Community Medical Center

“Barnabas health, inc. ("bh") is the sole member of this organization. Bh 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 barnabas health; a tax-exempt integrated healthcare delivery system ("system"). Barnabas health, inc. Is the tax-exempt parent entity of the system. The 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"). In addition, the barnabas health, inc. Audit committee assumed the responsibility to oversee and coordinate the federal form 990 preparation and filing process for all tax-exempt affiliates within the system but did not perform an actual review of each affiliate federal form 990 with the exception of barnabas health, inc. As part of the organization's federal form 990 tax return preparation process the system 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 in-house counsel, executive vice-president and chief financial officer, vice president, internal audit and various other individuals 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 their 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. A meeting was also held to review the final draft of the federal form 990 with the chairperson of the organization's finance committee and other individuals for review and approval. Following this review 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 has a written conflict of interest policy. The organization regularly monitors and enforces compliance with its conflict of interest policy. This conflict of interest policy requires that a conflict of interest form consistent with best governance practices and internal revenue service guidelines be circulated to officers, trustees and key employees annually. In a situation in which a trustee discloses an interest that could give rise to a conflict, the trustee's potential conflict is referred to the corporate nominating and governance committee which evaluates the conflict and its potential impact on the trustee's participation on the board or on certain issues which may come before the board. As appropriate the committee will take action to address the conflict.”

“The organization is an affiliate within barnabas health; a tax-exempt integrated healthcare delivery system. Barnabas health, inc. ("bh") is the tax-exempt parent entity of barnabas health. Bh's board of trustees maintains 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 bh's senior management. The committee also reviews the compensation and benefits of other key officers and key employees of barnabas health; including, without limitation, the chief executive officers of barnabas health hospitals and medical centers. The committee, which is required by the corporation's bylaws to be comprised solely of independent trustees, seeks guidance and substantiation from a nationally recognized compensation consultant. 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 organization 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. 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 review 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, similarly sized healthcare systems and hospitals, # of licensed beds and net patient service revenue. The committee adequately documented the basis for its determination through the timely preparation of written minutes of the compensation committee meetings during which the executive compensation and benefits was reviewed and subsequently approved. The actions outlined above with respect to the committee and the establishment of the rebuttable presumption of reasonableness applies to certain bh senior management personnel. The compensation and benefits of certain other individuals contained in this form 990, where applicable, are reviewed annually by the barnabas health president/chief executive officer with assistance from the organization'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 organization. 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'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.”

“This organization is part of barnabas health; a tax-exempt integrated healthcare delivery system ("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 one hour. 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 barnabas health; not solely this organization.”

“Mark a. Ostrander is still employed within barnabas health as a financial analyst. Effective 5/13/13, mr. Ostrander was transferred to a barnabas health affiliate where he acted as a financial analyst for the remainder of 2013. Thomas r. Percello, chief financial officer/vice preisdent of finance of the organization, was formerly the chief financial officer/vice president of finance at kimball medical center; a related internal revenue code section 501(c)(3) tax-exempt organization, for the period 1/1/13 - 5/12/13. He became the chief financial officer/vice president of finance of this organization effective 5/13/13.”

“Background ========== Community Medical Center ("CMC") is a general medical and surgical hospital. CMC is recognized by the IRS as an internal revenue code section 501(c)(3) tax-exempt organization. Pursuant to its charitable purposes, CMC provides medically necessary healthcare services to all individuals in a non-discriminatory manner regardless of race, color, creed, sex, national origin, religion or ability to pay. Moreover, CMC operates consistently with the following criteria outlined in IRS revenue ruling 69-545: 1. CMC provides medically necessary healthcare services to all individuals regardless of ability to pay, including charity care, self-pay, Medicare and Medicaid patients; 2. CMC operates an active emergency department for all persons which is open 24 hours a day, 7 days a week, 365 days per year; 3. CMC maintains an open medical staff, with privileges available to all qualified physicians; 4. Control of CMC rests with its board of trustees and the board of trustees of Barnabas Health, Inc. Both boards are 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 CMC, as shown through the factors outlined above and other information contained herein, clearly demonstrate the hospital provides substantial community benefit and that the use and control of CMC 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. CMC's sole corporate member is Barnabas Health, Inc. ("BH"), a tax-exempt New Jersey non-profit parent corporation. Barnabas Health is a tax-exempt integrated healthcare delivery system consisting of a group of affiliated healthcare organizations. This integrated network of healthcare providers throughout the state of New Jersey provides substantial community benefit. The sole member or stockholder of each entity is either BH or another BH affiliate controlled or owned by BH. CMC, like its corporate parent is a not-for-profit organization. BH is the largest multi-hospital system in New Jersey and provides substantial community benefit. BH consists of free-standing acute care hospitals, a free-standing psychiatric hospital, Medicare-certified home healthcare and hospice programs, multi-specialty ambulatory care facilities, primary care centers, outpatient behavioral health centers and other entities. BH provides medically necessary healthcare services to all individuals regardless of ability to pay. Moreover, BH provides healthcare services to patients who meet certain criteria defined by the New Jersey Department of Health and Senior services without charge or at amounts less than established rates. BH maintains records to identify and monitor the amount of charity care it provides. These records include the amount of charges foregone for services and supplies furnished under its charity care policy. Hospital Statistical Information ================================ CMC is a non-profit general medical and surgical hospital located in Toms River, Ocean County, New Jersey. CMC is comprised of 587 adult beds, a 32 bassinet nursery and 25 transitional care (skilled nursing) beds. During 2013, CMC serviced nearly 25,000 inpatients and over 84,800 emergency department visits. The emergency department is open to all individuals 7 days a week, 24 hours per day, 365 days per year. Mission Statement ================= Community Medical Center, a not-for-profit acute care hospital serving the Ocean County region, is committed to enhancing the overall health status of the community by providing the highest quality healthcare and related services, including continuing medical education for our medical staff. In collaboration with our medical staff and in partnership with”

“- Oncology data center - the oncology data center/tumor registry provides essential research and information. Data is provided as mandated to the New Jersey Department of Health as well as the national cancer data base. Data obtained from the registry is used to analyze various treatment programs and is used for use in cancer research, medical education, funding applications and medical publications. - Oncology research - clinical trials are offered through CMC's affiliation with the Penn Cancer Network. CMC provides patients access to national and regional clinical research studies, in the treatment of cancer, chemoprevention and supportive care. - Support services - psycho-social services are provided by licensed clinical social workers. Supportive counseling, pastoral care services, education, referral services and support groups are all available for patients and families. - Oncology nurse navigator - available to assist lung cancer patients streamline the healthcare process and meet individuals' medical, psycho-social and emotional needs. 2. First Moments Maternity Services The maternity program specializes in a total concept of care for mothers and their babies - where advanced technology and training are enhanced by the human touch of dedicated healthcare professionals. The unit is staffed by highly skilled physicians, midwives and nurses. In addition, all of CMC's nurses are certified in neonatal resuscitation and lactation resource trained. The modern state-of-the-art unit offers moms-to-be the most advanced maternal and child health technology, including 24/7 neonatal coverage, in a comfortable and safe environment. The labor-delivery recovery and postpartum rooms combine the latest technology with a soothing home-like decor. The unit also includes a special care nursery staffed by a neonatologist and certified neonatal nurses to care for babies with special needs, and a fully-equipped operating suite for cesarean births or high-risk vaginal deliveries. Programs and services of this center include: - Extensive childbirth preparation and infant care classes - Comprehensive parenting support and education - Comprehensive pre and postnatal care - Specially designed labor-delivery-recovery rooms with jacuzzis - 24-hour anesthesia and pain management therapies - Superior lactation education and support - Special care nursery - 24-hour neonatal coverage - Level II special care nursery, for premature newborns 3. The Spine Institute / The Joint Institute A multi-disciplinary team of nurses, therapists, orthopedic and neurosurgeons work to provide a comprehensive planned course of treatment with active involvement of the patient in their treatment and recovery. Medical and Community Services ============================== Additional Medical Services --------------------------- Consistent with revenue ruling 69-545, all qualified physicians are eligible for medical staff privileges at CMC. CMC had over 750 physicians on its medical staff during 2013, including, but not limited to, the following medical specialties: - Anesthesiology - Emergency/Outpatient Medicine - Family Medicine - Medicine - Cardiology - Dermatology - Endocrinology - Gastroenterology - Geriatrics - Infectious Diseases - Nephrology - Neurology - Hematology/Oncology - Physical Medicine & Rehabilitation - Psychiatry - Pulmonary - Obstetrics & Gynecology - Otolaryngology, Head & Neck Surgery - Ophthalmology - Orthopedics - Pathology & Laboratory - Pediatrics - Podiatry - Radiology - Surgery - Neurosurgery - Oral & Maxillofacial Surgery - Plastic Surgery - Thoracic Surgery - Vascular Surgery - Pediatric Surgery - Urology Community Service Centers ------------------------- CMC is committed to keeping its community healthy and offers an extensive array of community outreach programs and services for the benefit of the community it serves. Community Medical Center's Health Education and Outreach Division is dedicated to promoting health awareness for the community b”

“Medical Screenings ------------------ CMC provides numerous medical screening and preventive health programs to the community in furtherance of its tax exempt purposes including, but not limited to, the following: - Blood pressure screening - Cardiac and concussion screenings for young athletes - Diabetes screenings - Heart Disease screenings - Skin cancer screenings - Prostate cancer screenings Community Education ------------------- The hospital's ongoing efforts to educate the community with respect to general health awareness, issues and public safety, healthcare activities, screenings, education and programs is advanced through publications, news bulletins, newsletters, web postings and other publications produced by the hospital. All patients are asked regarding living wills and advanced directives. CMC provides numerous lectures, seminars and other educational programs to the community in furtherance of its tax exempt purposes including, but not limited to, the following: 1. Center for Diabetes Education - Diabetes self-management series - One-on-one counseling services - Support groups including 2 diabetes support groups & an insulin-pump support group - Community outreach - Diabetes Expo Health Fair and Presentation - Weight Management - Diabetes Alert Day Health Education Presentation - Diabetes . . . News You Can Use Free Education Program 2. Center for Kids & Family - Safe sitter program - Home alone - Parenting - Anger Management and Violence Prevention - Mom's Support Group - Eating Disorder Support Group - Kids and Divorce Support Group - Bereavement for Children Support 3. Pediatric Information - Bicycle and helmet safety - Baby & Children's Fair for expectant and new moms, dads and grandparents and families - Self Defense Instruction (ages 10 - 14) - Sports medicine programs: Matthew J. Morahan Concussion & Cardiac Screening - Health Education to Toms River School children regarding circulatory system and heart disease - Ocean County Library Family Place Events; informational sessions for parents - The Whimsical Foodtastic Fun Tour - Children's Nutritional School Assembly 4. Women's Health - Get Your Red On - increase awareness about heart disease in women - Women's Health Week - Physician Lectures & Health Screenings - Living Well - Brick Seniors Club - Breast and Cervical Education - Breast Health - Fitness - Osteoporosis - Menopause - Nutrition - Healthy Bones: Osteoporosis Exercise and Education Program - PMS - Stress Management - Women's Tea at the Women's Imaging Center to discuss breast imaging, care and wellness 5. The Lighthouse - Older Adults - Take Control of Your Health, a chronic disease and medication management program - Review Your Medications - Self Defense Instruction - Exercise and Balance for Older Adults - Blood Pressure Screening - AARP Driver's Safety Program - AARP Income Tax Assistance - Drive Defensively Classes - Look Good, Feel Better - Insurance Counseling - Prescription Discount Program - Health Education Sessions 6. Various Health Fairs, Educational Sessions and Programs: - Colorectal Cancer Awareness Fair - Heart Health Fair - Pain Awareness Health Fair - Toms River Older Adults Health Fair - Neuroscience Health Fair - American Red Cross Blood Drives - Health Fair Baby Fair for pregnant women - Guys Night Out - Men's Health Event - Discharge Transportation provided for patients in need (via ambulance, taxi, MAV wheelchair transport) - Provide patients in need with Durable Medical Equipment/Supplies - Annual Food Drive to benefit local food banks in Ocean County - Health Education Session for Brick Seniors Club - Health Education and Awareness of Colon Health to Churches - Health Education Session at Imaging Center in Whiting - Health Education Session to Manchester Township Employees - Health Education Seminar regarding Benefits of Pet Therapy - Health Education Presentation on Diabetes to Renaissance Men's Club Night - Health Education on Sleep Center - Health Fair at First Bap”

“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, religion or ability to pay. Please refer to the organization's community benefit statement included in schedule o.”

“Other changes in net assets or fund balance includes: - equity transfer to internal revenue code section 501(c)(3) tax-exempt affiliates - ($240,235); - net assets released from restriction for purchases of property and equipment - $4,309,260; and - net change in temporarily and permanently restricted net assets of community medical center foundation; a related internal revenue code section 501(c)(3) tax-exempt organization - ($250,000).”

“The organization is an affiliate within barnabas health, a tax-exempt integrated healthcare delivery system ("system"). The system's tax-exempt parent entity is barnabas health, inc. An independent cpa firm audited the consolidated financial statements of barnabas health, inc. And all entities within the system for the years ended december 31, 2013 and december 31, 2012; respectively. The audited consolidated financial statements contained consolidating schedules on an entity by entity basis. The independent cpa firm issued an unqualified opinion with respect to the consolidated audited financial statements. The barnabas health, inc. Audit 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.”

“This organization is an affiliate within barnabas health; a tax-exempt integrated healthcare delivery system ("system"). The system engaged an independent accounting firm to prepare and issue a system wide consolidated a-133 audit. This organization was included in the system wide a-133 audit.”