2017-08-11T13:50:05-05:00 2016-09-30 560747981 DIXON HUGHES GOODMAN LLP 500 RIDGEFIELD COURT ASHEVILLE NC 28806 990 2015-10-01 560583151 SCOTLAND MEMORIAL HOSPITAL INC SCOT 9102917920 500 LAUCHWOOD DRIVE LAURINBURG NC 28352 MATT PRACHT CFO 9102917920 2017-08-11 1 Amy Bibby P00445891 8282542254 2017-08-11 2015 2021-01-29 14:40:06Z MATT PRACHT 500 LAUCHWOOD DRIVE LAURINBURG NC 28352 160163746 0 X WWW.SCOTLANDHEALTH.ORG X 1945 NC TO OFFER A FULL RANGE OF ACUTE CARE AND INPATIENT SERVICES TO THE RESIDENTS SCOTLAND COUNTY, NORTH CAROLINA AND THE SURROUNDING AREA. 22 19 1181 120 0 -38463 704547 795923 151441769 156738444 908461 763053 989081 1000640 154043858 159298060 22950 18613 0 0 54315984 65766270 0 0 0 79110191 81134630 133449125 146919513 20594733 12378547 153633654 166993972 55963462 65319865 97670192 101674107 TO PROVIDE HIGH QUALITY, COMPASSIONATE HEALTH CARE. 0 0 128539931 18613 156803444 SEE SCHEDULE O 128539931 1 1 0 1 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 147 0 1 1181 1 1 1 0 0 0 0 0 0 0 0 0 X 22 19 0 1 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 1 NC X MELINDA BRISSON 9102917393 500 LAUCHWOOD DR LAURINBURG NC 28352 X MIKE VINSON CHAIR 2.00 3.00 X X 0 0 0 JANE ROGERS VICE CHAIR 2.00 5.00 X X 0 0 0 DAVID HARLING TREASURER 2.00 3.00 X X 0 0 0 RICHARD ALEXANDER MD TRUSTEE, PHYSICIAN 1.00 2.00 X 46550 0 0 KYLE CHAVIS TRUSTEE 1.00 2.00 X 0 0 0 RAY CHAVIS DDS TRUSTEE 1.00 2.00 X 0 0 0 BRAD FAULKENBERRY MD TRUSTEE 1.00 2.00 X 0 0 0 MILTON FARMER TRUSTEE 1.00 2.00 X 0 0 0 BETTY HASTY TRUSTEE 1.00 3.00 X 0 0 0 CHARLES JENKINS TRUSTEE 1.00 2.00 X 0 0 0 JOSHUA MALCOLM TRUSTEE 1.00 2.00 X 0 0 0 CAM STONE TRUSTEE 1.00 2.00 X 0 0 0 ALLEN MCLAURIN TRUSTEE 1.00 3.00 X 0 0 0 JEFF MERCER TRUSTEE 1.00 2.00 X 0 0 0 KEN NICHOLS TRUSTEE 1.00 3.00 X 0 0 0 MICHAEL O'DONNELL MD TRUSTEE 1.00 2.00 X 1400 0 0 KELVIN RAYBON MD TRUSTEE 1.00 2.00 X 600 0 0 CHIP SHYTLE TRUSTEE 1.00 2.00 X 0 0 0 BOBBY HINSON TRUSTEE 1.00 2.00 X 0 0 0 BECCA HUGHES TRUSTEE 1.00 3.00 X 0 0 0 JOHN NOBLES MD TRUSTEE, PHYSICIAN 1.00 42.00 X 333154 0 28926 STEPHEN LANUTI MD CHIEF OF MEDICAL STAFF 1.00 2.00 X X 52983 0 0 GREGORY WOOD CEO/PRESIDENT 40.00 8.00 X 380274 0 63563 MATT PRACHT CFO/VP FINANCE/ASST. TREAS 40.00 8.00 X 226890 0 57266 PAM ASHLEY SECRETARY 40.00 1.00 X 43094 0 9024 GRAY MILLS VICE PRESIDENT 40.00 X 166891 0 22996 PAT PHILLIPS SR. VICE PRESIDENT 40.00 X 187576 0 20891 JONATHAN ROWSON MD PHYSICIAN 40.00 X 249746 0 21497 PATRICIA MIDDLETON MD PHYSICIAN 40.00 X 295679 0 17491 JAMES STATEN MD PHYSICIAN 40.00 X 202296 0 28559 CHAMAINE BROOKS-LOCKLEAR MD PHYSICIAN 40.00 X 210749 0 28202 SHELLY LOWERY PHYSICIAN 40.00 X 190268 0 14197 CHI-DAI CHEN MD PHYSICIAN 40.00 X 181632 0 7386 2769782 0 319998 43 0 1 0 LIBERTY ANESTHESIA PLLC 16101 CADDIE COURT WAGRAM NC 28396 ANESTHESIA SERVICES 2256996 TRINITY HEALTHCARE STAFFING GROUP PO BOX 531741 ATLANTA GA 30353 MEDICAL SERVICES 1271156 CARDIOVASCULAR CTR OF SCOTLAND COUNTY PO BOX 3000 PINEHURST NC 28374 MEDICAL SERVICES 1168125 PRIVATE DIAGNOSTIC CLINIC 4825 CREEKSTONE DR STE 160-PDC FIN DURHAM NC 27703 MEDICAL SERVICES 831280 MORRISON MANAGEMENT SPECIALISTS PO BOX 102289 ATLANTA GA 30368 FOOD MANAGEMENT SERVICES 811017 100 795923 795923 Net Patient Service Revenue 621500 155188349 155188349 Other Operating Revenue 624100 1127035 1127035 MEANINGFUL USE REVENUE 900099 420994 420994 Hospice IT Contract 624100 2066 2066 156738444 1622161 1622161 399370 0 399370 399370 399370 6578 0 865686 6578 -865686 -859108 -859108 Cafeteria 722210 525659 525659 Investment in MOB 900099 65000 65000 Miscellaneous Revenue 900099 10396 10396 215 215 601270 159298060 156803444 0 1698693 X 18150 18150 463 463 1356752 2649 1354103 48528521 44047629 4480892 3000600 2649625 350975 9888384 8731757 1156627 2992013 2642042 349971 1438796 1438796 576645 576645 44445 44445 72539 72539 17508765 14416936 3091829 561605 63011 498594 5223821 4577973 645848 324746 320946 3800 2283427 2039417 244010 491628 366762 124866 9112 646 8466 435927 435927 8937578 8937578 956220 956220 BAD DEBT 22507374 22507374 Medical Supplies 16090767 16090767 Provider Tax 2980956 2980956 MISCELLANEOUS EXPENSE 491853 491853 198426 198426 146919513 128539931 18379582 0 66593 46521 44319963 50012127 4433087 0 12015394 10555988 1404376 1370456 1187067 1379165 162154643 109020722 52660361 53133921 33992624 46005787 928229 713380 578555 535262 38955 16695 2008450 3224670 153633654 166993972 13308853 16173379 6318218 6040275 138267 20045 36198124 43086166 55963462 65319865 X 96801029 100626697 869163 1047410 97670192 101674107 153633654 166993972 X 12378547 2826163 -11200795 X X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 12401 12401 0 Part II-B, Line 1: SCOTLAND MEMORIAL HOSPITAL IS A MEMBER OF THE AMERICAN HOSPITAL ASSOCIATION AND NORTH CAROLINA HOSPITAL ASSOCIATION. A PORTION OF MEMBERSHIP DUES PAID TO THESE ASSOCIATIONS IS ALLOCATED TO LOBBYING EXPENSES. 1832897 1832897 89661354 61822915 27838439 63715841 43933076 19782765 6944551 3264731 3679820 53133921 Capital Lease Obligations 3580741 Accrued Interest Payable 170362 Estimated 3rd Party Settlements 12642031 Pension Plan Liability 26693032 43086166 X 128319037 2826163 2826163 125492874 72539 33732647 33805186 159298060 124315122 0 124315122 72539 22531852 22604391 146919513 Part X, Line 2: THE CORPORATION AND ITS NONPROFIT AFFILIATES ARE EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(A) AS ORGANIZATIONS DESCRIBED IN SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. THE LLC IS TREATED AS A PARTNERSHIP AND AS SUCH, THE INCOME FLOWS THROUGH TO THE OWNERS OF THE LLC. THE CORPORATION HAS DETERMINED THAT IT DOES NOT HAVE ANY MATERIAL UNRECOGNIZED TAX BENEFITS OR OBLIGATIONS AS OF SEPTEMBER 30, 2016. Part XI, Line 4b - Other Adjustments: BAD DEBT EXPENSE 22,507,374. TRANSFER OF EQUITY 2,831,766. PENSION PLAN ADJUSTMENT 8,369,029. GAIN ON SALE OF ASSETS 6,578. GRANTS INCLUDED IN REVENUE 17,900. Part XII, Line 4b - Other Adjustments: BAD DEBT EXPENSE 22,507,374. GAIN ON SALE OF ASSETS 6,578. GRANTS INCLUDED IN REVENUE 17,900. 1 1 1 X 1 X 1 1 1 0 1 1 2462970 2462970 0.01980 21504358 20136018 1368340 0.01100 23967328 20136018 3831310 0.03080 108944 428055 -319111 0.00000 108944 428055 -319111 24076272 20564073 3512199 0.03080 1 5286831 4123728 47912078 41383390 6528688 X 1 1 1 SCOTLAND MOB INC MEDICAL OFFICE BUILDING 0.73170 0.26830 1 1 SCOTLAND MEMORIAL HOSPITAL INC 500 LAUCHWOOD DRIVE LAURINBURG NC 28352 X X X DISPROPORTIONATE SHARE HOSPITAL SCOTLAND MEMORIAL HOSPITAL INC 1 0 0 1 X X X X X X 15 1 0 0 1 X SEE DISCLOSURE X 1 15 1 SEE DISCLOSURE 0 0 1 X 200.000000000000 400.000000000000 X X 1 1 X X X 1 X SEE PART V X SEE PART V X http://www.scotlandhealth.org/financial-assistance-148 X X X X 1 X 0 X X X 1 X 0 0 SCOTLAND MEMORIAL HOSPITAL, INC. Part V, Section B, Line 5: Identified public health officials who represent the broad interests of the community, and community members with knowledge and interest in assessing and improving the health of Scotland County residents. These included: Scotland Health Care System Board of Trustees, Scotland County Health Department Health Educator, Environmental Health Coordinator, Breastfeeding Programs Manager, Quality Assurance Coordinator, Director of Nursing, and Health Director. Scotland Health Care System Coordinator of Mobile Services, Industrial Business RN, Director of Scotland Physicians Network, Asst. Director of Associate Health, Scotland Memorial Foundation Grant Writer, Scotland Memorial Foundation Director, Marketing Coordinator; Scotland County School System Social Work/Facilitator, RN Lead Nurse; Scotland Commnity Health Clinic Director; Scotland County Parks and Recreation Director; 2 Community members. SCOTLAND MEMORIAL HOSPITAL, INC. Part V, Section B, Line 11: The top priority addressed in this CHNA was identified as hypertension. The objectives to addressing this need include: increasing public education, implementing blood pressure screening and care protocols into current community benefit-related programs, and participating with current community efforts that are taking a policy, systems, and environmental approach. The other risk factors that were identified include: diabetes and heart disease. These other risk factors are being addressed by other agencies in the area. Also, addressing this top priority of hypertension will also help with the other factors identified. SCOTLAND MEMORIAL HOSPITAL, INC. Part V, Section B, Line 22d: THE AMOUNT WAS BASED BY USING THE LOOK-BACK METHOD. PART V, SECTION B, LINE 16B: http://www.scotlandhealth.org/documents/SMH%20Financial%20Assistance%20Hardship%20Settlement%20Application2.pdf PART V, SECTION B, LINE 16A: http://www.scotlandhealth.org/documents/Financial%20Assistance/Financial%20Assistance%20Policy_2016.docx PART V, SECTION B, LINE 10A: http://www.scotlandhealth.org/documents/Community%20Health%20Needs%20Assessment%202016.pdf PART V, SECTION B, LINE 16C: http://www.scotlandhealth.org/documents/Financial%20Assistance/Plain%20Language%20Summary2016.docx PART V, SECTION B, LINE 7A: http://www.scotlandhealth.org/documents/Community%20Health%20Needs%20Assessment%202016.pdf Part I, Line 7g: CARDIAC REHABILITATION AND PULMONARY REHABILITATION SERVICES ARE PROVIDED BY THE HOSPITAL TO ALLOW PATIENTS TO ACCESS MAINTENANCE SESSIONS WITHOUT TRAVELING LONG DISTANCES. PATIENTS ARE CHARGED NOMINAL AMOUNTS AS INSURANCES DO NOT ROUTINELY COVER THE CARE. THEREFORE, THE COSTS THAT EXCEED PATIENT PAYMENTS ARE PROVIDED BY THE HOSPITAL AS A COMMUNITY BENEFIT. Part I, Line 7, Column (f): The Bad Debt expense included on Form 990, Part IX, Line 25, Column (A), but subtracted for purposes of calculating the percentage in this column is $ 22,507,374. Part II, Community Building Activities: SCOTLAND MEMORIAL HOSPITAL PLAYS A VERY ACTIVE ROLE IN RECRUITING PHYSICIANS AND MID-LEVEL PROVIDERS TO SERVE THE PATIENTS IN OUR SERVICE AREA. SCOTLAND AND ROBESON COUNTY, NC AND MARLBORO COUNTY, SC ROUTINELY HAVE SHORTAGES IN HEALTHCARE PROVIDERS. BY ITS EFFORTS, THE HOSPITAL ENSURES A NETWORK OF PROVIDERS IS AVAILABLE FOR THE CARE OF THOSE IN NEED OUR RURAL SETTING. Part III, Line 4: THE ANDI METHODOLOGY, WHICH USES A FACILITY-WIDE RATIO OF COST TO CHARGES AS DESCRIBED IN NCHA COMMUNITY BENEFITS GUIDELINES WAS USED.SCOTLAND COUNTY HAS THE HIGHEST UNEMPLOYMENT RATE (17.2% AT THE END OF 2012) IN THE STATE OF NORTH CAROLINA. ON TOP OF THAT, WE HAVE 21% MEDICAID AND 47% MEDICARE POPULATION, WHICH IS A PORTION OF THE BAD DEBTS. IT IS FAIRLY SAFE TO ASSUME THAT THE 16% FOR UNEMPLOYED PLUS ANOTHER 9% FOR MEDICARE/MEDICAID COULD QUALIFY FOR CHARITY, IF THEY COMPLETED THE APPLICATION PROCESS. Part III, Line 8: PARTICIPATING IN THE MEDICARE PROGRAM QUALIFIES THE HOSPITAL FOR REIMBURSEMENT AT PREDETERMINED RATES FOR INPATIENT AND OUTPATIENT SERVICES. AS A CONDITION OF PARTICIPATION, THE HOSPITAL ACCEPTS PAYMENT FROM CMS (CENTERS FOR MEDICARE AND MEDICAID SERVICES), AND WRITES OFF THE DIFFERENCE BETWEEN THE AMOUNT PATIENT BILLED CHARGES AND MEDICARE PAYMENT. MEDICARE ALSO PAYS FOR CERTAIN "PASS-THROUGH" ITEMS, SUCH AS BAD DEBTS. TOTAL MEDICARE PAYMENTS DO NOT FULLY COVER THE COST OF PROVIDING SERVICES TO BENEFICIARIES. Part III, Line 9b: THE ORGANIZATION HAS A BILLING AND COLLECTION POLICY WITH PROVISIONS FOR COLLECTING AMOUNTS DUE FROM THOSE PATIENTS WHO HAVE OUTSTANDING BALANCES. A DETERMINATION HAS ALREADY BEEN MADE REGARDING FINANCIAL ASSITANCE PRIOR TO THE COLLECTION PROCESS. ONLY PATIENTS THAT ARE NOT ELIGIBLE FOR FINANCIAL ASSISTANCE ARE PURSUED. Part VI, Line 2: SCOTLAND MEMORIAL IS A MEMBER OF CAROLINAS COASTAL HEALTH ALLIANCE, WHICH HAS PREPARED COMMUNITY HEALTH ASSESSMENTS FOR ITS MEMBER HOSPITALS AND THE COMMUNITIES SERVED.HEALTH CARE NEEDS ARE ASSESSED ALSO BY INTERACTION WITH PATIENTS, PHYSICIANS, OTHER HEALTH CARE PROVIDERS, AND RESIDENTS ON AN ON-GOING BASIS. ADDITIONALLY, COMMUNITY NEEDS ARE DETERMINED BASED ON TYPES OF PATIENTS SERVED AND FINANCIAL LEVEL OF FINANCIAL ASSISTANCE PROVIDED IN PRIOR YEARS. Part VI, Line 3: PATIENTS AND THOSE BILLED FOR CARE MAY BE INFORMED ABOUT ASSISTANCE ELIGIBILITY AT TIME OF REGISTRATION, AT DISCHARGE, AT TIME OF BILLING, AND/OR IN DISCUSSION WITH HOSPITAL BILLING STAFF. SCOTLAND MEMORIAL HOSPITAL'S FINANCIAL ASSISTANCE POLICY IS AVAILABLE FOR ACCESS BY PATIENTS AND THE PUBLIC ON THE WEBSITE AT WWW.SCOTLANDHEALTH.ORG. Part VI, Line 4: Although Scotland Memorial Hospital serves the North Carolina counties of Scotland and Robeson, and the South Carolina county of Marlboro, the primary focus of the community-based survey was on Scotland County, North Carolina. 2015 census data reports that Scotland County is the poorest county in North Carolina, with a median household income of $30,958 and with 29% of people living in poverty, substantially lower than the state and national median household incomes. The county's job market is particularly weak, with an unemployment rate of 9.8% in 2015, nearly double the national rate. While over 33% of Americans had at least a bachelor's degree in 2015, only 15.8% of Scotland County residents had such a degree. Ethnically, the county is comprised of 45.7% White, 39.1% Black, 11.8% American Indian, and 2.9% Hispanic. Part VI, Line 5: SCOTLAND MEMORIAL HOSPITAL FULFILLS ITS TAX EXEMPT PURPOSE BY THE PROVISION OF HEALTH CARE SERVICES WITHIN ITS SERVICE AREA TO PATIENTS WITH LITTLE OR NO RESOURCES TO PAY FOR CARE, AND BY THE ACCEPTANCE OF PAYMENTS FROM MEDICARE AND MEDICAID AT SUBSTANTIALLY REDUCED RATES.THE HOSPITAL'S BOARD IS COMPRISED OF UNRELATED, LOCAL MEMBERS OF THE COMMUNITY AND LOCAL PHYSICIANS HAVE PRIVILEDGES IN A MAJORITY OF THE HOSPITAL'S DEPARTMENTS.ALL EXCESS FUNDS ARE APPLIED TO PATIENT CARE THROUGH THE ANNUAL BUDGET PROCESS, WHEREBY ALL AVAILABLE FUNDS ARE ALLOCATED BASED ON NEEDS HIERARCHY. Part VI, Line 6: As the largest employer in Scotland County, Scotland Memorial Hospital takes a leadership role in assessing the health care needs of the communities it serves, and in the coordination of strategies to meet the identified needs. Part VI, Line 7, Reports Filed With States NC,SC X X X X 0 1 0 0 0 0 0 0 0 JOHN NOBLES MD TRUSTEE, PHYSICIAN 272711 0 60443 0 0 0 11826 0 17100 0 362080 0 0 0 GREGORY WOOD CEO/PRESIDENT 262951 0 89878 0 27445 0 33325 0 30238 0 443837 0 0 0 MATT PRACHT CFO/VP FINANCE/ASST. TREAS 183219 0 41149 0 2522 0 31220 0 26046 0 284156 0 0 0 GRAY MILLS VICE PRESIDENT 137736 0 29155 0 0 0 6626 0 16370 0 189887 0 0 0 PAT PHILLIPS SR. VICE PRESIDENT 156650 0 30926 0 0 0 719 0 20172 0 208467 0 0 0 JONATHAN ROWSON MD PHYSICIAN 181798 0 67948 0 0 0 9095 0 12402 0 271243 0 0 0 PATRICIA MIDDLETON MD PHYSICIAN 288479 0 7200 0 0 0 10185 0 7306 0 313170 0 0 0 JAMES STATEN MD PHYSICIAN 177646 0 24650 0 0 0 7676 0 20883 0 230855 0 0 0 CHAMAINE BROOKS-LOCKLEAR MD PHYSICIAN 151462 0 59287 0 0 0 7319 0 20883 0 238951 0 0 0 SHELLY LOWERY PHYSICIAN 148225 0 42043 0 0 0 6891 0 7306 0 204465 0 0 0 CHI-DAI CHEN MD PHYSICIAN 181432 0 200 0 0 0 0 0 7386 0 189018 0 0 0 Part I, Line 4b THE ORGANIZATION HAD OFFICERS WHO PARTICIPATED IN A SUPPLEMENTAL EXECUVTIVE RETIREMENT PLAN (SERP). THE AMOUNT OF DEFERRED COMPENSATION ACCRUED DURING THE FISCAL YEAR FOR THE PLAN WAS: WOOD $19,461 PRACHT 17,261 Form 990, Part VI, Section A, line 3 EFFECTIVE APRIL 1, 2009, SCOTLAND HEALTH CARE SYSTEM IS ENGAGED IN A TEN-YEAR MANAGEMENT AGREEMENT WITH THE CHARLOTTE-MECKLENBURG HOSPITAL AUTHORITY D/B/A CAROLINAS HEALTHCARE SYSTEM TO MANAGE THE SYSTEM ON A DAY-TO-DAY BASIS. Form 990, Part VI, Section B, line 11 PRIOR TO FILING DATE, THE FORM 990 WAS PRESENTED TO THE BOARD OF TRUSTEES FOR REVIEW. AN OPPORTUNITY WAS PROVIDED FOR QUESTIONS AND ANSWERS. Form 990, Part VI, Section B, line 12c THE HOSPITAL REQUIRES ALL OFFICERS, DIRECTORS, TRUSTEES TO REVIEW AND SIGN THE CONFLICT OF INTEREST DISCLOSURE STATEMENT ANNUALLY. Form 990, Part VI, Section B, line 15 THE PROCESS FOR DETERMINING COMPENSATION FOR CEO AND CFO ENTAILS A REVIEW OF PERFORMANCE BY THE EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES, CONDUCTING COMPENSATION BENCHMARK STUDY BY INDEPENDENT RECOGNIZED THIRD PARTY, AND REVIEW OF COMPENSATION BY CAROLINAS HEALTHCARE SYSTEM COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS. FINAL APPROVAL IS THEN MADE AND DOCUMENTED BY THE SCOTLAND HEALTH CARE SYSTEM BOARD OF TRUSTEES. COMPENSATION FOR OTHER HOSPITAL VICE PRESIDENTS IS DETERMINED BY PERFORMANCE EVALUATION BY CEO, COMPENSATION BENCHMARK STUDY BY INDEPENDENT RECOGNIZED THIRD PARTY, AND FINAL APPROVAL AND DOCUMENTATION BY THE SCOTLAND HEALTH CARE SYSTEM BOARD OF DIRECTORS. Form 990, Part VI, Section C, line 18 PHOTOCOPIES OF THE FORM 990 ARE AVAILABLE UPON REQUEST AT THE ORGANIZATION'S ADMINISTRATIVE OFFICE. ADDITIONALLY, RECENT FILINGS OF THE FORM 990 ARE AVAILABLE ONLINE AT WWW.GUIDESTAR.ORG. Form 990, Part VI, Section C, line 19 THE HOSPITAL MAKES ITS GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY AVAILABLE TO THE PUBLIC UPON REQUEST AT THE SCOTLAND MEMORIAL HOSPITAL EXECUTIVE ASSISTANT TO THE PRESIDENT'S OFFICE. THE HOSPITAL MAKES ITS FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST AT THE VP, FINANCE OFFICE OR GENERAL ACCOUNTING DEPARTMENT. FORM 990, PART VII & SCHEDULE J THE ORGANIZATION IS UTILIZING PART VII AND SCHEDULE J OF THE FORM 990 TO REPORT THE COMPENSATION PAID TO THE CEO AND CFO BY A MANAGEMENT COMPANY FOR SERVICES PROVIDED TO THE FILING ORGANIZATION. THE COMPENSATION HAS BEEN REPORTED IN THE FILING ORGANIZATION'S COMPENSATION COLUMNS OF THESE SECTIONS. Form 990, Part IX, line 11g EQUIP MAINT CONTRACT FEES: Program service expenses 2,166,336. Management and general expenses 1,976,231. Fundraising expenses 0. Total expenses 4,142,567. CONSULTANT FEES: Program service expenses 781. Management and general expenses 95,664. Fundraising expenses 0. Total expenses 96,445. CONTRACT FEES: Program service expenses 7,010,040. Management and general expenses 820,309. Fundraising expenses 0. Total expenses 7,830,349. MEDICAL SPEC FEES: Program service expenses 4,906,350. Management and general expenses 0. Fundraising expenses 0. Total expenses 4,906,350. OTHER PROFESSIONAL FEES: Program service expenses 333,429. Management and general expenses 199,625. Fundraising expenses 0. Total expenses 533,054. Form 990, Part XI, line 9: PENSION PLAN ADJUSTMENT -8,369,029. TRANSFER TO AFFILIATES -2,831,766. Form 990, Part XII, Line 2c: THE PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. FORM 990, PART III SCOTLAND MEMORIAL HOSPITAL, INC., LOCATED IN THE CITY OF LAURINBURG, SCOTLAND COUNTY, NORTH CAROLINA IS A NOT-FOR-PROFIT, 501(c)(3), COMMUNITY OWNED HOSPITAL GOVERNED BY A LOCAL BOARD OF TRUSTEES. THE HOSPITAL IS A SUBSIDIARY OF SCOTLAND HEALTH CARE SYSTEM, A NOT-FOR-PROFIT, 501(c)(3) CORPORATION, WHICH ALSO INCLUDES SCOTLAND MEMORIAL FOUNDATION, AND HOSPICE OF SCOTLAND COUNTY. THE MISSION OF SCOTLAND HEALTH CARE SYSTEM "IS TO WORK WITH OUR HEALTH CARE PARTNERS TO CREATE AND OPERATE A PATIENT CENTERED, INTEGRATED SYSTEM TO PROVIDE SAFE, HIGH QUALITY, COMPASSIONATE, AND SUSTAINABLE HEALTH CARE TO THE PEOPLE WE SERVE." THE VISION IS THAT "SCOTLAND HEALTH CARE SYSTEM WILL BE RECOGNIZED AND CHOSEN BY PATIENTS AND THEIR FAMILIES THROUGHOUT THE REGION FOR THE QUALITY AND VALUE OF THE SERVICES WE PROVIDE. THIS VALUE WILL BE DEMONSTRATED THROUGH THE HIGHEST QUALITY AND SERVICE, ALONG WITH THE SAFEST ENVIRONMENT. WE WILL LEAD EFFORTS TO IMPROVE THE HEALTH AND WELL-BEING OF THE CITIZENS IN OUR REGION." THE HOSPITAL OFFERS A FULL RANGE OF INPATIENT, INCLUDING INTENSIVE CARE AND INPATIENT REHABILITATION, AND OUTPATIENT ACUTE CARE SERVICES. DURING THE FISCAL YEAR ENDING SEPTEMBER 30, 2016, THE HOSPITAL RECORDED 17653 ADULT AND PEDIATRIC PATIENT DAYS AND 1168 INPATIENT REHABILITATION DAYS, WITH AN AVERAGE DAILY CENSUS OF 48 . THE HOSPITAL PERFORMED OVER 4800 INPATIENT AND OUTPATIENT SURGERIES. OVER 56,000 PATIENTS WERE TREATED IN THE EMERGENCY ROOM AND 676 BABIES WERE DELIVERED. WITH A STAFF OF APPROXIMATELY 900 EMPLOYEES, THE HOSPITAL RANKS AS THE AREA'S LARGEST EMPLOYER 62 PHYSICIANS OFFER A COMPREHENSIVE RANGE OF SPECIALTIES INCLUDING: ANESTHESIOLOGY, CARDIOLOGY, DERMATALOGY, EMERGENCY MEDICINE, FAMILY MEDICINE, GASTROENTEROLOGY, GENERAL SURGERY, GYNECOLOGY AND OBSTETRICS, HOSPITALIST SERVICES, INTERNAL MEDICINE, MEDICAL AND RADIATION ONCOLOGY, NEPHROLOGY, NEUROLOGY, OCCUPATIONAL MEDICINE, OPHTHALMOLOGY, ORTHOPEDICS, OTOLARYNGOLOGY, PAIN MANAGEMENT, PATHOLOGY, PEDIATRICS, PEDICATRIC CARDIOLOGY, PULMONARY MEDICINE, RADIOLOGY, UROLOGY, VASCULAR SURGERY, AND WOUND CARE, INCLUDING HYPERBARIC OXYGEN THERAPY. SOPHISTICATED TECHNOLOGIES INCLUDE NUCLEAR MEDICINE, 64-SLICE COMPUTERIZED TOMOGRAPHY (CT) SCANNING, LASER SURGERY, MAGNETIC RESONANCE IMAGING (MRI), LAPAROSCOPIC CHOLYCYSTECTOMY, POSITRON EMISSION TOMOGRAPHY, ROBOTIC PARTIAL KNEE SURGERY AND INTENSITY-MODULATED RADIATION THERAPY. LITHOTRIPSY PROCEDURES ARE PROVIDED IN A MOBILE UNIT. THE HOSPITAL OPERATES TWO RURAL HEALTH CLINICS, FIVE FREE-STANDING PHYSICIAN PRACTICES, AND AN URGENT CARE CENTER/OCCUPATIONAL HEALTH CLINIC, ALL LOCATED WITHIN A 30-MILE RADIUS OF THE HOSPITAL. TOTAL VISITS AT THESE FIVE OUTLYING CLINICS WERE APPROXIMATELY 60,000 IN 2016 . THE HOSPITAL'S PRIMARY SERVICE AREA IS SCOTLAND COUNTY AND WESTERN ROBESON COUNTY, WHILE THE SECONDARY SERVICE AREA INLCUDES ROBESON COUNTY AND RICHMOND COUNTY, NORTH CAROLINA, AND MARLBORO COUNTY, SOUTH CAROLINA. SEE SCHEDULE H FOR DETAIL OF ORGANIZATIONS CHARITY CARE AND COMMUNITY BENEFITS POLICIES AND REPORTING. FORM 990, PART III COMMUNITY SPONSORED EVENTS AND ACTIVITIES: THE HOSPITAL IS HEAVILY INVOLVED IN COMMUNITY EVENTS AND SPONSORS NUMEROUS CHARITABLE ACTIVITIES, SUCH AS UNITED WAY FUND DRIVES, AMERICAN CANCER SOCIETY RELAY FOR LIFE, AMERICAN RED CROSS BLOOD DRIVES, WALK AMERICA (MARCH OF DIMES FOR HEALTHIER BABIES), AND NORTH CAROLINA SMART START (RESOURCES FOR CHILDREN TO ACHIEVE SUCCESS). MANY HOSPITAL EMPLOYEES PARTICIPATE IN THESE EVENTS. ACTIVITIES SUPPORTING MIDDLE AND HIGH SCHOOL EDUCATION ARE SUPPORTED, WHICH ENCOURAGE TEENS INTERESTED IN A MEDICAL CAREER TO JOB SHADOW WITH HOSPITAL EMPLOYEES. FREE ANNUAL PHYSICALS ARE PROVIDED TO MIDDLE AND HIGH SCHOOL STUDENTS. HOSPITAL EMPLOYEES ARE ENCOURAGED TO SPEAK AT LOCAL JOB FAIRS AND AT HIGH SCHOOL CAREER DAY FESTIVITIES. TOURS OF THE HOSPITAL ARE AVAILABLE TO LOCAL SCHOOLS. A VARIETY OF PREVENTIVE HEALTH EDUCATION PROGRAMS ARE OFFERED TO THE COMMUNITY AND TO LOCAL INDUSTRY, MANY OF WHICH ARE FREE TO THE PUBLIC. AMONG THESE ARE SCREENINGS FOR BLOOD PRESSURE, BODY FAT, CHOLESTEROL, DIABETES, BONE DENSITY, AND PROSTATE CANCER. HEALTH EVENTS FOR WOMEN AND MEN ARE OFFERED EACH YEAR WITH LOCAL PHYSICIANS AS KEYNOTE SPEAKERS AND EDUCATORS. "SCOTTY AND "MISSY", 2 MOBILE HEALTHCARE UNITS, VISIT LOCAL SCHOOLS, BUSINESSES, AND INDUSTRY PROVIDING FREE BLOOD PRESSURE AND CHOLESTEROL SCREENINGS AND PHYSICALS. EXAMPLES OF HEALTH EVENTS OFFERED IN THE COMMUNITY ARE: - PHYSICAL EXAMINATIONS PROVIDED TO SPECIAL OLYMPICS ATHLETES, AND SPORTS PHYSICALS TO MIDDLE/HIGH SCHOOL STUDENTS. - HEALTH & FITNESS DAY, PROVIDING FOCUS ON PHYSICAL ACTIVITY, WHERE THE COMMUNITY AND HOSPITAL EMPLOYEES PARTICIPATE HEALTHY ACTIVITIES. - "LOOK GOOD FEEL BETTER" PROGRAM TARGETS WOMEN UNDERGOING CANCER TREATMENT, AND TEACHES FEMALE CANCER PATIENTS BEAUTY TECHNIQUES TO RESTORE APPEARANCE AND SELF-IMAGE WHILE UNDERGOING CHEMOTHERAPY AND RADIATION TREATMENTS. VOLUNTEER BEAUTY PROFESSIONALS LEAD SMALL GROUPS OF WOMEN THROUGH PRACTICAL, HANDS-ON EXERCIZES IN USING COSMETICS, CARING FOR SKIN AND NAILS, DEALING WITH HAIR LOSS BY USING WIGS, HATS, TURBANS, AND SCARVES. PARTICIPANTS RECEIVE A FREE KIT OF COSMETICS AND A VARIETY OF WIGS AND HATS FROM WHICH TO CHOOSE. - CANCER SURVIVORS DAY SPONSORED FOR PATIENTS AND GUESTS TO PARTICIPATE IN AN ANNUAL NATIONAL CELEBRATION OF LIFE. - HEALTH-RELATED MONTHLY MEETINGS ARE HELD IN HOSPITAL FACILITIES FOR: ALZHEIMER'S SUPPORT GROUP BREASTFEEDING SUPPORT GROUP DIABETES SUPPORT GROUP MULTIPLE SCLEROSIS SUPPORT GROUP PARKINSON'S SUPPORT GROUP STROKE SUPPORT GROUP WOMENS CANCER SUPPORT GROUP SCOTLAND HEALTH CARE SYSTEM INC 500 LAUCHWOOD DRIVE LAURINBURG NC 28352 581847657 OPERATE FOR THE BENEFIT OF, PERFORM FUNCTIONS, AND CARRY OUT PURPOSES OF SMH NC 501(c)(3) Line 11a, I N/A 0 SCOTLAND MEMORIAL FOUNDATION INC 500 LAUCHWOOD DRIVE LAURINBURG NC 28352 581828201 CONDUCT FUNDRAISING ACTIVITIES FOR SCOTLAND HEALTH CARE SYSTEM NC 501(c)(3) Line 7 SCOTLAND HEALTH CARE SYSTEM INC 0 EDWIN MORGAN CENTER INC 500 LAUCHWOOD DRIVE LAURINBURG NC 28352 589178020 SKILLED NURSING FACILITY NC 501(c)(3) Line 9 SCOTLAND HEALTH CARE SYSTEM INC 0 HOSPICE OF SCOTLAND COUNTY INC 610 E LAUCHWOOD DRIVE LAURINBURG NC 28352 561468269 HEALTHCARE FOR TERMINALLY ILL PATIENTS NC 501(c)(3) Line 7 SCOTLAND HEALTH CARE SYSTEM INC 0 SCOTLAND REGIONAL HEALTH NETWORK 500 LAUCHWOOD DRIVE lAURINBURG NC 28352 272187756 OPERATES PHYSICIAN PRACTICES NC 501(c)(3) Line 7 SCOTLAND HEALTH CARE SYSTEM INC 0 SCOTLAND ENTERPRISES INC 500 LAUCHWOOD DRIVE LAURINBURG NC 28352 561651832 HEALTH CARE NC N/A C 0 1 0 1 0 0 0 0 0 0 1 1 0 0 0 0 0 0 1 0 SCOTLAND REGIONAL HEALTH NETWORK R 3293775 FMV