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) MVSACK PRESIDENT THRU 21115........................................................................ PRESIDENT	3.00 .......................40.00	X	X	0	901,133	52,317
(2) WJ DOHERTY MD........................................................................ DIRECTOR / C	3.00 .......................40.00	X		0	500,646	10,003
(3) AMACDONALDPRESIDENT AS OF 21215........................................................................ PRESIDENT /	3.00 .......................40.00	X	X	0	283,533	1,340
(4) EPBUTLER MD........................................................................ DIRECTOR	3.00 .......................40.00	X		57,833	215,157	40,891
(5) J KEENAN........................................................................ TREASURER	3.00 .......................	X		0	0	0
(6) D WEST........................................................................ DIRECTOR	4.00 .......................	X		0	0	0
(7) RS CUMMINGS........................................................................ DIRECTOR	3.00 .......................	X		0	0	0
(8) KE HENRIKSON MD........................................................................ DIRECTOR	3.00 .......................	X		0	0	0
(9) J HERRINGTON........................................................................ DIRECTOR	4.00 .......................	X		0	0	0
(10) E GEORGE........................................................................ DIRECTOR	3.00 .......................	X		0	0	0
(11) R SWANSON JR........................................................................ DIRECTOR	3.00 .......................	X		0	0	0
(12) W LAWRENCE III........................................................................ DIRECTOR	3.00 .......................	X		0	0	0
(13) JA HACKETT SR........................................................................ DIRECTOR	3.00 .......................	X		0	0	0
(14) CP VINCZE........................................................................ DIRECTOR	3.00 .......................	X		0	0	0
(15) J KALOYANIDES........................................................................ DIRECTOR	3.00 .......................	X		0	0	0
(16) S GLASSER........................................................................ DIRECTOR	3.00 .......................	X		0	0	0
(17) G BRANDI........................................................................ DIRECTOR	3.00 .......................	X		0	0	0

(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)	(F) Estimated amount of other compensation from the organization and related organizations
(18) P BARDARO........................................................................ DIRECTPR	3.00 .......................	X				0	0	0
(19) J NANIA........................................................................ CFO/ASST. TR	3.00 .......................40.00		X			0	453,192	26,722
(20) C WHIPPLE........................................................................ ASST.CLERK/G	3.00 .......................40.00		X			0	305,636	34,445
(21) S PICHETTE........................................................................ ASST. CLERK	40.00 .......................		X			67,148	0	1,134
(22) M TURILLI........................................................................ VP-FISCAL	40.00 .......................			X		288,466	0	35,283
(23) C DRESSER........................................................................ VP-INFORMATI	40.00 .......................			X		216,494	0	22,353
(24) M PIEROG........................................................................ VO-QUALITY A	40.00 .......................			X		197,192	0	21,597
(25) N BITNER........................................................................ VP-EDUCATION	40.00 .......................			X		186,796	0	3,370
(26) J GIRAGOS........................................................................ PSYCH MD	40.00 .......................				X	274,118	0	33,983
(27) D HARNETT........................................................................ CLINICAL MD	40.00 .......................				X	259,253	0	27,074
(28) C BEISON........................................................................ PHYSICIAN -	40.00 .......................				X	238,265	0	3,163
(29) M CHOPRA........................................................................ PSYCH MD	40.00 .......................				X	231,126	0	3,666
(30) J THORPE........................................................................ ACNO	40.00 .......................				X	222,469	0	16,771

(A) Name and business address	(B) Description of services	(C) Compensation
DELPHI CONSTRUCTION INC 130 OVERLAND ROAD WALTHAM,MA02451	CONSTRUCTION	2,344,386
THE CLARO GROUP LLC 321 N CLARK STREET CHICAGO,IL60654	CONSULTING	1,910,949
SODEXHO INC & AFFILIATES PO BOX 360170 PITTSBURGH,PA152516170	MGT/CONSULTING	1,842,079
HOSPITAL MEDICINE ASSOCIATES 1 PO BOX 634850 CINCINNATI,OH45263	PHYSICIAN SVS	1,249,735
ALLIED BARTON SERVICES PO BOX 828854 PHILADELPHIA,PA191828854	SECURITY	1,191,224
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 63

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 ....
2	Grants and other assistance to domestic individuals. See Part IV, line 22 ....
3	Grants and other assistance to foreign organizations, foreign governments, and foreign individuals. See Part IV, lines 15 and 16 ............
4	Benefits paid to or for members ....
5	Compensation of current officers, directors, trustees, and key employees ....	1,406,062		1,406,062
6	Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....
7	Other salaries and wages ....	122,913,988	102,050,830	20,863,158
8	Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) ....	4,283,229	3,333,209	950,020
9	Other employee benefits .......	13,654,712	10,610,567	3,044,145
10	Payroll taxes ...........	8,865,696	6,899,285	1,966,411
11	Fees for services (non-employees):
a	Management ......	7,314,485	3,847,127	3,467,358
b	Legal .........	776,957		776,957
c	Accounting ...........	318,130		318,130
d	Lobbying ...........
e	Professional fundraising services. See Part IV, line 17
f	Investment management fees ......	219,988		219,988
g	Other (If line 11g amount exceeds 10% of line 25, column (A) amount, list line 11g expenses on Schedule O) ....	16,894,777	13,797,837	3,096,940
12	Advertising and promotion ....	1,445,989	967,338	478,651
13	Office expenses .......	42,236,740	36,689,802	5,546,938
14	Information technology ......	4,275,731		4,275,731
15	Royalties ..
16	Occupancy ...........	8,674,125	7,075,981	1,598,144
17	Travel ............	230,309	99,004	131,305
18	Payments of travel or entertainment expenses for any federal, state, or local public officials ......
19	Conferences, conventions, and meetings ....	184,394	78,142	106,252
20	Interest ...........	2,314,624	1,851,700	462,924
21	Payments to affiliates .......
22	Depreciation, depletion, and amortization .....	16,443,902	12,332,927	4,110,975
23	Insurance ..............	899,989		899,989
24	Other expenses. Itemize expenses not covered above (List miscellaneous expenses in line 24e. If line 24e amount exceeds 10% of line 25, column (A) amount, list line 24e expenses on Schedule O.)
a	DUES	1,278,926	792,167	486,759
b	MINOR EQUIP	415,599	401,022	14,577
c	LICENSES	253,311	157,591	95,720
d	BOND & BANK FINANCE CHG	209,616	209,616
e	All other expenses	1,279,835	714,845	564,990
25	Total functional expenses. Add lines 1 through 24e	256,791,114	201,908,990	54,882,124	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 .............	12,806,386	1	6,083,111
2	Savings and temporary cash investments .........	1,478,003	2	1,482,337
3	Pledges and grants receivable, net ...........		3
4	Accounts receivable, net .............	28,312,902	4	25,788,579
5	Loans and other receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of Schedule L ..................
		7,594,334	5	7,811,498
6	Loans and other receivables from other disqualified persons (as defined under section 4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employers and sponsoring organizations of section 501(c)(9) voluntary employees' beneficiary organizations (see instructions) Complete Part II of Schedule L
			6
7	Notes and loans receivable, net .............		7
8	Inventories for sale or use ..............	2,988,262	8	2,967,391
9	Prepaid expenses and deferred charges ..........	8,570,671	9	7,199,728
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	381,892,256
b	Less: accumulated depreciation .....	10b	302,510,950	75,061,744	10c	79,381,306
11	Investments—publicly traded securities ..........	180,231,546	11	192,042,729
12	Investments—other securities. See Part IV, line 11 .....	10,671,604	12	9,759,643
13	Investments—program-related. See Part IV, line 11 .....		13
14	Intangible assets ...............		14
15	Other assets. See Part IV, line 11 ...........	15,098,940	15	15,550,365
16	Total assets. Add lines 1 through 15 (must equal line 34)......	342,814,392	16	348,066,687
	17	Accounts payable and accrued expenses .........	35,820,653	17	36,396,723
18	Grants payable .................		18
19	Deferred revenue ................		19
20	Tax-exempt bond liabilities .............	92,072,881	20	115,683,171
21	Escrow or custodial account liability. Complete Part IV of Schedule D..		21
22	Loans and other payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........		22
23	Secured mortgages and notes payable to unrelated third parties ..	4,399,384	23	1,306,566
24	Unsecured notes and loans payable to unrelated third parties ....		24
25	Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D....................	32,607,044	25	29,836,801
26	Total liabilities. Add lines 17 through 25.........	164,899,962	26	183,223,261
		Organizations that follow SFAS 117 (ASC 958), check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets ..............	159,733,994	27	147,660,443
28	Temporarily restricted net assets ...........	2,818,232	28	2,732,340
29	Permanently restricted net assets ...........	15,362,204	29	14,450,643
	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 ...........	177,914,430	33	164,843,426
34	Total liabilities and net assets/fund balances ........	342,814,392	34	348,066,687

- 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

HALLMARK HEALTH SYSTEMINC

Employer identification number

04-2767880

Part I

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

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

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

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

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

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

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

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

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

An organization that normally receives a substantial part of its support from a governmental unit or from the general public described in section 170(b)(1)(A)(vi). (Complete Part II.)

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

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

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

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

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

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

An organization organized and operated exclusively for the benefit of, to perform the functions of, or to carry out the purposes of one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2). See section 509(a)(3). Check the box 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

HALLMARK HEALTH SYSTEMINC

Employer identification number

04-2767880

Organization type (check one):

Filers of:

Section:

Form 990 or 990-EZ

501(c)( ) (enter number) organization

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

527 political organization

Form 990-PF

501(c)(3) exempt private foundation

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

501(c)(3) taxable private foundation

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

General Rule

For an organization filing Form 990, 990-EZ, or 990-PF that received, during the year, 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 HALLMARK HEALTH SYSTEMINC

Part I	Contributors (see instructions). Use duplicate copies of Part I if additional space is needed.
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
RESTRICTED	,	$RESTRICTED	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 HALLMARK HEALTH SYSTEMINC

Part II	Noncash Property (see instructions). Use duplicate copies of Part II if additional space is needed.
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
Schedule B (Form 990, 990-EZ, or 990-PF) (2014)

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

Page 4

Name of organization
HALLMARK HEALTH SYSTEMINC

Employer identification number

04-2767880

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 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

HALLMARK HEALTH SYSTEMINC

Employer identification number

04-2767880

Part I

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

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

		(a)Current year	(b)Prior year	b (c)Two years back	(d)Three years back	(e)Four years back
1a	Beginning of year balance ....	18,180,436	17,542,062	17,024,911	15,730,987	16,664,200
b	Contributions ........	486,338	803,003	506,053	847,142	582,895
c	Net investment earnings, gains, and losses	-625,822	1,059,927	1,155,798	1,520,047	-431,094
d	Grants or scholarships .....
e	Other expenditures for facilities and programs ........	-857,969	-1,224,556	-1,144,700	-1,073,265	-1,085,014
f	Administrative expenses ....
g	End of year balance ......	17,182,983	18,180,436	17,542,062	17,024,911	15,730,987

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

84.100 %

Temporarily restricted endowment SchDMd Bullet

15.900 %

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		(b)Cost or other basis (other)	(c) Accumulated depreciation	(d) Book value
1a	Land .................	6,272,006		6,272,006
b	Buildings ................	166,200,510	142,735,038	23,465,472
c	Leasehold improvements ............	10,034,633	7,535,427	2,499,206
d	Equipment ................	195,253,059	152,240,485	43,012,574
e	Other .................	4,132,048		4,132,048
Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10(c).).......				79,381,306

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
PENSION LIABILITY		13,207,526
ESTIMATED SETTLEMENTS 3RD PARTY PAY		7,659,146
INSURANCE & OTHER LT LIABILITIES		3,841,057
DUE TO AFFILIATES		3,541,914
ASSET RETIREMENT OBLIGATIONS-FIN 47		860,602
NURSING SCHOOL LONG TERM LIABILITIES		726,556



Total. (Column (b) must equal Form 990, Part X, col.(B) line 25.)		29,836,801
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
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
4	Amounts included on Form 990, Part VIII, line 12, but not on line 1:
a	Investment expenses not included on Form 990, Part VIII, line 7b .	4a
b	Other (Describe in Part XIII.) ...........	4b
c	Add lines 4a and 4b.......................		4c
5	Total revenue. Add lines 3 and 4c. (This must equal Form 990, Part I, line 12.) ......		5

Part XII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return. Complete if the organization answered 'Yes' to Form 990, Part IV, line 12a.
1	Total expenses and losses per audited financial statements ...........		1
2	Amounts included on line 1 but not on Form 990, Part IX, line 25:
a	Donated services and use of facilities ..........	2a
b	Prior year adjustments ..............	2b
c	Other losses ................	2c
d	Other (Describe in Part XIII.) ............	2d
e	Add lines 2a through 2d......................		2e
3	Subtract line 2e from line 1.....................		3
4	Amounts included on Form 990, Part IX, line 25, but not on line 1:
a	Investment expenses not included on Form 990, Part VIII, line 7b ..	4a
b	Other (Describe in Part XIII.) ............	4b
c	Add lines 4a and 4b.......................		4c
5	Total expenses. Add lines 3 and 4c. (This must equal Form 990, Part I, line 18.) ......		5

Part XIII

Supplemental Information

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, PAGE 2, PART V, LINE 4	THE ENDOWMENT FUNDS ARE USED TO FURTHER THE EXEMPT PURPOSE OF THE ORGANIZATION IN PROVIDING HEALTHCARE TO THE SURROUNDING COMMUNITIES.

Schedule D (Form 990) 2014

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE G (Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Supplemental Information Regarding
Fundraising or Gaming Activities

Complete if the organization answered "Yes" to Form 990, Part IV, lines 17, 18, or 19, or if the organization entered more than $15,000 on Form 990-EZ, line 6a. right arrow

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

Information about Schedule G (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
HALLMARK HEALTH SYSTEMINC

Employer identification number

04-2767880

Part I

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

filers are not required to complete this part.

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

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

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

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

Yes

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

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










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

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

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

Cat. No. 50083H

Schedule G (Form 990 or 990-EZ) 2014

Page 2

Part II

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

		(a) Event #1 HALLMARK MWH GO (event type)	(b) Event #2 HALLMARK LMH GO (event type)	(c) Other events 3 (total number)	(d) Total events (add col. (a) through col. (c))
1	Gross receipts . . .	131,132	91,194	112,225	334,551
2	Less: Contributions . .	99,117	68,969	103,386	271,472
3	Gross income (line 1 minus line 2) . . .	32,015	22,225	8,839	63,079
4	Cash prizes . . .
5	Noncash prizes . .	4,620	1,967	5,247	11,834
6	Rent/facility costs . .	20,066	14,682	6,597	41,345
7	Food and beverages .	10,788	19,226	6,887	36,901
8	Entertainment . . .			900	900
9	Other direct expenses .	6,839	2,721	7,189	16,749
10	Direct expense summary. Add lines 4 through 9 in column (d) ...........				107,729
11	Net income summary. Subtract line 10 from line 3, column (d)...........				-44,650

Part III

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

(a) Bingo

(b) Pull tabs/Instant
bingo/progressive bingo

(c) Other gaming

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

Gross revenue . . . .

Cash prizes . . . .

Non-cash prizes . . .

Rent/facility costs . . .

Other direct expenses . .

Volunteer labor . . .

	Yes %
	No

	Yes %
	No

	Yes %
	No

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

Net gaming income summary. Subtract line 7 from line 1, column (d) ......... right arrow

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

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

YesNo

If "No," explain:

10a

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

YesNo

If "Yes," explain:

Schedule G (Form 990 or 990-EZ) 2014

Page 3

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

YesNo

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

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

YesNo

Indicate the percentage of gaming activities conducted in:

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

13a

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

13b

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

Name

Address

15a

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

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

YesNo

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

$ and the

amount of gaming revenue retained by the third party right arrow

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

Name

Address

Gaming manager information:

Name

Gaming manager compensation right arrow

Description of services provided right arrow

Director/officer Employee Independent contractor

Mandatory distributions:

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

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

YesNo

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

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

Part IV

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

Return Reference	Explanation

Schedule G (Form 990 or 990-EZ) 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

HALLMARK HEALTH SYSTEMINC

Employer identification number

04-2767880

Part I

Financial Assistance and Certain Other Community Benefits at Cost

Yes

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

Yes

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

Yes

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

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

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

Did the organization use Federal Poverty Guidelines (FPG) as a factor in determining eligibility for providing free care?

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

Yes

100% 150% 200% Other %

Did the organization use FPG as a factor in determining eligibility for providing discounted care? If "Yes," indicate

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

Yes

200% 250% 300% 350% 400% Other %

If the organization used factors other than FPG in determining eligibility, describe in Part VI the 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? ............................

Yes

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

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

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

Yes

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

Yes

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

Financial Assistance and Certain Other Community Benefits at Cost

Financial Assistance and Means-Tested Government Programs		(a) Number of activities or programs (optional)	(b) Persons served (optional)	(c) Total community benefit expense	(d) Direct offsetting revenue	(e) Net community benefit expense	(f) Percent of total expense
a	Financial Assistance at cost (from Worksheet 1) ..			2,795,670	954,392	1,841,278	0.720 %
b	Medicaid (from Worksheet 3, column a) ....			32,449,045	26,793,485	5,655,560	2.200 %
c	Costs of other means-tested government programs (from Worksheet 3, column b) .
d	Total Financial Assistance and Means-Tested Government Programs .			35,244,715	27,747,877	7,496,838	2.920 %
Other Benefits		60	94,508	4,080,181	1,994,391	2,085,790	0.810 %
e	Community health improvement services and community benefit operations (from Worksheet 4) ..	60	94,508	4,080,181	1,994,391	2,085,790	0.810 %
f	Health professions education (from Worksheet 5) ..	8	1,727	11,623,816	9,415,945	2,207,871	0.860 %
g	Subsidized health services (from Worksheet 6) ..	1	172	1,144,511	802,975	341,536	0.130 %
h	Research (from Worksheet 7)	2	1,428	162,284	191	162,093	0.060 %
i	Cash and in-kind contributions for community benefit (from Worksheet 8)	35	4,911	110,821		110,821	0.040 %
j	Total. Other Benefits ..	106	102,746	17,121,613	12,213,502	4,908,111	1.910 %
k	Total. Add lines 7d and 7j .	106	102,746	52,366,328	39,961,379	12,404,949	4.830 %

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.

		(c) Total community building expense	(e) Net community building expense	(f) Percent of total expense
1	Physical improvements and housing
2	Economic development
3	Community support	1,540	1,540
4	Environmental improvements
5	Leadership development and training for community members
6	Coalition building	10,529	10,529
7	Community health improvement advocacy
8	Workforce development
9	Other	2,068	2,068
10	Total	14,137	14,137	0.010 %

Part III

Bad Debt, Medicare, & Collection Practices

Section A. Bad Debt Expense

Yes

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

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

3,009,972

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

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

Section B. Medicare

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

92,926,237

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

93,599,173

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

-672,936

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?10 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)					Other (describe)	Facility reporting group
1	MELROSE WAKEFIELD HOSPITAL 585 LEBANON STREET MELROSE,MA02176	X	X	X		A
2	LAWRENCE MEMORIAL HOSPITAL 170 GOVERNORS AVE MEDFORD,MA02155	X	X	X		A
3	HALLMARK ONCOLOGY & HEMATOLOGY CTR 41 MONTVALE AVE STONEHAM,MA02180				OUTPATIENT MEDICAL	A
4	CHEM CENTER FOR RADIATION & MRI 48 MONTVALE AVE STONEHAM,MA02180				OUTPATIENT MEDICAL	A
5	HALLMARK HEALTH AT 101 MAIN 101 MAIN STREET MEDFORD,MA02155				OUTPATIENT MEDICAL	A
6	HALLMARK OUTPAT DIAGNOSTIC & REHAB 30 NEWCROSSING ROAD READING,MA01867				OUTPATIENT MEDICAL	A
7	HEALTH IMAGE WOMAN'S IMAGING CENTER 830 MAIN STREET MELROSE,MA02176				IMAGING CENTER	A
8	MELROSE-WAKEFIELD HOSP REHAB SERV 22 COREY STREET MELROSE,MA02176				PT & REHAB SERVICE	A
9	LAWRENCE MEMORIAL HOSPITAL PROGRAM 200 GOVERNORS AVE MEDFORD,MA02155				PSYCHIATRIC SERVICE	A
10	COMMUNITY COUNSELING CENTER 178 SAVIN STREET MALDEN,MA02148				OUTPATIENT COUNSELING	A

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)

	A
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................................

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

Yes

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): HTTP://WWW.HALLMARKHEALTH.ORG

Other website (list url): HTTP://WWW.HALLMARKHEALTH.ORG/COMMUNIT

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): HTTP://WWW.HALLMARKHEALTH.ORG/COMMUNIT

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

10b

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)

	A
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 200.000000000000%
and FPG family income limit for eligibility for discounted care of 400.000000000000%

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):

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

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)

	A
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?.........

Yes

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
GROUP A - LINE NUMBERS OF HOSPITAL FACILITIES	1,2,3,4,5,6,7,8,9,10
GROUP A, FACILITY 1, MELROSE WAKEFIELD HOSPITAL - PART V, LINE 5	IN ITS MOST RECENT COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA), COMPLETED IN AUGUST 2013, HALLMARK HEALTH SPECIFICALLY TOOK INTO ACCOUNT INPUT FROM REPRESENTATIVES WITHIN THE COMMUNITIES SERVED BY ITS FACILITIES. DURING THE CHNA RESEARCH PROCESS, CONDUCTED IN COLLABORATION WITH THE INSTITUTE FOR COMMUNITY HEALTH, INTERVIEWS WERE CONDUCTED WITH 18 KEY COMMUNITY LEADERS AND STAKEHOLDERS ACROSS THE CATCHMENT AREA, INCLUDING STATE PUBLIC HEALTH OFFICIALS, AND MEMBERS OF LOCAL BOARDS OF HEALTH AND PUBLIC HEALTH DIRECTORS, ASKING ABOUT TOP HEALTH CONCERNS, VULNERABLE POPULATIONS, COMMUNITY ASSETS AND RESOURCES, EXPERIENCES AND SUGGESTIONS. BROADER COMMUNITY-WIDE INPUT WAS ALSO SOLICITED THROUGH A FORMAL SURVEY, CONDUCTED BOTH ONLINE AND IN HARD COPY FORMAT. THE SURVEY TOOL WAS AVAILABLE IN ENGLISH AND TRANSLATED INTO THE SIX MOST COMMON LANGUAGES WITHIN THE SERVICE AREA. THE RESPONSES OF 387 CATCHMENT AREA RESIDENTS WERE ULTIMATELY COMPILED, INCLUDING INFORMATION RELATED TO THEIR HEALTH CONCERNS, BEHAVIORS AND NEEDS, AND INCORPORATED INTO THE CHNA. HALLMARK HEALTH ENCOURAGES AND SOLICITS FEEDBACK ON THE CURRENT CHNA ON AN ONGOING BASIS, SHARING THE REPORT AND INFORMATION WITH COLLABORATORS, COMMUNITY MEMBERS, AND STUDENTS. IN ADDITION, THE HOSPITAL MONITORS SECONDARY DATA SOURCES, INCLUDING LOCAL, STATE AND FEDERAL AGENCIES, AND GATHERS ADDITIONAL PRIMARY DATA WHENEVER POSSIBLE THAT RELATES TO THE NEEDS OF ITS CORE COMMUNITIES. THIS SERVES TO IDENTIFY EMERGING NEEDS IN THE SHORT TERM, AS WELL SUPPORTS ONGOING PREPARATION FOR THE CHNA PROCESS TO BE COMPLETED BY THE END OF FY 2016.AS PER IRS FINAL REGULATIONS, THE FY 16 CHNA WILL INCLUDE AN OVERALL ASSESSMENT, INCLUDING SOLICITED FEEDBACK, ON THE OUTCOMES AND ANY PROGRESS MADE ON IDENTIFIED HEALTH PRIORITIES SINCE THE ORIGINAL (FY 2013) CHNA WAS COMPLETED AND STRATEGIES IMPLEMENTED BASED ON ITS OUTCOMES. METHODS OF INFORMATION GATHERING TO DATE HAVE INCLUDED "WORLD CAF" STYLE FORUMS, TARGETING SPECIFIC PRIORITY CONSTITUENCIES,OPEN PUBLIC FORUMS AND DATA-SHARING WITH OTHER COMMUNITY HEALTH PROVIDERS AND PARTNERS.
GROUP A, FACILITY 1, MELROSE WAKEFIELD HOSPITAL - PART V, LINE 6B	INSTITUTE FOR COMMUNITY HEALTH, MYSTIC VALLEY ELDER SERVICES,(LOCAL) COUNCILS ON AGING, HEALTHY FAMILIES COMMUNITY COALITION, PATIENT FAMILY ADVISORY COUNCIL
GROUP A, FACILITY 1, MELROSE WAKEFIELD HOSPITAL - PART V, LINE 22D	FIFTY PERCENT OF CHARGES ARE BILLED TO INDIVIDUALS WHO DO NOT HAVE INSURANCE.
GROUP A, FACILITY 2, LAWRENCE MEMORIAL HOSPITAL - PART V, LINE 5	REFER TO PART VI SUPPLEMENTAL SCHEDULE H INFORMATION AS REPORTED IN MELROSE WAKEFIELD HOSPITAL , REPORTING GROUP A -- PART V LINE 3
GROUP A, FACILITY 2, LAWRENCE MEMORIAL HOSPITAL - PART V, LINE 22D	FIFTY PERCENT OF CHARGES ARE BILLED TO INDIVIDUALS WHO DO NOT HAVE INSURANCE.
GROUP A, FACILITY 3, HALLMARK ONCOLOGY & HEMATOLOGY CTR. - PART V, LINE 5	REFER TO PART VI SUPPLEMENTAL SCHEDULE H INFORMATION AS REPORTED IN MELROSE WAKEFIELD HOSPITAL , REPORTING GROUP A -- PART V LINE 3
GROUP A, FACILITY 3, HALLMARK ONCOLOGY & HEMATOLOGY CTR. - PART V, LINE 22D	FIFTY PERCENT OF CHARGES ARE BILLED TO INDIVIDUALS WHO DO NOT HAVE INSURANCE.
GROUP A, FACILITY 4, CHEM CENTER FOR RADIATION & MRI - PART V, LINE 5	REFER TO PART VI SUPPLEMENTAL SCHEDULE H INFORMATION AS REPORTED IN MELROSE WAKEFIELD HOSPITAL , REPORTING GROUP A -- PART V LINE 3
GROUP A, FACILITY 4, CHEM CENTER FOR RADIATION & MRI - PART V, LINE 22D	FIFTY PERCENT OF CHARGES ARE BILLED TO INDIVIDUALS WHO DO NOT HAVE INSURANCE.
GROUP A, FACILITY 5, HALLMARK HEALTH AT 101 MAIN - PART V, LINE 5	REFER TO PART VI SUPPLEMENTAL SCHEDULE H INFORMATION AS REPORTED IN MELROSE WAKEFIELD HOSPITAL , REPORTING GROUP A -- PART V LINE 3
GROUP A, FACILITY 5, HALLMARK HEALTH AT 101 MAIN - PART V, LINE 22D	FIFTY PERCENT OF CHARGES ARE BILLED TO INDIVIDUALS WHO DO NOT HAVE INSURANCE.
GROUP A, FACILITY 6, HALLMARK OUTPAT DIAGNOSTIC & REHAB - PART V, LINE 5	REFER TO PART VI SUPPLEMENTAL SCHEDULE H INFORMATION AS REPORTED IN MELROSE WAKEFIELD HOSPITAL , REPORTING GROUP A -- PART V LINE 3
GROUP A, FACILITY 6, HALLMARK OUTPAT DIAGNOSTIC & REHAB - PART V, LINE 22D	FIFTY PERCENT OF CHARGES ARE BILLED TO INDIVIDUALS WHO DO NOT HAVE INSURANCE.
GROUP A, FACILITY 7, HEALTH IMAGE WOMAN'S IMAGING CENTER - PART V, LINE 5	REFER TO PART VI SUPPLEMENTAL SCHEDULE H INFORMATION AS REPORTED IN MELROSE WAKEFIELD HOSPITAL , REPORTING GROUP A -- PART V LINE 3
GROUP A, FACILITY 7, HEALTH IMAGE WOMAN'S IMAGING CENTER - PART V, LINE 22D	FIFTY PERCENT OF CHARGES ARE BILLED TO INDIVIDUALS WHO DO NOT HAVE INSURANCE.
GROUP A, FACILITY 8, MELROSE-WAKEFIELD HOSP REHAB SERV. - PART V, LINE 5	REFER TO PART VI SUPPLEMENTAL SCHEDULE H INFORMATION AS REPORTED IN MELROSE WAKEFIELD HOSPITAL , REPORTING GROUP A -- PART V LINE 3
GROUP A, FACILITY 8, MELROSE-WAKEFIELD HOSP REHAB SERV. - PART V, LINE 22D	FIFTY PERCENT OF CHARGES ARE BILLED TO INDIVIDUALS WHO DO NOT HAVE INSURANCE.
GROUP A, FACILITY 9, LAWRENCE MEMORIAL HOSPITAL PROGRAM - PART V, LINE 5	REFER TO PART VI SUPPLEMENTAL SCHEDULE H INFORMATION AS REPORTED IN MELROSE WAKEFIELD HOSPITAL , REPORTING GROUP A -- PART V LINE 3
GROUP A, FACILITY 9, LAWRENCE MEMORIAL HOSPITAL PROGRAM - PART V, LINE 22D	FIFTY PERCENT OF CHARGES ARE BILLED TO INDIVIDUALS WHO DO NOT HAVE INSURANCE.
GROUP A, FACILITY 10, COMMUNITY COUNSELING CENTER - PART V, LINE 5	REFER TO PART VI SUPPLEMENTAL SCHEDULE H INFORMATION AS REPORTED IN MELROSE WAKEFIELD HOSPITAL , REPORTING GROUP A -- PART V LINE 3
GROUP A, FACILITY 10, COMMUNITY COUNSELING CENTER - PART V, LINE 22D	FIFTY PERCENT OF CHARGES ARE BILLED TO INDIVIDUALS WHO DO NOT HAVE INSURANCE.

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?
Name and address		Type of Facility (describe)
1
2
3
4
5
6
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
PART I, LINE 7 - COSTING METHODOLOGY EXPLANATION	CHARITY CARE COSTS FROM WORKSHEETS 1 & 2 AND UNREIMBURSED MEDICAID FROM WORKSHEET 3 AND HEALTH PROFESSIONS EDUCATION FROM WORKSHEET 5 WERE APPLIED TO ALL PATIENT SEGMENTS. ( COST TO CHARGE RATIO )
PART II - COMMUNITY BUILDING ACTIVITIES	AS PART OF ITS EFFORTS TO IMPROVE THE HEALTH STATUS OF ITS CORE COMMUNITIES, HALLMARK HEALTH PARTICIPATES IN A VARIETY OF BROAD-BASED COMMUNITY COALITIONS AND INITIATIVES THAT WORK TOWARDS ADDRESSING THE SPECIFIC AND GENERAL HEALTH NEEDS IN THESE CITIES AND TOWNS. A SAMPLE OF CURRENT ACTIVITIES INCLUDE: THE JOINT COMMITTEE FOR CHILDREN'S HEALTHCARE IN EVERETT, MYSTIC VALLEY ELDER SERVICES PROVIDER TASK FORCE, LOCAL COUNCILS ON AGING, HEALTHY FAMILIES COMMUNITY COALITION,LOCAL SUBSTANCE ABUSE PREVENTION COALITIONS IN MELROSE,MEDFORD,READING,SAUGUS, STONEHAM AND WAKEFIELD,AS WELL AS REGIONAL MASSACHUSETTS OPIOID ABUSE PREVENTION COLLABORATIVE(MOAPC)AND SUBSTANCE ABUSE PREVENTION COLLABORATIVE (SAPC),BOTH PROGRAMS OF THE MYSTIC VALLEY PUBLIC HEALTH COALITION. HALLMARK HEALTH ALSO PARTNERS WITH MALDEN, EVERETT, AND MEDFORD COORDINATED FAMILY AND COMMUNITY ENGAGEMENT (CFCE) GRANT PROGRAMS FUNDED BY THE MA DEPARTMENT OF EARLY EDUCATION AND CARE, THE TRI-CITY HUNGER NETWORK AND TRI-CITY HOMELESSNESS TASK FORCE, AND A HOST OF OTHER COMMUNITY-BASED AND GUIDED COALITIONS AND INIATIVES. A SPECIFIC EXAMPLE OF THIS COMMUNITY BUILDING INCLUDES HALLMARK HEALTH'S REPRESENTATION ON THE MELROSE ALLIANCE AGAINST VIOLENCE (MAAV). MAAV IS A NON-PROFIT,COMMUNITY-BASED ORGANIZATION THAT FOCUSES ON OUTREACH, EDUCATION AND COMMUNITY COLLABORATION IN ORDER TO RAISE AWARENESS OF THE PROBLEMS OF VIOLENCE IN MELROSE.WORKING CLOSELY WITH THE MELROSE POLICE DEPARTMENT , THE BOARD OF DIRECTORS OF MAAV INCLUDES TWO REPRESENTATIVES FROM HALLMARK HEALTH, AS WELL AS MEMBERS FROM THE MELROSE SCHOOLS, CLERGY, HEALTH DEPARTMENT, AS WELL AS STUDENTS AND COMMUNITY MEMBERS AT LARGE. IN ADDITION, HALLMARK HEALTH HAS CONTINUED TO OPERATE A NUMBER OF COMMUNITY OUTREACH TEAMS TO ASSIST WITH COLLECTION OF COMMUNITY NEED INFORMATION AND HEALTH EDUCATION AND SCREENINGS. THE TEAMS HAVE SPONSORED EVENTS RANGING FROM INFORMAL (PLANNING, HEALTH EVENTS AND SCREENINGS) TO MORE FORMAL (HEALTHY MELROSE, DIABETES DAY, MOBILE FOOD MARKET), OFFERING MULTIPLE OPPORTUNITIES TO INTERACT WITH A WIDE RANGE OF COMMUNITY MEMBERS TO FORM TRUSTING RELATIONSHIPS, LISTENING TO THE VOICES OF INDIVIDUAL COMMUNITY MEMBERS, AND FOSTERING THE DEVELOPMENT OF RESILIENCE WITHIN EACH COMMUNITY. AS HALLMARK HEALTH BEGINS THE SECOND YEAR OF ITS IMPLEMENTATION PLAN, IT CONTINUES TO UTILIZE THE COLLECTIVE KNOWLEDGE OF THE TEAM CAPTAINS. THE TEAMS' ORGANIZING CHARTER GUIDES THE MEMBERSHIP TOWARD SALIENT ACTIVITIES. RELEVANT HEALTH DATA AND THE IDENTIFIED TARGET POPULATION LISTS ARE PROVIDED TO EACH TEAM CAPTAIN TO ASSIST THEM IN PLANNING PROGRAMS IN THEIR COMMUNITIES. CURRENTLY, THERE ARE SIX (6) COMMUNITY OUTREACH TEAMS NAMED FOR MALDEN, MEDFORD, MELROSE, WAKEFIELD, READING/NORTH READING AND STONEHAM. THE TEAMS CONTINUOUSLY SOLICIT INPUT FROM COMMUNITY LEADERS INCLUDING SUPERINTENDENTS OF SCHOOLS, STATE REPRESENTATIVES, BUSINESS LEADERS, FIRE AND POLICE OFFICIALS AND LOCAL HEALTH DEPARTMENTS. MANY EMPLOYEES SERVING ON TEAMS ALSO PARTICIPATE IN OTHER COMMUNITY GROUPS AND CIVIC ORGANIZATIONS. MORE THAN 60 EMPLOYEES, VOLUNTEERS, AND PHYSICIANS WERE INVOLVED IN TEAM- SPONSORED EVENTS IN FISCAL YEAR 2015/TAX YEAR 2014 (FY 2015/TY 2014). THE COMMUNITY TEAM EFFORTS HAVE BEEN ACKNOWLEDGED BY FOUR AREA CHAMBERS OF COMMERCE, OTHER CIVIC ORGANIZATIONS, THE HOUSE OF REPRESENTATIVES, THE AMERICAN HOSPITAL ASSOCIATION, AND THE MASSACHUSETTS HOSPITAL ASSOCIATION.
PART III, LINE 2 - BAD DEBT EXPENSE METHODOLOGY	HALLMARK HEALTH SYSTEM, INC. DEVELOPED A COST TO CHARGE RATIO AND APPLIED IT TO THE BAD DEBT ACCOUNT CHARGES THAT WERE ACTUALLY WRITTEN-OFF.
BAD DEBT EXPENSE FOOTNOTE TO FINANCIAL STATEMENTS	THE FOLLOWING IS FROM THE HALLMARK HEALTH CORPORATION CONSOLIDATED AUDITED FINANCIAL STATEMENTS, OF WHICH HALLMARK HEALTH SYSTEM IS INCLUDED, RELATING TO CHARITY CARE AND BAD DEBT EXPENSE : 2015 CHARITY CARE AND COMMUNITY BENEFIT FOOTNOTE CHARITY CARE - THE CORPORATION PROVIDES CARE TO PATIENTS REGARDLESS OF THEIR ABILITY TO PAY. CONSISTENT WITH ITS TAX-EXEMPT STATUS AND COMMUNITY SERVICE RESPONSIBILITIES, THE CORPORATION PROVIDES FINANCIAL ASSISTANCE IN THE FORM OF FREE OR DISCOUNTED CARE TO PATIENTS WHO MEET CERTAIN CRITERIA UNDER THE CORPORATION'S CHARITY CARE POLICY. IN ASSESSING A PATIENT'S INABILITY TO PAY, THE CORPORATION UTILIZES FEDERAL POVERTY INCOME GUIDELINES AND FOLLOWS PROCEDURES SET FORTH IN ITS CREDIT AND COLLECTION POLICY, WHICH HAS BEEN APPROVED BY THE COMMONWEALTH OF MASSACHUSETTS DIVISION OF HEALTHCARE FINANCE AND POLICY. BECAUSE THE CORPORATION DOES NOT PURSUE COLLECTION OF AMOUNTS DETERMINED TO QUALIFY AS CHARITY CARE, THESE AMOUNTS ARE NOT REPORTED AS PATIENT SERVICE REVENUE. DURING THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014,THE CORPORATION ESTIMATED THAT THE COST ASSOCIATED WITH THE CHARITY CARE PROVIDED WAS APPROXIMATELY 332,000 AND 1,584,000, RESPECTIVELY. SUCH COSTS HAVE BEEN ESTIMATED BASED ON RATIO OF EXPENSES ( EXCLUDING BAD DEBT ) TO ESTABLISHED PATIENT SERVICE CHARGES. BAD DEBTS - THE PROVISION FOR BAD DEBTS IN THE ACCOMPANYING CONSOLIDATED STATEMENTS OF OPERATIONS REFLECTS THE CHARGES AT ESTABLISHED RATES FOR SERVICES PROVIDED TO THOSE INDIVIDUALS WHO DO NOT QUALIFY FOR CHARITY CARE UNDER THE GUIDELINES DESCRIBED ABOVE, AND WHO ARE OTHERWISE UNABLE OR UNWILLING TO PAY THE CORPORATION.THE PROVISION FOR BAD DEBTS OF 8,261,000 AND 8,814,000 IN 2015 AND 2014, RESPECTIVELY, REPRESENTS THE CHARGES FOR SERVICES PROVIDED THAT ARE DEEMED TO BE UNCOLLECTIBLE. THE ESTIMATED COST OF PROVIDING THESE SERVICES DEEMED UNCCLLECTIBLE WAS APPROXIMATELY 3,489,000 FOR 2015 AND 3,733,000 FOR 2014. HEALTH SAFETY NET (HSN) - THE COMMONWEALTH OF MASSACHUSETTS (THE "COMMONWEALTH") ADMINISTERS A HEALTH SAFETY NET (THE HSN) TO ACT AS THE "PAYOR OF LAST RESORT" FOR COVERED HEALTH CARE SERVICES PROVIDED BY ACUTE HOSPITALS AND COMMUNITY HEALTH CENTERS IN THE COMMONWEALTH. ALL HOSPITALS HAVE BEEN ASSESSED A UNIFORM ALLOWANCE BASED ON ESTIMATES OF THEIR SHARE OF TOTAL HEALTH SAFETY NET FUNDING AND HAVE BEEN REIMBURSED FOR A PORTION OF THE COST OF ACTUAL UNCOMPENSATED CARE WHICH THEY PROVIDE, SUBJECT TO CERTAIN LIMITATIONS. REIMBURSABLE UNCOMPENSATED CARE INCLUDES NET CHARITY CARE AND BAD DEBTS RESULTING FROM EMERGENCY SERVICES. HOSPITALS' RECOVERIES FROM THE HSN ARE BASED ON REGULATED PAYMENT RATES. THE CORPORATION HAS RECORDED ITS ACTIVITY WITH THE HSN AS A COMPONENT OF NET PATIENT SERVICE REVENUE IN THE ACCOMPANYING CONSOLIDATED STATEMENTS OF OPERATIONS. MANAGEMENT BELIEVES THAT THE ACCOMPANYING CONSOLIDATED BALANCE SHEETS REFLECT REASONABLE ESTIMATES OF THE CORPORATION'S NET OBLIGATION TO THE HSN AS OF SEPTEMBER 30,2015 AND 2014. THE CORPRATION'S SHARE OF THE TOTAL COMMONWEALTH'S ASSESSMENT WAS 1,943,152 FOR 2015 AND 1,981,493 FOR 2014. DURING 2014 AND 2013, THE CORPORATION RECEIVED REIMBURSEMENT FROM THE HSN IN THE AMOUNTS OF 313,745 AND 758,486, RESPECTIVELY. TOTAL UNCOMPENSATED CARE PROVIDED BY ALL RELATED CORPORATIONS FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014, IS AS FOLLOWS: 2015 2014 PROVISION FOR CHARITY CARE(AT COST) 332,191 1,584,085 PROVISION FOR BAD DEBTS(AT COST) 3,489,295 3,732,533 HSN - (ASSESSMENT NET OF REIMBURSEMENT ) 1,629,407 1,223,006 TOTAL UNCOMPENSATED CARE 5,450,893 6,539,624 TOTAL HALLMARK HEALTH SYSTEM,INC. UNCOMPENSATED CARE FOR FYE 2014 & 2013 IS AS FOLLOWS: 2015 2014 PROVISION FOR CHARITY CARE(AT COST) 327,123 1,565,235 PROVISION FOR BAD DEBTS(AT COST) 3,345,065 3,627,311 HSN - NET 1,629,407 1,223,006 TOTAL UNCOMPENSATED CARE 5,301,595 6,415,552 COMMUNITY BENEFIT - IN FURTHERING ITS CHARITABLE PURPOSE, THE CORPORATION PROVIDES A WIDE VARIETY OF HEALTH CARE SERVICES TO THE COMMUNITY IN ORDER TO PROVIDE ACCESS TO APPROPRIATE CARE FOR POPULATIONS IN NEED. THE CORPORATION HAS DEVELOPED A FORMAL COMMUNITY BENEFIT PLAN, WHICH RESPONDS TO A COMPREHENSIVE ASSESSMENT OF HEALTH CARE NEEDS IN THE COMMUNITY. THE COMMUNITY BENEFIT PLAN SUPPORTS SERVICES THAT TARGET NOT ONLY THE GENERAL POPULATION IN THE CORPORATION'S SERVICE AREA, BUT ALSO PARTICULAR POPULATIONS WITH SPECIAL HEALTH CARE NEEDS, INCLUDING THE POOR, THE ELDERLY, CHILDREN, AND MINORITY POPULATIONS. SUPPORTED SERVICES INCLUDE VARIOUS CLINICS, HEALTH SCREENING PROGRAMS, HEALTH EDUCATION PROGRAMS, AND SUPPORT GROUPS OPERATED IN THE CORPORATION'S SERVICE AREA. THE CORPORATION WORKS ACTIVELY WITH OTHER AREA SERVICE PROVIDERS TO FACILITATE THE DEVELOPMENT OF AN EFFECTIVE COMMUNITY HEALTH NETWORK. THE CORPORATION ALSO PARTICIPATES IN ACTIVITIES DESIGNED TO FOSTER AND ENHANCE THE ECONOMIC AND CIVIC ENVIRONMENT OF ITS SERVICE AREAS. HALLMARK HEALTH SYSTEM, INC. DOES NOT INCLUDE BAD DEBT AS A COMMUNITY BENEFIT.
PART III, LINE 8 - MEDICARE EXPLANATION	MEDICARE REIMBURSEMENT SHORTFALL USING ALLOWABLE COSTS FROM MEDICARE COST REPORT.
PART III, LINE 9B - COLLECTION PRACTICES EXPLANATION	POLICY- " COLLECTION ACTIVITY IS STOPPED ONCE A PATIENT IS KNOWN TO QUALIFY FOR CHARITY CARE OR FINANCIAL ASSISTANCE THIS POPULATION IS EXEMPT FROM COLLECTION ACTIVITY. "
PART VI, LINE 2 - NEEDS ASSESSMENT	HALLMARK HEALTH SYSTEM IS A NOT-FOR-PROFIT HOSPITAL THAT OPERATES TO FURTHER THE IMPROVEMENT OF THE HEALTH STATUS TO THE COMMUNITIES THAT WE SERVE THROUGH THE DELIVERY OF HEALTHCARE SERVICES AND EDUCATION. THIS EFFORT IS ACHIEVED BY: -RE-INVESTING SURPLUS FUNDS BACK INTO COMMUNITIES THROUGH PROGRAMS AND SERVICES. -MAKING SURE THAT CARE IS AVAILABLE TO EVERYONE - REGARDLESS OF THE ABILITY TO PAY. -USING COMPASSION AS A CORNERSTONE IN IMPROVING THE HEALTH OF OUR COMMUNITIES. -ATTENDING TO THE NEEDS OF PATIENTS AND THEIR FAMILY MEMBERS BY ADDRESSING THE NEEDS OF THE WHOLE PERSON NOT JUST AS A DISEASE OR A DIAGNOSIS. -PROVIDING A RANGE OF SPECIAL BENEFITS TO THE COMMUNITY, SUCH AS PROGRAMS TO MANAGE CARE FOR PERSONS WITH CHRONIC DISEASES, HEALTH EDUCATION AND DISEASE PREVENTION INITIATIVES, OUTREACH FOR THE ELDERLY, AND CARE FOR PERSONS WHO ARE POOR OR UNINSURED. IN COMPLIANCE WITH IRS GUIDELINES, A YEAR-LONG PROCESS TO DEVELOP A FORMAL COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA) WAS COMPLETED BY HALLMARK HEALTH IN AUGUST 2013, IN COLLABORATION WITH THE INSTITUTE FOR COMMUNITY HEALTH (ICH), A NON-PROFIT ORGANIZATION RECOGNIZED FOR COMMUNITY-BASED PARTICIPATORY RESEARCH, ASSESSMENT, AND DISSEMINATION. THIS PROCESS INCLUDED A REVIEW OF REPUTABLE PUBLIC HEALTH, SOCIO-ECONOMIC, AND FOUNDATION DATA; INPUT FROM THE HALLMARK HEALTH COMMUNITY BENEFITS ADVISORY COUNCIL, COMMUNITY OUTREACH TEAMS, PATIENT/FAMILY ADVISORY COUNCIL, LOCAL COMMUNITY COALITIONS, AND THE COMMUNITY HEALTH NETWORK AREAS MEMBERSHIP. STAKEHOLDER INTERVIEWS AND COMMUNITY SURVEYS WERE ALSO COMPLETED. REFLECTING IRS REQUIREMENTS, AND TO FOSTER TRANSPARENCY, THE ENTIRE CHNA AS WELL AS AN EXECUTIVE SUMMARY OF ITS FINDINGS ARE POSTED ON THE HALLMARK HEALTH SYSTEM WEBSITE AND IN PRINTED VERSIONS AT EACH HOSPITAL CAMPUS AND OTHER KEY SERVICE DELIVERY LOCATIONS IN THE CATCHMENT AREA.THE HEALTH SYSTEM'S NEXT CHNA IS CURRENTLY IN DEVELOPMENT, AND WILL BE COMPLETED BY AUGUST 2016 AS PER IRS FINAL REGULATIONS. ONGOING MONITORING OF THE CHNA AND ITS IDENTIFIED HEALTH PRIORITIES IS THE RESPONSIBILITY OF THE COMMUNITY BENEFITS ADVISORY COUNCIL. AS OF THE END OF FY 2015/TY 2014, THE HALLMARK HEALTH COUNCIL IS COMPRISED OF A MEMBER OF THE HOSPITAL'S BOARD OF TRUSTEES; THE SYSTEM VICE PRESIDENT FOR HOME CARE & COMMUNITY PROGRAMS WHO CHAIRS THE COUNCIL ,EXECUTIVE VICE PRESIDENT AND CHIEF LEGAL OFFICER;THE ASSOCIATE CHIEF NURSING OFFICER FOR AMBULATORY SERVICES;CHIEF MARKETING OFFICER; FISCAL CONTROLLER; MANAGER, CASE MANAGEMENT, AN LICSW; MANAGER, CENTRAL SCHEDULING, INSURANCE COORDINATION AND INTERPRETER SERVICES; TWO HALLMARK HEALTH-AFFILIATED PHYSICIANS; FOUR COMMUNITY REPRESENTATIVES; THE DIRECTOR, COMMUNITY SERVICES; AND THE MANAGER,COMMUNITY BENEFITS. THE COUNCIL ACTS AS OVERSEERS FOR THE CHNA, AND DEFINES THE PROCESS FOR RECOGNIZING CURRENT AND EMERGING HEALTH NEEDS IN THE COMMUNITY, AS WELL AS DEVELOPING A MULTI-YEAR COMMUNITY BENEFITS IMPLEMENTATION PLAN TO RESPOND TO THESE NEEDS.AT THE START OF FY 2015/TY 2014, THE COUNCIL REVIEWED THE FY 2014-16 IMPLEMENTATION PLAN AND MADE AMENDMENTS AS REQUIRED TO REFLECT NEW PROGRAMS OR SHIFTS IN EXISTING PROGRAMS AS APPROVED BY THE BOARD OF TRUSTEES.THE COUNCIL MEETS SIX TIMES PER YEAR TO PROVIDE INPUT TO THE ONGOING EXECUTION OF THE PLAN, DISCUSS ONGOING COMMUNITY HEALTH ISSUES, MONITOR THE STATE AND FEDERAL REPORTING PROCESSES FOR COMMUNITY BENEFITS, AND OFFER INPUT TO THE GOVERNING BOARD REGARDING EMERGING AND NEWLY IDENTIFIED COMMUNITY HEALTH NEEDS.THE COUNCIL ADDED AS NEW MEMBERS THE EXECUTIVE DIRECTOR OF A LOCAL HUNGER RELIEF AND FOOD PANTRY PROGRAM, AND A REPRESENTATIVE FROM THE MA DEPARTMENT OF PUBLIC HEALTH, IN FY 2015/TY 2014. RECRUITMENT OF COMMUNITY REPRESENTATIVES, REFLECTING THE VULNERABLE POPULATIONS IN THE COMMUNITY AND REPRESENTING DIVERSE CONSTITUENCIES AND VIEWPOINTS, TAKES PLACES ON AN ONGOING BASIS. HALLMARK HEALTH ALSO ACTIVELY PARTICIPATED WITH THE COMMUNITY THROUGH ITS COMMUNITY OUTREACH TEAMS, SOLICITING INPUT FROM KEY COMMUNITY LEADERS, INCLUDING SUPERINTENDENTS OF SCHOOLS, STATE REPRESENTATIVES, BUSINESS LEADERS, FIRE AND POLICE PERSONNEL AND LOCAL HEALTH DEPARTMENTS. ADDITIONAL APPROACHES INCLUDE WORK AS MEMBERS OF COMMUNITY COALITIONS AND WITH THE COMMUNITY HEALTH NETWORK AREAS (CHNA 15 AND 16) DESIGNATED BY THE MA DEPARTMENT OF PUBLIC HEALTH. THESE HAVE PROVEN EFFECTIVE IN GAINING VITAL PERSPECTIVE AROUND THE HEALTH NEEDS OF LOCAL RESIDENTS, AND IN TAILORING OUTREACH MESSAGES AND PROGRAMMING BASED ON WHAT CONSTITUENCIES AND COMMUNITIES VALUE MOST. (COMMUNITY TEAMS FUNCTIONS ARE FURTHER EXPLAINED IN THE DESCRIPTION OF COMMUNITY BUILDING ACTIVITIES IN PART II.) ANOTHER WAY THAT HALLMARK HEALTH ASSESSES NEEDS WITHIN THE COMMUNITY IS THROUGH THE PATIENT/FAMILY ADVISORY COUNCIL (PFAC). THIS COUNCIL WAS FORMED TO OBTAIN FEEDBACK AND IDEAS FROM COMMUNITY MEMBERS ON HOW THE HOSPITALS CAN BE MORE RECEPTIVE TO THE UNIQUE NEEDS OF COMMUNITY RESIDENTS, ESPECIALLY THOSE OF DIVERSE BACKGROUNDS, AND TO PROMOTE THE HIGHEST QUALITY OF PATIENT-CENTERED SERVICES BY FOSTERING A STRONG PARTNERSHIP THROUGH OUTREACH ACTIVITIES WITH COMMUNITY RESIDENTS. THE COUNCIL OFTEN ASSISTS HALLMARK HEALTH STAFF BY PROVIDING INPUT INTO THE PLANNING OF FUTURE COMMUNITY ACTIVITIES AND INITIATIVES. IN FY 2015/TY 2014, PFAC MEMBERS' INPUT WAS SOLICITED ON FURNITURE THAT HALLMARK HEALTH PURCHASED TO UPDATE AND IMPROVE PATIENT ROOMS, A COMPLETE REVISION OF THE HOSPITAL'S PATIENT WELCOME PACKETS, A UNIFORM, SYSTEM-WIDE PROTOCOL FOR PATIENT SIGN-IN PROCEDURES IN OUTPATIENT OFFICES, AND THE CREATION OF A MORE "USER- FRIENDLY" PATIENT DISCHARGE REPORT. PFAC MEMBERS RAISED QUESTIONS AROUND PATIENT CALL BUTTONS, SERVED ON A PILOT SUB-GROUP TO TEST THE HOSPITAL'S NEW ELECTRONIC PATIENT PORTAL, PROVIDED FEEDBACK ON THE HOSPITAL'S INTERPRETER SERVICES PROGRAM, AND REVIEWED AND COMMENTED ON PROPOSED RENOVATIONS TO THE EMERGENCY DEPARTMENT AT LAWRENCE MEMORIAL HOSPITAL. AS PART OF ITS EFFORTS TO IMPROVE HEALTH STATUS IN THE CATCHMENT AREA, HALLMARK HEALTH SYSTEM ALSO PARTICIPATES IN A VARIETY OF BROAD-BASED COMMUNITY COALITIONS AND INITIATIVES THAT WORK TOWARDS ADDRESSING THE SPECIFIC AND GENERAL HEALTH NEEDS IN THESE CITIES AND TOWNS. A SAMPLE OF THESE MEMBERSHIPS INCLUDE: MYSTIC VALLEY ELDER SERVICES PROVIDER TASK FORCE; LOCAL COUNCILS ON AGING; THE HEALTHY FAMILIES COMMUNITY COALITION; THE JOINT COMMITTEE FOR CHILDREN'S HEALTH CARE IN EVERETT (JCCHCE); MEDFORD HEALTH MATTERS; TRI-CITY HUNGER NETWORK; CHINESE CULTURE CONNECTION; SUBSTANCE ABUSE PREVENTION COALITIONS IN MELROSE, MEDFORD, WAKEFIELD, READING AND STONEHAM; THE MALDEN'S PROMISE COALITION; DPH MASS IN MOTION PROGRAMS IN MELROSE-WAKEFIELD, MALDEN, AND EVERETT; AND THE MELROSE, STONEHAM, AND WAKEFIELD ALLIANCES AGAINST VIOLENCE. ONE CENTRAL FOCUS OF HALLMARK HEALTH'S COMMUNITY BENEFITS WORK IS TO CONTINUE TO FOSTER RELATIONSHIPS WITH A WIDER ARRAY OF COMMUNITY GROUPS AND LOCAL LEADERS, INCLUDING FAITH-BASED AND GRASSROOTS ORGANIZATIONS. SUCH RELATIONSHIPS PROVIDE INSIGHT INTO HOW THESE GROUPS VIEW HALLMARK HEALTH SYSTEM'S ROLE IN THEIR COMMUNITY, HOW OUR SYSTEM CAN IMPROVE THE WAYS WE SERVE DIVERSE RESIDENTS, AND HOW THE SYSTEM SHOULD STRENGTHEN COLLABORATION TO BEST MEET DIVERGENT HEALTH NEEDS.
PART VI, LINE 3 - PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE	MASSACHUSETTS HOSPITALS PROVIDE PATIENTS WITH INFORMATION ABOUT FINANCIAL ASSISTANCE PROGRAMS THROUGH THE COMMONWEALTH OF MASSACHUSETTS OR THROUGH THE HOSPITAL'S OWN FINANCIAL ASSISTANCE PROGRAM AS OUTLINED IN THE CREDIT AND COLLECTION POLICY.FOR THOSE PATIENTS THAT REQUEST SUCH ASSISTANCE,THE HOSPITAL ASSISTS PATIENTS BY SCREENING THEM FOR ELIGIBILTY IN AVAILABLE PUBLIC PROGRAMS AND ASSISTING THEM IN APPLYING FOR THE PROGRAMS.THE SCREENING AND APPLICATION PROCESS IS DONE THROUGH A SINGLE UNIFORM APPLICATION THAT IS SUBMITTED THROUGH THE THE HEALTH INSURANCE EXCHANGE (HIX) OR THROUGH A STANDARD PAPER APPLICATION. HOSPITALS HAVE NO ROLE IN SPECIFICALLY DETERMINING THE ELIGIBILITY FOR ENROLLMENT WITH A PUBLIC ASSISTANCE PROGRAM,BUT AT THE PATIENT'S REQUEST MAY TAKE A DIRECT ROLE IN APPEALING OR SEEKING INFORMATION RELATED TO THE COVERAGE DECISION.
PART VI, LINE 4 - COMMUNITY INFORMATION	HALLMARK HEALTH SYSTEM (HHS) IS A COMMUNITY HOSPITAL SYSTEM, LOCATED ON TWO HOSPITAL CAMPUSES APPROXIMATELY TEN (10) MILES NORTH OF BOSTON, MASSACHUSETTS. HALLMARK HEALTH'S OVERALL SERVICE AREA IS PRIMARILY WITHIN MIDDLESEX COUNTY, WITH SOME SLIGHT OVERLAP INTO ESSEX AND SUFFOLK COUNTIES. THE HHS COMMUNITY BENEFIT CATCHMENT AREA (AS DEFINED THROUGH THE COMMUNITY HEALTH NEEDS ASSESSMENT PROCESS) INCLUDES THE SIX CORE COMMUNITIES OF MALDEN, MEDFORD, MELROSE, READING, STONEHAM, AND WAKEFIELD, AND THREE SECONDARY COMMUNITIES OF EVERETT, NORTH READING, AND SAUGUS (HEREAFTER REFERRED TO AS "HHS CB"). THESE COMMUNITIES WERE SELECTED AND APPROVED BY LEADERSHIP BASED ON AN ASSESSMENT OF COMMUNITIES FROM WHICH HHS DRAWS ITS PATIENT POPULATION, COMMUNITIES WHERE HHS HAS AN EXISTING PHYSICAL OR PROGRAM PRESENCE, AS WELL AS LONG STANDING RELATIONSHIPS WITH COMMUNITY STAKEHOLDERS OR ORGANIZATIONS. ADDITIONAL COMMUNITIES ARE SERVED BY THE HOSPITAL'S COMMUNITY-BASED PROGRAMS THAT ARE PROXIMATE TO THE CATCHMENT AREA. FOR EXAMPLE, THE NORTH SUBURBAN WOMEN, INFANTS AND CHILDREN (WIC) PROGRAM SERVES THE TOWNS OF BURLINGTON, WILMINGTON, WINCHESTER, AND WOBURN IN ADDITION TO EIGHT OTHER CATCHMENT AREA CITIES AND TOWNS, AND THE NORTH SUBURBAN CHILD AND FAMILY RESOURCE NETWORK SERVES LYNNFIELD AND WINCHESTER, IN ADDITION TO FIVE OTHER CATCHMENT AREA COMMUNITIES. FOR PURPOSES OF MONITORING LANGUAGE NEEDS AND THE HOSPITAL'S INTERPRETER SERVICES PROGRAM, THE MA DEPARTMENT OF PUBLIC HEALTH DEFINES A 12-COMMUNITY ASSESSMENT AREA FOR REVIEW, CONSISTING OF THE NINE CATCHMENT AREA CITIES AND TOWNS, PLUS THE ADDITIONAL COMMUNITIES OF REVERE, LYNNFIELD, AND WINTHROP, REFLECTING THEIR RELATIVE UTILIZATION OF EMERGENCY DEPARTMENT AND INPATIENT SERVICES OF THEIR POPULATIONS. THE FOLLOWING STATISTICAL AND DEMOGRAPHIC PROFILE OF THE CATCHMENT AREA IS EXCERPTED FROM THE COMPREHENSIVE HHS FY 2013 COMMUNITY HEALTH NEEDS ASSESSMENT: POPULATION SIZE & DENSITY THE HHS CB NINE-COMMUNITY CATCHMENT AREA COVERS 71.7 SQUARE MILES, WITH A TOTAL POPULATION OF 294,024. SIZE AND POPULATION DENSITY VARY BY COMMUNITY, WITH MALDEN AND MEDFORD HAVING THE LARGEST POPULATIONS AT 58,180 AND 55,451 RESPECTIVELY, AND NORTH READING THE SMALLEST, AT 14,536. MALDEN IS THE MOST DENSELY POPULATED COMMUNITY AT 11,408 PEOPLE PER SQUARE MILE, AND NORTH READING THE LEAST DENSELY POPULATED AT 1,077 PEOPLE PER SQUARE MILE. RACE/ETHNICITY & FOREIGN-BORN RESIDENTS COMPARED TO THE STATE OF MASSACHUSETTS, EVERETT, MALDEN AND MEDFORD HAVE LARGER POPULATIONS OF NON-WHITE RESIDENTS. THE REMAINING SIX COMMUNITIES ALL HAVE MOSTLY WHITE POPULATIONS. EVERETT, MALDEN AND MEDFORD ALSO HAVE LARGER POPULATIONS OF FOREIGN-BORN RESIDENTS (35%, 39% AND 21% RESPECTIVELY, COMPARED TO 15% STATEWIDE). IN EVERETT, THE LARGEST PERCENTAGE OF FOREIGN-BORN RESIDENTS IS FROM LATIN AMERICA (75%); IN MALDEN 50% ARE FROM ASIA AND 36% FROM LATIN AMERICA; AND IN MEDFORD 37% ARE FROM LATIN AMERICA, 28% FROM ASIA AND 26% FROM EUROPE. NORTH READING, READING, SAUGUS, STONEHAM AND WAKEFIELD HAVE SMALLER POPULATIONS OF FOREIGN-BORN RESIDENTS COMPARED TO THE STATE AS A WHOLE, RANGING FROM 5% TO 11%, FROM ASIA, EUROPE AND LATIN AMERICA. THE PERCENTAGE OF FOREIGN-BORN RESIDENTS IN MELROSE IS CLOSER TO THE STATE AT 13%, WITH HIGHER PERCENTAGES OF AFRICAN AND ASIAN FOREIGN-BORN RESIDENTS. OVERALL, 20.8% OF THE CATCHMENT AREA POPULATION IS FOREIGN BORN, OF WHICH 42.5% WERE BORN IN CENTRAL AND SOUTH AMERICA, 28.3% IN ASIA, 18.8% IN EUROPE, AND 7.9% IN AFRICA. IN TERMS OF ETHNIC ORIGIN, 7% OF THE CATCHMENT AREA POPULATION IDENTIFIES AS ASIAN, PREDOMINANTLY CHINESE (47.3%), VIETNAMESE (16.8%), INDIAN (16.1%), AND FILIPINO (4.3%). 6.4% OF THE TOTAL POPULATION IDENTIFIES AS HISPANIC/LATINO, INCLUDING A MIX OF CARIBBEAN, CENTRAL AND SOUTH AMERICAN BACKGROUNDS. OF THE POPULATION THAT IDENTIFIED AS LATINO, THE LARGEST GROUPS REPRESENTED INCLUDE SALVADORAN (21.2%), PUERTO RICAN (16.9%), MEXICAN (10.4%), GUATEMALAN (9.1%), DOMINICAN (7.9%), AND COLOMBIAN (7.2%). LANGUAGE BASED ON CENSUS DATA, THE MOST COMMON LANGUAGES SPOKEN IN THE CATCHMENT AREA, BESIDES ENGLISH, INCLUDE SPANISH, PORTUGUESE, CHINESE (MANDARIN AND CANTONESE DIALECTS), ARABIC, AND VIETNAMESE. IN MANY CASES, A MAJORITY OF THE SPEAKERS OF MANY OF THE MOST COMMON LANGUAGES ALSO REPORT THEIR SPOKEN ENGLISH PROFICIENCY AS "LESS THAN VERY WELL", INCLUDING PORTUGUESE (53.56%), CHINESE (67.26%), VIETNAMESE (58.59%), AND ARABIC (60.10%). OTHER LESS PREVALENT BUT BECOMING INCREASINGLY MORE COMMON LANGUAGES WITHIN THE CATCHMENT AREA INCLUDE HAITIAN CREOLE, FRENCH, ITALIAN, URDU, KHMER- CAMBODIAN, RUSSIAN, SERBO-CROATIAN, AND VARIOUS AFRICAN DIALECTS. HALLMARK HEALTH INTERPRETER SERVICES REPORTED AN INCREASE OF 1.7% FROM THE PREVIOUS YEAR OF COMPLETED INTERPRETER REQUESTS, WITH 3,500 REQUESTS COMPLETED IN FY 2015/TY 2014. HALLMARK HEALTH CONTRACTS WITH A SERVICE PROVIDER FOR A VARIETY OF LANGUAGE INTERPRETERS AND ALSO WITH THE MASSACHUSETTS COMMISSION FOR THE DEAF AND HARD OF HEARING FOR AMERICAN SIGN LANGUAGE INTERPRETERS (ASL). THE PROGRAM ALSO EMPLOYS PER DIEM STAFF INTERPRETERS TO SUPPLEMENT THE INTERPRETER SERVICES CONTRACT. IN ADDITION, LANGUAGE LINE TELEPHONE INTERPRETER SERVICES ARE AVAILABLE FOR RARELY ENCOUNTERED LANGUAGES OR WHEN TIMELY IN-PERSON INTERPRETER SERVICES CANNOT BE ACCESSED, SUCH AS DURING EMERGENCIES. AGE & BIRTH RATES COMPARED TO MASSACHUSETTS, MEDFORD, MELROSE, SAUGUS, STONEHAM AND WAKEFIELD ALL HAVE LARGER ELDERLY POPULATIONS. EVERETT, NORTH READING AND READING HAVE LARGER POPULATIONS OF CHILDREN, AND THE AGE DISTRIBUTION IN MALDEN IS COMPARABLE TO THE STATE. LOOKING AT THE HHS CB SIX-COMMUNITY CORE CATCHMENT AREA AS A WHOLE, THE BIRTH RATE IS HIGHER THAN IN THE STATE FOR WOMEN AGES 30 TO 44 (74.3 BIRTHS PER 1,000 WOMEN VS. 58.4 BIRTHS PER 1,000 WOMEN STATEWIDE; SEE APPENDIX E). EVERETT, MALDEN, NORTH READING, READING, SAUGUS, AND STONEHAM ALL HAVE HIGHER BIRTH RATES THAN IN THE STATE FOR WOMEN AGES 20 TO 29, AND MALDEN, MEDFORD, MELROSE, READING, STONEHAM, AND WAKEFIELD HAVE HIGHER BIRTH RATES FOR WOMEN AGES 30 TO 44. INCOME, POVERTY & CRIME MEDIAN HOUSEHOLD INCOME LEVELS IN THE HHS CB CATCHMENT AREA RANGE FROM 49,737 IN EVERETT TO 99,130 IN READING, COMPARED TO A STATE MEDIAN INCOME LEVEL OF 64,509. COMPARED TO THE STATE, EVERETT AND MALDEN HAVE HIGHER POVERTY RATES FOR CHILDREN, FAMILIES, AND THE ELDERLY. MEDFORD AND STONEHAM HAVE HIGHER ELDERLY POVERTY RATES. NORTH READING, READING, STONEHAM AND WAKEFIELD - THE COMMUNITIES WITH THE HIGHEST MEDIAN INCOME LEVELS - HAVE LOWER OVERALL POVERTY RATES COMPARED TO THE STATE. CRIME RATES FOR VIOLENT AND PROPERTY CRIMES ARE HIGHER IN EVERETT AND MALDEN THAN IN THE STATE, AND MUCH LOWER THAN IN THE STATE FOR MELROSE, NORTH READING, READING, STONEHAM AND WAKEFIELD. SAUGUS HAS ALMOST TWICE THE STATE RATE OF PROPERTY CRIMES, BUT A LOWER VIOLENT CRIME RATE. EDUCATIONAL ATTAINMENT & UNEMPLOYMENT EDUCATIONAL ATTAINMENT VARIES BY COMMUNITY IN THE HHS CB CATCHMENT AREA. COMPARED TO THE STATE, EVERETT, MALDEN AND SAUGUS HAVE HIGHER PERCENTAGES OF RESIDENTS WITH ONLY A HIGH SCHOOL DEGREE OR LESS. RESIDENTS OF MEDFORD AND STONEHAM HAVE COMPARABLE LEVELS OF EDUCATIONAL ATTAINMENT, AND MELROSE, NORTH READING, READING, AND WAKEFIELD RESIDENTS HAVE HIGHER LEVELS OF EDUCATIONAL ATTAINMENT. SINCE THE COMPLETION OF THE CHNA, UNEMPLOYMENT RATES WITHIN THE CATCHMENT AREA HAVE FALLEN, CONSISTENT WITH TRENDS ACROSS THE COMMONWEALTH. ESTIMATED UNEMPLOYMENT DATA FOR THE END OF FY 2014 SHOWS RATES OF UNEMPLOYMENT IN EACH COMMUNITY AT OR BELOW THE STATEWIDE SEASONALLY ADJUSTED UNEMPLOYMENT RATE OF 5.6%, WITH THE EXCEPTION OF EVERETT AT 6.0% AND SAUGUS AT 5.7% RESPECTIVELY. PUBLIC SCHOOL ENROLLMENT: DEMOGRAPHICS & SPECIAL POPULATIONS THE DEMOGRAPHICS OF THE PUBLIC SCHOOL POPULATIONS IN THE NINE HHS CB TOWNS GENERALLY MIRROR THE DEMOGRAPHICS OF THE TOWNS AS A WHOLE, WITH MELROSE, NORTH READING, READING, STONEHAM, SAUGUS AND WAKEFIELD ALL HAVING LESS THAN 20% NON-WHITE STUDENTS (COMPARED TO 33% NON-WHITE PUBLIC SCHOOL STUDENTS IN THE STATE OF MASSACHUSETTS). EVERETT, MALDEN AND MEDFORD ALL HAVE LARGER NON-WHITE STUDENT POPULATIONS THAN IN THE STATE, WITH EVERETT AND MALDEN HAVING PARTICULARLY HIGH PERCENTAGES OF NON-WHITE PUBLIC SCHOOL STUDENTS (60% AND 67% RESPECTIVELY). LOOKING AT SPECIAL POPULATIONS IN THE PUBLIC SCHOOL DISTRICTS IN THE HHS CB CATCHMENT AREA COMPARED TO THE STATE, MEDFORD AND STONEHAM HAVE SLIGHTLY HIGHER PERCENTAGES OF PUBLIC SCHOOL STUDENTS ENROLLED IN SPECIAL EDUCATION. EVERETT, MALDEN AND MEDFORD HAVE HIGHER PERCENTAGES OF STUDENTS WHOSE FIRST LANGUAGE IS NOT ENGLISH, AND EVERETT AND MALDEN HAVE HIGHER PERCENTAGES OF STUDENTS WITH LIMITED ENGLISH PROFICIENCY. EVERETT AND MALDEN ALSO HAVE HIGHER PERCENTAGES OF STUDENTS WHO QUALIFY FOR FREE OR REDUCED LUNCH. SELF-REPORTED YOUTH RISK BEHAVIORS RELATED TO SUBSTANCE USE, SEXUAL ACTIVITY AND MENTAL HEALTH CONCERNS AMONGST PUBLIC HIGH SCHOOL STUDENTS INCLUDES DATA FROM SIX COMMUNITIES: EVERETT
PART VI, LINE 5 - PROMOTION OF COMMUNITY HEALTH	HALLMARK HEALTH HAS A 14 MEMBER BOARD OF TRUSTEES, COMPRISED OF A MAJORITY OF COMMUNITY MEMBERS. ONLY THREE (3) OF 14 TRUSTEES ARE EMPLOYED BY HALLMARK HEALTH OR THE HOSPITAL'S PARENT, HALLMARK HEALTH CORPORATION (THESE ARE THE CHIEF EXECUTIVE OFFICER, THE CHIEF OPERATING OFFICER, AND AN EMPLOYED PHYSICIAN LEADER). MEDICAL STAFF MEMBERSHIP AND PRIVILEGES ARE OPEN AND AVAILABLE TO ALL QUALIFIED PHYSICIANS, INCLUDING A LARGE AND DIVERSE MEDICAL STAFF OF MORE THAN 400 MEMBERS (EMPLOYED AND AFFILIATED). HALLMARK HEALTH OPERATES ACTIVE EMERGENCY DEPARTMENTS ON EACH OF ITS CAMPUSES. THEY ARE ACCESSIBLE TO ANYONE NEEDING CARE REGARDLESS OF THEIR ABILITY TO PAY. NO PART OF THE INCOME OF HALLMARK HEALTH INURES TO THE BENEFIT OF ANY PRIVATE INDIVIDUAL NOR IS ANY PRIVATE INTEREST BEING SERVED. ALL SURPLUS FUNDS ARE REINVESTED INTO THE FACILITIES, EQUIPMENT OR PROGRAMS OF HALLMARK HEALTH TO IMPROVE THE QUALITY OF PATIENT CARE, ACCESS TO CARE, ADVANCE MEDICAL PRACTICE AND TO IMPROVE THE COMMUNITIES HEALTH AND WELLBEING. IN FY 2015/TY 2014, HALLMARK HEALTH FINANCIAL COUNSELORS PROVIDED 2,330 INTERACTIONS WITH COMMUNITY MEMBERS AND COMPLETED 1,849 APPLICATIONS FOR INDIVIDUALS IN THE STATE HEALTH PROGRAMS; SUCH AS MASS HEALTH PROGRAMS, COMMONWEALTH CARE, CHILDREN'S MEDICAL SECURITY PLAN, HEALTHY START AND THE HEALTH SAFETY NET. THIS DOES NOT INCLUDE INTERACTIONS THAT DID NOT RESULT IN AN APPLICATION. HALLMARK HEALTH SYSTEM FINANCIAL NAVIGATORS ALSO HELPED PATIENTS TO ENROLL IN SNAP (FORMERLY FOOD STAMPS) AND OTHER SOCIAL SERVICE PROGRAMS. IN ADDITION, NAVIGATORS ATTENDED SEVERAL DOZEN COMMUNITY OUTREACH EVENTS, AND HOSTED THREE FINANCIAL ACCESS-SPECIFIC EVENTS TO SSIST PARTICIPANTS AND PROVIDE ENROLLMENT INFORMATION. OTHER SERVICES PROVIDED INCLUDE ADVOCATING FOR RESIDENTS, MAKING APPOINTMENTS, PROCURING OTHER SERVICES AND PROVIDING INFORMATION ABOUT PROGRAMS SUCH AS THE MOBILE FOOD MARKET. BILLING AND COLLECTIONS PRACTICES ARE ALSO POSTED ON THE SYSTEM WEB SITE. HALLMARK HEALTH ALSO PROVIDED MEETING SPACE IN-KIND AND SUBSIDIZED OR PROVIDED RENT AND UTILITIES IN-KIND FOR KEY COMMUNITY PARTNERS, SUCH AS PORTAL TO HOPE, WHICH PROVIDES DOMESTIC VIOLENCE PREVENTION AND SUPPORT SERVICES. MEETING SPACE IS OFFERED TO COMMUNITY AGENCIES ON A REGULAR BASIS, WHEN MISSION AND GOALS ALIGN WITH THE PRIORITIES OF THE COMMUNITY BENEFITS IMPLEMENTATION PLAN, SUCH AS ALCOHOLICS/OVEREATERS ANONYMOUS GROUPS,AND MELROSE ALLIANCE AGAINST VIOLENCE. IN ADDITION TO PROVIDING A RANGE OF PROGRAMS TO ADDRESS PRIMARY AND SECONDARY HEALTH PRIORITIES IDENTIFIED IN THE COMMUNITY HEALTH NEEDS ASSESSMENT, THE HEALTH SYSTEM HAS ALSO BEGUN, AS PART OF ITS MULTI-YEAR IMPLEMENTATION PLAN, TO IDENTIFY AND IMPLEMENT EFFORTS THAT MORE PROACTIVELY ADDRESS FACTORS THAT HAVE BEEN DEMONSTRATED TO ADVERSELY IMPACT HEALTH STATUS, INCREASE HEALTH DISPARITIES, AND REDUCE OVERALL HEALTH IN VULNERABLE POPULATIONS. THESE SO CALLED SOCIAL DETERMINANTS OF HEALTH, SUCH AS AVAILABILITY OF FOOD, EMPLOYMENT, AND SAFE HOUSING, REFLECT THE OPPORTUNITY TO HAVE MEASURABLE IMPACT ON HEALTH STATUS, AND ARE BECOMING A MEANINGFUL PART OF EFFORTS TO ADDRESS PRIMARY AND SECONDARY HEALTH PRIORITIES. EXAMPLES OF THESE EFFORTS, AND THEIR IMPACT BOTH DIRECTLY AND INDIRECTLY ON THE HEALTH PRIORITIES IDENTIFIED IN THE CHNA AND BY OTHER COMMUNITY STAKEHOLDERS, INCLUDE: INTEGRATED BREASTFEEDING SERVICES AS A BABY FRIENDLY HOSPITAL, PROVIDING NEW MOTHERS WITH AN INTEGRATED APPROACH TO ENCOURAGING BREASTFEEDING SUPPORTS A NUMBER OF KEY FACTORS IN REDUCING A NUMBER OF ISSUES FOR MOTHER AND CHILD ALIKE. LACTATION SERVICES FOR POST-PARTUM MOTHERS ARE AVAILABLE BOTH AT MELROSE-WAKEFIELD HOSPITAL, AND AT THREE BABY CAFES IN MELROSE, MALDEN, AND EVERETT. ALL MATERNAL/CHILD HEALTH STAFF, CHILDBIRTH EDUCATION STAFF, AND NORTH SUBURBAN WIC NUTRITIONIST AND FAMILY SUPPORT STAFF ARE CERTIFIED IN LACTATION (CLC OR IBCLC DEPENDING ON OTHER CLINICAL TRAINING). BREASTFEEDING HAS BEEN SHOWN TO REDUCE A MOTHER'S RISK OF BREAST CANCER, AND ALSO IDENTIFIED AS AN EVIDENCE-BASED APPROACH TO REDUCE OBESITY IN CHILDREN, REDUCE RISK FOR CANCER AND OTHER CHRONIC DISEASES LATER IN LIFE. ENCOURAGING HEALTHY FOOD CONSUMPTION SEVERAL HOSPITAL DEPARTMENTS AND CLINICAL AREAS, INCLUDING DIABETES, REHAB SERVICES, NUTRITION, AND WIC, ALL SUPPORT HEALTHY EATING-REDUCING CONSUMPTION OF ADDED SUGAR, EATING AMPLE FRUITS AND VEGETABLES, AND EDUCATION PROGRAMS TARGETING THE DIETARY NEEDS AND CHALLENGES OF STUDENT ATHLETES, CANCER PATIENTS, AND OTHERS IN THE COMMUNITY LIVING WITH CHRONIC DISEASES SUCH AS HYPERTENSION AND DIABETES. THE HEALTH SYSTEM WORKS WITH ORGANIZATIONS SUCH AS HEALTH CARE WITHOUT HARM, AROUND ADDRESSING FOOD INSECURITY AND ACCESS TO HEALTHY FOODS. NUTRITION AND DIETARY STAFF SUPPORT THE CREATION OF HEALTHY MENU OPTIONS, NOT ONLY FOR HOSPITAL INPATIENTS AND IN CAFETERIAS, BUT ALSO THROUGH PROGRAMS SUCH AS MASS IN MOTION HEALTHY DINING OPTIONS OFFERED IN LOCAL RESTAURANTS, CREATED WITH ASSISTANCE OF HOSPITAL DIETICIANS AND NUTRITIONISTS. EFFORTS ALSO EXTEND TO DIRECTLY SUPPORT INCREASED ACCESS TO HEALTHY FOODS, INCLUDING FRESH FRUITS AND VEGETABLES PROVIDED THROUGH A MOBILE FOOD MARKET SERVING 400-500 FAMILIES PER MONTH WITH 30 LBS. EACH OF FRESH, HEALTHY FOODS. VOUCHERS FROM WIC TO ITS PROGRAM PARTICIPANTS ARE ALSO PROVIDED TO USE AT LOCAL FARMERS' MARKETS DURING SUMMER MONTHS. WORKPLACE WELLNESS EFFORTS, IN TERMS OF INCREASING PHYSICAL ACTIVITY, AS WELL AS PROMOTING WEIGHT LOSS AND HEALTHIER EATING, HAVE BEEN IMPLEMENTED DURING FY 2015/TX 2014 THROUGH THE WORK OF THE EMPLOYEE WELLNESS COMMITTEE. CORRELATING GREATER PHYSICAL HEALTH AND WELLBEING THROUGH REDUCTIONS IN OBESITY, CARDIOVASCULAR AND OTHER RELATED HEALTH PROBLEMS, SUPPORTS A WHOLE-HEALTH APPROACH TO REDUCING CHRONIC DISEASE AND THE IMPACTS OF TREATMENT BY PRESENTING OPPORTUNITIES TO IDENTIFY AND REDUCE THESE HEALTH RISKS. SUPPORTING REGIONAL TOBACCO PREVENTION AND REDUCTION EFFORTS THE HEALTH SYSTEM WORKS ACTIVELY WITH THE MYSTIC VALLEY TOBACCO AND ALCOHOL PROGRAM, AROUND REGIONAL SOLUTIONS TO TOBACCO CONTROL AND PREVENTION, INCLUDING STANDARDIZATION OF LOCAL ORDINANCES RELATED TO THE SALE OF TOBACCO, MONITORING OF REGULATION AND ENFORCEMENT OF BANS TO MINORS, AND OTHER PREDATORY PRACTICES RELATED TO THE SALE OF TOBACCO PRODUCTS. THE ADVENT OF E-CIGARETTES AS VEHICLES FOR NICOTINE AND OTHER SUBSTANCE DELIVERY HAS ALSO PROMPTED REGIONAL RESPONSES TO ADDRESS THEIR USE, ESPECIALLY IN SCHOOL AGE POPULATIONS, GIVEN THE UNKNOWN RISKS AND POTENTIAL FUTURE CAUSATION TO REGULAR TOBACCO USE. AS PART OF THE MYSTIC VALLEY PUBLIC HEALTH COALITION ,MVTAP ALSO WORKS WITH THE REGION'S MASSACHUSETTS OPIOID ABUSE PREVENTION COLLABORATIVE(MOPAC) , SERVING SIX HHS SERVICE AREA COMMUNITIES. MVTAP AND MOAPC WORK IN TANDEM, GIVEN DOCUMENTED HIGHER RATES OF ALCOHOL CONSUMPTION, TOBACCO AND TOBACCO- BASED PRODUCT USE AMONG INDIVIDUALS WITH SUBSTANCE USE DISORDERS. ALONG WITH HALLMARK HEALTH, THESE PARTNERSHIPS ALSO WORK TO ADDRESS THE CO-MORBID BEHAVIORAL HEALTH CONDITIONS IMPACTING INDIVIDUALS WITH SUBSTANCE USE DISORDERS, AS WELL AS ATTEMPTING TO MITIGATE AND REDUCE THEIR INCREASED ODDS FOR CHRONIC HEALTH CONDITIONS, INCLUDING HEPATITIS, HIV/AIDS, DIABETES, CARDIOVASCULAR DISEASE, AS WELL AS MULTIPLE ADVERSE SOCIAL DETERMINANT FACTORS. THESE ISSUES CONTINUE TO IMPACT INDIVIDUALS, EVEN WHEN THEY ARE IN ACTIVE RECOVERY. REDUCING ENVIRONMENTAL FACTORS IMPACTING DISEASE HALLMARK HEALTH PROMOTES SEVERAL EFFORTS FOCUSED AROUND REDUCTION OF ITS CARBON FOOTPRINT, GREENHOUSE GAS, PARTICULATE AND OTHER EMISSIONS. THIS INCLUDES ENERGY EFFICIENCY UPGRADES IN INFRASTRUCTURE AND PHYSICAL PLANT AND THE ADDITION OF ELECTRIC VEHICLE CHARGING STATIONS AT EACH HOSPITAL CAMPUS TO ENCOURAGE USE OF ZERO-EMISSION VEHICLES IN THE COMMUNITY. GREEN TECHNOLOGY HAS THE SECONDARY BENEFIT OF REDUCING TRIGGERS FOR ASTHMA AND OTHER RESPIRATORY DISEASES, AS WELL AS RISKS FOR CERTAIN CANCERS. IMMUNIZATION AND VACCINATION, PARTICULARLY RELATED TO THE HUMAN PAPILLOMA VIRUS (HPV), CAN ALSO BE A SUBSTANTIAL PREVENTIVE FACTOR IN PROTECTING AGAINST FUTURE INFECTION AND SUBSEQUENT CERVICAL CANCER IN WOMEN AND ORAL/HEAD/NECK CANCERS IN BOTH MALES AND FEMALES. THE HOSPITAL SUPPORTS IMMUNIZATION FOR HPV, AS WELL AS THE FULL TIMELINE OF RECOMMENDED VACCINATIONS, THROUGH ITS PRIMARY CARE PRACTICES, THE SERVICES PROVIDED IN ITS WIC PROGRAM, AND WITH COMMUNITY PARTNERS SUCH AS THE JOINT COMMITTEE FOR CHILDREN'S HEALTH CARE IN EVERETT. REMEMBRANCE EVENTS, INCLUDING AN ANNUAL TREE LIGHTING HONORING THOSE LOST TO CANCER IN STONEHAM, WHERE THE HEALTH SYSTEM'S CANCER CENTER IS LOCATED, HELPS FORM A CONNECTION TO THOSE LOST WITH THE OPPORTUNITY TO ENCOURAGE SCREENING AND EDUCATION. HIGHLIGHTING RISKS AMONG FAMILY MEMBERS AND OTHER LOVED ONES OF THOSE IMPACTED BY CANCER, INCLUDING LOSS OF LIFE, CONNECTS THESE MESSAGES TO A RECEPTIVE AUDIENCE IN A WAY THAT EXTENDS THE REACH OF SCREENING AND CANCER PREVENTION MESSAGES. LASTLY, RECOGNIZING THAT DISEASE CAN BE
PART VI, LINE 6 - AFFILIATED HEALTH CARE SYSTEM	HALLMARK HEALTH SYSTEM IS A COMMUNITY HOSPITAL WITH MULTIPLE CAMPUSES AND IS A MEMBER OF HALLMARK HEALTH CORPORATION ("HHC"). HHC HAS OTHER MEMBER ORGANIZATIONS THAT INCLUDE A HOME HEALTH VISITING NURSE AND HOSPICE ENTITY AND A PHYSICIAN PRACTICE ORGANIZATION. ALL AFFILIATED ENTITIES PROVIDE PATIENT CARE WITHOUT CONSIDERATION OF A PATIENT'S ABILITY TO PAY. ALL SURPLUS FUNDS OF THE AFFILIATED ENTITIES ARE REINVESTED IN PROVIDING ACCESS TO HEALTH SERVICES AND IMPROVING HEALTH STATUS OF COMMUNITIES SERVED..
PART VI, LINE 7 - STATE FILING OF COMMUNITY BENEFIT REPORT	MASSACHUSETTS
ADDITIONAL INFORMATION	PART I, QUESTION 6A - DID THE ORGANIZATION PREPARE A COMMUNITY BENEFIT REPORT DURING THE TAX YEAR? IN ADDITION TO THE FORM 990 SCHEDULE H, HALLMARK HEALTH SYSTEM ISSUED A REPORT TO THE COMMONWEALTH OF MASSACHUSETTS, IN COMPLIANCE WITH THE REQUIREMENTS OF THE MA ATTORNEY GENERAL FOR REPORTING COMMUNITY BENEFITS. THIS REPORT IS SUBMITTED ANNUALLY AND POSTED TO A CENTRAL PUBLIC DATABASE ON THE MA AGO WEB SITE. HALLMARK HEALTH CURRENTLY DESIGNATES A SECTION OF THE HOSPITAL'S WEBSITE TO ITS COMMUNITY BENEFITS PROGRAM (HTTP://WWW.HALLMARKHEALTH.COM/COMMUNITY-BENEFITS.HTML) THAT HIGHLIGHTS THE TARGET POPULATIONS TO RECEIVE SERVICES, A FULL PDF VERSION OF THE CURRENT COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA) AND EXECUTIVE SUMMARY, THE MEMBERSHIP OF THE COMMUNITY BENEFITS ADVISORY COUNCIL, AND DESCRIPTIONS OF KEY PROGRAMS, OUTCOMES AND COMMUNITY PARTNERSHIPS. A SEPARATE OVERVIEW REPORT, HIGHLIGHTING KEY PROGRAMS AND AN OVERVIEW OF THE HOSPITAL'S COMMUNITY BENEFITS PROCESS AND ACTIVITIES, IS ALSO AVAILABLE ON LINE, WITH THE CHNA AND COMMUNITY BENEFITS IMPLEMENTATION PLAN, WHICH ARE ALSO IN PRINT VERSIONS AT EACH HOSPITAL CAMPUS (IN HUMAN RESOURCES) AND OTHER KEY PROGRAM SITES IN THE SERVICE AREA. IN ADDITION, HALLMARK HEALTH OFTEN FEATURES STORIES ABOUT COMMUNITY BENEFITS PROGRAMS IN THE QUARTERLY HALLMARK HEALTH SYSTEM MAGAZINE. THIS PUBLICATION REACHES MORE THAN 100,000 HOUSEHOLDS IN OUR SERVICE AREA. HALLMARK HEALTH ALSO PROMOTES COMMUNITY BENEFITS PROGRAMS THROUGH NEWS RELEASES, CALENDAR POSTINGS, FACEBOOK AND TWITTER MESSAGING, BULLETINS FOR LOCAL HOUSE OF WORSHIP AND SERVICE ORGANIZATIONS, AND LOCAL CABLE ACCESS TELEVISION STATIONS. FLYERS AND OCCASIONAL NEWSPAPER ADVERTISEMENTS AND POSTCARDS ARE ALSO DISSEMINATED WIDELY IN THE COMMUNITY TO NOTIFY RESIDENTS OF UPCOMING COMMUNITY BENEFITS PROGRAMS AND SERVICES.

Schedule H (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

HALLMARK HEALTH SYSTEMINC

Employer identification number

04-2767880

Part I

Questions Regarding Compensation

Yes

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

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

Travel for companions Payments for business use of personal residence

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

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

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

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

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

Compensation committee Written employment contract

Independent compensation consultant Compensation survey or study

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

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

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

Yes

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

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

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

Only 501(c)(3), 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)
1MVSACK PRESIDENT THRU 21115PRESIDENT	(i) (ii)	............................... 660,464	...............................	............................... 240,669	............................... 7,800	............................... 44,517	............................... 953,450	...............................
2WJ DOHERTY MDDIRECTOR / C00	(i) (ii)	............................... 421,143	............................... 63,278	............................... 16,225	............................... 7,529	............................... 2,474	............................... 510,649	...............................
3AMACDONALDPRESIDENT AS OF 21215PRESIDENT / FMR VP	(i) (ii)	............................... 283,533	...............................	...............................	...............................	............................... 1,340	............................... 284,873	...............................
4EPBUTLER MDDIRECTOR	(i) (ii)	57,833 ............................... 194,149	............................... 13,700	............................... 7,308	1,446 ............................... 5,471	............................... 33,974	59,279 ............................... 254,602	...............................
5J NANIACFO/ASST. TREASURER	(i) (ii)	............................... 387,273	...............................	............................... 65,919	............................... 7,800	............................... 18,922	............................... 479,914	...............................
6C WHIPPLEASST.CLERK/GEN COUN	(i) (ii)	............................... 294,284	...............................	............................... 11,352	............................... 7,800	............................... 26,645	............................... 340,081	...............................
7M TURILLIVP-FISCAL	(i) (ii)	264,769 ...............................	13,394 ...............................	10,303 ...............................	7,800 ...............................	27,483 ...............................	323,749 ...............................	...............................
8C DRESSERVP-INFORMATION SERVI	(i) (ii)	216,494 ...............................	...............................	...............................	4,041 ...............................	18,312 ...............................	238,847 ...............................	...............................
9M PIEROGVO-QUALITY ASSURANCE	(i) (ii)	193,680 ...............................	...............................	3,512 ...............................	3,015 ...............................	18,582 ...............................	218,789 ...............................	...............................
10N BITNERVP-EDUCATION	(i) (ii)	186,796 ...............................	...............................	...............................	2,860 ...............................	510 ...............................	190,166 ...............................	...............................
11J GIRAGOSPSYCH MD	(i) (ii)	263,993 ...............................	10,125 ...............................	...............................	5,836 ...............................	28,147 ...............................	308,101 ...............................	...............................
12D HARNETTCLINICAL MD	(i) (ii)	249,637 ...............................	...............................	9,616 ...............................	4,783 ...............................	22,291 ...............................	286,327 ...............................	...............................
13C BEISONPHYSICIAN - DIR.	(i) (ii)	225,265 ...............................	13,000 ...............................	...............................	...............................	3,163 ...............................	241,428 ...............................	...............................
14M CHOPRAPSYCH MD	(i) (ii)	231,126 ...............................	...............................	...............................	1,972 ...............................	1,694 ...............................	234,792 ...............................	...............................
15J THORPEACNO	(i) (ii)	177,683 ...............................	20,122 ...............................	24,664 ...............................	4,818 ...............................	11,953 ...............................	239,240 ...............................	...............................

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, PAGE 1, PART I, LINE 3	ANNUALLY THE HUMAN RESOURCES COMMITTEE OF THE ORGANIZATION COMPRISED OF INDEPENDENT DIRECTORS REVIEWS THE COMPENSATION OF THE PRESIDENT AND EXECUTIVE LEADERSHIP TEAM USING DATA FROM AN INDEPENDENT THIRD PARTY EVALUATION OF COMPARABLE COMPENSATION DATA TO ASSESS AND SET COMPENSATION. COMPENSATION IS PAID BY A RELATED CORPORATION.
SCHEDULE J, PAGE 1, PART I, LINE 4	M.V.SACK (PRESIDENT THRU 2/11/15) 558,857 0 0
SCHEDULE J, PART III	IN ORDER TO FULFILL ITS ARMS-LENGTH NEGOTIATED 2001 EMPLOYMENT AGREEMENT, WHICH INCLUDED GEOGRAPHICAL RELOCATION, ON JANUARY 20, 2015, AN ARMS-LENGTH NEGOTIATED SEPARATION AGREEMENT AND GENERAL RELEASE WAS ENTERED INTO BY AND BETWEEN HALLMARK HEALTH CORPORATION, HALLMARK HEALTH SYSTEM AND THEIR PRESIDENT AND CEO, MICHAEL V. SACK. THE TERMS OF THE AGREEMENT CALL FOR A SEVERANCE PAYMENT EQUAL TO TWO YEARS OF HIS CURRENT SALARY PAYABLE OVER TWENTY-FOUR MONTHS COMMENCING ON FEBRUARY 11, 2015. ACCORDINGLY, HE WAS PAID 558,856.71 IN 2015, AND WILL BE PAID 640,099.98 IN 2016 AND 81,243.46 IN 2017. NO SEVERANCE PAYMENT WAS PAID AS PART OF HIS W-2 IN CALENDAR YEAR 2014.

Schedule J (Form 990) 2014

Additional Data

Software ID:
Software Version:

- TIN:

Schedule K
(Form 990)

Department of the Treasury
Internal Revenue Service

Supplemental Information on Tax Exempt Bonds

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

Attach to Form 990.
SchKMediumBullet

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

OMB No. 1545-0047

2014

Open to Public
Inspection

Name of the organization
HALLMARK HEALTH SYSTEMINC

Employer identification number
04-2767880

Part I

Bond Issues

(a) Issuer name		(b) Issuer EIN	(c) CUSIP #	(d) Date issued	(e) Issue price	(f) Description of purpose	(g) Defeased		(h) On behalf of issuer		(i) Pool financing
(a) Issuer name		(b) Issuer EIN	(c) CUSIP #	(d) Date issued	(e) Issue price	(f) Description of purpose	Yes	No	Yes	No	Yes	No
A	MDFA COMM OF MASS	04-3431814	NONE00000	12-09-2011	10,000,000	FINANCE CAPITAL		X		X		X
B	MDFA COMM OF MASS	04-3431814	NONE00000	03-01-2013	49,606,243	REFUND 2011 A&B SERIES WHICH REFINDED 1998 SEIES A		X		X		X
C	MDFA MHEFA ( COMM OF MASS )	04-3431814	NONE00000	03-01-2013	19,800,000	RATE 2008 SERIES C WHICH REFUNDED 1998 SERIES B.		X		X		X
D	MDFA COMM OF MASS	04-3431814	NONE00000	03-01-2013	20,000,000	FINANCE CAPITAL		X		X		X

Part II

Proceeds

	A		B		C		D
	1 Amount of bonds retired . . . . . . . . . . . . . .	2,085,687		6,064,391		3,105,000		2,467,994
2 Amount of bonds legally defeased . . . . . . . . . . .
3 Total proceeds of issue . . . . . . . . . . . . . .	10,000,000		49,606,243		19,800,000		20,000,000
4 Gross proceeds in reserve funds . . . . . . . . . . . .
5 Capitalized interest from proceeds . . . . . . . . . . .
6 Proceeds in refunding escrows . . . . . . . . . . . .
7 Issuance costs from proceeds . . . . . . . . . . . .	250,528		500,695				98,939
8 Credit enhancement from proceeds . . . . . . . . . . .
9 Working capital expenditures from proceeds . . . . . . . . .
10 Capital expenditures from proceeds . . . . . . . . . . .
11 Other spent proceeds . . . . . . . . . . . . . .
12 Other unspent proceeds . . . . . . . . . . . . . .
13 Year of substantial completion . . . . . . . . . . . .	2012		2001		2001		2014
	Yes	No	Yes	No	Yes	No	Yes	No
14 Were the bonds issued as part of a current refunding issue? . . . . .		X	X			X		X
15 Were the bonds issued as part of an advance refunding issue? . . . . .		X		X		X		X
16 Has the final allocation of proceeds been made? . . . . . . . .	X		X		X		X
17 Does the organization maintain adequate books and records to support the final allocation of proceeds? . . . . . . . . . . . . . .	X		X		X		X

Part III

Private Business Use

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

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

Cat. No. 50193E

Schedule K (Form 990) 2014

Page 2

Part III

Private Business Use (Continued)

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
3a Are there any management or service contracts that may result in private business use of bond-financed property? . . . . . . . . . . . .		X		X		X		X
b If "Yes" to line 3a, does the organization routinely engage bond counsel or other outside counsel to review any management or service contracts relating to the financed property?
c Are there any research agreements that may result in private business use of bond-financed property? . . . . . . . . . . . . . . .		X		X		X		X
d If "Yes" to line 3c, does the organization routinely engage bond counsel or other outside counsel to review any research agreements relating to the financed property?
4 Enter the percentage of financed property used in a private business use by entities other than a section 501(c)(3) organization or a state or local government . .
5 Enter the percentage of financed property used in a private business use as a result of unrelated trade or business activity carried on by your organization, another section 501(c)(3) organization, or a state or local government . . . . . . .	0.310 %		0.310 %
6 Total of lines 4 and 5 . . . . . . . . . . . . .	0.310 %		0.310 %
7 Does the bond issue meet the private security or payment test? . . . . .		X		X		X		X
8a Has there been a sale or disposition of any of the bond-financed property to a nongovernmental person other than a 501(c)(3) organization since the bonds were issued?. . . . . . . . . . . . . . . . .		X		X		X		X
b If "Yes" to line 8a, enter the percentage of bond-financed property sold or disposed of.
c If "Yes" to line 8a, was any remedial action taken pursuant to Regulations sections 1.141-12 and 1.145-2? . . . . . . . . . . . . .
9 Has the organization established written procedures to ensure that all nonqualified bonds of the issue are remediated in accordance with the requirements under Regulations sections 1.141-12 and 1.145-2? . . . . . . .		X		X		X		X

Part IV

Arbitrage

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

Schedule K (Form 990) 2014

Page 3

Part IV

Arbitrage (Continued)

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

Part V

Procedures To Undertake Corrective Action

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
Has the organization established written procedures to ensure that violations of federal tax requirements are timely identified and corrected through the voluntary closing agreement program if self-remediation is not available under applicable regulations?		X		X		X		X

Part VI

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

Return Reference	Explanation
SCHEDULE K - DATE REBATE COMPUTATION PERFORMED	MDFA COMM OF MASS 10/30/14 MDFA COMM OF MASS 10/30/14 MDFA / MHEFA ( COMM OF MASS ) 10/30/14 MDFA COMM OF MASS 10/30/14

Schedule K (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

HALLMARK HEALTH SYSTEMINC

Employer identification number

04-2767880

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
(1) MV SACK		ARMS LENGTH NEGOTIATED BENEFIT		X	132,500	6,321,511		No	Yes		Yes
(2) J NANIA		ARMS LENGTH NEGOTIATED BENEFIT		X	115,296	1,489,987		No	Yes		Yes




Total ...... $						7,811,498

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	(c) Amount of transaction	(d) Description of transaction	(e) Sharing of organization's revenues?
(a) Name of interested person	(c) Amount of transaction	(d) Description of transaction	Yes	No

Part V

Supplemental Information
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 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

HALLMARK HEALTH SYSTEMINC

Employer identification number

04-2767880

Return Reference	Explanation
FORM 990, PAGE 1, ITEM C	MEDFORD MELROSE-WAKEFIELD HOSPITAL
FORM 990, PAGE 6, PART VI	THE ASSISTANT TREASURER AND THE ASSISTANT CLERKS (2) DO NOT VOTE. THE TERM FOR (4) DIRECTORS ENDED BY FEB 15, 2015.
FORM 990, PAGE 6, PART VI, LINE 6	HALLMARK HEALTH SYSTEM, INC. HAS APPROXIMATELY 147 COMMUNITY MEMBERS.
FORM 990, PAGE 6, PART VI, LINE 7A	MEMBERS ELECT BOARD OF TRUSTEES
FORM 990, PAGE 6, PART VI, LINE 7B	MEMBERS HAVE RIGHTS TO APPROVE DECISIONS OF BOARD AS REQUIRED BY THE ORGANIZATION'S ARTICLES, BYLAWS AND LAWS OF THE COMMONWEALTH OF MASSACHUSTTS.
FORM 990, PAGE 6, PART VI, LINE 11B	FORM 990 WAS PROVIDED TO THE GOVERNING BODY AND REVIEWED BY THE AUDIT & COMPLIANCE COMMITTEE PRIOR TO FILING.
FORM 990, PAGE 6, PART VI, LINE 12C	ANNUALLY THE GOVERNING BODY AND KEY EMPLOYEES ARE SENT THE POLICY AND REQUIRED TO COMPLETE A DISCLOSURE FORM THAT IS SUBMITTED TO THE OFFICE OF GENERAL COUNSEL FOR REVIEW.THE CONTENTS OF THE DISCLOSURES AND ACTIONS NECESSARY TO ADDRESS CONFLICTS ARE REVIEWED WITH THE CHAIR OF THE GOVERNING BODY'S BOARD AND ITS PRESIDENT.
FORM 990, PAGE 6, PART VI, LINE 15A	ANNUALLY THE HUMAN RESOURCES COMMITTEE OF THE ORGANIZATION COMPRISED OF INDEPENDENT DIRECTORS REVIEWS THE COMPENSATION OF THE PRESIDENT USING DATA FROM AN INDEPENDENT THIRD PARTY EVALUATION OF COMPARABLE COMPENSATION DATA TO ASSESS AND SET COMPENSATION. COMPENSATION IS PAID BY A RELATED CORPORATION.
FORM 990, PAGE 6, PART VI, LINE 15B	ANUALLY THE HUMAN RESOURCES COMMITTEE OF THE ORGANIZATION COMPRISED OF INDEPENDENT DIRECTORS REVIEWS THE COMPENSATION OF THE PRESIDENT AND EXECUTIVE LEADERSHIP TEAM USING DATA FROM AN INDEPENDENT THIRD PARTY EVALUATION OF COMPARABLE COMPENSATION DATA TO ASSESS AND SET COMPENSATION. COMPENSATION IS PAID BY A RELATED CORPORATION.
FORM 990, PAGE 6, PART VI, LINE 18	DOCUMENTS ARE AVAILABLE FOR PUBLIC INSPECTION UPON REQUEST TO THE OFFICE OF GENERAL COUNSEL. THE ORGANIZATION'S RETURNS AND FINANCIALS SHOULD ALSO BE AVAILABLE TO THE PUBLIC AT THE PUBLIC CHARITIES DIVISION OF MASSACHUSETTS WEBSITE.
FORM 990, PAGE 6, PART VI, LINE 19	DOCUMENTS ARE AVAILABLE FOR PUBLIC INSPECTION UPON REQUEST TO THE OFFICE OF GENERAL COUNSEL. THE ORGANIZATION'S RETURNS AND FINANCIALS SHOULD ALSO BE AVAILABLE TO THE PUBLIC AT THE PUBLIC CHARITIES DIVISION OF MASSACHUSETTS WEBSITE.
FORM 990, PART XI, LINE 9	UNREALIZED GAIN INVESTMENTS(NET CUMULATIVE EFFECT) -11,323,505 UNREALIZED GAIN-BENEFICIAL INTERESTS PERPETUAL TR. -911,961 PENSION LIABILITY ADJUSTMENT -2,525,127 NET ASSETS RELEASED FROM RESTRICTIONS-OPERATIONS -321,361 NET DISTRIBUTIONS TO AFFILIATES -12,065,788 HOSPITAL AUXILIARY, NET CHANGE -5,010 FRIENDS OF LMH, NET CHANGE 1,495

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

HALLMARK HEALTH SYSTEMINC

Employer identification number

04-2767880

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
(1) HALLMARK HEALTH SYS MWH AUXILIARY 170 GOVERNORS AVENUE MEDFORD,MA02155 04-2767880	GIFT SHOP	MA	123,490	13,533	HHS HALLMARK HEALTH SYSTEM INC
(2) HALLMARK HEALTH SYS FRIENDS OF LMH 170 GOVERMORS AVENUE MEDFORD,MA02155 04-2767880	GIFT SHOP	MA	139,952	12,771	HHS

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) HALLMARK HEALTH CORPORATION (HHC) 170 GOVERNORS AVE MEDFORD,MA02155 04-2103587	PARENT	MA	501C3	11C	NA N/A		No
(2) HALLMARK HEALTH VISITING NURSE & HOSPICE INC170 GOVERNORS AVE MEDFORD,MA02155 04-2437064	VISIT NURS	MA	501C3	9	HHC HALLMARK HEALTH CORPORATION		No
(3) HALLMARK HEALTH MEDICAL ASSOC INC 170 GOVERNORS AVE MEDFORD,MA02155 04-3140938	MD OFFICES	MA	501C3	9	HHC HALLMARK HEALTH CORPORATION		No
(4) LM LONG TERM CARE SERVICES INC 170 GOVERNORS AVE MEDFORD,MA02155 04-2938772	LT CARE	MA	501C3	11C	HHC HALLMARK HEALTH CORPORATION		No
(5) SAVIN LONG TERM CORPORATION 170 GOVERNORS AVE MEDFORD,MA02155 04-3012616	LT CARE	MA	501C3	9	HHC HALLMARK HEALTH CORPORATION		No
(6) HALLMARK HEALTH PROPERTIES INC 170 GOVERNORS AVE MEDFORD,MA02155 22-2580542	PROPERTY	MA	501C3	11C	HHC HALLMARK HEALTH CORPORATION		No

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	(e) Predominant income(related, unrelated, excluded from tax under sections 512-514)	(f) Share of total income	(g) Share of end-of-year assets	(h) Disproprtionate allocations?		(i) Code V-UBI amount in box 20 of Schedule K-1 (Form 1065)	(j) General or managing partner?		(k) Percentage ownership
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity		(f) Share of total income	(g) Share of end-of-year assets	Yes	No	(i) Code V-UBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No
(1) HALLMARK HEALTH INVESTMENTS LLC 170 GOVERNORS AVE MEDFORD,MA02155 02-0657666	INVESTMENT	MA	N/A					No			No	83.720 %
(2) MONTVALE PETCT LLC 100 BAYVIEW CIRCLE SUITE 400 NEWPORT BEACH,CA92660 27-0325022	CAT SCAN	CA	HHS HALLMARK HEALTH SYSTEM INC	RELATED	175,093	84,402		No			No	50.000 %

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	(i) Section 512(b)(13) controlled entity?
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(e) Type of entity (C corp, S corp, or trust)	(f) Share of total income	(g) Share of end-of-year assets	Yes	No
(1) HALLMARK HEALTH ENTERPRISES INC 585 LEBANON STREET MELROSE,MA02176 45-2475660	OTHER HLTH	MA	N/A					No

Schedule R (Form 990) 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) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

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

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

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

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

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

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

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

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

Yes

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

Yes

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

Yes

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

Yes

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

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

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

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

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

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) HALLMARK HEALTH CORPORATION	R	1,284,470	AUDITED BOOK VALUE
(2) HALLMARK HEALTH MEDICAL ASSOC INC	R	11,606,565	AUDITED BOOK VALUE
(3) HALLMARK HEALTH VISTING NURSE & HOSPICE INC	J	164,568	FAIR MARKET VALUE
(4) HALLMARK HEALTH MEDICAL ASSOC INC	J	448,258	FAIR MARKET VALUE
(5) HALLMARK HEALTH PROPERTIES INC	K	88,600	FAIR MARKET VALUE
(6) HALLMARK HEALTH CORPORATION	K	1,224,167	FAIR MARKRT VALUE
(7) HALLMARK HEALTH MEDICAL ASSOC INC	L	821,798	ACTUAL COST
(8) HALLMARK HEALTH VISTING NURSE & HOSPICE INC	L	53,210	COST & TIME ALLOCATION
(9) HALLMARK HEALTH CORPORATION	L	744,883	COST & TIME ALLOCATION
(10) HALLMARK HEALTH PROPERTIES INC	L	105,064	COST & TIME ALLOCATION
(11) HALLMARK HEALTH MEDICAL ASSOC INC	L	345,713	COST & TIME ALLOCATION
(12) HALLMARK HEALTH CORPORATION	M	3,467,358	COST & TIME ALLOCATION
(13) HALLMARK HEALTH MEDICAL ASSOC INC	M	60,828	ACTUAL COST
(14) HALLMARK HEALTH MEDICAL ASSOC INC	M	1,805,021	COST & TIME ALLOCATION
(15) HALLMARK HEALTH CORPORATION	S	613,688	LAND
(16) HALLMARK HEALTH PROPERTIES INC	S	211,559	LAND

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 (Form 990) 2014

Additional Data

Software ID:
Software Version:

1	Briefly describe the organization’s mission or most significant activities: TO OPERATE HOSPITALS WITH 24 HR ER SERVICES ON (2) CAMPUSES ALONG WITH A HOSPITAL SCHOOL OF NURSING.HALLMARK HEALTH PROVIDES INPATIENT AND OUTPATIENT MEDICAL CARE AND ANCILLARY MEDICAL SERVICES AND TESTING.
2	Check this box
3	Number of voting members of the governing body (Part VI, line 1a) ........	3	14
4	Number of independent voting members of the governing body (Part VI, line 1b) .....	4	11
5	Total number of individuals employed in calendar year 2014 (Part V, line 2a) ......	5	2,763
6	Total number of volunteers (estimate if necessary) .............	6	200
7a	Total unrelated business revenue from Part VIII, column (C), line 12 ........	7a	1,213,043
b	Net unrelated business taxable income from Form 990-T, line 34 .........	7b	-52

		Prior Year	Current Year
8	Contributions and grants (Part VIII, line 1h) .........	3,762,835	3,197,145
9	Program service revenue (Part VIII, line 2g) .........	251,332,829	257,448,228
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	9,432,590	8,997,494
11	Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)	1,266,618	1,228,500
12	Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)...................	265,794,872	270,871,367
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...		0
14	Benefits paid to or for members (Part IX, column (A), line 4).....		0
15	Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10)	152,574,801	151,123,687
16a	Professional fundraising fees (Part IX, column (A), line 11e).....		0
b	Total fundraising expenses (Part IX, column (D), line 25) 0
17	Other expenses (Part IX, column (A), lines 11a–11d, 11f–24e)....	98,505,345	105,667,427
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	251,080,146	256,791,114
19	Revenue less expenses. Subtract line 18 from line 12.......	14,714,726	14,080,253
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16).............	342,814,392	348,066,687
21	Total liabilities (Part X, line 26).............	164,899,962	183,223,261
22	Net assets or fund balances. Subtract line 21 from line 20.....	177,914,430	164,843,426

Sign Here

	Signature of officer	Date

	Type or print name and title


4a	(Code: ) (Expenses $ 201,908,990 including grants of $ ) (Revenue $ 257,448,228 )
	TO OPERATE HOSPITALS WITH 24 HR ER SERVICES ON (2)CAMPUSES ALONG WITH A HOSPITAL SCHOOL OF NURSING.HALLMARK HEALTH SYSTEM PROVIDES INPATIENT AND OUTPATIENT MEDICAL,SURGICAL AND PSYCHIATRIC CARE. ANCILLARY MEDICAL SERVICES AND TESTING ARE ALSO PROVIDED ON A INPATIENT AND OUTPATIENT BASIS IN AREAS SUCH AS LABORATORY, RADIOLOGY,EKG,EEG, PHARMACY, NUCLEAR MEDICINE,PHYSICAL THERAPY,OCCUPATIONAL THERAPY,RESPIRATORY THERAPY AND I.V. THERAPY.

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












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












4d	Other program services (Describe in Schedule O.)
	(Expenses $ including grants of $ ) (Revenue $ )
4e	Total program service expenses201,908,990

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)............	2,239,160	2,659,297	334,112

				(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		271,472
d	Related organizations...1d
e	Government grants (contributions)1e		1,844,902

f	All other contributions, gifts, grants, and similar amounts not included above1f		1,080,771

g	Noncash contributions included in lines 1a-1f:$		10,099
h	Total. Add lines 1a-1f.......			3,197,145
			Business Code
2a	MEDICAL SERVICES		622110	256,060,092	256,060,092
b	MEDICAL STAFF & SUPPORT SVS		541900	1,205,243		1,205,243
c	MONTVALE PET/CT K1		621512	175,093	175,093
d	BOND RENT		532000	7,800		7,800
e
f	All other program service revenue .
g	Total. Add lines 2a–2f........			257,448,228
3	Investment income (including dividends, interest, and other similar amounts).......			8,036,833			8,036,833
4	Income from investment of tax-exempt bond proceeds..
5	Royalties...........
		(i) Real	(ii) Personal
6a	Gross rents	1,273,150
b	Less: rental expenses
c	Rental income or (loss)	1,273,150
d	Net rental income or (loss).......			1,273,150			1,273,150
		(i) Securities	(ii) Other
7a	Gross amount from sales of assets other than inventory	38,418,282
b	Less: cost or other basis and sales expenses	37,457,621
c	Gain or (loss)	960,661
d	Net gain or (loss)..........			960,661			960,661
8a	Gross income from fundraising events (not including $ 271,472 of contributions reported on line 1c). See Part IV, line 18 ..
	a		63,079
b	Less: direct expenses ...b		107,729
c	Net income or (loss) from fundraising events..			-44,650			-44,650
9a	Gross income from gaming activities. See Part IV, line 19 ...
	a
b	Less: direct expenses ...b
c	Net income or (loss) from gaming activities...
10a	Gross sales of inventory, less returns and allowances .
	a
b	Less: cost of goods sold ..b
c	Net income or (loss) from sales of inventory..
Miscellaneous Revenue			Business Code
11a
b
c
d	All other revenue ....
e	Total. Add lines 11a–11d ......
12	Total revenue. See Instructions......			270,871,367	256,235,185	1,213,043	10,225,994


				(A) Beginning of year		(B) End of year
1	Cash–non-interest-bearing .............			12,806,386	1	6,083,111
2	Savings and temporary cash investments .........			1,478,003	2	1,482,337
3	Pledges and grants receivable, net ...........				3
4	Accounts receivable, net .............			28,312,902	4	25,788,579
5	Loans and other receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of Schedule L ..................
				7,594,334	5	7,811,498
6	Loans and other receivables from other disqualified persons (as defined under section 4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employers and sponsoring organizations of section 501(c)(9) voluntary employees' beneficiary organizations (see instructions) Complete Part II of Schedule L
					6
7	Notes and loans receivable, net .............				7
8	Inventories for sale or use ..............			2,988,262	8	2,967,391
9	Prepaid expenses and deferred charges ..........			8,570,671	9	7,199,728
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	381,892,256
b	Less: accumulated depreciation .....	10b	302,510,950	75,061,744	10c	79,381,306
11	Investments—publicly traded securities ..........			180,231,546	11	192,042,729
12	Investments—other securities. See Part IV, line 11 .....			10,671,604	12	9,759,643
13	Investments—program-related. See Part IV, line 11 .....				13
14	Intangible assets ...............				14
15	Other assets. See Part IV, line 11 ...........			15,098,940	15	15,550,365
16	Total assets. Add lines 1 through 15 (must equal line 34)......			342,814,392	16	348,066,687
17	Accounts payable and accrued expenses .........			35,820,653	17	36,396,723
18	Grants payable .................				18
19	Deferred revenue ................				19
20	Tax-exempt bond liabilities .............			92,072,881	20	115,683,171
21	Escrow or custodial account liability. Complete Part IV of Schedule D..				21
22	Loans and other payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........				22
23	Secured mortgages and notes payable to unrelated third parties ..			4,399,384	23	1,306,566
24	Unsecured notes and loans payable to unrelated third parties ....				24
25	Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D....................			32,607,044	25	29,836,801
26	Total liabilities. Add lines 17 through 25.........			164,899,962	26	183,223,261
	Organizations that follow SFAS 117 (ASC 958), check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets ..............			159,733,994	27	147,660,443
28	Temporarily restricted net assets ...........			2,818,232	28	2,732,340
29	Permanently restricted net assets ...........			15,362,204	29	14,450,643
	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 ...........			177,914,430	33	164,843,426
34	Total liabilities and net assets/fund balances ........			342,814,392	34	348,066,687