Umsj Health System LLC

“Form 990 On July 1, 2015 UMSJ Health System, LLC (the parent of all of the St Joseph Medical System entities) was legally merged into UMSJ Health System I, LLC ( a 501(c)(3) tax exempt organization). Also effective on that date, the legal name of the tax exempt organization was changed from UMSJ Health System I, LLC to UMSJ Health System, LLC. Prior to July 1, 2015, all of the activity of the St Joseph Medical System was reported on the 990 tax return of the University of Maryland Medical System Corporation (UMMSC). Subsequent to that date and in all future reporting periods, all activity will be reported on the IRS Form 990 of the St Joe Medical Systems own parent company, UMSJ Health System, LLC.”

“FORM 990, PART VI, LINE 6, 7A & 7B UNIVERSITY OF MARYLAND SYSTEM CORPORATION (UMMS) IS THE SOLE MEMBER OF UMSJ Health System. UMMS MAY ELECT ONE OR MORE BOARD MEMBERS OF THE GOVERNING BODY AND ALL DECISIONS OF THE GOVERNING BODY MUST BE APPROVED BY UMMS. Form 990 Review Process FORM 990, PART VI, LINE 11B THE IRS FORM 990 IS PREPARED AND REVIEWED BY THE ACCOUNTING FIRM OF GRANT THORNTON. ACCOUNTING PERSONNEL IN FINANCE SHARED SERVICES AT THE UNIVERSITY OF MARYLAND MEDICAL SYSTEM GATHER THE INFORMATION NEEDED TO COMPLETE THE RETURN AND INPUT THE DATA INTO THE GRANT THORNTON TAX ORGANIZER, WHICH IS AN EXCEL-BASED SYSTEM. WHEN ALL DATA HAS BEEN ENTERED, THE INFORMATION IS SUBMITTED TO GRANT THORNTON FOR IMPORTATION INTO THEIR TAX SOFTWARE. AT THIS POINT, GRANT THORNTON STAFF MEMBERS REVIEW THE DATA, ASK FOR ADDITIONAL INFORMATION IF NEEDED AND PREPARE THE TAX RETURN. EACH RETURN IS REVIEWED AT SEVERAL LEVELS AT GRANT THORNTON INCLUDING THE TAX PARTNER. AFTER THEIR REVIEW PROCESS, A DRAFT RETURN IS SENT TO THE ACCOUNTING STAFF AT UMMS FOR AN IN-HOUSE REVIEW. UPON COMPLETION OF THE IN-HOUSE REVIEW, GRANT THORNTON IS INSTRUCTED TO MAKE ANY NECESSARY CHANGES AND TO PREPARE THE FINAL TAX RETURN. THE FINAL RETURN UNDERGOES ANOTHER REVIEW BY THE ACCOUNTING STAFF AT FINANCE SHARED SERVICES AND IS ALSO REVIEWED BY THE ACCOUNTING MANAGER, THE DIRECTOR OF FINANCIAL REPORTING, THE VICE PRESIDENT OF FINANCE AND THE CFO, WHO SIGNS THE RETURN. PRIOR TO FILING THE IRS FORM 990, THE ORGANIZATION'S BOARD CHAIRMAN, TREASURER, AUDIT COMMITTEE CHAIRMAN, EXECUTIVE COMMITTEE CHAIRMAN OR OTHER MEMBER OF THE BOARD WITH SIMILAR AUTHORITY WILL REVIEW THE IRS FORM 990. AT THE DISCRETION OF THE REVIEWING BOARD MEMBER, SUCH MEMBER WILL BRING ANY ISSUES OR QUESTIONS RELATED TO THE COMPLETED IRS FORM 990 TO THE ATTENTION OF THE BOARD. NOTWITHSTANDING THE ABOVE, A BOARD RESOLUTION IS NOT REQUIRED FOR THE FILING OF THE ORGANIZATION'S IRS FORM 990. EACH BOARD MEMBER IS PROVIDED WITH A COPY OF THE FINAL IRS FORM 990 BEFORE FILING. CONFLICT OF INTEREST POLICY MONITORING & ENFORCEMENT FORM 990, PART VI, LINE 12C THE ORGANIZATION'S OFFICERS, DIRECTORS, EMPLOYEES AND MEDICAL STAFF MEMBERS, AS APPLICABLE, SHALL DISCLOSE CONFLICTS OF INTEREST OR POTENTIAL CONFLICTS OF INTEREST BETWEEN THEIR PERSONAL INTERESTS AND THE INTERESTS OF THE ORGANIZATION, OR ANY ENTITY CONTROLLED BY OR OWNED IN SUBSTANTIAL PART BY THE ORGANIZATION. A QUESTIONNAIRE WHICH DISCLOSES POTENTIAL CONFLICTS OF INTEREST IS DISTRIBUTED ANNUALLY TO ALL OFFICERS, DIRECTORS AND KEY EMPLOYEES. THE GENERAL COUNSEL OF THE UNIVERSITY OF MARYLAND MEDICAL SYSTEM CORPORATION (UMMSC) REVIEWS THE RESPONSES FOR UMMSC, AND JAMES LAWRENCE KERNAN HOSPITAL. THE CEO OR CFO OF EACH OF THE OTHER ENTITIES IN THE UNIVERSITY OF MARYLAND MEDICAL SYSTEM REVIEWS THE RESPONSES FOR THOSE ENTITIES. THE GENERAL COUNSEL, IN CONSULTATION WITH THE AUDIT COMMITTEE, IF NECESSARY, WOULD DETERMINE IF A CONFLICT OF INTEREST EXISTED FOR UMMSC, AND JAMES LAWRENCE KERNAN HOSPITAL. WITH RESPECT TO THE OTHER ENTITIES IN THE UNIVERSITY OF MARYLAND MEDICAL SYSTEM, THE GENERAL COUNSEL MAY BE CALLED FOR CONSULT. IF SO, THE GENERAL COUNSEL MAY CONSULT THE AUDIT COMMITTEE, IF NECESSARY. WHENEVER A CONFLICT OR POTENTIAL CONFLICT OF INTEREST EXISTS, THE NATURE OF THE CONFLICT OR POTENTIAL CONFLICT OF INTEREST MUST BE DISCLOSED IN WRITING TO THE ORGANIZATION'S BOARD, BOARD COMMITTEE, AN OFFICER OF THE ORGANIZATION OR OTHER APPROPRIATE EXECUTIVE. SUCH INDIVIDUAL HAVING A POTENTIAL CONFLICT OF INTEREST SHALL PLAY NO ROLE ON BEHALF OF THE ORGANIZATION, OR ANY ORGANIZATION CONTROLLED OR SUBSTANTIALLY OWNED, IN ANY TRANSACTION IN WHICH A CONFLICT EXISTS. ALL INVITATIONS FOR BIDS, PROPOSALS OR SOLICITATIONS FOR OFFERS INCLUDE THE FOLLOWING PROVISION: ANY VENDOR, SUPPLIER OR CONTRACTOR MUST DISCLOSE ANY ACTUAL OR POTENTIAL TRANSACTION WITH ANY ORGANIZATION OFFICER, DIRECTOR, EMPLOYEE OR MEMBER OF THE MEDICAL STAFF, INCLUDING FAMILY MEMBERS WITHIN FIVE DAYS OF THE”

“Form 990, Part VIII Entity Contributions Program Invest/Rental Other UMMRSS LLC 45-5565991 - 849,265 - - UMRPS LLC 45-5559036 - 3,606,267 - 86,775 UMSJP LLC 30-0755741 - - - 1,570,149 UMSJMG LLC 37-1704041 - 33,705,458 - 8,228,809 UMSJO LLC 32-0391006 - 24,031,639 - - UMSJMC 35-2445106 1,352,164 361,729,311 1,168,956 2,912,667 Total 1,352,164 423,921,940 1,168,956 12,858,400 Consolidation Total Expense Per 990 Form 990, Part IX Entity Program Management Fundraising UMMRSS LLC 45-5565991 1,287,748 96,447 - UMRPS LLC 45-5559036 2,629,072 283,221 - UMSJP LLC 30-0755741 2,072,966 127,551 - UMSJMG LLC 37-1704041 49,568,236 8,212,813 - UMSJO LLC 32-0391006 27,041,855 1,585,401 - UMSJMC 35-2445106 297,771,190 45,699,542 - Total 380,370,797 56,004,975 - Consolidation, Balance Sheet- Assets Entity Total Assets UMMRSS LLC 45-5565991 1,160,455 UMRPS LLC 45-5559036 2,247,100 UMSJP LLC 30-0755741 2,706,581 UMSJMG LLC 37-1704041 4,283,687 UMSJO LLC 32-0391006 1,572,290 UMSJMC 35-2445106 288,737,857 Total 300,707,970 Consolidation, Balance Sheet- Liabilities and Fund Balance Entity Total Total Total Liabilities Fund Balance UMMRSS LLC 45-5565991 2,626,718 (1,466,263) (1,160,455) UMRPS LLC 45-5559036 478,764 1,768,336 2,247,100 UMSJP LLC 30-0755741 4,956,829 (2,250,248) (2,706,581) UMSJMG LLC 37-1704041 54,652,284 (50,368,597) (4,283,687) UMSJO LLC 32-0391006 23,150,166 (21,577,876) (1,572,290) UMSJMC 35-2445106 318,978,619 (30,240,765) 288,737,854 Total 404,843,380 (104,135,410) 300,707,970”

“Form 990, Part XI, line 9 Transfer of St. Joseph Entities' (105,385,436) Fund Balance from UMMSC Other Changes in Net Assets (1,675,662) TOTAL (107,061,098) Transfer of Net assets Form 990, Part XI, Line 9 UMSJ Health System, LLC (UMSJHS) received its 501(c)(3) exemption letter in November of 2014. On July 1, 2015, UMSJHS became the parent company for all entities in the University of Maryland St. Joseph Medical System and now reports the consolidated financial information and activities of the following related entities, which were previously reported under the University of Maryland Medical System Corporation: UM Medical Regional Supplier, LLC UM Regional Professional Services, LLC UMSJ Properties, LLC UMSJ Medical Group, LLC UMSJ Orthopaedics, LLC UMSJ Medical Center As such, UMSJHS now reports these entities' combined ending net assets or fund balances at 6/30/15, -$105,385,436, previously included on the UMMS Corporation balance sheet, as a transfer of net assets on this Form 990 for UMSJHS.”