2011-02-25T14:40:06-06:00 2010-06-30 PARENTEBEARD LLC Suite 200 221 W PHILADELPHIA ST YORK PA 174012993 990 2009-07-01 231265004 MEMORIAL HOSPITAL MEMO 7178438623 325 SOUTH BELMONT STREET YORK PA 17403 Richard Imbimbo 7178438623 2011-02-17 1 Robert M Gratalo 7178467000 2011-02-17 2009 2016-02-24 21:20:13Z SALLY J DIXON 325 SOUTH BELMONT STREET YORK PA 17403 101965879 0 X www.mhyork.org X 1945 PA Medical Services: INPATIENT, OUTPATIENT, (EMERGENCY, CLINIC, AND OCCUPATIONAL MED.), HOME HEALTH. 14 9 1158 200 1673954 30792 1006311 619692 96503822 98614118 96232 47423 3064519 1559951 100670884 100841184 0 0 52380864 51692573 0 0 45908027 47022430 98288891 98715003 2381993 2126181 45305068 46785274 18631218 20356554 26673850 26428720 Memorial Hospital is committed to promoting, improving, and enhancing the health and well-being of the community we serve. 0 0 63469901 0 40389395 GENERAL ACUTE CARE INPATIENT HOSPITAL SERVICES, 5,669 DISCHARGES 10456868 0 53511214 GENERAL ACUTE CARE OUTPATIENT HOSPITAL SERVICES, 160,800 VISITS 2264783 0 912911 MEDICARE CERTIFIED HOME HEALTH CARE SERVICES 16,825 visits 1849233 377298 ADVANCED LIFE SUPPORT SERVICES 6,029 calls 931218 922684 Hospice Services Non-medicare certified home health serivces 0 0 1608127 2780451 2908109 78972003 1 1 0 1 0 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 1 0 0 1 0 0 0 1 0 0 1 1 0 0 0 0 0 1 0 0 0 1 31 0 0 1158 1 1 1 0 0 0 0 0 0 0 0 14 9 0 0 0 0 0 0 0 1 1 1 0 1 1 1 1 1 1 1 1 0 PA X SALLY J DIXON 7178438623 325 SOUTH BELMONT STREET York PA 17403 CHLOE R EICHELBERGER 3.00 X X 0 0 0 JACK KAY 3.00 X X 0 0 0 RANDALL A GROSS 3.00 X X 0 0 0 JODY KELLER Thru 709 3.00 X X 0 0 0 RICHARD D POOLE 1.00 X 0 0 0 Terry N York DO 1.00 X 0 0 0 LUTHER B SOWERS PhD 1.00 X 0 0 0 DELAINE TOERPER 1.00 X 0 0 0 JAMES R ZARFOSS JR 1.00 X 0 0 0 DAVID FREEMAN 1.00 X 0 0 0 MICHAEL NEWSOME 1.00 X 0 0 0 MICHAEL W KING 1.00 X 0 0 0 Carol St George DO 1.00 X 4320 0 0 James A Lease DO 40.00 X 309731 0 17407 SALLY J DIXON 40.00 X X 410008 0 76297 RICHARD IMBIMBO 40.00 X 259666 0 17407 SUSAN M GORDON 40.00 X 159895 0 2976 Raymond S Cuzzaniti 40.00 X 431564 0 17272 JAMES M SMOLKO 40.00 X 396999 0 16483 VAN D ADAMS 40.00 X 437870 0 16764 JOSEPH E ROBINSON 40.00 X 402999 0 7008 HAOEH M JUNG 40.00 X 426519 0 12796 HUGH PALMER 40.00 X 4550 126160 13960 RICHARD J LILLO 40.00 X 146154 0 10912 3390275 126160 209282 26 1 1 0 Medquist PO Box 10832 Newark NJ 071930832 transcription services 967707 Medical Imaging Systems of York 2600 Eastern Blvd Suite 101 York PA 17402 Medical & Health care services 578020 Miller Dipietro Partnership 2600 Eastern Blvd Suite 204 York PA 17402 Medical & Health care services 532137 QUEST DIAGNOSTICS PO BOX 828669 PHILADELPHIA PA 19182 LAB SERVICES 346767 WELLSPAN MEDICAL GROUP 1600 SIXTH AVENUE SUITE 105 YORK PA 17403 PHYSICIAN SERVICES 318928 12 260689 359003 619692 Medical services 623000 97005991 96113502 892489 education reimbursemen 611710 1531593 1531593 medical records 623000 61451 61451 appointment fees 623000 11601 11601 Xray income 623000 3482 3482 98614118 67418 67418 25600 25600 25600 25600 1104400 300 1124695 -20295 300 -19995 -19995 LEASED EMTS 621990 771865 771865 CAFETERIA REVENUE 722210 344805 344805 MANAGEMENT FEES 541610 180000 180000 237681 9600 228081 1534351 100841184 97721629 1673954 825909 1211167 969576 241591 41119534 32917450 8202084 432448 346188 86260 5775666 4623598 1152068 3153758 2524680 629078 207782 166336 41446 81000 64843 16157 55583 44496 11087 13347 10685 2662 7924661 6343935 1580726 909603 728165 181438 16621021 13305638 3315383 435486 348620 86866 4018123 3216631 801492 142614 114167 28447 306634 245470 61164 4744825 3798378 946447 1783146 1427463 355683 UNRELATED BUSINESS INCO 65444 65444 BAD DEBTS EXPENSE 7635162 6112182 1522980 MISCELLANEOUS EXPENSE 941674 753839 187835 FOOD EXPENSE 578129 462810 115319 EDUCATION AND TRAINING 286564 229403 57161 271632 217450 54182 98715003 78972003 19743000 0 -48324 -31244 1408809 1419566 12458896 12359205 17248 1783116 1996398 952905 1067528 86237082 62613334 23278504 23623748 4081660 4220951 31000 31000 1358502 2080874 45305068 46785274 8026535 7547622 8843079 11034747 1761604 1774185 18631218 20356554 X 25983954 25805299 263506 196531 426390 426890 26673850 26428720 45305068 46785274 X 0 1 1 X 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 1 55583 0 1 15358 0 70941 0 Part II-B, Line 1i: Explanation of Other Lobbying Activities: The Hospital paid Stevens and Lee, a legal and consulting firm to work with senators and congressmen in order to facilitate an increase in the Medicare wage index. The amount paid to them for the year ended 6/30/10 was $55,583. The remaining $15,358 represents a percentage of membership dues paid to health care associations such as American Hospital Association and The Hospital Association of Pennsylvania that is attributable to lobbying. 426127 500 -263 426890 351269 75000 2 144 426127 0.00000 1.00000 0.00000 1 0 207335 207335 23439988 12359843 11080145 11600939 8703884 2897055 48858319 40488207 8370112 2130501 1061400 1069101 23623748 BLUE CROSS WORKING CAPITAL ADVANCE 321800 Medical Malpractice claims liability 1153909 DEFERRED COMPENSATION 298476 1774185 100841184 98715003 2126181 119727 -2491038 -2371311 -245130 100766127 119727 164253 283980 100482147 359037 359037 100841184 98715003 0 98715003 0 98715003 Part V, Line 4: Description of Intended Use of Endowment Funds: Income earned from endowments is available for the general operations of the hospital. Part X: Description of Uncertain Tax Positions Under FIN 48: The Corporation adopted FASB's guidance on accounting for uncertainty in income taxes effective July 1, 2009 and evaluated its tax positions. The adoption had no effect on the Corporation's consolidated financial statements. The Corporation's federal Exempt Organization Business Income Tax Returns for the years ended June 30, 2010, 2009, and 2008 remain subject to examination by the IRS. Part XI, Line 8 - Other Adjustments: TRANSFER TO MEI, INC. A RELATED COMPANY: -9939. TRANSFER TO MEMORIAL HEALTH SYSTEMS CORPORATION, A RELATED EXEMPT ORG.: -2481099. Part XII, Line 2d - Other Adjustments: net assets released from restrictions used in operations: 164253. Part XII, Line 4b - Other Adjustments: RESTRICTED CONTRIBUTIONS: 359037. 1 1 1 X 1 X 0 1 1 0 1 1 1835626 1835626 0.02020 11286517 6408206 4878311 0.05360 0 13122143 6408206 6713937 0.07380 3507776 1380759 2127017 0.02340 5953527 2903358 3050169 0.03350 658892 306932 351960 0.00390 19975 19975 0.00020 10140170 4591049 5549121 0.06100 23262313 10999255 12263058 0.13480 780 780 0.00000 308085 308085 0.00340 42234 42234 0.00050 35485 35485 0.00040 386584 386584 0.00430 1 3084605 925382 27845181 28841245 -996064 X 1 1 MEMORIAL HOSPITAL

325 SOUTH BELMONT STREET YORK PA 17403

X X X X Part I, Line 7: The expenses reported for the Charity Care and Means-Tested Government programs were determined by using the cost to charge ratio developed through the IRS provided worksheet 2. This methodology mimics the cost as reported on FY 2010 Medicare Cost report (Worksheet C, Col 5, line 101), in that the following are excluded from the cost factor: non-patient care expenses, bad debt, medical education, advanced life support, and other significant community benefit expenses. Overhead (indirect cost) costs applied to selected Community health improvement services/benefit operations reported on line 7(e) and Community Building Activities reported in Part II also utilized a similar Medicare-based methodology. Part I, Line 7g: Memorial included $658,892 of expenses and $306,932 of direct offsetting revenue attributable to a physician clinic in subsidized health services Part I, Line 7f: The amount of Bad debt expense from Form 990, Part IX, Line 25, column A that was removed for purposes of calculating the percentage in Schedule H, Part I, Line 7, column (f) was $7,635,162. Part III, Line 4: Footnote to the Hospital's statement regarding bad debt expense: Accounts receivable, patients are reported at net realizable value. Accounts are written off when they are determined to be uncollectible based upon management's assessment of individual accounts. The allowance for doubtful collections is estimated based upon a monthly review of the accounts receivable aging, payor classifications, and application of historical write-off percentages.The costing methodology used in determining bad debt and charity reported as bad debt expense was determined by using the cost to charge ratio developed through the IRS provided worksheet 2. This methodology mimics the cost as reported on FY 2010 Medicare Cost report (Worksheet C, Col 5, line 101), in that the following are excluded from the cost factor: non-patient care expenses, bad debt, medical education, advanced life support, and other significant community benefit expenses. Overhead (indirect cost) costs applied to selected Community health improvement services/benefit operations reported on line 7(e) and Community Building Activities reported in Part II also utilized a similar Medicare-based methodology.The method Memorial used to determine the amount that reasonably could be attributable to patients who likely would qualify for charity care under the hospital's charity care policy utilizes the percentage (9.5%) of York County families who fall below the poverty level. This 9.5% is applied to Memorial's gross patient charges, and then the ratio of cost to charges described above is applied. The cost of charity care reported on Part I, Line 7a is deducted. The balance ($5,466,098) that remains is greater than the bad debt expense reported on line 3. Memorial's charity care eligibility begins at 200% of the Federal Poverty Guidelines, thus using 30% of the bad debt expense conservatively states the amount that reasonably could be attributed to patients who would likely qualify for charity care.Memorial Hospital provides care to all patients who need it, regardless of their ability to pay. Good business practices for the collection of bad debts are applied, and there still remains a large balance of accounts for patients who are unable to pay or are unwilling to pay. Care is routinely rendered prior to any realization of non-payment. Part III, Line 8: The costing methodology used in determining the Medicare shortfall was the cost to charge ratio developed through the IRS provided worksheet 2. This methodology mimics the cost as reported on FY 2010 Medicare Cost report (Worksheet C, Col 5, line 101), in that the following are excluded from the cost factor: non-patient care expenses, bad debt, medical education, advanced life support, and other significant community benefit expenses. Overhead (indirect cost) costs applied to selected Community health improvement services/benefit operations reported on line 7(e) and Community Building Activities reported in Part II also utilized a similar Medicare-based methodology.Memorial Hospital provides care to all patients who need it, regardless of their ability to pay. Medicare patients comprise approximately 35% of our patient care volume. Due to this large percentage of our patient population, Memorial, like most all other hospitals, is dependent on the Medicare volume. Medicare, a Federally-sponsored payer, has historically reimbursed hospitals less than their actual cost to render care, and the reimbursement rates are regulated and non-negotiable. For Community Benefit purposes, the Medicare program should be treated like the Medicaid program. Part III, Line 9b: All collection and outsourced billing agencies are well versed in Memorial's Charity Care policy, and when a potential charity care patient is identified by these agencies, the charity care application process is implemented by the agency and completed by hospital staff. At any time during this process, the patient may contact the Hospital financial counseling staff to discuss Charity Care and other financial assistance options, including establishing payment arrangements over a period of months/years. the organization is not required to file a community benefit report with any state. Part VI, Line 2: In 1994, Memorial Hospital became a partner in a community-wide collaborative effort to conduct the first Community Needs Assessment. Other partners were York Hospital, Hanover Hospital, United Way of York County, York County Chamber of Commerce, York Health Corporation (Federally Qualified Health Center) and York City Health Bureau. That assessment led to the creation of the Healthy York County Coalition which has used the assessment to identify and prioritize community needs and then serve as a convener of broad based community collaborations to address those needs. It has served as a convener, educator and advocate on issues addressing broad-based community health issues. Memorial Hospital has been an active partner in the Healthy York County Coalition since its inception in 1985 as well as the subsequent Community Needs Assessments that have been performed every three years since then. We are currently engaged in the planning of the 2011 assessment which will be conducted this summer with the results and outcomes to be shared with the community this fall. The dissemination of information obtained in the assessments has historically been done through community forums, presentation to key stakeholder groups, newspaper articles and inserts and various other media and forums. That plan will continue for the coming assessment later this year. The assessments have surveyed the geographic boundaries of York County. However, using the BRFS tool, we have oversampled the City of York to identify unique needs of low-income citizens as well as diverse racial and ethnic populations.Memorial Hospital has been involved and continues to be a key partner in many initiatives that have grown out of issues identified in past assessments. The Healthy York Network was created to identify uninsured and underinsured citizens in our community and link them to providers. Currently there are 7500 enrollees in the program and 67% of the providers on the Memorial Hospital Medical Staff agree to see these patients at no charge. The Healthy York Network has recruited 903 providers in the community to participate. The Healthy York Network has proven to be a true safety net for those in our community with healthcare needs but not the means to acquire them. $665,644 of the amount reported as Charity Care on Schedule H, Part I, line 7(a) is attributed to enrollees of the Healthy York Network. The Healthy Community Pharmacy was an outgrowth of the Healthy York Network. As we began to identify and link patients to healthcare providers, we needed to address another issue that was identified in the Community Needs Assessment...access to pharmaceuticals. The partners who had gathered to create the Healthy York Network agreed that this was a logical next step for the group. A Pharmacy was created where those in need financially could have their prescriptions filled at low or no cost. Patients would be identified by primary care and specialty practices as well as community non-profits and referred to the pharmacy for enrollment. Part VI, Line 3: Memorial provides extensive communication to its patient community regarding the Charity Care program, which provides free or discounted care. The following methods of communication are employed: (1) signage and/or provision of information in all areas with pre-registration/registration/admitting responsibilities, (2) brochures are made available to all inpatients and displayed/provided in outpatient areas, (3) all staff are trained in identifying potential charity program applicants and providing them with the proper direction to staff devoted to the charity program, (4) all self pay inpatients, all self pay ambulatory surgery patients, and a great many emergency room patients meet with a financial counselor and an outside firm is employed by the hospital to assist these patients on obtaining Medicaid eligibility, (5) all patient bills have contact information regarding financial assistance and (6) all collection and outsourced billing agencies are well versed in Memorial's Charity Care policy, and when a potential charity care patient is identified by these agencies, the charity care application process is implemented by the agency and completed by hospital staff. Part VI, Line 4: Memorial Hospital serves a community of more than 420,000 residents in York County. There are two other nonprofit hospitals serving the York community - WellSpan Health and Hanover Hospital. According to the most recent community health assessment, which was completed in 2008, the population in York County continues to grow. Between 2000 and 2006, the population grew 9%. The median household income is $52,248. 9.5% of families in York County are below poverty. More than 13% of people during the last health assessment stated they did not have health insurance. Ethnic groups and cultural groups in York County include 4.7% of African American, 3.9% Hispanic, 1.2% Asian. Memorial Hospital provides health care to all individuals regardless of their ability to pay. The top 5 causes of death in York County are (in order of prevalence) heart disease, cancer, stroke, respiratory disease and accidents. York County's heart disease death rates are well above the national average: York County-281 per 100,000 residents; National Average-217 per 100,000 residents. Nine percent of York County residents have diabetes, up from 6.9 percent. Tobacco use is increasing with nearly 26 percent of adults in York County using tobacco; this is up from 22% in 2003. More than 67 percent of York County adults are overweight or obese. Part VI, Line 5: Memorial Hospital provided Community Building Activities in the areas of Community Support, Community Health Improvement Advocacy, and Workforce Development. These activities go beyond our traditional acute care hospital services, and really do serve Memorial's core mission --- the health of the community. For the vast majority of these activities, Memorial's objective for participation is to meet the needs of the underserved. A great many of these needs, whether they be food, shelter, and companionship all impact the health, both physical and mental, of those served and, in turn, the health of the entire York community . Without the involvement of private organizations like Memorial Hospital, a greater burden would fall on public (governmental) agencies.These activities, programs and funding provided by Memorial benefited the general community and did not specifically benefit Memorial. Memorial takes a great deal of pride in being active in the general community and not just in health care programs that have a direct benefit to Memorial. Some examples are as follows:1.) Community Support - Memorial spent $105,300 to operate the "Strengthening Families Program", which provided extensive family skills training to approximately 50 families in sessions running 18 hours over a seven week period. No fees are charged to the families, many of who are of low income and underserved by the various community agencies. Such programs are proven to reduce risky behaviors such as violence, delinquency, truancy and other conduct problems.Memorial made a $11,500 donation to United Way of York County (which was in addition to the approximately $50,000 donated by Memorial employees), an agency that provides funding for numerous non-healthcare related agencies that are essential to the community and, especially to those with special needs and /or who are underserved. A $3,000 donation was made to the local Boy Scouts chapter, and organization that provides leadership and volunteer training to boys and young men, many of whom would be potential victims of delinquency and other social problems. Also reported in this category is $153,300 of expense related to Memorial contributing employee time (Community Activism Hours) to health care related organizations such as American Cancer, American Heart Association, and other various agencies/organizations. Overall, Memorial's expenses for Community Support were $308,085.2.) Community Health Improvement Advocacy - Memorial provided $42,200 of employee time to assist various community agencies. Unlike the Community Activism Hours reported above, the organizations are more engaged in the overall health of the community, than in traditional health care services. For example, Memorial contributed over 75 hours ($5,000 in cost) of staff time to the Salvation Army, an agency that provides low income residents with food, shelter, clothing and other basic needs that have a significant impact on the health of the individual and the community. In another example, Memorial contributed over 70 hours ($10,500 in cost) to the Boy Scouts, an organization that develops future leaders and volunteers to the community and stresses healthy lifestyle values. Total expenses for Community Activism Hours were $42,234.3.) Workforce Development - in addition to a large commitment to Health Professions Education (see Part I, Line 7f), Memorial also participates in a robust shadowing program for high school and college students who are considering a career in healthcare. The objective of this program is to capture the students' interest in a health care profession before another professional path is chosen. There are still many health related professions that are in need of more individuals now and in the future. Memorial's Shadowing program was developed to meet the personnel needs of the health care industry, while trying to maintain the future resource in the York community. Close to 1,000 hours of staff time (at a cost of $35,485) is devoted to mentoring these students. Part VI, Line 6: The majority of Memorial Hospital's Board of Directors reside in the primary service area. Of the 14 voting board members, 9 board members are neither employees, contractors of the organization, nor family members thereof. The majority of Memorial's clinical departments are open to all qualified physicians. As is the case in most hospitals, the traditional hospital based departments (anesthesia, radiology, pathology, and emergency medicine) are not open departments, and those physicians are either employed by Memorial or provided through an exclusive contract through an outside corporation.Surplus funds, earned through operations, are re-invested back into Memorial Hospital for capital acquisition of medical technology, building enhancements, and the funding of the mission to provide graduate medical education. Part VI, Line 7: Memorial Hospital is a controlled entity of Memorial Health Systems Corporation, whose purpose is to: (1) conduct fund-raising for the Hospital's capital acquisition projects; and (2) provide overall strategic direction for the entire Health System, which is consistent with its mission to be a vital contributor to the health of the York community. The three other entities controlled by Memorial Health Systems Corporation are: (1) Surgical Center of York - a non-profit outpatient surgical center, which also provides surgical services to Medicaid, Medicare and Charity Care patients; (2) MHS Title Holding Corporation - a non-profit corporation which develops and rents real estate to its affiliates, physicians and others; and (3) Memorial Enterprises, Inc is a for-profit corporation formed to employ primary care and specialty care physicians ----- MEI provides services to a Medicare and Medical Assistance population, in addition to providing charity care through active participation in the Healthy York Network, an organization developed to meet the health care needs of those with incomes less than 200-300% below the Federal poverty Guidelines. X 1 1 X X X X X 0 1 0 0 0 0 0 0 0 James A Lease DO 309731 0 0 0 0 0 2000 0 15407 0 327138 0 0 0 SALLY J DIXON 357594 0 52414 0 0 0 63501 0 12796 0 486305 0 0 0 RICHARD IMBIMBO 233844 0 25822 0 0 0 2000 0 15407 0 277073 0 0 0 SUSAN M GORDON 142461 0 16434 0 1000 0 2000 0 976 0 162871 0 0 0 Raymond S Cuzzaniti 431564 0 0 0 0 0 2000 0 15272 0 448836 0 0 0 JAMES M SMOLKO 396999 0 0 0 0 0 2000 0 14483 0 413482 0 0 0 VAN D ADAMS 437870 0 0 0 0 0 2000 0 14764 0 454634 0 0 0 JOSEPH E ROBINSON 402999 0 0 0 0 0 0 0 7008 0 410007 0 0 0 HAOEH M JUNG 426519 0 0 0 0 0 0 0 12796 0 439315 0 0 0 HUGH PALMER 4550 115000 0 11160 0 0 0 1439 0 12521 4550 140120 0 0 RICHARD J LILLO 146154 0 0 0 0 0 1925 0 8987 0 157066 0 0 0 Part I, Line 4a Supplemental nonqualified retirement plan payment set-aside: Sally Dixon, President/CEO, $61,501 CAROL ST GEORGE DO director EQUIPMENT purchase X 17248 17248 0 1 1 17248 PARENTEBEARD LLC JODY KELLER, TREaSURER/SECRETARY, is partner of ParenteBeard LLC 69417 PARENTEBEARD LLC PROVIDEd ACCOUNTING SERVICES. 0 FULTON BANK-DROVERS DIVISION DAVID W. FREEMAN, Director, IS Assistant Treasurer of Fulton Bank 251450 FULTON BANK provided BANKING/FINANCIAL SERVICES. 0 Maureen M Malina Maureen M Malina is SPOUSE OF RICHARD IMBIMBO, CHieF FINANCIAL OFFICER 40891 SOCIAL WORKER FOR THE HOMECARE AND HOSPICE DEPARTMENT OF MEMORIAL HOSPITAL. 0 MILLER & DIPIETRO ASSOCIATES TERRY N. YORK D.O., DIRECTOR, is partner in Miller & DiPietro Partnership 955362 MILLER & DIPIETRO ASSOCIATES, MILLER & DIPIETRO PARTNERSHIP, AND MEDICAL IMAGING SYSTEMS OF YORK provided MEDICAL SERVICES. TERRY N. YORK IS A PARTNER WITH MILLER & DIPIETRO ASSOCIATES WHICH IS AFFILIATED WITH MILLER & DIPIETRO PARTNERSHIP AND MEDICAL IMAGING SYSTEMS OF YORK. 0 Form 990, Part VI, Section B, line 11 The accounting department provides Information (as reviewed by the CFO) to the independent accountant for preparation of form 990. The draft is reviewed by the CFO. THE FINAL DOCUMENT is presented TO THE FINANCE COMMITTEE OF MEMORIAL HOSPITAL. The full board of Memorial Hospital receives a copy of the final return before filing. Form 990, Part VI, Section B, line 12c The organization uses an annual questionnaire to determine if the all employees and members of the Board are independent. The employee questionnaires are initially completed as part of the orientation program upon employment, and then as part of the annual review process. These forms are reviewed by the Director of Human Resources and any potential conflict of interest is reviewed with the related party. Annual questionnaires for the Board/Senior Management are collect by the CEO and are reviewed by the CEO and the Board Chairperson. At the Board level, any potential conflict is monitored by the CEO and Chair, and Board members will refrain from voting on conflict/related issues. In addition to the reporting required, Key employees and Senior Management are monitored by the CEO and /or CFO through the purchasing and cash distributions controls in place. Form 990, Part VI, Section B, line 15 The determination of the compensation of the top management official includes a review and approval by the compensation committee of Memorial Hospital. AN OUTSIDE CONSULTANT IS RETAINED BY THE compensation COMMITTEE. ON AN ANNUAL BASIS, THE CONSULTANT CONDUCTS A COMPENSATION SURVEY OF COMPARABLE EXECUTIVE POSITIONS AT COMPARABLE HOSPITALS WITHIN OUR GENERAL GEOGRAPHIC MARKETPLACE. THE CONSULTANT WILL ALSO ADVISE THE BOARD ON CURRENT TRENDS REGARDING COMPENSATION IN HEALTHCARE AND THE MARKETPLACE, INCLUDING THE REVIEW AND ESTABLISHMENT OF A VARIABLE PAY ("INCENTIVE") PROGRAM. THE COMMITTEE'S GENERAL GUIDELINES ARE TO MAINTAIN A BASE SALARY within THE 50TH-60TH PERCENTILE OF SIMILAR POSITIONS IN PEER INSTITUTIONS. ALONG WITH THE VARIABLE PAY OPPORTUNITY, TOTAL COMPENSATION IS GEARED TO THE 75TH PERCENTILE AND SHOULD NOT EXCEED THE 90TH PERCENTILE. IN UNIQUE and SUPPORTABLE CIRCUMSTANCES, THE COMMITTEE MAY DEVIATE FROM THESE GUIDELINES. The compensation is reviewed by the executive committee. The deliberation and decision process is contemporaneously documented. Form 990, Part VI, Section C, line 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 2: The Finance Committee is Responsible for the Oversight of the Audit and the Selection of an Independent Accountant. This Process has Not Changed in the Last Year. FORM 990, PART VI, LINE 9: James R Zarfoss, Jr., deceased, can no longer be reached at the organization's mailing address. SURGICAL CENTER OF YORK 1750 FIFTH AVENUE YORK PA 17403 232507740 OUT PATIENT SURGERY CENTER PA 501(C)3 3 N/A MEMORIAL HEALTH SYSTEMS CORPORATION 1708 FIFTH AVENUE YORK PA 17403 222546051 SUPPORT AND DEVELOPMENT OF PROGRAMS FOR THE BENEFIT OF RELATED PARTIES PA 501(C)3 11 TYPE I N/A MHS TITLE HOLDING CORP 325 SOUTH BELMONT STREET YORK PA 17403 222546052 REAL PROPERTY MANAGEMENT FOR RELATED ENTITIES PA 501(C)3 11 TYPE I N/A Memorial Enterprises Inc 325 south Belmont Street York PA 17403 232353226 Medical clinics PA N/A C 0 1 0 1 1 0 0 0 0 1 1 1 1 1 1 1 1 1