2012-05-15T17:54:53-05:00 2011-06-30 KPMG LLP 355 S Grand Ave Suite 2000 Los Angeles CA 90071 990 2010-07-01 951903935 Downey Community Hospital Foundation DOWN 5629045251 11500 Brookshire Avenue Downey CA 90241 KENNETH STROPLE 2012-05-15 2139724000 2010 2016-02-24 21:20:13Z DOWNEY REGIONAL MEDICAL CTR HOSPITAL KEN STROPLE 11500 BROOKSHIRE AVENUE DOWNEY CA 90241 157712518 false X WWW.DRMCI.ORG X 1956 CA DOWNEY REGIONAL MEDICAL CENTER-HOSPITAL PROVIDES THE SURROUNDING COMMUNITY WITH A COMPREHENSIVE RANGE OF INPATIENT ACUTE CARE SERVICES FOR MEDICAL, SURGICAL, PEDIATRIC, OBSTETRIC, & CRITICAL CARE PATIENTS. 17 16 1512 209 0 100000 0 155469406 157113965 -2689568 72649 635836 525904 153515674 157712518 0 0 0 0 85540032 76749152 0 0 0 83945612 92390544 169485644 169139696 -15969970 -11427178 80666136 76061622 94436339 100958149 -13770203 -24896527 X CONSISTENT WITH THE MISSION OF DOWNEY REGIONAL MEDICAL CENTER, INC., THE MISSION OF DOWNEY REGIONAL MEDICAL CENTER-HOSPITAL IS TO PROVIDE THE HIGHEST QUALITY HEALTH CARE TO OUR PATIENTS, TO ASSESS AND ADDRESS ALL HEALTH CARE NEEDS OF OUR SERVICE AREA, AND TO PROVIDE A SYNERGISTIC SUPPORTIVE WORKING ENVIRONMENT FOR OUR PATIENTS, EMPLOYEES, PHYSICIANS AND VOLUNTEERS. false false 145781717 0 157113965 DOWNEY REGIONAL MEDICAL CENTER (DRMC) HAS PROVIDED ADVANCED HEALTH AND HEALING FOR THE RESIDENTS OF DOWNEY AND THE SURROUNDING COMMUNITIES FOR MORE THAN 50 YEARS, DELIVERING EVER-IMPROVING VALUE AND QUALITY TO PATIENTS. THIS PRIVATE, NON-PROFIT HOSPITAL RAPIDLY RESPONDS TO EMERGING PATIENT DESIRES. DRMC HAS APPLIED THE LATEST TECHNOLOGY AND SKILLS TO BECOME RECOGNIZED AS A PREMIERE HEALTHCARE FACILITY IN SOUTHEAST LOS ANGELES COUNTY. IT IS RANKED AS ONE OF THE 10 BEST HOSPITALS IN LOS ANGELES COUNTY. THE JOINT COMMISSION ON ACCREDITATION OF HEALTHCARE ORGANIZATIONS, THE GOLD STANDARD FOR HEALTHCARE QUALITY AND SAFETY, AND THE MOST RESPECTED ACCREDITING BODY FOR HEALTHCARE PROVIDERS ALSO VALIDATE THIS REPUTATION WITH ABOVE AVERAGE SCORES. SPECIALIZED CARE IS PROVEDED BY DRMC THROUGH ITS EMERGENCY CARE CENTER, FAMILY BIRTH CENTER AND HEART CENTER, AS WELL AS HOME HEALTH, IMAGING, REHABILITATION AND SURGICAL SERVICES. IN ADDITION, DRMC HOSTS NUMEROUS SUPPORT GROUPS, COMMUNITY EDUCATION CLASSES AND OTHER OUTREACH EVENTS FOR PEOPLE OF ALL AGES. THE SENIOR CARE RESOURCES PROVIDE HEALTH FAIRS, LECTURES, HEALTH INFORMATION AND SCREENINGS SPECIFICALLY TARGETED FOR SENIORS. FOR MORE INFORMATION ON DOWNEY REGIONAL MEDICAL CENTER, VISIT THE WEBSITE AT WWW.DRMCI.ORG. 145781717 true false false false false false false false false true false false true true false false false false false false false false false false false true true false false true false false false false false false false false false false false false false true true false false false true 78 0 true 1512 true false false false false false false false false false false X 17 16 false false false false true true true true true false false true true true true true true true true false CA X CHARLES SHIELDS 5629045251 11500 BROOKSHIRE AVE DOWNEY CA 90241 JACK CAMPBELL 3.0 X 0 0 0 RICHARD GUESS MD 3.0 X 0 0 0 RAGAA ISKAROUS MD 3.0 X 0 0 0 RONALD KOLAR 3.0 X 0 0 0 J ARTHUR MORRIS 3.0 X 0 0 0 KAROL MORRISON 3.0 X 0 0 0 MD HOP MORRISON 3.0 X 0 0 0 MARY LOU SCHMIDT 3.0 X 0 0 0 MARK SCHNEIDER DO 3.0 X 0 0 0 SAMUEL SMOCK 3.0 X 0 0 0 KENNETH STROPLE 40.0 X X 414476 0 17700 SUSANNE SUNDBERG 3.0 X X 0 0 0 Jim BALL 3.0 X X 0 0 0 WILLIAM HARE 3.0 X X 0 0 0 BEVERLY MATHIS 3.0 X X 0 0 0 Lois Rossi 3.0 X 0 0 0 KAUSHAL TAMBOLI MD 3.0 X 0 0 0 ROBERT ELLIOT FULLER 40.0 X 332748 0 7900 GALEN GORMAN 40.0 X 312739 0 17700 JOSEFINA VELARDE 40.0 X 223305 0 15751 LELA LIBERTY ROSALES 40.0 X 192514 0 12897 NOEMI GUEVARRA 40.0 X 207918 0 15147 WILLIAM GENE STEIN 40.0 X 224745 0 13869 LINDA TAEK BUDDINE 40.0 X 189951 0 13671 2098396 0 114635 84 false true false CYMETRIX CORPORATION PO BOX 51302 LOS ANGELES CA 90051 COLLECTION SERVICES 3535130 ARNOLD PORTER LLP 777 south figueroa street 4th floo LOS ANGELES CA 900175844 LEGAL 952766 SOUTHLAND MGMT GROUP INC 3650 E SOUTH ST 301 LAKEWOOD CA 90712 HEMODIALYSIS 562925 DOWNEY ANESTHESIA MEDICAL 5951 VARIEL AVENUE WOODLAND HILLS CA 91367 ANESTHETIC SERVICES 335900 LEVENE NEALE BENDER YOO BRILL 10250 CONSTELLATION BLVD SUITE 17 LOS ANGELES CA 90067 LEGAL 248538 65 0 NET PATIENT SERVICES 621110 157025861 157025861 MEDICAL TRAINING PROGRAM REVENUE 624100 52700 52700 COMMUNITY EDUCATION REVENUE 624100 35404 35404 157113965 72649 72649 0 0 0 0 0 0 CAFETERIA 900099 308522 308522 VENDING MACHINE 900099 21673 21673 MEDICAL RECORD COPIES 900099 4725 4725 190984 190984 525904 157712518 157113965 0 598553 0 0 0 0 1033237 0 1033237 0 0 61164582 56883061 4281521 0 1284837 1194898 89939 0 8773086 8158970 614116 0 4493410 4178871 314539 0 0 3955541 0 3955541 0 380820 0 380820 0 0 0 0 39415803 36656697 2759106 0 3969 0 3969 0 2363025 2197613 165412 0 0 0 2037412 2037412 0 0 0 0 63592 63592 0 0 2595757 0 2595757 0 0 4204902 4204902 0 0 2349223 2349223 0 0 MEDICAL SUPPLIES 19757623 19757623 0 0 REORGANIZATION EXPENSE 7052264 0 7052264 0 BAD DEBT EXPENSE 6248303 6248303 0 0 CAFETERIA SUPPLIES 1020162 948751 71411 0 OTHER OPERATING EXPENSES 576383 536036 40347 0 365765 365765 0 169139696 145781717 23357979 0 6320 0 6316586 3351894 685252 26670467 24081514 1692544 1797587 2763060 8895243 133966102 108499926 28600267 25466176 6655915 5655461 -52608 0 8013585 6128495 80666136 76061622 23922705 72753289 20620016 12052241 5303796 0 425611 0 44164211 16152619 94436339 100958149 X -14072930 -25199254 302727 302727 -13770203 -24896527 80666136 76061622 X -11427178 300854 X false false false X 3239242 3239242 5220110 5220110 0 56803334 46990459 9812875 70230611 63962368 6268243 6145816 0 6145816 25466176 INTERCOMPANY-DRMCI 984428 INTERCOMPANY-DRMC PROPERTIES 5144067 6128495 0 ACCRUED SHARED RISK 1608299 UHC/PACIFICARE ADVANCE 2055889 MANAGED CARE IBNR 8517191 ACCRUED DEFERRED COMPENSATION 1656823 A/R CREDIT BALANCE 1305846 OTHER LIABILITIES 1008571 16152619 true true X true X 350. true X 406. true false true true 10188665 10188665 0.04030 53026269 50953269 2073000 0.00820 133662581 121262406 12400175 0.04900 196877515 172215675 24661840 0.09750 1188106 1188106 0.00470 189204 189204 0.00070 195473 195473 0.00080 1572783 1572783 0.00620 198450298 172215675 26234623 0.10370 true 6248303 0 41400049 37349749 4050300 X true true 1 1 Downey Regional Medical Center-Hospital

11500 Brookshire Avenue Downey CA 90241

X X X Downey Regional Medical Center-Hospital 1 SCHEDULE H, PART I, LINE 3C The organization uses the Federal Poverty Guidelines (FPG) to determine eligibility for providing free and discounted care to low income individuals. SCHEDULE H, PART I, LINE 6A The Hospital's Community Benefit report is filed on a separate basis and is not included in a report prepared by a related organization. SCHEDULE H, PART I, LINE 7G The Hospital did not include any costs attributable to a physician clinic in the amounts listed in the table at Part I line 7g, subsidized health services. SCHEDULE H, PART I, LINE 7, COLUMN F $6,248,303 in bad expenses included in Form 990, Part IX, line 25 was subtracted for purposes of calculating the percentages in this column. SCHEDULE H, PART I, LINE 7 TABLE The methodology for calculating unpaid costs in government programs, care for the uninsured, and charity care is based on Downey Regional Medical Center's payor-specific cost-to-charge ratios, offset by (any) actual payments received. Physician services include backup services in the emergency and surgical areas to cover the cost of physicians on call for uninsured patients. Psychiatric services include those provided to hospitalized patients. Unreimbursed costs may include an hourly rate for labor and actual costs for supplies, materials and other purchased services. Any offsetting revenue is deducted from the costs of providing services. Unreimbursed costs were estimated by each department responsible for providing the program/service. The payor-specific cost-to-charge system covers all patient segments, e.g. inpatient, outpatient, self-pay, uninsured, Medicare and Medicaid, etc. Schedule H, part II Community Building Activities: IN FISCAL YEAR ENDING 2011, SOME OF THE activities conducted by Downey Regional Medical Center in support of the above objectives included the following: charity care for patients without the ability to pay for necessary treatment, absorbing the unpaid costs of care for the uninsured and patients with Medi-Cal and Medicare, financial assistance programs for uninsured and underinsured patients, providing payment for physician services in the Medical Center's Emergency Care Center and Surgical Services, offering community health events and education, support and participation in community organizations and committees, and health education and training programs for students attending area nursing and allied health schools, colleges and universities, as well as ongoing professional training for hospital nursing and other staff. The economic value of community benefits provided by Downey Regional Medical Center in Fiscal Year Ending 2011 is estimated at $26,234,623. SCHEDULE H, PART III, LINE 4 The Hospital determines the amount reported in Part III lines 2 and 3 based on the cost-to-charge ratios discussed above. SCHEDULE H, PART III, LINE 8 The Hospital prepares Medicare cost reports in accordance with Provider Reimbursement Manual (PRM) 2150ff and PRM 15-2, 1000ff, as follows: Total allowable costs of a provider are apportioned between program beneficiaries and other patients so that the share borne by the program is based upon actual services received by program beneficiaries. The ratio of covered beneficiary charges to total patient charges for the services of each ancillary department is applied to the cost of the department. Added to this amount is the cost of routine services for program beneficiaries, determined on the basis of a separate average cost per diem for all patients for general routine patient care areas. In hospitals, another factor to be considered is a separate average cost per diem for each intensive care unit, coronary care unit, and other special care inpatient hospital units. SCHEDULE H, PART III, LINE 9B Downey Regional Medical Center as part of its mission provides charity care to patients who do not have adequate insurance coverage and/or financial resources to pay their Hospital bills. This policy ensures that DRMC is in compliance with the guidelines set forth in the Accounting and Reporting Manual of the California Hospitals published by the State of California, Office of the Statewide Health Planning Development. Downey Regional Medical Center pre-screens patients for possible charity eligibility at pre-registration, registration, discharge, and at any other time the facility staff encounters information detailing the patient's financial need. Charity is re-screened throughout the revenue cycle by Financial Counseling, Patient Financial Services, and any vendor we assign responsibility to, when events trigger review. If DRMC has initiated external collection activities and then discovers a request for charity review has been made, the collections process will continue until a financial assessment has been made. We will inform the collection agencies of our financial assessment review. Charity eligibility will be evaluated on the current financial status of the patient or guarantor, to allow for recent financial hardships that result in a newfound need for charity service. The guarantor of payment must make all attempts by either signing a Promissory Note for Installment Payments or a request for partial charity service. In the case of charity denial, the patient will have thirty (30) calendar days to appeal the decision, correct any deficiencies in documentation, or request a review of the denial. Within the first thirty (30) days following a charity denial, DRMC will not refer the patient account to any external collection agency. If no appeal or request for review is made during that thirty-day period, DRMC will initiate external collection activities at the appropriate account age. Accounts may be returned from bad debt status if financial circumstances warrant and charity may be applied. Patients who are approved for financial assistance and who have existing hospital accounts in bad debt status may have those past accounts reviewed on a case by case basis, to determine if they qualify for reclassifying the existing bad debt accounts to charity status. If patients do not provide the necessary documentation to be considered for financial assistance, or if a patient does not respond to offers of financial assistance, the Hospital's Patient Financial Services departement will utilize outside sources of information to determine eligibility. Debt collection agencies engaged in collecting self pay balances on behalf of the Hospital will provide written notices to patients regarding the availability of financial assistance for uninsured and/or underinsured patients during the collection process. Debt collection agencies are required to treat patients fairly, may only contact patients between 8am and 9pm; and generally may not give information about the patient's debt to another person. SCHEDULE H, PART V The hospital does not have other unlicensed facilities. SCHEDULE H, PART VI, LINE 2 NEEDS ASSESSMENT: IN 2010, DOWNEY REGIONAL MEDICAL CENTER COMPLETED A COMMUNITY NEEDS ASSESSMENT. FIRST, THE HOSPITAL VERIFIED ITS SERVICE AREA DEFINITION TO FOCUS ON THE COMMUNITIES SURROUNDING THE HOSPITAL. NEXT, A COMPREHENSIVE WORK PLAN - INCLUDING BOTH PRIMARY AND SECONDARY DATA - WAS ESTABLISHED. THE WORK PLAN FOCUSED ON A THOROUGH DESCRIPTION OF SERVICE AREA DEMOGRAPHICS, COMMUNITY HEALTH STATUS (REVIEWING INDICATORS RELATED TO AVAILABILITY OF HEALTH INSURANCE, LEADING CAUSES OF DEATH, PREVENTABLE HOSPITALIZATIONS, BIRTH-RELATED OUTCOMES, AND AGE-SPECIFIC HEALTH CONSIDERATIONS), AND CONSULTATION WITH THE COMMUNITY REGARDING IMPORTANT HEALTH ISSUES. AT THE CONCLUSION OF THE ASSESSMENT, THE REPORT WAS DISTRIBUTED AND REVIEWED BY ADMINISTRATION. the FINDINGS OF THE NEEDS ASSESSMENT ARE USED BY MEDICAL CENTER STAFF IN THEIR PLANNING OF HEALTH-RELATED PROGRAMS. SCHEDULE H, PART VI, LINE 3 PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE All patients are provided with a written notice that contains information about the availability of the Hospital's Financial Assistance policy, including information about eligibility, as well as contact information for a hospital employee or office from which the person may obtain further information about these policies. The notice shall be provided in English and in other languages. Notice of the Hospital's Financial Assistance policy is clearly and conspicuously posted in locations that are visible to the public, including, but not limited to, all of the following: o Emergency Department o Patient Financial Services o Patient Registration o Outpatient Surgical Center o Rehabilitation Department Determination of financial assistance is generally made at the time of admission, or shortly thereafter. However, events after discharge could change the ability of the patient to pay. All Hospital Financial Asistance requests are referred to either the Eligiblity Representatives or a Patient Financial Services representative. In the event an outsource agency discovers a patient that may qualify under the Hospital's guidelines, they will refer those patients to the appropriate Hospital personnel. SCHEDULE H, PART VI, LINE 4 COMMUNITY INFORMATION The needs assessment included a summary of population and household demographics, measures related to access to health care, mortality, maternal and infant health, child and adolescent health, adult health, and senior health; and findings from community consultations. The hospital uses the findings of the 2010 needs assessment in the preparation of community benefits plans for the next three fiscal years, in accordance with Senate Bill 697 (community benefits legislation for not-for-profit hospitals). Downey Regional Medical Center, located in Downey, defined its service area for purposes of the 2010 Community Needs Assessment to include the following communities: o Downey o Bell o Bellflower o Cerritos o Huntington Park o Lynwood o Maywood o Norwalk o Paramount o Pico Rivera o Santa Fe Springs o South Gate THE SERVICE AREA POPULATION (2010) IS ESTIMATED AT 873,937 PERSONS. THE POPULATION IN THE SERVICE AREA IS FORECAST TO INCREASE 2.7 PERCENT IN THE NEXT FIVE YEARS. GROWTH PROJECTIONS FOR HOUSEHOLDS AND FAMILIES ARE ESTIMATED TO INCREASE 1.8 PERCENT AND 1.8 PERCENT. TO ASSIST WITH PROVIDING CONTEXT TO THE SERVICE AREA DEMOGRAPHICS, KEY STATISTICS ARE COMPARED TO LOS ANGELES COUNTY FOR 2010. OF NOTE, IN COMPARISON TO LOS ANGELES COUNTY, THE SERVICE AREA HAS A HIGHER PROPORTION OF: HISPANIC RESIDENTS; PERSONS SPEAKING SPANISH AT HOME; ADULTS WITH LESS THAN A 9TH GRADE EDUCATION, SOME HIGH SCHOOL (NO DIPLOMA), AND HIGH SCHOOL GRADUATES; EMPLOYED PERSONS WITH BLUE COLLAR OCCUPATIONS; HOUSEHOLDS WITH 3 OR MORE PERSONS, HOUSEHOLDS WITH INCOMES FROM $15,000 TO $99,999; HOUSEHOLDS HEADED BY PERSONS 65 YEARS AND OLDER; OWNER OCCUPIED HOUSEHOLDS; HOUSEHOLDS WITH NO CHILDREN UNDER AGE 18 YEARS PRESENT; AND FAMILIES BELOW THE POVERTY LEVEL. Population characteristics correlated with health status include age 65 years and older, cultural diversity (persons of non-Hispanic White race/ethnicity), language spoken at home (persons five years and older speaking Spanish or Asian/Pacific Island languages), educational attainment (persons 25 years and older with less than a high school degree or GED), household income, and poverty level (families below the poverty level). The closure by Los Angeles County of Martin Luther King Harbor Hospital has continued to place pressures on Downey Regional Medical Center. The majority of the inpatients at the MLK Harbor Hospital were Medi-Cal beneficiaries. As these patients seek other hospitals to receive services, many will continue to be brought to or come to Downey Regional due to its proximity. SCHEDULE H, PART VI, LINE 5 PROMOTION OF COMMUNITY HEALTH DURING FISCAL YEAR ENDed 2011, DOWNEY REGIONAL MEDICAL CENTER CONTINUED TO PURSUE THE FOLLOWING OBJECTIVES: 1. To continue to provide affordable and accessible health care services. 2. To continue the development of health education, promotion and wellness services to improve the health status of the community. 3. To continue to coordinate efforts with education and training programs. Many of the Hospital's governing body is comprised of persons who reside in the Hospital's primary service area who are neither employees nor contractors of the Hospital nor family members thereof. The Hospital extends medical staff privileges to all qualified physicians in its community for some or all of its deparments. The Hospital applies surplus funds to continuing and improving healthcare operations in the community. SCHEDULE H, PART VI, LINE 7 STATE FILING OF COMMUNITY BENEFIT REPORT: A COMMUNITY BENEFIT REPORT IS FILED IN THE STATE OF CALIFORNIA. X true true X X X false false false false false false false false false KENNETH STROPLE 361957 0 47520 0 4999 0 0 0 17700 0 432176 0 0 0 ROBERT ELLIOT FULLER 275265 0 23925 0 33558 0 0 0 7900 0 340648 0 0 0 JOSEFINA VELARDE 213389 0 2091 0 7825 0 0 0 15751 0 239056 0 0 0 LELA LIBERTY ROSALES 187514 0 0 0 5000 0 0 0 12897 0 205411 0 0 0 NOEMI GUEVARRA 199325 0 3685 0 4908 0 0 0 15147 0 223065 0 0 0 GALEN GORMAN 312739 0 0 0 0 0 0 0 17700 0 330439 0 0 0 WILLIAM GENE STEIN 187293 0 0 0 37452 0 0 0 13869 0 238614 0 0 0 LINDA TAEK BUDDINE 184951 0 0 0 5000 0 0 0 13671 0 203622 0 0 0 Tax indemnification and gross-up payments SCHEDULE J, PART I, LINE 1A The Organization provided gross-up payments for the employee's share of their HMO coverage for the executives, including the CEO, COO and CFO. These amounts were included in taxable compensation for each person who received this benefit. AUDITED FINANCIAL STATEMENTS PART IV, LINE 20B THE ORGANIZATION'S AUDITED FINANCIAL STATEMENTS for the year ended June 30, 2011, are in process and HAVE NOT yet BEEN ISSUED. ELECTION OF MEMBERS TO THE GOVERNING BODY Part VI, Line 7A THE ORGANIZATION HAS ONE MEMBER, DOWNEY REGIONAL MEDICAL CENTER, INC., A 501(C)(3) ORGANIZATION. THE MEMBER MAY APPOINT OR REMOVE HOSPITAL DIRECTORS. APPROVAL OF DECISIONS PART VI, LINE 7B The powers and authority of the member includes the following: to establish the mission, long-range goals, strategies, corporate policies and performance criteria for the Hospital; to direct funds not required for day-to-day operations of the hospital to be transferred to the corporate account; to approve dissolution, merger or consolidation of the hospital; to amend or restate the articles of incorporation or the bylaws; to change or approve the change of the purposes of the hospital; to approve the annual budget and long-term capital and operational budgets; to approve independent auditors; to enter into any agreement for the sale, lease, exchange, mortgage, pledge, or other disposition or gift of all, or substantially all of the property and assets of the hospital; and to enter into agreements or incur debts. The actions of the hospital's board of directors are subject to the ultimate authority of the member. PROCESS TO REVIEW FORM 990 PART VI, LINE 10 The Board of Directors has delegated the review of the Form 990 to the CEO. The organization's Director of Accounting works closely with the outside accounting firm it engages to review the return; and the final draft of Form 990 is also reviewed by the CFO prior to providing the final draft to the Board of Directors. In addition to consulting with the CFO, the Director of Accounting also met with various personnel involved in the preparation process of the return. Also, the CFO worked closely with the accounting firm hired to prepare and review the Form 990. Subsequent to the review, the CEO reports back to the Board regarding the oversight of the Form 990 and the final draft is provided to the entire voting Board before the return is filed. MONITORING AND ENFORCEMENT OF CONFLICT OF INTEREST POLICY PART VI, LINE 12C An annual conflict of interest disclosure, aimed at determining any family and business relationships and transactions or other transactions that may pose a potential conflict, is distributed to all covered persons (i.e., board members, officers, key employees, and executive leadership). Covered persons are required to disclose real or potential conflicts at the time when such conflicts arise. The completed questionnaires are reviewed by the Board of Directors. The procedures for addressing any conflict of interest includes, but is not limited to, the following: (1) the conflicting interst is fully disclosed to the Board; (2) the interested person responds to factual questions related to the substance of the transaction or arrangement being considered, after which he/she shall leave the meeting; (3) the person with the conflict of interest is excluded from the discussion and approval of such transaction; (4) alternatives to the proposed transaction are investigated, and competitive bids or comparable valuations are obtained; (5) any conflicting issues during the course of a Board meeting which cannot be resolved is referred to the Governance Committee; and (6) the transaction or action must be approved by a majority of disinterested persons. PROCESS FOR DETERMINING COMPENSATION PART VI, LINE 15 A and B The Board appoints a Compensation Committee, comprised solely of independent directors, none of which have a conflict of interest with respect to the compensation arrangement, to be accountable for setting reasonable compensation packages for the Chief Executive Officer, the Chief Financial Officer, and the Chief Operating Officer. The Compensation Committee develops, consistent with the organization's philosophy and principles, the annual performance goals and criteria to be used in determining merit increases and variable compensation criteria for officers and key employees. The Compensation Committee also may hire a qualified independent compensation and benefits specialist (independent expert) to review, analyze and provide benchmarking data for the total compensation and benefits packages of officers and key employees. Appropriate comparability data is obtained from the independent sources (last obtained in 2007 and NO RAISES FOR COVERED PERSONS HAVE BEEN GIVEN POST-2007), i.e., total economic benefits paid by similarly situated organizations (both taxable and tax-exempt) for similar job responsibilities. The Committee's written records include the Key deliberations of the Committee, including: (A) The terms of the transaction that was approved and the date it was approved; (B) The members of the authorized body who were present during debate on the transaction that was approved and those who voted on it; (C) The comparability data obtained and relied upon by the authorized body and how the data was obtained; and (D) Any actions taken with respect to consideration of the transaction by anyone who is otherwise a member of the authorized body but who had a conflict of interest with respect to the transaction are also documented in minutes which are approved at the next Committee meeting. The review of other officer and key employee compensation packages are delegated to the CEO and the recommendations are reviewed, approved and documented by the Board (as described above). Benchmarking data is obtained from multiple sources in determining appropriate total economic benefits. DOCUMENTS AVAILABLE TO THE PUBLIC PART VI, LINE 19 While federal tax laws do not mandate that the organization's governing documents, conflict of interest policy and financial statements be made available for public inspection, the organization makes these documents available upon request. OTHER CHANGES IN NET ASSETS PART XI, LINE 5 PRIOR YEAR ADJUSTMENT $300,854 DOWNEY REGIONAL MEDICAL CENTER INC 11500 BROOKSHIRE AVENUE DOWNEY CA 90241 954504845 SUPPO. 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