2013-11-15T08:28:25-06:00 2012-12-31 WithumSmithBrown PC 465 South St Ste 200 Morristown NJ 079606497 990 2012-01-01 223452306 COMMUNITY MEDICAL CENTER % THOMAS G SCOTT CPA COMM 9733224032 99 HIGHWAY 37 WEST Suite TOMS RIVER NJ 087556423 THOMAS R PERCELLO 9738989494 2013-11-13 true Scott Mariani 9738989494 2012 2016-03-07 17:11:31Z BARRY H OSTROWSKY 95 OLD SHORT HILLS ROAD WEST ORANGE NJ 07052 374201714 false X WWW.BARNABASHEALTH.ORG X 1996 NJ THE ORGANIZATION IS A NOT-FOR-PROFIT ACUTE CARE HOSPITAL SERVING THE OCEAN COUNTY REGION AND IS COMMITTED TO ENHANCING THE OVERALL HEALTH STATUS OF THE COMMUNITY BY PROVIDING THE HIGHEST QUALITY HEALTHCARE. 23 17 3313 835 1164425 206844 352980 359681327 370167756 1916014 2532591 726370 1148387 362530555 374201714 0 0 0 0 177237728 187930556 0 0 0 173734370 175566075 350972098 363496631 11558457 10705083 393601596 402260075 166508514 158545615 227093082 243714460 X THE ORGANIZATION, A NOT-FOR-PROFIT ACUTE CARE HOSPITAL SERVING THE OCEAN COUNTY REGION AND IS COMMITTED TO ENHANCING THE OVERALL HEALTH STATUS OF THE COMMUNITY BY PROVIDING THE HIGHEST QUALITY HEALTHCARE AND RELATED SERVICES INCLUDING CONTINUING MEDICAL EDUCATION FOR OUR MEDICAL STAFF. IN COLLABORATION WITH OUR MEDICAL STAFF AND IN PARTNERSHIP WITH BARNABAS HEALTH, WE STRIVE TO EXCEED PATIENTS' EXPECTATIONS IN A PROGRESSIVE ORGANIZATIONAL ENVIRONMENT WHICH EMPHASIZES COMMITMENT, COMPETENCE, COLLABORATION, COMMUNICATION AND COMPASSION. THE ORGANIZATION PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT. false true 175047227 0 152407153 EXPENSES INCURRED IN PROVIDING MEDICALLY NECESSARY MEDICAL SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT. 17095083 0 15193227 EXPENSES INCURRED IN PROVIDING MEDICALLY NECESSARY SURGICAL SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT. 16459974 0 13629165 EXPENSES INCURRED IN PROVIDING MEDICALLY NECESSARY ORTHOPEDIC SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT. 118544683 0 188938211 327146967 true true false true false false false false false false true false true false true false false true false false false false false false false false true true false false true false false false false false false true false false false false false false true false false false true 1209 0 true 3313 true true true false false false false false false false false false false X 23 17 false false false false true true true true true false false true true true true true true true true false NJ X THOMAS G SCOTT CPA 7329238072 2 CRESCENT PLACE OCEANPORT NJ 07757 X ROSANNE L CITTA 1.0 X X 0 0 0 JOSEPH D CORONATO ESQ 1.0 X X 0 0 0 DAVID ROSEN 1.0 X X 0 0 0 THOMAS HOURIGAN 1.0 X X 0 0 0 CAROLYN ADAMS 1.0 X 0 0 0 STEPHANIE L BLOOM 55.0 X X 564886 0 125486 JERRY P BOISSEAU 1.0 X 0 0 0 SANDY S BROUGHTON 1.0 X 0 0 0 JAMES D CALDWELL SR 1.0 X 0 0 0 SRIPAD DHAWLIKAR MD 10.0 X 41570 0 0 HONORABLE MICHAEL FRESSOLA 1.0 X 0 0 0 THEODORE GOODING 1.0 X 0 0 0 JOSEPH GUARINO MD 1.0 X 500 0 0 RUSSELL HARRELL MD 1.0 X 0 0 0 MAURICE B HILL JR DMD 1.0 X 0 0 0 DONALD JUMP CPA 1.0 X 0 0 0 AWANI KUMAR MD 1.0 X 6250 0 0 GARY V LOTANO 1.0 X 0 0 0 CAROLE A MACK 1.0 X 0 0 0 JAYESH PARIKH MD 3.0 X 1859 0 0 JUDITH SCHMIDT 50.0 X 96079 0 9201 BANKIM SHAH MD 1.0 X 0 0 0 DANIEL J VITALE CPA 1.0 X 0 0 0 MARK A OSTRANDER 55.0 X 266074 0 124984 FRANK GELORMINI 55.0 X 365108 0 204628 FERN PAPALIA TERM 123012 50.0 X 239364 0 16690 MARY ELIZABETH DENO 50.0 X 229253 0 12249 NEIL J BRYANT 50.0 X 191366 0 21079 RICHARD J PALLAMARY 50.0 X 169209 0 19832 KAREN KAVANAGH TERM 1312 50.0 X 35547 0 18 PATRICIA A COOK 50.0 X 0 172176 21711 JOHN W CRISANTI MD 50.0 X 312931 0 31878 MICHAEL E SMITHTERM 122712 50.0 X 314284 0 14330 RICHARD C HARTWELL MD 50.0 X 288121 0 7500 YESHAVANTH P NAYAK 50.0 X 213937 0 27755 RICHARD EVERETT TENPENNY JR 50.0 X 204842 0 26917 MINOO BENGALI 50.0 X 202285 0 7505 THOMAS R PERCELLO 55.0 X 0 711130 101025 SEAN R CIELECKI 55.0 X 0 197454 28090 3743465 1080760 800878 156 true true false SBC MANAGEMENT CORPORATION 95 OLD SHORT HILLS ROAD WEST ORANGE NJ 07052 MANAGEMENT 34925602 LIVINGSTON SERVICES CORPORATION 1 CRAGWOOD ROAD SUITE 3D SOUTH PLAINFIELD NJ 07080 IT 2175549 REA MANAGEMENT LLC 100 BAYVIEW CIRCLE 400 NEWPORT BEACH CA 92660 COLLECTION 2155124 EXECUTIVE HEALTH RESOURCES INC PO BOX 65 EDGEMONT PA 19028 MED. RECORD REVIEWS 2037802 ALLSCRIPTS HEALTHCARE LLC 222 MERCHANDISE MART PLAZA SUITE 2 CHICAGO IL 60654 IT 1786333 62 X 313468 39512 352980 NET PATIENT SERVICE REVENUE 541900 367972633 367972633 OTHER HEALTHCARE RELATED REVENUE 541900 2195123 1030698 1164425 370167756 2517591 2517591 0 0 442354 442354 0 442354 442354 15000 15000 15000 15000 0 0 0 CAFETERIA 900099 279926 279926 PARKING 900099 426107 426107 706033 374201714 369003331 1164425 3680978 0 0 0 0 3086041 2777437 308604 0 0 141921954 127729758 14192196 10091743 9082569 1009174 21174427 19056985 2117442 11656391 10490752 1165639 27137458 24423712 2713746 757582 681824 75758 158156 142340 15816 31287 28158 3129 0 0 1529037 1376133 152904 2681861 2413675 268186 9257936 8332142 925794 3168982 2852084 316898 0 2509946 2258951 250995 502616 452354 50262 0 0 2992149 2692934 299215 0 13129939 11816945 1312994 3489308 3140377 348931 MEDICAL SUPPLIES 62111000 55899900 6211100 0 PURCHASED SERVICES 18499340 16649406 1849934 0 PHYSICIAN FEES AND SALARIES 13467478 12120730 1346748 0 UTILITIES 5444911 4900420 544491 0 8697089 7827381 869708 363496631 327146967 36349664 0 X 10765 11297 0 0 441545 179835 34258132 38531351 0 0 0 0 94598589 85655600 6814211 6340858 4378317 3946147 422382714 264122311 154555710 158260403 0 0 0 0 96551793 108605925 0 0 1992534 728659 393601596 402260075 42046184 31024264 0 0 0 0 0 0 0 0 0 0 3918219 3363442 0 0 120544111 124157909 166508514 158545615 X 227093082 243714460 0 0 0 0 227093082 243714460 393601596 402260075 X 10705083 6961755 -1045460 X X false true X true true true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false false false false false false true 31287 31287 false LOBBYING ACTIVITY EXPLANATION SCHEDULE C, PART II-B; QUESTION 1I BARNABAS HEALTH, INC., THE PARENT ENTITY OF BARNABAS HEALTH, WHICH INCLUDES COMMUNITY MEDICAL CENTER, ENGAGES IN LOBBYING EFFORTS ON A FEDERAL AND STATE LEVEL ON BEHALF OF ALL AFFILIATES WITHIN THE SYSTEM. TWO RELATED ORGANIZATIONS PAID OUTSIDE LOBBYING FIRMS A TOTAL OF $132,093 FOR LOBBYING ON A FEDERAL AND STATE LEVEL RELATED TO MEDICARE, MEDICAID AND OTHER HEALTHCARE LEGISLATIVE MATTERS ON BEHALF OF THIS ORGANIZATION. PLEASE NOTE THAT THE AMOUNTS PAID BY THESE AFFILIATES ARE NOT INCLUDED ON THIS FORM 990, SCHEDULE C; PART II-B, AS LOBBYING EXPENDITURES. IN ADDITION, THE ORGANIZATION IS A MEMBER OF THE NEW JERSEY HOSPITAL ASSOCIATION AND THE AMERICAN HOSPITAL ASSOCIATION WHICH BOTH ENGAGE IN LOBBYING EFFORTS ON BEHALF OF THEIR MEMBER HOSPITALS. A PORTION OF THE DUES PAID TO THESE ORGANIZATIONS HAS BEEN ALLOCATED TO LOBBYING ACTIVITES PERFORMED ON BEHALF OF THE ORGANIZATION. THIS ALLOCATION AMOUNTED TO $31,287 in 2012. 198713 198713 194852400 79384977 115467423 5698373 5372903 325470 217099051 176562812 40536239 4534177 2801619 1732558 158260403 INVESTMENT IN MONOC 893157 F INVESTMENTS - SEI 95732495 F ASSETS 696972 F TAX-EXEMPT ORGANIZATION 9583000 F OTHER INVESTMENTS 1700301 F 108605925 0 PARTY PAYORS; CURRENT 10471 PARTY PAYORS; NON-CURRENT 2425474 ACCRUED PENSION LIABILITY 50939622 OTHER LONG TERM LIABILITIES 2393972 DUE TO AFFILIATES; CURRENT 32632557 DUE TO AFFILIATES; NON-CURRENT 25787770 OTHER CURRENT LIABILITIES 6566037 (LEASING PROGRAM) 3402006 124157909 X TEXT OF FIN 48 AUDITED FINANCIAL STATEMENT FOOTNOTE SCHEDULE D, PART X THE ORGANIZATION IS AN AFFILIATE of BARNABAS HEALTH ("SYSTEM"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. THE SYSTEM ISSUES CONSOLIDATED AUDITED FINANCIAL STATEMENTS WHICH INCLUDE ALL RELATED ENTITIES; INCLUDING THIS ORGANIZATION. THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS ALSO CONTAIN CONSOLIDATING SCHEDULES ON AN ENTITY BY ENTITY BASIS. THE FIN 48 FOOTNOTE BELOW IS FROM THE SYSTEM'S 2007 CONSOLIDATED AUDITED FINANCIAL STATEMENTS. IN JULY 2006, FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) INTERPRETATION NO. 48 (FIN 48), ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES, AN INTERPRETATION OF FASB STATEMENT NO. 109, ACCOUNTING FOR INCOME TAXES, WAS ISSUED. FIN 48 CREATES A SINGLE MODEL TO ADDRESS UNCERTAINTY IN TAX POSITIONS AND CLARIFIES THE ACCOUNTING FOR INCOME TAXES BY PRESCRIBING THE MINIMUM RECOGNITION THRESHOLD A TAX POSITION IS REQUIRED TO MEET BEFORE BEING RECOGNIZED IN THE FINANCIAL STATEMENTS. UNDER THE REQUIREMENTS OF FIN 48, TAX-EXEMPT ORGANIZATIONS COULD BE REQUIRED TO RECORD AN OBLIGATION AS THE RESULT OF A TAX POSITION THEY HAVE HISTORICALLY TAKEN ON VARIOUS TAX EXPOSURE ITEMS. PRIOR TO FIN 48, THE DETERMINATION OF WHEN TO RECORD A LIABILITY FOR A TAX EXPOSURE WAS BASED ON WHETHER A LIABILITY WAS CONSIDERED PROBABLE AND REASONABLY ESTIMABLE IN ACCORDANCE WITH FASB STATEMENT NO. 5, ACCOUNTING FOR CONTINGENCIES. ON JANUARY 1, 2007, THE CORPORATION ADOPTED FIN 48. THE IMPACT OF THE ADOPTION OF FIN 48 ON THE CORPORATION'S CONSOLIDATED FINANCIAL STATEMENTS IS NOT SIGNIFICANT. true true X true X true X true true true false true true 20040 21171135 3715185 17455950 0.04800 22233 22686234 20838761 1847473 0.00510 2196527 2196527 0.00600 42273 46053896 24553946 21499950 0.05910 18183 364968 364968 0.00100 103599 103599 0.00030 142 1016204 736669 279535 0.00080 520175 520175 0.00140 1032451 1032451 0.00280 18325 3037397 736669 2300728 0.00630 60598 49091293 25290615 23800678 0.06540 false 15640732 844585 154992046 157122871 -2130825 X true true 1 1 COMMUNITY MEDICAL CENTER

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1433 HOOPER AVENUE SUITE 230 TOMS RIVER NJ 08753

HOSPICE/HOMECARE ELIGIBILITY FOR DISCOUNTED CARE PART I, LINE 3C THE INCOME BASED CRITERIA USED TO DETERMINE ELIGIBILITY IS PER NEW JERSEY ADMINISTRATIVE CODE 10:52 SUB CHAPTERS 11, 12 AND 13, AND BASED UPON THE 2012 POVERTY GUIDELINES (DEPARTMENT OF HEALTH AND SENIOR SERVICES). FPG ARE INCLUDED IN THE CRITERIA FOR DETERMINING ELIGIBILITY FOR CHARITY AND DISCOUNTED CARE. COMMUNITY BENEFIT REPORT SCHEDULE H, PART I; QUESTION 6A NOT APPLICABLE. SUBSIDIZED HEALTH SERVICES SCHEDULE H, PART I; QUESTION 7G NO COSTS RELATING TO SUBSIDIZED HEALTHCARE SERVICES ARE ATTRIBUTABLE TO ANY PHYSICIAN CLINICS. CHARITY CARE AND CERTIAN OTHER COMMUNITY BENEFIT COST SCHEDULE H, PART I, QUESTION 7 WORKSHEET 2 WAS USED FOR THE COST TO CHARGE RATIO. COMMUNITY BUILDING ACTIVITIES SCHEDULE H, PART II COMMUNITY BUILDING ACTIVITIES UNDERTAKEN BY THE FACILITY IMPROVE THE MEDICAL AND SOCIOECONOMIC WELL-BEING OF THE COMMUNITIES IN OUR CARE. THIS IS ACCOMPLISHED THROUGH A WIDE ARRAY OF ACTIVITIES AND SERVICES, INCLUDING, BUT NOT LIMITED, TO: - SERVICE ON STATE AND REGIONAL ADVOCACY COMMITTEES AND BOARDS, - VOLUNTEERISM WITH LOCAL COMMUNITY-BASED NON-PROFIT ADVOCACY GROUPS, - PARTICIPATION IN CONFERENCES AND OTHER EDUCATIONAL ACTIVITIES TO PROMOTE UNDERSTANDING OF THE CAUSES AND TREATMENT OF HEALTH CONCERNS, - THE PROVISION OF EDUCATIONAL MATERIALS AND SPONSORING HEALTH EDUCATION SEMINARS AND OUTREACH SESSIONS FOR ITS PATIENTS AND FOR COMMUNITY PROVIDERS [PRESENTATIONS ARE OFTEN PROVIDED BY PHYSICIANS, NURSES AND OTHER HEALTHCARE PROFESSIONALS], - PARTICIPATION IN COMMUNITY HEALTH FAIRS, - SERVING ON THE BOARDS OF MANY LOCAL NOT FOR-PROFIT ORGANIZATIONS AND PROVIDE OTHER FORMS OF SUPPORT (FUNDRAISING, ACTIVITY PARTICIPATION), AND - PROFESSIONAL EDUCATION PLEASE ALSO REFER TO FORM 990, SCHEDULE O, WHICH CONTAINS THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT AND SUMMARY OF ALL ENTITIES WHICH COMPRISE BARNABAS HEALTH. BAD DEBT EXPENSE AND HFMA STATEMENT #15 SCHEDULE H, PART III, SECTION A; QUESTION 1 HEALTHCARE FINANCIAL MANAGEMENT ASSOCIATION STATEMENT NO. 15 ("STATEMENT 15") PROVIDES GUIDELINES FOR DISTINGUISHING CHARITY CARE FROM BAD DEBT EXPENSE. STATEMENT 15 REQUIRES THAT CHARITY CARE IS NOT RECOGNIZED AS RECEIVABLE OR REVENUE IN THE FINANCIAL STATEMENTS. STATEMENT 15 FURTHER EXPLAINS THAT SELF-PAY PATIENTS THAT DO HAVE A REASONABLE LIKELIHOOD OF PAYMENT SHOULD BE REPORTED AS CHARITY CARE AND NOT BAD DEBT EXPENSE. THE HOSPITAL GENERALLY FOLLOWS THE GUIDELINES OUTLINED IN STATEMENT 15. IN ADDITION, THE HOSPITAL FOLLOWS THE STATE OF NEW JERSEY GUIDELINES IN DETERMINING CHARITY CARE ELIGIBILITY. IN CERTAIN INSTANCES, IT IS UNLIKELY THAT UNINSURED PATIENTS WILL PAY FOR THE SERVICES RENDERED, BUT THEY DO NOT QUALIFY FOR THE STATE'S CHARITY CARE PROGRAM BECAUSE OF LACK OF PATIENT COOPERATION OR OTHER REASONS. THE HOSPITAL PURSUES COLLECTION OF THESE AMOUNTS AND UNPAID BALANCES ARE REPORTED AS BAD DEBT EXPENSE. UNDER STATEMENT 15, THESE AMOUNTS WOULD BE RECORDED AS CHARITY CARE RATHER THAN BAD DEBT EXPENSE AND THIS IS THE RATIONALE FOR OUR RESPONSE: "NO". BAD DEBT EXPENSE SCHEDULE H, PART III, SECTION A; QUESTION 4 BAD DEBT EXPENSE WAS CALCULATED USING THE PROVIDERS' BAD DEBT EXPENSE FROM FINANCIAL STATEMENT, NET OF ACCOUNTS WRITTEN OFF AT CHARGES. BARNABAS HEALTH AND ITS AFFILIATES, INCLUDING ITS HOSPITALS AND SUBSIDIARIES, PREPARE AND ISSUE AUDITED CONSOLIDATED FINANCIAL STATEMENTS. BH'S ALLOWANCE FOR DOUBTFUL ACCOUNTS (BAD DEBT EXPENSE) METHODOLOGY AND CHARITY CARE POLICIES ARE CONSISTENTLY APPLIED ACROSS ALL HOSPITAL AFFILIATES. THE ATTACHED TEXT WAS OBTAINED FROM THE FOOTNOTES TO THE AUDITED FINANCIAL STATEMENTS OF THE SAINT BARNABAS CORPORATION. PATIENT ACCOUNTS RECEIVABLE THE CORPORATION HAS AGREEMENTS WITH THIRD-PARTY PAYORS THAT PROVIDE FOR PAYMENT AT AMOUNTS DIFFERENT FROM ITS ESTABLISHED RATES. PAYMENT ARRANGEMENTS INCLUDE PROSPECTIVELY DETERMINED RATES PER DISCHARGE, REIMBURSED COSTS, DISCOUNTED CHARGES, AND PER DIEM PAYMENTS. MANAGEMENT REGULARLY REVIEWS ACCOUNTS AND CONTRACTS AND PROVIDES APPROPRIATE CONTRACTUAL ALLOWANCES AND DISCOUNTS THAT ARE NETTED AGAINST PATIENT ACCOUNTS RECEIVABLE IN THE CONSOLIDATED BALANCE SHEETS. PATIENT ACCOUNTS RECEIVABLE ARE FURTHER REDUCED BY AN ALLOWANCE FOR DOUBTFUL ACCOUNTS. THE CORPORATION ANALYZES ITS PAST COLLECTION HISTORY AND IDENTIFIES TRENDS BY EACH OF ITS MAJOR PAYOR SOURCES OF PATIENT SERVICE REVENUE TO ESTIMATE THE APPROPRIATE ALLOWANCE FOR DOUBTFUL ACCOUNTS AND PROVISION FOR BAD DEBTS. MANAGEMENT REGULARLY REVIEWS DATA ABOUT THE MAJOR PAYOR SOURCES OF PATIENT SERVICE REVENUE IN EVALUATING THE ADEQUACY OF THE ALLOWANCE FOR DOUBTFUL ACCOUNTS. THE CORPORATION ANALYZES CONTRACTUAL AMOUNTS DUE FROM PATIENTS WHO HAVE THIRD-PARTY COVERAGE AND PROVIDES AN ALLOWANCE FOR DOUBTFUL ACCOUNTS AND A PROVISION FOR BAD DEBTS. FOR PATIENT ACCOUNTS RECEIVABLE ASSOCIATED WITH SELF-PAY PATIENTS, WHICH INCLUDES THOSE PATIENTS WITHOUT INSURANCE COVERAGE AND PATIENTS WITH DEDUCTIBLES AND COPAYMENT BALANCES FOR WHICH THIRD-PARTY COVERAGE EXISTS FOR A PORTION OF THE BILL, THE CORPORATION RECORDS A SIGNIFICANT PROVISION FOR BAD DEBTS FOR PATIENTS THAT ARE UNABLE OR UNWILLING TO PAY FOR THE PORTION OF THE BILL REPRESENTING THEIR FINANCIAL RESPONSIBILITY. ACCOUNT BALANCES ARE CHARGED OFF AGAINST THE ALLOWANCE FOR DOUBTFUL ACCOUNTS AFTER ALL MEANS OF COLLECTION HAS BEEN EXHAUSTED. CHARITY CARE THE CORPORATION PROVIDES CARE TO PATIENTS WHO MEET CERTAIN CRITERIA UNDER ITS CHARITY CARE POLICY WITHOUT CHARGE OR AT AMOUNTS LESS THAN ITS ESTABLISHED RATES. SINCE THE CORPORATION DOES NOT PURSUE COLLECTION OF AMOUNTS DETERMINED TO QUALIFY AS CHARITY CARE, SUCH AMOUNTS ARE NOT REPORTED AS PATIENT SERVICE REVENUE. CHARITY CARE AND COMMUNITY BENEFIT IN ACCORDANCE WITH ITS MISSION AND PHILOSOPHY, BARNABAS HEALTH'S HOSPITALS COMMIT SUBSTANTIAL RESOURCES TO BOTH THE INDIGENT POPULATION AND THE BROADER COMMUNITY. THE CORPORATION'S CHARITY CARE POLICY IS TO PROVIDE CARE WITHOUT REGARD TO THE PATIENT'S ABILITY TO PAY FOR SERVICES RENDERED. TO THE EXTENT THAT PATIENTS DO NOT HAVE THE ABILITY TO PAY, SERVICES RENDERED TO THOSE PATIENTS ARE REPORTED AS CHARITY CARE. THE CORPORATION'S HOSPITALS AND AFFILIATES ALSO PROVIDE OTHER BENEFITS THROUGH A BROAD RANGE OF COMMUNITY SERVICE PROGRAMS AND CHARITABLE ACTIVITIES. THE AMOUNT OF CHARITY CARE, COMMUNITY SERVICE PROGRAMS, AND CHARITABLE ACTIVITIES, AT COST, PROVIDED TO THE INDIGENT POPULATION AND BROADER COMMUNITY FOR THE YEARS ENDED DECEMBER 31 IS AS FOLLOWS: 2012 2011 -------- ------- (IN THOUSANDS) COST OF CHARITY CARE AND COMMUNITY BENEFIT PROGRAMS: - NET COST OF CHARITY CARE PROVIDED $110,212 $91,800 - UNPAID COST OF PUBLIC PROGRAMS, MEDICAID AND OTHER MEANS TESTED PROGRAMS $43,476 $51,390 OTHER PROGRAMS: - CASH AND IN-KIND DONATIONS $ 2,754 $ 2,296 - EDUCATION AND RESEARCH $48,390 $40,017 - SUBSIDIZED DEPARTMENTS $ 4,165 $ 2,710 - OTHER COMMUNITY BENEFIT $ 2,986 $ 1,968 THE CORPORATION'S HOSPITALS UTILIZE A COST TO CHARGE RATIO METHODOLOGY TO CONVERT CHARITY CARE TO COST. THE COST TO CHARGE RATIO IS CALCULATED UTILIZING THE CORPORATION'S COST ACCOUNTING SYSTEM. THE STATE OF NEW JERSEY'S REGULATIONS PROVIDE FOR THE DISTRIBUTION OF FUNDS FROM A CHARITY CARE FUND, WHICH IS INTENDED TO PARTIALLY OFFSET THE COST OF SERVICES PROVIDED TO THE UNINSURED, AS WELL AS A HOSPITAL RELIEF FUND, WHICH IS INTENDED TO PRIMARILY OFFSET THE COST OF SERVICES PROVIDED FOR CERTAIN DIAGNOSIS, INCLUDING MENTAL HEALTH, SUBSTANCE ABUSE, MATERNITY AND COMPLEX NEONATAL CASES, TUBERCULOSIS, AND AIDS. THESE FUNDS ARE DISTRIBUTED TO THE CORPORATION'S HOSPITALS BASED ON THEIR LEVEL OF CHARITY CARE AND UNITS OF SERVICE IN RELATION TO ALL OTHER NEW JERSEY HOSPITALS. FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011, BARNABAS HEALTH'S HOSPITALS RECEIVED DISTRIBUTIONS FROM BOTH FUNDS TOTALING $90,773 AND $90,476, RESPECTIVELY. THE RATIONALE FOR INCLUDING A PORTION OF BAD DEBT AMOUNTS AS COMMUNITY BENEFIT IS DISCUSSED IN RESPONSE TO PART III, LINE 8 BELOW. COMMUNITY BENEFIT SCHEDULE H, PART III, SECTION B; QUESTION 8 MEDICARE COSTS WERE DERIVED FROM THE 2012 MEDICARE COST REPORT. MEDICARE UNDERPAYMENTS AND BAD DEBT ARE COMMUNITY BENEFIT AND ASSOCIATED COSTS ARE INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. THE ORGANIZATION FEELS THAT MEDICARE UNDERPAYMENTS (SHORTFALL) AND BAD DEBT ARE COMMUNITY BENEFIT AND ASSOCIATED COSTS ARE INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. AS OUTLINED MORE FULLY BELOW THE ORGANIZATION BELIEVES THAT THESE SERVICES AND RELATED COSTS PROMOTE THE HEALTH OF THE COMMUNITY AS A WHOLE AND ARE RENDERED IN CONJUNCTION WITH THE ORGANIZATION'S CHARITABLE TAX-EXEMPT PURPOSES 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 INTERNAL REVENUE CODE ("IRC") 501(C)(3). THE ORGANIZATION IS RECOGNIZED AS A TAX-EXEMPT ENTITY AND CHARITABLE ORGANIZATION UNDER 501(C)(3) OF THE IRC. 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 "[T]HE TERM CHARITABLE IS USED IN 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, RELIGION, 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 IRC 501(C)(3) CHARITABLE ORGANIZATIONS. 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 STANDARD. 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 BASED ON THE FACT THAT SOME PATIENTS ULTIMATELY FAILED TO PAY. 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 PUBLICLY SUPPORTED COMMUNITY HOSPITALS WOULD NORMALLY QUALIFY AS CHARITABLE ORGANIZATIONS BECAUSE THEY SERVE THE ENTIRE COMMUNITY, AND A LOW LEVEL OF CHARITY CARE WOULD NOT AFFECT A HOSPITAL'S EXEMPT STATUS IF IT WAS DUE TO THE SURROUNDING COMMUNITY'S LACK OF CHARITABLE DEMANDS. COMMUNITY BENEFIT STANDARD IN 1969, THE IRS ISSUED REVENUE RULING 69-545, WHICH "REMOVE[D]" FROM REVENUE RULING 56-185 "THE REQUIREMENTS RELATING TO CARING FOR PATIENTS WITHOUT CHARGE OR AT RATES BELOW COST." UNDER THE STANDARD DEVELOPED IN REVENUE RULING 69-545, WHICH IS KNOWN AS THE "COMMUNITY BENEFIT STANDARD," HOSPITALS ARE JUDGED ON WHETHER THEY PROMOTE THE 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 TREAS. REG. 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: ITS SURPLUS FUNDS WERE USED TO IMPROVE PATIENT CARE, EXPAND HOSPITAL FACILITIES, AND ADVANCE MEDICAL TRAINING, EDUCATION, AND RESEARCH; IT WAS CONTROLLED BY A BOARD OF TRUSTEES THAT CONSISTED OF INDEPENDENT CIVIC LEADERS; AND HOSPITAL MEDICAL STAFF PRIVILEGES WERE AVAILABLE TO ALL QUALIFIED PHYSICIANS. MEDICARE UNDERPAYMENTS AND BAD DEBT ARE COMMUNITY BENEFIT AND ASSOCIATED COSTS ARE INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. THE AMERICAN HOSPITAL ASSOCIATION ("AHA") FEELS THAT MEDICARE UNDERPAYMENTS (SHORTFALL) AND BAD DEBT ARE COMMUNITY BENEFIT AND THUS INCLUDABLE ON THE 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 (SHORTFALL) AS QUANTIFIABLE COMMUNITY BENEFIT FOR THE FOLLOWING REASONS: - PROVIDING CARE FOR THE ELDERLY AND SERVING MEDICARE PATIENTS IS AN ESSENTIAL PART OF THE COMMUNITY BENEFIT STANDARD. - MEDICARE, LIKE MEDICAID, DOES NOT PAY THE FULL COST OF CARE. RECENTLY, MEDICARE REIMBURSES HOSPITALS ONLY 92 CENTS FOR EVERY DOLLAR THEY SPEND TO TAKE CARE OF MEDICARE PATIENTS. THE MEDICARE PAYMENT ADVISORY COMMISSION ("MEDPAC") IN ITS MARCH 2007 REPORT TO CONGRESS CAUTIONED THAT UNDERPAYMENT WILL GET EVEN WORSE, WITH MARGINS REACHING A 10-YEAR LOW AT NEGATIVE 5.4 PERCENT. - 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 OF THE 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 PURPOSES OF A HOSPITAL'S COMMUNITY BENEFIT AND INCLUDE THESE 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 THE FORM 990, SCHEDULE H, PART I. LIKE MEDICARE UNDERPAYMENT (SHORTFALLS), THERE ALSO ARE COMPELLING REASONS THAT PATIENT BAD DEBT SHOULD BE COUNTED AS QUANTIFIABLE COMMUNITY BENEFIT AS FOLLOWS: - 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 HOSPITALS' CHARITY CARE OR FINANCIAL ASSISTANCE PROGRAMS. A 2006 CONGRESSIONAL BUDGET OFFICE ("CBO") 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% 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 ABILITY TO PAY. PATIENTS WHO HAVE OUTSTANDING BILLS ARE NOT TURNED AWAY, UNLIKE OTHER INDUSTRIES. BAD DEBT IS FURTHER COMPLICATED BY THE AUDITING INDUSTRY'S STANDARDS ON REPORTING CHARITY CARE. MANY PATIENTS CANNOT OR DO NOT PROVIDE THE NECESSARY, EXTENSIVE DOCUMENTATION REQUIRED TO BE DEEMED CHARITY CARE BY AUDITORS. AS A RESULT, ROUGHLY 40% OF BAD DEBT IS PENDING CHARITY CARE. - THE CBO CONCLUDED THAT ITS FINDINGS "SUPPORT THE VALIDITY OF THE USE OF UNCOMPENSATED CARE [BAD DEBT AND CHARITY CARE] AS A MEASURE OF COMMUNITY BENEFITS" ASSUMING THE FINDINGS ARE GENERALIZABLE NATIONWIDE; THE EXPE COLLECTION POLICY SCHEDULE H, PART III, SECTION B; QUESTION 9B ACCOUNTS CONSIDERED TO BE CHARITY CARE ARE NOT INCLUDED IN THE BAD DEBT EXPENSE, BUT RATHER, ACCOUNTED FOR AS AN ALLOWANCE. IT IS THE POLICY OF BARNABAS HEALTH ("BH") BUSINESS OFFICE, AND ALL ITS HOSPITAL AFFILIATES, TO TREAT ALL PATIENTS EQUALLY REGARDLESS OF INSURANCE AND THEIR ABILITY TO PAY. FOR ACCOUNTS DETERMINED TO BE "SELF-PAY" AND/OR ACCOUNTS WITH BALANCE AFTER PRIMARY INSURANCE PAYMENTS, THE COLLECTION POLICY REQUIRES: SENDING THREE STATEMENTS, A MINIMUM OF ONE PRE-COLLECTION LETTER/TELEPHONE CONTACT FOR ANY ACCOUNT OVER $5,000.00 OR AT THE DISCRETION OF THE ACCOUNT REPRESENTATIVE AND/OR SUPERVISOR. THE FACILITY ALSO HAS A CHARITY CARE ACCESS POLICY TO ASSURE PATIENTS ARE PROVIDED WITH CHARITY CARE ASSISTANCE DETERMINED BY STATE AND FEDERAL REGULATIONS. IT IS THE POLICY TO INFORM ALL PATIENTS DEEMED SELF-PAY OF THE APPROPRIATE ASSISTANCE PROGRAMS AVAILABLE. PATIENTS APPLYING FOR CHARITY CARE ASSISTANCE WILL BE FINANCIALLY SCREENED BY A RESOURCE ADVISOR TO DETERMINE ELIGIBILITY ACCORDING TO STATE AND FEDERAL GUIDELINES AND WILL BE INFORMED OF DOCUMENTATION NEED TO COMPLETE A CHARITY CARE APPLICATION. PATIENTS NOT ELIGIBLE FOR CHARITY CARE WILL BE FINANCIALLY COUNSELED FOR ALL OTHER OPTIONS. QUALIFIED PATIENTS WILL BE REFERRED TO ALL APPROPRIATE AGENCIES OR PROGRAMS TO MEET OTHER FINANCIAL NEEDS. AT THE TIME OF THE PATIENT VISIT AND PART OF THE REGISTRATION PROCESS AT THE FACILITY, THE FOLLOWING OPTIONS ARE MADE AVAILABLE TO PATIENTS: - FINANCIAL COUNSELING FOR POSSIBLE ELIGIBILITY FOR MEDICAL ASSISTANCE INCLUDING MEDICAID AND SSI; - FINANCIAL COUNSELING FOR POSSIBLE ELIGIBILITY FOR THE NEW JERSEY HOSPITAL CARE PAYMENT ASSISTANCE PROGRAM; AND, - FINANCIAL ARRANGEMENTS INCLUDING: 1. CASH/CREDIT CARD (AMERICAN EXPRESS, DISCOVER, VISA, MASTERCARD), 2. LOW INTEREST LOAN PROGRAM, OR 3. FLEXIBLE PAYMENT PLANS. IN ADDITION TO THE ABOVE OPTIONS, THE FACILITY HAS ESTABLISHED A SELF-PAY ASSISTANCE PROGRAM FOR OUR UNINSURED PATIENTS THAT DO NOT QUALIFY FOR MEDICAID OR THE NEW JERSEY HOSPITAL CARE PAYMENT ASSISTANCE PROGRAM. THE SELF-PAY ASSISTANCE PROGRAM RATES ARE REFLECTIVE OF MEDICARE REIMBURSEMENT, AS REFERRED BY THE STATE OF NEW JERSEY. FACILITY INFORMATION SCHEDULE H, PART V, SECTION B, QUESTIONS 1J, 3, 4, 5C, 6I & 7 NOT APPLICABLE. FACILITY INFORMATION SCHEDULE H, PART V,SECTION B, Q'S 10,11,12H,14G,16E,17E,18E,19C,19D,21&22 NOT APPLICABLE. FACILITY INFORMATION SCHEDULE H, PART V, SECTION B, QUESTION 20D THE FACILITY USES 115% OF THE MEDICARE RATE AS THE MAXIMUM AMOUNT THAT CAN BE CHARGED TO FAP-ELIGIBLE INDIVIDUALS FOR EMERGENCY OR OTHER MEDICALLY NECESSARY CARE. NEEDS ASSESSMENT SCHEDULE H, PART VI; QUESTION 2 BARNABAS HEALTH CONDUCTS A REVIEW OF KEY MARKET FACTORS FOR CMC ANNUALLY WHICH INCLUDES: A REVIEW OF HEALTHCARE UTILIZATION OF ITS SERVICE AREA POPULATION BY SERVICES (CARDIOLOGY, OBSTETRICS, GYNECOLOGY, UROLOGY, ETC.) FOR DETERMINING INCREASED OR DECREASED HEALTH NEEDS; HEALTHCARE SERVICE ESTIMATES FOR INPATIENT AND OUTPATIENT SERVICES; ASSESSMENT OF LOCAL DEMOGRAPHIC AND SOCIOECONOMIC INFORMATION; COMMUNITY HEALTH STATUS DATA AND, A REVIEW OF HEALTH STATUS/NEEDS ASSESSMENTS AND STUDIES CONDUCTED BY EXTERNAL PARTIES (HEALTH RESEARCH AND EDUCATION TRUST OF NEW JERSEY, KIDS COUNT, COUNTY HEALTH RANKINGS, SEER CANCER INCIDENCE AND MORTALITY, TO NAME A FEW). CMC CONDUCTS AN EXTENSIVE SERVICE AREA POPULATION PHYSICIAN NEED (BY PRIMARY CARE AND PHYSICIAN SPECIALTY) EVERY THREE TO FIVE YEARS. SPECIFIC SPECIALTY NEEDS ARE CONDUCTED FOR IDENTIFIED GAPS IN SERVICE. THESE REVIEWS INFORM MEDICAL STAFF DEVELOPMENT AT THE MEDICAL CENTER AND ASSURE RESPONSIVENESS TO IDENTIFIED COMMUNITY NEEDS. CMC ALSO PARTICIPATES AND WORKS WITH LOCAL ORGANIZATION ON HEALTH ISSUES, DISCUSSING AND PRIORITIZING NEEDS. IN ADDITION, CMC WORKS WITH OCEAN COUNTY HEALTH DEPARTMENT TO PLAN AND IMPLEMENT A LOCAL NEEDS ASSESSMENT/HEALTH STATUS APPROXIMATELY EVERY FIVE YEARS. PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE SCHEDULE H, PART VI; QUESTION 3 CHARITY CARE SIGNAGE IS POSTED IN ALL PATIENT REGISTRATION AREAS IN ENGLISH AND SPANISH. CHARITY CARE NOTICE OF FINANCIAL ASSISTANCE IS PROVIDED TO PATIENTS WITH THEIR GENERAL CONSENT. PATIENTS ARE REFERRED TO A FINANCIAL COUNSELOR IF THEY REQUIRE ASSISTANCE. LETTERS ARE MAILED TO SELF-PAY PATIENTS ADVISING THEM OF FINANCIAL ASSISTANCE PROGRAMS. COMMUNITY INFORMATION SCHEDULE H, PART VI; QUESTION 4 LOCATED IN TOMS RIVER, THE COUNTY SEAT OF OCEAN COUNTY, CMC IS A 592-BED, FULLY ACCREDITED ACUTE CARE HOSPITAL SERVING RESIDENTS OF TOMS RIVER AND SURROUNDING COMMUNITIES. OCEAN COUNTY IS ONE OF THE FASTEST GROWING COUNTIES IN THE STATE SINCE 1940. TOMS RIVER IS ONE OF THE FASTEST GROWING AREAS OF NEW JERSEY AND IS RANKED THE 8TH MOST POPULOUS CITY IN THE STATE. THERE WAS A 12.8% POPULATION GROWTH BETWEEN THE 2000 AND 2010 CENSUS. OCEAN COUNTY IS CONSIDERED PART OF THE NY METROPOLITAN AREA; HOWEVER, IT IS ACTUALLY HOME TO ONE-THIRD OF THE JERSEY SHORE, BORDERING THE ATLANTIC OCEAN IN THE SOUTHERN PART OF NEW JERSEY, A PRIME DESTINATION FOR LARGE BEACH POPULATIONS, FISHERMAN AND BOATERS, WHICH PLACES ADDITIONAL DEMANDS ON THE HOSPITAL'S EMERGENCY DEPARTMENT. CMC SERVES BOTH SUBURBAN AND SEMI-RURAL COMMUNITIES INCLUDING THE SHORE COMMUNITIES AND LOW-INCOME MUNICIPALITIES OF MANCHESTER AND SOUTH TOMS RIVER. CMC SERVES A SIGNIFICANT PROPORTION OF ELDERLY (21% OF THE COUNTY POPULATION IS AGED 65 AND OLDER AS OPPOSED TO THE 13% NATIONAL PERCENTAGE). OVER 62% OF CMC'S INPATIENT ADMISSIONS WERE AGED 65 AND OLDER. IN 2012, OVER 70% OF CMC'S PAYER MIX WAS COMPRISED OF GOVERNMENT PAYERS (MEDICAID AND MEDICARE) AND UNDERINSURED AND UNINSURED PAYER CATEGORIES. PROMOTION OF COMMUNITY HEALTH SCHEDULE H, PART VI; QUESTION 5 COMMUNITY BUILDING ACTIVITIES UNDERTAKEN BY CMC IMPROVE THE MEDICAL AND SOCIOECONOMIC WELL-BEING OF THE COMMUNITIES IN OUR CARE. THIS IS ACCOMPLISHED THROUGH SERVICE ON STATE AND REGIONAL ADVOCACY COMMITTEES AND BOARDS, VOLUNTEERISM WITH LOCAL COMMUNITY-BASED NON-PROFIT ADVOCACY GROUPS, AND PARTICIPATION IN CONFERENCES AND OTHER EDUCATIONAL ACTIVITIES TO PROMOTE UNDERSTANDING OF THE ROOT CAUSES OF HEALTH CONCERNS. CMC PROVIDES EDUCATIONAL MATERIALS, CONDUCTS COMMUNITY HEALTH FAIRS AND HOLDS HEALTH EDUCATION SEMINARS AND OUTREACH SESSIONS FOR ITS PATIENTS AND FOR COMMUNITY PROVIDERS. PRESENTATIONS ARE PROVIDED BY PHYSICIANS, NURSES AND OTHER HEALTHCARE PROFESSIONALS. THE MAJORITY OF THE BOARD OF TRUSTEES' MEMBERS ARE INDIVIDUALS WITH LOCAL BUSINESSES OR WHO RESIDE IN THE COMMUNITY. HOSPITAL STAFF MEMBERS SERVE ON THE BOARDS OF MANY LOCAL NOT-FOR-PROFIT ORGANIZATIONS OR PROVIDE OTHER FORMS OF SUPPORT SUCH AS FUNDRAISING, ACTIVITY PARTICIPATION AND PROMOTION OF THE CHARITABLE EVENTS AND MISSION. ALL QUALIFIED PHYSICIANS ARE EXTENDED PRIVILEGES. DIVERSITY IS WELCOMED AND ENCOURAGED FOR RECRUITMENT OF TRUSTEES, PHYSICIANS AND STAFF. UNDER THE DIRECTIVE OF THE SYSTEM'S FINANCE OFFICE, SURPLUS FUNDS ARE UTILIZED FOR CAPITAL PROJECTS TO IMPROVE SERVICES, TO PURCHASE EQUIPMENT, OR TO ADVANCE MEDICAL CARE, PROGRAMS AND ACTIVITIES. ALL OF THESE PURPOSES FOR EXPENDITURE OF SURPLUS FUNDS, IN TURN, BENEFIT THE COMMUNITY. PLEASE ALSO REFER TO FORM 990, SCHEDULE O, WHICH CONTAINS THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT AND PROVIDES A SUMMARY OF ENTITIES COMPRISING BARNABAS HEALTH. AFFILIATED HEALTHCARE SYSTEM SCHEDULE H, PART VI; QUESTION 6 CMC IS AN AFFILIATE OF BARNABAS HEALTH ("BH"). ALL AFFILIATES ARE COMMITTED TO ENHANCING THE OVERALL HEALTH STATUS OF THE COMMUNITY BY PROVIDING THE HIGHEST QUALITY HEALTHCARE AND RELATED SERVICES. BH STRIVES TO EXCEED THE PATIENTS' EXPECTATIONS BY EMPHASIZING COMMITMENT, COMPETENCE, COLLABORATION, COMMUNICATION, AND COMPASSION. BH SETS OVERALL POLICY REGARDING BILLING AND COLLECTIONS AND THE FACILITY RESPONSES PROVIDED FOR PART I, PART II, AND PART III ARE REFLECTIVE OF THAT POLICY. CMC'S SOLE CORPORATE MEMBER IS BARNABAS HEALTH, INC. ("BH"), A TAX-EXEMPT NEW JERSEY NON-PROFIT PARENT CORPORATION WHICH CONTROLS A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM CONSISTING OF A GROUP OF AFFILIATED HEALTHCARE ORGANIZATIONS. THE INTEGRATED SYSTEM OF HEALTHCARE PROVIDERS THROUGHOUT THE STATE OF NEW JERSEY PROVIDES SUBSTANTIAL COMMUNITY BENEFIT. THE SOLE MEMBER OR STOCKHOLDER OF EACH ENTITY IS EITHER BH OR ANOTHER BH AFFILIATE CONTROLLED OR OWNED BY BH. BARNABAS HEALTH, INC. IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A SUPPORTING ORGANIZATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3). AS THE PARENT ORGANIZATION OF THE LARGEST TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM IN NEW JERSEY, BARNABAS HEALTH, INC. STRIVES TO CONTINUALLY DEVELOP AND OPERATE A MULTI-HOSPITAL HEALTH SYSTEM WHICH PROVIDES SUBSTANTIAL COMMUNITY BENEFIT THROUGH THE PROVISION OF A COMPREHENSIVE SPECTRUM OF HEALTHCARE AND PREVENTION SERVICES TO THE RESIDENTS OF NEW JERSEY AND SURROUNDING COMMUNITIES. BARNABAS HEALTH, INC. ENSURES THAT ITS SYSTEM PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGINS OR ABILITY TO PAY. OUTLINED BELOW IS A SUMMARY OF THE ENTITIES WHICH COMPRISE BARNABAS HEALTH. ACTIVE HOSPITALS INCLUDE CLARA MAASS MEDICAL CENTER, COMMUNITY MEDICAL CENTER, KIMBALL MEDICAL CENTER, MONMOUTH MEDICAL CENTER, NEWARK BETH ISRAEL MEDICAL CENTER, SAINT BARNABAS BEHAVIORAL HEALTH CENTER, INC., AND SAINT BARNABAS MEDICAL CENTER. EACH OF THESE HOSPITALS OPERATES CONSISTENTLY WITH THE FOLLOWING CRITERIA OUTLINED IN IRS REVENUE RULING 69-545: 1. EACH PROVIDE MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF ABILITY TO PAY, INCLUDING CHARITY CARE, SELF-PAY, MEDICARE AND MEDICAID PATIENTS; 2. EACH ACUTE CARE HOSPITAL OPERATES AN ACTIVE EMERGENCY ROOM FOR ALL PERSONS, WHICH IS OPEN 24 HOURS A DAY, 7 DAYS A WEEK, 365 DAYS PER YEAR; 3. EACH MAINTAINS AN OPEN MEDICAL STAFF, WITH PRIVILEGES AVAILABLE TO ALL QUALIFIED PHYSICIANS; 4. CONTROL OF EACH RESTS WITH ITS BOARD OF TRUSTEES AND THE BOARD OF TRUSTEES OF BARNABAS HEALTH, INC. (BOTH BOARDS ARE COMPRISED OF INDEPENDENT CIVIC LEADERS AND OTHER PROMINENT MEMBERS OF THE COMMUNITY); AND 5. SURPLUS FUNDS ARE USED TO IMPROVE THE QUALITY OF PATIENT CARE, EXPAND AND RENOVATE FACILITIES AND ADVANCE MEDICAL CARE, PROGRAMS AND ACTIVITIES. THE BARNABAS HEALTH ENTITIES ARE AS FOLLOWS: CLARA MAASS MEDICAL CENTER ("CMMC") IS A 469-BED NON-PROFIT ACUTE CARE MEDICAL CENTER LOCATED IN BELLEVILLE, ESSEX COUNTY, NEW JERSEY. CMMC IS RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS AN INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, CMMC PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NONDISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. MOREOVER, CMMC OPERATES CONSISTENTLY WITH THE CRITERIA OUTLINED IN IRS REVENUE RULING 69-545. COMMUNITY MEDICAL CENTER, INC. ("CMC") IS A 592-BED NON-PROFIT HOSPITAL LOCATED IN TOMS RIVER, OCEAN COUNTY, NEW JERSEY. CMC IS RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS AN INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, CMC PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. MOREOVER, CMC OPERATES CONSISTENTLY WITH THE CRITERIA OUTLINED IN IRS REVENUE RULING 69-545. KIMBALL MEDICAL CENTER, INC. ("KMC") IS A 330-BED NON-PROFIT MEDICAL CENTER LOCATED IN LAKEWOOD, OCEAN COUNTY, NEW JERSEY. KMC IS RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS AN INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, KMC PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. MOREOVER, KMC OPERATES CONSISTENTLY WITH THE CRITERIA OUTLINED IN IRS REVENUE RULING 69-545. MONMOUTH MEDICAL CENTER ("MMC") IS A 513-BED NON-PROFIT COMMUNITY TEACHING HOSPITAL LOCATED IN LONG BRANCH, MONMOUTH COUNTY, NEW JERSEY. MMC IS RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS AN INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, MMC PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. MOREOVER, MMC OPERATES CONSISTENTLY WITH THE CRITERIA OUTLINED IN IRS REVENUE RULING 69-545. NEWARK BETH ISRAEL MEDICAL CENTER ("NBIMC") IS A 665-BED NON-PROFIT, FULLY ACCREDITED REGIONAL CARE TEACHING HOSPITAL LOCATED IN NEWARK, ESSEX COUNTY, NEW JERSEY. NBIMC IS RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS AN INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, NBIMC PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NONDISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. MOREOVER, NBIMC OPERATES CONSISTENTLY WITH THE CRITERIA OUTLINED IN IRS REVENUE RULING 69-545. SAINT BARNABAS BEHAVIORAL HEALTH CENTER, INC., D/B/A BARNABAS HEALTH BEHAVIORAL HEALTH CENTER, IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3). THE ORGANIZATION PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NONDISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. SAINT BARNABAS BEHAVIORAL HEALTH CENTER (WITH KIMBALL BEHAVIORAL HEALTH SERVICES) CONSTITUTES A FREESTANDING 100-BED ACUTE CARE PSYCHIATRIC FACILITY IN OCEAN COUNTY, NEW JERSEY. THE ORGANIZATION PROVIDES INPATIENT, PARTIAL HOSPITALIZATION, AND INTENSIVE OUTPATIENT PROGRAMS FOR ADULTS DIAGNOSED WITH PSYCHIATRIC AND DUAL DISORDERS. BARNABAS HEALTH BEHAVIORAL HEALTH CENTER IS ACCREDITED BY THE JOINT COMMISSION ON ACCREDITATION FOR HEALTHCARE ORGANIZATIONS. SAINT BARNABAS MEDICAL CENTER ("SBMC") IS NEW JERSEY'S OLDEST NON-PROFIT, NON-SECTARIAN ACUTE CARE HOSPITAL, LOCATED IN LIVINGSTON, ESSEX COUNTY, NEW JERSEY. WITH 645 LICENSED BEDS, SBMC IS RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS AN INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, SBMC PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. MOREOVER, SBMC OPERATES CONSISTENTLY WITH THE CRITERIA OUTLINED IN IRS REVENUE RULING 69-545. CENTER STATE HEALTH GROUP, INC. IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3). THE ORGANIZATION IS A SUPPORTING ORGANIZATION OF BARNABAS HEALTH, INC. AND THE BARNABAS HEALTH SYSTEM HOSPITALS AND MEDICAL CENTERS. IT ACTS AS THE CENTRALIZED BUSINESS OFFICE FOR BARNABAS HEALTH AND ASSISTS THEM WITH BILLING AND COLLECTING OF REVENUE FOR MEDICAL SERVICES PROVIDED BY THESE ORGANIZATIONS. CENTER STATE PROPERTIES, INC. IS AN INACTIVE ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(2). AFFILIATED HEALTHCARE SYSTEM CONTINUED SCHEDULE H, PART VI; QUESTION 6 CENTRAL JERSEY BEHAVIORAL HEALTH ASSOCIATES, INC., IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3). THE ORGANIZATION PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NONDISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY AND SUPPORTS THE CHARITABLE PURPOSES, PROGRAMS AND SERVICES OF SAINT BARNABAS BEHAVIORAL HEALTH CENTER, INC., A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION, THAT ALSO PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. CLARA MAASS FOUNDATION, INC. IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(1). THROUGH FUNDRAISING ACTIVITIES, THE ORGANIZATION SUPPORTS THE CHARITABLE PURPOSES, PROGRAMS AND SERVICES OF CLARA MAASS MEDICAL CENTER, A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION, THAT PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NONDISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. CLARA MAASS HEALTH SYSTEM, INC. IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3). THE ORGANIZATION SUPPORTS THE CHARITABLE PURPOSES, PROGRAMS AND SERVICES OF CLARA MAASS MEDICAL CENTER, A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION, THAT PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. CLARA MAASS PROPERTIES, INC. IS AN INACTIVE ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(2). COMMUNITY MEDICAL CENTER FOUNDATION, INC. IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(1). THROUGH FUNDRAISING ACTIVITIES THE ORGANIZATION SUPPORTS THE CHARITABLE PURPOSES, PROGRAMS AND SERVICES OF COMMUNITY MEDICAL CENTER, A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION, THAT PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NONDISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. HARVEY E. NUSSBAUM, MD RESEARCH INSTITUTE OF SAINT BARNABAS IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION. THE ORGANIZATION ACTS AS A MEDICAL RESEARCH ORGANIZATION OPERATED IN CONJUNCTION WITH SAINT BARNABAS MEDICAL CENTER, A HOSPITAL DESCRIBED IN INTERNAL REVENUE CODE 170 (B)(L)(A)(III) AND RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION THAT PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. THE ORGANIZATION CONDUCTS RESEARCH IN FURTHERANCE OF SAINT BARNABAS MEDICAL CENTER'S MEDICAL EDUCATION AND TEACHING PROGRAM AND CHARITABLE PURPOSES, PROGRAMS AND SERVICES. PERIODICALLY, THE ORGANIZATION WILL ASSIST AND/OR SUPPORT FINANCIALLY SAINT BARNABAS MEDICAL CENTER IN MEDICAL RESEARCH AND DEVELOPMENT ACTIVITIES. KIMBALL MEDICAL CENTER FOUNDATION, INC. IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(1). THROUGH FUNDRAISING ACTIVITIES, THE ORGANIZATION SUPPORTS THE CHARITABLE PURPOSES, PROGRAMS AND SERVICES OF KIMBALL MEDICAL CENTER, A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION, THAT PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. MEDICAL CENTER STAFFING SERVICES, INC. IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3). THE ORGANIZATION SUPPORTS THE CHARITABLE PURPOSES, PROGRAMS AND SERVICES OF CENTER STATE HEALTH GROUP, INC., A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX- EXEMPT ORGANIZATION, AND SUPPORTS THE BARNABAS HEALTH SYSTEM BY PROVIDING TEMPORARY STAFFING SERVICES TO VARIOUS AFFILIATES. MEGA CARE, INC. IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3). THE ORGANIZATION IS LOCATED IN UNION, UNION COUNTY, NEW JERSEY. THE ORGANIZATION IS A SUPPORTING ORGANIZATION OF BARNABAS HEALTH, INC., AND WILL PROVIDE HOME HEALTH AGENCY SERVICES IN SUPPORT OF BARNABAS HEALTH, INC. AND ITS TAX-EXEMPT ACUTE CARE HOSPITALS. MONMOUTH MEDICAL CENTER FACULTY PRACTICE PLAN, INC. IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3). THE ORGANIZATION SUPPORTS THE CHARITABLE PURPOSES, PROGRAMS AND SERVICES OF MONMOUTH MEDICAL CENTER, A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION, THAT PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. THE ORGANIZATION PROVIDES CLINICAL SERVICES, EDUCATION AND TRAINING IN CONJUNCTION WITH MONMOUTH MEDICAL CENTER'S MEDICAL RESIDENCY TEACHING PROGRAM. MONMOUTH MEDICAL CENTER FOUNDATION, INC. IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(1). THROUGH FUNDRAISING ACTIVITIES THE ORGANIZATION SUPPORTS THE CHARITABLE PURPOSES, PROGRAMS AND SERVICES OF MONMOUTH MEDICAL CENTER, A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION, THAT PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. AFFILIATED HEALTHCARE SYSTEM CONTINUED SCHEDULE H, PART VI; QUESTION 6 BARNABAS HEALTH MEDICAL GROUP, P.C. IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(2). THE ORGANIZATION SUPPORTS BARNABAS HEALTH, INC., A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION AND ITS TAX-EXEMPT ACUTE CARE HOSPITALS, WHICH PROVIDE MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. IN ADDITION, BY PRACTICING MEDICINE, ENGAGING IN MEDICAL EDUCATION AND WORKING TO IMPROVE THE WELFARE OF INDIVIDUALS IN NEW JERSEY, THE ORGANIZATION COMPRISES A COMPONENT OF THE CLINICAL SERVICE PHYSICIAN PRACTICE PLANS OF THE BARNABAS HEALTH TEACHING HOSPITALS AND IS AN INTEGRAL PART OF THESE INSTITUTIONS. SAINT BARNABAS DEVELOPMENT FOUNDATION, INC. IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(2). THROUGH FUNDRAISING ACTIVITIES, THE ORGANIZATION SUPPORTS THE CHARITABLE PURPOSES, PROGRAMS AND SERVICES OF SAINT BARNABAS MEDICAL CENTER, A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION, THAT PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. SAINT BARNABAS HEALTH CARE SYSTEM FOUNDATION, INC. IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(1). THROUGH FUNDRAISING ACTIVITIES THE ORGANIZATION SUPPORTS THE CHARITABLE PURPOSES, PROGRAMS AND SERVICES OF BARNABAS HEALTH. SAINT BARNABAS HOSPICE AND PALLIATIVE CARE CENTER, INC. IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(1). THE ORGANIZATION PROVIDES CARE AND SUPPORT FOR TERMINALLY ILL PATIENTS AND THEIR FAMILIES IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. FOR MORE THAN 25 YEARS THE CARING, COMPASSIONATE PROFESSIONALS OF THE NATIONALLY RENOWNED SAINT BARNABAS HOSPICE AND PALLIATIVE CARE CENTER, INC. HAVE PROVIDED EXCEPTIONAL PHYSICAL, EMOTIONAL AND SPIRITUAL SUPPORT TO PATIENTS AND THEIR FAMILIES DURING LIFE'S FINAL STAGES WHETHER AT HOME, IN THE HOSPITAL, OR IN A LONG-TERM CARE OR ASSISTED LIVING FACILITY. OUR DEDICATED, HIGHLY SKILLED TEAM STRIVES TO IMPROVE QUALITY OF LIFE WHILE PROVIDING COMFORT, PRESERVING DIGNITY, AND HONORING THE UNIQUE WISHES OF EACH PATIENT AND FAMILY. SAINT BARNABAS OUTPATIENT CENTERS, CORP. IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(2). SAINT BARNABAS OUTPATIENT CENTERS IS ONE OF THE NATION'S MOST SOPHISTICATED AMBULATORY HEALTHCARE FACILITIES--PROVIDING THE HIGHEST QUALITY MEDICAL CARE IN AN ENVIRONMENT DESIGNED TO SET A NEW STANDARD FOR PATIENT SATISFACTION. THE ORGANIZATION PROVIDES VARIOUS TYPES OF MEDICALLY NECESSARY OUTPATIENT MEDICAL AND SURGICAL SPECIALTY SERVICES, INCLUDING AMBULATORY SURGERY AND WOMEN'S GYNECOLOGICAL SURGERY, RENAL DIALYSIS SERVICES, IMAGING SERVICES, DIABETES SERVICES AND ENDOCRINOLOGY SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. SAINT BARNABAS PALLIATIVE CARE PHYSICIANS, P.A. IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(2). THE ORGANIZATION WAS FORMED TO SUPPORT SAINT BARNABAS HOSPICE AND PALLIATIVE CARE CENTER, INC. ("HOSPICE"), A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION THAT PROVIDES CARE AND SUPPORT FOR TERMINALLY ILL PATIENTS AND THEIR FAMILIES IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY, BY ENGAGING IN PATIENT CARE EDUCATION, RESEARCH AT HOSPICE, PROVIDING ADMINISTRATIVE SERVICES FOR HOSPICE, PROVIDING CLINICAL SERVICES FOR THE PATIENTS OF HOSPICE AND WORKING TO IMPROVE THE WELFARE OF INDIVIDUALS IN NEW JERSEY THE ORGANIZATION CONSTITUTES A MAJORITY OF THE ADMINISTRATIVE AND CLINICAL SERVICES PHYSICIAN PRACTICE PLANS OF HOSPICE AND IS AN INTEGRAL PART OF HOSPICE'S MEMBERSHIP WITHIN THE BARNABAS HEALTH SYSTEM. SAINT BARNABAS REALTY DEVELOPMENT CORPORATION IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3). THE ORGANIZATION IS A SUPPORTING ORGANIZATION OF SAINT BARNABAS MEDICAL CENTER, A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION, THAT PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY, AND IS PRIMARILY RESPONSIBLE FOR THE MANAGEMENT AND OPERATION OF RENTAL SPACE FOR VARIOUS AFFILIATES OF THE BARNABAS HEALTH SYSTEM. SANDY HOOK FRIENDS OF SAINT BARNABAS BURN FOUNDATION IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3). THE ORGANIZATION SUPPORTS THE CHARITABLE PURPOSES, PROGRAMS AND SERVICES OF THE SAINT BARNABAS BURN UNIT AT SAINT BARNABAS MEDICAL CENTER; A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION THAT PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. NJ HEALTH CARE INNOVATION CENTER, INC. IS AN INACTIVE ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C )(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3). THE NEWARK BETH ISRAEL MEDICAL CENTER FOUNDATION, INC. IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(1). THROUGH FUNDRAISING ACTIVITIES THE ORGANIZATION SUPPORTS THE CHARITABLE PURPOSES, PROGRAMS AND SERVICES OF NEWARK BETH ISRAEL MEDICAL CENTER, A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION, THAT PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. THE SYSTEM ALSO CONSISTS OF VARIOUS ENTITIES THAT ARE RECOGNIZED AS INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATIONS BUT ARE CURRENTLY INACTIVE. THESE ENTITIES INCLUDE THE FOLLOWING: - COUNTRY MANOR AT DOVER - IRVINGTON GENERAL HOSPITAL, INC. - IRVINGTON HOSPITAL FOUNDATION, INC. - KENSINGTON MANOR CARE CENTER - MMC AMBULATORY SURGERY CENTER, INC. - NBI HEALTH PARTNERS, P.A. - SAINT BARNABAS ASSISTED LIVING AT LAKEWOOD - UNION HOSPITAL AFFILIATED HEALTHCARE SYSTEM CONTINUED SCHEDULE H, PART VI; QUESTION 6 FOR PROFIT BARNABAS HEALTH ENTITIES INCLUDE THE FOLLOWING: CENTER STATE COLLECTION SERVICES, INC. IS A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS CENTER STATE HEALTH SERVICES CORPOARTION. THE ENTITY PROVIDES COLLECTION SERVICES FOR BOTH BARNABAS HEALTH ENTITIES AND NON-BARNABAS HEALTH ENTITIES. CENTER STATE HEALTH SERVICES CORPORATION A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS LSC HOLDING COMPANY, INC. THE ORGANIZATION IS LOCATED IN TOMS RIVER, OCEAN COUNTY, NEW JERSEY. THE ORGANIZATION DERIVES RENTAL INCOME AND RECEIVES FORMS K-1 INCOME FROM MEDICAL SERVICES RELATED INVESTMENT PARTNERSHIPS. CENTER STATE MANAGEMENT CORPORATION IS A FOR-PROFIT ENTITY, WHOSE SOLE SHAREHOLDER IS CSHS THE ORGANIZATION IS LOCATED IN TOMS RIVER, OCEAN COUNTY, NEW JERSEY. THIS ENTITY PROVIDES ADVERTISING SERVICES FOR BOTH BH ENTITIES AND NON-SBHCS ENTITIES AND PROVIDES MANAGEMENT SERVICES TO PHYSICIAN GROUPS. COMMERCIAL PROFESSIONAL INSURANCE COMPANY, LTD, A CONTROLLED FOREIGN CORPORATION OF SAINT BARNABAS MEDICAL CENTER. THE ORGANIZATION WAS FORMED AND OPERATES SOLELY IN BERMUDA. COMMUNITY KARE, INC. IS A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS CENTER STATE HEALTH SERVICES CORP. THE ORGANIZATION IS LOCATED IN LAKEWOOD, OCEAN COUNTY, NEW JERSEY. THE ORGANIZATION IS A HOME HEALTH AGENCY THAT PROVIDES NURSES AND NURSES AIDES TO THE HOMES OF INDIVIDUALS THAT REQUIRE ASSISTANCE. HEALTH CARE FACILITIES MANAGEMENT, INC. IS A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS SBC MANAGEMENT CORPORATION (THE SOLE STOCKHOLDER OF WHICH IS SBC). THE ORGANIZATION IS LOCATED IN SOUTH PLAINFIELD, MIDDLESEX COUNTY, NEW JERSEY THE ORGANIZATION PROVIDES ENGINEERING, PLANT OPERATIONS AND MATERIALS MANAGEMENT SERVICES PRIMARILY TO BH ENTITIES. INNOVATIVE PURCHASING CONCEPTS, L.L.C. IS A LIMITED LIABILITY COMPANY TAXED AS A PARTNERSHIP OWNED BY THE BARNABAS HEALTH SYSTEM HOSPITALS THIS ORGANIZATION ENGAGES IN GROUP PURCHASING ACTIVITY. KIMBALL HEALTH CARE AFFILIATES, INC. IS A FOR PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS CENTER STATE HEALTH SERVICES CORP. THIS ENTITY IS A PARTNER IN KIM-MED ASSOCIATES AND RECEIVES A FORM K-1 ANNUALLY FROM THE PARTNERSHIP. KIM-MED ASSOCIATES IS A PARTNERSHIP WHICH OWNS A MEDICAL OFFICE BUILDING IN LAKEWOOD, OCEAN COUNTY, NEW JERSEY. KMC AND KIMBALL HEALTH CARE AFFILIATES, INC. ARE THE PARTNERS IN THIS PARTNERSHIP. LIVINGSTON INFUSION CARE, INC. IS A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS LSC THE ORGANIZATION IS LOCATED IN SOUTH PLAINFIELD, MIDDLESEX COUNTY, NEW JERSEY. THE ORGANIZATION PROVIDES HOME INFUSION AND DIALYSIS SERVICES TO INDIVIDUALS. LIVINGSTON SERVICES CORPORATION IS A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS LSC HOLDING COMPANY, INC. THE ORGANIZATION IS LOCATED IN SOUTH PLAINFIELD, MIDDLESEX COUNTY, NEW JERSEY. THE ORGANIZATION PROVIDES TECHNOLOGY SERVICES TO BH ENTITIES AND UNRELATED ENTITIES. IT OPERATES A "LIFELINE BEEPER" PROGRAM FOR ELDERLY INDIVIDUALS, OPERATES A PHYSICAL THERAPY PROGRAM AND CONDUCTS MEDICALLY RELATED LECTURES. LSC HOLDING COMPANY, INC. IS A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS LSC. THIS ENTITY IS THE SOLE OWNER OF ALL THE OUTSTANDING COMMON STOCK OF LIVINGSTON SERVICES CORPORATION, CENTER STATE HEALTH SERVICES, CORP. AND SBC MANAGEMENT CORPORATION. LSC PHARMACY SERVICES, INC. IS A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS SBC. THE ORGANIZATION IS LOCATED IN WEST ORANGE, ESSEX COUNTY, NEW JERSEY. THE ORGANIZATION OPERATES A PHARMACY FOR BH ENTITIES. MAJOR SECURITY SERVICES, INC. IS A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS LSC. THE ORGANIZATION IS LOCATED IN SOUTH PLAINFIELD, MIDDLESEX COUNTY, NEW JERSEY. THE ORGANIZATION PROVIDES SECURITY SERVICES PRIMARILY TO BH ENTITIES AND OTHERS. THE ORGANIZATION CONDUCTS BACKGROUND CHECKS AND OTHER INVESTIGATORY SERVICES. MEDICAL CENTER HEALTH CARE SERVICES, INC. IS A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS LSC. THE ORGANIZATION IS LOCATED IN SOUTH PLAINFIELD, MIDDLESEX COUNTY, NEW JERSEY. THE ORGANIZATION OPERATES AN AGENCY FOR TEMPORARY STAFFING SERVICES, SUCH AS NURSES AND ADMINISTRATION PRIMARILY TO BH ENTITIES AND OTHERS. NEW JERSEY HEALTH CARE SYSTEM, INC. IS AN INACTIVE FOR-PROFIT CORPORATION. PREMIUM HEALTH SYSTEMS, INC. IS A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS SBC. THE ORGANIZATION IS LOCATED IN BELLEVILLE, ESSEX COUNTY, NEW JERSEY. THIS ENTITY DERIVES INCOME FROM THE OPERATION OF A MRI MACHINE AND THE RECEIPT OF RENTAL INCOME. PROFESSIONAL QUALITY LIABILITY INSURANCE COMPANY, A RISK RETENTION GROUP, IS A VERMONT BASED INSURANCE COMPANY. SAINT BARNABAS PHYSICIAN ASSOCIATES, P.A. IS A FOR-PROFIT ENTITY, WHOSE SOLE SHAREHOLDER IS SAINT BARNABAS MEDICAL CENTER. THE ORGANIZATION IS LOCATED IN LIVINGSTON, ESSEX COUNTY, NEW JERSEY. THIS ENTITY PROVIDES MEDICAL SERVICES TO INDIVIDUALS. SBC MANAGEMENT CORPORATION IS A FOR-PROFIT ENTITY, WHOSE SOLE SHAREHOLDER IS LSC HOLDING COMPANY, INC. THE ORGANIZATION IS LOCATED IN WEST ORANGE, ESSEX COUNTY, NEW JERSEY. THIS ENTITY PROVIDES MANAGERIAL ADMINISTRATION AND SUPPORT TO BH. IS A VERMONT BASED INSURANCE COMPANY. STATE FILING OF COMMUNITY BENEFIT REPORT SCHEDULE H, PART III, SECTION B; QUESTION 7 NOT APPLICABLE. THE ENTITY AND RELATED PROVIDER ORGANIZATIONS ARE LOCATED IN NEW JERSEY. NO COMMUNITY BENEFIT REPORT IS FILED WITH THE STATE OF NEW JERSEY. FACILITY REPORTING GROUP(S) SCH H,PT V,SCT B, Q 1J,3,4,5C,6I,7,10,11,12H,14G,16E,17E,18E,19C,20D,21&22 NOT APPLICABLE. X true true X X X X X true true false false false false false true false STEPHANIE L BLOOM 418084 0 110277 0 36525 0 104288 0 21198 0 690372 0 0 0 MARK A OSTRANDER 224249 0 40800 0 1025 0 101145 0 23839 0 391058 0 0 0 FRANK GELORMINI 305148 0 57591 0 2369 0 190918 0 13710 0 569736 0 0 0 FERN PAPALIA TERM 123012 212534 0 11637 0 15193 0 9501 0 7189 0 256054 0 0 0 MARY ELIZABETH DENO 185281 0 40400 0 3572 0 8468 0 3781 0 241502 0 0 0 NEIL J BRYANT 182666 0 8503 0 197 0 7676 0 13403 0 212445 0 0 0 RICHARD J PALLAMARY 156185 0 8977 0 4047 0 6512 0 13320 0 189041 0 0 0 PATRICIA A COOK 0 150324 0 21069 0 783 0 6936 0 14775 0 193887 0 0 JOHN W CRISANTI MD 290278 0 18693 0 3960 0 10000 0 21878 0 344809 0 0 0 MICHAEL E SMITHTERM 122712 300388 0 0 0 13896 0 7500 0 6830 0 328614 0 0 0 RICHARD C HARTWELL MD 288121 0 0 0 0 0 7500 0 0 0 295621 0 0 0 YESHAVANTH P NAYAK 199196 0 0 0 14741 0 8215 0 19540 0 241692 0 0 0 RICHARD EVERETT TENPENNY JR 199546 0 100 0 5196 0 7858 0 19059 0 231759 0 0 0 MINOO BENGALI 202285 0 0 0 0 0 7505 0 0 0 209790 0 0 0 THOMAS R PERCELLO 0 385821 0 39270 0 286039 0 79401 0 21624 0 812155 0 275357 SEAN R CIELECKI 0 196735 0 0 0 719 0 7344 0 20746 0 225544 0 0 COMPENSATION INFORMATION SCHEDULE J, PART I; QUESTION 1A THE ORGANIZATION'S ADMINISTRATIVE MEDICAL DIRECTOR, MICHAEL E. SMITH, RELOCATED TO THE STATE OF NEW JERSEY FOR COMMUNITY MEDICAL CENTER WORK PURPOSES. IN ORDER TO FACILITATE THE RELOCATION OF HIS PRIMARY RESIDENCE, THE ORGANIZATION PROVIDED HIM WITH A HOUSING ALLOWANCE IN THE AMOUNT OF $10,332 WHICH WAS INCLUDED IN HIS 2012 FORM W-2, BOX 5 AS TAXABLE MEDICARE WAGES. COMPENSATION INFORMATION SCHEDULE J, PART I; QUESTION 4B THE AMOUNT REFLECTED IN COLUMN B(III) FOR THE FOLLOWING INDIVIDUAL INCLUDES PARTICIPATION IN A BARNABAS HEALTH INTERNAL REVENUE CODE SECTION 457(F) PLAN (NON-QUALIFIED DEFERRED COMPENSATION PLAN). THE AMOUNT OUTLINED HEREIN WAS INCLUDED IN THE INDIVIDUAL'S 2012 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES: THOMAS R. PERCELLO, $275,357, AS THE AMOUNT WAS NO LONGER SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. THE DEFERRED COMPENSATION AMOUNT IN COLUMN C FOR THE FOLLOWING INDIVIDUALS INCLUDES UNVESTED BENEFITS IN AN INTERNAL REVENUE CODE SECTION 457(F) PLAN (NON-QUALIFIED DEFERRED COMPENSATION PLAN) WHICH ARE SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. ACCORDINGLY, THE INDIVIDUALS MAY NEVER ACTUALLY RECEIVE THIS UNVESTED BENEFIT AMOUNT. THE AMOUNTS OUTLINED HEREIN WERE NOT INCLUDED IN EACH INDIVIDUAL'S 2012 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES: STEPHANIE L. BLOOM, $95,058; MARK A. OSTRANDER, $91,104; FRANK GELORMINI, $180,918 AND THOMAS R. PERCELLO, $71,712. COMPENSATION INFORMATION CORE FORM, PART VII AND SCHEDULE J, PART I; QUESTION 7 CERTAIN INDIVIDUALS INCLUDED IN SCHEDULE J, PART II RECEIVED A BONUS DURING CALENDAR YEAR 2012 WHICH AMOUNTS WERE INCLUDED IN COLUMN B(II) HEREIN AND IN EACH INDIVIDUAL'S 2012 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES. PLEASE REFER TO THIS SECTION OF THE FORM 990, SCHEDULE J FOR THIS INFORMATION BY PERSON BY AMOUNT. COMPENSATION INFORMATION SCHEDULE J, PART II, COLUMN F THE AMOUNT REPORTED IN SCHEDULE J, PART II, COLUMN F FOR THE FOLLOWING INDIVIDUAL INCLUDES VESTED BENEFITS IN AN INTERNAL REVENUE CODE SECTION 457(F) PLAN (NON-QUALIFIED DEFERRED COMPENSATION PLAN) BECAUSE THE AMOUNT WAS NO LONGER SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. THIS AMOUNT WAS REPORTED IN SCHEDULE J, PART II, COLUMN C AS RETIREMENT AND OTHER DEFERRED COMPENSATION ON PRIOR YEAR'S FORMS 990. THIS AMOUNT WAS TREATED AS TAXABLE INCOME AND REPORTED ON THE INDIVIDUAL'S 2012 FORM W-2, BOX 5 AS TAXABLE MEDICARE WAGES: THOMAS R. PERCELLO, $275,357. KAREN B TORTORELLI FAMILY MEMBER OF OFFICER 54479 COMMUNITY MEDICAL CTR EMPLOYEE false SHARON A HENNESSEY FAMILY MEMBER OF OFFICER 15909 COMMUNITY MEDICAL CTR EMPLOYEE false SHERYL L MCGINLEY FAMILY MEMBER OF OFFICER 57994 COMMUNITY MEDICAL CTR EMPLOYEE false COMMUNITY BENEFIT STATEMENT CORE FORM, PART III BACKGROUND ========== COMMUNITY MEDICAL CENTER ("CMC") IS A GENERAL MEDICAL AND SURGICAL HOSPITAL. CMC IS RECOGNIZED BY THE IRS AS AN INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, CMC PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. MOREOVER, CMC OPERATES CONSISTENTLY WITH THE FOLLOWING CRITERIA OUTLINED IN IRS REVENUE RULING 69-545: 1. CMC PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUAL'S REGARDLESS OF ABILITY TO PAY, INCLUDING CHARITY CARE, SELF-PAY, MEDICARE AND MEDICAID PATIENTS; 2. CMC OPERATES AN ACTIVE EMERGENCY ROOM FOR ALL PERSONS WHICH IS OPEN 24 HOURS A DAY, 7 DAYS A WEEK, 365 DAYS PER YEAR; 3. CMC MAINTAINS AN OPEN MEDICAL STAFF, WITH PRIVILEGES AVAILABLE TO ALL QUALIFIED PHYSICIANS; 4. CONTROL OF CMC RESTS WITH ITS BOARD OF TRUSTEES AND THE BOARD OF TRUSTEES OF BARNABAS HEALTH, INC. BOTH BOARDS ARE COMPRISED OF INDEPENDENT CIVIC LEADERS AND OTHER PROMINENT MEMBERS OF THE COMMUNITY; AND 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 CMC, AS SHOWN THROUGH THE FACTORS OUTLINED ABOVE AND OTHER INFORMATION CONTAINED HEREIN, CLEARLY DEMONSTRATE THE HOSPITAL PROVIDES SUBSTANTIAL COMMUNITY BENEFIT AND THAT THE USE AND CONTROL OF CMC IS 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. CMC'S SOLE CORPORATE MEMBER IS BARNABAS HEALTH, INC. ("BH"), A TAX-EXEMPT NEW JERSEY NON-PROFIT PARENT CORPORATION WHICH CONTROLS A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM CONSISTING OF A GROUP OF AFFILIATED HEALTHCARE ORGANIZATIONS. THIS INTEGRATED NETWORK OF HEALTHCARE PROVIDERS THROUGHOUT THE STATE OF NEW JERSEY PROVIDES SUBSTANTIAL COMMUNITY BENEFIT. THE SOLE MEMBER OR STOCKHOLDER OF EACH ENTITY IS EITHER BH OR ANOTHER BH AFFILIATE CONTROLLED OR OWNED BY BH. CMC, LIKE ITS CORPORATE PARENT IS A NOT-FOR-PROFIT ORGANIZATION. BH IS THE LARGEST MULTI-HOSPITAL SYSTEM IN NEW JERSEY AND PROVIDES SUBSTANTIAL COMMUNITY BENEFIT. BH CONSISTS OF FREE-STANDING ACUTE CARE HOSPITALS, A FREE-STANDING PSYCHIATRIC HOSPITAL, MEDICARE-CERTIFIED HOME HEALTHCARE AND HOSPICE PROGRAMS, MULTI-SPECIALTY AMBULATORY CARE FACILITIES, PRIMARY CARE CENTERS, OUTPATIENT BEHAVIORAL HEALTH CENTERS, AND OTHER ENTITIES. BH PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF ABILITY TO PAY. MOREOVER, BH PROVIDES HEALTHCARE SERVICES TO PATIENTS WHO MEET CERTAIN CRITERIA DEFINED BY THE NEW JERSEY DEPARTMENT OF HEALTH AND SENIOR SERVICES WITHOUT CHARGE OR AT AMOUNTS LESS THAN ESTABLISHED RATES. BH MAINTAINS RECORDS TO IDENTIFY AND MONITOR THE AMOUNT OF CHARITY CARE IT PROVIDES. THESE RECORDS INCLUDE THE AMOUNT OF CHARGES FOREGONE FOR SERVICES AND SUPPLIES FURNISHED UNDER ITS CHARITY CARE POLICY. HOSPITAL STATISTICAL INFORMATION ================================ CMC IS A NON-PROFIT GENERAL MEDICAL AND SURGICAL HOSPITAL LOCATED IN TOMS RIVER, OCEAN COUNTY, NEW JERSEY. CMC IS COMPRISED OF 587 ADULT BEDS, A 32 BASSINET NURSERY AND 25 TRANSITIONAL CARE (SKILLED NURSING) BEDS. DURING 2012, CMC SERVICED NEARLY 27,000 INPATIENTS AND OVER 95,000 EMERGENCY ROOM VISITS. THE EMERGENCY ROOM IS OPEN TO ALL INDIVIDUALS 7 DAYS A WEEK, 24 HOURS PER DAY, 365 DAYS PER YEAR. MISSION STATEMENT =============== COMMUNITY MEDICAL CENTER, A NOT-FOR-PROFIT ACUTE CARE HOSPITAL SERVING THE OCEAN COUNTY REGION, IS COMMITTED TO ENHANCING THE OVERALL HEALTH STATUS OF THE COMMUNITY BY PROVIDING THE HIGHEST QUALITY HEALTHCARE AND RELATED SERVICES INCLUDING CONTINUING MEDICAL EDUCATION FOR OUR MEDICAL STAFF. IN COLLABORATION WITH OUR MEDICAL STAFF AND IN PARTNERSHIP WITH BARNABAS HEALTH, WE STRIVE TO EXCEED PATIENTS' EXPECTATIONS IN A PROGRESSIVE ORGANIZATIONAL ENVIRONMENT WHICH EMPHASIZES COMMITMENT, COMPETENCE, COLLABORATION, COMMUNICATION AND COMPASSION. THROUGH DEDICATION, CLINICAL EXCELLENCE, PATIENT SATISFACTION, AND EDUCATION, WE WILL ENSURE SAFE AND COMPREHENSIVE CARE FOR GENERATIONS TO COME. ACCOMPLISHMENTS/MILESTONES/RECOGNITIONS/AWARDS ============================================== CMC HAS BEEN RECOGNIZED WITH DISTINGUISHED AWARDS FOR CLINICAL EXCELLENCE. SOME OF THESE ARE LISTED BELOW: - THE HOSPITAL WAS SURVEYED BY THE JOINT COMMISSION AND RECEIVED ITS TRIENNIAL RE-ACCREDITATION FOR THE HOSPITAL, HOME CARE AND HOSPICE PROGRAMS. - THE HOSPITAL IS THE RECIPIENT OF THE JOINT COMMISSION - GOLD SEAL OF APPROVAL FOR ACUTE CORONARY SYNDROME, TOTAL JOINT REPLACEMENT - HIP & KNEE, AND STROKE CARE. - THE NEW JERSEY DEPARTMENT OF HEALTH DESIGNATED CMC AS A PRIMARY STROKE CENTER. - THE COMMISSION ON CANCER OF THE AMERICAN COLLEGE OF SURGEONS DESIGNATED CMC AS A COMMUNITY HOSPITAL COMPREHENSIVE CANCER PROGRAM. THE PROGRAM HAS HAD THIS DISTINCTION SINCE 1986. - THE AMERICAN COLLEGE OF RADIOLOGY RENEWED ACCREDITATIONS FOR MAMMOGRAPHY, ULTRASOUND, NUCLEAR MEDICINE, CT SCAN, MRI AND RADIATION ONCOLOGY. - HEALTHGRADES AWARDS - AMERICA'S 50 BEST HOSPITALS: 2011, 2012, 2013 - DISTINGUISHED HOSPITAL AWARD FOR CLINICAL EXCELLENCE SINCE 2005 - GYNECOLOGIC SURGERY EXCELLENCE AWARD - GASTROINTESTINAL SURGERY EXCELLENCE AWARD - MATERNITY CARE EXCELLENCE AWARD - ORTHOPEDIC CARE EXCELLENCE AWARD - PULMONARY CARE EXCELLENCE AWARD - CORONARY INTERVENTIONAL EXCELLENCE AWARD - FIVE-STAR FOR TREATMENT OF HEART ATTACK - FIVE-STAR FOR TREATMENT OF HEART FAILURE - FIVE STAR RATING FOR CRITICAL CARE - CMC RECEIVED AN "A" IN THE HOSPITAL SAFETY SCORE FROM THE LEAPFROG GROUP - CMC ASSOCIATES AND MEDICAL STAFF COLLECTED NEARLY 16,000 POUNDS OF FOOD AND DONATED IT TO AREA FOOD BANKS IN OCEAN COUNTY. OVER 88,000 POUNDS OF FOOD HAS BEEN DONATED TO THOSE IN NEED DURING THE PAST 5 YEARS. - THE THIRD ANNUAL BACK TO SCHOOL SUPPLIES DRIVE SPONSORED BY CMC EMPLOYEES COLLECTED OVER 200 BACKPACKS ALONG WITH CARTONS OF CRAYONS, MARKERS, PENCILS, PENS, CALCULATORS, FILLER PAPER, NOTEBOOKS, HIGHLIGHTERS, LUNCHBOXES, ETC., FOR CHILDREN IN NEED. - COMMUNITY MEDICAL CENTER'S WOMEN'S IMAGING CENTER WAS HONORED BY NJCEED (NEW JERSEY CANCER EDUCATION AND EARLY DETECTION PROGRAM) FOR ITS DEDICATION AND SERVICES OF PROVIDING CANCER SCREENING SERVICES TO THE RESIDENTS OF OCEAN COUNTY WHO ARE IN NEED. - THE EMERGENCY DEPARTMENT TREATS OVER 95,000 ADULT AND PEDIATRIC EMERGENCY PATIENTS ANNUALLY. - THE J. PHILLIP CITTA REGIONAL CANCER CENTER OFFERS THE RAPID ARC LINEAR ACCELERATOR AND THE CYBERKNIFE TO OCEAN COUNTY; OFFERING AREA RESIDENTS ACCESS TO THE LATEST GENERATION OF CANCER FIGHTING TECHNOLOGIES. CENTERS OF EXCELLENCE ===================== CMC'S RECOGNIZED MEDICAL SERVICES CENTERS OF EXCELLENCE INCLUDE, BUT ARE NOT LIMITED TO, THE FOLLOWING: 1. J. PHILLIP CITTA REGIONAL CANCER CENTER CMC OFFERS A DEDICATED INPATIENT ONCOLOGY UNIT, RADIATION ONCOLOGY CENTER, INFUSION CENTER AND A FULL RANGE OF SUPPORT GROUPS AND SERVICES FOR PATIENTS AND THEIR FAMILIES. CMC'S DEDICATED STAFF OF PHYSICIANS, NURSES AND ALLIED HEALTH PROFESSIONALS ADDRESS THE NEEDS OF PATIENTS AND FAMILIES FACING A CANCER DIAGNOSIS AND TREATMENT. THE CANCER PROGRAM IS A MEMBER OF THE RENOWNED PENN CANCER NETWORK IN PHILADELPHIA AND IS ACCREDITED BY THE AMERICAN COLLEGE OF SURGEONS. PROGRAMS AND SERVICES OF THIS CENTER INCLUDE: - MEDICAL ONCOLOGY -- A MULTIDISCIPLINARY TEAM APPROACH ENSURES THE PHYSICAL AND PSYCHOSOCIAL NEEDS OF PATIENTS AND THEIR FAMILIES ARE ADDRESSED. THE TEAM INCLUDES BOARD CERTIFIED PHYSICIANS, ONCOLOGY CERTIFIED NURSES, LICENSED CLINICAL SOCIAL WORKERS, CASE MANAGERS, DIETICIANS, AND HOME CARE PROFESSIONALS WORKING TOGETHER TO PROVIDE HIGH QUALITY CARE IN BOTH THE INPATIENT AND OUTPATIENT SETTINGS. - RADIATION ONCOLOGY -- FROM SOPHISTICATED RAPID ARC LINEAR ACCELERATOR TO THE CYBERKNIFE, THE DEPARTMENT OF RADIATION ONCOLOGY OFFERS THE HIGHEST STANDARD OF CARE AND IS ACCREDITED BY THE AMERICAN COLLEGE OF RADIOLOGY. THE RADIATION ONCOLOGY TEAM CONSISTS OF BOARD CERTIFIED RADIATION ONCOLOGISTS AND PHYSICISTS, NURSES WHO SPECIALIZE IN ONCOLOGY, REGISTERED RADIATION THERAPISTS, AND LICENSED CLINICAL SOCIAL WORKERS. - THE BREAST CARE PROGRAM -- THE BREAST CARE PROGRAM HELPS MEET THE SPECIAL NEEDS OF WOMEN UNDERGOING BREAST CANCER DIAGNOSIS, SURGERY, TREATMENT AND FOLLOW-UP. WOMEN ARE SEEN BY A NURSE CONSULTANT TO ADDRESS THEIR EDUCATIONAL, EMOTIONAL, AND PRACTICAL NEEDS BOTH PRE-OPERATIVELY AND POSTOPERATIVELY. COMMUNITY BENEFIT STATEMENT; CONTINUED CORE FORM, PART III - COMPLEMENTARY SERVICES -- CMC PROVIDES SEVERAL COMPLEMENTARY SERVICES INCLUDING MASSAGE THERAPY PROVIDED BY CERTIFIED MASSAGE THERAPISTS, RELAXATION TRAINING, AND GUIDED IMAGERY BY SOCIAL WORKERS, PET THERAPY, ART THERAPY PROGRAMS AND REIKI THERAPY - THERAPEUTIC TOUCH TO REDUCE STRESS AND PROMOTE RELAXATION - BY CERTIFIED REIKI THERAPISTS. RADIATION ONCOLOGY PATIENTS ALSO RECEIVE FREE TRANSPORTATION SERVICES IF NEED BE. - ONCOLOGY DATA CENTER -- THE ONCOLOGY DATA CENTER/TUMOR REGISTRY PROVIDES ESSENTIAL RESEARCH AND INFORMATION. DATA IS PROVIDED AS MANDATED TO THE NEW JERSEY DEPARTMENT OF HEALTH AS WELL AS THE NATIONAL CANCER DATA BASE. DATA OBTAINED FROM THE REGISTRY IS USED TO ANALYZE VARIOUS TREATMENT PROGRAMS AND IS USED FOR USE IN CANCER RESEARCH, MEDICAL EDUCATION, FUNDING APPLICATIONS AND MEDICAL PUBLICATIONS. - ONCOLOGY RESEARCH - CLINICAL TRIALS ARE OFFERED THROUGH CMC'S AFFILIATION WITH THE PENN CANCER NETWORK. CMC PROVIDES PATIENTS ACCESS TO NATIONAL AND REGIONAL CLINICAL RESEARCH STUDIES, IN THE TREATMENT OF CANCER, CHEMOPREVENTION AND SUPPORTIVE CARE. - SUPPORT SERVICES -- PSYCHO-SOCIAL SERVICES ARE PROVIDED BY LICENSED CLINICAL SOCIAL WORKERS. SUPPORTIVE COUNSELING, EDUCATION, REFERRAL SERVICES AND SUPPORT GROUPS ARE ALL AVAILABLE FOR PATIENTS AND FAMILIES. - ONCOLOGY NURSE NAVIGATOR - AVAILABLE TO ASSIST LUNG CANCER PATIENTS STREAMLINE THE HEALTHCARE PROCESS AND MEET INDIVIDUAL'S MEDICAL, PSYCHO-SOCIAL AND EMOTIONAL NEEDS 2. FIRST MOMENTS MATERNITY SERVICES THE MATERNITY PROGRAM SPECIALIZES IN A TOTAL CONCEPT OF CARE FOR MOTHERS AND THEIR BABIES - WHERE ADVANCED TECHNOLOGY AND TRAINING ARE ENHANCED BY THE HUMAN TOUCH OF DEDICATED HEALTHCARE PROFESSIONALS. THE UNIT IS STAFFED BY HIGHLY SKILLED PHYSICIANS, MIDWIVES AND NURSES. IN ADDITION, ALL OF CMC'S NURSES ARE CERTIFIED IN NEONATAL RESUSCITATION AND LACTATION RESOURCE TRAINED. THE PROGRAM OFFERS 24/7 NEONATAL COVERAGE. THE MODERN STATE-OF-THE-ART UNIT OFFERS MOMS-TO-BE THE MOST ADVANCED MATERNAL AND CHILD HEALTH TECHNOLOGY IN A COMFORTABLE AND SAFE ENVIRONMENT. THE LABOR-DELIVERY RECOVERY AND POSTPARTUM ROOMS COMBINE THE LATEST TECHNOLOGY WITH A SOOTHING HOME-LIKE DECOR. THE UNIT ALSO INCLUDES A SPECIAL CARE NURSERY STAFFED BY A NEONATOLOGIST AND CERTIFIED NEONATAL NURSES TO CARE FOR BABIES WITH SPECIAL NEEDS, AND A FULLY-EQUIPPED OPERATING SUITE FOR CESAREAN BIRTHS OR HIGH-RISK VAGINAL DELIVERIES. PROGRAMS AND SERVICES OF THIS CENTER INCLUDE: - EXTENSIVE CHILDBIRTH PREPARATION AND INFANT CARE CLASSES - COMPREHENSIVE PARENTING SUPPORT AND EDUCATION - COMPREHENSIVE PRE AND POSTNATAL CARE - SPECIALLY DESIGNED LABOR-DELIVERY-RECOVERY ROOMS WITH JACUZZIS - 24-HOUR ANESTHESIA AND PAIN MANAGEMENT THERAPIES - SUPERIOR LACTATION EDUCATION AND SUPPORT - SPECIAL CARE NURSERY - 24-HOUR NEONATAL COVERAGE - LEVEL II SPECIAL CARE NURSERY, FOR PREMATURE NEWBORNS 3. THE SPINE INSTITUTE / THE JOINT INSTITUTE A MULTI-DISCIPLINARY TEAM OF NURSES, THERAPISTS, ORTHOPEDIC AND NEUROSURGEONS WORK TO PROVIDE A COMPREHENSIVE PLANNED COURSE OF TREATMENT WITH ACTIVE INVOLVEMENT OF THE PATIENT IN THEIR TREATMENT AND RECOVERY. MEDICAL AND COMMUNITY SERVICES ============================== ADDITIONAL MEDICAL SERVICES --------------------------- CONSISTENT WITH REVENUE RULING 69-545, ALL QUALIFIED PHYSICIANS ARE ELIGIBLE FOR MEDICAL STAFF PRIVILEGES AT CMC. CMC HAD OVER 750 PHYSICIANS ON ITS MEDICAL STAFF DURING 2012, INCLUDING, BUT NOT LIMITED TO, THE FOLLOWING MEDICAL SPECIALTIES: - ANESTHESIOLOGY - EMERGENCY/OUTPATIENT MEDICINE - FAMILY MEDICINE - MEDICINE - CARDIOLOGY - DERMATOLOGY - ENDOCRINOLOGY - GASTROENTEROLOGY - GERIATRICS - INFECTIOUS DISEASES - NEPHROLOGY - NEUROLOGY - HEMATOLOGY/ONCOLOGY - PHYSICAL MEDICINE & REHABILITATION - PSYCHIATRY - PULMONARY - OBSTETRICS & GYNECOLOGY - OTOLARYNGOLOGY, HEAD & NECK SURGERY - OPHTHALMOLOGY - ORTHOPEDICS - PATHOLOGY & LABORATORY - PEDIATRICS - PODIATRY - RADIOLOGY - SURGERY - NEUROSURGERY - ORAL & MAXILLOFACIAL SURGERY - PLASTIC SURGERY - THORACIC SURGERY - VASCULAR SURGERY - PEDIATRIC SURGERY - UROLOGY COMMUNITY SERVICE CENTERS ------------------------- CMC IS COMMITTED TO KEEPING ITS COMMUNITY HEALTHY, AND OFFERS AN EXTENSIVE ARRAY OF COMMUNITY OUTREACH PROGRAMS AND SERVICES FOR THE BENEFIT OF THE COMMUNITY IT SERVES. CMC OPERATES THE FOLLOWING CENTERS DESIGNED TO PROMOTE HEALTH AND HEALTH AWARENESS FOR THE COMMUNITY. - THE LIGHTHOUSE ACTS AS A SINGLE LOCATION FOR REFERRAL FOR ALL TYPES OF SERVICES, WHETHER PROVIDED BY THE MEDICAL CENTER OR SOME OTHER PROVIDER IN THE COMMUNITY. - THE CENTER FOR KIDS AND FAMILY, LIKE THE LIGHTHOUSE, SERVES AS A CENTRAL REFERRAL POINT FOR FAMILIES IN NEED. IT OFFERS AN ARRAY OF PROGRAMS FOR AREA FAMILIES AND CHILDREN INCLUDING COMMUNITY EDUCATION PROGRAMS, SUPPORT GROUPS AND SCHOOL BASED INITIATIVES. - CENTER FOR DIABETES EDUCATION OFFERS EDUCATION AND SUPPORT TO PEOPLE, OF ALL AGES, WITH DIABETES, TO THOSE WHO CARE FOR AND ABOUT THEM, AND TO THE COMMUNITY AT LARGE FOR PREVENTION EFFORTS. NURSES, WHO ARE CERTIFIED DIABETES EDUCATORS AND NUTRITIONISTS, PROVIDE EDUCATIONAL SESSIONS TO MEET THE NEEDS OF THOSE WITH DIABETES. EDUCATION INCLUDES A SELF-MANAGEMENT SERIES, A MONTHLY SUPPORT GROUP, AN INSULIN PUMP SUPPORT GROUP, INDIVIDUAL EDUCATION FOR DIABETES MANAGEMENT, WEIGHT MANAGEMENT AND COMMUNITY EDUCATION. - THE CENTER FOR WOMEN'S HEALTH PROVIDES A COMPLETE RANGE OF EDUCATIONAL, PREVENTIVE, AND SUPPORT SERVICES FOR WOMEN OF ALL AGES. THE SERVICES INCLUDE WELLNESS PROGRAMS, PHYSICIAN LECTURES AND SUPPORT GROUPS. - THE CENTER FOR COMMUNITY HEALTH EDUCATION PROVIDES NEEDED EDUCATIONAL, PREVENTATIVE AND SCREENING SESSIONS FOR THE PUBLIC. WE HAVE PARTICIPATED IN MANY SPEAKING ENGAGEMENTS FOR THE COMMUNITY, PARTICIPATED IN HEALTH FAIRS AND EXTERNAL PROGRAMS THAT INCLUDE UPDATES ON HEALTH ISSUES, CONDUCTING SCREENINGS, FACILITATING SUPPORT GROUPS, AND OTHER COMMUNITY FUNCTIONS AND ACTIVITIES. - COMMUNITY MEDICAL CENTER'S VOLUNTEER RESOURCE CENTER PROVIDES HOSPITAL DEPARTMENTS WITH AN ACTIVE VOLUNTEER NETWORK. VOLUNTEERS GIVE THEIR SUPPORT IN SEVERAL WAYS, FROM DELIVERING FLOWERS AND MAIL TO FILING OR ANSWERING PHONES. NEARLY 128,000 HOURS OF SERVICES WERE PROVIDED THROUGHOUT THE YEAR. CMC PROVIDES NUMEROUS MEDICAL SCREENING AND PREVENTIVE HEALTH PROGRAMS TO THE COMMUNITY IN FURTHERANCE OF ITS TAX EXEMPT PURPOSES INCLUDING, BUT NOT LIMITED TO, THE FOLLOWING: MEDICAL SCREENINGS ------------------ - BLOOD PRESSURE SCREENING - CARDIAC AND CONCUSSION SCREENINGS FOR YOUNG ATHLETES - FREE CLINICAL BREAST EXAMINATIONS, MAMMOGRAMS, CERVICAL EXAMS AND PAP SMEARS TO UNINSURED WOMEN BETWEEN THE AGES OF 40 AND 64 - HEALTH & WELLNESS PROGRAMS - DIABETES SCREENINGS - SKIN CANCER SCREENINGS - PROSTATE CANCER SCREENINGS COMMUNITY EDUCATION ------------------- THE HOSPITAL'S ONGOING EFFORTS TO EDUCATE THE COMMUNITY WITH RESPECT TO GENERAL HEALTH AWARENESS, ISSUES AND PUBLIC SAFETY, HEALTHCARE ACTIVITIES, SCREENINGS, EDUCATION AND PROGRAMS IS ADVANCED THROUGH PUBLICATIONS, NEWS BULLETINS, NEWSLETTERS, WEB POSTINGS AND OTHER PUBLICATIONS PRODUCED BY THE HOSPITAL. ALL PATIENTS ARE ASKED REGARDING LIVING WILLS AND ADVANCED DIRECTIVES. CMC PROVIDES NUMEROUS LECTURES, SEMINARS AND OTHER EDUCATIONAL PROGRAMS TO THE COMMUNITY IN FURTHERANCE OF ITS TAX EXEMPT PURPOSES INCLUDING, BUT NOT LIMITED TO, THE FOLLOWING: 1. CENTER FOR DIABETES EDUCATION - DIABETES SELF-MANAGEMENT SERIES - ONE-ON-ONE COUNSELING SERVICES - SUPPORT GROUPS INCLUDING 2 DIABETES SUPPORT GROUPS & AN INSULIN-PUMP SUPPORT GROUP - COMMUNITY OUTREACH - DIABETES EXPO - WEIGHT MANAGEMENT 2. CENTER FOR KIDS & FAMILY - SAFE SITTER PROGRAM - HOME ALONE - PARENTING - STRESS MANAGEMENT - FITNESS AND NUTRITION - MOM'S SUPPORT GROUP - EATING DISORDER SUPPORT - BEREAVEMENT FOR CHILDREN SUPPORT 3. PEDIATRIC INFORMATION - BICYCLE AND HELMET SAFETY - CAR SEAT USE AND SELECTION - BABY & CHILDREN'S FAIR FOR EXPECTANT AND NEW MOMS, DADS AND GRANDPARENTS AND FAMILIES - SELF DEFENSE INSTRUCTION (AGES 10 - 14) - PEDIATRIC OUTREACH EDUCATION - SPORTS MEDICINE PROGRAMS: MATTHEW J. MORAHAN CONCUSSION & CARDIAC SCREENING 4. WOMEN'S HEALTH - GET YOUR RED ON - INCREASE AWARENESS ABOUT HEART DISEASE IN WOMEN - WOMEN'S HEALTH WEEK - PHYSICIAN LECTURES & HEALTH SCREENINGS - BRICK SENIORS CLUB - BREAST AND CERVICAL EDUCATION - HEALTH FAIR - BABY & CHILDREN'S FAIR FOR EXPECTANT AND NEW MOMS - BREAST HEALTH - FITNESS - MENOPAUSE - NUTRITION - OSTEOPOROSIS - PMS - STRESS MANAGEMENT 5. VARIOUS HEALTH FAIRS - COLORECTAL CANCER AWARENESS FAIR - HEART HEALTH FAIR - PAIN AWARENESS HEALTH FAIR - TOMS RIVER OLDER ADULTS HEALTH FAIR - NEUROSCIENCE HEALTH FAIR COMMUNITY BENEFIT STATEMENT; CONTINUED CORE FORM, PART III 6. THE LIGHTHOUSE - OLDER ADULTS - TAKE CONTROL OF YOUR HEALTH, A CHRONIC DISEASE MANAGEMENT PROGRAM - REVIEW YOUR MEDICATIONS - SELF DEFENSE INSTRUCTION - EXERCISE AND BALANCE FOR OLDER ADULTS - BLOOD PRESSURE SCREENING - AARP DRIVER'S SAFETY PROGRAM - AARP INCOME TAX ASSISTANCE - CHAIR YOGA - DRIVE DEFENSIVELY CLASSES - HEALTH EASE - LOOK GOOD, FEEL BETTER - INSURANCE COUNSELING - PRESCRIPTION DISCOUNT PROGRAM 7. OTHER EDUCATIONAL SESSIONS/PROGRAMS: - STROKE AWARENESS PROGRAM - SKIN CANCER AWARENESS PROGRAM - SURGICAL WEIGHT LOSS EDUCATION SESSION - GUYS NIGHT OUT - MEN'S HEALTH EVENT 8. OFFERED FIRE SAFETY HOUSE DEMONSTRATION MODEL TO SCHOOLS AND COMMUNITY FAIRS. 9. CMC'S HEALTH LINE AND NEWBORN TELEVISION CHANNELS WERE DEVELOPED FOR PATIENT AND FAMILY EDUCATION. CMC ALSO DISTRIBUTED PUBLICATIONS TO PROVIDE INFORMATION TO THE COMMUNITY ON HEALTHCARE ISSUES. SUPPORT GROUPS -------------- A PARTIAL LISTING OF PATIENT AND COMMUNITY SUPPORT GROUPS INCLUDES: - APNEA SUPPORT GROUP - BEREAVEMENT SUPPORT GROUP - BLOOD PRESSURE SCREENINGS - BREASTFEEDING SUPPORT GROUP - BREAST HEALTH EDUCATION - COPING WITH CANCER SUPPORT GROUP - CARDIAC REHABILITATION SUPPORT GROUP - CAREGIVERS SUPPORT GROUP - CHILDREN OF AGING PARENTS SUPPORT GROUP - CONGESTIVE HEART FAILURE SUPPORT GROUP - DIABETES SUPPORT - HEART TO HEART SUPPORT GROUP - INSULIN PUMP SUPPORT - LARYNGECTOMY SUPPORT GROUP - LYMPHEDEMA EDUCATION - OCEAN COUNTY BRAIN INJURY SUPPORT GROUP - PARENTS OF CHILDREN WITH DIABETES - PERINATAL BEREAVEMENT SUPPORT GROUP - PROSTATE CANCER SUPPORT GROUP - WEIGHT MANAGEMENT SUPPORT-DIABETES - WOMEN'S HEALTH/PARENT EDUCATION - NU-VOICE - HEAD AND NECK CANCER SUPPORT GROUP - COLORECTAL CANCER SUPPORT GROUP - BREAST CANCER SUPPORT GROUP - SJOGRENS SUPPORT GROUP INSTRUCTIONAL CLASSES AND PROGRAMS ---------------------------------- CMC OFFERS A VARIETY OF LIFESTYLE AND INSTRUCTIONAL CLASSES TO IMPROVE AN INDIVIDUAL'S OVERALL WELL-BEING. THERE IS A FEE ASSOCIATED WITH THESE PROGRAMS. SOME OF THESE PROGRAMS INCLUDE: - CPR: CARDIOPULMONARY RESUSCITATION CLASS - TAI CHI - YOGA CMC OFFERS AN EXTENSIVE ARRAY OF PRENATAL CHILDBIRTH PREPARATION AND PARENTING CLASSES AND SERVICES. THE FOLLOWING COURSES AND SERVICES ARE SOME OF THOSE CURRENTLY OFFERED: - BREASTFEEDING CLASS - GRAND PARENTING - INFANT AND CHILD CPR - LAMAZE REFRESHER SERIES - PREPARED CHILDBIRTH SERIES - PREPARED CHILDBIRTH/LAMAZE SERIES - SIBLING CLASS - WOMEN'S HEATH SEMINARS STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS CORE FORM, PART III; QUESTION 3 EFFECTIVE 12/31/2012, THE ORGANIZATION TRANSFERRED THE ASSETS OF CMC HOME HEALTH, A CERTIFIED HOME HEALTH AGENCY, TO MEGACARE, INC.; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. EFFECTIVE 12/31/2012, THE ORGANIZATION TRANSFERRED THE ASSETS OF VAN DYKE HOSPICE, A DIVISION OF THIS ORGANIZATION, TO SAINT BARNABAS HOSPICE & PALLIATIVE CARE CENTER, INC.; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. OTHER PROGRAM SERVICES CORE FORM, PART III; QUESTION 4D EXPENSES INCURRED IN PROVIDING VARIOUS OTHER MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. PLEASE REFER TO THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT INCLUDED IN SCHEDULE O. DISCLOSURE INFORMATION CORE FORM, PART VI, SECTION A; QUESTIONS 6 & 7 BARNABAS HEALTH, INC. ("BH") IS THE SOLE MEMBER OF THIS ORGANIZATION. BH HAS THE RIGHT TO ELECT THE MEMBERS OF THIS ORGANIZATION'S BOARD OF TRUSTEES AND HAS CERTAIN RESERVED POWERS AS DEFINED IN THIS ORGANIZATION'S BYLAWS. DISCLOSURE INFORMATION CORE FORM, PART VI, SECTION B; QUESTION 11B THE ORGANIZATION IS AN AFFILIATE OF BARNABAS HEALTH ("SYSTEM"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. BARNABAS HEALTH, INC. IS THE PARENT ENTITY OF THE SYSTEM. THE ORGANIZATION'S FEDERAL FORM 990 WAS PROVIDED TO EACH VOTING MEMBER OF THE ORGANIZATION'S GOVERNING BODY (ITS BOARD OF TRUSTEES) PRIOR TO THE FILING WITH THE IRS. IN ADDITION THE BARNABAS HEALTH, INC. AUDIT COMMITTEE ASSUMED THE RESPONSIBILITY TO OVERSEE AND COORDINATE THE FEDERAL FORM 990 PREPARATION AND FILING PROCESS FOR ALL TAX-EXEMPT AFFILIATES OF THE SYSTEM BUT DID NOT PERFORM AN ACTUAL REVIEW OF EACH AFFILIATE FEDERAL FORM 990 WITH THE EXCEPTION OF BARNABAS HEALTH, INC. AS PART OF THE ORGANIZATION'S FEDERAL FORM 990 TAX RETURN PREPARATION PROCESS THE ORGANIZATION HIRED A PROFESSIONAL CPA FIRM WITH EXPERIENCE AND EXPERTISE IN BOTH HEALTHCARE AND NOT-FOR-PROFIT TAX RETURN PREPARATION TO PREPARE THE FEDERAL FORM 990. THE CPA FIRM'S TAX PROFESSIONALS WORKED CLOSELY WITH THE ORGANIZATION'S FINANCE PERSONNEL AND SYSTEM INDIVIDUALS INCLUDING IN HOUSE COUNSEL, EXECUTIVE VICE-PRESIDENT AND CHIEF FINANCIAL OFFICER, VICE PRESIDENT, INTERNAL AUDIT AND VARIOUS OTHER INDIVIDUALS TO OBTAIN THE INFORMATION NEEDED IN ORDER TO PREPARE A COMPLETE AND ACCURATE TAX RETURN. THE CPA FIRM PREPARED A DRAFT FEDERAL FORM 990 AND FURNISHED IT TO THE ORGANIZATION'S INTERNAL WORKING GROUP, INCLUDING THOSE INDIVIDUALS OUTLINED ABOVE FOR THEIR REVIEW. THE ORGANIZATION'S INTERNAL WORKING GROUP REVIEWED THE DRAFT FEDERAL FORM 990 AND DISCUSSED QUESTIONS AND COMMENTS WITH THE CPA FIRM. REVISIONS WERE MADE TO THE DRAFT FEDERAL FORM 990 WHERE NECESSARY AND A FINAL DRAFT WAS FURNISHED BY THE CPA FIRM TO THE ORGANIZATION'S INTERNAL WORKING GROUP FOR FINAL REVIEW AND APPROVAL. A MEETING WAS ALSO HELD TO REVIEW THE FINAL DRAFT OF THE FEDERAL FORM 990 WITH THE CHAIRPERSON OF THE ORGANIZATION'S FINANCE COMMITTEE AND OTHER INDIVIDUALS FOR REVIEW AND APPROVAL. FOLLOWING THIS REVIEW THE FINAL FEDERAL FORM 990 WAS PROVIDED TO EACH VOTING MEMBER OF THE ORGANIZATION'S GOVERNING BODY PRIOR TO THE FILING WITH THE IRS. DISCLOSURE INFORMATION CORE FORM, PART VI, SECTION B; QUESTION 12 THE ORGANIZATION HAS A WRITTEN CONFLICT OF INTEREST POLICY. THE ORGANIZATION REGULARLY MONITORS AND ENFORCES COMPLIANCE WITH ITS CONFLICT OF INTEREST POLICY. THIS CONFLICT OF INTEREST POLICY REQUIRES THAT A CONFLICT OF INTEREST FORM CONSISTENT WITH BEST GOVERNANCE PRACTICES AND INTERNAL REVENUE SERVICE GUIDELINES BE CIRCULATED TO OFFICERS, TRUSTEES AND KEY EMPLOYEES ANNUALLY. IN A SITUATION IN WHICH A TRUSTEE DISCLOSES AN INTEREST THAT COULD GIVE RISE TO A CONFLICT, THE TRUSTEE'S POTENTIAL CONFLICT IS REFERRED TO THE CORPORATE NOMINATING AND GOVERNANCE COMMITTEE WHICH EVALUATES THE CONFLICT AND ITS POTENTIAL IMPACT ON THE TRUSTEE'S PARTICIPATION ON THE BOARD OR ON CERTAIN ISSUES WHICH MAY COME BEFORE THE BOARD. AS APPROPRIATE THE COMMITTEE WILL TAKE ACTION TO ADDRESS THE CONFLICT. DISCLOSURE INFORMATION CORE FORM, PART VI, SECTION B; QUESTION 15 THE ORGANIZATION IS AN AFFILIATE OF BARNABAS HEALTH; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. BARNABAS HEALTH, INC. ("BH") IS THE PARENT ENTITY OF BARNABAS HEALTH. BH'S BOARD OF TRUSTEES MAINTAINS AN EXECUTIVE COMPENSATION COMMITTEE ("COMMITTEE"). THE COMMITTEE HAS ADOPTED A WRITTEN EXECUTIVE COMPENSATION PHILOSOPHY WHICH IT FOLLOWS WHEN IT REVIEWS AND APPROVES OF THE COMPENSATION AND BENEFITS OF BH'S SENIOR MANAGEMENT, INCLUDING THE RETIRED PRESIDENT/CHIEF EXECUTIVE OFFICER, CURRENT PRESIDENT/CHIEF EXECUTIVE OFFICER, BOTH THE RETIRED AND CURRENT EXECUTIVE VICE PRESIDENT OPERATIONS AND THE EXECUTIVE VICE PRESIDENT/CHIEF FINANCIAL OFFICER. THE COMPENSATION COMMITTEE ALSO REVIEWS THE COMPENSATION AND BENEFITS OF OTHER KEY OFFICERS AND KEY EMPLOYEES OF BARNABAS HEALTH; INCLUDING, WITHOUT LIMITATION, THE EXECUTIVE DIRECTORS OF BARNABAS HEALTH HOSPITALS AND MEDICAL CENTERS. THE COMPENSATION COMMITTEE, WHICH IS REQUIRED BY THE CORPORATION'S BYLAWS TO BE COMPRISED SOLELY OF INDEPENDENT TRUSTEES, SEEKS GUIDANCE AND SUBSTANTIATION FROM A NATIONALLY RECOGNIZED COMPENSATION CONSULTANT. THE COMMITTEE REVIEWS THE "TOTAL COMPENSATION" OF THE INDIVIDUALS WHICH IS INTENDED TO INCLUDE BOTH CURRENT AND DEFERRED COMPENSATION AND ALL EMPLOYEE BENEFITS, BOTH QUALIFIED AND NON-QUALIFIED. THE COMMITTEE'S REVIEW IS DONE ON AT LEAST AN ANNUAL BASIS AND ENSURES THAT THE "TOTAL COMPENSATION" OF SENIOR MANAGEMENT OF THE ORGANIZATION IS REASONABLE. THE ACTIONS TAKEN BY THE COMMITTEE ENABLE THE ORGANIZATION TO RECEIVE THE REBUTTABLE PRESUMPTION OF REASONABLENESS FOR PURPOSES OF INTERNAL REVENUE CODE SECTION 4958 WITH RESPECT TO THE TOTAL COMPENSATION OF CERTAIN MEMBERS OF THE SENIOR MANAGEMENT TEAM, INCLUDING THE RETIRED PRESIDENT/CHIEF EXECUTIVE OFFICER, CURRENT PRESIDENT/CHIEF EXECUTIVE OFFICER, BOTH THE RETIRED AND CURRENT EXECUTIVE VICE PRESIDENT OPERATIONS AND THE EXECUTIVE VICE PRESIDENT/CHIEF FINANCIAL OFFICER. THE THREE FACTORS WHICH MUST BE SATISFIED IN ORDER TO RECEIVE THE REBUTTABLE PRESUMPTION OF REASONABLENESS ARE THE FOLLOWING: 1. THE COMPENSATION ARRANGEMENT IS APPROVED IN ADVANCE BY AN "AUTHORIZED BODY" OF THE APPLICABLE TAX-EXEMPT ORGANIZATION WHICH IS COMPOSED ENTIRELY OF INDIVIDUALS WHO DO NOT HAVE A "CONFLICT OF INTEREST" WITH RESPECT TO THE COMPENSATION ARRANGEMENT; 2. THE AUTHORIZED BODY OBTAINED AND RELIED UPON "APPROPRIATE DATA AS TO COMPARABILITY" PRIOR TO MAKING ITS DETERMINATION; AND 3. THE AUTHORIZED BODY "ADEQUATELY DOCUMENTED THE BASIS FOR ITS DETERMINATION" CONCURRENTLY WITH MAKING THAT DETERMINATION. THE COMMITTEE IS COMPRISED OF MEMBERS OF THE BOARD OF TRUSTEES EACH OF WHO ARE INDEPENDENT AND ARE FREE FROM ANY CONFLICTS OF INTEREST. THE COMMITTEE RELIED UPON APPROPRIATE COMPARABLE DATA; SPECIFICALLY THE COMMITTEE OBTAINED A WRITTEN COMPENSATION STUDY FROM AN INDEPENDENT FIRM WHICH SPECIALIZES IN THE REVIEWING OF HOSPITAL AND HEALTHCARE SYSTEM EXECUTIVE COMPENSATION AND BENEFITS THROUGHOUT THE UNITED STATES. THIS STUDY USED COMPARABLE GEOGRAPHIC AND DEMOGRAPHIC MARKET DATA INCLUDING BUT NOT LIMITED TO SIMILARLY SIZED HEALTHCARE SYSTEMS AND HOSPITALS, # OF LICENSED BEDS AND NET PATIENT SERVICE REVENUE. THE COMMITTEE ADEQUATELY DOCUMENTED ITS BASIS FOR ITS DETERMINATION THROUGH THE TIMELY PREPARATION OF WRITTEN MINUTES OF THE COMPENSATION COMMITTEE MEETINGS DURING WHICH THE EXECUTIVE COMPENSATION AND BENEFITS WAS REVIEWED AND SUBSEQUENTLY APPROVED. THE ACTIONS OUTLINED ABOVE WITH RESPECT TO THE COMMITTEE AND THE ESTABLISHMENT OF THE REBUTTABLE PRESUMPTION OF REASONABLENESS APPLIES TO CERTAIN BH SENIOR MANAGEMENT PERSONNEL, INCLUDING, BUT NOT LIMITED TO, THE RETIRED PRESIDENT/CHIEF EXECUTIVE OFFICER, CURRENT PRESIDENT/CHIEF EXECUTIVE OFFICER, BOTH THE RETIRED AND CURRENT EXECUTIVE VICE PRESIDENT OPERATIONS, THE EXECUTIVE VICE PRESIDENT/CHIEF FINANCIAL OFFICER AND THE EXECUTIVE DIRECTORS OF THE BARNABAS HEALTH HOSPITALS AND MEDICAL CENTERS. THE COMPENSATION AND BENEFITS OF CERTAIN OTHER INDIVIDUALS CONTAINED IN THIS FORM 990, WHERE APPLICABLE, ARE REVIEWED ANNUALLY BY THE BARNABAS HEALTH PRESIDENT/CHIEF EXECUTIVE OFFICER WITH ASSISTANCE FROM THE ORGANIZATION'S HUMAN RESOURCES DEPARTMENT IN CONJUNCTION WITH THE INDIVIDUAL'S JOB PERFORMANCE DURING THE YEAR AND IS BASED UPON OTHER OBJECTIVE FACTORS DESIGNED TO ENSURE THAT REASONABLE AND FAIR MARKET VALUE COMPENSATION IS PAID BY THE ORGANIZATION. OTHER OBJECTIVE FACTORS INCLUDE MARKET SURVEY DATA FOR COMPARABLE POSITIONS, INDIVIDUAL GOALS AND OBJECTIVES, PERSONNEL REVIEWS, EVALUATIONS, SELF-EVALUATIONS AND PERFORMANCE FEEDBACK MEETINGS. DISCLOSURE INFORMATION CORE FORM, PART VI, SECTION C; QUESTION 19 THE ORGANIZATION'S FILED CERTIFICATE OF INCORPORATION AND ANY AMENDMENTS CAN BE OBTAINED AND REVIEWED THROUGH THE STATE OF NEW JERSEY DEPARTMENT OF THE TREASURY. COMPENSATION INFORMATION DISCLOSURE CORE FORM, PART VII AND SCHEDULE J PART VII AND SCHEDULE J REFLECT CERTAIN BOARD MEMBERS AND OFFICERS RECEIVING COMPENSATION AND BENEFITS FROM THIS ORGANIZATION OR A RELATED ORGANIZATION. PLEASE NOTE THIS REMUNERATION WAS FOR SERVICES RENDERED AS FULL-TIME EMPLOYEES OF THE ORGANIZATION OR A RELATED ORGANIZATION AND NOT FOR SERVICES RENDERED AS A VOTING MEMBER OR OFFICER OF THIS ORGANIZATION'S BOARD OF TRUSTEES. RELATED HOURS DISCLOSURE CORE FORM, PART VII, SECTION A, COLUMN B THIS ORGANIZATION IS PART OF BARNABAS HEALTH; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM ("SYSTEM"). THE SYSTEM INCLUDES BOTH FOR-PROFIT AND NOT FOR-PROFIT ORGANIZATIONS. CERTAIN BOARD OF TRUSTEE MEMBERS, OFFICERS AND/OR DIRECTORS LISTED ON CORE FORM, PART VII AND SCHEDULE J OF THIS FORM 990 MAY HOLD SIMILAR POSITIONS WITH BOTH THIS ORGANIZATION AND OTHER AFFILIATES WITHIN THE SYSTEM. THE HOURS SHOWN ON THIS FORM 990, FOR BOARD MEMBERS WHO RECEIVE NO COMPENSATION FOR SERVICES RENDERED IN A NON-BOARD CAPACITY, REPRESENT THE ESTIMATED HOURS DEVOTED PER WEEK FOR THIS ORGANIZATION. TO THE EXTENT THESE INDIVIDUALS SERVE AS A MEMBER OF THE BOARD OF TRUSTEES OF OTHER RELATED ORGANIZATIONS IN THE SYSTEM, THEIR RESPECTIVE HOURS PER WEEK PER ORGANIZATION ARE APPROXIMATELY ONE HOUR. THE HOURS REFLECTED ON PART VII OF THIS FORM 990, FOR BOARD MEMBERS WHO RECEIVE COMPENSATION FOR SERVICES RENDERED IN A NON-BOARD CAPACITY, PAID OFFICERS AND KEY EMPLOYEES, REFLECT TOTAL HOURS WORKED PER WEEK ON BEHALF OF BARNABAS HEALTH; NOT SOLELY THIS ORGANIZATION. FORMER OFFICER DISCLOSURE CORE FORM, PART VII AND SCHEDULE J THOMAS R. PERCELLO, FORMER VICE PRESIDENT OF THE ORGANIZATION, IS STILL EMPLOYED WITHIN BARNABAS HEALTH AS THE VICE PRESIDENT OF FINANCE/CHIEF FINANCIAL OFFICER OF KIMBALL MEDICAL CENTER; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. SEAN R. CIELECKI, FORMER OFFICER OF THE ORGANIZATION, IS STILL EMPLOYED AS AN ASSISTANT VICE PRESIDENT OF BARNABAS HEALTH. OTHER CHANGES IN NET ASSETS CORE FORM, PART XI; QUESTION 9 OTHER CHANGES IN NET ASSETS OR FUND BALANCE INCLUDES: - EQUITY TRANSFER TO INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT AFFILIATES - ($2,076,060); - PENSION CHANGES OTHER THAN NET PERIODIC BENEFIT COST - ($382,585); - NET ASSETS RELEASED FROM RESTRICTION FOR PURCHASES OF PROPERTY AND EQUIPMENT - $487,185; - NET CHANGE IN TEMPORARILY AND PERMANENTLY RESTRICTED NET ASSETS OF COMMUNITY MEDICAL CENTER FOUNDATION; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION - $926,000. AUDITED FINANCIAL STATEMENTS CORE FORM, PART XII; QUESTION 2 THE ORGANIZATION IS AN AFFILIATE OF BARNABAS HEALTH ("SYSTEM"), A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. THE SYSTEM'S PARENT ENTITY IS BARNABAS HEALTH, INC. AN INDEPENDENT CPA FIRM AUDITED THE CONSOLIDATED FINANCIAL STATEMENTS OF BARNABAS HEALTH, INC. AND ALL ENTITIES WITHIN THE SYSTEM FOR THE YEARS ENDED DECEMBER 31, 2012 AND DECEMBER 31, 2011; RESPECTIVELY. THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS CONTAINED CONSOLIDATING SCHEDULES ON AN ENTITY BY ENTITY BASIS. THE INDEPENDENT CPA FIRM ISSUED AN UNQUALIFIED OPINION WITH RESPECT TO THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS. THE BARNABAS HEALTH, INC. AUDIT COMMITTEE HAS ASSUMED RESPONSIBILITY FOR THE OVERSIGHT OF THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS, WHICH INCLUDES THIS ORGANIZATION, AND THE SELECTION OF AN INDEPENDENT AUDITOR. FINANCIAL STATEMENTS AND REPORTING CORE FORM, PART XII; QUESTION 3 THIS ORGANIZATION IS AN AFFILIATE OF BARNABAS HEALTH ("SYSTEM"). THE SYSTEM ENGAGED AN INDEPENDENT ACCOUNTING FIRM TO PREPARE AND ISSUE A SYSTEM WIDE CONSOLIDATED A-133 AUDIT. THIS ORGANIZATION WAS INCLUDED IN THE SYSTEM WIDE A-133 AUDIT. 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NJ NA C CORP. false MAJOR SECURITY SERVICES INC 1 CRAGWOOD ROAD SUITE 3D SOUTH PLAINFIELD NJ 07080 223040539 SECURITY SVCS. NJ NA C CORP. false MEDICAL CTR HEALTH CARE SVCS 1 CRAGWOOD ROAD SUITE 3D SOUTH PLAINFIELD NJ 07080 223011742 HEALTHCARE SVCS. NJ NA C CORP. false CENTER STATE HEALTH SVCS 1 CRAGWOOD ROAD SUITE 3D SOUTH PLAINFIELD NJ 07080 222592293 HEALTHCARE SVCS. NJ NA C CORP. false CENTER STATE MANAGEMENT CORP 300 SECOND AVENUE LONG BRANCH NJ 07740 222506125 MGMT SVCS. NJ NA C CORP. false CENTER STATE COLLECTION SVCS 2 CRESCENT PLACE OCEANPORT NJ 07757 222629075 COLLECTION SVCS. NJ NA C CORP. false COMMUNITY KARE INC 1 CRAGWOOD ROAD SUITE 3D SOUTH PLAINFIELD NJ 07080 222993840 HEALTHCARE SVCS. NJ NA C CORP. false KIMBALL HLTH CARE AFFILIATES 300 SECOND AVENUE LONG BRANCH NJ 07740 222701213 INVESTMENT NJ NA C CORP. false HEALTH CARE FACILITIES MGT 1 CRAGWOOD ROAD SUITE 3D SOUTH PLAINFIELD NJ 07080 223532988 MAINT. SVCS. NJ NA C CORP. false PREMIUM HEALTH SYSTEMS INC ONE FRANKLIN AVENUE BELLEVILLE NJ 07109 222779395 HEALTHCARE SVCS. NJ NA C CORP. false SBC MANAGEMENT CORPORATION 95 OLD SHORT HILLS ROAD WEST ORANGE NJ 07052 223414332 MGMT SVCS. NJ NA C CORP. false PROFESSIONAL QUALITY LIAB 100 BANK STREET BURLINGTON VT 05401 205163819 INSURANCE SVCS. VT NA C CORP. false NJ HEALTH CARE SYSTEM INC 94 OLD SHORT HILLS ROAD LIVINGSTON NJ 07039 223536986 INACTIVE NJ NA C CORP. false CPIC 44 CHURCH STREET HAMILTON BERMUDA BD HM11 FINANCIAL VEHICLE BD NA FOREIGN CORP. false LSC PHARMACY SERVICES INC 95 OLD SHORT HILLS ROAD WEST ORANGE NJ 07052 452552776 PHARMACY SVCS. NJ NA C CORP. false SAINT BARNABAS PHYSICIAN ASSOCIATES PA 94 OLD SHORT HILLS ROAD LIVINGSTON NJ 07039 271259104 HEALTHCARE SVCS. NJ NA C CORP false false false true true true false false false false false false false false true false false false true false TRANSACTIONS WITH RELATED ORGANIZATIONS SCHEDULE R, PART V BARNABAS HEALTH, INC. CORPORATION AND SBC MANAGEMENT CORPORATION ROUTINELY PAY EXPENSES FOR VARIOUS AFFILIATES WITHIN BARNABAS HEALTH IN THE ORDINARY COURSE OF BUSINESS, INCLUDING THIS ORGANIZATION. THESE RELATED PARTY TRANSACTIONS ARE RECORDED ON THE REVENUE/EXPENSE AND BALANCE SHEET STATEMENTS OF THIS ORGANIZATION AND ITS AFFILIATES. THESE ENTITIES WORK TOGETHER TO DELIVER HIGH QUALITY HEALTHCARE AND WELLNESS SERVICES TO THE COMMUNITIES IN WHICH THEY ARE SITUATED.