TY 2015 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)
(1) ALEXANDERCHARLOTTE B MD...................................................................... Director	1.0 ................. 0.0	X	7,597	3,384
(2) CALIJOSEPH R MD...................................................................... Director	1.0 ................. 0.0	X	0	0
(3) CAMPBELLWILLIAM J...................................................................... Director	1.0 ................. 0.0	X	0	0
(4) CANNONDEBORAH M...................................................................... Director	1.0 ................. 0.0	X	0	0
(5) CAZALOTCLARENCE P Jr...................................................................... Director	1.0 ................. 0.0	X	0	0
(6) CROYLEROBERT G...................................................................... Director	1.0 ................. 0.0	X	0	0
(7) EASTERWILLIAM H III...................................................................... Director	1.0 ................. 0.0	X	0	0
(8) FEWJASON B...................................................................... Director	1.0 ................. 0.0	X	0	0
(9) GALTNEYWILLIAM F JR...................................................................... Director	1.0 ................. 0.0	X	0	0
(10) GARCIAROLAND JR...................................................................... Director	1.0 ................. 0.0	X	0	0
(11) GIGLIOJ KEVIN MD...................................................................... Director	1.0 ................. 0.0	X	300	0
(12) GRAHAMDAVID J...................................................................... Director	1.0 ................. 0.0	X	0	0
(13) HUNTSMANPETER R...................................................................... Director	1.0 ................. 0.0	X	0	0
(14) MCBRIDERALPH D...................................................................... Director	1.0 ................. 0.0	X	0	0
(15) MCCLELLANDSCOTT B...................................................................... Director	1.0 ................. 0.0	X	0	0
(16) MCLEANSCOTT J...................................................................... Director	1.0 ................. 0.0	X	0	0
(17) MIRGASPER III...................................................................... Director	1.0 ................. 0.0	X	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) MONTAGUEJAMES R........................................................................ Director	1.0 .......................0.0	X					0	0
(19) PERRINMELINDA H........................................................................ Director	1.0 .......................0.0	X					0	0
(20) POSTLJAMES J........................................................................ Director	1.0 .......................0.0	X					0	0
(21) POUNSSTEPHEN H........................................................................ Director	1.0 .......................0.0	X					0	0
(22) STRAKEGEORGE W III........................................................................ Director	1.0 .......................0.0	X					0	0
(23) WILLIAMSWILLOUGHBY C JR........................................................................ Chairman	1.0 .......................0.0	X					0	0
(24) CHUBENJAMIN K MD........................................................................ Ex Officio	50.0 .......................0.0	X	X				0	0
(25) WOLTERMANDAN J........................................................................ Director; President & CEO	50.0 .......................1.0	X	X				3,238,155	2,119,983
(26) GORDONDEBORAH........................................................................ EVP & Chief Legal & Secretary	50.0 .......................0.0		X				821,026	136,148
(27) LARAWAYDENNIS L........................................................................ EVP & CFO & Treasurer	50.0 .......................0.0		X				1,470,987	234,017
(28) SHABOTMICHAEL........................................................................ EVP, Chief Clinical Officer	50.0 .......................0.0		X				1,309,915	164,631
(29) SHEAWARREN........................................................................ VP,Deputy Gen Counsel,Asst Sec	50.0 .......................0.0		X				498,132	89,507
(30) STOKESCHARLES D........................................................................ EVP, Chief Operating Officer	50.0 .......................0.0		X				1,740,614	229,733
(31) ALEXANDERKEITH........................................................................ SVP, Regional President North	50.0 .......................0.0			X			960,327	148,634
(32) ASPRECERIN S........................................................................ SVP, Regional President - Sout	50.0 .......................0.0			X			946,773	118,597
(33) BRACERODNEY........................................................................ SVP, Regional President - Serv	50.0 .......................0.0			X			1,128,256	145,562
(34) BRADSHAWDAVID........................................................................ EVP & Chief Strategy & Info	50.0 .......................0.0			X			1,154,366	168,156
(35) CORDOLACRAIG A........................................................................ SVP,Regional President Central	50.0 .......................0.0			X			1,263,761	181,527
(36) DEANBRIAN........................................................................ SVP, CEO - TMC	50.0 .......................0.0			X			554,246	78,682
(37) GARMANJAMES........................................................................ EVP, Chief HR Officer	50.0 .......................0.0			X			1,054,019	158,061
(38) O'SULLIVANPAUL C........................................................................ SVP, CEO - Memorial City	50.0 .......................0.0			X			622,228	92,264
(39) URBANJOSHUA........................................................................ SVP, CEO - The Woodlands	50.0 .......................0.0			X			671,354	118,298
(40) BARBEBRIAN S........................................................................ SVP, CEO - Cypress	50.0 .......................0.0				X		826,796	106,458
(41) DISTEFANOSUSAN M........................................................................ SVP, CEO - Children's	50.0 .......................0.0				X		758,654	106,496
(42) HEINSMARSHALL B........................................................................ SVP, Chief Facility Services	50.0 .......................0.0				X		1,326,319	146,212
(43) KERRGARY........................................................................ SVP, CEO - Southwest	50.0 .......................0.0				X		821,792	118,031
(44) REIMERRENEE........................................................................ SVP, Chief Risk Officer	50.0 .......................0.0				X		817,145	66,817
(45) BROWNJAMES B........................................................................ Former Key Employee	50.0 .......................0.0					X	651,770	101,343
(46) JADLOWSKISUSAN L........................................................................ Former Key Employee	50.0 .......................0.0					X	634,458	107,688
(47) JOSEHARTCARL E........................................................................ Former Key Employee	50.0 .......................0.0					X	670,167	92,352
(48) METZGERPAT........................................................................ Former Key Employee	50.0 .......................0.0					X	511,682	70,024
(49) PARETCAROL J........................................................................ Former Key Employee	50.0 .......................0.0					X	551,899	90,195
(50) SMITHLOUIS G JR........................................................................ Former Key Employee	50.0 .......................0.0					X	136,663	7,509
(51) TREVINOILEANA V........................................................................ Former Key Employee	50.0 .......................0.0					X	608,047	96,929

(A) Name and business address	(B) Description of services	(C) Compensation
J T Vaughn Construction LLC, 10355 West Park Dr HOUSTON,TX77042	Contractor	31,733,725
Sodexo, 1669 Phoenix Parkway COLLEGE PARK,GA30349	Food Serevice	72,205,716
Universal Hospital Services, PO Box 86 SDS 12-0940 MINNEAPOLIS,MN55486	Professional service	72,383,079
Balfour Beatty Construction, 3100 McKinnon DALLAS,TX75201	Contractor	61,249,834
Crothall Healthcare, 13028 Collection Center Dr CHICAGO,IL60693	Housekeeping	49,107,518
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 373

- 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

2015

Open to Public
Inspection

Name of the organization

Memorial Hermann Health System

Employer identification number

74-1152597

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 (Form 990 or 990-EZ))

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 990-EZ.

Cat. No. 11285F

Schedule A (Form 990 or 990-EZ) 2015

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) 2011	(b) 2012	(c) 2013	(d) 2014	(e) 2015	(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) 2011	(b) 2012	(c) 2013	(d) 2014	(e) 2015	(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 2015 (line 6, column (f) divided by line 11, column (f)) .........

Public support percentage for 2014 Schedule A, Part II, line 14 ...............

16a

33 1/3% support test—2015. 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—2014. 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—2015. 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—2014. 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) 2015

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) 2011	(b) 2012	(c) 2013	(d) 2014	(e) 2015	(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) 2011	(b) 2012	(c) 2013	(d) 2014	(e) 2015	(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 2015 (line 8, column (f) divided by line 13, column (f)) .........

Public support percentage from 2014 Schedule A, Part III, line 15 ...............

Section D. Computation of Investment Income Percentage

Investment income percentage for 2015 (line 10c, column (f) divided by line 13, column (f)) ......

Investment income percentage from 2014 Schedule A, Part III, line 17 .............

19a

331/3% support tests—2015. 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—2014. 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) 2015

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 (i) its supported organizations, (ii) individuals that are part of the charitable class benefited by one or more of its supported organizations, or (iii) 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 section 4958(c)(3)(C)), a family member of a substantial contributor, or a 35% controlled entity with regard to a substantial contributor? If “Yes,” complete Part I of Schedule L (Form 990 or 990-EZ) .

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

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 9a) 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 9a) 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 section 4943 because of section 4943(f) (regarding certain Type II supporting organizations, and all Type III non-functionally integrated supporting organizations)? If “Yes,” answer line 10b 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

Schedule A (Form 990 or 990-EZ) 2015

Page 5

Part IV

Supporting Organizations (continued)

Yes

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

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, (i) a written notice describing the type and amount of support provided during the prior tax year, (ii) a copy of the Form 990 that was most recently filed as of the date of notification, and (iii) 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) 2015

Page 6

Part V

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

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

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) 2015

Page 7

Part V

Type III Non-Functionally Integrated 509(a)(3) Supporting Organizations (continued)

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 2015 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-2015	(iii) Distributable Amount for 2015
1 Distributable amount for 2015 from Section C, line 6
2 Underdistributions, if any, for years prior to 2015 (reasonable cause required--see instructions)
3 Excess distributions carryover, if any, to 2015:
a
b
c
d From 2013.......
e From 2014.......
fTotal of lines 3a through e
g Applied to underdistributions of prior years
h Applied to 2015 distributable amount
i Carryover from 2010 not applied (see instructions)
j Remainder. Subtract lines 3g, 3h, and 3i from 3f.
4Distributions for 2015 from Section D, line 7:
$
a Applied to underdistributions of prior years
b Applied to 2015 distributable amount
c Remainder. Subtract lines 4a and 4b from 4.
5 Remaining underdistributions for years prior to 2015, if any. Subtract lines 3g and 4a from line 2 (if amount greater than zero, see instructions)
6 Remaining underdistributions for 2015. Subtract lines 3h and 4b from line 1 (if amount greater than zero, see instructions)
7 Excess distributions carryover to 2016. Add lines 3j and 4c.
8 Breakdown of line 7:
a
b
c Excess from 2013.......
d From 2014.......
e From 2015.......

Schedule A (Form 990 or 990-EZ) (2015)

Schedule A (Form 990 or 990-EZ) 2015

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) 2015

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

2015

Name of the organization

Memorial Hermann Health System

Employer identification number

74-1152597

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 other 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) (2015)

Schedule B (Form 990, 990-EZ, or 990-PF) (2015) Page 2

Name of organization Memorial Hermann Health System

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) (2015)

Schedule B (Form 990, 990-EZ, or 990-PF) (2015)

Page 3

Name of organization Memorial Hermann Health System		Employer identification number 74-1152597

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) (2015)

Schedule B (Form 990, 990-EZ, or 990-PF) (2015)

Page 4


Name of organization Memorial Hermann Health System			Employer identification number 74-1152597
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.) $ 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) (2015)

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," on 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

2015

Open to Public Inspection

Name of the organization

Memorial Hermann Health System

Employer identification number

74-1152597

Part I

Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Complete if the organization answered "Yes" on 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" on 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, handling of violations, and enforcing conservation easements during the year
SchDMd Bullet

Amount of expenses incurred in monitoring, inspecting, handling of violations, 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" on 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 on 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 on 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) 2015

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" on 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


b	If "Yes," explain the arrangement in Part XIII and complete the following table:		Amount
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" on Form 990, Part IV, line 10.

		(a)Current year	(b)Prior year	(c)Two years back	(d)Three years back	(e)Four years back

1a	Beginning of year balance ....	4,304,237	4,188,028	4,104,595	3,948,600	3,806,585
b	Contributions ...
c	Net investment earnings, gains, and losses	143,216	128,001	145,235	231,546	219,373
d	Grants or scholarships ...
e	Other expenditures for facilities and programs ...			43,931	69,638	69,624
f	Administrative expenses ....	11,634	11,792	17,871	5,913	7,734
g	End of year balance ......	4,435,819	4,304,237	4,188,028	4,104,595	3,948,600

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

Board designated or quasi-endowment SchDMd Bullet

Permanent endowment SchDMd Bullet

Temporarily restricted endowment SchDMd Bullet

100.000 %

The percentages on 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" on 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' on Form 990, Part IV, line 11a. See Form 990, Part X, line 10.

Description of property		(a) Cost or other basis (investment)	(b)Cost or other basis (other)	(c) Accumulated depreciation	(d) Book value

1a	Land ...	138,917,942		138,917,942
b	Buildings	2,907,127,238	1,390,084,069	1,517,043,168
c	Leasehold improvements	417,858,457	203,838,850	214,019,607
d	Equipment ...	1,743,536,060	1,367,968,486	375,567,574
e	Other ...	451,517,613	27,514,200	424,003,413
Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10(c).)..				2,669,551,704

Schedule D (Form 990) 2015

Page 3

Part VII

InvestmentsOther Securities. Complete if the organization answered 'Yes' on 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
(3)Other (A) FIXED INCOME	387,743,000	F
(B) EQUITY SECURITIES	999,289,000	F
(C) ALTERNATIVE INVESTMENTS	549,095,000	F
(D) CASH & CASH EQUIVALENTS	31,162,000	F
(D)
(E)
(F)
(G)
(H)
Total. (Column (b) must equal Form 990, Part X, col. (B) line 12.)	1,967,289,000

Part VIII

InvestmentsProgram Related. Complete if the organization answered 'Yes' on 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

(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
Total. (Column (b) must equal Form 990, Part X, col.(B) line 13.)

Part IX

Other Assets. Complete if the organization answered 'Yes' on Form 990, Part IV, line 11d. See Form 990, Part X, line 15.

(a) Description				(b) Book value
(1) BOND TRUST FUNDS				288,819,892
(2) DUE FROM AFFILIATES, NET				499,269,101
(3) GOODWILL				40,439,578
(4) MISCELLANEOUS DEPOSITS				8,992,656
(5) JOINT VENTURES				49,837,574
(6) TECO STOCK				1,510,992
(7) UTHSC LAND LEASE				1,994,376
(8) DEFERRED PHYSICIAN RECRUITMENT				3,843,648
(9) OTHER ASSETS				2,988,076
Total. (Column (b) must equal Form 990, Part X, col.(B) line 15.)...........				897,695,893

Part X

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

1.(a) Description of liability	(b) Book value
(1) Federal income taxes	0
ACCRUED LIABILITIES TO 3RD PARTY	594,058,673
CAPITALIZED LEASES	739,898,799
(3)
(4)
(5)
(6)
(7)
(8)
(9)
Total. (Column (b) must equal Form 990, Part X, col.(B) line 25.)	1,333,957,472
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) 2015

Page 4

Part XI Reconciliation of Revenue per Audited Financial Statements With Revenue per Return Complete if the organization answered 'Yes' on 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' on 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

990 Sch D Part V Line 4

The endowment funds of Memorial Hermann Health System consist of permanent endowment funds obtained from donor initiatives for charitable contributions through last will and testament bequests. The permanent funds consist of donations and investment income for which the donor's stipulations restrict the Foundation to using only the income resulting from the investment of the donation on a total return basis. The assets of the permanent funds income may only be used to support the charitable exempt operations, programs and purposes of Memorial Hermann Health System through the purchase of supplies, equipment, and other expenditures necessary for the performance of those operations and programs.

990 Sch D Part X Line 2

Memorial Hermann Health System does not have an annual financial audit conducted. The financial accounts of the Health System are included in the consolidated financial statements of Memorial Hermann Health System entities and its related affiliates and are audited by an independent public accounting firm. The paragraph included in the last issued audited financial statements of the Health System was: The Health System and certain other affiliates are Texas not-for-profit corporations and have been recognized as tax-exempt pursuant to Section 501(c)(3) of the Internal Revenue Code. The Health System owns certain taxable subsidiaries and engages in certain activities that are unrelated to its exempt purpose and, therefore, subject to tax. Management annually reviews its tax positions and has determined that there are no material uncertain tax positions that require recognition in the accompanying consolidated balance sheets. The tax returns are subject to Internal Revenue Service (IRS) review for three years subsequent to the dates they are filed. The Health System has net operating losses (NOL) tax carryforwards that will expire between 2019 and 2036. Due to the age of these NOLs, and the fact that management is uncertain that the full amount of the NOLs will be realized in the future, no deferred tax asset has been recorded.

Schedule D (Form 990) 2015

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE F(Form 990)

Department of the Treasury
Internal Revenue Service

Statement of Activities Outside the United States

Complete if the organization answered "Yes" to Form 990,Part IV, line 14b, 15, or 16. Right pointing arrow large image

Attach to Form 990. Right pointing arrow large image

See separate instructions. Right pointing arrow large image

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

OMB No. 1545-0047

2015

Open to Public Inspection

Name of the organization
Memorial Hermann Health System

Employer identification number

74-1152597

Part I

General Information on Activities Outside the United States. Complete if the organization answered "Yes" to Form 990, Part IV, line 14b.

For grantmakers.Does the organization maintain records to substantiate the amount of its grants and

other assistance, the grantees’ eligibility for the grants or assistance, and the selection criteria used

to award the grants or assistance? . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

For grantmakers. Describe in Part V the organization’s procedures for monitoring the use of its grants and other assistance outside the United States.

Activites per Region. (The following Part I, line 3 table can be duplicated if additional space is needed.)

(a) Region		(b) Number of offices in the region	(c) Number of employees, agents, and independent contractors in region	(d) Activities conducted in region (by type) (e.g., fundraising, program services, investments, grants to recipients located in the region)	(e) If activity listed in (d) is a program service, describe specific type of service(s) in region	(f) Total expenditures for and investments in region
	Central America and the Caribbean	0	0	Investments	Cayman Captive	23,166,338
	Central America and the Caribbean	0	0	Investments		4,785,828
	North America	0	0	Investments		1,074,064














3a	Sub-total .....	0	0			29,026,230
b	Total from continuation sheets to Part I ...
c	Totals (add lines 3a and 3b)	0	0			29,026,230

For Paperwork Reduction Act Notice, see the Instructions for Form 990.Cat. No. 50082W Schedule F (Form 990) 2015

Schedule F (Form 990) 2015

Page 2

Part II

Grants and Other Assistance to Organizations or Entities Outside the United States. Complete if the organization answered "Yes" to Form 990, Part IV, line 15, for any recipient who received more than $5,000. Part II can be duplicated if additional space is needed.

1 (a) Name of organization		(b) IRS code section and EIN (if applicable)	(a)(c) Region	(b)(d) Purpose of grant	(e) Amount of cash grant	(f) Manner of cash disbursement	(g) Amount of non-cash assistance	(h) Description of non-cash assistance	(i) Method of valuation (book, FMV, appraisal, other)

2	Enter total number of recipient organizations listed above that are recognized as charities by the foreign country, recognized as tax-exempt by the IRS, or for which the grantee or counsel has provided a section 501(c)(3) equivalency letter .......
3	Enter total number of other organizations or entities .......................

Schedule F (Form 990) 2015

Schedule F (Form 990) 2015Page 3

Part III

Grants and Other Assistance to Individuals Outside the United States. Complete if the organization answered "Yes" to Form 990, Part IV, line 16.

Part III can be duplicated if additional space is needed.

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

Schedule F (Form 990) 2015

Page 4

Part IV

Foreign Forms

Schedule F (Form 990) 2015

Page 5

Part V

Supplemental Information
Provide the information required by Part I, line 2 (monitoring of funds); Part I, line 3, column (f) (accounting method; amounts of investments vs. expenditures per region); Part II, line 1 (accounting method); Part III (accounting method); and Part III, column (c) (estimated number of recipients), as applicable. Also complete this part to provide any additional information (see instructions).

ReturnReference	Explanation
990 Sch F Part I Line 3 Column (f)	Accounting method used is the accrual method.

Schedule F (Form 990) 2015

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE H
(Form 990)

Department of the Treasury
Internal Revenue Service

Hospitals

Complete if the organization answered "Yes" on 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

2015

Open to Public Inspection

Name of the organization

Memorial Hermann Health System

Employer identification number

74-1152597

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? . . . . . .

Yes

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

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

Yes

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

Yes

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

Financial Assistance and Certain Other Community Benefits at Cost

Financial Assistance and Means-Tested Government Programs		(c) Total community benefit expense	(d) Direct offsetting revenue	(e) Net community benefit expense	(f) Percent of total expense
a	Financial Assistance at cost (from Worksheet 1) . . .	218,415,775		218,415,775	5.340 %
b	Medicaid (from Worksheet 3, column a) . . . . .	634,295,378	682,743,800
c	Costs of other means-tested government programs (from Worksheet 3, column b) . .	24,208,868	22,401,225	1,807,643	0.040 %
d	Total Financial Assistance and Means-Tested Government Programs . . . . .	876,920,021	705,145,025	220,223,418	5.380 %
Other Benefits
e	Community health improvement services and community benefit operations (from Worksheet 4).	154,993,405		154,993,405	3.790 %
f	Health professions education (from Worksheet 5) . . .	69,571,581	19,748,131	49,823,450	1.220 %
g	Subsidized health services (from Worksheet 6) . . . .	362,428,395	313,448,991	48,979,404	1.200 %
h	Research (from Worksheet 7) .	11,655,800	5,322,782	6,333,018	0.150 %
i	Cash and in-kind contributions for community benefit (from Worksheet 8) . . . .	2,059,579		2,059,579	0.050 %
j	Total. Other Benefits . .	600,708,760	338,519,904	262,188,856	6.410 %
k	Total. Add lines 7d and 7j .	1,477,628,781	1,043,664,929	482,412,274	11.790 %

For Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat. No. 50192T Schedule H (Form 990) 2015

Schedule H (Form 990) 2015

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
4	Environmental improvements
5	Leadership development and training for community members
6	Coalition building
7	Community health improvement advocacy	677,077	677,077	0.020 %
8	Workforce development
9	Other
10	Total	677,077	677,077	0.020 %

Part III

Bad Debt, Medicare, & Collection Practices

Section A. Bad Debt Expense

Yes

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

Yes

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

690,124,753

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. ......

55,209,980

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).....

1,013,892,484

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

1,656,062,921

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

-642,170,437

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) 2015

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?11 Name, address, primary website address, and state license number (and if a group return, the name and EIN of the subordinate hospital organization that operates the hospital facility)							Facility reporting group
1	Memorial Hermann Texas Medical Center 6411 fannin houston,TX77030 www.memorialhermann.org 347	X	X	X		X	A
2	Memorial Hermann Memorial City Hosp 921 gessner houston,TX77024 www.memorialhermann.org 302	X	X			X	A
3	Memorial Hermann Southwest Hospital 7600 beechnut houston,TX77074 www.memorialhermann.org 407	X	X	X		X	A
4	Memorial Hermann Southeast Hospital 11800 astoria blvd houston,TX77089 www.memorialhermann.org 119	X	X			X	A
5	Memorial Hermann Northeast Hospital 18951 Memorial North Humble,TX77338 www.memorialhermann.org 8471	X	X			X	A
6	Memorial Hermann Katy Hospital 23900 katy freeway katy,TX77494 www.memorialhermann.org 534	X	X			X	A
7	Memorial Hermann Greater Heights Hosp 1635 North Loop West Houston,TX77008 www.memorialhermann.org 172	X	X			X	A
8	Memorial Hermann Sugar Land Hospital 17500 west grand parkway south sugar land,TX77479 www.memorialhermann.org 609	X	X			X	A
9	The Institute for Rehabilitation TIRR 1333 moursund street houston,TX77030 www.memorialhermann.org 100189	X			X		A
10	Memorial Hermann Rehab Hospital Katy 909 Frostwood Suite 2100 houston,TX77024 www.memorialhermann.org 100009	X					A

Schedule H (Form 990) 2015

Page 4

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 15

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

6 a

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

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

Yes

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

Hospital facility’s website (list url): WWW.memorialhermann.org

Other website (list url):

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 12

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

Yes

If "Yes" (list url): WWW.memorialhermann.org

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

12b

If "Yes" on 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) 2015

Page 5

Part VFacility Information (continued)

Financial Assistance Policy (FAP)

	A
Name of hospital facility or letter of facility reporting group

Yes

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.% and FPG family income limit for eligibility for discounted care of 400.%

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):

www.memorialhermann.org/financial

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

www.memorialhermann.org/financial

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

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) 2015

Page 6

Part VFacility Information (continued)

	A
Name of hospital facility or letter of facility reporting group

Yes

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

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

Reporting to credit agency(ies)

Selling an individual’s debt to another party

Actions that require a legal or judicial process

Other similar actions (describe in Section C)

Indicate which efforts the hospital facility or other authorized party made before initiating any of the actions listed (whether or not checked) in line 19. (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) 2015

Page 7

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
990 Sch H Part V Sec B Line 5	While social and epidemiological data can provide a helpful portrait of a community, it does not tell the whole story. It is critical to understand peoples health issues of concern, their perceptions of the health of their community, the perceived strengths and assets of the community, and the vision that residents have for the future of their community. Secondary data were supplemented by focus groups and interviews. Focus group and interview discussions explored participants perceptions of their communities, priority health concerns, perceptions of public health, prevention, and health care services, and suggestions for future programming and services to address these issues. Focus Groups Adolescents (15-18 years old) Parents of preschool children (0-5 years old) Seniors (65+ years old) (two groups) Spanish-speaking Hispanic community members (conducted in Spanish) English-speaking Hispanic community members Asian-American community members Low-income community members from urban area Low-income community members from suburban area Low-income community members from rural area Community members of moderate to high socioeconomic status Key informant discussions were conducted with individuals representing the community. Key informants represented a number of sectors including non-profit/community service, city government, hospital or health care, business, education, housing, transportation, emergency preparedness, faith community, and priority populations (e.g., low-income urban residents representing the community). Organizations Contributing Key Informant Interviews ACCESS Health (FQHC)-Carol Edwards Asian American Health Coalition-- Tito Refi Association for the Advancement of Mexican Americans- Beatrice Garza Blue Cross Blue Shield- Robert Morrow Children at Risk- Mandi Kimball Childrens Defense Fund- Anat Kelman,Wykisha McKinney, Patrick Bresette Christ Clinic- Kara Hill City of Houston,Department of Neighborhoods-Angel Pounce, Kathy Barton City of Houston, Department of Parks and Recreation- Joe Turner Community Health Choice- Ken Janda Fort Bend Health and Human Services- Kaye Reynolds Harris County Public Health and Environmental Services- Umair A. Shah Harris Health- Jennifer Small Houston Independent School Disctrict- Gwendolyn Johnson Institute for Spirituality and Health- Stuart Nelson Interfaith Commnunity Clinic- Anne Snyder Interfaith Ministries of Greater Houston- Martin Cominsky Lonestar Family Helath Center- Steve Mckernan Mayors Office for People with Disabilities-- Jay Stiteley Memorial Hermann Health System- Theresa Fawvor, Michael Wollner, MD Memorial Hermann Texas Medical Center James McCarthy, MD Office of Harris County Judge Ed Emmett- Peggy Boice One Voice Texas- Katherine Barillas Pasadena Independent School District- Darla Massey-Jones SETRAC (Southeast Texas Regional Advisory Council)- Darrel Pile Sheltering Arms Senior Services, Neighborhood Centers Inc. Terrence Adams Southwest Management District- Allice Lee Texas Legislature- John Zerwas The Harric Center for Mental Health and IDD (MHMRA)- Steve Shenee Tri County Service- Evan Robinson United Way of Montgomery County- Julie Martineau University of Texas School of Public Health- Charles Begley
990 Sch H Part V Sec B Line 11	Addressing Needs Memorial Hermann Health System conducted a CHNA for each of its 11 hospitals in 2013 to prioritize health issues, to provide a foundation for the development of a community health improvement plan, and to inform each hospital's program planning. The significant needs identified in Memorial Hermann Health System's 2013 CHNA were as follows: Education and Prevention, Service Integration/Fragmented Care, Barriers to Care, Address Unhealthy Lifestyles and Behaviors, Barriers to Mental Healthcare, and Health Disparities in Specific Populations. Leadership teams associated with each of the 11 Memorial Hermann Hospitals developed an Implementation Strategy to address each priority for their community. Each hospital utilized the plan as a guide to improve the health of their community and to advance the service mission of the Memorial Hermann Health System. Priorities that were identified, and were not addressed include transportation and dental care. Both are issues in which Memorial Hermann Health System is not equipped to address on a large scale. Routinely, patients are provided with transportation vouchers and at-risk children are able to access one of three mobile dental vans which serve students at 70 schools across five school districts through Memorial Hermann's Health Centers for Schools program. Each of the 11 Memorial Hermann hospital's strategy for addressing Priority # 1: Education and Prevention included activities that would impact the interrelated chronic conditions of heart disease, cancer, diabetes and Alzheimer's through the existing infrastructure as well as exploring new programming as appropriate. In general, hospital implementation activities included : 1.) providing the community it serves with community health education through newsletters, screenings, support groups addressing cancer, heart disease and diabetes, and health fairs; 2.) implementing regular, ongoing community education courses on heart disease; 3.) developing education and coping skills programming to address Alzheimer's and Dementia patients; 4.) exploring linking community education programming with the Diabetes Self-Management Education Program designed to help people gain self-confidence in their ability to control their symptoms and improve their lives. Programs supporting Priority #1 Prevention and Education include: Support Groups (Bariatrics, Cancer, Cancer Nutrition Therapy, Cancer Prehabilitation & Wellness, Cancer Techniques for Stress Relief & Yoga, Cardiac, Diabetes, Grief, Stroke, Substance Abuse, Tobacco Cessation); Southwest ADA Awareness and Trainings; Mental Health - Grief Support; Nutrition Weight Management; Cancer Education; Cancer Nutrition Support Group; Look Good, Feel Better; Cardiac Health Education; Children's Festival; Diabetes Education; Economic Development/Council Participation or Chamber of Commerce; Education for Nurses, Nursing Students and Health Professions; Education/Outreach for Senior Citizens; Health Fairs; Heart Disease Education; Breast Cancer Education; Texana Autism Conference; Care 2 Chat; Del Webb; Women's Services; Community Health Education; Mental Health Education; Heart Disease Edcuation; Screenings (Blood Pressure, Heart, Stroke, Obesity, Skin cancer, All Other Cancers, Youth Heart Screening); Trauma Prevention: Child Passenger Safety; Safety Merit Badge Boy Scouts; AARP Driver Safety Program; Baby Fair for Expectant Parents; Blood Drive; and Meals on Wheels. In response to Priority #2 Service Integration and Fragmented Care, Memorial Hermann is currently addressing information sharing, patients' needs for medical homes, and inappropriate emergency department use through several significant programs. All 11 participating hospitals are responding to the community's concern about the lack of record sharing among providers through the Memorial Hermann Information Exchange (MHiE) which uses a secure, encrypted electronic network to integrate and house patients' digital medical records so they are easily accessible to authorized MHiE caregivers. The service is free to patients and only requires their consent. To date, 50.6% or 4,117,874 of Memorial Hermann patients have registered to participate. Another initiative is for all inpatient, outpatient, and emergency room progress notes to be electronic providing for up-to-date provider access anytime, anywhere. Research shows that cancer patients who receive help navigating the medical system have better outcomes. A nurse navigator specializing in oncology acts as a patient client advocate and "go-to" person when questions arise or help is needed when navigating the medical system. The nurse navigator works within the multidisciplinary cancer care team across the continuum of care, providing information and support to patients and caregivers, as well as other health care professionals. Nurse navigators also serve as moderators for the physicians who collaborate on improved care through the Tumor Board. Houston's increasing elderly population drove the need for the addition of a Palliative Care Team to provide patients with the ability to prepare for their end of life care. Palliative Care is a medical specialty designed to assist patients and families with symptom management, emotional and spiritual support, and advanced care planning. During FY2016, 4,569 patients received palliative care at seven hospitals. Patients without resources have access to post-acute care through the Transitional Care Unit for the Memorial Hermann Health System, receiving referrals from other hospitals to provide patients with the appropriate continuum of care. Memorial Hermann operates busy emergency rooms, many of whom are unfunded patients. A Primary Care Provider (PCP) Coordinator, an ER community health worker, and a low cost clinic are initiatives intended to respond to the community's inappropriate use of the emergency room for primary medical care and need for medical homes. A Primary Care Provider (PCP) Coordinator visits with all unassigned managed care patients in the ER and the hospital and helps them decide on a new medical home physician or clinic. The intent of this program is designation of a medical home, reduced readmissions and reduced emergency room visits for primary care. At nine ERs, a certified community health worker, or navigator, works with uninsured and underinsured emergency patients who access the emergency room for primary care purposes to connect them with "the right care, in the right place, at the right cost". The navigator works with 8-12 patients per shift and continues to follow-up with them by phone to determine if the referrals provided were effective, or if different referrals or support is necessary. Each year, more than 16,000 patients are navigated with more than 30,000 encounters incurred. Two Memorial Hermann Neighborhood Health Centers are located adjacent to two of Memorial Hermann's busiest ERS to serve as a medical home to patients without insurance, but capable of paying for medical care at cost. These clinics provide 1,000+ patient visits per month. Ten Health Centers for Schools' school-based clinics serve as the medical home for uninsured children at 70 Houston area schools, pre-kindergarten through twelfth grade, in five Houston Independent School District feeder patterns. In FY2016, 14,252 students were served through 35,298 visits. Priority #3 Barriers to Care addresses: lack of coverage/financial hardship, lack of availability of primary care services, difficulty accessing primary care and preventive care for low-income residents in the community, and lack of capacity (e.g. insufficient providers/extended wait times). Each of Memorial Hermann's 11 hospitals plays a significant role in Memorial Hermann's annual more than $451 million dollar contribution to the community. This represents financial assistance and means-tested government programs, community health improvement services and community benefit operations, health professions education, subsidized health services, research, and cash and in-kind contributions for community health. To secure a payment source for uninsured and underinsured patients, each of the 11 hospitals has a financial counseling program. Counselors help patients enroll in government programs or find other sources of coverage. Specifically, the counselors assist patients with financial assistance applications, setting up payment plans or applying for charity care. The program covers both inpatients and emergency room patients, 24/7. Counselors work with eight to ten patients per day. In order to ensure specialty coverage for uninsured and underinsured populations, Memorial Hermann contracts with physicians covering a variety of specialties to provide On-Call ER Coverage 24 hours a day, seven days a week. One of the most significant on-call coverage specialties provided is that of the OB ER call group. In-house physician coverage (including evaluation and treatment, admission and o
990 Sch H Part V Sec B Line 22d	HOW THE HOSPITAL CALCULATES AMOUNTS CHARGED TO PATIENTS: 1. If an uninsured patient's Annual Gross Family Income is equal to or less than two hundred percent (200%) of the current Federal Poverty Guidelines, as set forth on the Hospital's Income Eligibility Table, the patient (or other responsible party) will not owe any portion of the account balance. 2. If an uninsured patient's Annual Gross Family Income exceeds two hundred percent (200%) of the current Federal Poverty Guidelines but does not exceed four hundred percent (400%) of the current Federal Poverty Guidelines, the patient (or other responsible party) will be responsible for paying a percentage no more than the facilities current AGB of the remaining outstanding account balances owed on their hospital bills. The percentage referenced above will be less than the Amount Generally Billed by Memorial Hermann and/or Hospital. The AGB is determined by taking claims allowed by Medicare and all private health insurers that pay claims to the hospital for the past year and calculating the average reimbursement as a percentage of total charges. 3. Medically Indigent individuals that are eligible for Financial Assistance and have outstanding account balances owed on their hospital bills (i.e., after crediting all health insurance payments, if any) which exceed twenty percent (20%) of their Annual Gross Family Income and who are unable to pay all or a portion of that remaining bill balance, and the balance is at least $5,000, will be responsible for paying no more than twenty percent (20%) of their gross family income towards the remaining outstanding account balances. 4. FAP eligible individuals will not be expected to be charged gross charges for any care that is covered by this policy. However: (i) This Hospital is not prohibited from including the amount of gross charges on a hospital bill to those who are eligible for Financial Assistance under this FAP as an explanatory item or a starting point to which various contractual allowances, discounts, or deductions may be applied, because the gross charges are not the actual amount a FAP-eligible individual is charged for any medical care covered by this policy and provided to that FAP-eligible individual; and (ii) This Hospital may charge a FAP eligible individual more for emergency or other medically necessary care than the Amounts Generally Billed to individuals who have insurance covering such care (i.e., "AGB") or gross charges for any care provided: a) At a time when the FAP-eligible individual has not submitted a complete FAP application and required documentation to the Hospital facility as of the time of the charge; and b) This Hospital has made, and continues to make, reasonable efforts to determine whether the individual is FAP-eligible, during the applicable time periods described in IRC 1.501(r)-6(c) including by correcting the amount charged if the individual is subsequently found to be FAP-eligible.

Schedule H (Form 990) 2015

Page 8

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?28
Name and address		Type of Facility (describe)
1	MH 24-Hour Freestanding ER 9950 Woodlands Parkay Spring,TX77382	Freestanding ER
2	MH Surgical Hospital Sugar Land 16906 Southwest Freeway Sugar Land,TX77479	Ambulatory Surgical Center
3	MH Surgical Hospital Kingwood 300 Kingwood Medical Drive Kingwood,TX77339	Ambulatory Surgical Center
4	Memorial Hermann Prevention & Recovery 3043 Gessner Houston,TX77080	Drug & Alcohol Rehab
5	MH Surgery Center Texas Medical Center 6400 Fannin Street 1500 Houston,TX77030	Ambulatory Surgical Center
6	MH Surgery Center The Woodlands 9200 Pinecroft Drive 200 The Woodlands,TX77380	Ambulatory Surgical Center
7	MH Surgery Center Woodlands Parkway 1441 Woodstead Court 100 The Woodlands,TX77380	Ambulatory Surgical Center
8	MH Surgery Center Memorial Village 1120 Business Center Dr 110 Houston,TX77043	Ambulatory Surgical Center
9	MH Surgery Center Kingsland 21720 Kingsland Blvd 101 Katy,TX77450	Ambulatory Surgical Center
10	MH Surgery Center Bay Area Endoscopy Cen 444 FM 1959 Ste B Houston,TX77034	Ambulatory Surgical Center
11	MH Surgery Center Sugar Land 17510 W Grand Parkway 200 Sugar Land,TX77479	Ambulatory Surgical Center
12	MH Convenient Care Center in Summer Cree 14201 East Sam Houston Parkway N Houston,TX77044	Convenient Care center
13	MH Surgery Center Katy 23920 Katy Freeway 200 Katy,TX77494	Ambulatory Surgical Center
14	MH Surgery Center Northwest 1631 North Loop West 300 Houston,TX77008	Ambulatory Surgical Center
15	MH Surgery Center Southwest 7789 SW Freeway 200 Houston,TX77074	Ambulatory Surgical Center
16	MH Convenient Care Center in Katy 22430 Grand Corner Drive Katy,TX77494	Convenient Care center
17	MH Surgery Center Richmond 1517 Thompson Road 100 Richmond,TX77469	Ambulatory Surgical Center
18	MH Surgery Center Texas International En 6620 Main St 1500 Houston,TX77030	Ambulatory Surgical Center
19	Pasadena - Doctors Outpatient Surgicente 3534 Vista Blvd Pasadena,TX77504	Ambulatory Surgical Center
20	Univerity Place 7480 Beechnut Houston,TX77074	Senior Living
21	West Houston Ambulatory Surgical Associa 970 Campbell Road Houston,TX77024	Ambulatory Surgical Center
22	United Surgery Center Southeast 12700 N Featherwood 100 Houston,TX77034	Ambulatory Surgical Center
23	MH Endoscopy & Surgery Center North Hous 275 Lantern Bend 400 Houston,TX77090	Ambulatory Surgical Center
24	MH Endoscopy Center North Freeway 7333 N Freeway 400 Houston,TX77076	Ambulatory Surgical Center
25	MH Surgery Center Kirby Glen 2457 S Braeswood Blvd Houston,TX77030	Ambulatory Surgical Center
26	MH Convenient Care Center at Sienna Plan 8780 Highway 6 Suite B Missouri City,TX77459	Convenient Care center
27	MH Convenient Care Center at Spring 7474 N Grand Parkway W Spring,TX77379	Convenient Care center
28	MH Surgery Center Conroe 1501 River Pointe Dr 200 Conroe,TX77304	Ambulatory Surgical Center

Schedule H (Form 990) 2015

Page 9

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
990 Sch H Part I line 6a	Community Benefit Report MEMORIAL HERMANN HEALTH SYSTEM HAS PRODUCED A COMMUNITY BENEFIT REPORT THAT HIGHLIGHTS ALL SIGNIFICANT COMMUNITY HEALTH IMPROVEMENT EFFORTS. AS A HOSPITAL SYSTEM WITH MULTIPLE FACILITIES IN A MAJOR METROPOLITAN AREA, OUR EFFORTS ARE FOCUSED ON MEETING THE NEEDS OF THE GREATER COMMUNITY VERSUS INDIVIDUAL EFFORTS ASSOCIATED WITH INDIVIDUAL FACILITIES. BY FOCUSING ON FEWER, LARGER ENDEAVORS, THE LONG TERM IMPACT ON THE HOUSTON COMMUNITY'S HEALTH STATUS IS GREATER THAN WOULD BE ON AN INDIVIDUAL BASIS. IN ACCORDANCE WITH TEXAS ADMINISTRATIVE CODE TITLE 25, PART 1, CHAPTER 13, SUBCHAPTER B, RULE 13.17, MEMORIAL HERMANN SUBMITS AN ANNUAL REPORT OF COMMUNITY BENEFITS PLAN TO THE TEXAS DEPARTMENT OF STATE HEALTH SERVICES (TDSHS) ANNUALLY. BOTH THE MEMORIAL HERMANN COMMUNTIY BENEFIT CORPORATION ANNUAL REPORT AND THE TDSHS REPORT RESIDE ON THE MEMORIAL HERMANN COMMUNITY BENEFITS WEBSITE.
990 Sch H Part I Line 7	Financial Assistance and certain other Community Benefits at Cost Line 7a - Financial Assistance at cost is calculated as charity charges times CCR per worksheet 2. Line 7b - Medicaid is calculated as Medicaid charges times CCR per worksheet 2. Line 7c- Costs of other means-tested government programs is calculated as low income government charges times CCR per worksheet 2. Line 7e - Community health improvement services and community benefit operations is dollars spent with other community providers to improve the health of the community. Line 7f- Health professions education is out patient physician/paramedical teaching expenses and revenues as reported per the Medicare Cost Report. Line 7g- Subsidized health services includes the Air Ambulance Program, End Stage Renal Disease Program, and the Obstetrics and Delivery Program. The losses calculated are from the Cost Accounting System. These losses exclude Medicaid and Other indigent Programs but includes, all other services: IP, OP, ER, Private Insurance, Medicare, the Uninsured, etc. Line 7h- Research is research dollars serving the community. The amount comes directly from the Medicare Cost Report. Line 7i - Cash and in-kind contributions for community benefit is community programs not reported elsewhere, along with sponsorships of other organizations.
990 Sch H Part II Line 7	Community Building Activities MEMORIAL HERMANN PROVIDED $677,077 IN PROGRAMS TO THE COMMUNITY FOR HEALTH EDUCATION AND PREVENTION FOR DISEASES AND CHRONIC CONDITIONS, SUPPORT GROUPS, NUTRITION AND FITNESS CLASSES, SCREENINGS FOR DISEASE, EDUCATION FOR CURRENT AND FUTURE HEALTH PROFESSIONALS, AND COMMUNITY EVENTS THAT PROMOTE AWARENESS OF HEALTH ISSUES TO THE PUBLIC.
990 Sch H Part III, Sec A, Line 2	Bad Debt Methodology: Unpaid accounts are written off as bad debts upon reaching delinquent status. Charity care accounts are written off as identified or qualified under the System's charity care policy. Bad Debt Cost Reported on Line 2, is based on Bad Debt Charges written off during the reporting period, less any Bad Debt recoveries in the period. Net amount was extended by RCC. (From Wks 2- Line 11 to impute cost.)
990 Sch H Part III, Sec A, Line 3	The Hospital Facility reviews records from prior years accounts receivable balances to determine which accounts written off as bad debt are ultimately determined to be charity care. A two year look back blended average is thus calculated and then applied to the current periods account balance to estimate the current period bad debt attributable to patients eligible under the organizations financial assistance program.
990 Sch H Part III, Sec A, Line 4	Bad Debt footnote Patient accounts receivable are reported net of estimated allowances for contractual allowances, bad debt, and other discounts. The Health System's recorded allowances for bad debt are based on expected net collections, after contractual adjustments, primarily from patients. Management routinely assesses these recorded allowances relative to changes in payor mix, cash collections, write-offs, recoveries, and market conditions. Unpaid accounts are written off as bad debts upon reaching delinquent status. Charity care accounts are written off as identified or qualified under the Health System's charity care policy. The Health System's concentration of credit risk with respect to patient accounts receivable is limited due to the variety of customers and payors. At June 30, 2016 and 2015, the allowance for bad debt was $735,260,000 and $680,776,000 respectively. Pages 9-10 in Audited Financials
990 Sch H Part III, Sec B, Line 8	Section B shortfall treated as community benefit While Memorial Hermann is not a proponent of capturing Medicare Shortfall as a community benefit, MHHS does serve the senior population as a part of their mission to improve the health of the greater Houston area. 12% of MHHS inpatient Medicare Days are from SSI individuals. Because SSI represents the low income seniors, 12% of this number could reasonably be considered the portion of low income seniors MHHS is serving.
990 Sch H Part III, Sec C, Line 9b	Collection Policy If there is no coverage by a third party and the responsible party cannot pay any or part of the balance due or make acceptable financial arrangements, assistance is provided to the responsible party to complete financial assistance application forms, including application for Medicaid, Crime Victims Compensation, Harris County Hospital District or County Indigent Programs where appropriate. If the patient meets predetermined financial criteria, assistance is provided to the responsible party to complete the charity application for a full or partial charity care write-off.
990 Sch H Part VI, Line 2	Needs assessment EACH DECISION MADE BY MEMORIAL HERMANN TO INVEST ITS PEOPLE, RESOURCES, AND TALENTS IN COMMUNITY BENEFIT EFFORTS IS DATA DRIVEN. GIVEN THAT ROUGHLY ONE IN FOUR RESIDENTS OF THE HOUSTON AREA ARE UNINSURED, NUMEROUS COMMUNITY NEEDS ANALYSES CENTER AROUND THE UNIVERSITY OF TEXAS SCHOOL OF PUBLIC HEALTH'S HOUSTON AREA HOSPITAL'S EMERGENCY DEPARTMENT USE STUDY, WHICH MEMORIAL HERMANN HAS PARTICIPATED IN SINCE 2003. THE STUDY MONITORS HOSPITAL EMERGENCY DEPARTMENT USE IN HOUSTON HOSPITALS AND IS A DATA SOURCE TO UNDERSTAND PRIMARY CARE-RELATED ER USE INCLUDING THE CHARACTERISTICS OF THESE PATIENTS. THE STATE OF HEALTH OF HOUSTON/HARRIS COUNTY SPONSORED BY THE HARRIS COUNTY HEALTHCARE ALLIANCE, EPISCOPAL HEALTH FOUNDATION AND OTHER PUBLIC HEALTH AGENCIES IS ANOTHER SOURCE PROVIDING AN ASSESSMENT OF THE HEALTH OF THE COMMUNITY. IN ADDITION TO THE STUDIES GENERATED ON A COMMUNITY LEVEL, AS REQUIRED BY THE COMMUNITY HEALTH NEEDS ASSESSMENT-SECTION 501(r)-REQUIREMENT OF THE ACA, EVERY THREE YEARS, MEMORIAL HERMANN CONDUCTS COMMUNITY NEEDS ASSESSMENTS FOR EACH OF ITS LICENSED HOSPITALS. THE STUDIES INCLUDE DEMOGRAPHIC DATA OF HARRIS, FORT BEND, MONTGOMERY, AND BRAZORIA COUNTIES (COUNTIES THAT COMPOSE 89% OF MEMORIAL HERMANN DISCHARGES; A DESCRIPTION OF THE PROCESSES AND METHODLOLOGIES, SURVEYS AND INTERVIEWS WITH PUBLIC HEALTH OFFICIALS WHERE PARTICIPANTS WERE GIVEN THE OPPORTUNITY TO PRIORITIZE COMMUNITY HEALTH NEEDS AND RATE THE IMPORTANCE OF HEALTH CARE INITIATIVES; AND, IDENTIFY ALL COLLABORATING ORGANIZATIONS AND EXISTING HEALTH CARE FACILITIES AND OTHER RESOURCES WITHIN THE COMMUNITY AVAILABLE TO MEET THE NEEDS IDENTIFIED IN EACH OF THE COMMUNITY NEEDS ASSESSMENTS. THE ANALYSIS INCLUDED A CAREFUL REVIEW OF THE MOST CURRENT HEALTH DATA AVAILABLE AND INPUT FROM NUMEROUS COMMUNITY REPRESENTATIVES WITH SPECIAL KNOWLEDGE OF PUBLIC HEALTH. FINDINGS INDICATED THAT THERE WERE EIGHT MAIN NEEDS IN THE COMMUNITIES SERVED BY MEMORIAL HERMANN. THE COMMUNITY HEALTH NEEDS ASSESSMENT TEAM, CONSISTING OF LEADERSHIP FROM MEMORIAL HERMANN HEALTH SYSTEM (MEMORIAL HERMANN), PRIORITIZED THOSE EIGHT NEEDS BY STUDYING THEM WITHIN THE CONTEXT OF THE HOSPITAL'S OVERALL STRATEGIC PLAN AND THE AVAILABILITY OF FINITE RESOURCES, WITH THE FOLLOWING PRIORITIZATION, IN DESCENDING ORDER, RESULTING: 1.) EDUCATION AND PREVENTION FOR DISEASES AND CHRONIC CONDITIONS; 2.) ADDRESS ISSUES WITH SERVICE INTEGRATION, SUCH AS COORDINATION AMONG PROVIDERS AND THE FRAGMENTED CONTINUUM OF CARE; 3.) ADDRESS BARRIERS TO PRIMARY CARE, SUCH AS AFFORDABILITY AND SHORTAGE OF PROVIDERS; 4.) ADDRESS UNHEALTHY LIFESTYLES AND BEHAVIORS; 5.) ADDRESS BARRIERS TO MENTAL HEALTHCARE, SUCH AS ACCESS TO SERVICES AND SHORTAGE OF PROVIDERS; 6.) DECREASE HEALTH DISPARITIES BY TARGETING SPECIFIC POPULATIONS; 7.) INCREASE ACCESS TO AFFORDABLE DENTAL CARE; 8.) INCREASE ACCESS TO TRANSPORTATION. FOLLOWING THE COMMUNITY NEEDS ASSESSMENT, EACH MEMORIAL HERMANN HOSPITAL, ALONG WITH THE SUPPORT OF MEMORIAL HERMANN COMMUNITY BENEFIT DEPARTMENT, DEVELOPED AN IMPLEMENTATION PLAN WITH SUPPORTING OBJECTIVES, AND IMPLEMENTATION ACTIVITIES AND METRICS. THE PROCESS WAS REPORTED TO THE BOARD IN MARCH 2014 AND RESIDES ON EACH HOSPITAL'S WEBSITE. IMPLEMENTATION PLANs ARE UPDATED ON A QUARTERLY BASIS. Memorial Hermann's CHNA and community benefit implementation plan were reviewed and approved by the Community Relations Committee of the Health System board in June 2016 and September 2016 respectively.
990 Sch H Part VI, Line 3	Patient Education All Memorial Hermann Acute Care facilities and Rehab facilities have Third Party Qualification vendors on-site or trained financial counselors. Once someone requests or a financial counselor has determined through interaction with the patient and/or guarantor that the patient cannot pay for services, the financial counselors will either screen themselves or the patient/guarantor is referred to the Eligibility vendor on-site to screen for any Federal/State/Local Government program which may cover their services. These vendors act as agents for the patient/guarantor and may at times go to hearings for Medicaid or Disability as a legal representative of the patient. Also, all our entities, including service lines, have posted notices of a patient's right to request charity. Our statements that are sent to patients have documentation on the back informing the patient of Memorial Hermann's Charity policy and their right to request such, (in English and Spanish). Accounts are referred to be processed either on a real time basis by the hospital staff while the patient is still in the hospital or by electronic referral via data download which occur weekly and after the patient has been discharged. The goal is to make contact with the patient for financial screening to determine eligibility for governmental assistance as soon as possible. TIRR Memorial Hermann has embedded case managers and social workers in the hospital-based physician clinic to help patients with their doctors and needs. TIRR Memorial Hermann inpatients and outpatients require a great deal of assistance with a wide range of resources, and case management plays a significant role in providing supportive services to each patient. Social workers provide not only case management, but behavioral counseling as well. If needed, social workers can refer patients to TIRR Memorial Hermann's psychiatrist. Counseling services are available to families as well as to patients. Assistance for Memorial Hermann ER patients to take advantage of Community resources for primary care outside the emergency rooms are through Memorial Hermann's navigation services. In 2008, Memorial Hermann launched the ER Navigation program and Today, the ER Navigation program places Community Health Workers (CHWs) or "navigators" on-site in seven Memorial Hermann's emergency rooms to educate patients on the importance of identifying and using a consistent health home rather than relying on emergency rooms for their primary care. Patients eligible for the program are 18 months to age 65 who have accessed the ER for primary care related conditions and are uninsured or on Medicaid. They provide patients with clinic referrals, make appointments, arrange transportation, share information and referrals to community and safety net programs, educate about qualifying for and using public benefits and other payment resources, serve as a liaison between the patient and providers and tackle other challenges to appropriate care. CHWs stress the importance of having a health home and provide support and guidance in making and keeping future health appointments. While navigators initially meet with patients during the ER visit, much of their work is done in follow-up, ensuring that a clinic appointment was made, was successful and assisting with the paperwork required for qualification for Medicaid, CHIP or county indigent programs. Similar support is through the COPE (Community Outreach for Personal Empowerment) Program which provides empowering services for uninsured patients to improve their health and well being through education about and coordination with community health services. COPE targets patients who are at the highest rate of declining health and recidivism. Enrolling these populations into public benefits through all of these venues automatically increases their likelihood of obtaining regular primary and preventative care; the kind of care that ensures health and the potential for a prosperous future while concurrently eliminating the cost burden presently experienced by safety-net providers.
990 Sch H Part VI, Line 4	Community Information MEMORIAL HERMANN SERVES "GREATER HOUSTON," A MULTI-COUNTY AREA ALONG THE GULF COAST IN SOUTHEAST TEXAS-WHERE SEVERAL COUNTIES ARE WITHOUT HOSPITAL DISTRICT SERVICES. THE 5TH LARGEST METROPOLITAN AREA IN THE UNITED STATES, GREATER HOUSTON IS ONE OF THE FASTEST GROWING WITH A POPULATION OF 6.6 MILLION. THE INCREASE IN POPULATION OVER THE PAST FIVE YEARS HAS PLACED A TREMENDOUS BURDEN ON EXISTING PUBLIC HEALTH, SOCIAL, AND HEALTH CARE INFRASTRUFCTURE. A SOURCE OF STRENGTH IN A GLOBAL ECONOMY, HOUSTON PRIZES ITS RACIAL AND ETHNIC DIVERSITY. ACCORDING TO U.S. CENSUS, ACT FIVE YEAR ESTIMATES, HOUSTONS HARRIS COUNTY, THE METROPOLITAN AREAS DOMINANT COUNTY, IS 32.6% WHITE, 41.1% HISPANIC, 18.5% BLACK OR AFRICAN AMERICAN, 6.3% ASIAN/PACIFIC ISLANDER AND 1.6% OTHER. MORE THAN A THIRD OF HOUSTON RESIDENTS SPEAK LANGUAGES OTHER THAN ENGLISH AT HOME. IMMIGRATION IS A MAJOR PART OF THE IDENTITY OF THE CITY OF HOUSTON AND THE GREATER HOUSTON METROPOLITAN AREA. BETWEEN 2000 AND 2013 HOUSTONS IMMIGRANT POPULATION GREW NEARLY TWICE THE NATIONAL RATE: 59% VERSUS 33%. ADDITIONALLY, HARRIS COUNTY HAS ONE OF THE LARGEST REFUGEE POPULATIONS IN THE U.S. ALTHOUGH THERE IS ECONOMIC OPPORTUNITY FOR MANY RESIDENTS, THERE ARE POCKETS OF POVERTY. MEDIAN HOUSEHOLD INCOME IS $53,113. 15.1% OF HARRIS COUNTY RESIDENTS ARE LIVING BELOW THE POVERTY LINE. 18% OF CHIILDREN AND 26.3% OF THE TOTAL HARRIS COUNTY POPULATION ARE FOOD INSECURE. THE GREATER HOUSTON AREA IS ONE OF THE HARDEST HIT AREAS IN THE "UNINSURED" HEALTHCARE CRISIS WITH A QUARTER OF HARRIS COUNTY RESIDENTS UNINSURED. THE RISING RATE OF OBESITY IS THE SINGLE BIGGEST THREAT TO THE GREATER HOUSTON AREA-MORE THAN ONE IN FOUR GREATER HOUSTON RESIDENTS IS OBESE. OBESTIY AND CONCERNS RELATED TO MAINTAINING A HEALTHY LIFESTYLE ARE CHALLENGES WITH RESIDENTS FACING BARRIERS RANGING FROM LACK OF TIME TO CULTURAL ISSUES INVOLVING CULTURAL NORMS TO STRUCTURAL CHALLENGES SUCH AS LIVING IN A FOOD DESERT OR HAVING LIMITED ACCESS TO SIDEWALKS, RECREATIONAL FACILITIES, OR AFFORDABLE FRUITS AND VEGETABLES. HEALTH EDUCATION AND PREVENTION AND INCREASED ACCESS TO HEALTHCARE ARE VITAL TO IMPROVING THE OVERALL HEALTH OF RESIDENTS WHOSE LEADING CAUSES OF HEALTH ISSUES ARE MENTAL HEALTH PROBLEMS, DIABETES, OBESITY (ADULT), OBESITY (CHILDREN), SUBSTANCE ABUSE, HEART DISEASE/STROKE, CANCER AND HIGH BLOOD PRESSURE. THE MOST PREVALENT CHRONIC DISEASES ARE DIABETES, OBESITY, HIGH BLOOD PRESSURE, CANCER, HEART FAILURE AND ASTHMA. ONLY 28.4% OF THE HARRIS COUNTY POPULATION, AGE 25+, HAS A COLLEGE DEGREE. SO VITAL TO THE WELL-BEING OF INDIVIDUALS AND FAMILIES, THE HOUSTON AREA'S UNEMPLOYMENT RATE IS RELATIVELY LOW AT 4.9% AND THE HOUSTON AREA ENJOYS A LOW COST OF LIVING.
990 Sch H Part VI, Line 5	Promotion of Community Health MEMORIAL HERMANN HEALTH SYSTEM WORKS WITH OTHER HEALTHCARE PROVIDERS, GOVERNMENT AGENCIES, BUSINESS LEADERS AND COMMUNITY STAKEHOLDERS TO ENSURE THAT ALL RESIDENTS OF THE GREATER HOUSTON AREA HAVE ACCESS TO THE CARE AND SERVICES THEY NEED TO IMPROVE THEIR QUALITY OF LIFE AND THE OVERALL HEALTH OF THE COMMUNITY. PROGRAMS ARE DESIGNED TO PROVIDE CARE FOR UNINSURED AND UNDERINSURED CHILDREN; TO REACH THOSE HOUSTONIANS NEEDING LOW COST CARE; TO SUPPORT THE EXISTING INFRASTRUCTURE OF NON-PROFIT CLINICS AND FQHCS; TO EDUCATE INDIVIDUALS AND THEIR FAMILIES ON HOW TO ACCESS THE HEALTHCARE AVAILABLE TO THEM; AND TO PROMOTE A CULTURE OF HEALTH THROUGH HEALTH INITIATIVES DESIGNED TO REDUCE OBESITY INCREASE ACCESS TO HEALTHY FOOD, INCREASE PHYSICAL ACTIVITY, IMPROVE HEALTH AND REDUCE CHRONIC CONDITIONS. COMMITTED TO MAKING THE GREATER HOUSTON AREA A HEALTHIER AND MORE VITAL PLACE TO LIVE, MEMORIAL HERMANN SUPPORTS THE FOLLOWING INITIATIVES: TEN MEMORIAL HERMANN HEALTH CENTERS FOR SCHOOLS, ESTABLISHED IN 1996, OFFER ACCESS TO PRIMARY MEDICAL AND MENTAL HEALTH SERVICES TO UNDERSERVED CHILDREN AT 72 SCHOOLS IN THE GREATER HOUSTON AREA. DATA DRIVEN, IN 2016, STUDENTS' ASTHMA EXACERBATIONS, EMERGENCY ROOM VISITS AND HOSPITALIZATIONS WERE REDUCED BY 83%. 89% OF STUDENTS RETURNED TO SCHOOL AFTER THEIR CLINIC VISIT. STUDENTS RECEIVING COUNSELING SERVICES REALIZED INCREASED GRADE POINT AVERAGES, DECREASED ABSENTEEISM, AND REDUCED SUSPENSIONS/DETENTIONS. THE MEMORIAL HERMANN MOBILE DENTAL CLINIC, ESTABLISHED IN 2000, HAS THREE DENTAL VANS AND PROVIDES ACCESS TO PREVENTATIVE AND RESTORATIVE DENTAL SERVICES AT NINE HEALTH CENTERS FOR SCHOOLS' SITES AND IS ACCESSIBLE AS A "DENTAL HOME" FOR UNINSURED STUDENTS. IN 2016, NO MORE THAN 4.7% OF STUDENTS AGE 4-11 AND 4.9% OF STUDENTS AGE 12+ EXPERIENCED CARIES AT RECALL, AS OPPOSED TO THE HEALTHY PEOPLE 2020 OBJECTIVES OF 49% AND 48%, RESPECTIVELY. TWO DIETITIANS ARE AVAILABLE THROUGH THE HEALTHY EATING AND LIFESTYLES PROGRAM (HELP) DESIGNED TO EDUCATE HEALTH CENTERS FOR SCHOOLS' STUDENTS AND THEIR FAMILIES ON THE IMPORTANCE OF PROPER NUTRITION AND EXERCISE. THE PROGRAM IS INTENSIVE AND INDIVIDUAL, MEETING THE STUDENT AND FAMILY WHERE THEY ARE ON THE "STAGE OF CHANGE" CONTINUUM. IN 2016, 11,000 STUDENTS WERE SERVED IN 35,000 MEDICAL CARE, DENTAL CARE, MENTAL HEALTH AND NUTRITION VISITS. SERVING THE COMMUNITY SINCE 2008, THE MEMORIAL HERMANN ER NAVIGATION PROGRAM PLACES CERTIFIED COMMUNITY HEALTH WORKERS WHO HAVE THE TRAINING, CULTURAL UNDERSTANDING AND LINGUISTIC CAPACITY TO HELP THE UNINSURED, WHO DISPROPORTIONATELY USE EMERGENCY ROOMS FOR HEALTHCARE, 'NAVIGATE' THE COMPLEX HEALTH SYSTEM, OBTAIN A MEDICAL HOME, SCHEDULE APPOINTMENTS, SECURE NEEDED SOCIAL SERVICES AND COPE WITH FUTURE HEALTHCARE CONCERNS. A 12-MONTH PRE-POST ANALYSIS OF NAVIGATED PATIENTS RESULTED IN A 67% DECLINE IN ER VISITS. IN 2016 FOOD INSECURITY SCREENING WAS INCORPORATED INTO THE NAVIGATION INTERVENTION, AND AS A WAY OF GIVING BACK TO THE FOOD PANTRIES THAT ARE WIDELY REFERRED TO THE NAVIGATORS BEGAN ATTENDING PANTRY HEALTH FAIRS PROVIDING EDUCATION ON MEDICAL HOME USAGEHOW TO SELECT YOUR PCP, WHAT TO EXPECT FROM YOUR PCP, HOW TO TALK TO YOUR PCP. MEMORIAL HERMANN NEIGHBORHOOD HEALTH CENTERS ARE STRATEGICALLY LOCATED NEAR TWO OF HOUSTON'S BUSIEST ERS, ARE OPEN EXTENDED HOURS AND SERVE AS A MEDICAL HOME TO UNINSURED AND UNDERINSURED WORKING FAMILIES. THE GOAL IS TO PROVIDE THIS POPULATION WITH THE PROVISION OF PREVENTIVE, ACUTE, AND CHRONIC CARE. THEY ARE AN AFFORDABLE MEDICAL HOME WHERE INDIVIDUALS CAN DECREASE THEIR HYPERTENSION, MANAGE THEIR DIABETES, AND WHERE WOMEN FEEL COMFORTABLE RETURNING FOR THEIR ANNUAL WELL-WOMAN EXAMS. PHYSICIANS OF SUGAR CREEK, IS A MEMORIAL FAMILY PRACTICE RESIDENCY TRAINING SITE THAT OFFERS SLIDING SCALE FEES TO THE AREA'S WORKING POOR. MEMORIAL HERMANN MEDICAL MISSIONS EXISTS TO FINANCE, FACILITATE, AND ENCOURAGE PHYSICIAN LED TEAMS INTO THIRD WORLD COUNTRIES. IT FINANCES BY PROVIDING SUPPLIES, PHARMACEUTICALS, AND SCHOLARSHIPS FOR NON-PHYSICIAN TEAM MEMBERS IT FACILITATES BY LINKING PHYSICIANS AND SUPPORT TEAMS TOGETHER; ADVISING ON PASSPORTS, VACCINATIONS, AIR TRAVEL; AND COORDINATING NECESSARY SUPPLIES. IT ENCOURAGES BY SHARING THE KNOWLEDGE OF PAST EXPERIENCES; COMMUNICATING WHAT A MEDICAL MISSION MEANS TO A POVERTY OR DISASTER STRICKEN AREA; AND COACHING ON SAFETY PRACTICES SO THAT PARTICIPANTS FEEL COMFORTABLE IN THEIR NEW SURROUNDINGS. IN 2016, APPROXIMATELY 315,435 PEOPLE FROM 27 DIFFERENT COUNTRIES WERE ASSISTED THROUGH 82 MISSIONS. MEMORIAL HERMANN MATCHES THE PROCEEDS OF AN ANNUAL GOLF TOURNAMENT TO SUPPORT THIS GLOBAL COMMUNITY BENEFIT EFFORT. SEVERAL NEW MEMORIAL HERMANN INITIATIVES ARE UNDER THE STATE OF TEXAS' MEDICAID 1115 WAIVER - TEXAS HEALTH CARE TRANSFORMATION AND QUALITY IMPROVEMENT PROGRAM COLLABORATIVE. THE PSYCHIATRIC RESPONSE CASE MANAGEMENT PROGRAM WAS INTRODUCED TO ADDRESS THE GAP IN THE MENTAL AND BEHAVIORAL CARE SERVICES BY CONNECTING PATIENTS TO OUTPATIENT TREATMENT AND OTHER COMMUNITY RESOURCES. THE INITIATIVE WAS DESIGNED TO PROVIDE INTENSIVE, COMMUNITY-BASED CASE MANAGEMENT SERVICES FOR THOSE WITH BEHAVIORAL HEALTH DIAGNOSIS AND A HISTORY OF MULTIPLE HOSPITALIZATIONS. UNDER THIS PROGRAM, PATIENTS ARE ACTIVELY ENGAGED IN THE DEVELOPMENT OF THEIR OWN MENTAL HEALTH CARE PLAN AND LONG-TERM RECOVERY GOALS WITH THE ULTIMATE OBJECTIVE OF IMPROVED PATIENT WELLNESS AND GOAL ACHIEVEMENT. THE CASE MANAGEMENT PROGRAM WORKS CLOSELY WITH MEMORIAL HERMANN'S PSYCHIATRIC RESPONSE TEAM, IN WHICH MENTAL HEALTH CLINICIANS EVALUATE, STABILIZE, ARRANGE FOR TRANSFERS AND DEVELOP AFTERCARE PLANS FOR PATIENTS IN EMERGENCY ROOM AND MEDICAL INPATIENT SETTINGS. THE PSYCHIATRIC RESPONSE TEAM REFERS PATIENTS TO MORE THAN 200 MENTAL HEALTH COMMUNITY TREATMENT PROVIDERS WITHIN HARRIS, FORT BEND AND MONTGOMERY COUNTIES. THIS LARGE REFERRAL NETWORK ALLOWS THE PROGRAM TO LEVERAGE THE PATIENTS WITH INSURANCE TO OBTAIN CARE FOR THOSE WITHOUT. THIS NETWORK ALSO ELIMINATES A SINGLE FACILITY FROM COMPETING WITH ALL LOCAL EMERGENCY CENTERS FOR LIMITED PSYCHIATRIC RESOURCES. ANOTHER MEMORIAL HERMANN 1115 WAIVER PROGRAM IS THE MENTAL HEALTH CRISIS CLINICS, CREATED IN RESPONSE TO THE SIGNIFICANT GAP IN MENTAL AND BEHAVIORAL HEALTH SERVICES IN HARRIS AND SURROUNDING COUNTIES. MEMORIAL HERMANN CREATED MENTAL HEALTH CRISIS CLINICS THAT PROVIDE RAPID ACCESS TO INITIAL PSYCHIATRIC TREATMENT AND OUTPATIENT MULTI-DISCIPLINARY SERVICES FOR PATIENTS WITH NO IMMEDIATE ACCESS TO MENTAL HEALTH CARE. THE GOAL IS TO KEEP INDIVIDUALS HEALTHY AND SAFE, DEVELOP PROCESSES AND INTERVENTIONS TO MANAGE CHALLENGING BEHAVIORS, AND REDUCE IMPROPER HOSPITALIZATION OR POSSIBLE INCARCERATION. THE NURSE HEALTH LINE WAS ESTABLISHED IN 2014 AS A FREE TELEPHONE SERVICE FOR GREATER HOUSTON RESIDENTS WHO ARE EXPERIENCING A HEALTH CONCERN AND ARE UNSURE OF WHAT TO DO OR WHERE TO GO. EXPERIENCED, BILINGUAL NURSES USE THEIR TRAINING AND EXPERTISE TO CONDUCT ASSESSMENTS BY PHONE, AND ARE AVAILABLE TO ANSWER CALLS 24 HOURS A DAY, SEVEN DAYS A WEEK FOR ANY RESIDENT LIVING IN HARRIS OR SURROUNDING COUNTIES. THEY HELP CALLERS DECIDE WHEN AND WHERE TO GO FOR MEDICAL CARE AND ASSIST WITH SOCIAL SERVICE REFERRALS AND TRANSPORTATION NEEDS. CALLERS RECEIVE HEALTHCARE ADVICE AND EDUCATION USING NATIONALLY RECOGNIZED STANDARDIZED PROTOCOLS. DOCUMENTED OUTCOMES INCLUDE: 6,000 CALLS PER MONTH; 72% OF THE TRIAGE LINE CALLERS THAT WOULD HAVE SOUGHT CARE IN AN ED SETTING WERE REDIRECTED TO PRIMARY CARE; 97% OF CALLERS FOLLOWED THE CARE ADVICE OF THE NURSE; AND, 99% OF CALLERS WOULD USE THE SERVICE AGAIN. THE CALL CENTER IS A CREDIBLE AND AVAILABLE RESOURCE FOR ASSISTANCE WITH MEDICAL CONCERNS AND QUESTIONS. MEMORIAL HERMANN HEALTH SYSTEM'S COMMUNITY PARTNERSHIPS INCLUDE: HEALTH RELATED ORGANIZATIONS, RESEARCH AND EDUCATIONAL INSTITUTES, BUSINESSES, NONPROFITS, AND GOVERNMENT ORGANIZATIONS TO IDENTIFY, TO RAISE AWARENESS AND TO MEET COMMUNITY HEALTH NEEDS. A FEW OF THE PARTNERSHIPS FOLLOW: MEMORIAL HERMANN SUPPORTS CANCARE OF HOUSTON, A ONE-ON-ONE HOSPITAL VISITATION PROGRAM THAT IS STAFFED BY VOLUNTEERS WHOSE MISSION IS TO SUPPORT PATIENTS AND THEIR FAMILIES AND TO CREATE HOPE AND POSITIVITY WHERE THERE IS NONE SO THAT NO ONE SUFFERS ALONE. FOR MORE THAN 20 YEARS, MEMORIAL HERMANN HAS PROVIDED FREE LINEN SERVICES FOR COVENANT HOUSE, A CHILD CARE AGENCY THAT PROVIDES EMERGENCY SHELTER, COUNSELING, VOCATIONAL AND EDUCATIONAL SERVICES, HEALTH CARE AND LEGAL INFORMATION TO HOMELESS AND RUNAWAY YOUTH AT NO COST. MEMORIAL HERMANN SUPPORTS THE EXPENSES OF THE ANNUAL DINNER FOR E.C.H.O. (EPIPHANY COMMUNITY HEALTH OUTREACH), A SOCIAL SERVICE AGENCY THAT PROVIDES HEALTH AND SOCIAL SERVICES TO NEW IMMIGRANTS AND REFUGEES, PRIMARILY LIVING IN THE SOUTHWEST AREA. MEMORIAL HERMANN HAS BEEN A PARTNER OF THE HEALTHY LIVING MATTERS COLLABORATION, THE CLINTON HEALTH MATTERS INITIATIVE AND THE BUILD HEALTH CHALLENGE. EACH COLLABORATIVE HAS BEEN CREATED TO I
990 Sch H Part VI, Line 6	THE LARGEST NOT-FOR-PROFIT HEALTH SYSTEM IN SOUTHEAST TEXAS, MEMORIAL HERMANN HAS 16 HOSPITALS AND NUMEROUS SPECIALTY PROGRAMS AND SERVICES CONVENIENTLY LOCATED THROUGHOUT THE GREATER HOUSTON AREA. OUR 5,500 AFFILIATED PHYSICIANS AND 24,000 EMPLOYEES PRACTICE EVIDENCE-BASED MEDICINE WITH A RELENTLESS FOCUS ON QUALITY AND PATIENT SAFETY. ALL ASPECTS OF THE HEALTH SYSTEM - CARE DELIVERY, PHYSICIANS AND HEALTH SOLUTIONS ARE BROUGHT TOGETHER TO CREATE A TRULY INTEGRATED HEALTH SYSTEM. THIS BREADTH OF SERVICE UNIQUELY POSITIONS MEMORIAL HERMANN TO COLLABORATE WITH OTHER PROVIDERS TO ASSESS AND CREATE HEALTH CARE SOLUTIONS FOR INDIVIDUALS IN GREATER HOUSTON'S DIVERSE COMMUNITIES; TO PROVIDE SUPERIOR QUALITY, COST-EFFICIENT, INNOVATIVE AND COMPASSIONATE CARE; TO SUPPORT TEACHING AND RESEARCH TO ADVANCE THE HEALTH PROFESSIONALS AND HEALTH CARE OF TOMORROW; AND TO PROVIDE HOLISTIC HEALTH CARE WHICH ADDRESSES THE PHYSICAL, SOCIAL, PSYCHOLOGICAL AND SPIRITUAL NEEDS OF INDIVIDUALS. OUR MEMORIAL HERMANN PHYSICIAN NETWORK, MHMD, COMPRISES PHYSICIANS FROM MEMORIAL HERMANN MEDICAL GROUP, UTHEALTH AND PRIVATE PHYSICIANS AND SPECIALISTS. MEMORIAL HERMANN HEALTH SOLUTIONS SUBSIDIARIES OFFER COMPREHENSIVE, INTEGRATED HEALTH SOLUTIONS THAT DELIVER QUALITY BENEFITS WHILE HELPING TO CONTAIN COSTS. WE OFFER LEADING-EDGE CLINICAL EXPERTISE, PATIENT-CENTERED CARE, AND LEADING EDGE TECHNOLOGY AND INNOVATION AS WELL AS HOUSTON'S FIRST HEALTH INFORMATION EXCHANGE THAT SHARES VITAL PATIENT DATA AMONG CARE PROVIDERS, HELPING TO ENSURE PATIENTS RECEIVE THE RIGHT CARE AT THE RIGHT TIME. WE'VE PROUDLY SERVED THE GREATER HOUSTON COMMUNITY FOR MORE THAN 105 YEARS, AND CONTRIBUTE SOME $451 MILLION ANNUALLY THROUGH SCHOOL-BASED HEALTH CENTERS AND OTHER PROGRAMS. THROUGH MEMORIAL HERMANN'S SUBSIDIARY, THE MEMORIAL HERMANN COMMUNITY BENEFIT CORPORATION (MHCBC), MEMORIAL HERMANN IMPLEMENTS PROGRAMS TO WORK WITH OTHER HEALTHCARE PROVIDERS, GOVERNMENT AGENCIES, BUSINESS LEADERS AND COMMUNITY STAKEHOLDERS TO ENSURE THAT ALL RESIDENTS OF THE GREATER HOUSTON AREA HAVE ACCESS TO THE CARE THEY NEED TO IMPROVE THEIR QUALITY OF LIFE AND THE OVERALL HEALTH OF THE COMMUNITY. THE MISSION OF MEMORIAL HERMANN COMMUNITY BENEFIT CORPORATION IS TO TEST AND MEASURE INNOVATIVE SOLUTIONS THAT PROMOTE GOOD HEALTH FOR THE INDIVIDUAL, THE HEALTH SYSTEM AND THE COMMUNITY. MHCBC COLLABORATES WITH OTHERS AS WELL AS CREATE SIGNATURE, EVIDENCE-BASED WAYS TO IMPROVE THE COMMUNITIES WHERE PEOPLE LIVE, WORK, LEARN, AND PLAY. MHCBC AREAS OF EXPERTISE SPAN ACCESS AND NAVIGATION, NUTRITION AND PHYSICAL ACTIVITY, SUPPORT OF THE WHOLE CHILD, AND RIGOROUS OUTCOME MEASUREMENT. PRIMARY PROGRAM FOCII INCLUDE EDUCATION ON, ACCESS TO, AND PROVISION OF PRIMARY MEDICAL, DENTAL, MENTAL HEALTH, AND SOCIAL SERVICE SUPPORT TO UNDERSERVED POPULATIONS; FOOD AS HEALTH; AND, EXERCISE AS MEDICINE. NEW PROGRAMS ARE PILOTED, AND PROVEN PROGRAMS ARE REPLICATED IN THE COMMUNITY. COMMUNITY BENEFIT CORPORATION FUNDING TENENTS INCLUDE: PROVISION OF PRIMARY AND/OR SPECIALTY CARE FOR THE UNINSURED AND UNDERINSURED; CONTRIBUTION TO THE EXISTING INFRASTRUCTURE OF NON-PROFIT CLINICS AND FQHC'S; PROGRAMS, PRACTICES, AND POLICIES THAT AFFECT THE HEALTH OF INDIVIDUALS, FAMILIES, AND COMMUNITIES; COMMITMENT TO MEASUREMENT; EXISTENCE OF COLLABORATIVE PARTNERS; PROGRAMMATIC INCLUSION OF HEALTH EDUCATION AND LITERACY; STRIVE TOWARDS SUSTAINABILITY. AS REQUIRED BY THE COMMUNITY HEALTH NEEDS ASSESSMENT-SECTION 501(R)(3)-REQUIREMENT OF THE ACA, MEMORIAL HERMANN COMMUNITY BENEFIT CORPORATION SUPPORTS THE MEMORIAL HERMANN HEALTH SYSTEM LICENSED ACUTE CARE, REHAB, AND SURGICAL HOSPITALS IN CONDUCTING COMMUNITY NEEDS ASSESSMENTS. THE CORRESPONDING IMPLEMENTATION STRATEGIES BALANCE THE INDIVIDUALITY OF THE DIFFERENT HOSPITALS WITH THE SYSTEM STRATEGY OF COLLECTIVELY SUPPORTING COMMUNITY OBJECTIVES TO ACHIEVE THE NECESSARY ALIGNMENT AND LEVERAGE TO IMPACT TRUE COMMUNITY CHANGE.
990 Sch H Part VI, Line 7	State Filing Memorial Hermann Health System files a community benefit report in Texas that is available on the website http://communitybenefit.memorialhermann.org/about-us/.

Schedule H (Form 990) 2015

Additional Data

Software ID:
Software Version:

- TIN:

Schedule I
(Form 990)

Department of the Treasury
Internal Revenue Service

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

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

Attach to Form 990.
lBullet

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

OMB No. 1545-0047

2015

Open to Public
Inspection

Name of the organization
Memorial Hermann Health System

Employer identification number
74-1152597

Part I

General Information on Grants and Assistance

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

Yes No

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

Part II

Grants and Other Assistance to Domestic Organizations and Domestic Governments. Complete if the organization answered "Yes" on Form 990, Part IV, line 21, for any recipient

that received more than $5,000. Part II can be duplicated if additional space is needed.

(a) Name and address of organization or government	(b) EIN	(c) IRC section if applicable	(d) Amount of cash grant	(e) Amount of non-cash assistance	(f) Method of valuation (book, FMV, appraisal, other)	(g) Description of non-cash assistance	(h) Purpose of grant or assistance

(1) AMERICAN HEART ASSOCIATION POBox 15186 Austin,TX78761	13-5613797	501 c(3)	150,250	general fundraising
(2) UNIVERSITY OF TEXAS HSC 7000 Fannin street houston,TX77030	74-1761309	501 c(3)	150,000	general fundraising
(3) LONE STAR COLLEGE SYSTEM 5000 RESEARCH FOREST DRIVE THE WOODLANDS,TX77381	76-0336902	501 c(3)	85,954	general fundraising
(4) HOUSTON ZOO 1513 Cambridge Street Houston,TX77030	74-1590271	501 c(3)	55,000	general fundraising
(5) INSTITUTE FOR SPIRITUALITY 8100 Greenbriar 220 Houston,TX77054	74-1246255	501 c(3)	50,000	general fundraising
(6) GOOD SAMARITAN FOUNDATION PO Box 271108 Houston,TX77277	74-1235398	501 c(3)	40,500	general fundraising
(7) GREATER HOUSTON PARTNERSHIP 1200 Smith Suite 700 Houston,TX77002	76-0267896	501 c(6)	33,500	general fundraising
(8) VICTORY (ACS) PO Box 572915 Houston,TX77257	74-1185665	501 c(3)	25,000	general fundraising
(9) MARCH OF DIMES 9494 Southwest Fry 300 Houston,TX77074	13-1846366	501 c(3)	25,000	general fundraising
(10) FAITH IN PRACTICE 7500 Beechnut St Suite 208 Houston,TX77074	76-0415986	501 c(3)	25,000	general fundraising
(11) Coalition to Protect America's Healthcare 4600 East-West Highway Suite 900 Bethesda,MD20814	52-2253225	501 c(4)	25,000	general fundraising
(12) HOUSTON TEXANS FOUNDATION NRG stadium - Two NRG Park houston,TX77054	01-0572814	501 c(3)	24,000	general fundraising
(13) FORT BEND CARES 14823 SOUTHWEST FREEWAY SUGAR LAND,TX77478	33-1112246	501 c(3)	22,026	general fundraising
(14) MEMORIAL HERMANN BICYCLE CLUB 929 Gessner suite 2700 houston,TX77024	76-0675186	501 c(4)	20,000	general fundraising
(15) HOUSTON MUSEUM OF FINE ARTS PO Box 6826 Houston,TX77265	74-1109655	501 c(3)	20,000	general fundraising
(16) KNOWLEDGE ARTS FOUNDATION nine greenway plaza houston,TX77046	20-2425139	501 c(3)	20,000	general fundraising
(17) CHILDREN'S MUSEUM OF HOUSTON 1500 Binz Houston,TX77004	74-2178563	501 c(3)	20,000	general fundraising
(18) MEMORIAL BONE AND JOINT PO Box 2047 winnie,TX77665	56-2415567	501 c(3)	20,000	general fundraising
(19) TEXAS NURSES DISTRICT 9 FOUNDATION 7324 SW fry Suite 2-1453 houston,TX77074	26-4369773	501 c(3)	16,500	general fundraising
(20) Fort Bend County Womens Center PO Box 183 richmond,TX77406	76-0032451	501 c(3)	15,000	general fundraising
(21) CanCare of Houston Inc 9575 Katy Freeway Suite 428 Houston,TX77024	76-0305357	501 c(3)	15,000	general fundraising
(22) HOUSTON BALLET 601 Preston street Houston,TX77002	74-1394920	501 c(3)	15,000	general fundraising
(23) FORT BEND YOUTH FOOTBALL 1306 Ashwood SUGAR LAND,TX77478	46-2742566	501 c(3)	15,000	general fundraising
(24) Boy Scouts of America 1911 Bagby Houston,TX77052	74-1109732	501 c(3)	13,500	general fundraising
(25) Humble ISD PO Box 2000 Humble,TX77347	76-0608461	501 c(3)	13,500	general fundraising
(26) TEXAS WOMEN'S UNIVERSITY 6700 Fannin houston,TX77030	75-1292762	501 c(3)	12,000	general fundraising
(27) HOLOCAUST MUSEUM HOUSTON 5401 Caroline St Houston,TX77004	76-0331398	501 c(3)	11,000	general fundraising
(28) AMERICAN RED CROSS PO Box 924168 houston,TX77292	76-0129106	501 c(3)	10,000	general fundraising
(29) Depelchin Children's Center 4950 Memorial Drive Houston,TX77007	76-0318867	501 c(3)	10,000	general fundraising
(30) UNIVERSITY OF HOUSTON 4800 Calhoun Houston,TX77204	74-6041411	501 c(3)	10,000	general fundraising
(31) ARTHRITIS FOUNDATION 3701 Kirby Dr Suite 1230 Houston,TX77098	94-3454386	501 c(3)	10,000	general fundraising
(32) Cystic Fibrosis Foundation 50 briar hollow lane suite 495e houston,TX77027	74-1400718	501 c(3)	10,000	general fundraising
(33) RICE UNIVERSITY 6100 main street - ms70 houston,TX77005	74-1109620	501 c(3)	10,000	general fundraising
(34) Finish Line Sports 13895 Southwest Frwy SUGAR LAND,TX77478	76-0134642		10,000	general fundraising
(35) American Leadership Forum 3101 Richmond Suite 140 Houston,TX77098	76-0284248	501 c(3)	10,000	general fundraising
(36) TEXAS DIVERSITY COUNCIL 2656 South Loop West Houston,TX77054	38-3695039	501 c(3)	10,000	general fundraising
(37) LIFELINE CHAPLAINCY 1415 southmore houston,TX77004	76-0504483	501 c(3)	10,000	general fundraising
(38) CHILDREN AT RISK 2900 weslayan ste 400 houston,TX77027	76-0360533	501 c(3)	10,000	general fundraising
(39) UNITED NEGRO COLLEGE FUND INC 1235 North loop west suite 1010 houston,TX77008	75-6036145	501 c(3)	10,000	general fundraising
(40) DISCOVERY GREEN CONSERVANCY 1500 Mckinney Houston,TX77010	20-1951465	501 c(3)	10,000	general fundraising
(41) HEALTH MUSEUM 1515 Hermann Dr houston,TX77004	74-6106357	501 c(3)	10,000	general fundraising
(42) MS WHEELCHAIR TEXAS Foundation 5400 Westheimer ct houston,TX77056	06-1741232	501 c(3)	10,000	general fundraising
(43) HOUSTON INTERNATIONAL INITIATIVES 901 bagby street floor 4 houston,TX77002	80-0902020	501 c(3)	10,000	general fundraising
(44) HOUSTON BUSINESS COALITION ON HEALTH 10401 Westoffice Drive houston,TX77042	76-0058682	501 c(3)	10,000	general fundraising
(45) ASTROS IN ACTION FOUNDATION 501 crawford street Houston,TX77002	74-2793078	501 c(3)	10,000	general fundraising
(46) TEXAS MEDICAL CENTER FOUNDATION 2450 holcombe blvd suite 1 houston,TX77021	47-2836992	501 c(3)	10,000	general fundraising
(47) Blue Cure Foundation PO Box 22044 houston,TX77227	27-4060294	501 c(3)	10,000	general fundraising
(48) FOOD ALLERGY RESEARCH AND EDUCATION 3333 Lee Parkway Suite 612 dallas,TX75219	13-3905508	501 c(3)	8,500	general fundraising
(49) Center for Houston's Future 1200 Smith Suite 1150 Houston,TX77002	76-0386539	501 c(3)	8,150	general fundraising
(50) AMERICAN ADVERTISING FEDERATION PO Box 27592 Houston,TX77227	74-6047375	501 c(6)	8,100	general fundraising
(51) Child Advocates 3401 portsmouth street 210 houston,TX77098	76-0111345	501 c(3)	8,000	general fundraising
(52) Northeast Hospital Foundation 18951 memorial north humble,TX77338	76-0224541	501 c(3)	7,500	general fundraising
(53) Interface Samaritan Counseling Centers 4803 san felipe houston,TX77056	74-1734082	501 c(3)	7,500	general fundraising
(54) MEN OF DISTINCTION OF GREATER HOUSTON INC 4218 Marquette houston,TX77219	26-0421594	501 c(3)	7,500	general fundraising
(55) Houston Area Women's Center 1010 Waugh Dr Houston,TX77019	74-2029166	501 c(3)	7,000	general fundraising
(56) Child Advocates of Fort Bend County 5403 Avenue N ROSENBERG,TX77471	76-0337426	501 c(3)	6,500	general fundraising
(57) KATY FAMILY YMCA 22807 Westheimer pkwy katy,TX77494	74-1109737	501 c(3)	6,500	general fundraising
(58) Interfaith Ministries For Greater Houston 3217 Montrose Blvd Houston,TX77006	74-1488102	501 c(3)	6,000	general fundraising
(59) TEACH FOR AMERICA 4669 Swy Fry suite 600 houston,TX77027	13-3541913	501 c(3)	6,000	general fundraising
(60) FIRST COLONY LITTLE LEAGUE 1707 alcorn bayou drive sugar land,TX77479	76-0300852	501 c(3)	6,000	general fundraising
(61) Kidney Kamp Foundation 6431 fannin street msb 3-121 houston,TX77030	45-0493892	501 c(3)	5,550	general fundraising
(62) HCMSA PHILANTHROPIC FUND 1515 hermann houston,TX77004	74-2188421	501 c(3)	5,500	general fundraising
(63) KATY ISD Education foundation 6301 south Stadium drive katy,TX77494	80-0732375	501 c(3)	5,500	general fundraising
(64) Volunteer Service 12335 kingsride suite 137 houston,TX77024	76-0042101	501 c(3)	5,300	general fundraising

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

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

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

Cat. No. 50055P

Schedule I (Form 990) 2015

Page 2

Part III

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

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

(1)
(2)
(3)
(4)
(5)
(6)
(7)

Part IV

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

Return Reference	Explanation

Schedule I (Form 990) 2015

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" on 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

2015

Open to Public Inspection

Name of the organization

Memorial Hermann Health System

Employer identification number

74-1152597

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 on 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 on Form 990, Part VII, Section A, line 1a with respect to the filing organization or a related organization:

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

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

Yes

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

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

Only 501(c)(3), 501(c)(4), and 501(c)(29) organizations must complete lines 5-9.

For persons listed on 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," on line 5a or 5b, describe in Part III.

For persons listed on 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," on line 6a or 6b, describe in Part III.

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

Yes

Were any amounts reported on 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" on 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) 2015

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 on 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 on 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)
1WOLTERMANDAN JDirector; President & CEO	(i) (ii)	1,259,919 ------------- 0	1,531,815 ------------- 0	446,421 ------------- 0	2,112,552 ------------- 0	7,431 ------------- 0	5,358,138 ------------- 0	283,638 ------------- 0
2GORDONDEBORAHEVP & Chief Legal & Secretary	(i) (ii)	491,046 ------------- 0	328,257 ------------- 0	1,723 ------------- 0	126,368 ------------- 0	9,780 ------------- 0	957,174 ------------- 0	0 ------------- 0
3LARAWAYDENNIS LEVP & CFO & Treasurer	(i) (ii)	748,954 ------------- 0	667,411 ------------- 0	54,622 ------------- 0	221,219 ------------- 0	12,798 ------------- 0	1,705,004 ------------- 0	52,691 ------------- 0
4SHABOTMICHAELEVP, Chief Clinical Officer	(i) (ii)	611,864 ------------- 0	517,274 ------------- 0	180,777 ------------- 0	154,658 ------------- 0	9,973 ------------- 0	1,474,546 ------------- 0	105,696 ------------- 0
5SHEAWARRENVP,Deputy Gen Counsel,Asst Sec	(i) (ii)	293,179 ------------- 0	203,907 ------------- 0	1,046 ------------- 0	77,623 ------------- 0	11,884 ------------- 0	587,639 ------------- 0	0 ------------- 0
6STOKESCHARLES DEVP, Chief Operating Officer	(i) (ii)	779,720 ------------- 0	710,343 ------------- 0	250,551 ------------- 0	221,397 ------------- 0	8,336 ------------- 0	1,970,347 ------------- 0	182,589 ------------- 0
7ALEXANDERKEITHSVP, Regional President North	(i) (ii)	486,240 ------------- 0	364,359 ------------- 0	109,728 ------------- 0	134,392 ------------- 0	14,242 ------------- 0	1,108,961 ------------- 0	84,781 ------------- 0
8ASPRECERIN SSVP, Regional President - Sout	(i) (ii)	485,208 ------------- 0	377,179 ------------- 0	84,386 ------------- 0	108,817 ------------- 0	9,780 ------------- 0	1,065,370 ------------- 0	52,036 ------------- 0
9BRACERODNEYSVP, Regional President - Serv	(i) (ii)	547,517 ------------- 0	430,481 ------------- 0	150,258 ------------- 0	137,226 ------------- 0	8,336 ------------- 0	1,273,818 ------------- 0	101,583 ------------- 0
10BRADSHAWDAVIDEVP & Chief Strategy & Info	(i) (ii)	570,444 ------------- 0	432,305 ------------- 0	151,617 ------------- 0	160,725 ------------- 0	7,431 ------------- 0	1,322,522 ------------- 0	96,018 ------------- 0
11CORDOLACRAIG ASVP,Regional President Central	(i) (ii)	642,714 ------------- 0	490,899 ------------- 0	130,148 ------------- 0	171,747 ------------- 0	9,780 ------------- 0	1,445,288 ------------- 0	95,818 ------------- 0
12DEANBRIANSVP, CEO - TMC	(i) (ii)	382,696 ------------- 0	138,907 ------------- 0	32,643 ------------- 0	76,889 ------------- 0	1,793 ------------- 0	632,928 ------------- 0	0 ------------- 0
13GARMANJAMESEVP, Chief HR Officer	(i) (ii)	551,868 ------------- 0	440,623 ------------- 0	61,528 ------------- 0	148,088 ------------- 0	9,973 ------------- 0	1,212,080 ------------- 0	56,626 ------------- 0
14O'SULLIVANPAUL CSVP, CEO - Memorial City	(i) (ii)	369,036 ------------- 0	198,353 ------------- 0	54,839 ------------- 0	86,213 ------------- 0	6,051 ------------- 0	714,492 ------------- 0	34,495 ------------- 0
15URBANJOSHUASVP, CEO - The Woodlands	(i) (ii)	388,970 ------------- 0	230,716 ------------- 0	51,668 ------------- 0	116,505 ------------- 0	1,793 ------------- 0	789,652 ------------- 0	33,388 ------------- 0
16BARBEBRIAN SSVP, CEO - Cypress	(i) (ii)	393,655 ------------- 0	334,952 ------------- 0	98,189 ------------- 0	98,122 ------------- 0	8,336 ------------- 0	933,254 ------------- 0	66,820 ------------- 0
17DISTEFANOSUSAN MSVP, CEO - Children's	(i) (ii)	370,418 ------------- 0	297,527 ------------- 0	90,709 ------------- 0	96,716 ------------- 0	9,780 ------------- 0	865,150 ------------- 0	62,734 ------------- 0
18HEINSMARSHALL BSVP, Chief Facility Services	(i) (ii)	491,726 ------------- 0	422,812 ------------- 0	411,781 ------------- 0	138,781 ------------- 0	7,431 ------------- 0	1,472,531 ------------- 0	344,856 ------------- 0
19KERRGARYSVP, CEO - Southwest	(i) (ii)	413,505 ------------- 0	314,487 ------------- 0	93,800 ------------- 0	112,045 ------------- 0	5,986 ------------- 0	939,823 ------------- 0	64,627 ------------- 0
20REIMERRENEESVP, Chief Risk Officer	(i) (ii)	302,317 ------------- 0	314,687 ------------- 0	200,141 ------------- 0	60,892 ------------- 0	5,925 ------------- 0	883,962 ------------- 0	186,160 ------------- 0
21BROWNJAMES BFormer Key Employee	(i) (ii)	354,335 ------------- 0	245,740 ------------- 0	51,695 ------------- 0	93,706 ------------- 0	7,637 ------------- 0	753,113 ------------- 0	38,972 ------------- 0
22JADLOWSKISUSAN LFormer Key Employee	(i) (ii)	349,677 ------------- 0	230,200 ------------- 0	54,581 ------------- 0	101,601 ------------- 0	6,087 ------------- 0	742,146 ------------- 0	36,868 ------------- 0
23JOSEHARTCARL EFormer Key Employee	(i) (ii)	333,940 ------------- 0	257,158 ------------- 0	79,069 ------------- 0	88,614 ------------- 0	3,738 ------------- 0	762,519 ------------- 0	40,512 ------------- 0
24METZGERPATFormer Key Employee	(i) (ii)	279,399 ------------- 0	177,401 ------------- 0	54,882 ------------- 0	57,295 ------------- 0	12,729 ------------- 0	581,706 ------------- 0	34,091 ------------- 0
25PARETCAROL JFormer Key Employee	(i) (ii)	281,502 ------------- 0	215,432 ------------- 0	54,965 ------------- 0	75,983 ------------- 0	14,212 ------------- 0	642,094 ------------- 0	30,471 ------------- 0
26SMITHLOUIS G JRFormer Key Employee	(i) (ii)	53,935 ------------- 0	0 ------------- 0	82,728 ------------- 0	5,331 ------------- 0	2,178 ------------- 0	144,172 ------------- 0	44,845 ------------- 0
27TREVINOILEANA VFormer Key Employee	(i) (ii)	318,547 ------------- 0	228,557 ------------- 0	60,943 ------------- 0	87,149 ------------- 0	9,780 ------------- 0	704,976 ------------- 0	43,269 ------------- 0

Schedule J (Form 990) 2015

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
Form 990 Schedule J Line 3	See Schedule O narrative specific to Part VI, Line 15 for details of the compensation determination and approval process.
Form 990 Schedule J Line 4b	Memorial Hermann Health System sponsors two nonqualified retirement plans - Memorial Hermann Supplemental Executive Retirement Plan (SERP) and Executive Deferred Compensation Plan (EDCP). Applicable SERP and EDCP amounts accrued per person: SERP EDCP WOLTERMAN DAN J. 157,880.69 284,750.86 GORDAN DEBORAH 0.00 98,470.73 LARAWAY DENNIS L. 0.00 219,811.49 SHABOT MICHAEL 48,894.48 109,328.09 SHEA WARREN 0.00 45,755.68 STOKES CHARLES D 58,069.39 180,571.84 ALEXANDER KEITH 22,326.17 96,430.11 ASPREC ERIN S 21,813.96 88,193.08 BRACE RODNEY 40,856.47 105,080.33 BRADSHAW DAVID 44,903.09 111,438.95 CORDOLA CRAIG A 32,409.24 131,360.45 DEAN BRIAN 0.00 50,555.83 GARMAN JAMES 0.00 136,539.35 O'SULLIVAN PAUL C 14,057.25 43,982.91 URBAN JOSHUA 17,217.34 76,123.85 BARBE BRIAN S. 28,551.92 69,161.11 DISTEFANO SUSAN M 22,236.51 73,499.70 HEINS MARSHALL B 42,348.91 89,118.64 KERR GARY 26,211.08 71,254.15 REIMER RENEE 12,582.45 48,033.87 BROWN JAMES B. 11,198.57 75,401.15 JADLOWSKI SUSAN L 15,293.65 62,982.30 JOSEHART CARL E 12,314.90 52,868.97 METZGER PAT 11,468.61 35,202.62 PARET CAROL J 19,771.01 31,599.96 SMITH LOUIS G JR 4,056.50 0.00 TREVINO ILEANA V 14,375.85 44,655.12
Form 990 Schedule J Line 7	Memorial Hermann Health System provides variable compensation opportunity through an annual management incentive plan. Paid as a percentage of base salary, the potential bonus payout is based upon the performance of the individual meeting particular goals for their area of responsibility as determined by their immediate supervisor.

Schedule J (Form 990) 2015

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

2015

Open to Public
Inspection

Name of the organization
Memorial Hermann Health System

Employer identification number
74-1152597

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	Harris County Cultural Facilities Finance Corp	76-0337885	414009EM8	11-30-2010	72,206,221	2010A Refund Issue 3/12/1997		X		X		X
B	Harris County Cultural EDU FAC Fin Corp	76-0337885	414009GR5	03-28-2013	468,778,930	2013A/B Ref Issue 04/08/04		X		X		X
C	Harris County Cultural EDU Fac Fin Corp	76-0337885	414009HL7	06-11-2014	307,303,890	2014 A/B/C/D Building and Structur		X		X		X
D	Harris County Cultural Facilities Fin Corp	76-0337885	414009KF6	12-15-2015	270,200,000	2015 A/B/C refund issue 1/5/2011		X		X		X
	Harris County Cultural Facilities Fin Corp	76-0337885	414009KP4	06-08-2016	151,216,215	2016 A Building and Structures		X		X		X
	Harris County Cultural EDU Facilities Fin Corp	76-0337885	414009KS8	06-08-2016	326,305,000	2016 B/C/D/E build & struct ref 4/		X		X		X

Part II

Proceeds

	A		B		C		D
	1 Amount of bonds retired ..................	16,670,000		0		0		0
2 Amount of bonds legally defeased ..............	0		0		0		0
3 Total proceeds of issue ..................	72,206,221		468,778,930		307,303,890		270,200,000
4 Gross proceeds in reserve funds .............	0		0		0		0
5 Capitalized interest from proceeds .............	0		0		0		0
6 Proceeds in refunding escrows ...............	0		70,459,809		0		0
7 Issuance costs from proceeds ...............	1,206,221		3,629,482		2,303,890		0
8 Credit enhancement from proceeds .............	0		0		0		0
9 Working capital expenditures from proceeds .............	0		0		0		0
10 Capital expenditures from proceeds .............	0		0		240,837,928		0
11 Other spent proceeds .............	71,000,000		394,689,639		25,000,000		270,200,000
12 Other unspent proceeds .............	0		0		39,162,072		0
13 Year of substantial completion .............	2010		2013				2011
	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) 2015

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 ....	0 %		0 %		0 %		0 %
5 Enter the percentage of financed property used in a private business use as a result of unrelated trade or business activity carried on by your organization, another section 501(c)(3) organization, or a state or local government .........
6 Total of lines 4 and 5 .............
7 Does the bond issue meet the private security or payment test? ...		X		X		X		X
8a Has there been a sale or disposition of any of the bond-financed property to a nongovernmental person other than a 501(c)(3) organization since the bonds were issued?.............		X		X		X		X
b If "Yes" to line 8a, enter the percentage of bond-financed property sold or disposed of. ..
c If "Yes" to line 8a, was any remedial action taken pursuant to Regulations sections 1.141-12 and 1.145-2? .............		X		X		X		X
9 Has the organization established written procedures to ensure that all nonqualified bonds of the issue are remediated in accordance with the requirements under Regulations sections 1.141-12 and 1.145-2? ........	X		X		X		X

Part IV

Arbitrage

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
1 Has the issuer filed Form 8038-T, 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? .......
b Exception to rebate? ........
c No rebate due? .........
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 ..........	0		JP Morgan		JP Morgan		Deutche Bank
c Term of hedge .........			792 %		1292 %		1593 %
d Was the hedge superintegrated? ......				X		X		X
e Was the hedge terminated? ........				X		X		X

Schedule K (Form 990) 2015

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 ..........	0		0		0		0
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
See Schedule O

Schedule K (Form 990) 2015

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

2015

Open to Public
Inspection

Name of the organization
Memorial Hermann Health System

Employer identification number
74-1152597

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	Harris County Cultural Facilities Finance Corp	76-0337885	414009EM8	11-30-2010	72,206,221	2010A Refund Issue 3/12/1997		X		X		X
B	Harris County Cultural EDU FAC Fin Corp	76-0337885	414009GR5	03-28-2013	468,778,930	2013A/B Ref Issue 04/08/04		X		X		X
C	Harris County Cultural EDU Fac Fin Corp	76-0337885	414009HL7	06-11-2014	307,303,890	2014 A/B/C/D Building and Structur		X		X		X
D	Harris County Cultural Facilities Fin Corp	76-0337885	414009KF6	12-15-2015	270,200,000	2015 A/B/C refund issue 1/5/2011		X		X		X
	Harris County Cultural Facilities Fin Corp	76-0337885	414009KP4	06-08-2016	151,216,215	2016 A Building and Structures		X		X		X
	Harris County Cultural EDU Facilities Fin Corp	76-0337885	414009KS8	06-08-2016	326,305,000	2016 B/C/D/E build & struct ref 4/		X		X		X

Part II

Proceeds

	A		B		C		D
	1 Amount of bonds retired ..................	16,670,000		0		0		0
2 Amount of bonds legally defeased ..............	0		0		0		0
3 Total proceeds of issue ..................	72,206,221		468,778,930		307,303,890		270,200,000
4 Gross proceeds in reserve funds .............	0		0		0		0
5 Capitalized interest from proceeds .............	0		0		0		0
6 Proceeds in refunding escrows ...............	0		70,459,809		0		0
7 Issuance costs from proceeds ...............	1,206,221		3,629,482		2,303,890		0
8 Credit enhancement from proceeds .............	0		0		0		0
9 Working capital expenditures from proceeds .............	0		0		0		0
10 Capital expenditures from proceeds .............	0		0		240,837,928		0
11 Other spent proceeds .............	71,000,000		394,689,639		25,000,000		270,200,000
12 Other unspent proceeds .............	0		0		39,162,072		0
13 Year of substantial completion .............	2010		2013				2011
	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) 2015

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 ....	0 %		0 %		0 %		0 %
5 Enter the percentage of financed property used in a private business use as a result of unrelated trade or business activity carried on by your organization, another section 501(c)(3) organization, or a state or local government .........
6 Total of lines 4 and 5 .............
7 Does the bond issue meet the private security or payment test? ...		X		X		X		X
8a Has there been a sale or disposition of any of the bond-financed property to a nongovernmental person other than a 501(c)(3) organization since the bonds were issued?.............		X		X		X		X
b If "Yes" to line 8a, enter the percentage of bond-financed property sold or disposed of. ..
c If "Yes" to line 8a, was any remedial action taken pursuant to Regulations sections 1.141-12 and 1.145-2? .............		X		X		X		X
9 Has the organization established written procedures to ensure that all nonqualified bonds of the issue are remediated in accordance with the requirements under Regulations sections 1.141-12 and 1.145-2? ........	X		X		X		X

Part IV

Arbitrage

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
1 Has the issuer filed Form 8038-T, 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? .......
b Exception to rebate? ........
c No rebate due? .........
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 ..........	0		JP Morgan		JP Morgan		Deutche Bank
c Term of hedge .........			792 %		1292 %		1593 %
d Was the hedge superintegrated? ......				X		X		X
e Was the hedge terminated? ........				X		X		X

Schedule K (Form 990) 2015

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 ..........	0		0		0		0
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
See Schedule O

Schedule K (Form 990) 2015

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

2015

Open to Public
Inspection

Name of the organization
Memorial Hermann Health System

Employer identification number
74-1152597

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	Harris County Cultural Facilities Finance Corp	76-0337885	414009EM8	11-30-2010	72,206,221	2010A Refund Issue 3/12/1997		X		X		X
B	Harris County Cultural EDU FAC Fin Corp	76-0337885	414009GR5	03-28-2013	468,778,930	2013A/B Ref Issue 04/08/04		X		X		X
C	Harris County Cultural EDU Fac Fin Corp	76-0337885	414009HL7	06-11-2014	307,303,890	2014 A/B/C/D Building and Structur		X		X		X
D	Harris County Cultural Facilities Fin Corp	76-0337885	414009KF6	12-15-2015	270,200,000	2015 A/B/C refund issue 1/5/2011		X		X		X
	Harris County Cultural Facilities Fin Corp	76-0337885	414009KP4	06-08-2016	151,216,215	2016 A Building and Structures		X		X		X
	Harris County Cultural EDU Facilities Fin Corp	76-0337885	414009KS8	06-08-2016	326,305,000	2016 B/C/D/E build & struct ref 4/		X		X		X

Part II

Proceeds

	A		B		C		D
	1 Amount of bonds retired ..................	16,670,000		0		0		0
2 Amount of bonds legally defeased ..............	0		0		0		0
3 Total proceeds of issue ..................	72,206,221		468,778,930		307,303,890		270,200,000
4 Gross proceeds in reserve funds .............	0		0		0		0
5 Capitalized interest from proceeds .............	0		0		0		0
6 Proceeds in refunding escrows ...............	0		70,459,809		0		0
7 Issuance costs from proceeds ...............	1,206,221		3,629,482		2,303,890		0
8 Credit enhancement from proceeds .............	0		0		0		0
9 Working capital expenditures from proceeds .............	0		0		0		0
10 Capital expenditures from proceeds .............	0		0		240,837,928		0
11 Other spent proceeds .............	71,000,000		394,689,639		25,000,000		270,200,000
12 Other unspent proceeds .............	0		0		39,162,072		0
13 Year of substantial completion .............	2010		2013				2011
	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) 2015

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 ....	0 %		0 %		0 %		0 %
5 Enter the percentage of financed property used in a private business use as a result of unrelated trade or business activity carried on by your organization, another section 501(c)(3) organization, or a state or local government .........
6 Total of lines 4 and 5 .............
7 Does the bond issue meet the private security or payment test? ...		X		X		X		X
8a Has there been a sale or disposition of any of the bond-financed property to a nongovernmental person other than a 501(c)(3) organization since the bonds were issued?.............		X		X		X		X
b If "Yes" to line 8a, enter the percentage of bond-financed property sold or disposed of. ..
c If "Yes" to line 8a, was any remedial action taken pursuant to Regulations sections 1.141-12 and 1.145-2? .............		X		X		X		X
9 Has the organization established written procedures to ensure that all nonqualified bonds of the issue are remediated in accordance with the requirements under Regulations sections 1.141-12 and 1.145-2? ........	X		X		X		X

Part IV

Arbitrage

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
1 Has the issuer filed Form 8038-T, 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? .......
b Exception to rebate? ........
c No rebate due? .........
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 ..........	0		JP Morgan		JP Morgan		Deutche Bank
c Term of hedge .........			792 %		1292 %		1593 %
d Was the hedge superintegrated? ......				X		X		X
e Was the hedge terminated? ........				X		X		X

Schedule K (Form 990) 2015

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 ..........	0		0		0		0
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
See Schedule O

Schedule K (Form 990) 2015

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

2015

Open to Public Inspection

Name of the organization

Memorial Hermann Health System

Employer identification number

74-1152597

Part I

Excess Benefit Transactions (section 501(c)(3), section 501(c)(4), and 501(c)(29) organizations only).
Complete if the organization answered "Yes" on Form 990, Part IV, line 25a or 25b, or Form 990-EZ, Part V, line 40b.

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

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

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

Part II

Loans to and/or From Interested Persons.
Complete if the organization answered "Yes" on Form 990-EZ, Part V, line 38a, or Form 990, Part IV, line 26; or if the organization reported an amount on Form 990, Part X, line 5, 6, or 22

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










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

Part III

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

(a) Name of interested person	(b) Relationship between interested person and the organization	(c) Amount of assistance	(d) Type of assistance	(e) Purpose of assistance

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

Cat. No. 50056A

Schedule L (Form 990 or 990-EZ) 2015

Page 2

Part IV

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

(a) Name of interested person	(b) Relationship between interested person and the organization	(c) Amount of transaction	(d) Description of transaction	(e) Sharing of organization's revenues?
(a) Name of interested person		(c) Amount of transaction	(d) Description of transaction	Yes	No
(1) Megan Alexander	Family Member of Key Emp	35,000	employment		No
(2) David Leard	Family Member of Director	10,132	employment		No
(3) Angela Bell	Family Member of Director	70,723	employment		No
(4) Madison Hester	Family Member of High 5	24,490	employment		No
(5) Casey Hedges	Family Member of Director	18,248	employment		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) 2015

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

2015

Open to Public
Inspection

Name of the organization

Memorial Hermann Health System

Employer identification number

74-1152597

Return Reference	Explanation
990 Part VI Section B Line 12C Corporate Conflict of Interest Policy	Memorial Hermann Health System utilizes conflict of interest surveys and has codified its procedure in a policy. The policy is monitored by our Corporate Compliance Department through annual surveys of board members, corporate officers, management level employees, and other selected employees, physicians and vendors for all of its entities and related affiliates. In addition to responding to the survey, each recipient affirms that they have received a copy of the policy, has read and understood it, has agreed to comply with it, and understands that Memorial Hermann is a charitable organization that must engage in primarily tax-exempt purpose activities. The Corporate Compliance Department, Chief Legal Officer and the Corporate Audit Committee, consisting of independent board members, receive a report of all items disclosed. The Audit Committee Chair reports the existence of any conflicts to the Corporate Board of Directors. Memorial Hermann's conflicts of interest policy requires that Board members excuse themselves from discussions in which they have a conflict of interest. The policy also subjects Board members to disciplinary action if they are found to have violated the policy.
990 Part VI Section B Line 15A & 15B Compensation Determination	The process for determining compensation for the Organization's CEO and disqualified persons is modeled after the requirements in IRC Section 4958 to establish the presumption of reasonable compensation. Compensation was reviewed and approved in advance of being paid by a Compensation Committee of the Board of Memorial Hermann Health System. The Committee is comprised of individuals who have no conflicts of interest. The Compensation Committee engages an independent third-party executive compensation consultant who provides comparable market data from published surveys and/or Form 990s of similar organizations. The compensation for each disqualified person is determined based on the market data. The Compensation Committee conducted a review of the comparability data and documented its discussion and decisions in minutes that are retained with the Organization's other governance materials. Disqualified persons of the organization undergo a review and Compensation Committee approval (as outlined above) on an annual-basis, and such approval is recorded in minutes. The executive compensation philosophy drives the strategy and design of Memorial Hermann's compensation package. The executive compensation philosophy is established and maintained by the Compensation Committee. The philosophy is as follows: Executive compensation should be tied to our long-term and short-term business strategies of each dimension of our business including, but not limited to: Quality & Safety, Service & Satisfaction, Operational Excellence, and Growth & People. Compensation should reflect the competitive marketplace so the Company can attract, retain and motivate talented executives. Compensation should be tied to our individual and business unit performance. Compensation programs and pay levels should be "Reasonable" within the definition of IRC Section 4958. We should balance any potential strategic, financial, operational and reputational risk with our pay-for-performance philosophy. Based on the above philosophy, Memorial Hermann's executive total compensation package includes a mix of fixed compensation and variable compensation. The following components are included in the executive total compensation package: base salary, annual incentive plan, long term incentive plan and deferred compensation plan. In addition to the compensation components listed above, the former CEO and President, Mr. Wolterman, has been provided with a retention agreement. Per the terms of this agreement, he will receive a lump sum payment in July 2016. This lump sum payment is being accrued over the life of the retention agreement (July 2009 to July 2016). The 2015 accrual is included in Column C of Part II on the attached Form 990 Schedule J. If Mr. Wolterman voluntarily leaves prior to July 2016, he does not receive any portion of this lump sum payment. Under certain circumstances (e.g., death or disability), Mr. Wolterman, or his beneficiary, would be entitled to a prorated portion of this lump sum payment.
990 Part XII Line 2C Oversight Review of Financial Statements	Memorial Hermann Health System has independent committees for audits, governance, and compensation which perform their respective functions on a consolidated basis for all corporate entities. The audit committee hires the independent accountants and oversees all audits that are conducted within all affiliated entities for financial information, grants and awards, and qualified plans.
990 Part VI Section A Line 6	Memorial Hermann Health System has individual members.
990 Part VI Section A Line 7A Election of Members	The members have the authority to annually elect board members of the organization and to fill any vacancies on the board whose terms have expired.
990 Part VI Section A Line 7B Decisions of Governing Body	The members have approval authority to approve amendments to, and repeal of the bylaws and certificate of formation, the purchase or sale of all or substantialy all assets of the organization, and the merger or dissolution of the organization.
990 Part VI Section C Line 19 Disclosure of Organizational Documents	The articles of incorporation, corporate bylaws, conflict of interest policy and financial statements of Memorial Hermann Health System and its affiliates are generally not made available to the public. If the inquirer provided a valid reason for desiring a copy of the documents that are related to the business interests of any of the Memorial Hermann Health System corporate entities, we would consider doing so.
990 Part VI Section B Line 11B Review of Form 990	MEMORIAL HERMANN HEALTH SYSTEM PROVIDES A COPY OF THE FORM 990 TO ALL MEMBERS OF THE GOVERNING BODY VIA A WEBSITE SET UP SPECIFICALLY FOR BOARD MEMBERS TO ACCESS VARIOUS BOARD MEMBER DOCUMENTS. THE FORM 990 IS REVIEWED BY MEMORIAL HERMANN FINANCIAL ACCOUNTING STAFF, BY SPECIFIC DEPARTMENTS INVOLVED IN RELATED SECTIONS OF THE RETURN, BY THE MEMORIAL HERMANN CHIEF ACCOUNTING OFFICER, AND BY MEMORIAL HERMANN'S PUBLIC ACCOUNTING FIRM ERNST & YOUNG, PRIOR TO ITS FILING.
990 Part VI Section B Line 13 Whistleblower Policy	MHHS has established communication channels to report problems and concerns including a telephone Helpline. Employee partners are encouraged to report problems or concerns either anonymously or in confidence via the Helpline when they deem appropriate. The Helpline establishes an avenue for employee partners or interested parties to report suspected criminal activity, and illegal or unethical conduct occurring within the organization in the event other resolution channels are ineffective or the caller wishes to remain anonymous. The Corporate Compliance Helpline is administered by an outside service in order to protect the anonymity of callers to the Helpline if they so desire to remain anonymous. All those who are employed in the Helpline operation or contracted organizations administering the Helpline are expected to act with utmost discretion and integrity in assuring that information received is acted upon in a reasonable and proper manner. MHHS has established a strict non-retaliation policy to protect, from retaliation, employee partners and others who report problems and concerns in good faith. There shall be no retaliation against a MHHS employee, independent contractor, vendor, allied health professional or medical staff member for reporting or raising a question regarding MHHS's compliance with a law or regulation. Those reporting suspected non-compliance who wish to remain anonymous may do so if they so choose. All reports of suspected non-compliance will be addressed in a confidential manner. The Corporate Compliance Officer or designee will always strive to maintain confidentiality during the compliance review and investigation process; however there may be a point where the identity of a reporter may need to be revealed where appropriate.
990 Part IV Line 12A & B Audited Financials	The Health System does not have its financial accounts separately audited nor receive audited financial statements. For the consolidated entities of the Memorial Hermann Health System and its affiliates an independent audit is conducted and audited financial statements are prepared according to GAAP by an independent accounting firm, of which the financial accounts of the Health System is a part.
990 Schedule K Part VI Tax Exempt Bonds	2010A Bonds: Refund the Series 1997B Bonds and pay costs of issuance of the Series 2010A Bonds. Renovation, equipment, and construction of elderly care facilities at Southwest & Southeast; renovation and equipment at Greater Heights; 100,000 sq. ft expansion at the Woodlands; prior acquisition of, renovation and equipment for Pasadena; construction in inpatient/outpatient facilities, equipment and elderly care facilities at 1-10 & Eldridge and Highway 290 & FM 1960. 2013A Bonds: Bonds were issued to advance refund a portion of the Series 2004A Bonds and all of the Series 2008B bonds. Reimbursement or payment of routine capital costs incurred in connection with the construction of various improvements to and the acquisition of capital equipment for healthcare facilities of MHHS and Continuing Care and renovation of Memorial Hermann Hospital. Routine capital expenditures include the acquisition of land and additional equipment for existing hospital facilities, including, but not limited to, the upgrade of cardiac catheterization laboratories, renovation of nursing units and operating rooms, and installation and upgrade of CT scanners, MRIs, echocardiography systems and other imaging equipment at existing hospital facilities. The Bonds also financed the expansion of inpatient and outpatient facilities at Memorial Hermann Hospital, including the expansion of operating rooms, women's services, imaging services and the neonatal intensive care unit at that hospital. Renovations and replacements of, additions to and equipment for Hermann including Children's, Southwest including affiliated long-term acute facility, Southeast, Greater Heights, Memorial City, The Woodlands, Katy, MHCC Hospital Spring Shadows Pines, Prevention and Recovery Center, and the initial outpatient/inpatient primary healthcare facilities at SH 288 and FM 518, Pearland, Brazoria County. 2013B Bonds: Issued to refund the Series 2008C bonds and pay costs of issuance of the 2013B Bonds. Previously financed projects: 1) the construction and renovation of Greater Heights, excluding the chapel therein; 2) the construction and renovation of the Woodlands; 3) construction and renovation of inpatient/outpatient facilities at 1-10 & Eldridge and at Highway 290 & FM 1960 including construction and equipping elderly care facilities at such sites; 4) construction and renovation at Southeast and Southwest including construction of elderly care facilities and 544 parking spaces at Southeast; 5) reimbursement/payment of capital equipment for Southwest, Southeast,Greater Heights, The Woodlands, and Facilities in 3) and 4). 2014A Bonds: The proceeds of the Bonds will finance a portion of the cost of various capital projects including the construction, expansion, renovation and replacement of, additions to, and/or the acquisition of sites and capital equipment for healthcare facilities of MHHS located or to be located in or near Houston, Texas, including substantial additions and other improvements to MHHSs Katy and Sugar Land hospitals, a new hospital in Pearland, and master plan improvements to and an expansion of MHHSs Texas Medical Center hospital and to pay costs of issuance for the Series 2014 Bonds. 2014B Bonds: The proceeds of the Bonds will finance a portion of the cost of various capital projects including the construction, expansion, renovation and replacement of, additions to, and/or the acquisition of sites and capital equipment for healthcare facilities of MHHS located or to be located in or near Houston, Texas, including substantial additions and other improvements to MHHSs Katy and Sugar Land hospitals, a new hospital in Pearland, and master plan improvements to and an expansion of MHHSs Texas Medical Center hospital and to pay costs of issuance for the Series 2014 Bonds. 2014C Bonds: The proceeds of the Bonds will finance a portion of the cost of various capital projects including the construction, expansion, renovation and replacement of, additions to, and/or the acquisition of sites and capital equipment for healthcare facilities of MHHS located or to be located in or near Houston, Texas, including substantial additions and other improvements to MHHSs Katy and Sugar Land hospitals, a new hospital in Pearland, and master plan improvements to and an expansion of MHHSs Texas Medical Center hospital and to pay costs of issuance for the Series 2014 Bonds. 2014D Bonds: The proceeds of the Bonds will finance a portion of the cost of various capital projects including the construction, expansion, renovation and replacement of, additions to, and/or the acquisition of sites and capital equipment for healthcare facilities of MHHS located or to be located in or near Houston, Texas, including substantial additions and other improvements to MHHSs Katy and Sugar Land hospitals, a new hospital in Pearland, and master plan improvements to and an expansion of MHHSs Texas Medical Center hospital and to pay costs of issuance for the Series 2014 Bonds. 2015A Bonds: Issued to refund the Series 2010B Bonds which were originally issued to redeem all of the Series 2001B Bonds and pay costs of issuance of the 2010B Bonds. The original proceeds of the 2001B bonds funded renovations of, additions (including elderly care facilities) to and equipment for acute care hospitals, rehabilitation hospital & Spring Shadows Glen and the proposed inpatient/outpatient facilities at Highway 290 & FM 1960. 2015B Bonds: Issued to refund the Series 2010B Bonds which were originally issued to redeem all of the Series 2001B Bonds and pay costs of issuance of the 2010B Bonds. The original proceeds of the 2001B bonds funded renovations of, additions (including elderly care facilities) to and equipment for acute care hospitals, rehabilitation hospital & Spring Shadows Glen and the proposed inpatient/outpatient facilities at Highway 290 & FM 1960. 2015C Bonds: Issued to refund the Series 2008A-1 Bonds which were issued to refund the maturities of the Series 1998 Bonds and pay costs of issuance of the Series 2008A Bonds. Expansion, renovation, and equipment for Southwest, Southeast,Greater Heights, The Woodlands, Hermann, Pasadena, Memorial City, Rehabilitation Hospital, Spring Shadows Glen, Spring Shadows Pines; Construction of inpatient/outpatient facilities, equipment and elderly care facilities at 1-10 & Eldridge Road and Highway 290 & FM 1960; Construction of proposed preventative health care facility and equipment at 7701-7737 Southwest Freeway; Construction and equipment for elderly care facilities at Southwest and Southeast. 2016A Bonds: The proceeds of the Bonds will finance a portion of the cost of various capital projects including the construction, expansion, renovation and replacement of, additions to, and/or the acquisition of sites and capital equipment for healthcare facilities of MHHS located or to be located in or near Houston, Texas, including substantial additions and other improvements to MHHSs Sugar Land and Northeast hospitals, a new hospital in Cypress, and master plan improvements to and an expansion of MHHSs Texas Medical Center hospital and to pay costs of issuance for the Series 2016 Bonds. 2016B Bonds: The proceeds of the Bonds will finance a portion of the cost of various capital projects including the construction, expansion, renovation and replacement of, additions to, and/or the acquisition of sites and capital equipment for healthcare facilities of MHHS located or to be located in or near Houston, Texas, including substantial additions and other improvements to MHHSs Sugar Land and Northeast hospitals, a new hospital in Cypress, and master plan improvements to and an expansion of MHHSs Texas Medical Center hospital and to pay costs of issuance for the Series 2016 Bonds. 2016C Bonds: Issued to refund the Series 2013C Bonds which were originally issued to redeem all of the Series 2008D-2 Bonds and pay costs of issuance of the 2013D Bonds. Original proceeds issued for renovations of, additions (including elderly care facilities) to and equipment for inpatient/outpatient facilities at Highway 290 & FM 1960, formerly owned and operated by Pasadena Hospital, inpatient/outpatient facilities at 1-10 & Eldridge Road, Spring Shadows Pines and the Wellness Center. 2016D Bonds: Issued to refund Series 2013D which were originally issued to refund Series 2008D-2 Bonds and pay costs of issuance for the Series 2013D Bonds. Original proceeds issued for renovations of, additions (including elderly care facilities) to and equipment for inpatient/outpatient facilities at Highway 290 & FM 1960, formerly owned and operated by Pasadena Hospital, inpatient/outpatient facilities at 1-10 & Eldridge Road, Spring Shadows Pines and the Wellness Center. 2016E Bonds: Issued to restructure Series 2008A-2 which were originally issued to refund the maturities of the Series 1998 Bonds and pay costs of issuance of the Series 2008A Bonds. Expansion, renovation, and equipment for Southwest, Southeast, Greater Heights,
990 Part XI Line 9 Changes in Net Assets or Fund Balance	RECLASS OF FUND BALANCES OF AFFILIATED COMPANIES (83,468,408) CHANGE IN UNFUNDED PENSION LOSSES (103,735,000) RECLASS OF CONTRIBUTIONS 58,534,000 CHANGE IN NONCONTROLLING INTERESTS 108,460,000 TOTAL CHANGES IN FUND BALANCES (20,209,408)
990 Part VII Directors Board Medical Plan	Our directors can purchase medical coverage, for themselves and their eligible family members, through our networks at 100% of the premium cost.

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

Cat. No. 51056K

Schedule O (Form 990 or 990-EZ) 2015

Additional Data

Software ID:
Software Version:

1	Briefly describe the organization’s mission or most significant activities: COMMUNITY OWNED HEALTH SYSTEM DEDICATED TO PROVIDING THE HIGHEST QUALITY HEALTH SERVICES IN ORDER TO IMPROVE THE HEALTH OF THE PEOPLE IN SOUTHEAST TEXAS, WITH SPIRITUAL VALUES
2	Check this box
3	Number of voting members of the governing body (Part VI, line 1a) ........	3	24
4	Number of independent voting members of the governing body (Part VI, line 1b) .....	4	22
5	Total number of individuals employed in calendar year 2015 (Part V, line 2a) ......	5	26,657
6	Total number of volunteers (estimate if necessary) .............	6	3,069
7a	Total unrelated business revenue from Part VIII, column (C), line 12 ........	7a	12,324,687
b	Net unrelated business taxable income from Form 990-T, line 34 .........	7b	-2,069,624

		Prior Year	Current Year
8	Contributions and grants (Part VIII, line 1h) .........	21,197,100	22,093,219
9	Program service revenue (Part VIII, line 2g) .........	3,862,239,239	4,205,367,490
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	-4,047,151	-107,173,812
11	Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)	146,325,177	161,779,942
12	Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)	4,025,714,365	4,282,066,839
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...	1,166,953	1,697,235
14	Benefits paid to or for members (Part IX, column (A), line 4).....	0	0
15	Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10)	1,686,721,432	1,932,228,489
16a	Professional fundraising fees (Part IX, column (A), line 11e) .....	0	0
b	Total fundraising expenses (Part IX, column (D), line 25) 0
17	Other expenses (Part IX, column (A), lines 11a–11d, 11f–24e)....	1,958,999,150	2,159,443,254
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	3,646,887,535	4,093,368,978
19	Revenue less expenses. Subtract line 18 from line 12.......	378,826,830	188,697,861
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16).............	6,011,159,857	6,587,145,139
21	Total liabilities (Part X, line 26).............	2,997,472,936	3,404,969,765
22	Net assets or fund balances. Subtract line 21 from line 20.....	3,013,686,921	3,182,175,374

Sign Here

	Signature of officer	Date

	Type or print name and title


4a	(Code: ) (Expenses $ 3,495,249,925 including grants of $ 1,697,235 ) (Revenue $ 4,338,507,064 )
	MEMORIAL HERMANN IS A NON-PROFIT COMMUNITY-OWNED, HEALTHCARE SYSTEM WITH SPIRITUAL VALUES, DEDICATED TO PROVIDING THE HIGHEST QUALITY HEALTHCARE SERVICES IN ORDER TO IMPROVE THE HEALTH OF THE PEOPLE OF SOUTHEAST TEXAS. ANNUAL DELIVERIES: 25,146 ANNUAL INPATIENT ADMISSIONS: 158,241 ANNUAL INPATIENT DAYS: 879,498 ANNUAL EMERGENCY VISITS: 595,611 ANNUAL OUTPATIENT SURGERIES: 106,007 ANNUAL DIAGNOSTIC AND THERAPY: 1,348,920

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 expenses3,495,249,925

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)...........	25,757,448	3,384	5,293,854

1a	Federated campaigns..		1a
b	Membership dues..		1b
c	Fundraising events..		1c
d	Related organizations		1d	6,278,462
e	Government grants (contributions)		1e	15,814,757

f	All other contributions, gifts, grants, and similar amounts not included above		1f

g	Noncash contributions included in lines 1a-1f:$
h Total.Add lines 1a-1f.......		22,093,219

			Business Code
2a	NET PATIENT SERVICE REVENUE	900099	4,205,367,490	4,205,367,490
b
c
d
e
f	All other program service revenue.
g Total.Add lines 2a–2f.....			4,205,367,490

3 Investment income (including dividends, interest, and othersimilar amounts) ..........			-107,173,812			-107,173,812
4 Income from investment of tax-exempt bond proceeds			0
5 Royalties...........			155,137			155,137
		(ii) Personal	(i) Real
6a	Gross rents		70,848,487
b	Less: rental expenses		66,114,069
c	Rental income or (loss)	0	4,734,418
d	Net rental income or (loss)......			4,734,418			4,734,418
		(ii) Other	(i) Securities
7a	Gross amount from sales of assets other than inventory
b	Less: cost or other basis and sales expenses
c	Gain or (loss)
d	Net gain or (loss).....			0
8a	Gross income from fundraising events (not including $ of contributions reported on line 1c). See Part IV, line 18 ....
	a
b	Less: direct expenses ...b
c	Net income or (loss) from fundraising events..			0
9a	Gross income from gaming activities. See Part IV, line 19 ...
	a
b	Less: direct expenses ...b
c	Net income or (loss) from gaming activities..			0
10a	Gross sales of inventory, less returns and allowances ..
	a
b	Less: cost of goods sold ..b
c	Net income or (loss) from sales of inventory..			1,377,017			1,377,017
Business Code			Miscellaneous Revenue
11a	LAUNDRY SERVICES		812300	7,623,513		7,623,513
b	MANAGEMENT FEES		621500	4,396,064	1,276,743	3,119,321
c	SECURITY SERVICE		541900	2,317,246		2,317,246
d	All other revenue ....			141,176,547	131,862,831	-735,393	10,049,109
e	Total. Add lines 11a–11d ......			155,513,370
12	Total revenue. See Instructions......			4,282,066,839	4,338,507,064	12,324,687	-90,858,131

1	Grants and other assistance to domestic organizations and domestic governments. See Part IV, line 21	1,697,235	1,697,235
2	Grants and other assistance to individuals in the United States. See Part IV, line 22	0
3	Grants and other assistance to governments, organizations, and individuals outside the United States. See Part IV, lines 15 and 16	0
4	Benefits paid to or for members	0
5	Compensation of current officers, directors, trustees, and key employees ....	9,078,827	1,309,915	7,768,912
6	Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....	0
7	Other salaries and wages	1,558,618,746	1,295,861,660	262,757,086	0
8	Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) ....	82,749,496	61,805,843	20,943,653	0
9	Other employee benefits .......	168,810,489	138,219,971	30,590,518	0
10	Payroll taxes ...........	112,970,931	91,455,015	21,515,916	0
11	Fees for services (non-employees):
a	Management ......	0
b	Legal .........	7,218,819	962,994	6,255,825	0
c	Accounting ...........	0
d	Lobbying ...........	0
e	Professional fundraising services. See Part IV, line 17	0
f	Investment management fees ......	0
g	Other (If line 11g amount exceeds 10% of line 25, column (A) amount, list line 11g expenses on Schedule O)	0
12	Advertising and promotion ....	15,817,970	10,152,678	5,665,292	0
13	Office expenses .......	69,884,464	67,806,212	2,078,252	0
14	Information technology ......	0
15	Royalties ..	0
16	Occupancy ...........	125,008,713	111,562,682	13,446,031	0
17	Travel ............	5,617,297	3,491,913	2,125,384	0
18	Payments of travel or entertainment expenses for any federal, state, or local public officials .	0
19	Conferences, conventions, and meetings ....	3,292,861	2,259,148	1,033,713	0
20	Interest ...........	76,341,233	53,092,882	23,248,351	0
21	Payments to affiliates .......	0
22	Depreciation, depletion, and amortization ..	219,163,600	181,098,467	38,065,133	0
23	Insurance ...	14,592,438	6,995,030	7,597,408	0
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	PROFESSIONAL & CONTRACT FEES	727,660,637	628,692,865	98,967,772	0
b	MEDICAL SUPPLIES	679,896,781	672,723,484	7,173,297	0
c	EQUIPMENT RENTAL & MAINTENANCE	168,420,646	138,559,859	29,860,787	0
d	PHYSICIAN INTERGRATION	10,349,822	1,029,980	9,319,842	0
e	All other expenses	36,177,973	26,472,092	9,705,881
25	Total functional expenses. Add lines 1 through 24e	4,093,368,978	3,495,249,925	598,119,053	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).

1	Cash–non-interest-bearing ........			269,419,790	1	212,543,160
2	Savings and temporary cash investments .........			51,390,133	2	59,467,243
3	Pledges and grants receivable, net ......			0	3	0
4	Accounts receivable, net .............			608,871,181	4	698,143,058
5	Loans and other receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of Schedule L
				0	5	0
6	Loans and other receivables from other disqualified persons (as defined under section 4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employers and sponsoring organizations of section 501(c)(9) voluntary employees' beneficiary organizations (see instructions) Complete Part II of Schedule L
				0	6	0
7	Notes and loans receivable, net ....			0	7	0
8	Inventories for sale or use ........			44,906,326	8	53,581,577
9	Prepaid expenses and deferred charges ......			25,089,616	9	28,873,504
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	5,658,957,310
b	Less: accumulated depreciation	10b	2,989,405,606	2,317,656,089	10c	2,669,551,704
11	Investments—publicly traded securities .			0	11	0
12	Investments—other securities. See Part IV, line 11 .....			2,104,269,000	12	1,967,289,000
13	Investments—program-related. See Part IV, line 11 ..			0	13	0
14	Intangible assets ...............			0	14	0
15	Other assets. See Part IV, line 11 ...........			589,557,722	15	897,695,893
16	Total assets. Add lines 1 through 15 (must equal line 34)...			6,011,159,857	16	6,587,145,139

17	Accounts payable and accrued expenses .....	581,300,177	17	571,348,012
18	Grants payable ...	0	18	0
19	Deferred revenue .........	0	19	0
20	Tax-exempt bond liabilities .........	1,246,122,583	20	1,499,664,281
21	Escrow or custodial account liability. Complete Part IV of Schedule D	0	21	0
22	Loans and other payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..	0	22	0
23	Secured mortgages and notes payable to unrelated third parties ..	0	23	0
24	Unsecured notes and loans payable to unrelated third parties ..	0	24	0
25	Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D	1,170,050,176	25	1,333,957,472
26	Total liabilities. Add lines 17 through 25..	2,997,472,936	26	3,404,969,765

	Organizations that follow SFAS 117 (ASC 958), check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets	3,000,972,424	27	3,168,991,249
28	Temporarily restricted net assets ...........	12,714,497	28	13,184,125
29	Permanently restricted net assets	0	29	0
	Organizations that do not follow SFAS 117 (ASC 958), check here and complete lines 30 through 34.
30	Capital stock or trust principal, or current funds .....		30
31	Paid-in or capital surplus, or land, building or equipment fund ...		31
32	Retained earnings, endowment, accumulated income, or other funds		32
33	Total net assets or fund balances ...........	3,013,686,921	33	3,182,175,374
34	Total liabilities and net assets/fund balances ........	6,011,159,857	34	6,587,145,139

1	Was the organization a U.S. transferor of property to a foreign corporation during the tax year? If "Yes,"the organization may be required to file Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation (see Instructions for Form 926). . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	Yes	No
2	Did the organization have an interest in a foreign trust during the tax year? If "Yes," the organization may be required to separately file Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts, and/or Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner (see Instructions for Forms 3520 and 3520-A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	Yes	No
3	Did the organization have an ownership interest in a foreign corporation during the tax year? If "Yes," the organization may be required to file Form 5471, Information Return of U.S. Persons with Respect to Certain Foreign Corporations. (see Instructions for Form 5471). . . . . . . . . . . . . . . . . . . . . . . . . . . .	Yes	No
4	Was the organization a direct or indirect shareholder of a passive foreign investment company or a qualified electing fund during the tax year? If “Yes,” the organization may be required to file Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund. (see Instructions for Form 8621) .	Yes	No
5	Did the organization have an ownership interest in a foreign partnership during the tax year? If "Yes," the organization may be required to file Form 8865, Return of U.S. Persons with Respect to Certain Foreign Partnerships. (see Instructions for Form 8865). . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	Yes	No
6	Did the organization have any operations in or related to any boycotting countries during the tax year? If "Yes," the organization may be required to separately file Form 5713, International Boycott Report (see Instructions for Form 5713).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	Yes	No

(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)Memorial Hermann Community Benefits 909 Frostwood Suite 2100 Houston,TX77024 68-0511504	Healthcare	TX	501 (c)3	9	MHHS	Yes
(2)Memorial Hermann Medical Group 909 Frostwood Suite 2100 Houston,TX77024 20-4923281	Healthcare	TX	501 (c)3	3	MHHS	Yes
(3)MHS Physicians of Texas 909 Frostwood Suite 2100 Houston,TX77024 76-0385980	Healthcare	TX	501 (c)3	3	MHHS	Yes
(4)Memorial Hermann Foundation 909 Frostwood Suite 2100 Houston,TX77024 74-1653640	Fundraising	TX	501 (c)3	11a I	MHHS	Yes
(5)Memorial Hermann Information Exchange 909 Frostwood Suite 2100 Houston,TX77024 02-0684202	Healthcare	TX	501 (c)3	3	MHHS	Yes
(6)Memorial Hermann Accountable Care Org 909 Frostwood Suite 2100 Houston,TX77024 80-0778181	Healthcare	TX	501 (C)3	3	MHHS	Yes

(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) The Woodlands POB III LP 909 Frostwood Suite 2100 Houston,TX77024 20-2184543	Manages Med B	TX	na	Related or Exempt	14,413,488	4,633,491		No	0		No	88.340 %
(2) MHUSP Surgery Ctr III LLP 15305 Dallas Parkway Suite 1600 L Addison,TX75001 20-0707543	Surgery Center	TX	na	Related or Exempt	13,554,036	8,300,773		No	0		No	50.100 %
(3) Memorial Hermann Surgery Center Katy LLP 15305 Dallas Parkway Suite 1600 L Addison,TX75001 20-3360737	Surgery Center	TX	na	Related or Exempt	857,083	601,288		No	0		No	21.750 %
(4) MH Katy Rehab Hospital LLC 909 Frostwood Suite 2100 Houston,TX77024 26-3896057	Medical Service	TX	NA	Related or Exempt	1,629,100	6,364,096		No	0		No	78.997 %
(5) MHUSP Surgery Centers IV LLP 15305 Dallas Pkwy Ste 1600 LB 28 Addison,TX75001 20-8575266	Surgery Centers	TX	na	Related or Exempt	15,998,641	25,088,140		No	0		No	50.100 %

(a) Name of related organization	(b) Transaction type (a-s)	(c) Amount involved	(d) Method of determining amount involved
(1) Memorial Hermann Foundation	C	6,278,462	FMV
(2) MHS Physicians of Texas	R	28,726,938	FMV
(3) Memorial Hermann Medical Group	R	58,693,009	FMV

(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