TY 2011 Form 990

(A) Name and Title	(B) Average hours per week (describe hours for related organizations in Schedule O)	(C) Position (do not check more than one box, unless person is both an officer and a director/trustee)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)
(1) JAMES N HESTON CHAIRMAN - TRUSTEE	5.0	X	X	0	0
(2) PAUL V STAHLIN VICE CHAIRMAN - TRUSTEE	5.0	X	X	0	0
(3) GUY J TORSILIERI SECRETARY - TRUSTEE	3.0	X	X	0	0
(4) KENNETH W BATEMAN TRUSTEE - PRESIDENT/CEO	55.0	X	X	781,629	109,543
(5) CHARLES BROWN TRUSTEE	1.0	X		0	0
(6) BETTY CATANESE MD TRUSTEE	3.0	X		31,062	0
(7) JERRY DURSO TRUSTEE	1.0	X		0	0
(8) ROBERT FALCONE MD TRUSTEE	1.0	X		0	0
(9) RAYMOND FINO TRUSTEE	3.0	X		0	0
(10) ANTHONY FRISOLI MD TRUSTEE	1.0	X		0	0
(11) STEVE KALAFER TRUSTEE	1.0	X		0	0
(12) MARK KOLB TRUSTEE	3.0	X		0	0
(13) JOANN MENDLES TRUSTEE	3.0	X		0	0
(14) JAMES T RICK JR TRUSTEE	3.0	X		0	0
(15) WILLIAM RUDA MD TRUSTEE	1.0	X		0	0
(16) BARBARA SCHWARTZ PHD TRUSTEE	1.0	X		0	0
(17) WILLIAM M SUGARMANN MD TRUSTEE	1.0	X		2,126	0

(A) Name and Title	(B) Average hours per week (describe hours for related organizations in Schedule O)	(C) Position (do not check more than one box, unless person is both an officer and a director/trustee)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)	(F) Estimated amount of other compensation from the organization and related organizations
(18) RICH WINTERSTELLER TRUSTEE	1.0	X				0	0
(19) ROGER YANG MD TRUSTEE	1.0	X				0	0
(20) CARL OBRIEN TREASURER/CFO	55.0		X			372,193	20,182
(21) ELISA IMPORTICO ASSISTANT SECRETARY	55.0		X			0	0
(22) DAVID DYER CIO / VP INFORMATION SYSTEMS	55.0		X			362,501	32,264
(23) PAUL HUEGEL PRESIDENT - FOUNDATION	55.0		X			398,381	34,012
(24) MAUREEN SCHNEIDER SENIOR VP - CHIEF NURSING OFF.	55.0		X			429,872	9,168
(25) GLENN MCCREESH SENIOR VP OPERATIONS	55.0		X			427,798	34,113
(26) MARY ANN BROSS VP HUMAN RESOURCES	55.0		X			290,287	30,734
(27) ROBERT SENSKA III VP REG AFFAIRS/CCO	55.0		X			288,361	11,910
(28) KATHLEEN CUMMINS VP NURSING	55.0		X			254,068	8,523
(29) MARY BOLLWAGE VP RISK MANAGEMENT	55.0		X			234,319	19,366
(30) VICTORIA ALLEN VP MARKETING	55.0		X			218,755	13,152
(31) STEPHEN MINOGUE VP SLEEP FOR LIFE	55.0		X			213,792	6,391
(32) JOHN BUCEK MD DIRECTOR - FAMILY PRACTICE	55.0			X		263,991	35,897
(33) CHIKEZIE J AGUH MD MEDICAL DIRECTOR OB/GYN	55.0				X	295,264	28,752
(34) EVA B BESSERMAN MD MEDICAL DIRECTOR ICU	55.0				X	266,135	32,545
(35) LLOYD DAVIS MD MEDICAL DIRECTOR INFORMATICS	55.0				X	261,246	27,863
(36) AKHTAR HOSSAIN MD MEDICAL DIRECTOR ADULT PSYCH	55.0				X	251,882	16,798
(37) PATRICK ROWAN MD PSYCHIATRIST	55.0				X	210,075	31,705

(A) Name and business address	(B) Description of services	(C) Compensation
SILLS CUMMIS GROSS 1 RIVERFRONT PLAZA NEWARK,NJ07102	LEGAL	1,069,604
HCSC LAUNDRY PO BOX 25092 LEHIGH VALLEY,PA18002	LAUNDRY/LINEN	948,451
MAYO MEDICAL LABORATORIES PO BOX 9146 MINNEAPOLIS,MN55480	LABORATORY	850,382
APOLLO HEALTH STREET 2 BRIGHTON ROAD SUITE 300 CLIFTON,NJ07012	COLLECTION	745,574
GENOVA BURNS GIANTOMASI 494 BROAD STREET NEWARK,NJ07102	LEGAL	719,949
2 Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 of compensation from the organization 53

Do not include amounts reported on lines 6b, 7b, 8b, 9b, and 10b of Part VIII.	(A) Total expenses	(B) Program service expenses	(C) Management and general expenses	(D) Fundraising expenses
1	Grants and other assistance to governments and organizations in the United States. See Part IV, line 21	303,726	303,726
2	Grants and other assistance to individuals in the United States. See Part IV, line 22	0
3	Grants and other assistance to governments, organizations, and individuals outside the United States. See Part IV, lines 15 and 16	0
4	Benefits paid to or for members	0
5	Compensation of current officers, directors, trustees, and key employees ....	4,934,389	4,440,951	493,438	0
6	Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....	0
7	Other salaries and wages	107,989,687	97,190,717	10,798,970
8	Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) ....	2,435,480	2,191,932	243,548
9	Other employee benefits .......	11,346,623	10,211,960	1,134,663
10	Payroll taxes ...........	9,440,224	8,496,202	944,022
11	Fees for services (non-employees):
a	Management ......	499,632	449,669	49,963
b	Legal .........	1,300,259	1,170,233	130,026
c	Accounting ...........	197,000	177,300	19,700
d	Lobbying ...........	25,105	22,595	2,510
e	Professional fundraising. See Part IV, line 17..	0
f	Investment management fees ......	62,352	56,117	6,235
g	Other ..........	9,821,607	8,839,446	982,161
12	Advertising and promotion ....	1,544,372	1,389,935	154,437
13	Office expenses .......	28,177,516	25,359,764	2,817,752
14	Information technology ......	590,562	531,506	59,056
15	Royalties ..	0
16	Occupancy ...........	444,188	399,769	44,419
17	Travel ............	236,267	212,640	23,627
18	Payments of travel or entertainment expenses for any federal, state, or local public officials ......	0
19	Conferences, conventions, and meetings ....	199,466	179,519	19,947
20	Interest ...........	4,879,316	4,391,384	487,932
21	Payments to affiliates .......	0
22	Depreciation, depletion, and amortization .....	13,009,821	11,708,839	1,300,982
23	Insurance ..............	2,548,387	2,293,548	254,839
24	Other expenses. Itemize expenses not covered above (List miscellaneous expenses in line 24f. If line 24f amount exceeds 10% of line 25, column (A) amount, list line 24f expenses on Schedule O.)
a	MEDICAL SUPPLIES	24,727,038	22,254,334	2,472,704	0
b	PROV FOR DOUBTFUL COLLECTIONS	11,511,671	10,360,504	1,151,167	0
c	REPAIRS AND MAINTENANCE	9,865,298	8,878,768	986,530	0
d	CONTRACTED SERVICES	5,874,020	5,286,618	587,402	0
e
f	All other expenses	12,947,888	11,653,099	1,294,789
25	Total functional expenses. Add lines 1 through 24f	264,911,894	238,451,075	26,460,819	0
26	Joint costs. Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation. Check here if following SOP 98-2 (ASC 958-720).

Part X Balance Sheet
	1	Cashnon-interest-bearing ..........	5,045	1	5,045
2	Savings and temporary cash investments .......	6,872,214	2	5,833,088
3	Pledges and grants receivable, net .........	0	3	0
4	Accounts receivable, net .........	33,809,000	4	28,137,568
5	Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
	Schedule L ..........	0	5	0
6	Receivables from other disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B). Complete Part II of
	Schedule L ..........	0	6	0
7	Notes and loans receivable, net .............	5,166,104	7	2,459,911
8	Inventories for sale or use ..............	3,560,792	8	3,578,760
9	Prepaid expenses and deferred charges ............	1,380,460	9	1,584,822
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	276,974,439
b	Less: accumulated depreciation. .....	10b	143,742,351	135,293,616	10c	133,232,088
11	Investments—publicly traded securities ..........	0	11	0
12	Investments—other securities. See Part IV, line 11 ......	0	12	0
13	Investments—program-related. See Part IV, line 11 ..	51,406,407	13	49,114,662
14	Intangible assets .........	1,446,307	14	3,189,525
15	Other assets. See Part IV, line 11 ...........	1,775,497	15	2,405,736
16	Total assets. Add lines 1 through 15 (must equal line 34)...	240,715,442	16	229,541,205
	17	Accounts payable and accrued expenses .	36,623,930	17	34,019,994
18	Grants payable ..........	0	18	0
19	Deferred revenue ..........	5,290,774	19	4,949,946
20	Tax-exempt bond liabilities ..........	108,451,948	20	106,615,497
21	Escrow or custodial account liability. Complete Part IV of Schedule D..	0	21	0
22	Payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........	0	22	0
23	Secured mortgages and notes payable to unrelated third parties ..	1,876,284	23	958,573
24	Unsecured notes and loans payable to unrelated third parties ....	0	24	0
25	Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D.....	30,150,302	25	37,208,719
26	Total liabilities. Add lines 17 through 25.....	182,393,238	26	183,752,729
		Organizations that follow SFAS 117, check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets .....	54,643,137	27	41,009,801
28	Temporarily restricted net assets .....	2,539,200	28	3,638,808
29	Permanently restricted net assets .....	1,139,867	29	1,139,867
	Organizations that do not follow SFAS 117, check here and complete lines 30 through 34.
30	Capital stock or trust principal, or current funds .....		30
31	Paid-in or capital surplus, or land, building or equipment fund .....		31
32	Retained earnings, endowment, accumulated income, or other funds		32
33	Total net assets or fund balances .....	58,322,204	33	45,788,476
34	Total liabilities and net assets/fund balances .....	240,715,442	34	229,541,205

- TIN:

SCHEDULE A
(Form 990 or 990EZ)

Department of the Treasury
Internal Revenue Service

Public Charity Status and Public Support

Complete if the organization is a section 501(c)(3) organization or a section
4947(a)(1) nonexempt charitable trust.

Attach to Form 990 or Form 990-EZ. right arrow

See separate instructions.

OMB No. 1545-0047

2011

Open to Public
Inspection

Name of the organization

SOMERSET MEDICAL CENTER

Employer identification number

22-1487350

Part I

Reason for Public Charity Status (All organizations must complete this part.) See instructions

The organization is not a private foundation because it is: (For lines 1 through 11, check only one box.)

A church, convention of churches, or association of churches. section 170(b)(1)(A)(i).

A school described in section 170(b)(1)(A)(ii). (Attach Schedule E.)

A hospital or a cooperative hospital service organization described in section 170(b)(1)(A)(iii).

A medical research organization operated in conjunction with a hospital described in section 170(b)(1)(A)(iii). Enter the hospital's name, city, and state:

An organization operated for the benefit of a college or university owned or operated by a governmental unit described in

section 170(b)(1)(A)(iv). (Complete Part II.)

A federal, state, or local government or governmental unit described in section 170(b)(1)(A)(v).

An organization that normally receives a substantial part of its support from a governmental unit or from the general public described in

section 170(b)(1)(A)(vi). (Complete Part II.)

A community trust described in section 170(b)(1)(A)(vi). (Complete Part II.)

An organization that normally receives: (1) more than 331/3% of its support from contributions, membership fees, and gross

receipts from activities related to its exempt functions—subject to certain exceptions, and (2) no more than 331/3% of

its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses

acquired by the organization after June 30, 1975. See section 509(a)(2). (Complete Part III.)

An organization organized and operated exclusively to test for public safety. Seesection 509(a)(4).

An organization organized and operated exclusively for the benefit of, to perform the functions of, or to carry out the purposes of one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2). See section 509(a)(3). Check the box that describes the type of supporting organization and complete lines 11e through 11h.

Type I

Type II

Type III - Functionally integrated

Type III - Other

By checking this box, I certify that the organization is not controlled directly or indirectly by one or more disqualified persons other than foundation managers and other than one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2).

If the organization received a written determination from the IRS that it is a Type I, Type II or Type III supporting organization, check this box ..................................................

Since August 17, 2006, has the organization accepted any gift or contribution from any of the
following persons?

(i) a person who directly or indirectly controls, either alone or together with persons described in (ii)

Yes

and (iii) below, the governing body of the the supported organization? ................

11g(i)

(ii) a family member of a person described in (i) above? ......................

11g(ii)

(iii) a 35% controlled entity of a person described in (i) or (ii) above? ................

11g(iii)

Provide the following information about the supported organization(s).

(i) Name of supported organization	(ii) EIN	(iv) Is the organization in col. (i) listed in your governing document?		(v) Did you notify the organization in col. (i) of your support?		(vi) Is the organization in col. (i) organized in the U.S.?		(vii) Amount of support?
(i) Name of supported organization	(ii) EIN	Yes	No	Yes	No	Yes	No	(vii) Amount of support?


Total

For Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 11285F

Schedule A (Form 990 or 990-EZ) 2011

Page 2

Part II

Support Schedule for Organizations Described in IRC 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi)
(Complete only if you checked the box on line 5, 7, or 8 of Part I or if the organization failed to qualify under Part III. If the organization fails to qualify under the tests listed below, please complete Part III.)

Section A. Public Support

Calendar year(or fiscal year beginning in)		(a) 2007	(b) 2008	(c) 2009	(d) 2010	(e) 2011	(f) Total
1	Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") ....
2	Tax revenues levied for the organization's benefit and either paid to or expended on its behalf.......
3	The value of services or facilities furnished by a governmental unit to the organization without charge..
4	Total. Add lines 1 through 3..
5	The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included on line 1 that exceeds 2% of the amount shown on line 11, column (f)..
6	Public Support. Subtract line 5 from line 4.

Section B. Total Support

Calendar year(or fiscal year beginning in)		(a) 2007	(b) 2008	(c) 2009	(d) 2010	(e) 2011	(f) Total
7	Amounts from line 4..
8	Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
9	Net income from unrelated business activities, whether or not the business is regularly carried on..
10	Other income. (Explain in Part IV.) Do not include gain or loss from the sale of capital assets..
11	Total support (Add lines 7 through 10).

Gross receipts from related activities, etc. (See instructions.) ..................

First Five Years If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a 501(c)(3) organization,
check this box and stop here.......................................... right arrow

Section C. Computation of Public Support Percentage

Public Support Percentage for 2010 (line 6 column (f) divided by line 11 column (f)) .........

Public Support Percentage for 2009 Schedule A, Part II, line 14 ...............

16a

33 1/3% support test—2011. If the organization did not check the box on line 13, and line 14 is 33 1/3% or more, check this box
and stop here. The organization qualifies as a publicly supported organization ...................... right arrow

33 1/3% support test—2010. If the organization did not check the box on line 13 or 16a, and line 15 is 33 1/3% or more, check this
box and stop here. The organization qualifies as a publicly supported organization ..................... right arrow

17a

10%-facts-and-circumstances test—2011. If the organization did not check a box on line 13, 16a, or 16b and line 14
is 10% or more, and if the organization meets the "facts and circumstances" test, check this box and stop here. Explain
in Part IV how the organization meets the "facts and circumstances" test. The organization qualifies as a publicly supported
organization .................................................. right arrow

10%-facts-and-circumstances test—2010. If the organization did not check a box on line 13, 16a, 16b, or 17a and line
15 is 10% or more, and if the organization meets the "facts and circumstances" test, check this box and stop here.
Explain in Part IV how the organization meets the "facts and circumstances" test. The organization qualifies as a publicly
supported organization .............................................. right arrow

Private Foundation If the organization did not check a box on line 13, 16a, 16b, 17a or 17b, check this box and see
instructions ................................................... right arrow

Schedule A (Form 990 or 990-EZ) 2011

Page 3

Part III

Support Schedule for Organizations Described in IRC 509(a)(2)
(Complete only if you checked the box on line 9 of Part I or if the organization failed to qualify under Part II. If the organization fails to qualify under the tests listed below, please complete Part II.)

Section A. Public Support

Calendar year(or fiscal year beginning in)		(a) 2007	(b) 2008	(c) 2009	(d) 2010	(e) 2011	(f) Total
1	Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") .
2	Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose......
3	Gross receipts from activities that are not an unrelated trade or business under section 513..
4	Tax revenues levied for the organization's benefit and either paid to or expended on its behalf...
5	The value of services or facilities furnished by a governmental unit to the organization without charge..
6	Total. Add lines 1 through 5.
7a	Amounts included on lines 1, 2, and 3 received from disqualified persons...
b	Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year.
c	Add lines 7a and 7b..
8	Public Support (Subtract line 7c from line 6.)

Section B. Total Support

Calendar year (or fiscal year beginning in)		(a) 2007	(b) 2008	(c) 2009	(d) 2010	(e) 2011	(f) Total
9	Amounts from line 6...
10a	Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
b	Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975.
c	Add lines 10a and 10b.
11	Net income from unrelated business activities not included in line 10b, whether or not the business is regularly carried on.
12	Other income. Do not include gain or loss from the sale of capital assets (Explain in Part IV.)
13	Total support (Add lines 9, 10c, 11 and 12.).

Section C. Computation of Public Support Percentage

Public Support Percentage for 2011 (line 8 column (f) divided by line 13 column (f)) .........

Public support percentage from 2010 Schedule A, Part III, line 15 ...............

Section D. Computation of Investment Income Percentage

Investment income percentage for 2011 (line 10c column (f) divided by line 13 column (f)) ......

Investment income percentage from 2010 Schedule A, Part III, line 17 .............

19a

33 1/3% support tests—2011. If the organization did not check the box on line 14, and line 15 is more than 33 1/3% and line 17 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization .......... right arrow

33 1/3% support tests—2010. If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33 1/3% and line 18 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization .... right arrow

Private Foundation If the organization did not check a box on line 14, 19a or 19b, check this box and see instructions ..... right arrow

Schedule A (Form 990 or 990-EZ) 2011

Page 4

Part IV

Supplemental Information. Supplemental Information. Complete this part to provide the explanation required by Part II, line 10; Part II, line 17a or 17b; or Part III, line 12. Also complete this part for any additional information. (See instructions).

Facts And Circumstances Test

Explanation

Schedule A (Form 990 or 990-EZ) 2011

Additional Data

Software ID:
Software Version:

- TIN:

Schedule B
(Form 990, 990-EZ,
or 990-PF)

Department of the Treasury
Internal Revenue Service

Schedule of Contributors

Attach to Form 990, 990-EZ, or 990-PF.

OMB No. 1545-0047

2011

Name of organization

SOMERSET MEDICAL CENTER

Employer identification number

22-1487350

Organization type (check one):

Filers of:

Section:

Form 990 or 990-EZ

501(c)( ) (enter number) organization

4947(a)(1) nonexempt charitable trust not treated as a private foundation

527 political organization

Form 990-PF

501(c)(3) exempt private foundation

4947(a)(1) nonexempt charitable trust treated as a private foundation

501(c)(3) taxable private foundation

Check if your organization is covered by the General Rule or a Special Rule.
Note. Only a section 501(c)(7), (8), or (10) organization can check boxes for both the General Rule and a Special Rule. See instructions.

General Rule

For an organization filing Form 990, 990-EZ, or 990-PF that received, during the year, $5,000 or more (in money or
property) from any one contributor. Complete Parts I and II.

Special Rules

For a section 501(c)(3) organization filing Form 990 or 990-EZ that met the 33¹/3% support test of the regulations
under sections 509(a)(1) and 170(b)(1)(A)(vi), and received from any one contributor, during the year, a contribution of the
greater of (1) $5,000 or (2) 2% of the amount on (i) Form 990, Part VIII, line 1h, or (ii) Form 990-EZ, line 1. Complete Parts I and II.

For a section 501(c)(7), (8), or (10) organization filing Form 990, or 990-EZ that received from any one contributor,
during the year, total contributions of more than $1,000 for use exclusively for religious, charitable,
scientific, literary, or educational purposes, or the prevention of cruelty to children or animals. Complete Parts I, II, and
III.

For a section 501(c)(7), (8), or (10) organization filing Form 990, or 990-EZ that received from any one contributor,
during the year, contributions for use exclusively for religious, charitable, etc., purposes, but these contributions did
not total to more than $1,000. If this box is checked, enter here the total contributions that were received during
the year for an exclusively religious, charitable, etc., purpose. Do not complete any of the parts unless the General Rule
applies to this organization because it received nonexclusively religious, charitable, etc., contributions of $5,000 or more
during the year. ......................... Arrow Bullet

Caution. An Organization that is not covered by the General Rule and/or the Special Rules does not file Schedule B (Form 990,
990-EZ, or 990-PF), but it must answer “No” on Part IV, line 2, of its Form 990; or check the box on line H of its
Form 990-EZ or on Part I, line 2, of its Form 990-PF, to certify that it does not meet the filing requirements of Schedule B (Form 990,
990-EZ, or 990-PF).

For Paperwork Reduction Act Notice, see the Instructions
for Form 990, 990-EZ, or 990-PF.

Cat. No. 30613XSchedule B (Form 990, 990-EZ, or 990-PF) (2011)

Page 2

Name of organization SOMERSET MEDICAL CENTER
Schedule B (Form 990, 990-EZ, or 990-PF) (2011)
Part I	Contributors (see Instructions). Use duplicate copies of Part I if additional space is needed.
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
RESTRICTED	RESTRICTED RESTRICTED RESTRICTED RESTRICTED, RESTRICTED RESTRICTED	$RESTRICTED	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
Schedule B (Form 990, 990-EZ, or 990-PF) (2011)

Page 3

Name of organization SOMERSET MEDICAL CENTER
Schedule B (Form 990, 990-EZ, or 990-PF) (2011)
Part II	Noncash Property (see Instructions). Use duplicate copies of Part II if additional space is needed.
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions).	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions).	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions).	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions).	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions).	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions).	(d) Date received
		$
Schedule B (Form 990, 990-EZ, or 990-PF) (2011)

Page 4

Schedule B (Form 990, 990-EZ, or 990-PF) (2011)

Name of organization
SOMERSET MEDICAL CENTER

Employer identification number

22-1487350

Part III

Exclusively religious, charitable, etc., individual contributions to section 501(c)(7), (8), or (10) organizations
that total more than $1,000 for the year. Complete columns (a) through (e) and the following line entry.
For organizations completing Part III, enter the total of exclusively religious, charitable, etc.,
contributions of $1,000 or less for the year. (Enter this information once. See instructions.) Arrow Bullet

$
Use duplicate copies of Part III if additional space is needed

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

(e) Transfer of gift
Transferee's name, address, and ZIP 4	Relationship of transferor to transferee

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

(e) Transfer of gift
Transferee's name, address, and ZIP 4	Relationship of transferor to transferee

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

(e) Transfer of gift
Transferee's name, address, and ZIP 4	Relationship of transferor to transferee

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

(e) Transfer of gift
Transferee's name, address, and ZIP 4	Relationship of transferor to transferee

Schedule B (Form 990, 990-EZ, or 990-PF) (2011)

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE C
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Political Campaign and Lobbying Activities

For Organizations Exempt From Income Tax Under section 501(c) and section 527
SchCMd Bullet

Complete if the organization is described below.
SchCMd Bullet

Attach to Form 990 or Form 990-EZ. SchCMd Bullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public
Inspection

If the organization answered “Yes” to Form 990, Part IV, Line 3, or Form 990-EZ, Part V, line 46 (Political Campaign Activities), then
Round Bullet

Section 501(c)(3) organizations: Complete Parts I-A and B. Do not complete Part I-C.
Round Bullet

Section 501(c) (other than section 501(c)(3)) organizations: Complete Parts I-A and C below. Do not complete Part I-B.
Round Bullet

Section 527 organizations: Complete Part I-A only.
If the organization answered “Yes” to Form 990, Part IV, Line 4, or Form 990-EZ, Part VI, line 47 (Lobbying Activities), then
Round Bullet

Section 501(c)(3) organizations that have filed Form 5768 (election under section 501(h)) Complete Part II-A. Do not complete Part II-B.
Round Bullet

Section 501(c)(3) organizations that have NOT filed Form 5768 (election under section 501(h)): Complete Part II-B. Do not complete Part II-A.
If the organization answered “Yes” to Form 990, Part IV, Line 5 (Proxy Tax) or Form 990-EZ, line 35c (Proxy Tax), then
Round Bullet

Section 501(c)(4), (5), or (6) organizations: Complete Part III.

Name of the organization

SOMERSET MEDICAL CENTER

Employer identification number

22-1487350

Part I-A

Complete if the organization is exempt under section 501(c) or is a section 527 organization.

Provide a description of the organization’s direct and indirect political campaign activities in Part IV.

Political expenditures .................................... SchCMd Bullet

Volunteer hours ........................................

Part I-B

Complete if the organization is exempt under section 501(c)(3).

Enter the amount of any excise tax incurred by the organization under section 4955 ......... SchCMd Bullet

Enter the amount of any excise tax incurred by organization managers under section 4955 ...... SchCMd Bullet

If the organization incurred a section 4955 tax, did it file Form 4720 for this year? ..............

Yes No

Was a correction made? .........................................

Yes No

If "Yes," describe in Part IV.

Part I-C

Complete if the organization is exempt under section 501(c) except section 501(c)(3).

Enter the amount directly expended by the filing organization for section 527 exempt function activities SchCMd Bullet

Enter the amount of the filing organization's funds contributed to other organizations for section 527 exempt function activities ................................... SchCMd Bullet

Total exempt function expenditures. Add lines 1 and 2. Enter here and on Form 1120-POL, line 17b.. SchCMd Bullet

Did the filing organization file Form 1120-POL for this year? ..........................

Yes No

Enter the names, addresses and employer identification number (EIN) of all section 527 political organizations to which the filing
organization made payments. For each organization listed, enter the amount paid from the filing organization’s funds. Also enter the amount of political contributions received that were promptly and directly delivered to a separate political organization, such as a separate segregated fund or a political action committee (PAC). If additional space is needed, provide information in Part IV.

(a) Name	(b) Address	(c) EIN	(d) Amount paid from filing organization's funds. If none, enter -0-.	(e) Amount of political contributions received and promptly and directly delivered to a separate political organization. If none, enter -0-.

For Privacy Act and Paperwork Reduction Act Notice, see the instructions for Form 990.

Cat. No. 50084S

Schedule C (Form 990 or 990-EZ) 2011

Page 2

Part II-A

Complete if the organization is exempt under section 501(c)(3) and filed Form 5768 (election under section 501(h)).

A Check if the filing organization belongs to an affiliated group (and list in Part IV each affiliated group member's name, address, EIN, expenses, and share of excess lobbying expenditures).
B Check if the filing organization checked box A and "limited control" provisions apply.

Limits on Lobbying Expenditures (The term "expenditures" means amounts paid or incurred.)		(a) Filing organization's totals	(b) Affiliated group totals
1a	Total lobbying expenditures to influence public opinion (grass roots lobbying) ......
b	Total lobbying expenditures to influence a legislative body (direct lobbying) .......	25,105	25,105
c	Total lobbying expenditures (add lines 1a and 1b) ...................	25,105	25,105
d	Other exempt purpose expenditures ........................	264,886,789	267,726,527
e	Total exempt purpose expenditures (add lines 1c and 1d) ...............	264,911,894	267,751,632
f	Lobbying nontaxable amount. Enter the amount from the following table in both columns.	1,000,000	1,000,000
	If the amount on line 1e, column (a) or (b) is:The lobbying nontaxable amount is:
	Not over $500,00020% of the amount on line 1e.
	Over $500,000 but not over $1,000,000$100,000 plus 15% of the excess over $500,000.
	Over $1,000,000 but not over $1,500,000$175,000 plus 10% of the excess over $1,000,000.
	Over $1,500,000 but not over $17,000,000$225,000 plus 5% of the excess over $1,500,000.
	Over $17,000,000$1,000,000.

g	Grassroots nontaxable amount (enter 25% of line 1f) .................	250,000	250,000
h	Subtract line 1g from line 1a. If zero or less, enter -0-. ................
i	Subtract line 1f from line 1c. If zero or less, enter -0-. ................
j	If there is an amount other than zero on either line 1h or line 1i, did the organization file Form 4720 reporting section 4911 tax for this year? ......................................		Yes No

4-Year Averaging Period Under Section 501(h) (Some organizations that made a section 501(h) election do not have to complete all of the five columns below. See the instructions for lines 2a through 2f on page 4.)
Lobbying Expenditures During 4-Year Averaging Period
	Calendar year (or fiscal year beginning in)	(a) 2008	(b) 2009	(c) 2010	(d) 2011	(e) Total

2a	Lobbying non-taxable amount	1,000,000	1,000,000	1,000,000	1,000,000	4,000,000

b	Lobbying ceiling amount (150% of line 2a, column(e))					6,000,000

c	Total lobbying expenditures	52,000	194,678	14,134	25,105	285,917

d	Grassroots nontaxable amount	250,000	250,000	250,000	250,000	1,000,000

e	Grassroots ceiling amount (150% of line 2d, column (e))					1,500,000

f	Grassroots lobbying expenditures

Schedule C (Form 990 or 990-EZ) 2011

Page 3

Part II-B

Complete if the organization is exempt under section 501(c)(3) and has NOT filed Form 5768 (election under section 501(h)).

For each “Yes” response to lines 1a through 1i below, provide in Part IV a detailed description of the lobbying activity.

(a)

Yes

(b)

Amount

During the year, did the filing organization attempt to influence foreign, national, state or local legislation, including any attempt to influence public opinion on a legislative matter or referendum, through the use of:

Volunteers? .........................................

Paid staff or management (include compensation in expenses reported on lines 1c through 1i)? ....

Media advertisements? ....................................

Mailings to members, legislators, or the public? .........................

Publications, or published or broadcast statements? .......................

Grants to other organizations for lobbying purposes? .......................

Direct contact with legislators, their staffs, government officials, or a legislative body? ........

Rallies, demonstrations, seminars, conventions, speeches, lectures, or any similar means? ......

Other activities? ..........................

Total. Add lines 1c through 1i ...............................

Did the activities in line 1 cause the organization to be not described in section 501(c)(3)? .....

If "Yes," enter the amount of any tax incurred under section 4912 .................

If "Yes," enter the amount of any tax incurred by organization managers under section 4912 .....

If the filing organization incurred a section 4912 tax, did it file Form 4720 for this year? .......

Part III-A

Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6).

Yes

Were substantially all (90% or more) dues received nondeductible by members? ................

Did the organization make only in-house lobbying expenditures of $2,000 or less? ................

Did the organization agree to carry over lobbying and political expenditures from the prior year? ..........

Part III-B

Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6) and if either (a) BOTH Part III-A, lines 1 and 2 are answered “No” OR (b) Part III-A, line 3 is answered “Yes”.

Dues, assessments and similar amounts from members .....................

Section 162(e) nondeductible lobbying and political expenditures (do not include amounts of political
expenses for which the section 527(f) tax was paid).

Current year .........................................

Carryover from last year ....................................

Total ...........................................

Aggregate amount reported in section 6033(e)(1)(A) notices of nondeductible section 162(e) dues .

If notices were sent and the amount on line 2c exceeds the amount on line 3, what portion of the excess does the organization agree to carryover to the reasonable estimate of nondeductible lobbying and political expenditure next year? ................................

Taxable amount of lobbying and political expenditures (see instructions) ..............

Part IV

Supplemental Information

Complete this part to provide the descriptions required for Part l-A, line 1; Part l-B, line 4; Part l-C, Part II-A; line 5; and Part ll-B, line 1.
Also, complete this part for any additional information.

Identifier	Return Reference	Explanation

Schedule C (Form 990 or 990EZ) 2011

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE D
(Form 990)

Department of the Treasury
Internal Revenue Service

Supplemental Financial Statements

Complete if the organization answered "Yes," to Form 990,
Part IV, line 6, 7, 8, 9, 10, 11a, 11b, 11c, 11d, 11e, 11f, 12a, or 12b
SchDMd Bullet

Attach to Form 990. SchDMd Bullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization

SOMERSET MEDICAL CENTER

Employer identification number

22-1487350

Part I

Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Complete if the organization answered "Yes" to Form 990, Part IV, line 6.

		(a) Donor advised funds	(b) Funds and other accounts
1	Total number at end of year .......
2	Aggregate contributions to (during year) ...
3	Aggregate grants from (during year) ...
4	Aggregate value at end of year .......

Did the organization inform all donors and donor advisors in writing that the assets held in donor advised
funds are the organization's property, subject to the organization's exclusive legal control? ............

Yes No

Did the organization inform all grantees, donors, and donor advisors in writing that grant funds can be
used only for charitable purposes and not for the benefit of the donor or donor advisor, or for any other purpose conferring impermissible private benefit? ...................................

Yes No

Part II

Conservation Easements. Complete if the organization answered "Yes" to Form 990, Part IV, line 7.

Purpose(s) of conservation easements held by the organization (check all that apply).

Preservation of land for public use (e.g., recreation or education) Preservation of an historically important land area

Protection of natural habitat Preservation of a certified historic structure

Preservation of open space

Complete lines 2a through 2d if the organization held a qualified conservation contribution in the form of a conservation easement on the last day of the tax year.


a	Total number of conservation easements .......................	2a
b	Total acreage restricted by conservation easements ..................	2b
c	Number of conservation easements on a certified historic structure included in (a) .....	2c
d	Number of conservation easements included in (c) acquired after 8/17/06, and not on a historic structure listed in the National Register ....................	2d

Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during
the tax year SchDMd Bullet

Number of states where property subject to conservation easement is located SchDMd Bullet

Does the organization have a written policy regarding the periodic monitoring, inspection, handling of violations, and
enforcement of the conservation easements it holds? .............................

Yes No

Staff and volunteer hours devoted to monitoring, inspecting and enforcing conservation easements during the year SchDMd Bullet

Amount of expenses incurred in monitoring, inspecting, and enforcing conservation easements during the year
SchDMd Bullet

Does each conservation easement reported on line 2(d) above satisfy the requirements of section
170(h)(4)(B)(i) and 170(h)(4)(B)(ii)? ....................................

Yes No

In Part XIV, describe how the organization reports conservation easements in its revenue and expense statement, and
balance sheet, and include, if applicable, the text of the footnote to the organization’s financial statements that describes
the organization’s accounting for conservation easements.

Part III

Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets.
Complete if the organization answered "Yes" to Form 990, Part IV, line 8.

If the organization elected, as permitted under SFAS 116 (ASC 958), not to report in its revenue statement and balance sheet works of
art, historical treasures, or other similar assets held for public exhibition, education or research in furtherance of public service,
provide, in Part XIV, the text of the footnote to its financial statements that describes these items.

If the organization elected, as permitted under SFAS 116 (ASC 958), to report in its revenue statement and balance sheet works of art,
historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service,
provide the following amounts relating to these items:

(i)

Revenues included in Form 990, Part VIII, line 1 ........................ SchDMd Bullet

(ii)

Assets included in Form 990, Part X .............................. SchDMd Bullet

If the organization received or held works of art, historical treasures, or other similar assets for financial gain, provide the
following amounts required to be reported under SFAS 116 (ASC 958), relating to these items:

Revenues included in Form 990, Part VIII, line 1 .......................... SchDMd Bullet

Assets included in Form 990, Part X ............................... SchDMd Bullet

For Privacy Act and Paperwork Reduction Act Notice, see the Intructions for Form 990

Cat. No. 52283D

Schedule D (Form 990) 2011

Page 2

Part III

Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued)

Using the organization’s accession and other records, check any of the following that are a significant use of its collection
items (check all that apply):

Public exhibition

Loan or exchange programs

Scholarly research

Other

Preservation for future generations

Provide a description of the organization’s collections and explain how they further the organization’s exempt purpose in
Part XIV.

During the year, did the organization solicit or receive donations of art, historical treasures or other similar
assets to be sold to raise funds rather than to be maintained as part of the organization’s collection?........

Yes No

Part IV

Escrow and Custodial Arrangements. Complete if the organization answered "Yes" to Form 990,
Part IV, line 9, or reported an amount on Form 990, Part X, line 21.

Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets not
included on Form 990, Part X? ....................................

Yes No

If "Yes," explain the arrangement in Part XIV and complete the following table:


c	Beginning balance .................................	1c
d	Additions during the year ..............................	1d
e	Distributions during the year .............................	1e
f	Ending balance ...................................	1f

Did the organization include an amount on Form 990, Part X, line 21? .....................

Yes No

If “Yes,” explain the arrangement in Part XIV.

Part V

Endowment Funds. Complete if the organization answered "Yes" to Form 990, Part IV, line 10.

		(a)Current Year	(b)Prior Year	(c)Two Years Back	(d)Three Years Back
1a	Beginning of year balance ....	3,679,067	4,087,814	4,018,605	3,607,117
b	Contributions ........	969,553	1,798,795	3,045,098	3,119,689
c	Net investment earnings, gains, and losses ...	787,270	-920,605	162,277	-334,396
d	Grants or scholarships .....
e	Other expenditures for facilities and programs ........	657,215	1,286,937	3,138,166	2,373,805
f	Administrative expenses ....
g	End of year balance ......	4,778,675	3,679,067	4,087,814	4,018,605

Provide the estimated percentage of the year end balance (line 1g) held as:

Board designated or quasi-endowment SchDMd Bullet

0 %

Permanent endowment SchDMd Bullet

23.850 %

Temporarily restricted endowment SchDMd Bullet

76.150 %

The percentages in lines 2a, 2b, and 2c should equal 100%.

Are there endowment funds not in the possession of the organization that are held and administered for the
organization by:

Yes

(i) unrelated organizations ........................

3a(i)

(ii) related organizations ........................

3a(ii)

If "Yes" to 3a(ii), are the related organizations listed as required on Schedule R? .........

Describe in Part XIV the intended uses of the organization's endowment funds.

Part VI

Land, Buildings, and Equipment. See Form 990, Part X, line 10.

Description of property		(b)Cost or other basis (other)	(c) Accumulated depreciation	(d) Book value
1a	Land .................	1,347,062		1,347,062
b	Buildings ................	145,810,048	48,373,606	97,436,442
c	Leasehold improvements ............	1,767,171	231,334	1,535,837
d	Equipment ................	124,035,527	95,137,411	28,898,116
e	Other .................	4,014,631	0	4,014,631
Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10(c).).......				133,232,088

Schedule D (Form 990) 2011

Page 3

Part VII

InvestmentsOther Securities. See Form 990, Part X, line 12.

(a) Description of security or category (including name of security)		(b)Book value	(c) Method of valuation: Cost or end-of-year market value
(1)Financial derivatives
(2)Closely-held equity interests
Other








Total. (Column (b) must equal Form 990, Part X, col. (B) line 12.)

Part VIII

InvestmentsProgram Related. See Form 990, Part X, line 13.

(a) Description of investment type	(b) Book value	(c) Method of valuation: Cost or end-of-year market value
(1) TAX-EXEMPT ORGANIZATION	2,909,397	F
(2) LIMITED USE	11,443,532	F
(3) LIMITED USE	2,068,491	F
(4) CORPORATE BONDS; LIMITED USE	853,307	F
(5) CASH AND CASH EQUIVALENTS	3,755,113	F
(6) U.S. GOVERNMENT OBLIGATIONS	101,279	F
(7) CORPORATE BONDS	260,216	F
(8) MUTUAL FUNDS	27,723,327	F

Total. (Column (b) must equal Form 990, Part X, col.(B) line 13.)	49,114,662

Part IX

Other Assets. See Form 990, Part X, line 15.

(a) Description				(b) Book value









Total. (Column (b) must equal Form 990, Part X, col.(B) line 15.)...........

Part X

Other Liabilities. See Form 990, Part X, line 25.

1.(a) Description of Liability		(b) Book value
Federal Income Taxes		0
OTHER LIABILITIES		3,838,003
SETTLEMENTS; CURRENT		984,922
SETTLEMENTS; NON-CURRENT		4,245,274
ACCRUED PENSION LIABILITY		28,140,520





Total. (Column (b) must equal Form 990, Part X, col.(B) line 25.)		37,208,719
2. Fin 48 (ASC 740) Footnote. In Part XIV, provide the text of the footnote to the organization's financial statements that reports the organization's liability for uncertain tax positions under FIN 48 (ASC740).

Schedule D (Form 990) 2011

Page 4

Part XI Reconciliation of Change in Net Assets from Form 990 to Financial Statements
1	Total revenue (Form 990, Part VIII, column (A), line 12) ....................	1	260,391,039
2	Total expenses (Form 990, Part IX, column (A), line 25) .....................	2	264,911,894
3	Excess or (deficit) for the year. Subtract line 2 from line 1 .............	3	-4,520,855
4	Net unrealized gains (losses) on investments ..........................	4
5	Donated services and use of facilities .............................	5
6	Investment expenses ...................................	6
7	Prior period adjustments ..................................	7
8	Other (Describe in Part XIV.) .................................	8	-8,982,426
9	Total adjustments (net). Add lines 4 through 8 .........................	9	-8,982,426
10	Excess or (deficit) for the year per financial statements. Combine lines 3 and 9 .........	10	-13,503,281

Part XII Reconciliation of Revenue per Audited Financial Statements With Revenue per Return
1	Total revenue, gains, and other support per audited financial statements .......			1	260,391,039
2	Amounts included on line 1 but not on Form 990, Part VIII, line 12:
a	Net unrealized gains on investments ..........	2a
b	Donated services and use of facilities .........	2b
c	Recoveries of prior year grants ...........	2c
d	Other (Describe in Part XIV.) ............	2d
e	Add lines 2a through 2d .....................			2e
3	Subtract line 2e from line 1.....................			3	260,391,039
4	Amounts included on Form 990, Part VIII, line 12, but not on line 1:
a	Investment expenses not included on Form 990, Part VIII, line 7b .	4a
b	Other (Describe in Part XIV.) ...........	4b	969,553
c	Add lines 4a and 4b.......................			4c	969,553
5	Total Revenue. Add lines 3 and 4c. (This must equal Form 990, Part I, line 12.) ......			5	261,360,592

Part XIII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return
1	Total expenses and losses per audited financial statements .............		1	264,911,894
2	Amounts included on line 1 but not on Form 990, Part IX, line 25:
a	Donated services and use of facilities ..........	2a
b	Prior year adjustments ..............	2b
c	Other losses ................	2c
d	Other (Describe in Part XIV.) ............	2d
e	Add lines 2a through 2d......................		2e
3	Subtract line 2e from line 1.....................		3	264,911,894
4	Amounts included on Form 990, Part IX, line 25, but not on line 1:
a	Investment expenses not included on Form 990, Part VIII, line 7b ..	4a
b	Other (Describe in Part XIV.) ............	4b
c	Add lines 4a and 4b.......................		4c
5	Total expenses. Add lines 3 and 4c. (This must equal Form 990, Part I, line 18.) ......		5	264,911,894

Part XIV

Supplemental Information

Complete this part to provide the descriptions required for Part II, lines 3, 5, and 9; Part III, lines 1a and 4; Part lV, lines 1b and 2b;
Part V, line 4; Part X; Part XI, line 8; Part XII, lines 2d and 4b; and Part XIII, lines 2d and 4b. Also complete this part to provide any additional information.

Identifier	Return Reference	Explanation
ENDOWMENT FUNDS	SCHEDULE D, PART V, QUESTION 4	RESTRICTED FUNDS ARE USED TO SUPPORT THE CHARITABLE ACTIVITIES AND PROGRAMS OF THE ORGANIZATION AND ITS AFFILIATES.
FIN 48 AUDITED FINANCIAL STATEMENT FOOTNOTE DISCLOSURE	SCHEDULE D; PART X	THE ORGANIZATION IS AN AFFILIATE WITHIN SOMERSET HEALTH CARE CORPORATION AND AFFILIATES ("SYSTEM"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. AN INDEPENDENT CPA FIRM AUDITED THE FINANCIAL STATEMENTS OF SOMERSET MEDICAL CENTER FOR THE YEARS ENDED DECEMBER 31, 2011 AND DECEMBER 31, 2010; RESPECTIVELY. THE FOLLOWING FOOTNOTE IS INCLUDED IN THE ORGANIZATION'S 2011 AUDITED FINANCIAL STATEMENTS THAT REPORTS THE ORGANIZATION'S LIABILITY FOR UNCERTAIN TAX POSITIONS UNDER FIN 48: THE MEDICAL CENTER FOLLOWS THE PROVISIONS OF THE AUTHORITATIVE GUIDANCE ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES. THE GUIDANCE CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN A COMPANY'S FINANCIAL STATEMENTS AND PRESCRIBES A RECOGNITION THRESHOLD OF MORE-LIKELY-THAN-NOT TO BE SUSTAINED UPON EXAMINATION BY THE APPROPRIATE TAXING AUTHORITY. MEASUREMENT OF THE TAX UNCERTAINTY OCCURS IF THE RECOGNITION THRESHOLD HAS BEEN MET. THE GUIDANCE ALSO PROVIDES GUIDANCE ON DE-RECOGNITION, CLASSIFICATION, INTEREST AND PENALTIES, ACCOUNTING IN INTERIM PERIODS, AND DISCLOSURE. MANAGEMENT HAS DETERMINED THAT THE ADOPTION OF THE GUIDANCE DID NOT HAVE A MATERIAL IMPACT ON THE FINANCIAL STATEMENTS.
OTHER CHANGES IN NET ASSETS	SCHEDULE D, PART XI; LINE 8	OTHER CHANGES IN FUND BALANCE: - CHANGE IN NET UNREALIZED GAINS AND LOSSES ON INVESTMENTS OTHER THAN TRADING SECURITIES - ($147,601) - PENSION LIABILITY ADJUSTMENT - ($9,181,264) - NET ASSETS RELEASED FROM RESTRICTIONS USED FOR PROPERTY AND EQUIPMENT - $216,384 - CHANGE IN INTEREST IN NET ASSETS OF SOMERSET MEDICAL CENTER FOUNDATION, INC.; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION - $787,270 - NET ASSETS RELEASED FROM TEMPORARY RESTRICTIONS FOR USE IN OPERATIONS - ($440,831) - NET ASSETS RELEASED FROM TEMPORARY RESTRICTIONS FOR PROPERTY AND EQUIPMENT - ($216,384)
RECONCILIATION OF REVENUE TO AUDITED FINANCIAL STATEMENTS	SCHEDULE D, PART XII; LINE 4B	OTHER AMOUNTS INCLUDED ON FORM 990, PART VIII, LINE 12 BUT NOT ON LINE 1 INCLUDE: TEMPORARILY RESTRICTED CONTRIBUTIONS - $969,553

Schedule D (Form 990) 2011

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE H (Form 990)

Department of the Treasury
Internal Revenue Service

Hospitals

Complete if the organization answered "Yes" to Form 990, Part IV, question 20.
MediumBullet

Attach to Form 990. MediumBullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization

SOMERSET MEDICAL CENTER

Employer identification number

22-1487350

Part I

Charity Care and Certain Other Community Benefits at Cost

Yes

Did the organization have a financial assistance policy during the tax year? If "No," skip to question 6a....

Yes

If "Yes," was it a written policy? .......................

Yes

If the organization had multiple hospital facilities, indicate which of the following best describes application of the financial assistance policy to its various hospital facilities during the tax year.

Applied uniformly to all hospital facilities Applied uniformly to most hospital facilities Generally tailored to individual hospital facilities

Answer the following based on the financial assistance eligibility criteria that applied to the largest number of the organization's patients during the tax year.

Did the organization use Federal Poverty Guidelines (FPG) to determine eligibility for providing free care?

If "Yes," indicate which of the following was the FPG family income limit for eligibility for free care:

Yes

100% 150% 200% Other

Did the organization use FPG to determine eligibility for providing discounted care? If "Yes," indicate which of the

following was the family income limit for eligibility for discounted care: ............

Yes

200% 250% 300% 350% 400% Other

If the organization did not use FPG to determine eligibility, describe in Part VI the income based criteria for determining eligibility for free or discounted care. Include in the description whether the organization used an asset test or other threshold, regardless of income, to determine eligibility for free or discounted care.

Did the organization's financial assistance policy that applied to the largest number of its patients during the tax year provide for free or discounted care to the "medically indigent"? ..............

Yes

Did the organization budget amounts for free or discounted care provided under its financial assistance policy during the tax year? ............................

If "Yes," did the organization's financial assistance expenses exceed the budgeted amount?......

If "Yes" to line 5b, as a result of budget considerations, was the organization unable to provide free or discountedcare to a patient who was eligibile for free or discounted care?...............

Did the organization prepare a community benefit report during the tax year?...........

Yes

If "Yes," did the organization make it available to the public? ...............

Yes

Complete the following table using the worksheets provided in the Schedule H instructions. Do not submit these worksheets with the Schedule H.

Financial Assistance and Certain Other Community Benefits at Cost

	(c) Total community benefit expense	(d) Direct offsetting revenue	(e) Net community benefit expense	(f) Percent of total expense
a Financial Assistance at cost (from Worksheet 1) ..	12,360,815	3,520,000	8,840,815	3.490 %
b Medicaid (from Worksheet 3, column a) .....	7,214,997	3,888,480	3,326,517	1.310 %
c Costs of other means-tested government programs (from Worksheet 3, column b) .
dTotal Financial Assistance and Means-Tested Government Programs .....	19,575,812	7,408,480	12,167,332	4.800 %
Other Benefits e Community health improvement services and community benefit operations (from (Worksheet 4) ....	396,734	87,223	309,511	0.120 %
f Health professions education (from Worksheet 5) ..	2,117,438	1,072,632	1,044,806	0.410 %
g Subsidized health services (from Worksheet 6) ..	659,322	415,935	243,387	0.100 %
h Research (from Worksheet 7)	279,641	75,686	203,956	0.080 %
i Cash and in-kind contributions for community benefit (from Worksheet 8) ....
jTotal Other Benefits ...	3,453,135	1,651,476	1,801,660	0.710 %
kTotal. Add lines 7d and 7j. ..	23,028,947	9,059,956	13,968,992	5.510 %

For Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat. No. 50192T Schedule H (Form 990) 2011

Schedule H (Form 990) 2011

Page

Part II

Community Building Activities Complete this table if the organization conducted any community building activities during the tax year, and describe in Part VI how its community building activities promoted the health of the communities it serves.

		(a) Number of activities or programs (optional)	(b) Persons served (optional)	(c) Total community building expense	(d) Direct offsetting revenue	(e) Net community building expense	(f) Percent of total expense
1	Physical improvements and housing
2	Economic development
3	Community support
4	Environmental improvements
5	Leadership development and training for community members
6	Coalition building
7	Community health improvement advocacy
8	Workforce development
9	Other
10	Total

Part III

Bad Debt, Medicare, & Collection Practices

Section A. Bad Debt Expense

Yes

Did the organization report bad debt expense in accordance with Heathcare Financial Management Association Statement No. 15? ..........................

Yes

Enter the amount of the organization's bad debt expense........

11,511,671

Enter the estimated amount of the organization's bad debt expense attributable to patients eligible under the organization's financial assistance policy .....

1,807,210

Provide in Part VI the text of the footnote to the organization's financial statements that describes bad debt expense. In addition, describe the costing methodology used in determining the amounts reported on lines 2 and 3, and rationale for including a portion of bad debt amounts as community benefit.

Section B. Medicare

Enter total revenue received from Medicare (including DSH and IME).....

72,664,615

Enter Medicare allowable costs of care relating to payments on line 5.....

73,306,834

Subtract line 6 from line 5. This is the surplus or (shortfall)........

-642,219

Describe in Part VI the extent to which any shortfall reported in line 7 should be treated as community benefit.Also describe in Part VI the costing methodology or source used to determine the amount reported on line 6.Check the box that describes the method used:

Cost accounting system Cost to charge ratio Other

Section C. Collection Practices

Did the organization have a written debt collection policy during the tax year? ..........

Yes

If "Yes," did the organization’s collection policy that applied to the largest number of its patients during the tax year contain provisions on the collection practices to be followed for patients who are known to qualify for financial assistance? Describe in Part VI.......................

Yes

Part IV

Management Companies and Joint Ventures

(see instructions)

(a) Name of entity	(b) Description of primary activity of entity	(c) Organization's profit % or stock ownership %	(d) Officers, directors, trustees, or key employees' profit % or stock ownership%	(e) Physicians' profit % or stock ownership %
1
2
3
4
5
6
7
8
9
10
11
12
13

Schedule H (Form 990) 2011

Page

Part VFacility Information

Section A. Hospital Facilities (list in order of size from largest to smallest) How many hospital facilities did the organization operate during the tax year?1 Name and address		Other (Describe)
1	SOMERSET MEDICAL CENTER 110 REHILL AVENUE SOMERVILLE,NJ08876	X	X	X	X

Schedule H (Form 990) 2011

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Part VFacility Information (continued)

Section B. Facility Policies and Practices.

(Complete a separate Section B for each of the hospital facilities listed in Part V, Section A)

SOMERSET MEDICAL CENTER

Name of Hospital Facility:

Line Number of Hospital Facility (from Schedule H, Part V, Section A):1

				Yes	No
Community Health Needs Assessment (Lines 1 through 7 are optional for 2011)
1	During the tax year or any prior tax year, did the hospital facility conduct a community health needs assessment (“Needs Assessment”)? If “No,” skip to question 8. .....................		1
	If “Yes,” indicate what the Needs Assessment describes (check all that apply):
	a	A definition of the community served by the hospital facility
	b	Demographics of the community
	c	Existing health care facilities and resources within the community that are available to respond to the health needs of the community
	d	How data was obtained
	e	The health needs of the community
	f	Primary and chronic disease needs and other health issues of uninsured persons, low-income persons, and minority groups
	g	The process for identifying and prioritizing community health needs and services to meet the community health needs
	h	The process for consulting with persons representing the community’s interests
	i	Information gaps that limit the hospital facility’s ability to assess the community’s health needs
	j	Other (describe in Part VI)
2	Indicate the tax year the hospital facility last conducted a Needs Assessment: 20
3	In conducting its most recent Needs Assessment, did the hospital facility take into account input from persons who represent the community served by the hospital facility? If “Yes,” describe in Part VI how the hospital facility took into account input from persons who represent the community, and identify the persons the hospital facility consulted.		3
4	Was the hospital facility’s Needs Assessment conducted with one or more other hospital facilities? If “Yes,” list the other hospital facilities in Part VI............................		4
5	Did the hospital facility make its Needs Assessment widely available to the public? ...........		5
	If “Yes,” indicate how the Needs Assessment was made widely available (check all that apply):
	a	Hospital facility’s website
	b	Available upon request from the hospital facility
	c	Other (describe in Part VI)
6	If the hospital facility addressed needs identified in its most recently conducted Needs Assessment, indicate how (check all that apply):
	a	Adoption of an implementation strategy to address the health needs of the hospital facility’s community
	b	Execution of the implementation strategy
	c	Participation in the development of a community-wide community benefit plan
	d	Participation in the execution of a community-wide community benefit plan
	e	Inclusion of a community benefit section in operational plans
	f	Adoption of a budget for provision of services that address the needs identified in the Needs Assessment
	g	Prioritization of health needs in the community
	h	Prioritization of services that the hospital facility will undertake to meet health needs in its community
	i	Other (describe in Part VI)
7	Did the hospital facility address all of the needs identified in its most recently conducted Needs Assessment? If “No,” explain in Part VI which needs it has not addressed and the reasons why it has not addressed such needs. ....		7
Financial Assistance Policy
	Did the hospital facility have in place during the tax year a written financial assistance policy that:
8	Explained eligibility criteria for financial assistance, and whether such assistance includes free or discounted care?		8	Yes
9	Used federal poverty guidelines (FPG) to determine eligibility for providing free care?...........		9	Yes
	If "Yes," indicate the FPG family income limit for eligibility for free care: 100% If "No," explain in Part VI the criteria the hospital facility used.

Schedule H (Form 990) 2011

Page

Part VFacility Information (continued)

				Yes	No
10	Used FPG to determine eligibility for providing discounted care?.................		10	Yes
	If “Yes,” indicate the FPG family income limit for eligibility for discounted care: 300.% If "No," explain in Part VI the criteria the hospital facility used.
11	Explained the basis for calculating amounts charged to patients?.................		11	Yes
	If “Yes,” indicate the factors used in determining such amounts (check all that apply):
	a	Income level
	b	Asset level
	c	Medical indigency
	d	Insurance status
	e	Uninsured discount
	f	Medicaid/Medicare
	g	State regulation
	h	Other (describe in Part VI)
12	Explained the method for applying for financial assistance?...................		12	Yes
13	Included measures to publicize the policy within the community served by the hospital facility?.......		13	Yes
	If “Yes,” indicate how the hospital facility publicized the policy (check all that apply):
	a	The policy was posted on the hospital facility’s web site
	b	The policy was attached to all billing invoices
	c	The policy was posted in the hospital facility’s emergency rooms or waiting rooms
	d	The policy was posted in the hospital facility’s admissions offices
	e	The policy was provided, in writing, to patients upon admission to the hospital facility
	f	The policy was available upon request
	g	Other (describe in Part VI)
Billing and Collections
14	Did the hospital facility have in place during the tax year a separate billing and collections policy, or a written financial assistance policy (FAP) that explained actions the hospital facility may take upon non-payment?.......		14	Yes
15	Check all of the following collection actions against an individual that were permitted under the hospital facility's policies during the tax year before making reasonable efforts to determine the patient’s eligibility under the facility’s FAP:
	a	Reporting to credit agency
	b	Lawsuits
	c	Liens on residences
	d	Body attachments
	e	Other similar actions (describe in Part VI)
16	Did the hospital facility or an authorized third party perform any of the following actions during the tax year before making reasonable efforts to determine the patient’s eligibility under the facility’s FAP?..........		16		No
	If “Yes,” check all actions in which the hospital facility or a third party engaged:
	a	Reporting to credit agency
	b	Lawsuits
	c	Liens on residences
	d	Body attachments
	e	Other similar actions (describe in Part VI)
17	Indicate which efforts the hospital facility made before initiating any of the actions checked in line 16 (check all that apply):
	a	Notified patients of the financial assistance policy upon admission
	b	Notified patients of the financial assistance policy prior to discharge
	c	Notified patients of the financial assistance policy in communications with the patients regarding the patients’ bills
	d	Documented its determination of whether patients were eligible for financial assistance under the hospital facility’s financial assistance policy
	e	Other (describe in Part VI)

Schedule H (Form 990) 2011

Page

Part VFacility Information (continued)

Policy Relating to Emergency Medical Care
				Yes	No
18	Did the hospital facility have in place during the tax year a written policy relating to emergency medical care that requires the hospital facility to provide, without discrimination, care for emergency medical conditions to individuals regardless of their eligibility under the hospital facility’s financial assistance policy?..........		18	Yes
	If “No,” indicate why:
	a	The hospital facility did not provide care for any emergency medical conditions
	b	The hospital facility’s policy was not in writing
	c	The hospital facility limited who was eligible to receive care for emergency medical conditions (describe in Part VI)
	d	Other (describe in Part VI)
Individuals Eligible for Financial Assistance
19	Indicate how the hospital facility determined, during the tax year, the maximum amounts that can be charged to FAP-eligible individuals for emergency or other medically necessary care.
	a	The hospital facility used its lowest negotiated commercial insurance rate when calculating the maximum amounts that can be charged
	b	The hospital facility used the average of it's three lowest negotiated commercial insurance rates when calculating the maximum amounts that can be charged
	c	The hospital facility used the Medicare rates when calculating the maximum amounts that can be charged
	d	Other (describe in Part VI)
20	Did the hospital facility charge any of its patients who were eligible for assistance under the hospital facility’s financial assistance policy, and to whom the hospital facility provided emergency or other medically necessary services, more than the amounts generally billed to individuals who had insurance covering such care?.........		20		No
	If “Yes,” explain in Part VI.
21	Did the hospital facility charge any of its FAP-eligible patients an amount equal to the gross charge for any services provided to that patient?...............................		21		No
	If “Yes,” explain in Part VI.

Schedule H (Form 990) 2011

Page

Part VFacility Information (continued)

Section C. Other Health Care Facilities That Are Not Licensed, Registered, or Similarly Recognized as a Hospital Facility (list in order of size, from largest to smallest) How many non-hospital health care facilities did the organization operate during the tax year?6
Name and address		Type of Facility (describe)
1	THE STEEPLECHASE CANCER CENTER 30 REHILL AVENUE SOMERVILLE,NJ08876	ONCOLOGY SERVICES
2	SLEEP FOR LIFE CENTER 331 ROUTE 206 HILLSBOROUGH,NJ08844	SLEEP TESTING
3	SMC SPORTS PERFORMANCE AND REHAB CENTER TD BANK BALLPARK 1 PATRIOTS PARK BRIDGEWATER,NJ08807	PHYSICAL THERAPY; OCCUPATIONAL THERAPY & WELLNESS TRAINING
4	SMC SPORTS INSTITUTE - PRINCETON 743 ALEXANDER ROAD SUITE 2 PRINCETON,NJ08540	PHYSICAL THERAPY; OCCUPATIONAL THERAPY
5	SMC SPORTS INSTITUTE - FLEMINGTON 361 STATE ROUTE 31 BLDG C STE 804 FLEMINGTON,NJ08822	PHYSICAL THERAPY; OCCUPATIONAL THERAPY
6	SMC SPORTS INSTITUTE - HILLSBOROUGH 1 JILL COURT BLDG 16 STE 20 HILLSBOROUGH,NJ08844	PHYSICAL THERAPY; OCCUPATIONAL THERAPY
7
8
9
10

Schedule H (Form 990) 2011

Page

Part VI

Supplemental Information

Complete this part to provide the following information.

1	Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II; Part III, lines 4, 8, and 9b; and Part V, Section B, lines 1j, 3, 4, 5c, 6i, 7, 9, 10, 11h, 13g, 15e, 16e, 17e, 18d, 19d, 20, and 21.
2	Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any needs assessments reported in Part V, Section B.
3	Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization’s financial assistance policy.
4	Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves.
5	Promotion of community health. Provide any other information important to describing how the organization’s hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.).
6	Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served.
7	State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report.

Identifier	ReturnReference	Explanation
ELIGIBILITY FOR DISCOUNTED CARE	SCHEDULE H, PART I; QUESTION 3C	THE INCOME BASED CRITERIA USED TO DETERMINE ELIGIBILITY IS PER NEW JERSEY ADMINISTRATIVE CODE 10:52 SUB CHAPTERS 11, 12 AND 13, AND BASED UPON THE 2011 FEDERAL POVERTY GUIDELINES ("FPG") (DEPARTMENT OF HEALTH AND SENIOR SERVICES). FPG ARE INCLUDED IN THE CRITERIA FOR DETERMINING ELIGIBILITY FOR CHARITY AND DISCOUNTED CARE.
COMMUNITY BENEFIT REPORT	SCHEDULE H, PART I; QUESTION 6A	NOT APPLICABLE.
SUBSIDIZED HEALTH SERVICES	SCHEDULE H, PART I; QUESTION 7G	NO COSTS RELATING TO SUBSIDIZED HEALTHCARE SERVICES ARE ATTRIBUTABLE TO ANY PHYSICIAN CLINICS.
PERCENT OF TOTAL EXPENSE	SCHEDULE H, PART I; QUESTION 7, COLUMN (F)	THE BAD DEBT EXPENSE INCLUDED ON FORM 990, PART IX, LINE 25, COLUMN (A), BUT SUBTRACTED FOR PURPOSES OF CALCULATING THE PERCENTAGE IN THIS COLUMN IS $11,511,671.
CHARITY CARE AND CERTAIN OTHER COMMUNITY BENEFIT COST	SCHEDULE H, PART I; QUESTION 7	WORKSHEET 2 WAS USED FOR THE COST TO CHARGE RATIO.
COMMUNITY BUILDING ACTIVITIES	SCHEDULE H, PART II	COMMUNITY BUILDING ACTIVITIES UNDERTAKEN BY THIS ORGANIZATION IMPROVE THE MEDICAL AND SOCIOECONOMIC WELL-BEING OF THE COMMUNITIES IN OUR CARE. THIS IS ACCOMPLISHED THROUGH SERVICE ON STATE AND REGIONAL ADVOCACY COMMITTEES AND BOARDS, VOLUNTEERISM WITH LOCAL COMMUNITY-BASED NON-PROFIT ADVOCACY GROUPS, AND PARTICIPATION IN CONFERENCES AND OTHER EDUCATIONAL ACTIVITIES TO PROMOTE UNDERSTANDING OF THE ROOT CAUSES OF HEALTH CONCERNS. THIS ORGANIZATION PROVIDES EDUCATIONAL MATERIALS, CONDUCTS COMMUNITY HEALTH FAIRS AND HOLDS HEALTH EDUCATION SEMINARS AND OUTREACH SESSIONS FOR ITS PATIENTS AND FOR COMMUNITY PROVIDERS. PRESENTATIONS ARE PROVIDED BY PHYSICIANS, NURSES AND OTHER HEALTHCARE PROFESSIONALS.
BAD DEBT EXPENSE	SCHEDULE H, PART III; QUESTION 4	BAD DEBT EXPENSE WAS CALCULATED USING THE PROVIDER'S BAD DEBT EXPENSE FROM FINANCIAL STATEMENT, NET OF ACCOUNTS WRITTEN OFF AT CHARGES. THE ORGANIZATION PREPARES AND ISSUES AUDITED FINANCIAL STATEMENTS. THE ATTACHED TEXT WAS OBTAINED FROM THE FOOTNOTES TO THE AUDITED FINANCIAL STATEMENTS OF SOMERSET MEDICAL CENTER. ACCOUNTS RECEIVABLE, PATIENTS PATIENT ACCOUNTS RECEIVABLE RESULT FROM THE HEALTH CARE SERVICES PROVIDED BY THE MEDICAL CENTER. ADDITIONS TO THE ALLOWANCE FOR DOUBTFUL COLLECTIONS RESULT FROM THE PROVISION FOR DOUBTFUL COLLECTIONS. ACCOUNTS WRITTEN OFF AS UNCOLLECTIBLE ARE DEDUCTED FROM THE ALLOWANCE FOR DOUBTFUL COLLECTIONS. THE AMOUNT OF THE ALLOWANCE FOR DOUBTFUL COLLECTIONS IS BASED UPON MANAGEMENT'S ASSESSMENT OF HISTORICAL AND EXPECTED NET COLLECTIONS, BUSINESS AND ECONOMIC CONDITIONS, TRENDS IN MEDICARE AND MEDICAID HEALTH CARE COVERAGE AND OTHER COLLECTION INDICATORS. SEE NOTE 5 FOR ADDITIONAL INFORMATION RELATIVE TO THIRD PARTY PAYOR PROGRAMS. CHARITY CARE THE MEDICAL CENTER PROVIDES CARE TO PATIENTS WHO MEET CERTAIN CRITERIA UNDER ITS PATIENT FINANCIAL ASSISTANCE POLICY WITHOUT CHARGE OR AT AMOUNTS LESS THAN ITS ESTABLISHED RATES. BECAUSE THE MEDICAL CENTER DOES NOT PURSUE COLLECTIONS OF AMOUNTS DETERMINED TO QUALIFY AS CHARITY CARE, THEY ARE NOT REPORTED AS PATIENT SERVICE REVENUES. THE MEDICAL CENTER MAINTAINS RECORDS TO IDENTIFY AND MONITOR THE LEVEL OF CHARITY CARE IT PROVIDES. THE ESTIMATED COSTS OF PROVIDING CHARITY CARE ARE BASED UPON THE DIRECT AND INDIRECT COSTS IDENTIFIED WITH THE SPECIFIC CHARITY CARE SERVICES PROVIDED. THE LEVEL OF CHARITY CARE PROVIDED BY THE MEDICAL CENTER AMOUNTED TO APPROXIMATELY $9,168,000 IN 2011 AND $11,286,000 IN 2010. THE NEW JERSEY HEALTH CARE SUBSIDY FUND WAS ESTABLISHED FOR VARIOUS PURPOSES, INCLUDING THE DISTRIBUTION OF CHARITY CARE PAYMENTS TO HOSPITALS STATEWIDE. NET PATIENT SERVICE REVENUES INCLUDE SUBSIDY AMOUNTS OF APPROXIMATELY $3,520,000 IN 2011 AND $2,598,000 IN 2010.
COMMUNITY BENEFIT	SCHEDULE H, PART III, SECTION B; QUESTION 8	MEDICARE COSTS WERE DERIVED FROM THE 2011 MEDICARE COST REPORT. THE ORGANIZATION BELIEVES THAT MEDICARE UNDERPAYMENTS (SHORTFALL) AND BAD DEBT ARE COMMUNITY BENEFIT AND ASSOCIATED COSTS SHOULD BE INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. THE ORGANIZATION'S POSITION IS THAT MEDICARE UNDERPAYMENTS (SHORTFALL) AND BAD DEBT ARE COMMUNITY BENEFIT AND ASSOCIATED COSTS SHOULD BE INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. AS OUTLINED MORE FULLY BELOW THE ORGANIZATION BELIEVES THAT THESE SERVICES AND RELATED COSTS PROMOTE THE HEALTH OF THE COMMUNITY AS A WHOLE AND ARE RENDERED IN CONJUNCTION WITH THE ORGANIZATION'S CHARITABLE TAX-EXEMPT PURPOSES AND MISSION IN PROVIDING MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUAL'S IN A NON-DISCRIMINATORY MANNER WITHOUT REGARD TO RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY AND CONSISTENT WITH THE COMMUNITY BENEFIT STANDARD PROMULGATED BY THE IRS. THE COMMUNITY BENEFIT STANDARD IS THE CURRENT STANDARD FOR A HOSPITAL FOR RECOGNITION AS A TAX-EXEMPT AND CHARITABLE ORGANIZATION UNDER INTERNAL REVENUE CODE ("IRC") 501(C)(3). THE ORGANIZATION IS RECOGNIZED AS A TAX-EXEMPT ENTITY AND CHARITABLE ORGANIZATION UNDER 501(C)(3) OF THE IRC. ALTHOUGH THERE IS NO DEFINITION IN THE TAX CODE FOR THE TERM "CHARITABLE" A REGULATION PROMULGATED BY THE DEPARTMENT OF THE TREASURY PROVIDES SOME GUIDANCE AND STATES THAT "[T]HE TERM CHARITABLE IS USED IN SECTION 501(C)(3) IN ITS GENERALLY ACCEPTED LEGAL SENSE," AND PROVIDES EXAMPLES OF CHARITABLE PURPOSES, INCLUDING THE RELIEF OF THE POOR OR UNPRIVILEGED; THE PROMOTION OF SOCIAL WELFARE; AND THE ADVANCEMENT OF EDUCATION, RELIGION, AND SCIENCE. NOTE IT DOES NOT EXPLICITLY ADDRESS THE ACTIVITIES OF HOSPITALS. IN THE ABSENCE OF EXPLICIT STATUTORY OR REGULATORY REQUIREMENTS APPLYING THE TERM "CHARITABLE" TO HOSPITALS, IT HAS BEEN LEFT TO THE IRS TO DETERMINE THE CRITERIA HOSPITALS MUST MEET TO QUALIFY AS IRC 501(C)(3) CHARITABLE ORGANIZATIONS. THE ORIGINAL STANDARD WAS KNOWN AS THE CHARITY CARE STANDARD. THIS STANDARD WAS REPLACED BY THE IRS WITH THE COMMUNITY BENEFIT STANDARD WHICH IS THE CURRENT STANDARD. CHARITY CARE STANDARD IN 1956, THE IRS ISSUED REVENUE RULING 56-185, WHICH ADDRESSED THE REQUIREMENTS HOSPITALS NEEDED TO MEET IN ORDER TO QUALIFY FOR IRC 501(C)(3) STATUS. ONE OF THESE REQUIREMENTS IS KNOWN AS THE "CHARITY CARE STANDARD." UNDER THE STANDARD, A HOSPITAL HAD TO PROVIDE, TO THE EXTENT OF ITS FINANCIAL ABILITY, FREE OR REDUCED-COST CARE TO PATIENTS UNABLE TO PAY FOR IT. A HOSPITAL THAT EXPECTED FULL PAYMENT DID NOT, ACCORDING TO THE RULING, PROVIDE CHARITY CARE BASED ON THE FACT THAT SOME PATIENTS ULTIMATELY FAILED TO PAY. THE RULING EMPHASIZED THAT A LOW LEVEL OF CHARITY CARE DID NOT NECESSARILY MEAN THAT A HOSPITAL HAD FAILED TO MEET THE REQUIREMENT SINCE THAT LEVEL COULD REFLECT ITS FINANCIAL ABILITY TO PROVIDE SUCH CARE. THE RULING ALSO NOTED THAT PUBLICLY SUPPORTED COMMUNITY HOSPITALS WOULD NORMALLY QUALIFY AS CHARITABLE ORGANIZATIONS BECAUSE THEY SERVE THE ENTIRE COMMUNITY, AND A LOW LEVEL OF CHARITY CARE WOULD NOT AFFECT A HOSPITAL'S EXEMPT STATUS IF IT WAS DUE TO THE SURROUNDING COMMUNITY'S LACK OF CHARITABLE DEMANDS. COMMUNITY BENEFIT STANDARD IN 1969, THE IRS ISSUED REVENUE RULING 69-545, WHICH "REMOVE[D]" FROM REVENUE RULING 56-185 "THE REQUIREMENTS RELATING TO CARING FOR PATIENTS WITHOUT CHARGE OR AT RATES BELOW COST." UNDER THE STANDARD DEVELOPED IN REVENUE RULING 69-545, WHICH IS KNOWN AS THE "COMMUNITY BENEFIT STANDARD," HOSPITALS ARE JUDGED ON WHETHER THEY PROMOTE THE HEALTH OF A BROAD CLASS OF INDIVIDUALS IN THE COMMUNITY. THE RULING INVOLVED A HOSPITAL THAT ONLY ADMITTED INDIVIDUALS WHO COULD PAY FOR THE SERVICES (BY THEMSELVES, PRIVATE INSURANCE, OR PUBLIC PROGRAMS SUCH AS MEDICARE), BUT OPERATED A FULL-TIME EMERGENCY ROOM THAT WAS OPEN TO EVERYONE. THE IRS RULED THAT THE HOSPITAL QUALIFIED AS A CHARITABLE ORGANIZATION BECAUSE IT PROMOTED THE HEALTH OF PEOPLE IN ITS COMMUNITY. THE IRS REASONED THAT BECAUSE THE PROMOTION OF HEALTH WAS A CHARITABLE PURPOSE ACCORDING TO THE GENERAL LAW OF CHARITY, IT FELL WITHIN THE "GENERALLY ACCEPTED LEGAL SENSE" OF THE TERM "CHARITABLE," AS REQUIRED BY TREAS. REG. 1.501(C)(3)-1(D)(2). THE IRS RULING STATED THAT THE PROMOTION OF HEALTH, LIKE THE RELIEF OF POVERTY AND THE ADVANCEMENT OF EDUCATION AND RELIGION, IS ONE OF THE PURPOSES IN THE GENERAL LAW OF CHARITY THAT IS DEEMED BENEFICIAL TO THE COMMUNITY AS A WHOLE EVEN THOUGH THE CLASS OF BENEFICIARIES ELIGIBLE TO RECEIVE A DIRECT BENEFIT FROM ITS ACTIVITIES DOES NOT INCLUDE ALL MEMBERS OF THE COMMUNITY, SUCH AS INDIGENT MEMBERS OF THE COMMUNITY, PROVIDED THAT THE CLASS IS NOT SO SMALL THAT ITS RELIEF IS NOT OF BENEFIT TO THE COMMUNITY. THE IRS CONCLUDED THAT THE HOSPITAL WAS "PROMOTING THE HEALTH OF A CLASS OF PERSONS THAT IS BROAD ENOUGH TO BENEFIT THE COMMUNITY" BECAUSE ITS EMERGENCY ROOM WAS OPEN TO ALL AND IT PROVIDED CARE TO EVERYONE WHO COULD PAY, WHETHER DIRECTLY OR THROUGH THIRD-PARTY REIMBURSEMENT. OTHER CHARACTERISTICS OF THE HOSPITAL THAT THE IRS HIGHLIGHTED INCLUDED THE FOLLOWING: ITS SURPLUS FUNDS WERE USED TO IMPROVE PATIENT CARE, EXPAND HOSPITAL FACILITIES, AND ADVANCE MEDICAL TRAINING, EDUCATION, AND RESEARCH; IT WAS CONTROLLED BY A BOARD OF TRUSTEES THAT CONSISTED OF INDEPENDENT CIVIC LEADERS; AND HOSPITAL MEDICAL STAFF PRIVILEGES WERE AVAILABLE TO ALL QUALIFIED PHYSICIANS. THE ORGANIZATION BELIEVES THAT MEDICARE UNDERPAYMENTS AND BAD DEBT ARE COMMUNITY BENEFIT AND ASSOCIATED COSTS SHOULD BE INCLUDBALE ON THE FORM 990, SCHEUDLE H, PART I. THE AMERICAN HOSPITAL ASSOCIATION'S ("AHA") POSITION IS THAT MEDICARE UNDERPAYMENTS (SHORTFALL) AND BAD DEBT ARE COMMUNITY BENEFIT AND THUS INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. THIS ORGANIZATION AGREES WITH THE AHA POSITION. AS OUTLINED IN THE AHA LETTER TO THE IRS DATED AUGUST 21, 2007 WITH RESPECT TO THE FIRST PUBLISHED DRAFT OF THE NEW FORM 990 AND SCHEDULE H, THE AHA FELT THAT THE IRS SHOULD INCORPORATE THE FULL VALUE OF THE COMMUNITY BENEFIT THAT HOSPITALS PROVIDE BY COUNTING MEDICARE UNDERPAYMENTS (SHORTFALL) AS QUANTIFIABLE COMMUNITY BENEFIT FOR THE FOLLOWING REASONS: - PROVIDING CARE FOR THE ELDERLY AND SERVING MEDICARE PATIENTS IS AN ESSENTIAL PART OF THE COMMUNITY BENEFIT STANDARD. - MEDICARE, LIKE MEDICAID, DOES NOT PAY THE FULL COST OF CARE. RECENTLY, MEDICARE REIMBURSES HOSPITALS ONLY 92 CENTS FOR EVERY DOLLAR THEY SPEND TO TAKE CARE OF MEDICARE PATIENTS. THE MEDICARE PAYMENT ADVISORY COMMISSION ("MEDPAC") IN ITS MARCH 2007 REPORT TO CONGRESS CAUTIONED THAT UNDERPAYMENT WILL GET EVEN WORSE, WITH MARGINS REACHING A 10-YEAR LOW AT NEGATIVE 5.4 PERCENT. - MANY MEDICARE BENEFICIARIES, LIKE THEIR MEDICAID COUNTERPARTS, ARE POOR. MORE THAN 46 PERCENT OF MEDICARE SPENDING IS FOR BENEFICIARIES WHOSE INCOME IS BELOW 200 PERCENT OF THE FEDERAL POVERTY LEVEL. MANY OF THOSE MEDICARE BENEFICIARIES ARE ALSO ELIGIBLE FOR MEDICAID -- SO CALLED "DUAL ELIGIBLES." THERE IS EVERY COMPELLING PUBLIC POLICY REASON TO TREAT MEDICARE AND MEDICAID UNDERPAYMENTS SIMILARLY FOR PURPOSES OF A HOSPITAL'S COMMUNITY BENEFIT AND INCLUDE THESE COSTS ON FORM 990, SCHEDULE H, PART I. MEDICARE UNDERPAYMENT MUST BE SHOULDERED BY THE HOSPITAL IN ORDER TO CONTINUE TREATING THE COMMUNITY'S ELDERLY AND POOR. THESE UNDERPAYMENTS REPRESENT A REAL COST OF SERVING THE COMMUNITY AND SHOULD COUNT AS A QUANTIFIABLE COMMUNITY BENEFIT. BOTH THE AHA AND THIS ORGANIZATION ALSO FEEL THAT PATIENT BAD DEBT IS A COMMUNITY BENEFIT AND THUS INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. LIKE MEDICARE UNDERPAYMENT (SHORTFALLS), THERE ALSO ARE COMPELLING REASONS THAT PATIENT BAD DEBT SHOULD BE COUNTED AS QUANTIFIABLE COMMUNITY BENEFIT AS FOLLOWS: - A SIGNIFICANT MAJORITY OF BAD DEBT IS ATTRIBUTABLE TO LOW-INCOME PATIENTS, WHO, FOR MANY REASONS, DECLINE TO COMPLETE THE FORMS REQUIRED TO ESTABLISH ELIGIBILITY FOR HOSPITALS' CHARITY CARE OR FINANCIAL ASSISTANCE PROGRAMS. A 2006 CONGRESSIONAL BUDGET OFFICE ("CBO") REPORT, NONPROFIT HOSPITALS AND THE PROVISION OF COMMUNITY BENEFITS, CITED TWO STUDIES INDICATING THAT "THE GREAT MAJORITY OF BAD DEBT WAS ATTRIBUTABLE TO PATIENTS WITH INCOMES BELOW 200% OF THE FEDERAL POVERTY LINE." - THE REPORT ALSO NOTED THAT A SUBSTANTIAL PORTION OF BAD DEBT IS PENDING CHARITY CARE. UNLIKE BAD DEBT IN OTHER INDUSTRIES, HOSPITAL BAD DEBT IS COMPLICATED BY THE FACT THAT HOSPITALS FOLLOW THEIR MISSION TO THE COMMUNITY AND TREAT EVERY PATIENT THAT COMES THROUGH THEIR EMERGENCY DEPARTMENT, REGARDLESS OF ABILITY TO PAY. PATIENTS WHO HAVE OUTSTANDING BILLS ARE NOT TURNED AWAY, UNLIKE OTHER INDUSTRIES. BAD DEBT IS FURTHER COMPLICATED BY THE AUDITING INDUSTRY'S STANDARDS ON REPORTING CHARITY CARE. MANY PATIENTS CANNOT OR DO NOT PROVIDE THE NECESSARY, EXTENSIVE DOCUMENTATION REQUIRED TO BE DEEMED CHARITY CARE BY AUDITORS. AS A RESULT, ROUGHLY 40% OF BAD DEBT IS PENDING CHARITY CARE. - THE CBO CONCLUDED THAT ITS FINDINGS "SUPPORT THE VALIDITY OF THE USE OF UNCOMPENSATED CARE [BAD DEB
COLLECTION POLICY	SCHEDULE H, PART III, SECTION B; QUESTION 9B	ACCOUNTS CONSIDERED TO BE CHARITY CARE ARE NOT INCLUDED IN THE BAD DEBT EXPENSE, BUT RATHER, ACCOUNTED FOR AS AN ALLOWANCE. IT IS THE POLICY OF THE ORGANIZATION TO TREAT ALL PATIENTS EQUALLY REGARDLESS OF INSURANCE AND THEIR ABILITY TO PAY. FOR ACCOUNTS DETERMINED TO BE "SELF-PAY" AND/OR ACCOUNTS WITH BALANCE AFTER PRIMARY INSURANCE PAYMENTS, THE COLLECTION POLICY REQUIRES: A MINIMUM OF ONE PRE-COLLECTION LETTER, TELEPHONE CONTACT FOR ANY ACCOUNT OVER $500 OR AT THE DISCRETION OF THE ACCOUNT REPRESENTATIVE AND/OR SUPERVISOR. THE FACILITY ALSO HAS A CHARITY CARE ACCESS POLICY TO ASSURE PATIENTS ARE PROVIDED WITH CHARITY CARE ASSISTANCE DETERMINED BY STATE AND FEDERAL REGULATIONS. IT IS THE POLICY TO INFORM ALL PATIENTS DEEMED SELF-PAY OF THE APPROPRIATE ASSISTANCE PROGRAMS AVAILABLE. PATIENTS APPLYING FOR CHARITY CARE ASSISTANCE WILL BE FINANCIALLY SCREENED BY A RESOURCE ADVISOR TO DETERMINE ELIGIBILITY ACCORDING TO STATE AND FEDERAL GUIDELINES AND WILL BE INFORMED OF DOCUMENTATION NEED TO COMPLETE A CHARITY CARE APPLICATION. PATIENTS NOT ELIGIBLE FOR CHARITY CARE WILL BE FINANCIALLY COUNSELED FOR ALL OTHER OPTIONS. QUALIFIED PATIENTS WILL BE REFERRED TO ALL APPROPRIATE AGENCIES OR PROGRAMS TO MEET OTHER FINANCIAL NEEDS. AT THE TIME OF THE PATIENT VISIT AND PART OF THE REGISTRATION PROCESS AT THE FACILITY, THE FOLLOWING OPTIONS ARE MADE AVAILABLE TO PATIENTS: - FINANCIAL COUNSELING FOR POSSIBLE ELIGIBILITY FOR MEDICAL ASSISTANCE INCLUDING MEDICAID AND SSI; - FINANCIAL COUNSELING FOR POSSIBLE ELIGIBILITY FOR THE NEW JERSEY HOSPITAL CARE PAYMENT ASSISTANCE PROGRAM; AND, - FINANCIAL ARRANGEMENTS INCLUDING: 1. CASH/CREDIT CARD (AMERICAN EXPRESS, DISCOVER, VISA, MASTERCARD), 2. LOW INTEREST LOAN PROGRAM, OR 3. FLEXIBLE PAYMENT PLANS. IN ADDITION TO THE ABOVE OPTIONS, THE FACILITY HAS ESTABLISHED A SELF-PAY ASSISTANCE PROGRAM FOR OUR UNINSURED PATIENTS THAT DO NOT QUALIFY FOR MEDICAID OR THE NEW JERSEY HOSPITAL CARE PAYMENT ASSISTANCE PROGRAM. THE SELF-PAY ASSISTANCE PROGRAM RATES ARE REFLECTIVE OF MEDICARE REIMBURSEMENT, AS REFERRED BY THE STATE OF NEW JERSEY.
FACILITY INFORMATION	SCHEDULE H, PART V; SECTION B, QUESTIONS 1J, 3, 4, 5C, 6I & 7	NOT APPLICABLE.
FACILITY INFORMATION	SCHEDULE H, PART V, SECTION B,QUESTIONS 9,10,11H,13G,15E,16E,17E,18D,20&21	NOT APPLICABLE.
FACILITY INFORMATION	SCHEDULE H, PART V, SECTION B, QUESTION 19D	THE FACILITY USES THE MEDICAID RATE AS THE MAXIMUM AMOUNT THAT CAN BE CHARGED TO FAP-ELIGIBLE INDIVIDUALS FOR EMERGENCY OR OTHER MEDICALLY NECESSARY CARE.
NEEDS ASSESSMENT	SCHEDULE H, PART VI; QUESTION 2	THIS ORGANIZATION CONDUCTS A REVIEW OF KEY FACTOR INFORMATION ANNUALLY WHICH INCLUDES: A REVIEW OF HEALTHCARE UTILIZATION OF ITS SERVICE AREA POPULATION BY SERVICES (UROLOGY, CARDIOLOGY, OBSTETRICS, ETC.) FOR DETERMINING INCREASED OR DECREASED HEALTH NEEDS; HEALTHCARE SERVICE ESTIMATES AND FORECASTS (BOTH INPATIENT AND OUTPATIENT); ASSESSMENTS OF LOCAL DEMOGRAPHIC AND SOCIOECONOMIC INFORMATION; AND, A REVIEW OF HEALTH STATUS/NEEDS ASSESSMENTS AND STUDIES CONDUCTED BY EXTERNAL PARTIES HEALTH RESEARCH AND EDUCATION TRUST OF NEW JERSEY, UNITED WAY OF SOMERSET COUNTY, GREATER SOMERSET PUBLIC HEALTH PARTNERSHIP AND THE SOMERSET COUNTY HEALTH OFFICER'S ASSOCIATION. THIS ORGANIZATION CONDUCTS AN EXTENSIVE SERVICE AREA POPULATION NEED STUDY EVERY THREE TO FIVE YEARS. SPECIFIC QUESTIONS ARE ASKED TO IDENTIFY GAPS IN SERVICE. THESE REVIEWS INFORM THE BOARD OF TRUSTEES AND THE EXECUTIVE TEAM OF SOMERSET MEDICAL CENTER TO ASSURE RESPONSIVENESS TO IDENTIFIED COMMUNITY NEEDS. IN ADDITION, THIS ORGANIZATION WORKS WITH LOCAL PROVIDERS TO PLAN AND DISCUSS HEALTH NEEDS OF THE POPULATION. ONE FORUM IS A MONTHLY MEETING OF THE GREATER SOMERSET PUBLIC HEALTH HOSTED BY THE HEALTHCARE SYSTEM WITH REPRESENTATION FROM LOCAL POLITICIANS, LOCAL COMMUNITY HEALTH CENTERS, EMERGENCY HEALTH PROVIDERS AND OTHER COMMUNITY HEALTH LEADERS.
PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE	SCHEDULE H, PART VI; QUESTION 3	CHARITY CARE SIGNS ARE POSTED THROUGHOUT THE FACILITY, MAINLY IN PATIENT REGISTRATION AREAS. SIGNS ARE POSTED IN BOTH ENGLISH AND SPANISH. ALL PATIENTS DEEMED SELF PAY OR THOSE WHO REQUEST FINANCIAL ASSISTANCE ARE SCREENED FOR FINANCIAL NEED BY A RESOURCE ADVISOR ACCORDING TO THE FEDERAL POVERTY GUIDELINES AND REFERRED TO APPROPRIATE AGENCIES OR PROGRAMS.
COMMUNITY INFORMATION	SCHEDULE H, PART VI; QUESTION 4	THIS ORGANIZATION IS IN A DIVERSE SUBURBAN LOCATION SERVING DIVERSE COMMUNITIES RANGING FROM SMALL INNER CITY COMMUNITIES IN THE CENTRAL REGION TO MORE AFFLUENT SUBURBAN AREAS IN THE NORTHERN REGION. THIS ORGANIZATION IS LOCATED IN NEW JERSEY IN SOMERSET COUNTY. THIS ORGANIZATION IS COMMITTED TO SERVICE FOR ITS COMMUNITIES AND SERVES BOTH INNER CITY AND SUBURBAN AREAS. ABOUT 24.8% OF ITS INPATIENTS ARE OF MINORITY RACE/ETHNICITY. IN ADDITION, APPROXIMATELY 7.75% OF ITS PATIENTS ARE OF UNDERINSURED AND UNINSURED PAYER CATEGORIES.
PROMOTION OF COMMUNITY HEALTH	SCHEDULE H, PART VI; QUESTION 5	THIS ORGANIZATION OPERATES CONSISTENTLY WITH THE FOLLOWING CRITERIA OUTLINED IN IRS REVENUE RULING 69-545: 1. THE ORGANIZATION PROVICES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF ABILITY TO PAY, INCLUDING CHARITY CARE, SELF-PAY, MEDICARE AND MEDICAID PATIENTS; 2. THE ORGANIZATION OPERATES AN ACTIVE EMERGENCY ROOM FOR ALL PERSONS; WHICH IS OPEN 24 HOURS A DAY, 7 DAYS A WEEK, 365 DAYS PER YEAR; 3. THE ORGANIZATION MAINTAINS AN OPEN MEDICAL STAFF, WITH PRIVILEGES AVAILABLE TO ALL QUALIFIED PHYSICIANS; 4. CONTROL OF THE ORGANIZATION RESTS WITH ITS BOARD OF DIRECTORS; 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.
AFFILIATED HEALTHCARE SYSTEM	SCHEDULE H, PART VI; QUESTION 6	NOT FOR-PROFIT SOMERSET HEALTH CARE CORPORATION AND AFFILIATES ENTITIES: SOMERSET HEALTH CARE CORPORATION SOMERSET HEALTH CARE CORPORATION ("SHCC") IS THE TAX-EXEMPT PARENT OF THE SOMERSET HEALTH CARE CORPORATION AND AFFILIATES ("SYSTEM"). THIS INTEGRATED HEALTHCARE DELIVERY SYSTEM CONSISTS OF A GROUP OF AFFILIATED HEALTHCARE ORGANIZATIONS. THE SOLE MEMBER OR STOCKHOLDER OF EACH ENTITY IS EITHER SHCC OR ANOTHER SYSTEM AFFILIATE CONTROLLED BY SHCC. THE SYSTEM IS AN INTEGRATED NETWORK OF HEALTHCARE PROVIDERS THROUGHOUT THE STATE OF NEW JERSEY. SOMERSET HEALTH CARE CORPORATION IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A SUPPORTING ORGANIZATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3). SOMERSET MEDICAL CENTER SOMERSET MEDICAL CENTER ("SMC") IS A 355-BED ACUTE CARE AND TEACHING HOSPITAL LOCATED IN SOMERVILLE, SOMERSET COUNTY, NEW JERSEY. SMC IS RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS AN INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, SMC 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, SMC OPERATES CONSISTENTLY WITH THE CRITERIA OUTLINED IN IRS REVENUE RULING 69-545. 1. SMC PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF ABILITY TO PAY, INCLUDING CHARITY CARE, SELF- PAY, MEDICARE AND MEDICAID PATIENTS; 2. SMC OPERATES AN ACTIVE EMERGENCY ROOM FOR ALL PERSONS; WHICH IS OPEN 24 HOURS A DAY, 7 DAYS A WEEK, 365 DAYS PER YEAR; 3. SMC MAINTAINS AN OPEN MEDICAL STAFF, WITH PRIVILEGES AVAILABLE TO ALL QUALIFIED PHYSICIANS; AND 4. CONTROL OF SMC RESTS WITH ITS BOARD OF TRUSTEES WHICH IS COMPRISED OF INDEPENDENT CIVIC LEADERS, MEMBERS OF THE COMMUNITY AND MEDICAL STAFF REPRESENTATION. 5. SURPLUS FUNDS ARE USED TO IMPROVE THE QUALITY OF PATIENT CARE, EXPAND AND RENOVATE FACILITIES AND ADVANCE MEDICAL CARE; PROGRAMS AND ACTIVITIES. SOMERSET COMMUNITY CARE CORPORATION SOMERSET COMMUNITY CARE CORPORATION IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(2). THE ORGANIZATION SUPPORTS SOMERSET MEDICAL CENTER; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION, AND ITS AFFILIATES IN PROVIDING MEDICALLY NECESSARY HEALTHCARE SERVICES TO THE COMMUNITY IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. SOMERSET HEALTH CARE AFFILIATES, INC. SOMERSET HEALTH CARE AFFILIATES, INC. IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(2). THE ORGANIZATION SUPPORTS SOMERSET MEDICAL CENTER; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION, AND ITS AFFILIATES IN PROVIDING MEDICALLY NECESSARY HEALTHCARE SERVICES TO THE COMMUNITY IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. SOMERSET MEDICAL CENTER FOUNDATION, INC. SOMERSET MEDICAL CENTER FOUNDATION, INC. IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(1). THE ORGANIZATION SUPPORTS SOMERSET MEDICAL CENTER; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION, AND ITS AFFILIATES IN PROVIDING MEDICALLY NECESSARY HEALTHCARE SERVICES TO THE COMMUNITY IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. FOR-PROFIT SOMERSET HEALTH CARE CORPORATION AND AFFILIATES ENTITIES: EOS, INC. AN INACTIVE FOR-PROFIT CORPORATION. NEW JERSEY HEALTH, INC. AN INACTIVE FOR-PROFIT CORPORATION. NEW JERSEY HEALTHCARE ASSOCIATES A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS NEW JERSEY HEALTH, INC. THE ORGANIZATION IS LOCATED IN SOMERVILLE, SOMERSET COUNTY, NEW JERSEY. THIS ENTITY PROVIDES MEDICAL SERVICES. NEW JERSEY MANAGEMENT SERVICES ORGANIZATION A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS NEW JERSEY HEALTH, INC. THE ORGANIZATION IS LOCATED IN SOMERVILLE, SOMERSET COUNTY, NEW JERSEY. THIS ENTITY PROVIDES MANAGEMENT SERVICES. SHC ENTERPRISES, INC. A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS SHCC. THE ORGANIZATION IS LOCATED IN SOMERVILLE, SOMERSET COUNTY, NEW JERSEY. THIS ENTITY PROVIDES MANAGEMENT SERVICES. SOMERSET REALTY GROUP, INC. A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS SHC ENTERPRISES, INC. THE ORGANIZATION IS LOCATED IN SOMERVILLE, SOMERSET COUNTY, NEW JERSEY. THIS ENTITY PROVIDES REAL ESTATE SERVICES. SOMERSET STAFFING CORPORATION A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS SHCC. THE ORGANIZATION IS LOCATED IN SOMERVILLE, SOMERSET COUNTY, NEW JERSEY. THIS ENTITY PROVIDES STAFFING SERVICES. WARREN INTERNAL MEDICINE, P.C. A FOR-PROFIT ENTITY WHOSE NOMINEE OWNER IS SMC. THE ORGANIZATION IS LOCATED IN SOMERVILLE, SOMERSET COUNTY, NEW JERSEY. THIS ENTITY PROVIDES MEDICAL SERVICES. FRANKLIN MEDICAL GROUP, P.C. A FOR-PROFIT ENTITY WHOSE NOMINEE OWNER IS SMC. THE ORGANIZATION IS LOCATED IN SOMERVILLE, SOMERSET COUNTY, NEW JERSEY. THIS ENTITY PROVIDES MEDICAL SERVICES. ACUCARE PHYSICIANS, P.C. A FOR-PROFIT ENTITY WHOSE NOMINEE OWNER IS SMC. THE ORGANIZATION IS LOCATED IN SOMERVILLE, SOMERSET COUNTY, NEW JERSEY. THIS ENTITY PROVIDES MEDICAL SERVICES. SOMERSET MEDICAL CARE PARTNERS, P.C. A FOR-PROFIT ENTITY WHOSE NOMINEE OWNER IS SMC. THE ORGANIZATION IS LOCATED IN SOMERVILLE, SOMERSET COUNTY, NEW JERSEY. THIS ENTITY PROVIDES MEDICAL SERVICES. SOMERSET CARDIOLOGY PARTNERS, P.C. A FOR-PROFIT ENTITY WHOSE NOMINEE OWNER IS SMC. THE ORGANIZATION IS LOCATED IN SOMERVILLE, SOMERSET COUNTY, NEW JERSEY. THIS ENTITY PROVIDES MEDICAL SERVICES. SOMERSET CARDIOLOGY GROUP, P.C. A FOR-PROFIT ENTITY WHOSE NOMINEE OWNER IS SMC. THE ORGANIZATION IS LOCATED IN SOMERVILLE, SOMERSET COUNTY, NEW JERSEY. THIS ENTITY PROVIDES MEDICAL SERVICES. SOMERSET CHEST AND INTENSIVE CARE MEDICINE, P.C. A FOR-PROFIT ENTITY WHOSE NOMINEE OWNER IS SMC. THE ORGANIZATION IS LOCATED IN SOMERVILLE, SOMERSET COUNTY, NEW JERSEY. THIS ENTITY PROVIDES MEDICAL SERVICES.
STATE FILING OF COMMUNITY BENEFIT REPORT	SCHEDULE H, PART VI; QUESTION 7	NOT APPLICABLE. THE ENTITY AND RELATED PROVIDER ORGANIZATIONS ARE LOCATED IN NEW JERSEY. NO COMMUNITY BENEFIT REPORT IS FILED WITH THE STATE OF NEW JERSEY.

Schedule H (Form 990) 2011

Additional Data

Software ID:
Software Version:

- TIN:

Schedule I
(Form 990)

Department of the Treasury
Internal Revenue Service

Grants and Other Assistance to Organizations,
Governments and Individuals in the United States

Complete if the organization answered "Yes," to Form 990, Part IV, line 21 or 22.
lBullet

Attach to Form 990

OMB No. 1545-0047

2011

Open to Public
Inspection

Name of the organization
SOMERSET MEDICAL CENTER

Employer identification number
22-1487350

Part I

General Information on Grants and Assistance

Does the organization maintain records to substantiate the amount of the grants or assistance, the grantees' eligibility for the grants or assistance, and
the selection criteria used to award the grants or assistance? ....................................

Yes No

Describe in Part IV the organization's procedures for monitoring the use of grant funds in the United States.

Part II

Grants and Other Assistance to Governments and Organizations in the United States. Complete if the organization answered "Yes" to
Form 990, Part IV, line 21 for any recipient that received more than $5,000. Check this box if no one recipient received more than $5,000. Use
Part IV and Schedule I-1 (Form 990) if additional space is needed ......................... lBullet

(a) Name and address of organization or government	(b) EIN	(c) IRC Code section if applicable	(d) Amount of cash grant	(h) Purpose of grant or assistance
(1) SOMERSET MEDICAL CENTER FOUNDATION INC110 REHILL AVENUE SOMERVILLE,NJ08876	22-3294408	501(C)(3)	273,767	PROGRAM SUPPORT
(2) RARITAN VALLEY COMMUNITY COLLEGEPO BOX 3300 SOMERVILLE,NJ08876	22-1815636	501(C)(3)	10,000	EDUCATIONAL SCHOLARSHIPS
(3) RARITAN VALLEY COMMUNITY COLLEGE FOUNDATIONPO BOX 3300 SOMERVILLE,NJ08876	23-7138731	501(C)(3)	6,083	PROGRAM SUPPORT

Enter total number of section 501(c)(3) and government organizations listed in the line 1 table ................. Bullet Image

Enter total number of other organizations listed in the line 1 table ......................... . Bullet Image

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 50055P

Schedule I (Form 990) 2011

Page 2

Part III

Grants and Other Assistance to Individuals in the United States. Complete if the organization answered "Yes" to Form 990, Part IV, line 22.
Use Schedule I-1 (Form 990) if additional space is needed.

(a)Type of grant or assistance	(b)Number of recipients	(c)Amount of cash grant	(d)Amount of non-cash assistance	(e)Method of valuation (book, FMV, appraisal, other)	(f)Description of non-cash assistance

Part IV

Supplemental Information. Complete this part to provide the information required in Part I, line 2, and any other additional information.

Identifier	Return Reference	Explanation
GRANT FUND MONITORING	SCHEDULE I, PART I; QUESTION 2	GRANTS ARE MONITORED BY THE ORGANIZATION'S FINANCE PERSONNEL THROUGH THE UTILIZATION OF COST CENTERS AND OTHER INFORMATION; INCLUDING WRITTEN DOCUMENATION AND RECEIPTS.

Schedule I (Form 990) 2011

Additional Data

Software ID:
Software Version:

- TIN:

Schedule J
(Form 990)

Department of the Treasury
Internal Revenue Service

Compensation Information

For certain Officers, Directors, Trustees, Key Employees, and Highest
Compensated Employees
SchJMediumBullet

Complete if the organization answered "Yes" to Form 990,
Part IV, question 23.
SchJMediumBullet

Attach to Form 990. SchJMediumBullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization

SOMERSET MEDICAL CENTER

Employer identification number

22-1487350

Part I

Questions Regarding Compensation

Yes

Check the appropiate box(es) if the organization provided any of the following to or for a person listed in Form
990, Part VII, Section A, line 1a. Complete Part III to provide any relevant information regarding these items.

First-class or charter travel Housing allowance or residence for personal use

Travel for companions Payments for business use of personal residence

Tax idemnification and gross-up payments Health or social club dues or initiation fees

Discretionary spending account Personal services (e.g., maid, chauffeur, chef)

If any of the boxes in line 1a are checked, did the organization follow a written policy regarding payment or reimbursement or provision of all the expenses described above? If "No," complete Part III to explain....

Yes

Did the organization require substantiation prior to reimbursing or allowing expenses incurred by all
officers, directors, trustees, and the CEO/Executive Director, regarding the items checked in line 1a? ....

Yes

Indicate which, if any, of the following the organization uses to establish the compensation of the
organization's CEO/Executive Director. Check all that apply. Do not check any boxes for methods
used by a related organization to establish compensation of the CEO/Executive Director, but explain in Part III.

Compensation committee Written employment contract

Independent compensation consultant Compensation survey or study

Form 990 of other organizations Approval by the board or compensation committee

During the year, did any person listed in Form 990, Part VII, Section A, line 1a with respect to the filing organization or a related organization:

Receive a severance payment or change-of-control payment? ...............

Participate in, or receive payment from, a supplemental nonqualified retirement plan? ........

Yes

Participate in, or receive payment from, an equity-based compensation arrangement? ........

If "Yes" to any of lines 4a-c, list the persons and provide the applicable amounts for each item in Part III.

Only 501(c)(3) and 501(c)(4) organizations only must complete lines 5-9.

For persons listed in form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the revenues of:

The organization? ...........................

Any related organization? .........................

If "Yes," to line 5a or 5b, describe in Part III.

For persons listed in form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the net earnings of:

The organization? ...........................

Any related organization? .........................

If "Yes," to line 6a or 6b, describe in Part III.

For persons listed in Form 990, Part VII, Section A, line 1a, did the organization provide any non-fixed
payments not described in lines 5 and 6? If "Yes," describe in Part III ............

Yes

Were any amounts reported in Form 990, Part VII, paid or accured pursuant to a contract that was
subject to the initial contract exception described in Regulations section 53.4958-4(a)(3)? If "Yes," describe
in Part III .............................

If "Yes" to line 8, did the organization also follow the rebuttable presumption procedure described in Regulations section 53.4958-6(c)? .........................

For Privacy Act and Paperwork Reduction Act Notice, see the Intructions for Form 990

Cat. No. 50053T

Schedule J (Form 990) 2011

Page 2

Part II

Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees. Use duplicate copies if additional space is needed.

For each individual whose compensation must be reported in Schedule J, report compensation from the organization on row (i) and from related organizations, described in the
instructions on row (ii). Do not list any individuals that are not listed on Form 990, Part VII.

Note. The sum of columns (B)(i)-(iii) for each listed individual must equal the total amount of Form 990, Part VII, Section A, line 1a, applicable column (D) and column (E) for that individual.

(A) Name		(B) Breakdown of W-2 and/or 1099-MISC compensation			(C) Retirement and other deferred compensation	(D) Nontaxable benefits	(E) Total of columns (B)(i)-(D)	(F) Compensation reported as deferred in prior Form 990
(A) Name		(i) Base compensation	(ii) Bonus & incentive compensation	(iii) Other reportable compensation	(C) Retirement and other deferred compensation	(D) Nontaxable benefits	(E) Total of columns (B)(i)-(D)	(F) Compensation reported as deferred in prior Form 990
(1) KENNETH W BATEMAN	(i) (ii)	485,407 0	204,682 0	91,540 0	82,350 0	27,193 0	891,172 0	75,000 0
(2) CARL OBRIEN	(i) (ii)	370,881 0	0 0	1,312 0	1,154 0	19,028 0	392,375 0	0 0
(3) DAVID DYER	(i) (ii)	291,389 0	70,142 0	970 0	7,350 0	24,914 0	394,765 0	0 0
(4) PAUL HUEGEL	(i) (ii)	323,222 0	64,947 0	10,212 0	7,288 0	26,724 0	432,393 0	0 0
(5) MAUREEN SCHNEIDER	(i) (ii)	334,834 0	91,854 0	3,184 0	7,350 0	1,818 0	439,040 0	0 0
(6) GLENN MCCREESH	(i) (ii)	334,370 0	92,239 0	1,189 0	7,350 0	26,763 0	461,911 0	0 0
(7) MARY ANN BROSS	(i) (ii)	231,067 0	57,009 0	2,211 0	7,189 0	23,545 0	321,021 0	0 0
(8) ROBERT SENSKA III	(i) (ii)	223,604 0	64,373 0	384 0	3,808 0	8,102 0	300,271 0	0 0
(9) KATHLEEN CUMMINS	(i) (ii)	204,045 0	48,184 0	1,839 0	6,105 0	2,418 0	262,591 0	0 0
(10) MARY BOLLWAGE	(i) (ii)	181,882 0	50,799 0	1,638 0	3,675 0	15,691 0	253,685 0	0 0
(11) VICTORIA ALLEN	(i) (ii)	170,329 0	48,065 0	361 0	5,267 0	7,885 0	231,907 0	0 0
(12) STEPHEN MINOGUE	(i) (ii)	175,679 0	37,290 0	823 0	5,250 0	1,141 0	220,183 0	0 0
(13) CHIKEZIE J AGUH MD	(i) (ii)	295,264 0	0 0	0 0	2,504 0	26,248 0	324,016 0	0 0
(14) EVA B BESSERMAN MD	(i) (ii)	249,300 0	15,538 0	1,297 0	7,350 0	25,195 0	298,680 0	0 0
(15) JOHN BUCEK MD	(i) (ii)	248,572 0	14,592 0	827 0	7,350 0	28,547 0	299,888 0	0 0
(16) LLOYD DAVIS MD	(i) (ii)	243,389 0	14,313 0	3,544 0	7,350 0	20,513 0	289,109 0	0 0
(17) AKHTAR HOSSAIN MD	(i) (ii)	237,725 0	13,401 0	756 0	7,154 0	9,644 0	268,680 0	0 0
(18) PATRICK ROWAN MD	(i) (ii)	209,697 0	0 0	378 0	6,328 0	25,377 0	241,780 0	0 0

Schedule J (Form 990) 2011

Page 3

Part III

Supplemental Information

Complete this part to provide the information, explanation, or descriptions required for Part I, lines 1a, 1b, 3, 4c, 5a, 5b, 6a, 6b, 7, and 8. Also complete this part for any additional information.

Identifier	Return Reference	Explanation
COMPENSATION INFORMATION	SCHEDULE J, PART I; QUESTION 1A	THE ORGANIZATION MAINTAINS MEMBERSHIPS IN TWO COUNTRY CLUBS FOR BUSINESS PURPOSES. THE COUNTRY CLUBS REQUIRE THAT AN INDIVIDUAL BE NAMED AS THE MEMBER. ACCORDINGLY, THE ORGANIZATION HAS DESIGNATED KENNETH W. BATEMAN, PRESIDENT/CEO AND GLENN MCCREESH, SENIOR VP OPERATIONS AS THE MEMBERS; ONE FOR EACH COUNTRY CLUB. DURING 2011, NEITHER MR. BATEMAN NOR MR. JONES USED THE COUNTRY CLUB FOR ANY PERSONAL USE OR BENEFIT.
COMPENSATION INFORMATION	SCHEDULE J, PART I; QUESTION 4B	THE AMOUNT REFLECTED IN COLUMN B(III) FOR THE FOLLOWING INDIVIDUAL INCLUDES CURRENT YEAR VESTING IN AN INTERNAL REVENUE CODE SECTION 457(F) PLAN (NON-QUALIFIED DEFERRED COMPENSATION PLAN) AS THE AMOUNT WAS NO LONGER SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. THIS AMOUNT WAS REPORTED AS DEFERRED COMPENSATION ON PRIOR YEARS FORMS 990. THE AMOUNT OUTLINED HEREIN WAS INCLUDED IN THE INDIVIDUAL'S 2011 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES: KENNETH W. BATEMAN, $75,000. THE DEFERRED COMPENSATION AMOUNT IN COLUMN C FOR THE FOLLOWING INDIVIDUAL INCLUDES UNVESTED BENEFITS IN AN INTERNAL REVENUE CODE SECTION 457(F) PLAN (NON-QUALIFIED DEFERRED COMPENSATION PLAN) WHICH ARE SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. ACCORDINGLY, THE INDIVIDUAL MAY NEVER ACTUALLY RECEIVE THIS UNVESTED BENEFIT AMOUNT. THE AMOUNT OUTLINED HEREIN WAS NOT INCLUDED IN THE INDIVIDUAL'S 2011 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES: KENNETH W. BATEMAN, $75,000.
COMPENSATION INFORMATION	SCHEDULE J, PART I; QUESTION 7 AND CORE FORM, PART VII	CERTAIN INDIVIDUALS INCLUDED IN SCHEDULE J, PART II RECEIVED A BONUS DURING CALENDAR YEAR 2011 WHICH AMOUNTS WERE INCLUDED IN COLUMN B(II) HEREIN AND IN EACH INDIVIDUAL'S 2011 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES. PLEASE REFER TO THIS SECTION OF THE FORM 990, SCHEDULE J FOR THIS INFORMATION BY PERSON BY AMOUNT.
COMPENSATION INFORMATION	SCHEDULE J, PART II, COLUMN F	THE AMOUNT REPORTED IN SCHEDULE J, PART II, COLUMN F FOR THE FOLLOWING INDIVIDUAL INCLUDES VESTED BENEFITS IN AN INTERNAL REVENUE CODE SECTION 457(F) PLAN (NON-QUALIFIED DEFERRED COMPENSATION PLAN) AS THE AMOUNT WAS NO LONGER SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. THIS AMOUNT WAS TREATED AS TAXABLE INCOME AND REPORTED ON THE INDIVIDUAL'S 2011 FORM W-2, BOX 5 AS TAXABLE MEDICARE WAGES: KENNETH W. BATEMAN, $75,000.

Schedule J (Form 990) 2011

Additional Data

Software ID:
Software Version:

- TIN:

Schedule K
(Form 990)

Department of the Treasury
Internal Revenue Service

Supplemental Information on Tax Exempt Bonds

Complete if the organization answered "Yes" to Form 990, Part IV, line 24a. Provide descriptions,
explanations, and any additional information in Part VI.
SchKMediumBullet

Attach to Form 990. SchKMediumBullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public
Inspection

Name of the organization
SOMERSET MEDICAL CENTER

Employer identification number
22-1487350

Part I

Bond Issues

(a) Issuer Name		(b) Issuer EIN	(c) CUSIP #	(d) Date Issued	(e) Issue Price	(f) Description of Purpose	(g) Defeased		(h) On Behalf of Issuer		(i) Pool financing
(a) Issuer Name		(b) Issuer EIN	(c) CUSIP #	(d) Date Issued	(e) Issue Price	(f) Description of Purpose	Yes	No	Yes	No	Yes	No
A	NJ HEALTH CARE FACLITIES FINANCING AUTHORITY	22-2845542	64579E8G4	05-15-2003	79,642,941	CONSTRUCTION, OR, ER, GARAGE		X		X		X
B	NJ HEALTH CARE FACILITIES FINANCING AUTHORITY	22-1987084	64579FXD0	08-07-2008	25,930,000	REFUND SERIES 1994/EQUIPMENT		X		X		X
C	NJ HEALTH CARE FACILITIES FINANCING AUTHORITY	22-1987084		09-22-2009	5,585,500	IT SYSTEM, RENOVATION, EQUIPMENT		X		X		X

Part II

Proceeds

	A		B		C		D
	1 Amount of bonds retired . . . . . . . . . . . . .	0		0		0
2 Amount of bonds legally defeased . . . . . . . . . .	0		0		0
3 Total proceeds of issue . . . . . . . . . . . . .	80,580,384		25,930,000		5,585,987
4 Gross proceeds in reserve funds . . . . . . . .	7,746,534		0		0
5 Capitalized interest from proceeds . . . . . . . . . .	0		0		0
6 Proceeds in refunding escrows . . . . . . . . . . .	0		0		0
7 Issuance costs from proceeds . . . . . . . . . . .	1,585,364		482,978		25,500
8 Credit enhancement from proceeds . . . . . . . . . .	0		0		0
9 Working capital expenditures from proceeds . . . . . . .	0		0		0
10 Capital expenditures from proceeds . . . . . . . . . .	68,991,000		24,781,359		5,560,487
11 Other spent proceeds . . . . . . . . . . .	0		0		0
12 Other unspent proceeds . . . . . . . . . . .	2,257,486		665,663		0
13 Year of substantial completion . . . . . . . . . . .	2009		2011		2010
	Yes	No	Yes	No	Yes	No	Yes	No
14 Were the bonds issued as part of a current refunding issue? . . . .		X	X			X
15 Were the bonds issued as part of an advance refunding issue? . . . .		X		X		X
16 Has the final allocation of proceeds been made? . . . . . .	X		X		X
17 Does the organization maintain adequate books and records to support the final allocation of proceeds? . . . . . . . . . . . . .	X		X		X

Part III

Private Business Use

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
1 Was the organization a partner in a partnership, or a member of an LLC, which owned property financed by tax-exempt bonds? . . . . . . .		X		X		X
2 Are there any lease arrangements that may result in private business use of bond-financed property? . . . . . . . . .		X		X		X

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 50193E

Schedule K (Form 990) 2011

Page 2

Part III

Private Business Use (Continued)

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
3a Are there any management or service contracts that may result in private business use of bond-financed property? . . . . . . . . .		X		X		X
b If ‘Yes’ to line 3a, does the organization routinely engage bond counsel or other outside counsel to review any management or service contracts relating to the financed property? . . . . .
c Are there any research agreements that may result in private business use of bond-financed property? . . . . . . .		X		X		X
d If ‘Yes’ to line 3c, does the organization routinely engage bond counsel or other outside counsel to review any research agreements relating to the financed property? .
4 Enter the percentage of financed property used in a private business use by entities other than a section 501(c)(3) organization or a state or local government . .	0.00000%		0.00000%		0.00000%		%
5 Enter the percentage of financed property used in a private business use as a result of unrelated trade or business activity carried on by your organization, another section 501(c)(3) organization, or a state or local government . . . . . . .	0.00000%		0.00000%		0.00000%		%
6 Total of lines 4 and 5 . . .. . . . . . . . .	0.00000%		0.00000%		0.00000%		%
7 Does the bond issue meet the private security or payment test? . . .	X		X		X
8 Has the organization established written procedures to ensure that all nonqualified bonds of the issue are remediated in accordance with the requirements under Regulations sections 1.141-12 and 1.145-2?	X		X		X

Part IV

Arbitrage

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
1 Has a Form 8038-T, Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate, been filed with respect to the bond issue? . . .		X		X		X
2 Is the bond issue a variable rate issue?		X	X			X
3a Has the organization or the governmental issuer entered into a qualified hedge with respect to the bond issue?		X		X		X
b Name of provider . . . . . . . .	0		0		0
c Term of hedge . . . . . . . .
d Was the hedge superintegrated? . . . .
e Was a hedge terminated? . . . . .
4a Were gross proceeds invested in a guaranteed investment contract (GIC)? . . . . . .		X		X		X
b Name of provider . . . . . .	0		0		0
c Term of GIC . . . . . . .
d Was the regulatory safe harbor for establishing the fair market value of the GIC satisfied? . . . . . .
5 Were any gross proceeds invested beyond an available temporary period? . . . . . .		X		X		X
6 Did the bond issue qualify for an exception to rebate? .		X		X		X
7 Has the organization established written procedures to monitor the requirements of section 148? . . .		X		X		X

Schedule K (Form 990) 2011

Page 3

Part V

Procedures To Undertake Corrective Action

Has the organization established written procedures to ensure that violations of federal tax requirements are timely identified and corrected through the voluntary closing agreement program if self-remediation is not available under applicable regulations? . . . . . . . . . . . . . . YesNo

Part VI

Supplemental Information

Complete this part to provide additional information for responses to questions on Schedule K (see instructions).

Identifier	Return Reference	Explanation
TAX-EXEMPT BONDS	SCHEDULE K	THE 2003 SERIES TAX-EXEMPT BOND ISSUANCE INCLUDED IN SCHEDULE K, PART I INCLUDES CUSIP NUMBERS IN ADDITION TO THE ONE DISCLOSED IN SCHEDULE K, PART I, LINE (A), COLUMN (C). THESE ARE THE FOLLOWING: 64579E8C3; 64579E8D1; 64579E8E9; AND 64579E8F6.

Schedule K (Form 990) 2011

Additional Data

Software ID:
Software Version:

- TIN:

Schedule L
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Transactions with Interested Persons

Complete if the organization answered
"Yes" on Form 990, Part IV, lines 25a, 25b, 26, 27, 28a, 28b, or 28c,
or Form 990-EZ, Part V lines 38a or 40b.
MediumBullet

Attach to Form 990 or Form 990-EZ. MediumBullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization

SOMERSET MEDICAL CENTER

Employer identification number

22-1487350

Part I

Excess Benefit Transactions (section 501(c)(3) and section 501 (c)(4) organizations only).
Complete if the organization answered "Yes" on Form 990, Part IV, line 25a or 25b, or Form 990-EZ, Part V, line 40b.

1(a) Name of disqualified person	(b) Description of transaction	(c) Corrected?
1(a) Name of disqualified person	(b) Description of transaction	Yes	No

Enter the amount of tax imposed on the organization managers or disqualified persons during the year under section 4958. ......................... Bullet Image

Enter the amount of tax, if any, on line 2, above, reimbursed by the organization ....... Bullet Image

Part II

Loans to and/or From Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 26, or Form 990-EZ, Part V, line 38a.

(a) Name of interested person and purpose	(b) Loan to or from the organization?		(c)Original principal amount	(d)Balance due	(e) In default?		(f) Approved by board or committee?		(g)Written agreement?
(a) Name of interested person and purpose	To	From	(c)Original principal amount	(d)Balance due	Yes	No	Yes	No	Yes	No






Total ............... $

Part III

Grants or Assistance Benefitting Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 27.

(a) Name of interested person	(b)Relationship between interested person and the organization	(c)Amount of grant or type of assistance

For Privacy Act and Paperwork Reduction Act Notice, see the
Instructions for Form 990 or 990-EZ.

Cat. No. 50056A

Schedule L (Form 990 or 990-EZ) 2011

Page 2

Part IV

Business Transactions Involving Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 28a, 28b, or 28c.

(a) Name of interested person	(b) Relationship between interested person and the organization	(c) Amount of transaction	(d) Description of transaction	(e) Sharing of organization's revenues?
(a) Name of interested person		(c) Amount of transaction	(d) Description of transaction	Yes	No
(1) LAURA FINO	FAMILY MEMBER - RAY FINO	112,893	EMPLOYEE		No
(2) KATHLEEN WILLIAMS	FAMILY MEMBER - BOLLWAGE	12,262	EMPLOYEE		No

Part V

Supplemental Information

Complete this part to provide additional information for responses to questions on Schedule L (see instructions).

Identifier	Return Reference	Explanation

Schedule L (Form 990 or 990-EZ) 2011

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE O
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Supplemental Information to Form 990 or 990-EZ

Complete to provide information for responses to specific questions on
Form 990 or to provide any additional information.
MediumBullet

Attach to Form 990 or 990-EZ.

OMB No. 1545-0047

2011

Open to Public
Inspection

Name of the organization

SOMERSET MEDICAL CENTER

Employer identification number

22-1487350

Identifier	Return Reference	Explanation
COMMUNITY BENEFIT STATEMENT	CORE FORM, PART III; STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS	SOMERSET MEDICAL CENTER ("SMC") IS AN ACUTE CARE GENERAL MEDICAL AND SURGICAL HOSPITAL. SMC IS RECOGNIZED BY THE IRS AS AN INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, SMC 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, SMC OPERATES CONSISTENTLY WITH THE FOLLOWING CRITERIA OUTLINED IN IRS REVENUE RULING 69-545: 1. SMC PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF ABILITY TO PAY, INCLUDING CHARITY CARE, SELF- PAY, MEDICARE AND MEDICAID PATIENTS. 2. SMC OPERATES AN ACTIVE EMERGENCY ROOM FOR ALL PERSONS; WHICH IS OPEN 24 HOURS A DAY, 7 DAYS A WEEK, 365 DAYS PER YEAR. 3. SMC MAINTAINS AN OPEN MEDICAL STAFF, WITH PRIVILEGES AVAILABLE TO ALL QUALIFIED PHYSICIANS. 4. CONTROL OF SMC RESTS WITH ITS BOARD OF TRUSTEES, WHICH IS COMPRISED OF INDEPENDENT CIVIC LEADERS, AND OTHER PROMINENT MEMBERS OF THE COMMUNITY. 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 SMC, AS SHOWN THROUGH THE FACTORS OUTLINED ABOVE AND OTHER INFORMATION CONTAINED HEREIN, CLEARLY DEMONSTRATE THAT THE USE AND CONTROL OF SMC 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 ========== SMC IS A NATIONALLY ACCREDITED 355-BED ACUTE CARE AND TEACHING HOSPITAL PROVIDING COMPREHENSIVE EMERGENCY, MEDICAL/SURGICAL AND REHABILITATIVE SERVICES TO CENTRAL NEW JERSEY RESIDENTS. IT IS NATIONALLY RECOGNIZED AS A MAGNET HOSPITAL FOR NURSING EXCELLENCE. AS SOMERSET COUNTY'S ONLY ACUTE CARE HOSPITAL, SOMERSET MEDICAL CENTER HAS A FAR-REACHING IMPACT ON THE COUNTY'S QUALITY OF LIFE, TOUCHING THE LIVES OF RESIDENTS OF ALL AGES AND RACIAL AND ECONOMIC BACKGROUNDS. EACH YEAR, MORE THAN 250,000 PEOPLE TURN TO THE MEDICAL CENTER FOR CARE, RANGING FROM EMERGENCY, CARDIAC AND CANCER CARE TO SURGICAL, MATERNITY AND REHABILITATION SERVICES. CARE IS PROVIDED REGARDLESS OF PATIENTS' ABILITY TO PAY. EACH YEAR, THE MEDICAL CENTER PROVIDES APPROXIMATELY $79 MILLION IN CHARITY CARE. FOR MORE THAN A CENTURY, SMC HAS BEEN DEEPLY ROOTED IN THE HEALTH OF THE COMMUNITY. ITS EXTRAORDINARY, FAR-REACHING COMMITMENT TO KEEPING PEOPLE WELL AND ENHANCING THEIR QUALITY OF LIFE HAS BEEN A GROUNDING AND GUIDING FORCE - EMBRACING THE CORNERSTONE OF ITS MISSION WHILE INSPIRING NEW DIMENSIONS OF CARE FOR AREA FAMILIES. SMC HAS PROUDLY EVOLVED INTO A CENTERPIECE OF SOMERSET COUNTY AND ITS SURROUNDING COMMUNITIES. OVER THE YEARS, IT HAS EXPANDED BEYOND THE REALM OF HEALING AND TOWARD A BROADER ROLE OF ADVOCATING WELLNESS AND EMPOWERING INDIVIDUALS TO LIVE HEALTHIER LIFESTYLES. THIS MULTI-FACETED APPROACH REFLECTS A DRAMATIC SHIFT IN MODERN MEDICINE, RECOGNIZING THAT THE MOST POWERFUL PATHWAY TO GOOD HEALTH IS THROUGH DISEASE PREVENTION RATHER THAN CURE. AND THAT ADDING LIFE TO YOUR YEARS IS JUST AS IMPORTANT AS ADDING YEARS TO YOUR LIFE. WITH THAT IN MIND, SMC HAS COMPLEMENTED ITS LEADING EDGE CLINICAL SERVICES WITH AN ARRAY OF COMMUNITY-BASED, HEALTH PROMOTION INITIATIVES. THESE OUTREACH AND COLLABORATIVE PROGRAMS ADDRESS THE REGION'S GREATEST MEDICAL PRIORITIES WHILE SUPPORTING ALL ASPECTS OF PHYSICAL, MENTAL AND SPIRITUAL WELL-BEING. COMMUNITY EDUCATION, SCREENINGS & OUTREACH ========================================== THIS SMC COMMUNITY FOCUS IS ANCHORED BY A VAST ASSORTMENT OF SEMINARS, FITNESS PROGRAMS, SUPPORT GROUPS AND SCREENINGS THAT GUIDE AREA RESIDENTS TO HEALTHIER, SAFER LIVING. THE COMMUNITY HEALTH DEPARTMENT SPONSORS AN EXTENSIVE CALENDAR OF EVENTS, INCLUDING CLASSES ON NUTRITION, EXERCISE, DISEASE MANAGEMENT, DEPRESSION AND A VARIETY OF OTHER HEALTH TOPICS. PHYSICIANS AND PROFESSIONAL STAFF OFFER ENLIGHTENING PRESENTATIONS AT THE MEDICAL CENTER AND ALSO TRAVEL TO VARIOUS COMMUNITY SITES, I.E., WORKPLACE, SCHOOLS AND OTHER COMMUNITY SETTINGS, THROUGH THE HOSPITAL'S SPEAKER'S BUREAU. IN ADDITION TO WELLNESS EDUCATION, THE MEDICAL CENTER PROVIDES FREE AND LOW-COST SCREENINGS FOR CANCER, DIABETES, CHOLESTEROL AND OTHER SERIOUS MEDICAL CONDITIONS THAT ARE TREATED MOST SUCCESSFULLY WITH EARLY DETECTION. THE MEDICAL CENTER SPONSORS A FREE BLOOD PRESSURE KIOSK AT THE BRIDGEWATER COMMONS MALL, WHICH RECORDED AN AVERAGE OF 132 TESTS PER DAY IN 2011. ESPECIALLY FOR WOMEN: FROM CHILDBIRTH TO MENOPAUSE, SMC OFFERS A FULL CONTINUUM OF WELLNESS PROGRAMS ADDRESSING ALL ASPECTS OF WOMEN'S HEALTH. ITS BABY SUITES HOST A VARIETY OF PRENATAL, POSTPARTUM AND PARENTING COURSES FOR NEW AND EXPECTANT MOTHERS, AS WELL AS THEIR FAMILIES. THESE INCLUDE CLASSES ON BIRTHING, TOURS AND SPECIAL PROGRAMS FOR DADS AND SIBLINGS. IN COOPERATION WITH THE COURIER NEWS, THE COMMUNITY HEALTH DEPARTMENTS PRESENTS FREE LECTURES ADDRESSING A WIDE RANGE OF WOMEN'S HEALTH TOPICS, IMPORTANT WOMEN'S ISSUES RELATED TO HEART DISEASE, OSTEOPOROSIS AND PHYSIOLOGICAL PSYCHOLOGICAL WELLNESS ARE INCORPORATED INTO THE HOSPITAL'S GENERAL COMMUNITY HEALTH CALENDAR. SCHOOL ACTIVITIES: DEDICATED TO GIVING YOUTH A HEALTHY START, SMC PARTNERS WITH LOCAL SCHOOLS AND ORGANIZATIONS TO FOSTER EARLY, POSITIVE LIFESTYLE HABITS WHILE OPENING DOORS TO A BRIGHTER FUTURE. ANNUAL PROGRAMS ABOUT DENTAL HEALTH ARE PRESENTED TO HIGH-RISK PRESCHOOL CHILDREN AND HIGHLIGHTED AT HEALTH FAIRS THROUGHOUT THE YEAR. SCREENINGS TO PREVENT SUDDEN CARDIAC DEATH IN YOUNG ATHLETES HAVE BEEN CONDUCTED ANNUALLY SINCE 2009. SENIOR ADVANTAGE IN LIFE: SENIORS IN THE COMMUNITY ARE NAVIGATING THEIR WAY TO BETTER HEALTH THROUGH S.A.I.L. (SENIOR ADVANTAGE IN LIFE), AN ENTICING, AND FREE MEMBERSHIP PROGRAM FOR INDIVIDUALS AGE 60 AND OVER. THIS COMPREHENSIVE ENDEAVOR OFFERS MEDICALLY FOCUSED SERVICES, DISCOUNTS AND ACTIVITIES TO MATURE ADULTS SEEKING A MORE ACTIVE AND FULFILLING QUALITY OF LIFE. MEMBERS ARE ENTITLED TO NUMEROUS BENEFITS THAT PROMOTE CONTINUED WELLNESS, INCLUDING HEALTH SEMINARS AND SCREENINGS; SAVINGS ON VISION WEAR, HEARING AIDS, DENTAL CARE AND PRESCRIPTIONS; COMPLEMENTARY HOSPITAL AMENITIES, FITNESS PROGRAMS AND AN INFORMATIVE QUARTERLY NEWSLETTER. SAIL PARTICIPANTS ALSO ENJOY SOCIAL AND RECREATIONAL EVENTS THROUGHOUT THE YEAR, GIVING THEM THE OPPORTUNITY TO LAUNCH NEW FRIENDSHIPS, HOBBIES AND INTERESTS WHILE INVIGORATING THEIR GOLDEN YEARS. THE MEDICAL CENTER ALSO PARTNERS WITH BRIDGEWATER COMMONS MALL TO OFFER A CLIMATE-CONTROLLED ENVIRONMENT FOR WALKERS SEVEN DAYS A WEEK THROUGH A HEALTHHIKE WALKING PROGRAM. MEDICATION ASSISTANCE PROGRAM: SOMERSET FAMILY PRACTICE AND THE COMMUNITY HEALTH DEPARTMENT HELP CONNECT UNDERINSURED PATIENTS WITH ACCESS TO AFFORDABLE OR FREE MEDICATIONS. A REGISTERED NURSE IDENTIFIES FREE MEDICATION PROGRAMS OFFERED THROUGH PHARMACEUTICAL COMPANIES AND ASSISTS IN THE APPLICATION PROCESS OR DIRECTS PATIENTS TO LOW COST ALTERNATIVES FOR MEDICATIONS. THE NURSE ALSO HELPS EDUCATE PATIENTS ABOUT MEDICATION SAFETY. DIABETES EDUCATION: THE EL PODER SOBRE DIABETES PROGRAM, MANAGED BY THE COMMUNITY HEALTH DEPARTMENT, SEEKS TO IMPROVE THE HEALTH AND WELL-BEING OF UNDERSERVED HISPANICS THROUGH DIABETES PREVENTION ACTIVITIES AND DISEASE MANAGEMENT. THE PROGRAM'S GOAL IS TO HELP INDIVIDUALS MAKE BEHAVIOR CHANGES THAT POSITIVELY IMPACT THEIR LONG-TERM HEALTH. HEALTHIER SOMERSET: SOMERSET MEDICAL CENTER HAS BROUGHT TOGETHER A COALITION OF SOMERSET COUNTY HEALTH AGENCIES, EMPLOYERS AND ORGANIZATIONS SEEKING TO IMPROVE THE HEALTH OF COUNTY RESIDENTS AT HOME AND WORK THROUGH A SERIES OF HEALTH AND WELLNESS INITIATIVES. MAGIC MIRROR PLAYERS: COORDINATED THROUGH THE COMMUNITY HEALTH DEPARTMENT, THE MAGIC MIRROR PLAYERS ARE VOLUNTEER ACTORS WHO VISIT CIVIC ORGANIZATIONS, SCHOOLS, RELIGIOUS CONGREGATIONS, CORPORATIONS AND OTHER GROUPS TO HELP AUDIENCES EXPLORE LIFE'S CHALLENGES AND DISCOVER MORE ABOUT THEIR FEELINGS AND THEMSELVES. THE PLAYERS PORTRAY REAL-LIFE ISSUES, SUCH AS PARENT-CHILD CONFLICTS AND FAMILY ILLNESS, THROUGH DRAMATIC PRESENTATIONS UTILIZING IMPROVISATIONAL AND ROLE-PLAYING TECHNIQUES. PERFORMANCES ARE FOLLOWED BY FACILITATED GROUP DISCUSSIONS AND INFORMATION REGARDING BEHAVIORAL HEALTH SERVICES AVAILABLE WITHIN THE COMMUNITY. SOMERSET MEDICAL CENTER HAS DEDICATED SUBSTANTIAL RESOURCES TO IMPROVING THE HEALTH AND WELLNESS OF SOMERSET COUNTY RESIDENTS THROUGH HEALTH SCREENINGS, EDUCATIONAL PROGRAMS AND COMMUNITY OUTREACH EFFORTS TO CHILDREN, ADULTS AND SENIORS. THESE PROGRAMS, OFFERED THROUGH THE MEDICAL CENTER'S COMMUNITY HEALTH DEPARTMENT, REACH 39,000 PEOPLE EACH YEAR.
COMMUNITY BENEFIT STATEMENT (CONTINUED)	CORE FORM, PART III; STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS	TOBACCO QUITCENTER ================== SMC'S TOBACCO DEPENDENCY TREATMENT PROGRAM ENLISTS A COMPREHENSIVE APPROACH TO HELP PATIENTS KICK THE SMOKING HABIT SAFELY AND SUCCESSFULLY. IN FACT, 73 PERCENT OF SMOKERS WHO SET A QUIT DATE AND COMPLETED TREATMENT AT THE QUITCENTER WERE TOBACCO FREE AT THEIR SIX-MONTH FOLLOW-UP. THE PROGRAM INCLUDES AN EVALUATION, COUNSELING AND, WHEN NEEDED, PHARMACOTHERAPY TO HELP DEAL WITH NICOTINE WITHDRAWAL SYMPTOMS. IT ALSO ADDRESSES ISSUES THAT CAN ACCOMPANY TOBACCO DEPENDENCY, SUCH AS DEPRESSION, EATING DISORDERS, FEARS OF WEIGHT GAIN, ANXIETY, SPOUSAL PROBLEMS AND WORK-RELATED STRESS. TREATMENTS ARE TAILORED TO EACH PATIENT'S NEEDS AND CAN BE COUPLED WITH ONE-ON-ONE EDUCATION AND MOTIVATIONAL TECHNIQUES. SOMERSET MEDICAL CENTER'S COMMITMENT TO THE COMMUNITY IS INTEGRATED INTO EVERY AREA OF PROGRAMMING. THIS COMMITMENT IS SEEN CLEARLY IN THE ACTIVITIES AND PROJECTS THAT ARE PLANNED TO MEET IDENTIFIED HEALTH NEEDS, TO FORM PARTNERSHIPS TO MEET THESE NEEDS AND TO IMPROVE THE HEALTH AND QUALITY OF LIFE OF THOSE THAT WE SERVE. EMERGENCY MEDICAL SERVICES ========================== SOMERSET MEDICAL CENTER HAS PROVIDED ADVANCED LIFE SUPPORT SERVICES TO SOMERSET COUNTY SINCE 1982. SOMERSET MEDICAL CENTER'S THREE MOBILE INTENSIVE CARE UNITS RESPOND TO OVER 7,500 REQUESTS FOR SERVICE ANNUALLY. THROUGH A SHARED SERVICES AGREEMENT WITH NEIGHBORING COMMUNITIES, SOMERSET MEDICAL CENTER ALSO PROVIDES PRIMARY AMBULANCE COVERAGE FOR MANVILLE AND RARITAN, BACKUP AMBULANCE COVERAGE FOR SOUTH BOUND BROOK AND BRIDGEWATER. IN ADDITION, THE MEDICAL CENTER PROVIDES DAYTIME AMBULANCE COVERAGE FOR BEDMINSTER AND FAR HILLS AND DAYTIME COVERAGE FOR SOUTH PLAINFIELD AND STAFFS TWO COUNTY-WIDE UNITS AVAILABLE TO RESPOND ANYWHERE IN SOMERSET COUNTY TO SUPPLEMENT COVERAGE BY VOLUNTEER RESCUE SQUADS. IN 2007, THE MEDICAL CENTER BEGAN OFFERING A NON-EMERGENCY AMBULANCE TRANSPORT SERVICE TO TRANSPORT DISCHARGED PATIENTS BETWEEN THE MEDICAL CENTER AND NURSING HOMES, ASSISTED LIVING FACILITIES, REHABILITATION CENTERS AND OTHER HEALTHCARE FACILITIES. IN 2009, SOMERSET MEDICAL CENTER'S EMERGENCY MEDICAL SERVICES (EMS) DEPARTMENT BECAME ONE OF THE FIRST IN NEW JERSEY TO BEGIN ADMINISTERING THERAPEUTIC HYPOTHERMIA - ONE OF THE MOST PROMISING NEW ADVANCES IN THE TREATMENT OF CARDIAC ARREST PATIENTS - BEFORE PATIENTS EVEN ARRIVE AT THE HOSPITAL. THIS PROCEDURE HAS BEEN SHOWN TO INCREASE SURVIVAL RATES AND MINIMIZE BRAIN DAMAGE IN PATIENTS RESUSCITATED AFTER A CARDIAC ARREST. THE SOONER THERAPEUTIC HYPOTHERMIA IS ADMINISTERED, THE MORE LIKELY THE PATIENT WILL BE ABLE TO PRESERVE BRAIN FUNCTION. IN ORDER TO SUPPORT LOCAL RESCUE SQUADS WITH THE ADDITION OF TRAINED VOLUNTEERS, THE MEDICAL CENTER'S EMS DEPARTMENT DEVELOPED AN EMERGENCY MEDICAL TECHNICIAN TRAINING PROGRAM FOR HIGH SCHOOL STUDENTS IN PARTNERSHIP WITH SOMERSET COUNTY BOARD OF CHOSEN FREEHOLDERS, SOMERSET COUNTY VOCATIONAL & TECHNICAL HIGH SCHOOL, SOMERSET COUNTY EMS CHIEF OFFICERS ASSOCIATION, RARITAN VALLEY COMMUNITY COLLEGE AND VOLUNTEER FIRST AID SQUADS IN SOMERSET COUNTY. THE CLASS IS THE ONLY ONE OF ITS KIND IN THE STATE AFFILIATED WITH A HOSPITAL. STUDENTS, WHO COMPLETE THE 16-WEEK CLASS, EARN SIX COLLEGE CREDITS TRANSFERABLE TO RARITAN VALLEY COMMUNITY COLLEGE. MANY OF THE GRADUATES OF THE CLASS NOW SERVE ON VOLUNTEER RESCUE SQUADS. THE MEDICAL CENTER'S EMERGENCY MEDICAL SERVICES DEPARTMENT ALSO PROVIDE A COMPREHENSIVE RANGE OF TRAINING PROGRAMS YEAR-ROUND FOR AREA RESCUE SQUAD MEMBERS AND COMMUNITY RESIDENTS, INCLUDING CPR AND FIRST AID CLASSES. GATEWAY TO HEALTH INFORMATION ============================= AS PART OF ITS COMMITMENT TO WELLNESS EDUCATION, SMC MAINTAINS AN EXTENSIVE COLLECTION OF HEALTH INFORMATION RESOURCES AVAILABLE TO ALL MEMBERS OF THE COMMUNITY. THE HOSPITAL CAMPUS HOUSES A COMPREHENSIVE MEDICAL LIBRARY WITH THE LATEST MEDICAL REFERENCE TEXTS AND PERIODICALS, AS WELL AS INTERNET ACCESS TO A WORLDWIDE MEDICAL INFORMATION NETWORK. THE FACILITY IS OPEN TO THE PUBLIC, HEALTHCARE PROFESSIONALS AND HOSPITAL EMPLOYEES ON WEEKDAYS FROM 8 A.M. TO 4 P.M. THE MEDICAL CENTER ALSO INVITES THE COMMUNITY TO RESEARCH AND EXPLORE HEALTH ISSUES ON ITS WEB SITE AT WWW.SOMERSETMEDICALCENTER.COM. THE SITE OFFERS A BROAD SPECTRUM OF HEALTH TIPS AND FEATURES, FACTS ON MEDICAL CONDITIONS AND INJURIES, DRUG INFORMATION AND A COMPLETE MEDICAL DICTIONARY. VISITORS CAN EVEN REVIEW VARIOUS MEDICAL PROCEDURES, CALCULATE THEIR OWN BODY MASS INDEX, AND SUBSCRIBE TO THE HOSPITAL'S FREE COMMUNITY MAGAZINES - HEALTHY EDITION AND SENIOR EDITION, OR ITS FREE E-NEWSLETTERS, HEALTHY LIVING OR MY BABY EXPECTATIONS. IN ADDITION, THE STEEPLECHASE CANCER CENTER ALSO OFFERS A RESOURCE LIBRARY FOR PATIENTS AND THEIR FAMILIES WHO ARE INTERESTED IN RESEARCHING THEIR DISEASE OR LOOKING FOR ADDITIONAL INFORMATION ABOUT THEIR TREATMENTS. THE LIBRARY OFFERS BOOKS, PERIODICALS AND INTERNET ACCESS. PHYSICIAN OUTREACH ================== SMC'S FAMILY PRACTICE RESIDENTS, AFFILIATED WITH SOMERSET FAMILY PRACTICE, AID YOUTHS IN THE COMMUNITY THROUGH ADDITIONAL OUTREACH, INCLUDING MISSIONS TO HONDURAS TO PROVIDE CARE. THESE MISSIONS NOT ONLY AID THOSE LESS FORTUNATE OUTSIDE OUR COUNTRY BUT ALSO HAVE ENHANCED THE CARE THAT WE PROVIDE TO OUR PATIENTS AT SOMERSET FAMILY PRACTICE CENTER. THE PHYSICIANS ALSO PARTICIPATE IN CAREER DAYS, HEALTH FAIRS AND ADMINISTER FLU SHOTS TO CITIZENS OF SEVERAL MUNICIPALITIES. PROFESSIONAL EDUCATION ====================== SMC ACTIVELY SUPPORTS HEALTHCARE PROFESSIONALS IN THEIR QUEST TO REMAIN ON TOP OF THEIR FIELDS. THE HOSPITAL IS ACCREDITED BY THE MEDICAL SOCIETY OF NEW JERSEY AND OTHER GOVERNING ASSOCIATIONS TO SPONSOR ONGOING EDUCATIONAL OPPORTUNITIES, INCLUDING CME (CONTINUING MEDICAL EDUCATION) COURSES FOR PHYSICIANS, CEU (CONTINUING EDUCATION UNITS) FOR NURSES, AND VARIOUS ADVANCED LIFE SUPPORT AND SPECIALTY CLASSES FOR EMERGENCY MEDICAL TECHNICIANS AND OTHER HEALTHCARE PROFESSIONALS. NURSES PRACTICING IN THE COMMUNITY SETTING, I.E., FAITH-BASED COMMUNITY NURSES AND SCHOOL NURSES ARE INVITED TO ATTEND SPECIFIC COURSES THAT OFFER CONTINUING EDUCATION CREDITS. STUDENT VOLUNTEER/EDUCATION PROGRAMS ==================================== ASPIRING DOCTORS, NURSES AND HEALTHCARE PROFESSIONALS ARE TREMENDOUSLY REWARDED THROUGH STUDENT VOLUNTEER OPPORTUNITIES AT SMC. HUNDREDS OF TEENS AND YOUNG ADULTS HAVE DONATED THEIR SUMMERS TO LEARNING MORE ABOUT HOSPITALS AND THEIR INTENDED CAREERS, WHILE GIVING BACK TO THEIR COMMUNITY. THE MEDICAL CENTER OFFERS A NURSE EXTERN PROGRAM FOR NURSING SCHOOL STUDENTS, A BRIDGE TO EMPLOYMENT PROGRAM FOR STUDENTS CONSIDERING HEALTHCARE CAREERS, A MONTH-LONG SENIOR PRACTICUM FOR HIGH SCHOOL STUDENTS INTERESTED IN HEALTH CAREERS, AND A TOUR PROGRAM FOR HIGH SCHOOL STUDENTS TO HELP INCREASE AWARENESS OF THE MANY HEALTHCARE CAREERS AVAILABLE. A VOLUNTEER/INTERNSHIP PROGRAM IS AVAILABLE FOR COLLEGE STUDENTS AND A VOLUNTEER PROGRAM FOR THOSE INTERESTED IN CLINICAL OR GENERAL SUPPORT AREAS. IN ADDITION TO TRAINING AND EDUCATING VOLUNTEERS TO THE VARIETY OF POSITIONS AVAILABLE TO THEM, THE VOLUNTEER SERVICES DEPARTMENT ALSO PARTNERS WITH AREA HIGH SCHOOLS AND STATE ORGANIZATIONS TO PROVIDE WEEKLY VOLUNTEER OPPORTUNITIES FOR DEVELOPMENTALLY DELAYED OR PHYSICALLY DISABLED STUDENTS TO LEARN SKILLS AND GAIN WORK EXPERIENCE.
OTHER PROGRAM SERVICES	CORE FORM, PART III; QUESTION 4D	EXPENSES INCURRED IN PROVIDING VARIOUS OTHER 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. PLEASE REFER TO THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT INCLUDED IN SCHEDULE O.
DISCLOSURE INFORMATION	CORE FORM, PART VI, SECTION A; QUESTIONS 6 & 7	SOMERSET HEALTH CARE CORPORATION ("SHCC") IS THE SOLE MEMBER OF THIS ORGANIZATION. SHCC HAS THE RIGHT TO ELECT THE MEMBERS OF THIS ORGANIZATION'S BOARD OF TRUSTEES AND HAS CERTAIN RESERVED POWERS AS DEFINED IN THIS ORGANIZATION'S BYLAWS.
DISCLOSURE INFORMATION	CORE FORM, PART VI, SECTION B; QUESTION 11B	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 ORGANIZATION'S BOARD OF TRUSTEEES HAS DELEGATED TO ITS AUDIT AND COMPLIANCE COMMITTEE THE RESPONSIBILITY TO OVERSEE AND COORDINATE THE FEDERAL FORM 990 PREPARATION, REVIEW AND FILING PROCESS. AS PART OF THE TAX RETURN PREPARATION PROCESS THE ORGANIZATION HIRED WITHUMSMITH+BROWN, P.C., 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 VARIOUS OTHER INDIVIDUALS OF THE ORGANIZATION 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 FINANCE PERSONNEL AND OTHER INDIVIDUALS FOR THEIR REVIEW. THE ORGANIZATION'S FINANCE PERSONNEL AND OTHER INDIVIDUALS 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 FINANCE PERSONNEL AND VARIOUS OTHER INDIVIDUALS FOR FINAL REVIEW AND APPROVAL PRIOR TO PROVIDING THE FORM 990 TO EACH VOTING MEMBER OF THE ORGANIZATION'S GOVERNING BODY.
DISCLOSURE INFORMATION	CORE FORM, PART VI, SECTION B; QUESTION 12	THE ORGANIZATION REGULARLY MONITORS AND ENFORCES COMPLIANCE WITH ITS CONFLICT OF INTEREST POLICY. ANNUALLY ALL MEMBERS OF THE BOARD OF TRUSTEES, OFFICERS, SENIOR MANAGEMENT AND OTHER KEY PERSONNEL ARE REQUIRED TO REVIEW THE EXISTING CONFLICT OF INTEREST POLICY AND COMPLETE A QUESTIONNAIRE. THE COMPLETED QUESTIONNAIRES ARE RETURNED TO THE ORGANIZATION'S VICE PRESIDENT OF REGULATORY AFFAIRS/CHIEF COMPLIANCE OFFICER FOR REVIEW. THEREAFTER THE VICE PRESIDENT OF REGULATORY AFFAIRS/CHIEF COMPLIANCE OFFICER PREPARES A SUMMARY OF THE COMPLETED QUESTIONNAIRES WHICH CONTAINS INFORMATION DISCLOSED ON AN INDIVIDUAL BY INDIVIDUAL BASIS. THIS SUMMARY IS THEN PROVIDED TO THE ORGANIZATION'S PRESIDENT/CHIEF EXECUTIVE OFFICER FOR REVIEW. THEREAFTER, THE PRESIDENT/CHIEF EXECUTIVE OFFICER OF THE ORGANIZATION PRESENTS THIS SUMMARY TO SOMERSET MEDICAL CENTER'S AUDIT AND COMPLIANCE COMMITTEE OF THE BOARD OF TRUSTEES FOR ITS REVIEW AND DISCUSSION.
DISCLOSURE INFORMATION	CORE FORM, PART VI, SECTION B; QUESTION 15	THE ORGANIZATION'S BOARD OF TRUSTEES HAS AN EXECUTIVE COMPENSATION COMMITTEE ("COMMITTEE"). THE COMMITTEE HAS ADOPTED A WRITTEN EXECUTIVE COMPENSATION PHILOSOPHY WHICH IT FOLLOWS WHEN IT REVIEWS OF THE COMPENSATION AND BENEFITS OF THE ORGANIZATION'S SENIOR MANAGEMENT, INCLUDING THE PRESIDENT/CHIEF EXECUTIVE OFFICER. 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. IN 2008, THE EXECUTIVE COMPENSATION COMMITTEE WAS A RECOMMENDING BODY TO THE BOARD OF TRUSTEES. THE RECOMMENDATIONS OF THE EXECUTIVE COMPENSATION COMMITTEE WERE SUBMITTED FOR FULL APPROVAL BY THE BOARD OF TRUSTEES. 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, INCLUDING THE PRESIDENT/CHIEF EXECUTIVE OFFICER, CHIEF OPERATING OFFICER AND CHIEF FINANCIAL OFFICER. 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 REVIEWING OF HOSPITAL AND HEALTHCARE SYSTEM EXECUTIVE COMPENSATION AND BENEFITS. THE PEER GROUP OF EMPLOYERS TO BE CONSIDERED IN MEASURING THE COMPETITIVENESS OF THE EXECUTIVE COMPENSATION PROGRAM NECESSARY TO RECRUIT AND RETAIN TOP EXECUTIVE TALENT CONSISTS OF MAJOR TEACHING HOSPITALS IN THE NORTHEAST REGION OF THE UNITED STATES. THE COMMITTEE ADEQUATELY DOCUMENTED ITS 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 ONLY APPLIES TO CERTAIN SENIOR MANAGEMENT PERSONNEL, INCLUDING BUT NOT LIMITED TO THE PRESIDENT/CHIEF EXECUTIVE OFFICER. THE COMPENSATION AND BENEFITS OF THE OTHER INDIVIDUALS CONTAINED IN THIS FORM 990 IS REVIEWED ANNUALLY BY THE PRESIDENT/CHIEF EXECUTIVE OFFICER AND SENIOR STAFF 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.
DISCLOSURE INFORMATION	CORE FORM, PART VI, SECTION C; QUESTION 19	THE ORGANIZATION HAS ISSUED TAX-EXEMPT BONDS TO FINANCE VARIOUS CAPITAL IMPROVEMENT PROJECTS, RENOVATIONS AND EQUIPMENT. IN CONJUNCTION WITH THE ISSUANCE OF THESE TAX-EXEMPT BONDS, THE ORGANIZATION'S FINANCIAL STATEMENTS WERE INCLUDED WITH THE TAX-EXEMPT BOND PROSPECTUS WHICH WAS MADE AVAILABLE TO THE GENERAL PUBLIC FOR REVIEW. THE ORGANIZATION'S FILED CERTIFICATE OF INCORPORATION AND ANY AMENDMENTS CAN BE OBTAINED AND REVIEWED THROUGH THE STATE OF NEW JERSEY SECRETARY OF STATE.
COMPENSATION INFORMATION DISCLOSURE	CORE FORM, PART VII AND SCHEDULE J	PART VII AND SCHEDULE J REFLECT CERTAIN BOARD MEMBERS AND OFFICERS RECEIVING COMPENSATION AND BENEFITS FROM THIS ORGANIZATION. PLEASE NOTE THIS REMUNERATION WAS FOR SERVICES RENDERED AS FULL-TIME EMPLOYEES OF THE ORGANIZATION AND NOT FOR SERVICES RENDERED AS A VOTING MEMBER OR OFFICER OF THIS ORGANIZATION'S BOARD OF TRUSTEES.
RELATED HOURS INFORMATION	CORE FORM, PART VII, SECTION A	This organization is AN AFFILIATE WITHIN 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, REPRESENTS 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 SIMILAR TO THE HOURS REFLECTED ON PART VII OF THIS FORM 990. THE HOURS REFLECTED ON PART VII OF THIS FORM 990, FOR BOARD MEMBERS WHO RECEIVE COMPENSATION FOR SERVICES RENDERED IN A NON-BOARD CAPACITY AND PAID OFFICERS, REFLECT TOTAL HOURS WORKED PER WEEK ON BEHALF OF THE SYSTEM; NOT SOLELY THIS ORGANIZATION.
OTHER CHANGES IN NET ASSETS	CORE FORM, PART XI; QUESTION 5	OTHER CHANGES IN FUND BALANCE INCLUDE: - CHANGE IN NET UNREALIZED GAINS AND LOSSES ON INVESTMENTS OTHER THAN TRADING SECURITIES - ($147,601) - PENSION LIABILITY ADJUSTMENT - ($9,181,264) - NET ASSETS RELEASED FROM RESTRICTIONS USED FOR PROPERTY AND EQUIPMENT - $216,384 - CHANGE IN INTEREST IN NET ASSETS OF SOMERSET MEDICAL CENTER FOUNDATION, INC.; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION - $787,270 - TEMPORARILY RESTRICTED CONTRIBUTIONS FROM SOMERSET MEDICAL CENTER FOUNDATION, A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION - $969,553 - NET ASSETS RELEASED FROM TEMPORARY RESTRICTIONS FOR USE IN OPERATIONS - ($440,831) - NET ASSETS RELEASED FROM TEMPORARY RESTRICTIONS FOR PROPERTY AND EQUIPMENT - ($216,384)
AUDITED FINANCIAL STATEMENTS	CORE FORM, PART XII; QUESTION 2	AN INDEPENDENT CPA FIRM AUDITED THE FINANCIAL STATEMENTS OF THE TAXPAYER FOR THE YEARS ENDED DECEMBER 31, 2011 AND DECEMBER 31, 2010; RESPECTIVELY, AND ISSUED A CERTIFIED OPINION ON THOSE AUDITED FINANCIAL STATEMENTS. AN UNQUALIFIED OPINION WAS ISSUED BY THE INDEPENDENT CPA FIRM EACH YEAR. THE TAXPAYER'S AUDIT AND COMPLIANCE COMMITTEE OF ITS BOARD OF TRUSTEES ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND THE SELECTION OF AN INDEPENDENT AUDITOR.

For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.

Cat. No. 51056K

Schedule O (Form 990 or 990-EZ) 2011

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE R
(Form 990)

Department of the Treasury
Internal Revenue Service

Related Organizations and Unrelated Partnerships

Complete if the organization answered "Yes" to Form 990, Part IV, line 33, 34, 35, 36, or 37.
MediumBullet

Attach to Form 990. MediumBullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization

SOMERSET MEDICAL CENTER

Employer identification number

22-1487350

Part I

Identification of Disregarded Entities (Complete if the organization answered "Yes" on Form 990, Part IV, line 33.)

(a) Name, address, and EIN of disregarded entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Total income	(e) End-of-year assets	(f) Direct controlling entity

Part II

Identification of Related Tax-Exempt Organizations (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related tax-exempt organizations during the tax year.)

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Exempt Code section	(e) Public charity status (if section 501(c)(3))	(f) Direct controlling entity	(g) Section 512(b)(13) controlled organization
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Exempt Code section	(e) Public charity status (if section 501(c)(3))	(f) Direct controlling entity	Yes	No
(1) SOMERSET COMMUNITY CARE CORP 110 REHILL AVENUE SOMERVILLE,NJ08876 22-3295495	SUPPORT SMC	NJ	501(C)(3)	509(A)(2)	SHCC		No
(2) SOMERSET HEALTH CARE AFFILIATES INC 110 REHILL AVENUE SOMERVILLE,NJ08876 22-2665685	SUPPORT SMC	NJ	501(C)(3)	509(A)(2)	SHCC		No
(3) SOMERSET HEALTH CARE CORP 110 REHILL AVENUE SOMERVILLE,NJ08876 22-2765539	SUPPORT SMC	NJ	501(C)(3)	509(A)(2)	NA		No
(4) SOMERSET MEDICAL CENTER FOUNDATION INC 110 REHILL AVENUE SOMERVILLE,NJ08876 22-3294408	SUPPORT SMC	NJ	501(C)(3)	509(A)(1)	SHCC		No

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 50135Y

Schedule R (Form 990) 2011

Page 2

Part III

Identification of Related Organizations Taxable as a Partnership (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a partnership during the tax year.)

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(f) Share of total income	(g) Share of end-of-year assets	(h) Disproprtionate allocations?		(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	(j) General or managing partner?
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(f) Share of total income	(g) Share of end-of-year assets	Yes	No	(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No

Part IV

Identification of Related Organizations Taxable as a Corporation or Trust (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a corporation or trust during the tax year.)

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(e) Type of entity (C corp, S corp, or trust)
(1) EOS INC 110 REHILL AVENUE SOMERVILLE,NJ08876 30-0382075	INACTIVE	NJ	N/A	C CORP.
(2) NEW JERSEY HEALTH INC 110 REHILL AVENUE SOMERVILLE,NJ08876 22-3339824	INACTIVE	NJ	N/A	C CORP.
(3) NEW JERSEY HEALTHCARE ASSOC PC 110 REHILL AVENUE SOMERVILLE,NJ08876 22-3339827	MEDICAL SVCS.	NJ	N/A	C CORP.
(4) NJ MGT SERVICES ORGANIZATION 110 REHILL AVENUE SOMERVILLE,NJ08876 22-3339486	MANAGEMENT	NJ	N/A	C CORP.
(5) SHC ENTERPRISES INC 110 REHILL AVENUE SOMERVILLE,NJ08876 22-2665595	MANAGEMENT	NJ	N/A	C CORP.
(6) SOMERSET REALTY GROUP INC 110 REHILL AVENUE SOMERVILLE,NJ08876 22-3269525	REAL ESTATE	NJ	N/A	C CORP.
(7) SOMERSET STAFFING CORP 110 REHILL AVENUE SOMERVILLE,NJ08876 11-3829651	STAFFING	NJ	N/A	C CORP.
(8) WARREN INTERNAL MEDICINE PC 110 REHILL AVENUE SOMERVILLE,NJ08876 35-2366107	MEDICAL SVCS.	NJ	N/A	C CORP.
(9) FRANKLIN MEDICAL GROUP PC 110 REHILL AVENUE SOMERVILLE,NJ08876 27-2209369	MEDICAL SVCS.	NJ	N/A	C CORP.
(10) ACUCARE PHYSICIANS PC 110 REHILL AVENUE SOMERVILLE,NJ08876 22-3566010	MEDICAL SVCS.	NJ	N/A	C CORP.
(11) SOMERSET MEDICAL CARE PARTNERS PC 110 REHILL AVENUE SOMERVILLE,NJ08876 38-3834110	MEDICAL SVCS.	NJ	N/A	C CORP.
(12) SOMERSET CARDIOLOGY PARTNERS PC 110 REHILL AVENUE SOMERVILLE,NJ08876 90-0668649	MEDICAL SVCS.	NJ	N/A	C CORP.
(13) SOMERSET CARDIOLOGY GROUP PC 110 REHILL AVENUE SOMERVILLE,NJ08876 37-1640531	MEDICAL SVCS.	NJ	N/A	C CORP.
(14) SOMERSET CHEST & INTENSIVE CARE MED PC 110 REHILL AVENUE SOMERVILLE,NJ08876 38-3848048	MEDICAL SVCS.	NJ	N/A	C CORP.

Schedule R (Form 990) 2011

Page 3

Part V

Transactions With Related Organizations (Complete if the organization answered "Yes" on Form 990, Part IV, line 34, 35, 35A, or 36.)

Note. Complete line 1 if any entity is listed in Parts II, III or IV.

Yes

1 During the tax year, did the orgranization engage in any of the following transactions with one or more related organizations listed in Parts II-IV?

a Receipt of (i) interest (ii) annuities (iii) royalties (iv) rent from a controlled entity . . . . . . . . . . . . . . . . . . . . . . .

b Gift, grant, or capital contribution to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

c Gift, grant, or capital contribution from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

d Loans or loan guarantees to or for related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

e Loans or loan guarantees by related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

f Sale of assets to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

g Purchase of assets from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

h Exchange of assets with related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

i Lease of facilities, equipment, or other assets to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

j Lease of facilities, equipment, or other assets from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . .

k Performance of services or membership or fundraising solicitations for related organization(s) . . . . . . . . . . . . . . . . . . . .

Yes

l Performance of services or membership or fundraising solicitations by related organization(s) . . . . . . . . . . . . . . . . . . . .

m Sharing of facilities, equipment, mailing lists, or other assets with related organization(s) . . . . . . . . . . . . . . . . . . . . .

n Sharing of paid employees with related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

o Reimbursement paid to related organization(s) for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

p Reimbursement paid by related organization(s) for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

q Other transfer of cash or property to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

r Other transfer of cash or property from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If the answer to any of the above is "Yes," see the instructions for information on who must complete this line, including covered relationships and transaction thresholds.

(a) Name of other organization	(b) Transaction type(a-r)	(c) Amount involved	(d) Method of determining amount involved
(1)
(2)
(3)
(4)
(5)
(6)

Schedule R (Form 990) 2011

Page 4

Part VI

Unrelated Organizations Taxable as a Partnership (Complete if the organization answered "Yes" on Form 990, Part IV, line 37.)

Provide the following information for each entity taxed as a partnership through which the organization conducted more than five percent of its activities (measured by total assets or gross revenue) that was not a related organization. See instructions regarding exclusion for certain investment partnerships.

(a) Name, address, and EIN of entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	(e) Are all partners section 501(c)(3) organizations?		(f) Share of total income	(g) Share of end-of-year assets	(h) Disproprtionate allocations?		(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	(j) General or managing partner?
(a) Name, address, and EIN of entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	Yes	No	(f) Share of total income	(g) Share of end-of-year assets	Yes	No	(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No

Schedule R (Form 990) 2011

Page 5

Part VII

Supplemental Information

Complete this part to provide additional information for responses to questions on Schedule R (see instructions).

Identifier	Return Reference	Explanation

Additional Data

Software ID:
Software Version:

1	Briefly describe the organization’s mission or most significant activities: THE MISSION AT SOMERSET MEDICAL CENTER IS TO PROVIDE COMPREHENSIVE HEALTHCARE SERVICES OF THE HIGHEST QUALITY TO OUR REGION IN A PATIENT-FIRST ENVIRONMENT.
2	Check this box
3	Number of voting members of the governing body (Part VI, line 1a).....	3	19
4	Number of independent voting members of the governing body (Part VI, line 1b) ....	4	16
5	Total number of individuals employed in calendar year 2011 (Part V, line 2a) ...	5	2,797
6	Total number of volunteers (estimate if necessary) ....	6	845
7a	Total unrelated business revenue from Part VIII, column (C), line 12 ..	7a	325,751
b	Net unrelated business taxable income from Form 990-T, line 34 ..	7b	-688,327

		Prior Year	Current Year
8	Contributions and grants (Part VIII, line 1h) .........	1,057,148	4,371,178
9	Program service revenue (Part VIII, line 2g) .........	254,387,160	251,370,618
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	4,387,344	2,481,879
11	Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)	1,942,148	2,167,364
12	Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)...................	261,773,800	260,391,039
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...	0	303,726
14	Benefits paid to or for members (Part IX, column (A), line 4).....	0	0
15	Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10)	136,022,280	136,146,403
16a	Professional fundraising fees (Part IX, column (A), line 11e).....	0	0
b	Total fundraising expenses (Part IX, column (D), line 25) 0
17	Other expenses (Part IX, column (A), lines 11a–11d, 11f–24f)....	124,579,333	128,461,765
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	260,601,613	264,911,894
19	Revenue less expenses. Subtract line 18 from line 12.......	1,172,187	-4,520,855
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16).............	240,715,442	229,541,205
21	Total liabilities (Part X, line 26).............	182,393,238	183,752,729
22	Net assets or fund balances. Subtract line 21 from line 20.....	58,322,204	45,788,476

Sign Here

	Signature of officer	Date

	Type or print name and title.


4a	(Code: ) (Expenses $ 15,248,568 including grants of $ 0 ) (Revenue $ 11,859,802 )
	SOMERSET MEDICAL CENTER'S OPERATING ROOM SUPPORTS BOTH INPATIENT AND OUTPATIENT PROCEDURES AND PERFORMS MORE THAN 7,500 SURGERIES EACH YEAR. THERE ARE 14 OPERATING SUITES. ALL FEATURE HIGH DEFINITION DIGITAL CAMERAS AND THE LATEST AUDIO-VISUAL TECHNOLOGIES USED FOR CONVENTIONAL, LAPAROSCOPIC AND ROBOTIC SURGERIES. OUR OR NURSES ARE CERTIFIED IN THEIR RESPECTIVE SPECIALTIES AND OFFER THE BEST CARE AND EXPERTISE IN THEIR FIELD. IN 2008 A CLINICAL TRIAL WAS LAUNCHED FOR PATIENTS WITH SPINAL STENOSIS. THE TRIAL OFFERS, FOR PATIENTS WHO FIT THE CRITERIA, AN OPPORTUNITY FOR SURGERY THAT COULD IMPROVE THEIR QUALITY OF LIFE AND MOBILITY. OTHER SURGICAL ENHANCEMENTS INCLUDED NAVIGATION TECHNOLOGY FOR ORTHOPEDIC AND NEUROLOGICAL CASES, WHICH PROMOTE MORE ACCURACY AND PREVENT DAMAGE TO SURROUNDING TISSUES. THE MEDICAL CENTER ALSO OFFERS THE LATEST "STATE-OF-THE-ART" TECHNOLOGY FOR SINUS SURGERY. IN ADDITION, THE ORTHOPEDICS DEPARTMENT WAS HONORED AS THE RECIPIENT OF THE 2009 AND 2010 HEALTHGRADES ORTHOPEDIC EXCELLENCE AWARD, WHICH RANKED ORTHOPEDIC SURGERY SERVICES AMONG THE TOP 5% OF HOSPITALS IN THE NATION FOR OVERALL ORTHOPEDIC SURGERY. THE JOINT SURGERY INSTITUTE AT SMC IS UNDERWAY AND OFFERS COMPREHENSIVE CARE TO PATIENTS LOOKING TO HAVE JOINT REPLACEMENT SURGERY. THE PROGRAM OFFERS CARE, EDUCATION AND SERVICES FOR THE PATIENT AND THEIR FAMILIES FROM THE PRE-OPERATIVE ADMISSION PHASE ALL THE WAY THROUGH TO DISCHARGE AND REHABILITATION. THE ROBOTICS PROGRAM AT SMC HAS THE LATEST IN MIS ROBOTIC TECHNOLOGY. THE SPECIALLY TRAINED OR STAFF OF THE ROBOTIC TEAM BEGAN CARING FOR THEIR FIRST PATIENTS IN THE BEGINNING OF JUNE 2010. THE SMC GI CENTER IS ALSO STAFFED BY SPECIALLY TRAINED NURSES WHO ARE CERTIFIED IN GASTROENTEROLOGY AND ARE PART OF A COLLABORATIVE PERIOPERATIVE TEAM WORKING WITH THE PHYSICIANS TO MAKE THE PATIENT'S EXPERIENCE A SAFE AND PLEASANT VISIT. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT FOR ADDITIONAL INFORMATION. SOMERSET MEDICAL CENTER HAS RECEIVED THE JOINT COMMISSION'S GOLD SEAL OF APPROVAL FOR TOTAL KNEE AND TOTAL HIP REPLACEMENT SURGERY. THE MEDICAL CENTER HAS ALSO BEEN HONORED WITH THE 2011 HEALTHGRADES ORTHOPEDIC SURGERY EXCELLENCE AWARD, RANKING IN THE TOP 10 PERCENT IN THE NATION FOR ORTHOPEDIC CARE.

4b	(Code: ) (Expenses $ 2,788,948 including grants of $ 0 ) (Revenue $ 4,613,282 )
	The Somerset Medical Center Cardiac Catheterization Laboratory Department provides twenty-four hour/seven day a week services and performs invasive cardiovascular and radiological diagnostic and therapeutic procedures to meet the needs of the community. All patients referred to the Cardiac Cath Lab Procedures will have their procedure performed regardless of race, ethnicity, religion, national origin, citizenship, age, sex, pre-existing medical condition, physical or mental handicap, insurance status, economic status or ability to pay for medical services. The physician and staff strive for optimal patient safety and optimal data collection within the framework of the procedures performed. The Cardiac Catheterization Laboratory cooperateS with other departments/care settings of Somerset Medical Center and with members of the outside medical community in providing quality patient care. In general, adult patients (18 years and older) with clinical indications for procedures approved are to be candidates for admission. Adult procedures which may be done in the Cardiac Catheterization Laboratory include, but are not limited to the following: - Right heart catheterization - Left heart catheterization - Angiogram of coronary arteries and bypass grafts - Percutaneous Coronary Intervention (PCI) - Pericardiocentesis - Intra Coronary and Peripheral administration of thrombolytic agents - Temporary and Permanent Pacemaker insertion - Intra-aortic balloon pump insertion (IABP) - Peripheral angiograms and interventional procedures - Mobile Nurse PICC Team Cardiac Catheterization Laboratory cases are scheduled from 6:30 AM until 5:30 PM Monday through Friday. Emergency service is provided seven days a week, 24 hours a day by on-call staff. The Lab performs over 1,500 procedures annually. In 2011 93% of all patients experiencing an ST elevation myocardial infarction (Heart Attack) received an angioplasty in under 90 minutes. Also in 2011 Patient satisfaction scores were in the 99% for 3 quarters. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT FOR ADDITIONAL INFORMATION.

4c	(Code: ) (Expenses $ 1,067,415 including grants of $ 0 ) (Revenue $ 1,864,180 )
	THE MATERNAL CHILD HEALTH (MCH) DEPARTMENT AT SOMERSET MEDICAL CENTER IS COMMITTED TO PROMOTING THE TOTAL WELLBEING OF THE FAMILY UNIT BEFORE, DURING AND AFTER DELIVERY. OUR LEVEL II NURSERY ALSO CAN PROVIDE CARE TO OUR INFANTS WHO REQUIRE CLOSE OBSERVATION, MONITORING AND INTERVENTIONS. THE MCH CONSISTS OF SEVERAL UNITS THAT COMPLIMENT DIFFERENT AREAS OF CARE FOR OUR CHILDBEARING FAMILIES AND THEIR LOVED ONES. OUR MATERNITY COMMUNITY EDUCATION DEPARTMENT OFFERS A WIDE VARIETY OF CHILDBIRTH, BREASTFEEDING, PARENTING, SIBLING AND GRANDPARENT CLASSES. LABOR AND DELIVERY PROVIDES EXPERT CLINICAL SUPPORT FOR OUR LABORING CLIENTS WITH A VARIETY OF DIAGNOSIS AND CONDITIONS ADHERING TO CRITERIA FOR INTERMEDIATE CARE. WE OFFER 24 HOUR IN HOUSE PHYSICIAN COVERAGE FOR OBSTETRICS, NEONATOLOGY AND ANESTHESIA. POST-PARTUM CARE IS PROVIDED IN OUR PRIVATE ROOMS. MCH HAS MET OR EXCEEDED ALL QUALITY BENCHMARKS FOR FALLS, INFECTION, AND CUSTOMER SATISFACTION. OUR DEPARTMENT ALSO HAS 65% OF NURSES NATIONALLY CERTIFIED IN THEIR SPECIALTY. THE CLINICAL KNOWLEDGE OF BEST PRACTICE AND THE COLLABORATIVE EFFORT WITH OUR PHYSICIANS DRAMATICALLY REDUCED ELECTIVE INDUCTIONS BELOW 39 WEEKS. THIS REDUCTION WAS ACKNOWLEDGED BY THE LEAP FROG ORGANIZATION AND CONTRIBUTED TO SOMERSET MEDICAL CENTER'S LEAP FROG DESIGNATION. MATERNAL CHILD HEALTH WAS RECOGNIZED IN 2012 AS DEPARTMENT OF THE YEAR FOR THEIR COMMITMENT TO PROFESSIONAL EXCELLENCE, TEAM WORK AND CUSTOMER SATISFACTION. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT FOR ADDITIONAL INFORMATION.

4d	Other program services (Describe in Schedule O.)
	(Expenses $ 219,346,144 including grants of $ 303,726 ) (Revenue $ 233,359,105 )
4e	Total program service expenses$ 238,451,075

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)............	5,853,737	0	502,918

				(A) Total revenue	(B) Related or exempt function revenue	(C) Unrelated business revenue	(D) Revenue excluded from tax under sections 512, 513, or 514
1a	Federated campaigns..1a
b	Membership dues....1b
c	Fundraising events....1c
d	Related organizations...1d		90,000
e	Government grants (contributions)1e		4,281,178

f	All other contributions, gifts, grants, and similar amounts not included above1f
g	Noncash contributions included in lines 1a-1f:$
h	Total. Add lines 1a-1f.......			4,371,178
			Business Code
2a	NET PATIENT SERVICE REVENUE		541,900	249,318,394	249,318,394
b	OTHER HEALTHCARE RELATED REVENUE		541,900	2,052,224	2,052,224
c
d
e
f	All other program service revenue .
g	Total. Add lines 2a–2f........			251,370,618
3	Investment income (including dividends, interest
	and other similar amounts).....			2,133,796			2,133,796
4	Income from investment of tax-exempt bond proceeds..			7,255			7,255
5	Royalties............			0
		(i) Real	(ii) Personal
6a	Gross rents	511,230
b	Less: rental expenses
c	Rental income or (loss)	511,230
d	Net rental income or (loss).......			511,230			511,230
		(i) Securities	(ii) Other
7a	Gross amount from sales of assets other than inventory		340,828
b	Less: cost or other basis and sales expenses
c	Gain or (loss)		340,828
d	Net gain or (loss)..........			340,828			340,828
8a	Gross income from fundraising events (not including $ of contributions reported on line 1c). See Part IV, line 18 ...
	a
b	Less: direct expenses ...b
c	Net income or (loss) from fundraising events..			0
9a	Gross income from gaming activities. See Part IV, line 19 ...
	a
b	Less: direct expenses ...b
c	Net income or (loss) from gaming activities...			0
10a	Gross sales of inventory, less returns and allowances .
	a
b	Less: cost of goods sold ..b
c	Net income or (loss) from sales of inventory..			0
Miscellaneous Revenue			Business Code
11a	CAFETERIA		722,210	914,812			914,812
b	PHYSICIAN ANSWERING SERVICE		561,000	325,751		325,751
c	SECURITY		900,099	213,648			213,648
d	All other revenue ....			201,923			201,923
e	Total. Add lines 11a–11d ......			1,656,134
12	Total revenue. See Instructions....			260,391,039	251,370,618	325,751	4,323,492


				(A) Beginning of year		(B) End of year
1	Cashnon-interest-bearing ..........			5,045	1	5,045
2	Savings and temporary cash investments .......			6,872,214	2	5,833,088
3	Pledges and grants receivable, net .........			0	3	0
4	Accounts receivable, net .........			33,809,000	4	28,137,568
5	Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
	Schedule L ..........			0	5	0
6	Receivables from other disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B). Complete Part II of
	Schedule L ..........			0	6	0
7	Notes and loans receivable, net .............			5,166,104	7	2,459,911
8	Inventories for sale or use ..............			3,560,792	8	3,578,760
9	Prepaid expenses and deferred charges ............			1,380,460	9	1,584,822
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	276,974,439
b	Less: accumulated depreciation. .....	10b	143,742,351	135,293,616	10c	133,232,088
11	Investments—publicly traded securities ..........			0	11	0
12	Investments—other securities. See Part IV, line 11 ......			0	12	0
13	Investments—program-related. See Part IV, line 11 ..			51,406,407	13	49,114,662
14	Intangible assets .........			1,446,307	14	3,189,525
15	Other assets. See Part IV, line 11 ...........			1,775,497	15	2,405,736
16	Total assets. Add lines 1 through 15 (must equal line 34)...			240,715,442	16	229,541,205
17	Accounts payable and accrued expenses .			36,623,930	17	34,019,994
18	Grants payable ..........			0	18	0
19	Deferred revenue ..........			5,290,774	19	4,949,946
20	Tax-exempt bond liabilities ..........			108,451,948	20	106,615,497
21	Escrow or custodial account liability. Complete Part IV of Schedule D..			0	21	0
22	Payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........			0	22	0
23	Secured mortgages and notes payable to unrelated third parties ..			1,876,284	23	958,573
24	Unsecured notes and loans payable to unrelated third parties ....			0	24	0
25	Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D.....			30,150,302	25	37,208,719
26	Total liabilities. Add lines 17 through 25.....			182,393,238	26	183,752,729
	Organizations that follow SFAS 117, check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets .....			54,643,137	27	41,009,801
28	Temporarily restricted net assets .....			2,539,200	28	3,638,808
29	Permanently restricted net assets .....			1,139,867	29	1,139,867
	Organizations that do not follow SFAS 117, check here and complete lines 30 through 34.
30	Capital stock or trust principal, or current funds .....				30
31	Paid-in or capital surplus, or land, building or equipment fund .....				31
32	Retained earnings, endowment, accumulated income, or other funds				32
33	Total net assets or fund balances .....			58,322,204	33	45,788,476
34	Total liabilities and net assets/fund balances .....			240,715,442	34	229,541,205