Thomas Jefferson University Hospitals Inc

“The organization is an affiliate within jefferson/jefferson health; a comprehensive professional university and tax-exempt integrated healthcare delivery system ("system"), with a tripartite mission of education, research and patient care. The system utilizes a common paymaster for this organization and jefferson university physicians; a related internal revenue code section 501(c)(3) tax-exempt organization. In accordance with the internal revenue service form 990 regulations and instructions, the organization treats amounts paid by a common paymaster for services performed for the organization as if paid directly by the organization. Similarly, the organization treats amounts paid by a common paymaster for services performed for a related organization as if paid directly by the related organization.”

“Michael j. Heller, charles g. Kopp, esq. & mark l. Alderman, esq. - business relationship; michael j. Heller & ira lubert - business relationship; hyman r. Kahn, m.d. & jack farber - business relationship; and ira lubert & harold a. Honickman - business relationship.”

“The organization is an affiliate within jefferson/jefferson health; a comprehensive professional university and tax-exempt integrated healthcare delivery system ("system"), with a tripartite mission of education, research and patient care. Thomas jefferson university ("tju") is an internal revenue code section 501(c)(3) tax-exempt organization and serves as the parent organization of the system. As the parent organization of the system tju provides various corporate related services for the benefit of various system entities; including this organization. These corporate services, include, but are not limited to, executive, legal and risk management, compliance and governance, human resources and finance. Tju allocates a percentage of its total corporate related services costs to various system entities, including this organization, as reimbursement for these corporate related services. The reimbursement to tju is reflected as an expense for these organizations.”

“The organization is an affiliate within jefferson/jefferson health; a comprehensive professional university and tax-exempt integrated healthcare delivery system ("system"), with a tripartite mission of education, research and patient care. Tjuh system, inc. Is the sole member of this organization. Thomas jefferson university ("tju") is the sole member of tjuh system, inc. Accordingly, tju has the ultimate 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 jefferson/jefferson health; a comprehensive professional university and tax-exempt integrated healthcare delivery system ("system"), with a tripartite mission of education, research and patient care. The organization's federal form 990 was provided to each voting member of the organization's governing body, its board of trustees, prior to filing with the internal revenue service ("irs"). The organization's governing body has assumed the responsibility to oversee and coordinate the federal form 990 preparation, review and filing process. As part of the system's federal form 990 tax return preparation process the system hired a professional certified public accounting ("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 system's finance personnel and various other individuals including, but not limited to, the executive vice president/chief financial & administrative officer, senior vice president of corporate finance & chief investment officer, vice president of corporate finance and the associate vice president & enterprise controller ("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 system's internal working group for their review. The 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 internal working group for final review and approval. Following this review, the form 990 was then presented to the system's audit, risk and compliance committee and provided to the organization's governing body prior to filing with the irs.”

“The organization is an affiliate within jefferson/jefferson health; a comprehensive professional university and tax-exempt integrated healthcare delivery system ("system"), with a tripartite mission of education, research and patient care. The system has a written conflict of interest policy with which all affiliates regularly monitor and enforce compliance. The conflict of interest policy governs conflict of interest disclosure and monitoring of all voting members of the system's board of trustees. The conflict of interest policy is designed to assist the organization in evaluating arrangements, contracts or transactions that may benefit the private interest of a trustee, their family member(s), a member of a committee or subcommittee that exercises board-delegated powers of the university, or senior management. The policy is intended to supplement but not replace applicable state and federal laws governing nonprofit charitable corporations. In accordance with the conflict of interest policy, each voting member of the board of trustees must complete, at least annually, the system's conflict of interest disclosure process. The conflict of interest process includes distribution of an electronic disclosure to all persons who served as voting members of the board of trustees, members of senior management and key employees during the previous fiscal year. The disclosure form elicits information related to the respondents actual or potential interests and activities in which they engaged during the reporting period. The process also requires covered persons to disclose such information about their family members. In addition to attesting to the veracity of information contained within the disclosure, the voting member of the board of trustees must certify that they will abide by the system's conflicts of interest and other relevant policies and will disclose all interests and activities related to their ongoing service on the board of trustees. Members of senior management and individuals identified as key employees receive disclosure questions required of members of the board of trustees. All persons covered under the organization's board of trustees and employee-related conflict of interest policies maintain a continuing obligation to disclose all changes in interests, activities and relationships throughout the year. The system maintains all original disclosure forms and certifications in accordance with its record retention policy. The system also compiles and issues a comprehensive report of all actual or potential interests and activities reported during the board of trustees conflicts of interest disclosure process to the organization's executive committee of the board of trustees. Thereafter, the board of trustees itself or through delegation to the audit, risk and compliance committee, evaluates all actual or potential conflicts of interest to determine whether activities or arrangements require management, reduction, or elimination of certain interests, activities or relationships. When management of the identified conflict is required, the affected person(s), members of the boards executive committee, and certain members of executive management, receive notification of the requirements set forth in the management plan. Affected persons are expected to abide by the terms of the management plan, which may include, but may not be limited to, recusal from deliberations and voting when appropriate. In addition to the above-outlined internal reporting and evaluation of activities, transactions and relationships, all required disclosures in accordance with the internal revenue service's regulations and instructions are reported on the organization's federal form 990.”

“The organization is an affiliate within jefferson/jefferson health; a comprehensive professional university and tax-exempt integrated healthcare delivery system ("system"), with a tripartite mission of education, research and patient care. The organization is committed to ensuring that its executive compensation program adheres to the highest standards of regulatory compliance and best practices in corporate governance. Thomas jefferson university's board of trustees has a compensation and human capital 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 system's executive compensation, including arrangements covering the president/chief executive officer, senior executives and other key employees (including clinical department chairs and select faculty). The committee meets multiple times during the year and is comprised of individuals who are independent and do not have conflicts of interest with regard to the compensation arrangements that fall within its purview. The committee's process is designed to satisfy the rebuttable presumption of reasonableness that is available under the intermediate sanctions law, and includes the review of comparability data and the contemporaneous substantiation of its deliberations and decisions. The committee's decisions are made in accordance with system's compensation philosophy, which supports the objective of attracting, retaining and motivating talented individuals who have the appropriate experience and skills to achieve the institutions objectives. On an annual basis the committee reviews appropriate comparability data for similar institutions that reflect the mission, scope and complexity of the organization and its constituent entities. The committee engages qualified, independent consultants as needed to provide advice on compensation matters and to prepare the comparability data, which are reviewed by the committee in advance of making its decisions. The committee reviews and approves compensation for the president/chief executive officer and other senior executives based on market practices, an assessment of performance and other business judgment factors. The executive compensation includes incentive pay, pursuant to which executives are rewarded based on the achievement of the system, entity and individual performance goals that are established in advance of the performance period. These goals are linked to system's mission, strategic and operating objectives, and have predetermined weights. At the end of the year, the committee approves the resulting awards based on a review of performance achievements relative to the goals; in appropriate circumstances, other discretionary factors may be considered when incentives are determined. The committee makes a determination of the reasonableness of compensation and maintains minutes that document its deliberations and decisions.”

“The organization's filed certificate of incorporation and any amendments can be obtained and reviewed through the commonwealth of pennsylvania.”

“Core form, part vii and schedule j reflect certain board of trustee 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 jefferson/jefferson health; a comprehensive professional university and tax-exempt integrated healthcare delivery system ("system"), with a tripartite mission of education, research and patient care. The system's parent entity is thomas jefferson university ("tju"). The system includes both for-profit and not for-profit organizations. Certain board of trustee members, key employees and officers 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 in core form, part vii of this form 990. The hours reflected on core form, part vii of this form 990, for board members who receive compensation for services rendered in a non-board capacity, paid officers or key employees, reflect total hours worked per week on behalf of the system; not solely this organization.”

“Thomas jefferson university hospitals, inc. ("tjuh") is recognized by the internal revenue service ("irs") as an internal revenue code section 501(c)(3) tax-exempt hospital organization. It includes thomas jefferson university hospital, jefferson hospital for neuroscience and methodist hospital (collectively referred to as tjuh). Pursuant to its charitable purposes, tjuh provides emergency and medically necessary healthcare services to all individuals in a non-discriminatory manner regardless of race, color, creed, sex, national origin, or ability to pay. Moreover, the organization operates consistently with the following criteria outlined in irs revenue ruling 69-545: 1) tjuh provides medically necessary healthcare services to all individuals regardless of ability to pay, including charity care, self-pay, medicare and medicaid patients; 2) tjuh operates an active emergency department for all persons; which is open 24 hours a day, seven days a week, 365 days per year; 3) tjuh maintains an open medical staff, with privileges available to all qualified physicians; 4) control of tjuh 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 tjuh, as shown through the factors outlined above and other information contained herein, clearly demonstrate that tjuh provides substantial community benefit and that the use and control of tjuh 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. Background ========== jefferson university hospitals and thomas jefferson university are partners in providing excellent clinical and compassionate care for our patients in the philadelphia region, educating the health professionals of tomorrow in a variety of disciplines and discovering new knowledge that will define the future of clinical care. We are 30,000+ people reimagining health care, education and discovery. We are many things, but every day all of us are dedicated to one thing: improving lives. Jefferson ranks as 16th best hospital on u.s. News & world report's honor roll list. We continue to top the list of hospitals in pennsylvania (3rd) and the philadelphia metro area (2nd) in u.s. News & world report's annual listing of the best hospitals and specialties. Jefferson also stands out as among the best in 11 specialty areas: - orthopedics - cancer - ear, nose & throat - gastroenterology & gi surgery- nephrology - neurology & neurosurgery - ophthalmology - diabetes & endocrinology - geriatrics - cardiology & heart surgery - urology thomas jefferson university hospitals has 908 licensed acute care beds, with major programs in a wide range of clinical specialties. Services are provided at five primary locations - thomas jefferson university hospital (the main hospital facility, which was established in 1825) and jefferson hospital for neuroscience, both in center city philadelphia; jefferson's methodist hospital and jefferson at the navy yard, both in south philadelphia; and jefferson at voorhees in south jersey. To protect the health and well-being of our patients, visitors, employees, students and volunteers, jefferson is a smoke-free campus. Smoking is not permitted in all jefferson buildings and within 50 feet of any entryway to or exit from jefferson buildings, and within 50 feet of driveways, canopies, archways and plazas. We are also smoke free in campus parking areas. Thomas jefferson university hospitals statistics ------------------------------------------------- - licensed beds: 908 - admissions: 39,122 - outpatient visits: 1,303,360 - emergency room visits: 118,978 - employees (full and part-time): 9,604 - employees: 9,604 - physicians &”

“At jefferson, we recognize that by providing quality health care to our patients, and education and outreach to our neighbors, we are also enriching the lives and future of our surrounding community. And when the community thrives, we all benefit. Awards & honors =============== jefferson university hospitals is consistently recognized both nationally and locally by various organizations and institutions in just about every aspect of patient care, patient safety and the quality of the healthcare experience. Jefferson health continues its record of excellence in healthcare with recognition from u.s. News & world reports annual listing of top hospitals and specialties. In addition to ranking in the top 10 facilities in the philadelphia metro area (2nd) and pennsylvania (3rd), 8 of thomas jefferson university hospital's specialty programs have been recognized. Thomas jefferson university hospital's nationally ranked specialties -------------------------------------------------------------------- - ophthalmology - jefferson's department of ophthalmology (wills eye hospital) ranks 2nd in the nation - orthopedics - ranks 10th best hospital in the nation (rothman orthopaedics at jefferson health and philadelphia hand to shoulder center) - ear, nose & throat - jefferson is the 21st best hospital in the nation neurology & neurosurgery - ranks 21st best hospital in the nation (vickie & jack farber institute for neuroscience jefferson health) - cancer - ranks 23rd best hospital in the nation (sidney kimmel cancer center jefferson health) - gastroenterology & gi surgery - jefferson is the 16th best hospital in the nation - cardiology & heart surgery - ranks 48th in the nation - geriatrics - jefferson's geriatric medicine ranks 38th in the nation tjuh named as high performing in four specialties ------------------------------------------------- - nephrology - pulmonology - rehabilitation (magee rehabilitation hospital) - urology quality & safety ================ since 1825, the physicians, nurses and staff at thomas jefferson university hospitals have made the safety of our patients and the quality of care we deliver top priorities. We recognize that the care we provide affects every patient and family member who comes through our doors. Our commitment to quality is measured in better patient outcomes and increased patient satisfaction. The result is generations of families turn to jefferson because they know that we deliver safe, superior and compassionate care, from diagnostics through follow-up care. At jefferson, we don't just talk about safety and quality: we set goals and benchmark our results to ensure we are meeting and exceeding national standards. We use a "balanced scorecard" approach to continually measure our progress toward our goals. This approach provides accountability at all levels and tracks those metrics that have the greatest impact on our strategic values quality and safety, service, people, growth and finance and operations. In our drive to deliver the best quality care, we utilize proven methodologies for quality improvement. Many of our staff have received dedicated training and gained expertise in special techniques to drive improvements in quality and safety. Recognition for quality & safety ================================ many national organizations recognize thomas jefferson university hospitals for our standards of quality, excellence and safety. U.s. News & world report ------------------------ thomas jefferson university hospitals is consistently rated among the best healthcare providers in the nation, with top national and regional rankings in ophthalmology, orthopedics, cancer, otolaryngology (ear, nose and throat), urology, gastroenterology and gi surgery, neurology and neurosurgery, cardiology and heart surgery, nephrology and geriatrics. Centers for medicare & medicaid ------------------------------- the centers for medicare & medicaid services (cms) recently announced that it ranked thomas jefferson u”

“Promotion of community health ============================= key tjuhs initiatives that addressed health promotion, care for the underserved, system and policy changes include the following: behavioral health ----------------- - opiate task force participated in the city and jefferson enterprise-wide opiate task forces to reduce access to opiate pain killers and raise public awareness about addiction from taking non-prescribed opiate medications (ex/ access to opiate pain killers in friend/family medicine cabinets) and drug take-back programs. Provided narcan training and access to narcan - drug free communities partner and evaluator of the south philadelphia prevention coalition (east of broad st); westside community prevention led by trinity united methodist church (south philadelphia west of broad) - narp jefferson initiative that provides mat and other services for individuals with addictions - mater jefferson program that provides a pregnancy support program for women on mat and provides other social supports including housing counseling services provided at no cost by jefferson family and couples therapy at southwark school in south philadelphia (k-8). Furness high school - jefferson counseling program training all staff in trauma informed counseling/care to enhance skills of all staff to address trauma among students in partnership with dbhids provide free mental health first aid programs at community sites for community based organizations and residents. All jefferson nursing students receive mental health first aid training, emts and expanding to medical students. Mhfa reached 926 health professional, students and community members between 2017 and 2019. In fy2019 served 421 - chronic pain self- management free community program that trains participants to address pain with non-medication methods homeless -------- - 30 years working with project home and homeless partners - jeffhope program goes to 4 homeless shelters and 1 needle exchange harm reduction program in philadelphia every week to provide acute, basic medical care and help individuals and families experiencing homelessness access other health and social resources and healthcare providers that are better equipped to care for them long-term. Tjuh provides lab and pharmaceutical services - steven klein wellness center partnership with project home refugees and immigrants ----------------------- - refugee clinic, unity clinic and chinatown clinic serve immigrant and refugee community. In process of developing the wyss immigrant health and wellness center in south philadelphia - participate in the philadelphia refugee health collaborative and refugee mental health collaborative - department of family and community medicine provides medical services for new refugees in partnership with the philadelphia refugee health collaborative school health services ---------------------- - the athletic health organization and center for urban health provide sport physicals at local community schools in support of competitive sports programs. Schools include southwark school, independent charter school, south philadelphia high school - department of family and community medicine providing physicals for south philadelphia high school students lgbtq community --------------- - lgbtq hospital initiative - family and community medicine and the center for urban health provide the doctor is in, and other programs such as chronic disease self-management with the lgbt-elder initiative age friendly health system -------------------------- - attained designated age friendly health system status center for urban health ----------------------- outreach to vulnerable and underserved communities in philadelphia. Directly impact individuals and families in the community that foster support, shared decision making and behavior change: - community health worker program - training for jefferson and community based organizations for community health workers. Participate in state efforts to creat”

“The organization is an affiliate within jefferson/jefferson health; a comprehensive professional university and tax-exempt integrated healthcare delivery system ("system"), with a tripartite mission of education, research and patient care. The system has a number of outstanding long-term obligated group debt liabilities, including the following bond issuances: - pennsylvania higher educational facilities authority series 2006b; - pennsylvania higher educational facilities authority series 2009a; - pennsylvania higher educational facilities authority series 2012; - pennsylvania higher educational facilities authority series 2012a; - pennsylvania higher educational facilities authority series 2012b; - pennsylvania higher educational facilities authority series 2015a; - pennsylvania higher educational facilities authority series 2015b; - pennsylvania higher educational facilities authority series 2015c-g; - pennsylvania higher educational facilities authority series 2015h; - philadelphia authority for industrial development series 2017a; - philadelphia authority for industrial development series 2017b; - philadelphia authority for industrial development series 2017c; - montgomery county higher education and health authority series 2018a, - montgomery county higher education and health authority series 2018b; - montgomery county higher education and health authority series 2018c; - montgomery county higher education and health authority series 2018d; and - montgomery county higher education and health authority series 2019a. The bonds outlined above and various other long-term borrowings are allocated by thomas jefferson university; the tax-exempt parent of the system and sole member of various tax-exempt affiliates within the system, to the following system member hospitals and certain other affiliates. The balance sheet of these respective member hospitals and certain other affiliates reflects a tju obligated group liability. Accordingly, this tju obligated group liability is reflected on the balance sheet of the following subsidiary organizations: - thomas jefferson university hospitals, ein: 23-2829095 - tjuh system, inc., ein: 26-3026795 - jefferson university physicians, ein: 23-2809585 - abington health, ein: 27-1243803 - abington health foundation, ein: 23-2188052 - abington memorial hospital, ein: 23-1352152 - lansdale hospital corporation, ein: 26-3359979 - aria health, ein: 23-0596940 - aria health system, ein: 23-2239131 - philadelphia university, ein: 23-1352294 - kennedy university hospital, inc., ein: 22-1773439 - kennedy health system, inc., ein: 22-2442036 - magee rehabilitation hospital, ein: 23-1476328 schedule k was prepared on a consolidated basis and is included in the form 990 of thomas jefferson university, ein: 23-1352651.”

“In august 2016, the fasb issued asu 2016-14, not-for-profit entities: presentation of financial statements of not-for profit entities, which eliminates the requirement for not-for-profits (nfps) to classify net assets as unrestricted, temporarily restricted and permanently restricted. Instead, nfps are required to classify net assets as net assets with donor restrictions or without donor restrictions. Among other things, the guidance also modifies required disclosures and reporting related to net assets, investment expenses and qualitative information regarding liquidity. Nfps are also required to report all expenses by both functional and natural classification in one location. The provisions of asu 2016-14 are effective for the institution for annual periods beginning after december 15, 2017 and interim periods thereafter. As such, the institution adopted asu 2016-14 for the year ended december 31, 2018. The effects of the adoption of asu 2016-14 were applied retrospectively. As a result of the adoption of asu 2016-14, the net asset categories have been updated as described above. Additionally, the addition of quantitative and qualitative disclosures related to the analysis of expenses by both natural and functional classifications and liquidity and availability of resources can be found in notes 4 and 14. The adoption of asu 2016-14 had no impact on the total net assets previously reported by the institution as of december 31, 2017.”

“Other changes in net assets or fund balance include: - net assets released from restriction - $5,780,835; - change in interest rate swap contracts - ($7,195,587); - distribution to minority interest - ($10,923,301); - other changes in net assets - ($680,392); - net assets released from restriction (donor restricted) - ($5,797,835); - change in value of external trusts (donor restricted) - $29,751; and - other changes in net assets (donor restricted) - ($1,492).”

“The organization is an affiliate within jefferson/jefferson health; a comprehensive professional university and tax-exempt integrated healthcare delivery system ("system"), with a tripartite mission of education, research and patient care. The system's parent entity is thomas jefferson university ("tju"). An independent certified public accounting ("cpa") firm audited the consolidated financial statements of the system for the fiscal years ended june 30, 2019 and june 30, 2018; respectively and issued a consolidated audited financial statement. An unmodified opinion was issued each year by the independent cpa firm. Tju's audit, risk and compliance committee has assumed responsibility for the oversight of the audit of the consolidated financial statements, which includes the selection of an independent auditor.”