TY 2016 Form 990 Schedule J

(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)
1NINE OFFICERDIR-SEE METHODIST HOSPITAL GROUP RETURN-SCHE	(i) (ii)	1,373,060 ------------- 0	1,005,385 ------------- 0	368,042 ------------- 0	26,000 ------------- 0	21,936 ------------- 0	2,794,423 ------------- 0	0 ------------- 0
2NINETEEN DIRECTORS-SEE METHODIST HOSPITAL GROUP RETURN-SCHE	(i) (ii)	0 ------------- 282,829	0 ------------- 20,864	91,351 ------------- 2,713	0 ------------- 23,700	0 ------------- 37,052	91,351 ------------- 367,158	0 ------------- 0
3ONE OFFICER-SEE METHODIST HOSPITAL GROUP RETURN-SCHE	(i) (ii)	694,412 ------------- 0	341,595 ------------- 0	166,223 ------------- 0	26,000 ------------- 0	34,827 ------------- 0	1,263,057 ------------- 0	0 ------------- 0
4SIX KEY EMPLOYEES-SEE METHODIST HOSPITAL GROUP RETURN-SCHE	(i) (ii)	3,057,092 ------------- 0	1,371,375 ------------- 0	634,342 ------------- 0	141,231 ------------- 0	185,484 ------------- 0	5,389,524 ------------- 0	0 ------------- 0
5FOUR HIGHEST PD EMPLOYEES-SEE HOSPITAL GROUP RETURN-SCHE	(i) (ii)	1,585,283 ------------- 0	603,273 ------------- 0	310,130 ------------- 0	90,200 ------------- 0	99,449 ------------- 0	2,688,335 ------------- 0	0 ------------- 0
6ONE FORMER KEY-SEE METHODIST HOSPITAL GROUP RETURN-SCHE	(i) (ii)	79,812 ------------- 0	119,821 ------------- 0	46,767 ------------- 0	181 ------------- 0	120 ------------- 0	246,701 ------------- 0	0 ------------- 0

Schedule J (Form 990) 2016

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
PART I, LINE 1A	TRAVEL FOR COMPANIONS: HOUSTON METHODIST HOSPITAL REQUIRES ALL EMPLOYEES INCLUDING OFFICERS TO PROVIDE WRITTEN SUBSTANTIATION OF EXPENSES RELATED TO THEIR BUSINESS TRAVEL THROUGH THE PROVISION OF DETAILED RECEIPTS IN ORDER TO RECEIVE APPROVAL FROM THEIR DIRECT SUPERIORS FOR REIMBURSEMENT IN ACCORDANCE WITH OUR CORPORATE POLICY ON TRAVEL AND OTHER BUSINESS EXPENSES. IN 2016, THE PRESIDENT/CEO HAD 1 TRIP APPROVED FOR ATTENDANCE AT AN OUT OF STATE MEETING WHERE IT WAS DEEMED APPROPRIATE BY THE CHAIR OF OUR BOARD THAT THE ATTENDANCE OF THE PRESIDENT/CEO'S SPOUSE (AND THE RELATED EXPENSES FOR HER TRAVEL TO THESE MEETINGS) WAS INTEGRAL TO CONDUCTING EFFECTIVE METHODIST BUSINESS AT THESE MEETINGS. PART I, LINE 4A: HOUSTON METHODIST HOSPITAL HAS A FORMAL SEVERANCE PLAN. ELIGIBLE EMPLOYEES INCLUDE ALL FULL-TIME AND PART-TIME STAFF (NOT TEMPORARY OR PRN), INCLUDING HOURLY STAFF, UP THROUGH SENIOR VICE PRESIDENTS PROVIDED THEY WORK AT LEAST 20 HOURS PER WEEK AND ARE NOT OTHERWISE COVERED BY A PHYSICIAN EMPLOYMENT AGREEMENT. THE PLAN ONLY PROVIDES SALARY AND BENEFITS IN THE EVENT AN ELIGIBLE EMPLOYEE IS INVOLUNTARILY TERMINATED DUE TO THE ELIMINATION OF THEIR POSITION OR IF THEIR CURRENT POSITION IS SIGNIFICANTLY IMPACTED BY AN ORGANIZATIONAL RESTRUCTURING OR CHANGE IN REQUIREMENT AND A COMPARABLE POSITION IS NOT AVAILABLE WITHIN THE ORGANIZATION. THE ELIGIBLE PERSON MUST ALSO SIGN A TERMINATION AGREEMENT IN ORDER TO RECEIVE SALARY CONTINUATION AND BENEFITS UNDER THE PLAN TO WHICH THEY WOULD NOT NORMALLY BE ELIGIBLE TO RECEIVE UNDER A VOLUNTARY RESIGNATION. PURSUANT TO TREASURY REG SECTION 1 6033-2(D)(5), HOUSTON METHODIST HOSPITAL HAS ELECTED TO REPORT INFORMATION ABOUT CONTRIBUTIONS, GIFTS & GRANTS, COMPENSATION AND OTHER INFORMATION ABOUT OFFICERS, DIRECTORS, TRUSTEES, KEY EMPLOYEES, FORMER EMPLOYEES, CERTAIN OTHER HIGHLY PAID EMPLOYEES, CERTAIN PROFESSIONAL CONTRACTORS AND CERTAIN OTHER CONTRACTORS ON A CONSOLIDATED BASIS FOR ALL OF THE MEMBERS OF THE GROUP, INCLUDING THE PARENT ORGANIZATION, ON THE GROUP RETURN OF METHODIST HOSPITAL GROUP, EIN 35-2410801.
PART I, LINE 4B	HOUSTON METHODIST HOSPITAL HAS A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN, A NON-QUALIFIED EMPLOYER FUNDED PLAN. CONTRIBUTIONS ARE MADE ANNUALLY INTO A TAX DEFERRED ACCOUNT AND ARE CONSIDERED TAXABLE UPON VESTING (I.E. COMPLETION OF THREE YEARS OF VESTING SERVICE). ONCE VESTED, EACH YEAR'S SUBSEQUENT CONTRIBUTION IS TAXABLE WITHIN THE CALENDAR YEAR IN WHICH THE DEPOSIT WAS MADE. ACCOUNT BALANCES CANNOT BE ACCESSED UNTIL RETIREMENT OR TERMINATION (WHICHEVER OCCURS FIRST) AND MAY BE SUBJECT TO NON-REVOCABLE DISTRIBUTION OPTIONS UPON ELECTION.
PART I, LINE 7	THIS ORGANIZATION PROVIDES VARIABLE COMPENSATION OPPORTUNITY THROUGH AN ANNUAL MANAGEMENT INCENTIVE PLAN. EXECUTIVES AT THE VICE PRESIDENT LEVEL AND ABOVE MAY BE ELIGIBLE TO PARTICIPATE. THE ANNUAL INCENTIVE PROGRAM IS BASED ON SYSTEM AND OPERATING ENTITY LEVEL PERFORMANCE IN THE AREAS OF QUALITY IMPROVEMENT OUTCOMES, PATIENT SATISFACTION AND FINANCIAL PERFORMANCE. IN ADDITION, A PORTION OF THE PAYOUT PERCENTAGE IS BASED ON GOALS THAT ARE SPECIFIC TO THE PARTICIPANTS' MANAGEMENT ROLES AT THE DIVISION OR DEPARTMENT LEVEL INCLUDING BUT NOT LIMITED TO SUCH METRICS AS OPERATING RESULTS, QUALITY AND SAFETY IMPROVEMENTS, CUSTOMER SATISFACTION MEASURES, GROWTH AND INNOVATION INITIATIVES. DETERMINATION OF A PARTICIPANT'S PERCENTAGE OF THE POTENTIAL BONUS PAYOUT (PAID AS A PERCENT OF BASE SALARY) IS BASED ON WHETHER THE INDIVIDUAL ATTAINS AGREED UPON GOALS FOR THEIR AREA OF RESPONSIBILITY AS DETERMINED BY THEIR IMMEDIATE SUPERVISOR.
SCHEDULE J, PART II	PURSUANT TO TREASURY REG SECTION 1 6033-2(D)(5), HOUSTON METHODIST HOSPITAL HAS ELECTED TO REPORT INFORMATION ABOUT CONTRIBUTIONS, GIFTS & GRANTS, COMPENSATION AND OTHER INFORMATION ABOUT OFFICERS, DIRECTORS, TRUSTEES, KEY EMPLOYEES, FORMER EMPLOYEES, CERTAIN OTHER HIGHLY PAID EMPLOYEES, CERTAIN PROFESSIONAL CONTRACTORS AND CERTAIN OTHER CONTRACTORS ON A CONSOLIDATED BASIS FOR ALL OF THE MEMBERS OF THE GROUP, INCLUDING THE PARENT ORGANIZATION, ON THE GROUP RETURN OF METHODIST HOSPITAL GROUP, EIN 35-2410801.

Schedule J (Form 990) 2016

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