Magee Rehabilitation Hospital

Form 990, Schedule O Disclosures

“FORM 990, PART I, LINE 1 THE MISSION OF MAGEE REHABILITATION HOSPITAL IS TO PROVIDE RESTORATIVE REHABILITATION SERVICES TO INDIVIDUALS WITH PHYSICAL DISABILITIES, PARTICIPATE IN THE EDUCATION PROCESS AND PERFORM CLINICAL RESEARCH. FORM 990, PART VI, SECTION A, LINE 4 RESTRUCTURE OF JEFFERSON HEALTH SYSTEM PRIOR TO JUNE 30, 2014, JEFFERSON HEALTH SYSTEM, INC. ("JHS"), A PENNSYLVANIA NONPROFIT CORPORATION HEADQUARTERED IN RADNOR, PENNSYLVANIA, WAS THE PARENT OF A SYSTEM OF HEALTH CARE ORGANIZATIONS COMPRISED OF THREE MEMBER HEALTH SYSTEMS. JHS WAS THE SOLE CORPORATE MEMBER OF THE PARENT COMPANIES OF EACH OF THE THREE MEMBER HEALTH SYSTEMS. THESE THREE MEMBER SYSTEMS ARE: THE MAGEE HOSPITAL FOR CONVALESCENTS, D/B/A MAGEE REHABILITATION HOSPITAL ("MAGEE"), MAIN LINE HEALTH, INC. ("MLH"), AND TJUH SYSTEM, INC. ("TJUH"). MAGEE, MLH, AND TJUH WERE COLLECTIVELY REFERRED TO AS "MEMBERS." ON JUNE 30, 2014, JHS RESTRUCTURED, IN A SERIES OF TRANSACTIONS AND AGREEMENTS, WHICH RESULTED IN MAGEE AND TJUH SEPARATING FROM JHS. AS A RESULT, MAGEE AMENDED ITS GOVERNING DOCUMENTS TO REFLECT ITS SEPARATION FROM JHS. Form 990, Part VI, Section A, Lines 6, 7a and 7b As per the Articles of Incorporation, the sole member of Magee rehabilitation hospital is Jefferson Health System, a PA nonprofit corporation. As sole member, Jefferson Health System holds certain powers of election and approval in connection with the governing body of Magee rehabilitation hospital. These powers are presented in detail in the company's governing documents which the company makes available to the public upon request. Form 990, Part VI, Section A, Line 11a The Form 990 is prepared in conjunction with PriceWaterhouseCoopers LLP and reviewed internally by management. MAGEE REHABILITATION HOSPITAL MAILS A COPY OF THE COMPLETED FORM 990, WITH ALL SCHEDULES, TO EACH AUDIT COMMITTEE MEMBER. EACH MEMBER IS REQUESTED TO REVIEW THE FORM 990 AND POSE ANY QUESTIONS OR MAKE COMMENTS. THERE IS A TELEPHONE CONVERSATION BETWEEN MANAGEMENT AND THE AUDIT COMMITTEE MEMBERS TO ADDRESS ANY QUESTIONS. THE AUDIT COMMITTEE THEN RECOMMENDS THE APPROVAL OF THE FORM 990 TO THE FULL BOARD OF TRUSTEES. THE FULL BOARD OF TRUSTEES THEN APPROVES THE FORM 990 FOR SUBMISSION OF THE RETURN. COPIES OF THE FORM 990 ARE SENT ELECTRONICALLY TO THE FULL BOARD OF TRUSTEES PRIOR TO FILING THE COMPLETED. FORM 990,PART VI, SECTION B, LINES 12C ANNUALLY, THE HOSPITAL COMPLIANCE OFFICER DISTRIBUTES CONFLICT OF INTEREST STATEMENTS TO ALL TRUSTEES, OFFICERS AND KEY EMPLOYEES OF THE HOSPITAL. THESE DOCUMENTS ARE SIGNED AND RETURNED TO THE COMPLIANCE OFFICER. THE BODY OF THE CONFLICT OF INTEREST DOCUMENT CONTAINS LANGUAGE THAT REQUIRES THE INDIVIDUAL TO DISCLOSE TO THE ORGANIZATION ANY INTERESTS THAT COULD GIVE RISE TO CONFLICTS. THE MAGEE CORPORATE COMPLIANCE PROGRAM AND THE CODE OF ETHICS IS POSTED ON THE MAGEE WEBSITE AT MAGEEREHAB.ORG. FORM 990, PART VI, SECTION B, LINE 15 OFFICERS KEY EMPLOYEE COMPENSATION POLICY Internally equitable and externally competitive salary opportunities for all Sr. Executive level Associates by periodically utilizing the services of an outside consulting firm who specializes in Executive Compensation and Intermediate Sanctions review. Salary administration and performance measurement processes and procedures which will ensure the Hospital's ability to appropriately recognize and retain outstanding individual performance and achievement of objectives Total compensation (Salary and benefits) targets for each Sr. Executive level position at the 50th percentile of the market of the survey data collected. The goal for the Hospital's Sr. Executive compensation program is to pay an Executive who is fully seasoned in the healthcare arena and experienced in a position with similar responsibilities as Magee Rehabilitation Hospital's at the 50th percentile for that position. All compensation for officers and key employees is approved by the Board of Trustees. FORM 990, PART VI, SECTION C, LINE 19 MA”