2015-08-11T10:07:22-05:00 2014-09-30 560747981 DIXON HUGHES GOODMAN LLP 500 RIDGEFIELD COURT ASHEVILLE NC 28806 990 2013-10-01 560583151 SCOTLAND MEMORIAL HOSPITAL INC SCOT 9102917920 500 LAUCHWOOD DRIVE LAURINBURG NC 28352 MATT PRACHT CFO 9102917920 2015-08-10 1 JEREMY NAESS P01306905 8282542254 2013 2016-02-25 16:41:14Z MATT PRACHT 500 LAUCHWOOD DRIVE LAURINBURG NC 28352 135694633 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 1186 120 402686 -232925 563130 471941 130291128 133175086 2463220 324802 1270304 1144491 134587782 135116320 1273 18269 0 0 55180183 50822634 0 0 0 71701335 72901022 126882791 123741925 7704991 11374395 125546064 138648779 41965930 46639047 83580134 92009732 TO PROVIDE HIGH QUALITY, COMPASSIONATE HEALTH CARE. 0 0 107995895 18269 132810135 SEE SCHEDULE O 107995895 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 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 82 0 1 1186 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 MATTHEW D PRACHT VP FINANCE 9102917920 500 LAUCHWOOD DR LAURINBURG NC 28352 X NANCY WALKER CHAIRMAN 2.00 X X 0 0 0 MIKE VINSON VICE CHAIR 2.00 2.00 X X 0 0 0 JANE ROGERS TREASURER 2.00 X X 0 0 0 DONNA RICHARDSON MD CHIEF OF STAFF 2.00 X X 123000 0 0 JONATHAN ROWSON MD TRUSTEE 1.00 X 259576 0 40153 RICHARD ALEXANDER MD TRUSTEE 1.00 X 47715 0 0 KYLE CHAVIS TRUSTEE 1.00 X 0 0 0 RAY CHAVIS DDS TRUSTEE 1.00 X 0 0 0 CRAIG ELLIS TRUSTEE 1.00 X 0 0 0 MILTON FARMER TRUSTEE 1.00 X 0 0 0 BETTY HASTY TRUSTEE 1.00 1.00 X 0 0 0 DAVID HARLING TRUSTEE 1.00 1.00 X 0 0 0 CHARLES JENKINS TRUSTEE 1.00 X 0 0 0 JOSHUA MALCOLM TRUSTEE 1.00 X 0 0 0 KATHY MANIS TRUSTEE 1.00 X 0 0 0 DONNIE MCDONALD TRUSTEE 1.00 X 0 0 0 ALLEN MCLAURIN TRUSTEE 1.00 2.00 X 0 0 0 JEFF MERCER TRUSTEE 1.00 X 0 0 0 KEN NICHOLS TRUSTEE 1.00 X 0 0 0 MICHAEL O'DONNELL MD TRUSTEE 1.00 X 1400 0 0 KELVIN RAYBON MD TRUSTEE 1.00 X 1000 0 0 CHIP SHYTLE TRUSTEE 1.00 2.00 X 0 0 0 BOBBY HINSON TREASURER 1.00 X 0 0 0 BECCA HUGHES TRUSTEE 1.00 1.00 X 0 0 0 GREGORY WOOD CEO/PRESIDENT 40.00 6.00 X 340436 0 49138 MATT PRACHT CFO/VP FINANCE/ASST. TREAS 40.00 6.00 X 209641 0 50336 PAM ASHLEY SECRERARY 20.00 21.00 X 39256 0 12504 JOHN NOBLES MD PHYSICIAN 40.00 1.00 X 318439 0 50143 LINDA MCCLAIN MD PHYSICIAN 40.00 X 215787 0 34112 JAMES STATEN MD PHYSICIAN 40.00 X 214280 0 45522 DAVID HOWELL MD PHYSICIAN 40.00 X 190614 0 28008 DENIS RICARD PHYSICIAN ASSISTANT 40.00 X 179800 0 34254 2140944 0 344170 22 0 1 0 LIBERTY ANESTHESIA PLLC 16101 CADDIE COURT WAGRAM NC 28396 ANESTHESIA SERVICES 2151954 PINEHURST SURGICAL CLINIC PA 5 FIRST VILLAGE DRIVE PINEHURST NC 28374 PROFESSIONAL SERVICES 377609 PURCELL CLINIC 418 KING STREET LAURINBURG NC 28374 PROFESSIONAL SERVICES 325000 HOOKS LANDSCAPING SERVICES LLC 507 WEST 29TH STREET LUMBERTON NC 28358 LANDSCAPING SERVICES 198036 LAUCHWOOD PATHOLOGY ASSOCIATES 500 LAUCHWOOD DRIVE LAURINBURG NC 28352 PROFESSIONAL SERVICES 123000 6 471941 471941 NET PATIENT SERVICE REVENUE 621500 130815738 130450787 364951 MEANINGFUL USE REVENUE 900099 1808250 1808250 OTHER OPERATING REVENUE 624100 542411 542411 HOSPICE IT CONTRACT 624100 8687 8687 133175086 903115 903115 425186 0 425186 425186 425186 21705 556608 -21705 -556608 -578313 -578313 CAFETERIA 722210 471686 37735 433951 PURCHASE DISCOUNTS 900099 125939 125939 INVESTMENT IN MOB 900099 84648 84648 37032 37032 719305 135116320 132810135 402686 1431558 X 18269 18269 1210040 21136 1188904 38485485 34757722 3727763 2949095 2583822 365273 5664569 4962958 701611 2513445 2202131 311314 -12900 -12900 278677 278677 74229 74229 78293 78293 16343939 11920284 4423655 352192 23195 328997 4273471 3961150 312321 68902 67530 1372 1969113 1763129 205984 406555 303583 102972 31114 270 30844 251529 251529 8900768 8900768 996067 1496 994571 BAD DEBT 21660697 21660697 MEDICAL SUPPLIES 14148558 14148558 PROVIDER TAX 2632150 2632150 MISCELLANEOUS EXPENSE 352663 352663 95005 95005 123741925 107995895 15746030 0 3180 3180 12109037 25046308 15125850 13005577 1750155 1284290 1478526 1370689 159605270 105101855 57336347 54503415 31630485 37412051 1338927 1288831 83475 61215 4690082 4673223 125546064 138648779 12396056 14234446 100000 6829105 6581162 364339 252997 22376430 25470442 41965930 46639047 X 82613366 90708138 966768 1301594 83580134 92009732 125546064 138648779 X 11374395 161381 -3106178 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 10796 10796 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. 1748567 1748567 80200254 53339526 26860728 4424981 2944233 1480748 72945767 48818096 24127671 285701 285701 54503415 CAPITAL LEASE OBLIGATIONS 1701610 ACCRUED INTEREST PAYABLE 185900 ESTIMATED 3RD PARTY SETTLEMENTS 11882198 PENSION PLAN LIABILITY 11700734 25470442 X 110833208 161381 730913 892294 109940914 78293 25097113 25175406 135116320 102002935 0 102002935 78293 21660697 21738990 123741925 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, 2014. THE CORPORATION BELIEVES THEY ARE NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS FOR YEARS PRIOR TO SEPTEMBER 30, 2011. PART XI, LINE 2D - OTHER ADJUSTMENTS: PENSION PLAN ADJUSTMENT 730,913. PART XI, LINE 4B - OTHER ADJUSTMENTS: BAD DEBT EXPENSE 21,660,697. TRANSFER OF EQUITY 3,436,416. PART XII, LINE 4B - OTHER ADJUSTMENTS: BAD DEBT EXPENSE 21,660,697. 1 1 1 X 1 X 1 1 1 0 1 1 1948460 1948460 0.01910 18626203 19462363 -836160 0.00000 20574663 19462363 1112300 0.01910 653820 622727 31093 0.00030 22726 22726 0.00020 676546 622727 53819 0.00050 21251209 20085090 1166119 0.01960 1 5299190 4133369 43254462 33961806 9292656 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 1 X X X X X X 12 1 0 1 X SEE DISCLOSURE X X X X X X X 1 0 1 1 200.000000000000 1 400.000000000000 1 X X 1 1 X X X X X 1 0 1 X 0 0 SCOTLAND MEMORIAL HOSPITAL, INC. PART V, SECTION B, LINE 3: 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 20D: THE AMOUNT WAS BASED ON PAYMENT DATA, INDICATING THAT MORE IS COLLECTED FROM INSUANCES THAN WHAT CHARGE TO ELIGIBLE PATIENTS. SCHEDULE H, PART V, LINE 5A: HTTP://WWW.SCOTLANDHEALTH.ORG/DOCS/COMMUNITY_HEALTH_NEEDS_ASSESSMENT_ 2013.PDF?SUB=ABOUT+US 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 $ 21,660,697. 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. 2013 CENSUS DATA REPORTS THAT SCOTLAND COUNTY IS THE POOREST COUNTY IN NORTH CAROLINA, WITH A MEDIAN HOUSEHOLD INCOME OF LESS THAN $30,000 OVER THE FIVE YEARS THROUGH 2013, SUBSTANTIALLY LOWER THAN THE STATE AND NATIONAL MEDIAN HOUSEHOLD INCOMES. THE COUNTY'S JOB MARKET IS PARTICULARLY WEAK, WITH AN UNEMPLOYMENT RATE OF 14.6% IN 2013, NEARLY DOUBLE THE NATIONAL RATE. WHILE NEARLY 29% OF AMERICANS HAD AT LEAST A BACHELOR'S DEGREE DURING THE FIVE YEARS THROUGH 2013, JUST OVER 14% OF SCOTLAND COUNTY RESIDENTS HAD SUCH A DEGREE. ETHNICALLY, THE COUNTY IS COMPRISED OF 47% WHITE, 39% BLACK, 11% AMERICAN INDIAN, AND 3% 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 1 PART I, LINE 2: THE ORGANIZATION SETS CLEAR CRITERIA FOR THE AWARDING OF VARIOUS SCHOLARSHIP PROGRAMS. RECIPIENTS MUST PROVE DURING THE APPLICATION PROCESS THAT THEY MEET THE CRITERIA FOR SUCH AWARDS. X X X X 0 0 0 0 0 1 0 0 0 JONATHAN ROWSON MD TRUSTEE 210931 0 48645 0 0 0 2389 0 37764 0 299729 0 0 0 GREGORY WOOD CEO/PRESIDENT 252270 0 61969 0 26197 0 27463 0 21675 0 389574 0 0 0 MATT PRACHT CFO/VP FINANCE/ASST. TREAS 174727 0 32866 0 2048 0 25381 0 24955 0 259977 0 0 0 JOHN NOBLES MD PHYSICIAN 260229 0 58210 0 0 0 3953 0 46190 0 368582 0 0 0 LINDA MCCLAIN MD PHYSICIAN 215787 0 0 0 0 0 166 0 33946 0 249899 0 0 0 JAMES STATEN MD PHYSICIAN 178568 0 35712 0 0 0 4259 0 41263 0 259802 0 0 0 DAVID HOWELL MD PHYSICIAN 160014 0 30600 0 0 0 2462 0 25546 0 218622 0 0 0 DENIS RICARD PHYSICIAN ASSISTANT 170752 0 9048 0 0 0 3596 0 30658 0 214054 0 0 0 PART I, LINE 6 GREGORY WOOD (CEO) AND MATTHEW PRACHT (CFO) WERE ON A MANAGEMENT INCENTIVE PROGRAM THAT REQUIRED THE COMPLETION OF SPECIFIC ORGANIZATION PERFORMANCE MEASURES, WHICH INCLUDED FINANCIAL PERFORMANCE, QUALITY OUTCOMES, CUSTOMER SATISFACTION, AND EMPLOYEE RETENTION. 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 THE FILING DATE, THE FORM 990 WAS PRESENTED TO THE BOARD OF TRUSTEES FOR REVIEW. AFTER A DISCUSSION PERIOD AND QUESTION AND ANSWER PERIOD, THE BOARD OF TRUSTEES VOTED TO APPROVE THE FORM 990 AS PRESENTED. 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 A COMPENSATION BENCHMARK STUDY BY AN 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 1,827,506. MANAGEMENT AND GENERAL EXPENSES 1,520,621. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 3,348,127. CONSULTANT FEES: PROGRAM SERVICE EXPENSES 10,219. MANAGEMENT AND GENERAL EXPENSES 13,924. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 24,143. CONTRACT FEES: PROGRAM SERVICE EXPENSES 6,408,925. MANAGEMENT AND GENERAL EXPENSES 2,720,596. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 9,129,521. MEDICAL SPEC FEES: PROGRAM SERVICE EXPENSES 3,395,800. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 3,395,800. OTHER PROFESSIONAL FEES: PROGRAM SERVICE EXPENSES 277,834. MANAGEMENT AND GENERAL EXPENSES 168,514. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 446,348. FORM 990, PART XI, LINE 9: PENSION PLAN ADJUSTMENT 730,913. TRANSFER TO AFFILIATES -3,837,091. IMPAIRMENT OF ASSETS FORM 990, PART XII, LINE 2C: THE PROCESS HAS NOT CHANGED FROM 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. IT IS A SUBSIDIARY OF SCOTLAND HEALTH CARE SYSTEM, A NOT-FOR-PROFIT, 501(C)(3) CORPORATION, WHICH ALSO INCLUDES THE EDWIN MORGAN CENTER (A 50 BED SKILLED NURSING FACILITY), HOSPICE OF SCOTLAND COUNTY, AND THE SCOTLAND MEMORIAL FOUNDATION. THE MISSION OF SCOTLAND HEALTH CARE SYSTEM IS TO PROVIDE QUALITY, COMPASSIONATE HEALTH CARE. THE VISION OF SCOTLAND HEALTH CARE SYSTEM IS TO BE THE COMMUNITY'S HEALTHCARE PROVIDER OF CHOICE. THE VALUES STATEMENT PROCLAIMS, "WE STAND FOR EXCELLENCE, INTEGRITY, AND COMMUNITY ACCOUNTABILITY." 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, 2014, THE HOSPITAL RECORDED 17,449 ADULT AND PEDIATRIC PATIENT DAYS AND 1,307 INPATIENT REHABILITATION DAYS, WITH AN AVERAGE DAILY CENSUS OF 51. THE HOSPITAL PERFORMED OVER 5,000 INPATIENT AND OUTPATIENT SURGERIES AND OVER 400 ENDOSCOPY CASES. OVER 47,000 PATIENTS WERE TREATED IN THE EMERGENCY ROOM AND 692 BABIES WERE DELIVERED. WITH A STAFF OF APPROXIMATELY 900 EMPLOYEES, THE HOSPITAL RANKS AS THE AREA'S LARGEST EMPLOYER. 66 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, PULMONARY MEDICINE, RADIOLOGY, UROLOGY, AND VASCULAR SURGERY. SOPHISTICATED TECHNOLOGIES INCLUDE NUCLEAR MEDICINE, 64-SLICE COMPUTERIZED TOMOGRAPHY (CT) SCANNING, LASER SURGERY, MAGNETIC RESONANCE IMAGING (MRI), LAPAROSCOPIC CHOLYCYSTECTOMY, POSITRON EMISSION TOMOGRAPHY/CT, AND INTENSITY-MODULATED RADIATION THERAPY. LITHOTRIPSY PROCEDURES ARE OFFERED IN A MOBILE UNIT, AND THE NEWLY CONSTRUCTED CARDIOVASCULAR CENTER EXPANDS THE CAPABILITY FOR PHYSICIANS TO PERFORM CARDIAC CATHETERIZATIONS AND VASCULAR PROCEDURES FIVE DAYS A WEEK. THE HOSPITAL OPERATES TWO PHYSICIAN PRACTICES, THREE RURAL HEALTH CLINICS, ONE OF WHICH IS AN URGENT CARE/OCCUPATIONAL HEALTH CLINIC, ALL LOCATED WITHIN A 30-MILE RADIUS OF THE HOSPITAL. TOTAL VISITS AT THESE FIVE OUTLYING CLINICS WERE APPROXIMATELY 43,000 IN 2014. OUTPATIENT SPECIALTY CLINICS PROVIDE SERVICES FOR PAIN MANAGEMENT, PEDIATRIC CARDIOLOGY, VASCULAR SURGERY, AND WOUND HEALING. LIPPINCOTT'S "NURSING ADVISOR" AND "NURSING PROCEDURES AND SKILLS" ARE AVAILABLE TO HOSPITAL STAFF ON THE HOSPITAL'S INTRANET, PROVIDING CLINICAL REFERENCE MATERIALS AND PATIENT EDUCATION SERVICES IN BOTH ENGLISH AND SPANISH. PATIENT EDUCATION IS AVAILABLE 24 HOURS A DAY IN ALL INPATIENT ROOMS THROUGH GE TIP TV. THE HOSPITAL'S PRIMARY SERVICE AREA IS SCOTLAND COUNTY AND WESTERN ROBESON COUNTY, WHILE THE SECONDARY SERVICE AREA INCLUDES ROBESON COUNTY AND RICHMOND COUNTY, NORTH CAROLINA, AND MARLBORO COUNTY, SOUTH CAROLINA. SEE SCHEDULE H FOR DETAIL ON 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 SMART START. MANY EMPLOYEES PARTICIPATE IN THESE EVENTS. THE HOSPITAL SUPPORTS MIDDLE AND HIGH SCHOOL EDUCATION, ENCOURAGING 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, CHOLESTEROL, BODY FAT, 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 TO MIDDLE/HIGH SCHOOL STUDENTS PARTICIPATING IN SPORTS EVENTS. *HEALTH & FITNESS DAY, WHERE PHYSICAL ACTIVITY IS THE FOCUS, AND THE COMMUNITY IS INVITED TO JOIN HOSPITAL EMPLOYEES IN WALKING AND OTHER HEALTHY ACTIVITIES. *"LOOK GOOD FEEL BETTER" TARGETS WOMEN UNDERGOING CANCER TREATMENT, AND TEACHES FEMALE CANCER PATIENTS BEAUTY TECHNIQUES TO RESTORE THEIR APPEARANCE AND SELF-IMAGE DURING CHEMOTHERAPY AND RADIATION TREATMENTS. VOLUNTEER BEAUTY PROFESSIONALS LEAD GROUPS OF 3 TO 4 WOMEN, THROUGH PRACTICAL, HANDS-ON EXPERIENCE IN MAKEUP TECHNIQUES, SKINCARE, NAIL CARE, AND OPTIONS RELATED TO HAIR LOSS SUCH AS USE OF WIGS, TURBANS, AND SCARVES. PARTICIPANTS RECEIVE A FREE KIT OF COSMETICS AND A VARIETY OF WIGS AND HATS FROM WHICH TO CHOOSE. *CANCER SURVIVORS DAY IS SPONSORED FOR PATIENTS AND GUESTS TO PARTICIPATE IN AN ANNUAL NATIONAL CELEBRATION OF LIFE. *HEALTH-RELATED MONTHLY MEETINGS ARE HELD IN HOSPITAL FACILITIES FOR: ALCOHOLICS ANONYMOUS ALZHEIMER'S SUPPORT GROUP AMPUTEE SUPPORT GROUP DIABETES SUPPORT GROUP MULTIPLE SCLEROSIS SUPPORT GROUP NARCOTICS ANONYMOUS PARKINSON'S 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 SMH TITLE HOLDING COMPANY 500 LAUCHWOOD DRIVE LAURINBURG NC 28352 581849143 TITLE HOLDING COMPANY NC 501(C)(2) 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 MOB LLC 500 LAUCHWOOD DRIVE LAURINBURG NC 28352 205900149 RENTAL ESTATE NC SCOTLAND HEALTH GROUP INC INVESTMENT 210924 1086216 0 1 SCOTLAND ENTERPRISES INC 500 LAUCHWOOD DRIVE LAURINBURG NC 28352 561651832 HEALTH CARE NC SCOTLAND HEALTH GROUP INC C 0 1 0 1 0 0 0 0 0 0 1 1 0 0 0 0 0 0 1 0