2025-05-09T13:45:25-05:00 2024-06-30 135565207 KPMG LLP 8350 BROAD STREET SUITE 900 MCLEAN VA 22102 990 2023-07-01 521542230 HH MEDSTAR HEALTH INC HHME 4107726721 10980 GRANTCHESTER WAY COLUMBIA MD 21044 JOEL BRYAN VP/TREASURER/CIO 4107726721 2025-05-09 1 0 RAYMOND LY P01205643 7032868000 2023 2025-03-06 01:10:19Z KENNETH SAMET 10980 GRANTCHESTER WAY COLUMBIA MD 21044 2143687574 0 X N/A X 1987 MD PLAN, DEVELOP, COORDINATE, DIRECT AND MANAGE AN INTEGRATED HEALTHCARE SYSTEM. 4 0 7844 0 0 0 1982015 2142516 1513815160 1692430640 874923 1279534 375741654 447729350 1892413752 2143582040 0 0 0 0 1294360226 1509779852 0 0 0 641883699 705683534 1936243925 2215463386 -43830173 -71881346 444322279 473458599 384041190 436333370 60281089 37125229 X SEE SCHEDULE O 0 0 1573258664 1372355925 HH MEDSTAR HEALTH, INC.'S LARGEST PROGRAM SERVICE IS TO PROVIDE MANAGEMENT AND SUPPORT TO MEDSTAR HEALTH, INC. AND ITS AFFILIATED ENTITIES. IN ADDITION TO THE PROGRAM SERVICE EXPENSES LISTED ABOVE, HH MEDSTAR HEALTH INCURRED $401.7M OF MANAGEMENT AND GENERAL EXPENSES IN PROVIDING MANAGEMENT AND SUPPORT TO ITS AFFILIATED ENTITIES. THE PROGRAM SERVICE EXPENSES INCURRED BY THE ORGANIZATION RELATE TO CORPORATE SERVICE FUNCTIONS INCLUDING FINANCIAL SERVICES AND INFORMATION SYSTEMS. 240511730 320074715 HH MEDSTAR HEALTH, INC. PROVIDES PHYSICIAN SERVICES THROUGH ITS PHYSICIAN PRACTICES TO MEDSTAR HEALTH, INC. AND ITS AFFILIATED ENTITIES. THESE PHYSICIAN PRACTICES SERVE AS PHYSICIAN PRACTICES TO EACH OF THE HOSPITALS (WHICH ARE INCLUDED IN HH MEDSTAR HEALTH INC.'S SUPPORTED ORGANIZATIONS) IN THE MEDSTAR HEALTH INTEGRATED HEALTH CARE SYSTEM. 1813770394 1 1 0 0 0 0 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 1 94 0 7844 1 0 0 0 0 0 0 0 0 0 0 1 0 X 4 0 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 1 1 X JOEL BRYAN 4107726721 10980 GRANTCHESTER WAY COLUMBIA MD 21044 KENNETH A SAMET PRESIDENT/DIRECTOR 1.00 39.00 X X 0 7083748 106087 SUSAN NELSON DIRECTOR/VP/TREASURER 1.00 39.00 X X 0 2207257 45509 OLIVER M JOHNSON DIRECTOR/VP/SECRETARY 1.00 39.00 X X 0 2040968 43213 STEPHEN RT EVANS MD DIRECTOR/VICE PRESIDENT 1.00 39.00 X X 0 2826175 63500 EDWARD WOO MD MMG PRESIDENT 40.00 0.00 X 2416184 0 46993 EDWARD AULISI PHYSICIAN 40.00 0.00 X 3303590 0 32889 EVAN ARGINTAR PHYSICIAN 40.00 0.00 X 2258900 0 19708 THOMAS MACGILLIVRAY PHYSICIAN 40.00 0.00 X 2206281 0 18858 OLIVER TANNOUS PHYSICIAN 40.00 0.00 X 1885534 0 18373 ATUL SHAH PHYSICIAN 40.00 0.00 X 1870281 0 27455 ERIC R WAGNER FORMER VICE PRESIDENT/DIRECTOR 1.00 39.00 X 0 2029086 26463 MICHAEL J CURRAN FORMER TREASURER 1.00 39.00 X 0 621601 10769 RICHARD GOLDBERG FORMER MMG PRESIDENT 40.00 0.00 X 443502 0 20593 14384272 16808835 480410 3850 1 1 0 CERNER CORPORATION PO BOX 959156 ST LOUIS MO 631959156 IT SERVICES 34078004 KYNDRYL INC 1 VANDERBILT AVE 15TH FLOOR NEW YORK NY 10017 IT SERVICES 30160148 1LIFE HEALTHCARE INC PO BOX 103109 PASADENA CA 911893109 MEDICAL SERVICES 25323526 ONE MEDICAL GROUP PC ONE EMBARCADERO CENTER SAN FRANCISCO CA 94111 MEDICAL SERVICES 25136698 NTT DATA SERVICES LLC PO BOX 677956 DALLAS TX 752677956 IT SERVICES 17429795 154 17945 700798 1423773 2142516 NET PATIENT SERVICE RE 621400 1341295686 1341295686 MANAGEMENT FEES 900099 320074715 320074715 PROVIDER INCENTIVE FEE 900099 19856592 19856592 OTHER PHYSICIAN REV. 621400 11203647 11203647 1692430640 1385068 1385068 72601 0 72601 72601 72601 105534 -105534 -105534 -105534 SUBSIDY REVENUE - INTE 900099 430792483 430792483 REBATE INCOME 900099 1646723 1646723 NON-PHYSICIAN INTERCO 900099 558371 558371 14659172 14659172 447656749 2143582040 1692430640 0 449008884 2460588 2105224 355364 470704 405728 64976 1334541882 1137936068 196605814 21429849 4338555 17091294 81014026 82090082 -1076056 69862803 56786940 13075863 31804871 1981070 29823801 1808688 194595 1614093 146346458 117164794 29181664 3727621 1278525 2449096 26870775 22528115 4342660 2222665 2222665 28905936 28819553 86383 3487101 3036101 451000 1141064 1053395 87669 210288 198358 11930 14944632 11491691 3452941 35999761 34171267 1828494 MED/SURG SUPPLIES 286388345 286328367 59978 MAINTENANCE 92858358 4648682 88209676 UTILITIES 13036732 5626054 7410678 FOOD SERVICES/SUPPLIES 509254 390977 118277 15420985 11196253 4224732 2215463386 1813770394 401692992 0 38879686 61186089 130947822 152849977 18138 18138 5541105 6579622 26678546 35760817 181526243 64709966 128737339 116816277 2466328 2466328 1595676 1595676 109457639 96185675 444322279 473458599 236859532 296014440 10888207 10455490 136293451 129863440 384041190 436333370 X 60281089 37125229 60281089 37125229 444322279 473458599 X -71881346 48725486 X 0 1 X 1 1 1 X X 19 BAY LIFE SERVICES 521496539 10 1 0 0 FRANKLIN SQUARE HOSPITAL CENTER INC 520608007 3 1 0 0 GOOD SAMARITAN NURSING CENTER INCORPORATED 521672866 10 1 0 0 GS HOUSING INCORPORATED 521481656 10 1 0 0 HARBOR HOSPITAL INC 520491660 3 1 0 0 THE MEDSTAR-GEORGETOWN MEDICAL CENTER INC 522218584 3 1 0 0 MEDSTAR HEALTH RESEARCH INSTITUTE INC 526056274 4 1 0 0 MEDSTAR HEALTH VISITING NURSES ASSOCIATION INC 530196597 10 1 0 0 MEDSTAR SOUTHERN MARYLAND HOSPITAL CENTER INC 460726303 3 1 0 0 MEDSTAR VNA HEALTHCARE INC 521458516 10 1 0 0 NATIONAL REHABILITATION HOSPITAL INC 521369749 3 1 0 0 MONTGOMERY GENERAL HOSPITAL INC 520646893 3 1 0 0 NRH REGIONAL REHAB AT OLNEY INC 522310902 3 1 0 0 ST MARY'S HOSPITAL OF ST MARY'S COUNTY INC 520619006 3 1 0 0 SUBURBANNRH MEDICAL REHABILITATION INC 521931151 3 1 0 0 THE UNION MEMORIAL HOSPITAL 520591685 3 1 0 0 THE GOOD SAMARITAN HOSPITAL OF MARYLAND INC 520591607 3 1 0 0 WASHINGTON HOSPITAL CENTER CORPORATION 521272129 3 1 0 0 WOODBOURNE WOODS INC 522299070 10 1 0 0 19 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 X 1 1 SCHEDULE A, PART I, LINE 12G OTHER SUPPORT THE EXPENSES INCURRED BY HH MEDSTAR HEALTH, INC. THAT ARE REPORTED ON FORM 990, PART IX WERE EXPENDED TO PROVIDE SUPPORT AND MANAGEMENT SERVICES TO ITS SUPPORTED ORGANIZATIONS. SCHEDULE A, PART IV, SECTION D, LINE 3 THE OFFICERS/DIRECTORS OF THE SUPPORTED ORGANIZATIONS HAVE A CLOSE AND CONTINUOUS RELATIONSHIP WITH HH MEDSTAR HEALTH, INC., AND THUS A SIGNIFICANT VOICE. KEN SAMET, THE PRESIDENT OF HH MEDSTAR HEALTH, INC., SERVES ON THE BOARD OF DIRECTORS OF MANY OF HH MEDSTAR HEALTH INC.'S SUPPORTED ORGANIZATIONS. BECAUSE OF THIS, THE SUPPORTED ORGANIZATIONS ARE ABLE TO HAVE A SIGNIFICANT VOICE IN THE INVESTMENT POLICIES OF HH MEDSTAR HEALTH AND IN DIRECTING THE USE OF ITS INCOME AND ASSETS. SCHEDULE A, PART IV, SECTION E, LINE 2A SUBSTANTIALLY ALL OF THE ACTIVITIES OF HH MEDSTAR HEALTH, INC. DIRECTLY FURTHER THE EXEMPT PURPOSES OF THE SUPPORTED ORGANIZATIONS LISTED. HH MEDSTAR HEALTH, INC. PROVIDES ADMINISTRATIVE AND MANAGEMENT SERVICES TO ITS SUPPORTED ORGANIZATIONS TO PROMOTE AN INTEGRATED HEALTH CARE SYSTEM. HH MEDSTAR HEALTH, INC. ALSO DIRECTLY FURTHERS THE EXEMPT PURPOSES OF ITS SUPPORTED ORGANIZATIONS BY PROVIDING PHYSICIAN SERVICES THROUGH ITS PHYSICIAN PRACTICES. HH MEDSTAR HEALTH, INC. IS RESPONSIVE TO ITS SUPPORTED ORGANIZATIONS WHEN PROVIDING THESE SERVICES. SUBSTANTIALLY ALL OF THE STAFFING AND FINANCIAL RESOURCES OF HH MEDSTAR HEALTH, INC. WERE DEDICATED TO ACTIVITIES THAT DIRECTLY FURTHER THE EXEMPT PURPOSES OF ITS SUPPORTED ORGANIZATIONS. SCHEDULE A, PART IV, SECTION E, LINE 2B HH MEDSTAR HEALTH, INC. PROVIDED ADMINISTRATIVE AND MANAGEMENT SUPPORT SERVICES TO ITS SUPPORTED ORGANIZATIONS INCLUDING FINANCIAL SERVICES AND INFORMATION SYSTEMS SERVICES. IF NOT FOR THE EXISTENCE OF HH MEDSTAR HEALTH, INC., THESE SUPPORTED ORGANIZATIONS WOULD PERFORM THESE SERVICES THEMSELVES. HOWEVER, IT IS MORE EFFICIENT TO PERFORM ALL OF THESE SERVICES AT THE SAME ORGANIZATION RATHER THAN AT 19 SEPARATE ORGANIZATIONS (THE SUPPORTED ORGANIZATIONS). HH MEDSTAR HEALTH, INC. PROVIDES PHYSICIAN SERVICES THROUGH BEING THE SOLE MEMBER OF A NUMBER OF SINGLE-MEMBER LLC PHYSICIAN PRACTICES. THESE PHYSICIAN PRACTICES SERVE AS PHYSICIAN PRACTICES TO EACH OF THE HOSPITALS (WHICH ARE INCLUDED IN HH MEDSTAR HEALTH INC.'S SUPPORTED ORGANIZATIONS) IN THE MEDSTAR HEALTH INTEGRATED HEALTH CARE SYSTEM. IF NOT FOR THE EXISTENCE OF HH MEDSTAR HEALTH, INC., ITS SUPPORTED ORGANIZATIONS COULD OWN THESE PHYSICIAN PRACTICES THEMSELVES. HOWEVER, IT IS MORE EFFICIENT TO PERFORM THESE PHYSICIAN SERVICES UNDERNEATH A SINGLE ORGANIZATION'S OWNERSHIP (HH MEDSTAR HEALTH, INC.) RATHER THAN AT MULTIPLE SEPARATE ORGANIZATIONS (THE SUPPORTED ORGANIZATIONS). RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 3973926 3973926 3799175 864063 2935112 24415441 9086884 15328557 61501269 34966193 26535076 87836432 19792826 68043606 116816277 OPERATING LEASE ROU ASSET 52687209 INTERCOMPANY RECEIVABLES 43366750 OTHER ASSETS 131716 96185675 OPERATING LEASE LIABILITY 71312185 INTERCOMPANY PAYABLES 64173388 CREDIT PATIENT BALANCES A/R 16349536 CAPITAL LEASE LIABILITY 1918052 WORKERS COMP LIABILITY 1367085 OTHER LIABILITIES 629652 PENSION LIABILITY -25886458 129863440 X PART X, LINE 2: FIN 48 FOOTNOTE INCOME TAXES ARE ACCOUNTED FOR UNDER THE ASSET AND LIABILITY METHOD. DEFERRED TAX ASSETS AND LIABILITIES ARE RECOGNIZED FOR THE FUTURE TAX CONSEQUENCES ATTRIBUTABLE TO DIFFERENCES BETWEEN THE FINANCIAL STATEMENT CARRYING AMOUNTS OF EXISTING ASSETS AND LIABILITIES AND THEIR RESPECTIVE TAX BASES AND OPERATING LOSS AND TAX CREDIT CARRYFORWARDS. DEFERRED TAX ASSETS AND LIABILITIES ARE MEASURED USING ENACTED TAX RATES EXPECTED TO APPLY TO TAXABLE INCOME IN THE YEARS IN WHICH THOSE TEMPORARY DIFFERENCES ARE EXPECTED TO BE RECOVERED OR SETTLED. THE EFFECT ON DEFERRED TAX ASSETS AND LIABILITIES OF A CHANGE IN TAX RATES IS RECOGNIZED IN THE PERIOD THAT INCLUDES THE ENACTMENT DATE. ANY CHANGES TO THE VALUATION ALLOWANCE ON THE DEFERRED TAX ASSET ARE REFLECTED IN THE YEAR OF CHANGE. THE CORPORATION ACCOUNTS FOR UNCERTAIN TAX POSITIONS IN ACCORDANCE WITH THE FASB ACCOUNTING STANDARDS CODIFICATION (ASC) TOPIC 740, INCOME TAXES. THERE WAS NO LIABILITY RECORDED FOR UNCERTAIN TAX POSITIONS AS OF JUNE 30, 2024. X X X X X X 1 0 0 0 0 0 0 0 0 KENNETH A SAMET PRESIDENT/DIRECTOR 0 2308151 0 3403165 0 1372432 0 68539 0 37548 0 7189835 0 0 EDWARD AULISI PHYSICIAN 3248992 0 54598 0 0 0 9150 0 23739 0 3336479 0 0 0 STEPHEN RT EVANS MD DIRECTOR/VICE PRESIDENT 0 1332096 0 1494079 0 0 0 21798 0 41702 0 2889675 0 0 EDWARD WOO MD MMG PRESIDENT 1394184 0 1022000 0 0 0 9150 0 37843 0 2463177 0 0 0 EVAN ARGINTAR PHYSICIAN 724043 0 1534857 0 0 0 9150 0 10558 0 2278608 0 0 0 SUSAN NELSON DIRECTOR/VP/TREASURER 0 1033926 0 1173331 0 0 0 9150 0 36359 0 2252766 0 0 THOMAS MACGILLIVRAY PHYSICIAN 1806281 0 400000 0 0 0 0 0 18858 0 2225139 0 0 0 OLIVER M JOHNSON DIRECTOR/VP/SECRETARY 0 950707 0 1090261 0 0 0 9150 0 34063 0 2084181 0 0 ERIC R WAGNER FORMER VICE PRESIDENT/DIRECTOR 0 514910 0 958232 0 555944 0 9150 0 17313 0 2055549 0 0 OLIVER TANNOUS PHYSICIAN 726101 0 1159433 0 0 0 9150 0 9223 0 1903907 0 0 0 ATUL SHAH PHYSICIAN 449414 0 1420867 0 0 0 9150 0 18305 0 1897736 0 0 0 MICHAEL J CURRAN FORMER TREASURER 0 393240 0 228361 0 0 0 0 0 10769 0 632370 0 0 RICHARD GOLDBERG FORMER MMG PRESIDENT 384800 0 58702 0 0 0 20593 0 0 0 464095 0 0 0 SCHEDULE J, PART III MR. SAMET'S OTHER REPORTABLE COMPENSATION IN PART II, COLUMN (B)(III) INCLUDES A PAYMENT OF $1,372,432, WHICH REPRESENTS THE CASH VALUE OF THE SPLIT DOLLAR LIFE INSURANCE POLICY ASSIGNED TO MR. SAMET. ERIC WAGNER'S OTHER REPORTABLE COMPENSATION IN PART II, COLUMN (B)(III) INCLUDES $429,576 REPRESENTING SEVERANCE PAYMENTS RECEIVED BY MR. WAGNER. FORM 990, PART III, LINE 1 THE MISSION OF MEDSTAR HEALTH, INC. (MEDSTAR HEALTH), A MARYLAND CORPORATION, IS TO SERVE OUR PATIENTS, THOSE WHO CARE FOR THEM AND OUR COMMUNITIES. MEDSTAR HEALTH IS THE CONTROLLING ENTITY OF AN INTEGRATED HEALTH SERVICES ORGANIZATION (THE SYSTEM) OFFERING A WIDE VARIETY OF HEALTHCARE SERVICES TO RESIDENTS OF MARYLAND AND THE WASHINGTON, D.C., REGION (COMPRISING BALTIMORE CITY, ELEVEN COUNTIES IN MARYLAND, THE DISTRICT OF COLUMBIA, AND NORTHERN VIRGINIA). MEDSTAR HEALTH IS THE REGION'S LARGEST HEALTH SYSTEM AND ONE OF THE LARGEST EMPLOYERS IN MARYLAND AND WASHINGTON, D.C., WITH APPROXIMATELY 35,000 ASSOCIATES AND 4,000 AFFILIATED PHYSICIANS. THE SYSTEM OPERATES THE LARGEST HOME HEALTH BUSINESS IN THE REGION WITH APPROXIMATELY 315,400 VISITS IN FISCAL YEAR 2024. MEDSTAR FAMILY CHOICE, A MEDICAID MANAGED CARE COMPANY, HAD APPROXIMATELY 157,000 COVERED LIVES AS OF JUNE 30, 2024. IN FISCAL YEAR 2024, MEDSTAR HEALTH HOSPITALS HAD APPROXIMATELY 118,900 INPATIENT ADMISSIONS AND OBSERVATION CASES AND APPROXIMATELY 6.1 MILLION OUTPATIENT VISITS, INCLUDING APPROXIMATELY 428,300 EMERGENCY VISITS. FORM 990, PART VI, SECTION A, LINE 6 ORGANIZATION MEMBERS THE ORGANIZATION IS AN AFFILIATE AND SUBSIDIARY OF MEDSTAR HEALTH, INC. MEDSTAR HEALTH, INC., OR ONE OF ITS AFFILIATES AND SUBSIDIARIES, IS THE SOLE MEMBER OF THE ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 7A DESCRIPTION OF MEMBERS AS AN AFFILIATE AND SUBSIDIARY OF MEDSTAR HEALTH, INC., THE ORGANIZATION MAY RECOMMEND PERSON(S) FOR MEMBERSHIP ON THE ORGANIZATION'S GOVERNING BODY. ANY SUCH RECOMMENDATION BY THE ORGANIZATION IS SUBJECT TO APPROVAL BY THE GOVERNANCE COMMITTEE OF THE BOARD OF DIRECTORS OF MEDSTAR HEALTH, INC. THE BOARD OF MEDSTAR HEALTH, INC. HAS DELEGATED CERTAIN APPROVAL AUTHORITY TO THE GOVERNANCE COMMITTEE AND THE PRESIDENT & CEO OF MEDSTAR HEALTH, INC. FORM 990, PART VI, SECTION A, LINE 7B APPROVAL OF DECISIONS OF THE GOVERNING BODY AS AN AFFILIATE AND SUBSIDIARY OF MEDSTAR HEALTH, INC., THE BYLAWS OF THE ORGANIZATION ARE SUBJECT TO CERTAIN RESERVED POWERS, WHICH PROVIDE THAT THE SOLE MEMBER OF THE ORGANIZATION MUST APPROVE CERTAIN DECISIONS, INCLUDING BUT NOT LIMITED TO MATTERS CONCERNING THE SALE OR PURCHASE OF REAL OR PERSONAL PROPERTY, CAPITAL BUDGETS, STRATEGIC PLANNING, INVESTMENTS, AND CORPORATE GOVERNANCE. FORM 990, PART VI, SECTION B, LINE 11B PROCESS FOR REVIEWING FORM 990 THE PROCESS FOR REVIEWING THE FORM 990 INCLUDED EDUCATION AND TRANSPARENCY. SENIOR FINANCIAL EXECUTIVES, WORKING WITH INDEPENDENT OUTSIDE EXPERTS, THOROUGHLY REVIEWED FORM 990 AND ACCOMPANYING INSTRUCTIONS. IN ADDITION, SENIOR EXECUTIVES REVIEWED THE RELEVANT SECTIONS OF THE FORM 990 WITH THE FOLLOWING COMMITTEES OF THE ORGANIZATION'S GOVERNING BODY: FINANCE, AUDIT, GOVERNANCE, AND EXECUTIVE COMPENSATION. FOLLOWING THESE MEETINGS, THE GOVERNING BODY WAS PROVIDED A COPY OF THE FORM 990 IN ITS FINAL FORM AND GIVEN AN OPPORTUNITY TO PROVIDE ANY INPUT OR COMMENTS RELATING TO THE FORM 990 PRIOR TO ITS FILING. FORM 990, PART VI, SECTION B, LINE 12C CONFLICT OF INTEREST POLICY APPOINTMENT OF BOARDS OF DIRECTORS MEDSTAR HEALTH (AND ITS SUBSIDIARIES) REQUIRE ALL NOMINATED DIRECTORS, PRIOR TO THEIR APPOINTMENT OR ELECTION, TO DISCLOSE THE EXISTENCE OF (OR POTENTIAL EXISTENCE OF) ANY TRANSACTION WITH MEDSTAR THAT WOULD RESULT IN A CONFLICT OF INTEREST. SUCH DISCLOSURES (IF ANY) ARE REVIEWED BY THE GOVERNANCE COMMITTEE OF THE MEDSTAR HEALTH BOARD OF DIRECTORS WHICH DETERMINES HOW THE MATTER SHOULD BE RESOLVED. ANNUAL DISCLOSURES - ALL OFFICERS, DIRECTORS, AND SENIOR MANAGERS ALL OFFICERS, DIRECTORS AND SENIOR MANAGERS ARE REQUIRED, NOT LESS THAN ANNUALLY, TO COMPLETE A SURVEY OF QUESTIONS CONCERNING ANY TRANSACTIONS OR RELATIONSHIPS WHICH WOULD OR COULD REPRESENT A CONFLICT OF INTEREST. SUCH DISCLOSURES (IF ANY) RELATED TO DIRECTORS ARE REVIEWED BY THE GOVERNANCE COMMITTEE OF THE MEDSTAR HEALTH BOARD OF DIRECTORS WHICH DETERMINES HOW THE MATTER SHOULD BE RESOLVED. SUCH DISCLOSURES (IF ANY) RELATED TO OFFICERS AND SENIOR MANAGERS ARE REVIEWED BY AN APPROPRIATE EXECUTIVE WHO DETERMINES HOW THE MATTER SHOULD BE RESOLVED. IN ADDITION, OFFICERS AND DIRECTORS OF MARYLAND HOSPITALS AND NURSING CENTERS ARE REQUIRED TO ANNUALLY DISCLOSE ADDITIONAL INFORMATION RELATING TO POTENTIAL CONFLICTS OF INTEREST AND SUCH DISCLOSURES ARE REPORTED TO THE MARYLAND HEALTH SERVICES COST REVIEW COMMISSION (HSCRC). FORM 990, PART VI, SECTION B, LINE 15 EXECUTIVE COMPENSATION POLICY THE EXECUTIVE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS OF MEDSTAR HEALTH, INC. (THE "COMMITTEE") HAS OVERSIGHT OVER THE EXECUTIVE COMPENSATION PROGRAM (THE "PROGRAM") OF MEDSTAR HEALTH, INC. AND ITS AFFILIATES. TOTAL COMPENSATION FOR THE TOP MANAGEMENT OFFICIALS, OFFICERS AND KEY EMPLOYEES OF MEDSTAR HEALTH, INC. AND ITS AFFILIATES ARE REVIEWED AND APPROVED BY THE COMMITTEE WITH ASSISTANCE AND GUIDANCE FROM AN INDEPENDENT THIRD PARTY ADVISOR. THE MEMBERS OF THE COMMITTEE ARE INDEPENDENT FROM ALL OF THE PARTICIPANTS IN THE PROGRAM.THE MAIN OBJECTIVE OF THE PROGRAM IS TO PROVIDE MARKET COMPETITIVE TOTAL COMPENSATION THAT IS INTERNALLY EQUITABLE AND HAS A STRONG PAY-FOR-PERFORMANCE LINKAGE. PERFORMANCE IS EVALUATED AT THE SYSTEM, OPERATING UNIT, AND INDIVIDUAL LEVELS. THE OVERALL TOTAL COMPENSATION PHILOSOPHY IS MANAGED AT THE 75TH PERCENTILE OF THE COMPETITIVE MARKET FOR COMPARABLE SIZE (NET REVENUE) AND TYPE (TAX-EXEMPT HEALTHCARE ORGANIZATIONS). WHERE APPROPRIATE, ADDITIONAL INDUSTRY DATA IS CONSIDERED (GENERAL BUSINESS AND/OR TAXABLE HEALTHCARE) FOR SELECTED POSITIONS THAT CAN BE RECRUITED FROM OR POTENTIALLY LOST TO THESE INDUSTRIES (E.G., INFORMATION TECHNOLOGY, FINANCE, ETC.). THE COMMITTEE HAS ENGAGED ERNST & YOUNG LLP ("E&Y") TO SERVE AS AN ADVISOR ON THE REASONABLENESS AND COMPETITIVENESS OF THE PROGRAM. IN DETERMINING REASONABLENESS AND COMPETITIVENESS, E&Y REVIEWS MARKET PRACTICES AND TRENDS, AND MAKES RECOMMENDATIONS RELATED TO THE PROGRAM. E&Y UTILIZES INFORMATION FROM CUSTOM SURVEYS, NATIONAL COMPENSATION SURVEYS, PROPRIETARY DATABASES, AND CLIENT EXPERIENCES TO DETERMINE ITS FINAL RECOMMENDATIONS. E&Y PRESENTS THEIR FINDINGS AND RECOMMENDATIONS TO THE COMMITTEE. THE COMMITTEE MAKES THE FINAL DECISIONS ON ALL OF THE COMPENSATION DETERMINATIONS OF THE PROGRAM. ALL DECISIONS MADE BY THE COMMITTEE ARE CONTEMPORANEOUSLY DOCUMENTED. FORM 990, PART VI, SECTION C, LINE 19 FINANCIAL STATEMENT AVAILABILITY MEDSTAR HEALTH POSTS ITS ANNUAL FINANCIAL AUDIT AND QUARTERLY FINANCIAL REPORTS TO THE ELECTRONIC MUNICIPAL MARKET ACCESS (EMMA) SYSTEM. THE ORGANIZATION ALSO E-MAILS ITS ANNUAL AND QUARTERLY DISCLOSURES TO HOLDERS OF THE COMPANY'S PUBLICLY TRADED DEBT. THE COMPANY'S GOVERNANCE DOCUMENTS AND CONFLICTS OF INTEREST POLICIES ARE AVAILABLE UPON REQUEST THROUGH ITS CORPORATE (OR AS APPLICABLE ENTITY) PUBLIC INFORMATION OFFICES. FORM 990, PART XI, LINE 9: EQUITY TRANSFERS 3,025,989. ADDITIONAL MINIMUM PENSION LIABILITY 45,699,497. MEDSTAR CONNECT LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 271831497 MED INF SVCS MD 64855 5384 HH MEDSTAR MEDSTAR MEDICAL GROUP LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 274234575 MEDICAL SVCS MD 11871462 13819451 HH MEDSTAR CARDIOLOGY ASSOCIATES LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 274234724 MEDICAL SVCS MD 55679686 17292629 HH MEDSTAR CHESAPEAKE CARDIOVASCULAR ASSOCIATESLLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 274465955 MEDICAL SVCS MD 22001645 6901276 HH MEDSTAR MEDSTAR MEDICAL GROUP II LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 461322238 MEDICAL SVCS MD 180453370 107222721 HH MEDSTAR MMG GEORGETOWN FAMILY PRACTICE LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 452660572 MEDICAL SVCS MD 549 0 HH MEDSTAR MEDSTAR SOUTHERN MARYLAND PHYSICIANS LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 460773035 MEDICAL MGMT MD 4643 2857788 HH MEDSTAR MMG RADIOLOGY LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 464003552 MEDICAL MGMT MD 68720224 13166143 HH MEDSTAR MEDSTAR FSMC PHYSICIANS LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 464207755 MEDICAL MGMT MD 175491170 15257072 HH MEDSTAR MEDSTAR GSH PHYSICIANS LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 464217508 MEDICAL MGMT MD 55632430 4247196 HH MEDSTAR MEDSTAR HARBOR HOSPITAL PHYSICIANS LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 464228016 MEDICAL MGMT MD 49995646 4051751 HH MEDSTAR MEDSTAR UMH PHYSICIANS LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 464237992 MEDICAL MGMT MD 124294876 9986104 HH MEDSTAR MEDSTAR SHAH MEDICAL GROUP LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 462691028 MEDICAL MGMT MD 166388643 65340231 HH MEDSTAR MEDSTAR HOUSE CALL LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 475145654 GERIATRIC CAR MD 2952265 813898 HH MEDSTAR WHC PHYSICIAN GROUP LLC 10980 GRANTCHESTER WAY COLUMBIA MD 21044 454019056 MEDICAL MGMT MD 326543199 30149573 HH MEDSTAR MEDSTAR HEART INSTITUTE 10980 GRANTCHESTER WAY COLUMBIA MD 21044 453688816 MEDICAL SVCS MD 0 0 HH MEDSTAR MMG ANESTHESIOLOGY LLC 10980 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