2014-08-13T14:01:12-05:00 2013-09-30 560747981 DIXON HUGHES GOODMAN LLP 500 RIDGEFIELD COURT ASHEVILLE NC 28806 990 2012-10-01 560583151 SCOTLAND MEMORIAL HOSPITAL INC SCOT 9102917920 500 LAUCHWOOD DRIVE LAURINBURG NC 28352 MATT PRACHT 9102917920 2014-08-12 1 JEREMY NAESS 8282542254 2012 2015-11-30 17:44:51Z MATT PRACHT 500 LAUCHWOOD DRIVE LAURINBURG NC 28352 134587782 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. 21 19 1438 200 407371 -78892 478245 563130 125274313 130291128 2306301 2463220 1172694 1270304 129231553 134587782 99048 1273 0 0 55960236 55180183 0 0 0 68678210 71701335 124737494 126882791 4494059 7704991 122630583 125546064 52039462 41965930 70591121 83580134 TO PROVIDE HIGH QUALITY, COMPASSIONATE HEALTH CARE. 0 0 111909334 1273 132359270 SEE SCHEDULE O 111909334 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 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 120 0 1 1438 1 1 1 0 0 0 0 0 0 1 1 0 X 21 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 2.00 X X 0 0 0 MIKE VINSON 2.00 X X 0 0 0 JANE ROGERS 2.00 X X 0 0 0 DONNA RICHARDSON MD 2.00 X X 99767 0 0 JONATHAN ROWSON MD 1.00 X 231412 0 31583 RICHARD ALEXANDER MD 1.00 X 45200 0 0 KYLE CHAVIS 1.00 X 0 0 0 RAY CHAVIS DDS 1.00 X 0 0 0 CRAIG ELLIS 1.00 X 0 0 0 MILTON FARMER 1.00 X 0 0 0 BETTY HASTY 1.00 X 0 0 0 DAVID HARLING 1.00 X 0 0 0 CHARLES JENKINS 1.00 X 0 0 0 JOSHUA MALCOLM 1.00 X 0 0 0 KATHY MANIS 1.00 X 0 0 0 DONNIE MCDONALD 1.00 X 0 0 0 ALLEN MCLAURIN 1.00 X 0 0 0 JEFF MERCER 1.00 X 0 0 0 KEN NICHOLS 1.00 X 0 0 0 MICHAEL O'DONNELL MD 1.00 X 2200 0 0 KELVIN RAYBON MD 1.00 X 1400 0 0 CHIP SHYTLE 1.00 X 0 0 0 GREGORY WOOD 40.00 X 337816 0 59177 MATT PRACHT 40.00 X 210466 0 47439 PAM ASHLEY 40.00 X 38998 0 10708 LANE HARRINGTON 40.00 X 170536 0 19486 LORI DOVE 40.00 X 157610 0 12895 JOHN NOBLES MD 40.00 X 365619 0 48373 JADENE LOWRY MD 40.00 X 165391 0 24027 JAMES STATEN MD 40.00 X 194336 0 36357 DAVID HOWELL MD 40.00 X 212115 0 29557 DENIS RICARD 40.00 X 172334 0 30319 2405200 0 349921 28 0 1 1 LIBERTY ANESTHESIA PLLC 16101 CADDIE COURT WAGRAM NC 28396 ANESTHESIA SERVICES 2208364 MCKESSON TECHNOLOGIES INC PO BOX 98347 CHICAGO IL 60693 INFORMATION TECHNOLOGY SERVICES 1391657 STRYKER ORTHOPEDICS PO BOX 93213 CHICAGO IL 60673 MEDICAL SUPPLY SERVICES 791954 PINEHURST SURGICAL CLINIC PA 5 FIRST VILLAGE DRIVE PINEHURST NC 28374 PROFESSIONAL SERVICES 365396 HILL-ROM PO BOX 643592 PITTSBURGH PA 15264 MEDICAL SUPPLY SERVICES 258140 9 563130 563130 NET PATIENT SERVICE REVENUE 621500 127613464 127232819 380645 MEANINGFUL USE REVENUE 900099 2551479 2551479 OTHER OPERATING REVENUE 624100 122754 122754 HOSPICE IT CONTRACT 624100 3431 3431 130291128 768923 768923 498642 0 498642 498642 498642 1692814 1483 0 0 1692814 1483 1694297 1694297 CAFETERIA 722210 496529 26726 469803 PURCHASE DISCOUNTS 900099 101095 101095 MISCELLANEOUS REVENUE 900099 94472 94472 79566 79566 771662 134587782 129910483 407371 3706798 X 1273 1273 1327220 360527 966693 39668510 36117851 3550659 3126832 2773008 353824 8295218 7390896 904322 2762403 2449825 312578 -48900 -48900 215814 215814 71392 71392 228448 228448 17007954 13037083 3970871 432695 58345 374350 4920362 4550804 369558 2043729 1866679 177050 377133 311815 65318 20043 4389 15654 323846 323846 8399359 8399359 1000241 3927 996314 BAD DEBT 21428324 21428324 MEDICAL SUPPLIES 12703652 12703652 PROVIDER TAX 2449512 2449512 SPECIAL EVENTS 113422 113422 14309 14309 126882791 111909334 14973457 0 3274 3180 3262310 12109037 17980978 15125850 1926522 1750155 1284653 1478526 149516954 92180607 62847947 57336347 29028794 31630485 1328238 1338927 105735 83475 4862132 4690082 122630583 125546064 13687223 12396056 7062049 6829105 844469 364339 30445721 22376430 52039462 41965930 X 69896787 82613366 694334 966768 70591121 83580134 122630583 125546064 X 7704991 1246068 4037954 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 10080 10080 0 EXPLANATION OF LOBBYING ACTIVITIES: 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 76058136 47446448 28611688 65878482 41096195 24782287 5831769 3637964 2193805 57336347 CAPITAL LEASE OBLIGATIONS 257497 ACCRUED INTEREST PAYABLE 193050 ESTIMATED 3RD PARTY SETTLEMENTS 9666655 PENSION PLAN LIABILITY 12259228 22376430 X 118984043 1246068 1246068 117737975 228448 16621359 16849807 134587782 105226019 0 105226019 21656772 21656772 126882791 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: 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, 2013. THE CORPORATION BELIEVES THEY ARE NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS FOR YEARS PRIOR TO SEPTEMBER 30, 2010. PART XI, LINE 4B - OTHER ADJUSTMENTS: BAD DEBT EXPENSE 21,428,324. IMPAIRMENT OF ASSETS 246,341. PENSION PLAN ADJUSTMENT -8,776,980. TRANSFER OF EQUITY 3,723,674. PART XII, LINE 4B - OTHER ADJUSTMENTS: BAD DEBT EXPENSE 21,428,324. INVESTMENT FEES 228,448. 1 1 1 X 1 X 1 1 1 0 1 1 2867335 2867335 0.02260 18580396 19808923 -1228527 0.00000 21447731 19808923 1638808 0.02260 3419649 2924417 495232 0.00390 20576 20576 0.00020 3440225 2924417 515808 0.00410 24887956 22733340 2154616 0.02670 1 8588779 2147195 46489185 37118683 9370502 X 1 0 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 X X X X X X X 1 0 1 1 200.000000000000 1 400.000000000000 1 X X X X 1 1 X X X X 1 0 1 X 0 0 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 II: 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 USES OUTSIDE COLLECTION AGENCIES AFTER EVALUATING CRITERIA WITHIN THE FINANCIAL ASSISTANCE POLICY TO IDENTIFY PATIENTS WHO QUALIFY FOR ASSISTANCE. 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. 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 COMMUNITIES OF SCOTLAND AND ROBESON COUNTIES, AND MARLBORO COUNTY, SOUTH CAROLINA, THE PRIMARY FOCUS OF THE COMMUNITY-BASED SURVEY ENCOMPASSED SCOTLAND COUNTY. SINCE 2010, THE POPULATION OF THE COUNTY HAS DECREASED .2% TO 36,094, WITH MALES COMPRISING 49% AND FEMALES 51%. THE RACIAL MAKEUP IS 47% WHITE, 39% BLACK, 11% AMERICAN INDIAN, AND 3% HISPANIC. THE POVERTY RATE OF SCOTLAND COUNTY IS 30.6% AND MEDIAN HOUSEHOLD INCOME IS $30,472. UNEMPLOYMENT RATES HAVE CONSISTENTLY RANKED THE HIGHEST IN THE STATE OF NORTH CAROLINA, WITH A 14.4% RATE IN 2013, A TOTAL OF 1,849 UNEMPLOYED INDIVIDUALS IN OCTOBER 2013. 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. REPORTS FILED WITH STATES PART VI, LINE 7 NC,SC 1 NURSING AND HUMAN RESOURCE SCHOLARSHIPS PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, 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 DONNA RICHARDSON MD 99767 0 0 0 0 0 0 0 0 0 99767 0 0 0 JONATHAN ROWSON MD 192737 0 38675 0 0 0 2180 0 29403 0 262995 0 0 0 GREGORY WOOD 238474 0 74258 0 25084 0 27427 0 31750 0 396993 0 0 0 MATT PRACHT 171012 0 37651 0 1803 0 23658 0 23781 0 257905 0 0 0 LANE HARRINGTON 145431 0 25105 0 0 0 3411 0 16075 0 190022 0 0 0 LORI DOVE 134403 0 23207 0 0 0 0 0 12895 0 170505 0 0 0 JOHN NOBLES MD 292428 0 73191 0 0 0 3406 0 44967 0 413992 0 0 0 JADENE LOWRY MD 154803 0 10588 0 0 0 0 0 24027 0 189418 0 0 0 JAMES STATEN MD 173486 0 20850 0 0 0 3459 0 32898 0 230693 0 0 0 DAVID HOWELL MD 168515 0 43600 0 0 0 4107 0 25450 0 241672 0 0 0 DENIS RICARD 163697 0 8637 0 0 0 3447 0 26872 0 202653 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. SUPPLEMENTAL INFORMATION PART III DR. DONNA RICHARDSON RECEIVED COMPENSATION FROM AN UNRELATED ORGANIZATION FOR SERVICES PROVIDED TO THE HOSPITAL. 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. OTHER FEES FORM 990, PART IX, LINE 11G EQUIP MAINT CONTRACT FEES: PROGRAM SERVICE EXPENSES 2,160,433. MANAGEMENT AND GENERAL EXPENSES 1,499,421. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 3,659,854. CONSULTANT FEES: PROGRAM SERVICE EXPENSES 30,702. MANAGEMENT AND GENERAL EXPENSES 100,057. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 130,759. CONTRACT FEES: PROGRAM SERVICE EXPENSES 7,643,423. MANAGEMENT AND GENERAL EXPENSES 2,196,928. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 9,840,351. MEDICAL SPEC FEES: PROGRAM SERVICE EXPENSES 2,841,122. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 2,841,122. OTHER PROFESSIONAL FEES: PROGRAM SERVICE EXPENSES 361,403. MANAGEMENT AND GENERAL EXPENSES 174,465. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 535,868. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: PENSION PLAN ADJUSTMENT 8,776,980. TRANSFER TO AFFILIATES -4,492,685. IMPAIRMENT OF ASSETS -246,341. STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS: 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, 2013, THE HOSPITAL RECORDED 19,506 ADULT AND PEDIATRIC PATIENT DAYS AND 1,488 INPATIENT REHABILITATION DAYS, WITH AN AVERAGE DAILY CENSUS OF 53. THE HOSPITAL PERFORMED OVER 5,000 INPATIENT AND OUTPATIENT SURGERIES AND OVER 800 ENDOSCOPY CASES. OVER 46,000 PATIENTS WERE TREATED IN THE EMERGENCY ROOM AND 665 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 RURAL HEALTH CLINICS, TWO 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 45,000 IN 2013. 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. 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 ALZHEIMERS SUPPORT GROUP AMPUTEE SUPPORT GROUP DIABETES SUPPORT GROUP MULTIPLE SCLEROSIS SUPPORT GROUP NARCOTICS ANONYMOUS PARKINSONS 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 204780 1136963 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 1 1 1 1 0 0 1 1