TY 2012 Form 990

(A) Name and Title	(B) Average hours per week (list any hours for related organizations below dotted line)	(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) MVSACK........................................................................ PRESIDENT	3.00 .......................40.00	X	X	0	1,097,905	92,979
(2) WJ DOHERTY MD........................................................................ DIRECTOR / C	3.00 .......................40.00	X		0	403,506	9,548
(3) EPBUTLER MD........................................................................ DIRECTOR	3.00 .......................40.00	X		266,625	51,988	62,142
(4) J KEENAN........................................................................ TREASURER	3.00 .......................	X		0	0	0
(5) D WEST........................................................................ DIRECTOR	4.00 .......................	X		0	0	0
(6) RS CUMMINGS........................................................................ DIRECTOR	3.00 .......................	X		0	0	0
(7) KE HENRIKSON MD........................................................................ DIRECTOR	3.00 .......................	X		0	0	0
(8) J HERRINGTON........................................................................ DIRECTOR	3.00 .......................	X		0	0	0
(9) E GEORGE........................................................................ DIRECTOR	3.00 .......................	X		0	0	0
(10) R SWANSON JR........................................................................ DIRECTOR	3.00 .......................	X		0	0	0
(11) W LAWRENCE III........................................................................ DIRECTOR	3.00 .......................	X		0	0	0
(12) JA HACKETT SR........................................................................ DIRECTOR	3.00 .......................	X		0	0	0
(13) WF RUCCI JR........................................................................ DIRECTOR	3.00 .......................	X		0	0	0
(14) J KALOYANIDES........................................................................ DIRECTOR	3.00 .......................	X		0	0	0
(15) S GLASSER........................................................................ DIRECTOR	3.00 .......................	X		0	0	0
(16) J NANIA........................................................................ CFO/ASST. TR	3.00 .......................40.00		X	0	553,998	33,423
(17) C WHIPPLE........................................................................ ASST.CLERK/G	3.00 .......................40.00		X	0	270,769	26,942

(A) Name and Title	(B) Average hours per week (list any hours for related organizations below dotted line)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)	(F) Estimated amount of other compensation from the organization and related organizations
(18) L PETROUS........................................................................ ASST. SECRET	40.00 .......................	X				80,091	0	9,287
(19) S PICHETTE........................................................................ ASST. CLERK	40.00 .......................	X				0	0	0
(20) TGIOVE........................................................................ VP-AMBULATOR	40.00 .......................		X			408,070	0	16,414
(21) S HAND........................................................................ VP-ANCILLARY	40.00 .......................		X			398,240	0	30,416
(22) K HOPPE........................................................................ PHYSICIAN- D	40.00 .......................		X			325,055	0	34,449
(23) M TURILLI........................................................................ VP-FISCAL	40.00 .......................		X			310,861	0	33,438
(24) C DRESSER........................................................................ VP-INFORMATI	40.00 .......................		X			219,255	0	21,531
(25) D RICHARDSON........................................................................ VP-SUPPORT S	40.00 .......................		X			210,596	0	39,427
(26) M MCCARTHY........................................................................ VP-EDUCATION	40.00 .......................		X			192,410	0	31,882
(27) M PIEROG........................................................................ VO-QUALITY A	40.00 .......................		X			189,773	0	22,598
(28) J PENNACCHIO MD........................................................................ ONCOLOGY MD	40.00 .......................			X		453,932	0	25,365
(29) R EISENBERG MD........................................................................ ONCOLOGY MD	40.00 .......................			X		398,190	0	36,462
(30) L MCCADDEN........................................................................ NURSE CONSUL	40.00 .......................			X		347,242	0	35,050
(31) RJ WELCH MD........................................................................ PSYCH MD	40.00 .......................			X		257,055	0	42,843
(32) S SCHURGIN MD........................................................................ CLINICAL MD	40.00 .......................			X		213,757	0	5,170
(33) A MACDONALD........................................................................ FMR. SEC. /	3.00 .......................40.00				X	0	33,196	0

(A) Name and business address	(B) Description of services	(C) Compensation
SODEXHO INC & AFFILIATESPO BOX 360170PITTSBURGHPA152516170	MGT/CONSULTING	2,165,773
MAYO COLLABORATIVE SERVICES INCPO BOX 9146MINNEAPOLISMN55480	LAB ANALYSIS	1,799,157
PATRIOT MEDICAL TECH OF OHIO INCPO BOX 415000NASHVILLETN372415000	MEDICAL EQUIP	1,225,857
ALLIED BARTON SERVICESPO BOX 828854PHILADELPHIAPA191828854	SECURITY	1,146,894
ANGELICA CORPORATIONPO BOX 823283PHILADELPHIAPA191823283	LAUNDRY	993,157
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 55

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
2	Grants and other assistance to individuals in the United States. See Part IV, line 22
3	Grants and other assistance to governments, organizations, and individuals outside the United States. See Part IV, lines 15 and 16
4	Benefits paid to or for members
5	Compensation of current officers, directors, trustees, and key employees ....	1,895,225		1,895,225
6	Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....
7	Other salaries and wages	126,076,508	105,645,583	20,430,925
8	Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) ....	4,344,884	3,505,018	839,866
9	Other employee benefits .......	14,479,606	11,183,600	3,296,006
10	Payroll taxes ...........	9,721,576	7,831,776	1,889,800
11	Fees for services (non-employees):
a	Management ......	6,325,708	3,028,311	3,297,397
b	Legal .........	1,543,357		1,543,357
c	Accounting ...........	306,310		306,310
d	Lobbying ...........
e	Professional fundraising services. See Part IV, line 17
f	Investment management fees ......	244,356		244,356
g	Other (If line 11g amount exceeds 10% of line 25, column (A) amount, list line 11g expenses on Schedule O) ........	17,164,107	14,542,954	2,621,153
12	Advertising and promotion ....	1,380,105	324,750	1,055,355
13	Office expenses .......	38,993,224	34,655,158	4,338,066
14	Information technology ......	3,451,057		3,451,057
15	Royalties ..
16	Occupancy ...........	8,031,286	6,482,411	1,548,875
17	Travel ............	201,045	94,179	106,866
18	Payments of travel or entertainment expenses for any federal, state, or local public officials ......
19	Conferences, conventions, and meetings ....	215,885	85,500	130,385
20	Interest ...........	2,523,912	2,019,129	504,783
21	Payments to affiliates .......
22	Depreciation, depletion, and amortization .....	16,122,610	12,091,957	4,030,653
23	Insurance ..............	730,661		730,661
24	Other expenses. Itemize expenses not covered above (List miscellaneous expenses in line 24e. If line 24e amount exceeds 10% of line 25, column (A) amount, list line 24e expenses on Schedule O.)
a	DUES	1,054,489	616,376	438,113
b	MINOR EQUIP	376,453	363,673	12,780
c	BOND & BANK FINANCE CHG	239,208	239,208
d	LICENSES	207,026	150,376	56,650
e	All other expenses	1,479,454	1,135,224	344,230
25	Total functional expenses. Add lines 1 through 24e	257,108,052	203,995,183	53,112,869	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 Check if Schedule O contains a response to any question in this Part X ...............
	1	Cashnon-interest-bearing .............	10,746,162	1	4,948,957
2	Savings and temporary cash investments .........	1,470,948	2	1,473,082
3	Pledges and grants receivable, net ...........		3
4	Accounts receivable, net .............	28,090,850	4	30,902,137
5	Loans and other receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of Schedule L ..................
		5,855,486	5	6,722,844
6	Loans and other receivables from other disqualified persons (as defined under section 4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employers and sponsoring organizations of section 501(c)(9) voluntary employees' beneficiary organizations (see instructions) Complete Part II of Schedule L
			6
7	Notes and loans receivable, net .............		7
8	Inventories for sale or use ..............	2,680,853	8	2,740,690
9	Prepaid expenses and deferred charges ..........	10,083,079	9	11,510,966
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	349,948,220
b	Less: accumulated depreciation .....	10b	273,569,016	73,438,370	10c	76,379,204
11	Investments—publicly traded securities ..........	165,112,359	11	184,916,367
12	Investments—other securities. See Part IV, line 11 .....	10,015,929	12	10,418,970
13	Investments—program-related. See Part IV, line 11 .....		13
14	Intangible assets ...............		14
15	Other assets. See Part IV, line 11 ...........	9,804,165	15	15,848,412
16	Total assets. Add lines 1 through 15 (must equal line 34)......	317,298,201	16	345,861,629
	17	Accounts payable and accrued expenses .........	36,296,569	17	37,466,912
18	Grants payable .................		18
19	Deferred revenue ................		19
20	Tax-exempt bond liabilities .............	78,865,251	20	97,492,516
21	Escrow or custodial account liability. Complete Part IV of Schedule D..		21
22	Loans and other payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........		22
23	Secured mortgages and notes payable to unrelated third parties ..	12,329,639	23	7,447,591
24	Unsecured notes and loans payable to unrelated third parties ....		24
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....................	39,970,790	25	33,459,884
26	Total liabilities. Add lines 17 through 25.........	167,462,249	26	175,866,903
		Organizations that follow SFAS 117 (ASC 958), check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets ..............	132,811,041	27	152,452,664
28	Temporarily restricted net assets ...........	2,379,337	28	2,443,017
29	Permanently restricted net assets ...........	14,645,574	29	15,099,045
	Organizations that do not follow SFAS 117 (ASC 958), 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 ...........	149,835,952	33	169,994,726
34	Total liabilities and net assets/fund balances ........	317,298,201	34	345,861,629

- 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

2012

Open to Public
Inspection

Name of the organization

HALLMARK HEALTH SYSTEMINC

Employer identification number

04-2767880

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 described in 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. See section 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 - Non-functionally integrated

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 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 monetary support
(i) Name of supported organization	(ii) EIN	Yes	No	Yes	No	Yes	No	(vii) Amount of monetary support


Total

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

Cat. No. 11285F

Schedule A (Form 990 or 990-EZ) 2012

Page 2

Part II

Support Schedule for Organizations Described in Sections 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) 2008	(b) 2009	(c) 2010	(d) 2011	(e) 2012	(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) 2008	(b) 2009	(c) 2010	(d) 2011	(e) 2012	(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. Do not include gain or loss from the sale of capital assets (Explain in Part IV.)..
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 2012 (line 6, column (f) divided by line 11, column (f)) .........

Public support percentage for 2011 Schedule A, Part II, line 14 ...............

16a

33 1/3% support test—2012. 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—2011. If the organization did not check a 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—2012. 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—2011. 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) 2012

Page 3

Part III

Support Schedule for Organizations Described in Section 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) 2008	(b) 2009	(c) 2010	(d) 2011	(e) 2012	(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) 2008	(b) 2009	(c) 2010	(d) 2011	(e) 2012	(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.)..

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 2012 (line 8, column (f) divided by line 13, column (f)) .........

Public support percentage from 2011 Schedule A, Part III, line 15 ...............

Section D. Computation of Investment Income Percentage

Investment income percentage for 2012 (line 10c, column (f) divided by line 13, column (f)) ......

Investment income percentage from 2011 Schedule A, Part III, line 17 .............

19a

33 1/3% support tests—2012. 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—2011. 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) 2012

Page 4

Part IV

Supplemental Information. Complete this part to provide the explanations required by Part II, line 10; Part II, line 17a or 17b; and 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) 2012

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

2012

Name of the organization

HALLMARK HEALTH SYSTEMINC

Employer identification number

04-2767880

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) (2012)

Schedule B (Form 990, 990-EZ, or 990-PF) (2012)

Page 2

Name of organization HALLMARK HEALTH SYSTEMINC

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) (2012)

Schedule B (Form 990, 990-EZ, or 990-PF) (2012)

Page 3

Name of organization HALLMARK HEALTH SYSTEMINC

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) (2012)

Schedule B (Form 990, 990-EZ, or 990-PF) (2012)

Page 4

Name of organization
HALLMARK HEALTH SYSTEMINC

Employer identification number

04-2767880

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) (2012)

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

2012

Open to Public Inspection

Name of the organization

HALLMARK HEALTH SYSTEMINC

Employer identification number

04-2767880

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 section 170(h)(4)(B)(ii)? .......................................

Yes No

In Part XIII, 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 XIII, 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 Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 52283D

Schedule D (Form 990) 2012

Page 2

Part III

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

Using the organization’s acquisition, 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 XIII.

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 XIII 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 XIII. Check here if the explanation has been provided in Part XIII ........

Part V

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

		(a)Current year	(b)Prior year	b (c)Two years back	(d)Three years back
1a	Beginning of year balance ....	17,024,911	15,730,987	16,664,200	16,307,379
b	Contributions ........	506,053	847,142	582,895	636,980
c	Net investment earnings, gains, and losses	1,155,798	1,520,047	-431,094	895,385
d	Grants or scholarships .....
e	Other expenditures for facilities and programs ........	-1,144,700	-1,073,265	-1,085,014	-1,175,544
f	Administrative expenses ....
g	End of year balance ......	17,542,062	17,024,911	15,730,987	16,664,200

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

Board designated or quasi-endowment SchDMd Bullet

Permanent endowment SchDMd Bullet

86.080 %

Temporarily restricted endowment SchDMd Bullet

13.920 %

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 XIII 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 .................	1,422,964		1,422,964
b	Buildings ................	159,892,501	134,716,477	25,176,024
c	Leasehold improvements ............	8,635,562	5,784,908	2,850,654
d	Equipment ................	177,009,960	133,067,631	43,942,329
e	Other .................	2,987,233		2,987,233
Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10(c).).......				76,379,204

Schedule D (Form 990) 2012

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.)		10,418,970

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









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

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.)...........				15,848,412

Part X

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

1.(a) Description of liability		(b) Book value
Federal income taxes
ESTIMATED SETTLEMENTS 3RD PARTY PAY		11,694,321
PENSION LIABILITY		11,008,958
INSURANCE & OTHER LT LIABILITIES		6,370,048
DUE FROM AFFILIATES		2,656,045
ASSET RETIREMENT OBLIGATIONS-FIN 47		1,018,631
NURSING SCHOOL LONG TERM LIABILITIES		711,881



Total. (Column (b) must equal Form 990, Part X, col.(B) line 25.)		33,459,884
2. Fin 48 (ASC 740) Footnote. In Part XIII, 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 (ASC 740). Check here if the text of the footnote has been provided in Part XIII .....................................................

Schedule D (Form 990) 2012

Page 4

Part XI Reconciliation of Revenue per Audited Financial Statements With Revenue per Return
1	Total revenue, gains, and other support per audited financial statements .......		1
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 XIII.) ............	2d
e	Add lines 2a through 2d .....................		2e
3	Subtract line 2e from line 1.....................		3
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 XIII.) ...........	4b
c	Add lines 4a and 4b.......................		4c
5	Total revenue. Add lines 3 and 4c. (This must equal Form 990, Part I, line 12.) ......		5

Part XII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return
1	Total expenses and losses per audited financial statements ...........		1
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 XIII.) ............	2d
e	Add lines 2a through 2d......................		2e
3	Subtract line 2e from line 1.....................		3
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 XIII.) ............	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

Part XIII

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, line 2; Part XI, lines 2d and 4b; and Part XII, lines 2d and 4b. Also complete this part to provide any additional information.

Identifier	Return Reference	Explanation
INTENDED USES FOR ENDOWMENT FUNDS	SCHEDULE D, PAGE 2, PART V, LINE 4	THE ENDOWMENT FUNDS ARE USED TO FURTHER THE EXEMPT PURPOSE OF THE ORGANIZATION IN PROVIDING HEALTHCARE TO THE SURROUNDING COMMUNITIES.

Schedule D (Form 990) 2012

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE G (Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Supplemental Information Regarding
Fundraising or Gaming Activities

Complete if the organization answered "Yes" to Form 990, Part IV, lines 17, 18, or 19, or if the organization entered more than $15,000 on Form 990-EZ, line 6a. Form 990-EZ filers are not required to complete this part. right arrow

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

See separate instructions.

OMB No. 1545-0047

2012

Open to Public Inspection

Name of the organization
HALLMARK HEALTH SYSTEMINC

Employer identification number

04-2767880

Part I

Fundraising Activities. Complete if the organization answered "Yes" to Form 990, Part IV, line 17.

Indicate whether the organization raised funds through any of the following activities. Check all that apply.

a	Mail solicitations	e	Solicitation of non-government grants
b	Internet and email solicitations	f	Solicitation of government grants
c	Phone solicitations	g	Special fundraising events
d	In-person solicitations

Did the organization have a written or oral agreement with any individual (including officers, directors, trustees

or key employees listed in Form 990, Part VII) or entity in connection with professional fundraising services?

Yes

If “Yes,” list the ten highest paid individuals or entities (fundraisers) pursuant to agreements under which the fundraiser is
to be compensated at least $5,000 by the organization.

(i) Name and address of individual or entity (fundraiser)	(iii) Did fundraiser have custody or control of contributions?
	Yes	No










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

List all states in which the organization is registered or licensed to solicit funds or has been notified it is exempt from registration or licensing.

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

Cat. No. 50083H

Schedule G (Form 990 or 990-EZ) 2012

Page 2

Part II

Fundraising Events. Complete if the organization answered "Yes" to Form 990, Part IV, line 18, or reported more than $15,000 of fundraising event contributions and gross income on Form 990-EZ, lines 1 and 6b. List events with gross receipts greater than $5,000.

		(a) Event #1 HALLMARK MWH GO (event type)	(b) Event #2 HALLMARK LMH GO (event type)	(c) Other events 1 (total number)	(d) Total events (add col. (a) through col. (c))
1	Gross receipts . . .	100,173	84,355	35,290	219,818
2	Less: Contributions . .	64,238	39,148	20,295	123,681
3	Gross income (line 1 minus line 2) . . .	35,935	45,207	14,995	96,137
4	Cash prizes . . .
5	Noncash prizes . .	7,144	5,850	5,810	18,804
6	Rent/facility costs . .	21,452	12,523	4,964	38,939
7	Food and beverages .	11,136	15,214	4,795	31,145
8	Entertainment . . .
9	Other direct expenses .	7,880	2,248	1,779	11,907
10	Direct expense summary. Add lines 4 through 9 in column (d) ...........				100,795
11	Net income summary. Combine line 3, column (d), and line 10. ..........				-4,658

Part III

Gaming. Complete if the organization answered "Yes" to Form 990, Part IV, line 19, or reported more than $15,000 on Form 990-EZ, line 6a.

(a) Bingo

(b) Pull tabs/Instant
bingo/progressive bingo

(c) Other gaming

(d) Total gaming (add col.(a) through col.(c))

Gross revenue . . . .

Cash prizes . . . .

Non-cash prizes . . .

Rent/facility costs . . .

Other direct expenses . .

Volunteer labor . . .

	Yes
	No

	Yes
	No

	Yes
	No

Direct expense summary. Add lines 2 through 5 in column (d) ........... right arrow

Net gaming income summary. Combine lines 1 and 7 in column (d) .......... right arrow

Enter the state(s) in which the organization operates gaming activities: MA

Is the organization licensed to operate gaming activities in each of these states? ............

YesNo

If "No," explain:

10a

Were any of the organization's gaming licenses revoked, suspended or terminated during the tax year? .....

YesNo

If "Yes," explain:

Schedule G (Form 990 or 990-EZ) 2012

Page 3

Does the organization operate gaming activities with nonmembers? .................

YesNo

Is the organization a grantor, beneficiary or trustee of a trust or a member of a partnership or other entity

formed to administer charitable gaming? ..........................

YesNo

Indicate the percentage of gaming activity operated in:

The organization's facility ......................

13a

An outside facility ........................

13b

Enter the name and address of the person who prepares the organization's gaming/special events books and records:

Name

Address

15a

Does the organization have a contract with a third party from whom the organization receives gaming

revenue? ......................................

YesNo

If "Yes," enter the amount of gaming revenue received by the organization right arrow

$ and the

amount of gaming revenue retained by the third party right arrow

$ .

If "Yes," enter name and address of the third party:

Name

Address

Gaming manager information:

Name

Gaming manager compensation right arrow

Description of services provided right arrow

Director/officer Employee Independent contractor

Mandatory distributions:

Is the organization required under state law to make charitable distributions from the gaming proceeds to

retain the state gaming license? ............................

YesNo

Enter the amount of distributions required under state law distributed to other exempt organizations or spent

in the organization's own exempt activities during the tax year right arrow

Part IV

Supplemental Information. Complete this part to provide the explanations required by Part I, line 2b, columns (iii) and (v), and Part III, lines 9, 9b, 10b, 15b, 15c, 16, and 17b, as applicable. Also complete this part to provide any additional information (see instructions).

Identifier	Return Reference	Explanation

Schedule G (Form 990 or 990-EZ) 2012

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

2012

Open to Public Inspection

Name of the organization

HALLMARK HEALTH SYSTEMINC

Employer identification number

04-2767880

Part I

Financial Assistance 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) as a factor in determining 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 as a factor in determining 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 used factors other than FPG in determining 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, as a factor in determining 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? ............................

Yes

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

Financial Assistance and Means-Tested Government Programs		(a) Number of activities or programs (optional)	(b) Persons served (optional)	(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) ..			4,191,775	238,810	3,952,965	1.540 %
b	Medicaid (from Worksheet 3, column a) ....			32,737,952	28,515,515	4,222,437	1.640 %
c	Costs of other means-tested government programs (from Worksheet 3, column b) .			16,027	7,465	8,562
d	Total Financial Assistance and Means-Tested Government Programs .			36,945,754	28,761,790	8,183,964	3.180 %
Other Benefits		70	63,740	3,440,234	153,578	3,286,656	1.270 %
e	Community health improvement services and community benefit operations (from Worksheet 4) ..	70	63,740	3,440,234	153,578	3,286,656	1.270 %
f	Health professions education (from Worksheet 5) ..	6	1,800	11,583,041	9,463,832	2,119,209	0.820 %
g	Subsidized health services (from Worksheet 6) ..	1	184	1,175,178	758,516	416,662	0.160 %
h	Research (from Worksheet 7)	3	6,449	316,500		316,500	0.120 %
i	Cash and in-kind contributions for community benefit (from Worksheet 8)	10	2,271	88,465		88,465	0.040 %
j	Total. Other Benefits ..	90	74,444	16,603,418	10,375,926	6,227,492	2.410 %
k	Total. Add lines 7d and 7j .	90	74,444	53,549,172	39,137,716	14,411,456	5.590 %

For Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat. No. 50192T Schedule H (Form 990) 2012

Schedule H (Form 990) 2012

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.

		(c) Total community building expense	(e) Net community building expense	(f) Percent of total expense
1	Physical improvements and housing
2	Economic development
3	Community support	2,618	2,618
4	Environmental improvements
5	Leadership development and training for community members	8,159	8,159
6	Coalition building	14,616	14,616	0.010 %
7	Community health improvement advocacy	2,051	2,051
8	Workforce development
9	Other
10	Total	27,444	27,444	0.010 %

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? ..........................

Enter the amount of the organization's bad debt expense. Explain in Part VI the methodology used by the organization to estimate this amount. ......

2,804,338

Enter the estimated amount of the organization's bad debt expense attributable to patients eligible under the organization's financial assistance policy. Explain in Part VI the methodology used by the organization to estimate this amount and the rationale, if any, for including this portion of bad debt as community benefit. ......

Provide in Part VI the text of the footnote to the organization’s financial statements that describes bad debt expense or the page number on which this footnote is contained in the attached financial statements.

Section B. Medicare

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

98,218,750

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

99,450,762

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

-1,232,012

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(owned 10% or more by officers, directors, trustees, key employees, and physicians—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) 2012

Page

Part VFacility Information

Section A. Hospital Facilities (list in order of size from largest to smallest—see instructions) How many hospital facilities did the organization operate during the tax year?13 Name, address, and primary website address					Other (Describe)	Facility reporting group
1	MELROSE WAKEFIELD HOSPITAL 585 LEBANON STREET MELROSE,MA02176	X	X	X		A
2	LAWRENCE MEMORIAL HOSPITAL 170 GOVERNORS AVE MEDFORD,MA02155	X	X	X		A
3	HALLMARK ONCOLOGY & HEMATOLOGY CTR 41 MONTVALE AVE STONEHAM,MA02180				OUTPATIENT MEDICAL	A
4	CHEM CENTER FOR RADIATION & MRI 48 MONTVALE AVE STONEHAM,MA02180				OUTPATIENT MEDICAL	A
5	LAWRENCE MEMORIAL HOSPITAL MEDICAL PROGRAM 101 MAIN STREET MEDFORD,MA02155				OUTPATIENT MEDICAL	A
6	HALLMARK OUTPAT DIAGNOSTIC & REHAB 30 NEWCROSSING ROAD READING,MA01867				OUTPATIENT MEDICAL	A
7	HEALTH IMAGE WOMAN'S IMAGING CENTER 830 MAIN STREET MELROSE,MA02176				IMAGING CENTER	A
8	LMH REHABILITATION SERVICES 101 MAIN STREET MEDFORD,MA02155				PT & REHAB SERVICE	A
9	MELROSE-WAKEFIELD HOSP REHAB SERV 22 COREY STREET MELROSE,MA02176				PT & REHAB SERVICE	A
10	FAMILY MEDICAL ASSOCIATES 101 MAIN STREET MEDFORD,MA02155				PHYSICIAN OFFICE	A
11	LAWRENCE MEMORIAL HOSPITAL PROGRAM 200 GOVERNORS AVE MEDFORD,MA02155				PSYCHIATRIC SERVICE	A
12	HALLMARK COMMUNITY COUNSELING 101 MAIN STREET MEDFORD,MA02155				OUTPATIENT COUNSELING	A
13	COMMUNITY COUNSELING CENTER 178 SAVIN STREET MALDEN,MA02148				OUTPATIENT COUNSELING	A

Schedule H (Form 990) 2012

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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 or facility reporting groups listed in Part V, Section A)

	A
Name of hospital facility or facility reporting group

For single facility filers only: line Number of Hospital Facility (from Schedule H, Part V, Section A)

Yes

Community Health Needs Assessment (Lines 1 through 8c are optional for tax years begining on or before March 23, 2012)

During the tax year or either of the two immediately preceding tax years, did the hospital facility conduct a community health needs assessment (CHNA)? If "No," skip to line 9....................

Yes

If “Yes,” indicate what the CHNA report describes (check all that apply):

A definition of the community served by the hospital facility

Demographics of the community

Existing health care facilities and resources within the community that are available to respond to the health needs of the community

How data was obtained

The health needs of the community

Primary and chronic disease needs and other health issues of uninsured persons, low-income persons, and minority groups

The process for identifying and prioritizing community health needs and services to meet the community health needs

The process for consulting with persons representing the community’s interests

Information gaps that limit the hospital facility’s ability to assess the community’s health needs

Other (describe in Part VI)

Indicate the tax year the hospital facility last conducted a CHNA: 20 12

In conducting its most recent CHNA, did the hospital facility take into account input from representatives of the community served by the hospital facility, including those with special knowledge of or expertise in public health? 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 ....................

Yes

Was the hospital facility’s CHNA conducted with one or more other hospital facilities? If “Yes,” list the other hospital facilities in Part VI................................

Did the hospital facility make its CHNA report widely available to the public? .............

Yes

If “Yes,” indicate how the CHNA report was made widely available (check all that apply):

Hospital facility’s website

Available upon request from the hospital facility

Other (describe in Part VI)

If the hospital facility addressed needs identified in its most recently conducted CHNA, indicate how (check all that apply to date):

Adoption of an implementation strategy that addresses each of the community health needs identified through the CHNA

Execution of the implementation strategy

Participation in the development of a community-wide plan

Participation in the execution of a community-wide plan

Inclusion of a community benefit section in operational plans

Adoption of a budget for provision of services that address the needs identified in the CHNA

Prioritization of health needs in its community

Prioritization of services that the hospital facility will undertake to meet health needs in its community

Other (describe in Part VI)

Did the hospital facility address all of the needs identified in its most recently conducted CHNA? If “No,” explain in Part VI which needs it has not addressed and the reasons why it has not addressed such needs ........

Yes

Did the organization incur an excise tax under section 4959 for the hospital facility's failure to conduct a CHNA as required by section 501(r)(3)? ...........................

If "Yes" to line 8a, did the organization file Form 4720 to report the section 4959 excise tax? ......

If "Yes" to line 8b, what is the total amount of section 4959 excise tax the organization reported on Form 4720 for all of its hospital facilities? $

Schedule H (Form 990) 2012

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Part VFacility Information (continued)

Financial Assistance Policy			Yes	No
9	Did the hospital facility have in place during the tax year a written financial assistance policy that:
	Explained eligibility criteria for financial assistance, and whether such assistance includes free or discounted care?	9	Yes
10	Used federal poverty guidelines (FPG) to determine eligibility for providing free care?...........	10	Yes
	If "Yes," indicate the FPG family income limit for eligibility for free care: 200.0% If "No," explain in Part VI the criteria the hospital facility used.
11	Used FPG to determine eligibility for providing discounted care?.................	11	Yes
	If “Yes,” indicate the FPG family income limit for eligibility for discounted care: 400.0% If "No," explain in Part VI the criteria the hospital facility used.
12	Explained the basis for calculating amounts charged to patients?.................	12	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)
13	Explained the method for applying for financial assistance?...................	13	Yes
14	Included measures to publicize the policy within the community served by the hospital facility?.......	14	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 website
b	The policy was attached to 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 on admission to the hospital facility
f	The policy was available upon request
g	Other (describe in Part VI)
Billing and Collections
15	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?.......	15	Yes
16	Check all of the following 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)
17	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?..........	17	Yes
	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)

Schedule H (Form 990) 2012

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Part VFacility Information (continued)

Indicate which efforts the hospital facility made before initiating any of the actions listed in line 17 (check all that apply):

Notified individuals of the financial assistance policy on admission

Notified individuals of the financial assistance policy prior to discharge

Notified individuals of the financial assistance policy in communications with the patients regarding the patients’ bills

Documented its determination of whether patients were eligible for financial assistance under the hospital facility’s financial assistance policy

Other (describe in Part VI)

Policy Relating to Emergency Medical Care

Yes

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?..........

Yes

If “No,” indicate why:

The hospital facility did not provide care for any emergency medical conditions

The hospital facility’s policy was not in writing

The hospital facility limited who was eligible to receive care for emergency medical conditions (describe in Part VI)

Other (describe in Part VI)

Charges to Individuals Eligible for Assistance under the FAP (FAP-Eligible Individuals)

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.

The hospital facility used its lowest negotiated commercial insurance rate when calculating the maximum amounts that can be charged

The hospital facility used the average of its three lowest negotiated commercial insurance rates when calculating the maximum amounts that can be charged

The hospital facility used the Medicare rates when calculating the maximum amounts that can be charged

Other (describe in Part VI)

During the tax year, did the hospital facility charge any FAP-eligible individuals 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? ............................

If “Yes,” explain in Part VI.

During the tax year, did the hospital facility charge any FAP-eligible individuals an amount equal to the gross charge for any service provided to that individual? .........................

If “Yes,” explain in Part VI.

Schedule H (Form 990) 2012

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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?
Name and address		Type of Facility (describe)
1
2
3
4
5
6
7
8
9
10

Schedule H (Form 990) 2012

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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; Part V, Section A; and Part V, Section B, lines 1j, 3, 4, 5c, 6i, 7, 10, 11, 12h, 14g, 16e, 17e, 18e, 19c, 19d, 20d, 21, and 22.
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.
8	Facility reporting group(s). If applicable, for each hospital facility in a facility reporting group provide the descriptions required for Part V, Section B, lines 1j, 3, 4, 5c, 6i, 7, 10, 11, 12h, 14g, 16e, 17e, 18e, 19c, 19d, 20d, 21, and 22.

Identifier	ReturnReference	Explanation
EXCLUSIONS FROM PERCENT OF TOTAL EXPENSE	PART I LINE 7 COLUMN F	BAD DEBT EXPENSE 8774827
COSTING METHODOLOGY EXPLANATION	PART I LINE 7	CHARITY CARE COSTS FROM WORKSHEETS 1 2 AND UNREIMBURSED MEDICAID FROM WORKSHEET 3 AND HEALTH PROFESSIONS EDUCATION FROM WORKSHEET 5 WERE APPLIED TO ALL PATIENT SEGMENTS COST TO CHARGE RATIO
COMMUNITY BUILDING ACTIVITIES	PART II	AS PART OF ITS EFFORTS TO IMPROVE THE HEALTH STATUS OF ITS CORE COMMUNITIES HALLMARK HEALTH PARTICIPATES IN A VARIETY OF BROADBASED COMMUNITY COALITIONS AND INITIATIVES THAT WORK TOWARDS ADDRESSING THE SPECIFIC AND GENERAL HEALTH NEEDS IN THESE CITIES AND TOWNS A SAMPLE OF CURRENT ACTIVITIES INCLUDE MALDEN HIGH SCHOOL TEEN PARENT TASK FORCE THE EVERETT JOINT COMMITTEE FOR CHILDRENS HEALTHCARE IN EVERETT MYSTIC VALLEY ELDER SERVICES PROVIDER TASK FORCE LOCAL COUNCILS ON AGING HEALTHY FAMILIES COMMUNITY COALITION MEDFORD FAMILY RESOURCE COALITION THE MELROSE SUBSTANCE ABUSE PREVENTION COALITIONAND THE MALDEN AND EVERETT AND MEDFORD FAMILY NETWORKS A SPECIFIC EXAMPLE OF THIS COMMUNITY BUILDING IS HALLMARK HEALTHS REPRESENTATION ON THE MELROSE ALLIANCE AGAINST VIOLENCE MAAV MAAV IS A NONPROFITCOMMUNITYBASED ORGANIZATION THAT FOCUSES ON OUTREACH EDUCATION AND COMMUNITY COLLABORATION IN ORDER TO RAISE AWARENESS OF THE PROBLEMS OF VIOLENCE IN MELROSE WORKING CLOSELY WITH THE MELROSE POLICE DEPARTMENT THE BOARD OF DIRECTORS OF MAAV INCLUDES REPRESENTATIVES FROM THE POLICE SCHOOLSCLERGY HOSPITAL BUSINESS COMMUNITY HEALTH DEPARTMENT STUDENTS AND COMMUNITY MEMBERS AT LARGE IN ADDITION HALLMARK HEALTH HAS CONTINUED TO OPERATE A NUMBER OF COMMUNITY OUTREACH TEAMS TO ASSIST WITH COLLECTION OF COMMUNITY NEED INFORMATION AND HEALTH EDUCATION AND SCREENINGS THE TEAMS HAVE SPONSORED EVENTS RANGING FROM INFORMAL PLANNING HEALTH EVENTS AND SCREENINGS TO FORMAL HEALTHY MELROSE DIABETES DAY MOBILE FOOD MARKET THEREBY PROMOTING MUTIPLE OPPORTUNITIES TO INTERACT WITH A WIDERANGE OF COMMUNITY MEMBERS IN WAYS THAT BUILD A TRUSTING RELATIONSHIPWHICH IS KEY TO TRULY LISTENING TO THE VOICE OF INDIVIDUAL COMMUNITY MEMBERS AS HALLMARK HEALTH MOVES FORWARD IN ITS COMMUNITY BENEFITS PLANNING PROCESS IT WILL CONTINUE TO UTILIZE THE COLLECTIVE KNOWLEDGE OF THE TEAMS TO THIS AIM THE TEAMSORGANIZING CHARTERS HAVE BEEN REWRITTEN TO HELP GUIDE THE MEMBERSHIP TOWARD MORE FORMAL COMMUNITY SERVICESCOMMUNITY BENEFITS ACTIVITIESRELEVANT HEALTH DATA AND THE IDENTIFIED TARGET POPULATION LISTS IS PROVIDED FOR EACH TEAM CAPTAIN TO ASSIST THEM IN PLANNING PROGRAMS IN THEIR COMMUNITIES CURRENTLY THERE ARE SIX 6 COMMUNITY OUTREACH TEAMS NAMED FOR MALDENMEDFORD MELROSE WAKEFIELD READINGNORTH READING AND STONEHAM THE TEAMS CONTINUOUSLY SOLICIT INPUT FROM KEY COMMUNITY LEADERS INCLUDING SUPERINTENDENTS OF SCHOOLS STATE REPRESENTATIVES BUSINESS LEADERS FIRE AND POLICE PERSONNEL AND LOCAL HEALTH DEPARTMENTS MANY OF THE EMPLOYEES AT HALLMARK HEALTH WHO SERVE ON THE TEAMS ALSO PARTICIPATE IN A NUMBER OF OTHER COMMUNITY GROUPS AND CIVIC ORGANIZATIONSEMPLOYEE VOLUNTEERS STAFF THE COMMUNITY TEAMSMORE THAN 75 EMPLOYEES VOLUNTEERS AND PHYSICIANS WERE INVOLVED IN A TEAM OR A TEAMSPONSORED EVENT IN 2013 THE COMMUNITY TEAMS EFFORTS HAVE BEEN ACKNOWLEDGED BY FOUR AREA CHAMBERS OF COMMERCE OTHER CIVIC ORGANIZATIONS THE HOUSE OF REPRESENTATIVES THE AMERICAN HOSPITAL ASSOCIATION AND THE MASSACHUSETTS HOSPITAL ASSOCIATION
BAD DEBT EXPENSE EXPLANATION	PART III LINE 4	HALLMARK HEALTH SYSTEM INC DEVELOPED A COST TO CHARGE RATIO ON WORKSHEET 2 AND APPLIED IT TO THE BAD DEBT ACCOUNT CHARGES THAT WERE ACTUALLY WRITTENOFF THE FOLLOWING IS FROM THE HALLMARK HEALTH CORPORATION CONSOLIDATED AUDITED FINANCIAL STATEMENTS OF WHICH HALLMARK HEALTH SYSTEM IS INCLUDED RELATING TO CHARITY CARE AND BAD DEBT EXPENSE 2013 CHARITY CARE AND COMMUNITY BENEFIT FOOTNOTE CHARITY CARE THE CORPORATION PROVIDES CARE TO PATIENTS REGARDLESS OF THEIR ABILITY TO PAY CONSISTENT WITH ITS TAXEXEMPT STATUS AND COMMUNITY SERVICE RESPONSIBILITIES THE CORPORATION PROVIDES FINANCIAL ASSISTANCE IN THE FORM OF FREE OR DISCOUNTED CARE TO PATIENTS WHO MEET CERTAIN CRITERIA UNDER THE CORPORATIONS CHARITY CARE POLICY IN ASSESSING A PATIENTS INABILITY TO PAY THE CORPORATION UTILIZES FEDERAL POVERTY INCOME GUIDELINES AND FOLLOWS PROCEDURES SET FORTH IN ITS CREDIT AND COLLECTION POLICY WHICH HAS BEEN APPROVED BY THE COMMONWEALTH OF MASSACHUSETTS DIVISION OF HEALTHCARE FINANCE AND POLICY BECAUSE THE CORPORATION DOES NOT PURSUE COLLECTION OF AMOUNTS DETERMINED TO QUALIFY AS CHARITY CARE THESE AMOUNTS ARE NOT REPORTED AS PATIENT SERVICE REVENUE DURING THE YEARS ENDED SEPTEMBER 30 2013 AND 2012THE CORPORATION ESTIMATED THAT THE COST ASSOCIATED WITH THE CHARITY CARE PROVIDED WAS APPROXIMATELY 2277000 AND 2447000 RESPECTIVELY SUCH COSTS HAVE BEEN ESTIMATED BASED ON RATIO OF EXPENSES EXCLUDING BAD DEBT TO ESTABLISHED PATIENT SERVICE CHARGES BAD DEBTS THE PROVISION FOR BAD DEBTS IN THE ACCOMPANYING CONSOLIDATED STATEMENTS OF OPERATIONS REFLECTS THE CHARGES AT ESTABLISHED RATES FOR SERVICES PROVIDED TO THOSE INDIVIDUALS WHO DO NOT QUALIFY FOR CHARITY CARE UNDER THE GUIDELINES DESCRIBED ABOVE AND WHO ARE OTHERWISE UNABLE OR UNWILLING TO PAY THE CORPORATIONTHE PROVISION FOR BAD DEBTS OF 8807000 AND 8645000 IN 2013 AND 2012 RESPECTIVELY REPRESENTS THE CHARGES FOR SERVICES PROVIDED THAT ARE DEEMED TO BE UNCOLLECTIBLE THE ESTIMATED COST OF PROVIDING THESE SERVICES DEEMED UNCCLLECTIBLE WAS APPROXIMATELY 3676000 FOR 2013 AND 3502000 FOR 2012 HEALTH SAFETY NET THE COMMONWEALTH OF MASSACHUSETTS THE COMMONWEALTH ADMINISTERS A HEALTH SAFETY NET THE HSN TO ACT AS THE PAYOR OF LAST RESORT FOR COVERED HEALTH CARE SERVICES PROVIDED BY ACUTE HOSPITALS AND COMMUNITY HEALTH CENTERS IN THE COMMONWEALTH ALL HOSPITALS HAVE BEEN ASSESSED A UNIFORM ALLOWANCE BASED ON ESTIMATES OF THEIR SHARE OF TOTAL HEALTH SAFETY NET FUNDING AND HAVE BEEN REIMBURSED FOR A PORTION OF THE COST OF ACTUAL UNCOMPENSATED CARE WHICH THEY PROVIDE SUBJECT TO CERTAIN LIMITATIONS REIMBURSABLE UNCOMPENSATED CARE INCLUDES NET CHARITY CARE AND BAD DEBTS RESULTING FROM EMERGENCY SERVICES HOSPITALS RECOVERIES FROM THE HSN ARE BASED ON REGULATED PAYMENT RATES THE CORPORATION HAS RECORDED ITS ACTIVITY WITH THE HSN AS A COMPONENT OF NET PATIENT SERVICE REVENUE IN THE ACCOMPANYING CONSOLIDATED STATEMENTS OF OPERATIONS MANAGEMENT BELIEVES THAT THE ACCOMPANYING CONSOLIDATED BALANCE SHEETS REFLECT REASONABLE ESTIMATES OF THE CORPORATIONS NET OBLIGATION TO THE HSN AS OF SEPTEMBER 302013 AND 2012 THE CORPRATIONS SHARE OF THE TOTAL COMMONWEALTHS ASSESSMENT WAS 1913883 FOR 2013 AND 1954767 FOR 2012 DURING 2013 AND 2012 THE CORPORATION RECEIVED REIMBURSEMENT FROM THE HSN IN THE AMOUNTS OF 893476 AND 1110124 RESPECTIVELY TOTAL UNCOMPENSATED CARE PROVIDED BY ALL RELATED CORPORATIONS FOR THE YEARS ENDED SEPTEMBER 30 2013 AND 2012 IS AS FOLLOWS 2013 2012 PROVISION FOR CHARITY CAREAT COST 2276716 2446782 PROVISION FOR BAD DEBTSAT COST 3676180 3502000 HSN NET 1020407 844643 TOTAL UNCOMPENSATED CARE 6973303 6793425 TOTAL HALLMARK HEALTH SYSTEMINC UNCOMPENSATED CARE FOR FYE 2013 2012 IS AS FOLLOWS 2013 2012 PROVISION FOR CHARITY CAREAT COST 2258150 2428767 PROVISION FOR BAD DEBTSAT COST 3662612 3374180 HSN NET 1020407 844643 TOTAL UNCOMPENSATED CARE 6941169 6647590 COMMUNITY BENEFIT IN FURTHERING ITS CHARITABLE PURPOSE THE CORPORATION PROVIDES A WIDE VARIETY OF HEALTH CARE SERVICES TO THE COMMUNITY IN ORDER TO PROVIDE ACCESS TO APPROPRIATE CARE FOR POPULATIONS IN NEED THE CORPORATION HAS DEVELOPED A FORMAL COMMUNITY BENEFIT PLAN WHICH RESPONDS TO A COMPREHENSIVE ASSESSMENT OF HEALTH CARE NEEDS IN THE COMMUNITY THE COMMUNITY BENEFIT PLAN SUPPORTS SERVICES THAT TARGET NOT ONLY THE GENERAL POPULATION IN THE CORPORATIONS SERVICE AREA BUT ALSO PARTICULAR POPULATIONS WITH SPECIAL HEALTH CARE NEEDS INCLUDING THE POOR THE ELDERLY CHILDREN AND MINORITY POPULATIONS SUPPORTED SERVICES INCLUDE VARIOUS CLINICS HEALTH SCREENING PROGRAMS HEALTH EDUCATION PROGRAMS AND SUPPORT GROUPS OPERATED IN THE CORPORATIONS SERVICE AREA THE CORPORATION WORKS ACTIVELY WITH OTHER AREA SERVICE PROVIDERS TO FACILITATE THE DEVELOPMENT OF AN EFFECTIVE COMMUNITY HEALTH NETWORK THE CORPORATION ALSO PARTICIPATES IN ACTIVITIES DESIGNED TO FOSTER AND ENHANCE THE ECONOMIC AND CIVIC ENVIRONMENT OF ITS SERVICE AREAS HALLMARK HEALTH SYSTEM INC DOES NOT INCLUDE BAD DEBT AS A COMMUNITY BENEFIT
MEDICARE EXPLANATION	PART III LINE 8	MEDICARE REIMBURSEMENT SHORTFALL USING ALLOWABLE COSTS FROM MEDICARE COST REPORT
COLLECTION PRACTICES EXPLANATION	PART III LINE 9B	POLICY COLLECTION ACTIVITY IS STOPPED ONCE A PATIENT IS KNOWN TO QUALIFY FOR CHARITY CARE OR FINANCIAL ASSISTANCE THIS POPULATION IS EXEMPT FROM COLLECTION ACTIVITY
NEEDS ASSESSMENT	PART VI	LINE 2 NEEDS ASSESSMENT DESCRIBE HOW THE ORGANIZATION ASSESSES THE HEALTH CARE NEEDS OF THE COMMUNITIES IT SERVES INTRODUCTION HALLMARK HEALTH SYSTEM IS A NOTFORPROFIT HOSPITAL THAT OPERATES TO FURTHER THE IMPROVEMENT OF THE HEALTH STATUS TO THE COMMUNITIES THAT WE SERVE THROUGH THE DELIVERY OF HEALTHCARE SERVICES AND EDUCATION WE DO THIS BY REINVESTING OUR SURPLUS FUNDS BACK INTO THE COMMUNITIES THROUGH VARIOUS PROGRAMS AND SERVICES MAKING SURE THAT CARE IS AVAILABLE TO EVERYONE REGARDLESS OF HIS OR HER ABILITY TO PAY USING COMPASSION AS THE CORNERSTONE FOR OUR WORK TO IMPROVE THE HEALTH OF OUR COMMUNITIES PATIENTS AND THEIR FAMILIES ARE ALWAYS TREATED AS PEOPLE FIRST ATTENDING TO THE NEEDS OF THE WHOLE PERSON PROVIDING A RANGE OF SPECIAL BENEFITS TO THE COMMUNITY SUCH AS PROGRAMS TO MANAGE CARE FOR PERSONS WITH CHRONIC DISEASES HEALTH EDUCATION AND DISEASE PREVENTION INITIATIVES OUTREACH FOR THE ELDERLY AND CARE FOR PERSONS WHO ARE POOR OR UNINSURED THE IRS GRANTS US TAX EXEMPTION AS A CHARITABLE COMMUNITYORIENTED ORGANIZATION WITHOUT THIS STATUS WE COULD NOT CONTINUE TO DELIVER THE SAME LEVEL OF COMMUNITY BENEFITS THAT ARE SO IMPORTANT AND NECESSARYTHE FOLLOWING SUMMARIZES A WIDE ARRAY OF ACTIVITIES AND SERVICES THAT MAKE UP OUR COMMUNITY SERVICE BENEFIT PROGRAMS AT THE START OF HALLMARK HEALTHS 2013 FISCAL YEAR THE GOVERNING BOARD OF THE HOSPITAL APPROVED THE 2013 COMMUNITY BENEFITS PLAN HALLMARK HEALTH SYSTEMS COMMUNITY BENEFITS MISSION STATEMENT IS ALSO APPROVED BY THE HOSPITALS GOVERNING BOARD AND STATES HALLMARK HEALTH SYSTEM INC IS COMMITTED TO BUILDING AND SUSTAINING A STRONG VIBRANT AND HEALTHY COMMUNITY HALLMARK HEALTH DEDICATES APPROPRIATE RESOURCES TO COLLABORATIONS WITH COMMUNITY PARTNERS AND THE UTILIZATION OF COMMUNITY MEMBERS INPUT TOWARD IMPROVING HEALTH SERVICES HALLMARK HEALTH PLEDGES TO ACT AS A RESOURCE AND TO WORK WITH THE COMMUNITY DURING EMERGENCIES IMPROVE ACCESS TO CARE IDENTIFY MONITOR AND ADDRESS THE UNIQUE HEALTH CARE NEEDS WITHIN ITS CORE COMMUNITIES AND PROMOTES HEALTHIER LIFESTYLES FOR RESIDENTS THROUGH HEALTH EDUCATION AND PREVENTION ACTIVITIESIN COMPLIANCE WITH IRS GUIDELINES A YEARLONG PROCESS TO DEVELOP A FORMAL COMMUNITY HEALTH NEEDS ASSESSMENTS CHNA WAS COMPLETED BY HALLMARK HEALTH IN AUGUST 2013 IN COLLABORATION WITH THE INSTITUTE FOR COMMUNITY HEALTH ICH A NONPROFIT ORGANIZATION RECOGNIZED FOR COMMUNITYBASED PARTICIPATORY RESEARCH ASSESSMENT AND DISSEMINATIONTHIS PROCESS INCLUDES A REVIEW OF REPUTABLE PUBLIC HEALTH SOCIOECONOMIC AND FOUNDATION DATA INPUT FROM THE HALLMARK HEALTH COMMUNITY BENEFITS ADVISORY COUNCIL COMMUNITY OUTREACH TEAMS PATIENTFAMILY ADVISORY COUNCILS AND FROM LOCAL COMMUNITY COALITIONS AND THE COMMUNITY HEALTH NETWORK AREAS MEMBERSHIP STAKEHOLDER INTERVIEWS AND COMMUNITY SURVEYS WERE ALSO COMPLETEDTO ENSURE COMMUNITY INPUT AND TRANSPARENCY THE COMPLETED RESULTS WILL BE POSTED ON THE HALLMARK HEALTH SYSTEM WEBSITE AS OF THE END OF FY2013 THE HALLMARK HEALTH SYSTEM COMMUNITY BENEFITS ADVISORY COUNCIL COMPRISED OF A MEMBER OF THE HOSPITALS BOARD OF TRUSTEES THE EXECUTIVE VICE PRESIDENT FOR STRATEGY EXTERNAL AFFAIRS THE SYSTEM VICE PRESIDENT OF HOME CARE AND COMMUNITY PROGRAMS THE SYSTEMS CONTROLLER THE EXECUTIVE VICE PRESIDENT AND CHIEF LEGAL OFFICER THE ASSOCIATE CHIEF NURSING OFFICER AND SITE ADMINISTRATOR FOR LAWRENCE MEMORIAL HOSPITAL THE SYSTEM DIRECTOR OF PUBLIC AFFAIRS AND MARKETING THREE COMMUNITY REPRESENTATIVES THE DIRECTOR OF COMMUNITY SERVICES AND THE MANAGER OF COMMUNITY BENEFITS CONTINUES TO ACT AS THE STEERING COMMITTEE FOR HALLMARK HEALTHS COMMUNITY BENEFITS PLAN BY DEFINING THE PROCESS FOR RECOGNIZING THE CURRENT AND EMERGING HEALTH NEEDS IN THE COMMUNITY AND DEVELOPING THE COMMUNITY BENEFITS PLAN TO RESPOND TO THESE IDENTIFIED NEEDS THE COUNCIL MEETS QUARTERLY TO ENSURE COMPLIANCE WITH THE COMMUNITY BENEFIT PLAN PROVIDE INPUT TO THE IMPLEMENTATION OF THE PLAN DISCUSS IMPORTANT COMMUNITY HEALTH ISSUES AND OFFER INPUT TO THE GOVERNING BOARD REGARDING EMERGING COMMUNITY HEALTH NEEDSTHE COUNCIL PLANS TO ADD PHYSICIAN REPRESENTATIVES DURING FY2014 AS WELL AS CONTINUE TO RECRUIT ADDITIONAL COMMUNITY MEMBERS REPRESENTING DIVERSE CONSTITUENCIES ON AN ONGOING BASIS HALLMARK HEALTH ALSO ACTIVELY PARTICIPATED WITH THE COMMUNITY IN AN ONGOING WAY THROUGH OUR COMMUNITY OUTREACH TEAMS AS MEMBERS OF COMMUNITY COALITIONS AND IN THE COMMUNITY HEALTH NETWORK AREA PUBLIC HEALTH GROUPS CHNAS THESE METHODS HAVE PROVEN TO BE AN EFFECTIVE WAY TO REACH OUT INTO THE COMMUNITY TO GAIN LOCAL PERSPECTIVE AROUND THE HEALTH NEEDS OF AREA RESIDENTSBY TAILORING OUTREACH AND PROGRAMS BASED ON WHAT INDIVIDUAL COMMUNITIES VALUE MOST HALLMARK HEALTH HAS DEVELOPED A TRUSTING RELATIONSHIP WITH LOCAL RESIDENTSTHE TEAMS CONTINUOUSLY SOLICIT INPUT FROM KEY COMMUNITY LEADERS AS WELL INCLUDING SUPERINTENDENTS OF SCHOOLS STATE REPRESENTATIVES BUSINESS LEADERS FIRE AND POLICE PERSONNEL AND LOCAL HEALTH DEPARTMENTS THE COMMUNITY TEAM FUNCTIONS ARE FURTHER EXPLAINED IN PART II DESCRIPTION COMMUNITY BUILDING ACTIVITIES ANOTHER WAY THAT HALLMARK HEALTH COMMUNICATES WITH THE COMMUNITY IS THROUGH THE PATIENTFAMILY ADVISORY COUNCILPFACTHIS COUNCIL WAS FORMED TO OBTAIN FEEDBACK AND IDEAS FROM COMMUNITY MEMBERS ON HOW THE HOSPITALS CAN BE MORE RECEPTIVE TO THE UNIQUE NEEDS OF COMMUNITY RESIDENTS ESPECIALLY THOSE OF DIVERSE BACKGROUNDS AND TO PROMOTE THE HIGHEST QUALITY OF PATIENTCENTERED SERVICES BY FOSTERING A STRONG PARTNERSHIP THROUGH OUTREACH ACTIVITIES WITH COMMUNITY RESIDENTS THE COUNCILS OFTEN ASSIST HALLMARK HEALTH STAFF BY PROVIDING INPUT INTO THE PLANNING OF FUTURE COMMUNITY ACTIVITIES AND INITIATIVESIN 2013 PFAC MEMBERS INPUT WAS SOLICITED ON THE FORMATTING OF HOME MEDICATION LISTS TO USE FOR MEDICATION RECONCILIATION TO PROVIDE FEEDBACK ON A DISCHARGE INSTRUCTION PACKET AND ON THE MULTIPLE RENOVATION PROJECTS AT BOTH HOSPITALS AS PART OF ITS EFFORTS TO IMPROVE THE HEALTH STATUS OF ITS CORE COMMUNITIES HALLMARK HEALTH SYSTEM PARTICIPATES IN A VARIETY OF BROADBASED COMMUNITY COALITIONS AND INITIATIVES THAT WORK TOWARDS ADDRESSING THE SPECIFIC AND GENERAL HEALTH NEEDS IN THESE CITIES AND TOWNS A SAMPLE OF CURRENT MEMBERSHIPS INCLUDE THE MALDEN HIGH SCHOOL TEEN PARENT TASK FORCE MYSTIC VALLEY ELDER SERVICES PROVIDER TASK FORCE LOCAL COUNCILS ON AGING THE HEALTHY FAMILIES COMMUNITY COALITION THE JOINT COMMITTEE FOR CHILDRENS HEALTH CARE IN EVERETT JCCHCE MEDFORD HEALTH MATTERS THE TRICAP HUNGER NETWORK THE CHINESE CULTURE CONNECTION THE NORTH SUBURBAN HEALTH ALLIANCE THE MELROSE SUBSTANCE ABUSE PREVENTION COALITION THE MALDENS PROMISE COALITION THE MASS IN MOTION MELROSEWAKEFIELD COALITION AND THE STONEHAM ALLIANCE AGAINST VIOLENCE ONE CENTRAL FOCUS OF HALLMARK HEALTHS COMMUNITY BENEFITS WORK IS TO CONTINUE TO FOSTER RELATIONSHIPS WITH A WIDER ARRAY OF COMMUNITY GROUPS AND LOCAL LEADERS INCLUDING FAITHBASED AND GRASSROOTS ORGANIZATIONS SUCH RELATIONSHIPS PROVIDE INSIGHT INTO HOW THESE GROUPS VIEW HALLMARK HEALTH SYSTEMS ROLE IN THEIR COMMUNITY HOW OUR SYSTEM CAN IMPROVE THE WAYS WE SERVE DIVERSE RESIDENTS AND HOW THE SYSTEM SHOULD STRENGTHEN COLLABORATION TO BEST MEET DIVERGENT HEALTH NEEDS AFTER CAREFUL REVIEW OF DATA AND COMMUNITY INPUT THE FOLLOWING TARGET POPULATIONS WERE PRIORITIZED TO RECEIVE SERVICES IN 2013 O THE COMMUNITY ATLARGE TO BE PREPARED FOR DISASTERS AND EMERGENCIES BOTH NATURAL AND MANMADE SUCH AS SEASONAL AND PANDEMIC FLU OR ACCIDENTS INVOLVING LARGE NUMBERS OF VICTIMS O LOCAL COMMUNITY GROUPS AND HEALTH CARE SYSTEMS COLLABORATING TO AVOID DUPLICATION OF EFFORTS AND PROVIDE SERVICES TO THOSE MOST IN NEED RESIDENTS ESPECIALLY FOCUSED ON UNINSURED OR UNDERINSURED RESIDENTS OF OUR CORE COMMUNITIES AND SPECIFICALLY THE TARGET POPULATIONS IDENTIFIED TO IMPROVE ACCESS TO CARE THIS INCLUDES THE RECRUITMENT EDUCATION AND TRAINING OF NURSES PHYSICIANS AND OTHER PRACTITIONERS NEEDED TO CARE FOR THE TARGET POPULATIONSIT ALSO INCLUDES RESEARCHAS APPROPRIATE TO ENHANCE ACCESS TO HEALTH CARE AND IMPROVE HEALTH SERVICES LOW TO MODERATE INCOME UNSERVED AND UNDERSERVED ELDERLY IN OUR COMMUNITIES ESPECIALLY THOSE LIVING IN THE COMMUNITIES OF EVERETT MALDEN MEDFORD MELROSE READING SAUGUS STONEHAM WAKEFIELD FAMILIES WITH CHILDRENADOLESCENTS AT RISK DUE TO POVERTY ISOLATION LANGUAGE OR CULTURAL BARRIERS DOMESTIC VIOLENCE LACK OF SKILLS TO NAVIGATE THE HEALTH CARE SYSTEMLACK OF EARLY PRENATAL CARE OR THOSE IN NEED OF DEVELOPING PARENTING SKILLSTHESE EFFORTS WILL FOCUS ESPECIALLY ON FAMILIES IN MALDEN MEDFORDMELROSE SAUGUS EVERETT NORTH READING READING STONEHAM WAKEFIELDWILMINGTON WINCHESTER BURLINGTON AND WOBURN O RESIDENTS OF ALL AGES AND THEIR FAMILIES COPING WITH A VARIETY OF BEHAVIOURAL HEALTH ISSUES O RESIDENTS AT RISK FOR DEVELOPING CARDIOVASCULAR DISEASE OR THOSE EXPERIENCING HEALTH ISSUES DUE TO UNDIAGNOSED OR POORLY UNDERSTOOD CARDIOVASCULAR RISKS INCLUDING THOSE AT RISK FOR DEVELOPING CONGESTIVE HEART FAILURE CHF AND FOR SUFFERING A STROKE O COMMUNITY MEMBERS AT RISK FOR DEVELOPING DIABETES O
PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE	PART VI	MASSACHUSETTS HOSPITALS PROVIDE PATIENTS WITH INFORMATION ABOUT FINANCIAL ASSISTANCE PROGRAMS THROUGH THE COMMONWEALTH OF MASSACHUSETTS OR THROUGH THE HOSPITALS OWN FINANCIAL ASSISTANCE PROGRAM AS OUTLINED IN THE CREDIT AND COLLECTION POLICYFOR THOSE PATIENTS THAT REQUEST SUCH ASSISTANCETHE HOSPITAL ASSISTS PATIENTS BY SCREENING THEM FOR ELIGIBILTY IN AVAILABLE PUBLIC PROGRAMS AND ASSISTING THEM IN APPLYING FOR THE PROGRAMSTHE SCREENING AND APPLICATION PROCESS IS DONE THROUGH EITHER THE VIRTUAL GATEWAY WHICH IS AN INTERNET PORTAL DESIGNED BY MASSACHUSETTS EXECUTIVE OFFICES OF HEALTH AND HUMAN SERVICES TO PROVIDE AN ONLINE APPLICATION FOR THE PROGRAMS OFFERED BY THE STATEOR THROUGH A STANDARD PAPER APPLICATIONALL VIRTUAL GATEWAY AND PAPER APPLICATIONS ARE REVIEWED AND PROCESSED BY THE MASSACHUSETTS OFFICE OF MEDICAID WHICH USES FEDERAL POVERTY GUIDELINES AS THE BASIS FOR DETERMINING ELIGIBILITY HOSPITALS HAVE NO ROLE IN DETERMINING ELIGIBILITY MADE BY THE STATE BUT AT THE PATIENTS REQUEST MAY TAKE A DIRECT ROLE IN APPEALING OR SEEKING INFORMATION RELATED TO THE COVERAGE DECISION
COMMUNITY INFORMATION	PART VI	HALLMARK HEALTH IS A COMMUNITY HOSPITAL LOCATED APPROXIMATELY TEN10 MILES NORTH OF BOSTON MASSACHUSETTSIN THE GREATER BOSTON METROPOLITAN AREA THERE ARE A SIGNIFICANT NUMBER OF ACADEMIC MEDICAL CENTERS AND COMMUNITY HOSPITALS IN THE PRIMARY AND SECONDARY AREA COMMUNITIES OF HALLMARK HEALTH BASED ON DPH CRITERIA USING 2006 INPATIENT DATA AND ZIP CODE ANALYSIS THE PRIMARY SERVICE AREA INCLUDES MALDEN MEDFORD MELROSE SAUGUS AND WAKEFIELD AND THE SECONDARY SERVICE AREA INCLUDES EVERETT LYNNFIELD NORTH READING READING REVERE STONEHAM WILMINGTON AND WINTHROP FOR COMMUNITY PROGRAMS THE GEOGRAPHIC AREA SERVED INCLUDES ADDITIONAL COMMUNITIES AS EXAMPLE OF THIS IS THE NORTH SUBURBAN WOMEN INFANTS AND CHILDREN WIC PROGRAM WHICH SERVES THE TOWNS OF BURLINGTON WILMINGTON WINCHESTER AND WOBURN IN ADDITION TO EVERETT MALDEN MEDFORD MELROSE NORTH READING READING STONEHAM AND WAKEFIELD HALLMARK HEALTHS SERVICES AREA IS PRIMARILY WITHIN MIDDLESEX COUNTY IN THE CORE COMMUNITIES OF HALLMARK HEALTH WHICH INCLUDES EVERETT MALDEN MEDFORD MELROSE NORTH READING READING SAUGUS STONEHAM AND WAKEFIELD THREE OF THE COMMUNITIES EVERETT MALDEN AND MEDFORD HAVE PER CAPITA INCOME LEVELS BELOW THE STATE AVERAGE IN EVERETT THE POVERTY RATE IS AT 105 AND THE UNEMPLOYMENT RATE IS ALSO HIGHER THAN THE STATE AVERAGE MALDENS PER CAPITA INCOME IS 145 BELOW THE STATE AVERAGEYET THE POVERTY LEVEL AND UNEMPLOYMENT LEVEL ARE SIMILAR TO THE STATE AVERAGE INDICATING A HIGHER PERCENT OF THE POPULATION ARE THE WORKING POOR MEDFORDS PER CAPITA INCOME IS SLIGHTLY ABOVE THE STATE AVERAGE AND UNEMPLOYMENT IS SLIGHTLY BETTER THAN THE REST OF THE STATE NINETEEN PERCENT 19 OF THE COMMUNITY IS AT 200 OF POVERTY LEVEL OR BELOW IN ALL OF THE COMMUNITIES EXCEPT NORTH READING THE PERCENT OF RESIDENTS AGE 65 AND OLDER IS GREATER THAN THE STATE AVERAGE COMMUNITY DEMOGRAPHIC DATA THE DEMOGRAPHIC DIVERSITY AND LANGUAGE NEEDS OF THE POPULATIONS IN HALLMARK HEALTHS CORE COMMUNITIES IS DETERMINED FROM THE FOLLOWING SOURCES PROGRAM DATA FROM THE HALLMARK HEALTH INTERPRETER SERVICES PROGRAM HALLMARK HEALTHS 2011 INPATIENT DATA HALLMARK HEALTH NORTH SUBURBAN WOMEN INFANTS AND CHILDREN WIC NUTRITION PROGRAM AND HEALTHY FAMILIES MASS CHIP AND 2013 HHS NEEDS ASSESSMENT US CENSUS BUREAU REPORT SELECTED SOCIAL CHARACTERISTICS IN THE UNITED STATES 20062010 AMERICAN COMMUNITY SURVEY US CENSUS STATE AND COUNTY QUICKFACTS 2010 MASSACHUSETTS DEPARTMENT OF PUBLIC HEALTH REPORT FIRST LANGUAGE IS NOT ENGLISH FLNE AND LIMITED ENGLISH PROFICIENCY LEP STUDENTS IN MASSACHUSETTS PUBLIC SCHOOLS 20052006 SCHOOL YEAR MASSACHUSETTS DEPARTMENT OF PUBLIC HEALTH REPORT REFUGEE AND IMMIGRANT HEALTH PROGRAM REFUGEE ARRIVALS BY COUNTRY OF ORIGIN 20062010 MASSACHUSETTS SCHOOL AND DISTRICT PROFILES 20082009 ENROLLMENT BY RACEGENDER REPORT ANECDOTAL INFORMATION WAS COLLECTED FROM SOME OF HALLMARK HEALTHS COMMUNITY PARTNERS SUCH AS THE JOINT COMMITTEE FOR CHILDRENS HEALTH CARE IN EVERETT AND HALLMARK HEALTH COMMUNITY TEAM REPRESENTATIVES RACIALETHNIC DIVERSITY THE CULTURES REPRESENTED IN THE AFOREMENTIONED POPULATION INCLUDE BUT ARE NOT LIMITED TO PATIENTS FROM PUERTO RICO THE DOMINICAN REPUBLIC COLOMBIA BRAZIL CAPE VERDE CHINA CAMBODIA VIETNAM HAITI TURKEY ITALY FRANCE ALBANIA GREECE INDIA THE WEST INDIES AFRICAN NATIONS SUCH AS CAMEROON AFRICAN AMERICANS EASTERN EUROPEANS MULTIETHNIC FAMILIES AND PATIENTS OF ALL CULTURES WHO ARE ALSO DEAF AND HARD OF HEARING THE DIVERSITY OF THE HALLMARK HEALTH COMMUNITIES IS ALSO VERY DIFFERENT BOTH EVERETT AND MALDEN HAVE POPULATIONS COMPRISED OF A HIGHER NUMBER OF BLACK RESIDENTS 121 IN EVERETT AND 146 IN MALDEN THAN THE REST OF THE STATE AND IN MALDENTHE PERCENTAGE OF ASIAN RESIDENTS IS 191 ALSO HIGHER THAN THE STATE AVERAGE IN EVERETT THE HISPANIC POPULATION IS HIGHER THAN THE STATE AVERAGE AT 177 IN MEDFORD THE PERCENT OF BLACK RESIDENTS IS 92 WHILE THE ASIAN POPULATION IS SLIGHTLY HIGHER THAN THE REST OF THE STATE THE COMMUNITIES OF MELROSE NORTH READING READING STONEHAM SAUGUS AND WAKEFIELD HAVE PRIMARILY WHITE POPULATIONS WITH SMALLER ASIAN HISPANIC AND BLACK POPULATIONS HALLMARK HEALTH DATA FOR 2013 DEMONSTRATES THAT OVERALL 904 OF THE POPULATION USING THE FACILITIES IN FISCAL YEAR 2013 WERE WHITE 11 HISPANIC 36 BLACK 29 ASIAN AND 20 REPORTED THEIR RACEETHNICITY AS UNKNOWN IN MIDDLESEX COUNTY IN 2010 POPULATION STATISTICS REPORT 822 OF THE POPULATION AS WHITE 65 HISPANIC 54 BLACK 1036 ASIAN05 NATIVE AMERICAN AND 15 AS UNKNOWN FOR RACEETHNICITY LANGUAGE BASED ON STATE DATA THE MOST COMMON LANGUAGES SPOKEN IN HALLMARK HEALTHS SERVICE AREA OTHER THAN ENGLISH ARE SPANISH PORTUGUESE CHINESE HAITIAN CREOLE AND VIETNAMESE OTHER LANGUAGES THAT ARE NOT AS COMMON BUT SPOKEN BY MEMBERS OF THE COMMUNITY ARE AMERICAN SIGN LANGUAGE ARABIC FRENCH ITALIAN KHMERCAMBODIAN KOREAN POLISH RUSSIAN AND TURKISH IN TOTAL RESIDENTS IN OUR SERVICE AREA SPEAK OVER 35 DIFFERENT LANGUAGES REVIEWING MASSACHUSETTS SCHOOL DATA FOR SCHOOL YEAR 20052006 IN EVERETT 423 OF STUDENTS IDENTIFIED AS FIRST LANGUAGE NOT ENGLISH FLNE EVERETT HAS THE 5TH LARGEST STUDENT POPULATION OF PORTUGUESE SPEAKERS IN THE STATE 282 OF THE STUDENT POPULATION AND 46 OF THE TOTAL STATE POPULATION IN MALDEN 343 OF STUDENTS WERE FLNE MALDEN HAS THE FOURTH LARGEST STUDENT POPULATION OF CHINESE SPEAKERS IN THE STATE 257 OF THE STUDENT POPULATION AND 61 OF THE TOTAL STATE STUDENT POPULATION THE FIFTH LARGEST STUDENT POPULATION OF VIETNAMESE SPEAKERS IN THE STATE 112 OF THE TOTAL STATE STUDENT POPULATION AND 42 OF THE TOTAL STATE STUDENT POPULATION AND THE 5TH LARGEST STUDENT POPULATION OF ARABIC SPEAKERS AT 39 OF THE STUDENT POPULATION AND 42 OF THE TOTAL STATE STUDENT POPULATION IN MEDFORD 16 OF THE STUDENTS WERE FLNE IN REVERE 395 OF STUDENTS WERE FLNE REVERE HAS THE 2ND HIGHEST STUDENT POPULATION OF ARABIC SPEAKERS 72 OF THE STUDENT POPULATION AND 83 OF THE TOTAL STATE STUDENT POPULATION AND THE 4TH HIGHEST STUDENT POPULATION OF KHMER SPEAKERS 111 OF THE STUDENT POPULATION AND 48 OF THE TOTAL STATE STUDENT POPULATION IN WOBURN 101 OF THE STUDENTS WERE FLNE THE INTERPRETER SERVICES DEPARTMENT ALSO NOTED AN OVERALL INCREASE IN INTERPRETER REQUESTS FROM 3271 REQUESTS IN 2012 TO 3441 REQUESTS IN 2013 A 52 INCREASE IN THE TOTAL NUMBER OF REQUESTS HALLMARK HEALTH CONTRACTS WITH A SERVICE PROVIDER FOR A VARIETY OF LANGUAGE INTERPRETERS AND ALSO WITH THE MASSACHUSETTS COMMISSION FOR THE DEAF AND HARD OF HEARING FOR AMERICAN SIGN LANGUAGE INTERPRETERS ASL THE PROGRAM ALSO EMPLOYS SOME PER DIEM STAFF INTERPRETERS TO SUPPLEMENT THE INTERPRETER SERVICES CONTRACT IN ADDITION THE PROGRAM OFFERS LANGUAGE LINE TELEPHONE INTERPRETER SERVICES FOR RARELY ENCOUNTERED LANGUAGES WHEN THEY ARE UNABLE TO ACCESS TIMELY INTERPRETER SERVICES OR FOR EMERGENCIES
HEALTH OF COMMUNITY IN RELATION TO EXEMPT PURPOSE	PART VI	HALLMARK HEALTH HAS A 16 MEMBER COMMUNITY BOARD COMPRISED OF A MAJORITY OF COMMUNITY MEMBERS ONLY THREE 3 OF THE 16 BOARD MEMBERS ARE EMPLOYED BY HALLMARK HEALTH OR THE HOSPITALS PARENT CORPORATION HALLMARK HEALTH CORPORATION THE CHIEF EXECUTIVE OFFICER THE CHIEF MEDICAL OFFICER AND AN EMPLOYED PHYSICIAN MEMBER MEDICAL STAFF MEMBERSHIP AND PRIVILEGES ARE OPEN AND AVAILABLE TO ALL QUALIFIED PHYSICIANS WE HAVE A LARGE AND DIVERSE MEDICAL STAFF OF OVER 500 MEMBERS HALLMARK HEALTH OPERATES TWO VERY ACTIVE EMERGENCY ROOMS AT ITS CAMPUSES THEY ARE ACCESSIBLE TO ANYONE NEEDING CARE REGARDLESS OF THEIR ABILITY TO PAY NO PART OF THE INCOME OF HALLMARK HEALTH INURES TO THE BENEFIT OF ANY PRIVATE INDIVIDUAL NOR IS ANY PRIVATE INTEREST BEING SERVED ALL SURPLUS FUNDS ARE REINVESTED INTO THE FACILITIES EQUIPMENT OR PROGRAMS OF HALLMARK HEALTH TO IMPROVE THE QUALITY OF PATIENT CARE ACCESS TO CARE ADVANCE MEDICAL PRACTICE AND TO IMPROVE THE COMMUNITIES HEALTH AND WELL BEING IN 2013 HALLMARK HEALTH FINANCIAL COUNSELORS COMPLETED 1804 APPLICATIONS FOR INDIVIDUALS IN THE STATE HEALTH PROGRAMS SUCH AS MASS HEALTH PROGRAMS COMMONWEALTH CARE CHILDRENS MEDICAL SECURITY PLAN HEALTHY START AND THE HEALTH SAFETY NET THIS DOES NOT INCLUDE INTERACTIONS THAT DID NOT RESULT IN AN APPLICATION HALLMARK HEALTH SYSTEM FINANCIAL NAVIGATORS ALSO HELPED PATIENTS TO ENROLL IN SNAP FORMERLY FOOD STAMPS AND OTHER SOCIAL SERVICE PROGRAMS IN ADDITION THESE NAVIGATORS ATTENDED MORE THAN TWENTY 20 COMMUNITY OUTREACH EVENTS TO ASSIST PARTICIPANTS AND PROVIDE ENROLLMENT INFORMATION OTHER SERVICES PROVIDED TO RESIDENTS INCLUDE ADVOCATING FOR RESIDENTS MAKING APPOINTMENTS AND PROCURING OTHER SERVICES SUCH AS PROVIDING INFORMATION ABOUT THE MOBILE FOOD MARKET BILLING AND COLLECTIONS PRACTICES ARE ALSO POSTED ON THE SYSTEM WEB SITE HALLMARK HEALTH ALSO PROVIDED MEETING SPACE INKIND AND SUBSIDIZED OR PROVIDED RENT AND UTILITIES INKIND FOR KEY COMMUNITY PARTNERS SUCH AS PORTAL TO HOPE WHICH PROVIDES DOMESTIC VIOLENCE PREVENTION AND SUPPORT SERVICES MEETING SPACE WAS ALSO OFFERED TO OTHER AGENCIES WHOSE MISSION IS ALIGNED WITH THE HALLMARK HEALTH SYSTEM COMMUNITY BENEFITS PLAN SUCH AS ALCOHOLICS ANONYMOUS GROUPS THE MELROSE SUBSTANCE ABUSE PREVENTION COALITION THE EVERETT COORDINATED FAMILY AND COMMUNITY ENROLLMENT GRANT OVEREATERS ANONYMOUS GROUPS AND THE NORTHEAST REGIONAL COMMUNITY HEALTH NETWORK AREA CHNA 16 AS EXAMPLES HALLMARK HEALTHS RESPONSIVENESS TO THE NEEDS OF OUR COMMUNITIES IS EVIDENCED BY OUR WILLINGNESS TO PROVIDE ANDOR PARTICIPATE IN A BROAD RANGE OF COMMITTEES COALITIONS PANELS ADVISORY GROUPS AND COMMISSIONS IN ORDER PROMOTE OUR MISSION OF IMPROVING HEALTH STATUS AND PROVIDING THE EFFICIENT DELIVERY OF HIGH QUALITY HEALTH CARE TO OUR COMMUNITIESSEE ALSO PART II COMMUNITY BUILDING ACTIVITIES
AFFILIATED HEALTH CARE INFORMATION	PART VI	HALLMARK HEALTH SYSTEM IS A COMMUNITY HOSPITAL WITH MULTIPLE CAMPUSES AND IS A MEMBER OF HALLMARK HEALTH CORPORATION HHC HHC HAS OTHER MEMBER ORGANIZATIONS THAT INCLUDE A SUBSTANTIAL HOME HEALTH VISITING NURSE AND HOSPICE ENTITY AND A PHYSICIAN PRACTICE ORGANIZATION A COMPREHENSIVE SYSTEM APPROACH IS TAKEN TO PROVIDING COMMUNITY BENEFITS ALL AFFILIATED ENTITIES PROVIDE PATIENT CARE WITHOUT CONSIDERATION OF A PATIENTS ABILITY TO PAY ALL SURPLUS FUNDS OF THE AFFILIATED ENTITIES ARE REINVESTED IN PROVIDING ACCESS TO HEALTH SERVICES AND IMPROVING THE HEALTH STATUS OF THE COMMUNITIES SERVED
LIST OF STATES WHERE COMMUNITY BENEFIT REPORT IS FILED	PART VI	MASSACHUSETTS
ADDITIONAL INFORMATION	PART VI	QUESTION 6B IF YES DOES THE ORGANIZATION MAKE IT AVAILABLE TO THE PUBLIC THIS REPORT IS SUBMITTED TO THE MASSACHUSETTS ATTORNEY GENERALS OFFICE EACH YEAR AND POSTED ON THEIR WEBSITE THE ORGANIZATION ALSO POSTS THE ANNUAL COMMUNITY BENEFITS REPORT ON THE HOSPITALS WEBSITE HTTPWWWHALLMARKHEALTHCOMCOMMUNITYBENEFITSHTML HALLMARK HEALTH CURRENTLY DESIGNATES NINE WEB PAGES ON THE HOSPITALS WEBSITE TO DESCRIBING THE HOSPITALS TARGET POPULATIONS TO RECEIVE SERVICES THE COMMUNITY BENEFITS ADVISORY COUNCIL AND KEY PROGRAMS AND COMMUNITY PARTNERSHIPS THIS YEAR AN ADDITIONAL PAGE WILL BE ADDED TO INCLUDE COMMUNITY HEALTH NEEDS ASSESSMENT DATA IN ADDITION HALLMARK HEALTH FEATURES STORIES ABOUT COMMUNITY BENEFITS PROGRAMS EACH QUARTER IN THE HALLMARK HEALTH SYSTEM MAGAZINE THIS PUBLICATION REACHES MORE THAN 100000 HOUSEHOLDS IN OUR SERVICE AREA HALLMARK HEALTH ALSO PROMOTES COMMUNITY BENEFITS PROGRAMS THROUGH LOCAL PRESS RELEASES CALENDAR POSTINGS FACEBOOK AND TWITTER MESSAGING AND THROUGH LOCAL CABLE ACCESS STATIONS FLYERS ARE ALSO DISSEMINATED WIDELY IN THE COMMUNITY TO NOTIFY RESIDENTS OF UPCOMING COMMUNITY BENEFITS PROGRAMS AND SERVICES
MELROSE WAKEFIELD HOSPITAL REPORTING GROUP A PART V LINE 3	PART V LINE 3	IN ITS MOST RECENT COMMUNITY HEALTH NEEDS ASSESSMENTCHNA COMPLETED IN AUGUST 2013 HALLMARK HEALTH SPECFICALLY TOOK INTO ACCOUNT INPUT FRON REPRESENTATIVES WITHIN THE COMMUNITIES SERVED BY ITS FACILITIES DURING THE CHNA RESEARCH PROCESS CONDUCTED IN COLLABORATION WITH THE INSTITUTE FOR COMMUNITY HEALTH INCSTAKEHOLDER INTERVIEWS WERE CONDUCTED WITH 18 KEY COMMUNITY LEADERS AND STAKEHOLDERS ACROSS THE CATCHMENT AREAINCLUDING STATE PUBLIC HEALTH OFFICIALS AND MEMBERS OF LOCAL BOARDS OF HEALTH AND PUBLIC HEALTH DIRECTORS ASKING ABOUT TOP HEALTH CONCERNSVULNERABLE POPULATIONS COMMUNITY ASSETS AND RESOURCESEXPERIENCES AND SUGGESTIONSBROADER COMMUNITYWIDE INPUT WAS ALSO SOLICITED THROUGH A FORMAL SURVEY CONDUTED BOTH ONLINE AND IN HARD COPY FORMATTHE SURVEY TOOL WAS AVAILABLE IN ENGLISH AND TRANSLATED INTO THE SIX MOST COMMON LANGUAGES WITHIN THE SERVICE AREATHE RESPONSE OF 387 CATCHMENT AREA RESIDENTS WERE ULTIMATELY COMPILED INCLUDING INFORMATION RELATED TO THEIR HEALTH CARE CONCERNS BEHAVIORS AND NEEDS AND INCORPORATRD INTO THE CHNA
MELROSE WAKEFIELD HOSPITAL REPORTING GROUP A PART V LINE 20D	PART V LINE 20D	FIFTY PERCENT OF CHARGES ARE BILLED TO INDIVIDUALS WHO DO NOT HAVE INSURANCE
LAWRENCE MEMORIAL HOSPITAL REPORTING GROUP A PART V LINE 3	PART V LINE 3	REFER TO PART VI SUPPLEMENTAL SCHEDULE H INFORMATION AS REPORTED IN MELROSE WAKEFIELD HOSPITAL REPORTING GROUP A PART V LINE 3
LAWRENCE MEMORIAL HOSPITAL REPORTING GROUP A PART V LINE 20D	PART V LINE 20D	FIFTY PERCENT OF CHARGES ARE BILLED TO INDIVIDUALS WHO DO NOT HAVE INSURANCE
HALLMARK ONCOLOGY HEMATOLOGY CTR REPORTING GROUP A PART V LINE 3	PART V LINE 3	REFER TO PART VI SUPPLEMENTAL SCHEDULE H INFORMATION AS REPORTED IN MELROSE WAKEFIELD HOSPITAL REPORTING GROUP A PART V LINE 3
HALLMARK ONCOLOGY HEMATOLOGY CTR REPORTING GROUP A PART V LINE 20D	PART V LINE 20D	FIFTY PERCENT OF CHARGES ARE BILLED TO INDIVIDUALS WHO DO NOT HAVE INSURANCE
CHEM CENTER FOR RADIATION MRI REPORTING GROUP A PART V LINE 3	PART V LINE 3	REFER TO PART VI SUPPLEMENTAL SCHEDULE H INFORMATION AS REPORTED IN MELROSE WAKEFIELD HOSPITAL REPORTING GROUP A PART V LINE 3
CHEM CENTER FOR RADIATION MRI REPORTING GROUP A PART V LINE 20D	PART V LINE 20D	FIFTY PERCENT OF CHARGES ARE BILLED TO INDIVIDUALS WHO DO NOT HAVE INSURANCE
LAWRENCE MEMORIAL HOSPITAL MEDICAL REPORTING GROUP A PART V LINE 3	PART V LINE 3	REFER TO PART VI SUPPLEMENTAL SCHEDULE H INFORMATION AS REPORTED IN MELROSE WAKEFIELD HOSPITAL REPORTING GROUP A PART V LINE 3
LAWRENCE MEMORIAL HOSPITAL MEDICAL REPORTING GROUP A PART V LINE 20D	PART V LINE 20D	FIFTY PERCENT OF CHARGES ARE BILLED TO INDIVIDUALS WHO DO NOT HAVE INSURANCE
HALLMARK OUTPAT DIAGNOSTIC REHAB REPORTING GROUP A PART V LINE 3	PART V LINE 3	REFER TO PART VI SUPPLEMENTAL SCHEDULE H INFORMATION AS REPORTED IN MELROSE WAKEFIELD HOSPITAL REPORTING GROUP A PART V LINE 3
HALLMARK OUTPAT DIAGNOSTIC REHAB REPORTING GROUP A PART V LINE 20D	PART V LINE 20D	FIFTY PERCENT OF CHARGES ARE BILLED TO INDIVIDUALS WHO DO NOT HAVE INSURANCE
HEALTH IMAGE WOMANS IMAGING CENTER REPORTING GROUP A PART V LINE 3	PART V LINE 3	REFER TO PART VI SUPPLEMENTAL SCHEDULE H INFORMATION AS REPORTED IN MELROSE WAKEFIELD HOSPITAL REPORTING GROUP A PART V LINE 3
HEALTH IMAGE WOMANS IMAGING CENTER REPORTING GROUP A PART V LINE 20D	PART V LINE 20D	FIFTY PERCENT OF CHARGES ARE BILLED TO INDIVIDUALS WHO DO NOT HAVE INSURANCE
LMH REHABILITATION SERVICES REPORTING GROUP A PART V LINE 3	PART V LINE 3	REFER TO PART VI SUPPLEMENTAL SCHEDULE H INFORMATION AS REPORTED IN MELROSE WAKEFIELD HOSPITAL REPORTING GROUP A PART V LINE 3
LMH REHABILITATION SERVICES REPORTING GROUP A PART V LINE 20D	PART V LINE 20D	FIFTY PERCENT OF CHARGES ARE BILLED TO INDIVIDUALS WHO DO NOT HAVE INSURANCE
MELROSEWAKEFIELD HOSP REHAB SERV REPORTING GROUP A PART V LINE 3	PART V LINE 3	REFER TO PART VI SUPPLEMENTAL SCHEDULE H INFORMATION AS REPORTED IN MELROSE WAKEFIELD HOSPITAL REPORTING GROUP A PART V LINE 3
MELROSEWAKEFIELD HOSP REHAB SERV REPORTING GROUP A PART V LINE 20D	PART V LINE 20D	FIFTY PERCENT OF CHARGES ARE BILLED TO INDIVIDUALS WHO DO NOT HAVE INSURANCE
FAMILY MEDICAL ASSOCIATES REPORTING GROUP A PART V LINE 3	PART V LINE 3	REFER TO PART VI SUPPLEMENTAL SCHEDULE H INFORMATION AS REPORTED IN MELROSE WAKEFIELD HOSPITAL REPORTING GROUP A PART V LINE 3
FAMILY MEDICAL ASSOCIATES REPORTING GROUP A PART V LINE 20D	PART V LINE 20D	FIFTY PERCENT OF CHARGES ARE BILLED TO INDIVIDUALS WHO DO NOT HAVE INSURANCE
LAWRENCE MEMORIAL HOSPITAL PROGRAM REPORTING GROUP A PART V LINE 3	PART V LINE 3	REFER TO PART VI SUPPLEMENTAL SCHEDULE H INFORMATION AS REPORTED IN MELROSE WAKEFIELD HOSPITAL REPORTING GROUP A PART V LINE 3
LAWRENCE MEMORIAL HOSPITAL PROGRAM REPORTING GROUP A PART V LINE 20D	PART V LINE 20D	FIFTY PERCENT OF CHARGES ARE BILLED TO INDIVIDUALS WHO DO NOT HAVE INSURANCE
HALLMARK COMMUNITY COUNSELING REPORTING GROUP A PART V LINE 3	PART V LINE 3	REFER TO PART VI SUPPLEMENTAL SCHEDULE H INFORMATION AS REPORTED IN MELROSE WAKEFIELD HOSPITAL REPORTING GROUP A PART V LINE 3
HALLMARK COMMUNITY COUNSELING REPORTING GROUP A PART V LINE 20D	PART V LINE 20D	FIFTY PERCENT OF CHARGES ARE BILLED TO INDIVIDUALS WHO DO NOT HAVE INSURANCE
COMMUNITY COUNSELING CENTER REPORTING GROUP A PART V LINE 3	PART V LINE 3	REFER TO PART VI SUPPLEMENTAL SCHEDULE H INFORMATION AS REPORTED IN MELROSE WAKEFIELD HOSPITAL REPORTING GROUP A PART V LINE 3
COMMUNITY COUNSELING CENTER REPORTING GROUP A PART V LINE 20D	PART V LINE 20D	FIFTY PERCENT OF CHARGES ARE BILLED TO INDIVIDUALS WHO DO NOT HAVE INSURANCE

Schedule H (Form 990) 2012

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

2012

Open to Public Inspection

Name of the organization

HALLMARK HEALTH SYSTEMINC

Employer identification number

04-2767880

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 of the expenses described above? If "No," complete Part III to explain....

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? .......

Indicate which, if any, of the following the filing organization used 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? ................

Yes

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

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 ............

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

Cat. No. 50053T

Schedule J (Form 990) 2012

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 (E) amounts for that individual.

(A) Name and Title		(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 and Title		(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)MVSACKPRESIDENT	(i) (ii)	658,377	345,439	94,089	7,500	85,479	1,190,884
(2)WJ DOHERTY MDDIRECTOR CMO	(i) (ii)	357,853	45,653		7,339	2,209	413,054
(3)EPBUTLER MDDIRECTOR	(i) (ii)	266,625 51,988			6,736	55,406	328,767 51,988
(4)J NANIACFOASST TREASURER	(i) (ii)	492,467	49,531	12,000	7,500	25,923	587,421
(5)C WHIPPLEASSTCLERKGEN COUN	(i) (ii)	239,389	31,380		6,585	20,357	297,711
(6)TGIOVEVP-AMBULATORY SVS	(i) (ii)	365,644	9,548	32,878	6,295	10,119	424,484
(7)S HANDVP-ANCILLARY SERVICE	(i) (ii)	365,632	10,079	22,529	7,500	22,916	428,656
(8)K HOPPEPHYSICIAN- DIR	(i) (ii)	263,757	50,800	10,498	6,411	28,038	359,504
(9)M TURILLIVP-FISCAL	(i) (ii)	252,575	38,280	20,006	7,500	25,938	344,299
(10)C DRESSERVP-INFORMATION SERVI	(i) (ii)	194,396	9,475	15,384	3,937	17,594	240,786
(11)D RICHARDSONVP-SUPPORT SERVICES	(i) (ii)	210,496	100		6,578	32,849	250,023
(12)M MCCARTHYVP-EDUCATION	(i) (ii)	174,645	10,753	7,012	5,108	26,774	224,292
(13)M PIEROGVO-QUALITY ASSURANCE	(i) (ii)	169,448	20,325		2,925	19,673	212,371
(14)J PENNACCHIO MDONCOLOGY MD	(i) (ii)	453,832	100		5,152	20,213	479,297
(15)R EISENBERG MDONCOLOGY MD	(i) (ii)	398,090	100		7,500	28,962	434,652
(16)L MCCADDENNURSE CONSULTANT	(i) (ii)	310,310	3,072	33,860	3,430	31,620	382,292
(17)RJ WELCH MDPSYCH MD	(i) (ii)	237,955	19,100		6,381	36,462	299,898
(18)S SCHURGIN MDCLINICAL MD	(i) (ii)	181,528	32,229		4,660	510	218,927
(19)A MACDONALDFMR SEC VP	(i) (ii)	33,196					33,196

Schedule J (Form 990) 2012

Page 3

Part III

Supplemental Information

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

Identifier	Return Reference	Explanation
RELATED ORG METHODS USED FOR COMPENSATION EXPLANATION	SCHEDULE J, PAGE 1, PART I, LINE 3	ANUALLY THE HUMAN RESOURCES COMMITTEE OF THE ORGANIZATION COMPRISED OF INDEPENDENT DIRECTORS REVIEWS THE COMPENSATION OF THE PRESIDENT AND EXECUTIVE LEADERSHIP TEAM USING DATA FROM AN INDEPENDENT THIRD PARTY EVALUATION OF COMPARABLE COMPENSATION DATA TO ASSESS AND SET COMPENSATION. COMPENSATION IS PAID BY A RELATED CORPORATION.
SEVERANCE, NONQUALIFIED, AND EQUITY-BASED PAYMENTS	SCHEDULE J, PAGE 1, PART I, LINE 4	T.GIOVE 196,697 0 0 S. HAND 207,617 0 0 L. MCCADDEN 159,159 0 0

Schedule J (Form 990) 2012

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

2012

Open to Public
Inspection

Name of the organization
HALLMARK HEALTH SYSTEMINC

Employer identification number
04-2767880

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	MDFA COMM OF MASS	04-3431814	NONE00000	12-09-2011	10,000,000	FINANCE CAPITAL		X		X		X
B	MDFA COMM OF MASS	04-3431814	NONE00000	03-01-2013	49,606,243	REFUND 2011 A&B SERIES WHICH REFINDED 1998 SEIES A		X		X		X
C	MDFA MHEFA ( COMM OF MASS )	04-3431814	NONE00000	03-01-2013	19,800,000	RATE 2008 SERIES C WHICH REFUNDED 1998 SERIES B.		X		X		X
D	MDFA COMM OF MASS	04-3431814	NONE00000	03-01-2013	20,000,000	FINANCE CAPITAL		X		X		X

Part II

Proceeds

	A		B		C		D
	1 Amount of bonds retired . . . . . . . . . . . . . .	918,727				995,000
2 Amount of bonds legally defeased . . . . . . . . . . .
3 Total proceeds of issue . . . . . . . . . . . . . .	10,000,000		49,606,243		19,800,000		20,000,000
4 Gross proceeds in reserve funds . . . . . . . . . . . .
5 Capitalized interest from proceeds . . . . . . . . . . .
6 Proceeds in refunding escrows . . . . . . . . . . . .
7 Issuance costs from proceeds . . . . . . . . . . . .	250,528		500,695				98,939
8 Credit enhancement from proceeds . . . . . . . . . . .
9 Working capital expenditures from proceeds . . . . . . . . .
10 Capital expenditures from proceeds . . . . . . . . . . .
11 Other spent proceeds . . . . . . . . . . . . . .
12 Other unspent proceeds . . . . . . . . . . . . . .
13 Year of substantial completion . . . . . . . . . . . .	2012		2001		2001		2014
	Yes	No	Yes	No	Yes	No	Yes	No
14 Were the bonds issued as part of a current refunding issue? . . . . .		X	X			X		X
15 Were the bonds issued as part of an advance refunding issue? . . . . .		X		X		X		X
16 Has the final allocation of proceeds been made? . . . . . . . .	X		X		X		X
17 Does the organization maintain adequate books and records to support the final allocation of proceeds? . . . . . . . . . . . . . .	X		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		X
2 Are there any lease arrangements that may result in private business use of bond-financed property? . . . . . . . . .		X		X		X		X

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

Cat. No. 50193E

Schedule K (Form 990) 2012

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		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		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 . .	%		%		%		%
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 . . . . . . .	%		%		%		%
6 Total of lines 4 and 5 . . . . . . . . . . . . . . .	%		%		%		%
7 Does the bond issue meet the private security or payment test? . . . . .	X		X		X		X
8a Has there been a sale or disposition of any of the bond financed property to a nongovernmental person other than a 501(c)(3) organization since the bonds were issued?. . . . . . . . . . . . . . . . .		X		X		X		X
b If “Yes” to line 8a, enter the percentage of bond-financed property sold or disposed of.	%		%		%		%
c If “Yes” to line 8a, was any remedial action taken pursuant to Regulations sections 1.141-12 and 1.145-2? . . . . . . . . . . . . .		X		X		X		X
9 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		X

Part IV

Arbitrage

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
1 Has the issuer filed Form 8038-T? . . . . .		X		X		X		X
2 If "No" to line 1, did the following apply? . . . .
a Rebate not due yet? . . . . . . . .	X		X		X		X
b Exception to rebate? . . . . . . . .		X		X		X		X
c No rebate due? . . . . . . . . . .		X		X		X		X
If you checked "No rebate due" in line 2c, provide in Part VI the date the rebate computation was performed
3 Is the bond issue a variable rate issue? . . . .	X			X		X		X
4a Has the organization or the governmental issuer entered into a qualified hedge with respect to the bond issue?		X		X		X		X
b Name of provider . . . . . . . . .
c Term of hedge . . . . . . . . . .
d Was the hedge superintegrated? . . . . . .
e Was a hedge terminated? . . . . . . .

Schedule K (Form 990) 2012

Page 3

Part IV

Arbitrage (Continued)

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
5a Were gross proceeds invested in a guaranteed investment contract (GIC)? . . . . . . . . .		X		X		X		X
b Name of provider . . . . . . . . .
c Term of GIC . . . . . . . . . .
d Was the regulatory safe harbor for establishing the fair market value of the GIC satisfied? . . . . .
6 Were any gross proceeds invested beyond an available temporary period? . . . . . . . .		X		X		X		X
7 Has the organization established written procedures to monitor the requirements of section 148? . . .		X		X		X		X

Part V

Procedures To Undertake Corrective Action

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
1 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?		X

Part VI

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

Identifier	Return Reference	Explanation

Schedule K (Form 990) 2012

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, line 38a or 40b.
MediumBullet

Attach to Form 990 or Form 990-EZ. MediumBullet

See separate instructions.

OMB No. 1545-0047

2012

Open to Public Inspection

Name of the organization

HALLMARK HEALTH SYSTEMINC

Employer identification number

04-2767880

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

Enter the amount of tax incurred by 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-EZ, Part V, line 38a, or Form 990, Part IV, line 26; or if the organization reported an amount on Form 990, Part X, line 5, 6, or 22

(a) Name of interested person	(b) Relationship with organization	(c) Purpose of loan	(d) Loan to or from the organization?		(e)Original principal amount	(f)Balance due	(g) In default?		(h) Approved by board or committee?		(i)Written agreement?
(a) Name of interested person	(b) Relationship with organization	(c) Purpose of loan	To	From	(e)Original principal amount	(f)Balance due	Yes	No	Yes	No	Yes	No
(1) MV SACK		ARMS LENGTH NEGOTIATED BENEFIT		X	132,500	5,476,000		No	Yes		Yes
(2) J NANIA		ARMS LENGTH NEGOTIATED BENEFIT		X	115,296	1,246,844		No	Yes		Yes




Total ...... $						6,722,844

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 assistance	(d) Type of assistance	(e) Purpose of assistance

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

Cat. No. 50056A

Schedule L (Form 990 or 990-EZ) 2012

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	(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

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) 2012

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

2012

Open to Public
Inspection

Name of the organization

HALLMARK HEALTH SYSTEMINC

Employer identification number

04-2767880

Identifier	Return Reference	Explanation
DOING BUSINESS AS	FORM 990, PAGE 1, ITEM C	MEDFORD MELROSE-WAKEFIELD HOSPITAL
MATERIAL DIFFERENCES IN VOTING RIGHTS EXPLANATION	FORM 990, PAGE 6, PART VI	THE CFO / ASST. TREASURER, ASST.CLERKS AND ASST. SECRETARY OF THE GOVERNING BODY DO NOT HAVE VOTES ON BOARD.
CLASSES OF MEMBERS OR STOCKHOLDERS	FORM 990, PAGE 6, PART VI, LINE 6	HALLMARK HEALTH SYSTEM, INC. HAS APPROXIMATELY 155 COMMUNITY MEMBERS.
ELECTION OF MEMBERS AND THEIR RIGHTS	FORM 990, PAGE 6, PART VI, LINE 7A	MEMBERS ELECT BOARD OF TRUSTEES
DECISIONS SUBJECT TO APPROVAL OF MEMBERS	FORM 990, PAGE 6, PART VI, LINE 7B	MEMBERS HAVE RIGHTS TO APPROVE DECISIONS OF BOARD AS REQUIRED BY THE ORGANIZATION'S ARTICLES, BYLAWS AND LAWS OF THE COMMONWEALTH OF MASSACHUSTTS.
ORGANIZATION'S PROCESS USED TO REVIEW FORM 990	FORM 990, PAGE 6, PART VI, LINE 11B	FORM 990 WAS PROVIDED TO THE GOVERNING BODY AND REVIEWED BY THE AUDIT & COMPLIANCE COMMITTEE PRIOR TO FILING.
ENFORCEMENT OF CONFLICTS POLICY	FORM 990, PAGE 6, PART VI, LINE 12C	ANNUALLY THE GOVERNING BODY AND KEY EMPLOYEES ARE SENT THE POLICY AND REQUIRED TO COMPLETE A DISCLOSURE FORM THAT IS SUBMITTED TO THE OFFICE OF GENERAL COUNSEL FOR REVIEW.THE CONTENTS OF THE DISCLOSURES AND ACTIONS NECESSARY TO ADDRESS CONFLICTS ARE REVIEWED WITH THE CHAIR OF THE GOVERNING BODY'S BOARD AND ITS PRESIDENT.
COMPENSATION PROCESS FOR TOP OFFICIAL	FORM 990, PAGE 6, PART VI, LINE 15A	ANNUALLY THE HUMAN RESOURCES COMMITTEE OF THE ORGANIZATION COMPRISED OF INDEPENDENT DIRECTORS REVIEWS THE COMPENSATION OF THE PRESIDENT USING DATA FROM AN INDEPENDENT THIRD PARTY EVALUATION OF COMPARABLE COMPENSATION DATA TO ASSESS AND SET COMPENSATION. COMPENSATION IS PAID BY A RELATED CORPORATION.
COMPENSATION PROCESS FOR OFFICERS	FORM 990, PAGE 6, PART VI, LINE 15B	ANUALLY THE HUMAN RESOURCES COMMITTEE OF THE ORGANIZATION COMPRISED OF INDEPENDENT DIRECTORS REVIEWS THE COMPENSATION OF THE PRESIDENT AND EXECUTIVE LEADERSHIP TEAM USING DATA FROM AN INDEPENDENT THIRD PARTY EVALUATION OF COMPARABLE COMPENSATION DATA TO ASSESS AND SET COMPENSATION. COMPENSATION IS PAID BY A RELATED CORPORATION.
NO PUBLIC DISCLOSURE EXPLANATION	FORM 990, PAGE 6, PART VI, LINE 18	DOCUMENTS ARE AVAILABLE FOR PUBLIC INSPECTION UPON REQUEST TO THE OFFICE OF GENERAL COUNSEL. THE ORGANIZATION'S RETURNS AND FINANCIALS SHOULD ALSO BE AVAILABLE TO THE PUBLIC AT THE PUBLIC CHARITIES DIVISION OF MASSACHUSETTS WEBSITE.
GOVERNING DOCUMENTS DISCLOSURE EXPLANATION	FORM 990, PAGE 6, PART VI, LINE 19	DOCUMENTS ARE AVAILABLE FOR PUBLIC INSPECTION UPON REQUEST TO THE OFFICE OF GENERAL COUNSEL. THE ORGANIZATION'S RETURNS AND FINANCIALS SHOULD ALSO BE AVAILABLE TO THE PUBLIC AT THE PUBLIC CHARITIES DIVISION OF MASSACHUSETTS WEBSITE.
OTHER CHANGES IN NET ASSETS EXPLANATION	FORM 990, PART XI, LINE 9	UNREALIZED GAIN INVESTMENTS(NET CUMULATIVE EFFECT) 6,746,568 UNREALIZED GAIN-BENEFICIAL INTERESTS PERPETUAL TR. 403,041 PENSION LIABILITY ADJUSTMENT 5,719,304 NET ASSETS RELEASED FROM RESTRICTIONS-OPERATIONS -649,156 NET DISTRIBUTIONS TO AFFILIATES -5,902,289 HOSPITAL AUXILIARY, NET CHANGE -1,297 -------- 6,316,171 ==========

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

Cat. No. 51056K

Schedule O (Form 990 or 990-EZ) 2012

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

2012

Open to Public Inspection

Name of the organization

HALLMARK HEALTH SYSTEMINC

Employer identification number

04-2767880

Part I

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

(a) Name, address, and EIN (if applicable) 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
(1) HALLMARK HEALTH SYS MWH AUXILIARY 170 GOVERNORS AVENUE MEDFORD,MA02155 04-2767880	GIFT SHOP	MA	123,465	22,114	HHS HALLMARK HEALTH SYSTEM INC

Part II

Identification of Related Tax-Exempt Organizations (Complete if the organization answered "Yes" to 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 entity?
(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) HALLMARK HEALTH CORPORATION (HHC) 170 GOVERNORS AVE MEDFORD,MA02155 04-2103587	PARENT	MA	501C3	11C	NA N/A		No
(2) HALLMARK HEALTH VISITING NURSE & HOSPICE INC 170 GOVERNORS AVE MEDFORD,MA02155 04-2437064	VISIT NURS	MA	501C3	9	HHC HALLMARK HEALTH CORPORATION		No
(3) HALLMARK HEALTH MEDICAL ASSOC INC 170 GOVERNORS AVE MEDFORD,MA02155 04-3140938	MD OFFICES	MA	501C3	9	HHC HALLMARK HEALTH CORPORATION		No
(4) LM LONG TERM CARE SERVICES INC 170 GOVERNORS AVE MEDFORD,MA02155 04-2938772	LT CARE	MA	501C3	11C	HHC HALLMARK HEALTH CORPORATION		No
(5) SAVIN LONG TERM CORPORATION 170 GOVERNORS AVE MEDFORD,MA02155 04-3012616	LT CARE	MA	501C3	9	HHC HALLMARK HEALTH CORPORATION		No
(6) HALLMARK HEALTH PROPERTIES INC 170 GOVERNORS AVE MEDFORD,MA02155 22-2580542	PROPERTY	MA	501C3	11C	HHC HALLMARK HEALTH CORPORATION		No
(7) FRIENDS OF LAWRENCE MEMORIAL HOSP 170 GOVERNORS AVE MEDFORD,MA02155 04-2149760	GIFT SHOP	MA	501C3	9	HHS HALLMARK HEALTH CORPORATION	Yes

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

Cat. No. 50135Y

Schedule R (Form 990) 2012

Page 2

Part III

Identification of Related Organizations Taxable as a Partnership (Complete if the organization answered "Yes" to 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	(e) Predominant income(related, unrelated, excluded from tax under sections 512-514)	(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?		(k) Percentage ownership
(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
(1) HALLMARK HEALTH INVESTMENTS LLC 170 GOVERNORS AVE MEDFORD,MA02155 02-0657666	INVESTMENT	MA	N/A					No			No	84.860 %
(2) MONTVALE PETCT LLC 100 BAYVIEW CIRCLE SUITE 400 NEWPORT BEACH,CA92660 27-0325022	CAT SCAN	CA	HHS HALLMARK HEALTH SYSTEM INC	RELATED	153,675	64,632		No			No	50.000 %

Part IV

Identification of Related Organizations Taxable as a Corporation or Trust (Complete if the organization answered "Yes" to 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)	(f) Share of total income	(g) Share of end-of-year assets	(i) Section 512(b)(13) controlled entity?
(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)	(f) Share of total income	(g) Share of end-of-year assets	Yes	No
(1) HALLMARK HEALTH ENTERPRISES INC 585 LEBANON STREET MELROSE,MA02176 45-2475660	OTHER HLTH	MA	N/A					No

Schedule R (Form 990) 2012

Page 3

Part V

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

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

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 or (iv) rent from a controlled entity . . . . . . . . . . . . . . . . . . . . . . .

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

Yes

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

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

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

f Dividends from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

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

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

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

Yes

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

Yes

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

Yes

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

Yes

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

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

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

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

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

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

Yes

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-s)	(c) Amount involved	(d) Method of determining amount involved
(1) HALLMARK HEALTH CORPORATION	B	1,868,617	FAIR MARKET VALUE
(2) HALLMARK HEALTH MEDICAL ASSOC INC	B	3,502,597	FAIR MARKET VALUE
(3) HALLMARK HEALTH PROPERTIES	B	531,075	FAIR MARKET VALUE
(4) HALLMARK HEALTH VISTING NURSE & HOSPICE INC	J	164,568	FAIR MARKET VALUE
(5) HALLMARK HEALTH MEDICAL ASSOC INC	J	462,008	FAIR MARKET VALUE
(6) HALLMARK HEALTH PROPERTIES INC	K	203,663	FAIR MARKET VALUE
(7) HALLMARK HEALTH CORPORATION	K	1,267,694	FAIR MARKRT VALUE
(8) HALLMARK HEALTH MEDICAL ASSOC INC	L	862,236	ACTUAL COST
(9) HALLMARK HEALTH VISTING NURSE & HOSPICE INC	L	49,200	COST TIME ALLOCATION
(10) HALLMARK HEALTH CORPORATION	M	3,297,397	COST TIME ALLOCATION
(11) FRIENDS OF LAWRENCE MEM HOSPITAL	M	123,291	ACTUAL COST
(12) HALLMARK HEALTH CORPORATION	B	1,868,617	FAIR MARKET VALUE
(13) HALLMARK HEALTH MEDICAL ASSOC INC	B	3,502,597	FAIR MARKET VALUE
(14) HALLMARK HEALTH PROPERTIES	B	531,075	FAIR MARKET VALUE
(15) HALLMARK HEALTH VISTING NURSE & HOSPICE INC	J	164,568	FAIR MARKET VALUE
(16) HALLMARK HEALTH MEDICAL ASSOC INC	J	462,008	FAIR MARKET VALUE
(17) HALLMARK HEALTH PROPERTIES INC	K	203,663	FAIR MARKET VALUE
(18) HALLMARK HEALTH CORPORATION	K	1,267,694	FAIR MARKRT VALUE
(19) HALLMARK HEALTH MEDICAL ASSOC INC	L	862,236	ACTUAL COST
(20) HALLMARK HEALTH VISTING NURSE & HOSPICE INC	L	49,200	COST TIME ALLOCATION
(21) HALLMARK HEALTH CORPORATION	M	3,297,397	COST TIME ALLOCATION
(22) FRIENDS OF LAWRENCE MEM HOSPITAL	M	123,291	ACTUAL COST

Schedule R (Form 990) 2012

Page 4

Part VI

Unrelated Organizations Taxable as a Partnership (Complete if the organization answered "Yes" to 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) 2012

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: TO OPERATE HOSPITALS WITH 24 HR ER SERVICES ON (2) CAMPUSES ALONG WITH A HOSPITAL SCHOOL OF NURSING.HALLMARK HEALTH PROVIDES INPATIENT AND OUTPATIENT MEDICAL CARE AND ANCILLARY MEDICAL SERVICES AND TESTING.
2	Check this box
3	Number of voting members of the governing body (Part VI, line 1a) ........	3	14
4	Number of independent voting members of the governing body (Part VI, line 1b) .....	4	10
5	Total number of individuals employed in calendar year 2011 (Part V, line 2a) ......	5	2,894
6	Total number of volunteers (estimate if necessary) .............	6	200
7a	Total unrelated business revenue from Part VIII, column (C), line 12 ........	7a	1,441,283
b	Net unrelated business taxable income from Form 990-T, line 34 .........	7b

		Prior Year	Current Year
8	Contributions and grants (Part VIII, line 1h) .........	2,598,633	2,641,984
9	Program service revenue (Part VIII, line 2g) .........	285,528,877	257,348,825
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	6,184,161	9,649,260
11	Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)	1,121,252	1,310,586
12	Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)...................	295,432,923	270,950,655
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...		0
14	Benefits paid to or for members (Part IX, column (A), line 4).....		0
15	Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10)	159,263,925	156,517,799
16a	Professional fundraising fees (Part IX, column (A), line 11e).....		0
b	Total fundraising expenses (Part IX, column (D), line 25) 0
17	Other expenses (Part IX, column (A), lines 11a–11d, 11f–24e)....	112,418,762	100,590,253
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	271,682,687	257,108,052
19	Revenue less expenses. Subtract line 18 from line 12.......	23,750,236	13,842,603
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16).............	317,298,201	345,861,629
21	Total liabilities (Part X, line 26).............	167,462,249	175,866,903
22	Net assets or fund balances. Subtract line 21 from line 20.....	149,835,952	169,994,726

Sign Here

	Signature of officer	Date

	Type or print name and title


4a	(Code: ) (Expenses $ 203,995,183 including grants of $ ) (Revenue $ 257,348,825 )
	TO OPERATE HOSPITALS WITH 24 HR ER SERVICES ON (2)CAMPUSES ALONG WITH A HOSPITAL SCHOOL OF NURSING.HALLMARK HEALTH SYSTEM PROVIDES INPATIENT AND OUTPATIENT MEDICAL,SURGICAL AND PSYCHIATRIC CARE. ANCILLARY MEDICAL SERVICES AND TESTING ARE ALSO PROVIDED ON A INPATIENT AND OUTPATIENT BASIS IN AREAS SUCH AS LABORATORY, RADIOLOGY,EKG,EEG, PHARMACY, NUCLEAR MEDICINE,PHYSICAL THERAPY,OCCUPATIONAL THERAPY,RESPIRATORY THERAPY AND I.V. THERAPY.

4b	(Code: ) (Expenses $ including grants of $ ) (Revenue $ )












4c	(Code: ) (Expenses $ including grants of $ ) (Revenue $ )












4d	Other program services (Describe in Schedule O.)
	(Expenses $ including grants of $ ) (Revenue $ )
4e	Total program service expenses203,995,183

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)............	4,271,152	2,411,362	609,366

				(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		123,681
d	Related organizations...1d
e	Government grants (contributions)1e		1,347,863

f	All other contributions, gifts, grants, and similar amounts not included above1f		1,170,440

g	Noncash contributions included in lines 1a-1f:$
h	Total. Add lines 1a-1f.......			2,641,984
			Business Code
2a	MEDICAL SERVICES		622110	255,753,867	255,753,867
b	MEDICAL STAFF & SUPPORT SVS		541900	1,441,283		1,441,283
c	MONTVALE PET/CT K1		621512	153,675	153,675
d
e
f	All other program service revenue .
g	Total. Add lines 2a–2f........			257,348,825
3	Investment income (including dividends, interest, and other similar amounts).......			6,964,684			6,964,684
4	Income from investment of tax-exempt bond proceeds..
5	Royalties...........
		(i) Real	(ii) Personal
6a	Gross rents	1,315,244
b	Less: rental expenses
c	Rental income or (loss)	1,315,244
d	Net rental income or (loss).......			1,315,244			1,315,244
		(i) Securities	(ii) Other
7a	Gross amount from sales of assets other than inventory	71,970,506
b	Less: cost or other basis and sales expenses	69,285,930
c	Gain or (loss)	2,684,576
d	Net gain or (loss)..........			2,684,576			2,684,576
8a	Gross income from fundraising events (not including $ 123,681 of contributions reported on line 1c). See Part IV, line 18 ..
	a		96,137
b	Less: direct expenses ...b		100,795
c	Net income or (loss) from fundraising events..			-4,658			-4,658
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...
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..
Miscellaneous Revenue			Business Code
11a
b
c
d	All other revenue ....
e	Total. Add lines 11a–11d ......
12	Total revenue. See Instructions......			270,950,655	255,907,542	1,441,283	10,959,846


				(A) Beginning of year		(B) End of year
1	Cashnon-interest-bearing .............			10,746,162	1	4,948,957
2	Savings and temporary cash investments .........			1,470,948	2	1,473,082
3	Pledges and grants receivable, net ...........				3
4	Accounts receivable, net .............			28,090,850	4	30,902,137
5	Loans and other receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of Schedule L ..................
				5,855,486	5	6,722,844
6	Loans and other receivables from other disqualified persons (as defined under section 4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employers and sponsoring organizations of section 501(c)(9) voluntary employees' beneficiary organizations (see instructions) Complete Part II of Schedule L
					6
7	Notes and loans receivable, net .............				7
8	Inventories for sale or use ..............			2,680,853	8	2,740,690
9	Prepaid expenses and deferred charges ..........			10,083,079	9	11,510,966
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	349,948,220
b	Less: accumulated depreciation .....	10b	273,569,016	73,438,370	10c	76,379,204
11	Investments—publicly traded securities ..........			165,112,359	11	184,916,367
12	Investments—other securities. See Part IV, line 11 .....			10,015,929	12	10,418,970
13	Investments—program-related. See Part IV, line 11 .....				13
14	Intangible assets ...............				14
15	Other assets. See Part IV, line 11 ...........			9,804,165	15	15,848,412
16	Total assets. Add lines 1 through 15 (must equal line 34)......			317,298,201	16	345,861,629
17	Accounts payable and accrued expenses .........			36,296,569	17	37,466,912
18	Grants payable .................				18
19	Deferred revenue ................				19
20	Tax-exempt bond liabilities .............			78,865,251	20	97,492,516
21	Escrow or custodial account liability. Complete Part IV of Schedule D..				21
22	Loans and other payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........				22
23	Secured mortgages and notes payable to unrelated third parties ..			12,329,639	23	7,447,591
24	Unsecured notes and loans payable to unrelated third parties ....				24
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....................			39,970,790	25	33,459,884
26	Total liabilities. Add lines 17 through 25.........			167,462,249	26	175,866,903
	Organizations that follow SFAS 117 (ASC 958), check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets ..............			132,811,041	27	152,452,664
28	Temporarily restricted net assets ...........			2,379,337	28	2,443,017
29	Permanently restricted net assets ...........			14,645,574	29	15,099,045
	Organizations that do not follow SFAS 117 (ASC 958), 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 ...........			149,835,952	33	169,994,726
34	Total liabilities and net assets/fund balances ........			317,298,201	34	345,861,629