2013-05-10T09:24:49-05:00 2012-06-30 KPMG LLP 440 Monticello Ave Suite 1900 Norfolk VA 235102674 990 2011-07-01 522087445 MEDSTAR HEALTH INC % MARC BERGER MEDS 4107726719 5565 STERRETT PLACE 5TH FLOOR COLUMBIA MD 21044 MARC R BERGER 4107726719 2013-05-08 true 7576167000 2011 2016-02-24 21:20:13Z KENNETH A SAMET 5565 STERRETT PLACE 5TH FLOOR COLUMBIA MD 21044 44589309 false X WWW.MEDSTARHEALTH.ORG X 1998 MD PLAN, DEVELOP, COORDINATE, DIRECT AND MANAGE AN INTEGRATED HEALTHCARE SYSTEM. 17 13 283 12 120992 54421 395622 375227 26225979 31747072 35011938 -3766242 879792 1044690 62513331 29400747 0 0 0 0 41089572 43589446 0 0 0 28337201 33735426 69426773 77324872 -6913442 -47924125 1508495983 1570721309 1259963842 1381198602 248532141 189522707 X SEE SCHEDULE O. false false 77324872 31747072 AS THE PARENT COMPANY IN AN INTEGRATED HEALTHCARE SYSTEM, MEDSTAR HEALTH, INC. ESTABLISHES THE STRATEGIC DIRECTION FOR ITS AFFILIATED ENTITIES. MEDSTAR HEALTH'S SOLE PROGRAM SERVICE IS THE MANAGEMENT AND SUPPORT OF ITS AFFILIATED ENTITIES. THE PROGRAM SERVICE EXPENSES INCURRED BY THE ORGANIZATION RELATE TO CORPORATE SERVICE FUNCTIONS IN THE FOLLOWING AREAS: FINANCIAL SERVICES, HUMAN RESOURCE SERVICES, TREASURY SERVICES, INFORMATION SYSTEMS, LEGAL SERVICES, RISK MANAGEMENT, COMPLIANCE, PRIVACY, BUSINESS AND SYSTEM DEVELOPMENT, PLANNING, MARKETING, EXTERNAL AFFAIRS, PHILANTHROPY SERVICES, MANAGED CARE, INTERNAL AUDIT, COMMUNITY HEALTH, GRADUATE MEDICAL EDUCATION AND ACADEMIC AFFAIRS. 77324872 true true false true false false false false false false true true false true true true false true false false false false false false false false false false false true true false false false false false false false false false true false false false false true true true true false false true 249 0 true 283 true true true true CJ false false false false false false false false false X 17 13 true false true false false false false true true false false true true true true true true true true false MD X MARC BERGER 4107726719 5565 STERRETT PLACE 5TH FLOOR COLUMBIA MD 21044 X CHANDRALEKHA BANERJEE MD 1.0 X 0 0 0 ANDREW J BERRY 1.0 X 0 0 0 CATHERINE A MELOY 1.0 X 0 0 0 ROBERTA LOKER 1.0 X 0 0 0 WILLIAM R ROBERTS 1.0 X 0 0 0 JOHN R KIRKPATRICK MD 1.0 X 0 191904 7346 TOGO D WEST JR 1.0 X 0 0 0 MARC N DUBER 1.0 X 0 0 0 MARK T JENSEN 1.0 X 0 0 0 EDWARD S CIVERA 1.0 X 0 0 0 DONOVAN DIETRICK MD 1.0 X 0 267909 16405 BARBARA R HELLER EDD RN FAAN 1.0 X 0 0 0 WILLIAM J OETGEN JR MD MBA 1.0 X 0 0 0 SARA E WATKINS 1.0 X 0 0 0 ANTHONY J BUZZELLI 1.0 X 0 0 0 JOHN J DEGIOIA PHD 1.0 X 0 0 0 F DONALD COONEY MD 1.0 X 0 0 0 STEPHEN D HARLAN 1.0 X 0 0 0 KENNETH A SAMET 40.0 X X 6126151 0 183379 MICHAEL CURRAN 40.0 X 2468614 0 63785 WILLIAM THOMAS MD 40.0 X 1589685 0 130973 JOY DRASS MD 40.0 X 1263388 0 43206 CARL SCHINDELAR 40.0 X 1080736 0 46584 ERIC WAGNER 40.0 X 874294 0 39739 CHRISTINE SWEARINGEN 40.0 X 702607 0 49392 OLIVER JOHNSON 40.0 X 652142 0 17452 CATHERINE A SZENCZY 40.0 X 680927 0 20151 MAUREEN MCCAUSLAND 40.0 X 531677 0 18663 SUSAN NELSON 40.0 X 528268 0 23668 DAVID NOE 40.0 X 461818 0 26258 BRUCE BARTOO 40.0 X 427289 0 16790 JEAN HITCHCOCK 40.0 X 434471 0 7103 JOEL BRYAN 40.0 X 412086 0 29238 steven cohen 40.0 X 772142 0 0 MICHAEL ROGERS 40.0 X 291848 0 0 ROBERT RYAN 40.0 X 136652 0 0 19434795 459813 740132 128 true true false MARSH MCLENNAN INC PO BOX 14834 14834 COLLECTIONS CTR CHICAGO IL 60693 CONSULTING SERVICES 5238010 TOWERS WATSON DELAWARE INC PO BOX 277665 ATLANTA GA 303847665 CONSULTING SERVICES 2701971 KPMG LLP DEPT 0939 PO BOX 120001 DALLAS TX 753120939 ACCOUNTING SERVICES 1253654 TOBIN O'CONNOR EWING 5335 WISCONSIN AVENUE NW WASHINGTON DC 20015 LEGAL SERVICES 1092937 JONES DAY PO BOX 165017 COLUMBUS OH 43216 LEGAL SERVICES 939459 36 375227 375227 GREENSPRING FEE 900099 31744728 31744728 PHARMACY REVENUE 900099 2344 2344 31747072 11422320 120992 11301328 0 0 0 15179679 8883 -15179679 -8883 -15188562 -15188562 0 0 0 OTHER INCOME/(LOSS) 900099 1044690 0 1044690 1044690 29400747 31747072 120992 -2842544 0 0 0 0 16583545 16583545 0 20084517 20084517 1992989 1992989 3351957 3351957 1576438 1576438 0 4789828 4789828 2272205 2272205 0 0 0 15636863 15636863 2841500 2841500 464572 464572 152443 152443 0 1544142 1544142 470763 470763 0 63484 63484 856264 856264 0 643983 643983 39616 39616 FOOD SERVICES/SUPPLIES 210759 210759 0 0 UTILITIES 204828 204828 MAINTENANCE CONTRACTS 102206 102206 MAINTENANCE 16994 16994 3424976 3424976 77324872 77324872 0 0 0 0 404759798 429316413 0 0 10660384 4601709 0 0 0 0 0 0 240565 222177 405425 1199624 12388680 6741475 3336283 5647205 0 0 1007327688 1021683422 0 0 0 0 81765840 108050759 1508495983 1570721309 57438854 68025507 0 0 647817 -2264818 841039379 905879749 0 0 0 0 155000000 107828825 0 0 205837792 301729339 1259963842 1381198602 X 246469372 187188323 2062769 2334384 0 0 248532141 189522707 1508495983 1570721309 X -47924125 -11085309 X false true true X false X X false false false THE GOOD SAMARITAN HOSPITAL OF MARYLAND INC 520591607 03 true 0 THE UNION MEMORIAL HOSPITAL 520591685 03 true 0 MEDSTAR-GEORGETOWN MEDICAL CENTER INC 522218584 03 true 0 FRANKLIN SQUARE HOSPITAL CENTER INC 520608007 03 true 0 HARBOR HOSPITAL INC 520491660 03 true 0 WASHINGTON HOSPITAL CENTER CORPORATION 521272129 03 true 0 NATIONAL REHABILITATION HOSPITAL INC 521369749 03 true 0 MEDSTAR HEALTH RESEARCH INSTITUTE INC 526056274 04 true 0 MEDSTAR HEALTH VISITING NURSES ASSOCIATION INC 530196597 04 true 0 MONTGOMERY GENERAL HOSPITAL INC 520646893 03 true 0 ST MARY'S HOSPITAL OF ST MARY'S COUNTY INC 520619006 03 true 0 11 0 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true false false false false false false true 612996 612996 false Other Activities Part IV, Supplemental Information The expenses incurred by the organization for lobbying activities reflects the total expenditures for lobbying efforts on behalf of all subsidiaries and affiliates. These expenses included a portion of the compensation expense for several employees in the government affairs department of the organization who are involved in lobbying activities as well as the amounts paid to outside advocacy and consulting groups for their lobbying activities on behalf of the organization. The lobbying work related to healthcare policy issues at the federal level as well as work in Maryland and the District of Columbia. Among the policy issues encompassed by the organization's lobbying efforts were health care coverage for the uninsured and under-insured, emergency preparedness, reimbursement policies, employment practices, health reform, and other key issues. 1164963 1164963 20952 9193 11758 4906782 2612629 2294153 5233507 4082877 1150630 1062477 36776 1025701 5647205 PNC POOL AND OTHER UNR. FUNDS 589432431 F INVESTMENT IN AFFILIATES 361081738 F BOARD DESIGNATED/OTHER RESTR. 45822359 F MARKETABLE INVESTMENTS 25346894 F 1021683422 DEFERRED TAX ASSET 26076034 DEBT SERVICE L/T 12833704 DEFERRED FINANCING COST 12487959 INTERCOMPANY RECEIVABLES 32181315 OPTION IT ASSET 7401317 DEFERRED COMPENSATION ASSET 8284507 CASH SURRENDER VALUE - INS 2067223 WORKERS COMP FUNDS 1866500 OTHER ASSETS 4808202 COST OF ISSUANCE FUND 43998 108050759 0 PENSION LIABILITY L/T 224943899 L/T LIABILITY - SWAP 22859589 PROFESSIONAL LIABILITY IBNR 16490048 STOCK OPTION PLAN 5953140 DEFERRED COMPENSATION 8336617 WORKERS COMP 1339411 OTHER LIABILITIES 21806635 301729339 FIN 48 FOOTNOTE SCHEDULE D, PART X INCOME TAXES ARE ACCOUNTED FOR UNDER THE ASSET AND LIABILITY METHOD. DEFERRED TAX ASSETS AND LIABILITIES ARE RECOGNIZED FOR THE FUTURE TAX CONSEQUENCES ATTRIBUTABLE TO DIFFERENCES BETWEEN THE FINANCIAL STATEMENT CARRYING AMOUNTS OF EXISTING ASSETS AND LIABILITIES AND THEIR RESPECTIVE TAX BASES AND OPERATING LOSS AND TAX CREDIT CARRYFORWARDS. DEFERRED TAX ASSETS AND LIABILITIES ARE MEASURED USING ENACTED TAX RATES EXPECTED TO APPLY TO TAXABLE INCOME IN THE YEARS IN WHICH THOSE TEMPORARY DIFFERENCES ARE EXPECTED TO BE RECOVERED OR SETTLED. THE EFFECT ON DEFERRED TAX ASSETS AND LIABILITIES OF A CHANGE IN TAX RATES IS RECOGNIZED IN THE PERIOD THAT INCLUDES THE ENACTMENT DATE. ANY CHANGES TO THE VALUATION ALLOWANCE ON THE DEFERRED TAX ASSET ARE REFLECTED IN THE YEAR OF CHANGE. THE CORPORATION ACCOUNTS FOR UNCERTAIN TAX POSITIONS IN ACCORDANCE WITH THE FASB ACCOUNTING STANDARDS CODIFICATION (ASC) TOPIC 740, INCOME TAXES Allowance on the Deferred Tax Asset are reflected in THE year of change. THERE WAS NO LIABILITY RECORDED FOR UNCERTAIN TAX POSITIONS AS OF JUNE 30, 2012. X X X false true X X X X X X true true false false false false false false false JOHN R KIRKPATRICK MD 0 91029 0 0 0 100875 0 0 0 7346 0 199250 0 0 DONOVAN DIETRICK MD 0 262909 0 5000 0 0 0 4317 0 12088 0 284314 0 0 KENNETH A SAMET 1166887 0 1481670 0 3477594 0 163987 0 19392 0 6309530 0 0 0 MICHAEL CURRAN 733897 0 707174 0 1027543 0 45895 0 17890 0 2532399 0 0 0 WILLIAM THOMAS MD 546941 0 553805 0 488939 0 110820 0 20153 0 1720658 0 0 0 JOY DRASS MD 669960 0 593428 0 0 0 24426 0 18780 0 1306594 0 0 0 CARL SCHINDELAR 575295 0 505441 0 0 0 27630 0 18954 0 1127320 0 0 0 ERIC WAGNER 461561 0 412733 0 0 0 21804 0 17935 0 914033 0 0 0 CHRISTINE SWEARINGEN 375110 0 327497 0 0 0 31915 0 17477 0 751999 0 0 0 OLIVER JOHNSON 409006 0 243136 0 0 0 0 0 17452 0 669594 0 0 0 CATHERINE A SZENCZY 377490 0 303437 0 0 0 7350 0 12801 0 701078 0 0 0 MAUREEN MCCAUSLAND 334814 0 145271 0 51592 0 0 0 18663 0 550340 0 0 0 SUSAN NELSON 398030 0 130238 0 0 0 7350 0 16318 0 551936 0 0 0 DAVID NOE 303515 0 145768 0 12535 0 14591 0 11667 0 488076 0 0 0 BRUCE BARTOO 300846 0 126443 0 0 0 0 0 16790 0 444079 0 0 0 JEAN HITCHCOCK 308329 0 126142 0 0 0 0 0 7103 0 441574 0 0 0 JOEL BRYAN 276124 0 135962 0 0 0 12847 0 16391 0 441324 0 0 0 steven cohen 0 0 33969 0 738173 0 0 0 0 0 772142 0 0 0 MICHAEL ROGERS 0 0 0 0 291848 0 0 0 0 0 291848 0 0 0 ROBERT RYAN 15510 0 0 0 121142 0 0 0 0 0 136652 0 0 0 SOCIAL CLUB DUES SCHEDULE J, PART I, LINE 1A THE ORGANIZATION PAID SOCIAL CLUB DUES FOR THREE OF ITS OFFICERS DURING THIS YEAR. PARTICIPATION IN THESE ACTIVITIES BY THE OFFICERS WAS FOR BUSINESS PURPOSES, AND HELPED THE ORGANIZATION FURTHER ITS EXEMPT PURPOSES. TEMPORARY HOUSING ALLOWANCE AND GROSS-UP PAYMENTS SCHEDULE J, PART I, LINE 1A ONE KEY EMPLOYEE OF THE ORGANIZATION, MAUREEN MCCAUSLAND, RECEIVED A REIMBUSEMENT PAYMENT RELATED TO TEMPORARY HOUSING EXPENSES INCURRED WHILE RELOCATING TO HER NEW POSITION WITH THE ORGANIZATION. THE REIMBURSEMENT PAYMENT WAS GROSSED-UP FOR INCOME TAX PURPOSES. THE TOTAL AMOUNT OF THE PAYMENTS RECEIVED WAS TREATED AS TAXABLE COMPENSATION. OTHER REPORTABLE COMPENSATION SCHEDULE J, PART I, LINES 4A AND 4B KENNETH SAMET, MICHAEL CURRAN, AND WILLIAM THOMAS MSSRS. SAMET, CURRAN, AND THOMAS' OTHER REPORTABLE COMPENSATION IN PART II, COLUMN (B) (III) INCLUDES $3,465,504, $1,027,543, AND $488,939 RESPECTIVELY, REPRESENTING THEIR ACCRUED BENEFIT IN A SUPPLEMENTAL RETIREMENT PLAN, WHICH WAS EARNED DURING THE PAST 23, 11, AND 17 YEARS OF SERVICE RESPECTIVELY. THESE AMOUNTS WERE NOT ACTUALLY PAID DURING THIS REPORTING PERIOD, BUT WERE REPORTED AS COMPENSATION UNDER FICA TAX-REPORTING RULES. STEVEN COHEN STEVEN COHEN'S OTHER REPORTABLE COMPENSATION IN PART II, COLUMN (B) (III) INCLUDES $710,173 RELATING TO INCOME REALIZED IN THE CURRENT YEAR ON THE APPRECIATION OF CERTAIN INVESTMENTS THAT WERE GRANTED TO MR. COHEN IN PRIOR YEARS AND WHICH RELATED TO SERVICES PERFORMED IN PRIOR YEARS. MICHAEL ROGERS MICHAEL ROGERS' OTHER REPORTABLE COMPENSATION IN PART II, COLUMN (B) (III) INCLUDES $291,848 REPRESENTING THE AMOUNT OF SEVERANCE PAYMENTS RECEIVED BY MR. ROGERS. ROBERT RYAN ROBERT RYAN'S OTHER REPORTABLE COMPENSATION IN PART II, COLUMN (B) (III) INCLUDES $104,814 REPRESENTING THE AMOUNT OF SEVERANCE PAYMENTS RECEIVED BY MR. RYAN. JOHN KIRKPATRICK JOHN KIRKPATRICK'S OTHER REPORTABLE COMPENSATION IN PART II, COLUMN (B) (III) INCLUDES $100,875 RECEIVED BY DR. KIRKPATRICK FROM A NONQUALIFIED SUPPLEMENTAL RETIREMENT PLAN. MARYLAND HEALTH AND HIGHER EDUCATIONAL FACILITIES 520936091 574217MW2 2004-02-03 168903885 ADVANCE REFUND BONDS ISSUED 2001 false false false MARYLAND HEALTH AND HIGHER EDUCATIONAL FACILITIES 520936091 574217C60 2007-01-31 148551201 CONSTRUCT FRANKLIN SQ. HOSPITAL TO false false false DISTRICT OF COLUMBIA 536001131 2548393Y7 2008-05-15 283137423 CURRENT REFUND BONDS ISSUED 1998 false false false MARYLAND HEALTH AND HIGHER EDUCATIONAL FACILITIES 520936091 5742180Y6 2011-11-17 47805502 CURRENT REFUND BONDS ISSUED 2008 false false false 7025000 0 168903885 188821 0 166098335 2616729 0 0 0 0 0 2001 false true true true 0 0 148551201 0 0 0 1801484 0 0 146749717 0 0 2010 false false true true 14200000 0 283137423 0 0 283137423 0 0 0 0 0 0 1998 true false true true 47171175 0 47805502 0 0 0 634327 0 0 0 0 0 true false true true 0 false false false true 0.00000 0.00000 0.00000 true 0 false false false false 0.00000 0.00000 0.00000 true true false false 0 false 0 false false false false false 0 false 0 false false false true false 0 false 0 false false false false false 0 false 0 false false MARYLAND HEALTH AND HIGHER EDUCATIONAL FACILITIES 520936091 5742180Y6 2011-11-17 20477518 CURRENT REFUND BONDS ISSUED 1998 false false false MARYLAND HEALTH AND HIGHER EDUCATIONAL FACILITIES 520936091 5742180Y6 2011-11-17 15007304 CURRENT REFUND BONDS ISSUED 2002 false false false MARYLAND HEALTH AND HIGHER EDUCATIONAL FACILITIES 520396091 5742180Y6 2011-11-17 15206131 CURRENT REFUND BONDS ISSUED 2009 false false false MARYLAND HEALTH AND HIGHER EDUCATIONAL FACILITIES 520936091 5742180Y6 2011-11-17 38620000 CURRENT REFUND BONDS ISSUED 1998 false false false 20235000 0 20477518 0 0 0 242518 0 0 0 0 0 true false true true 14826474 0 15007304 0 0 0 180830 0 0 0 0 0 true false true true 15003890 0 15206131 0 0 0 202241 0 0 0 0 0 true false true true 0 0 38620000 0 0 0 0 0 0 0 0 0 true false true true 0 0 0 0 false false false 0 false 0 false false false false false 0 false 0 false false false false false 0 false 0 false false false false false 0 false 0 false false GEORGETOWN UNIVERSITY SEE PART V 4000000 VARIOUS SERVICES false BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS SCHEDULE L, PART IV DR. JOHN DEGIOIA, A BOARD MEMBER OF MEDSTAR HEALTH, IS PRESIDENT AND CEO OF GEORGETOWN UNIVERSITY. SINCE JUNE 2000, GEORGETOWN UNIVERSITY AND MEDSTAR HEALTH, INC. HAVE MAINTAINED A CLINICAL PARTNERSHIP AGREEMENT WHEREBY MEDSTAR HEALTH OWNS AND OPERATES GEORGETOWN UNIVERSITY HOSPITAL'S CLINICAL ENTERPRISE, AND THE PARTIES PURCHASE VARIOUS SERVICES FROM ONE ANOTHER PURSUANT TO THIS AFFILIATION. THE NET AMOUNT PAID BY MEDSTAR HEALTH AND ITS AFFILIATED BUSINESSES TO GEORGETOWN UNIVERSITY FOR THE YEAR WAS $4.0 MILLION. ORGANIZATION'S MISSION PART III, LINE 1 THE MISSION OF MEDSTAR HEALTH IS TO SERVE OUR PATIENTS, THOSE WHO CARE FOR THEM, AND OUR COMMUNITIES. MEDSTAR HEALTH IS A REGIONAL HEALTHCARE SYSTEM THAT OPERATES TEN HOSPITALS, PROVIDING HEALTHCARE SERVICES IN MARYLAND AND THE WASHINGTON, D.C. REGION. IT IS THE AREA'S LARGEST HEALTH SYSTEM AND ONE OF THE REGION'S LARGEST EMPLOYERS, WITH APPROXIMATELY 30,000 ASSOCIATES AND 5,300 AFFILIATED PHYSICIANS. THROUGH ITS HOSPITALS AND OTHER HEALTH SERVICES AFFILIATES, THE SYSTEM OFFERS A BROAD CONTINUUM OF HEALTHCARE SERVICES INCLUDING ACUTE CARE (SECONDARY, TERTIARY AND QUATERNARY), PRIMARY CARE, EMERGENCY/URGENT CARE, REHABILITATION (HOSPITAL-BASED AND OUTPATIENT), POST-ACUTE CARE, AMBULATORY SURGERY, HOME CARE, ADULT DAY CARE, HEALTH PROMOTION AND WELLNESS, AND MEDICAL RESEARCH AND EDUCATION. THE SYSTEM IS EXPANDING ACCESS TO SERVICES DISTRIBUTED THROUGHOUT THE REGION BY OPENING URGENT CARE CENTERS, ADDING PHYSICIAN OFFICES AND EXPANDING COVERAGE FOR MEDSTAR FAMILY CHOICE, A MEDICAID MANAGED CARE ORGANIZATION, WITH OVER 30,200 COVERED LIVES. THE SYSTEM ALSO INCLUDES THE LARGEST HOME HEALTH BUSINESS IN THE REGION AND A LARGE NETWORK OF REHABILITATION SITES, OFFERING IMPORTANT POST ACUTE CARE SERVICES. THE SYSTEM'S PHYSICIAN NETWORK INCLUDES APPROXIMATELY 1,300 FULL AND PART-TIME EMPLOYED PHYSICIANS. THE SYSTEM OFFERS SPECIALIZED SERVICES THAT INCLUDE CARDIAC SURGERY, NEUROLOGY, ORGAN TRANSPLANTATION, NEONATAL INTENSIVE CARE, CANCER CARE, SHOCK/TRAUMA, BURN CARE AND HAND SURGERY. MEDSTAR HEALTH RESEARCH INSTITUTE (MHRI) IS THE RESEARCH ARM FOR MEDSTAR, PROVIDING SCIENTIFIC, ADMINISTRATIVE, AND REGULATORY SUPPORT FOR RESEARCH PROGRAMS THAT COMPLEMENT THE KEY CLINICAL SERVICES AND TEACHING PROGRAMS IN ALL HOSPITALS IN THE SYSTEM. MEDSTAR HEALTH HAS ONE OF THE LARGEST GRADUATE MEDICAL EDUCATION PROGRAMS IN THE COUNTRY, TRAINING MORE THAN 1,000 MEDICAL RESIDENTS ANNUALLY, AND IS THE MEDICAL EDUCATION AND CLINICAL PARTNER OF GEORGETOWN UNIVERSITY. MEDSTAR ESTABLISHED AN INNOVATION ALLIANCE WITH THE CLEVELAND CLINIC TO BENEFIT PATIENTS THROUGH COLLABORATION ON RESEARCH, CLINICAL INVESTIGATION AND COMMERCIALIZATION. IN FISCAL YEAR 2012, MEDSTAR HEALTH'S HOSPITALS HAD 144,054 INPATIENT ADMISSIONS, 2,364,407 OUTPATIENT VISITS, AND 517,388 EMERGENCY VISITS. FAMILY/BUSINESS RELATIONSHIP PART VI, LINE 2 KENNETH SAMET AND EDWARD CIVERA BOTH SERVE ON THE BOARD OF AN UNRELATED CORPORATION. THE UNRELATED CORPORATION DOES NOT TRANSACT ANY BUSINESS WITH MEDSTAR HEALTH. KENNETH SAMET AND MARC DUBER BOTH SERVE ON THE BOARD OF AN UNRELATED CORPORATION. THE UNRELATED CORPORATION DOES NOT TRANSACT ANY BUSINESS WITH MEDSTAR HEALTH. Mssrs. Samet and Civera both came off this Board at the end of the reporting period. BYLAWS REVISIONS - 2012 - MEDSTAR HEALTH, INC. AND AFFILIATED HOSPITALS PART VI, LINE 4 DURING THE FISCAL YEAR ENDING JUNE 30, 2012, MEDSTAR HEALTH, INC., A MARYLAND NON-STOCK CORPORATION ("MEDSTAR") REVIEWED ITS BYLAWS AND THE BYLAWS OF NINE MEDSTAR-AFFILIATED HOSPITALS, INCLUDING FRANKLIN SQUARE HOSPITAL CENTER, INC., HARBOR HOSPITAL, INC., MEDSTAR-GEORGETOWN MEDICAL CENTER, INC., MONTGOMERY GENERAL HOSPITAL, INC., NATIONAL REHABILITATION HOSPITAL, INC., ST. MARY'S HOSPITAL OF ST. MARY'S COUNTY, INC., THE GOOD SAMARITAN HOSPITAL OF MARYLAND, INC., THE UNION MEMORIAL HOSPITAL AND WASHINGTON HOSPITAL CENTER CORPORATION (COLLECTIVELY THE "HOSPITALS"). THE REVISED BYLAWS OF MEDSTAR AND THE HOSPITALS WERE DEVELOPED USING A COMMON TEMPLATE BASED ON THE EXISTING MEDSTAR BYLAWS. THE BOARD OF DIRECTORS OF MEDSTAR AND THE BOARD OF DIRECTORS OF EACH HOSPITAL VOTED AND APPROVED THE CHANGES TO THEIR BYLAWS. A SUMMARY OF THE CHANGES TO THE BYLAWS OF MEDSTAR AND THE HOSPITALS IS SET FORTH BELOW. THE BYLAWS CHANGES: (A) CONFORM PROVISIONS TO MARYLAND, DELAWARE AND DISTRICT OF COLUMBIA LAW, AS APPLICABLE, IN MANY CASES TO GIVE GREATER FLEXIBILITY TO MEDSTAR AND THE BOARD OF DIRECTORS OF EACH HOSPITAL); (B) CONFORM PROVISIONS TO MAXIMIZE UNIFORMITY AMONG THE HOSPITAL BYLAWS (TO THE EXTENT POSSIBLE); (C) REFLECT RECENT DEVELOPMENTS IN CORPORATE/HOSPITAL GOVERNANCE; (D) CLARIFY CERTAIN CORPORATE PROCEDURES; AND (E) CONFORM LANGUAGE AND STYLE. PROCESS FOR REVIEWING FORM 990 PART VI, LINE 11B THE PROCESS FOR REVIEWING THE FORM 990 INCLUDED EDUCATION AND TRANSPARENCY. SENIOR FINANCIAL EXECUTIVES, WORKING WITH INDEPENDENT OUTSIDE EXPERTS, THOROUGHLY REVIEWED FORM 990 AND ACCOMPANYING INSTRUCTIONS. IN ADDITION, SENIOR EXECUTIVES REVIEWED THE RELEVANT SECTIONS OF THE FORM 990 WITH THE FOLLOWING COMMITTEES OF THE ORGANIZATION'S GOVERNING BODY: FINANCE, AUDIT, GOVERNANCE, STRATEGIC PLANNING, AND EXECUTIVE COMPENSATION. FOLLOWING THESE MEETINGS, THE GOVERNING BODY WAS PROVIDED A COPY OF THE FORM 990 IN ITS FINAL FORM AND GIVEN AN OPPORTUNITY TO PROVIDE ANY INPUT OR COMMENTS RELATING TO THE FORM 990 PRIOR TO ITS FILING. CONFLICT OF INTEREST PART VI, LINE 12C APPOINTMENT OF BOARDS OF DIRECTORS MEDSTAR HEALTH (AND ITS SUBSIDIARIES) REQUIRE ALL NOMINATED DIRECTORS, PRIOR TO THEIR APPOINTMENT OR ELECTION, TO DISCLOSE THE EXISTENCE OF (OR POTENTIAL EXISTENCE OF) ANY TRANSACTION WITH MEDSTAR THAT WOULD RESULT IN A CONFLICT OF INTEREST. SUCH DISCLOSURES (IF ANY) ARE REVIEWED BY THE GOVERNANCE COMMITTEE OF THE MEDSTAR HEALTH BOARD OF DIRECTORS WHICH DETERMINES HOW THE MATTER SHOULD BE RESOLVED. ANNUAL DISCLOSURES - ALL OFFICERS, DIRECTORS, AND SENIOR MANAGERS ALL OFFICERS, DIRECTORS AND SENIOR MANAGERS ARE REQUIRED, NOT LESS THAN ANNUALLY, TO COMPLETE A SURVEY OF QUESTIONS CONCERNING ANY TRANSACTIONS OR RELATIONSHIPS WHICH WOULD OR COULD REPRESENT A CONFLICT OF INTEREST. SUCH DISCLOSURES (IF ANY) RELATED TO DIRECTORS ARE REVIEWED BY THE GOVERNANCE COMMITTEE OF THE MEDSTAR HEALTH BOARD OF DIRECTORS WHICH DETERMINES HOW THE MATTER SHOULD BE RESOLVED.SUCH DISCLOSURES (IF ANY) RELATED TO OFFICERS AND SENIOR MANAGERS ARE REVIEWED BY AN APPROPRIATE EXECUTIVE WHO DETERMINES HOW THE MATTER SHOULD BE RESOLVED. IN ADDITION, OFFICERS AND DIRECTORS OF MARYLAND HOSPITALS AND NURSING CENTERS ARE REQUIRED TO ANNUALLY DISCLOSE ADDITIONAL INFORMATION RELATING TO POTENTIAL CONFLICTS OF INTEREST AND SUCH DISCLOSURES ARE REPORTED TO THE MARYLAND HEALTH SERVICES COST REVIEW COMMISSION (HSCRC). EXECUTIVE COMPENSATION PROCESS PART VI, LINE 15 THE EXECUTIVE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS OF MEDSTAR HEALTH, INC. (THE "COMMITTEE") HAS OVERSIGHT OVER THE EXECUTIVE COMPENSATION PROGRAM (THE "PROGRAM") OF MEDSTAR HEALTH, INC. AND ITS AFFILIATES. TOTAL COMPENSATION FOR THE TOP MANAGEMENT OFFICIALS, OFFICERS AND KEY EMPLOYEES OF MEDSTAR HEALTH, INC. AND ITS AFFILIATES ARE REVIEWED AND APPROVED BY THE COMMITTEE WITH ASSISTANCE AND GUIDANCE FROM AN INDEPENDENT THIRD PARTY ADVISOR. THE MEMBERS OF THE COMMITTEE ARE INDEPENDENT FROM ALL OF THE PARTICIPANTS IN THE PROGRAM. THE MAIN OBJECTIVE OF THE PROGRAM IS TO PROVIDE MARKET COMPETITIVE TOTAL COMPENSATION THAT IS INTERNALLY EQUITABLE AND HAS A STRONG PAY-FOR-PERFORMANCE LINKAGE. PERFORMANCE IS EVALUATED AT THE SYSTEM, OPERATING UNIT, AND INDIVIDUAL LEVELS. THE OVERALL TOTAL COMPENSATION PHILOSOPHY IS MANAGED AT THE 75TH PERCENTILE OF THE COMPETITIVE MARKET FOR COMPARABLE SIZE (NET REVENUE) AND TYPE (TAX-EXEMPT HEALTHCARE ORGANIZATIONS). WHERE APPROPRIATE, ADDITIONAL INDUSTRY DATA IS CONSIDERED (GENERAL BUSINESS AND/OR TAXABLE HEALTHCARE) FOR SELECTED POSITIONS THAT CAN BE RECRUITED FROM OR POTENTIALLY LOST TO THESE INDUSTRIES (E.G., INFORMATION TECHNOLOGY, FINANCE, ETC.). THE COMMITTEE HAS ENGAGED ERNST & YOUNG LLP ("E&Y") TO SERVE AS AN ADVISOR ON THE REASONABLENESS AND COMPETITIVENESS OF THE PROGRAM. IN DETERMINING REASONABLENESS AND COMPETITIVENESS, E&Y REVIEWS MARKET PRACTICES AND TRENDS, AND MAKES RECOMMENDATIONS RELATED TO THE PROGRAM. E&Y UTILIZES INFORMATION FROM CUSTOM SURVEYS, NATIONAL COMPENSATION SURVEYS, PROPRIETARY DATABASES, AND CLIENT EXPERIENCES TO DETERMINE ITS FINAL RECOMMENDATIONS. E&Y PRESENTS THEIR FINDINGS AND RECOMMENDATIONS TO THE COMMITTEE. THE COMMITTEE MAKES THE FINAL DECISIONS ON ALL OF THE COMPENSATION DETERMINATIONS OF THE PROGRAM. ALL DECISIONS MADE BY THE COMMITTEE ARE CONTEMPORANEOUSLY DOCUMENTED. FINANCIAL STATEMENT AVAILABILITY PART VI, LINE 19 MEDSTAR HEALTH POSTS ITS ANNUAL FINANCIAL AUDIT AND QUARTERLY FINANCIAL REPORTS TO THE ELECTRONIC MUNICIPAL MARKET ACCESS (EMMA) SYSTEM. THE ORGANIZATION ALSO E-MAILS ITS ANNUAL AND QUARTERLY DISCLOSURES TO HOLDERS OF THE COMPANY'S PUBLICLY TRADED DEBT. THE COMPANY'S GOVERNANCE DOCUMENTS AND CONFLICTS OF INTEREST POLICIES ARE AVAILABLE UPON REQUEST THROUGH ITS CORPORATE (OR AS APPLICABLE ENTITY) PUBLIC INFORMATION OFFICES. OTHER CHANGES IN NET ASSETS PART XI, LINE 5 ADDITIONAL MINIMUM PENSION LIABILITY....................$(117,127,778) EQUITY TRANSFERS - NET ASSETS...........................$ 124,996,490 UNREALIZED LOSS ON INVESTMENTS..........................$ (23,260,360) INCOME TAX PROVISION....................................$ 4,306,339 =========== TOTAL $ (11,085,309) HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:JOHN R KIRKPATRICK MD TITLE:BOARD MEMBER HOURS:40 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:DONOVAN DIETRICK MD TITLE:BOARD MEMBER HOURS:40 MEDSTAR SPORTSHEALTH LLC 5565 Sterrett Place Columbia MD 21044 Healthcare MD 0 0 MEDSTHEALTH MEDSTAR LLC 5565 STERRET PLACE 5TH FLOOR COLUMBIA MD 21044 453113462 SUPPORT ORG MD 0 0 MEDSTHEALTH Church Home Corporation 5565 Sterrett Place 5th Floor Columbia MD 21044 237374724 Medical Fund MD 501(c)(3) PF NA true Franklin Square Hospital Center Inc 9000 Franklin Square Drive Baltimore MD 21237 520608007 Hospital MD 501(c)(3) 3 NA true Harbor Hospital Inc 3001 South Hanover Street Baltimore MD 21225 520491660 Hospital MD 501(c)(3) 3 NA true Montgomery General Hospital 18101 Prince Philip Drive Olney MD 20832 520646893 Hospital MD 501(c)(3) 3 NA true The Good Samaritan Hospital of Maryland 5601 Loch Raven Blvd Baltimore MD 21239 520591607 Hospital MD 501(c)(3) 3 NA true The Union Memorial Hospital 201 East University Parkway Baltimore MD 21218 520591685 Hospital MD 501(c)(3) 3 NA true Medstar Health Research Institute 108 Irving Street NW Washington DC 20010 526056274 Hospital DC 501(c)(3) 3 NA true The Medstar-Georgetown Medical Center I Hopsital Admin 1 Main Bldg Washington DC 20007 522218584 Hospital DC 501(c)(3) 3 NA true Washington Hospital Center Corporation 110 Irving Street NW Washington DC 20010 521272129 Hospital DC 501(c)(3) 3 NA true HH Medstar Health Inc 5565 Sterrett Place 5th Floor Columbia MD 21044 521542230 Medical Svcs MD 501(c)(3) 11b II NA true Bay Development Corp 5565 Sterrett 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521429853 Admin Svcs MD 501(c)(3) 11a I NA true Harbor Hospital Foundation Inc 3001 South Hanover Street Baltimore MD 21225 521284532 Foundation MD 501(c)(3) 11a I NA true Medstar Health Infusion Inc 4061 Powdermill Road Suite 210 Calverton MD 20705 521980510 Medical Svcs MD 501(c)(3) 9 NA true Medstar Health Visiting Nurses Associati 4061 Powdermill Road Calverton MD 20705 530196597 Medical Svcs MD 501(c)(3) 9 NA true Medstar VNA Healthcare 4061 Powdermill Road Suite 210 Calverton MD 20705 521458516 Medical Svcs MD 501(c)(3) 9 NA true MGH Community Health Inc 18101 Prince Philip Drive Olney MD 20832 521372467 Medical Svcs MD 501(c)(3) 9 NA true MGH Health Foundation Inc 18101 Prince Philip Drive Olney MD 20832 521129959 Foundation MD 501(c)(3) 7 NA true MGH Health Services Inc 18101 Prince Philip Drive Olney MD 20832 521366812 Foundation MD 501(c)(3) 11a I NA true MGH Women's Board 18101 Prince Philip Drive Olney MD 20832 526039600 Foundation MD 501(c)(3) 11a I NA true National Rehabilitation Hospital 102 Irving Street NW Washington DC 20010 521369749 Hospital DC 501(c)(3) 3 NA true Regional Rehab at Olney Inc 18101 Prince Philip Drive Olney MD 20832 522310902 Medical Svcs MD 501(c)(3) 3 NA true Suburban NRH Medical Rehabilitation I 102 Irving Street NW Washington DC 20010 521931151 Medical Svcs DC 501(c)(3) 3 NA true The Thomas O'Neil Catholic Health Care F 5601 Loch Raven Blvd Baltimore MD 21239 521104382 Foundation MD 501(c)(3) 11a I NA true Union Memorial Hospital Foundation Inc 201 East University Parkway Baltimore MD 21218 521446828 Foundation MD 501(c)(3) 11a I NA true VNA Inc 4061 POWDERMILL ROAD SUITE 21 CALVERTON MD 20705 521332411 ADMIN SVCS MD 501(C)(3) 11A I NA true WHC Foundation Inc 4061 Powdermill Road Suite 210 Calverton MD 20705 521332411 Admin Svcs MD 501(c)(3) 11a I NA true Woodbourne Woods Inc 110 Irving Street NW Washington DC 20010 521791670 Foundation DC 501(c)(3) 11a I NA true Hospice of St Mary's Inc 5601 Loch Raven Blvd Baltimore MD 21239 522299070 Elder Housing MD 501(c)(3) 9 NA true St Mary's Hospital of St Mary's County 25500 Point Lookout Road Leonardtown MD 20650 520619006 Hospital MD 501(c)(3) 3 NA true St Mary's Hospital Foundation Inc PO Box 527 Leonardtown MD 20650 521051368 Support Org MD 501(c)(3) 11d III NA true Surgicenter at Pasadena LLC 5565 Sterrett Place 5th Floor Columbia MD 21044 522009504 Medical Services MD NA SJMC-RA LLC 5565 Sterrett Place 5th Floor Columbia MD 21044 753160895 Radiation Therapy MD NA Physician Imaging of Washington Hospital 6525 Belcrest Road Suite G 50 Hyattsville MD 20782 562616090 Lab Services MD NA MedStar Pharmacies Inc 5565 Sterrett Place 5th Floor Columbia MD 21044 521513056 Drug Sales MD NA C Corp ExtenCare Inc 5565 Sterrett Place 5th Floor Columbia MD 21044 521556228 Medical Servi MD NA C Corp Helix Resources Management Inc 5565 Sterrett Place 5th Floor Columbia MD 21044 521913070 Admin Services MD NA C Corp HelixCare Medical Group LLC 5565 Sterrett Place 5th Floor 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