2011-01-27T21:41:19-06:00 2010-05-31 Deloitte Tax LLP 111 S Wacker Drive Chicago IL 606064301 990 2009-06-01 364113692 RML Health Providers Limited Partnership RMLH 6302864000 5601 South County Line Road Hinsdale IL 605214875 James R Prister 6302864000 2011-01-27 1 Lori Lorgeree 3124861000 2009 2016-02-24 21:20:13Z RML Specialty Hospital James R Prister 5601 S County Line Rd Hinsdale IL 605214875 59463752 0 X WWW.rmlspecialtyhospital.org X 1997 IL RML provides exceptional health services to unique patients with long-term acute care needs. 4 4 499 20 1104 -1750 804438 2125727 42740673 48866917 294741 290827 112014 79907 43951866 51363378 31270 0 25152205 28186756 0 160769 17786122 18808411 42938327 47026437 1013539 4336941 31739673 33371502 12927235 13652282 18812438 19719220 At RML Specialty Hospital ("RML"), our mission is to provide exceptional health services to unique patients with long-term acute care needs. (See Schedule O)RML is focused on delivering quality care measured by clinical outcomes and patient satisfaction, meeting each patient's individualized needs with compassion, delivering effective and efficient services, recognizing the value of every staff member, and supporting the specialized needs of its community. 0 0 39507505 31270 48866917 RML provides quality, compassionate care to patients from our referring community who suffer from prolonged, severe illness. RML serves nearly 100 referral sources throughout Illinois and the nation, including our partner organizations, community hospitals and major tertiary care centers throughout the Chicagoland area. RML is recognized as a leader in long-term acute care and is one of the largest ventilator weaning hospitals in the nation. In the most recent fiscal year, patient care was provided to more than 800 patients. (See Schedule O)In order to support the specialized needs of our patients and community, RML utilizes a physician-led interdisciplinary team to provide treatment to patients with acute or catastrophic illnesses and injuries complicated by complex or multiple co-morbidities. RML's three major clinical programs include ventilator weaning, wound management, and medically complex. Our commitment to excellence and superior clinical outcomes has led us to achieve the lowest rate of adverse outcomes (defined as expirations and transfers to acute care hospitals) of any long-term acute care hospital in the Chicagoland area. 39507505 1 1 0 1 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 1 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 45 0 1 499 1 1 1 0 0 0 0 1 1 0 0 0 4 4 1 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 IL X Thomas M Pater 6302864000 5601 South County Line Road Hinsdale IL 605214875 Patricia Cassidy 2.00 X 0 0 0 Avery Miller 2.00 X 0 0 0 Catherine Dimou MD 2.00 X 0 0 0 John Mordach 2.00 X 0 0 0 James Prister 40.00 X 357386 0 53327 Thomas Pater 40.00 X 210342 0 48613 John D Brofman MD 40.00 X 226437 0 29158 Maura Hopkins 40.00 X 177914 0 32954 Kenneth Pawola 40.00 X 168681 0 23847 Julie Ames 40.00 X 149414 0 6964 John Landstrom 40.00 X 150865 0 6729 Carolyn Svehla 40.00 X 116049 0 13802 Patricia Vaisvila 2.00 X 116911 0 7536 Richard Petrak MD 40.00 X 207553 0 31608 Kieran J Nicholson MD 40.00 X 133490 0 6681 Mark L Goode MD 40.00 X 176714 0 13148 Uchenna Olekanma MD 40.00 X 154401 0 23420 Kathleen Mikrut 40.00 X 149758 0 6664 2113541 0 276149 31 0 1 0 Foster McGaw HospitalLoyola Univ Med 2160 S First Avenue Maywood IL 60153 Contracted Dialysis, Chaplain and Lab 1636071 McDermott Will and Emery 227 West Monroe Street Chicago IL 60606 Legal Services 754094 Careerstaff Unlimited Inc PO Box 200528 Houston TX 772160528 Clinical Agency Personnel 193476 Loyola University Physicians Fndn 2 Westbrook Corporate Ctr Westchester IL 60154 Medical Administration 154850 PELVIP 9840 Southwest Highway Oak Lawn IL 60453 Clinical Agency Personnel 153711 7 134253 20000 1971474 2125727 Medicare/Medicaid 900099 33330641 33330641 Non-Medicare/Medicaid 900099 15536276 15536276 48866917 274776 274776 8079337 8062786 500 16551 -500 16051 16051 34545 134253 37088 -2543 -2543 Cafeteria Revenue 624200 52571 52571 Medical Record Copying 812900 15732 15732 Other Miscellaneous 900099 13043 13043 1104 1104 82450 51363378 48866917 1104 369630 31270 31270 1944115 421002 1523113 21015504 19138978 1795435 81091 920054 529715 387274 3065 2685165 2320278 355017 9870 1621918 1443402 172456 6060 718610 31582 687028 118882 118882 46070 46070 20333 20333 2020992 1712883 304091 4018 83190 29036 13325 40829 87703 38347 42035 7321 961788 687943 272384 1461 81086 11186 68741 1159 131114 131114 1975018 1256649 718369 704466 680592 23874 Supplies 5211328 5064878 145333 1117 IL Hospital Provider As 2192970 2192970 Purchased Personnel 1603327 1603235 92 Bad Debt Expense 1091016 1091016 Maintenance 622077 435723 186354 1138441 786820 346843 4778 47026437 39507505 7358163 160769 3201026 2092986 6407361 8788876 355095 377792 977009 1033676 28594065 15807640 12427408 12786425 7671614 7577269 700160 714478 31739673 33371502 5916410 6521641 3133333 3308112 2182049 2055458 1695443 1767071 12927235 13652282 X 0 0 0 0 18812438 19719220 18812438 19719220 31739673 33371502 X 0 1 1 X 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 1 33042 0 1 13028 46070 0 Part II-B, Line 1i: Explanation of Other Lobbying Activities: RML is a dues paying member of certain hospital associations. A small percentage of these dues payments are allocated to lobbying activities by these associations. 15335266 7844443 7490823 9954122 6024300 3929822 3304677 1938897 1365780 12786425 U.S. Government Agencies 712873 F Asset Backed Securities 6253463 F Bond Mutual Funds 404818 F Certificates of Deposit 50076 F Money Market Funds 5975 F Municipal Securities 150064 F 7577269 Reserve for Professional Liability 579250 Funded Deferred Compensation Liability 566308 Projected Benefit Obligation 621513 1767071 51363378 47026437 4336941 -6155 -416828 -3007176 -3430159 906782 52419315 -6155 1062092 1055937 51363378 0 51363378 48088529 1062092 1062092 47026437 0 47026437 Part X: Description of Uncertain Tax Positions Under FIN 48: Audited financial statements did not include a FIN 48 footnote as no material uncertain tax positions exist. RML adopted the provisions of FIN 48 on June 1,2007. Part XI, Line 8 - Other Adjustments: Partner Distributions: -3039473. Pension-related changes other than net periodic pension cost: 32297. Part XII, Line 2d - Other Adjustments: Special event expenses: 37088. Loss on sale/disposal of assets: 500. Vendor reimbursed expenses included in revenue: 1024504. Part XIII, Line 2d - Other Adjustments: Special event expenses: 37088. Loss on sale/disposal of assets: 500. Vendor reimbursed expenses included in revenue: 1024504. Schedule D, Part XI, Line 7: Subsequent to the issuance of RML's 2009 audited financial statements, RML determined that it had incorrectly accounted for its facility lease resulting in an error in deferred rent payable and related rent expense. As a result, 2009's ending balance in deferred rent payable was increased by $416,828, with 2009's ending fund balance decreasing by the same amount. Golf Outing 136128 114128 22000 4320 18400 2842 154 St. Patricks Day Dinner 32670 20125 12545 9550 1200 622 168798 134253 34545 4320 27950 2842 1200 776 37088 -2543 1 1 1 X 1 X 1 1 0 1 1 4096566 2521189 1575377 0.03350 4096566 2521189 1575377 0.03350 166980 166980 0.00360 210522 210522 0.00450 158101 158101 0.00340 535603 535603 0.01150 4632169 2521189 2110980 0.04500 2655 2655 0.00010 2655 2655 0.00010 1 371781 0 30809452 28760565 2048887 X 1 1 RML Specialty Hospital

5601 South County Line Road Hinsdale IL 605214875

X X X Long Term Acute Care Facility Part I, Line 7: Program costs are derived using the cost-to-charge ratios obtained from RML's FY 2010's filed Medicare cost report and applying them to the charges related to Medicaid patients. Part I, Line 7f: Bad debt expense for 2010 that was reported on Form 990, Part IX, line 25 was $1,091,016. This amount has been removed for purposes of calculating the percentage in Schedule H, Part I, Line 7, Column (f). Part III, Line 4: RML's audited financial statements do not include a footnote related to bad debt expense, the allowance for doubtful accounts or accounts receivable. The cost of RML's bad debt expense was calculated by taking the non-reimbursable write-offs, at charges, and multiplying them by the calculated cost to charge ratio. None of these bad debts are attributable to patients eligible for charity care. Part III, Line 8: The amount on line 6 represents the total Medicare allowable inpatient cost, as reflected on Worksheet D-1, Line 49, of the filed 2010 Medicare cost report, plus the reimbursed Medicare bad debt shown on Worksheet E-3, Line 11.01. Part III, Line 9b: RML will not pursue legal action for non-payment of a hospital bill against uninsured patients who have clearly demonstrated that they have neither sufficient income or assets to meet their financial obligations provided that the patient: 1) Acts reasonably and cooperates in good faith with RML. 2) Provides RML with all reasonably requested financial and other documentation needed to determine patient eligibility for financial assistance and reasonable payment plan options. 3) Provides information within 30 days of the hospital's request. 4) Communicates to the hospital any material changes in financial situation that may affect the patient's ability to comply with payment plans or qualify for hospital financial assistance within 30 days of such change. Part VI, Line 2: As a not-for-profit long-term acute care hospital, we are dedicated to providing exceptional, high quality health care services and programs to our patients and community. In keeping with our commitment to charitable purposes and delivering quality health care, RML provides health resources to patients, their families, and our community. Specifically, RML oversees and participates in fundraising efforts, the education of local health professionals, clinical research and community building activities. At RML, we believe our outreach efforts and improvements in our community's health and wellness will be most successful with the involvement from our community. This is why we collaborate with our partner organizations, the local geographic community and other charitable organizations to assess and identify how we can best support the health care needs of our community and patients.Across the country and in the state of Illinois, health professions and hospitals are facing startling shortages of qualified health professionals. To address this need, RML is committed to providing opportunities for students and health professionals to gain hands-on clinical experience. Each year, we proudly welcome students and health professionals in the fields of nursing, respiratory therapy, pharmacology and other disciplines to collaborate with our staff and advance their skills through practice and mentorship. RML conducts and participates in clinical research because we believe the knowledge we gain through research will have a positive, direct impact on the care we provide to our patients. In 2010, there were a total of nine active studies underway at RML, each focused on improving clinical outcomes and patient satisfaction. RML subsidizes the clinical research studies costs that are not covered by federal or private grants, by providing financial and administrative support to researchers. RML has chosen to partner with other charitable organizations that have a similar focus or mission in alignment with ours. For instance, RML has partnered with the American Lung Association in their efforts to educate the public on lung health and lung disease. In 2010, RML employees raised funds for the American Lung Association and participated in the American Lung Association's Lung Walk. RML employees are actively involved in the community and volunteer countless hours of their time in programs and events as mentors, tutors, role models, advocates and clinical experts. Some of these events and programs include environmental improvement programs, local school boards and back-to-school fairs, and local not-for-profit committees. RML recognizes that part of being a health resource to our patients and their families includes providing emotional support. We provide patients and families with weekly support groups, organized and led by our clinical psychologists. Sensitive to each patient's individual beliefs and traditions, RML provides chaplain services to provide emotional and spiritual support to patients and their families. Maintaining a good relationship with our referring hospitals is imperative to providing the best care possible for our patients. At RML, we believe it is important to identify the health needs of our referring community and their patients in order to effectively define our "community" at need. It is for this reason that we collaborate with our referring hospitals in the care of their patients with long-term acute care needs and work to improve the referral to admission process. On a quarterly basis, we contact our top referral sources regarding their Long Term Care Hospital ("LTCH")-appropriate patients, our involvement in the community and any hospital-specific information that would improve the continuity and coordination of patient care. In addition, we are actively working with the State, other LTCHs and national health associations to develop and define quality measures and standards for LTCHs. We believe the use of consistent LTCH-specific quality measures, benchmarks and targets will improve health outcomes for the most critically ill and injured patients. Part VI, Line 3: The availability of hospital financial assistance as defined under RML's policy is communicated to patients through the posting of signs in areas of the hospital commonly utilized for admission and registration of patients with the following notice: "You may be eligible for financial assistance under the terms and conditions the hospital offers to qualified patients . For more information, please contact either the Director of Patient Financial Services or the Admitting Manager." The same information is also included on billing statements and on RML's website, with the website also containing a link to the financial assistance application. Part VI, Line 4: At RML, we serve a unique community composed of nearly 100 referral sources throughout the nation and northeastern Illinois, our partner organizations, the surrounding communities, and the communities in which our employees reside. RML plays a unique and integral role in the continuum of care; RML provides treatment to those patients with catastrophic or acute illnesses, injuries complicated by complex or multiple co-morbidities, and those patients that require aggressive, specialized interdisciplinary care. Our patient population is largely geriatric with high acuity and requires prolonged lengths of stay in an acute setting. RML utilizes a modified closed medical staff model to provide consistent, high quality care to our patients. We utilize a physician-led, interdisciplinary team to care for our patients and have the flexibility to adjust staffing based on a patient's medical needs. It is for these reasons that RML has the lowest adverse outcomes rate (defined as expirations and transfers to acute care hospitals) of any LTCH in the area. In the first quarter of 2010, RML had 204 discharges and a case mix adjusted adverse outcomes rate of 16.9%. Part VI, Line 5: RML's community building activities support the community as RML encourages and promotes community activity by allowing employees to donate RML paid time to assisting others. Part VI, Line 6: RML is committed to the advancement of medical care, patient satisfaction and the achievement of superior clinical outcomes. We believe it is imperative to conduct clinical research to improve patient care, clinical outcomes and realize our vision of becoming a national center for excellence in long term acute care. RML oversees and participates in numerous clinical research studies focused on the treatment and care of ventilated patients, patients with infectious diseases and medically complex conditions. In 2010, there were a total of nine active studies underway at RML. The Institutional Review Board provides critical oversight over all research activities to ensure that the research conducted at RML is ethical, performed with the highest level of integrity, and respects the individual rights and dignity of its subjects. One of the studies underway in 2010 was supported by a research grant from the National Institute of Health (NIH). RML was the only long-term acute care hospital in the country to be included in a grant from NIH. The study, led by Loyola University Professor of Medicine and Principal Investigator, Dr. Amal Jubran, has enrolled more than 455 subjects since 2005 and has made valuable contributions to the advancement of care for patients requiring long-term mechanical ventilation. RML has also partnered with the Research Triangle Institute (RTI) in a CMS-led effort to develop a post-acute care assessment tool to standardize data and data collection in order to better predict outcomes and assure appropriate levels of care. RML was actively involved in the development of this "CARE Tool" and successfully enrolled more than 500 subjects in the study and has embedded the Tool into RML's electronic medical record. As part of the study, RML completed more than 1,100 assessments, 3 cost and resource utilization studies, and 2 validation studies. Another study underway in 2010 specifically focused on improving patient safety and reducing the number of health care associated infections. By assessing the impact of daily bathing with chlorhexidine cloths, RML is working to identify best practices and enhance patient and staff safety in a long term acute care setting. As is evidenced by our research mission and studies, RML is continuously working to identify more efficient uses of resources, provide greater continuity and coordination of care, and improve health outcomes for the most critically ill and injured patients. Part VI, Line 7: RML is a partnership between Rush University Medical Center ("Rush") and Loyola University Health System ("Loyola"). As academic medical centers, Rush and Loyola have charitable missions to serve the public, regardless of an individual's ability to pay. To further these missions, RML distributes substantial funds to these organizations, which are then used to fund hospital operations to treat patients. IL 0 The Stritch School of Medicine of Loyola University of Chicago 820 N Michigan Ave Chicago IL 606112147 361408475 501(c)(3) 6000 General support The Metro Foundation 500 E Ogden Ave Ste E Hinsdale IL 605212480 300153829 501(c)(3) 5800 General support Rush Copley Foundation 2000 Ogden Ave Aurora IL 605044206 363093877 501(c)(3) 5000 General support 3 0 X 0 0 X X X X 0 1 0 0 0 0 0 1 1 1 James Prister 291185 0 27647 0 38554 0 30300 0 23027 0 410713 0 0 0 Thomas Pater 195091 0 7712 0 7539 0 25986 0 22627 0 258955 0 0 0 John D Brofman MD 133424 0 91328 0 1685 0 9198 0 19960 0 255595 0 0 0 Maura Hopkins 152795 0 6325 0 18794 0 26488 0 6466 0 210868 0 0 0 Kenneth Pawola 156383 0 6283 0 6015 0 1481 0 22366 0 192528 0 0 0 John Landstrom 139325 0 5212 0 6328 0 5959 0 770 0 157594 0 0 0 Richard Petrak MD 109656 0 96775 0 1122 0 8581 0 23027 0 239161 0 0 0 Mark L Goode MD 123551 0 52913 0 250 0 0 0 13148 0 189862 0 0 0 Uchenna Olekanma MD 153649 0 212 0 540 0 6328 0 17092 0 177821 0 0 0 Kathleen Mikrut 146645 0 2137 0 976 0 5955 0 709 0 156422 0 0 0 Part I, Line 1b Each year the Board approves making an employer contribution into the 457b Plan for specified executives. These amounts are FICA taxable and the practice has been to gross up the amount of the Executive's FICA liability. Additionally, per the CEO's employment contract he is to receive 8% of the compensation as deferred compensation. The only deferred comp vehicle available is the 457b Plan. Eight percent of compensation exceeds the statutory contribution limit into the 457b Plan. Therefore, the Board annually takes action to provide the excess as cash to the CEO, grossed up to simulate receiving it as deferred compensation. Part I, Line 4a The RML Health Providers Limited Partnership Supplemental Executive Retirement Plan is a nonqualified deferred compensation plan that is subject to the provisions of Section 409A and 457(f) of the Internal Revenue Code of 1986, as amended. The plan is designed to provide benefits which, when combined with other retirement benefits, are reasonable and competitive for covered Executives. Eligibility for participation in the Plan is limited to a select group of management or highly compensated employees as determined by the Governing Body. Current participants, as designated by the Governing Body, are: James Prister, President/CEO; Thomas Pater, Vice President Finance/CFO; and Maura Hopkins, Vice President Patient Care Services/CNO. The current year's participants are as follows: James Prister $20,500, Thomas Pater $17,541, and Maura Hopkins $19,568. Part I, Line 7 The Executive Incentive Plan provides variable compensation based on the achievement of organization-wide goals. These goals represent key indicators of success in the areas of finance, clinical quality, patient satisfaction and employee safety. They are approved by the Board for each fiscal year. Part I, Line 8 The CEO's original employment contract states that he is to receive 8% of compensation as deferred compensation. This arrangement is based on a fixed formula and subject to the initial contract exception described in Regulations Section 53.4958-4(a)(3). Form 990, Part VI, Section A, line 2 John D. Brofman, MD, Richard Petrak, MD, Kieran J. Nicholson, MD and Mark L. Goode, MD have a business relationship. Form 990, Part VI, Section A, line 6 RML Health Providers, LP, an IRC 501(c)(3) organization, is organized as a partnership under Illinois state law, with two equal partners, both of whom are also IRC 501(c)(3) organizations, Rush University Medical Center and Loyola University Medical Center. Form 990, Part VI, Section A, line 7a Each Partner (Rush University Medical Center and Loyola University Medical Center) elects and designates two of the four members of the governing body. Form 990, Part VI, Section A, line 7b Each Partner (Rush University Medical Center and Loyola University Medical Center) retains the right to approve or ratify decisions of the Board of Directors of RML Health Providers, LP. Form 990, Part VI, Section B, line 11 Upon completion of RML Health Provider, LP's Form 990, it was reviewed by management responsible for filing the return, a group including but not limited to the RML's President/CEO and the VP Finance/CFO. It was then presented by the President/CEO and VP Finance/CFO to RML's Board of Directors for their reveiw at a regularly scheduled board meeting. After the board review, the return was filed. Form 990, Part VI, Section B, line 12c RML Health Providers, LP, requires all persons of leadership to annually sign a statement identifying any potential conflicts of interest. This statement that such a person has received a copy of the conflict of interest policy, has read and understands the policy, and has agreed to comply with the policy. This policy applies to all senior management. Corrective or disciplinary actions for non-compliance with this policy is at the discretion of the Board of Directors. Form 990, Part VI, Section B, line 15 RML follows the requirements set forth in the IRS rebuttable presumption of reasonableness in determining compensation for the CEO and other officers and executive leaders of the corporation. This function is performed by the governing board. The process includes review of comparability data, retention of an outside compensation consultant, and contemporaneous substantiation of the deliberation and decision through detailed minutes of the compensation committee and full board meetings where executive compensation is considered. The following positions are included in a bi annual compensation study conducted by an independent consultant engaged by the Board of Directors: President/CEO; Chief Financial Officer/VP Finance; Vice President Patient Care Services/CNO; Vice President Planning & Operations; Vice President Human Resources; Vice President Risk Management; Vice President Business Development; Chief Information Officer; and Medical Director. The last study was completed in May of 2009. Form 990, Part VI, Section C, line 19 RML Health Provider's Form 990 and audited financial statements are available through the website of the Illinois Attorney General. In addition, a public disclosure copy of Form 990 and Form 990-T is maintained on location and is available upon request. Conflicts of Interest and RML's governing documents are not made available to the public. Form 990, Part XI, Line 2c: The board of directors of RMLHP Corporation, the sole general partner of RML, has direct responsibility for oversight of the audit including the selection of independent accountants who perform such audits. RMLHP Corporation 5601 South County Line Road Hinsdale IL 605214875 364160869 Manager and General Partner of RML Health Providers LP IL 501(c)(3) 11b N/A 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0