Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Independent Auditor’s Report and Financial Statements
September 30, 2016 and 2015

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Years Ended September 30, 2016 and 2015
Contents
Independent Auditor’s Report ............................................................................................... 1 
Management’s Discussion and Analysis ............................................................................. 3 
Financial Statements 
Balance Sheets .................................................................................................................................. 10 
Statements of Revenues, Expenses and Changes in Net Position .................................................... 11 
Statements of Cash Flows ................................................................................................................ 12 
Notes to Financial Statements .......................................................................................................... 14 
Required Supplementary Information 
Schedule of Changes in District’s Net Pension Liability and Related Ratios .................................. 51 
Schedule of District Contributions ................................................................................................... 52 
Other Information 
Balance Sheet Information ............................................................................................................... 53 
Statement of Revenues, Expenses and Changes in Net Position Information .................................. 54 

 
Independent Auditor’s Report 
Board of Managers 
Tarrant County Hospital District 
  d/b/a JPS Health Network 
Fort Worth, Texas 
We have audited the accompanying balance sheets of Tarrant County Hospital District d/b/a JPS Health 
Network (District), a component unit of Tarrant County, Texas, as of September 30, 2016 and 2015, and 
the related statements of revenues, expenses and changes in net position and cash flows for the years then 
ended, and the related notes to the financial statements, which collectively comprise the District’s basic 
financial statements. 
Management’s Responsibility for the Financial Statements 
Management is responsible for the preparation and fair presentation of these financial statements in 
accordance with accounting principles generally accepted in the United States of America; this includes 
the design, implementation and maintenance of internal control relevant to the preparation and fair 
presentation of financial statements that are free from material misstatement, whether due to fraud or 
error. 
Auditor’s Responsibility 
Our responsibility is to express an opinion on these financial statements based on our audits.  We 
conducted our audits in accordance with auditing standards generally accepted in the United States of 
America.  Those standards require that we plan and perform the audit to obtain reasonable assurance 
about whether the financial statements are free from material misstatement. 
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in 
the financial statements.  The procedures selected depend on the auditor’s judgment, including the 
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.  
In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation 
and fair presentation of the financial statements in order to design audit procedures that are appropriate in 
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s 
internal control.  Accordingly, we express no such opinion.  An audit also includes evaluating the 
appropriateness of accounting policies used and the reasonableness of significant accounting estimates 
made by management, as well as evaluating the overall presentation of the financial statements.   
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for 
our audit opinion. 

 
Board of Managers 
Tarrant County Hospital District 
  d/b/a JPS Health Network 
Page 2 
Opinion 
In our opinion, the financial statements referred to above present fairly, in all material respects, the 
financial position of the District as of September 30, 2016 and 2015, and the changes in its financial 
position and its cash flows for the years then ended in accordance with accounting principles generally 
accepted in the United States of America. 
Other Matters 
Required Supplementary Information 
Accounting principles generally accepted in the United States of America require that the management’s 
discussion and analysis and pension information listed in the table of contents be presented to supplement 
the basic financial statements.  Such information, although not part of the basic financial statements, is 
required by the Governmental Accounting Standards Board, who considers it to be an essential part of 
financial reporting for placing the basic financial statements in an appropriate operational, economic or 
historical context.  We have applied certain limited procedures to the required supplementary information 
in accordance with auditing standards generally accepted in the United States of America, which 
consisted of inquiries of management about the methods of preparing the information and comparing the 
information for consistency with management’s responses to our inquiries, the basic financial statements 
and other knowledge we obtained during our audits of the basic financial statements.  We do not express 
an opinion or provide any assurance on the information because the limited procedures do not provide us 
with sufficient evidence to express an opinion or provide any assurance. 
Other Information 
Our audits were conducted for the purpose of forming an opinion on the basic financial statements as a 
whole. The other balance sheet and statement of revenues, expenses and changes in net position 
information listed in the table of contents is presented for purposes of additional analysis and is not a 
required part of the financial statements.  Such information has not been subjected to the auditing 
procedures applied in the audit of the basic financial statements, and accordingly, we do not express an 
opinion or provide any assurance on it. 
Dallas, Texas 
December 20, 2017 

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Management’s Discussion and Analysis
Years Ended September 30, 2016 and 2015
(In Thousands) 
Introduction 
This management’s discussion and analysis of the financial performance of Tarrant County Hospital 
District d/b/a JPS Health Network (District) provides an overview of the District’s financial activities for 
the years ended September 30, 2016 and 2015.  It should be read in conjunction with the accompanying 
financial statements of the District.  Unless otherwise indicated, amounts are in thousands. 
Financial Highlights 
•
•
•
Cash, short-term investments and other noncurrent investments increased in 2016 by $67,976 or 
13.4% and increased in 2015 by $85,140 or 20.1%. 
The District’s net position increased in each of the past two years with a $18,564 or 2.3% increase in 
2016 and a $51,763 or 6.8% increase in 2015. 
The District reported operating losses in both 2016 ($313,269) and 2015 ($266,599).  The loss in 
2016 increased by $46,670 or 17.5%, as compared to the operating loss reported in 2015.  The 
operating loss in 2015 decreased by $7,931 or 2.9%, from the operating loss reported in 2014. 
•
Net nonoperating revenues increased by $13,557 or 4.3% in 2016 compared to 2015 and increased by 
$15,654 or 5.2% in 2015 compared to 2014. 
Using This Annual Report 
The District’s financial statements consist of three statements—a balance sheet; a statement of revenues, 
expenses and changes in net position; and a statement of cash flows.  These statements provide 
information about the activities of the District, including resources held by the District but restricted for 
specific purposes by creditors, contributors, grantors or enabling legislation.  The District is accounted for 
as a business-type activity and presents its financial statements using the economic resources 
measurement focus and the accrual basis of accounting. 
The Balance Sheet and Statement of Revenues, Expenses and Changes in Net Position 
One of the most important questions asked about any hospital’s finances is “Is the hospital as a whole 
better or worse off as a result of the year’s activities?”  The balance sheet and the statement of revenues, 
expenses and changes in net position report information about the District’s resources and its activities in 
a way that helps answer this question.  These statements include all restricted and unrestricted assets and 
all liabilities using the accrual basis of accounting.  Using the accrual basis of accounting means that all 
of the current year’s revenues and expenses are taken into account regardless of when cash is received or 
paid. 
3

 
These two statements report the District’s net position and changes in them.  The District’s total net 
position—the difference between assets and liabilities—is one measure of the District’s financial health 
or financial position.  Over time, increases or decreases in the District’s net position are an indicator of 
whether its financial health is improving or deteriorating.  Other nonfinancial factors, such as changes in 
the District’s patient base, changes in legislation and regulations, measures of the quantity and quality of 
services provided to its patients, and local economic factors should also be considered to assess the 
overall financial health of the District.  
The Statement of Cash Flows 
The statement of cash flows reports cash receipts, cash payments and net changes in cash and cash 
equivalents resulting from four defined types of activities.  It provides answers to such questions as: 
“Where did cash come from?” “What was cash used for?” and “What was the change in cash and cash 
equivalents during the reporting period?” 
The District’s Net Position 
The District’s net position is the difference between its assets and liabilities reported in the balance sheets.  
The District’s net position increased by $18,564 (2.3%) in 2016 over 2015 and by $51,763 (6.8%) in 2015 
over 2014, as shown in Table 1: 
Table 1:  Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of 
Resources and Net Position 
2016
2015
2014
Assets
Cash and short-term investments
$
385,920
$
320,053
$
235,148
Patient accounts receivable, net 
Other current assets
Capital assets, net
49,845
63,814
270,884
189,950
44,838
164,261
289,046
187,536
47,721
192,677
284,087
187,366
Other noncurrent assets
Total assets
960,413
27,529
1,005,734
17,646
946,999
-
Deferred Outflows  of Resources
Total assets and deferred 
ouflows of resources
$
987,942
$
1,023,380
$
946,999
Liabilities
Long-term debt
Net pension liability
Other current and noncurrent liabilities
$
40,092
22,613
91,355
$
43,307
9,545
152,495
$
46,045
-
141,687
Total liabilities
154,060
4,288
205,347
7,003
187,732
-
Deferred Inflows  of Resources
Net Position
Net investment in capital assets
Restricted expendable
Restricted nonexpendable
Unrestricted
227,824
2,008
315
239,983
1,646
315
233,599
1,735
315
599,447
569,086
523,618
Total net position
829,594
987,942
811,030
759,267
946,999
Total liabilities, deferred inflows of 
resources and net position
$
$
1,023,380
$
4

 
The most significant changes in the District’s assets in 2016 is the increase in cash and investments and 
decrease in amounts due from the state of Texas under supplemental funding programs.  Cash and 
investments increased by $67,976 or 13.4% in 2016 over 2015.  This is primarily due to timing of the 
funding payments from the Medicaid Disproportionate Share Program and the Medicaid Section 1115(a) 
demonstration (Waiver) funding pools, discussed more fully in Note 3. The related receivable decreased 
by $99,551 or 72.6% in 2016 as compared to 2015.  
Deferred outflows of resources increased $9,883, or 56.0%, in 2016 as compared to 2015, primarily as a 
result of changes in actuarial assumptions and variances between expected and actual earnings on pension 
plan investments utilized in the valuation of the District’s net pension liability as discussed more fully in 
Note 13. 
The most significant change in the District’s liabilities in 2016 is the decrease in other current and 
noncurrent liabilities.  Other current liabilities decreased by $60,812 or 40.6% in 2016 over 2015.  This is 
primarily due to timing of the District’s contributions to the pension plan and intergovernmental transfers 
related to the Medicaid Disproportionate Share Program and the Waiver funding pools, discussed more 
fully in Note 13 and 3, respectively. 
The most significant change in the District’s assets in 2015 was also an increase in cash and investments.  
Cash and investments increased by $85,140 or 20.1% in 2015 over 2014.  This was primarily due to a 
lower operating loss and increased property tax revenue.  In addition, the District adopted GASB 
Statement No. 68 in 2015 which resulted in the recognition of a net pension liability and related deferred 
outflows and deferred inflows of resources.  This is more fully described in Note 13. 
Operating Results and Changes in the District’s Net Position 
In 2016, the District’s net position increased by $18,564 or 2.3%, as shown in Table 2.  This increase is 
made up of several components and represents a decrease of 64.1% compared with the increase in net 
position for 2015 of $51,656.  The District’s change in net position increased from $28,371 in 2014 to 
$51,656 in 2015. 
5

 
Table 2:  Operating Results and Changes in Net Position 
2016
2015
2014
Operating Revenues
Net patient service  revenue
Supplemental Medicaid  funding
Other operating revenue
$
368,255
155,385
52,396
$
337,394
191,360
37,589
$
299,019
185,143
42,396
Total operating revenues
576,036
566,343
526,558
Operating Expenses
Salaries and wages and  employee benefits
Purchased services  and professional fees
Supplies
Depreciation and  amortization
Other operating expenses
492,324
165,166
151,182
39,715
443,293
186,975
126,017
38,817
408,976
189,390
124,201
40,084
40,918
37,840
38,437
Total operating  expenses
889,305
832,942
801,088
Operating Loss
(313,269)
(266,599)
(274,530)
Nonoperating Revenues  (Expenses)
Property taxes
Contributed services
319,611
8,171
3,945
307,019
11,296
(145)
291,013
9,185
2,318
Investment return, interest  expense and other
Total nonoperating  revenues (expenses)
331,727
318,170
302,516
Excess of Revenues  Over Expenses
Before Capital  Grants
18,458
106
51,571
85
27,986
385
Capital Grants
Increase in Net Position
$
18,564
$
51,656
$
28,371
Operating Losses 
The first component of the overall change in the District’s net position is its operating income or loss—
generally, the difference between net patient service, supplemental Medicaid funding revenue and other 
operating revenues and the expenses incurred to perform those services.  In each of the past three years, 
the District has reported an operating loss.  This is consistent with the District’s recent operating history 
as the District was formed and is operated primarily to serve lower income residents of Tarrant County.  
The District levies property taxes to provide sufficient resources to enable the facility to serve lower 
income and other residents. 
The operating loss for 2016 increased by $46,670 or 17.5% as compared to 2015.  The primary 
components of the change are: 
•
•
•
•
•
•
An increase in net patient service revenue of $30,861 or 9.1% 
A decrease in Medicaid supplemental funding of $35,975 or 18.8% 
An increase in other operating revenue of $14,807 or 39.4% 
A decrease in professional fees and purchased services of $21,809 or 11.7% 
An increase in supplies expense of $25,165 or 20.0% 
An increase in salary and related expenses of $49,031 or 11.1% 
6

 
The increase in net patient service revenue is primarily attributable to increases in volumes and the 
decrease in Medicaid supplemental funding revenue is primarily due to shifts in funding allocations and 
the impact of the overall planned decrease in Wavier funding pools for 2016. 
The increase in other operating revenue is due in large part to increases in drug rebates associated with the 
pharmaceutical patient assistance program.  
The decrease in professional fees and purchase services is primarily attributable to the reduction in 
intergovernmental transfers due to shifts in funding allocations and changes in costs associated with an 
indigent care affiliation agreement, discussed more fully in Note 14, in the current year. 
The increase in supplies expense is primarily attributable to the costly drugs offered in the current year as 
well as increases in volumes.  There are associated drug rebates received under the pharmaceutical patient 
assistance program to offset this expense. 
The increase in salary and related expenses is due to wage increases resulting from the District’s retention 
efforts and to the addition of full time equivalent employees to address increased volumes. 
The operating loss for 2015 of $266,599 was $7,931 less than the operating loss of $274,530 recognized 
in 2014.  The District had an increase in net patient service revenue of $38,375 and an increase in Texas 
Medicaid supplemental funding of $6,217.  Net patient service revenue increased as a result of changes in 
payer mix. The increase in Medicaid Supplemental Funding is due to the shifts in funding allocation 
methodology.  Salaries and related expenses increased in 2015 by $34,317 or 8.4%, as compared to 2014 
due to retention efforts and the addition of full time equivalent employees.  Other operating revenue 
decreased in 2015 by $4,807 or 11.3% as compared to 2014, due to a decrease in funding from the 
Medicare and Medicaid Electronic Health Records Incentive Program.   
Nonoperating Revenues and Expenses 
Nonoperating revenues and expenses consist primarily of property taxes levied by the District, 
contributions and investment income and interest expense.  The District held property tax rates steady in 
2016, but an increase in overall property values as well as changes in estimated uncollectible property 
taxes resulted in a net increase in property tax revenue of $12,592 or 4.1% from 2015 to 2016.  
Contributed services represent the difference between the value of services provided to the District’s 
indigent patients by area physicians and the amount the District ultimately paid for those services.  
Contributed services decreased by $3,125 or 27.7% in 2016 as compared to 2015.  Contributed services 
fluctuate each year based on the costs associated with the physician services provided to the District’s 
indigent patients.   
Interest expense decreased by $94 or 7.0% in 2016 as compared to 2015 due to a decrease in long-term 
debt and refinancing of the Series 2006 Bonds discussed in Note 10. 
The District’s Cash Flows 
Changes in the District’s cash flows are consistent with changes in operating losses and nonoperating 
revenues and expenses for 2016, 2015 and 2014, as discussed previously. 
7

 
Capital Asset and Debt Administration 
Capital Assets
At the end of 2016, the District had $270,884 invested in capital assets, net of accumulated depreciation, 
as detailed in Note 7 to the financial statements.  In 2016, the District purchased new capital assets costing 
$22,193.
At the end of 2015, the District had $289,046 invested in capital assets, net of accumulated depreciation.  
In 2015, the District purchased new capital assets costing $43,942. 
Debt
At September 30, 2016, the District had $42,485 in revenue and general obligation refunding bonds 
outstanding.  In 2016, the District issued the Series 2016 Bonds to refinance the outstanding Series 2006 
Bonds obligation, as discussed in Note 10.  The District issued no new debt in 2015. The District’s formal 
debt issuances, revenue bonds, are subject to limitations imposed by state law.  There have been no 
changes in the District’s debt ratings in the past three years and Standard & Poor’s reaffirmed the 
District’s general obligation bonds in 2016.  The District has a current Aa3 rating from Moody’s, the 
District’s general obligation bonds have a current AAA rating and the revenue bonds have a current AA- 
rating from Standard & Poor’s. 
Other Economic Factors 
The District is the Anchor facility for the Region 10 Regional Healthcare Partnership (RHP) DSRIP 
program under the Medicaid Section 1115(a) demonstration.  The Region 10 RHP is the result of a
shared commitment by the region’s providers to a community-oriented, regional health care delivery
model focused on the triple aims of improving the experience of care for patients and their families,
improving the health of the region, and reducing the cost of care without compromising quality.
Region 10 RHP’s DSRIP plan is the essential blueprint for improved individual and population
health at a lower cost, delivered more efficiently.
The District is anticipating a small increase in volumes in fiscal year 2017 from growth in the county.  
Based on the recommendation of the District’s Board of Managers (Board), the Tarrant County 
Commissioners Court set the property tax rate for fiscal year 2017 to $0.227897 per $100 valuation, 
which is consistent with the property tax rate for fiscal year 2016. 
The Board and management continue to monitor and consider many factors that have direct or indirect 
impact on future operations.  These include: 
•
The Medicaid Section 1115(a) demonstration project which could have a material impact on the 
District’s funding for providing uncompensated care and provides funding for improvements in the 
design of the health care delivery system and associated outcomes, specifically shifting 
reimbursement systems from fee for service to value based payments 
•
•
The reimbursement impact of the Patient Protection and Affordable Care Act, Texas Medicaid DSH 
and other federal legislation 
Tarrant County’s population growth, as well as continued growth in the number of uninsured, 
working poor and medically indigent 
•
•
•
Shifting of care trend from inpatient to outpatient settings 
Continued growth in medical and pharmaceutical costs, as well as advances in therapies 
Continued advances in health care medical equipment and computing technology 
8

 
Significant Financial Practices 
The District maintains several financial practices designed to maintain its credit-worthiness and to 
position the District to carry out its defined mission of providing health care to the residents of Tarrant 
County, as well as its fiduciary responsibility to the taxpayers of Tarrant County.  Those practices are as 
follows: 
Investments Internally Designated for Capital Acquisition and Operating Activities
The Board sets aside funds for both long-term stability and capital improvements. 
Monthly Financial Reporting
The Board meets monthly and reviews the financial statements from the prior month.  This information is 
presented to show actual monthly and year-to-date revenues, and expenses compared to budget and the 
prior year.  Management provides explanation for significant variances. 
Pay-As-You-Go Capital Funding
The District has maintained the practice to fund routine capital items under a pay-as-you-go basis.  This 
has been done to minimize borrowing costs as well as maintain financial flexibility. 
Budget Process
The operating and capital budgets are proposed by the District’s management and endorsed by the Board.  
Final approval is obtained from the Court.  The budget remains in effect for the entire fiscal year. 
Operating Practices
•
The District’s adoption of LEAN and Six Sigma methodologies to improve efficiency and reduce 
outcome variation 
Contacting the District’s Financial Management 
This financial report is designed to provide our readers with a general overview of the District’s finances 
and to show the District’s accountability for the money it receives.  Questions about this report and 
requests for additional financial information should be directed to the District’s Financial Offices at 1350 
South Main Street, Suite 4000, Fort Worth, Texas 76104. 
9

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Balance Sheets
September 30, 2016 and 2015
(In Thousands) 
Assets and Deferred Outflows of Resources
2016
2015
Current Assets
Cash and cash equivalents
$
181,308
$
205,072
Short-term investments
Patient accounts receivable, net
Property taxes receivable, net
204,612
49,845
4,169
114,981
44,838
4,535
Supplemental Medicaid funding receivable
Internally designated for self-insurance, current portion
Supplies inventory
37,531
145
10,446
11,523
137,082
255
8,287
Prepaid expenses and other assets
14,102
Total current assets
499,579
529,152
Noncurrent Cash and Investments
Internally designated for debt service
Internally designated for self-insurance
Restricted by donors for capital acquisitions and
specific operating activities
600
11,807
419
11,587
1,947
175,401
189,755
195
1,991
173,539
187,536
-
Internally designated for capital acquisitions and 
operating activities
Total noncurrent cash and investments
Other Assets
Capital Assets, Net
Total assets
270,884
960,413
289,046
1,005,734
Deferred Outflows of Resources
27,529
17,646
$
987,942
$
1,023,380
Total assets and deferred outflows of resources
See Notes to Financial Statements

 
Liabilities, Deferred Inflows of Resources and Net Position
2016
2015
Current Liabilities
Accounts payable
$
37,129
$
80,186
Accrued expenses
38,918
4,569
5,240
2,985
57,259
4,257
5,481
2,470
Due to third-party payers
Current portion of self-insurance costs
Current maturities of long-term debt
Total current liabilities
Estimated Self-insurance Costs
Long-term Debt
88,841
149,653
1,550
40,092
22,613
964
1,422
43,307
9,545
Net Pension Liability
Other Long-term Liabilities
Total liabilities
1,420
154,060
205,347
Deferred Inflows of Resources
4,288
7,003
Net Position
Net investment in capital assets
Restricted expendable
Restricted nonexpendable
Unrestricted
227,824
2,008
315
239,983
1,646
315
599,447
569,086
Total net position
829,594
987,942
811,030
Total liabilities, deferred inflows of resources
and net position
$
$
1,023,380
10

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Statements of Revenues, Expenses and Changes in Net Position
Years Ended September 30, 2016 and 2015
(In Thousands) 
2016
2015
Operating Revenues
Net patient service revenue, net of provision for 
uncollectible accounts; 2016 – $307,925; 2015 – $243,694
Supplemental Medicaid funding
$
368,255
155,385
52,396
$
337,394
191,360
37,589
Other operating revenue
Total operating revenues
576,036
566,343
Operating Expenses
Salaries and related expenses
Professional fees and purchased services
Supplies
Depreciation and amortization
Other
492,324
165,166
151,182
39,715
443,293
186,975
126,017
38,817
40,918
37,840
Total operating expenses
889,305
832,942
Operating Loss
(313,269)
(266,599)
Nonoperating Revenues (Expenses)
Property tax revenue
Contributed services
Contribution revenue
Contribution expense
319,611
8,171
1,305
-
(1,430)
4,070
307,019
11,296
1,064
(2,500)
(1,336)
2,627
Interest expense
Investment return and other
Total nonoperating revenues (expenses)
Excess of Revenues Over Expenses Before Capital Grants
Capital Grants and Gifts
331,727
18,458
106
318,170
51,571
85
Increase in Net Position
18,564
811,030
829,594
51,656
759,374
811,030
Net Position, Beginning of Year
Net Position, End of Year
$
$
See Notes to Financial Statements
11

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Statements of Cash Flows
Years Ended September 30, 2016 and 2015
(In Thousands) 
2016
2015
Operating Activities
Receipts from and on behalf of patients
Receipts from supplemental Medicaid
funding programs
Payments to suppliers and contractors
Payments to employees
$
358,528
$
346,608
254,936
(382,952)
(509,155)
50,731
219,383
(358,380)
(425,261)
37,962
Other receipts, net
Net cash used in operating activities
(227,912)
(179,688)
Noncapital Financing Activities
Noncapital grants and gifts
1,305
1,064
Property taxes supporting operations
318,004
304,410
Net cash provided by noncapital financing activities
319,309
305,474
Capital and Related Financing Activities
Proceeds from issuance of long-term debt
Principal paid on long-term debt
Interest paid on long-term debt
Property taxes supporting debt service
Capital grants and gifts
22,415
(24,965)
(1,670)
1,973
-
(2,405)
(1,960)
2,149
106
918
Proceeds from sale of capital assets
Purchase of capital assets
136
(25,301)
198
(42,260)
Net cash used in capital and related financing activities
(27,306)
(43,360)
Investing Activities
Purchase of investments
(479,207)
(248,207)
Proceeds from the sale and maturities of
  short-term investments
Interest income and other
386,561
4,526
221,426
3,330
Net cash used in investing activities
Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents, Beginning of Year
Cash and Cash Equivalents, End of Year
(88,120)
(24,029)
206,909
182,880
(23,451)
58,975
147,934
206,909
$
$
See Notes to Financial Statements
12

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Statements of Cash Flows (Continued)
Years Ended September 30, 2016 and 2015
(In Thousands) 
2016
2015
Reconciliation of Cash and Cash Equivalents to the Balance Sheets
Cash and cash equivalents in current assets
Cash and cash equivalents in noncurrent cash and investments
$
$
181,308
1,572
$
$
205,072
1,837
182,880
206,909
Reconciliation of Net Operating Revenues (Expenses) to 
   Net Cash Used in Operating Activities
Operating loss
Depreciation and amortization
Loss (gain) on disposal of assets
$
(313,269)
39,715
504
$
(266,599)
38,817
(33)
Provision for uncollectible accounts
Contributed services expense
307,925
8,171
243,694
11,296
Changes in operating assets and liabilities
Patient accounts receivable
Supplemental Medicaid funding receivable
Estimated amounts due from and to third-party payers
Accounts payable and accrued expenses
Other assets and liabilities
(312,932)
99,551
312
(58,200)
311
(240,811)
28,023
823
5,658
(556)
Net cash used in operating activities
$
(227,912)
$
(179,688)
Supplemental Cash Flows Information
Capital asset acquisitions included in accounts payable
Contributed services revenue (Note 14  )
Amounts pledged to other entities included in accounts payable
$
$
$
583
8,171
-
$
$
$
3,705
11,296
2,500
See Notes to Financial Statements
13

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
Note 1:     Nature of Operations and Summary of Significant Accounting Policies
Nature of Operations and Reporting Entity 
Tarrant County Hospital District d/b/a JPS Health Network (District) is a political subdivision of 
the state of Texas and operates a hospital, a psychiatric inpatient facility, a skilled nursing unit, 24 
ambulatory health centers, a psychiatric emergency center, an emergency department and a 
designated Level 1 trauma center, three health centers for women, 20 school-based clinics and 
dental services at seven locations.  Additionally, it manages medical care services at the Tarrant 
County correctional system’s three locations.  The District is under the supervision of the Tarrant 
County Commissioners Court (Court) and is governed by an 11 member Board of Managers 
(Board) appointed by the Court.  For this reason, the District is considered to be a component unit 
of Tarrant County, Texas (County) and is included as a discretely presented component unit in the 
basic financial statements of the County. 
Acclaim Physician Group (Acclaim) began operations on May 1, 2016, primarily for the purpose of 
providing physician services to District patients.  The District is the sole corporate member of 
Acclaim and has the authority to exercise significant control over the financial operations of 
Acclaim.  As such, Acclaim is presented as a blended component unit of the District.  Separate 
financial statements of Acclaim can be obtained by contacting the District’s management. 
JPS Physician Group (JPSPG) began operations in July 2003, primarily for the purpose of 
providing physician services to District patients.  The District is the sole corporate member of 
JPSPG and has the authority to exercise significant control over the financial operations of JPSPG.  
As such, JPSPG is presented as a blended component unit of the District.  Separate financial 
statements of JPSPG can be obtained by contacting the District’s management.   
14

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
As of May 1, 2016 when operations commenced at Acclaim, all previously employed physicians of 
JPSPG became employed physicians of Acclaim.  As of October 1, 2015, the effective date of the 
transfer, all of JPSPG’s assets, deferred outflows of resources, liabilities, deferred inflows of 
resources and net position as of the beginning of the period of approximately $26,283 were 
transferred to the Hospital. 
JPS Foundation (Foundation) was formed on August 4, 1997, solely to support and benefit 
scientific, educational and charitable activities conducted by the District.  The Foundation is a non-
profit organization whose purpose is to perform services on behalf of the District, including 
organizing fundraising activities, providing patient assistance programs, participating in recruiting 
functions and conducting administrative services.  Because the Foundation operates primarily for 
the exclusive benefit of the District, it is also presented as a blended component unit of the District.  
Separate financial statements of the Foundation can be obtained by contacting the District’s 
management. 
The District’s financial statements include the activities as set forth above.  All material 
intercompany accounts and transactions have been eliminated in the financial statements.
Basis of Accounting and Presentation 
The accompanying financial statements of the District have been prepared on the accrual basis of 
accounting using the economic resources measurement focus.  Revenues, expenses, gains, losses, 
assets and liabilities from exchange and exchange-like transactions are recognized when the 
exchange transaction takes place, while those from government-mandated nonexchange 
transactions (principally federal and state grants) are recognized when all applicable eligibility 
requirements are met.  Operating revenues and expenses include exchange transactions and 
program-specific, government-mandated nonexchange transactions. 
Government-mandated nonexchange transactions that are not program specific, property taxes, 
investment income and interest on capital assets-related debt are included in nonoperating revenues 
and expenses.  The District first applies restricted net position when an expense or outlay is 
incurred for purposes for which both restricted and unrestricted net position is available. 
Use of Estimates 
The preparation of financial statements in conformity with accounting principles generally 
accepted in the United States of America requires management to make estimates and assumptions 
that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and 
liabilities at the date of the financial statements and the reported amounts of revenues, and 
expenses during the reporting period.  Actual results could differ from those estimates.
15

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
Cash and Cash Equivalents 
The District considers all liquid investments with original maturities of three months or less to be 
cash equivalents.  At September 30, 2016 and 2015, cash equivalents consisted primarily of money 
market accounts with brokers and state investment pools described more fully in Note 5. 
Risk Management 
The District is exposed to various risks of loss from torts; theft of, damage to and destruction of 
assets; business interruption; errors and omissions; employee injuries and illnesses; natural 
disasters; medical malpractice; and employee health, dental and accident benefits.  Commercial 
insurance coverage is purchased for claims arising from such matters other than medical 
malpractice, employee health and workers’ compensation claims.  Settled claims have not 
exceeded this commercial coverage in any of the three preceding years. 
The District is self-insured for a portion of its exposure to risk of loss from medical malpractice, 
employee health and workers’ compensation claims.  Annual estimated provisions are accrued for 
the self-insured portion of these risks and include an estimate of the ultimate costs for both reported 
claims and claims incurred but not yet reported. 
Investments and Investment Income 
Investments in U.S. Treasury, agency and instrumentality obligations with a remaining maturity of 
one-year or less at time of acquisition and in nonnegotiable certificates of deposit are carried at 
amortized cost.  Investments in external investment pools qualifying for amortized cost under 
GASB Statement No. 79, Certain External Investment Pools and Pool Participants, are carried at 
amortized cost per share.  All other investments are carried at fair value.   
Investment income includes dividend and interest income, realized gains and losses on investments 
carried at other than fair value and the net change for the year in the fair value of investments 
carried at fair value. 
Patient Accounts Receivable 
The District reports patient accounts receivable for services rendered at net realizable amounts 
from third-party payers, patients and others.  The District provides an allowance for uncollectible 
accounts based upon a review of outstanding receivables, historical collection information and 
existing economic conditions. 
16

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
Supplies 
Supply inventories are stated at the lower of cost, determined using the first-in, first-out method or 
market. 
Capital Assets 
Capital assets are recorded at cost at the date of acquisition, or acquisition value at the date of 
donation if acquired by gift.  Depreciation is computed using the straight-line method over the 
estimated useful life of each asset.  Assets under capital lease obligations and leasehold 
improvements are depreciated over the shorter of the lease term or their respective estimated useful 
lives.  The following estimated useful lives are being used by the District: 
Land improvements
Buildings and improvements
Equipment
10 – 20 years
10 – 40 years
3 – 20 years
3 – 10 years
Computer software
The District capitalizes interest costs as a component of construction in progress, based on the 
weighted-average rates paid for long-term borrowing.  Total interest incurred was: 
2016
2015
Interest costs capitalized
Interest costs charged to expense
$
$
14
1,430
$
$
348
1,336
Total interest incurred
1,444
1,684
Compensated Absences 
District policies permit most employees to accumulate vacation and sick leave benefits that may be 
realized as paid time off or, in limited circumstances, as a cash payment.  Expense and the related 
liability are recognized as benefits are earned whether the employee is expected to realize the 
benefit as time off or in cash.  Compensated absence liabilities are computed using the regular pay 
and termination pay rates in effect at the balance sheet date, plus an additional amount for 
compensation-related payments such as social security and Medicare taxes computed using rates in 
effect at that date.
17

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
Defined Benefit Pension Plan 
The District sponsors a defined benefit pension plan (Plan) as more fully described in Note 13.  For 
purposes of measuring the net pension liability, deferred outflows of resources and deferred 
inflows of resources related to pensions, and pension expense, information about the fiduciary net 
position of the Plan and additions to and deductions from the Plan’s fiduciary net position have 
been determined on the same basis as they are reported by the Plan.  For this purpose, benefit 
payments (including refunds of employee contributions) are recognized when due and payable in 
accordance with the benefit terms.  Investments are reported at fair value. 
Deferred Outflows/Inflows of Resources 
Transactions not meeting the definition of an asset or liability that result in the consumption or 
acquisition of net position in one period that are applicable to future periods are reported as 
deferred outflows of resources and deferred inflows of resources.  As of September 30, 2016 and 
2015, the District’s deferred outflows and deferred inflows of resources were related to the 
District’s defined benefit pension plan as described more fully in Note 13. 
Net Position 
Net position of the District is classified in four components.  Net investment in capital assets 
consists of capital assets net of accumulated depreciation and reduced by the outstanding balances 
of borrowings used to finance the purchase or construction of those assets.  Restricted expendable 
net position is made up of noncapital assets that must be used for a particular purpose, as specified 
by creditors, grantors or donors external to the District, including amounts deposited with trustees 
as required by bond indentures, reduced by the outstanding balances of any related borrowings.  
Restricted nonexpendable net position consists of noncapital assets that are required to be 
maintained in perpetuity as specified by parties external to the District, such as permanent 
endowments.  Unrestricted net position is the remaining assets less remaining liabilities that do not 
meet the definition of net invested in capital assets or restricted net position. 
Net Patient Service Revenue 
The District has agreements with third-party payers that provide for payments to the District at 
amounts different from its established rates.  Net patient service revenue is reported at the 
estimated net realizable amounts from patients, third-party payers and others for services rendered 
and includes estimated retroactive revenue adjustments, and a provision for uncollectible accounts.  
Retroactive adjustments are considered in the recognition of revenue on an estimated basis in the 
period the related services are rendered and such estimated amounts are revised in future periods as 
adjustments become known.
18

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
Tobacco Settlement Revenue 
The District receives revenue that is the result of a settlement between various counties and 
hospital districts in Texas and the tobacco industry for tobacco-related health care costs.  The 
District received approximately $4,680 and $5,773 in revenue from this settlement for the years 
ended September 30, 2016 and 2015, respectively.  This revenue is recognized as a component of 
other operating revenue in the accompanying statements of revenues, expenses and changes in net 
position. 
Charity Care 
The District provides care without charge or at amounts less than its established rates to patients 
meeting certain criteria under its charity care policy.  Because the District does not pursue 
collection of amounts determined to qualify as charity care, these amounts are not reported as net 
patient service revenue. 
Income Taxes 
As an essential government function of the County, the District is generally exempt from federal 
and state income taxes under Section 115 of the Internal Revenue Code (IRC) and a similar 
provision of state law.  The District, the Foundation, JPSPG and Acclaim and also carry an 
exemption from income taxes under IRC Section 501(c)(3). The District, the Foundation, JPSPG 
and Acclaim are all subject to federal income tax on any unrelated business taxable income. 
Electronic Health Records Incentive Program 
The Electronic Health Records Incentive Program, enacted as part of the American Recovery and 
Reinvestment Act of 2009, provides for one time incentive payments under both the Medicare and 
Medicaid programs to eligible hospitals that demonstrate meaningful use of certified electronic 
health records technology (EHR).  Payments under the Medicare program are generally made for 
up to four years based on a statutory formula.  Payments under the Medicaid program are generally 
made for up to four years based upon a statutory formula, as determined by the state, which is 
approved by the Centers for Medicare and Medicaid Services (CMS).  Payments under both 
programs are contingent on the District continuing to meet escalating meaningful use criteria and 
any other specific requirements that are applicable for the reporting period.  The final amount for 
any payment year is determined based upon an audit by the administrative contractor.  JPSPG and 
Acclaim may also receive incentive payments of up to $44 per eligible physician over five years 
for Medicare and $64 per eligible physician over six years for Medicaid.  Events could occur that 
would cause the final amounts to differ materially from the initial payments under the program.
19

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
The District recognizes revenue under the grant accounting model using the cliff recognition 
approach.  Under this approach, revenue is recognized once meaningful use status has been met for 
the full reporting period. 
In 2016 and 2015, the District recorded revenue from the Medicare program of approximately 
$1,085 and $1,046, respectively.  In 2016 and 2015, the District recorded revenue from the 
Medicaid program of approximately $468 and $400, respectively.  The revenue earned from these 
programs is included as a component of other operating revenue in the accompanying statements of 
revenue, expenses and changes in net position. 
Reclassifications 
Certain reclassifications have been made to the 2015 financial statements to conform to the 2016 
financial statement presentation.  The reclassifications had no effect on the changes in financial 
position. 
Note 2:     Net Patient Service Revenue
The District has agreements with third-party payers that provide for payments to the District at 
amounts different from its established rates.  These payment arrangements include: 
Medicare.  Inpatient acute care services and substantially all outpatient services rendered to 
Medicare program beneficiaries are paid at prospectively determined rates.  These rates vary 
according to a patient classification system that is based on clinical, diagnostic and other factors.  
Certain inpatient nonacute services and defined medical education costs are paid based on a cost 
reimbursement methodology.  The District is reimbursed for certain services at tentative rates 
with final settlement determined after submission of annual cost reports by the District and 
audits thereof by the Medicare administrative contractor.  The District’s Medicare cost reports 
have been audited by the Medicare administrative contractor through September 30, 2012. 
Medicaid.   Inpatient services rendered to Medicaid program beneficiaries are reimbursed under a 
prospective payment system.  Inpatient reimbursement is inclusive of an add-on for trauma care 
that is based on the Medicaid Standards Dollar Amount.  Outpatient and physician services are 
reimbursed under a mixture of fee schedules and cost reimbursement.  The District is reimbursed 
for cost reimbursable services at tentative rates with final settlement determined after submission 
of annual cost reports by the District and audits thereof by the Medicaid administrative 
contractor.  The District’s Medicaid cost reports have been audited by the Medicaid 
administrative contractor through September 30, 2009.
20

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
Approximately 78% and 77% of net patient service revenue is from participation in the Medicare 
and state-sponsored Medicaid programs for the years ended September 30, 2016 and 2015, 
respectively.  Settlements under reimbursement agreements with Medicare and Medicaid programs 
are estimated and recorded in the period the related services are rendered, and are adjusted in future 
periods as adjustments become known or as the service years are no longer subject to audit, review 
or investigation.  Annual cost reports required under the Medicare and Medicaid programs are 
subject to routine audits, which may result in adjustments to the amounts ultimately determined to 
be due under the reimbursement programs.  These audits often require several years to reach their 
financial determination of amounts earned under the programs.  As a result, it is reasonably 
possible that recorded estimates will change materially in the near term.  Net patient service 
revenue increased in 2016 by approximately $4,885 and decreased in 2015 by approximately $460, 
due to changes in previous estimates. 
The District has also entered into payment agreements with certain commercial insurance carriers, 
HMOs and preferred provider organizations.  The basis for payment to the District under these 
agreements includes prospectively determined rates per discharge, discounts from established 
charges and prospectively determined daily rates. 
Note 3:     Supplemental Medicaid Funding Revenue
Supplemental Medicaid funding revenue included in the statement of revenues, expenses and 
changes in net position includes revenue received from the Medicaid Disproportionate Share 
Program (DSH) of approximately $34,489 and $30,721 for the years ended September 30, 2016 
and 2015, respectively.  The amounts the District may expect to receive from this program in future 
years could be impacted by the Medicaid section 1115(a) demonstration program discussed below.   
On December 12, 2011, the United States Department of Health and Human Services (HHSC) 
approved a new Medicaid section 1115(a) demonstration entitled “Texas Health Transformation 
and Quality Improvement Program” (Waiver).  The Waiver expanded existing Medicaid managed 
care programs and established two funding pools that assists providers with uncompensated care 
costs (UC Pool) and promotes health system transformation (DSRIP Pool).  The revenue from the 
two funding pools is recognized as earned throughout the related demonstration year.  During 
2016, the District recognized approximately $65,034 and $55,862 from the UC Pool and DSRIP 
Pool, respectively.  During 2015, the District recognized approximately $105,369 and $55,270 
from the UC Pool and DSRIP Pool, respectively.  The funding the District has received is subject 
to audit and is not representative of funding to be received in future years. 
The Waiver was effective from December 12, 2011 to September 30, 2016.  On May 2, 2016, 
HHSC announced that CMS agreed to extend the Waiver through December 2017, at current 
funding levels.  During the extension period, HHSC and CMS will continue negotiating a longer 
term extension. 
21

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
The programs described above are subject to review and scrutiny by both the Texas Legislature and
the CMS, and the programs could be modified or terminated based on new legislation or regulation 
in future periods.   
Note 4:     Property Tax Revenue
The District received approximately 35% of its support from property taxes in both years ended 
September 30, 2016 and 2015, respectively.  Property taxes are levied by the District on October 1, 
of each year based on the preceding January 1, assessed property values.  To secure payment, an 
enforceable lien attaches to the property on January 1, when the value is assessed.  Property taxes 
become due and payable when levied on October 1.  This is the date on which an enforceable legal 
claim arises and the District records a receivable for the property tax assessment, less an allowance 
for uncollectible taxes.  Property taxes are considered delinquent after January 31, of the following 
year.  The District recorded an allowance for uncollectible property taxes of approximately $9,212 
and $9,341 at September 30, 2016 and 2015, respectively. 
The District’s property tax rate was $0.226491 and $0.226300 per $100 valuation for 2016 and 
2015, respectively, for the maintenance and operation fund and property tax revenue for this fund 
was $317,640 and $304,867 for 2016 and 2015, respectively.  The District’s property tax rate was 
$0.001406 and $0.001597 per $100 valuation for 2016 and 2015, respectively, for the interest and 
sinking fund and property tax revenue for this fund was $1,971 and $2,152 for 2016 and 2015, 
respectively. 
Note 5:     Deposits, Investments and Investment Income
Deposits 
Custodial credit risk is the risk that in the event of a bank failure, a government’s deposits may not 
be returned to it.  The District’s deposit policy for custodial credit risk requires compliance with the 
provisions of state law.  
State law requires collateralization of all deposits with federal depository insurance or other 
qualified investments.  At September 30, 2016 and 2015, the District’s deposits were either insured 
or collateralized in accordance with state law. 
At September 30, 2016, the Foundation’s cash accounts exceeded federally insured limits by 
$2,185.
22

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
Investments 
The District may legally invest direct obligations of and other obligations guaranteed as to 
principal by the U.S. Treasury and U.S. agencies and instrumentalities and in bank repurchase 
agreements.  It may also invest to a limited extent in corporate bonds and equity securities. 
At September 30, 2016 and 2015, the District had the following investments and maturities as: 
September 30, 2016
Maturities in Years
Less
More
Type
Fair Value
Than 1
1-5
6-10
Than 10
Investment pools
$
105,728
30,712
38,085
5,564
$
$
105,728
$
-
-
13,969
5,564
-
$
$
-
-
-
-
-
$
$
-
-
-
-
-
U.S. Treasury obligations
U.S. agencies obligations
Municipal bonds
30,712
24,116
-
Commercial paper
180,391
180,391
340,947
$
19,533
-
-
Mutual funds
375
$
$
360,855
September 30, 2015
Maturities in Years
Less
Than 1
More
Than 10
Type
Fair Value
1-5
6-10
Money market mutual funds
Investment pools
U.S. Treasury obligations
U.S. agencies obligations
Municipal bonds
37
110,841
716
45,540
5,674
$
$
37
$
$
-
-
716
37,558
5,572
-
$
$
-
-
-
-
-
-
$
$
-
-
-
-
-
-
110,841
-
7,982
102
Commercial paper
29,944
29,944
148,906
43,846
-
-
Mutual funds
528
$
193,280
23

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
Interest Rate Risk –  As a means of limiting its exposure to fair value losses arising from rising 
interest rates, the District investment policy requires that total investments have a weighted-average 
maturity of five years or less.  The District’s investments in U.S. Treasury and agency obligations 
include fixed-rate notes and bonds with a weighted-average maturity of three years.  The longer the 
maturity of a fixed-rate obligation, the greater the impact a change in interest rates will have on its 
fair value.  As interest rates increase, the fair value of the obligations decrease.  Likewise, when 
interest rates decrease, the fair value of the obligations increase.  The money market mutual funds 
are presented as an investment with a maturity of less than one-year because they are redeemable in 
full immediately. 
Credit Risk –  Credit risk is the risk that the issuer or other counterparty to an investment will not 
fulfill its obligations.  It is the District’s policy to limit its investments to U.S. Treasury and agency 
obligations or otherwise follow the restriction of the Texas Public Funds Investment Act.  The 
District’s investment in U.S. Treasury obligations carry the explicit guarantee of the U.S. 
government.  The debt securities of the U.S. agencies are rated Aa1 to AAA by Moody’s rating 
agency.  The District’s investments in municipal bonds were rated AA by Standard & Poor’s rating 
agency.   
The District also invests in TexPool and TexSTAR, state investment pools (Pools), which are 
considered investments for financial reporting.  The Texas State Comptroller of Public Accounts 
oversees TexPool.  Federated Investors provides asset management and participant services for 
TexPool’s operations under a contract with the Comptroller.  TexSTAR is a local government 
investment pool offering professionally managed portfolios to government entities in the state of 
Texas.  The governing board of directors selects co-administrators for TexSTAR that provide fund 
management.  The District has an undivided beneficial interest in the pool of assets held by the 
Pools.  Investments must be in compliance with the Texas Public Fund Investment Act and include 
obligations of the United States or its agencies, direct obligation of the state of Texas or its 
agencies, certificates of deposit and repurchase agreements.  The fair value of the position in these 
pools is the same as the value of the shares in each pool.   
The Pools, as well as the money market mutual funds invested in by the District, are rated as 
AAAm by Standard & Poor’s.  The District’s investments in commercial paper was rated A- to 
AA- by Standard & Poor’s rating agency. 
The District also invests in certificates of deposit, which are classified as deposits for financial 
reporting purposes.  These certificates of deposit are fully collateralized by the various financial 
institutions. 
Custodial Credit Risk –  For an investment, custodial credit risk is the risk that, in the event of the 
failure of the counterparty, the District will not be able to recover the value of its investment or 
collateral securities that are in the possession of an outside party.  All of the District’s investments 
are held in safekeeping or trust accounts.  
24

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
Concentration of Credit Risk –  The District places no limit on the amount that may be invested in 
any one issuer as long as the restrictions of the Texas Public Funds Investment Act are followed. 
The following table reflects the District’s investments in single issuers that represent more than 5% 
of total investments: 
2016
2015
Federal Farm Credit Bank
1.4%
5.3%
Federal Home Loan Mortgage Association
Toyota Motor Credit Commercial Paper
JP Morgan Securities Commercial Paper
Kaiser Foundation Hospital Commercial Paper
Nestle Finance Int'l Commercial Paper
Philadelphia, PA - Airport Revenue Commercial Paper
5.8%
8.2%
14.0%
12.4%
8.3%
10.4%
7.8%
7.7%
0.0%
0.0%
0.0%
6.9%
Summary of Carrying Values 
The carrying values of deposits and investments shown previously are included in the balance 
sheets as follows: 
2016
2015
Carrying value
Deposits
Investments
$
$
214,965
360,855
$
$
314,564
193,280
575,820
507,844
Included in the following balance sheet captions
Cash and cash equivalents
Short-term investments
Internally designated for self-insurance, current portion
Noncurrent cash and investments
$
$
181,308
204,612
145
$
$
205,072
114,981
255
189,755
187,536
575,820
507,844
25

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
Investment Income 
Investment income for the years ended September 30, consisted of: 
2016
2015
Interest and dividend income
Net decrease in fair value of investments
$
$
4,594
(641)
$
$
2,994
(616)
3,953
2,378
Note 6:     Patient Accounts Receivable
The District grants credit without collateral to its patients, many of whom are area residents and are 
insured under third-party payer agreements.  Patient accounts receivable at September 30, consisted 
of: 
2016
2015
Medicare
Medicaid
Other third-party payers
Patients
$
$
16,559
17,768
30,126
92,821
157,274
107,429
$
$
13,911
17,078
28,179
70,476
129,644
84,806
Less allowance for uncollectible accounts
49,845
44,838
26

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
Note 7:     Capital Assets
Capital assets activity for the years ended September 30, were: 
2016
Beginning
Balance
Transfers
and Other
Ending
Balance
Additions
Disposals
Land and improvements
Buildings and improvements
Equipment
$
54,510
$
-
-
17,512
4,681
$
-
-
(9,211)
-
$
46
2,305
3,993
$
54,556
247,538
430,640
2,025
249,843
442,934
362
Construction in progress
(6,344)
734,713
445,667
289,046
22,193
39,715
(9,211)
(8,571)
(640)
-
-
-
747,695
476,811
270,884
Less accumulated 
  depreciation
Capital assets, net
$
$
$
(17,522)
$
$
$
2015
Beginning
Balance
Transfers
and Other
Ending
Balance
Additions
Disposals
Land and improvements
Buildings and improvements
Equipment
52,618
241,353
395,687
8,496
$
1,892
325
16,396
25,329
$
-
$
-
10,635
21,165
$
54,510
(4,775)
(2,608)
-
247,538
430,640
2,025
Construction in progress
(31,800)
698,154
414,067
284,087
43,942
38,817
5,125
(7,383)
(7,217)
(166)
-
-
-
734,713
445,667
289,046
Less accumulated 
  depreciation
Capital assets, net
$
$
$
$
$
27

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
Note 8:     Accounts Payable and Accrued Expenses
Accounts payable and accrued expenses included in current liabilities at September 30, consisted 
of: 
2016
2015
Payable to suppliers and contractors
Payable to employees (including payroll taxes 
and benefits)
Payable to TCICC  (Note 14)
Payable to the Plan (Note 13  )
Patient credit balances
$
34,641
$
38,006
38,757
-
-
44,709
34,736
12,313
7,681
2,649
$
76,047
$
137,445
Note 9:     Risk Management
Medical Malpractice and General Liability Risks 
The District is self-insured for medical malpractice and general liability claims.  The District’s 
maximum liability for professional and general liability claims as a governmental unit under the 
Tort Claims Act is generally $100,000 per individual and $300,000 per occurrence. 
Losses from asserted and unasserted claims identified under the District’s incident reporting system 
are accrued based on estimates that incorporate the District’s past experience, as well as other 
considerations, including the nature of each claim or incident and relevant trend factors.  It is 
reasonably possible that the District’s estimate of losses will change by a material amount in the 
near term. 
28

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
Activity in the District’s accrued medical malpractice claims liability during 2016 and 2015, is 
summarized as follows: 
2016
2015
Balance, beginning of year
$
$
590
$
$
485
Current year claims incurred and changes in 
estimates for claims incurred in prior years
Claims and expenses paid
226
(255)
254
(149)
Balance, end of year
561
590
Employee Health Claims 
Substantially all of the District’s employees and their dependents are eligible to participate in the 
District’s employee health insurance plan.  Commercial stop-loss insurance coverage is purchased 
for claims in excess of $500,000.  A provision is accrued for self-insured employee health claims 
including both claims reported and claims incurred but not yet reported.  The accrual is estimated 
based on consideration of prior claims experience, recently settled claims, frequency of claims and 
other economic and social factors.  It is reasonably possible that the District’s estimate will change 
by a material amount in the near term. 
Activity in the District’s accrued employee health claims liability during 2016 and 2015, is 
summarized as follows: 
2016
2015
Balance, beginning of year
$
$
4,050
$
$
4,260
Current year claims incurred and changes in 
estimates for claims incurred in prior years
Claims and expenses paid
44,228
(44,238)
38,434
(38,644)
Balance, end of year
4,040
4,050
29

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
Workers’ Compensation Claims 
The District is self-insured for workers’ compensation claims.  A provision is accrued for 
self-insured worker’s compensation claims including both claims reported and claims incurred but 
not yet reported.  The accrual is estimated based on consideration of prior claims experience, 
recently settled claims, frequency of claims and other economic and social factors.  It is reasonably 
possible that the District’s estimate will change by a material amount in the near term. 
Activity in the District’s accrued workers’ compensation claims liability during 2016 and 2015, is 
summarized as follows: 
2016
2015
Balance, beginning of year
$
$
2,263
$
$
1,982
Current year claims incurred and changes in 
estimates for claims incurred in prior years
Claims and expenses paid
1,870
(1,944)
2,027
(1,746)
Balance, end of year
2,189
2,263
Note 10:   Long-term Debt
A summary of long-term debt is as follows: 
2016
2015
General obligation refunding bonds, Series 2016
Revenue bonds, Series 2012
Certificates of obligation, Series 2006
$
22,335
20,150
-
42,485
592
$
-
21,595
23,440
45,035
742
Bond premium (discount), net
$           43,077 
 $           45,777 
30

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
General Obligation Refunding Bonds – Series 2016 
The Series 2016 general obligation refunding bonds consist of Tarrant County Hospital District 
Limited Tax Refunding Bonds, Series 2016 (Series 2016 Bonds) in the original amount of $22,415 
dated January 1, 2016, which bear interest at 2.24%.  The Series 2016 Bonds are payable in annual 
installments of $1,500 to $1,955 through February 15, 2029.  The Series 2016 Bonds are secured 
by ad valorem tax revenues.  The proceeds from the Series 2016 Bonds were used to advance 
refund the Series 2006 Bonds.   
Revenue Bonds – Series 2012 
The Series 2012 revenue bonds consist of Tarrant County Hospital District Senior Lien Revenue 
Refunding Bonds, Series 2012 (Series 2012 Bonds) in the original amount of $25,890 dated 
September 1, 2012, which bear interest at 3.0% to 5.0%.  The Series 2012 Bonds are payable in 
annual installments of $1,485 to $2,205 through August 15, 2027.  The Series 2012 Bonds are 
secured by revenues of the District, exclusive of ad valorem tax revenue.  All of the Series 2012 
Bonds still outstanding may be redeemed at the District’s option on or after August 15, 2023, at par 
value plus accrued interest.  The proceeds from the Series 2012 Bonds were used to advance 
refund the Series 2002 Bonds.   
Certificates of Obligation – Series 2006 
The Series 2006 certificates of obligation consisted of Tarrant County Hospital District Certificates 
of Obligation, Series 2006 (Certificates) in the original amount of $30,330 dated March 1, 2006, 
which bore interest at 4.0% to 5.0%.  The Certificates were secured by the net revenues of the 
District, including ad valorem revenue.  All of the Certificates still outstanding could be redeemed 
at the District’s option on or after February 15, 2016, at par value plus accrued interest.  The 
District advance refunded the outstanding obligation on the Series 2006 Bonds with proceeds from 
the Series 2016 Bonds. The loss on the advance refunding was approximately $70.  The present 
value of cash flow savings from the advanced refunding is approximately $3,960. 
The indenture agreements require the District to comply with certain restrictive covenants 
including minimum insurance coverage and debt service requirements. 
The District has a current Aa3 rating from Moody’s and a current AAA rating from Standard & 
Poor’s.  
31

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
The following is a summary of long-term debt transactions for the District for the years ended 
September 30: 
2016
Beginning
Balance
Ending
Balance
Current
Portion
Additions
Deductions
Long-term debt
General obligation refunding bonds, Series 2016
Revenue bonds, Series 2012
Certificates of obligation, Series 2006
$
$
-
21,595
23,440
$
$
22,415
-
-
$
80
1,445
23,440
$
$
22,335
20,150
-
$
$
1,500
1,485
-
Total long-term debt
45,035
22,415
$
24,965
42,485
2,985
2015
Beginning
Ending
Current
Balance
Additions
Deductions
Balance
Portion
Long-term debt
Revenue bonds, Series 2012
Certificates of obligation, Series 2006
$
$
23,015
24,425
$
$
-
-
$
1,420
985
$
$
21,595
23,440
$
$
1,445
1,025
Total long-term debt
47,440
-
$
2,405
45,035
2,470
The debt service requirements as of September 30, 2016, are as follows: 
Year Ending
September 30, 2016
Principal
Interest
Total
2017
2018
2019
2020
2021
$
$
2,985
$
$
1,270
$
4,255
3,070
3,140
3,255
3,375
18,710
7,950
1,192
1,111
997
878
2,547
267
4,262
4,251
4,252
4,253
21,257
8,217
2022-2026
2027-2029
42,485
8,262
$
50,747
32

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
Note 11:   Restricted and Designated Net Position
At September 30, 2016 and 2015, $2,008 and $1,646, respectively, of net position were restricted 
by donors for capital and operating activities. 
At September 30, 2016 and 2015, $175,401 and $173,539, respectively, of unrestricted net position 
has been designated by the Board for future operating needs and capital acquisitions.  Designated 
assets remain under the control of the Board, which may, at its discretion, later use these assets for 
other purposes. 
At September 30, 2016 and 2015, the District had $315 of restricted nonexpendable net position 
which is a general endowment for the Foundation.  
Note 12:   Uncompensated Care
In support of its mission, the District voluntarily provides free care to patients who lack financial 
resources and are deemed to be medically indigent.  The costs of charity care provided under the 
District’s charity care policy were $141,344 and $126,033 for 2016 and 2015, respectively.  The 
cost of charity care is estimated by applying the ratio of cost to gross charges to the gross charity 
care charges.  The increase in uncompensated care cost in 2016 as compared to 2015 is primarily 
attributable to increases in volumes in 2016. 
Note 13:   Pension Plan
Plan Description 
The District sponsors an agent multiple-employer defined benefit pension plan for eligible 
employees within a multiemployer retirement program sponsored for member hospitals by the 
Texas Hospital Association (THA).  HealthShare/THA, a wholly owned subsidiary of THA, is the 
plan administrator of the pension plan.  The Plan’s assets are invested as a portion of the THA’s 
master pension trust fund.  The Plan provides retirement, death and disability benefits.  
Amendments to the plan are made only with the authority of the District’s Board.   
The Plan does not issue a stand-alone financial report.  However, an annual actuarial valuation 
report is available from the District or HealthShare/THA.  That report may be obtained by writing 
HealthShare/THA at 1108 Lavaca, Suite 700, Austin, Texas  78701. 
33

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
Benefits Provided  
The Plan provides retirement, disability, and death benefits.  Retirement benefits for eligible 
employees are calculated as 1.4% of the employee’s final 5-year average compensation plus 0.7% 
of the employee’s final 5-year average compensation, if any, that exceeds $75,000, with the sum 
multiplied times the employee’s years of service.     
Participants with 5 years of participation service are eligible to retire at age 65.  Participants may 
retire at any age after 55 if they have 10 years or vesting service.  Disability retirement benefits are 
determined in the same manner as retirement benefits but are payable immediately with an 
actuarial reduction.  Death benefits are determined in the same manner as retirement benefits but 
are payable immediately with an actuarial reduction.  An employee who leaves the employer’s 
service may withdraw his or her contributions, plus any accumulated interest. 
Effective October 1, 2006, participation in the pension plan became mandatory for full-time 
employees completing one-year of service on or after October 1, 2006.  An amendment effective 
October 1, 2011, made plan participation voluntary for employees hired after that date. 
The employees covered by the Plan at October 1, 2015 and 2014 (measurement date), are: 
2015
2014
Inactive employees or beneficiaries currently
receiving benefits
269
246
Inactive employees entitled to but not yet
receiving benefits
Active employees
1,020
3,014
930
2,950
4,303
4,126
Contributions 
The District’s Board has the sole authority to establish and amend the contribution requirements of 
the active employees.  The District’s contributions are based on an actuarially determined rate 
recommended by an independent actuary.  The actuarial determined rate is the established amount 
necessary to finance the costs of benefits earned by employees during the year, with an additional 
amount to finance any unfunded accrued liability.  The District is required to contribute the 
difference between the actuarially determined rate and the contribution rate of employees.  For the 
District’s fiscal year ended September 30, 2016, the average active employee contribution rate (for 
the period between the two most recent measurement dates) was 1.00% of annual pay, and the 
District’s average contribution rate was 6.75% of annual payroll.   
34

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
The District’s contribution is set to be 6.75% of participant payroll effective October 1, 2015, and 
will remain at that level as long as the amount thus determined is sufficient to pay the Employer 
Normal Cost and amortize the Unfunded Actuarial Liability (Net Pension Liability) over a period 
of not more than 25 years.    
The employer contributions were 6.75% of estimated participant compensation for the year ended 
September 30, 2016.  The costs of administering the plan are paid by the plan and are considered in 
the determination of the employer contribution rate. 
Net Pension Liability 
The District’s net pension liability was measured as of October 1, 2015 and 2014, and the total 
pension liability used to calculate the net pension liability was determined by an actuarial valuation 
as of that date. 
The total pension liability in the October 1, 2015, actuarial valuation was determined using the 
following actuarial assumptions, applied to all periods included in the measurement: 
Inflation
3.25%
Salary increases
Ad hoc   cost of living adjustments
Investment rate of return
5.0%, average, including inflation
Not included
7.25%, net of pension plan
investment expense, including inflations
Mortality rates were based on the Society of Actuaries RP-2014 Mortality Table with Projection 
Scale MP-2015. 
The actuarial assumptions used in the October 1, 2015, valuation were based on the results of an 
actuarial experience study for the period 2010-2015.   
The long-term expected rate of return used in the October 1, 2015, valuation on pension plan 
investments was determined using a building-block method in which expected future real rates of 
return (expected returns, net of pension plan investment expense and inflation) are developed for 
each major asset class.  These components are combined to produce the long-term expected rate of 
return by weighting the expected future real rates of return by the target asset allocation percentage 
and by adding expected inflation (3.25%).  In addition, the final 7.25% assumption reflected a 
reduction of 0.08% for adverse deviation.
35

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
The total pension liability in the October 1, 2014, actuarial valuation was determined using the 
following actuarial assumptions, applied to all periods included in the measurement: 
Inflation
3.00%
Salary increases
5.0%, average, including inflation
Not included
Ad hoc   cost of living adjustments
Investment rate of return
7.75%, net of pension plan
investment expense, including inflations
Mortality rates were based on the Society of Actuaries RP-2014 Mortality Table with Projection 
Scale MP-2014. 
The actuarial assumptions used in the October 1, 2014, valuation were based on the results of an 
actuarial experience study for the period 2005-2013.   
The long-term expected rate of return used in the October 1, 2014, valuation on pension plan 
investments was determined using a building-block method in which expected future real rates of 
return (expected returns, net of pension plan investment expense and inflation) are developed for 
each major asset class.  These components are combined to produce the long-term expected rate of 
return by weighting the expected future real rates of return by the target asset allocation percentage 
and by adding expected inflation (3.00%).  In addition, the final 7.75% assumption reflected a 
reduction of 0.10% for adverse deviation. 
The target allocation and expected arithmetic real rates of return for each major asset class are 
summarized in the following table: 
2015
2014
Long-Term
Long-Term
Target 
Allocation
Expected Real
Rate of Return
Expected Real
Rate of Return
Asset Class
Domestic equity
International equity
Fixed income
65%
10%
25%
5.2%
5.5%
1.7%
5.8%
6.2%
1.7%
Total
100%
36

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
Discount Rate
The discount rate used to measure the total pension liability was 7.25% and 7.75% at October 1, 
2015 and 2014, respectively.  The projection of cash flows used to determine the discount rate 
assumed that employee contributions will be made at the current contribution rate and that 
employer contributions will be made at rates equal to the difference between actuarially determined 
contribution rates and the employee rate.  Based on those assumptions, the pension plan’s fiduciary 
net position was projected to be available to make all projected future benefit payments of current 
active and inactive employees.  Therefore, the long-term expected rate of return on pension plan 
investments was applied to all periods of projected benefit payments to determine the total pension 
liability. 
Changes in the total pension liability, plan fiduciary net position and the net pension liability are: 
2016
Total
Pension
Liability
(a)
Plan
Fiduciary
Net Position
(b)
Net
Pension
Liability (Asset)
(a) - (b)
Balances at September  30, 2015
$
194,004
$
184,459
$
9,545
Changes for the year
Service cost
12,181
14,805
-
-
12,181
14,805
Interest on total pension  liability
Differences between expected
and actual experience
Contributions—employee
Contributions—employer
Net investment loss
1,720
-
1,641
12,313
(2,629)
1,720
(1,641)
(12,313)
2,629
-
-
-
Benefit payments, including  refunds
of employee contributions
Administrative expenses
Assumption changes
(6,069)
-
(4,900)
(6,069)
(587)
-
-
587
(4,900)
Net changes
17,737
4,669
13,068
22,613
Balances at September  30, 2016
$
211,741
$
189,128
$
37

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
2015
Total
Pension
Liability
(a)
Plan
Fiduciary
Net Position
(b)
Net
Pension
Liability (Asset)
(a) - (b)
Balances at September 30,  2014
$
170,583
$
158,554
$
12,029
Changes for the year
Service cost
11,556
12,953
-
-
11,556
12,953
Interest on total pension liability
Differences between expected
and actual experience
Contributions - employee
Contributions - employer
Net investment income
Benefit payments, including refunds
of employee contributions
Administrative expenses
Assumption changes
(717)
-
1,574
11,625
20,134
(717)
(1,574)
(11,625)
(20,134)
-
-
-
(7,021)
-
6,650
(7,021)
(407)
-
-
407
6,650
Net changes
23,421
25,905
(2,484)
9,545
Balances at September 30,  2015
$
194,004
$
184,459
$
The net pension liability of the District has been calculated using a discount rate of 7.25% and 
7.75% at October 1, 2015 and 2014, respectively.  The following presents the net pension liability 
using a discount rate 1% higher and 1% lower than the current rate as of September 30, 2016 and 
2015. 
Current Discount
1% Decrease
6.25 %
Rate
1% Increase
8.25 %
7.25 %
District's net pension liability
as of September 30, 2016
$
49,486
$
22,613
$
424
38

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
Prior
1% Decrease
6.75 %
Discount Rate
7.75 %
1% Increase
8.75 %
District's net pension liability
as of September 30, 2015
$
35,635
$
9,545
$
(11,931)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of 
Resources Related to Pensions 
For the year ended September 30, 2016 and 2015, the District recognized pension expense of 
$14,048 and $10,810, respectively.  At September 30, 2016 and 2015, the District reported deferred 
outflows of resources and deferred inflows of resources related to pensions from the following 
sources: 
2016
Deferred
Deferred
Outflows of
Resources
Inflows of
Resources
Differences between expected and actual experience
Employer contributions subsequent to the measurement date
Changes of assumptions
Net difference between projected and
     actual earnings on plan investments
$
$
1,353
13,579
4,016
$
$
433
-
3,855
8,581
-
27,529
4,288
2015
Deferred
Deferred
Outflows of
Resources
Inflows of
Resources
Differences between expected and actual experience
Employer contributions subsequent to the measurement date
Changes of assumptions
Net difference between projected and
     actual earnings on plan investments
$
$
-
12,313
5,333
$
$
575
-
-
-
6,428
7,003
17,646
39

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
At September 30, 2016 and 2015, the District reported $13,579 and $12,313, respectively, as 
deferred outflows of resources related to pensions resulting from District contributions subsequent 
to the measurement date that will be recognized as a reduction of the net pension liability at 
September 30, 2017 and 2016.   
Other amounts reported as deferred outflows of resources and deferred inflows of resources at 
September 30, 2016, related to pensions will be recognized in pension expense as follows: 
Year ending September 30
2017
2018
2019
2020
$
2,240
2,240
2,240
2,942
$
9,662
Pension Plan Fiduciary Net Position 
As of October 1, 2015 and 2014, the Plan’s fiduciary net position was comprised of the following: 
2015
2014
Cash and cash equivalents
Investments, at fair value
Common stocks
$
274
$
77
75,508
316,089
243,276
28,283
103
72,370
250,081
208,347
25,816
-
Mutual funds
Common/collective trust funds
103-12 investment fund
Government securities
Total investments at fair value
$
$
663,259
663,533
$
$
556,614
556,691
Total Plan Fiduciary Net Pension
The District’s interest in the Plan net position as of the measurement date of October 1, 2015 and 
2014, was $189,128 and $184,459, respectively. 
40

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
Investment Policy – Investment policy decisions are established and maintained by the Trustees of 
the THA Retirement Plan for Member Hospitals.  The Trustees have several asset mix alternatives 
from which participating employers may choose in order to control risk.  The Trustees employ and 
select investment managers with the advice of investment counsel which is completely independent 
of the investment managers. 
The primary goal of a pension fund is to help pay the cost of the pension plan while providing 
adequate security to meet the benefits promised under the plan.  As a consequence, two important 
dimensions of a pension plan’s investment program are expected return and expected risk. 
The plan trustees diversify plan investments among asset classes, recognizing that there is a 
relationship between the level of risk assumed in an investment program and the level of return that 
should be expected.  Appropriate diversification better enables to balance risk and return.  The 
fund’s diversification guidelines are set forth below: 
Target Asset 
Asset Class/Style
Mix
Large Cap U.S Equities
Small Cap U.S. Equities
International Equities
50%
15%
10%
Total Equities
75%
Intermediate fixed income
Long duration fixed income
25%
0%
Total fixed income
25%
The Trustees maintain a portfolio structure that may combine active and passive management in 
order to balance the objectives of enhanced return and cost control. 
Passive equity and fixed income portfolios invest in a substantially similar manner as that of the 
underlying benchmark. 
Active equity managers have the following requirements: 
•    The equity portion of the portfolio should not be less that 90 percent of the portfolio, measured 
at market value. 
•    Equity holdings in  any one economic sector should not exceed the greater of 30 percent of the 
portfolio or 10 percentage points above the sector weight in the benchmark.
41

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
•    Equity holdings in any single company (including common stock and convertible securities) 
should not exceed 10 percent of the portfolio. 
Active Fixed Income managers have the following requirements: 
•    The primary investments should be government, corporate and mortgage securities. 
•    Holdings in obligations of any single entity (with the exception of  the U.S. government and/or 
its agencies) should not exceed 5 percent of the portfolio.  
The common collective trust fund investment objective is to approximate as closely as practicable, 
before expenses, to the performance of the S&P 500 Index over the long term. 
The 103-12 investment fund objective is to approximate as closely as practicable to the 
performance of the MSCI EAFE Index. 
Investment Rate of Return – The annual money-weighted rate of return on pension plan 
investments, net of expenses, which expresses net investment performance adjusted for changing 
amounts actually invested each month was (1.8%) for the 12 months ended October 1, 2015.
Credit Risk –  Credit risk is the risk that the issuer or other counterparty to an investment will not 
fulfill its obligations.  It is the Plan’s policy to limit its holdings in obligations of any single entity, 
excluding U.S. government and its agencies, to 5% of the portfolio. 
Custodial Credit Risk –  For an investment, custodial credit risk is the risk that, in the event of the 
failure of the counterparty, the Plan will not be able to recover the value of its investment or 
collateral securities that are in the possession of an outside party.  All of the Plan’s investments are 
held in trust accounts. 
Concentration of Credit Risk –  It is the Plan’s policy to limit equity holdings in any one economic 
sector to the greater of 30% of the portfolio or 10% above the sector weight in the benchmark and 
limit equity holdings in any single company to 10% of the portfolio.  Additionally, the Plan’s 
policy limits holdings in fixed income obligations of any single entity, excluding U.S. government 
and its agencies, to 5% of the portfolio.
42

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
The following table reflects the Plan’s investments in single issuers that represent more than 5% of 
total investments: 
2015
2014
State Street S&P 500 Index NL Fund
Vanguard Small Cap Index
Dodge & Cox International Stock
State Street Aggregate Bond Index NL Fund
PIMCO Total Return
36.7%
14.4%
4.2%
13.8%
14.9%
37.4%
14.8%
5.2%
10.7%
10.7%
Following is a description of the valuation methodologies and inputs used for pension plan assets 
measured at fair value on a recurring basis, as well as the general classification of pension plan 
assets pursuant to the valuation hierarchy. 
The fair value of the pension plan assets at October 1, 2015 and 2014, were as follows: 
Fair Value Measurements Using
Quoted 
Prices in 
Active Markets 
for Identical 
Significant 
Other 
Significant 
Observable 
Unobservable 
Carrying
Amount
Assets
(Level 1)
Inputs 
(Level 2)
Inputs
(Level 3)
October 1, 2015
Investments by fair  value level
Common stocks
Mutual funds
$
75,508
316,089
103
$
$
75,508
316,089
-
$
-
-
103
$
$
-
-
-
Government securities
Total investments  by fair value level
391,700
391,597
$
103
-
Investments measured  at the
net asset value  (NAV) (A)
Common/collective trust  fund
103-12 investment  fund
243,276
28,283
Total investments measured  at the NAV
Total investments measured  at fair value
271,559
663,259
$
43

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
Fair Value Measurements Using
Quoted 
Prices in 
Active Markets 
for Identical 
Significant 
Other 
Significant 
Observable 
Unobservable 
Carrying
Amount
Assets
(Level 1)
Inputs 
(Level 2)
Inputs
(Level 3)
October 1, 2014
Investments by fair  value level
Common stocks
Mutual funds
$
72,370
250,081
$
$
72,370
250,081
$
-
-
$
$
-
-
Total investments  by fair value level
322,451
322,451
$
-
-
Investments measured  at the
net asset value  (NAV) (A)
Common/collective  trust fund
103-12 investment  fund
208,347
25,816
Total investments  measured at the NAV
Total investments  measured at fair value
234,163
556,614
$
(A)
Certain investments that are measured at fair value using the net asset value per share (or its 
equivalent) practical expedient have not been classified in the fair value hierarchy.  The fair 
value amounts included above are intended to permit reconciliation of the fair value 
hierarchy to the amounts disclosed for total plan investments at fair value.  
Where quoted market prices are available in an active market, securities are classified within 
Level 1 of the valuation hierarchy.  If quoted market prices are not available, then fair values are 
estimated by using quoted prices of securities with similar characteristics or independent asset 
pricing services and pricing models, the inputs of which are market-based or independently sourced 
market parameters, including, but not limited to, yield curves, interest rates, volatilities, 
prepayments, defaults, cumulative loss projections and cash flows.  Such securities are classified in 
Level 2 of the valuation hierarchy.  In certain cases where Level 1 or Level 2 inputs are not 
available, securities are classified within Level 3 of the hierarchy.  The Plan did not hold any Level 
3 securities at October 1, 2015 or 2014. 
The valuation method for investments measured at the net asset value (NAV) per share (or its 
equivalent) are presented as above. There were no unfunded commitments or redemption 
restrictions for these funds.
44

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
Other Benefit Plans 
The District has an IRC Section 401(a) plan that includes an employer match calculated as 50% of 
an employee’s contribution to the IRC Section 403(b) plan discussed below, up to 4% of pay.  The 
contributions for the employer match on the plan were approximately $4,314 and $3,925 for the 
years ended September 30, 2016 and 2015, respectively. 
In addition, the District offers its employees a tax-deferred annuity plan created in accordance with 
IRC Section 457.  The Plan, available to all District employees, permits them to defer a portion of 
their salary until future years.  All amounts of compensation deferred under the Plan and income 
attributable to those amounts are solely the property of the employee.  Thus, the Plan amounts are 
not reported in the accompanying financial statements. 
The District also offers its employees a tax-deferred annuity plan created in accordance with IRC 
Section 403(b).  The Plan, available to all District employees, permits them to defer a portion of 
their salary until future years.  All amounts of compensation deferred under the Plan and income 
attributable to those amounts are solely the property of the employee.  Thus, the Plan amounts are 
not reported in the financial statements.  Employee contributions were $11,326 and $10,162 for the 
years ended September 30, 2016 and 2015, respectively. 
The District has a Governmental Excess Benefit Arrangement Plan for executives approved by the 
Board.  This plan is to provide participants in the defined benefit plan that portion of the 
participant’s benefits that would otherwise be payable under the terms of the defined benefit plan, 
except for the limitations on benefits imposed by Section 415(b) of the IRC.  Contributions to this 
plan are included in noncurrent cash and investments and the plan liability is recorded in other 
long-term liabilities in the balance sheets.  As of September 30, 2016 and 2015, $824 and $345, 
respectively, in contributions are included in noncurrent cash and investments and $877 and $477, 
respectively, was due under this plan.  Approximately $478 and $150 of benefit expense was 
recognized in 2016 and 2015, respectively. 
Note 14:   Related Party Transactions
The District is party to an indigent care affiliation agreement with the Tarrant County Indigent Care 
Corporation (TCICC), a non-profit corporation comprised of affiliated Tarrant County hospitals.  
This agreement was intended to increase funding for the Medicaid population and to access federal 
funding for the indigent population of Tarrant County through the Texas Medicaid Supplemental 
Payment Program also known as the Private Upper Payment Limit Program (UPL).  During 2012, 
funding through the UPL program was largely replaced with funding from the Waiver.  This 
program allows for continued funding under the current TCICC agreement. 
45

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
Under this program, the District contributes certain government funds to the state of Texas, limited 
to the amount allowed based on aggregate statewide funding caps.  TCICC uses the funds received 
for medical direction and indigent care for services to the Tarrant County indigent care population 
provided at the District’s facilities.  Prior to this agreement, the medical direction and indigent care 
services were funded by the District. 
Services provided by TCICC were valued at approximately $33,721 and $45,308 for the years 
ended September 30, 2016 and 2015, respectively.  As part of the affiliation agreement, the District 
provided $25,549 and $34,012 in funding to the program for the years ended September 30, 2016 
and 2015, respectively.  The District recognizes revenue from contributed services equal to the 
difference in the value of the services provided by TCICC and the program funding provided by 
the District.  Contributed services revenue was $8,171 and $11,296 for 2016 and 2015, 
respectively. 
Should TCICC cease providing these services, the District has entered a standby agreement with 
physicians participating in this program under which the District would assume the payment 
obligations of TCICC.  
Note 15:   Disclosures About Fair Value of Assets and Liabilities
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an 
orderly transaction between market participants at the measurement date.  Fair value measurements 
must maximize the use of observable inputs and minimize the use of unobservable inputs.  There is 
a hierarchy of three levels of inputs that may be used to measure fair value: 
Level 1
Level 2
Quoted prices in active markets for identical assets or liabilities 
Observable inputs other than Level 1 prices, such as quoted prices for similar assets 
or liabilities; quoted prices in markets that are not active; or other inputs that are 
observable or can be corroborated by observable market data for substantially the 
full term of the assets or liabilities 
Level 3
Unobservable inputs supported by little or no market activity and are significant to 
the fair value of the assets or liabilities 
46

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
Recurring Measurements 
The following table presents the fair value measurements of assets and liabilities recognized in the 
accompanying financial statements measured at fair value on a recurring basis and the level within 
the fair value hierarchy in which the fair value measurements fall at September 30: 
Fair Value  Measurements Using
Quoted
Prices in
Active Markets
for Identical
Significant
Other
Significant
Observable
Unobservable
Carrying
Amount
Assets
(Level 1)
Inputs
(Level 2)
Inputs
(Level 3)
September 30, 2016
Investments by fair value level
U.S. Treasury obligations
U.S. agency obligations
Investment pool
Municipal bonds
Commercial paper
Mutual funds
$
30,712
$
$
-
-
-
-
-
$
30,712
38,085
104,610
5,564
180,391
-
$
$
-
38,085
104,610
5,564
180,391
375
-
-
-
-
-
375
Total investments by fair value level
359,737
375
$
359,362
-
Investment pool carried at
amortized cost
1,118
Total investments
$
360,855
47

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
Fair Value  Measurements Using
Quoted
Prices in
Significant
Other
Active Markets
for Identical
Significant
Observable
Unobservable
Carrying
Amount
Assets
(Level 1)
Inputs
(Level 2)
Inputs
(Level 3)
September 30, 2015
Investments by fair value level
U.S. Treasury obligations
U.S. agency obligations
Investment pool
Municipal bonds
Commercial paper
Money market mutual funds
Mutual funds
$
716
$
$
-
-
-
-
-
$
716
$
$
-
45,540
109,378
5,674
29,944
37
45,540
109,378
5,674
29,944
37
-
-
-
-
-
-
-
528
528
-
Total investments by fair value level
191,817
528
$
191,289
-
Investment pool carried at
amortized cost
1,463
Total investments
$
193,280
Investments 
Where quoted market prices are available in an active market, securities are classified within 
Level 1 of the valuation hierarchy.  If quoted market prices are not available, then fair values are 
estimated by using quoted prices of securities with similar characteristics or independent asset 
pricing services and pricing models, the inputs of which are market-based or independently sourced 
market parameters, including, but not limited to, yield curves, interest rates, volatilities, 
prepayments, defaults, cumulative loss projections and cash flows.  Such securities are classified in 
Level 2 of the valuation hierarchy.  In certain cases where Level 1 or Level 2 inputs are not 
available, securities are classified within Level 3 of the hierarchy.  The District held no Level 3 
investments as of September 30, 2016 or 2015. 
48

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
Note 16:   Condensed Combining Information
The following tables include condensed combining balance sheet information for the District and 
its blended component units as of September 30, 2016 and 2015: 
September 30, 2016
Hospital
Acclaim
Foundation
Eliminations
Total
Assets and Deferred Outflows of Resources
Current assets
Due from affiliates
Noncurrent cash and investments
Capital assets, net
Other noncurrent assets
Total assets
$            494,078 
14,164
187,808
270,883
-
$           7,204 
7,608
-
-
-
$           1,160 
 $         (2,863)
(21,799)
-
-
-
$            499,579 
27
1,947
1
195
3,330
-
189,755
270,884
195
966,933
14,812
(24,662)
960,413
Deferred outflows of resources
27,529
-
-
-
27,529
Total assets and deferred outflows
of resources
$
994,462
$
14,812
$
3,330
$
(24,662)
$
987,942
Liabilities, Deferred Inflows of Resources and Net Position
Current liabilities
Due to affiliates
$              85,767 
7,635
1,550
40,092
22,613
$           5,920 
14,086
-
-
-
-
20,006
$                17 
78
-
-
-
 $         (2,863)
(21,799)
-
-
-
-
(24,662)
$              88,841 
-
1,550
40,092
22,613
964
Estimated self-insurance costs
Long-term debt
Net pension liability
Other long-term liabilities
Total liabilities
964
158,621
-
95
154,060
Deferred inflows of resources
Net Position
4,288
-
-
-
4,288
Net investment in capital assets
Restricted expendable
Restricted nonexpendable
Unrestricted
227,823
-
-
603,730
831,553
-
-
-
(5,194)
(5,194)
1
2,008
315
911
3,235
-
-
-
-
-
227,824
2,008
315
599,447
829,594
Total net position
Total liabilities, deferred inflows of
resources and net position
$
994,462
$
14,812
$
3,330
$
(24,662)
$
987,942
49

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
September 30, 2015
Hospital
JPSPG
Foundation
Eliminations
Total
Assets
Current assets
$
499,808
$
30,266
2,225
-
1,271
33,762
$
529
25
2,159
2
$
(1,451)
(3,139)
-
-
(4,590)
$
529,152
-
187,536
289,046
1,005,734
Due from affiliates
Noncurrent cash and investments
Capital assets, net
889
185,377
287,773
973,847
Total assets
2,715
Deferred outflows of resources
17,646
-
-
-
17,646
Total assets and deferred outflows
of resources
$
$
991,493
$
33,762
$
2,715
$
$
(4,590)
$
$
1,023,380
Liabilities and Net Position
Current liabilities
Due to affiliates
Estimated self-insurance costs
Long-term debt
Net pension liabilities
Other long-term liabilities
Total liabilities
145,381
2,250
1,422
43,307
9,545
483
$
5,687
855
-
-
-
$
36
34
-
-
-
(1,451)
(3,139)
-
-
-
-
(4,590)
149,653
-
1,422
43,307
9,545
1,420
205,347
937
7,479
-
70
202,388
Deferred inflows of resources
Net Position
7,003
-
-
-
7,003
Net investment in capital assets
Restricted expendable
Restricted nonexpendable
Unrestricted
238,710
-
-
1,271
-
-
2
1,646
315
-
-
-
-
239,983
1,646
315
543,392
25,012
682
569,086
Total net position
Total liabilities, deferred inflows of
resources and net position
782,102
991,493
26,283
33,762
2,645
2,715
-
811,030
$
$
$
$
(4,590)
$
1,023,380
The following tables include condensed combining statements of revenues, expenses and changes 
in net position information for the District and its blended component units for the years ended 
September 30, 2016 and 2015: 
September  30, 2016
Hospital
JPSPG
Acclaim
Foundation
Eliminations
Total
Operating revenues
Operating expenses
$            571,852 
879,287
$
-
-
$         18,591 
23,789
$              130 
2,512
 $             (14,537)
(16,283)
$            576,036 
889,305
Operating income (loss)
Nonoperating revenues (expenses)
Capital grants
(307,435)
330,497
106
-
-
-
(26,283)
(26,283)
26,283
-
(5,198)
4
-
(2,382)
2,972
-
-
1,746
(1,746)
-
-
(313,269)
331,727
106
Transfer of JPSPG net position
26,283
-
-
Increase (decrease) in net position
Net position, beginning of year
Net position, end of year
49,451
(5,194)
-
590
-
-
18,564
782,102
2,645
811,030
$
831,553
$
$
(5,194)
$
3,235
$
-
$
829,594
50

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Notes to Financial Statements
September 30, 2016 and 2015
(In Thousands) 
September 30, 2015
Hospital
JPSPG
Foundation
Eliminations
Total
Operating revenues
Operating expenses
$
535,774
808,330
$
49,627
42,894
$
161
2,394
$
(19,219)
(20,676)
$
566,343
832,942
Operating income (loss)
Nonoperating revenues (expenses)
Capital grants
(272,556)
317,163
85
6,733
58
-
(2,233)
2,406
-
1,457
(1,457)
-
(266,599)
318,170
85
Increase in net position
44,692
737,410
782,102
6,791
19,492
26,283
173
2,472
2,645
-
-
-
51,656
759,374
811,030
Net position, beginning of year
Net position, end of year
$
$
$
$
$
The following tables include condensed combining statements of cash flows information for the 
District and its blended component units for the years ended September 30, 2016 and 2015: 
September  30,  2016
Hospital
JPSPG
Acclaim
Foundation
Eliminations
Total
Net cash provided by (used in)
Operating activities
Noncapital financing activities
Capital and related financing activities
Investing activities
$           (229,171)
338,984
(27,306)
(88,166)
(5,659)
$                   - 
(19,675)
-
-
(19,675)
$           1,065 
-
-
4
1,069
$              194 
-
-
42
236
 $                        - 
$           (227,912)
319,309
(27,306)
(88,120)
(24,029)
-
-
-
-
Increase in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
184,969
19,675
-
2,265
-
206,909
$
179,310
$
-
$
1,069
$
2,501
$
-
$
182,880
September 30, 2015
Foundation
Hospital
JPSPG
Eliminations
Total
Net cash provided by (used  in)
Operating activities
Noncapital financing activities
Capital and related financing  activities
Investing activities
$
(181,174)
305,474
(43,360)
(23,519)
57,421
$
1,312
-
-
58
1,370
$
174
-
-
10
184
$
-
-
-
-
-
$
(179,688)
305,474
(43,360)
(23,451)
58,975
Increase in cash and cash equivalents
Cash and cash equivalents,  beginning of year
Cash and cash equivalents,  end of year
127,548
184,969
18,305
19,675
2,081
2,265
-
-
147,934
206,909
$
$
$
$
$
51

 
Required Supplementary Information

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Schedule of Changes in District's Net Position Liability and Related Ratios
Year Ending September 30,
(In Thousands) 
2016
2015
Total pension liability
Service cost
Interest on total pension liability
Differences between expected and actual experiend
Changes of assumptions
Benefit payments, including refunds of employee contributions
$
12,181
14,805
1,720
(4,900)
(6,069)
$
11,556
12,953
(717)
6,650
(7,021)
Net change in total pension liability
Total pension liability—beginning
Total pension liability—ending (a)
17,737
194,004
211,741
23,421
170,583
194,004
$
$
$
$
Plan fiduciary net position
Contributions—employer
Contributions—employee
12,313
1,641
11,625
1,574
Net investment income (loss)
Benefit payments, including refunds of employee contributions
Administrative expense
(2,629)
(6,069)
(587)
20,134
(7,021)
(407)
Net change in plan fiduciary net position
Plan fiduciary net position—beginning
Plan fiduciary net position—ending (b)
District's net pension liability—ending (a) – (b)
4,669
184,459
189,128
25,905
158,554
184,459
$
$
$
$
22,613
9,545
Plan fiduciary net position as a percentage  of the total pension liability
Covered-employee payroll
District's net pension liability as a percentage  of covered-employee payroll
89.32%
182,418
12.40%
95.08%
178,847
5.34%
$
$
Notes to Schedule:
Changes of assumptions:
1) Investment return reduced to 7.25%
2) Mortality updated to RP-2014 projected  from 2006 base year using MP-2015
3) Withdrawal/Termination and Retirement Rates changed to reflect recent experience
4) Aggregate Payroll Growth Assumption and Form of Payment Assumption change to reflect
recent experience.
This schedule is presented as of October 1, which is the measurement date.
This schedule is presented to illustrate the requirement to show information for 10  years.  However, until a full 10-year
trend is compiled, the District will present information for those years for which information is available.   All amounts
are in thousands, unless otherwise indicated.
51

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Schedule of District Contributions
Year Ending September 30,
(In Thousands) 
Contributions
as a
percentage  of
covered-
employee
payroll
Contributions
in relation to
the actuarially
determined
Actuarially
determined
contribution
Contribution
deficiency
(excess)
Covered-
employee
payroll
Year Ending
September 30,
contribution
2016
2015
$
$
13,579
12,313
$
$
13,579
12,313
$
$
-
-
$
$
201,170
182,418
6.75%
6.75%
Notes to Schedule:
Valuation date:  October  1, 2015
Actuarially determined contribution  rates are calculated as  of October 1, which is the most recent  valuation date
prior to the end of  the fiscal year in which contributions are  reported.
Methods and assumptions  used to determine contribution rates:
Actuarial cost method
Entry age
Amortization method
Level percentage of  payroll, open
Remaining amortization period
9 years at October  1, 2015; recalculated annually; employer  contribution rate
constant unless amortization  period > 25 years or ≤ 0 years
5-year smoothed market
Asset valuation method
Inflation
3.25%
Salary increases
Investment rate of return
Retirement age
Mortality
5.0%, average, including  inflation
7.25%, net of pension  plan investment expense, including  inflation
60
RP-2014 Total  Employee Mortality Table, Projected  from 2006 base year with Scale
MP-2015 mortality  improvement scale
This schedule is presented  to illustrate the requirement  to show information for 10 years.  However,  until a full 10-year trend is
compiled, the District  will present information for those years for  which information is available.  All amounts  are in thousands
unless otherwise indicated.
52

 
Other Information

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Balance Sheet Information
September 30, 2016
(In Thousands) 
Assets and Deferred Outflow  of Resources
Hospital
Acclaim
Foundation
Eliminations
Total
Current Assets
Cash and cash equivalents
Short-term investments
$
179,227
$
1,212
-
2,733
-
1,353
-
-
1,906
$
869
-
-
-
-
-
-
$
-
-
(952)
-
-
-
-
$
181,308
204,612
49,845
4,169
37,531
145
204,612
48,064
4,169
36,178
145
Patient accounts receivable, net
Property taxes receivable, net
Supplemental Medicaid funding receivable
Internally designated for self-insurance, current portion
Supplies inventory
10,446
11,237
10,446
11,523
Prepaid expenses and other assets
291
(1,911)
Total current assets
494,078
14,164
7,204
7,608
1,160
27
(2,863)
499,579
-
Due from Affiliates
(21,799)
Noncurrent Cash and Investments
Internally designated for debt service
Internally designated for self-insurance
Restricted by donors for capital acquisitions and
specific operating activities
600
11,807
-
-
-
-
-
-
600
11,807
-
175,401
187,808
-
-
1,947
-
-
1,947
175,401
189,755
195
Internally designated for capital acquisitions and 
operating activities
-
-
Total noncurrent cash and investments
Other Assets
-
1,947
195
1
-
-
-
Capital Assets, Net
270,883
966,933
27,529
-
14,812
-
-
(24,662)
-
270,884
960,413
27,529
Total assets
3,330
-
Deferred Outflows of Resources
Total assets and deferred 
outflows of resources
$
994,462
$
14,812
$
3,330
$
(24,662)
$
987,942

 
Liabilities, Deferred Inflows  of Resources
and Net Position
Hospital
Acclaim
Foundation
Eliminations
Total
Current Liabilities
Accounts payable
Accrued expenses
Due to third-party payers
Current portion of self-insurance costs
Current maturities of long-term debt
$
39,214
$
761
5,052
-
107
-
$
17
-
-
-
-
$
(2,863)
$
37,129
33,866
4,569
5,133
2,985
-
-
-
-
38,918
4,569
5,240
2,985
Total current liabilities
Due to Affiliates
85,767
7,635
1,550
40,092
22,613
964
5,920
17
78
-
(2,863)
88,841
-
14,086
(21,799)
Estimated Self-insurance Costs
Long-term Debt
-
-
-
-
-
-
-
-
1,550
40,092
22,613
964
-
Net Pension Liability
-
Other Long-term Liabilities
-
Total liabilities
158,621
4,288
20,006
-
95
-
(24,662)
-
154,060
4,288
Deferred Inflows of Resources
Net Position
Net investment in capital assets
Restricted expendable
Restricted nonexpendable
Unrestricted
227,823
-
-
-
-
-
1
2,008
315
-
-
-
-
227,824
2,008
315
603,730
(5,194)
911
599,447
Total net position
831,553
994,462
(5,194)
14,812
3,235
3,330
-
829,594
987,942
Total liabilities, deferred inflows of
resources and net position
$
$
$
$
(24,662)
$
53

 
Tarrant County Hospital District
d/b/a JPS Health Network
A Component Unit of Tarrant County, Texas
Statement of Revenues, Expenses and
Changes in Net Position Information
Year Ended September 30, 2016
(In Thousands) 
Hospital
JPSPG
Acclaim
Foundation
Eliminations
Total
Operating Revenues
Net patient service revenue
Supplemental Medicaid funding
Other operating revenue
$
366,553
154,032
51,267
$
-
-
-
$
4,173
1,353
13,065
$
-
-
130
$
(2,471)
-
(12,066)
$
368,255
155,385
52,396
Total operating revenues
571,852
-
18,591
130
(14,537)
576,036
Operating Expenses
Salaries and related expenses
Professional fees and purchased services
Supplies
Depreciation and amortization
Other
470,077
178,801
150,499
39,715
-
-
-
-
-
21,620
1,243
517
-
409
627
705
251
-
-
(15,583)
(85)
-
(615)
492,324
165,166
151,182
39,715
40,195
929
40,918
Total operating expenses
879,287
-
-
23,789
(5,198)
2,512
(16,283)
1,746
889,305
Operating Income (Loss)
(307,435)
(2,382)
(313,269)
Nonoperating Revenues (Expenses)
Property tax revenue
Contributed services
Contribution revenue
Interest expense
319,611
8,171
222
(1,430)
3,923
-
-
-
-
-
-
-
-
-
4
-
-
319,611
8,171
1,305
(1,430)
4,070
-
2,939
-
-
(1,856)
-
Investment return and other
33
110
Total nonoperating revenues (expenses)
330,497
-
4
2,972
(1,746)
331,727
Excess (Deficiency) of Revenues Over Expenses
Before Capital Grants and Gifts
23,062
106
-
-
(5,194)
590
-
-
-
18,458
106
-
Capital Grants and Gifts
-
-
-
-
Transfer of JPSPG Net Position
26,283
(26,283)
Increase (Decrease) in Net Position
Net Position, Beginning of Year
Net Position, End of Year
49,451
782,102
831,553
(26,283)
26,283
-
(5,194)
-
590
2,645
3,235
-
-
-
18,564
811,030
829,594
$
$
$
(5,194)
$
$
$
54