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      <Desc>ADVOCACY: AS THE LEADING NATIONAL ORGANIZATION REPRESENTING ESSENTIAL HOSPITALS-THOSE WITH A SAFETY-NET ROLE IN THEIR COMMUNITIES-AMERICA'S ESSENTIAL HOSPITALS REPRESENTS OUR MEMBERS' PERSPECTIVE BEFORE CONGRESS AND THE ADMINISTRATION ON LEGISLATION AND REGULATIONS PIVOTAL TO ESSENTIAL HOSPITALS' FISCAL VIABILITY AND SUSTAINABILITY. MAJOR ACCOMPLISHMENTS IN 2016 INCLUDED ACHIEVING LEGISLATIVE SUCCESS IN ENSURING HOSPITAL QUALITY MEASURES RECOGNIZE THE IMPACT OF SOCIOECONOMIC FACTORS AND PROVIDING SOME RELIEF FROM PAYMENT CUTS TO NEW HOSPITAL OUTPATIENT DEPARTMENTS. WE ALSO CONTINUED TO PROTECT HEALTH CARE COVERAGE FOR 30 MILLION AMERICANS WHO ARE ELIGIBLE FOR COVERAGE UNDER THE AFFORDABLE CARE ACT (ACA) AND WORKED TO STOP FUTURE CUTS TO MEDICAID DISPROPORTIONATE SHARE PAYMENTS. THE ASSOCIATION WORKED WITH ITS HOSPITALS TO SUPPORT THEIR EFFORTS TO SECURE STATE LEGISLATURES' APPROVAL OF MEDICAID EXPANSION AND EXPAND THE IMPLEMENTATION OF MEDICAID SYSTEM TRANSFORMATION WAIVERS.</Desc>
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        <Desc>POLICY: AS PART OF AMERICA'S ESSENTIAL HOSPITALS' ONGOING EFFORTS TO MINIMIZE FUTURE CUTS TO KEY ESSENTIAL HOSPITAL FUNDING SOURCES, THE ASSOCIATION ADVOCATED ON BEHALF OF ITS MEMBERS REGARDING MEDICARE PAYMENT TO HOSPITALS FOR INPATIENT AND OUTPATIENT SERVICES, INCLUDING MEDICARE DISPROPORTIONATE SHARE HOSPITAL PAYMENTS; SOUNDNESS AND STANDARDIZATION OF QUALITY MEASURES; HOSPITAL PARTICIPATION IN THE 340B DRUG PRICING PROGRAM; AND CONTINUING THE PROVISION OF MEDICAID SUPPLEMENTAL PAYMENTS. AMERICA'S ESSENTIAL HOSPITALS ALSO ADVANCED ESSENTIAL HOSPITALS' INTERESTS AS ESSENTIAL COMMUNITY PROVIDERS IN HEALTH INSURANCE MARKETPLACES AND PUBLISHED EDUCATIONAL MATERIALS FOR MEMBERS AND OTHER STAKEHOLDERS ON DELIVERY SYSTEM TRANSFORMATION, TRENDS IN MEDICAID MANAGED CARE, AND ALTERNATIVE PAYMENT MODELS.</Desc>
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          <ZIPCode>RESTRICTED</ZIPCode>
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        <TotalContributionsAmt>RESTRICTED</TotalContributionsAmt>
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      <OnlyInHouseLobbyingInd>0</OnlyInHouseLobbyingInd>
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        <Desc>DEFERRED COMPENSATION PLAN ASSETS</Desc>
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        <Desc>DEFERRED COMPENSATION PLAN PAYABLE</Desc>
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      <OtherLiabilitiesOrgGrp>
        <Desc>POST-RETIREMENT MEDICAL PLAN ANNUITY</Desc>
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        <Desc>DEFERRED IMPROVEMENT ALLOWANCE</Desc>
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      <OtherLiabilitiesOrgGrp>
        <Desc>DEFERRED RENT</Desc>
        <Amt>1620218</Amt>
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      <TotalLiabilityAmt>4783572</TotalLiabilityAmt>
      <FootnoteTextInd>X</FootnoteTextInd>
      <TotalRevEtcAuditedFinclStmtAmt>12348373</TotalRevEtcAuditedFinclStmtAmt>
      <NetUnrealizedGainsInvstAmt>229037</NetUnrealizedGainsInvstAmt>
      <DonatedServicesAndUseFcltsAmt>186434</DonatedServicesAndUseFcltsAmt>
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      <RevenueNotReportedAmt>445671</RevenueNotReportedAmt>
      <RevenueSubtotalAmt>11902702</RevenueSubtotalAmt>
      <InvestmentExpensesNotIncldAmt>30196</InvestmentExpensesNotIncldAmt>
      <RevenueNotReportedFinclStmtAmt>30196</RevenueNotReportedFinclStmtAmt>
      <TotalRevenuePerForm990Amt>11932898</TotalRevenuePerForm990Amt>
      <TotExpnsEtcAuditedFinclStmtAmt>10086900</TotExpnsEtcAuditedFinclStmtAmt>
      <DonatedServicesUseFcltsAmt>186434</DonatedServicesUseFcltsAmt>
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      <ExpensesNotReportedAmt>192459</ExpensesNotReportedAmt>
      <ExpensesSubtotalAmt>9894441</ExpensesSubtotalAmt>
      <InvestmentExpensesNotIncld2Amt>30196</InvestmentExpensesNotIncld2Amt>
      <ExpensesNotRptFinclStmtAmt>30196</ExpensesNotRptFinclStmtAmt>
      <TotalExpensesPerForm990Amt>9924637</TotalExpensesPerForm990Amt>
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>PART X, LINE 2:</FormAndLineReferenceDesc>
        <ExplanationTxt>FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015, THE ORGANIZATION HAS DOCUMENTED ITS CONSIDERATION OF FASB ASC 740-10, INCOME TAXES, THAT PROVIDES GUIDANCE FOR REPORTING UNCERTAINTY IN INCOME TAXES AND HAS DETERMINED THAT NO MATERIAL UNCERTAIN TAX POSITIONS QUALIFY FOR EITHER RECOGNITION OR DISCLOSURE IN THE COMBINED FINANCIAL STATEMENTS.</ExplanationTxt>
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      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>PART XI, LINE 2D - OTHER ADJUSTMENTS:</FormAndLineReferenceDesc>
        <ExplanationTxt>AEH PAC REVENUE INCLUDED IN FINANCIAL STATEMENTS 30,200.</ExplanationTxt>
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      <SupplementalInformationDetail>
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          <BusinessNameLine1Txt>COALITION TO PROTECT AMERICA'S HEALTH CARE</BusinessNameLine1Txt>
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      <RecipientTable>
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          <BusinessNameLine1Txt>CALIFORNIA ASSOCIATE OF PUBLIC HOSPITALS</BusinessNameLine1Txt>
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      <RecipientTable>
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      <RecipientTable>
        <RecipientBusinessName>
          <BusinessNameLine1Txt>ESSENTIAL HOSPITALS INSTITUTE</BusinessNameLine1Txt>
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          <CityNm>WASHINGTON</CityNm>
          <StateAbbreviationCd>DC</StateAbbreviationCd>
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      <IndependentConsultantInd>X</IndependentConsultantInd>
      <Form990OfOtherOrganizationsInd>X</Form990OfOtherOrganizationsInd>
      <CompensationSurveyInd>X</CompensationSurveyInd>
      <BoardOrCommitteeApprovalInd>X</BoardOrCommitteeApprovalInd>
      <SeverancePaymentInd>0</SeverancePaymentInd>
      <SupplementalNonqualRtrPlanInd>1</SupplementalNonqualRtrPlanInd>
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        <OtherCompensationFilingOrgAmt>72932</OtherCompensationFilingOrgAmt>
        <OtherCompensationRltdOrgsAmt>0</OtherCompensationRltdOrgsAmt>
        <DeferredCompensationFlngOrgAmt>137844</DeferredCompensationFlngOrgAmt>
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        <NontaxableBenefitsFilingOrgAmt>15306</NontaxableBenefitsFilingOrgAmt>
        <NontaxableBenefitsRltdOrgsAmt>0</NontaxableBenefitsRltdOrgsAmt>
        <TotalCompensationFilingOrgAmt>1012582</TotalCompensationFilingOrgAmt>
        <TotalCompensationRltdOrgsAmt>0</TotalCompensationRltdOrgsAmt>
        <CompReportPrior990FilingOrgAmt>0</CompReportPrior990FilingOrgAmt>
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      <RltdOrgOfficerTrstKeyEmplGrp>
        <PersonNm>RHONDA GOLD</PersonNm>
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        <DeferredCompensationFlngOrgAmt>60119</DeferredCompensationFlngOrgAmt>
        <DeferredCompRltdOrgsAmt>0</DeferredCompRltdOrgsAmt>
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        <NontaxableBenefitsRltdOrgsAmt>0</NontaxableBenefitsRltdOrgsAmt>
        <TotalCompensationFilingOrgAmt>534169</TotalCompensationFilingOrgAmt>
        <TotalCompensationRltdOrgsAmt>0</TotalCompensationRltdOrgsAmt>
        <CompReportPrior990FilingOrgAmt>0</CompReportPrior990FilingOrgAmt>
        <CompReportPrior990RltdOrgsAmt>0</CompReportPrior990RltdOrgsAmt>
      </RltdOrgOfficerTrstKeyEmplGrp>
      <RltdOrgOfficerTrstKeyEmplGrp>
        <PersonNm>KRISTINE METTER</PersonNm>
        <TitleTxt>VP, MEMBER SERVICES</TitleTxt>
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        <BonusFilingOrganizationAmount>67180</BonusFilingOrganizationAmount>
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        <OtherCompensationFilingOrgAmt>15652</OtherCompensationFilingOrgAmt>
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        <DeferredCompensationFlngOrgAmt>48379</DeferredCompensationFlngOrgAmt>
        <DeferredCompRltdOrgsAmt>0</DeferredCompRltdOrgsAmt>
        <NontaxableBenefitsFilingOrgAmt>7714</NontaxableBenefitsFilingOrgAmt>
        <NontaxableBenefitsRltdOrgsAmt>0</NontaxableBenefitsRltdOrgsAmt>
        <TotalCompensationFilingOrgAmt>315725</TotalCompensationFilingOrgAmt>
        <TotalCompensationRltdOrgsAmt>0</TotalCompensationRltdOrgsAmt>
        <CompReportPrior990FilingOrgAmt>0</CompReportPrior990FilingOrgAmt>
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      </RltdOrgOfficerTrstKeyEmplGrp>
      <RltdOrgOfficerTrstKeyEmplGrp>
        <PersonNm>SHAWN GREMMINGER</PersonNm>
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      <RltdOrgOfficerTrstKeyEmplGrp>
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        <CompReportPrior990FilingOrgAmt>0</CompReportPrior990FilingOrgAmt>
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      </RltdOrgOfficerTrstKeyEmplGrp>
      <RltdOrgOfficerTrstKeyEmplGrp>
        <PersonNm>ERIN O'MALLEY</PersonNm>
        <TitleTxt>DIRECTOR, POLICY</TitleTxt>
        <BaseCompensationFilingOrgAmt>150000</BaseCompensationFilingOrgAmt>
        <CompensationBasedOnRltdOrgsAmt>0</CompensationBasedOnRltdOrgsAmt>
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        <DeferredCompensationFlngOrgAmt>6660</DeferredCompensationFlngOrgAmt>
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        <NontaxableBenefitsFilingOrgAmt>8467</NontaxableBenefitsFilingOrgAmt>
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        <CompReportPrior990FilingOrgAmt>0</CompReportPrior990FilingOrgAmt>
        <CompReportPrior990RltdOrgsAmt>0</CompReportPrior990RltdOrgsAmt>
      </RltdOrgOfficerTrstKeyEmplGrp>
      <RltdOrgOfficerTrstKeyEmplGrp>
        <PersonNm>ALAN BURK</PersonNm>
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      <RltdOrgOfficerTrstKeyEmplGrp>
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        <TotalCompensationFilingOrgAmt>188996</TotalCompensationFilingOrgAmt>
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      <SupplementalInformationDetail>
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      <SupplementalInformationDetail>
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      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>FORM 990, PART VI, SECTION A, LINE 7A</FormAndLineReferenceDesc>
        <ExplanationTxt>SENIOR-LEVEL STAFF OR TRUSTEES OF AN ACTIVE FULL MEMBER ARE ELIGIBLE FOR ELECTION TO THE BOARD. THE MEMBERS OF THE BOARD ARE ELECTED ANNUALLY BY THE FULL MEMBERS FROM A SLATE OF CANDIDATES RECOMMENDED BY THE NOMINATING COMMITTEE. THE SLATE IS APPROVED BY THE MAJORITY VOTE OF THE FULL MEMBERS. FULL MEMBERS ARE CONSIDERED VOTING MEMBER WHO HAVE THE POWER TO ELECT OR APPOINT ONE OR MORE MEMBERS OF THE GOVERNING BODY. EACH FULL MEMBER HAS AT LEAST ONE VOTE ON EACH MATTER BROUGHT BEFORE THE MEMBERSHIP, WITH THE SPECIFIC NUMBER OF VOTES PROVIDED TO EACH FULL MEMBER TO BE DETERMINED BY THE BOARD OF DIRECTORS. NONVOTING MEMBERS DO NOT HAVE THE RIGHT TO VOTE ON ANY MATTER. AT ANY MEETING OF MEMBERS, EACH FULL MEMBER IS REPRESENTED BY AN INDIVIDUAL DESIGNATED BY THE FULL MEMBER TO EXERCISE VOTING RIGHTS ON BEHALF OF THE FULL MEMBER (THE "VOTING DELEGATE"). EACH FULL MEMBER DESIGNATES ONE VOTING DESIGNATE FOR EACH VOTE PROVIDED TO THE FULL MEMBER. FULL MEMBERS ARE SUBJECT TO THE APPROVAL OF THE BOARD OF DIRECTORS. THE PRESENCE OF MEMBERS WITH ONE-THIRD OF THE VOTING POWER CONSTITUTES A QUORUM. UNLESS OTHERWISE REQUIRED BY THE ASSOCIATION'S ARTICLES OF INCORPORATION OR BYLAWS, THE AFFIRMATIVE VOTE OF A MAJORITY OF THE VOTING POWER PRESENT AND VOTING AT A MEETING AT WHICH A QUORUM IS PRESENT REPRESENTS THE ACTION OF THE MEMBERSHIP.</ExplanationTxt>
      </SupplementalInformationDetail>
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>FORM 990, PART VI, SECTION B, LINE 11B</FormAndLineReferenceDesc>
        <ExplanationTxt>AMERICA'S ESSENTIAL HOSPITAL'S FORM 990 WAS PREPARED BY THE OUTSIDE ACCOUNTANTS AND REVIEWED BY ITS SENIOR MANAGEMENT AND AUDIT &amp; COMPLIANCE COMMITTEE. IT WAS THEN SENT TO THE FULL BOARD PRIOR TO BEING FILED WITH THE IRS.</ExplanationTxt>
      </SupplementalInformationDetail>
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>FORM 990, PART VI, SECTION B, LINE 12C</FormAndLineReferenceDesc>
        <ExplanationTxt>AMERICA'S ESSENTIAL HOSPITALS HAS A CONFLICT OF INTEREST POLICY, THE PURPOSE OF WHICH IS TO PROTECT THE ASSOCIATION'S INTERESTS WHEN ITS SENIOR STAFF (DEFINED AS PRESIDENT &amp; CEO, CFO, VICE PRESIDENTS AND DIRECTORS) OR BOARD CONSIDERS A TRANSACTION OR ARRANGEMENT THAT MIGHT BENEFIT THE PRIVATE INTEREST OF A MEMBER OF THE BOARD OR A SENIOR EXECUTIVE OF AMERICA'S ESSENTIAL HOSPITALS. IT APPLIES TO MATTERS BROUGHT FOR APPROVAL BY THE BOARD, OR ANY OF THEIR COMMITTEES, REGARDING WHICH A BOARD MEMBER OR A SENIOR EXECUTIVE HAS A FINANCIAL INTEREST. AT THE TIME AN ACTUAL OR POSSIBLE CONFLICT OF INTEREST ARISES OR THE INTERESTED PERSON BECOMES AWARE OF IT, THE BOARD MEMBER MUST DISCLOSE THE EXISTENCE OF THE FINANCIAL INTEREST TO THE CHAIR, CHIEF FINANCIAL OFFICER (CFO), OR THE BOARD. THE BOARD DETERMINES WHETHER THE OPPORTUNITY FOR BENEFIT IS MATERIAL UNDER THE CIRCUMSTANCES AND, THUS, WHETHER A CONFLICT OF INTEREST EXISTS WITH RESPECT TO THE TRANSACTION IN QUESTION. THE BOARD MAY VOID ANY SUCH CONTRACT OR TRANSACTION THAT IT DETERMINES IS A CONFLICT OF INTEREST. ANNUALLY, EACH SENIOR STAFF MEMBER (INCLUDING DIRECTORS) MUST COMPLETE A WRITTEN CONFLICT OF INTEREST QUESTIONNAIRE DISCLOSING ANY NEW RELATIONSHIPS, CIRCUMSTANCES OR TRANSACTIONS THAT MIGHT CREATE A POTENTIAL CONFLICT OF INTEREST. THE QUESTIONNAIRES ARE REVIEWED BY THE CFO TO DETERMINE IF THERE ARE ANY POTENTIAL CONFLICTS THAT SHOULD BE REVIEWED BY THE PRESIDENT &amp; CEO. ANY CONFLICTS OF INTEREST ARE RESOLVED AS APPROPRIATE.</ExplanationTxt>
      </SupplementalInformationDetail>
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>FORM 990, PART VI, SECTION B, LINE 15</FormAndLineReferenceDesc>
        <ExplanationTxt>AMERICA'S ESSENTIAL HOSPITALS' PRESIDENT AND CEO'S COMPENSATION IS REVIEWED ANNUALLY BY AN OUTSIDE CONSULTANT WITH EXPERTISE IN THE NON-PROFIT AND HEALTH FIELD. THE CONSULTANT REVIEWED THE COMPENSATION OF OTHER COMPARABLE POSITIONS IN PEER ORGANIZATIONS INCLUDING OTHER NATIONAL AND STATE ASSOCIATIONS AND UPDATED THIS DATA FOR MARKET CHANGES IN 2016. THE STUDY WAS REVIEWED BY THE COMPENSATION COMMITTEE. FOR OTHER KEY EMPLOYEES, THE ASSOCIATION PERIODICALLY ENGAGES AN OUTSIDE CONSULTANT TO CONDUCT COMPENSATION STUDIES IN THE PEER MARKET. THE LAST FULL COMPENSATION REVIEW TOOK PLACE IN 2013 AND THE DATA HAS BEEN UPDATED FOR 2016.</ExplanationTxt>
      </SupplementalInformationDetail>
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>FORM 990, PART VI, SECTION C, LINE 19</FormAndLineReferenceDesc>
        <ExplanationTxt>AMERICA'S ESSENTIAL HOSPITAL'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST.</ExplanationTxt>
      </SupplementalInformationDetail>
    </IRS990ScheduleO>
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        <DisregardedEntityName>
          <BusinessNameLine1Txt>ESSENTIAL HOSPITALS INSTITUTE</BusinessNameLine1Txt>
        </DisregardedEntityName>
        <USAddress>
          <AddressLine1Txt>401 NINTH STREET NW STE 900</AddressLine1Txt>
          <CityNm>WASHINGTON</CityNm>
          <StateAbbreviationCd>DC</StateAbbreviationCd>
          <ZIPCd>20004</ZIPCd>
        </USAddress>
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        <LegalDomicileStateCd>DC</LegalDomicileStateCd>
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        <PublicCharityStatusTxt>509(A)(3)</PublicCharityStatusTxt>
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          <CityNm>WASHINGTON</CityNm>
          <StateAbbreviationCd>DC</StateAbbreviationCd>
          <ZIPCd>20004</ZIPCd>
        </USAddress>
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        <PrimaryActivitiesTxt>POLITICAL INITIATIVES</PrimaryActivitiesTxt>
        <LegalDomicileStateCd>DC</LegalDomicileStateCd>
        <ExemptCodeSectionTxt>527</ExemptCodeSectionTxt>
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      <GiftGrntCapContriFromOthOrgInd>0</GiftGrntCapContriFromOthOrgInd>
      <LoansOrGuaranteesToOtherOrgInd>0</LoansOrGuaranteesToOtherOrgInd>
      <LoansOrGuaranteesFromOthOrgInd>0</LoansOrGuaranteesFromOthOrgInd>
      <DivRelatedOrganizationInd>0</DivRelatedOrganizationInd>
      <AssetSaleToOtherOrgInd>0</AssetSaleToOtherOrgInd>
      <AssetPurchaseFromOtherOrgInd>0</AssetPurchaseFromOtherOrgInd>
      <AssetExchangeInd>0</AssetExchangeInd>
      <RentalOfFacilitiesToOthOrgInd>0</RentalOfFacilitiesToOthOrgInd>
      <RentalOfFcltsFromOthOrgInd>0</RentalOfFcltsFromOthOrgInd>
      <PerformOfServicesForOthOrgInd>0</PerformOfServicesForOthOrgInd>
      <PerformOfServicesByOtherOrgInd>0</PerformOfServicesByOtherOrgInd>
      <SharingOfFacilitiesInd>1</SharingOfFacilitiesInd>
      <PaidEmployeesSharingInd>1</PaidEmployeesSharingInd>
      <ReimbursementPaidToOtherOrgInd>0</ReimbursementPaidToOtherOrgInd>
      <ReimbursementPaidByOtherOrgInd>1</ReimbursementPaidByOtherOrgInd>
      <TransferToOtherOrgInd>0</TransferToOtherOrgInd>
      <TransferFromOtherOrgInd>0</TransferFromOtherOrgInd>
      <TransactionsRelatedOrgGrp>
        <OtherOrganizationName>
          <BusinessNameLine1Txt>ESSENTIAL HOSPITALS INSTITUTE</BusinessNameLine1Txt>
        </OtherOrganizationName>
        <TransactionTypeTxt>N</TransactionTypeTxt>
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        <MethodOfAmountDeterminationTxt>ALLOCATION FROM GENERAL LEDGER</MethodOfAmountDeterminationTxt>
      </TransactionsRelatedOrgGrp>
      <TransactionsRelatedOrgGrp>
        <OtherOrganizationName>
          <BusinessNameLine1Txt>ESSENTIAL HOSPITALS INSTITUTE</BusinessNameLine1Txt>
        </OtherOrganizationName>
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        <MethodOfAmountDeterminationTxt>ALLOCATION FROM GENERAL LEDGER</MethodOfAmountDeterminationTxt>
      </TransactionsRelatedOrgGrp>
      <TransactionsRelatedOrgGrp>
        <OtherOrganizationName>
          <BusinessNameLine1Txt>ESSENTIAL HOSPITALS INSTITUTE</BusinessNameLine1Txt>
        </OtherOrganizationName>
        <TransactionTypeTxt>Q</TransactionTypeTxt>
        <InvolvedAmt>1708490</InvolvedAmt>
        <MethodOfAmountDeterminationTxt>AMOUNTS PAID FROM CHECK REGISTER</MethodOfAmountDeterminationTxt>
      </TransactionsRelatedOrgGrp>
      <TransactionsRelatedOrgGrp>
        <OtherOrganizationName>
          <BusinessNameLine1Txt>ESSENTIAL HOSPITALS INSTITUTE</BusinessNameLine1Txt>
        </OtherOrganizationName>
        <TransactionTypeTxt>B</TransactionTypeTxt>
        <InvolvedAmt>660000</InvolvedAmt>
        <MethodOfAmountDeterminationTxt>ACTUAL AMOUNT</MethodOfAmountDeterminationTxt>
      </TransactionsRelatedOrgGrp>
    </IRS990ScheduleR>
  </ReturnData>
</Return>