Kimball Medical Center

“Raymond shea and david sickel - business relationship”

“Effective with the close of business on april 30, 2014, the medical center was statutorily merged into monmouth medical center, an internal revenue code 501(c)(3) tax-exempt hospital.”

“Prior to its statutory merger on may 1, 2014, barnabas health, inc. ("bh") was the sole member of this organization. Bh had the right to elect the members of this organization's board of trustees and had certain reserved powers as defined in this organization's bylaws.”

“Prior to its statutory merger on may 1, 2014, the organization was 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"). 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.”

“Prior to its statutory merger on may 1, 2014, the organization was 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.”

“Prior to its statutory merger on may 1, 2014, this organization was an affiliate within 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.”

“Kimball medical center, an internal revenue code 501(c)(3) tax-exempt organization, was statutorily merged into monmouth medical center; an internal revenue code 501(c)(3) tax-exempt hospital, on may 1, 2014. Accordingly, most employees of kimball medical center transferred to monmouth medical center. In accordance with form 990 instructions, since this form 990 is a short year final return, column (e) includes 2014 form w-2, box 5 wages for these individuals that received a 2014 form w-2 from monmouth medical center or other affiliates within barnabas health. In addition, column (f) of core form, part vii, section a has appropriately not been completed.”

“Compensation reported in part vii reflects 12 months of employment between kimball medical center and monmouth medical center. The 2014 compensation and benefits of these individuals reflected in part vii are disclosed on monmouth medical center's 2014 form 990. Thomas r. Percello, former officer of this organization, is still employed within barnabas health as the chief financial officer/vice president of finance of community medical center; a related internal revenue code section 501(c)(3) tax-exempt organization. Joe hicks, former officer of this organization, is still employed within barnabas health as the executive director of saint barnabas behavioral health center; a related internal revenue code section 501(c)(3) tax-exempt organization. Caryl l. Singer, former officer of this organization, is still employed within barnabas health as a senior vice president barnabas health corporate care of saint barnabas management services, llc; a single member limited liability company (a disregarded entity for tax purposes) of saint barnabas behavioral health center; a related internal revenue code section 501(c)(3) tax-exempt organization. In addition, the compensation reported in part vii for gerald l. Tofani, cpa, reflects 12 months of employment between kimball medical center and sbc management corporation; a related organization. The 2014 compensation and benefits of mr. Tofani reflected in part vii are disclosed on the 2014 form 990 of barnabas health, inc. (fein: 22-2405279).”

“THE INFORMATION INCLUDED IN THE FOLLOWING COMMUNITY BENEFIT STATEMENT APPLIES TO KIMBALL MEDICAL CENTER BOTH BEFORE AND AFTER ITS STATUTORY MERGER INTO MONMOUTH MEDICAL CENTER; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION, OUTLINED BELOW. Background ========== On May 1, 2014, Kimball Medical Center ("KMC"), a nonprofit corporation, merged with and into Monmouth Medical Center ("MMC"), also a nonprofit corporation, so that the two facilities would be under common ownership to better coordinate health delivery for a shared service area. The separate existence of KMC ceased and MMC continues as the "surviving corporation." Barnabas Health, Inc., continues to be the sole member (i.e. owner) of MMC following the Merger. MMC, as the surviving corporation, operates two separately licensed hospital facilities, Monmouth Medical Center, located in Long Branch, NJ and the former KMC facility, which now operates under its new name, "Monmouth Medical Center Southern Campus". Monmouth Medical Center Southern Campus ("MMCSC"), is a general medical and surgical hospital campus of MMC, which is recognized by the IRS as an internal revenue code section 501(c)(3) tax-exempt organization. Pursuant to its charitable purposes, MMCSC 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, MMCSC operates consistently with the following criteria outlined in IRS revenue ruling 69-545: 1. MMCSC provides medically necessary healthcare services to all individuals regardless of ability to pay, including charity care, self-pay, Medicare and Medicaid patients; 2. MMCSC operates an active emergency department for all persons and is open 24 hours a day, 7 days a week, 365 days per year; 3. MMCSC maintains an open medical staff, with privileges available to all qualified physicians; 4. Control of MMCSC rests with its Board of Trustees, the Board of Trustees of MMC and of Barnabas Health, Inc. All the 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 MMCSC, as shown through the factors outlined above and other information contained herein, clearly demonstrate that the hospital provides substantial community benefit and that the use and control of MMCSC 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. As noted above, MMC's sole corporate member is Barnabas Health, Inc. ("BH"), a tax-exempt New Jersey non-profit parent corporation. BH 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. MMC, 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 without charge or at amounts less than established rates. BH maintains records to identify and monitor”

“In June 2012, MMCSC opened a Pediatric Emergency Services Program in collaboration with The Children's Hospital at Monmouth Medical Center. MMCSC's Pediatric Emergency Services program allows children with urgent medical illnesses to receive the immediate specialty care they require from emergency medicine physicians, with in-house board-certified neonatologist and pediatrician consultation 24 hours a day, 7 days a week. The Pediatric Emergency Services program offers a child-friendly environment with the highest level of pediatric emergency medical care for newborns to adolescents. Every aspect of MMCSC's emergency department has been designed to provide the ultimate in efficiency and comfort for patients and their families, while offering the highest quality medical care. This has led to numerous recognitions and awards for patient satisfaction and quality medical care, including exceptional turnaround time. 2. The Center for Wound Healing Every year, chronic wounds caused by diabetes, poor circulation and related conditions keep three to five million Americans from enjoying life. The Center for Wound Healing and hyperbaric medicine applies proven wound care practices and advanced clinical approaches including hyperbaric oxygen therapy (HBOT) to help heal patients suffering from chronic wounds. Additionally, our center frequently participates in clinical trials utilizing the latest wound care products available. 3. Better Health - A Wellness Program Just for Seniors MMCSC's Better Health program is a free membership program available to seniors who want to improve their health and well-being. MMCSC invites people age 55+ to become a member of the Better Health program to help maintain good health. Members take advantage of many exclusive benefits designed to help take charge of their health and wellness. Aside from taking steps toward living a more productive and fulfilling life, specific benefits include: - Preferred physician scheduling with appointments guaranteed within 48 hours of placing the call - Preferred parking at Monmouth Medical Center Southern Campus' Outpatient Pavilion - A simplified pre-registration process for laboratory and radiology services resulting in no-wait times - Special visits from a Patient Resource Representative should one be admitted for an overnight stay - Home safety assessments - A copy of a special calendar for club members - A copy of our Healthy Aging newsletter sent to the home - Access to a special web site that provides advance notice of: - Free screening locations - Physician lectures and topics - Daily health and wellness tips - Videos on living a healthier life Each month cardholders are invited to educational lunch and learns that are offered at Monmouth Medical Center Southern Campus or, in some cases, brought to the communities in which members live. The lectures are provided by physicians from Monmouth Medical Center in Long Branch and/or Monmouth Medical Center Southern Campus in Lakewood or other members of our educational team. Topics include: - Healthy nutrition with an introductory cooking class - Know your medications (and those of your loved ones) - The benefits of exercise - Stress management - How to get the most from your doctor's visit - Are you vaccinated properly Monmouth Medical Center Southern Campus provides a variety of community social events in or around Lakewood or at senior communities throughout the area. Focused on arts, entertainment and competition, our events are truly unique and enable members to meet new people while improving their health. Medical and Community Services ============================== MMCSC's services include an array of additional medical services and programs that address the health care needs of its communities, from diagnostic, to prevention and treatment. Additional Medical Services --------------------------- MMCSC's had approximately 360 physicians on its medical staff during 2014 comprised of the following specialties: - Alle”

“Medical Screenings ------------------ MMCSC provides numerous medical screening programs to the community in furtherance of its tax-exempt purposes including, but not limited to, the following: - Skin Cancer screenings - Glucose screenings - Blood Pressure screenings - Cardiac Screening & Concussion Testing for young athletes - Mental Health Screening Community Education ------------------- MMCSC offers a full array of wellness programs, including 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. Older Adults - AARP Driver Safety Program - Health & Education Program for Seniors, out in Senior Communities - Fall Prevention Workshop - Mobile Phlebotomy Units to increase access for lab work at Senior Communities - "Sweet Dreams for Seniors - Getting a Good Night's Rest" Lunch and Learn - Osteoporosis Lunch and Learn - Stress and Relaxation Lunch and Learn 2. Women's Health - Women for Sobriety - Go Pink for Women's Health - Health Fair for Women - Look Good Feel Better by the American Cancer Society 3. Support Groups - Caregiver's Support Group - Diabetes Support Group - Bereavement Support Group - Grandparents Raising Grandchildren Support Group - Alcoholics Anonymous Meetings - Survivors of Suicide Group - Overeaters Anonymous - Hearing Loss Association of America Support Group Meetings - Smoking Cessation Support Group - All cancers support group 4. Various Seminars and Physician Lectures - Colorectal Cancer Awareness Education Session - Weight Loss Surgery - Educational Physician Lecture - Choose Your Cover - skin cancer education and prevention - Heart Health/Go Red Heart Day Fair 5. Instructional Classes and Programs - Classic Yoga - Gentle Yoga - Defensive Driving, sponsored by The Ocean County Department of Safety - Diabetes Education - Pet Therapy to promote healing and reduce stress of hospitalization - Self Defense & Exercise - Stop Smoking Program - facilitated by peer volunteers - Tai Chi Weekly Exercise Group 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 enhanced through publications, news bulletins, newsletters, web postings and other publications produced by the hospital. In addition, patients of at risk populations are assessed for influenza and pneumonia vaccinations and provided the vaccines upon their approval. All patients are asked regarding living wills and advanced directives.”

“Effective on may 1, 2014 the organization's mother-infant pavilion ceased operations and closed.”

“Other changes in net assets or fund balance include: - net assets released from restriction for purchases of property and equipment - $370,850; - net change in temporarily and permanently restricted net assets of kimball medical center foundation; a related internal revenue code section 501(c)(3) tax-exempt organization - ($21,000); and - statutory merger into monmouth medical center; an internal revenue code 501(c)(3) tax-exempt hospital - ($4,391,510).”

“Prior to its statutory merger on may 1, 2014, the organization was 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 affiliates within the system for the years ended december 31, 2014 and december 31, 2013; respectively. The audited consolidated financial statements contain consolidating schedules on an entity by entity basis for the barnabas health hospitals and certain other affiliates. 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.”

“Prior to its statutory merger on may 1, 2014, this organization was 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.”