TY 2014 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) PAUL V STAHLIN........................................................................ CHAIRMAN - TRUSTEE	5.0 .......................0.0	X	X	0
(2) JO ANN MENDLES........................................................................ VICE CHAIR - TRUSTEE	5.0 .......................	X	X	0
(3) JAMES T RICK JR........................................................................ SECRETARY - TRUSTEE	3.0 .......................	X	X	0
(4) SANDY BABEY........................................................................ TRUSTEE	1.0 .......................	X		0
(5) KENNETH W BATEMAN........................................................................ TRUSTEE - PRES/CEO (1/1-5/31)	55.0 .......................	X	X	945,333
(6) CHARLES BROWN........................................................................ TRUSTEE	1.0 .......................	X		0
(7) JERRY DURSO........................................................................ TRUSTEE	1.0 .......................	X		0
(8) RAYMOND FINO........................................................................ TRUSTEE	1.0 .......................	X		0
(9) JAMES HESTON........................................................................ TRUSTEE	1.0 .......................	X		0
(10) STEVE KALAFER........................................................................ TRUSTEE	1.0 .......................	X		0
(11) THOMAS SCHAIBLE........................................................................ TRUSTEE	1.0 .......................	X		0
(12) WILLIAM M SUGARMANN MD........................................................................ TRUSTEE	1.0 .......................	X		0
(13) CORY VERGILIO MD........................................................................ TRUSTEE	1.0 .......................	X		0
(14) ROGER YANG MD........................................................................ TRUSTEE	1.0 .......................	X		0
(15) DAVID DYER........................................................................ CIO/VP INFO SYSTEMS (1/1-5/31)	55.0 .......................		X	176,067
(16) PAUL HUEGEL........................................................................ PRESIDENT - FOUNDATION	55.0 .......................		X	177,705
(17) GLENN MCCREESH........................................................................ SR VP OPERATIONS (1/1-5/31)	55.0 .......................		X	267,586

(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)
(18) MAUREEN SCHNEIDER........................................................................ SR VP-CHIEF NURS OFF(1/1-5/31)	55.0 .......................	X			205,240
(19) MARY ANN BROSS........................................................................ VP HUMAN RESOURCES (1/1-5/31)	55.0 .......................	X			149,653
(20) ROBERT SENSKA III........................................................................ VP REG AFFAIRS/CCO (1/1-5/31)	55.0 .......................	X			140,397
(21) STEPHEN MINOGUE........................................................................ VP SLEEP FOR LIFE (1/1-5/31)	55.0 .......................	X			118,444
(22) MARY BOLLWAGE........................................................................ VP RISK MANAGEMENT (1/1-5/31)	55.0 .......................	X			100,980
(23) VICTORIA ALLEN........................................................................ VP MARKETING	55.0 .......................	X			82,868
(24) SALVATORE MOFFA........................................................................ VPMA	55.0 .......................	X			138,646
(25) JOHN BUCEK MD........................................................................ DIRECTOR - FAMILY PRACTICE	55.0 .......................		X		132,823
(26) EVA B BESSERMAN MD........................................................................ MEDICAL DIRECTOR ICU	55.0 .......................		X		125,725
(27) AKHTAR HOSSAIN MD........................................................................ MEDICAL DIRECTOR ADULT PSYCH	55.0 .......................		X		120,013
(28) ABHISHEK DWIVEDI MD........................................................................ CHIEF PHYSICIST	55.0 .......................		X		103,789
(29) PATRICK ROWAN MD........................................................................ PSYCHIATRIST	55.0 .......................		X		101,364
(30) CARL OBRIEN........................................................................ FORMER OFFICER	0.0 .......................			X	613,454

(A) Name and business address	(B) Description of services	(C) Compensation
CAIN BROTHERS COMPANY LLC, 360 MADISON AVENUE 5TH FLOOR NEW YORK,NY10017	CONSULTING	2,912,077
INTEGRATIVE OBGYN LLC, 775 MOUNTAIN BLVD SUITE 107 WATCHUNG,NJ07069	MEDICAL	465,485
ALLEGIANCE BILLING CONSULTING, 333 JERICHO TURNPIKE SUITE 102 JERICHO,NY11753	BILLING/CONSULTING	437,459
GENOVA BURNS GIANTOMASI WEBSTER, 494 BROAD STREET NEWARK,NJ07102	LEGAL	417,025
HCSC LAUNDRY, PO BOX 25092 LEHIGH VALLEY,PA180025092	LAUNDRY	353,873
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 25

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 domestic organizations and domestic governments. See Part IV, line 21 ....	59,708	59,708
2	Grants and other assistance to domestic individuals. See Part IV, line 22 ....	0
3	Grants and other assistance to foreign organizations, foreign governments, and foreign individuals. See Part IV, lines 15 and 16 ............	0
4	Benefits paid to or for members ....	0
5	Compensation of current officers, directors, trustees, and key employees ....	2,502,919	1,964,791	538,128
6	Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....	0
7	Other salaries and wages ....	49,502,463	38,859,434	10,643,029
8	Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) ....	1,447,213	1,136,062	311,151
9	Other employee benefits .......	6,307,448	4,951,347	1,356,101
10	Payroll taxes ...........	3,516,121	2,760,155	755,966
11	Fees for services (non-employees):
a	Management ......	178,980	140,499	38,481
b	Legal .........	367,644	288,601	79,043
c	Accounting ...........	215,000	168,775	46,225
d	Lobbying ...........	11,561	10,405	1,156
e	Professional fundraising services. See Part IV, line 17	0
f	Investment management fees ......	6,017	4,723	1,294
g	Other (If line 11g amount exceeds 10% of line 25, column (A) amount, list line 11g expenses on Schedule O) ....	9,493,913	7,451,392	2,042,521
12	Advertising and promotion ....	722,201	566,928	155,273
13	Office expenses .......	3,989,051	3,131,405	857,646
14	Information technology ......	319,382	250,715	68,667
15	Royalties ..	0
16	Occupancy ...........	3,585,612	2,814,705	770,907
17	Travel ............	32,102	25,200	6,902
18	Payments of travel or entertainment expenses for any federal, state, or local public officials ......	0
19	Conferences, conventions, and meetings ....	86,031	67,534	18,497
20	Interest ...........	1,908,454	1,498,136	410,318
21	Payments to affiliates .......	0
22	Depreciation, depletion, and amortization .....	6,122,672	4,806,298	1,316,374
23	Insurance ..............	5,638,559	4,426,269	1,212,290
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	MEDICAL SUPPLIES	14,726,818	11,560,552	3,166,266	0
b	REPAIRS AND MAINTENANCE	5,064,102	3,975,320	1,088,782
c	PHYSICIAN PRACTICES	2,750,110	2,158,836	591,274
d	DUES, SUBSCRIPTIONS&LICENSES	524,105	411,422	112,683
e	All other expenses	3,463,344	2,718,725	744,619
25	Total functional expenses. Add lines 1 through 24e	122,541,530	96,207,937	26,333,593	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 or note to any line in this Part X ..............
	1	Cash–non-interest-bearing .............	5,270	1	0
2	Savings and temporary cash investments .........	9,453,010	2	0
3	Pledges and grants receivable, net ...........	0	3	0
4	Accounts receivable, net .............	26,497,392	4	0
5	Loans and other receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of Schedule L ..................
		0	5	0
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
		0	6	0
7	Notes and loans receivable, net .............	0	7	0
8	Inventories for sale or use ..............	4,382,194	8	0
9	Prepaid expenses and deferred charges ..........	2,262,119	9	0
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	0
b	Less: accumulated depreciation .....	10b	0	125,265,022	10c	0
11	Investments—publicly traded securities ..........	0	11	0
12	Investments—other securities. See Part IV, line 11 .....	0	12	0
13	Investments—program-related. See Part IV, line 11 .....	45,639,625	13	0
14	Intangible assets ...............	2,974,753	14	0
15	Other assets. See Part IV, line 11 ...........	5,108,148	15	0
16	Total assets. Add lines 1 through 15 (must equal line 34)......	221,587,533	16	0
	17	Accounts payable and accrued expenses .........	33,816,405	17	0
18	Grants payable .................	0	18	0
19	Deferred revenue ................	4,527,457	19	0
20	Tax-exempt bond liabilities .............	99,921,284	20	0
21	Escrow or custodial account liability. Complete Part IV of Schedule D..	0	21	0
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..........	0	22	0
23	Secured mortgages and notes payable to unrelated third parties ..	319,524	23	0
24	Unsecured notes and loans payable to unrelated third parties ....	0	24	0
25	Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D....................	27,323,432	25	0
26	Total liabilities. Add lines 17 through 25.........	165,908,102	26	0
		Organizations that follow SFAS 117 (ASC 958), check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets ..............	52,545,764	27	0
28	Temporarily restricted net assets ...........	1,993,800	28	0
29	Permanently restricted net assets ...........	1,139,867	29	0
	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 ...........	55,679,431	33	0
34	Total liabilities and net assets/fund balances ........	221,587,533	34	0

- 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.
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Attach to Form 990 or Form 990-EZ.
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Information about Schedule A (Form 990 or 990-EZ) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2014

Open to Public
Inspection

Name of the organization

SOMERSET MEDICAL CENTER

Employer identification number

22-1487350

Part I

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

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

A church, convention of churches, or association of churches 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 in lines 11a through 11d that describes the type of supporting organization and complete lines 11e, 11f, and 11g.

Type I. A supporting organization operated, supervised, or controlled by its supported organization(s), typically by giving the supported organization(s) the power to regularly appoint or elect a majority of the directors or trustees of the supporting organization. You must complete Part IV, Sections A and B.

Type II. A supporting organization supervised or controlled in connection with its supported organization(s), by having control or management of the supporting organization vested in the same persons that control or manage the supported organization(s). You must complete Part IV, Sections A and C.

Type III functionally integrated. A supporting organization operated in connection with, and functionally integrated with, its supported organization(s) (see instructions). You must complete Part IV, Sections A, D, and E.

Type III non-functionally integrated. A supporting organization operated in connection with its supported organization(s) that is not functionally integrated. The organization generally must satisfy a distribution requirement and an attentiveness requirement (see instructions). You must complete Part IV, Sections A and D, and Part V.

Check this box if the organization received a written determination from the IRS that it is a Type I, Type II, Type III functionally integrated, or Type III non-functionally integrated supporting organization.

Enter the number of supported organizations .............................

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

(i)Name of supported organization	(ii) EIN	(iv) Is the organization listed in your governing document?		(v) Amount of monetary support (see instructions)	(vi) Amount of other support (see instructions)
(i)Name of supported organization	(ii) EIN	Yes	No	(v) Amount of monetary support (see instructions)	(vi) Amount of other support (see instructions)


Total

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

Cat. No. 11285F

Schedule A (Form 990 or 990-EZ) 2014

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) 2010	(b) 2011	(c) 2012	(d) 2013	(e) 2014	(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) 2010	(b) 2011	(c) 2012	(d) 2013	(e) 2014	(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 VI.)..
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 section 501(c)(3) organization, check this box and stop here........................................ right arrow

Section C. Computation of Public Support Percentage

Public support percentage for 2014 (line 6, column (f) divided by line 11, column (f)) .........

Public support percentage for 2013 Schedule A, Part II, line 14 ...............

16a

33 1/3% support test—2014. 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—2013. 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—2014. 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 VI how the organization meets the "facts-and-circumstances" test. The organization qualifies as a publicly supported
organization ..................................................... right arrow

10%-facts-and-circumstances test—2013. 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 VI 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) 2014

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) 2010	(b) 2011	(c) 2012	(d) 2013	(e) 2014	(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) 2010	(b) 2011	(c) 2012	(d) 2013	(e) 2014	(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 VI.) ..
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 section 501(c)(3) organization,
check this box and stop here............................................. right arrow

Section C. Computation of Public Support Percentage

Public support percentage for 2014 (line 8, column (f) divided by line 13, column (f)) .........

Public support percentage from 2013 Schedule A, Part III, line 15 ...............

Section D. Computation of Investment Income Percentage

Investment income percentage for 2014 (line 10c, column (f) divided by line 13, column (f)) ......

Investment income percentage from 2013 Schedule A, Part III, line 17 .............

19a

33 1/3% support tests—2014. 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—2013. 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) 2014

Page 4

Part IV

Supporting Organizations

(Complete only if you checked a box on line 11 of Part I. If you checked 11a of Part I, complete Sections A and B. If you checked 11b of Part I, complete Sections A and C. If you checked 11c of Part I, complete Sections A, D, and E. If you checked 11d of Part I, complete Sections A and D, and complete Part V.)

Section A. All Supporting Organizations

Yes

Are all of the organization’s supported organizations listed by name in the organization’s governing documents?
If "No," describe in Part VI how the supported organizations are designated. If designated by class or purpose,
describe the designation. If historic and continuing relationship, explain.

Did the organization have any supported organization that does not have an IRS determination of status under section 509(a)(1) or (2)? If "Yes," explain in Part VI how the organization determined that the supported organization was described in section 509(a)(1) or (2).

Did the organization have a supported organization described in section 501(c)(4), (5), or (6)? If "Yes," answer (b) and (c) below.

Did the organization confirm that each supported organization qualified under section 501(c)(4), (5), or (6) and satisfied the public support tests under section 509(a)(2)? If "Yes," describe in Part VI when and how the organization made the determination.

Did the organization ensure that all support to such organizations was used exclusively for section 170(c)(2)(B) purposes? If "Yes," explain in Part VI what controls the organization put in place to ensure such use.

Was any supported organization not organized in the United States ("foreign supported organization")? If “Yes” and if you checked 11a or 11b in Part I, answer (b) and (c) below.

Did the organization have ultimate control and discretion in deciding whether to make grants to the foreign supported organization? If “Yes,” describe in Part VI how the organization had such control and discretion despite being controlled or supervised by or in connection with its supported organizations....

Did the organization support any foreign supported organization that does not have an IRS determination under sections 501(c)(3) and 509(a)(1) or (2)? If “Yes,” explain in Part VI what controls the organization used to ensure that all support to the foreign supported organization was used exclusively for section 170(c)(2)(B) purposes.

Did the organization add, substitute, or remove any supported organizations during the tax year? If “Yes,” answer (b) and (c) below (if applicable). Also, provide detail in Part VI, including (i) the names and EIN numbers of the supported organizations added, substituted, or removed, (ii) the reasons for each such action, (iii) the authority under the organization's organizing document authorizing such action, and (iv) how the action was accomplished (such as by amendment to the organizing document).

Type I or Type II only. Was any added or substituted supported organization part of a class already designated in the organization's organizing document?

Substitutions only. Was the substitution the result of an event beyond the organization's control?

Did the organization provide support (whether in the form of grants or the provision of services or facilities) to anyone other than (a) its supported organizations; (b) individuals that are part of the charitable class benefited by one or more of its supported organizations; or (c) other supporting organizations that also support or benefit one or more of the filing organization’s supported organizations? If “Yes,” provide detail in Part VI.

Did the organization provide a grant, loan, compensation, or other similar payment to a substantial contributor (defined in IRC 4958(c)(3)(C)), a family member of a substantial contributor, or a 35-percent controlled entity with regard to a substantial contributor? If “Yes,” complete Part I of Schedule L (Form 990) .

Did the organization make a loan to a disqualified person (as defined in section 4958) not described in line 7? If “Yes,” complete Part II of Schedule L (Form 990).

Was the organization controlled directly or indirectly at any time during the tax year by one or more disqualified persons as defined in section 4946 (other than foundation managers and organizations described in section 509(a)(1) or (2))? If “Yes,” provide detail in Part VI.

Did one or more disqualified persons (as defined in line 9(a)) hold a controlling interest in any entity in which the supporting organization had an interest? If “Yes,” provide detail in Part VI.

Did a disqualified person (as defined in line 9(a)) have an ownership interest in, or derive any personal benefit from, assets in which the supporting organization also had an interest? If “Yes,” provide detail in Part VI.

10a

Was the organization subject to the excess business holdings rules of IRC 4943 because of IRC 4943(f) (regarding certain Type II supporting organizations, and all Type III non-functionally integrated supporting organizations)? If “Yes,” answer b below.

10a

Did the organization have any excess business holdings in the tax year? (Use Schedule C, Form 4720, to determine whether the organization had excess business holdings).

10b

Has the organization accepted a gift or contribution from any of the following persons?

A person who directly or indirectly controls, either alone or together with persons described in (b) and (c) below, the governing body of a supported organization?

11a

A family member of a person described in (a) above?

11b

A 35% controlled entity of a person described in (a) or (b) above? If “Yes” to a, b, or c, provide detail in Part VI.

11c

Schedule A (Form 990 or 990-EZ) 2014

Page 5

Part IV

Supporting Organizations (continued)

Section B. Type I Supporting Organizations

Yes

Did the directors, trustees, or membership of one or more supported organizations have the power to regularly appoint or elect at least a majority of the organization’s directors or trustees at all times during the tax year? If “No,” describe in Part VI how the supported organization(s) effectively operated, supervised, or controlled the organization’s activities. If the organization had more than one supported organization, describe how the powers to appoint and/or remove directors or trustees were allocated among the supported organizations and what conditions or restrictions, if any, applied to such powers during the tax year.

Did the organization operate for the benefit of any supported organization other than the supported organization(s) that operated, supervised, or controlled the supporting organization? If “Yes,” explain in Part VI how providing such benefit carried out the purposes of the supported organization(s) that operated, supervised or controlled the supporting organization.

Section C. Type II Supporting Organizations

Yes

Were a majority of the organization’s directors or trustees during the tax year also a majority of the directors or trustees of each of the organization’s supported organization(s)? If “No,” describe in Part VI how control or management of the supporting organization was vested in the same persons that controlled or managed the supported organization(s).

Section D. All Type III Supporting Organizations

Yes

Did the organization provide to each of its supported organizations, by the last day of the fifth month of the organization’s tax year, (1) a written notice describing the type and amount of support provided during the prior tax year, (2) a copy of the Form 990 that was most recently filed as of the date of notification, and (3) copies of the organization’s governing documents in effect on the date of notification, to the extent not previously provided?

Were any of the organization’s officers, directors, or trustees either (i) appointed or elected by the supported organization(s) or (ii) serving on the governing body of a supported organization? If "No," explain in Part VI how the organization maintained a close and continuous working relationship with the supported organization(s).

By reason of the relationship described in (2), did the organization’s supported organizations have a significant voice in the organization’s investment policies and in directing the use of the organization’s income or assets at all times during the tax year? If "Yes," describe in Part VI the role the organization’s supported organizations played in this regard.

Section E. Type III Functionally-Integrated Supporting Organizations

Check the box next to the method that the organization used to satisfy the Integral Part Test during the year (see instructions):

The organization satisfied the Activities Test. Complete line 2 below.

The organization is the parent of each of its supported organizations. Complete line 3 below.

The organization supported a governmental entity. Describe in Part VI how you supported a government entity (see instructions)

Activities Test. Answer (a) and (b) below.

Yes

Did substantially all of the organization’s activities during the tax year directly further the exempt purposes of the supported organization(s) to which the organization was responsive? If "Yes," then in Part VI identify those supported organizations and explain how these activities directly furthered their exempt purposes, how the organization was responsive to those supported organizations, and how the organization determined that these activities constituted substantially all of its activities.

Did the activities described in (a) constitute activities that, but for the organization’s involvement, one or more of the organization’s supported organization(s) would have been engaged in? If "Yes," explain in Part VI the reasons for the organization’s position that its supported organization(s) would have engaged in these activities but for the organization’s involvement.

Parent of Supported Organizations. Answer (a) and (b) below.

Did the organization have the power to regularly appoint or elect a majority of the officers, directors, or trustees of each of the supported organizations? Provide details in Part VI.

Did the organization exercise a substantial degree of direction over the policies, programs and activities of each of its supported organizations? If "Yes," describe in Part VI the role played by the organization in this regard.

Schedule A (Form 990 or 990-EZ) 2014

Page 6

Part V – Type III Non-Functionally Integrated 509(a)(3) Supporting Organizations

1. Check here if the organization satisfied the Integral Part Test as a qualifying trust on Nov. 20, 1970. See instructions. All other Type III non-functionally integrated supporting organizations must complete Sections A through E.

	Section A - Adjusted Net Income		(A) Prior Year	(B) Current Year (optional)
1	Net short-term capital gain	1
2	Recoveries of prior-year distributions	2
3	Other gross income (see instructions)	3
4	Add lines 1 through 3	4
5	Depreciation and depletion	5
6	Portion of operating expenses paid or incurred for production or collection of gross income or for management, conservation, or maintenance of property held for production of income (see instructions)	6
7	Other expenses (see instructions)	7
8	Adjusted Net Income (subtract lines 5, 6 and 7 from line 4)	8

	Section B - Minimum Asset Amount		(A) Prior Year	(B) Current Year (optional)
1	Aggregate fair market value of all non-exempt-use assets (see instructions for short tax year or assets held for part of year):	1
a	Average monthly value of securities	1a
b	Average monthly cash balances	1b
c	Fair market value of other non-exempt-use assets	1c
d	Total (add lines 1a, 1b, and 1c)	1d
e	Discount claimed for blockage or other factors (explain in detail in Part VI):
2	Acquisition indebtedness applicable to non-exempt use assets	2
3	Subtract line 2 from line 1d	3
4	Cash deemed held for exempt use. Enter 1-1/2% of line 3 (for greater amount, see instructions).	4
5	Net value of non-exempt-use assets (subtract line 4 from line 3)	5
6	Multiply line 5 by .035	6
7	Recoveries of prior-year distributions	7
8	Minimum Asset Amount (add line 7 to line 6)	8

	Section C - Distributable Amount		Current Year
1	Adjusted net income for prior year (from Section A, line 8, Column A)	1
2	Enter 85% of line 1	2
3	Minimum asset amount for prior year (from Section B, line 8, Column A)	3
4	Enter greater of line 2 or line 3	4
5	Income tax imposed in prior year	5
6	Distributable Amount. Subtract line 5 from line 4, unless subject to emergency temporary reduction (see instructions)	6
7	Check here if the current year is the organization's first as a non-functionally-integrated Type III supporting organization (see instructions)

Schedule A (Form 990 or 990-EZ) 2014

Page 7

Section D - Distributions		Current Year
1 Amounts paid to supported organizations to accomplish exempt purposes
2 Amounts paid to perform activity that directly furthers exempt purposes of supported organizations, in excess of income from activity
3 Administrative expenses paid to accomplish exempt purposes of supported organizations
4 Amounts paid to acquire exempt-use assets
5 Qualified set-aside amounts (prior IRS approval required)
6 Other distributions (describe in Part VI). See instructions
7Total annual distributions. Add lines 1 through 6.
8 Distributions to attentive supported organizations to which the organization is responsive (provide details in Part VI). See instructions
9 Distributable amount for 2014 from Section C, line 6
10 Line 8 amount divided by Line 9 amount

Section E - Distribution Allocations (see instructions)		(i) Excess Distributions	(ii) Underdistributions Pre-2014	(iii) Distributable Amount for 2014
1 Distributable amount for 2014 from Section C, line 6
2 Underdistributions, if any, for years prior to 2014 (reasonable cause required--see instructions)
3 Excess distributions carryover, if any, to 2014:
a From 2009.......X
b From 2010.......X
c From 2011.......X
d From 2012.......X
e From 2013.......
fTotal of lines 3a through e
g Applied to underdistributions of prior years
h Applied to 2014 distributable amount
i Carryover from 2009 not applied (see instructions)
j Remainder. Subtract lines 3g, 3h, and 3i from 3f.
4Distributions for 2014 from Section D, line 7:
$
a Applied to underdistributions of prior years
b Applied to 2014 distributable amount
c Remainder. Subtract lines 4a and 4b from 4.
5 Remaining underdistributions for years prior to 2014, if any. Subtract lines 3g and 4a from line 2 (if amount greater than zero, see instructions)
6 Remaining underdistributions for 2014. Subtract lines 3h and 4b from line 1 (if amount greater than zero, see instructions)
7 Excess distributions carryover to 2015. Add lines 3j and 4c.
8 Breakdown of line 7:
a From 2010.......X
b From 2011.......X
c From 2012.......X
d From 2013.......
e From 2014.......

Schedule A (Form 990 or 990-EZ) (2014)

Schedule A (Form 990 or 990-EZ) 2014

Page 8

Part VI

Supplemental Information. Provide the explanations required by Part II, line 10; Part II, line 17a or 17b; Part III, line 12; Part IV, Section A, lines 1, 2, 3b, 3c, 4b, 4c, 5a, 6, 9a, 9b, 9c, 11a, 11b, and 11c; Part IV, Section B, lines 1 and 2; Part IV, Section C, line 1; Part IV, Section D, lines 2 and 3; Part IV, Section E, lines 1c, 2a, 2b, 3a and 3b; Part V, line 1; Part V, Section B, line 1e; Part V Section D, lines 5, 6, and 8; and Part V, Section E, lines 2, 5, and 6. Also complete this part for any additional information. (See instructions).

Facts And Circumstances Test

Return Reference	Explanation

Schedule A (Form 990 or 990-EZ) 2014

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.

Information about Schedule B (Form 990, 990-EZ, or 990-PF) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2014

Name of the organization

SOMERSET MEDICAL CENTER

Employer identification number

22-1487350

Organization type (check one):

Filers of:

Section:

Form 990 or 990-EZ

501(c)( ) (enter number) organization

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

527 political organization

Form 990-PF

501(c)(3) exempt private foundation

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

501(c)(3) taxable private foundation

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

General Rule

For an organization filing Form 990, 990-EZ, or 990-PF that received, during the year, contributions totaling $5,000 or more (in money or
property) from any one contributor. Complete Parts I and II. See instructions for determining a contributor's total contributions.

Special Rules

For an organization described in section 501(c)(3) 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), that checked Schedule A (Form 990 or 990-EZ), Part II, line 13, 16a, or 16b, and that received from any one contributor, during the year, total contributions 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 an organization described in section 501(c)(7), (8), or (10) filing Form 990 or 990-EZ that received from any one contributor,
during the year, total contributions of more than $1,000 exclusively for religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals. Complete Parts I, II, and III.

For an organization described in section 501(c)(7), (8), or (10) filing Form 990 or 990-EZ that received from any one contributor,
during the year, contributions exclusively for religious, charitable, etc., purposes, but no such contributions totaled 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 totaling $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 its Form 990PF, Part I, line 2, 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) (2014)

Schedule B (Form 990, 990-EZ, or 990-PF) (2014)

Page 2

Name of organization SOMERSET MEDICAL CENTER

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	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
Schedule B (Form 990, 990-EZ, or 990-PF) (2014)

Schedule B (Form 990, 990-EZ, or 990-PF) (2014)

Page 3

Name of organization SOMERSET MEDICAL CENTER

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) (2014)

Schedule B (Form 990, 990-EZ, or 990-PF) (2014)

Page 4

Name of organization
SOMERSET MEDICAL CENTER

Employer identification number

22-1487350

Part III

Exclusively religious, charitable, etc., contributions to organizations described in section 501(c)(7), (8), or (10)
that total more than $1,000 for the year from any one contributor. 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) (2014)

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE C
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Political Campaign and Lobbying Activities

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

Complete if the organization is described below. SchCMd Bullet

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

Information about Schedule C (Form 990 or 990-EZ) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2014

Open to Public
Inspection

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

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

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

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

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

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

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

Name of the organization

SOMERSET MEDICAL CENTER

Employer identification number

22-1487350

Part I-A

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

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

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

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

Part I-B

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

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

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

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

Yes No

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

Yes No

If "Yes," describe in Part IV.

Part I-C

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

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

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

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

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

Yes No

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

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

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

Cat. No. 50084S

Schedule C (Form 990 or 990-EZ) 2014

Page 2

Part II-A

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

A Check SchCMd Bullet

if the filing organization belongs to an affiliated group (and list in Part IV each affiliated group member's name, address, EIN, expenses, and share of excess lobbying expenditures).
B Check SchCMd Bullet

if the filing organization checked box A and "limited control" provisions apply.

Limits on Lobbying Expenditures (The term "expenditures" means amounts paid or incurred.)		(a) Filing organization's totals	(b) Affiliated group totals
1a	Total lobbying expenditures to influence public opinion (grass roots lobbying) ......	11,561	11,561
b	Total lobbying expenditures to influence a legislative body (direct lobbying) .......	122,529,969	122,529,969
c	Total lobbying expenditures (add lines 1a and 1b) ...................	122,541,530	122,541,530
d	Other exempt purpose expenditures ........................	122,541,530	122,541,530
e	Total exempt purpose expenditures (add lines 1c and 1d) ...............	245,083,060	245,083,060
f	Lobbying nontaxable amount. Enter the amount from the following table in both columns.	1,000,000	1,000,000
	If the amount on line 1e, column (a) or (b) is:The lobbying nontaxable amount is:
	Not over $500,00020% of the amount on line 1e.
	Over $500,000 but not over $1,000,000$100,000 plus 15% of the excess over $500,000.
	Over $1,000,000 but not over $1,500,000$175,000 plus 10% of the excess over $1,000,000.
	Over $1,500,000 but not over $17,000,000$225,000 plus 5% of the excess over $1,500,000.
	Over $17,000,000$1,000,000.

g	Grassroots nontaxable amount (enter 25% of line 1f) .................	250,000	250,000
h	Subtract line 1g from line 1a. If zero or less, enter -0-. ................
i	Subtract line 1f from line 1c. If zero or less, enter -0-. ................	121,541,530	121,541,530
j	If there is an amount other than zero on either line 1h or line 1i, did the organization file Form 4720 reporting section 4911 tax for this year? ......................................		Yes No

4-Year Averaging Period Under section 501(h) (Some organizations that made a section 501(h) election do not have to complete all of the five columns below. See the separate instructions for lines 2a through 2f.)
Lobbying Expenditures During 4-Year Averaging Period
	Calendar year (or fiscal year beginning in)	(a) 2011	(b) 2012	(c) 2013	(d) 2014	(e) Total

2a	Lobbying nontaxable amount	1,000,000	1,000,000	1,000,000	1,000,000	4,000,000

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

c	Total lobbying expenditures	25,105	23,662	22,077	11,561	82,405

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

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

f	Grassroots lobbying expenditures	0	0	0	0	0

Schedule C (Form 990 or 990-EZ) 2014

Page 3

Part II-B

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

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

(a)

Yes

(b)

Amount

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Part III-A

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

Yes

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

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

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

Part III-B

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

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

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

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

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

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

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

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

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

Part IV

Supplemental Information

Provide the descriptions required for Part l-A, line 1; Part l-B, line 4; Part l-C, line 5; Part II-A (affiliated group list); Part II-A, lines 1 and 2 (see instructions), and Part ll-B, line 1. Also, complete this part for any additional information.

Return Reference	Explanation

Schedule C (Form 990 or 990EZ) 2014

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.
Information about Schedule D (Form 990) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2014

Open to Public Inspection

Name of the organization

SOMERSET MEDICAL CENTER

Employer identification number

22-1487350

Part I

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

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

Revenue 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:

Revenue 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) 2014

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, for escrow or custodial account liability?

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.

		(b)Prior year	b (c)Two years back	(d)Three years back	(e)Four years back
1a	Beginning of year balance ....	3,057,824	4,778,675	3,679,067	4,087,814
b	Contributions ........		1,784,136	969,553	1,798,795
c	Net investment earnings, gains, and losses	75,843	-270,842	787,270	-920,605
d	Grants or scholarships .....
e	Other expenditures for facilities and programs ........		3,234,145	657,215	1,286,937
f	Administrative expenses ....
g	End of year balance ......	3,133,667	3,057,824	4,778,675	3,679,067

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

Temporarily restricted endowment SchDMd Bullet

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. Complete if the organization answered 'Yes' to Form 990, Part IV, line 11a. See Form 990, Part X, line 10.

Description of property		(a) Cost or other basis (investment)	(b)Cost or other basis (other)	(c) Accumulated depreciation	(d) Book value
1a	Land .................
b	Buildings ................
c	Leasehold improvements ............
d	Equipment ................
e	Other .................
Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10(c).).......

Schedule D (Form 990) 2014

Page 3

Part VII

InvestmentsOther Securities. Complete if the organization answered 'Yes' to Form 990, Part IV, line 11b. See Form 990, Part X, line 12.

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








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

Part VIII

InvestmentsProgram Related. Complete if the organization answered 'Yes' to Form 990, Part IV, line 11c. See Form 990, Part X, line 13.

(a) Description of investment		(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. Complete if the organization answered 'Yes' to Form 990, Part IV, line 11d. See Form 990, Part X, line 15.

(a) Description				(b) Book value









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

Part X

Other Liabilities. Complete if the organization answered 'Yes' to Form 990, Part IV, line 11e or 11f. See Form 990, Part X, line 25.

1.(a) Description of liability		(b) Book value
Federal income taxes		0
OTHER LIABILITIES		0
SETTLEMENTS; CURRENT		0
SETTLEMENTS; NON-CURRENT		0
ACCURED INTEREST PAYABLE		0
ACCRUED PENSION LIABILITY		0




Total. (Column (b) must equal Form 990, Part X, col.(B) line 25.)		0
2. Liability for uncertain tax positions. 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) 2014

Page 4

Part XI Reconciliation of Revenue per Audited Financial Statements With Revenue per Return Complete if the organization answered 'Yes' to Form 990, Part IV, line 12a.
1	Total revenue, gains, and other support per audited financial statements .......		1	107,265,511
2	Amounts included on line 1 but not on Form 990, Part VIII, line 12:
a	Net unrealized gains (losses) 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	107,265,511
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	107,265,511

Part XII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return. Complete if the organization answered 'Yes' to Form 990, Part IV, line 12a.
1	Total expenses and losses per audited financial statements ...........		1	122,541,530
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	122,541,530
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	122,541,530

Part XIII

Supplemental Information

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.

Return Reference

Explanation

SCHEDULE D, PART V, QUESTION 4

RESTRICTED FUNDS ARE USED TO SUPPORT THE CHARITABLE ACTIVITIES AND PROGRAMS OF THE ORGANIZATION AND ITS AFFILIATES.

SCHEDULE D, PART X

AN INDEPENDENT CPA FIRM AUDITED THE FINANCIAL STATEMENTS OF SOMERSET MEDICAL CENTER FOR THE SHORT PERIOD ENDED MAY 31, 2014 AND THE YEAR ENDED DECEMBER 31, 2013; RESPECTIVELY. THE FOLLOWING FOOTNOTE IS INCLUDED IN THE ORGANIZATION'S 2014 AUDITED FINANCIAL STATEMENTS THAT REPORTS THE ORGANIZATION'S LIABILITY FOR UNCERTAIN TAX POSITIONS UNDER FIN 48 (ASC 740): The Medical Center accounts for uncertainty in income taxes using a recognition threshold of more-likely-than-not to be sustained upon examination by the appropriate taxing authority. Measure of the tax uncertainty occurs if the recognition threshold is met. Management determined there were no tax uncertainties that met the recognition threshold in 2014 and 2013.

Schedule D (Form 990) 2014

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE H (Form 990)

Department of the TreasuryInternal Revenue Service

Hospitals

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

Attach to Form 990.
MediumBullet

Information about Schedule H (Form 990) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2014

Open to Public Inspection

Name of the organization

SOMERSET MEDICAL CENTER

Employer identification number

22-1487350

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 criteria used 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? ............................

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		(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) ..	4,766,113	1,295,835	3,470,278	2.830 %
b	Medicaid (from Worksheet 3, column a) ....	11,246,221	5,701,428	5,544,793	4.520 %
c	Costs of other means-tested government programs (from Worksheet 3, column b) .
d	Total Financial Assistance and Means-Tested Government Programs .	16,012,334	6,997,263	9,015,071	7.350 %
Other Benefits		250,622	14,361	236,260	0.190 %
e	Community health improvement services and community benefit operations (from Worksheet 4) ..	250,622	14,361	236,260	0.190 %
f	Health professions education (from Worksheet 5) ..	1,286,782	468,043	818,739	0.670 %
g	Subsidized health services (from Worksheet 6) ..	715,250	147,181	568,069	0.460 %
h	Research (from Worksheet 7)	66,131	9,950	56,181	0.050 %
i	Cash and in-kind contributions for community benefit (from Worksheet 8)	3,692	0	3,692
j	Total. Other Benefits ..	2,322,477	639,535	1,682,941	1.370 %
k	Total. Add lines 7d and 7j .	18,334,811	7,636,798	10,698,012	8.720 %

For Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat. No. 50192T Schedule H (Form 990) 2014

Schedule H (Form 990) 2014

Page

Part II

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

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

Part III

Bad Debt, Medicare, & Collection Practices

Section A. Bad Debt Expense

Yes

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

Yes

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

3,352,323

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. ......

603,418

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).....

32,846,493

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

42,940,286

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

-10,093,793

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) 2014

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?1 Name, address, primary website address, and state license number (and if a group return, the name and EIN of the subordinate hospital organization that operates the hospital facility)						Facility reporting group
1	SOMERSET MEDICAL CENTER 110 REHILL AVENUE SOMERVILLE,NJ08876 WWW.RWJUH.EDU 11802	X	X	X	X	01

Schedule H (Form 990) 2014

Page

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)

	SOMERSET MEDICAL CENTER
Name of hospital facility or letter of facility reporting group

Line number of hospital facility, or line numbers of hospital facilities in a facility
reporting group (from Part V, Section A):

Yes

Community Health Needs Assessment

Was the hospital facility first licensed, registered, or similarly recognized by a State as a hospital facility in the current tax year or the immediately preceding tax year?.......................

Was the hospital facility acquired or placed into service as a tax-exempt hospital in the current tax year or the immediately preceding tax year? If “Yes,” provide details of the acquisition in Section C..........

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 12....................

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 significant 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 Section C)

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 persons who represent the broad interests of the community served by the hospital facility, including those with special knowledge of or expertise in public health? If "Yes," describe in Section C 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 Section C................................

Yes

Was the hospital facility’s CHNA conducted with one or more organizations other than hospital facilities?” If “Yes,” list the other organizations in Section C. ............................

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 (list url): WWW.RWJUH.EDU

Other website (list url): WWW.HEALTHIERSOMERSET.ORG

Made a paper copy available for public inspection without charge at the hospital facility

Other (describe in Section C)

Did the hospital facility adopt an implementation strategy to meet the significant community health needs
identified through its most recently conducted CHNA? If "No," skip to line 11. .............

Yes

Indicate the tax year the hospital facility last adopted an implementation strategy: 20 13

Is the hospital facility's most recently adopted implementation strategy posted on a website? ........

Yes

If "Yes" (list url): WWW.HEALTHIERSOMERSET.ORG

If "No," is the hospital facility’s most recently adopted implementation strategy attached to this return? ......

10b

Yes

Describe in Section C how the hospital facility is addressing the significant needs identified in its most recently conducted CHNA and any such needs that are not being addressed together with the reasons why such needs are not being addressed.

12a

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)? ...........................

12a

If "Yes" to line 12a, did the organization file Form 4720 to report the section 4959 excise tax? ......

12b

If "Yes" to line 12b, 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) 2014

Page

Part VFacility Information (continued)

	SOMERSET MEDICAL CENTER
Name of hospital facility or letter of facility reporting group

Yes

Financial Assistance Policy (FAP)

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 included free or discounted care?

Yes

If “Yes,” indicate the eligibility criteria explained in the FAP:

Federal poverty guidelines (FPG), with FPG family income limit for eligibility for free care of 100%
and FPG family income limit for eligibility for discounted care of 300.%

Income level other than FPG (describe in Section C)

Asset level

Medical indigency

Insurance status

Underinsurance discount

Residency

Other (describe in Section C)

Explained the basis for calculating amounts charged to patients?.................

Yes

Explained the method for applying for financial assistance?...................

Yes

If “Yes,” indicate how the hospital facility’s FAP or FAP application form (including accompanying instructions) explained the method for applying for financial assistance (check all that apply):

Described the information the hospital facility may require an individual to provide as part of his or her application.

Described the supporting documentation the hospital facility may require an individual to submit as part of his or
her application.

Provided the contact information of hospital facility staff who can provide an individual with information about the
FAP and FAP application process.

Provided the contact information of nonprofit organizations or government agencies that may be sources of
assistance with FAP applications.

Other (describe in Section C)

Included measures to publicize the policy within the community served by the hospital facility?.......

Yes

If "Yes," indicate how the hospital facility publicized the policy (check all that apply):

The FAP was widely available on a website (list url):

The FAP application form was widely available on a website (list url): X

A plain language summary of the FAP was widely available on a website (list url):
X

The FAP was available upon request and without charge (in public locations in the hospital facility and by mail)

The FAP application form was available upon request and without charge (in public locations in the hospital facility
and by mail)

A plain language summary of the FAP was available upon request and without charge (in public locations in the
hospital facility and by mail)

Notice of availability of the FAP was conspicuously displayed throughout the hospital facility

Notified members of the community who are most likely to require financial assistance about availability of the FAP

Other (describe in Section C)

Billing and Collections

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 all of the actions the hospital facility or other authorized party may take upon non-payment?..................................

Yes

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 individual’s eligibility under the facility’s FAP:

Reporting to credit agency(ies)

Selling an individual’s debt to another party

Actions that require a legal or judicial process

Other similar actions (describe in Section C)

None of these actions or other similar actions were permitted

Schedule H (Form 990) 2014

Page

Part VFacility Information (continued)

	SOMERSET MEDICAL CENTER
Name of hospital facility or letter of facility reporting group

Yes

Did the hospital facility or other authorized third party perform any of the following actions during the tax year before making reasonable efforts to determine the individual’s eligibility under the facility’s FAP?.........

If "Yes," check all actions in which the hospital facility or a third party engaged:

Reporting to credit agency(ies)

Selling an individual’s debt to another party

Actions that require a legal or judicial process

Other similar actions (describe in Section C)

Indicate which efforts the hospital facility or other authorized party made before initiating any of the actions listed (whether or not checked) in line 18. (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 individuals regarding the individuals’ bills

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

Other (describe in Section C)

None of these efforts were made

Policy Relating to Emergency Medical Care

Did the hospital facility have in place during the tax year a written policy relating to emergency medical care that required 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 Section C)

Other (describe in Section C)

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 Section C)

During the tax year, did the hospital facility charge any FAP-eligible individual 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 Section C.

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

If "Yes," explain in Section C.

Schedule H (Form 990) 2014

Page

Part V

Facility Information (continued)

Section C. Supplemental Information for Part V, Section B. Provide descriptions required for Part V, Section B, lines 2, 3j, 5, 6a, 6b, 7d, 11, 13b, 13h, 15e, 16i, 18d, 19d, 20e, 21c, 21d, 22d, 23, and 24. If applicable, provide separate descriptions for each hospital facility in a facility reporting group, designated by facility reporting group letter and hospital facility line number from Part V, Section A (“A, 1,” “A, 4,” “B, 2,” “B, 3,” etc.) and name of hospital facility.
Form and Line Reference	Explanation
SCHEDULE H, PART V; SECTION B, QUESTION 3J	NOT APPLICABLE.
Schedule h, part v; section b, question 5	SOMERSET MEDICAL CENTER INCLUDED HEALTHIER SOMERSET IN THE COMMUNITY HEALTH NEEDS ASSESSMENT ("CHNA") PROCESS. HEALTHIER SOMERSET IS A COALITION OF HEALTHCARE SERVICE PROVIDERS WITHIN SOMERSET COUNTY THAT WORK TO MAKE THE COUNTY A HEALTHIER PLACE TO LIVE AND WORK.
Schedule h, part v; section b, question 6A	THE HOSPITAL FACILITY'S CHNA WAS JOINTLY CONDUCTED WITH SAINT PETER'S UNIVERSITY HOSPITAL AND ROBERT WOOD JOHNSON UNIVERSITY HOSPITAL.
Schedule h, part v; section b, questions 6b and 7d	Not applicable.
Schedule h, part v; section b, question 11	Somerset Medical Center in conjunction with Healthier Somerset works to meet the needs of the community as outlined in the CHNA. Healthier Somerset has formed working groups for each priority area or need identified in the CHNA/CHIP. Each working group will develop initiatives to address and meet the objectives addressed in the CHIP. Initiatives include, but are not limited to, education, health screenings, fitness classes, outreach, etc. By the end of 2014, Healthier Somerset met 14 out of 17 objectives in the CHIP.
Schedule h,part v;section b, questions 13h, 15e, 16i, 18d, 19d, 20e & 21d	Not applicable.
Schedule h, part v; section b, question 22D	The facility uses 115% of the medicare rate as the maximum amount that can be charged to fap-eligible individuals for emergency or other medically necessary care.
Schedule h, part v; section b, questions 23 & 24	Not applicable.

Schedule H (Form 990) 2014

Page

Part VFacility Information (continued)

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

Schedule H (Form 990) 2014

Page

Part VI

Supplemental Information

Provide the following information.

1	Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b.
2	Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs 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.

Form and Line Reference	Explanation
SCHEDULE H, PART I; QUESTION 3C	The income based criteria used to determine eligibility is per new jersey administrative code 10:52 sub chapters 11, 12 and 13, and based upon the 2014 federal poverty guidelines ("fpg") (department of health and senior services). Fpg are included in the criteria for determining eligibility for charity and discounted care.
SCHEDULE H, PART I; QUESTION 6A	NOT APPLICABLE.
SCHEDULE H, PART I; QUESTION 7G	No costs relating to subsidized healthcare services are attributable to any physician clinics.
SCHEDULE H, PART I; QUESTION 7	Worksheet 2 was used for the cost to charge ratio.
SCHEDULE H, PART I; QUESTION 7	Please note that, due to this Form 990 representing a short-period final filing with an extended due date of April 15, 2015, certain information regarding the community benefit expenses reported on Lines 7e, 7f, 7h and 7i was not yet readily available as, in the past, the information was generally gathered and recorded on a calendar year basis and filed with the Form 990 in November. Accordingly, the organization used reasonable estimates for purposes of the community benefit expenses to report on these lines.
SCHEDULE H, PART II	Community building activities undertaken by this organization improve the medical and socioeconomic well-being of the communities in our care. This is accomplished through service on state and regional advocacy committees and boards, volunteerism with local community-based non-profit advocacy groups, and participation in conferences and other educational activities to promote understanding of the root causes of health concerns. This organization provides educational materials, conducts community health fairs and holds health education seminars and outreach sessions for its patients and for community providers. Presentations are provided by physicians, nurses and other healthcare professionals.
SCHEDULE H, PART III; QUESTIONS 2, 3 & 4	Bad debt expense was calculated using the provider's bad debt expense from the financial statements. The organization prepares and issues audited financial statements. The attached text was obtained from the footnotes to the audited financial statements of somerset health care corporation and controlled entities. Accounts receivable, patients Accounts receivable, patients are reported at net realizable value. Accounts are written off when they are determined to be uncollectible based upon management's assessment of individual accounts. In evaluating the collectability of patient accounts receivable, the Medical Center analyzes its past history and identifies trends for each of its major payor sources of revenue to estimate the appropriate allowance for doubtful accounts and provision for bad debts. For receivables associated with services provided to patients who have third-party coverage, the Medical Center analyzes contractual amounts due and provides an allowance for doubtful accounts and a provision for bad debts, if necessary. For receivables associated with self-pay patients (which includes insured patients with deductible and copayment balances), the Medical Center records a significant provision for bad debts in the period of service on the basis of its past experience, which indicates that many patients are unable or unwilling to pay the portion of their bill for which they are financially responsible. The difference between the billed rates and the amounts actually collected after all reasonable collection efforts have been exhausted is charged off against the allowance for doubtful accounts. The Medical Center has not changed its financial assistance policy in 2014 or 2013. The Medical Center does not maintain a material allowance for doubtful accounts from third party payors, nor did it have significant write-offs from third-party payors. Charity care The Medical Center provides care to patients who meet certain criteria under its patient financial assistance policy without charge or at amounts less than its established rates. Because the Medical Center does not pursue collections of amounts determined to qualify as charity care, they are not reported as patient service revenues.
SCHEDULE H, PART III, SECTION B; QUESTION 8	Medicare costs were derived from the 2014 medicare cost report. The organization believes that medicare underpayments (shortfall) and bad debt are community benefit and associated costs should be includable on the form 990, schedule h, part i. As outlined more fully below the organization believes that these services and related costs promote the health of the community as a whole and are rendered in conjunction with the organization's charitable tax-exempt purposes and mission in providing medically necessary healthcare services to all individual's in a non-discriminatory manner without regard to race, color, creed, sex, national origin, religion or ability to pay and consistent with the community benefit standard promulgated by the irs. The community benefit standard is the current standard for a hospital for recognition as a tax-exempt and charitable organization under internal revenue code ("irc") 501(c)(3). The organization is recognized as a tax-exempt entity and charitable organization under 501(c)(3) of the irc. Although there is no definition in the tax code for the term "charitable" a regulation promulgated by the department of the treasury provides some guidance and states that "[t]he term charitable is used in section 501(c)(3) in its generally accepted legal sense," and provides examples of charitable purposes, including the relief of the poor or unprivileged; the promotion of social welfare; and the advancement of education, religion, and science. Note it does not explicitly address the activities of hospitals. In the absence of explicit statutory or regulatory requirements applying the term "charitable" to hospitals, it has been left to the irs to determine the criteria hospitals must meet to qualify as irc 501(c)(3) charitable organizations. The original standard was known as the charity care standard. This standard was replaced by the irs with the community benefit standard which is the current standard. Charity care standard In 1956, the irs issued revenue ruling 56-185, which addressed the requirements hospitals needed to meet in order to qualify for irc 501(c)(3) status. One of these requirements is known as the "charity care standard." under the standard, a hospital had to provide, to the extent of its financial ability, free or reduced-cost care to patients unable to pay for it. A hospital that expected full payment did not, according to the ruling, provide charity care based on the fact that some patients ultimately failed to pay. The ruling emphasized that a low level of charity care did not necessarily mean that a hospital had failed to meet the requirement since that level could reflect its financial ability to provide such care. The ruling also noted that publicly supported community hospitals would normally qualify as charitable organizations because they serve the entire community and a low level of charity care would not affect a hospital's exempt status if it was due to the surrounding community's lack of charitable demands. Community benefit standard In 1969, the irs issued revenue ruling 69-545, which "remove[d]" from revenue ruling 56-185 "the requirements relating to caring for patients without charge or at rates below cost." under the standard developed in revenue ruling 69-545, which is known as the "community benefit standard," hospitals are judged on whether they promote the health of a broad class of individuals in the community. The ruling involved a hospital that only admitted individuals who could pay for the services (by themselves, private insurance, or public programs such as medicare), but operated a full-time emergency room that was open to everyone. The irs ruled that the hospital qualified as a charitable organization because it promoted the health of people in its community. The irs reasoned that because the promotion of health was a charitable purpose according to the general law of charity, it fell within the "generally accepted legal sense" of the term "charitable," as required by treas. Reg. 1.501(c)(3)-1(d)(2). The irs ruling stated that the promotion of health, like the relief of poverty and the advancement of education and religion, is one of the purposes in the general law of charity that is deemed beneficial to the community as a whole even though the class of beneficiaries eligible to receive a direct benefit from its activities does not include all members of the community, such as indigent members of the community, provided that the class is not so small that its relief is not of benefit to the community. The irs concluded that the hospital was "promoting the health of a class of persons that is broad enough to benefit the community" because its emergency room was open to all and it provided care to everyone who could pay, whether directly or through third-party reimbursement. Other characteristics of the hospital that the irs highlighted included the following: its surplus funds were used to improve patient care, expand hospital facilities, and advance medical training, education, and research; it was controlled by a board of trustees that consisted of independent civic leaders; and hospital medical staff privileges were available to all qualified physicians. The organization believes that medicare underpayments and bad debt are community benefit and associated costs should be includable on the form 990, schedule h, part i. The american hospital association's ("aha") position is that medicare underpayments (shortfall) and bad debt are community benefit and thus includable on the form 990, schedule h, part i. This organization agrees with the aha position. As outlined in the aha letter to the irs dated august 21, 2007 with respect to the first published draft of the new form 990 and schedule h, the aha felt that the irs should incorporate the full value of the community benefit that hospitals provide by counting medicare underpayments (shortfall) as quantifiable community benefit for the following reasons: - providing care for the elderly and serving medicare patients is an essential part of the community benefit standard. - medicare, like medicaid, does not pay the full cost of care. Recently, medicare reimburses hospitals only 92 cents for every dollar they spend to take care of medicare patients. The medicare payment advisory commission ("medpac") in its march 2007 report to congress cautioned that underpayment will get even worse, with margins reaching a 10-year low at negative 5.4 percent. - many medicare beneficiaries, like their medicaid counterparts, are poor. More than 46 percent of medicare spending is for beneficiaries whose income is below 200 percent of the federal poverty level. Many of those medicare beneficiaries are also eligible for medicaid -- so called "dual eligibles." There is every compelling public policy reason to treat medicare and medicaid underpayments similarly for purposes of a hospital's community benefit and include these costs on form 990, schedule h, part i. Medicare underpayment must be shouldered by the hospital in order to continue treating the community's elderly and poor. These underpayments represent a real cost of serving the community and should count as a quantifiable community benefit. Both the aha and this organization also feel that patient bad debt is a community benefit and thus includable on the form 990, schedule h, part i. Like medicare underpayment (shortfalls), there also are compelling reasons that patient bad debt should be counted as quantifiable community benefit as follows: - a significant majority of bad debt is attributable to low-income patients, who, for many reasons, decline to complete the forms required to establish eligibility for hospitals' charity care or financial assistance programs. A 2006 congressional budget office ("cbo") report, nonprofit hospitals and the provision of community benefits, cited two studies indicating that "the great majority of bad debt was attributable to patients with incomes below 200% of the federal poverty line." - the report also noted that a substantial portion of bad debt is pending charity care. Unlike bad debt in other industries, hospital bad debt is complicated by the fact that hospitals follow their mission to the community and treat every patient that comes through their emergency department, regardless of ability to pay. Patients who have outstanding bills are not turned away, unlike other industries. Bad debt is further complicated by the auditing industry's standards on reporting charity care. Many patients cannot or do not provide the necessary, extensive documentation required to be deemed charity care by auditors. As a result, roughly 40% of bad debt is pending charity care. - the cbo concluded that its findings "support the validity of the use of uncompensated care [bad debt and charity care] as a measure of community benefits" assuming the findings are generalizable nationwide; the experience of hospitals around the nation reinforces that they are general
SCHEDULE H, PART III, SECTION B; QUESTION 9B	Accounts considered to be charity care are not included in the bad debt expense, but rather, accounted for as an allowance. It is the policy of the organization to treat all patients equally regardless of insurance and their ability to pay. For accounts determined to be "self-pay" and/or accounts with balance after primary insurance payments, the collection policy requires: a minimum of one pre-collection letter, telephone contact for any account over $500 or at the discretion of the account representative and/or supervisor. The facility also has a charity care access policy to assure patients are provided with charity care assistance determined by state and federal regulations. It is the policy to inform all patients deemed self-pay of the appropriate assistance programs available. Patients applying for charity care assistance will be financially screened by a resource advisor to determine eligibility according to state and federal guidelines and will be informed of documentation need to complete a charity care application. Patients not eligible for charity care will be financially counseled for all other options. Qualified patients will be referred to all appropriate agencies or programs to meet other financial needs. At the time of the patient visit and part of the registration process at the facility, the following options are made available to patients: - financial counseling for possible eligibility for medical assistance including medicaid and ssi; - financial counseling for possible eligibility for the new jersey hospital care payment assistance program; and, - financial arrangements including: 1. Cash/credit card (american express, discover, visa, mastercard), 2. Low interest loan program, or 3. Flexible payment plans. In addition to the above options, the facility has established a self-pay assistance program for our uninsured patients that do not qualify for medicaid or the new jersey hospital care payment assistance program. The self-pay assistance program rates are reflective of medicare reimbursement, as referred by the state of new jersey.
SCHEDULE H, PART VI; QUESTION 2	IN ADDITION TO THE COMMUNITY HEALTH NEEDS ASSESSMENT PROCESS OUTLINED IN SCHEDULE H, SECTION B, QUESTIONS 1-16 AND SECTION C, this organization conducts a review of key factor information annually which includes: a review of healthcare utilization of its service area population by services (urology, cardiology, obstetrics, etc.) For determining increased or decreased health needs; healthcare service estimates and forecasts (both inpatient and outpatient); assessments of local demographic and socioeconomic information; and, a review of health status/needs assessments and studies conducted by external parties health research and education trust of new jersey, united way of somerset county, greater somerset public health partnership and the somerset county health officer's association. This organization conducts an extensive service area population need study every three to five years. Specific questions are asked to identify gaps in service. These reviews inform the board of trustees and the executive team of somerset medical center to assure responsiveness to identified community needs. In addition, this organization works with local providers to plan and discuss health needs of the population. One forum is a monthly meeting of the healthier somerset coalition hosted by the healthcare system with representation from local politicians, local community health centers, local health departments, emergency health providers and other community health leader.
SCHEDULE H, PART VI; QUESTION 3	Charity care signs are posted throughout the facility, mainly in patient registration areas. Signs are posted in both english and spanish. All patients deemed self-pay or those who request financial assistance are screened for financial need by a resource advisor according to the federal poverty guidelines and referred to appropriate agencies or programs.
SCHEDULE H, PART VI; QUESTION 4	This organization is in a diverse suburban location serving diverse communities ranging from small inner city communities in the central region to more affluent suburban areas in the northern region. This organization is located in new jersey in somerset county. This organization is committed to service for its communities and serves both inner city and suburban areas. About 24.8% of its inpatients are of minority race/ethnicity. In addition, approximately 7.75% of its patients are of underinsured and uninsured payer categories.
SCHEDULE H, PART VI; QUESTION 5	This organization operates consistently with the following criteria outlined in irs revenue ruling 69-545: 1. The organization provices medically necessary healthcare services to all individuals regardless of ability to pay, including charity care, self-pay, medicare and medicaid patients; 2. The organization operates an active emergency department for all persons; which is open 24 hours a day, 7 days a week, 365 days per year; 3. The organization maintains an open medical staff, with privileges available to all qualified physicians; 4. Control of the organization rests with its board of directors; which is comprised of independent civic leaders and other prominent members of the community; and 5. Surplus funds are used to improve the quality of patient care, expand and renovate facilities and advance medical care; programs and activities.
SCHEDULE H, PART VI; QUESTION 6	Not for-profit somerset health care corporation and affiliates entities: Somerset health care corporation Prior to its statutory merger into Robert Wood Johnson University Hospital on May 30, 2014, Somerset health care corporation ("shcc") was the tax-exempt parent of the somerset health care corporation and affiliates ("system"). This integrated healthcare delivery system consists of a group of affiliated healthcare organizations. The sole member or stockholder of each entity is either shcc or another system affiliate controlled by shcc. The system is an integrated network of healthcare providers throughout the state of new jersey. Somerset health care corporation is an organization recognized by the internal revenue service as tax-exempt pursuant to internal revenue code 501(c)(3) and as a supporting organization pursuant to internal revenue code 509(a)(3). Somerset Medical Center Somerset medical center ("smc") is a 355-bed acute care and teaching hospital located in somerville, somerset county, new jersey. Smc is recognized by the internal revenue service as an internal revenue code section 501(c) (3) tax-exempt organization. Pursuant to its charitable purposes, smc provides medically necessary healthcare services to all individuals in a non-discriminatory manner regardless of race, color, creed, sex, national origin, religion or ability to pay. Moreover, smc operates consistently with the criteria outlined in irs revenue ruling 69-545. 1. Smc provides medically necessary healthcare services to all individuals regardless of ability to pay, including charity care, self- pay, medicare and medicaid patients; 2. Smc operates an active emergency department for all persons; which is open 24 hours a day, 7 days a week, 365 days per year; 3. Smc maintains an open medical staff, with privileges available to all qualified physicians; 4. Control of smc rests with its board of trustees which is comprised of independent civic leaders, members of the community and medical staff representation; and 5. Surplus funds are used to improve the quality of patient care, expand and renovate facilities and advance medical care; programs and activities. Somerset community care corporation Somerset community care corporation is an organization recognized by the internal revenue service as tax-exempt pursuant to internal revenue code 501(c)(3) and as a non-private foundation pursuant to internal revenue code 509(a)(2). The organization supports somerset medical center; a related internal revenue code section 501(c)(3) tax-exempt organization, and its affiliates in providing medically necessary healthcare services to the community in a non-discriminatory manner regardless of race, color, creed, sex, national origin, religion or ability to pay. Somerset health care affiliates, inc. Somerset health care affiliates, inc. Is an organization recognized by the internal revenue service as tax-exempt pursuant to internal revenue code 501(c)(3) and as a non-private foundation pursuant to internal revenue code 509(a)(2). The organization supports somerset medical center; a related internal revenue code section 501(c)(3) tax-exempt organization, and its affiliates in providing medically necessary healthcare services to the community in a non-discriminatory manner regardless of race, color, creed, sex, national origin, religion or ability to pay. Somerset medical center foundation, inc. Somerset medical center foundation, inc. Is an organization recognized by the internal revenue service as tax-exempt pursuant to internal revenue code 501(c)(3) and as a non-private foundation pursuant to internal revenue code 509(a)(1). The organization supports somerset medical center; a related internal revenue code section 501(c)(3) tax-exempt organization, and its affiliates in providing medically necessary healthcare services to the community in a non-discriminatory manner regardless of race, color, creed, sex, national origin, religion or ability to pay. For-profit somerset health care corporation and affiliates entities: Eos, inc. An inactive for-profit corporation. New jersey health, inc. An inactive for-profit corporation. New jersey healthcare associates A for-profit entity whose sole shareholder is new jersey health, inc. The organization is located in somerville, somerset county, new jersey. This entity provides medical services. New jersey management services organization A for-profit entity whose sole shareholder is new jersey health, inc. The organization is located in somerville, somerset county, new jersey. This entity provides management services. Shc enterprises, inc. A for-profit entity whose sole shareholder is shcc. The organization is located in somerville, somerset county, new jersey. This entity provides management services. Somerset realty group, inc. A for-profit entity whose sole shareholder is shc enterprises, inc. The organization is located in somerville, somerset county, new jersey. This entity provides real estate services. Somerset staffing corporation An inactive for-profit corporation. Warren internal medicine, p.c. A for-profit entity whose nominee owner is smc. The organization is located in somerville, somerset county, new jersey. This entity provides medical services. Franklin medical group, p.c. A for-profit entity whose nominee owner is smc. The organization is located in somerville, somerset county, new jersey. This entity provides medical services. Acucare physicians, p.c. A for-profit entity whose nominee owner is smc. The organization is located in somerville, somerset county, new jersey. This entity provides medical services. Somerset medical care partners, p.c. A for-profit entity whose nominee owner is smc. The organization is located in somerville, somerset county, new jersey. This entity provides medical services. Somerset cardiology partners, p.c. A for-profit entity whose nominee owner is smc. The organization is located in somerville, somerset county, new jersey. This entity provides medical services. Somerset cardiology group, p.c. A for-profit entity whose nominee owner is smc. The organization is located in somerville, somerset county, new jersey. This entity provides medical services. Somerset chest and intensive care medicine, p.c. A for-profit entity whose nominee owner is smc. The organization is located in somerville, somerset county, new jersey. This entity provides medical services. Somerset Medical Center Urgent Care, P.C. A for-profit entity whose nominee owner is smc. The organization is located in somerville, somerset county, new jersey. This entity provides medical services.
SCHEDULE H, PART VI; QUESTION 7	Not applicable. The entity and related provider organizations are located in new jersey. No community benefit report is filed with the state of new jersey.

Schedule H (Form 990) 2014

Additional Data

Software ID:
Software Version:

- TIN:

Schedule I
(Form 990)

Department of the Treasury
Internal Revenue Service

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

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

Attach to Form 990.
lBullet

Information about Schedule I (Form 990) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2014

Open to Public
Inspection

Name of the organization
SOMERSET MEDICAL CENTER

Employer identification number
22-1487350

Part I

General Information on Grants and Assistance

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

Yes No

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

Part II

Grants and Other Assistance to Domestic Organizations and Domestic Governments. Complete if the organization answered "Yes" to
Form 990, Part IV, line 21, for any recipient that received more than $5,000. Part II can be duplicated if additional space is needed.

(a) Name and address of organization or government	(b) EIN	(c) IRC section if applicable	(d) Amount of cash grant	(h) Purpose of grant or assistance
(1) RARITAN VALLEY COMMUNITY COLLEGE 118 LAMINGTON ROAD BRANCHBURG,NJ08876	23-7138731	501(c)(3)	10,000	EDUC. SCHOLARSHIPS

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

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

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

Cat. No. 50055P

Schedule I (Form 990) 2014

Page 2

Part III

Grants and Other Assistance to Domestic Individuals. Complete if the organization answered "Yes" to Form 990, Part IV, line 22.
Part III can be duplicated if additional space is needed.

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

Part IV

Supplemental Information. Provide the information required in Part I, line 2, Part III, column (b), and any other additional information.

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

Schedule I (Form 990) 2014

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, line 23.
SchJMediumBullet

Attach to Form 990.
SchJMediumBullet

Information about Schedule J (Form 990) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2014

Open to Public Inspection

Name of the organization

SOMERSET MEDICAL CENTER

Employer identification number

22-1487350

Part I

Questions Regarding Compensation

Yes

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

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

Travel for companions Payments for business use of personal residence

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

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

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

Yes

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

Yes

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? .........

Yes

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

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

Only 501(c)(3), 501(c)(4), and 501(c)(29) organizations 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) 2014

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 in column(B) 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)
1KENNETH W BATEMANTRUSTEE - PRES/CEO (1/1-5/31)	(i) (ii)	278,152 ............................... 0	0 ............................... 0	667,181 ............................... 0	0 ............................... 0	0 ............................... 0	945,333 ............................... 0	574,532 ............................... 0
2DAVID DYERCIO/VP INFO SYSTEMS (1/1-5/31)	(i) (ii)	146,076 ............................... 0	0 ............................... 0	29,991 ............................... 0	0 ............................... 0	0 ............................... 0	176,067 ............................... 0	0 ............................... 0
3PAUL HUEGELPRESIDENT - FOUNDATION	(i) (ii)	173,168 ............................... 0	0 ............................... 0	4,537 ............................... 0	0 ............................... 0	0 ............................... 0	177,705 ............................... 0	0 ............................... 0
4GLENN MCCREESHSR VP OPERATIONS (1/1-5/31)	(i) (ii)	194,876 ............................... 0	0 ............................... 0	72,710 ............................... 0	0 ............................... 0	0 ............................... 0	267,586 ............................... 0	41,675 ............................... 0
5MAUREEN SCHNEIDERSR VP-CHIEF NURS OFF(1/1-5/31)	(i) (ii)	166,305 ............................... 0	0 ............................... 0	38,935 ............................... 0	0 ............................... 0	0 ............................... 0	205,240 ............................... 0	0 ............................... 0
6CARL OBRIENFORMER OFFICER	(i) (ii)	0 ............................... 0	0 ............................... 0	613,454 ............................... 0	0 ............................... 0	0 ............................... 0	613,454 ............................... 0	0 ............................... 0

Schedule J (Form 990) 2014

Page 3

Part III

Supplemental Information

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.

Return Reference	Explanation
SCHEDULE J, PART I; QUESTION 1A	THE ORGANIZATION MAINTAINED MEMBERSHIPS IN TWO COUNTRY CLUBS FOR BUSINESS PURPOSES. THE COUNTRY CLUBS REQUIRE THAT AN INDIVIDUAL BE NAMED AS THE MEMBER. ACCORDINGLY, THE ORGANIZATION HAS DESIGNATED KENNETH W. BATEMAN, PRESIDENT/CEO AND GLENN MCCREESH, SENIOR VP OPERATIONS AS THE MEMBERS; ONE FOR EACH COUNTRY CLUB. DURING 2014, NEITHER MR. BATEMAN NOR MR. MCCREESH USED THE COUNTRY CLUB FOR ANY PERSONAL USE OR BENEFIT.
SCHEDULE J, PART I; QUESTION 4A	THE AMOUNT REFLECTED IN COLUMN B(III) FOR THE FOLLOWING INDIVIDUALS INCLUDES A SEVERANCE PAYMENT RECEIVED DURING 2014. THE AMOUNTS OUTLINED HEREIN WERE INCLUDED IN EACH INDIVIDUAL'S 2014 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES: KENNETH BATEMAN, $23,390; CARL O'BRIEN, $165,252; DAVID DYER, $12,384; GLENN MCCREESH, $16,447; MAUREEN SCHNEIDER, $13,823; MARY ANN BROSS, $9,921; ROBERT SENSKA, III, $10,577; STEPHEN MINOGUE, $8,200 AND MARY BOLLWAGE, $7,571.
SCHEDULE J, PART I; QUESTION 4B	THE AMOUNT REFLECTED IN COLUMN B(III) FOR THE FOLLOWING INDIVIDUALS INCLUDES CURRENT YEAR VESTING IN AN INTERNAL REVENUE CODE SECTION 457(F) PLAN (NON-QUALIFIED DEFERRED COMPENSATION PLAN) AS THE AMOUNTS WERE NO LONGER SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. THE AMOUNTS OUTLINED HEREIN WERE INCLUDED IN EACH INDIVIDUAL'S 2014 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES: KENNETH W. BATEMAN, $574,532 AND GLENN MCCREESH, $41,675. The amount reflected in Column B(iii) for Carl O'Brien includes payment of a retention bonus in the amount of $397,828 which became taxable to Mr. O'Brien upon his termination in December of 2013. Please note that this amount was reported in his Form W-2, Box 5, as taxable Medicare wages.
SCHEDULE J, PART II; COLUMNS C & D	In accordance with the 2014 Form 990, Core Form, Part VII and Schedule J instructions, Please note that Schedule J, Part II, Column (c), Retirement and Other Deferred Compensation, and Column (d), Nontaxable benefits, have not been completed. The Form 990, Schedule J instructions state that a short-period final return is only required to report compensation that is "reportable compensation" (Form W-2, Box 5 wages) in Part II of Schedule J.
SCHEDULE J, PART II; COLUMN F	THE AMOUNT REFLECTED IN COLUMN (F) FOR THE FOLLOWING INDIVIDUALS INCLUDES CURRENT YEAR VESTING IN AN INTERNAL REVENUE CODE SECTION 457(F) PLAN (NON-QUALIFIED DEFERRED COMPENSATION PLAN) AS THE AMOUNTS WERE NO LONGER SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. THE AMOUNTS OUTLINED HEREIN WERE INCLUDED IN EACH INDIVIDUAL'S 2014 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES: KENNETH W. BATEMAN, $574,532 AND GLENN MCCREESH, $41,675. THESE AMOUNTS WERE REPORTED ON PRIOR YEAR FORMS 990 AS ACCRUED NON-TAXABLE DEFERRED COMPENSATION.

Schedule J (Form 990) 2014

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

Information about Schedule L (Form 990 or 990-EZ) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2014

Open to Public Inspection

Name of the organization

SOMERSET MEDICAL CENTER

Employer identification number

22-1487350

Part I

Excess Benefit Transactions (section 501(c)(3), section 501(c)(4), and 501(c)(29) 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






Total ...... $

Part III

Grants or Assistance Benefiting 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) 2014

Page 2

Part IV

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

(a) Name of interested person	(b) Relationship between interested person and the organization	(c) Amount of transaction	(d) Description of transaction	(e) Sharing of organization's revenues?
(a) Name of interested person		(c) Amount of transaction	(d) Description of transaction	Yes	No
(1) LAURA FINO	FAMILY MEMBER - RAY FINO	51,778	EMPLOYEE		No

Part V

Supplemental Information
Provide additional information for responses to questions on Schedule L (see instructions).

Return Reference	Explanation

Schedule L (Form 990 or 990-EZ) 2014

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE N
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Liquidation, Termination, Dissolution, or Significant Disposition of Assets

Complete if the organization answered "Yes" to Form 990, Part IV, lines 31 or 32; or Form 990-EZ, line 36.
bullet

Attach certified copies of any articles of dissolution, resolutions, or plans.
bullet

Attach to Form 990 or 990-EZ.
bullet

Information about Schedule N (Form 990 or 990-EZ) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2014

Open to Public
Inspection

Name of the organization
SOMERSET MEDICAL CENTER

Employer identification number
22-1487350

Part I

Liquidation, Termination, or Dissolution. Complete this part if the organization answered "Yes" to Form 990, Part IV, line 31, or Form 990-EZ, line 36.
Part I can be duplicated if additional space is needed. Click to see list of attachments

1(a)Description of asset(s) distributed or transaction expenses paid	(b)Date of distribution	(c)Fair market value of asset(s) distributed or amount of transaction expenses	(d)Method of determining FMV for asset(s) distributed or transaction expenses	(e)EIN of recipient	(f)Name and address of recipient	(g)IRC section of recipient(s) (if tax-exempt) or type of entity

Yes

Did or will any officer, director, trustee, or key employee of the organization:

Become a director or trustee of a successor or transferee organization? . . . . . . . . . . . . . . . . . . . . .

Become an employee of, or independent contractor for, a successor or transferee organization? . . . . . . . . . . . . . . . .

Become a direct or indirect owner of a successor or transferee organization? . . . . . . . . . . . . . . . . . . . .

Receive, or become entitled to, compensation or other similar payments as a result of the organization's liquidation, termination, or dissolution? . . . . .

If the organization answered "Yes" to any of the questions on lines 2a through 2d, provide the name of the person involved and explain in Part III. bullet

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

Cat. No. 50087Z

Schedule N (Form 990 or 990-EZ) (2014)

Page 2

Part I

Liquidation, Termination, or Dissolution (continued)

Note. If the organization distributed all of its assets during the tax year, then Form 990, Part X, column (B), line 16 (Total assets), and line 26 (Total liabilities), should equal -0-.

Yes

Did the organization distribute its assets in accordance with its governing instrument(s)? If "No," describe in Part III . . . . . . . . . . .

Is the organization required to notify the attorney general or other appropriate state official of its intent to dissolve, liquidate, or terminate? . . . . . .

If "Yes," did the organization provide such notice? . . . . . . . . . . . . . . . . . . . . . . . . . .

Did the organization discharge or pay all of its liabilities in accordance with state laws? . . . . . . . . . . . . . . . . .

Did the organization have any tax-exempt bonds outstanding during the year? . . . . . . . . . . . . . . . . . . . .

If "Yes" to line 6a, did the organization discharge or defease all of its tax-exempt bond liabilities during the tax year in accordance with the Internal Revenue Code and state laws?

If "Yes" to line 6b, describe in Part III how the organization defeased or otherwise settled these liabilities. If "No" to line 6b, explain in Part III.

Part II

Sale, Exchange, Disposition, or Other Transfer of More Than 25% of the Organization's Assets. Complete this part if the organization answered "Yes" to Form 990, Part IV, line 32, or Form 990-EZ, line 36. Part II can be duplicated if additional space is needed.

1(a) Description of asset(s) distributed or transaction expenses paid	(b) Date of distribution	(c) Fair market value of asset(s) distributed or amount of transaction expenses	(d) Method of determining FMV for asset(s) distributed or transaction expenses	(e) EIN of recipient	(f) Name and address of recipient	(g) IRC section of recipient(s) (if tax-exempt) or type of entity
NET ASSETS	05-31-2014	31,577,509	COST	22-1487243	ROBERT WOOD JOHNSON UNIVERSITY HOSP ONE ROBERT WOOD JOHNSON PLACE NEW BRUNSWICK,NJ08903	501(C)(3)

Yes

Did or will any officer, director, trustee, or key employee of the organization:

Become a director or trustee of a successor or transferee organization? . . . . . . . . . . . . . . . . . . . . .

Become an employee of, or independent contractor for, a successor or transferee organization? . . . . . . . . . . . . . . . .

Become a direct or indirect owner of a successor or transferee organization? . . . . . . . . . . . . . . . . . . . . .

Receive, or become entitled to, compensation or other similar payments as a result of the organization’s significant disposition of assets? . . . . . . .

If the organization answered "Yes" to any of the questions on lines 2a through 2d, provide the name of the person involved and explain in Part III. bullet

Schedule N(Form 990 or 990-EZ) (2014)

Schedule N (Form 990 or 990-EZ) (2014)

Page 3

Part III

Supplemental Information. Provide the information required by Part I, lines 2e and 6c, and Part II, line 2e. Also complete this part to provide any additional information.

Return Reference

Explanation

SCHEDULE N, PART II, QUESTION 2B

Somerset medical Center, an Internal Revenue Code 501(c)(3) tax-exempt organization, was legally merged into Robert Wood Johnson University Hospital; an Internal Revenue Code 501(c)(3) tax-exempt teaching hospital, on May 31, 2014. Accordingly, certain employee and independent contractor arrangements of Somerset Medical Center are likely to be continued by Robert Wood Johnson University Hospital; For example, individuals with a title of Vice President or contractual relationships with physicians. Please note that these arrangements will continue to be at fair market value rates pursuant to arm's length negotiations.

Schedule N (Form 990 or 990-EZ) (2014)

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 990-EZ or to provide any additional information.
MediumBullet

Attach to Form 990 or 990-EZ.
MediumBullet

Information about Schedule O (Form 990 or 990-EZ) and its instructions is at
www.irs.gov/form990.

OMB No. 1545-0047

2014

Open to Public
Inspection

Name of the organization

SOMERSET MEDICAL CENTER

Employer identification number

22-1487350

Return Reference	Explanation
CORE FORM, PART III; STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS	SOMERSET MEDICAL CENTER ("SMC") IS AN ACUTE CARE GENERAL MEDICAL AND SURGICAL HOSPITAL. SMC IS RECOGNIZED BY THE IRS AS AN INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, SMC PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. MOREOVER, SMC OPERATES CONSISTENTLY WITH THE FOLLOWING CRITERIA OUTLINED IN IRS REVENUE RULING 69-545: 1. SMC PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF ABILITY TO PAY, INCLUDING CHARITY CARE, SELF- PAY, MEDICARE AND MEDICAID PATIENTS. 2. SMC OPERATES AN ACTIVE EMERGENCY DEPARTMENT FOR ALL PERSONS; WHICH IS OPEN 24 HOURS A DAY, 7 DAYS A WEEK, 365 DAYS PER YEAR. 3. SMC MAINTAINS AN OPEN MEDICAL STAFF, WITH PRIVILEGES AVAILABLE TO ALL QUALIFIED PHYSICIANS. 4. CONTROL OF SMC RESTS WITH ITS BOARD OF TRUSTEES, WHICH IS COMPRISED OF INDEPENDENT CIVIC LEADERS, AND OTHER PROMINENT MEMBERS OF THE COMMUNITY. 5. SURPLUS FUNDS ARE USED TO IMPROVE THE QUALITY OF PATIENT CARE, EXPAND AND RENOVATE FACILITIES AND ADVANCE MEDICAL CARE; PROGRAMS AND ACTIVITIES. THE OPERATIONS OF SMC, AS SHOWN THROUGH THE FACTORS OUTLINED ABOVE AND OTHER INFORMATION CONTAINED HEREIN, CLEARLY DEMONSTRATE THAT THE USE AND CONTROL OF SMC IS FOR THE BENEFIT OF THE PUBLIC AND THAT NO PART OF THE INCOME OR NET EARNINGS OF THE ORGANIZATION INURES TO THE BENEFIT OF ANY PRIVATE INDIVIDUAL NOR IS ANY PRIVATE INTEREST BEING SERVED OTHER THAN INCIDENTALLY. BACKGROUND ========== SMC IS A NATIONALLY ACCREDITED 355-BED ACUTE CARE AND TEACHING HOSPITAL PROVIDING COMPREHENSIVE EMERGENCY, MEDICAL/SURGICAL AND REHABILITATIVE SERVICES TO CENTRAL NEW JERSEY RESIDENTS. IT IS NATIONALLY RECOGNIZED AS A MAGNET HOSPITAL FOR NURSING EXCELLENCE. AS SOMERSET COUNTY'S ONLY ACUTE CARE HOSPITAL, SOMERSET MEDICAL CENTER HAS A FAR-REACHING IMPACT ON THE COUNTY'S QUALITY OF LIFE, TOUCHING THE LIVES OF RESIDENTS OF ALL AGES AND RACIAL AND ECONOMIC BACKGROUNDS. EACH YEAR, MORE THAN 250,000 PEOPLE TURN TO THE MEDICAL CENTER FOR CARE, RANGING FROM EMERGENCY, CARDIAC AND CANCER CARE TO SURGICAL, MATERNITY AND REHABILITATION SERVICES. CARE IS PROVIDED REGARDLESS OF PATIENTS' ABILITY TO PAY. EACH YEAR, THE MEDICAL CENTER PROVIDES APPROXIMATELY $74.2 MILLION IN CHARITY CARE (AT GROSS CHARGES). FOR MORE THAN A CENTURY, SMC HAS BEEN DEEPLY ROOTED IN THE HEALTH OF THE COMMUNITY. ITS EXTRAORDINARY, FAR-REACHING COMMITMENT TO KEEPING PEOPLE WELL AND ENHANCING THEIR QUALITY OF LIFE HAS BEEN A GROUNDING AND GUIDING FORCE - EMBRACING THE CORNERSTONE OF ITS MISSION WHILE INSPIRING NEW DIMENSIONS OF CARE FOR AREA FAMILIES. SMC HAS PROUDLY EVOLVED INTO A CENTERPIECE OF SOMERSET COUNTY AND ITS SURROUNDING COMMUNITIES. OVER THE YEARS, IT HAS EXPANDED BEYOND THE REALM OF HEALING AND TOWARD A BROADER ROLE OF ADVOCATING WELLNESS AND EMPOWERING INDIVIDUALS TO LIVE HEALTHIER LIFESTYLES. THIS MULTI-FACETED APPROACH REFLECTS A DRAMATIC SHIFT IN MODERN MEDICINE, RECOGNIZING THAT THE MOST POWERFUL PATHWAY TO GOOD HEALTH IS THROUGH DISEASE PREVENTION RATHER THAN CURE. AND THAT ADDING LIFE TO YOUR YEARS IS JUST AS IMPORTANT AS ADDING YEARS TO YOUR LIFE. WITH THAT IN MIND, SMC HAS COMPLEMENTED ITS LEADING EDGE CLINICAL SERVICES WITH AN ARRAY OF COMMUNITY-BASED, HEALTH PROMOTION INITIATIVES. THESE OUTREACH AND COLLABORATIVE PROGRAMS ADDRESS THE REGION'S GREATEST MEDICAL PRIORITIES WHILE SUPPORTING ALL ASPECTS OF PHYSICAL, MENTAL AND SPIRITUAL WELL-BEING. COMMUNITY EDUCATION, SCREENINGS & OUTREACH ========================================== SMC'S COMMUNITY FOCUS IS ANCHORED BY A VAST ASSORTMENT OF SEMINARS, FITNESS PROGRAMS, SUPPORT GROUPS AND SCREENINGS THAT GUIDE AREA RESIDENTS TO HEALTHIER, SAFER LIVING. THE COMMUNITY HEALTH DEPARTMENT SPONSORS AN EXTENSIVE CALENDAR OF EVENTS, INCLUDING CLASSES ON NUTRITION, EXERCISE, DISEASE MANAGEMENT, DEPRESSION AND A VARIETY OF OTHER HEALTH TOPICS. PHYSICIANS AND PROFESSIONAL STAFF OFFER ENLIGHTENING PRESENTATIONS AT THE MEDICAL CENTER AND ALSO TRAVEL TO VARIOUS COMMUNITY SITES, I.E., WORKPLACE, SCHOOLS AND OTHER COMMUNITY SETTINGS, THROUGH THE HOSPITAL'S SPEAKER'S BUREAU. IN ADDITION TO WELLNESS EDUCATION, THE MEDICAL CENTER PROVIDES FREE AND LOW-COST SCREENINGS FOR CANCER, DIABETES, CHOLESTEROL AND OTHER SERIOUS MEDICAL CONDITIONS THAT ARE TREATED MOST SUCCESSFULLY WITH EARLY DETECTION. THE MEDICAL CENTER SPONSORS A FREE BLOOD PRESSURE KIOSK AT THE BRIDGEWATER COMMONS MALL, WHICH RECORDED AN AVERAGE OF APPROXIMATELY 150 TESTS PER DAY FOR THE SHORT-PERIOD JANUARY 1, 2014 THROUGH MAY 31, 2014. ESPECIALLY FOR WOMEN: FROM CHILDBIRTH TO MENOPAUSE, SMC OFFERS A FULL CONTINUUM OF WELLNESS PROGRAMS ADDRESSING ALL ASPECTS OF WOMEN'S HEALTH. ITS BABY SUITES HOST A VARIETY OF PRENATAL, POSTPARTUM AND PARENTING COURSES FOR NEW AND EXPECTANT MOTHERS, AS WELL AS THEIR FAMILIES. THESE INCLUDE CLASSES ON BIRTHING, TOURS AND SPECIAL PROGRAMS FOR DADS AND SIBLINGS. IN COOPERATION WITH THE COURIER NEWS, THE COMMUNITY HEALTH DEPARTMENT PRESENTS FREE LECTURES ADDRESSING A WIDE RANGE OF WOMEN'S HEALTH TOPICS, IMPORTANT WOMEN'S ISSUES RELATED TO HEART DISEASE, OSTEOPOROSIS AND PHYSIOLOGICAL PSYCHOLOGICAL WELLNESS ARE INCORPORATED INTO THE HOSPITAL'S GENERAL COMMUNITY HEALTH CALENDAR. SCHOOL ACTIVITIES: DEDICATED TO GIVING YOUTH A HEALTHY START, SMC PARTNERS WITH LOCAL SCHOOLS AND ORGANIZATIONS TO FOSTER EARLY, POSITIVE LIFESTYLE HABITS WHILE OPENING DOORS TO A BRIGHTER FUTURE. ANNUAL PROGRAMS ABOUT DENTAL HEALTH ARE PRESENTED TO HIGH-RISK PRESCHOOL CHILDREN AND HIGHLIGHTED AT HEALTH FAIRS THROUGHOUT THE YEAR. SCREENINGS TO PREVENT SUDDEN CARDIAC DEATH IN YOUNG ATHLETES HAVE BEEN CONDUCTED ANNUALLY SINCE 2009. THE MEDICAL CENTER ALSO PARTNERS WITH BRIDGEWATER COMMONS MALL TO OFFER A CLIMATE-CONTROLLED ENVIRONMENT FOR WALKERS SEVEN DAYS A WEEK THROUGH A HEALTHHIKE WALKING PROGRAM. MEDICATION ASSISTANCE PROGRAM: SOMERSET FAMILY PRACTICE AND THE COMMUNITY HEALTH DEPARTMENT HELP CONNECT UNDERINSURED PATIENTS WITH ACCESS TO AFFORDABLE OR FREE MEDICATIONS. A REGISTERED NURSE IDENTIFIES FREE MEDICATION PROGRAMS OFFERED THROUGH PHARMACEUTICAL COMPANIES AND ASSISTS IN THE APPLICATION PROCESS OR DIRECTS PATIENTS TO LOW COST ALTERNATIVES FOR MEDICATIONS. THE NURSE ALSO HELPS EDUCATE PATIENTS ABOUT MEDICATION SAFETY. DIABETES EDUCATION: THE EL PODER SOBRE LA DIABETES PROGRAM, MANAGED BY THE COMMUNITY HEALTH DEPARTMENT, SEEKS TO IMPROVE THE HEALTH AND WELL-BEING OF UNDERSERVED HISPANICS THROUGH DIABETES PREVENTION ACTIVITIES AND DISEASE MANAGEMENT. THE PROGRAM'S GOAL IS TO HELP INDIVIDUALS MAKE BEHAVIOR CHANGES THAT POSITIVELY IMPACT THEIR LONG-TERM HEALTH. HEALTHIER SOMERSET: SOMERSET MEDICAL CENTER HAS BROUGHT TOGETHER A COALITION OF SOMERSET COUNTY HEALTH AGENCIES, EMPLOYERS AND ORGANIZATIONS SEEKING TO IMPROVE THE HEALTH OF COUNTY RESIDENTS AT HOME AND WORK THROUGH A SERIES OF HEALTH AND WELLNESS INITIATIVES. MAGIC MIRROR PLAYERS: COORDINATED THROUGH THE COMMUNITY HEALTH DEPARTMENT, THE MAGIC MIRROR PLAYERS ARE VOLUNTEER ACTORS WHO VISIT CIVIC ORGANIZATIONS, SCHOOLS, RELIGIOUS CONGREGATIONS, CORPORATIONS AND OTHER GROUPS TO HELP AUDIENCES EXPLORE LIFE'S CHALLENGES AND DISCOVER MORE ABOUT THEIR FEELINGS AND THEMSELVES. THE PLAYERS PORTRAY REAL-LIFE ISSUES, SUCH AS PARENT-CHILD CONFLICTS AND FAMILY ILLNESS, THROUGH DRAMATIC PRESENTATIONS UTILIZING IMPROVISATIONAL AND ROLE-PLAYING TECHNIQUES. PERFORMANCES ARE FOLLOWED BY FACILITATED GROUP DISCUSSIONS AND INFORMATION REGARDING BEHAVIORAL HEALTH SERVICES AVAILABLE WITHIN THE COMMUNITY. SOMERSET MEDICAL CENTER HAS DEDICATED SUBSTANTIAL RESOURCES TO IMPROVING THE HEALTH AND WELLNESS OF SOMERSET COUNTY RESIDENTS THROUGH HEALTH SCREENINGS, EDUCATIONAL PROGRAMS AND COMMUNITY OUTREACH EFFORTS TO CHILDREN, ADULTS AND SENIORS. THESE PROGRAMS, OFFERED THROUGH THE MEDICAL CENTER'S COMMUNITY HEALTH DEPARTMENT, REACH 39,000 PEOPLE EACH YEAR.
CORE FORM, PART III; STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS	TOBACCO QUIT CENTER ================== SMC'S TOBACCO DEPENDENCY TREATMENT PROGRAM ENLISTS A COMPREHENSIVE APPROACH TO HELP PATIENTS KICK THE SMOKING HABIT SAFELY AND SUCCESSFULLY. IN FACT, 73 PERCENT OF SMOKERS WHO SET A QUIT DATE AND COMPLETED TREATMENT AT THE QUIT CENTER WERE TOBACCO FREE AT THEIR SIX-MONTH FOLLOW-UP. THE PROGRAM INCLUDES AN EVALUATION, COUNSELING AND, WHEN NEEDED, PHARMACOTHERAPY TO HELP DEAL WITH NICOTINE WITHDRAWAL SYMPTOMS. IT ALSO ADDRESSES ISSUES THAT CAN ACCOMPANY TOBACCO DEPENDENCY, SUCH AS DEPRESSION, EATING DISORDERS, FEARS OF WEIGHT GAIN, ANXIETY, SPOUSAL PROBLEMS AND WORK-RELATED STRESS. TREATMENTS ARE TAILORED TO EACH PATIENT'S NEEDS AND CAN BE COUPLED WITH ONE-ON-ONE EDUCATION AND MOTIVATIONAL TECHNIQUES. SOMERSET MEDICAL CENTER'S COMMITMENT TO THE COMMUNITY IS INTEGRATED INTO EVERY AREA OF PROGRAMMING. THIS COMMITMENT IS SEEN CLEARLY IN THE ACTIVITIES AND PROJECTS THAT ARE PLANNED TO MEET IDENTIFIED HEALTH NEEDS, TO FORM PARTNERSHIPS TO MEET THESE NEEDS AND TO IMPROVE THE HEALTH AND QUALITY OF LIFE OF THOSE THAT WE SERVE. EMERGENCY MEDICAL SERVICES ========================== SOMERSET MEDICAL CENTER HAS PROVIDED ADVANCED LIFE SUPPORT SERVICES TO SOMERSET COUNTY SINCE 1982. SOMERSET MEDICAL CENTER'S THREE MOBILE INTENSIVE CARE UNITS RESPOND TO OVER 7,500 REQUESTS FOR SERVICE ANNUALLY. THROUGH A SHARED SERVICES AGREEMENT WITH NEIGHBORING COMMUNITIES, SOMERSET MEDICAL CENTER ALSO PROVIDES PRIMARY AMBULANCE COVERAGE FOR MANVILLE AND RARITAN, BACKUP AMBULANCE COVERAGE FOR SOUTH BOUND BROOK AND BRIDGEWATER. IN ADDITION, THE MEDICAL CENTER PROVIDES DAYTIME AMBULANCE COVERAGE FOR BEDMINSTER AND FAR HILLS AND DAYTIME COVERAGE FOR SOUTH PLAINFIELD AND STAFFS TWO COUNTY-WIDE UNITS AVAILABLE TO RESPOND ANYWHERE IN SOMERSET COUNTY TO SUPPLEMENT COVERAGE BY VOLUNTEER RESCUE SQUADS. IN 2007, THE MEDICAL CENTER BEGAN OFFERING A NON-EMERGENCY AMBULANCE TRANSPORT SERVICE TO TRANSPORT DISCHARGED PATIENTS BETWEEN THE MEDICAL CENTER AND NURSING HOMES, ASSISTED LIVING FACILITIES, REHABILITATION CENTERS AND OTHER HEALTHCARE FACILITIES. IN 2009, SOMERSET MEDICAL CENTER'S EMERGENCY MEDICAL SERVICES (EMS) DEPARTMENT BECAME ONE OF THE FIRST IN NEW JERSEY TO BEGIN ADMINISTERING THERAPEUTIC HYPOTHERMIA - ONE OF THE MOST PROMISING NEW ADVANCES IN THE TREATMENT OF CARDIAC ARREST PATIENTS - BEFORE PATIENTS EVEN ARRIVE AT THE HOSPITAL. THIS PROCEDURE HAS BEEN SHOWN TO INCREASE SURVIVAL RATES AND MINIMIZE BRAIN DAMAGE IN PATIENTS RESUSCITATED AFTER A CARDIAC ARREST. THE SOONER THERAPEUTIC HYPOTHERMIA IS ADMINISTERED, THE MORE LIKELY THE PATIENT WILL BE ABLE TO PRESERVE BRAIN FUNCTION. IN ORDER TO SUPPORT LOCAL RESCUE SQUADS WITH THE ADDITION OF TRAINED VOLUNTEERS, THE MEDICAL CENTER'S EMS DEPARTMENT DEVELOPED AN EMERGENCY MEDICAL TECHNICIAN TRAINING PROGRAM FOR HIGH SCHOOL STUDENTS IN PARTNERSHIP WITH SOMERSET COUNTY BOARD OF CHOSEN FREEHOLDERS, SOMERSET COUNTY VOCATIONAL & TECHNICAL HIGH SCHOOL, SOMERSET COUNTY EMS CHIEF OFFICERS ASSOCIATION, RARITAN VALLEY COMMUNITY COLLEGE AND VOLUNTEER FIRST AID SQUADS IN SOMERSET COUNTY. THE CLASS IS THE ONLY ONE OF ITS KIND IN THE STATE AFFILIATED WITH A HOSPITAL. STUDENTS, WHO COMPLETE THE 16-WEEK CLASS, EARN SIX COLLEGE CREDITS TRANSFERABLE TO RARITAN VALLEY COMMUNITY COLLEGE. MANY OF THE GRADUATES OF THE CLASS NOW SERVE ON VOLUNTEER RESCUE SQUADS. THE MEDICAL CENTER'S EMERGENCY MEDICAL SERVICES DEPARTMENT ALSO PROVIDES A COMPREHENSIVE RANGE OF TRAINING PROGRAMS YEAR-ROUND FOR AREA RESCUE SQUAD MEMBERS AND COMMUNITY RESIDENTS, INCLUDING CPR AND FIRST AID CLASSES. GATEWAY TO HEALTH INFORMATION ============================= AS PART OF ITS COMMITMENT TO WELLNESS EDUCATION, SMC MAINTAINS AN EXTENSIVE COLLECTION OF HEALTH INFORMATION RESOURCES AVAILABLE TO ALL MEMBERS OF THE COMMUNITY. THE HOSPITAL CAMPUS HOUSES A COMPREHENSIVE MEDICAL LIBRARY WITH THE LATEST MEDICAL REFERENCE TEXTS AND PERIODICALS, AS WELL AS INTERNET ACCESS TO A WORLDWIDE MEDICAL INFORMATION NETWORK. THE FACILITY IS OPEN TO THE PUBLIC, HEALTHCARE PROFESSIONALS AND HOSPITAL EMPLOYEES ON WEEKDAYS FROM 8 A.M. TO 4 P.M. THE MEDICAL CENTER ALSO INVITES THE COMMUNITY TO RESEARCH AND EXPLORE HEALTH ISSUES ON ITS WEB SITE AT WWW.SOMERSETMEDICALCENTER.COM. THE SITE OFFERS A BROAD SPECTRUM OF HEALTH TIPS AND FEATURES, FACTS ON MEDICAL CONDITIONS AND INJURIES, DRUG INFORMATION AND A COMPLETE MEDICAL DICTIONARY. VISITORS CAN EVEN REVIEW VARIOUS MEDICAL PROCEDURES, CALCULATE THEIR OWN BODY MASS INDEX, AND SUBSCRIBE TO THE HOSPITAL'S FREE COMMUNITY MAGAZINE - HEALTHY EDITION OR ITS FREE E-NEWSLETTERS, HEALTHY LIVING OR MY BABY EXPECTATIONS. IN ADDITION, THE STEEPLECHASE CANCER CENTER ALSO OFFERS A RESOURCE LIBRARY FOR PATIENTS AND THEIR FAMILIES WHO ARE INTERESTED IN RESEARCHING THEIR DISEASE OR LOOKING FOR ADDITIONAL INFORMATION ABOUT THEIR TREATMENTS. THE LIBRARY OFFERS BOOKS, PERIODICALS AND INTERNET ACCESS. PHYSICIAN OUTREACH ================== SMC'S FAMILY PRACTICE RESIDENTS, AFFILIATED WITH SOMERSET FAMILY PRACTICE, AID YOUTHS IN THE COMMUNITY THROUGH ADDITIONAL OUTREACH, INCLUDING MISSIONS TO HONDURAS TO PROVIDE CARE. THESE MISSIONS NOT ONLY AID THOSE LESS FORTUNATE OUTSIDE OUR COUNTRY BUT ALSO HAVE ENHANCED THE CARE THAT WE PROVIDE TO OUR PATIENTS AT SOMERSET FAMILY PRACTICE CENTER. THE PHYSICIANS ALSO PARTICIPATE IN CAREER DAYS, HEALTH FAIRS AND ADMINISTER FLU SHOTS TO CITIZENS OF SEVERAL MUNICIPALITIES. PROFESSIONAL EDUCATION ====================== SMC ACTIVELY SUPPORTS HEALTHCARE PROFESSIONALS IN THEIR QUEST TO REMAIN ON TOP OF THEIR FIELDS. THE HOSPITAL IS ACCREDITED BY THE MEDICAL SOCIETY OF NEW JERSEY AND OTHER GOVERNING ASSOCIATIONS TO SPONSOR ONGOING EDUCATIONAL OPPORTUNITIES, INCLUDING CME(CONTINUING MEDICAL EDUCATION) COURSES FOR PHYSICIANS, CEU (CONTINUING EDUCATION UNITS) FOR NURSES, AND VARIOUS ADVANCED LIFE SUPPORT AND SPECIALTY CLASSES FOR EMERGENCY MEDICAL TECHNICIANS AND OTHER HEALTHCARE PROFESSIONALS. NURSES PRACTICING IN THE COMMUNITY SETTING, I.E., FAITH-BASED COMMUNITY NURSES AND SCHOOL NURSES ARE INVITED TO ATTEND SPECIFIC COURSES THAT OFFER CONTINUING EDUCATION CREDITS. STUDENT VOLUNTEER/EDUCATION PROGRAMS ==================================== ASPIRING DOCTORS, NURSES AND HEALTHCARE PROFESSIONALS ARE TREMENDOUSLY REWARDED THROUGH STUDENT VOLUNTEER OPPORTUNITIES AT SMC. HUNDREDS OF TEENS AND YOUNG ADULTS HAVE DONATED THEIR SUMMERS TO LEARNING MORE ABOUT HOSPITALS AND THEIR INTENDED CAREERS, WHILE GIVING BACK TO THEIR COMMUNITY. THE MEDICAL CENTER OFFERS A NURSE EXTERN PROGRAM FOR NURSING SCHOOL STUDENTS, A BRIDGE TO EMPLOYMENT PROGRAM FOR STUDENTS CONSIDERING HEALTHCARE CAREERS, A MONTH-LONG SENIOR PRACTICUM FOR HIGH SCHOOL STUDENTS INTERESTED IN HEALTH CAREERS, AND A TOUR PROGRAM FOR HIGH SCHOOL STUDENTS TO HELP INCREASE AWARENESS OF THE MANY HEALTHCARE CAREERS AVAILABLE. A VOLUNTEER/INTERNSHIP PROGRAM IS AVAILABLE FOR COLLEGE STUDENTS AND A VOLUNTEER PROGRAM FOR THOSE INTERESTED IN CLINICAL OR GENERAL SUPPORT AREAS. IN ADDITION TO TRAINING AND EDUCATING VOLUNTEERS TO THE VARIETY OF POSITIONS AVAILABLE TO THEM, THE VOLUNTEER SERVICES DEPARTMENT ALSO PARTNERS WITH AREA HIGH SCHOOLS AND STATE ORGANIZATIONS TO PROVIDE WEEKLY VOLUNTEER OPPORTUNITIES FOR DEVELOPMENTALLY DELAYED OR PHYSICALLY DISABLED STUDENTS TO LEARN SKILLS AND GAIN WORK EXPERIENCE.
CORE FORM, PART III; QUESTION 4D	EXPENSES INCURRED IN PROVIDING VARIOUS OTHER MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. PLEASE REFER TO THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT INCLUDED IN SCHEDULE O.
CORE FORM, PART VI, SECTION A; QUESTION 4	EFFECTIVE WITH THE CLOSE OF BUSINESS ON MAY 31, 2014, THE MEDICAL CENTER WAS STATUTORILY MERGED INTO ROBERT WOOD JOHNSON UNIVERSITY HOSPITAL, AN INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT TEACHING HOSPITAL.
CORE FORM, PART VI, SECTION A; QUESTIONS 6 & 7	SOMERSET HEALTH CARE CORPORATION ("SHCC") IS THE SOLE MEMBER OF THIS ORGANIZATION. SHCC HAS THE RIGHT TO ELECT THE MEMBERS OF THIS ORGANIZATION'S BOARD OF TRUSTEES AND HAS CERTAIN RESERVED POWERS AS DEFINED IN THIS ORGANIZATION'S BYLAWS.
CORE FORM, PART VI, SECTION B; QUESTION 11B	THE ORGANIZATION'S FEDERAL FORM 990 WAS PROVIDED TO EACH MEMBER OF ITS GOVERNING BODY PRIOR TO FILING WITH THE INTERNAL REVENUE SERVICE ("IRS"). THE ORGANIZATION'S BOARD OF TRUSTEES HAS DELEGATED TO ITS ADVISORY COMMITTEE THE RESPONSIBILITY TO OVERSEE AND COORDINATE THE FEDERAL FORM 990 PREPARATION, REVIEW AND FILING PROCESS. AS PART OF THE TAX RETURN PREPARATION PROCESS THE ORGANIZATION HIRED A PROFESSIONAL CPA FIRM WITH EXPERIENCE AND EXPERTISE IN BOTH HEALTHCARE AND NOT-FOR-PROFIT TAX RETURN PREPARATION, TO PREPARE THE FEDERAL FORM 990. THE CPA FIRM'S TAX PROFESSIONALS WORKED CLOSELY WITH THE ORGANIZATION'S FINANCE PERSONNEL AND VARIOUS OTHER INDIVIDUALS OF THE ORGANIZATION TO OBTAIN THE INFORMATION NEEDED IN ORDER TO PREPARE A COMPLETE AND ACCURATE TAX RETURN. THE CPA FIRM PREPARED A DRAFT FEDERAL FORM 990 AND FURNISHED IT TO THE ORGANIZATION'S FINANCE PERSONNEL AND OTHER INDIVIDUALS FOR THEIR REVIEW. THE ORGANIZATION'S FINANCE PERSONNEL AND OTHER INDIVIDUALS REVIEWED THE DRAFT FEDERAL FORM 990 AND DISCUSSED QUESTIONS AND COMMENTS WITH THE CPA FIRM. REVISIONS WERE MADE TO THE DRAFT FEDERAL FORM 990 WHERE NECESSARY AND A FINAL DRAFT WAS FURNISHED BY THE CPA FIRM TO THE ORGANIZATION'S FINANCE PERSONNEL AND VARIOUS OTHER INDIVIDUALS FOR FINAL REVIEW AND APPROVAL PRIOR TO PROVIDING IT TO EACH VOTING MEMBER OF ITS GOVERNING BODY AND FILING WITH THE IRS.
CORE FORM, PART VI, SECTION B; QUESTION 12	THE ORGANIZATION REGULARLY MONITORS AND ENFORCES COMPLIANCE WITH ITS CONFLICT OF INTEREST POLICY. ANNUALLY ALL MEMBERS OF THE BOARD OF TRUSTEES, OFFICERS, SENIOR MANAGEMENT AND OTHER KEY PERSONNEL ARE REQUIRED TO REVIEW THE EXISTING CONFLICT OF INTEREST POLICY AND COMPLETE A QUESTIONNAIRE. THE COMPLETED QUESTIONNAIRES ARE RETURNED TO THE ORGANIZATION'S VICE PRESIDENT OF REGULATORY AFFAIRS/CHIEF COMPLIANCE OFFICER FOR REVIEW. THEREAFTER THE VICE PRESIDENT OF REGULATORY AFFAIRS/CHIEF COMPLIANCE OFFICER PREPARES A SUMMARY OF THE COMPLETED QUESTIONNAIRES WHICH CONTAINS INFORMATION DISCLOSED ON AN INDIVIDUAL BY INDIVIDUAL BASIS. THIS SUMMARY IS THEN PROVIDED TO THE ORGANIZATION'S PRESIDENT/CHIEF EXECUTIVE OFFICER FOR REVIEW. THEREAFTER, THE PRESIDENT/CHIEF EXECUTIVE OFFICER OF THE ORGANIZATION PRESENTS THIS SUMMARY TO SOMERSET MEDICAL CENTER'S AUDIT AND COMPLIANCE COMMITTEE OF THE BOARD OF TRUSTEES FOR ITS REVIEW AND DISCUSSION.
CORE FORM, PART VI, SECTION B; QUESTION 15	DURING THE SHORT PERIOD JANUARY 1, 2014 THROUGH ITS STATUTORY MERGER INTO ROBERT WOOD JOHNSON UNIVERSITY HOSPITAL ON MAY 31, 2014, THE ORGANIZATION'S BOARD OF TRUSTEES HAD AN EXECUTIVE COMPENSATION COMMITTEE ("COMMITTEE"). THE COMMITTEE HAS ADOPTED A WRITTEN EXECUTIVE COMPENSATION PHILOSOPHY WHICH IT FOLLOWS WHEN IT REVIEWS OF THE COMPENSATION AND BENEFITS OF THE ORGANIZATION'S SENIOR MANAGEMENT, INCLUDING THE PRESIDENT/CHIEF EXECUTIVE OFFICER. THE COMMITTEE REVIEWS THE "TOTAL COMPENSATION" OF THE INDIVIDUALS WHICH IS INTENDED TO INCLUDE BOTH CURRENT AND DEFERRED COMPENSATION AND ALL EMPLOYEE BENEFITS, BOTH QUALIFIED AND NON-QUALIFIED. THE COMMITTEE'S REVIEW IS DONE ON AT LEAST AN ANNUAL BASIS AND ENSURES THAT THE "TOTAL COMPENSATION" OF SENIOR MANAGEMENT OF THE ORGANIZATION IS REASONABLE. IN 2008, THE EXECUTIVE COMPENSATION COMMITTEE WAS A RECOMMENDING BODY TO THE BOARD OF TRUSTEES. THE RECOMMENDATIONS OF THE EXECUTIVE COMPENSATION COMMITTEE WERE SUBMITTED FOR FULL APPROVAL BY THE BOARD OF TRUSTEES. THE ACTIONS TAKEN BY THE COMMITTEE ENABLE THE ORGANIZATION TO RECEIVE THE REBUTTABLE PRESUMPTION OF REASONABLENESS FOR PURPOSES OF INTERNAL REVENUE CODE SECTION 4958 WITH RESPECT TO THE TOTAL COMPENSATION OF CERTAIN MEMBERS OF THE SENIOR MANAGEMENT TEAM, INCLUDING THE PRESIDENT/CHIEF EXECUTIVE OFFICER, CHIEF OPERATING OFFICER AND CHIEF FINANCIAL OFFICER. THE THREE FACTORS WHICH MUST BE SATISFIED IN ORDER TO RECEIVE THE REBUTTABLE PRESUMPTION OF REASONABLENESS ARE THE FOLLOWING: 1. THE COMPENSATION ARRANGEMENT IS APPROVED IN ADVANCE BY AN "AUTHORIZED BODY" OF THE APPLICABLE TAX-EXEMPT ORGANIZATION WHICH IS COMPOSED ENTIRELY OF INDIVIDUALS WHO DO NOT HAVE A "CONFLICT OF INTEREST" WITH RESPECT TO THE COMPENSATION ARRANGEMENT; 2. THE AUTHORIZED BODY OBTAINED AND RELIED UPON "APPROPRIATE DATA AS TO COMPARABILITY" PRIOR TO MAKING ITS DETERMINATION; AND 3. THE AUTHORIZED BODY "ADEQUATELY DOCUMENTED THE BASIS FOR ITS DETERMINATION" CONCURRENTLY WITH MAKING THAT DETERMINATION. THE COMMITTEE IS COMPRISED OF MEMBERS OF THE BOARD OF TRUSTEES EACH OF WHO ARE INDEPENDENT AND ARE FREE FROM ANY CONFLICTS OF INTEREST. THE COMMITTEE RELIED UPON APPROPRIATE COMPARABLE DATA; SPECIFICALLY THE COMMITTEE OBTAINED A WRITTEN COMPENSATION STUDY FROM AN INDEPENDENT FIRM WHICH SPECIALIZES IN THE REVIEWING OF HOSPITAL AND HEALTHCARE SYSTEM EXECUTIVE COMPENSATION AND BENEFITS. THE PEER GROUP OF EMPLOYERS TO BE CONSIDERED IN MEASURING THE COMPETITIVENESS OF THE EXECUTIVE COMPENSATION PROGRAM NECESSARY TO RECRUIT AND RETAIN TOP EXECUTIVE TALENT CONSISTS OF MAJOR TEACHING HOSPITALS IN THE NORTHEAST REGION OF THE UNITED STATES. THE COMMITTEE ADEQUATELY DOCUMENTED ITS BASIS FOR ITS DETERMINATION THROUGH THE TIMELY PREPARATION OF WRITTEN MINUTES OF THE COMPENSATION COMMITTEE MEETINGS DURING WHICH THE EXECUTIVE COMPENSATION AND BENEFITS WAS REVIEWED AND SUBSEQUENTLY APPROVED. THE ACTIONS OUTLINED ABOVE WITH RESPECT TO THE COMMITTEE AND THE ESTABLISHMENT OF THE REBUTTABLE PRESUMPTION OF REASONABLENESS ONLY APPLIES TO CERTAIN SENIOR MANAGEMENT PERSONNEL, INCLUDING BUT NOT LIMITED TO THE PRESIDENT/CHIEF EXECUTIVE OFFICER. THE COMPENSATION AND BENEFITS OF THE OTHER INDIVIDUALS CONTAINED IN THIS FORM 990 IS REVIEWED ANNUALLY BY THE PRESIDENT/CHIEF EXECUTIVE OFFICER AND SENIOR STAFF WITH ASSISTANCE FROM THE ORGANIZATION'S HUMAN RESOURCES DEPARTMENT IN CONJUNCTION WITH THE INDIVIDUAL'S JOB PERFORMANCE DURING THE YEAR AND IS BASED UPON OTHER OBJECTIVE FACTORS DESIGNED TO ENSURE THAT REASONABLE AND FAIR MARKET VALUE COMPENSATION IS PAID BY THE ORGANIZATION. OTHER OBJECTIVE FACTORS INCLUDE MARKET SURVEY DATA FOR COMPARABLE POSITIONS, INDIVIDUAL GOALS AND OBJECTIVES, PERSONNEL REVIEWS, EVALUATIONS, SELF-EVALUATIONS AND PERFORMANCE FEEDBACK MEETINGS.
CORE FORM, PART VI, SECTION C; QUESTION 19	THE ORGANIZATION HAS ISSUED TAX-EXEMPT BONDS TO FINANCE VARIOUS CAPITAL IMPROVEMENT PROJECTS, RENOVATIONS AND EQUIPMENT. IN CONJUNCTION WITH THE ISSUANCE OF THESE TAX-EXEMPT BONDS, THE ORGANIZATION'S FINANCIAL STATEMENTS WERE INCLUDED WITH THE TAX-EXEMPT BOND PROSPECTUS WHICH WAS MADE AVAILABLE TO THE GENERAL PUBLIC FOR REVIEW. THE ORGANIZATION'S FILED CERTIFICATE OF INCORPORATION AND ANY AMENDMENTS CAN BE OBTAINED AND REVIEWED THROUGH THE STATE OF NEW JERSEY DEPARTMENT OF TREASURY.
CORE FORM, PART VII AND SCHEDULE J	PART VII AND SCHEDULE J REFLECT CERTAIN BOARD MEMBERS AND OFFICERS RECEIVING COMPENSATION AND BENEFITS FROM THIS ORGANIZATION. PLEASE NOTE THIS REMUNERATION WAS FOR SERVICES RENDERED AS FULL-TIME EMPLOYEES OF THE ORGANIZATION AND NOT FOR SERVICES RENDERED AS A VOTING MEMBER OR OFFICER OF THIS ORGANIZATION'S BOARD OF TRUSTEES.
CORE FORM, PART VII, SECTION A	This organization is AN AFFILIATE WITHIN A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM ("SYSTEM"). THE SYSTEM INCLUDES BOTH FOR-PROFIT AND NOT FOR-PROFIT ORGANIZATIONS. CERTAIN BOARD OF TRUSTEE MEMBERS, OFFICERS AND/OR DIRECTORS LISTED ON CORE FORM, PART VII AND SCHEDULE J OF THIS FORM 990 MAY HOLD SIMILAR POSITIONS WITH BOTH THIS ORGANIZATION AND OTHER AFFILIATES WITHIN THE SYSTEM. THE HOURS SHOWN ON THIS FORM 990, FOR BOARD MEMBERS WHO RECEIVE NO COMPENSATION FOR SERVICES RENDERED IN A NON-BOARD CAPACITY, REPRESENT THE ESTIMATED HOURS DEVOTED PER WEEK FOR THIS ORGANIZATION. TO THE EXTENT THESE INDIVIDUALS SERVE AS A MEMBER OF THE BOARD OF TRUSTEES OF OTHER RELATED ORGANIZATIONS IN THE SYSTEM, THEIR RESPECTIVE HOURS PER WEEK PER ORGANIZATION ARE APPROXIMATELY THE SAME AS THE HOURS REFLECTED ON PART VII OF THIS FORM 990. THE HOURS REFLECTED ON PART VII OF THIS FORM 990, FOR BOARD MEMBERS WHO RECEIVE COMPENSATION FOR SERVICES RENDERED IN A NON-BOARD CAPACITY AND PAID OFFICERS, REFLECT TOTAL HOURS WORKED PER WEEK ON BEHALF OF THE SYSTEM; NOT SOLELY THIS ORGANIZATION.
CORE FORM, PART XI; QUESTION 9	OTHER CHANGES IN FUND BALANCE INCLUDE: - LOSS ON DEFEASEMENT OF LONG-TERM DEBT - ($3,847,132); - PENSION LIABILITY ADJUSTMENT - ($5,120,418); - FUND BALANCE TRANSFER OF SOMERSET HEALTH CARE CORPORATION; A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION - ($990,772); - NET CHANGE IN INTEREST IN NET ASSETS OF SOMERSET MEDICAL CENTER FOUNDATION, INC.; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION - ($212,323); AND - STATUTORY MERGER INTO ROBERT WOOD JOHNSON UNIVERSITY HOSPITAL; AN INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT TEACHING HOSPITAL - ($31,577,509).
CORE FORM, PART XII; QUESTION 2	AN INDEPENDENT CPA FIRM AUDITED THE FINANCIAL STATEMENTS OF THE TAXPAYER FOR THE SHORT PERIOD ENDED MAY 31, 2014 AND YEAR ENDED DECEMBER 31, 2013; RESPECTIVELY, AND ISSUED A CERTIFIED OPINION ON THOSE AUDITED FINANCIAL STATEMENTS. AN UNQUALIFIED OPINION WAS ISSUED BY THE INDEPENDENT CPA FIRM EACH YEAR. THE TAXPAYER'S AUDIT AND COMPLIANCE COMMITTEE OF ITS BOARD OF TRUSTEES ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND THE SELECTION OF AN INDEPENDENT AUDITOR.

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

Cat. No. 51056K

Schedule O (Form 990 or 990-EZ) 2014

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" on Form 990, Part IV, line 33, 34, 35b, 36, or 37.
MediumBullet

Attach to Form 990.
MediumBullet

Information about Schedule R (Form 990) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2014

Open to Public Inspection

Name of the organization

SOMERSET MEDICAL CENTER

Employer identification number

22-1487350

Part I

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

(a) Name, address, and EIN (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

Part II

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

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

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

Cat. No. 50135Y

Schedule R (Form 990) 2014

Page 2

Part III

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

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

Part IV

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

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(e) Type of entity (C corp, S corp, or trust)	(f) Share of total income	(g) Share of end-of-year assets	(h) Percentage ownership	(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) EOS INC 110 REHILL AVENUE SOMERVILLE,NJ08876 30-0382075	INACTIVE	NJ	NA	C CORP.					No
(2) NEW JERSEY HEALTH INC 110 REHILL AVENUE SOMERVILLE,NJ08876 22-3339824	INACTIVE	NJ	NA	C CORP.					No
(3) NEW JERSEY HEALTHCARE ASSOC PC 110 REHILL AVENUE SOMERVILLE,NJ08876 22-3339827	INACTIVE	NJ	NA	C CORP.					No
(4) NJ MGT SERVICES ORGANIZATION 110 REHILL AVENUE SOMERVILLE,NJ08876 22-3339486	INACTIVE	NJ	NA	C CORP.					No
(5) SHC ENTERPRISES INC 110 REHILL AVENUE SOMERVILLE,NJ08876 22-2665595	MANAGEMENT	NJ	NA	C CORP.					No
(6) SOMERSET REALTY GROUP INC 110 REHILL AVENUE SOMERVILLE,NJ08876 22-3269525	REAL ESTATE	NJ	NA	C CORP.					No
(7) SOMERSET STAFFING CORP 110 REHILL AVENUE SOMERVILLE,NJ08876 11-3829651	INACTIVE	NJ	NA	C CORP.					No
(8) WARREN INTERNAL MEDICINE PC 110 REHILL AVENUE SOMERVILLE,NJ08876 35-2366107	MEDICAL SVCS.	NJ	SMC	C CORP.			100.000 %	Yes
(9) FRANKLIN MEDICAL GROUP PC 110 REHILL AVENUE SOMERVILLE,NJ08876 27-2209369	MEDICAL SVCS.	NJ	SMC	C CORP.			100.000 %	Yes
(10) ACUCARE PHYSICIANS PC 110 REHILL AVENUE SOMERVILLE,NJ08876 22-3566010	MEDICAL SVCS.	NJ	SMC	C CORP.			100.000 %	Yes
(11) SOMERSET MEDICAL CARE PARTNERS PC 110 REHILL AVENUE SOMERVILLE,NJ08876 38-3834110	MEDICAL SVCS.	NJ	SMC	C CORP.			100.000 %	Yes
(12) SOMERSET CARDIOLOGY PARTNERS PC 110 REHILL AVENUE SOMERVILLE,NJ08876 90-0668649	MEDICAL SVCS.	NJ	SMC	C CORP.			100.000 %	Yes
(13) SOMERSET CARDIOLOGY GROUP PC 110 REHILL AVENUE SOMERVILLE,NJ08876 37-1640531	MEDICAL SVCS.	NJ	SMC	C CORP.			100.000 %	Yes
(14) SOMERSET CHEST & INTENSIVE CARE MED PC 110 REHILL AVENUE SOMERVILLE,NJ08876 38-3848048	MEDICAL SVCS.	NJ	SMC	C CORP.			100.000 %	Yes
(15) SOMERSET MEDICAL CENTER URGENT CARE PC 110 REHILL AVENUE SOMERVILLE,NJ08876 90-0929065	MEDICAL SVCS.	NJ	SMC	C CORP.			100.000 %	Yes

Schedule R (Form 990) 2014

Page 3

Part V

Transactions With Related Organizations Complete if the organization answered "Yes" on 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) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

Yes

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

Yes

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

Yes

f 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) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

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) . . . . . . . . . . . . . . . . . . . .

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

Yes

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

Yes

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

Yes

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

Yes

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

Yes

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 related organization	(b) Transaction type (a-s)	(c) Amount involved	(d) Method of determining amount involved
(1) SOMERSET HEALTH CARE CORPORATION	LNOPR	970,186	COST
(2) SOMERSET MEDICAL CENTER FOUNDATION INC	LNOPR	1,214,496	COST
(3) SOMERSET MEDICAL CENTER FOUNDATION INC	C	461,031	COST

Schedule R (Form 990) 2014

Page 4

Part VI

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

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

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

Schedule R (Form 990) 2014

Page 5

Part VII

Supplemental Information

Provide additional information for responses to questions on Schedule R (see instructions).

Return Reference

Explanation

SCHEDULE R, PART IV

SOMERSET MEDICAL CENTER IS THE SOLE MEMBER OF THE PROFESSIONAL CORPORATIONS LISTED IN SCHEDULE R, PART IV WHICH EXIST THROUGH A PHYSICIAN NOMINEE AGREEMENT DUE TO STATE OF NEW JERSEY CORPORATE PRACTICE OF MEDICINE PROHIBITION RULES AND REGULATIONS.

SCHEDULE R, PART V

SOMERSET HEALTH CARE CORPORATION AND AFFILIATES IS A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM WHICH INCLUDES SOMERSET MEDICAL CENTER. SOMERSET MEDICAL CENTER ROUTINELY PAYS EXPENSES FOR VARIOUS AFFILIATES WITHIN THE SYSTEM IN THE ORDINARY COURSE OF BUSINESS. THESE RELATED PARTY TRANSACTIONS ARE RECORDED ON THE REVENUE/EXPENSE AND BALANCE SHEET STATEMENTS OF THIS ORGANIZATION AND ITS AFFILIATES. THESE ENTITIES WORK TOGETHER TO DELIVER HIGH QUALITY HEALTHCARE AND WELLNESS SERVICES TO THE COMMUNITIES IN WHICH THEY ARE SITUATED.

Schedule R (Form 990) 2014

Additional Data

Software ID:
Software Version:

1	Briefly describe the organization’s mission or most significant activities: THE MISSION AT SOMERSET MEDICAL CENTER IS TO PROVIDE COMPREHENSIVE HEALTHCARE SERVICES OF THE HIGHEST QUALITY TO OUR REGION IN A PATIENT-FIRST ENVIRONMENT.
2	Check this box
3	Number of voting members of the governing body (Part VI, line 1a) ........	3	14
4	Number of independent voting members of the governing body (Part VI, line 1b) .....	4	12
5	Total number of individuals employed in calendar year 2014 (Part V, line 2a) ......	5	2,377
6	Total number of volunteers (estimate if necessary) .............	6	466
7a	Total unrelated business revenue from Part VIII, column (C), line 12 ........	7a	152,921
b	Net unrelated business taxable income from Form 990-T, line 34 .........	7b	-35,580

		Prior Year	Current Year
8	Contributions and grants (Part VIII, line 1h) .........	3,386,792	944,392
9	Program service revenue (Part VIII, line 2g) .........	244,198,935	105,677,570
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	1,229,912	-211,779
11	Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)	2,074,160	855,328
12	Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)...................	250,889,799	107,265,511
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...	23,016	59,708
14	Benefits paid to or for members (Part IX, column (A), line 4).....	0	0
15	Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10)	135,393,618	63,276,164
16a	Professional fundraising fees (Part IX, column (A), line 11e).....	0	0
b	Total fundraising expenses (Part IX, column (D), line 25) 0
17	Other expenses (Part IX, column (A), lines 11a–11d, 11f–24e)....	119,345,428	59,205,658
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	254,762,062	122,541,530
19	Revenue less expenses. Subtract line 18 from line 12.......	-3,872,263	-15,276,019
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16).............	221,587,533	0
21	Total liabilities (Part X, line 26).............	165,908,102	0
22	Net assets or fund balances. Subtract line 21 from line 20.....	55,679,431	0

Sign Here

	Signature of officer	Date

	Type or print name and title


4a	(Code: ) (Expenses $ 6,460,618 including grants of $ 0 ) (Revenue $ 5,067,920 )
	SOMERSET MEDICAL CENTER'S OPERATING ROOM SUPPORTS BOTH INPATIENT AND OUTPATIENT PROCEDURES AND PERFORMS MORE THAN 8,000 SURGERIES EACH YEAR. THERE ARE 19 OPERATING SUITES. ALL FEATURE HIGH DEFINITION DIGITAL CAMERAS AND THE LATEST AUDIO-VISUAL TECHNOLOGIES USED FOR CONVENTIONAL, LAPAROSCOPIC AND ROBOTIC SURGERIES. OUR OR NURSES ARE CERTIFIED IN THEIR RESPECTIVE SPECIALTIES AND OFFER THE BEST CARE AND EXPERTISE IN THEIR FIELD. OTHER SURGICAL ENHANCEMENTS INCLUDED NAVIGATION TECHNOLOGY FOR ORTHOPEDIC AND NEUROLOGICAL CASES, WHICH PROMOTE MORE ACCURACY AND PREVENT DAMAGE TO SURROUNDING TISSUES. THE MEDICAL CENTER ALSO OFFERS THE LATEST "STATE-OF-THE-ART" TECHNOLOGY FOR SINUS SURGERY. THE ROBOTICS PROGRAM AT SMC HAS THE LATEST IN MIS ROBOTIC TECHNOLOGY. THE SPECIALLY TRAINED OR STAFF OF THE ROBOTIC TEAM BEGAN CARING FOR THEIR FIRST PATIENTS IN THE BEGINNING OF JUNE 2010. THE SMC GI CENTER IS ALSO STAFFED BY SPECIALLY TRAINED NURSES WHO ARE CERTIFIED IN GASTROENTEROLOGY AND ARE PART OF A COLLABORATIVE PERIOPERATIVE TEAM WORKING WITH THE PHYSICIANS TO MAKE THE PATIENT'S EXPERIENCE A SAFE AND PLEASANT VISIT. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT FOR ADDITIONAL INFORMATION. THE ANESTHESIOLOGISTS HAVE ACQUIRED AND PERFORMED A NEW STATE-OF-THE-ART BLOCK TECHNIQUE. THEY UTILIZE ULTRASOUND TO VISUALIZE THE NERVES TO PERFORM ANESTHESIA AND MANAGE PAIN. SOMERSET MEDICAL CENTER HAS RECEIVED THE JOINT COMMISSION'S GOLD SEAL OF APPROVAL FOR TOTAL KNEE AND TOTAL HIP REPLACEMENT SURGERY. THE MEDICAL CENTER HAS ALSO BEEN HONORED WITH THE 2011 HEALTHGRADES ORTHOPEDIC SURGERY EXCELLENCE AWARD, RANKING IN THE TOP 10 PERCENT IN THE NATION FOR ORTHOPEDIC CARE. PLEASE REFER TO THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT INCLUDED IN SCHEDULE O.

4b	(Code: ) (Expenses $ 1,626,096 including grants of $ 0 ) (Revenue $ 2,634,444 )
	The Somerset Medical Center Cardiac Catheterization Laboratory Department provides twenty-four hour/seven day a week services and performs invasive cardiovascular and radiological diagnostic and therapeutic procedures to meet the needs of the community. All patients referred to the Cardiac Cath Lab Procedures will have their procedure performed regardless of race, ethnicity, religion, national origin, citizenship, age, sex, pre-existing medical condition, physical or mental handicap, insurance status, economic status or ability to pay for medical services. The physician and staff strive for optimal patient safety and optimal data collection within the framework of the procedures performed. The Cardiac Catheterization Laboratory cooperateS with other departments/care settings of Somerset Medical Center and with members of the outside medical community in providing quality patient care. In general, adult patients (18 years and older) with clinical indications for procedures approved are to be candidates for admission. Adult procedures which may be done in the Cardiac Catheterization Laboratory include, but are not limited to the following: - Right heart catheterization - Left heart catheterization - Angiogram of coronary arteries and bypass grafts - Percutaneous Coronary Intervention (PCI) - Pericardiocentesis - IVC FILTERS - IMPELLA INSERTION - Intra Coronary and Peripheral administration of thrombolytic agents - Temporary and Permanent Pacemaker insertion - Intra-aortic balloon pump insertion (IABP) - Peripheral angiograms and interventional procedures - BEDSIDE PICC Team Cardiac Catheterization Laboratory cases are scheduled from 6:30 AM until 5:30 PM Monday through Friday. Emergency service is provided seven days a week, 24 hours a day by on-call staff. PLEASE REFER TO THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT INCLUDED IN SCHEDULE O.

4c	(Code: ) (Expenses $ 1,826,154 including grants of $ 0 ) (Revenue $ 504,406 )
	THE MATERNAL CHILD HEALTH (MCH) DEPARTMENT AT SOMERSET MEDICAL CENTER IS COMMITTED TO PROMOTING THE TOTAL WELLBEING OF THE FAMILY UNIT BEFORE, DURING AND AFTER DELIVERY. OUR LEVEL II NURSERY ALSO CAN PROVIDE CARE TO OUR INFANTS WHO REQUIRE CLOSE OBSERVATION, MONITORING AND INTERVENTIONS. THE MCH CONSISTS OF SEVERAL UNITS THAT COMPLIMENT DIFFERENT AREAS OF CARE FOR OUR CHILDBEARING FAMILIES AND THEIR LOVED ONES. OUR MATERNITY COMMUNITY EDUCATION DEPARTMENT OFFERS A WIDE VARIETY OF CHILDBIRTH, BREASTFEEDING, PARENTING, SIBLING AND GRANDPARENT CLASSES. LABOR AND DELIVERY PROVIDES EXPERT CLINICAL SUPPORT FOR OUR LABORING CLIENTS WITH A VARIETY OF DIAGNOSIS AND CONDITIONS ADHERING TO CRITERIA FOR INTERMEDIATE CARE. WE OFFER 24 HOUR IN HOUSE PHYSICIAN COVERAGE FOR OBSTETRICS, NEONATOLOGY AND ANESTHESIA. POST-PARTUM CARE IS PROVIDED IN OUR PRIVATE ROOMS. MCH HAS MET OR EXCEEDED ALL QUALITY BENCHMARKS FOR FALLS, INFECTION, AND CUSTOMER SATISFACTION. OUR DEPARTMENT ALSO HAS 80% OF NURSES NATIONALLY CERTIFIED IN THEIR SPECIALTY. THE CLINICAL KNOWLEDGE OF BEST PRACTICE AND THE COLLABORATIVE EFFORT WITH OUR PHYSICIANS DRAMATICALLY REDUCED ELECTIVE INDUCTIONS BELOW 39 WEEKS. THIS REDUCTION WAS ACKNOWLEDGED BY THE LEAP FROG ORGANIZATION AND CONTRIBUTED TO SOMERSET MEDICAL CENTER'S LEAP FROG DESIGNATION. PLEASE REFER TO THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT INCLUDED IN SCHEDULE O.

4d	Other program services (Describe in Schedule O.)
	(Expenses $ 86,295,069 including grants of $ 59,708 ) (Revenue $ 97,623,721 )
4e	Total program service expenses96,207,937

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)............	3,700,087	0	0

				(A) Total revenue	(B) Related or exempt function revenue	(C) Unrelated business revenue	(D) Revenue excluded from tax under sections 512-514
1a	Federated campaigns..1a
b	Membership dues....1b
c	Fundraising events....1c
d	Related organizations...1d
e	Government grants (contributions)1e		483,361

f	All other contributions, gifts, grants, and similar amounts not included above1f		461,031

g	Noncash contributions included in lines 1a-1f:$
h	Total. Add lines 1a-1f.......			944,392
			Business Code
2a	NET PATIENT SERVICE REVENUE		541900	104,522,383	104,522,383
b	OTHER HEALTHCARE RELATED REVENUE		541900	1,155,187	1,155,187
c
d
e
f	All other program service revenue .
g	Total. Add lines 2a–2f........			105,677,570
3	Investment income (including dividends, interest, and other similar amounts).......			-357,932			-357,932
4	Income from investment of tax-exempt bond proceeds..			4,141			4,141
5	Royalties...........			0
		(i) Real	(ii) Personal
6a	Gross rents	207,244
b	Less: rental expenses
c	Rental income or (loss)	207,244	0
d	Net rental income or (loss).......			207,244			207,244
		(i) Securities	(ii) Other
7a	Gross amount from sales of assets other than inventory		142,012
b	Less: cost or other basis and sales expenses
c	Gain or (loss)		142,012
d	Net gain or (loss)..........			142,012			142,012
8a	Gross income from fundraising events (not including $ of contributions reported on line 1c). See Part IV, line 18 ..
	a
b	Less: direct expenses ...b
c	Net income or (loss) from fundraising events..			0
9a	Gross income from gaming activities. See Part IV, line 19 ...
	a
b	Less: direct expenses ...b
c	Net income or (loss) from gaming activities...			0
10a	Gross sales of inventory, less returns and allowances .
	a
b	Less: cost of goods sold ..b
c	Net income or (loss) from sales of inventory..			0
Miscellaneous Revenue			Business Code
11a	CAFETERIA		722514	371,270			371,270
b	PHYSICIAN ANSWERING SERVICE		561300	152,921		152,921
c	COFFEE SHOP		900099	85,791			85,791
d	All other revenue ....			38,102			38,102
e	Total. Add lines 11a–11d ......			648,084
12	Total revenue. See Instructions......			107,265,511	105,677,570	152,921	490,628


				(A) Beginning of year		(B) End of year
1	Cash–non-interest-bearing .............			5,270	1	0
2	Savings and temporary cash investments .........			9,453,010	2	0
3	Pledges and grants receivable, net ...........			0	3	0
4	Accounts receivable, net .............			26,497,392	4	0
5	Loans and other receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of Schedule L ..................
				0	5	0
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
				0	6	0
7	Notes and loans receivable, net .............			0	7	0
8	Inventories for sale or use ..............			4,382,194	8	0
9	Prepaid expenses and deferred charges ..........			2,262,119	9	0
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	0
b	Less: accumulated depreciation .....	10b	0	125,265,022	10c	0
11	Investments—publicly traded securities ..........			0	11	0
12	Investments—other securities. See Part IV, line 11 .....			0	12	0
13	Investments—program-related. See Part IV, line 11 .....			45,639,625	13	0
14	Intangible assets ...............			2,974,753	14	0
15	Other assets. See Part IV, line 11 ...........			5,108,148	15	0
16	Total assets. Add lines 1 through 15 (must equal line 34)......			221,587,533	16	0
17	Accounts payable and accrued expenses .........			33,816,405	17	0
18	Grants payable .................			0	18	0
19	Deferred revenue ................			4,527,457	19	0
20	Tax-exempt bond liabilities .............			99,921,284	20	0
21	Escrow or custodial account liability. Complete Part IV of Schedule D..			0	21	0
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..........			0	22	0
23	Secured mortgages and notes payable to unrelated third parties ..			319,524	23	0
24	Unsecured notes and loans payable to unrelated third parties ....			0	24	0
25	Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D....................			27,323,432	25	0
26	Total liabilities. Add lines 17 through 25.........			165,908,102	26	0
	Organizations that follow SFAS 117 (ASC 958), check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets ..............			52,545,764	27	0
28	Temporarily restricted net assets ...........			1,993,800	28	0
29	Permanently restricted net assets ...........			1,139,867	29	0
	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 ...........			55,679,431	33	0
34	Total liabilities and net assets/fund balances ........			221,587,533	34	0