING INC 98 JAMES STREET EDISON NJ 08820 223812130 INACTIVE NJ HARTWYCK WEST C CORP false JFK HEALTHSHARE INC 98 JAMES STREET EDISON NJ 08820 222528967 MANAGEMENT SVCS. NJ JFKHS C CORP false MIDTOWN SHOPS INC 98 JAMES STREET EDISON NJ 08820 221536954 RETAIL COMPLEX NJ MRMC C CORP false PRIMARY CARE NETWORK 98 JAMES STREET EDISON NJ 08820 522069919 HEALTH ORG. NJ JFKMC C CORP 118 213364 1.00000 true true false true false false false false false false false true false false false true true true false false HARTWYCK AT OAK TREE INC A 1045990 SEE PART VII MEDIPLEX SURGICAL CENTER ASSOCIATION LP K 243747 SEE PART VII JOHN F KENNEDY MEDICAL CENTER FOUNDATION INC C 1630946 SEE PART VII MEDIPLEX SURGICAL CENTER ASSOCIATION LP P 226777 SEE PART VII MUHLENBERG REGIONAL MEDICAL CENTER INC K 748000 SEE PART VII JFK HEALTH SYSTEM INC P 857939 SEE PART VII JFK HEALTHSHARE INC P 150000 SEE PART VII HARTWYCK AT OAK TREE INC Q 5065784 SEE PART VII HARTWYCK WEST NURSING HOME INC Q 825000 SEE PART VII JFK HEALTH SYSTEM INC Q 2947932 SEE PART VII ROBERT WOOD JOHNSON JR LIFESTYLE INSTITUTE Q 325000 SEE PART VII JOHN F KENNEDY MEDICAL CENTER FOUNDATION INC Q 230024 SEE PART VII MUHLENBERG REGIONAL MEDICAL CENTER FOUNDATION Q 211062 SEE PART VII JFK ASSISTED LIVING INC Q 825000 SEE PART VII MUHLENBERG REGIONAL MEDICAL CENTER INC A 933006 SEE PART VII ROBERT WOOD JOHNSON JR LIFESTYLE INSTITUTE C 298000 SEE PART VII MEDIPLEX SURGICAL CENTER ASSOCIATION LP C 1459245 SEE PART VII MUHLENBERG REGIONAL MEDICAL CENTER INC Q 66994 SEE PART VII MUHLENBERG FOUNDATION INC C 70386 SEE PART VII HARTWYCK AT OAK TREE INC K 372000 SEE PART VII JFK HEALTHSHARE INC K 437438 SEE PART VII SCHEDULE R, PART IV DR. WILLIAM OSER IS THE LEGAL OWNER OF JFK MEDICAL GROUP. JFK MEDICAL CENTER IS THE BENEFICIAL OWNER. SCHEDULE R, PART III LINE 1 INFORMATION: MANAGEMENT SERVICES ORGANIZATION OF CENTRAL JERSEY, LLC 98 JAMES STREET EDISON, NJ 08820 EIN: 22-3489091 LINE 2 INFORMATION: MEDIPLEX SURGICAL CENTER ASSOCIATION, LP 98 JAMES STREET EDISON, NJ 08820 EIN: 22-2846980 LINE 3 INFORMATION: TRI-COUNTY HEART NJ, LLC 98 JAMES STREET EDISON, NJ 08820 EIN: 26-1104379 SCHEDULE R, PART V, LINE 2 ALL TRANSACTIONS WITH RELATED ORGANIZATIONS ARE VALUED AT ACTUAL AMOUNTS.