4A (Expenses $ 72993114 including grants of $ 0) (Revenue $ 68447667)
EXPENSES INCURRED IN PROVIDING MEDICALLY NECESSARY INPATIENT MEDICAL SERVICES (EXCLUDES SURGICAL CASES AND MATERNAL CHILD HEALTH), TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. DURING 2021, THE ORGANIZATION HAD 6,480 DISCHARGES FOR A TOTAL OF 31,778 PATIENT DAYS. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT.

4B (Expenses $ 26005617 including grants of $ 0) (Revenue $ 36972739)
EXPENSES INCURRED IN PROVIDING MEDICALLY NECESSARY SAME DAY SURGERY SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. DURING 2021, THE ORGANIZATION TREATED 3,686 SAME DAY SURGERY CASES. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT.

4C (Expenses $ 7023320 including grants of $ 0) (Revenue $ 10102132)
EXPENSES INCURRED IN PROVIDING MEDICALLY NECESSARY MATERNAL AND PEDIATRIC INPATIENT SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. DURING 2021, THE ORGANIZATION HAD 1,800 DISCHARGES FOR A TOTAL OF 4,739 PATIENT DAYS. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT.

SCHEDULE H, PART V, SECTION B, QUESTION 3I
"IN RESPONSE TO SHORE MEDICAL CENTER'S 2019 COMMUNITY HEALTH NEEDS ASSESSMENT (""CHNA""), THE ORGANIZATION DEVELOPED AND ADOPTED AN IMPLEMENTATION PLAN IN DECEMBER 2019, WHICH INCLUDES 2019, TO ADDRESS THE FOLLOWING HEALTH RISK FACTORS AND DISEASES IDENTIFIED AS HAVING THE GREATEST LEVEL OF PRIORITIZATION FOR THE COMMUNITY WE SERVE. THOSE AREAS ARE: - OBESITY; - HEART DISEASE; - CANCER; - DIABETES; AND - OPIOIDS. BELOW PLEASE FIND A DESCRIPTION OF THE ACTIONS TAKEN TO ADDRESS THE SIGNIFICANT HEALTH NEEDS IDENTIFIED IN THE ORGANIZATION'S CHNA. ADDITIONALLY, DESCRIBED BELOW IS THE IMPACT OF ALL OF THOSE ACTIONS TAKEN. OBESITY & HEART DISEASE ----------------------- SCREENING & EDUCATION: SHORE PARTICIPATED IN SEVERAL MAJOR HEALTH SCREENING EVENTS DURING THE TIME FRAME, INCLUDING THE ANNUAL BAYFEST HEALTH FAIR AND THE JCC SENIOR EXPO, WHICH EACH RESULTED IN DIRECT EDUCATION AND SCREENING OF APPROXIMATELY 500 PEOPLE. SCREENINGS INCLUDE CARDIAC RISK ASSESSMENTS, STROKE RISK ASSESSMENTS, SLEEP DISORDER ASSESSMENTS, BALANCE DISORDER ASSESSMENTS, CANCER RISK FACTOR EDUCATION, EMERGENCY MEDICINE AND FIRST AID, GLUCOSE AND CHOLESTEROL TESTING, WITH EDUCATION FROM A NURSE TO HELP THOSE WHO EXHIBIT HIGH NUMBERS REDUCE THEIR RISK FACTORS THROUGH DIET AND EXERCISE AND RECOMMENDED FOLLOW UP WITH A PHYSICIAN. EXAMPLES OF OTHER COMMUNITY EFFORTS TO IMPACT THESE HEALTH RISKS INCLUDE: - SENIOR SOCIALS: SENIOR SOCIALS ARE DESIGNED TO HELP SENIORS CONNECT WITH OTHERS WHILE LEARNING ABOUT A WIDE ARRAY OF HEALTH AND WELLNESS TOPICS. THE MONTHLY ONE-HOUR PROGRAMS OFTEN TOUCH ON CHRONIC DISEASE MANAGEMENT, HEALTH SCREENINGS, EXERCISE AND FITNESS, AND NUTRITION. - SPEAKERS BUREAU: SHORE HAS HAD A LONG HISTORY OF MAINTAINING AN ACTIVE SPEAKERS BUREAU, WITH EXPERTS AVAILABLE TO PRESENT AT LOCAL ORGANIZATIONS ON A WIDE ARRAY OF HEALTH AND WELLNESS TOPICS. WE RESPOND ENTHUSIASTICALLY TO ALL REQUESTS AND DO EVERYTHING POSSIBLE TO MEET THE NEEDS OF THE AUDIENCE. - SPLAC TOOL: THE SPLAC TOOL IS A SYSTEMATIC TOOL INTRODUCED IN 2014 AND DEVELOPED BY A HOSPITAL COMMITTEE TO LOWER READMISSION RATES IN THE HOSPITAL. THE PURPOSE IS TO RATE PATIENTS ON THEIR LIKELINESS ON BEING READMITTED. THE HIGHER THE TOTAL THE MORE LIKELY TO BE READMITTED. BY IDENTIFYING HIGH RISK PATIENTS THEN THIS IS COMMUNICATED IN A SIMPLE TO UNDERSTAND WAY TO THEIR PRIMARY CARE PHYSICIAN, REHAB FACILITY, ETC. THE GOAL IS TO PUT INTERVENTIONS IN PLACE TO KEEP THE PATIENT OUT OF THE HOSPITAL. THIS HAS DECREASED HOSPITAL READMISSION RATES, WHICH INDICATES THAT OUR EFFORTS ARE SUCCESSFUL. CANCER ------ SHORE MEDICAL CENTER HAS A DEDICATED CANCER CENTER. THE CANCER CENTER WORKS ON A VARIETY OF PROJECTS THAT FOCUS ON COMMUNITY OUTREACH. THIS IS DONE THROUGH OUR CANCER EDUCATION AND EARLY DETECTION (""CEED"") PROGRAM, REGIONAL COALITION (CAPE ATLANTIC COALITION FOR HEALTH) AND COMMISSION ON CANCER PROGRAMS. WE OFFER A RANGE OF SPEAKERS ON SHORE MEDICAL CENTER'S SPEAKERS BUREAU. PARTICIPATION IN OVER 115 EVENTS HAVE OCCURRED REACHING OVER 3,800 PEOPLE ON VARIOUS CANCER AND HEALTH/WELLNESS TOPICS. THE CANCER CENTER PROVIDES GET YOUR SKINNY ON! EXAMPLES OF OTHER COMMUNITY EFFORTS TO IMPACT THESE HEALTH RISKS INCLUDE: - CEED PROGRAM: THE CEED PROGRAM PROVIDES FREE SCREENING FOR BREAST, CERVICAL, COLORECTAL, AND/OR PROSTATE CANCER IS AVAILABLE FOR UNINSURED and UNDERINSURED LOW INCOME PATIENTS. MORE THAN 1,200 SCREENINGS OCCURRED. - CHOOSE YOUR COVER FREE SKIN CANCER SCREENING EVENTS: 5 EVENTS OCCURRED SCREENING 174 PEOPLE. - BREAST EDUCATIONAL PROGRAMS: MULTIPLE WORKSHOPS FOCUSED ON BREAST HEALTH INFORMATION SUCH AS SELF EXAMS, SCREENING GUIDELINES, RISK FACTORS FOR BREAST CANCER, AND SIGNS AND SYMPTOMS OF BREAST CANCER. NINETEEN PROGRAMS WERE HELD."

SCHEDULE H, PART V, SECTION B, QUESTION 5
IN THE CHNA THE ORGANIZATION TOOK INTO ACCOUNT INPUT FROM PERSONS WHO REPRESENT THE BROAD INTERESTS OF THE COMMUNITY SERVICED BY THE HOSPITAL FACILITY. SHORE MEDICAL CENTER COMPLETED AN ONLINE COMMUNITY HEALTH NEEDS ASSESSMENT SURVEY IN AN EFFORT TO GAIN INPUT FROM THE COMMUNITY ON HEALTH ISSUES OF CONCERN. THE SURVEY QUESTIONS WERE DEVELOPED IN A TEAM APPROACH BY BRAINSTORMING QUESTIONS AND EXAMINING SEVERAL SAMPLE SURVEYS. THE QUESTIONS WERE ADJUSTED BY STOCKTON UNIVERSITY TO PUT THE QUESTIONS IN PROPER FORMAT. THE SURVEY WAS DISPERSED THROUGH SHORE MEDICAL CENTER EMAIL BLASTS, LINKED TO THE SHORE MEDICAL CENTER'S WEBSITE AND AVAILABLE IN PHYSICIAN OFFICES. APPROXIMATELY 220 PEOPLE COMPLETED THE SURVEY. THIS GROUP WAS PREDOMINATELY CAUCASIAN (89.7%), FEMALE (77.1%) AND EMPLOYED FULL TIME OR RETIRED. FIFTY-TWO PERCENT HAD A COLLEGE EDUCATION AND ONLY 1% DID NOT HAVE HEALTH INSURANCE. INSURANCE COVERAGE WAS PREDOMINATELY COMMERCIAL COVERAGE (51.4%) AND MEDICARE (36.4%) AND A MAJORITY OF THE PEOPLE CONSIDERED THEMSELVES IN GOOD HEALTH OR BETTER. ADDITIONALLY, SHORE MEDICAL CENTER COMPLETED KEY REPRESENTATIVE INTERVIEWS. A REPRESENTATIVE FROM ATLANTIC COUNTY AND CAPE MAY COUNTY WERE IDENTIFIED, AS WELL AS A PUBLIC HEALTH REPRESENTATIVE FROM THE LOCAL UNIVERSITY. THE QUALITATIVE DATA WAS TALLIED AND PUT TOGETHER TO FORM A PICTURE OF THE COMMUNITY. SHORE MEDICAL CENTER ALSO FORMED A CHNA INTERNAL COMMITTEE CONSISTING OF THE FOLLOWING INDIVIDUALS/GROUPS IN ORDER TO ENSURE THAT THE HOSPITAL'S OUTREACH EFFORTS TRULY REFLECT THE CHANGING HEALTH NEEDS OF THE COMMUNITY THAT IT SERVES. - ALAN BEATTY, MBA, VICE PRESIDENT OF HUMAN RESOURCES - FREDERICK CANTZ, CHIEF COMPLIANCE OFFICER - JOSEPH JOHNSTON, MBA, CMPE, DIRECTOR OF ONCOLOGY SERVICES - BRIAN CAHILL, DIRECTOR OF MARKETING - ANGELA A. BAILEY, MSW, LSW, MANAGER OF CANCER COMMUNITY OUTREACH - SHORE MEDICAL CENTER, CANCER COMMITTEE SUBCOMMITTEE AND LEADERSHIP

SCHEDULE H, PART V, SECTION B, QUESTION 7A
"THE ORGANIZATION IS AN AFFILIATE WITHIN SHORE MEMORIAL HEALTH SYSTEM AND AFFILIATES; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM (""SYSTEM""). DUE TO CHARACTER LIMITATIONS, THE WEBSITE LISTED IN SCHEDULE H, PART V, SECTION B, QUESTION 7A, IS THE HOME PAGE FOR THE SYSTEM. THE ORGANIZATION'S CHNA CAN BE ACCESSED AT THE FOLLOWING PAGE INCLUDED IN THE SYSTEM'S WEBSITE: HTTPS://SHOREMEDICALCENTER.ORG/WELLYES/COMMUNITY_NEEDS_ASSESSMENT"

SCHEDULE H, PART V, SECTION B, QUESTION 10
"THE ORGANIZATION IS AN AFFILIATE WITHIN SHORE MEMORIAL HEALTH SYSTEM AND AFFILIATES; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM (""SYSTEM""). DUE TO CHARACTER LIMITATIONS, THE WEBSITE LISTED IN SCHEDULE H, PART V, SECTION B, QUESTION 10, IS THE HOME PAGE FOR THE SYSTEM. THE ORGANIZATION'S IMPLEMENTATION STRATEGY CAN BE ACCESSED AT THE FOLLOWING PAGE INCLUDED IN THE SYSTEM'S WEBSITE: HTTPS://SHOREMEDICALCENTER.ORG/WELLYES/COMMUNITY_NEEDS_ASSESSMENT"

SCHEDULE H, PART V, SECTION B, QUESTION 11
"THE ORGANIZATION'S IMPLEMENTATION STRATEGY WAS ADOPTED AND POSTED ON THE HOSPITAL'S WEBSITE ON DECEMBER 2, 2019. THIS IMPLEMENTATION STRATEGY IDENTIFIES THE MEANS BY WHICH SHORE MEDICAL CENTER PLANS TO ADDRESS COMMUNITY HEALTH NEEDS DURING 2020 THROUGH 2022. BEYOND THE SERVICES AND PROGRAMS DETAILED IN ITS IMPLEMENTATION STRATEGY, SHORE HAS AND CONTINUES TO PROVIDE A FULL-RANGE OF SERVICES AND PROGRAMS TO OUR COMMUNITY. SHORE MEDICAL CENTER'S COMMITMENT TO ITS COMMUNITY, PATIENTS AND THEIR FAMILY MEMBERS RUNS PARALLEL TO ITS NOT-FOR-PROFIT MISSION. THE FOLLOWING HEALTH ISSUES WERE IDENTIFIED AS PRIORITY HEALTH NEEDS: OBESITY, HEART DISEASE, CANCER, DIABETES AND OPIOID ISSUES. PROJECTS WERE DEVELOPED TO SPECIFICALLY ADDRESS EACH OF THE IDENTIFIED HEALTH NEEDS OVER THE COURSE OF THE IMPLEMENTATION PERIOD. THIS STRATEGY INCLUDES PROVIDING PRIORITY ATTENTION AND PLANS TO ADDRESS THESE KEY HEALTH ISSUES THROUGH BETTER EDUCATION AND IMPLEMENTATION OF PROGRAMS DESIGNED TO ADDRESS THE NEEDS OF OUR COMMUNITY. THROUGH THIS STRATEGY, SHORE HOPES TO IMPACT THE FOLLOWING: - CHRONIC DISEASE REDUCTION - DEATH RATE FROM HEART DISEASE DECREASE - DEATH RATE FROM CANCER DECREASE - DEATH RATE FROM DIABETES DECREASE - INCREASE ACCESS TO OPIOID ADDICTION TREATMENT BELOW IS A SUMMARY OF HOW THE ORGANIZATION PLANS TO ADDRESS THE IDENTIFIED HEALTH NEEDS: OBESITY ------- POOR HEALTH STATUS CAN RESULT WHEN MEMBERS OF THE COMMUNITY ARE IMPACTED BY MAJOR RISK FACTORS. ADDRESSING THESE MORE COMMON ""ROOT"" CAUSES OF POOR COMMUNITY HEALTH CAN SERVE TO IMPROVE THE COMMUNITY'S QUALITY OF LIFE, REDUCE MORTALITY AND MORBIDITY AND PREVENT FUTURE DEVELOPMENT OF DISEASE. OBESITY IS LINKED TO CHRONIC DISEASE. DUE TO THE HIGH LEVEL OF OBESITY AND CHRONIC DISEASE IN THE COMMUNITY, STRATEGIES TO REDUCE OBESITY ARE A FOCUS. STRATEGY 1: SUPPORT THE COMMUNITY FOODBANK OF NEW JERSEY (LOCAL CHAPTER) WITH A VARIETY OF ACTIVITIES WITHIN THE HOSPITAL SUCH AS FOOD DRIVES, AS WELL AS SUPPORTING THE LOCAL MOBILE FOODBANK THROUGH EDUCATION AND AID. STRATEGY 2: EDUCATE PHYSICIANS IN THE COMMUNITY ABOUT TOOLS FOR PRIMARY PREVENTION OF DISEASE SUCH AS UTILIZING THE ELECTRONIC HEALTH RECORD OR DEVELOPING SYSTEMATIC ADJUSTMENTS WITHIN THEIR PRACTICE TO PROMOTE HEALTH. CHRONIC DISEASE (HEART DISEASE, CANCER & DIABETES) ------------------------------------------------- COMMUNITY MEMBERS SUFFER FROM AND HAVE CONCERNS ABOUT HEART DISEASE, CANCER AND DIABETES. DEVELOPING AND WORKING ON THESE CHRONIC DISEASES SPECIFICALLY CAN IMPROVE HEALTH OUTCOMES FOR PEOPLE WITH DISEASE. THE FOLLOWING STRATEGIES TARGET THESE AREAS DIRECTLY. STRATEGY 3: EXPANSION OF CARDIOVASCULAR SERVICES BY PARTNERING WITH A TERTIARY ORGANIZATION WITH A STRONG CARDIOLOGY PROGRAM. STRATEGY 4: IMPROVE CLINICAL TRIAL ACCESS FOR COMMUNITY CANCER PATIENTS THROUGH NCI NATIONAL CLINICAL TRIALS NETWORK MEMBERSHIP. STRATEGY 5: PARTNER WITH A DIABETES PREVENTION PROGRAM FOR HIGH RISK COMMUNITY MEMBERS. IMPROVE THE CARE TRANSITION BETWEEN INPATIENT TO OUTPATIENT TO ENSURE PROPER DIABETES EDUCATION, SELF-MANAGEMENT, RESOURCES, AND TRAINING. WELL BEING ---------- SHORE MEDICAL CENTER HAS A STRONG TRADITION OF MEETING COMMUNITY HEALTH NEEDS THROUGH ITS ONGOING COMMUNITY BENEFIT PROGRAMS. SHORE WILL CONTINUE THIS COMMITMENT THROUGH THE STRATEGY BELOW. STRATEGY 6: PROVIDE PROGRAMS SUCH AS OUR MONTHLY ""WELLNESS TO WELL BEINGOTHER EDUCATIONAL WORKSHOPS TO THE PUBLIC. THIS INCLUDES THE SHORE MEDICAL CENTER'S SPEAKER BUREAU WHICH HAS A VARIETY OF PROFESSIONALS AVAILABLE TO PRESENT MANY DIFFERENT HEALTH TOPICS WHERE COMMUNITY GROUPS COME TOGETHER. OPIOIDS ------- THE OPIOID EPIDEMIC HAS GAINED MOMENTUM BOTH LOCALLY AND NATIONALLY AND HAS BECOME A GROWING CONCERN. SHORE SUPPORTS HEALTHCARE PROVIDERS AND PATIENTS IN THE BATTLE AGAINST OPIOID ADDICTION. STRATEGY 7: INCREASE ACCESS TO OPIOID ADDICTION SUPPORT SERVICES THROUGH LOCAL PARTNERSHIP WITH AN ADDICTION/MENTAL HEALTH SERVICE AGENCY. STRATEGY 8: EDUCATE INTERNAL STAFF, INCLUDING PHYSICIANS BY PROVIDING ONSITE EDUCATIONAL OPPORTUNITIES ABOUT OPIOID ADDICTION AND TREATMENT."

SCHEDULE H, PART V, SECTION B, QUESTION 16
"THE ORGANIZATION IS AN AFFILIATE WITHIN SHORE MEMORIAL HEALTH SYSTEM AND AFFILIATES; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM (""SYSTEM""). DUE TO CHARACTER LIMITATIONS, THE WEBSITE LISTED IN SCHEDULE H, PART V, SECTION B, QUESTION 16, IS THE HOME PAGE FOR THE SYSTEM. THE ORGANIZATION'S FINANCIAL ASSISTANCE POLICY, FINANCIAL ASSISTANCE APPLICATION AND PLAIN LANGUAGE SUMMARY ARE MADE WIDELY AVAILABLE ON THE ORGANIZATION'S WEBSITE. THESE DOCUMENTS CAN BE ACCESSED AT THE FOLLOWING PAGE INCLUDED IN THE SYSTEM'S WEBSITE: HTTPS://SHOREMEDICALCENTER.ORG/PATIENTS_VISITORS/PATIENTS/INSURANCE/FINANC IAL_ASSISTANCE"

SCHEDULE H, PART I, LINE 3C
"IN ADDITION TO THE FEDERAL POVERTY GUIDELINES, THE ORGANIZATION USES OTHER FACTORS IN DETERMINING ELIGIBILITY CRITERIA FOR FREE AND DISCOUNTED CARE. AS OUTLINED IN PART V, SECTION B, QUESTION 13, OTHER FACTORS TO DETERMINE ELIGIBILITY INCLUDE: - ASSET LEVEL; - MEDICAL INDIGENCY; - INSURANCE STATUS; - UNDERINSURANCE STATUS; AND - RESIDENCY. ADDITIONAL INFORMATION WITH RESPECT TO ELIGIBILITY CRITERIA FOR FINANCIAL ASSISTANCE IS OUTLINED BELOW. NEW JERSEY HOSPITAL CHARITY CARE PAYMENT ASSISTANCE PROGRAM (""CHARITY CARE"") ------------------------------------------------------------------------- CHARITY CARE IS A NEW JERSEY PROGRAM IN WHICH FREE OR DISCOUNTED CARE IS AVAILABLE TO PATIENTS WHO RECEIVE INPATIENT AND OUTPATIENT SERVICES AT ACUTE CARE HOSPITALS THROUGHOUT THE STATE OF NEW JERSEY. HOSPITAL ASSISTANCE AND REDUCED CHARGE CARE ARE ONLY AVAILABLE FOR NECESSARY EMERGENCY OR OTHER MEDICALLY NECESSARY CARE. PATIENTS MAY BE ELIGIBLE FOR CHARITY CARE IF THEY ARE NEW JERSEY RESIDENTS WHO: 1) HAVE NO HEALTH COVERAGE OR HAVE COVERAGE THAT PAYS ONLY PART OF THE HOSPITAL BILL (UNINSURED OR UNDERINSURED); 2) ARE INELIGIBLE FOR ANY PRIVATE OR GOVERNMENTAL SPONSORED COVERAGE (SUCH AS MEDICAID); AND 3) MEET THE FOLLOWING INCOME AND ASSET ELIGIBILITY CRITERIA DESCRIBED BELOW. INCOME CRITERIA: PATIENTS WITH FAMILY GROSS INCOME LESS THAN OR EQUAL TO 200% OF FEDERAL POVERTY GUIDELINES (""FPG"") ARE ELIGIBLE FOR 100% CHARITY CARE COVERAGE. PATIENTS WITH FAMILY GROSS INCOME GREATER THAN 200% AND LESS THAN OR EQUAL TO 300% OF FPG ARE ELIGIBLE FOR DISCOUNTED CARE. FREE CARE OR PARTIALLY COVERED CHARGES WILL BE DETERMINED BY USE OF THE NEW JERSEY DEPARTMENT OF HEALTH FEE SCHEDULE. IF PATIENTS ON THE 20% TO 80% SLIDING FEE SCALE ARE RESPONSIBLE FOR QUALIFIED OUT-OF-POCKET PAID MEDICAL EXPENSES IN EXCESS OF 30% OF THEIR GROSS ANNUAL INCOME (I.E. BILLS UNPAID BY OTHER PARTIES), THEN THE AMOUNT IN EXCESS OF 30% IS CONSIDERED HOSPITAL CARE PAYMENT ASSISTANCE. ASSET CRITERIA: CHARITY CARE INCLUDES ASSET ELIGIBILITY THRESHOLDS WHICH STATES THAT INDIVIDUAL ASSETS CANNOT EXCEED $7,500 AND FAMILY ASSETS CANNOT EXCEED $15,000 AS OF THE DATE OF SERVICE. CHARITY CARE MAY BE AVAILABLE TO NON-NEW JERSEY RESIDENTS, REQUIRING IMMEDIATE MEDICAL ATTENTION FOR AN EMERGENCY MEDICAL CONDITION. NEW JERSEY UNINSURED DISCOUNT PUBLIC LAW 2008, C. 60 (""UNINSURED DISCOUNT"") ---------------------------------------------------------------- THE NEW JERSEY UNINSURED DISCOUNT (NJ LAW - BILL S-1797/A-2609) IS AVAILABLE TO UNINSURED PATIENTS WHOSE FAMILY GROSS INCOME IS LESS THAN 500% OF FPG. ELIGIBLE INDIVIDUALS MUST BE NEW JERSEY RESIDENTS. HOWEVER, SMC HAS ELECTED TO APPLY THIS DISCOUNT TO ALL UNINSURED PATIENTS IRRESPECTIVE OF INCOME LEVEL OR RESIDENCY. SMC OFFERS DISCOUNTED RATES TO ALL UNINSURED INDIVIDUALS. UNDER THIS PROGRAM, AN ELIGIBLE PATIENT WILL BE CHARGED AN AMOUNT NO GREATER THAN 115% OF THE MEDICARE FEE SCHEDULE. UNINSURED BILLING LIMITS ARE IN ACCORDANCE WITH NJ P.L.2008 C60."

SCHEDULE H, PART I, LINE 6A
NOT APPLICABLE.

SCHEDULE H, PART I, LINE 7
WORKSHEET 2 WAS USED FOR THE COST TO CHARGE RATIO.

SCHEDULE H, PART I, QUESTION 7B
Shore Memorial Hospital d/b/a Shore Medical Center partnered with Atlantic County and the State of New Jersey through a provider assessment mechanism to make the State of New Jersey Medicaid program healthier for all. The program increases financial resources provided to the hospital using the State of New Jersey's Medicaid program and certain federal matching funds in order to better serve the needs in the community. These additional funds received from the program are included in Schedule H, Part I; Line 7B; direct offsetting revenue. During calendar year 2021, Shore Medical Center also experienced a Medicaid cost per case increase for Medicaid patients which the costs are included in Schedule H, Part I; Line 7B; total community benefit expense.

SCHEDULE H, PART II
"SHORE MEMORIAL HOSPITAL D/B/A SHORE MEDICAL CENTER (""THE MEDICAL CENTER"") IS PROUD TO MAKE A DIFFERENCE IN THE COMMUNITIES WE CALL HOME. OUR GENEROUS MEDICAL CENTER STAFF HAVE PARTICIPATED IN NUMEROUS EVENTS THAT SUPPORT AND EXEMPLIFY THE MEDICAL CENTER'S COMMITMENT TO OUR COMMUNITY. OUR PRIMARY GOAL IS TO CARE FOR AND RESPECT, ALL PATIENTS, THEIR FAMILIES AND EACH OTHER, ALONG WITH THE SUPERIOR CARE THAT WE DELIVER EVERY DAY. WE STRIVE TO EDUCATE AND PROMOTE WELLNESS TO THE COMMUNITY THROUGH THE MANY OUTREACH PROGRAMS WE OFFER. MORE RECENTLY, THE MEDICAL CENTER BECAME THE FIRST HOSPITAL IN NEW JERSEY AND ONE OF LESS THAN 50 ORGANIZATIONS WORLDWIDE TO RECEIVE PLANETREE PATIENT-CENTERED CARE DESIGNATION. THE PLANETREE MODEL OF CARE IS A PATIENT-CENTERED, HOLISTIC APPROACH TO HEALTHCARE, PROMOTING MENTAL, EMOTIONAL, SPIRITUAL, SOCIAL AND PHYSICAL HEALING. WE HOPE TO EMPOWER OUR PATIENTS AND FAMILIES THROUGH THE EXCHANGE OF INFORMATION TO ULTIMATELY ENCOURAGE AND FOSTER HEALING PARTNERSHIPS WITH CAREGIVERS."

SCHEDULE H, PART III, LINE 8
"MEDICARE COSTS WERE DERIVED FROM THE 2021 MEDICARE COST REPORT. THE ORGANIZATION FEELS THAT MEDICARE UNDERPAYMENTS (SHORTFALL), BAD DEBT AND ASSOCIATED COSTS ARE COMMUNITY BENEFIT AND ARE INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. AS OUTLINED MORE FULLY BELOW, THE ORGANIZATION BELIEVES THAT THESE SERVICES AND RELATED COSTS PROMOTE THE HEALTH OF THE COMMUNITY AS A WHOLE AND ARE RENDERED IN CONJUNCTION WITH THE ORGANIZATION'S CHARITABLE TAX-EXEMPT PURPOSES AND MISSION IN PROVIDING MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER WITHOUT REGARD TO RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY AND CONSISTENT WITH THE COMMUNITY BENEFIT STANDARD PROMULGATED BY THE IRS. THE COMMUNITY BENEFIT STANDARD IS THE CURRENT STANDARD FOR A HOSPITAL FOR RECOGNITION AS A TAX-EXEMPT AND CHARITABLE ORGANIZATION UNDER INTERNAL REVENUE CODE (""IRC"") 501(C)(3). THE ORGANIZATION IS RECOGNIZED AS A TAX-EXEMPT ENTITY AND CHARITABLE ORGANIZATION UNDER 501(C)(3) OF THE IRC. ALTHOUGH THERE IS NO DEFINITION IN THE TAX CODE FOR THE TERM ""CHARITABLE"" A REGULATION PROMULGATED BY THE DEPARTMENT OF THE TREASURY PROVIDES SOME GUIDANCE AND STATES THAT ""THE TERM CHARITABLE IS USED IN SECTION 501(C)(3) IN ITS GENERALLY ACCEPTED LEGAL SENSE,PROVIDES EXAMPLES OF CHARITABLE PURPOSES, INCLUDING THE RELIEF OF THE POOR OR UNPRIVILEGED; THE PROMOTION OF SOCIAL WELFARE; AND THE ADVANCEMENT OF EDUCATION, RELIGION, AND SCIENCE. NOTE IT DOES NOT EXPLICITLY ADDRESS THE ACTIVITIES OF HOSPITALS. IN THE ABSENCE OF EXPLICIT STATUTORY OR REGULATORY REQUIREMENTS APPLYING THE TERM ""CHARITABLE"" TO HOSPITALS, IT HAS BEEN LEFT TO THE IRS TO DETERMINE THE CRITERIA HOSPITALS MUST MEET TO QUALIFY AS IRC 501(C)(3) CHARITABLE ORGANIZATIONS. THE ORIGINAL STANDARD WAS KNOWN AS THE CHARITY CARE STANDARD. THIS STANDARD WAS REPLACED BY THE IRS WITH THE COMMUNITY BENEFIT STANDARD WHICH IS THE CURRENT STANDARD. CHARITY CARE STANDARD IN 1956, THE IRS ISSUED REVENUE RULING 56-185, WHICH ADDRESSED THE REQUIREMENTS HOSPITALS NEEDED TO MEET IN ORDER TO QUALIFY FOR IRC 501(C)(3) STATUS. ONE OF THESE REQUIREMENTS IS KNOWN AS THE ""CHARITY CARE STANDARD."" UNDER THE STANDARD, A HOSPITAL MUST PROVIDE, TO THE EXTENT OF ITS FINANCIAL ABILITY, FREE OR REDUCED-COST CARE TO PATIENTS WHO CANNOT PAY FOR SUCH SERVICES. A HOSPITAL THAT EXPECTED FULL PAYMENT DID NOT, ACCORDING TO THE RULING, PROVIDE CHARITY CARE BASED ON THE FACT THAT SOME PATIENTS ULTIMATELY FAILED TO PAY. THE RULING EMPHASIZED THAT A LOW LEVEL OF CHARITY CARE DID NOT NECESSARILY MEAN THAT A HOSPITAL HAD FAILED TO MEET THE REQUIREMENT SINCE THAT LEVEL COULD REFLECT ITS FINANCIAL ABILITY TO PROVIDE SUCH CARE. THE RULING ALSO NOTED THAT PUBLICLY SUPPORTED COMMUNITY HOSPITALS WOULD NORMALLY QUALIFY AS CHARITABLE ORGANIZATIONS BECAUSE THEY SERVE THE ENTIRE COMMUNITY AND A LOW LEVEL OF CHARITY CARE WOULD NOT AFFECT A HOSPITAL'S EXEMPT STATUS IF IT WAS DUE TO THE SURROUNDING COMMUNITY'S LACK OF CHARITABLE DEMANDS. COMMUNITY BENEFIT STANDARD IN 1969, THE IRS ISSUED REVENUE RULING 69-545, WHICH ""REMOVED"" FROM REVENUE RULING 56-185 ""THE REQUIREMENTS RELATING TO CARING FOR PATIENTS WITHOUT CHARGE OR AT RATES BELOW COST."" UNDER THE STANDARD DEVELOPED IN REVENUE RULING 69-545, WHICH IS KNOWN AS THE ""COMMUNITY BENEFIT STANDARD,"" HOSPITALS ARE JUDGED ON WHETHER THEY PROMOTE THE HEALTH OF A BROAD CLASS OF INDIVIDUALS IN THE COMMUNITY. THE RULING INVOLVED A HOSPITAL THAT ONLY ADMITTED INDIVIDUALS WHO COULD PAY FOR THE SERVICES (BY THEMSELVES, PRIVATE INSURANCE, OR PUBLIC PROGRAMS SUCH AS MEDICARE), BUT OPERATED A FULL-TIME EMERGENCY ROOM THAT WAS OPEN TO EVERYONE. THE IRS RULED THAT THE HOSPITAL QUALIFIED AS A CHARITABLE ORGANIZATION BECAUSE IT PROMOTED THE HEALTH OF PEOPLE IN ITS COMMUNITY. THE IRS REASONED THAT BECAUSE THE PROMOTION OF HEALTH WAS A CHARITABLE PURPOSE ACCORDING TO THE GENERAL LAW OF CHARITY, IT FELL WITHIN THE ""GENERALLY ACCEPTED LEGAL SENSE"" OF THE TERM ""CHARITABLE,"" AS REQUIRED BY THE DEPARTMENT OF TREASURY REG. 1.501(C)(3)-1(D)(2). THE IRS RULING STATED THAT THE PROMOTION OF HEALTH, LIKE THE RELIEF OF POVERTY AND THE ADVANCEMENT OF EDUCATION AND RELIGION, IS ONE OF THE PURPOSES IN THE GENERAL LAW OF CHARITY THAT IS DEEMED BENEFICIAL TO THE COMMUNITY AS A WHOLE EVEN THOUGH THE CLASS OF BENEFICIARIES ELIGIBLE TO RECEIVE A DIRECT BENEFIT FROM ITS ACTIVITIES DOES NOT INCLUDE ALL MEMBERS OF THE COMMUNITY, SUCH AS INDIGENT MEMBERS OF THE COMMUNITY, PROVIDED THAT THE CLASS IS NOT SO SMALL THAT ITS RELIEF IS NOT OF BENEFIT TO THE COMMUNITY. THE IRS CONCLUDED THAT THE HOSPITAL WAS ""PROMOTING THE HEALTH OF A CLASS OF PERSONS THAT IS BROAD ENOUGH TO BENEFIT THE COMMUNITY"" BECAUSE ITS EMERGENCY ROOM WAS OPEN TO ALL AND IT PROVIDED CARE TO EVERYONE WHO COULD PAY, WHETHER DIRECTLY OR THROUGH THIRD-PARTY REIMBURSEMENT. OTHER CHARACTERISTICS OF THE HOSPITAL THAT THE IRS HIGHLIGHTED INCLUDED THE FOLLOWING: ITS SURPLUS FUNDS WERE USED TO IMPROVE PATIENT CARE, EXPAND HOSPITAL FACILITIES, AND ADVANCE MEDICAL TRAINING, EDUCATION AND RESEARCH; IT WAS CONTROLLED BY A BOARD OF TRUSTEES THAT CONSISTED OF INDEPENDENT CIVIC LEADERS; AND HOSPITAL MEDICAL STAFF PRIVILEGES WERE AVAILABLE TO ALL QUALIFIED PHYSICIANS. THE AMERICAN HOSPITAL ASSOCIATION (""AHA"") FEELS THAT MEDICARE UNDERPAYMENTS (SHORTFALL) AND BAD DEBT ARE COMMUNITY BENEFIT AND THUS INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. THIS ORGANIZATION AGREES WITH THE AHA'S POSITION. AS OUTLINED IN THE AHA'S LETTER TO THE IRS DATED AUGUST 21, 2007 WITH RESPECT TO THE FIRST PUBLISHED DRAFT OF THE NEW FORM 990 AND SCHEDULE H, THE AHA FELT THAT THE IRS SHOULD INCORPORATE THE FULL VALUE OF THE COMMUNITY BENEFIT THAT HOSPITALS PROVIDE BY COUNTING MEDICARE UNDERPAYMENTS (SHORTFALL) AS QUANTIFIABLE COMMUNITY BENEFIT FOR THE FOLLOWING REASONS: - PROVIDING CARE FOR THE ELDERLY AND SERVING MEDICARE PATIENTS IS AN ESSENTIAL PART OF THE COMMUNITY BENEFIT STANDARD. - MEDICARE, LIKE MEDICAID, DOES NOT PAY THE FULL COST OF CARE. MEDICARE REIMBURSES HOSPITALS APPROXIMATELY 80 CENTS FOR EVERY DOLLAR THEY SPEND TO TAKE CARE OF MEDICARE PATIENTS. - MANY MEDICARE BENEFICIARIES, LIKE THEIR MEDICAID COUNTERPARTS, ARE POOR. MORE THAN 42 PERCENT OF MEDICARE SPENDING IS FOR BENEFICIARIES WHOSE INCOME IS BELOW 200 PERCENT OF THE FEDERAL POVERTY LEVEL. MANY OF THOSE MEDICARE BENEFICIARIES ARE ALSO ELIGIBLE FOR MEDICAID -- SO CALLED ELIGIBLE."" THERE IS EVERY COMPELLING PUBLIC POLICY REASON TO TREAT MEDICARE AND MEDICAID UNDERPAYMENTS SIMILARLY FOR PURPOSES OF A HOSPITAL'S COMMUNITY BENEFIT AND INCLUDE THESE COSTS ON FORM 990, SCHEDULE H, PART I. MEDICARE UNDERPAYMENT MUST BE SHOULDERED BY THE HOSPITAL IN ORDER TO CONTINUE TREATING THE COMMUNITY'S ELDERLY AND POOR. THESE UNDERPAYMENTS REPRESENT A REAL COST OF SERVING THE COMMUNITY AND SHOULD COUNT AS A QUANTIFIABLE COMMUNITY BENEFIT. BOTH THE AHA AND THIS ORGANIZATION ALSO FEEL THAT PATIENT BAD DEBT IS A COMMUNITY BENEFIT AND THUS INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. LIKE MEDICARE UNDERPAYMENT (SHORTFALLS), THERE ALSO ARE COMPELLING REASONS THAT PATIENT BAD DEBT SHOULD BE COUNTED AS QUANTIFIABLE COMMUNITY BENEFIT AS FOLLOWS: - A SIGNIFICANT MAJORITY OF BAD DEBT IS ATTRIBUTABLE TO LOW-INCOME PATIENTS, WHO, FOR MANY REASONS, DECLINE TO COMPLETE THE FORMS REQUIRED TO ESTABLISH ELIGIBILITY FOR HOSPITALS' CHARITY CARE OR THOSE WHO DO NOT PAY ALL, OR A PORTION OF THE ALREADY DISCOUNTED BILLED AMOUNTS UNDER OUR FINANCIAL ASSISTANCE POLICY. A 2006 CONGRESSIONAL BUDGET OFFICE (""CBO"") REPORT, NONPROFIT HOSPITALS AND THE PROVISION OF COMMUNITY BENEFITS, CITED TWO STUDIES INDICATING THAT ""THE GREAT MAJORITY OF BAD DEBT WAS ATTRIBUTABLE TO PATIENTS WITH INCOMES BELOW 200% OF THE FEDERAL POVERTY LINE."" - THE REPORT ALSO NOTED THAT A SUBSTANTIAL PORTION OF BAD DEBT IS PENDING CHARITY CARE. UNLIKE BAD DEBT IN OTHER INDUSTRIES, HOSPITAL BAD DEBT IS COMPLICATED BY THE FACT THAT HOSPITALS FOLLOW THEIR MISSION TO THE COMMUNITY AND TREAT EVERY PATIENT THAT COMES THROUGH THEIR EMERGENCY DEPARTMENT, REGARDLESS OF ABILITY TO PAY. PATIENTS WHO HAVE OUTSTANDING BILLS ARE NOT TURNED AWAY, UNLIKE OTHER INDUSTRIES. BAD DEBT IS FURTHER COMPLICATED BY THE AUDITING INDUSTRY'S STANDARDS ON REPORTING CHARITY CARE. MANY PATIENTS CANNOT OR DO NOT PROVIDE THE NECESSARY, EXTENSIVE DOCUMENTATION REQUIRED TO BE DEEMED CHARITY CARE BY AUDITORS. AS A RESULT, ROUGHLY 40% OF BAD DEBT IS PENDING CHARITY CARE. THE CBO CONCLUDED THAT ITS FINDINGS ""SUPPORT THE VALIDITY OF THE USE OF UNCOMPENSATED CARE [BAD DEBT AND CHARITY CARE] AS A MEASURE OF COMMUNITY BENEFIT"" ASSUMING THE FINDINGS ARE GENERALIZABLE NATIONWIDE; THE EXPERIENCE OF HOSPITALS AROUND THE NATION REINFORCES THAT THEY ARE GENERALIZABLE. AS OUTLINED BY THE AHA, DESPITE THE HOSPITAL'S BEST EFFORTS AND DUE DILIGENCE, PATIENT BAD DEBT IS A PART OF THE HOSPITAL'S MISSION AND CHARITABLE PURPOSES. BAD DEBT REPRESENTS PART OF THE BURDEN HOSPITALS SHOULDER IN SERVING ALL PATIENTS REGARDLESS OF RACE, COLOR, CREED,"

SCHEDULE H, PART VI; QUESTION 7
THE ENTITY AND RELATED PROVIDER ORGANIZATIONS ARE LOCATED IN NEW JERSEY. THE STATE OF NEW JERSEY DOES NOT REQUIRE HOSPITALS TO ANNUALLY FILE A COMMUNITY BENEFIT REPORT.

SCHEDULE H, PART III, LINES 2, 3 & 4
BAD DEBT EXPENSE WAS CALCULATED USING THE PROVIDERS' BAD DEBT EXPENSE FROM THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS, NET OF ACCOUNTS WRITTEN OFF AT CHARGES. SHORE MEMORIAL HEALTH SYSTEM PREPARES AND ISSUES AUDITED CONSOLIDATED FINANCIAL STATEMENTS. THE ATTACHED TEXT WAS OBTAINED FROM THE FOOTNOTES TO THE AUDITED FINANCIAL STATEMENTS OF SHORE MEMORIAL HEALTH SYSTEM & AFFILIATES. PATIENT ACCOUNTS RECEIVABLE --------------------------- THE SYSTEM RECOGNIZES A RECEIVABLE WHEN THERE IS AN UNCONDITIONAL RIGHT TO PAYMENT, SUBJECT ONLY TO THE PASSAGE OF TIME. PATIENT ACCOUNTS RECEIVABLE, INCLUDING BILLED ACCOUNTS AND UNBILLED ACCOUNTS, WHICH HAVE THE UNCONDITIONAL RIGHT TO PAYMENT, AND ESTIMATED AMOUNTS DUE FROM THIRD-PARTY PAYERS FOR RETROACTIVE ADJUSTMENTS, ARE RECORDED AS RECEIVABLES SINCE THE RIGHT TO CONSIDERATION IS UNCONDITIONAL AND ONLY THE PASSAGE OF TIME IS REQUIRED BEFORE PAYMENT OF THAT CONSIDERATION IS DUE. THE ESTIMATED UNCOLLECTIBLE AMOUNTS ARE GENERALLY CONSIDERED IMPLICIT PRICE CONCESSIONS THAT ARE RECORDED AS A DIRECT REDUCTION TO PATIENT ACCOUNTS RECEIVABLE. PATIENT SERVICE REVENUE ----------------------- PATIENT SERVICE REVENUE IS REPORTED AT THE AMOUNTS THAT REFLECT THE CONSIDERATION TO WHICH THE SYSTEM IS EXPECTED TO BE ENTITLED TO IN EXCHANGE FOR PROVIDING PATIENT CARE FOR BOTH THE MEDICAL CENTER AND ANY EMPLOYED PHYSICIANS. THESE AMOUNTS ARE DUE FROM PATIENTS, THIRD-PARTY PAYORS (INCLUDING MANAGED CARE ORGANIZATIONS AND GOVERNMENT PROGRAMS, I.E., MEDICARE AND MEDICAID) AND OTHERS AND THEY INCLUDE VARIABLE CONSIDERATION FOR RETROACTIVE ADJUSTMENTS DUE TO SETTLEMENT OF FUTURE AUDITS, REVIEWS, AND INVESTIGATIONS. RETROACTIVE ADJUSTMENTS ARE CONSIDERED IN THE RECOGNITION OF REVENUE ON AN ESTIMATED BASIS IN THE PERIOD THE RELATED SERVICES ARE RENDERED, AND SUCH AMOUNTS ARE ADJUSTED IN FUTURE PERIODS AS ADJUSTMENTS BECOME KNOWN OR AS YEARS ARE NO LONGER SUBJECT TO SUCH AUDITS, REVIEWS, AND INVESTIGATIONS. GENERALLY, PATIENTS AND THIRD-PARTY PAYORS ARE BILLED SEVERAL DAYS AFTER THE SERVICES ARE PERFORMED OR SHORTLY AFTER DISCHARGE. PATIENT SERVICE REVENUE IS RECOGNIZED IN THE PERIOD IN WHICH THE PERFORMANCE OBLIGATIONS ARE SATISFIED UNDER CONTRACTS BY TRANSFERRING SERVICES TO PATIENTS. PERFORMANCE OBLIGATIONS ARE DETERMINED BASED ON THE NATURE OF THE SERVICES PROVIDED. THE SYSTEM RECOGNIZES REVENUES FOR PERFORMANCE OBLIGATIONS SATISFIED OVER TIME BASED ON ACTUAL CHARGES INCURRED IN RELATION TO TOTAL EXPECTED CHARGES. THE SYSTEM BELIEVES THAT THIS METHOD PROVIDES AN APPROPRIATE DEPICTION OF THE TRANSFER OF SERVICES OVER THE TERM OF PERFORMANCE OBLIGATIONS BASED ON THE INPUTS NEEDED TO SATISFY THE OBLIGATIONS. GENERALLY, PERFORMANCE OBLIGATIONS ARE SATISFIED OVER TIME RELATED TO PATIENTS RECEIVING INPATIENT ACUTE CARE SERVICES. THE SYSTEM MEASURES PERFORMANCE OBLIGATIONS FROM ADMISSION TO THE POINT WHEN THERE ARE NO FURTHER SERVICES REQUIRED FOR THE PATIENT, WHICH IS GENERALLY THE TIME OF DISCHARGE. THE SYSTEM RECOGNIZES REVENUES FOR PERFORMANCE OBLIGATIONS SATISFIED AT A POINT IN TIME, WHICH GENERALLY RELATE TO PATIENTS RECEIVING OUTPATIENT SERVICES, WHEN: (1) SERVICES ARE PROVIDED; AND (2) WHEN IT IS BELIEVED THE PATIENT DOES NOT REQUIRE ADDITIONAL SERVICES. THE SYSTEM HAS AGREEMENTS WITH THIRD-PARTY PAYORS THAT PROVIDE FOR PAYMENTS TO THE SYSTEM AT AMOUNTS DIFFERENT FROM ESTABLISHED CHARGES. INPATIENT ACUTE CARE SERVICES FOR MEDICARE AND MEDICAID BENEFICIARIES AND OUTPATIENT SERVICES FOR MEDICARE BENEFICIARIES ARE PAID PRIMARILY AT PROSPECTIVELY DETERMINED RATES. THESE RATES VARY ACCORDING TO PATIENT CLASSIFICATION SYSTEMS THAT ARE BASED ON CLINICAL, DIAGNOSTIC, AND OTHER FACTORS. CERTAIN OUTPATIENT SERVICES FOR MEDICAID BENEFICIARIES ARE PAID BASED ON A COST-REIMBURSEMENT METHODOLOGY, SUBJECT TO CERTAIN LIMITATIONS. THE SYSTEM IS REIMBURSED FOR COST REIMBURSABLE AND OTHER ITEMS AT A TENTATIVE RATE, WITH FINAL SETTLEMENT DETERMINED AFTER SUBMISSION OF ANNUAL COST REPORTS BY THE SYSTEM AND AUDITS THEREOF, BY THE PROGRAMS' FISCAL INTERMEDIARY. PROVISIONS FOR ESTIMATED ADJUSTMENTS RESULTING FROM AUDIT AND FINAL SETTLEMENTS HAVE BEEN RECORDED. DIFFERENCES BETWEEN THE ESTIMATED ADJUSTMENTS AND THE AMOUNTS SETTLED ARE RECORDED IN THE YEAR OF SETTLEMENT. THE SYSTEM'S COST REPORTS HAVE NOT BEEN SETTLED BY THE FISCAL INTERMEDIARIES FOR THE YEARS ENDED DECEMBER 31, 2018 THROUGH DECEMBER 31, 2021. IN THE OPINION OF MANAGEMENT, ADEQUATE PROVISION HAS BEEN MADE IN THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS FOR ANY ADJUSTMENTS THAT MAY RESULT FROM THE FINAL SETTLEMENT OF THE SYSTEM'S COST REPORTS. FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020, PATIENT SERVICE REVENUE INCLUDES REVENUE OF APPROXIMATELY $1,307,000 AND $557,000, RESPECTIVELY, RELATED TO FINAL SETTLEMENTS OF PRIOR YEAR COST REPORTS. REVENUES FROM THE MEDICARE AND MEDICAID PROGRAMS ACCOUNTED FOR APPROXIMATELY 36% AND 12% AND 37% AND 7% OF THE SYSTEM'S PATIENT SERVICE REVENUE FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020, RESPECTIVELY. LAWS AND REGULATIONS GOVERNING THE MEDICARE AND MEDICAID PROGRAMS ARE EXTREMELY COMPLEX AND SUBJECT TO INTERPRETATION. AS A RESULT, THERE IS AT LEAST A REASONABLE POSSIBILITY THAT RECORDED ESTIMATES WILL CHANGE BY A MATERIAL AMOUNT IN THE NEAR TERM. THE SYSTEM BELIEVES THAT IT IS IN COMPLIANCE WITH ALL APPLICABLE LAWS AND REGULATIONS AND IS NOT AWARE OF ANY PENDING OR THREATENED INVESTIGATIONS INVOLVING ALLEGATIONS OF POTENTIAL WRONGDOING THAT WOULD HAVE A MATERIAL ADVERSE EFFECT ON THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS. WHILE NO SUCH REGULATORY INQUIRIES HAVE BEEN MADE, COMPLIANCE WITH SUCH LAWS AND REGULATIONS CAN BE SUBJECT TO FUTURE GOVERNMENT REVIEW AND INTERPRETATIONS AS WELL AS SIGNIFICANT REGULATORY ACTION INCLUDING FINES, PENALTIES, AND EXCLUSION FROM THE MEDICARE AND MEDICAID PROGRAMS. THE SYSTEM HAS ALSO ENTERED INTO PAYMENT AGREEMENTS WITH CERTAIN COMMERCIAL INSURANCE CARRIERS AND HEALTH MAINTENANCE ORGANIZATIONS. THE BASIS FOR PAYMENT TO THE SYSTEM UNDER THESE AGREEMENTS INCLUDES PROSPECTIVELY DETERMINED RATES PER DISCHARGE, DISCOUNTS FROM ESTABLISHED CHARGES, AND PROSPECTIVELY DETERMINED DAILY RATES. THESE AGREEMENTS HAVE RETROSPECTIVE AUDIT CLAUSES ALLOWING THE PAYOR TO REVIEW AND ADJUST CLAIMS SUBSEQUENT TO INITIAL PAYMENT. THE SYSTEM RECOGNIZES PATIENT SERVICE REVENUE ASSOCIATED WITH SERVICES PROVIDED TO PATIENTS WHO HAVE THIRD-PARTY PAYOR COVERAGE ON THE BASIS OF THE CONTRACTUAL RATES FOR THE SERVICES RENDERED. FOR UNINSURED PATIENTS THAT DO NOT QUALIFY FOR THE STATE CHARITY CARE ASSISTANCE PROGRAM, THE SYSTEM RECOGNIZES REVENUE ON THE BASIS OF DISCOUNTED RATES UNDER THE UNINSURED SELF PAY PATIENT DISCOUNT POLICY. UNDER THIS POLICY, UNINSURED PATIENTS THAT ARE INELIGIBLE FOR ANY GOVERNMENT ASSISTANCE PROGRAM ARE BILLED AT REDUCED CHARGES COMPARABLE TO THE COST OF PROVIDING CARE BASED UPON THE SYSTEM-SPECIFIC MEDICARE COST TO CHARGE RATIO. THE IMPACT OF THIS UNINSURED SELF PAY DISCOUNT POLICY ON THE CONSOLIDATED FINANCIAL STATEMENTS IS LOWER PATIENT SERVICE REVENUE, AS THE DISCOUNT IS CONSIDERED A PRICING CONSTRAINT. PATIENT SERVICE REVENUE FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020, IS 96% AND 95%, RESPECTIVELY, FROM THIRD-PARTY PAYORS AND IS 4% AND 5%, RESPECTIVELY, FROM SELF-PAY BASED ON PRIMARY INSURANCE DESIGNATION. DEDUCTIBLES AND COPAYMENTS UNDER THIRD-PARTY PAYMENT PROGRAMS WITHIN THE THIRD-PARTY PAYOR AMOUNTS ABOVE ARE THE PATIENTS' RESPONSIBILITY, AND THE SYSTEM CONSIDERS THESE AMOUNTS IN ITS DETERMINATION OF THE IMPLICIT PRICE CONCESSIONS BASED ON COLLECTION EXPERIENCE.

SCHEDULE H, PART III, LINE 9B
ACCOUNTS CONSIDERED TO BE CHARITY CARE ARE NOT INCLUDED IN THE BAD DEBT EXPENSE, BUT RATHER, ACCOUNTED FOR AS AN ALLOWANCE. SHORE MEDICAL CENTER PROVIDES A FULL-RANGE OF HEALTHCARE SERVICES TO OUR COMMUNITY REGARDLESS OF THE PATIENT'S ABILITY TO PAY. WE RECOGNIZE THAT A CRITICAL PART OF PROVIDING HEALTHCARE SERVICES INCLUDES MITIGATING CONCERNS OUR PATIENTS MAY HAVE RELATED TO BILLING MATTERS. THIS BUSINESS PHILOSOPHY IS OUR COMMITMENT TO THE COMMUNITY, PATIENTS AND FAMILY MEMBERS WE SERVE. THIS COMMITMENT RUNS PARALLEL TO OUR NOT FOR PROFIT MISSION AND IS EVIDENCED BY THE FOLLOWING PROACTIVE MEASURES TAKEN BY SHORE MEDICAL CENTER TO PROVIDE FINANCIAL ASSISTANCE TO OUR PATIENTS. SHORE MEDICAL CENTER HAS A DISCOUNT PROGRAM TO ASSIST PATIENTS WHO ARE LEAST ABLE TO PAY. THE POLICY IS DESIGNED TO PROVIDE FINANCIAL RELIEF TO OUR SELF-PAY POPULATION BY REDUCING THE HOSPITAL'S STANDARD CHARGE FOR SERVICES RENDERED. AT THE TIME OF BILLING THE PATIENT, THE CHARGES ARE REDUCED TO AN ESTIMATED COST OF SERVICES. THE HOSPITAL ALSO ENSURES THAT ALL PATIENTS RECEIVE INFORMATION PERTAINING TO THE STATE CHARITY CARE PROGRAM FOR THE UNINSURED AND UNDER-INSURED. TO INQUIRE ABOUT SHORE'S SELF-PAY BILLING AND DISCOUNT POLICY, CHARITY CARE OR PAYMENT ARRANGEMENTS, PATIENTS MAY CONTACT THE PATIENT FINANCIAL SERVICES CREDIT AND COLLECTIONS OFFICE. SHORE MEDICAL CENTER ALSO OFFERS FINANCIAL COUNSELING AND SCREENING FOR PATIENTS TO ENSURE THAT ANY POTENTIAL THIRD PARTY COVERAGE UNDER OTHER GOVERNMENT PROGRAMS, SUCH AS MEDICAID, CAN BE IDENTIFIED. THIS SERVICE IS PROVIDED AT NO COST TO THE PATIENT. BILLING & COLLECTIONS --------------------- THE ORGANIZATION ABIDES BY PROVISIONS ON THE COLLECTION PRACTICES TO BE FOLLOWED FOR PATIENTS WHO ARE KNOWN TO QUALIFY FOR FINANCIAL ASSISTANCE. THESE PROVISIONS INCLUDE THE FOLLOWING: THE HOSPITAL APPROVES PAYMENT ARRANGEMENTS FOR OUR PATIENTS WHO CANNOT PAY THEIR BILLS IN FULL. THESE PAYMENT ARRANGEMENTS CAN BE TAILORED TO THE INDIVIDUAL NEEDS OF THE PATIENT. WE DO NOT CHARGE ADDITIONAL FEES IN THE FORM OF INTEREST FOR CARRYING THE BALANCES BEING PAID UNDER THESE ARRANGEMENTS. THE ACCOUNTS OF PATIENTS FOR WHICH THERE IS NO IDENTIFIED THIRD PARTY INSURANCE WILL FOLLOW A PREDEFINED SELF-PAY COLLECTION CYCLE. ANY REMAINING UNPAID ACCOUNTS THAT ARE NOT IN THE PROCESS OF MAKING PAYMENT ARRANGEMENTS AFTER A DEFINED SELF-PAY COLLECTION CYCLE OF 120 DAYS WILL BE TRANSFERRED TO A THIRD PARTY AGENCY FOR COLLECTION. THE ACCOUNT WILL REMAIN WITH THIS AGENCY FOR 180 DAYS. AFTER THIS TIME PERIOD, WITHOUT ANY AGREED UPON PAYMENT ARRANGEMENTS TO SATISFY THE UNPAID BALANCE, THE ACCOUNT WILL BE TRANSFERRED TO ANOTHER THIRDS PARTY COLLECTION AGENCY. AT THIS TIME, THE UNPAID BALANCE MAY BE REPORTED TO A CREDIT AGENCY, AND AS SUCH, APPEAR ON THE ACCOUNT GUARANTOR'S CREDIT REPORT. SHORE MEDICAL CENTER PURSUES COLLECTION OF BALANCES RIGHTFULLY OWED BY PATIENTS FOR SERVICES RENDERED AND CONTRACTS WITH THIRD PARTY COLLECTION AGENCIES FOR THE PURPOSE OF COLLECTING DELINQUENT ACCOUNT BALANCES. THE COLLECTION AGENCIES OPERATE UNDER THE FEDERAL FAIR DEBT, CREDIT AND COLLECTION GUIDELINES. COLLECTION AGENCY ACTIVITY IS CLOSELY MONITORED BY THE HOSPITAL TO ENSURE THAT PATIENT COLLECTION EFFORTS ARE APPROPRIATE AND IN-LINE WITH OUR CUSTOMER SERVICE PHILOSOPHY. ALL PATIENT COMPLAINTS REGARDING DISSATISFACTION WITH SERVICES RENDERED OR BILLING ISSUES ARE HANDLED PROMPTLY AND IN A COURTEOUS MANNER TO ENSURE THAT CUSTOMER SERVICE REMAINS THE FOCUS OF ANY PATIENT CONCERN. ALL COMPLAINTS ARE CONSIDERED VALID AND PATIENT FEEDBACK IS WELCOME WITH RESPECT TO DISPUTED MATTERS. THE HOSPITAL ABSORBS A SIGNIFICANT AMOUNT OF BAD DEBT ANNUALLY (BALANCES DUE BY PATIENTS THAT ARE INTENTIONALLY NOT PAID), OR ARE INCURRED AS A RESULT OF MITIGATING CIRCUMSTANCES, BANKRUPTCY FILINGS AND OTHER COLLECTION MATTERS.

SCHEDULE H, PART VI; QUESTION 2
IN ADDITION TO THE COMMUNITY HEALTH NEEDS ASSESSMENT PROCESS OUTLINED IN SCHEDULE H, SECTION B, AND QUESTIONS 1-12 AND SECTION C, THE ORGANIZATION TOOK THE FOLLOWING STEPS TO ENSURE THAT THE CHNA WAS MANAGED IN A LOGICAL AND EFFECTIVE MANNER INCLUDING THE FOLLOWING: - SELECT QUALITY DATA SOURCES FROM KEY ORGANIZATION SUCH AS U.S. CENSUS BUREAU, NEW JERSEY DEPARTMENT OF HEALTH, AMERICAN CANCER SOCIETY, ETC. - ENGAGE COMMUNITY REPRESENTATIVES, ESPECIALLY THOSE WITH PUBLIC HEALTH EXPERTISE - DEFINE THE COMMUNITY THAT WE SERVE THROUGH ZIP CODE ANALYSIS OF THE HOSPITAL CATCHMENT AREA - DEVELOPED AND ADMINISTERED A COMMUNITY SURVEY IN AN EFFORT TO GAIN THE COMMUNITY'S INPUT - PRIORITIZE THE HEALTH AND HEALTH-RELATED PROBLEMS BASED ON RELEVANT STATISTICS AND COMMUNITY'S CONCERN - IDENTIFIED DATA GAPS THROUGHOUT THE DATA COLLECTION EFFORTS THE GUIDES AND EXPERT ADVICE FOR THE CONDUCTING THE ASSESSMENT INCLUDED: - EDUCATIONAL WEBINARS BY THE NEW JERSEY HOSPITAL ASSOCIATION - GUIDE FOR PLANNING & REPORTING COMMUNITY BENEFIT BY CATHOLIC HEALTH ASSOCIATION - MOBILIZING FOR ACTION THROUGH PLANNING AND PARTNERSHIP (MAPP) BY THE NATIONAL ASSOCIATION OF COUNTY & CITY OFFICIALS - SCHEDULE H (FORM 990) BY THE US DEPARTMENT OF THE TREASURY, INTERNAL REVENUE SERVICE - GUIDANCE FROM PUBLIC HEALTH COMMUNITY LEADERS - DEVELOPED AN INTERNAL COMMITTEE FOR THE REVISION PROCESS IN ADDITION, THE ORGANIZATION REFERENCED KEY QUANTITATIVE SOURCES OF DATA IN ORDER TO ASSESS THE HEALTH NEEDS OF ITS COMMUNITY. INCLUDED BELOW ARE THE DATA SOURCES USED BY THE ORGANIZATION: - AMERICAN CANCER SOCIETY - AMERICAN DIABETES ASSOCIATION - AMERICAN HEART ASSOCIATION - ATLANTIC COUNTY DIVISION OF PUBLIC HEALTH - CENTERS FOR DISEASE CONTROL AND PREVENTION - COUNTY HEALTH RANKINGS, UNIVERSITY OF WISCONSIN - NEW JERSEY CANCER REGISTRY - NEW JERSEY DEPARTMENT OF HEALTH - NEW JERSEY PRIMARY CARE ASSOCIATION - UNITED STATES CENSUS BUREAU - UNITED STATES DEPARTMENT OF HEALTH AND HUMAN SERVICES THE ORGANIZATION ALSO REFERENCED THE ATLANTIC COUNTY DIVISION OF PUBLIC HEALTH COMMUNITY HEALTH ASSESSMENT AND THE ATLANTIC COUNTY DIVISION OF PUBLIC HEALTH YOUTH RISK BEHAVIORAL SURVEY FOR ADDITIONAL INFORMATION REGARDING THE HEALTH NEEDS OF THE COMMUNITY.

SCHEDULE H, PART VI; QUESTION 3
"IN ACCORDANCE WITH INTERNAL REVENUE CODE SECTION 501(R)(4) THE ORGANIZATION INFORMS AND EDUCATES PATIENTS AND PERSONS WHO MAY BE BILLED FOR PATIENT CARE ABOUT THEIR ELIGIBILITY FOR FINANCIAL ASSISTANCE BY WIDELY PUBLICIZING VARIOUS DOCUMENTS. THESE DOCUMENTS ARE WIDELY PUBLICIZED IN THE FOLLOWING WAYS: (1) THE ORGANIZATION'S FINANCIAL ASSISTANCE POLICY (""FAP""), FINANCIAL ASSISTANCE APPLICATION (""APPLICATION"") AND PLAIN LANGUAGE SUMMARY (""PLS"") ARE ALL AVAILABLE ON-LINE AT THE FOLLOWING WEBSITE: HTTPS://SHOREMEDICALCENTER.ORG/PATIENTS_VISITORS/PATIENTS/INSURANCE/FINANC IAL_ASSISTANCE (2) PAPER COPIES OF THE FAP, APPLICATION AND THE PLS ARE AVAILABLE UPON REQUEST WITHOUT CHARGE BY MAIL AND ARE AVAILABLE IN AT VARIOUS AREAS THROUGHOUT THE HOSPITAL FACILITY. (3) THE ORGANIZATION'S FAP, APPLICATION AND PLS ARE AVAILABLE IN ENGLISH AND IN THE PRIMARY LANGUAGE OF POPULATIONS WITH LIMITED PROFICIENCY IN ENGLISH (""LEP"") THAT CONSTITUTE THE LESSER OF 1,000 INDIVIDUALS OR 5% OF THE COMMUNITY SERVED. (4) SIGNS OR DISPLAYS ARE CONSPICUOUSLY POSTED IN PUBLIC HOSPITAL LOCATIONS THAT NOTIFY AND INFORM PATIENTS ABOUT THE AVAILABILITY OF FINANCIAL ASSISTANCE. (5) THE ORGANIZATION ALSO MAKES REASONABLE EFFORTS TO INFORM MEMBERS OF THE COMMUNITY ABOUT THE AVAILABILITY OF FINANCIAL ASSISTANCE. SHORE MEDICAL CENTER HAS ENGAGED A THIRD PARTY TO PROVIDE EDUCATION AND ELIGIBILITY PROCESSING FOR FINANCIAL ASSISTANCE AND MEDICAID ELIGIBILITY. THIS THIRD PARTY MEETS WITH INPATIENTS, THEIR FAMILIES AND WALK IN PATIENTS TO PROVIDE ALL NECESSARY GUIDANCE FOR THE PATIENT FINANCIAL NEEDS. IN ADDITION, THEY ALSO MAKE HOUSE CALLS FOR THOSE THAT NEED FURTHER ASSISTANCE AND HELP IN GETTING TO THE AGENCIES NECESSARY TO COMPLETE STATE APPLICATIONS. THE MEDICAL CENTER ALSO HAS AN ADDITIONAL 4 INDIVIDUALS THAT HELP PATIENTS COMPLETE THESE FORMS IN THE BUSINESS OFFICE, EMERGENCY DEPARTMENT AND THE ADMISSIONS OFFICE."

SCHEDULE H, PART VI; QUESTION 5
SHORE MEDICAL CENTER IS PROUD TO MAKE A DIFFERENCE IN THE COMMUNITIES WE CALL HOME. OUR GENEROUS MEDICAL CENTER STAFF HAVE PARTICIPATED IN NUMEROUS EVENTS THAT SUPPORT AND EXEMPLIFY THE MEDICAL CENTER'S COMMITMENT TO OUR COMMUNITY. OUR PRIMARY GOAL IS TO CARE FOR AND RESPECT, ALL PATIENTS THEIR FAMILIES AND EACH OTHER. ALONG WITH THE SUPERIOR CARE THAT WE DELIVER EVERY DAY, WE STRIVE TO EDUCATE AND PROMOTE WELLNESS TO THE COMMUNITY THROUGH THE MANY OUTREACH PROGRAMS WE OFFER. MORE RECENTLY, THE MEDICAL CENTER BECAME THE FIRST HOSPITAL IN NEW JERSEY AND ONE OF LESS THAN 50 ORGANIZATIONS WORLDWIDE TO RECEIVE PLANETREE PATIENT-CENTERED CARE DESIGNATION. THE PLANETREE NETWORK IS A PATIENT CENTERED, HOLISTIC APPROACH TO HEALTHCARE, PROMOTING MENTAL, EMOTIONAL, SPIRITUAL, SOCIAL AND PHYSICAL HEALING. WE HOPE TO EMPOWER OUR PATIENTS AND FAMILIES THROUGH THE EXCHANGE OF INFORMATION TO ULTIMATELY ENCOURAGE AND FOSTER HEALING PARTNERSHIPS WITH CAREGIVERS.

SCHEDULE H, PART VI; QUESTION 4
SHORE MEDICAL CENTER IS LOCATED IN SOMERS POINT, ATLANTIC COUNTY, NEW JERSEY, APPROXIMATELY 10 MILES SOUTH OF ATLANTIC CITY, NEW JERSEY. THE MEDICAL CENTER SERVES THE HEALTHCARE NEEDS OF BOTH THE YEAR ROUND AND SUMMER RESIDENTS OF ATLANTIC AND CAPE MAY COUNTIES AS WELL AS SEASONAL VISITORS FROM OTHER COMMUNITIES AND STATES. THE FOLLOWING DEMOGRAPHICS WERE CITED IN THE ORGANIZATION'S MOST RECENTLY CONDUCTED COMMUNITY HEALTH NEEDS ASSESSMENT: - ATLANTIC COUNTY'S POPULATION IN 2000 WAS 252,552. IT INCREASED TO 274,549 IN 2010 WHICH RESULTED IN AN 8.7% INCREASE TO THE TOTAL POPULATION. CAPE MAY COUNTY'S POPULATION WAS 102,326 IN 2000 AND DECREASED TO 97,265 IN 2010 WHICH RESULTED IN A 4.9% DECREASE TO THE TOTAL POPULATION. INDIVIDUAL MUNICIPALITIES FLUCTUATE BETWEEN INCREASES AND DECREASES OF POPULATION. BUENA, EGG HARBOR TOWNSHIP, GALLOWAY TOWNSHIP, HAMILTON TOWNSHIP AND WEYMOUTH TOWNSHIP HAD AN INCREASE OF 18% OR HIGHER WHILE BRIGANTINE, MARGATE, VENTNOR AND OCEAN CITY HAD A DECREASE OF 17% OR MORE. - THE MEDIAN AGE IN ATLANTIC COUNTY WAS 37.0 IN 2000 AND 39.9 IN 2010. CAPE MAY COUNTY MEDIAN AGE IS WAS 40.7 IN 2000 AND 47.1 IN 2010. THE POPULATION IS GROWING OLDER. ATLANTIC COUNTY'S TOTAL POPULATION IN 2010 CONSISTED OF 133,175 MEN AND 141,374 WOMEN REPRESENTING 48.5% AND 51.5% OF THE POPULATION RESPECTIVELY. AS THE POPULATION GROWS OLDER, THE COMPOSITION OF THE POPULATION CHANGES TO A HIGHER FEMALE BASED POPULATION. 51.3% OF THE POPULATION UNDER 19 IS MALE WITH 48.7% BEING FEMALE. IN THE AGE CATEGORY OF 80 AND OVER 35.7% OF THE POPULATION IS MALE AND 64.3% IS FEMALE. ADDITIONALLY, GENERATIONAL FLUCTUATIONS CAN BE IDENTIFIED AS THE 30-34 AND 35-39 AGE GROUPS ARE IN A DECREASE BETWEEN 2000 AND 2010 AND THE 55-59 AND 60-64 AGE GROUPS ARE IN AN INCREASE BETWEEN 2000 AND 2010. THE 85-89 AGE GROUP ALSO HAD A LARGE INCREASE. THESE POPULATION SHIFTS ILLUSTRATE THE POTENTIAL CHANGES NEEDED IN MEDICAL CARE SERVICES. IN 2010, ATLANTIC COUNTY HAD 38,902 CITIZENS 65 YEARS OLD OR OLDER WHICH IS 14.2% OF ITS POPULATION. 11 OUT OF 23 MUNICIPALITIES THAT HAVE A HIGHER PERCENTAGE OF SENIOR CITIZENS COMPARED TO THE COUNTY OVERALL AVERAGE. CAPE MAY COUNTY HAD 20,977 CITIZENS 65 YEARS OLD OR OLDER WHICH IS 21.6% OF THE POPULATION. LONGPORT, MARGATE, WEYMOUTH TOWNSHIP AND OCEAN CITY HAVE THE HIGHEST PERCENTAGE OF SENIOR POPULATION IN THE SHORE MEDICAL CENTER CATCHMENT AREA. - ACCORDING TO THE 2010 U.S. CENSUS, ATLANTIC COUNTY'S THREE HIGHEST POPULATIONS BY RACE ARE WHITE (65.4%), AFRICAN AMERICAN (16.1%) AND ASIAN (7.5%). THE CAPE MAY COUNTY MUNICIPALITIES POPULATION IS PREDOMINATELY WHITE (94.4%). AFRICAN AMERICANS REPRESENT 16.1% OF ATLANTIC COUNTY. FOUR MUNICIPALITIES HAVE A HIGHER PERCENTAGE OF AFRICAN AMERICANS THAN THE COUNTY PERCENTAGE. THESE MUNICIPALITIES ARE ATLANTIC CITY (38.3%), EGG HARBOR CITY (17.9%), HAMILTON TOWNSHIP (18.5%) AND PLEASANTVILLE (45.9%). TWO MUNICIPALITIES IN ATLANTIC COUNTY HAVE A HIGHER AFRICAN AMERICAN POPULATION THAN WHITE POPULATION. THESE TWO MUNICIPALITIES, ATLANTIC CITY AND PLEASANTVILLE, HAVE A RACIAL COMPOSITION AS FOLLOWS: ATLANTIC CITY'S 26.7% WHITE AND 38.3% AFRICAN AMERICAN; AND PLEASANTVILLE 24.3% WHITE AND 45.9% AFRICAN AMERICAN. ASIAN POPULATIONS HAVE INCREASED IN ATLANTIC COUNTY OVER THE PAST TEN YEARS. ACCORDING TO THE 2000 U.S. CENSUS THERE WERE 12,771 ASIANS IN ATLANTIC COUNTY CONSISTING OF 5.1% OF THE POPULATION. THE 2010 U.S. CENSUS REPORTS 20,595 ASIANS IN ATLANTIC COUNTY CONSISTING OF 7.5% OF THE POPULATION. THIS IS A 61.3% INCREASE IN POPULATION. FOUR MUNICIPALITIES IN ATLANTIC COUNTY HAVE A HIGHER PERCENTAGE OF ASIANS THAN THE COUNTY PERCENTAGE. THESE MUNICIPALITIES ARE ATLANTIC CITY (15.6%), EGG HARBOR TOWNSHIP (11.8%), GALLOWAY TOWNSHIP (10.0%) AND VENTNOR CITY (8.7%). LATINO POPULATIONS HAVE INCREASED IN ATLANTIC COUNTY OVER THE PAST TEN YEARS. ACCORDING TO THE 2000 U.S. CENSUS THERE WERE 30,729 LATINO/AS CONSISTING OF 12.2% OF THE POPULATION. THE 2010 U.S. CENSUS REPORTS 46,241 LATINO/AS IN ATLANTIC COUNTY CONSISTING OF 16.8% OF THE POPULATION. THIS IS A 50.5% INCREASE IN POPULATION. PUERTO RICANS MAKE UP 39.3% AND MEXICANS MAKE UP 23.5% OF THE LATINO/A COMMUNITY. ALTHOUGH THE PUERTO RICAN POPULATION IS LARGER MEXICAN POPULATIONS ARE GROWING MUCH QUICKER. OVER THE PAST TEN YEARS THE PUERTO RICAN POPULATION INCREASED 24.6% WHILE THE MEXICAN POPULATION DOUBLED AT AN INCREASE OF 118.8%. - THE 2010 CENSUS INFORMATION WAS NOT YET AVAILABLE FOR INCOME; THEREFORE THE AMERICAN COMMUNITY SURVEY CONDUCTED BY THE CENSUS BUREAU WAS USED TO ESTIMATE INCOME NUMBERS. THE ATLANTIC COUNTY 5 YEAR ESTIMATE WAS APPROXIMATELY 101,645 HOUSEHOLDS. HOUSEHOLDS ARE DEFINED AS EVERYONE LIVING IN A HOUSING UNIT AS THEIR USUAL RESIDENCE. THE ATLANTIC COUNTY MEDIAN INCOME WAS $54,766 AND THE MEAN INCOME WAS $71,086. CAPE MAY COUNTY HAD 45,420 HOUSEHOLDS WITH A MEDIAN INCOME OF $54,292 AND A MEAN INCOME OF $74,630. BOTH ATLANTIC COUNTY AND CAPE MAY COUNTY HOUSEHOLD INCOME MEASUREMENTS ARE LOWER THAN NEW JERSEY; MEDIAN $69,811 (MOE +/-309) AND MEAN $93,475 (MOE +/-360). - ATLANTIC COUNTY (11.8%) AND CAPE MAY COUNTY (12.7%) HAVE HIGHER PERCENTAGES OF THE POPULATION LIVING BELOW THE POVERTY LEVEL COMPARED TO NEW JERSEY (9.1%). ACCORDING TO THE AMERICAN COMMUNITY SURVEY APPROXIMATELY 30,757 PEOPLE LIVE BELOW THE POVERTY LEVEL IN ATLANTIC COUNTY. ATLANTIC CITY, EGG HARBOR CITY AND PLEASANTVILLE HAVE THE HIGHEST PERCENTAGES OF PEOPLE THAT LIVE BELOW THE POVERTY LEVEL. - EDUCATIONAL ATTAINMENT IS LOWER IN ATLANTIC COUNTY AND CAPE MAY COUNTY COMPARED TO NEW JERSEY. ACCORDING TO THE AMERICAN COMMUNITY SURVEY A HIGHER PERCENTAGE OF PEOPLE GRADUATE WITH BACHELOR AND GRADUATE DEGREES IN NEW JERSEY THAN IN ATLANTIC AND CAPE MAY COUNTY. IN NEW JERSEY, 21.6% RECEIVED BACHELOR DEGREES AND 13.0% RECEIVED GRADUATE DEGREES COMPARED TO 16.3% AND 7.2% FOR ATLANTIC COUNTY AND 17.4% AND 8.9% FOR CAPE MAY COUNTY RESPECTIVELY. 87.3% OF PEOPLE IN NEW JERSEY ARE A HIGH SCHOOL GRADUATE OR HIGHER AND 34.6% OF PEOPLE IN NEW JERSEY HAVE A BACHELOR'S DEGREE OR HIGHER. - APPROXIMATELY 76% OF THE ATLANTIC COUNTY'S POPULATION OVER 5 YEARS OLD SPEAKS ONLY ENGLISH. THIS IS SLIGHTLY HIGHER THAN NEW JERSEY IN WHICH 71.3% OF THE POPULATION OVER 5 YEARS OLD SPEAKS ONLY ENGLISH. CAPE MAY COUNTY HAS A MUCH HIGHER PERCENTAGE OF THE POPULATION THAT SPEAKS ONLY ENGLISH CONSISTING OF 90.9% OF THE POPULATION. THE HIGHEST SEGMENT OF THE POPULATION THAT SPEAKS ANOTHER LANGUAGE IS SPANISH OR SPANISH CREOLE. THIS IS ALSO THE CASE WITH NEW JERSEY AS A WHOLE (14.6%). - APPROXIMATELY 8.8% OF ATLANTIC COUNTY AND 13.4% OF CAPE MAY COUNTY ARE VETERANS. VIETNAM VETERANS MAKE UP THE LARGEST PERCENTAGE OF VETERANS AS SEEN IN TABLE 9-1. IN BOTH ATLANTIC AND CAPE MAY COUNTY MOST VETERANS ARE MEN (94.7% AND 95.0% RESPECTIVELY) AND WHITE (79.9% AND 93.7%) OR AFRICAN AMERICAN (14.1% AND 4.1%). AGE GROUPS VARY WITH MOST VETERANS 35 AND OVER. - AMERICANS WHO DO NOT HAVE HEALTH INSURANCE ARE LESS LIKELY TO RECEIVE ANNUAL PREVENTIVE CARE SUCH AS ROUTINE EXAMS AND SCREENINGS FOR CHRONIC DISEASE, ACCESS TO MEDICATION AND OFTEN RECEIVE DELAYED TREATMENT AND PREMATURE MORTALITY. APPROXIMATELY 35,000 PEOPLE IN ATLANTIC COUNTY AND 10,000 PEOPLE IN CAPE MAY COUNTY DO NOT HAVE HEALTH INSURANCE. THERE ARE MORE MEN WHO DO NOT HAVE HEALTH INSURANCE THAN WOMEN. - ATLANTIC AND CAPE MAY COUNTY HAVE SOME OF THE HIGHEST SMOKING PERCENTAGES IN NEW JERSEY. IT IS ESTIMATED THAT IN 2014, 20% OF ADULTS (18 AND OVER) IN ATLANTIC COUNTY AND 21% IN CAPE MAY COUNTY SMOKED CIGARETTES. - HEART DISEASE IS THE LEADING CAUSE OF DEATH IN ATLANTIC COUNTY, CAPE MAY COUNTY AND NEW JERSEY. WHILE BOTH COUNTIES HAVE A HIGHER HEART DISEASE RATE THAN NEW JERSEY, ATLANTIC COUNTY'S RATE IS 27.6% HIGHER THAN THE STATE'S RATE. CANCER IS THE SECOND LEADING CAUSE OF DEATH IN ALL THREE AREAS. ATLANTIC COUNTY'S CANCER MORTALITY RATE IS 9.6% HIGHER WHILE CAPE MAY COUNTY'S CANCER MORTALITY RATE IS 12.4% HIGHER THAN NEW JERSEY. HEART DISEASE AND CANCER ATTRIBUTE TO THE GREATEST NUMBER OF DEATHS. CDC CALCULATES THAT HEART DISEASE AND CANCER CONTRIBUTE TO NEARLY 48% OF ALL DEATHS.

SCHEDULE H, PART VI; QUESTION 6
OUTLINED BELOW IS A SUMMARY OF THE ENTITIES THAT COMPRISE SHORE MEMORIAL HEALTH SYSTEM AND AFFILIATES. SHORE MEMORIAL HOSPITAL D/B/A SHORE MEDICAL CENTER -------------------------------------------------- SHORE MEDICAL CENTER IS AN ACUTE-CARE TAX-EXEMPT HOSPITAL LOCATED IN SOMERS POINT, NEW JERSEY. THE MEDICAL CENTER PROVIDES GENERAL HEALTHCARE SERVICES TO RESIDENTS WITHIN ITS GEOGRAPHIC LOCATION FOR A WIDE RANGE OF INPATIENT AND OUTPATIENT SERVICES, INCLUDING MEDICAL, SURGICAL, OBSTETRICAL, GYNECOLOGICAL, PEDIATRIC, EMERGENCY AND AMBULATORY CARE. THE HOSPITAL IS RECOGNIZED BY THE IRS AS AN INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, THE MEDICAL CENTER PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. MOREOVER, THE MEDICAL CENTER OPERATES CONSISTENTLY WITH THE FOLLOWING CRITERIA OUTLINED IN IRS REVENUE RULING 69-545: 1) THE MEDICAL CENTER PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF ABILITY TO PAY, INCLUDING CHARITY CARE, SELF-PAY, MEDICARE AND MEDICAID PATIENTS; 2) THE MEDICAL CENTER OPERATES AN ACTIVE EMERGENCY DEPARTMENT FOR ALL PERSONS; WHICH IS OPEN 24 HOURS A DAY, SEVEN DAYS A WEEK, 365 DAYS PER YEAR; 3) THE MEDICAL CENTER MAINTAINS AN OPEN MEDICAL STAFF, WITH PRIVILEGES AVAILABLE TO ALL QUALIFIED PHYSICIANS; 4) CONTROL OF THE MEDICAL CENTER RESTS WITH ITS BOARD OF TRUSTEES; WHICH IS COMPRISED OF INDEPENDENT CIVIC LEADERS AND OTHER PROMINENT MEMBERS OF THE COMMUNITY; AND 5) SURPLUS FUNDS ARE USED TO IMPROVE THE QUALITY OF PATIENT CARE, EXPAND AND RENOVATE FACILITIES AND ADVANCE MEDICAL CARE; PROGRAMS AND ACTIVITIES. SHORE HEALTH SERVICES CORPORATION --------------------------------- SHORE HEALTH SERVICES CORPORATION IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3). THE ORGANIZATION IS CURRENTLY INACTIVE. SHORE MEMORIAL HEALTH SYSTEM ---------------------------- SHORE MEMORIAL HEALTH SYSTEM IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3). THE ORGANIZATION FUNCTIONS AS THE PARENT CORPORATION OF AND SUPPORTS THE CHARITABLE PURPOSES, PROGRAMS AND SERVICES OF SHORE MEMORIAL HEALTH SYSTEM AND AFFILIATES, INCLUDING SHORE MEDICAL CENTER, WHICH PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. SHORE MEMORIAL HEALTH FOUNDATION, INC. -------------------------------------- SHORE MEMORIAL HEALTH FOUNDATION, INC. IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(1). THE ORGANIZATION SUPPORTS AND RAISES FUNDS ON BEHALF OF THE SHORE MEMORIAL HEALTH SYSTEM, INCLUDING SHORE MEDICAL CENTER. THE ORGANIZATION IS CURRENTLY INACTIVE. BRIGHTON BAY, LLC ----------------- BRIGHTON BAY, LLC IS A LIMITED LIABILITY COMPANY WHOSE SOLE CORPORATE MEMBER IS SHORE MEDICAL CENTER. BRIGHTON BAY, LLC MAINTAINS AND OPERATES CERTAIN HEALTHCARE RELATED RENTAL REAL ESTATE. SHORE QUALITY PARTNERS, LLC --------------------------- SHORE QUALITY PARTNERS, LLC IS A LIMITED LIABILITY COMPANY WHOSE SOLE CORPORATE MEMBER IS SHORE MEDICAL CENTER. SHORE QUALITY PARTNERS, LLC OPERATES AN INTEGRATED PHYSICIAN NETWORK. SHORE QUALITY PARTNERS ACO, LLC ------------------------------- SHORE QUALITY PARTNERS ACO, LLC IS A LIMITED LIABILITY COMPANY WHOSE SOLE CORPORATE MEMBER IS SHORE MEDICAL CENTER. SHORE QUALITY PARTNERS ACO, LLC OPERATES AS AN ACCOUNTABLE CARE ORGANIZATION. SHORE HEALTH ENTERPRISES, INC. ------------------------------ SHORE HEALTH ENTERPRISES, INC. IS CORPORATION WHOSE SOLE SHAREHOLDER IS SHORE MEMORIAL HEALTH SYSTEM. THIS CORPORATION IS A MANAGEMENT SERVICE ORGANIZATION THAT PROVIDES SERVICES TO THE SYSTEM'S AFFILIATES. SHORE MEMORIAL PHYSICAN'S GROUP, P.C. ------------------------------------- SHORE MEMORIAL PHYSICIAN'S GROUP, P.C. IS A PHYSICIAN PRACTICE PROFESSIONAL CORPORATION CONTROLLED BY SHORE MEDICAL CENTER THROUGH A NOMINEE OWNERSHIP BY A LICENSED PROFESSIONAL DUE TO STATE OF NEW JERSEY CORPORATE PRACTICE OF MEDICINE PROHIBITION RULES AND REGULATIONS. THIS ORGANIZATION WAS INCORPORATED AS A PROFESSIONAL CORPORATION FOR THE PURPOSE OF DEVELOPING AN EMPLOYED PHYSICIAN NETWORK. THE PHYSICIANS GROUP IS DESIGNED TO ACHIEVE A MORE INTEGRATED APPROACH TO THE DELIVERY OF MEDICAL CARE FOR THE COMMUNITY SERVED BY THE MEDICAL CENTER. BAYFRONT URGENT CARE PROFESSIONAL ASSOCIATION D/B/A SHORE URGENT CARE, P.A. --------------------------------------------------------------------- SHORE URGENT CARE, P.A. IS A CONTROLLED AFFILIATE OF SHORE MEMORIAL PHYSICIANS GROUP, P.C.; A PHYSICIAN PRACTICE PROFESSIONAL ASSOCIATION CONTROLLED BY SHORE MEDICAL CENTER THROUGH A NOMINEE OWNERSHIP BY A LICENSED PROFESSIONAL DUE TO STATE OF NEW JERSEY CORPORATE PRACTICE OF MEDICINE PROHIBITION RULES AND REGULATIONS. THIS ORGANIZATION PROVIDES URGENT CARE SERVICES. SHORE PATHOLOGY ASSOCIATES, P.C. -------------------------------- SHORE PATHOLOGY ASSOCIATES, P.C. IS A PHYSICIAN PRACTICE PROFESSIONAL CORPORATION CONTROLLED BY SHORE MEDICAL CENTER THROUGH A NOMINEE OWNERSHIP BY A LICENSED PROFESSIONAL DUE TO STATE OF NEW JERSEY CORPORATE PRACTICE OF MEDICINE PROHIBITION RULES AND REGULATIONS. THIS ORGANIZATION PROVIDES PATHOLOGY SERVICES. SHORE HOSPITALISTS ASSOCIATES, P.A. ----------------------------------- SHORE HOSPITALISTS ASSOCIATES, P.A IS A PHYSICIAN PRACTICE PROFESSIONAL ASSOCIATION CONTROLLED BY SHORE MEDICAL CENTER THROUGH A NOMINEE OWNERSHIP BY A LICENSED PROFESSIONAL DUE TO STATE OF NEW JERSEY CORPORATE PRACTICE OF MEDICINE PROHIBITION RULES AND REGULATIONS. THIS ORGANIZATION PROVIDES INPATIENT HEALTHCARE SERVICES. SHORE SPECIALTY CONSULTANTS, P.A. --------------------------------- SHORE SPECIALTY CONSULTANTS, P.A. IS A PHYSICIAN PRACTICE PROFESSIONAL ASSOCIATION CONTROLLED BY SHORE MEDICAL CENTER THROUGH A NOMINEE OWNERSHIP BY A LICENSED PROFESSIONAL DUE TO STATE OF NEW JERSEY CORPORATE PRACTICE OF MEDICINE PROHIBITION RULES AND REGULATIONS. THIS ORGANIZATION PROVIDES SPECIALTY HEALTHCARE SERVICES.