2011-09-23T14:58:48-05:00 2010-12-31 DIXON HUGHES GOODMAN LLP 500 RIDGEFIELD COURT ASHEVILLE NC 28806 990 2010-01-01 621518342 METHODIST EXTENDED CARE HOSPITAL INC METH 9015162595 225 SOUTH CLAYBROOK MEMPHIS TN 38104 SANDRA BAILEY-DE LEEUW 9015162595 2011-09-21 1 AMY BIBBY 8282542254 2010 2016-03-07 17:11:31Z SANDRA BAILEY-DE LEEUW 225 SOUTH CLAYBROOK MEMPHIS TN 38104 15419174 0 X WWW.METHODISTHEALTH.ORG X 1993 TN OUR 36-BED ACUTE CARE HOSPITAL FOCUSES ON THE TREATMENT OF LONG-TERM PATIENTS WHO ARE MEDICALLY STABLE BUT REQUIRE INTENSE MEDICAL ATTENTION. 6 4 169 0 0 0 0 0 14844378 15411667 0 0 0 7507 14844378 15419174 0 0 0 0 7507504 7958437 0 0 0 6948092 6380298 14455596 14338735 388782 1080439 3502791 2925119 1103124 1330004 2399667 1595115 X METHODIST LE BONHEUR HEALTHCARE, IN PARTNERSHIP WITH ITS MEDICAL STAFFS, WILL COLLABORATE WITH PATIENTS AND THEIR FAMILIES TO BE THE LEADER IN PROVIDING HIGH QUALITY, COST-EFFECTIVE PATIENT-AND FAMILY-CENTERED CARE. SERVICES WILL BE PROVIDED IN A MANNER WHICH SUPPORTS THE HEALTH MINISTRIES AND SOCIAL PRINCIPLES OF THE UNITED METHODIST CHURCH TO BENEFIT THE COMMUNITIES WE SERVE. 0 0 12116074 1884991 15411667 OFTEN REFERRED TO AS A "HOSPITAL WITHIN A HOSPITAL," METHODIST EXTENDED CARE HOSPITAL (MECH) OPERATES AS A SEPARATE FACILITY LOCATED ON THE CAMPUS OF METHODIST METHODIST HEALTHCARE (EIN 62-0479367). MOST CARE IS DELIVERED AT THE PATIENT'S BEDSIDE USING INNOVATIVE TREATMENT PROGRAMS, HIGHLY TRAINED STAFF AND AN INTERDISCIPLINARY MODEL OF CARE.AT MECH, AGGRESSIVE MEDICAL MANAGEMENT - WITH A FOCUS ON REHABILITATION - HELPS PROGRESS THE CARDIAC PATIENT TO THE NEXT LEVEL OF CARE. CARDIAC REHABILITATION CONSISTS OF SEVERAL INDIVIDUALIZED INTERVENTIONS. CARDIAC EDUCATION, PHYSICAL REHABILITATION, PHARMACOLOGICAL INTERVENTION, RESPIRATORY THERAPY AND REMOTE TELEMETRY MONITORING ARE ALL PART OF A PATIENT'S PROGRAM. THERE IS ALSO CONTINUOUS CARDIOVASCULAR ASSESSMENT SUPERVISED BY AN ADVANCED CARDIAC LIFE SUPPORT-QUALIFIED NURSING STAFF.THE LOW-INTENSITY REHABILITATION PROGRAM'S FOCUS IS ON MEETING THE NURSING CARE NEEDS WHILE STRENGTHENING AND INCREASING THE PATIENT'S TOLERANCE FOR INTENSE THERAPY. MECH'S VENTILATOR WEANING PROGRAM TAKES AN AGGRESSIVE, PROGRESSIVE APPROACH CUSTOMIZED FOR THE PATIENT. WE PROVIDE INDIVIDUALIZED PROGRAMS FOR PATIENTS WITH ACUTE OR CHRONIC RESPIRATORY DISORDERS WHO MAY HAVE ARTIFICIAL AIRWAYS, VENTILATORS OR REQUIRE EXTENSIVE RESPIRATORY TREATMENTS TO MAINTAIN NORMAL BREATHING WITHOUT MECHANICAL SUPPORT.THE WOUND CARE PROGRAM TREATS PATIENTS WITH IMPAIRED TISSUE INTEGRITY WHO ARE AT HIGH RISK FOR COMPLICATIONS. TREATMENT INCLUDES AN EVALUATION, ASSESSMENT AND PLAN FOR TREATMENT PERFORMED AT THE PATIENT'S BEDSIDE BY A WOUND CARE NURSE. IN ADDITION, PATIENTS RECEIVE PHYSICAL REHABILITATION, WOUND MANAGEMENT EDUCATION AND GUIDANCE FROM A NUTRITIONIST. 12116074 1 0 0 0 0 0 0 0 0 1 0 0 1 0 1 0 1 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 12 0 1 169 1 0 0 0 0 0 0 0 0 0 0 X 6 4 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X X X SUE WAUGH 9015160656 1211 UNION MEMPHIS TN 38104 X DENNIS HIGDON 2.00 X X 0 0 0 MARTAVIUS D JONES 2.00 X 0 0 0 GEORGE LEWIS 2.00 X 0 0 0 EVA E MOSBY 2.00 X 0 0 0 WILLIAM H TETTELBACH 2.00 X 0 0 0 SANDRA BAILEY-DE LEEUW 50.00 X X 202441 0 48539 WILLIAM ERSKINE 2.00 X 0 118339 19908 KRIS SANDERS 2.00 X 0 97501 17566 SANDRA HUGUELEY 50.00 X 129988 0 25249 LYDIA HUTCHISON 50.00 X 113818 0 11528 446247 215840 122790 3 0 1 0 MORRISON MANAGEMENT SPECIALISTS INC PO BOX 102289 ATLANTA GA 30368 FOOD SERVICE 182943 1 NET PATIENT SERVICE 623000 15411667 15411667 15411667 MEDICAL TRANSCRIPTION 900099 4554 4554 MISCELLANEOUS REVENUES 900099 2953 2953 7507 15419174 15411667 0 7507 249749 249749 6167424 5840370 327054 307717 280058 27659 768762 699662 69100 464785 423008 41777 3761 3761 2282923 2282923 1928922 1825368 103554 5000 5000 373038 373038 6842 6842 4585 4585 98576 98576 66357 57046 9311 CORPORATE OVERHEAD 1390696 1390696 BAD DEBT EXPENSE 219598 219598 14338735 12116074 2222661 0 -22152 -69607 2090092 1593695 93777 99949 8418 8139 1119533 490956 607660 628577 724996 664366 3502791 2925119 1103124 1330004 1103124 1330004 X 2399667 1595115 2399667 1595115 3502791 2925119 X 1080439 -1884991 X X 0 1 1 X 1 1 X 4400 317 4083 19067 15791 3276 1096066 474848 621218 628577 DUE FROM AFFILIATES 664366 664366 15419174 14338735 1080439 -1884991 -1884991 -804552 13534183 -1884991 -1884991 15419174 0 15419174 14338735 0 14338735 0 14338735 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE ORGANIZATION CONSOLIDATES ITS AUDIT WITH ITS CORPORATE PARENT AND OTHER SUBSIDIARIES OF THE PARENT. THE FOLLOWING STATEMENT REFLECTS THE FIN 48 FOOTNOTE OF THE CONSOLIDATED GROUP. THE INTERNAL REVENUE SERVICE HAS DETERMINED THAT THE SYSTEM AND ALL OF THE NONPROFIT AFFILIATES FOR WHICH THE SYSTEM OR ITS BOARD OF DIRECTORS IS CONTROLLING MEMBER ARE EXEMPT FROM FEDERAL INCOME TAX UNDER INTERNAL REVENUE CODE (IRC) SECTION 501(A) AS ORGANIZATIONS DESCRIBED IN SECTION 501(C)(3). AS QUALIFIED TAX-EXEMPT ORGANIZATIONS, THE SYSTEM'S NONPROFIT AFFILIATES MUST OPERATE IN CONFORMITY WITH THE IRC TO MAINTAIN THEIR TAX-EXEMPT STATUS. INCOME TAX FROM THE OPERATIONS OF THE SYSTEM'S WHOLLY OWNED FOR-PROFIT SUBSIDIARY, AMBULATORY OPERATIONS, INC., AND ITS SUBSIDIARIES IS NOT SIGNIFICANT. THE SYSTEM APPLIES FASB ASC TOPIC 740 (TOPIC 740), ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES. TOPIC 740 CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAX POSITIONS AND PROVIDES GUIDANCE ON WHEN TAX POSITIONS ARE RECOGNIZED IN AN ENTITY'S FINANCIAL STATEMENTS AND HOW THE VALUES OF THESE POSITIONS ARE DETERMINED. THERE HAS BEEN NO IMPACT ON THE SYSTEM'S COMBINED FINANCIAL STATEMENTS AS A RESULT OF TOPIC 740. PART XI, LINE 8 - OTHER ADJUSTMENTS: EQUITY TRANSFERS TO AFFILIATES -1,884,991. PART XII, LINE 2D - OTHER ADJUSTMENTS: EQUITY TRANSFERS TO AFFILIATES -1,884,991. 1 0 1 X 1 X 1 1 0 1 1 113028 55398 57630 0.00410 113028 55398 57630 0.00410 113028 55398 57630 0.00410 13182 13182 0.00090 2970 2970 0.00020 16152 16152 0.00110 0 95882 47941 13341076 12734252 606824 X 1 0 1 1 METHODIST EXTENDED CARE HOSPITAL

225 SOUTH CLAYBROOK MEMPHIS TN 38104

X X LONG-TERM TREATMENT NA FOR 2010 1 PART I, LINE 6A: METHODIST EXTENDED CARE HOSPITAL'S COMMUNITY BENEFIT REPORT IS PREPARED PRIMARILY BY THE COMMUNICATIONS AND MARKETING DEPARTMENT, WITH SUPPORT FROM THE ACCOUNTING AND FINANCE DEPARTMENTS, OF METHODIST LE BONHEUR HEALTHCARE, THE HOME OFFICE/CORPORATE PARENT ENTITY OF THE HOSPITAL. MECH'S COMMUNITY BENEFIT REPORT CAN BE FOUND ON THE COMPANY'S WEBSITE AT WWW.METHODISTHEALTH.ORG UNDER THE "ABOUT US" SECTION. PART I, LINE 7: WORKSHEET 2 OF THE 2010 SCHEDULE H INSTRUCTIONS WAS USED TO COMPUTE A COST-TO-CHARGES RATIO THAT WAS USED TO CALCULATE UNREIMBURSED MEDICAID AT COST. PART I, L7 COL(F): THE AMOUNT ON FORM 990, PART IX, LINE 25 CONTAINS A BAD DEBT EXPENSE OF $ 219,598 THAT HAS BEEN REMOVED FOR PURPOSES OF CALCULATING PERCENT OF TOTAL EXPENSE ON SCHEDULE H, PART I, LINE 7, COLUMN (F). PART III, LINE 4: THE ORGANIZATION'S FINANCIAL STATEMENTS DO NOT INCLUDE A FOOTNOTE ON BAD DEBTS, ACCOUNTS RECEIVABLE, OR ALLOWANCE FOR UNCOLLECTABLE ACCOUNTS. WORKSHEET 2 OF THE 2010 SCHEDULE H INSTRUCTIONS WAS USED TO COMPUTE A COST-TO-CHARGES RATIO THAT WAS USED TO CALCULATE BAD DEBT AT COST.WHEN A PORTION OF PATIENT CHARGES BECOME PATIENT RESPONSIBILITY, THE AMOUNT IS WRITTEN OFF TO BAD DEBTS AND THEN SENT TO OUR COLLECTION GROUP. ANY PAYMENTS RECOUPED BY OUR COLLECTIONS GROUP ARE THEN APPLIED AGAINST THE BAD DEBT EXPENSE. IT IS OUR ESTIMATION BASED ON HISTORICAL EXPERIENCE THAT ABOUT 50% OF THE REMAINING PORTION OF BAD DEBTS (AFTER RECOVERIES) COULD BE APPLICABLE TO PATIENTS WHO, ON ADDITIONAL REVIEW AND PROVIDING ALL RELEVANT INFORMATION, WOULD QUALIFY FOR FINANCIAL ASSISTANCE. PART III, LINE 8: AMOUNTS PRESENTED ON PART III, LINES 5 AND 6 ARE DERIVED FROM THE ORGANIZATION'S MEDICARE COST REPORT. PART III, LINE 9B: METHODIST LE BONHEUR HEALTHCARE'S COLLECTION PROCESS BEGINS WITH THE ORGANIZATION'S REVENUE CYCLE TEAM MAKING INITIAL COLLECTION EFFORTS TO RECOUP ALL MONIES DUE FROM THE PATIENTS' INSURANCE PROVIDERS. WHEN THE AMOUNT DUE IS SOLELY THE PATIENT'S PORTION, THE ACCOUNT IS TRANSFERRED TO ANOTHER TEAM THAT SPECIALIZES IN PATIENT PORTION ACCOUNTS (EARLY-OUT PROGRAM). IT IS THIS PROGRAM THAT INITIALLY DETERMINES IF A PATIENT QUALIFIES FOR CHARITY CARE UNDER THE ORGANIZATION'S POLICY. IF QUALIFICATION IS UNCLEAR, THIS PROGRAM ATTENDS TO THE ACCOUNT FOR A PREDETERMINED TIME THROUGH LETTERS AND PHONE CALLS. THE DURATION IS DEPENDENT ON VARIOUS SCENARIOS THAT AFFECT ITS LENGTH, SUCH AS PAYMENT ARRANGEMENTS, DISPUTES, ETC. AFTER THE EARLY-OUT TIME PERIOD HAS EXPIRED, THE ACCOUNT IS THEN SENT TO OUR COLLECTIONS GROUP. AN ACCOUNT PLACED WITH OUR COLLECTION GROUP EXPERIENCES A CONTINUED AND THOROUGH COLLECTION PHASE. ONCE ALL COLLECTION EFFORTS HAVE BEEN EXHAUSTED AND IT IS DETERMINED THAT THE REMAINING BALANCE WILL NOT BE COLLECTED, THE ACCOUNT IS REEVALUATED ON THE CRITERIA USED TO DETERMINE FINANCIAL AID ELIGIBILITY. PART I, LINE 7: METHODIST EXTENDED CARE HOSPITAL, INC. FOCUSES SPECIFICALLY ON LONG-TERM REHABILITATION, AND IS A VALUABLE COMPONENT OF THE METHODIST LE BONHEUR HEALTHCARE SYSTEM. FINANCIAL ASSISTANCE AND OTHER COMMUNITY BENEFITS PRESENTED ON PART I, LINE 7 ARE REQUIRED TO BE REPORTED BASED ON THIS ORGANIZATION ONLY. BECAUSE OF THE SPECIALIZED AND FOCUSED NATURE OF THE ORGANIZATION'S MISSION, PART I, LINE 7 IS NOT REFLECTIVE OF THE EXCEPTIONAL LEVEL OF COMMUNITY BENEFIT PROVIDED BY OTHER MEMBERS OF THE METHODIST LE BOHNEUR FAMILY. WE ENCOURAGE READERS TO SEE SCHEDULE H OF OUR AFFILIATES FOR MORE DETAILS. PART VI, LINE 2: METHODIST EXTENDED CARE HOSPITAL, INC.(MECH), IN CONJECTURE WITH METHODIST HEALTHCARE - MEMPHIS HOSPITALS (MHMH), COMMISSIONED THE NATIONAL RESEARCH CORPORATION TO ASSESS THE HEALTH CARE NEEDS OF THE COMMUNITIES IT SERVES. THE ASSESSMENT WAS BASED ON SURVEYS MADE IN 2009 AND EARLY 2010. THE REPORT ENABLES MECH AND MHMH TO STRENGTHEN THE HEALTH OF THE COMMUNITY BY ASSISTING IN THE FOLLOWING:(1) MEASUREMENT AND EVALUATION OF HEALTH STATUS AND HEALTHCARE UTILIZATION WITHIN THE COMMUNITY,(2) IDENTIFICATION OF THE PREVALENCE OF CHRONIC CONDITIONS WITHIN VARIOUS DEMOGRAPHIC AND GEOGRAPHIC SEGMENTS WITHIN THE COMMUNITY,(3) PROFILING OF HIGH-RISK POPULATIONS,(4) IDENTIFICATION OF GAPS IN CARE AND PREVENTIVE HEALTH BEHAVIORS AMONG VARIOUS DEMOGRAPHIC AND GEOGRAPHIC SEGMENTS WITHIN THE COMMUNITY.FINDINGS ARE REVIEWED WITH SENIOR LEADERSHIP AND THE BOARD OF DIRECTORS TO BE INCLUDED IN FUTURE DEPLOYMENT MAPS AND BUDGETS. PART VI, LINE 3: METHODIST EXTENDED CARE HOSPITAL UTILIZES THE FEDERAL POVERTY GUIDELINES (FPG) TO DETERMINE THE LEVEL OF DISCOUNT UNINSURED PATIENTS MAY RECEIVE. THE LEVEL BY WHICH ASSISTANCE IS DETERMINED IS THROUGH THE SCALE SET BY THE DEPARTMENT OF HEALTH AND HUMAN SERVICES (DHHS), WHICH INCLUDES FACTORS SUCH AS RESIDENTS PER HOUSEHOLD AND INCOME. MECH COMMUNICATES AND PROVIDES ASSISTANCE CONCERNING ELIGIBILITY FOR FINANCIAL ASSISTANCE IN SEVERAL WAYS. CHARITY CARE POLICIES ARE POSTED AND UPDATED AS PART OF THE ORGANIZATION'S SYSTEM POLICIES AND ARE AVAILABLE TO ALL STAFF THROUGH THE COMPANY INTRANET CONNECTIONS. IN ADDITION, PATIENT-FRIENDLY SUMMARIES OF THESE POLICIES ARE POSTED IN VISIBLE LOCATIONS THROUGHOUT ALL PUBLIC AREAS OF THE FACILITY. AT THE TIME OF PATIENT REGISTRATION, MECH PROVIDES FINANCIAL COUNSELING BASED ON THE AVAILABLE INSURANCE AND "ABILITY TO PAY" INFORMATION PROVIDED. MECH ALSO SUPPLIES CHARITY CARE APPLICATIONS AND OFFERS ASSISTANCE IN THE COMPLETION OF FORMS IN ALL INSTANCES WHERE THE "FINANCIAL PICTURE AS PRESENTED TO US" APPEARS TO WARRANT THAT SERVICE.FINALLY, THE HOSPITAL DISCUSSES WITH THE PATIENT THE AVAILABILITY OF VARIOUS GOVERNMENTAL BENEFITS, SUCH AS MEDICAID OR OTHER STATE PROGRAMS, AND ASSISTS THE PATIENT WITH QUALIFICATION FOR SUCH PROGRAMS, AS APPLICABLE. LANGUAGE BARRIERS ARE TAKEN INTO ACCOUNT WITH ALL PATIENT COMMUNICATION. ALL STAFF WITH PATIENT CONTACT, INCLUDING ADMISSION AND BILLING CLERKS, NURSES AND THE MEDICAL STAFF, SOCIAL WORKERS, CHAPLAINS, AND PATIENT ADVOCATES, ARE KNOWLEDGEABLE ABOUT THE CHARITY CARE POLICY AND ASSIST PATIENTS WHEN NECESSARY. PART VI, LINE 4: METHODIST EXTENDED CARE HOSPITAL IS ADMINISTERED BY THE MEMPHIS, ARKANSAS, AND MISSISSIPPI CONFERENCES OF THE UNITED METHODIST CHURCH TO SERVE ITS MISSION OF FAITH-BASED HEALTHCARE TO THE POPULATION OF THE MISSION AREA, WHICH IS PRIMARILY SHELBY COUNTY, TENNESSEE, WITH AN URBAN POPULATION OF APPROXIMATELY ONE MILLION. MECH IS PHYSICALLY LOCATED IN URBAN MEMPHIS WITHIN THE UNIVERSITY HOSPITAL LOCATION OF METHODIST HEALTHCARE - MEMPHIS HOSPITALS (MHMH), A RELATED ORGANIZATION. MHMH ALSO FURNISHES TERTIARY SERVICES TO RURAL AREAS IN EASTERN ARKANSAS, WEST TENNESSEE, AND NORTH MISSISSIPPI. THE POPULATION OF THE AREA IS EXPECTED TO GROW BY 4 PERCENT OVER THE NEXT 5 YEARS. MHMH IS THE LARGEST MEDICAID PROVIDER IN THE AREA, WITH OVER 13,000 INPATIENTS SERVED EACH YEAR. AS AN ACADEMIC MEDICAL CENTER, MHMH TRAINS HEALTH PROFESSIONALS AND FURNISHES SPECIALIZED HEALTHCARE SERVICES NOT OTHERWISE AVAILABLE TO THE REGION. MHMH IS THE PRIMARY PRACTICE LOCATION FOR THE UNIVERSITY OF TENNESSEE SCHOOL OF MEDICINE. THIS DISTINCTION ALONG WITH THE ACCOMPANYING RESEARCH BENEFITS THE ENTIRE METROPOLITAN COMMUNITY. PART VI, LINE 6: MECH GIVES BACK TO THE COMMUNITY IN A VARIETY OF WAYS. ITS ASSOCIATES PARTICIPATE IN UNITED WAY, THE AMERICAN HEART ASSOCIATION'S HEART WALK, AND THE MEMPHIS FOOD BANK'S ANNUAL FOOD DRIVE. MECH IS ALSO INVOLVED IN A SMOKING CESSATION PROGRAM AT CUMMINGS STREET BAPTIST CHURCH. MECH IS REPRESENTED AT WHITEHAVEN HIGH CAREER DAY AND MECH RESPIRATORY IS ALSO ACTIVE WITH THE OCCUPATIONAL ADVISORY COMMITTEE THROUGH CONCORDE CAREER COLLEGE. THEY PROVIDE A FOOD BASKET FOR CHRISTMAS TO NEEDY FAMILIES ASSOCIATED WITH THE METROPOLITAN INTERFAITH ASSOCIATION.A MAJORITY OF THE ORGANIZATION'S GOVERNING BODY IS COMPRISED OF PERSONS WHO RESIDE IN THE PRIMARY SERVICE AREA AND WHO ARE NEITHER EMPLOYEES OF NOR INDEPENDENT CONTRACTORS OF THE ORGANIZATION. THE HOSPITAL EXTENDS MEDICAL STAFF PRIVILEGES TO ALL QUALIFIED PHYSICIANS IN ITS COMMUNITY. PART VI, LINE 7: METHODIST EXTENDED CARE HOSPITAL, INC., THE FILING ORGANIZATION, IS A SUBSIDIARY OF METHODIST LE BONHEUR HEALTHCARE (MLH). ALTHOUGH THIS FORM 990 ONLY INCLUDES THE CHARITY CARE AND COMMUNITY BENEFIT OF THIS ORGANIZATION, MLH INCLUDES THE FOLLOWING ENTITIES THAT ALSO PROVIDE CHARITY CARE AND COMMUNITY BENEFIT: - METHODIST HEALTHCARE - MEMPHIS HOSPITALS - METHODIST HEALTHCARE - FAYETTE HOSPITAL - ALLIANCE HEALTH SERVICES, INC. - METHODIST HEALTHCARE COMMUNITY CARE ASSOCIATESIN ADDITION, METHODIST HEALTHCARE FOUNDATION AND LE BONHEUR CHILDREN'S HOSPITAL FOUNDATION PROIVDE VALUABLE FINANCIAL SUPPORT TO THE OPERATIONS OF THE GROUP, ALLOWING IT TO PURSUE RESEARCH AND CONSTRUCTION PROJECTS TO PROVIDE ADDITIONAL BENEFITS TO THE COMMUNITY. METHODIST HEALTHCARE-MEMPHIS HOSPITALS ALSO HAS A TEACHING AND RESEARCH AFFILIATION WITH THE UNIVERSITY OF TENNESSEE. THE UNIVERSITY HAS A CLINICAL REACH THAT EXTENDS BEYOND THE LOCAL SERVICE AREA, PROVIDING HIGHLY SPECIALIZED SERVICES THAT ATTRACT PATIENTS FROM A MULTI-STATE SERVICE AREA. MHMH HAD OVER 225 RESIDENTS, PLUS FELLOWS, NURSES, AND ALLIED HEALTH PROFESSIONALS THAT TRAINED IN OUR FACILITIES DURING 2010. REPORTS FILED WITH STATES PART VI, LINE 7 TN 0 0 0 0 0 0 0 0 0 SANDRA BAILEY-DE LEEUW 166422 0 34788 0 1231 0 36469 0 12070 0 250980 0 0 0 SANDRA HUGUELEY 119032 0 10956 0 0 0 13375 0 11874 0 155237 0 0 0 SUPPLEMENTAL INFORMATION PART III PART I, LINE 3: THE BOARD OF METHODIST LE BONHEUR HEALTHCARE, A RELATED ORGANIZATION AND CORPORATE OVERSIGHT ENTITY, CONDUCTS THE FOLLOWING METHODS TO ESTABLISH COMPENSATION FOR ITS OFFICERS AND KEY EMPLOYEES: - COMPENSATION COMMITTEE - INDEPENDENT COMPENSATION CONSULTANT - COMPENSATION STUDY / SURVEY - APPROVAL BY THE BOARD / COMPENSATION COMMITTEE FORM 990, PART VI, SECTION A, LINE 6 METHODIST EXTENDED CARE HOSPITAL, INC. IS A SUBSIDIARY OF METHODIST LE BONHEUR HEALTHCARE (MLH, 58-1454711), WITH MLH AS THE SOLE MEMBER. FORM 990, PART VI, SECTION A, LINE 7A AS THE SOLE MEMBER OF THE ORGANIZATION, MLH AND ITS BOARD OF DIRECTORS ELECT ALL MEMBERS OF THE GOVERNING BODY FOR METHODIST EXTENDED CARE HOSPITAL. FORM 990, PART VI, SECTION A, LINE 7B THE MEMBER SHALL, FROM TIME TO TIME, ADOPT AND PROMULGATE SUCH AMENDMENTS AS IT SHALL DEEM APPROPRIATE TO THE BYLAWS AND TO THE GENERAL POLICIES AND GUIDELINES OF THE ORGANIZATION, ALL OF WHICH SHALL BE CONSISTENT WITH THE PURPOSES OF THE ORGANIZATION. AT SUCH TIMES AS THE MEMBER MAY SELECT, THE MEMBER SHALL REVIEW THE AFFAIRS OF THE ORGANIZATION AND TAKE SUCH ACTION AS IT MAY DEEM APPROPRIATE IN ACCORDANCE WITH THE BYLAWS. THE FOLLOWING ITEMS MUST BE SUBMITTED FOR APPROVAL BY THE MEMBER: - LONG RANGE PLANS AND CAPITAL IMPROVEMENT PLANS - CREATION OR SUBSTANTIVE AMENDMENT OF A CONTRACT, LEASE, OR OTHER AGREEMENT TO WHICH THE ORGANIZATION IS A PARTY WHICH INVOLVES AN OBLIGATION IN EXCESS OF $100,000 - SALES, EXCHANGES, GIFTS, MORTGAGES, OPTIONS, AND LEASES WITH A TERM IN EXCESS OF ONE YEAR, AND MAJOR DISPOSITIONS - APPLICATIONS FOR GOVERNMENT GRANTS - AMENDMENTS TO THE CORPORATE CHARTER OR PLAN OF MERGER, CONSOLIDATION, OR DISSOLUTION OF THE ORGANIZATION - ANY ACTION AT VARIANCE WITH THE STATED POLICIES OF THE ORGANIZATION - ANY INDEMNIFICATION OF PERSONS BY THE ORGANIZATION EXCEPT AS THOSE STATED IN THE BYLAWS - ANY OTHER MATTERS AS MAY BE REQUIRED BY LAW TO BE SUBMITTED TO THE MEMBERS OF A NOT-FOR-PROFIT CORPORATION FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS PREPARED BY AN INDEPENDENT ACCOUNTING FIRM WITH INPUT FROM HUMAN RESOURCES, LEGAL, COMPLIANCE, AND FINANCE DEPARTMENTS AND EXTERNAL FINANCIAL CONSULTANTS. FINANCIAL INFORMATION IS RECONCILED TO AUDITED FINANCIAL STATEMENTS AS APPROPRIATE. THE INFORMATION TO BE DISCLOSED REGARDING COMPENSATION IS REVIEWED WITH THE COMPENSATION COMMITTEE OF THE BOARD. THE RETURN IS REVIEWED BY THE CHIEF FINANCIAL OFFICER OF MLH AND MANAGEMENT OF THE ORGANIZATION AS APPROPRIATE. A COPY OF THE RETURN IS PROVIDED TO EACH BOARD MEMBER VIA E-MAIL PRIOR TO FILING THE RETURN. FORM 990, PART VI, SECTION B, LINE 12C METHODIST LE BONHEUR HEALTHCARE, THE PARENT ORGANIZATION, EMPLOYS A COMPLIANCE OFFICER WHO MONITORS AND ENFORCES COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY FOR ALL VOTING BOARD MEMBERS AND APPLICABLE OFFICERS. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION FOR OFFICERS AND KEY EMPLOYEES OF THE ORGANIZATION IS DETERMINED BY THE BOARD OF DIRECTORS OF METHODIST LE BONHEUR HEALTHCARE, THE PARENT ORGANIZATION. AN EXTERNAL INDEPENDENT CONSULTANT ADVISES THE BOARD COMPENSATION COMMITTEE ON EXECUTIVE SALARY AND INCENTIVE COMPENSATION. BENEFITS ARE PERIODICALLY BENCHMARKED BY A SEPARATE EXTERNAL CONSULTANT AND ANY CHANGES ARE APPROVED BY THE BOARD OF DIRECTORS COMPENSATION COMMITTEE. THE COMPENSATION COMMITTEE IS COMPRISED OF INDEPENDENT MEMBERS AND IS A SUBGROUP OF THE FULL BOARD OF DIRECTORS. THE COMPENSATION CONSULTANT ANNUALLY DEVELOPS TOTAL CASH COMPENSATION COMPARISONS OF PEER NON-PROFIT SYSTEMS ESTABLISHED BY THE COMPENSATION COMMITTEE. THE COMPENSATION CONSULTANT INTERPRETS THE INFORMATION AND PROVIDES AN OPINION OF REASONABLENESS ON THE TOTAL CASH COMPENSATION PACKAGE. THE COMPENSATION COMMITTEE APPROVES ANY CHANGES TO THE COMPENSATION AND EXECUTIVE BENEFIT STRUCTURE OF THE CEO AND OTHER TOP EXECUTIVES, OTHERWISE KNOWN AS DISQUALIFIED CANDIDATES. ALL OTHER COMPENSATION DECISIONS ARE DETERMINED BY ARRANGEMENT AS DELEGATED BY THE BOARD OF DIRECTORS. THE COMMITTEE DOCUMENTS ALL DETERMINATIONS. FORM 990, PART VI, SECTION C, LINE 18 PHOTOCOPIES OF THE FORM 990 ARE AVAILABLE UPON REQUEST AT THE ORGANIZATION'S ADMINISTRATIVE OFFICE. IN ADDITION, RECENT FILINGS OF THE FORM 990 ARE AVAILABLE ONLINE AT OUR WEBSITE IN THE "ABOUT US" SECTION, OR AT WWW.GUIDESTAR.ORG. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S FINANCIAL STATEMENTS ARE AUDITED IN A CONSOLIDATION WITH ITS CORPORATE PARENT, METHODIST LE BONHEUR HEALTHCARE, AND RELATED SUBSIDIARIES. INFORMATION ON FINANCIAL STATEMENTS IS AVAILABLE BY CONTACTING THE ORGANIZATION'S CORPORATE OFFICE. PLEASE SEE FORM 990, PART VI, LINE 20 FOR DETAILS. CONFLICT OF INTEREST POLICY AND GOVERNING DOCUMENTS FOR ALL AFFILIATES OF METHODIST LE BONHEUR HEALTHCARE ARE ALSO AVAILABLE BY REQUEST. FORM 990, PART VII, LINE 1: AVERAGE HOURS OF RELATED ORGANIZATIONS: THE FOLLOWING BOARD MEMBERS AND OFFICERS OF THE ORGANIZATION WORK APPROXIMATELY 32 HOURS PER WEEK FOR A RELATED ORGANIZATION: WILLIAM ERSKINE KRIS SANDERS CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: EQUITY TRANSFERS TO AFFILIATES -1,884,991. TOTAL TO FORM 990, PART XI, LINE 5: -1,884,991. FORM 990, PART XII, LINE 2C: THE PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. LE BONHEUR CHILDREN'S HOSPITAL FOUNDATION 850 POPLAR AVENUE BLDG 2 MEMPHIS TN 38105 621872938 FOUNDATION TN 501(C)(3) LINE 11A, I N/A 0 METHODIST HEALTHCARE FOUNDATION 1211 UNION AVENUE SUITE 450 MEMPHIS TN 38104 237320638 FOUNDATION TN 501(C)(3) LINE 11A, I N/A 0 METHODIST HEALTHCARE-FAYETTE HOSPITAL 214 LAKEVIEW DRIVE SOMERVILLE TN 38068 620862334 HOSPITAL TN 501(C)(3) LINE 3 N/A 0 METHODIST HEALTHCARE-JONESBORO HOSPITAL 1211 UNION AVENUE SUITE 657 MEMPHIS TN 38104 710499625 INACTIVE HOSPITAL TN 501(C)(3) LINE 3 N/A 0 METHODIST HEALTHCARE COMMUNITY CARE ASSOCIATES 6400 SHELBY VIEW SUITE 101 MEMPHIS TN 38134 621403517 OUTPATIENT HEALTHCARE TN 501(C)(3) LINE 9 N/A 0 METHODIST HEALTHCARE PRIMARY CARE ASSOCIATES 1211 UNION AVENUE SUITE 657 MEMPHIS TN 38104 582078931 OUTPATIENT HEALTHCARE TN 501(C)(3) LINE 9 N/A 0 LE BONHEUR COMMUNITY HEALTH AND WELL-BEING 50 PEABODY PLACE MEMPHIS TN 38103 621251288 FOUNDATION TN 501(C)(3) LINE 7 N/A 0 METHODIST HEALTHCARE-DYERSBURG HOSPITAL 1211 UNION AVENUE SUITE 657 MEMPHIS TN 38104 621155084 INACTIVE HOSPITAL TN 501(C)(3) LINE 3 N/A 0 ALLIANCE HEALTH SERVICES INC 6400 SHELBY VIEW SUITE 101 MEMPHIS TN 38134 620841121 HEALTHCARE TN 501(C)(3) LINE 9 N/A 0 METHODIST HEALTHCARE CENTRAL MS MEDICAL ASSOCIATES 1211 UNION AVENUE SUITE 657 MEMPHIS TN 38104 640884720 INACTIVE HOSPITAL TN 501(C)(3) LINE 3 N/A 0 METHODIST HEALTHCARE-JACKSON HOSPITAL 1211 UNION AVENUE SUITE 657 MEMPHIS TN 38104 640794199 INACTIVE HOSPITAL TN 501(C)(3) LINE 3 N/A 0 METHODIST HEALTHCARE-MIDDLE MISSISSIPPI HOSPITAL 1211 UNION AVENUE SUITE 657 MEMPHIS TN 38104 640698911 INACTIVE HOSPITAL TN 501(C)(3) LINE 3 N/A 0 METHODIST LE BONHEUR HEALTHCARE 1211 UNION AVENUE SUITE 700 MEMPHIS TN 38104 581454711 SUPPORTING ORGANIZATION TN 501(C)(3) LINE 11B, II N/A 0 METHODIST HEALTHCARE-MEMPHIS HOSPITALS 1265 UNION AVENUE MEMPHIS TN 38104 620479367 HOSPITAL TN 501(C)(3) LINE 3 N/A 0 DESOTO DIAGNOSTIC LLC 9085 SANDIDGE CTR CV OLIVE BRANCH MS 38654 621802576 RADIOLOGY MS N/A NORTH SURGERY CENTER LP 3960 NEW COVINGTON PIKE MEMPHIS TN 38128 621685756 SURGERY CENTER TN N/A METHODIST SURGERY CENTER-GERMANTOWN LP 1363 S GERMANTOWN ROAD GERMANTOWN TN 38138 621659904 SURGERY CENTER TN N/A HAMILTON EYE INSTITUTE SURGERY CENTER LP 930 MADISON AVE 3RD FLOOR MEMPHIS TN 38103 202873438 SURGERY CENTER TN N/A AMBULATORY OPERATIONS INC 1211 UNION AVENUE SUITE 600 MEMPHIS TN 38104 621157166 MEDICAL SERVICES TN N/A C SOLUS MANAGEMENT SERVICES INC 6400 SHELBY VIEW SUITE 101 MEMPHIS TN 38134 621361349 HEALTH SERVICES MANAGEMENT TN N/A C MEMPHIS PROFESSIONAL BUILDING INC 1211 UNION AVENUE SUITE 600 MEMPHIS TN 38104 621847544 INVESTMENTS TN N/A C 0 1 1 0 0 0 0 0 0 1 0 0 1 0 1 1 0 0