Memorial Health Services Group Return

“Patrick kapsner, judy shubin and mark schaefer have a business relationship. Mark cianciola and jeffrey riker have a business relationship.”

“Memorial health services is the sole corporate member of orange coast memorial medical center (ocmmc), long beach memorial medical center (lbmmc), saddleback memorial medical center (smmc) and memorialcare medical foundation (mmf).”

“The mhs board, as the tax-exempt parent and corporate member, has the right to elect and remove the members of the governing bodies of lbmmc, ocmmc, smmc and mmf.”

“The exercise of the following powers is reserved to the corporation's member, memorial health services: a. Adopt mission, philosophy and values statements of the corporation and any amendments or supplements to such statements. B. Amend articles of incorporation or bylaws of the corporation. C. Elect and remove directors of the corporation. D. Sell, lease, exchange, mortgage, pledge or otherwise dispose of all or substantially all, the property and assets of the corporation. E. Merge, consolidate or voluntarily dissolve the corporation. F. Form a subsidiary or enter into an agreement to act as a general partner. G. Retain an attorney or firm of attorneys to provide legal services for the corporation. H. Authorize the purchase of insurance providing coverage for the corporation and its properties as well as the establishment and operation of a program of risk management. I. Retain an accountant or firm of accountants to provide accounting and auditing services for the corporation. J. Adopt annual operating and capital budgets for the corporation. K. Incur indebtedness, as so defined, in accordance with generally accepted accounting principles. L. Authorize any unbudgeted expenditure in excess of $250,000 for capital improvements to the properties owned by the corporation and not approved by the budget procedure. M. Adopt a strategic long-range or master plan for the corporation and to retain any consultants with respect thereto.”

“The 990 was prepared by the accounting department with information gathered from legal and upper management. The 990 was reviewed by the controllers of each facility and the mhs cio and cfo, prior to filing with the irs. The 990 for memorial health services (mhs) is reviewed by the mhs cio and cfo prior to release to the irs. The cfo reviewed the 990 with the mhs board at the april 2015 board meeting.”

“The general counsel's office annually surveys each director and officer and requires affirmation that the conflict of interest policy has been read and understood. The results of the survey are reported to the governance committee of the parent which is responsible for governance oversight and nominations. Conflicts are evaluated for being occasional or disabling in nature. The general counsel makes the initial evaluation and advises the governance committee in its deliberations. If and as an occasional conflict is identified, the general counsel advises the subject director and governance in a "rebuttable presumption" type process. Should a disabling conflict be identified, the director resigns or is removed upon the recommendation of the general counsel, governance committee and board. In addition, an annual notice is sent by email to each employee having email regarding the acceptance of gifts.”

“Frederic w. Cook & co. Is retained by the compensation committee to provide advice and counsel regarding its compensation program provided to memorialcare's senior management team (vp's and above). Frederic w. Cook & co. Provides objective, third-party advice on the reasonableness of compensation and benefit levels provided in comparison with those of other similarly situated organizations, and the appropriateness of the overall compensation program in light of organization's performance and other relevant factors used in determining the reasonableness of compensation. Final review and approval by the mhs board of directors. Review of managers, program directors, directors and executive directors compensation is conducted by the mhs compensation director in conjunction with the compensation value added team. Final approval is obtained from the mhs coo and the mhs vp people & culture. All management was last reviewed on october 27, 2014. The review that was performed for fy14 was completed on october 30, 2013.”

“The following organizations invested in, contributed assets to, or participated in a joint venture or similar arrangement with a taxable entity during the year: ocmmc, smmc and mmf. Form 990, part vi, line 16b ocmmc, smmc and mmf have adopted a written policy or procedure requiring them to evaluate their participation in joint venutre arrangements under applicable federal tax law, and have taken steps to safeguard the organization's exempt status with respect to such arrangements.”

“On november 1, 2013 memorialcare medical foundation (mcmf) entered into a joint venture with simonmed imaging to form waving imaging, llc (wave), in which mcmf owns a 51% interest. Wave acquired the assets of five simonmed imaging centers located in long beach, huntington beach, irvine, newport beach and laguna niguel. The purposes of the joint venture are to develop, establish, own and operate one or more imaging centers, to provide such diagnostic medical imaging services at the imaging centers, including but not limited to mri, ct, pet, ultrasound, and diagnostic x-ray and other modalities. Form 990, part iii, line 4a memorialcare health system is a nonprofit integrated delivery system, which includes long beach memorial medical center, miller children's & women's hospital long beach, community hospital long beach, seaside health plan, orange coast memorial medical center, saddleback memorial medical center in laguna hills and san clemente, memorialcare medical foundation, and numerous outpatient locations. The memorialcare health system operates 1,546 licensed patient beds. For fy2014, the system's hospitals recorded 309,839 patient days, 68,841 patient discharges, 34,480 surgeries, 10,262 babies delivered, 198,647 emergency department visits, and 40,029 home health visits. Memorialcare has gained widespread recognition for its unique approach to healthcare. For the fourth consecutive year, long beach memorial medical center, orange coast memorial medical center, and saddleback memorial medical center were named "high performing" in multiple specialties by u.s. News and world report's 2013-2014 "best regional hospitals" rankings. All three hospitals were ranked within the top 20 high performing hospitals in california. All three hospitals were honored with an "a" hospital safety score by the leapfrog group for the third year in a row. Memorialcare medical group and greater newport physicians were honored by the california association for physician groups (capg) with the elite status rating of four stars. Memorialcare medical group was recognized for the ninth year in a row as one of california's top-rated physician groups by the integrated healthcare association (iha). In addition, memorialcare health system has been honored for four consecutive years with the gallup great workplace award. Long beach memorial medical center major programs focus upon prevention and attention to key chronic health conditions with a priority on: cancer, cardiovascular disease, diabetes, obesity, mental health and asthma. Other priorities include access to care and medical education. Chronic disease: long beach memorial medical center (lbmmc) is a 462 adult bed community hospital that is home to specialized services including: todd cancer institute, memorialcare heart & vascular institute, rehabilitation & physical therapy and the emergency/trauma center. The todd cancer center is committed to the early diagnosis, research, treatment and education of patients with cancer or serious blood disorders. The heart & vascular institute is widely respected as one of the region's top cardiac centers. This center has pioneered treatments such as cardiac resynchronization, homograph valve surgery and cardiac bypass. Rehabilitation is a center of excellence for brain & spinal cord injury and a certified primary stroke center. Miller children's and women's hospital long beach (mcwhlb) is a 373-bed not-for-profit, pediatric teaching hospital that treats more than 8,000 children each year and has become a regional pediatric destination for more than 84,000 children, who need specialized care in the outpatient specialty and satellite centers. The memorialcare center for women at miller children's and women's hospital long beach delivers more than 6,000 babies each year, 1,000 nicu babies, and transports nearly 100 high-risk moms to mcwhlb each year. More than 750 pediatric specialists and sub-specialists, as well as nearly 100 ob/gyns, including 10 high-risk”

“Memorialcare medical foundation (mmf) is a not-for-profit medical management organization that contracts exclusively with memorialcare medical group (formerly bristol park medical group), memorial prompt care and family medicine and greater newport physicians to offer comprehensive medical care to patients. Mmf manages more than 30 locations throughout orange and los angeles counties in the areas of internal medicine, family medicine, pediatrics, geriatrics medicine, pulmonology, gastroenterology, neurology, physiatry, sleep medicine and acupuncture. In addition, mmf offers telephone advice nurses, as well as lab and x-ray services at most locations.”

“Orange coast memorial medical center (ocmmc), a member of the not-for-profit memorialcare medical centers since january, 1996, is committed to upholding the highest standards of care and meeting the needs of the community. Ocmmc has created an environment which fosters community outreach. Department directors, employees, physicians, senior management and the board of directors all participate in developing and implementing outreach activities and new programs. Community stakeholders are an important part of ocmmc's commitment to delivering quality community benefit programs to the local community. A committee made up of local physicians, community volunteers, school district and non-profit organization leaders help ensure that community benefit programming at ocmmc is directed towards the needs of the vulnerable, are planned in such a way to ensure sustainability, and evaluated to determine outcome measures. The public relations department is charged with informing employees, physicians and the community about new programs and outreach activities. Newsletters, employee forums, meetings, radio programs and press releases are some of the avenues used to disseminate information and secure involvement. At significant expense and effort, the hospital also promotes its activities to the community-at-large through paid advertisements, direct mail literature, flyers and via the hospital's website. The foremost tool for promoting community outreach programs is a community newsletter, which is distributed quarterly and sent to nearly 100,000 households in the primary and secondary market areas. We recognize the presence of several vulnerable populations within the ocmmc service area. The hospital strives to provide community benefit activities to the local vulnerable that bridge the gaps they may have in reaching health care services. For example, with our vietnamese outreach program, bicultural and bilingual vietnamese staff conduct community-based monthly screenings and educational events. Community awareness of these events is secured through regular vietnamese radio and tv programs. In 2013, a community-wide health needs assessment was done. The data within the report help the community benefit staff to identify those at greatest risk for particular diseases and conditions. The data is used to engage the community stakeholders in dialogue that helps produce balanced community health care services. For 2014, the priorities have included: priority i - establishment of a sustainable community benefits structure. Priority ii - comprehensive review of community benefit programs/activities priority iii - with a special focus on the vietnamese and senior populations, our programs address the following health needs: a. Access to care b. Chronic disease c. Overweight and obesity d. Prevention/preventive care ocmmc will continue to meet the identified health needs through a commitment of resources with the following programs and services: - community education - senior outreach and advocacy - health screenings - cash and in-kind donations to support identified needs - transportation - free physician referral service saddleback memorial medical center a 325 bed acute care, not-for-profit hospital with two locations, laguna hills and san clemente, saddleback memorial medical center has been meeting the healthcare needs of south orange county residents since 1974. Saddleback memorial treats more than half a million people each year, including inpatients, outpatients, new babies and patients in the emergency department. In addition to 24-hour emergency care, saddleback memorial offers complete critical, surgical and obstetrical services, as well as a variety of educational classes and programs in keeping with its mission of enhancing the health and well-being of individuals, families and the community. Its centers of excellence include: -saddleback women's hospital, with ldrp suites, a fetal diagnostics center for high-risk pregnancies, a neonata”

“The following organizations were required to file a schedule b: long beach memorial medical center (lbmmc), orange coast memorial medical center (ocmmc), and saddleback memorial medical center (smmc). Form 990, part iv, line 4 the following organizations engaged in lobbying activities: lbmmc, ocmmc and smmc. Form 990, part iv, line 10 the following organizations held assests in endowment funds through related organizations: lbmmc and smmc. Form 990, part iv, line 18 the following organization had more than $15,000 of gross receipts from fundraising events: ocmmc. Form 990, part iv, line 20a the following organizations operated one or more hospitals: lbmmc, ocmmc and smmc. Fomr 990, part iv, line 20b the following organizations are required to attach their audited financial statements to this return: lbmmc, ocmmc and smmc. Form 990, part iv, line 28c the following organizations had business transactions with interested persons: lbmmc, ocmmc and mmf. Form 990, part iv, line 29 the following organization received more than $25,000 in non-cash contributions: lbmmc. Form 990, part iv, line 33 the following organization owned 100% of a disregarded entity: smmc and mmf. Form 990, part v, line 3a the following organizations had unrelated business gross income of $1,000 or more during the year: lbmmc, smmc, and mmf. Form 990, part v, line 7a/b the following organization provided goods and services to a donor in exchange for a contribution of $75 or more and notified the donor: ocmmc.”

“Purchased medical services $ 93,550,679 contracted physician services $ 90,073,337 other professional fees $ 38,843,960 other purchased services $ 70,506,172 ------------ total $292,974,148 ============”

“Grant audit reserve (lbmmc) $ (80,000) other changes in net assets (lbmmc) $ 252,964 gain/(loss) asc / non-controlling interest in jvs (ocmmc) $ 912,631 other changes in net assets (smmc) $ 601,721 gain/(loss) asc / non-controlling interest in jvs (smmc) $ (241,237) other changes in net assets (smmc gift shop) $ (17,887) other changes in net assets (mmf) $ 6,052,083 gain/(loss) asc / non-controlling interest in jvs (mmf) $ 236,082 ------------ total $ 7,716,357 ============”

“The members of the group are included in consolidated audited financials and mhs' audit committee selects an independent auditor on behalf of the consolidated group.”

“The following organization was required to undergo an audit or audits, and completed the audit, as set forth in the single audit act and omb circular a-133 as a result of a federal award: lbmmc.”