Saint Peter'S University Hospital

“Saint peter's healthcare system, inc. ("system") is the sole member of this organization. System has the right to elect the members of this organization's board of trustees and has certain reserved powers as defined in this organization's bylaws.”

“The organization is an affiliate within the saint peter's healthcare system, inc. And affiliates; a tax-exempt integrated healthcare delivery system ("system"). Saint peter's healthcare system, inc. Is the tax-exempt parent of the system. This organization's federal form 990 was provided to each voting member of its governing body (its board of trustees) prior to filing with the internal revenue service ("irs"). The saint peter's health care system, inc. Audit and compliance committee has assumed the responsibility to oversee and coordinate the federal form 990 preparation, review and filing process. As part of the organization's federal form 990 tax return preparation process the organization hired a professional cpa firm with experience and expertise in both healthcare and not-for-profit tax return preparation to prepare the federal form 990. The cpa firm's tax professionals worked closely with the organization's finance personnel and system individuals including, but not limited to, the chief financial officer, controller and other system individuals ("internal working group") to obtain the information needed in order to prepare a complete and accurate tax return. The cpa firm prepared a draft federal form 990 and furnished it to the organization's internal working group, including those individuals outlined above, for review. The organization's internal working group reviewed the draft federal form 990 and discussed questions and comments with the cpa firm. Revisions were made to the draft federal form 990 where necessary and a final draft was furnished by the cpa firm to the organization's internal working group for final review and approval. Following this approval, the system's audit and compliance committee reviewed the form 990 at a regulary scheduled meeting. Finally, the final federal form 990 was provided to each voting member of the organization's governing body prior to filing with the irs.”

“The organization is an affiliate within the saint peter's healthcare system, inc. And affiliates; a tax-exempt integrated healthcare delivery system ("system"). The organization and the system regularly monitor and enforce compliance with its conflict of interest policy. Annually all members of the board of trustees, officers and senior management personnel are required to review the existing conflict of interest policy and complete a questionnaire. The completed questionnaires are returned to the organization and the system's chief compliance officer for review. The chief compliance officer then prepares a summary of the completed questionnaires which contains information disclosed by an individual on an individual basis. Potential conflicts were then reviewed and discussed at a meeting with the system's chief compliance officer, chief financial officer, controller and director of internal audit. The summary is presented to the corporate secretary for reference, review and discussion during board meetings.”

“The organization is an affiliate within the saint peter's healthcare system, inc. And affiliates; a tax-exempt integrated healthcare delivery system ("system"). The system's board of trustees has an executive compensation committee ("committee"). The committee has adopted a written executive compensation philosophy which it follows when it reviews and approves of the compensation and benefits of the organization's senior management, including the president/chief executive officer, chief operating officer and chief financial officer. The committee reviews the "total compensation" of the individuals which is intended to include both current and deferred compensation and all employee benefits, both qualified and non-qualified. The committee's review is done on at least an annual basis and ensures that the "total compensation" of senior management of the organization is reasonable. The actions taken by the committee enable the hospital to receive the rebuttable presumption of reasonableness for purposes of internal revenue code section 4958 with respect to the total compensation of certain members of the senior management team, including the president/chief executive officer, chief operating officer and chief financial officer. The three factors which must be satisfied in order to receive the rebuttable presumption of reasonableness are the following: 1. The compensation arrangement is approved in advance by an "authorized body" of the applicable tax-exempt organization which is composed entirely of individuals who do not have a "conflict of interest" with respect to the compensation arrangement; 2. The authorized body obtained and relied upon "appropriate data as to comparability" prior to making its determination; and 3. The authorized body "adequately documented the basis for its determination" concurrently with making that determination. The committee is comprised of members of the board of trustees each of who are independent and are free from any conflicts of interest. The committee relied upon appropriate comparable data; specifically the committee obtained a written compensation study from an independent firm which specializes in the reviewing of hospital and healthcare system executive compensation and benefits throughout the united states. This study used comparable geographic and demographic market data including but not limited to similar sized hospitals, # of licensed beds and net patient service revenue. The committee adequately documented its basis for its determination. The actions outlined above with respect to the committee and the establishment of the rebuttable presumption of reasonableness only applies to certain senior management personnel, including the president/chief executive officer, chief operating officer and chief financial officer. The compensation and benefits of certain other individuals contained in this form 990 are reviewed annually by the president/chief executive officer with assistance from the hospital's human resources department in conjunction with the individual's job performance during the year and is based upon other objective factors designed to ensure that reasonable and fair market value compensation is paid by the hospital. Other objective factors include market survey data for comparable positions, individual goals and objectives, personnel reviews, evaluations, self-evaluations and performance feedback meetings.”

“The organization has issued tax-exempt bonds to finance various capital improvement projects, renovations and equipment. In conjunction with the issuance of these tax-exempt bonds, the organization's financial statements were included with the tax-exempt bond prospectus which was made available to the general public for review. The organization's filed certificate of incorporation and any amendments can be obtained and reviewed through the state of new jersey department of the treasury.”

“Part vii and schedule j reflect certain board members and officers receiving compensation and benefits from this organization or a related organization. Please note this remuneration was for services rendered as full-time employees of the organization or a related organization and not for services rendered as a voting member or officer of this organization's board of trustees.”

“The organization is an affiliate within the saint peter's healthcare system, inc. And affiliates ("system"); a tax-exempt integrated healthcare delivery system. The system includes both for-profit and not for-profit organizations. Certain board of trustee members, officers and/or directors listed on core form, part vii and schedule j of this form 990 may hold similar positions with both this organization and other affiliates within the system. The hours shown on this form 990, for board members who receive no compensation for services rendered in a non-board capacity, represent the estimated hours devoted per week for this organization. To the extent these individuals serve as a member of the board of trustees of other related organizations in the system, their respective hours per week per organization are approximately the same as reflected on part vii of this form 990. The hours reflected on part vii of this form 990, for board members who receive compensation for services rendered in a non-board capacity, paid officers and key employees, reflect total hours worked per week on behalf of the system; not solely this organization.”

“Background ========== Saint Peter's University Hospital ("SPUH") is recognized by the Internal Revenue Service as an internal revenue code section 501(c)(3) tax-exempt organization. Pursuant to its charitable purposes, SPUH provides medically necessary healthcare services to all individuals in a non-discriminatory manner regardless of race, color, creed, sex, sexual identity and orientation, national origin, or ability to pay. Moreover, SPUH operates consistently within the following criteria outlined in IRS revenue ruling 69-545: 1. SPUH provides medically necessary healthcare services to all individuals regardless of ability to pay, including charity care, self-pay, Medicare and Medicaid patients; 2. SPUH operates an active emergency department for all persons that is open 24 hours a day, seven days a week, 365 days per year; 3. SPUH maintains an open medical staff with privileges available to all qualified physicians; 4. Control of SPUH rests with its board of trustees, which is comprised of independent civic leaders and other prominent members of the community; and 5. Surplus funds are used to improve the quality of patient care, expand and renovate facilities, and advance medical care, programs and activities. The operations of SPUH, as shown through the factors outlined above and other information contained herein, clearly demonstrate that the use and control of SPUH is for the benefit of the public and that no part of the income or net earnings of the organization inures to the benefit of any private individual nor is any private interest being served other than incidentally. Saint Peter's University Hospital, located at 254 Easton Ave., New Brunswick, N.J. is a 478-bed nonprofit acute-care teaching hospital sponsored by the Roman Catholic Diocese of Metuchen. Saint Peter's, a member of the Saint Peter's Healthcare System, is a regional medical campus and academic affiliate of Rutgers University Biomedical and Health Sciences division and sponsors its own freestanding residency programs in obstetrics and gynecology, pediatrics, and internal medicine. The hospital is fully accredited by the Joint Commission and is certified as a Magnet Hospital for Nursing Excellence by the American Nurses Credentialing Center. Saint Peter's is also a state-designated acute care children's hospital and a regional perinatal center and is affiliated with the Children's Hospital of Philadelphia for pediatric cardiology services. Saint Peter's was the first hospital in Middlesex County and has served the healthcare needs of central New Jersey continuously since 1907, providing substantial community benefit. From its simple beginnings, Saint Peter's has grown to become a technologically advanced, 478-bed teaching hospital that provides a broad array of services to the community - from sophisticated care of premature babies to specialized geriatric medicine. Saint Peter's brings the latest medical practices and highly skilled professionals to the bedside. Hospital staff treats approximately 24,000 inpatients and 250,000 outpatients annually. Saint Peter's employs 3,520 healthcare professionals and support personnel, and more than 1,000 physicians and dentists have privileges at its facility. As a state-designated acute care children's hospital, Saint Peter's offers a full range of specialized pediatric healthcare services. Saint Peter's also offers one of the most sophisticated maternity programs and operates one of the largest, most advanced neonatal intensive care units in the country as a state-designated regional perinatal center. Saint Peter's is recognized by the American Diabetes Association in all areas of diabetes education and is also a regional provider of radiation and oncology services. While medical advances help to provide better patient care than ever before, Saint Peter's healing mission would be incomplete without the personal commitment of employees that respond to the total, individual person - spiritually, emotionally and”

“- For more than 40 years, a regional provider of comprehensive cancer services accredited by the Commission on Cancer, including a free-standing adult oncology center, radiation oncology, outpatient chemotherapy, prostate seed implantation, a nationally accredited breast center, breast cancer treatment, gynecologic oncology, minimally invasive surgery, CyberKnife robotic radiosurgery, da Vinci robotically assisted surgery, and support groups. - Specializes in integrated geriatric medicine, offering services and satellite centers that include geriatric evaluation and management service (intensive outpatient program for frail seniors), with locations in Monroe and New Brunswick, and community nursing care at eight retirement communities in Monroe. - The Saint Peters Thyroid and Diabetes Center, recognized by the American Diabetes Association in all areas of diabetes education. - The Department of Medical Genetics and Genomic Medicine, the sole hospital-based provider of genetics services to infants, children and adults in central New Jersey, counsels, tests and treats those with a family history of chromosome abnormalities, birth defects, skeletal dysplasia, cancer syndromes and other types of inherited disorders. - Women's health services, including imaging services, general ob/gyn, midwifery services, breast disease, urogynecology, gynecologic oncology and Saint Peters Gianna Center which is dedicated to providing a more natural alternative to assisted reproductive technologies such as in vitro fertilization. Comprehensive gynecologic primary care and specialized fertility and family planning techniques are used to unmask the true causes of infertility for all women, regardless of faith. Affiliations ============ Saint Peter's University Hospital is affiliated with the Children's Hospital of Philadelphia (CHOP) for pediatric cardiology services, establishing the CHOP Cardiac Center at Saint Peter's University Hospital. The center specializes in monitoring and treating cardiac abnormalities in infants and children. In support of our mission to provide quality medical education, Saint Peter's became an academic affiliate of Rutgers Biomedical and Health Sciences. Specialty Services ================== Regional Perinatal Center (RPC): delivering nearly 5,600 babies annually, Saint Peter's offers one of the largest, most sophisticated maternity programs in the country. The hospital was the first Regional Perinatal Center in New Jersey and specializes in high-risk pregnancy. The antenatal testing unit is one of the largest units of its kind and features 3-D and 4-D ultrasound testing. Specialty maternal fetal medicine programs include the infant and perinatal loss evaluation program and the infant prematurity assessment and prevention program. Neonatal Intensive Care Unit (NICU): Saint Peter's operates a 54-bassinett NICU, the largest in central New Jersey and the first in the state, which includes the neonatal retina center, providing laser surgery for retinopathy of prematurity and outpatient ophthalmology services, and the infant apnea center. Special training in caring for these fragile babies is provided to parents and support groups are offered. Cancer program: includes a 24-bed inpatient unit and outpatient services including radiation and infusion therapies and surgery. The program provides state-of-the-art treatments such as IMRT and breast cancer services. The hospital is accredited by the American College of Surgeons' Commission on Cancer as a teaching hospital cancer program and is the recipient of the Commission on Cancer outstanding achievement award. The Saint Peter's Breast Center is accredited by the National Accreditation Program for Breast Centers (NAPBC), a program administered by the American College of Surgeons. Geriatric services: a complete and multidisciplinary program of geriatric medicine, with an outpatient geriatric evaluation and management service for the frail elderly, especially those with Alzheimer'”

“Other Services ============= The Center for Diabetes Self-Management Education: diagnoses and treats children with diabetes and other endocrine disorders, emphasizing family management and support. The center offers pump therapy to appropriate patients and support groups. Craniofacial and Neurosurgical Center: offers corrective surgery, multidisciplinary support and follow-up services and support groups for children born with cleft lip, cleft palate and other facial deformities. Members of the multidisciplinary medical team are active with Operation Smile and Heal the Children. Dorothy B. Hersh Regional Child Protection Center: a state-designated regional diagnostic and treatment center for child abuse prevention. The center identifies abuse, provides medical and psychological evaluation and referrals to victims and families, serves as expert witnesses and educates child care and law enforcement professionals. It serves Middlesex, Somerset, Mercer, Hunterdon, Monmouth, Ocean and Union counties. For KEEPS - Kids Embraced and Empowered through Psychological Services: provides mental health diagnoses and intensive treatment for area children, ages 5 through 17, who suffer from emotional or behavioral difficulties that negatively influence their ability to function successfully in a social environment. For KEEPS is a full-time day program where children receive academic instruction in addition to behavioral and psychological treatments through collaboration among doctors, nurses, social workers and counselors. Also, meeting the needs of the poor and underserved, Saint Peter's University Hospital treats all patients, regardless of their ability to pay. This is evident by, but not limited to, the following: - adult and pediatric emergency departments operating 24-hours-a-day, 365-days-a-year. - operating more than 50 clinics and more than 120,000 visits in pediatric and pediatric subspecialties, adult medicine and subspecialties, women's health and subspecialties, and geriatric medicine and subspecialties. Other community benefit programs/support groups/screenings: Adult communities: Concordia, Clearbrook, The Ponds, Greenbriar at Whittingham, Rossmoor, Stonebridge, Regency Community Health Services mobile health van Pediatric call center Family Health Center adult, children and women's ambulatory services Thyroid and Diabetes Center Diabetes and Hypertension Center a patient-centered medical home Geriatrics Child protection center Infection control Marketing and media relations Pharmacy Employee health services Main kitchen food services Perinatal services Midwifery services Community outreach Pastoral care Volunteer services Medical library Craniofacial-neurosurgical center Abstinence education Fertility awareness Soup kitchen - Elijah's Promise Speakers bureau Breast cancer support group Leukemia, lymphoma, and myeloma support group Living with cancer support group New visions support group (for teenagers with cancer) Strength for caring (for caregivers of cancer patients) Advanced cardiac life support Advanced cardiac life support renewal Basic life support for healthcare providers CPR for family and friends First aid Heartsaver AED adult/pediatric Adults with diabetes support group Alzheimer's caregivers Bereavement support group Caregivers support group Pregnancy after loss support group SHARE Support group Blood pressure and blood sugar screenings Osteoporosis screenings Body mass index skin screenings Skin cancer screenings Breast health information and self-exam instruction Parent education Baby care Breastfeeding Breastfeeding support group New daddy class New family support group Prenatal nutrition class Sibling class Tiny tots CyberKnife robotic radiosurgery Breast center Please note that this is not an all-inclusive list.”

“Expenses incurred in providing various other medically necessary healthcare services to all individuals in a non-discriminatory manner regardless of race, color, creed, sex, national origin or ability to pay. Please refer to the organization's community benefit statement included in schedule o.”

“Other changes in net assets or fund balances include: - change in pension liability to be recognized in future periods; ($10,602,465); - net equity transfers from related internal revenue code section 501(c)(2) and (c)(3) tax-exempt organizations; $1,355,000; - net assets released from temporary restriction; (163,000); - net change in beneficial interest in st. Peter's foundation; a related internal revenue code section 501(c)(3) tax-exempt organization; ($2,375,000); - abandonment of equipment; ($6,980,865); - information technology settlement; $7,300,000; and - donated equipment and other increases in net assets; $6,201,000.”

“The organization is an affiliate within the saint peter's healthcare system, inc. And affiliates; a tax-exempt integrated healthcare delivery system ("system"). The system's tax-exempt parent entity is saint peter's healthcare system, inc. An independent cpa firm audited the consolidated financial statements of saint peter's healthcare system, inc. And all entities within the system for the years ended december 31, 2017 and december 31, 2016; respectively. The audited consolidated financial statements contain consolidating schedules on an entity by entity basis. The independent cpa firm issued an unmodified opinion with respect to the audited consolidated financial statements each year. The system's audit and compliance committee has assumed responsibility for the oversight of the audit of the consolidated financial statements, which includes this organization, and the selection of an independent auditor.”