2012-08-15T10:14:32-05:00 2011-09-30 MCGLADREY LLP 7351 OFFICE PARK PL MELBOURNE FL 32940 990 2010-10-01 593336894 HEALTH FIRST INC HEAL 3214345150 3300 FISKE BLVD ROCKLEDGE FL 329554305 JOSEPH G FELKNER 3214345150 2012-08-09 THERESA A BURDINE 3217516200 2010 2016-02-24 21:20:13Z MICHAEL D MEANS 3300 FISKE BLVD ROCKLEDGE FL 329554305 184343370 0 X WWW.HEALTH-FIRST.ORG X 1995 FL OUR TEAM POSITIVELY CHANGING THE HEALTH AND WELL-BEING OF YOU AND YOUR FAMILY THROUGH EXCELLENT AND COMPASSIONATE HEALTH CARE. 18 16 7577 0 0 0 20902409 28667637 112635228 98409497 -4092931 2110403 -162003 176245 129282703 129363782 1774127 1460553 0 0 53340317 63211608 0 0 0 58013002 65049994 113127446 129722155 16155257 -358373 649695796 481586889 355896360 256457771 293799436 225129118 X OUR TEAM POSITIVELY CHANGING THE HEALTH AND WELL-BEING OF YOU ANDYOUR FAMILY THROUGH EXCELLENT AND COMPASSIONATE HEALTH CARE.WORKING TOGETHER IN A SEAMLESS SYSTEM, HEALTH FIRST IS DEVOTED TO INTEGRATING QUALITY HEALTHCARE SERVICES WITH STATE-OF-THE-ART TECHNOLOGY. FOUR NOT-FOR-PROFIT HOSPITALS-CAPE CANAVERAL HOSPITAL IN COCOA BEACH, HOLMES REGIONAL MEDICAL CENTER IN MELBOURNE, PALM BAY HOSPITAL IN PALM BAY, AND VIERA HOSPITAL IN VIERA - FORM THE CORE OF HEALTH FIRST'S FAMILY IN BREVARD COUNTY ON FLORIDA'S SPACE COAST. 0 0 119732995 1460553 98409497 THE PRIMARY EXEMPT PURPOSE OF HEALTH FIRST, INC. IS TO SUPPORT CAPE CANAVERAL HOSPITAL, INC. (CCH), HOSPICE OF HEALTH FIRST, INC. (HHF), HOLMES REGIONAL MEDICAL CENTER, INC. (HRMC), PALM BAY HOSPITAL (PBH), AND VIERA HOSPITAL (VH). HEALTH FIRST, INC. PROVIDES STRATEGIC PLANNING, MANAGEMENT AND ADMINISTRATIVE SUPPORT SERVICES TO CCH, HHF, HRMC AND VH. MORE SPECIFICALLY, HEALTH FIRST ASSISTS ITS AFFILIATED ORGANIZATIONS WITH:1. COORDINATION OF PATIENT CARE SERVICES ACROSS ALL ITS HOSPITAL PROVIDER LOCATIONS TO REDUCE DUPLICATION OF RESOURCES AND INCREASE THE COST-EFFICIENCY OF PATIENT CARE OFFERED AT ANY HEALTH FIRST ENTITY;2. PROVISION OF ENHANCED CLINICAL, MARKETING, PLANNING, FINANCIAL AND ORGANIZATIONAL SERVICES AND EXPERTISE, AND;3. SERVICE AREA COMMUNITY HEALTH PLANNING TO ENSURE THAT COLLECTIVELY ALL HEALTH FIRST ENTITIES PROVIDE THE HEALTHCARE SERVICES REQUIRED TO MEET THE NEEDS OF RESIDENTS WHO LIVE IN CENTRAL AND SOUTH BREVARD COUNTY. ONE EXAMPLE OF ENHANCED CLINICAL CARE IS A SERVICE KNOWN AS VITALWATCH, WHICH IS CENTRAL FLORIDA'S ONLY "EICU" - ELECTRONIC INTENSIVE CARE UNIT. COMBINING TELEMEDICINE, SOFTWARE, AND 24/7 ELECTRONIC MONITORING TECHNOLOGY, THIS SERVICE PROVIDES INPATIENTS CARED FOR IN ALL CRITICAL CARE BEDS AT CCH AND HRMC AN EXTRA LAYER OF EXPERTISE AND OVERSIGHT. CRITICAL CARE PHYSICIANS AND NURSES AT A CENTRALIZED LOCATION MONITOR REAL-TIME VITAL SIGNS, LABORATORY RESULTS, AND COMPLETE ELECTRONIC MEDICAL RECORDS OF PATIENTS IN ALL INTENSIVE CARE UNITS (ICU) AT NO EXTRA COST TO THE PATIENTS.IF NECESSARY, THE VITALWATCH STAFF CAN ALSO DIRECT A PATIENT'S CARE ON THE SPOT VIA LIVE AUDIO AND VIDEO CONNECTIONS TO THE PATIENT'S ROOM. ALL INFORMATION IS TRANSMITTED OVER PRIVATE DATA LINES TO ENSURE PRIVACY AND SECURITY. BEYOND THE WALLS OF ITS HOSPITALS, HEALTH FIRST, INC. SUPPORTS THE BREVARD HEALTH ALLIANCE, THE ONLY FEDERALLY QUALIFIED HEALTHCARE CLINIC IN BREVARD COUNTY, WITH AN ANNUAL DONATION OF $1.1 MILLION IN CASH AND OVER $300,000 IN IN-KIND DIAGNOSTIC SERVICES. THIS FUNDING ALLOWS AREA RESIDENTS WITHOUT HEALTH INSURANCE TO ESTABLISH A MEDICAL HOME FOR PREVENTIVE AND EMERGENY HEALTHCARE SERVICES. IN ADDITION, HEALTH FIRST, INC. IS IN THE MIDST OF FULFILLING A NINE-YEAR PLEDGE OF DONATING ALMOST $2 MILLION TO BREVARD COMMUNITY COLLEGE TO EXPAND THE NURSING PROGRAM OFFERED TO STUDENTS AT THEIR PALM BAY CAMPUS. THIS FUNDING HAS EXPANDED THE CAPACITY OF THE COLLEGE TO PROVIDE MORE STUDENTS THE OPPORTUNITY TO PURSUE A DEGREE IN NURSING AND FILL JOBS AT HEALTH FIRST, INC., HOSPITALS AS WELL AS AT OTHER AREA HOSPITALS, NURSING FACILITIES AND OTHER HEALTHCARE ORGANIZATIONS.HEALTH FIRST, INC. ALSO PARTNERS WITH OTHER COMMUNITY ORGANIZATIONS IN PROGRAMS PROVIDING HEALTH SERVICES AND PREVENTATIVE CARE TO PATIENTS THAT HAVE LIMITED ACCESS TO PREVENTIVE OR PRIMARY HEALTHCARE SERVICES. ANOTHER FORM OF COMMUNITY SUPPORT IS THE CLINICAL TRAINING AND EDUCATION THAT HEALTH FIRST OFFERS TO PHYSICIANS, NURSING STUDENTS, TECHNICIANS AND OTHER HEALTH PROFESSIONALS.ADDITIONAL ACTIVITIES PROVIDED CAPE CANAVERAL HOSPITAL, HOSPICE OF HEALTH FIRST AND HOLMES REGIONAL MEDICAL CENTER BY HEALTH FIRST, INC. INCLUDE ADOPTING OVERALL BUDGETS AND STRATEGIC PLANS, CONTROLLING THE INCURRENCE OF DEBT, DIRECTING CAPITAL ACQUISITION STRATEGIES, DIRECTING MANAGED CARE PURCHASING ARRANGEMENTS AND DIRECTING OR APPROVING MERGERS AND ACQUISITIONS OF ADDITIONAL AFFILIATIONS WITHIN THE GROUP. FOR A COPY OF OUR HEALTH FIRST COMMUNITY BENEFIT REPORT SEE: HTTP://HFWWW1.HEALTH-FIRST.ORG/CR/HEALTH-FIRST-COMMUNITY-REPORT-2012.PDF 119732995 1 1 0 0 0 0 0 0 0 1 0 1 1 1 1 0 1 0 0 1 0 0 0 0 0 0 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 444 0 1 7577 1 0 0 0 0 0 0 0 0 0 0 X 18 16 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 0 X DWAIN STILSON 3214345150 3300 FISKE BLVD ROCKLEDGE FL 32955 X RUSSELL E FISCHER 1.00 X X 8548 0 17400 JAMES C SHAW 1.00 X X 800 0 20400 CATHERINE A FORD 1.00 X X 9874 0 18300 KEVIN B STEELE 1.00 X X 0 0 19650 WILLIAM T BRENNAN 1.00 X 11107 0 24600 BRIAN J BUSSEN 1.00 X 8206 0 35725 JAMES E CARTER MD 1.00 X 8703 0 15250 EUGENE S CAVALLUCCI ESQ 1.00 X 0 0 15450 LARRY F GARRISON 40.00 X X 918285 0 45851 PAMELA A GATTO 1.00 X 4515 0 17850 JUDITH A GEORGE 1.00 X 9666 0 15850 TONY HERNANDEZ III ESQ 1.00 X 7506 0 0 A THOMAS HOLLINGSWORTH PHD 1.00 X 8972 0 15400 GEORGE W LEWIS 1.00 X 7307 0 14950 MICHAEL D MEANS 40.00 X X 1408089 0 57253 NICHOLAS E PELLEGRINO 1.00 X 1087 0 17800 WILLIAM C POTTER ESQ 1.00 X 400 0 16900 KEVIN S PRUETT 1.00 X 600 0 13750 ROBERT GALLOWAY 40.00 X 644191 0 44977 JUDITH A GIZINSKI 1.00 X 232223 0 99778 CHRISTOPHER S KENNEDY 1.00 X 359814 0 115180 DAVID MATHIAS 40.00 X 471302 0 49631 JAMES PALERMO 40.00 X 521844 0 83200 RICHARD ROGERS 40.00 X 326940 0 136851 JERRY SENNE 1.00 X 482525 0 204977 ROBERT SUTTLES 40.00 X 378686 0 32092 ROBERT R WRIGHT 1.00 X 326695 0 140894 JAMES SHAFFER 40.00 X 668525 0 34452 THOMAS MILLS 40.00 X 266992 0 26601 KEITH LUNDQUIST 40.00 X 251956 0 42960 DAVID P HURWITZ 40.00 X 244664 0 28923 VICTOR KOSTRO 40.00 X 212721 0 24908 7802743 0 1447803 174 0 1 0 HARRIS IT SERVICES PO BOX 7247 - LB 6768 PHILADELPHIA PA 191706768 INFORMATION TECHNOLOGY 5615835 ECLIPSYS SOLUTIONS CORPORATION PO BOX 8538-0133 PHILADELPHIA PA 191710133 INFORMATION TECHNOLOGY 3321699 HOLLAND & KNIGHT LLP 1499 S HARBOR CITY BLVD MELBOURNE FL 32901 LEGAL SERVICES 2796238 SPACE COAST HOSPITAL SERVICE INC 1895 MURRELL ROAD ROCKLEDGE FL 32955 LAUNDRY/LINEN SERVICES 2195994 PHILIPS MEDICAL SYSTEMS PO BOX 100355 ATLANTA GA 303840355 MEDICAL EQUIPMENT MAINTENANCE 1813260 82 28667637 28667637 SUPPORT SERVICES 561000 95151970 95151970 RELATED ORG RENTAL INC 532000 3257527 3257527 98409497 1156808 1156808 185658 9413 176245 176245 176245 55878866 44904 54862815 107360 1016051 -62456 953595 953595 129363782 98409497 0 2286648 1459816 1459816 737 737 6299259 6299259 36003426 35896222 107204 2537896 1234507 1303389 14922064 14525668 396396 3448963 3296476 152487 7685827 7685827 481092 481092 13050111 12595777 454334 1076759 1074130 2629 653005 633813 19192 1856379 1458378 398001 105633 104217 1416 2745485 2745485 13322281 13241944 80337 8485455 8485455 MAINTANENCE & REPAIR 12197972 12158537 39435 COLLECTIONS 1377536 1377536 LICENSES & TAXES 469228 352790 116438 1543231 924588 618643 129722155 119732995 9989160 0 131258618 103614358 103598595 465313 528945 6399149 5571602 255969799 163767469 207870577 92202330 57283955 206289520 1785097 563574 141018729 72832323 649695796 481586889 33084243 28308466 133370691 48395406 23368531 12125356 166072895 167628543 355896360 256457771 X 293799436 225129118 293799436 225129118 649695796 481586889 X -358373 -68311945 X X 0 1 1 X 0 X X X 0 0 0 HOLMES REGIONAL MEDICAL CENTER INC 590624371 C 1 1 1 83022181 CAPE CANAVERAL HOSPITAL INC 592477479 C 1 1 1 20755545 HOSPICE OF HEALTH FIRST INC 591911574 C 1 1 1 1297222 VIERA HOSPITAL INC 264019868 C 1 1 1 9080551 4 114155499 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 18855288 18855288 49641420 13581502 36059918 1285506 575311 710195 183386509 149610656 33775853 2801076 2801076 92202330 HEALTHCARE RELATED JOINT VENTURE 2771338 C INVESTMENT IN AFFILIATES 203518182 C 206289520 OTHER RECEIVABLES 1603048 DEPOSITS 2717670 INTER-COMPANY RECEIVABLE 32715271 ASSETS LIMITED AS TO USE 35796334 72832323 DEMAND NOTES PAY TO AFFILIATES 131693474 OTHER LIABILITIES 35935069 167628543 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: FIN 48 FOOTNOTE: THE COMPANY IS EXEMPT FROM FEDERAL AND STATE INCOME TAXES UNDER SECTION 501(A), AS AN ORGANIZATION DESCRIBED IN SECTION 501(C)(3), OF THE INTERNAL REVENUE CODE AND SECTION 220.13 OF THE FLORIDA STATUTES. ACCORDINGLY, NO PROVISION FOR INCOME TAXES IS MADE IN THE ACCOMPANYING FINANCIAL STATEMENTS. ASC TOPIC 740, INCOME TAXES, PRESCRIBES THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAX POSITIONS RECOGNIZED IN FINANCIAL STATEMENTS. ASC TOPIC 740 PROVIDES GUIDANCE FOR RECOGNITION THRESHOLD AND MEASUREMENT ATTRIBUTES FOR THE FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT OF A TAX POSITION TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. CENTRAL AMERICA AND THE CARIBBEAN 1 0 INSURANCE SERVICES INSURANCE FOR HEALTH SYSTEMS 1464537 1 0 0 0 1 0 1464537 0 1464537 0 0 1 0 0 0 1 HEALTH FIRST FOUNDATION INC 3300 FISKE BLVD ROCKLEDGE FL 32955 593528774 501(C)(3) 1154054 GENERAL SUPPORT BREVARD COMMUNITY COLLEGE NURSING PROGRAM 1519 CLEARLAKE ROAD COCOA FL 32922 590920675 115 305762 EXPAND ASSOCIATE NURSING PROGRAM 2 NURSING / EDUCATIONAL SCHOLARSHIP 1 737 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: THE HEALTH FIRST, INC. BOARD MONITORS USAGE BY EACH ENTITY TO ASSURE FUNDS RAISED ARE USED APPROPRIATELY. OTHER INFORMATION: PART IV: A POLICY GUIDES THE ABILITY OF HEALTH FIRST, INC. TO OFFER SCHOLARSHIPS TO POTENTIAL CANDIDATES. IF THE CANDIDATE MEETS THE DETAILED REQUIREMENTS THEY MUST COMPLETE AN APPLICATION. THEY MUST ALSO PROVIDE A LETTER OF ACCEPTANCE INTO A NURSING PROGRAM, THEIR MOST RECENT OFFICIAL TRANSCRIPT, TWO LETTERS OF RECOMMENDATION, COMPLETE AN ESSAY, AND PROVIDE AN UPDATED RESUME. IF THE SCHOLARSHIP IS AWARDED THE RECIPIENT MUST SIGN THE LETTER OF AGREEMENT WHICH COVERS THE PERIOD OF THE EDUCATION SCHOLARSHIP. X 1 1 X X X 0 1 0 0 0 0 0 0 0 LARRY F GARRISON 900791 0 0 0 17494 0 32556 0 13295 0 964136 0 6119 0 MICHAEL D MEANS 1389853 0 0 0 18236 0 36951 0 20302 0 1465342 0 7016 0 ROBERT GALLOWAY 628752 0 0 0 15439 0 28783 0 16194 0 689168 0 7582 0 JUDITH A GIZINSKI 227792 0 0 0 4431 0 83096 0 16682 0 332001 0 0 0 CHRISTOPHER S KENNEDY 355894 0 0 0 3920 0 101899 0 13281 0 474994 0 15088 0 DAVID MATHIAS 455679 0 0 0 15623 0 35526 0 14105 0 520933 0 6487 0 JAMES PALERMO 509611 0 0 0 12233 0 69919 0 13281 0 605044 0 56138 0 RICHARD ROGERS 321394 0 0 0 5546 0 119657 0 17194 0 463791 0 0 0 JERRY SENNE 469294 0 0 0 13231 0 182748 0 22229 0 687502 0 851 0 ROBERT SUTTLES 365610 0 0 0 13076 0 19554 0 12538 0 410778 0 1053 0 ROBERT R WRIGHT 313655 0 0 0 13040 0 121961 0 18933 0 467589 0 0 0 JAMES SHAFFER 664134 0 0 0 4391 0 13150 0 21302 0 702977 0 0 0 THOMAS MILLS 252919 0 0 0 14073 0 13141 0 13460 0 293593 0 0 0 KEITH LUNDQUIST 241299 0 0 0 10657 0 28444 0 14516 0 294916 0 12957 0 DAVID P HURWITZ 243156 0 0 0 1508 0 12234 0 16689 0 273587 0 0 0 VICTOR KOSTRO 210730 0 0 0 1991 0 9159 0 15749 0 237629 0 0 0 PART I, LINE 4B HEALTH FIRST, INC HAS A NON-QUALIFIED SERP FOR CERTAIN EXECUTIVES. BELOW ARE THE 2010 DEFERRED AMOUNTS: LARRY F. GARRISON $ 19,406 MICHAEL D. MEANS $ 23,801 ROBERT GALLOWAY $ 15,633 JUDITH A. GIZINSKI $ 71,863 CHRISTOPHER S. KENNEDY $ 88,749 DAVID MATHIAS $ 22,376 JAMES PALERMO $ 56,769 RICHARD ROGERS $ 106,507 JERRY SENNE $ 169,598 ROBERT SUTTLES $ 6,404 ROBERT R. WRIGHT $ 108,811 KEITH LUNDQUIST $ 15,544 SUPPLEMENTAL INFORMATION PART III COMPENSATION IS PAID BY HEALTH FIRST, INC. AND REIMBURSED BY SUBSIDIARY TAX-EXEMPT ENTITIES. AMOUNTS REPORTED IN COLUMN F REPRESENT DEFERRED COMPENSATION PREVIOUSLY REPORTED ON PRIOR YEARS' FORM 990. SEE CORE 990, PART VI, SECTION B, NUMBER 15 FOR FURTHER INFORMATION REGARDING THE PROCESS UTILIZED FOR ESTABLISHING THE TOP MANAGEMENT OFFICIAL'S COMPENSATION. BREVARD COUNTY HEALTH FACILITIES AUTHORITY 592444629 10741LBP0 2005-12-14 173754107 SEE SCHEDULE O 0 0 0 BREVARD COUNTY HEALTH FACILITIES AUTHORITY 592444629 2009-06-04 70000000 SEE SCHEDULE O 0 0 0 BREVARD COUNTY HEALTH FACILITIES AUTHORITY 592444629 10741LBX3 2009-07-01 84829591 SEE SCHEDULE O 0 0 0 BREVARD COUNTY HEALTH FACILITIES AUTHORITY 592444629 2010-07-16 21835000 SEE SCHEDULE O 0 0 0 173754107 1363425 172390682 2008 0 0 1 1 70000000 120000 69880000 2010 0 0 1 1 84829591 8585000 1224591 75000000 2011 0 0 1 1 21835000 139921 1 0 1 1 0 1 1 0 1 0.01520 0.00000 0.01520 1 0 1 1 0 1 0.00000 0.00000 0.00000 1 0 1 1 0 1 0.00000 0.00000 0.00000 1 0 0 0 0 1 0.00000 0.00000 0.00000 1 0 0 0 0 0 0 0 1 1 COMPASS BANK 7.000000000000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 FORM 990, SCHEDULE K, PART I, DESCRIPTION OF BOND ISSUE PURPOSE: NOVEMBER 2005 BOND: 1. FINANCE OR REFINANCE THE COST OF ACQUISITION, CONSTRUCTION AND EQUIPPING OF CERTAIN CAPITAL IMPROVEMENTS TO THE HEALTH FACILITIES OF THE OBLIGATED GROUP 2. PAY CERTAIN COSTS WITH RESPECT TO THE ISSUANCE OF THE BOND JUNE 2009 BOND: 1. FINANCE OR REFINANCE THE COST OF ACQUISITION, CONSTRUCTION AND EQUIPPING OF CERTAIN CAPITAL IMPROVEMENTS TO THE HEALTH FACILITIES OF THE OBLIGATED GROUP 2. PAY CERTAIN COSTS WITH RESPECT TO THE ISSUANCE OF THE BOND JULY 2009 BOND: 1. FINANCE OR REFINANCE THE COST OF ACQUISITION, CONSTRUCTION AND EQUIPPING OF CERTAIN CAPITAL IMPROVEMENTS TO THE HEALTH FACILITIES OF THE OBLIGATED GROUP 2. PAY CERTAIN COSTS WITH RESPECT TO THE ISSUANCE OF THE BOND 3. FUND DSR FUND JULY 2010 BOND - REFUNDING THE CAPE CANAVERAL HOSPITAL DISTRICT'S OUTSTANDING REVENUE REFUNDING CERTIFICATES, SERIES 1998 FORM 990, PART VI, SECTION B, LINE 11 AFTER REVIEW AND APPROVAL BY THE CHIEF FINANCIAL OFFICER THE FORM 990 IS SENT TO EACH MEMBER OF THE BOARD OF DIRECTORS ELECTRONICALLY FOR THEIR REVIEW AND APPROVAL. FORM 990, PART VI, SECTION B, LINE 12C A COPY OF THE CONFLICT OF INTEREST POLICY IS PROVIDED TO ALL BOD MEMBERS, OFFICERS, MANAGEMENT, AND ASSOCIATES IN WHICH THE CORPORATE COMPLIANCE EDUCATES ANNUALLY ON THE IMPORTANCE OF AND REQUIREMENT TO REPORT POTENTIAL CONFLICT OF INTEREST. IN ADDITION, ALL MANAGEMENT, OFFICERS, AND BOD MEMBERS ON AN ANNUAL BASIS ARE REQUIRED TO FILL OUT A CONFLICT OF INTEREST QUESTIONNAIRE PREPARED AND MONITORED BY THE CHIEF COMPLIANCE OFFICER. THE QUESTIONNAIRE REQUIRES AN ATTESTATION IN REGARDS TO STATING THE INDIVIDUAL IS FREE OF CONFLICTS SHOULD THEY NOT REPORT ANYTHING OF CONCERN. THESE FORMS ARE TRACKED AND KEPT ON FILE. SHOULD A CONFLICT ARISE, THE CHIEF COMPLIANCE OFFICER INVESTIGATES THE ISSUE AND DETERMINES A COURSE OF ACTION TO ENSURE ENFORCEMENT OF THE POLICY. FORM 990, PART VI, SECTION B, LINE 15 OUR CEO AND THE HEALTH FIRST EXECUTIVES' SALARIES ARE REVIEWED AND RECOMMENDED ANNUALLY BY THE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS AND APPROVED IN EXECUTIVE SESSION BY THE FULL BOARD OF HEALTH FIRST. THE COMPENSATION COMMITTEE CONTRACTS ANNUALLY WITH THE HAY GROUP, A HIGHLY RESPECTED NATIONAL CONSULTING FIRM, TO ENSURE THAT OUR EXECUTIVES ARE COMPENSATED FAIRLY AND COMPETITIVELY WHEN COMPARED TO SIMILAR ROLES IN OTHER HEALTHCARE ORGANIZATIONS NATIONALLY. THE COMPENSATION COMMITTEE IS INDEPENDENT FOR INTERNAL REVENUE CODE SECTION 4958 FOR THE INDIVIDUALS WHOSE SALARY IS REVIEWED. MINUTES ARE KEPT FOR ALL BOARD OF DIRECTORS AND COMPENSATION COMMITTEE MEETINGS. THE PROCESS IS DOCUMENTED CONTEMPORANEOUSLY IN THE BOARD AND COMMITTEE MEETINGS. FORM 990, PART VI, SECTION C, LINE 19 FORM 990, PART VI, SECTION C, LINE 19: QUARTERLY AND ANNUALLY CONSOLIDATED FINANCIALS AND CONSOLIDATED STATISTICAL INFORMATION IS FILED ELECTRONICALLY ON WWW.DACBOND.COM AND IS AVAILABLE TO THE PUBLIC. IN ADDITION, ANY REQUESTS MADE TO THE CHIEF FINANCIAL OFFICER FOR THE ABOVE REFERENCED ITEMS ARE PROVIDED UPON REQUEST IN A TIMELY MANNER. A COPY OF THE CONFLICTS OF INTEREST POLICY IS AVAILABLE UPON REQUEST TO THE COMPLIANCE OFFICER. PART VII, SECTION A, COLUMN B: AVERAGE HOURS PER WEEK DEVOTED TO POSITIONS WITH RELATED ORGANIZATIONS: KEVIN B. STEELE 1 HOUR CAPE CANAVERAL HOSPITAL, INC & THE HEALTH FIRST FOUNDATION, INC. JUDITH A. GEORGE 1 HOUR CAPE CANAVERAL HOSPITAL, INC & VIERA HOSPITAL, INC. A. THOMAS HOLLINGSWORTH, PHD 1 HOUR CAPE CANAVERAL HOSPITAL, INC & VIERA HOSPITAL, INC. MICHAEL D. MEANS 1 HOUR THE HEALTH FIRST FOUNDATION, INC & HOSPICE OF HEALTH FIRST, INC. JAMES E. CARTER, MD 1 HOUR CAPE CANAVERAL HOSPITAL, INC. TONY HERNANDEZ III, ESQ 1 HOUR CAPE CANAVERAL HOSPITAL, INC. GEORGE W. LEWIS 1 HOUR CAPE CANAVERAL HOSPITAL, INC. NICHOLAS E. PELLGRINO 1 HOUR CAPE CANAVERAL HOSPITAL, INC. JAMES C. SHAW 1 HOUR HOLMES REGIONAL MEDICAL CENTER, INC. CATHERINE A. FORD 1 HOUR HOLMES REGIONAL MEDICAL CENTER, INC. JUDITH GIZINSKI 40 HOURS HOLMES REGIONAL MEDICAL CENTER, INC. JERRY SENNE 40 HOURS HOLMES REGIONAL MEDICAL CENTER, INC. PAMELA A. GATTO 1 HOUR HOLMES REGIONAL MEDICAL CENTER, INC & VIERA HOSPITAL, INC. BRIAN J. BUSSEN 1 HOUR HOLMES REGIONAL MEDICAL CENTER, INC & VIERA HOSPITAL, INC. CHRISTOPHER KENNEDY 40 HOURS VIERA HOSPITAL, INC. ROBERT R. WRIGHT 40 HOURS CAPE CANAVERAL HOSPITAL, INC & HOSPICE OF HEALTH FIRST, INC. EUGENE S. CAVALLUCCI 1 HOUR HOLMES REGIONAL MEDICAL CENTER, INC LARRY F. GARRISON 1 HOUR HEALTH FIRST FOUNDATION, INC WILLIAM C. POTTER, ESQ 1 HOUR HOLMES REGIONAL MEDICAL CENTER, INC CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 5,755,865. OTHER CHANGES IN NET ASSETS -9,404,095. TRANSFER OF NET ASSETS TO A RELATED TAX-EXEMPT -64,663,715. TOTAL TO FORM 990, PART XI, LINE 5: -68,311,945. FORM 990, PART XII, QUESTION 2C, AUDITED FINANCIAL STATEMENTS: THE AUDIT COMMITTEE OF HEALTH FIRST REVIEWS AND APPROVES THE ANNUAL AUDIT AND COMPLIANCE AUDIT PLANS THEN MAKES ITS REPORT TO THE HEALTH FIRST BOARD OF DIRECTORS. THE AUDIT COMMITTEE IS RESPONSIBLE FOR THE SELECTION OF THE INDEPENDENT AUDITORS. THERE WAS NO CHANGE FROM PRIOR YEAR. FORM 990, PART IV, QUESTION 24A, BONDS ISSUED AFTER DECEMBER 31, 2002: THE FILING ORGANIZATION IS PART OF AN OBLIGATED GROUP THAT HAD MORE THAN $100,000 IN BONDS ISSUED AFTER DECEMBER 31, 2002 THAT WERE OUTSTANDING ON THE LAST DAY OF ITS TAX YEAR. THE FILING ORGANIZATION'S SHARE OF THESE OBLIGATIONS IS REPORTED ON PART X, LINE 20 OF HEALTH FIRST, INC. THE PARENT OF THE OBLIGATED GROUP, IS FILING SCHEDULE K ON BEHALF OF ITSELF AND ALL MEMBERS OF THE OBLIGATED GROUP. HOLMES REGIONAL MEDICAL CENTER INC 3300 FISKE BLVD ROCKLEDGE FL 32955 590624371 HOSPITAL FL 501(C)(3) LINE 3 N/A 1 HOSPICE OF HEALTH FIRST INC 3300 FISKE BLVD ROCKLEDGE FL 32955 591911574 HEALTHCARE FL 501(C)(3) LINE 9 N/A 1 HEALTH FIRST FOUNDATION INC 3300 FISKE BLVD ROCKLEDGE FL 32955 593528774 FUNDRAISING FL 501(C)(3) LINE 7 N/A 1 CAPE CANAVERAL HOSPITAL INC 3300 FISKE BLVD ROCKLEDGE FL 32955 592477479 HOSPITAL FL 501(C)(3) LINE 3 N/A 1 VIERA HOSPITAL INC 3300 FISKE BLVD ROCKLEDGE FL 32955 264019868 HOSPITAL FL 501(C)(3) LINE 3 N/A 1 CAPE HEALTH PROPERTIES INC 3300 FISKE BLVD ROCKLEDGE FL 32955 593086711 REAL ESTATE FL CAPE CANAVERAL HOSPITAL INC C HEALTH FIRST MEDICAL MANAGEMENT INC 3300 FISKE BLVD ROCKLEDGE FL 32955 593348252 HEALTH CARE FL HEALTH FIRST HOLDING CORP C HEALTH FIRST PHYSICIANS INC 3300 FISKE BLVD ROCKLEDGE FL 32955 593346397 HEALTH CARE FL HEALTH FIRST HOLDING CORP C HOLMES REGIONAL ENTERPRISES INC 3300 FISKE BLVD ROCKLEDGE FL 32955 592109953 REAL ESTATE FL HEALTH FIRST HOLDING CORP C HEALTH FIRST HEALTH PLANS INC 3300 FISKE BLVD ROCKLEDGE FL 32955 593315064 HEALTH CARE FL HEALTH FIRST HOLDING CORP C HEALTH FIRST INSURANCE INC 3300 FISKE BLVD ROCKLEDGE FL 32955 453131932 HEALTH CARE FL HEALTH FIRST HOLDING CORP C HEALTH FIRST HOLDING COMPANY & SUBS 3300 FISKE BLVD ROCKLEDGE FL 32955 593509709 HOLDING CORP. FL HEALTH FIRST INC C 1.00000 0 1 1 0 0 0 0 0 1 1 1 1 0 0 0 1 0 1 HEALTH FIRST FOUNDATION INC B 1154054 HEALTH FIRST FOUNDATION INC C 83768 HOSPICE OF HEALTH FIRST INC C 1713669 CAPE CANAVERAL HOSPITAL INC C 4566862 HOLMES REGIONAL MEDICAL CENTER INC C 22303319 HEALTH FIRST PHYSICIANS INC I 225326 CAPE CANAVERAL HOSPITAL INC I 259342 HOLMES REGIONAL MEDICAL CENTER INC I 2528369 HEALTH FIRST HEALTH PLANS INC J 343444 CAPE HEALTH PROPERTIES INC K 65844 HOLMES REGIONAL ENTERPRISES INC K 387492 HEALTH FIRST PHYSICIANS INC K 3020796 HEALTH FIRST FOUNDATION INC K 352500 HOSPICE OF HEALTH FIRST INC K 765876 HEALTH FIRST MEDICAL MANAGEMENT INC K 4138032 HEALTH FIRST HEALTH PLANS INC K 8202852 CAPE CANAVERAL HOSPITAL INC K 20782572 HOLMES REGIONAL MEDICAL CENTER INC K 81958728 HEALTH FIRST HEALTH PLANS INC L 222996 HEALTH FIRST FOUNDATION INC P 906511 HEALTH FIRST MEDICAL MANAGEMENT INC P 1379171 HOLMES REGIONAL ENTERPRISES INC P 2432940 HOSPICE OF HEALTH FIRST INC P 5406315 HEALTH FIRST HEALTH PLANS INC P 33457973 HEALTH FIRST PHYSICIANS INC P 63452267 CAPE CANAVERAL HOSPITAL INC P 74678895 HOLMES REGIONAL MEDICAL CENTER INC P 360550654 HEALTH FIRST HEALTH PLANS INC R 7906470 HEALTH FIRST HOLDING CORP I 64703 VIERA HOSPITAL INC I 179787 HEALTH FIRST HOLDING CORP K 60924 VIERA HOSPITAL INC K 4429296 HEALTH FIRST HOLDING CORP P 4761208 VIERA HOSPITAL INC P 17247663 FORM 990, SCHEDULE R, PART V, SCHEDULE R DISCLOSURES: ALL TRANSACTIONS REPORTED IN THIS SECTION ARE BASED UPON CORPORATE BOOKS AND RECORDS WHICH ARE KEPT ACCORDING TO GENERALLY ACCEPTED ACCOUNTING STANDARDS.