4A (Expenses $ 194939727 including grants of $ 119871) (Revenue $ 273298915)
SEE SCHEDULE H

PREPARATION OF COMMUNITY BENEFIT REPORT SCHEDULE H, PART I, LINE 6A
SAINT CLARE'S HOSPITAL, INC. PREPARES ITS OWN ANNUAL WRITTEN COMMUNITY BENEFIT REPORT. ITS COMMUNITY BENEFIT REPORT IS NOT CONTAINED IN THAT OF A RELATED ORGANIZATION.

Costing Methodology used to calculate financial assistance Schedule H, Part I, Line 7
A COST ACCOUNTING SYSTEM WAS NOT USED TO COMPUTE AMOUNTS IN THE TABLE; RATHER COSTS IN THE TABLE WERE COMPUTED USING THE ORGANIZATION'S COST-TO-CHARGE RATIO. THE COST-TO-CHARGE RATIO COVERS ALL PATIENT SEGMENTS.

Bad Debt Expense excluded from financial assistance calculation Schedule H, Part I, Line 7, column(f)
12,317,469

Subsidized Health Services Schedule H, Part I, Line 7g
THERE ARE NO PHYSICIAN CLINICS INCLUDED IN SUBSIDIZED HEALTH SERVICES.

Bad debt expense - methodology used to estimate amount Schedule H, Part III, Line 2
COSTING METHODOLOGY FOR AMOUNTS REPORTED ON LINE 2 IS DETERMINED USING THE ORGANIZATION'S COST/CHARGE RATIO OF 22.1%. WHEN DISCOUNTS ARE EXTENDED TO SELF-PAY PATIENTS, THESE PATIENT ACCOUNT DISCOUNTS ARE RECORDED AS A REDUCTION IN REVENUE, NOT AS BAD DEBT EXPENSE.

Bad debt expense - methodology used to estimate amount as community benefit Schedule H, Part III, Line 3
SAINT CLARE'S HOSPITAL INC. DOES NOT BELIEVE THAT ANY PORTION OF BAD DEBT EXPENSE COULD REASONABLY BE ATTRIBUTED TO PATIENTS WHO QUALIFY FOR FINANCIAL ASSISTANCE SINCE AMOUNTS DUE FROM THOSE INDIVIDUALS' ACCOUNTS WILL BE RECLASSIFIED FROM BAD DEBT EXPENSE TO CHARITY CARE WITHIN 30 DAYS FOLLOWING THE DATE THAT THE PATIENT IS DETERMINED TO QUALIFY FOR CHARITY CARE.

Bad debt expense - financial statement footnote Schedule H, Part III, Line 4
"SAINT CLARE'S HOSPITAL, INC. DOES NOT ISSUE SEPARATE COMPANY AUDITED FINANCIAL STATEMENTS. HOWEVER, THE ORGANIZATION IS INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS OF CATHOLIC HEALTH INITIATIVES (CHI), A RELATED ORGANIZATION. THE CONSOLIDATED FOOTNOTE READS AS FOLLOWS: ""THE PROVISION FOR BAD DEBTS IS BASED UPON MANAGEMENT'S ASSESSMENT OF HISTORICAL AND EXPECTED NET COLLECTIONS, TAKING INTO CONSIDERATION HISTORICAL BUSINESS AND ECONOMIC CONDITIONS, TRENDS IN HEALTH CARE COVERAGE AND OTHER COLLECTION INDICATORS. MANAGEMENT ROUTINELY ASSESSES THE ADEQUACY OF THE ALLOWANCES FOR UNCOLLECTIBLE ACCOUNTS BASED UPON HISTORICAL WRITE-OFF EXPERIENCE BY PAYOR CATEGORY. THE RESULTS OF THESE REVIEWS ARE USED TO MODIFY, AS NECESSARY, THE PROVISION FOR BAD DEBTS AND TO ESTABLISH APPROPRIATE ALLOWANCES FOR UNCOLLECTIBLE NET PATIENT ACCOUNTS RECEIVABLE. AFTER SATISFACTION OF AMOUNTS DUE FROM INSURANCE, CHI FOLLOWS ESTABLISHED GUIDELINES FOR PLACING CERTAIN PATIENT BALANCES WITH COLLECTION AGENCIES, SUBJECT TO THE TERMS OF CERTAIN RESTRICTIONS ON COLLECTION EFFORTS AS DETERMINED BY EACH FACILITY. IN ACCORDANCE WITH ACCOUNTING STANDARDS UPDATE (ASU) NO. 2011-07, PRESENTATION AND DISCLOSURE OF PATIENT SERVICES REVENUE, PROVISION FOR BAD DEBTS, AND ALLOWANCES FOR DOUBTFUL ACCOUNTS FOR CERTAIN HEALTH ENTITIES, THE PROVISION FOR BAD DEBTS IS PRESENTED ON THE CONSOLIDATED STATEMENT OF OPERATIONS AS A DEDUCTION FROM PATIENT SERVICES REVENUES (NET OF CONTRACTUAL ALLOWANCES AND DISCOUNTS) SINCE CHI ACCEPTS AND TREATS ALL PATIENTS WITHOUT REGARD TO THE ABILITY TO PAY."""

Community benefit & methodology for determining medicare costs Schedule H, Part III, Line 8
"USING ESSENTIALLY THE SAME MEDICARE COST REPORT PRINCIPLES AS TO THE ALLOCATION OF GENERAL SERVICES COSTS AND ""APPORTIONMENT"" METHODS, THE ""CHI WORKBOOK"" CALCULATES A PAYERS' GROSS ALLOWABLE COSTS BY SERVICE (SO AS TO FACILITATE A CORRESPONDING COMPARISON BETWEEN GROSS ALLOWABLE COSTS AND ULTIMATE PAYMENTS RECEIVED). THE TERM ""GROSS ALLOWABLE COSTS"" MEANS COSTS BEFORE ANY DEDUCTIBLES OR CO-INSURANCE ARE SUBTRACTED. SAINT CLARE'S HOSPITAL, INC.'S ULTIMATE REIMBURSEMENT WILL BE REDUCED BY ANY APPLICABLE COPAYMENT/ DEDUCTIBLE. WHERE MEDICARE IS THE SECONDARY INSURER, AMOUNTS DUE FROM THE INSURED'S PRIMARY PAYER WERE NOT SUBTRACTED FROM MEDICARE ALLOWABLE COSTS BECAUSE THE AMOUNTS ARE TYPICALLY IMMATERIAL. ALTHOUGH NOT PRESENTED ON THE MEDICARE COST REPORT, IN ORDER TO FACILITATE A MORE ACCURATE UNDERSTANDING OF THE ""TRUE"" COST OF SERVICES (FOR ""SHORTFALL"" PURPOSES) THE CHI WORKBOOK ALLOWS A HEALTH CARE FACILITY NOT TO OFFSET COSTS THAT MEDICARE CONSIDERS TO BE NON-ALLOWABLE, BUT FOR WHICH THE FACILITY CAN LEGITIMATELY ARGUE ARE RELATED TO THE CARE OF THE FACILITY'S PATIENTS. IN ADDITION, ALTHOUGH NOT REPORTABLE ON THE MEDICARE COST REPORT, THE CHI WORKBOOK INCLUDES THE COST OF SERVICES THAT ARE PAID VIA A SET FEE-SCHEDULE RATHER THAN BEING REIMBURSED BASED ON COSTS (E.G. OUTPATIENT CLINICAL LABORATORY). FINALLY, THE CHI WORKBOOK ALLOWS A FACILITY TO INCLUDE OTHER HEALTH CARE SERVICES PERFORMED BY A SEPARATE FACILITY (SUCH AS A PHYSICIAN PRACTICE) THAT ARE MAINTAINED ON SEPARATE BOOKS AND RECORDS (AS OPPOSED TO THE MAIN FACILITY'S BOOKS AND RECORDS WHICH HAS ITS COSTS OF SERVICE INCLUDED WITHIN A COST REPORT). TRUE COSTS OF MEDICARE COMPUTED USING THIS METHODOLOGY: TOTAL MEDICARE REVENUE: $73,851,716 TOTAL MEDICARE COSTS: $87,023,656 SHORTFALL: $(13,171,940) SAINT CLARE'S HOSPITAL, INC. BELIEVES THAT EXCLUDING MEDICARE LOSSES FROM COMMUNITY BENEFIT MAKES THE OVERALL COMMUNITY BENEFIT REPORT MORE CREDIBLE FOR THESE REASONS: UNLIKE SUBSIDIZED AREAS SUCH AS BURN UNITS OR BEHAVIORAL-HEALTH SERVICES, MEDICARE IS NOT A DIFFERENTIATING FEATURE OF TAX-EXEMPT HEALTH CARE ORGANIZATIONS. IN FACT, FOR-PROFIT HOSPITALS FOCUS ON ATTRACTING PATIENTS WITH MEDICARE COVERAGE, ESPECIALLY IN THE CASE OF WELL-PAID SERVICES THAT INCLUDE CARDIAC AND ORTHOPEDICS. SIGNIFICANT EFFORT AND RESOURCES ARE DEVOTED TO ENSURING THAT HOSPITALS ARE REIMBURSED APPROPRIATELY BY THE MEDICARE PROGRAM. THE MEDICARE PAYMENT ADVISORY COMMISSION (MEDPAC), AN INDEPENDENT CONGRESSIONAL AGENCY, CAREFULLY STUDIES MEDICARE PAYMENT AND THE ACCESS TO CARE THAT MEDICARE BENEFICIARIES RECEIVE. THE COMMISSION RECOMMENDS PAYMENT ADJUSTMENTS TO CONGRESS ACCORDINGLY. THOUGH MEDICARE LOSSES ARE NOT INCLUDED BY CATHOLIC HOSPITALS AS COMMUNITY BENEFIT, THE CATHOLIC HEALTH ASSOCIATION GUIDELINES ALLOW HOSPITALS TO COUNT AS COMMUNITY BENEFIT SOME PROGRAMS THAT SPECIFICALLY SERVE THE MEDICARE POPULATION. FOR INSTANCE, IF HOSPITALS OPERATE PROGRAMS FOR PATIENTS WITH MEDICARE BENEFITS THAT RESPOND TO IDENTIFIED COMMUNITY NEEDS, GENERATE LOSSES FOR THE HOSPITAL, AND MEET OTHER CRITERIA, THESE PROGRAMS CAN BE INCLUDED IN THE CHA FRAMEWORK IN CATEGORY C AS ""SUBSIDIZED HEALTH SERVICES."" MEDICARE LOSSES ARE DIFFERENT FROM MEDICAID LOSSES, WHICH ARE COUNTED IN THE CHA COMMUNITY BENEFIT FRAMEWORK, BECAUSE MEDICAID REIMBURSEMENTS GENERALLY DO NOT RECEIVE THE LEVEL OF ATTENTION PAID TO MEDICARE REIMBURSEMENT. MEDICAID PAYMENT IS LARGELY DRIVEN BY WHAT STATES CAN AFFORD TO PAY, AND IS TYPICALLY SUBSTANTIALLY LESS THAN WHAT MEDICARE PAYS."

Collection practices for patients eligible for financial assistance Schedule H, Part III, Line 9b
SAINT CLARE'S HOSPITAL, INC.'S DEBT COLLECTION POLICY PROVIDES THAT SAINT CLARE'S HOSPITAL, INC. WILL PERFORM A REASONABLE REVIEW OF EACH INPATIENT ACCOUNT PRIOR TO TURNING AN ACCOUNT OVER TO A THIRD-PARTY COLLECTION AGENT AND PRIOR TO INSTITUTING ANY LEGAL ACTION FOR NON-PAYMENT, TO ASSURE THAT THE PATIENT AND PATIENT GUARANTOR ARE NOT ELIGIBLE FOR ANY ASSISTANCE PROGRAM (E.G. MEDICAID) AND DO NOT QUALIFY FOR COVERAGE THROUGH SAINT CLARE'S HOSPITAL, INC. COMMUNITY ASSISTANCE POLICY. AFTER HAVING BEEN TURNED OVER TO A THIRD-PARTY COLLECTION AGENT, ANY PATIENT ACCOUNT THAT IS SUBSEQUENTLY DETERMINED TO MEET THE SAINT CLARE'S HOSPITAL, INC.COMMUNITY ASSISTANCE POLICY IS REQUIRED TO BE RETURNED IMMEDIATELY BY THE THIRD-PARTY COLLECTION AGENT TO SAINT CLARE'S HOSPITAL, INC. FOR APPROPRIATE FOLLOW-UP. SAINT CLARE'S HOSPITAL, INC. REQUIRES ITS THIRD-PARTY COLLECTION AGENTS TO INCLUDE A MESSAGE ON ALL STATEMENTS INDICATING THAT IF A PATIENT OR PATIENT GUARANTOR MEETS CERTAIN STIPULATED INCOME REQUIREMENTS, THE PATIENT OR PATIENT GUARANTOR MAY BE ELIGIBLE FOR FINANCIAL ASSISTANCE. ALL OF CATHOLIC HEALTH INITIATIVES' (CHI) HOSPITALS' CONTRACTS WITH THIRD PARTY COLLECTION AGENCIES INCLUDE THE FOLLOWING STANDARDS: * NEITHER CHI HOSPITALS NOR THEIR COLLECTION AGENCIES WILL REQUEST BENCH OR ARREST WARRANTS AS A RESULT OF NON-PAYMENT; * NEITHER CHI HOSPITALS NOR THEIR COLLECTION AGENCIES WILL SEEK LIENS THAT WOULD REQUIRE THE SALE OR FORECLOSURE OF A PRIMARY RESIDENCE; AND * NO CATHOLIC HEALTH INITIATIVES' COLLECTION AGENCY MAY SEEK COURT ACTION WITHOUT HOSPITAL APPROVAL. FINALLY, COLLECTION AGENCIES ARE TRAINED ON THE CATHOLIC HEALTH INITIATIVES MISSION, CORE VALUES AND STANDARD OF CONDUCT TO MAKE SURE ALL PATIENTS ARE TREATED WITH DIGNITY AND RESPECT.

Community Served by Needs Assessment Schedule H, Part V Section B, Line 3
(1) SAINT CLARES HOSPITAL, INC. - COMMUNITY ENGAGEMENT AND FEEDBACK WERE AN INTEGRAL PART OF THE CHNA PROCESS. SAINT CLARE'S SOUGHT COMMUNITY INPUT THROUGH FOCUS GROUPS WITH COMMUNITY MEMBERS, KEY INFORMANT INTERVIEWS WITH COMMUNITY STAKEHOLDERS, AND/OR INCLUSION OF COMMUNITY PARTNERS IN THE PRIORITIZATION AND IMPLEMENTATION PLANNING PROCESS. PUBLIC HEALTH AND HEALTH CARE PROFESSIONALS SHARED KNOWLEDGE AND EXPERTISE ABOUT HEALTH ISSUES, AND LEADERS AND REPRESENTATIVES OF NON-PROFIT AND COMMUNITY-BASED ORGANIZATIONS PROVIDED INSIGHT ON THE COMMUNITY SERVED BY SAINT CLARE'S, INCLUDING MEDICALLY UNDERSERVED, LOW INCOME, AND MINORITY POPULATIONS. RESEARCH COMPONENTS INCLUDED TELEPHONE SURVEYS AND FOCUS GROUPS WITH COMMUNITY RESIDENTS, AS WELL AS DATA FROM THE HEALTH RESEARCH AND EDUCATIONAL TRUST OF NEW JERSEY.;

Community Served by Needs Assessment Schedule H, Part V Section B, Line 3
(2) SAINT CLARE'S HOSPITAL, DOVER GENERAL - SAINT CLARE'S HOSPITAL TEAMED UP WITH OTHER COMMUNITY PARTNERS TO CONDUCT THEIR CHNA. RESEARCH COMPONENTS INCLUDED TELEPHONE SURVEYS AND FOCUS GROUPS WITH COMMUNITY RESIDENTS, AS WELL AS DATA FROM THE HEALTH RESEARCH AND EDUCATIONAL TRUST OF NEW JERSEY.;

Community Served by Needs Assessment Schedule H, Part V Section B, Line 3
(3) SAINT CLARE'S HOSPITAL, BOONTON TOWNSHIP - SAINT CLARE'S HOSPITAL TEAMED UP WITH OTHER COMMUNITY PARTNERS TO CONDUCT THEIR CHNA. RESEARCH COMPONENTS INCLUDED TELEPHONE SURVEYS AND FOCUS GROUPS WITH COMMUNITY RESIDENTS, AS WELL AS DATA FROM THE HEALTH RESEARCH AND EDUCATIONAL TRUST OF NEW JERSEY.;

Community Served by Needs Assessment Schedule H, Part V Section B, Line 3
(4) SAINT CLARE'S HOSPITAL, SUSSEX - SAINT CLARE'S HOSPITAL TEAMED UP WITH OTHER COMMUNITY PARTNERS TO CONDUCT THEIR CHNA. RESEARCH COMPONENTS INCLUDED TELEPHONE SURVEYS AND FOCUS GROUPS WITH COMMUNITY RESIDENTS, AS WELL AS DATA FROM THE HEALTH RESEARCH AND EDUCATIONAL TRUST OF NEW JERSEY.;

Other Hospital Facilities included in Needs Assessment Schedule H, Part V Section B, Line 4
(1) SAINT CLARES HOSPITAL, INC. - THE CHNA WAS DONE IN COLLABORATION WITH THE COMMUNITY HEALTH ALLIANCE OF NORTHWESTERN CENTRAL NEW JERSEY, A COLLABORATIVE OF NINE HOSPITALS AND HEALTH SYSTEMS IN CENTRAL NEW JERSEY, TO ASSESS REGIONAL HEALTH NEEDS.;

Other Hospital Facilities included in Needs Assessment Schedule H, Part V Section B, Line 4
(2) SAINT CLARE'S HOSPITAL, DOVER GENERAL - THE CHNA WAS DONE IN COLLABORATION WITH THE COMMUNITY HEALTH ALLIANCE OF NORTHWESTERN CENTRAL NEW JERSEY, A COLLABORATIVE OF NINE HOSPITALS AND HEALTH SYSTEMS IN CENTRAL NEW JERSEY, TO ASSESS REGIONAL HEALTH NEEDS.;

Other Hospital Facilities included in Needs Assessment Schedule H, Part V Section B, Line 4
(3) SAINT CLARE'S HOSPITAL, BOONTON TOWNSHIP - THE CHNA WAS DONE IN COLLABORATION WITH THE COMMUNITY HEALTH ALLIANCE OF NORTHWESTERN CENTRAL NEW JERSEY, A COLLABORATIVE OF NINE HOSPITALS AND HEALTH SYSTEMS IN CENTRAL NEW JERSEY, TO ASSESS REGIONAL HEALTH NEEDS.;

Other Hospital Facilities included in Needs Assessment Schedule H, Part V Section B, Line 4
(4) SAINT CLARE'S HOSPITAL, SUSSEX - THE CHNA WAS DONE IN COLLABORATION WITH THE COMMUNITY HEALTH ALLIANCE OF NORTHWESTERN CENTRAL NEW JERSEY, A COLLABORATIVE OF NINE HOSPITALS AND HEALTH SYSTEMS IN CENTRAL NEW JERSEY, TO ASSESS REGIONAL HEALTH NEEDS.;

LINES 2, 4 & 5: NEEDS ASSESSMENT, COMMUNITY INFORMATION & PROMOTION OF COMMUNITY HEALTH SCHEDULE H, PART VI
"SAINT CLARE'S HOSPITAL, INC. STATEMENT OF COMMUNITY BENEFIT AND NEEDS ASSESSMENT ORGANIZATION'S MISSION, VISION, AND TAX-EXEMPT PURPOSE SAINT CLARE'S HOSPITAL, INC. WAS FOUNDED TO ALLEVIATE A SHORTAGE OF HOSPITAL BEDS IN THE COMMUNITY IN 1953. AS THE FIRST CATHOLIC HOSPITAL TO SERVE THE COMMUNITY, SAINT CLARE'S HOSPITAL EMBRACED THE MISSION OF THE FOUNDING RELIGIOUS CONGREGATION, WHICH HAS SINCE JOINED WITH OTHER RELIGIOUS CONGREGATIONS TO FORM CATHOLIC HEALTH INITIATIVES. THE MISSION OF SAINT CLARE'S HOSPITAL, INC. IS TO DEVELOP A HEALTHY COMMUNITY AND PROVIDE CARE TO ALL IN NEED. ITS BOARD OF DIRECTORS IS COMPRISED OF INDEPENDENT COMMUNITY REPRESENTATIVES. SAINT CLARE'S HOSPITAL, INC. OPERATES A 24-HOUR EMERGENCY ROOM 365 DAYS PER YEAR. THAT EMERGENCY ROOM IS OPEN TO ALL INDIVIDUALS REGARDLESS OF ABILITY TO PAY. SAINT CLARE'S HOSPITAL, INC. HAS AN OPEN MEDICAL STAFF, PARTICIPATES IN MEDICARE AND MEDICAID, AND HAS AN ACTIVE CHARITY CARE PROGRAM. COMMUNITY SERVICE HAS ALWAYS BEEN AT THE CORE OF SAINT CLARE'S HOSPITAL, INC.'S ACTIVITIES. EACH YEAR, SERVICES AND PROGRAMS ARE EXPANDED TO PROMOTE A HEALTHY COMMUNITY. THE PROGRAMS AND SERVICES DESCRIBED THROUGHOUT THIS REPORT NOT ONLY SERVE THE COMMUNITY, BUT ALSO WORK TO PROVIDE THE LOCAL COMMUNITY BASIC HEALTH CARE, HEALTH AND SAFETY EDUCATION, AND COOPERATIVE PROGRAMS TO THE PEOPLE OF MORRIS COUNTY. SAINT CLARE'S HOSPITAL, INC. IS INCLUDED IN THE OFFICIAL CATHOLIC DIRECTORY AS A TAX-EXEMPT HOSPITAL. SAINT CLARE'S HOSPITAL, INC., WAS FORMED IN 1953 AS A NOT-FOR-PROFIT, GENERAL ACUTE CARE HOSPITAL. THE CURRENT LAYOUT OF SAINT CLARE'S HOSPITAL INCLUDES FOUR (4) CAMPUSES: DENVILLE, DOVER, SUSSEX AND BOONTON. THE INPATIENT BED COMPLIMENT IS AS FOLLOWS: DENVILLE, DOVER, AND SUSSEX COMBINED HAVE 374 ACUTE CARE BEDS; BOONTON HAS 104 BEDS DEVOTED TO BEHAVIORAL HEALTH. AS A TAX-EXEMPT 501(C)(3) LONG TERM CARE FACILITY, SAINT CLARE'S HOSPITAL INC. IS COMMITTED TO SERVING THE NEEDS OF COMMUNITY MEMBERS WITHOUT REGARD TO ONE'S ABILITY TO PAY. SAINT CLARE'S HOSPITAL INC. REQUIRES RESIDENTS TO DEMONSTRATE THE ABILITY TO PAY THE FACILITY FEES AND CHARGES, WHICH ARE SET AT A RATE THAT IS AFFORDABLE TO A SIGNIFICANT SEGMENT OF THE ELDERLY RESIDING IN THE AREA. HOWEVER, THE HOSPITAL WILL NOT FORCE A RESIDENT TO MOVE FROM THE FACILITY IF THE INDIVIDUAL AND/OR THE INDIVIDUAL'S FAMILY BECOMES UNABLE TO PAY THE FACILITY CHARGES. SAINT CLARE'S HOSPITAL INC. IS ALSO COMMITTED TO THE PROMOTION OF HEALTHIER COMMUNITIES. SAINT CLARE'S HOSPITAL INC. IS PROUD OF ITS CATHOLIC HERITAGE AND ITS ABILITY TO PROVIDE DIRECT AND INDIRECT SUPPORT TO THE COMMUNITIES IT SERVES. COMMUNITY BENEFIT APPROACH WITH HOSPITALS IN DENVILLE, DOVER, BOONTON, AND SUSSEX, NEW JERSEY, ST. CLARE'S HEALTH SYSTEM SERVES OVER 60 TOWNS IN NORTHWESTERN NEW JERSEY AND NORTHEASTERN PENNSYLVANIA. MORRIS COUNTY: THE MOST RECENT 2012 ESTIMATES BASED ON THE LAST OFFICIAL COUNT FROM 2010 OF THE U.S. CENSUS BUREAU REFLECT THE COUNTY AS AN AFFLUENT, OLDER, AND DIVERSE COMMUNITY. MORRIS COUNTY HAS A MEDIAN AGE OF 41.3, UP FROM 38 IN 2000; MORRIS COUNTY 2010 MEDIAN INCOME WAS $96,747; THE BABY BOOMERS BORN BETWEEN 1946 AND 1964 ARE THE LARGEST GENERATION WITH MANY REACHING THE STATUS OF A SENIOR CITIZEN; AND THE COUNTY UNEMPLOYMENT RATE IS 6.8% AS OF JUNE 2013. ACCORDING TO THE 2010 US CENSUS DATA, THERE ARE MORE THAN 56,000 HISPANICS IN MORRIS COUNTY. THIS REPRESENTS APPROXIMATELY 11% OF THE MORRIS COUNTY POPULATION. TOWN OF DOVER: DOVER HAS THE LARGEST HISPANIC POPULATION (70%); LOWEST MEDIAN INCOME IN 2012 OF $66,763; AND THE HIGHEST PERCENTAGE OF PERSONS LIVING BELOW THE POVERTY LINE IN ALL OF MORRIS COUNTY. THE BUREAU OF PRIMARY HEALTH CARE HAS DESIGNATED MORRIS COUNTY AND THE NEIGHBORING TOWN OF DOVER AS AREAS WITH ""MEDICALLY UNDERSERVED POPULATIONS."" SAINT CLARE'S HOSPITAL, INC. HAS BEEN INTIMATELY INVOLVED IN COMMUNITY HEALTH COLLABORATION AND SPEARHEADED THE ORIGINAL TEAM TO LOOK AT AREA HEALTH ISSUES, SET PRIORITIES, AND PLAN FOR IMPROVEMENT. SAINT CLARE'S HOSPITAL, INC. CONTINUES OUR DEEP COMMITMENT AND INVOLVEMENT IN THE COMMUNITY HEALTH COLLABORATIVE TODAY. SAINT CLARE'S HOSPITAL INC.'S COMMUNITY BENEFIT PLAN IS BASED ON OUR UNDERSTANDING OF UNIQUE COMMUNITIES' NEEDS DERIVED FROM THE COLLABORATIVE NEEDS ASSESSMENTS, FOCUS GROUPS, AND SURVEYS CONDUCTED WITH OUR COMMUNITY PARTNERS. THE COMMUNITY HEALTH COLLABORATIVE (CHC) WAS FORMED AS A COLLABORATIVE ENTITY OF HEALTH AND HUMAN SERVICE PROVIDERS WITH A GENERAL DESIRE TO REDUCE DUPLICATION OF EFFORTS, THEREBY PROVIDING A MORE EFFICIENT USE OF LIMITED RESOURCES. ADDITIONALLY, IT WAS GENERALLY RECOGNIZED THAT THE HEALTH OF THE COMMUNITY WAS NOT THE RESPONSIBILITY OF ANY ONE ENTITY, BUT RATHER REQUIRED THE COORDINATED EFFORTS OF MANY ENTITIES - PUBLIC AND PRIVATE - TO REALIZE AN IMPROVED HEALTH STATUS OF A COMMUNITY. THE CHC HAS BEEN WORKING FOR SEVERAL YEARS TO MEASURE AND IMPROVE THE HEALTH STATUS OF THE COMMUNITY. THE COMMUNITY HEALTH COLLABORATIVE COMPLETED AN IN-DEPTH COMMUNITY HEALTH STATUS REPORT IN JANUARY 2010. THE REPORT REFLECTS THE COMPILATION AND ANALYSIS OF EXTENSIVE DATA SOURCES TO IDENTIFY ISSUES HAVING A SIGNIFICANT IMPACT ON THE HEALTH AND GENERAL WELL-BEING OF AREA RESIDENTS. SUMMARY OF ASSESSMENT FINDINGS TEN KEY FACTORS HAVING THE GREATEST IMPACT ON THE OVERALL WELLNESS OF THE AREA EMERGED IN THE COMMUNITY HEALTH STATUS REVIEW. THE TEN ISSUES WERE THEN PRIORITIZED THROUGH A GROUP PRIORITIZATION PROCESS. COMMUNITY STAKEHOLDERS WERE INVITED TO PRIORITIZE THE ISSUES OF MOST IMPORTANCE TO THEM, KEEPING IN MIND HOW AWARE THE COMMUNITY WAS OF EACH ISSUE AND HOW DIFFICULT THE ISSUE WAS TO CHANGE. AS A RESULT, THE ISSUES FELL INTO THE FOLLOWING ORDER OF PRIORITY. 1. HEALTHY BEHAVIORS 2. CHILD AND MATERNAL HEALTH 3. SMOKING AND TOBACCO 4. ACCESS TO HEALTH CARE SERVICES 5. DISEASE AND MORTALITY 6. UNINTENTIONAL INJURIES 7. ENVIRONMENT 8. PERSONAL AND FAMILY SAFETY 9. INCOME, EMPLOYMENT, AND EDUCATION 10. ALCOHOL AND DRUGS PRIORITIZATION SESSIONS WERE HELD IN OCTOBER 2012 TO REVIEW THE RESULTS OF THE COMPLETED COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA) OF THE SAINT CLARE'S SERVICE AREA. THROUGH FACILITATED DISCUSSION, THE PARTICIPANTS DEVELOPED A MASTER LIST OF COMMUNITY HEALTH NEEDS DERIVED FROM QUANTITATIVE RESULTS OF THE CHNA STUDY AND THE EXPERT KNOWLEDGE OF GROUP PARTICIPANTS. THE FOLLOWING KEY COMMUNITY HEALTH ISSUES EMERGED: PHYSICAL ACTIVITY AND NUTRITION ACCESS TO CARE MENTAL HEALTH AND WELL-BEING SUBSTANCE USE AND ABUSE (CONTINUED)"

LINES 2, 4 & 5: NEEDS ASSESSMENT, COMMUNITY INFORMATION & PROMOTION OF COMMUNITY HEALTH SCHEDULE H, PART VI
"SAINT CLARE'S HOSPITAL, INC. STATEMENT OF COMMUNITY BENEFIT AND NEEDS ASSESSMENT (CONTINUED) QUALITATIVE DESCRIPTION OF COMMUNITY BENEFIT COMMUNITY OUTREACH FOR THE POOR SAINT CLARE'S HOSPITAL IS IMPROVING THE HEALTH AND QUALITY OF LIFE FOR PEOPLE IN THE COMMUNITIES WE SERVE. OUR GOAL IS TO PROVIDE OUR COMMUNITIES WITH COMPASSIONATE AND LEADING-EDGE CARE BY HAVING THE BEST PHYSICIANS, THE HIGHEST LEVEL OF TECHNOLOGY, AND STATE-OF-THE-ART FACILITIES. THROUGH ITS OUTREACH EFFORTS, SAINT CLARE'S HOSPITAL CONTINUES TO ADDRESS THE NEEDS OF THE COMMUNITY BY PROVIDING FREE EDUCATIONAL, SOCIAL, AND PREVENTATIVE HEALTH PROGRAMS TO ENSURE ACCESS TO THESE VITAL SERVICES BY THOSE PEOPLE WHO MIGHT NOT OTHERWISE BE ABLE TO AFFORD THEM. SISTER CATHERINE COMMUNITY HEALTH CENTER CLINIC (""THE CLINIC"") HAS BEEN SERVING THE COMMUNITY FOR MORE THAN 20 YEARS PROVIDING HIGH QUALITY, COMPASSIONATE CARE TO THE VULNERABLE, POOR, UNDERSERVED AND UNINSURED. THE CLINIC OFFERS COMPREHENSIVE SERVICES FOR ALL FAMILY HEALTH NEEDS, INCLUDING INTERNAL MEDICINE, OBSTETRICS, GYNECOLOGY, AND PEDIATRICS, ALL IN A SINGLE CONVENIENT LOCATION. THE CENTER IS STAFFED WITH BOARD-CERTIFIED PHYSICIANS WHO SPECIALIZE IN INTERNAL MEDICINE, PEDIATRICS, AND OBSTETRICS, NURSES, SOCIAL WORKERS, DIETICIANS, FINANCIAL COUNSELORS, AND SUPPORT STAFF. IN ADDITION, IT COLLABORATES WITH THE MORRIS COUNTY OFFICE OF TEMPORARY ASSISTANCE TO PROVIDE AN OUT-STATION MEDICAID WORKER TO ASSIST CURRENT CLINIC CLIENTS IN APPLYING FOR MEDICAID PROGRAMS. APPROXIMATELY 95% OF NON-CLINICAL STAFF IS BILINGUAL. LATINO AND ASIAN COMMUNITY OUTREACH: THE OUTREACH PROGRAM WORKS IN COORDINATION WITH MULTIPLE COMMUNITY ORGANIZATIONS SUCH AS HEAD START SCHOOL, MORRIS COUNTY OFFICE OF HISPANIC AFFAIRS, MORRIS COUNTY PROSECUTORS OFFICE, MORRIS COUNTY PREVENTION IS KEY, NORWESCAP, EL PRIMER PASO, AND COMMISSION OF THE BLIND, TO OFFER A WIDE VARIETY OF HEALTH AND WELLNESS PROGRAMS TO THE HISPANIC COMMUNITY. IN ADDITION, THERE IS A FOCUS ON ENSURING THAT THE ASIAN, HINDU, AND CHINESE COMMUNITIES RECEIVE EDUCATION AND INFORMATION ON DISEASES THAT MAY IMPACT THEIR COMMUNITY. COLLABORATIVE EFFORTS WITH COMMUNITY MINISTRY: SAINT CLARE'S HOSPITAL, INC. WORKS IN CONCERT WITH FAITH COMMUNITIES IN A HOLISTIC APPROACH TO IMPROVE HEALTH. THE CONGREGATIONAL HEALTH MINISTRY PROVIDES EDUCATION, GUIDANCE, SUPPORT, AND RESOURCES TO HELP CONGREGATIONS PROMOTE SPIRITUAL, EMOTIONAL, AND PHYSICAL WELL-BEING IN MORRIS, SUSSEX, AND WARREN COUNTIES. THE PROGRAM ASSISTS PASTORS, NURSES, AND OTHER INTERESTED MEMBERS OF EACH CONGREGATION TO SELECT AND MAINTAIN A COMMITTEE OR HEALTH CABINET THAT MEETS REGULARLY TO ASSESS THE HEALTH NEEDS OF THE CONGREGATION AND DETERMINE HOW TO ADDRESS THOSE NEEDS MOST EFFECTIVELY. EACH PROGRAM IS UNIQUELY TAILORED AND PLANNED WITH THE CONGREGATION. FINANCIAL COUNSELING / CHARITY CARE: FINANCIAL COUNSELORS ARE AVAILABLE TO HELP PATIENTS IN THE CLINICS AT SAINT CLARE'S HOSPITAL, INC. THEY ASSIST WITH APPLICATION COMPLETION FOR THE CHARITY CARE PROGRAM, RUN BY THE STATE OF NEW JERSEY. COUNSELORS OFFER PEACE OF MIND TO PATIENTS DEALING WITH MEDICAL CONCERNS. MEDICAID WORKERS ARE AVAILABLE TO ASSIST WITH APPLICATIONS TO THE GOVERNMENT PROGRAM. SOCIAL WORKERS ASSIST PATIENTS WITH COMMUNITY RESOURCES. PUBLIC HEALTH NURSE SERVICES COLLABORATION: SAINT CLARE'S HOSPITAL, INC. HAS PARTNERED WITH THE LOCAL COMMUNITY HEALTH DEPARTMENT TO PROVIDE OUTREACH PROGRAMS THAT FOCUS ON TOTAL FAMILY HEALTH, COMMUNITY OUTREACH, EDUCATION, HEALTH SCREENINGS, AND COMMUNICABLE DISEASE INVESTIGATION. OUR OUTREACH IS THERE TO COMPLEMENT THE SERVICES PROVIDED BY THE TOWN OF DOVER. THE GOAL IS TO EDUCATE AND INFORM THE MULTIGENERATIONAL AND CULTURALLY DIVERSE COMMUNITY ABOUT HEALTH AND SOCIAL ISSUES AFFECTING THEM. THE EDUCATIONAL PROGRAMS ARE FREE OF CHARGE AND HELD AT VARIOUS ORGANIZATIONS AND LOCATIONS, THUS PROVIDING EASY ACCESS TO COMMUNITY RESIDENTS. PROGRAMS ARE OFFERED IN BOTH ENGLISH AND SPANISH. THESE PROGRAMS ARE REPEATED THROUGHOUT THE YEAR TO MAXIMIZE OUTREACH TO THE COMMUNITY. NEW JERSEY SELF-HELP CLEARINGHOUSE: SINCE 1981, SAINT CLARE'S HOSPITAL, INC. SELF-HELP CLEARINGHOUSE HAS ASSISTED PEOPLE IN FINDING AND CREATING SELF-HELP SUPPORT GROUPS WITHIN THE STATE AND COUNTRY. ASSISTANCE IS PROVIDED THROUGH A DATABASE OF MORE THAN 6,750 SUPPORT GROUPS FOR ALL TYPES OF NEEDS: ADDICTIONS, DISABILITIES, LOSS OF A LOVED ONE, PARENTING SITUATIONS, ABUSE SITUATIONS, AND OTHER STRESSFUL LIFE SITUATIONS. OVER THE LAST 30 YEARS, THIS FREE SERVICE HAS HELPED MORE THAN 120,000 PEOPLE FIND SUPPORT GROUPS. SUPPORTED COMMUNITY LIVING PROGRAM: SAINT CLARE'S HOSPITAL, INC. PROVIDES IN-HOME SERVICES TO ADULT POPULATIONS (18 YEARS OR OLDER) WHO SUFFER FROM PSYCHIATRIC DISORDERS. COUNSELORS WORK WITH PERSONS WHO ARE LIVING INDEPENDENTLY, BUT NEED ASSISTANCE WITH INTEGRATION IN TO THE LOCAL COMMUNITY AND/OR IMPROVEMENT IN HOUSEHOLD MANAGEMENT/ACTIVITIES OF DAILY LIVING SKILLS. TRANSITIONS: SAINT CLARE'S HOSPITAL, INC. ASSISTS ADULTS WITH PSYCHIATRIC ILLNESSES AND/OR CO-OCCURRING DISORDERS AS A STEP DOWN FROM AN INPATIENT STAY OR TO DIVERT INPATIENT ADMISSIONS. PROGRAMMING EMPHASIZES COMPLETE WELLNESS AND RECOVERY AND INCLUDES A VARIETY OF EVIDENCED-BASED TREATMENT OPTIONS."

Patient education of eligibility for assistance. Schedule H, Part VI, Line 3
SAINT CLARE'S HOSPITAL, INC. INCLUDES INFORMATION CONCERNING ITS FINANCIAL ASSISTANCE POLICY ON ITS WEBSITE. IN ADDITION, SAINT CLARE'S HOSPITAL, INC. PROMINENTLY DISPLAYS ITS FINANCIAL ASSISTANCE POLICY IN BOTH ENGLISH AND SPANISH IN OBVIOUS LOCATIONS THROUGHOUT THE HOSPITALS, INCLUDING THE EMERGENCY ROOMS AND OTHER PATIENT INTAKE AREAS, AS WELL AS IN SAINT CLARE'S HOSPITAL, INC. OUTPATIENT FACILITIES. IN ADDITION, SAINT CLARE'S HOSPITAL, INC. REGISTRATION CLERKS ARE TRAINED TO PROVIDE CONSULTATION TO THOSE WHO HAVE NO INSURANCE OR POTENTIALLY INADEQUATE INSURANCE CONCERNING THEIR FINANCIAL OPTIONS INCLUDING APPLICATION FOR MEDICAID AND FOR FINANCIAL ASSISTANCE UNDER SAINT CLARE'S HOSPITAL, INC.'S FINANCIAL ASSISTANCE POLICY. UPON REGISTRATION (AND ONCE ALL EMTALA REQUIREMENTS ARE MET), PATIENTS WHO ARE IDENTIFIED AS UNINSURED (AND NOT COVERED BY MEDICARE OR MEDICAID) ARE PROVIDED WITH A PACKET OF INFORMATION THAT ADDRESSES THE FINANCIAL ASSISTANCE POLICY AND PROCEDURES INCLUDING AN APPLICATION FOR ASSISTANCE. SAINT CLARE'S HOSPITAL, INC. REGISTRATION CLERKS READ THE ORGANIZATION'S MEDICAL ASSISTANCE POLICY TO THOSE WHO APPEAR TO BE INCAPABLE OF READING, AND PROVIDE TRANSLATORS FOR NON ENGLISH-SPEAKING INDIVIDUALS. SAINT CLARE'S HOSPITAL, INC. STAFF WILL ALSO ASSIST THE PATIENT/GUARANTOR WITH APPLYING FOR OTHER AVAILABLE COVERAGE (SUCH AS MEDICAID), IF NECESSARY. COUNSELORS ASSIST MEDICARE ELIGIBLE PATIENTS IN ENROLLMENT BY PROVIDING REFERRALS TO THE APPROPRIATE GOVERNMENT AGENCIES.

Affiliated health care system Schedule H, Part VI, Line 6
"SAINT CLARE'S HOSPITAL, INC., ALONG WITH ITS AFFILIATED NON-PROFIT AND FOR-PROFIT ENTITIES ARE PART OF CATHOLIC HEALTH INITIATIVES. CATHOLIC HEALTH INITIATIVES (CHI) IS A NATIONAL FAITH-BASED NONPROFIT HEALTH CARE ORGANIZATION WITH HEADQUARTERS IN ENGLEWOOD, COLORADO. CHI'S EXEMPT PURPOSE IS TO SERVE AS AN INTEGRAL PART OF ITS NATIONAL SYSTEM OF HOSPITALS AND OTHER CHARITABLE ENTITIES, WHICH ARE DESCRIBED AS MARKET-BASED ORGANIZATIONS, OR MBOS. AN MBO IS A DIRECT PROVIDER OF CARE OR SERVICES WITHIN A DEFINED MARKET AREA THAT MAY BE AN INTEGRATED HEALTH SYSTEM AND/OR A STAND-ALONE HOSPITAL OR OTHER FACILITY OR SERVICE PROVIDER. CHI SERVES AS THE PARENT CORPORATION OF ITS MBOS WHICH ARE COMPRISED OF 73 HOSPITALS; 40 LONG-TERM CARE, ASSISTED- AND RESIDENTIAL-LIVING FACILITIES; TWO COMMUNITY HEALTH-SERVICES ORGANIZATIONS; TWO ACCREDITED NURSING COLLEGES; AND HOME HEALTH AGENCIES. TOGETHER, THESE FACILITIES PROVIDED $762 MILLION IN CHARITY CARE AND COMMUNITY BENEFIT IN THE 2013 FISCAL YEAR, INCLUDING SERVICES FOR THE POOR, FREE CLINICS, EDUCATION, AND RESEARCH. CHI PROVIDES STRATEGIC PLANNING AND MANAGEMENT SERVICES AS WELL AS CENTRALIZED ""SHARED SERVICES"" FOR THE MBOS. THE PROVISION OF CENTRALIZED MANAGEMENT AND SHARED SERVICES - INCLUDING AREAS SUCH AS ACCOUNTING, HUMAN RESOURCES, PAYROLL AND SUPPLY CHAIN -- PROVIDES ECONOMIES OF SCALE AND PURCHASING POWER TO THE MBOS. THE COST SAVINGS ACHIEVED THROUGH CHI'S CENTRALIZATION ENABLE MBOS TO DEDICATE ADDITIONAL RESOURCES TO HIGH-QUALITY HEALTH CARE AND COMMUNITY OUTREACH SERVICES TO THE MOST VULNERABLE MEMBERS OF OUR SOCIETY. SAINT CLARE'S HOSPITAL, INC. OPERATES WITH ITS WHOLLY OWNED AFFILIATES AND ITS FUNDRAISING ARM, SAINT CLARE'S FOUNDATION, TO SERVE THE HEALTH CARE NEEDS OF THE MORRIS AND SUSSEX COUNTIES."

State filing of community benefit report Schedule H, Part VI, Line 7
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