2013-05-10T10:54:03-05:00 2012-06-30 KPMG LLP 440 Monticello Ave Suite 1900 Norfolk VA 235102674 990 2011-07-01 520608007 FRANKLIN SQUARE HOSPITAL CENTER INC % MARC BERGER FRAN 4107726719 9000 FRANKLIN SQUARE DRIVE BALTIMORE MD 21237 MARC R BERGER 4107726719 2013-05-08 true 7576167000 2011 2016-02-24 21:20:13Z MEDSTAR FRANKLIN SQUARE MEDICAL CTR SAMUEL MOSKOWITZ 9000 Franklin Square Drive Baltimore MD 21237 480983815 false X WWW.FRANKLINSQUARE.ORG X 1898 MD MEDSTAR FRANKLIN SQUARE MEDICAL CENTER, A MEMBER OF MEDSTAR HEALTH, PROVIDES THE HIGHEST QUALITY HEALTHCARE AND EDUCATION TO OUR COMMUNITIES. 20 14 4224 400 0 2172692 1554945 447746775 476231442 27046 12182 2973353 3185246 452919866 480983815 0 0 0 0 218337018 232143143 0 0 0 216493339 233809279 434830357 465952422 18089509 15031393 310161018 310089431 73232767 78798968 236928251 231290463 X AS A PROUD MEMBER OF MEDSTAR HEALTH, MEDSTAR FRANKLIN SQUARE MEDICAL CENTER'S MISSION IS TO PROVIDE SAFE, HIGH QUALITY CARE, EXCELLENT SERVICE, AND EDUCATION TO IMPROVE THE HEALTH OF THE COMMUNITY. MEDSTAR FRANKLIN SQUARE MEDICAL CENTER (MFSMC) IS AN ACUTE-CARE TEACHING HOSPITAL LOCATED IN EASTERN BALTIMORE COUNTY, MARYLAND. THE HOSPITAL'S CANCER INSTITUTE IS A 64,000 SQUARE FOOT FACILITY PROVIDING CANCER PATIENTS AND THEIR FAMILIES WITH A BROAD RANGE OF ONCOLOGY SERVICES, INCLUDING SCREENING, DIAGNOSIS AND TREATMENT. IN FISCAL YEAR 2012, MFSMC HAD 24,490 INPATIENT ADMISSIONS, 285,458 OUTPATIENT VISITS, AND 114,684 EMERGENCY VISITS. false false 371551652 0 459152894 MEDSTAR FRANKLIN SQUARE MEDICAL CENTER'S LARGEST PROGRAM IS ACCESS TO AND THE PROVISION OF ACUTE HOSPITAL SERVICES TO THE COMMUNITIES OF EASTERN BALTIMORE COUNTY, MARYLAND AND THE SURROUNDING AREAS. IN ADDITION TO THE PROGRAM SERVICE EXPENSES LISTED ABOVE, MFSMC INCURRED $57.7M OF MANAGEMENT AND GENERAL EXPENSES IN PROVIDING SERVICES TO ITS COMMUNITIES. MFSMC OFFERS CLINICAL SERVICES IN MEDICINE, SURGERY, ONCOLOGY, OBSTETRICS, CARDIOLOGY (INCLUDING ANGIOPLASTY), PEDIATRICS, GYNECOLOGY, AND PSYCHIATRY. FOR ADDITIONAL INFORMATION, SEE SCHEDULE O. 21496191 0 17078548 MEDSTAR FRANKLIN SQUARE MEDICAL CENTER PROVIDED $21.5M IN SUBSIDIZED (MISSION DRIVEN) HEALTH SERVICES IN FISCAL YEAR 2012. THESE CRITICAL SERVICES, WHICH ARE DRIVEN BY COMMUNITY NEEDS, OPERATE AT A LOSS. THEY ADDRESS PRIORITIES PRIMARILY THROUGH DISEASE PREVENTION AND IMPROVEMENT OF HEALTH STATUS. SERVICES INCLUDE OPERATION AND MANAGEMENT OF THE FAMILY HEALTH CENTER, HOMELESS HEALTH SERVICES, PRIMARY CARE SERVICES, HOSPITALISTS, AND EMERGENCY AND TRAUMA SERVICES. 15155932 0 0 MEDSTAR FRANKLIN SQUARE MEDICAL CENTER PROVIDED $15.2M IN HEALTH PROFESSIONS EDUCATION IN FISCAL YEAR 2012. THIS CATEGORY INCLUDES TRAINING IN GRADUATE MEDICAL EDUCATION, AND EDUCATION FOR PHYSICIANS, MEDICAL STUDENTS, NURSES, AND OTHER HEALTH PROFESSIONS. 408203775 true false false false false false false false false false true false false false true true false true false false false false false false false false true true false false true false false false false false false false true false false false false true true true true false false true 0 0 true 4224 true false false false false false true true false false false false X 20 14 false false true false true true true 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 MOHAMAD M ALABRASH MD 1.0 X 35000 0 0 WILLIAM D MCLAUGHLIN 1.0 X 0 0 0 SAMUEL MOSKOWITZ 1.0 X 0 0 0 KENNETH A SAMET 1.0 X 0 6126151 183379 HATEM ABDO MD 1.0 X 0 0 0 KHALID AL-TALIB MD 1.0 X 1844 0 0 IRA GUBERNICK MD 1.0 X 0 0 0 GEORGE J JABAJI MD 1.0 X 38709 0 0 VINCENT MARTORANA DPM 1.0 X 0 0 0 MICHAEL D SUTER MD 1.0 X 0 0 0 DEBRA B DOYLE 1.0 X 0 0 0 MICHAEL L DIETRICH 1.0 X 0 0 0 ELIZABETH S GLENN 1.0 X 0 0 0 BISHOP CLIFFORD M JOHNSON JR 1.0 X 0 0 0 COLLEEN LOPRESTO 1.0 X 0 0 0 PATRICIA R NORMAN 1.0 X 0 0 0 CHARLES PICCININI 1.0 X 0 0 0 RICHARD W SINGLE SR 1.0 X 0 0 0 DEBORAH M TURNER 1.0 X 0 0 0 THOMAS S WINTZ 1.0 X 0 0 0 JOHN B FRANZONE 1.0 X 0 0 0 G SCOTT BARHIGHT 1.0 X 0 0 0 DENNIS RASMUSSEN 1.0 X 0 0 0 CARL J SCHINDELAR 1.0 X X 0 1080736 46584 ADRIENNE KIRBY 40.0 X X 675122 0 8985 ANTHONY SCALMA 40.0 X 519089 0 32776 ROBERT LALLY 40.0 X 342671 0 45142 LAWRENCE STRASSNER 40.0 X 308036 0 19787 GLENN VISBEEN 40.0 X 312064 0 12596 KAMYUN AUYEUNG 40.0 X 426957 0 9013 WILLIAM MCGUIRE 40.0 X 471085 0 1053 WILLIAM WATERFIELD 40.0 X 420940 0 12225 ALBERT FLEISHER 40.0 X 430852 0 16338 JEROLD FLEISHMAN 40.0 X 434315 0 15332 4416684 7206887 403210 265 false true false CHESAPEAKE PERIOPERATIVE SERVICES PO BOX 17568 BALTIMORE MD 21297 MEDICAL SERVICES 9870535 BOVIS LEND LEASE ONE PRESERVE PARKWAY ROCKVILLE MD 20852 CONSTRUCTION MGMT 4414938 MORRISON MANAGEMENT SPECIALIST 4721 MORRISON DRIVE MOBILE AL 36609 FOOD SRVC PROVIDER 3874905 PULMONARY CRITICAL CARE 400 REDLAND COURT OWINGS MILL MD 211173292 MEDICAL SERVICES 1426975 NURSEFINDERS PO BOX 910738 DALLAS TX 753910738 MEDICAL STAFFING 2447198 41 1554945 1554945 NET PATIENT SERVICE REVENUE 621300 472121680 472121680 PHARMACY 900099 4048021 4048021 HEALTH EDUCATION 900099 61741 61741 476231442 9742 0 9742 0 0 362278 362278 362278 362278 2440 2440 2440 2440 0 0 0 0 REBATE INCOME 900099 1391082 0 1391082 PARKING LOT REVENUE 812930 94545 94545 NSABP REVENUE 900099 41378 41378 1295963 0 1295963 2822968 480983815 476231442 0 3197428 0 0 0 0 2276268 2057678 218590 0 188946161 170801674 18144487 4171525 3770934 400591 23164917 20940392 2224525 13584272 11905634 1678638 26680737 32197 26648540 17770 15000 2770 0 0 0 0 44678806 41769054 2909752 929070 58742 870328 3363061 2167401 1195660 83622 77866 5756 0 1767471 1775198 -7727 513283 429292 83991 43626 31413 12213 0 11137867 11137867 0 22750609 22750609 8947832 8545699 402133 DRUGS/PHARMACY 29386768 29350387 36381 0 MEDICAL/SURGICAL SUPPLIES 26710769 26674147 36622 BAD DEBTS 23112824 23112824 IMPLANTS/PROST. 9222327 9222327 24462837 21577440 2885397 465952422 408203775 57748647 0 6428 6828 194039 349327 0 0 61540128 72880403 0 0 0 0 0 0 6680009 5919485 931948 1453322 452764967 225024602 238588889 227740365 0 0 485215 451916 0 0 0 0 1734362 1287785 310161018 310089431 40284965 42397495 0 0 323611 221279 0 0 0 0 0 0 0 0 0 0 32624191 36180194 73232767 78798968 X 236443036 230838547 485215 451916 0 0 236928251 231290463 310161018 310089431 X 15031393 -20669181 X false true true X false X 386702 386702 158606037 75383287 83222750 2673466 1460201 1213265 260975043 141721479 119253564 30123718 6459634 23664084 227740365 0 ADVANCED FROM 3RD PARTY PAYORS 14633643 WORKERS COMPENSATION 5431422 STOCK OPTION PLAN 605182 ASBESTOS ABATEMENT LIABILITY 198124 OTHER LIABILITY 15311823 36180194 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. THERE WAS NO LIABILITY RECORDED FOR UNCERTAIN TAX POSITIONS AS OF JUNE 30, 2012. true true X true X true X true true true false true true 0 10008413 0 10008413 0.02150 0 0 0 0 0.00000 0 10008413 0 10008413 0.02150 140 276227 1930455 154919 1775536 0.00380 14 1390 15155932 0 15155932 0.03250 5 394 21496191 17078548 4417643 0.00950 1 0 24385 0 24385 0.00010 9 270 242856 795 242061 0.00050 169 278281 38849819 17234262 21615557 0.04640 169 278281 48858232 17234262 31623970 0.06790 0 0 0 0 0.00000 0 0 0 0 0.00000 3 39 45870 0 45870 0.00010 0 0 0 0 0.00000 1 34 2130 0 2130 4 68 33854 0 33854 0.00010 0 0 0 0 0.00000 0 0 0 0 0.00000 8 141 81854 0 81854 0.00020 true 23112824 0 0 0 X true true 1 1 FRANKLIN SQUARE HOSPITAL CENTER

9000 FRANKLIN SQUARE DRIVE BALTIMORE MD 212373901

X X X X X X FAST TRACK ER FRANKLIN SQUARE HOSPITAL CENTER 1 true X X X X X X X X X 12 true false true X X X X X X X X X X true true 200. true 400. true X X X X X X true true X X X X true false true X false false CHARITY CARE AT COST PART I, LINE 7A MARYLAND'S REGULATORY SYSTEM CREATES A UNIQUE PROCESS FOR HOSPITAL PAYMENT THAT DIFFERS FROM THE REST OF THE NATION. THE HEALTH SERVICES COST REVIEW COMMISSION (HSCRC), DETERMINES PAYMENT THROUGH A RATE-SETTING PROCESS AND ALL PAYORS, INCLUDING GOVERNMENTAL PAYORS, PAY THE SAME AMOUNT FOR THE SAME SERVICES DELIVERED AT THE SAME HOSPITAL. MARYLAND'S UNIQUE ALL-PAYOR SYSTEM INCLUDES A METHOD FOR REFERENCING UNCOMPENSATED CARE IN EACH PAYORS' RATES, WHICH DOES NOT ENABLE MARYLAND HOSPITALS TO BREAKOUT ANY OFFSETTING REVENUE RELATED TO UNCOMPENSATED CARE. UNREIMBURSED MEDICAID PART I, LINE 7B MARYLAND'S REGULATORY SYSTEM CREATES A UNIQUE PROCESS FOR HOSPITAL PAYMENT THAT DIFFERS FROM THE REST OF THE NATION. THE HEALTH SERVICES COST REVIEW COMMISSION (HSCRC), DETERMINES PAYMENT THROUGH A RATE-SETTING PROCESS AND ALL PAYORS, INCLUDING GOVERNMENTAL PAYORS, PAY THE SAME AMOUNT FOR THE SAME SERVICES DELIVERED AT THE SAME HOSPITAL. MARYLAND'S UNIQUE ALL-PAYOR SYSTEM INCLUDES A METHOD FOR REFERENCING UNCOMPENSATED CARE IN EACH PAYORS' RATES, WHICH DOES NOT ENABLE MARYLAND HOSPITALS TO BREAKOUT ANY OFFSETTING REVENUE RELATED TO UNCOMPENSATED CARE. COMMUNITY BENEFIT EXPENSES ARE EQUAL TO MEDICAID REVENUES IN MARYLAND, AS SUCH, THE NET EFFECT IS ZERO. THE EXCEPTION TO THIS IS THE IMPACT ON THE HOSPITAL OF ITS SHARE OF THE MEDICAID ASSESSMENT. IN RECENT YEARS, THE STATE OF MARYLAND HAS CLOSED FISCAL GAPS IN THE STATE MEDICAID BUDGET BY ASSESSING HOSPITALS THROUGH THE RATE-SETTING SYSTEM. HEALTH PROFESSIONS EDUCATION PART I, LINE 7F MARYLAND'S REGULATORY SYSTEM CREATES A UNIQUE PROCESS FOR HOSPITAL PAYMENT THAT DIFFERS FROM THE REST OF THE NATION. THE HEALTH SERVICES COST REVIEW COMMISSION (HSCRC), DETERMINES PAYMENT THROUGH A RATE-SETTING PROCESS AND ALL PAYORS, INCLUDING GOVERNMENTAL PAYORS, PAY THE SAME AMOUNT FOR THE SAME SERVICES DELIVERED AT THE SAME HOSPITAL. MARYLAND'S UNIQUE ALL-PAYOR SYSTEM INCLUDES A METHOD FOR REFERENCING UNCOMPENSATED CARE IN EACH PAYORS' RATES, WHICH DOES NOT ENABLE MARYLAND HOSPITALS TO BREAKOUT ANY OFFSETTING REVENUE RELATED TO UNCOMPENSATED CARE. PERCENT OF TOTAL EXPENSE PART I, LINE 7, COLUMN(F) BAD DEBT EXPENSE OF $23,112,824 HAS BEEN REMOVED FROM TOTAL EXPENSE TO CALCULATE THE PERCENTAGES IN COLUMN (F). BAD DEBT PART III, LINE 4 MEDSTAR HEALTH AND ITS AFFILIATED ORGANIZATIONS REPORT BAD DEBT EXPENSE IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) AND HFMA 15. AMOUNTS THAT ARE NOT EXPECTED TO BE COLLECTED, FOR PATIENTS QUALIFYING UNDER MEDSTAR HEALTH'S FINANCIAL ASSISTANCE POLICY, ARE WRITTEN OFF TO CHARITY CARE AND REPORTED AS A REDUCTION TO REVENUE. BAD DEBT EXPENSE RESULTS FROM MANAGEMENT'S INABILITY TO COLLECT REVENUES THAT MEET THE GAAP CRITERIA FOR REVENUE RECOGNITION. BAD DEBT REPRESENTS AN OPERATING EXPENSE AND IS REFLECTED AS A SEPARATE LINE ITEM ON THE ORGANIZATION'S STATEMENT OF OPERATIONS. HOWEVER, MEDSTAR AND ITS AFFILIATED ENTITIES DO NOT MAKE A DETERMINATION AS TO WHETHER SELF PAY AMOUNTS ARE COLLECTIBLE IN DETERMINING REVENUE RECOGNITION. RESERVE MODELS, WHICH HAVE BEEN DEVELOPED BASED ON HISTORICAL COLLECTION RESULTS AND WHICH ARE ADJUSTED PERIODICALLY BASED ON ACTUAL COLLECTIONS EXPERIENCE, ARE USED TO ESTIMATE UNCOLLECTIBLE AMOUNTS ACROSS ALL PAYORS INCLUDING SELF PAY. BAD DEBT DETERMINATIONS ARE MADE ONLY AFTER SUFFICIENT EVIDENCE IS OBTAINED TO SUPPORT THAT AN AMOUNT IS NOT COLLECTIBLE. MEDICARE PART III, LINE 8 MARYLAND'S REGULATORY SYSTEM CREATES A UNIQUE PROCESS FOR HOSPITAL PAYMENT THAT DIFFERS FROM THE REST OF THE NATION. THE HEALTH SERVICES COST REVIEW COMMISSION (HSCRC) DETERMINES PAYMENT THROUGH A RATE-SETTING PROCESS AND ALL PAYORS, INCLUDING GOVERNMENTAL PAYORS, PAY THE SAME AMOUNT FOR THE SAME SERVICES DELIVERED AT THE SAME HOSPITAL. MARYLAND'S UNIQUE ALL-PAYOR SYSTEM INCLUDES A METHOD FOR REFERENCING UNCOMPENSATED CARE IN EACH PAYORS' RATES, WHICH DOES NOT ENABLE MARYLAND HOSPITALS TO BREAKOUT ANY OFFSETTING REVENUE RELATED TO UNCOMPENSATED CARE. AS SUCH, THE NET EFFECT FOR MEDICARE EXPENSES AND REVENUES IN MARYLAND IS ZERO. NEEDS ASSESSMENT PART V, SECTION B, LINE 7 THE IMPLEMENTATION STRATEGIES SERVE AS A ROADMAP FOR HOW COMMUNITY BENEFIT RESOURCES WILL BE ALLOCATED AND DEPLOYED. MEDSTAR'S HOSPITALS WILL BE ABLE TO MEASURE OUR CONTRIBUTION TO IMPROVING THE HEALTH OF UNDERSERVED AND VULNERABLE POPULATIONS IN THE REGIONS WE SERVE. THREE-YEAR IMPLEMENTATION STRATEGIES WITH MEASURABLE OBJECTIVES WERE DEVELOPED FOR EACH HOSPITAL'S COMMUNITY BENEFIT SERVICE AREA - A SPECIFIC COMMUNITY OR TARGET POPULATION OF FOCUS. PRIORITIES WERE BASED ON COMMUNITY NEED AS DETERMINED BY QUANTITATIVE DATA AND COMMUNITY INPUT, AS WELL AS ON HOSPITAL EXPERTISE, RESOURCES, STRENGTHS OF EXISTING PROGRAMMING AND PARTNERSHIPS, AND ALIGNMENT WITH NATIONAL, STATE, AND LOCAL HEALTH GOALS. THE MEDSTAR HEALTH CORPORATE COMMUNITY HEALTH DEPARTMENT WILL PROVIDE SYSTEM-WIDE COORDINATION AND OVERSIGHT OF COMMUNITY BENEFIT PROGRAMMING. PART VI, LINE 2 IN FY12, MEDSTAR FRANKLIN SQUARE MEDICAL CENTER CONDUCTED A COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA) IN ACCORDANCE WITH THE GUIDELINES ESTABLISHED BY THE PATIENT PROTECTION AND AFFORDABLE CARE ACT AND THE INTERNAL REVENUE SERVICE. THE HOSPITAL'S CHNA WAS LED BY 14 ADVISORY TASK FORCE (ATF) MEMBERS, WHICH WAS COMPRISED OF A DIVERSE GROUP OF INDIVIDUALS, INCLUDING COMMUNITY RESIDENTS, HOSPITAL REPRESENTATIVES, PUBLIC HEALTH LEADERS, AND OTHER STAKEHOLDER ORGANIZATIONS, SUCH AS REPRESENTATIVES FROM LOCAL HEALTH DEPARTMENTS. THE ATF REVIEWED QUANTITATIVE AND QUALITATIVE COMMUNITY HEALTH DATA, AS WELL AS LOCAL, REGIONAL AND NATIONAL HEALTH GOALS. BASED ON THEIR FINDINGS, ATF MEMBERS DESIGNED A SURVEY TO IDENTIFY TRENDS IN HOW PARTICIPANTS PERCEIVED THE SEVERITY OF KEY HEALTH ISSUES IN THE FOLLOWING CATEGORIES: WELLNESS AND PREVENTION, ACCESS TO CARE, QUALITY OF LIFE, AND ENVIRONMENT. COMMUNITY MEMBERS RESPONDED TO THE SURVEY BY ATTENDING A COMMUNITY INPUT SESSION OR COMPLETING IT ONLINE OR VIA HARDCOPY. BASED ON THE ATF'S RECOMMENDATION, THE HOSPITAL IDENTIFIED SOUTHEAST BALTIMORE COUNTY AS ITS COMMUNITY BENEFIT SERVICE AREA (CBSA) - A GEOGRAPHY WITH A HIGH DENSITY OF LOW-INCOME OR VULNERABLE RESIDENTS WITHIN CLOSE PROXIMITY OF THE HOSPITAL. HEALTH PRIORITIES FOR THE CBSA INCLUDE HEART DISEASE, SUBSTANCE ABUSE, AND ASTHMA. THE HOSPITAL'S FY12 CHNA AND 3-YEAR IMPLEMENTATION STRATEGIES WERE ENDORSED BY MEDSTAR FRANKLIN SQUARE'S BOARD OF DIRECTORS AND APPROVED BY THE MEDSTAR HEALTH BOARD OF DIRECTORS. THE DOCUMENT BECAME AVAILABLE ON THE HOSPITAL'S WEBSITE ON JUNE 30, 2012. AS A PROUD MEMBER OF MEDSTAR HEALTH, REPRESENTATIVES FROM MEDSTAR FRANKLIN SQUARE ROUTINELY PARTICIPATE IN THE MEDSTAR HEALTH COMMUNITY BENEFIT WORKGROUP. THE WORKGROUP IS COMPRISED OF COMMUNITY HEALTH PROFESSIONALS WHO REPRESENT ALL NINE MEDSTAR HOSPITALS. THE TEAM ANALYZES LOCAL AND REGIONAL COMMUNITY HEALTH DATA, ESTABLISHES SYSTEM-WIDE COMMUNITY HEALTH PROGRAMMING PERFORMANCE AND EVALUATION MEASURES AND SHARES BEST PRACTICES. PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE PART VI, LINE 3 AS ONE OF THE REGION'S LEADING NOT-FOR-PROFIT HEALTHCARE SYSTEMS, MEDSTAR HEALTH IS COMMITTED TO ENSURING THAT UNINSURED PATIENTS WITHIN THE COMMUNITIES WE SERVE WHO LACK FINANCIAL RESOURCES HAVE ACCESS TO NECESSARY HOSPITAL SERVICES. MEDSTAR HEALTH AND ITS HEALTHCARE FACILITIES WILL: " TREAT ALL PATIENTS EQUITABLY, WITH DIGNITY, WITH RESPECT AND WITH COMPASSION. " SERVE THE EMERGENCY HEALTH CARE NEEDS OF EVERYONE WHO PRESENTS AT OUR FACILITIES REGARDLESS OF A PATIENT'S ABILITY TO PAY FOR CARE. " ASSIST THOSE PATIENTS WHO ARE ADMITTED THROUGH OUR ADMISSIONS PROCESS FOR NON-URGENT, MEDICALLY NECESSARY CARE WHO CANNOT PAY FOR PART OF ALL OF THE CARE THEY RECEIVE. " BALANCE NEEDED FINANCIAL ASSISTANCE FOR SOME PATIENTS WITH BROADER FISCAL RESPONSIBILITIES IN ORDER TO KEEP ITS HOSPITALS' DOORS OPEN FOR ALL WHO MAY NEED CARE IN THE COMMUNITY. IN MEETING ITS COMMITMENTS, MEDSTAR HEALTH'S FACILITIES WILL WORK WITH THEIR UNINSURED PATIENTS TO GAIN AN UNDERSTANDING OF EACH PATIENT'S FINANCIAL RESOURCES PRIOR TO ADMISSION (FOR SCHEDULED SERVICES) OR PRIOR TO BILLING (FOR EMERGENCY SERVICES). BASED ON THIS INFORMATION AND PATIENT ELIGIBILITY, MEDSTAR HEALTH'S FACILITIES WILL ASSIST UNINSURED PATIENTS WHO RESIDE WITHIN THE COMMUNITIES WE SERVE IN ONE OR MORE OF THE FOLLOWING WAYS: " ASSIST WITH ENROLLMENT IN PUBLICLY-FUNDED ENTITLEMENT PROGRAMS (E.G., MEDICAID). " ASSIST WITH CONSIDERATION OF FUNDING THAT MAY BE AVAILABLE FROM OTHER CHARITABLE ORGANIZATIONS. " PROVIDE CHARITY CARE AND FINANCIAL ASSISTANCE ACCORDING TO APPLICABLE GUIDELINES. " PROVIDE FINANCIAL ASSISTANCE FOR PAYMENT OF FACILITY CHARGES USING A SLIDING SCALE BASED ON PATIENT FAMILY INCOME AND FINANCIAL RESOURCES. " OFFER PERIODIC PAYMENT PLANS TO ASSIST PATIENTS WITH FINANCING THEIR HEALTHCARE SERVICES. EACH FACILITY WILL POST THE POLICY, INCLUDING A DESCRIPTION OF THE APPLICABLE COMMUNITIES IT SERVES, IN EACH MAJOR PATIENT REGISTRATION AREA AND IN ANY OTHER AREAS REQUIRED BY APPLICABLE REGULATIONS, WILL COMMUNICATE THE INFORMATION TO PATIENTS AS REQUIRED BY THIS POLICY AND APPLICABLE REGULATIONS AND WILL MAKE A COPY OF THE POLICY AVAILABLE TO ALL PATIENTS. ADDITIONALLY, THE MARYLAND PATIENT INFORMATION SHEET/MEDSTAR'S PATIENT INFORMATION SHEET WILL BE PROVIDED TO INPATIENTS ON ADMISSION AND AT TIME OF FINAL ACCOUNT BILLING. MEDSTAR HEALTH BELIEVES THAT ITS PATIENTS HAVE PERSONAL RESPONSIBILITIES RELATED TO THE FINANCIAL ASPECTS OF THEIR HEALTHCARE NEEDS. THE CHARITY CARE, FINANCIAL ASSISTANCE, AND PERIODIC PAYMENT PLANS AVAILABLE UNDER THIS POLICY WILL NOT BE AVAILABLE TO THOSE PATIENTS WHO FAIL TO FULFILL THEIR RESPONSIBILITIES. FOR PURPOSES OF THIS POLICY, PATIENT RESPONSIBILITIES INCLUDE: " COMPLETING FINANCIAL DISCLOSURE FORMS NECESSARY TO EVALUATE THEIR ELIGIBILITY FOR PUBLICLY-FUNDED HEALTHCARE PROGRAMS, CHARITY CARE PROGRAMS, AND OTHER FORMS OF FINANCIAL ASSISTANCE. THESE DISCLOSURE FORMS MUST BE COMPLETED ACCURATELY, TRUTHFULLY, AND TIMELY TO ALLOW MEDSTAR HEALTH'S FACILITIES TO PROPERLY COUNSEL PATIENTS CONCERNING THE AVAILABILITY OF FINANCIAL ASSISTANCE. " WORKING WITH THE FACILITY'S FINANCIAL COUNSELORS AND OTHER FINANCIAL SERVICES STAFF TO ENSURE THERE IS A COMPLETE UNDERSTANDING OF THE PATIENT'S FINANCIAL SITUATION AND CONSTRAINTS. " COMPLETING APPROPRIATE APPLICATIONS FOR PUBLICLY-FUNDED HEALTHCARE PROGRAMS. THIS RESPONSIBILITY INCLUDES RESPONDING IN A TIMELY FASHION TO REQUESTS FOR DOCUMENTATION TO SUPPORT ELIGIBILITY. " MAKING APPLICABLE PAYMENTS FOR SERVICES IN A TIMELY FASHION, INCLUDING ANY PAYMENTS MADE PURSUANT TO DEFERRED AND PERIODIC PAYMENT SCHEDULES. " PROVIDING UPDATED FINANCIAL INFORMATION TO THE FACILITY'S FINANCIAL COUNSELORS ON A TIMELY BASIS AS THE PATIENT'S CIRCUMSTANCES MAY CHANGE. " IT IS THE RESPONSIBILITY OF THE PATIENT TO INFORM THE MEDSTAR HOSPITAL OF THEIR EXISTING ELIGIBILITY UNDER A MEDICAL HARDSHIP DURING THE 12 MONTH PERIOD. UNINSURED PATIENTS OF MEDSTAR HEALTH'S FACILITIES MAY BE ELIGIBLE FOR CHARITY CARE OR SLIDING-SCALE FINANCIAL ASSISTANCE UNDER THIS POLICY. THE FINANCIAL COUNSELORS AND FINANCIAL SERVICES STAFF WILL DETERMINE ELIGIBILITY FOR CHARITY CARE AND SLIDING-SCALE FINANCIAL ASSISTANCE BASED ON REVIEW OF INCOME FOR THE PATIENT AND THEIR FAMILY (HOUSEHOLD), OTHER FINANCIAL RESOURCES AVAILABLE TO THE PATIENT'S FAMILY, FAMILY SIZE, AND THE EXTENT OF THE MEDICAL COSTS TO BE INCURRED BY THE PATIENT. COMMUNITY INFORMATION PART VI, LINE 4 GEOGRAPHIC LOCATED IN THE ROSEDALE SECTION OF EASTERN BALTIMORE COUNTY, MARYLAND, MEDSTAR FRANKLIN SQUARE'S COMMUNITY BENEFIT SERVICE AREA (CBSA) INCLUDES NEIGHBORHOODS IN SOUTHEASTERN BALTIMORE COUNTY AND ADJACENT TO THE CHESAPEAKE BAY INCLUDING OVERLEA (21206), EDGEMERE (21219), MIDDLE RIVER (21220), ESSEX (21221), DUNDALK (21222, 21224), ROSEDALE (21237), NOTTINGHAM (21236) AND PERRY HALL (21128). SIGNIFICANT DEMOGRAPHIC CHARACTERISTICS RELEVANT TO THE NEEDS THE HOSPITAL SEEKS TO MEET THIS AREA HAS A BASE POPULATION OF APPROXIMATELY 230,544 INDIVIDUALS. THE SERVICE AREA HAS BECOME A MUCH MORE DIVERSE COMMUNITY OVER THE PAST FEW DECADES. THE AREA, PARTICULARLY EASTERN BALTIMORE CITY AND EASTERN BALTIMORE COUNTY, CAN BE DESCRIBED AS BLUE-COLLAR, HIGH SCHOOL EDUCATED, AND ECONOMICALLY DEPRESSED, WITH A POPULATION CONSISTING OF CAUCASIANS (83.8%), AFRICAN-AMERICANS (11.8%), ASIAN/PACIFIC ISLANDERS (2.0%), HISPANICS/LATINOS (1.5%), AND AMERICAN INDIANS/ALASKA NATIVES (0.3%). OVER ONE-THIRD (36.6%) OF THE POPULATION IS EITHER VERY YOUNG OR ELDERLY, WITH 22.0% OF RESIDENTS UNDER THE AGE OF EIGHTEEN AND 14.6% OVER 65 YEARS OF AGE. POVERTY IS A SIGNIFICANT PROBLEM IN EASTERN BALTIMORE COUNTY. FORTY-SIX PERCENT (46%) OF THE RESIDENTS ABOVE 24 YEARS OF AGE HAVE A HIGH SCHOOL OR LOWER LEVEL OF EDUCATION. THE MEDIAN HOUSEHOLD INCOME IN THE ESSEX/MIDDLE RIVER/DUNDALK AREA OF APPROXIMATELY $49,200 IS MUCH LOWER THAN THE OVERALL COUNTY MEDIAN OF $74,750. BASED ON HOSPITAL UTILIZATION DATA, THE NUMBER OF INDIVIDUALS WHO ARE UNINSURED OR UNDERINSURED IN THE HOSPITAL'S CATCHMENT AREA IS ESTIMATED TO BE 38% AND GROWING. THIS IS A DIRECT RESULT OF THE DECLINE IN MANUFACTURING INDUSTRIES IN THE REGION, WHICH ARE BEING REDUCED OR DECLARING BANKRUPTCY (E.G., GENERAL MOTORS OLDSMOBILE ASSEMBLY PLANT AND BETHLEHEM STEEL CORPORATION, BOTH OF WHOM WERE PREVIOUSLY MAJOR EMPLOYERS IN THE AREA). CURRENTLY, THE LARGEST EMPLOYER IN THE AREA IS THE HOSPITAL. THE INCREASING NUMBER OF FAMILIES AND INDIVIDUALS WITH EITHER NO HEALTH INSURANCE OR SEVERELY CURBED HEALTH INSURANCE REPRESENTS A SERIOUS CONCERN FOR THE HEALTHCARE COMMUNITY AND GOVERNMENT AGENCIES. PROMOTION OF COMMUNITY HEALTH PART VI, LINE 5 AS A COMMUNITY PARTNER, MEDSTAR FRANKLIN SQUARE ENGAGES IN A NUMBER OF COMMUNITY BENEFIT ACTIVITIES TO IMPROVE AND PROMOTE THE HEALTH AND WELLBEING OF THE COMMUNITY. FOR EXAMPLE, THE HOSPITAL PROVIDES ACCESS TO HIGH QUALITY HEALTH SERVICES FOR THE HOMELESS, AS WELL AS COMPREHENSIVE CHILD ABUSE SERVICES. IN PARTNERSHIP WITH THE BALTIMORE COUNTY DEPARTMENT OF HEALTH, THE BALTIMORE COUNTY DEPARTMENT OF SOCIAL SERVICES, AND HEALTHCARE FOR THE HOMELESS IN BALTIMORE CITY, MEDSTAR FRANKLIN SQUARE PROVIDES FINANCIAL AND IN-KIND SUPPORT TO ENSURE ACCESS TO PRIMARY CARE SERVICES FOR HOMELESS PERSONS. THE HOSPITAL ALSO PROVIDES STAFFING, IN-KIND SUPPORT FOR TECHNICAL ASSISTANCE, INFORMATION TECHNOLOGY, BUDGETING/BILLING, AND PUBLIC RELATIONS AND MARKETING. MEDSTAR FRANKLIN SQUARE ALSO UNDERWRITES EXPENSES FOR LABS AND SPECIALTY SERVICES. MEDSTAR FRANKLIN SQUARE EVALUATES OVER 300 CHILDREN EACH YEAR WHO ARE SUSPECTED OF BEING ABUSED. IN RESPONSE TO THE HIGH INCIDENCE OF ABUSE, THE DEPARTMENT OF PEDIATRICS DEVELOPED A COMPREHENSIVE PROGRAM TO DIAGNOSE AND PREVENT CHILD ABUSE. THE MEDSTAR FRANKLIN SQUARE CHILD PROTECTION TEAM (CPT) BEGAN TO FUNCTION IN NOVEMBER, 2000. THE TEAM IS COMPRISED OF A SOCIAL WORKER COORDINATOR, MEDICAL DIRECTOR, AND ON-CALL SOCIAL WORK AND MEDICAL STAFF. THE TEAM PROVIDES 24/7 COVERAGE TO THE HOSPITAL AND EVALUATES ANY CHILD SUSPECTED OF BEING PHYSICALLY OR SEXUALLY ABUSED. THIS SERVICE HAS PROVEN TO BE A SIGNIFICANT CONTRIBUTION TO THE COMMUNITY - IMPACTING THOUSANDS OF PARENTS AND CHILDREN. AFFILIATED HEALTH CARE SYSTEM PART VI, LINE 6 AS A PROUD MEMBER OF MEDSTAR HEALTH, MEDSTAR FRANKLIN SQUARE IS ABLE TO EXPAND ITS CAPACITY TO MEET THE NEEDS OF THE COMMUNITY BY PARTNERING WITH OTHER MEDSTAR HOSPITALS AND ASSOCIATED ENTITIES. MEDSTAR HEALTH RESOURCES ASSIST THE HOSPITAL IN COMMUNITY HEALTH PLANNING TO MEET THE NEEDS OF THE UNINSURED AND OTHER VULNERABLE POPULATIONS. THROUGH ITS COMMUNITY HEALTH FUNCTION, MEDSTAR HEALTH PROVIDES MEDSTAR FRANKLIN SQUARE WITH TECHNICAL SUPPORT TO ENHANCE COMMUNITY HEALTH PROGRAMMING AND EVALUATION. MEDSTAR'S CORPORATE PHILANTHROPY DEPARTMENT IDENTIFIES AND SEEKS PUBLIC AND PRIVATE FUNDING SOURCES TO ENSURE THE AVAILABILITY OF HIGH QUALITY HEALTH SERVICES, REGARDLESS OF ABILITY TO PAY. STATE FILING OF COMMUNITY BENEFIT REPORT PART VI, LINE 7 THE COMMUNITY BENEFIT REPORT FOR MEDSTAR FRANKLIN SQUARE MEDICAL CENTER IS FILED IN THE STATE OF MARYLAND. X X X X X X false true false false false false false false false KENNETH A SAMET 0 1166887 0 1481670 0 3477594 0 163987 0 19392 0 6309530 0 0 CARL J SCHINDELAR 0 593297 0 487439 0 0 0 27630 0 18954 0 1127320 0 0 ADRIENNE KIRBY 439671 0 235451 0 0 0 0 0 8985 0 684107 0 0 0 KAMYUN AUYEUNG 402561 0 24396 0 0 0 7977 0 1036 0 435970 0 0 0 WILLIAM MCGUIRE 424739 0 46346 0 0 0 0 0 1053 0 472138 0 0 0 WILLIAM WATERFIELD 379173 0 41767 0 0 0 0 0 12225 0 433165 0 0 0 ALBERT FLEISHER 396620 0 34232 0 0 0 0 0 16338 0 447190 0 0 0 JEROLD FLEISHMAN 396894 0 37421 0 0 0 0 0 15332 0 449647 0 0 0 ANTHONY SCALMA 355415 0 163674 0 0 0 11042 0 21734 0 551865 0 0 0 ROBERT LALLY 240024 0 100589 0 2058 0 25067 0 20075 0 387813 0 0 0 LAWRENCE STRASSNER 214480 0 93556 0 0 0 9519 0 10268 0 327823 0 0 0 GLENN VISBEEN 220508 0 76000 0 15556 0 0 0 12596 0 324660 0 0 0 OTHER REPORTABLE COMPENSATION SCHEDULE J, PART I, LINE 4B KENNETH SAMET MR. SAMET'S OTHER REPORTABLE COMPENSATION IN PART II, COLUMN (B) (III) INCLUDES $3,465,504 REPRESENTING HIS ACCRUED BENEFIT IN A SUPPLEMENTAL RETIREMENT PLAN, WHICH WAS EARNED DURING THE PAST 23 YEARS OF SERVICE. THIS AMOUNT WAS NOT ACTUALLY PAID DURING THIS REPORTING PERIOD, BUT WAS REPORTED AS COMPENSATION UNDER FICA TAX-REPORTING RULES. GLENN VISBEEN GLENN VISBEEN'S OTHER REPORTABLE COMPENSATION IN PART II, COLUMN (B) (III) INCLUDES $8,654 REPRESENTING THE AMOUNT OF SEVERANCE PAYMENTS RECEIVED BY MR. VISBEEN. ORTHOPEDIC HAND SURGERY ASSOCIATE SEE PART V 359297 ORTHOPEDIC SERVICES false BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS SCHEDULE L, PART IV DR. IRA GUBERNICK, A BOARD MEMBER AT MEDSTAR FRANKLIN SQUARE MEDICAL CENTER, OWNS MORE THAN 5% OF ORTHOPEDIC & HAND SURGERY ASSOCIATES, P.A. (OHSA), WHICH PROVIDES MANAGEMENT AND SUPPORT SERVICES TO MEDSTAR FRANKLIN SQUARE MEDICAL CENTER'S ORTHOPEDIC, SPORTS MEDICINE, AND EMERGENCY DEPARTMENTS. OHSA'S GROSS REVENUES RECEIVED FROM THE HOSPITAL FOR THE YEAR WERE $0.4 MILLION. DESCRIPTION OF EXEMPT PURPOSE ACHIEVEMENTS PART III, lINE 4A MFSMC attained Magnet Recognition by the American Nurses Credentialing Center (ANCC) in 2008 and is recognized by the Joint Commission as an Advanced Primary Stroke Center. US News and World Report recognized MFSMC as a high performing hospital in gastroenterology, pulmonology, cancer, diabetes, endocrinology, gynecology, orthopedics, nephrology, neurology, neurosurgery, geriatrics and urology. The hospital was also a fourth-time recipient of the Delmarva Foundation for Medical Care's Excellence Award for Quality Improvement in Hospitals. MFSMC was also recognized by HealthGrades as one of the nation's 50 best hospitals for its clinical excellence. 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. ORGANIZATION MEMBERS PART VI, LINE 6 THE ORGANIZATION IS AN AFFILIATE AND SUBSIDIARY OF MEDSTAR HEALTH, INC., A TAX-EXEMPT MARYLAND NON-STOCK CORPORATION. MEDSTAR HEALTH, INC., OR ONE OF ITS AFFILIATES AND SUBSIDIARIES, IS THE SOLE MEMBER OF THE ORGANIZATION. DESCRIPTION OF MEMBERS PART VI, LINE 7A AS AN AFFILIATE AND SUBSIDIARY OF MEDSTAR HEALTH, INC., A TAX-EXEMPT MARYLAND NON-STOCK CORPORATION, THE ORGANIZATION MAY RECOMMEND PERSON(S) FOR MEMBERSHIP ON THE ORGANIZATION'S GOVERNING BODY. ANY SUCH RECOMMENDATION BY THE ORGANIZATION IS SUBJECT TO APPROVAL BY THE GOVERNANCE COMMITTEE OF THE BOARD OF DIRECTORS OF MEDSTAR HEALTH, INC. THE BOARD OF MEDSTAR HEALTH, INC. HAS DELEGATED CERTAIN APPROVAL AUTHORITY TO THE GOVERNANCE COMMITTEE AND THE PRESIDENT & CEO OF MEDSTAR HEALTH, INC. DECISIONS OF GOVERNING BODY PART VI, LINE 7B AS AN AFFILIATE AND SUBSIDIARY OF MEDSTAR HEALTH, INC., A TAX-EXEMPT MARYLAND NON-STOCK CORPORATION, THE BYLAWS OF THE ORGANIZATION ARE SUBJECT TO CERTAIN RESERVED POWERS, WHICH PROVIDE THAT THE SOLE MEMBER OF THE ORGANIZATION MUST APPROVE CERTAIN DECISIONS, INCLUDING BUT NOT LIMITED TO MATTERS CONCERNING THE SALE OR PURCHASE OF REAL OR PERSONAL PROPERTY, CAPITAL BUDGETS, STRATEGIC PLANNING, INVESTMENTS, AND CORPORATE GOVERNANCE. PROCESS FOR REVIEWING FORM 990 PART VI, LINE 11A 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 POLICY 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). DESCRIPTION OF EXECUTIVE COMPENSATION 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 EQUITY TRANSFERS ...................................$(20,651,248) UNREALIZED LOSS ON INVESTMENTS...................... (17,933) ============ TOTAL: $ (20,669,181) HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:KENNETH A SAMET TITLE:DIRECTOR HOURS:40 Medstar Health Anesthesia Services B LLC 9000 Franklin Square Drive Baltimore MD 21237 205909703 Health Svcs MD 8795282 1012968 NA CHURCH HOME CORPORATION 5565 STERRETT PLACE 5TH FLOOR COLUMBIA MD 21044 237374724 MEDICAL FUND MD 501(c)(3) PF NA true HARBOR HOSPITAL INC 3001 SOUTH HANOVER STREET BALTIMORE MD 21225 520491660 HOSPITAL MD 501(c)(3) 3 NA true MEDSTAR HEALTH INC 5565 STERRETT PLACE 5TH FLOOR COLUMBIA MD 21044 522087445 MEDICAL SVCS MD 501(c)(3) 11B II NA false 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 RESEARCH INSTITUTE 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