2013-08-13T13:53:22-05:00 2012-09-30 861065772 Deloitte Tax LLP 191 Peachtree Street Suite 2000 Atlanta GA 30303 990 2011-10-01 510473500 McLeod Health MCLE 8437772256 555 E Cheves Street Florence SC 295020551 S Fulton Ervin III 8437772911 2013-08-13 1 John W Sadoff Jr P00540589 4042201500 2011 2016-02-24 21:20:13Z Robert Colones 555 E Cheves Street Florence SC 295020551 103504835 0 X www.mcleodhealth.org X 2003 SC To operate a Health Care System 21 20 625 20 0 0 0 0 96929858 103950826 0 0 -263772 -445991 96666086 103504835 0 0 0 0 83795637 93020513 0 0 0 13134223 13392262 96929860 106412775 -263774 -2907940 3681324 2962156 11737587 11464405 -8056263 -8502249 To operate a health care system providing medical excellence to the Eastern Region of South Carolina and the extreme Southeastern Region of North Carolina. 0 0 42073264 103950826 McLeod Health is a supporting organization to McLeod Regional Medical Center of the Pee Dee, Inc., McLeod Medical Center - Dillon and McLeod Loris/Seacoast Hospital. On a daily basis, McLeod Health coordinates the delivery of quality acute care services to the residents of the Eastern Region of South Carolina and extreme Southeastern region of North Carolina. See also the community benefit report for McLeod Health at Schedule O. 42073264 1 0 0 1 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 0 0 1 1 0 0 0 1 35 0 1 625 1 0 0 0 0 0 0 0 0 0 0 1 1 0 X 21 20 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 1 X Mark W Cameron 8437775304 555 East Cheves St Florence SC 295020551 Kaye Floyd-Parris 1.00 X X 0 0 0 Charles J Bethea 1.00 X X 0 0 0 James C McLeod Jr 1.00 X 0 0 0 J Ronald Ward 1.00 X 0 0 0 John R Braddy 1.00 X 0 0 0 Leander Crawford 1.00 X 0 0 0 Dewey N Ervin MD 1.00 X 0 0 0 Larry Geddie 1.00 X 0 0 0 E Daniel Guyton Jr MD 1.00 X 0 0 0 Mellany F Isom 1.00 X 0 0 0 William N Boulware MD 1.00 X 0 0 0 W Crawford Moore 1.00 X 0 0 0 John D Orr 1.00 X 0 0 0 John C Pittard MD 1.00 X 0 0 0 Michael R Rose MD 40.00 X 238104 0 23563 Steven R Ross MD 1.00 X 0 0 0 Gerald T Rosenlund 1.00 X 0 0 0 Benjamin T Zeigler 1.00 X 0 0 0 Willie E Boyd Sr MD 1.00 X 0 0 0 Thomas B Richardson 1.00 X 0 0 0 Tracy Ray OD 1.00 X 0 0 0 Ronald M Fowler 1.00 X 0 0 0 Frank Boulineau 1.00 X 0 0 0 Frances Segars Jones 1.00 X 0 0 0 C Dale Lusk MD 1.00 X 0 0 0 Robert L Colones 40.00 X 641516 0 96351 S Fulton Ervin III 40.00 X 394573 0 116174 Ronald L Boring 40.00 X 361601 0 125001 Donna C Isgett 40.00 X 385124 0 110634 Charles M Jordan 40.00 X 395111 0 32330 Jenean M Blackmon 40.00 X 258775 0 68798 Dane P Ficco 40.00 X 325707 0 91676 Marie G Segars 40.00 X 367546 0 130093 3368057 0 794620 36 0 1 0 Siemens Medical Solutions 1640 Phoenix Blvd Suite 110 Atlanta GA 311920065 Data Processing 2681534 Lesnik Himmel Wilson Hearl Inc 3005 Hwy 17 N Bypass Myrtle Beach SC 29577 Advertising 838168 Deloitte & Touche LLP PO Box 403568 Atlanta GA 303843568 Accounting 213808 Ogletree Deakins Nash Smoak & Stewart PO Box 89 Columbia SC 29202 Legal/Consulting 135738 Aiken Bridges Elliott Tyler Saleeby PO Drawer 1931 Florence SC 29503 Legal/Consulting 116570 5 Allocated Benefits 524298 55913851 55913851 Health Systmen Managem 900099 40962024 40962024 Laundry Allocation 812300 1716781 1716781 Internal Phys Billing 624100 1115138 1115138 Patient Revenue 624100 624263 624263 3618769 3618769 103950826 Loss in subsidiary 900099 -445991 -445991 -445991 103504835 103950826 0 -445991 2461954 2215758 246196 29446101 11189518 18256583 7400066 2812025 4588041 35975563 13670714 22304849 17736829 6739995 10996834 373988 373988 274081 274081 44208 16799 27409 4003923 1521491 2482432 967906 967906 1985380 754444 1230936 4246702 1613747 2632955 88960 33805 55155 341311 129698 211613 182186 69231 112955 249104 94660 154444 Other Direct 315754 119987 195767 0 Dues & Subscriptions 209973 79790 130183 0 Medical 75490 28686 46804 0 Contract Labor 29494 11208 18286 0 3802 3802 106412775 42073264 64339511 0 491 873 147534 229590 1169008 814180 2364291 1917513 3681324 2962156 11737587 11464405 0 11737587 11464405 X -8056263 -8502249 0 0 -8056263 -8502249 3681324 2962156 X -2907940 2461954 X 0 1 1 X 0 X X X X 0 0 0 McLeod Regional Medical Center o the Pee Dee Inc 570370242 3 1 0 McLeod Medical Center - Dillon 510473471 3 1 0 McLeod Physician Associates II 202935692 3 1 0 McLeod Loris Seacoast Hospital 453576100 3 1 0 4 0 0 0 0 0 0 1 44208 0 0 0 44208 0 Part IV, Supplemental Information: Part II-B, Line 1(i), Other Lobbying Activities: McLeod Health pays dues to Capitol Consultants to lobby on McLeod Health's behalf on certain South Carolina legislative issues that impact McLeod Health's health care activities. In addition, a portion of dues paid to South Carolina Hospital Association are allocated to lobbying activities that SCHA engages in to represent the interests of member hospitals in South Carolina. 0 0 0 Investments in Affiliates 1916976 Rental Security Deposit Rcvble 537 1917513 X 1 1 X X X X X X 0 0 0 0 0 0 0 0 0 Michael R Rose MD 221271 0 14706 0 2127 0 0 0 23563 0 261667 0 0 0 Robert L Colones 583155 0 50000 0 8361 0 31200 0 65151 0 737867 0 0 0 S Fulton Ervin III 321613 0 65820 0 7140 0 22000 0 94174 0 510747 0 0 0 Ronald L Boring 305100 0 48840 0 7661 0 38500 0 86501 0 486602 0 0 0 Donna C Isgett 315723 0 63475 0 5926 0 16500 0 94134 0 495758 0 0 0 Charles M Jordan 393821 0 0 0 1290 0 11462 0 20868 0 427441 0 0 0 Jenean M Blackmon 225015 0 28003 0 5757 0 9800 0 58998 0 327573 0 0 0 Dane P Ficco 268384 0 51407 0 5916 0 14700 0 76976 0 417383 0 0 0 Marie G Segars 295235 0 63477 0 8834 0 38500 0 91593 0 497639 0 0 0 Supplemental Information Part III Part I, Line 1a: Ronald L. Boring was provided a Housing Allowance upon his relocation to Florence, SC when he began his employment at McLeod Health and for a temporary period shortly thereafter. Dr Michael R Rose Board Member 368453 Independent 0 (a) Name of Person: Dr. Michael R. Rose (b) Relationship Between Interested Person and Organization: Board Member (c) Amount of Transaction $ 368,453 (d) Description of Transaction: Independent contractor arrangement for Anesthesia Services, board member is partner (e) Sharing of Organization Revenues? No Form 990, Part VI, Section B, line 11 The process the organization uses to review the Form 990 consists of providing copies of the Form 990 to the Board of Trustees of McLeod Health at the June 2013 Board meeting, along with a presentation covering the Form 990 by the preparing firm, Deloitte Tax, to allow for a thorough review by the Board before the filing date of August 15, 2013. Form 990, Part VI, Section B, line 12c McLeod Health regularly and consistently monitors and enforces compliance with the conflict of interest policy in that any director, principal officer, or member of a committee with governing board delegated powers, who has a direct or indirect financial interest, must disclose the existence of the financial interest and be given the opportunity to disclose all material facts to the directors and members of the committees with governing board delegated powers considering the proposed transaction or arrangement. The remaining individuals on the governing board or committee meeting will decide if conflicts of interest exist. Each director, principal officer and member of a committee with governing board delegated powers annually signs a statement which affirms such person has received a copy of the conflict of interest policy, has read and understands the policy, has agreed to comply with the policy, and understands that the organization is charitable and in order to maintain its federal tax exemption it must engage primarily in activities which accomplish its tax-exempt purpose. Form 990, Part VI, Section B, line 15 In determining compensation of McLeod Health's CEO and the other officers and key employees, the process included a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision. The governance committee reviewed and approved the CEO's compensation. In the review of compensation, the CEO, other officers, and other key employees, was compared to other similarly situated organizations and positions. Individuals were not present when their compensation was determined. Form 990, Part VI, Section C, line 19 Governing documents, conflict of interest policy, and financial statements are available to the public upon request. Changes in Net Assets or Fund Balances: Form 990, Part XI, line 5: Net unrealized gains on investments: 2,461,954. Form 990, Part III, Line 4a: Nationally recognized for quality, McLeod Health is a not-for-profit regional medical center that is built on the foundation of premier technology, modern facilities, and an unsurpassed dedication to improving the health of the community it serves. The service area covers a 15 county area encompassing nearly 11,500 square miles and a population of more than one million. Since 1906, McLeod Health has been the choice for medical excellence for the communities it has impacted. The hospitals within McLeod include McLeod Regional Medical Center in Florence, McLeod Darlington, McLeod Behavioral Health Center, McLeod Dillon, and, as of January 2012, McLeod Loris and McLeod Seacoast. The Florence facility is the flagship of McLeod Health. This regional referral center features an accredited Cancer Center and Heart & Vascular Institute, three dedicated open-heart surgery suites as well as Centers of Excellence in Heart, Cancer, Surgery, Neurosurgery, Trauma, Children's and Women's Services, and the Center for Advanced Surgery. Additionally, McLeod provides Home Health Services, Hospice, Diabetes Services, state of the art radiology, Health and Fitness, Physical and Cardiac Rehab programs and more. Most recently, McLeod has invested in the community by building a Center for Intensive Care and a new Cancer Center building. The McLeod Foundation also helps financially support specific programs, growth and projects, through philanthropy and grants. McLeod Health strives to recruit and retain employees that have proven their dedication and loyalty to serving others. Recruitment and retention of dedicated employees demonstrates a loyalty to the healthcare environment. Sustaining critical services and adding an additional personal touch to each patient is accomplished every day by 750 physicians and 6,300 employees. Currently, McLeod Regional Medical center in Florence has nearly 500 beds, and in total, McLeod Health includes 883 licensed beds for patient care. These, coupled with the diverse number of services provided, allow McLeod to meet the unique and vast array of health care needs in our 12 county service area. As one of the region's largest service organizations, including physicians, nurses, and pharmacists, as well as computer technicians, environmental workers, therapists, and other medical professionals, McLeod employees' direct wage impact to the region last year was $299 Million. This money flows to groceries stores, car dealers, restaurants, churches, local vendors and suppliers and other organizations to help stimulate the region's economy each year. The challenge in today's medical climate is to improve the quality of care and the ability of healthcare providers to reduce cost while maintaining quality. This is due to the fact of the shrinking reimbursements and healthcare reform. McLeod has continued to provide and grow essential services to care for patients in the region with the core values of Caring, Person, Quality and Integrity as a guide to quality and operational efficiency. McLeod has been recognized numerous times for its outstanding work in quality care, best practices, and clinically proven outcomes. Guests from across the globe seek out McLeod teams to share and observe best practices in quality and safety. These extensive efforts have resulted in the 2010 American Hospital Association- McKesson Quest for Quality Prize, in which McLeod was the first hospital in South Carolina to be presented with this honor since its inception. McLeod Health has numerous initiatives in place to provide community benefits that promote prevention, healing, and treatment. Some of these initiatives include health education, support groups, city sponsored and industry health fairs, health screenings and immunizations, free and discounted medical supplies, research, and financial and in-kind contributions. The community outreach budget allocates approximately $250,000 across the healthcare system to sponsorships and donations to serve in civic, academic and corporate partnerships. McLeod is proactively affiliating with academic institutions to address our community's healthcare needs. McLeod facilitates a Family Medicine Residency Program and sponsors the Medical University of South Carolina bachelor's degree nursing program as well as Florence Darlington Technical College's associate degree nursing program. Rotations at McLeod Regional Medical Center in clinical and administrative areas are offered to students from educational programs throughout the state, and the South East Cancer Control Consortium collaborates with McLeod in the field of cancer treatment. Through these structured programs, the complex world of healthcare unfolds for participants for further study. Dedicated to stewardship and service for more than 107 years, McLeod has prudently built and developed reserves in order to continue to grow as a mission minded hospital committed to improving the health of our people in the region. In terms of surpluses, like any business or family, a hospital must earn more than it spends to be viable and fulfill its mission. McLeod has set aside funds for the future growth needed in healthcare services. These funds are professionally managed and are in accordance with guidelines established by Moody's Investors Service for a service organization appropriate to McLeod's size and scope. Money from the operating margin is reinvested in the local economy and used for expansion or replacement of equipment, technology and facilities to meet the highest standards of care, quality and safety for patients. Improvements translate to services needed in our community, as well as access to medical care for acutely ill patients and those impacted by the state's most prevalent diseases, many of which are the highest in the nation. McLeod's projects and medical developments are consistent with the needs identified by South Carolina DHEC's State Health Plan. Every year, these hospitals serve 150,000 patients in their emergency rooms, regardless of a persons ability to pay. McLeod Health hospitals annually diagnose or treat nearly half a million people as outpatients and care for more than 30,000 ill and surgical inpatients. The hospitals and their Emergency Departments are open 24 hours a day, 365 days a year. In Fiscal Year 2012, McLeod Health provided the region with significant amounts worth of Charity Care to benefit community families. McLeod Health not only provides community benefit through the services offered but also by stimulating the local economy. Last year, more than $13 Million was contributed in sales tax, approximately $479,000 in Property Taxes, and more than $14.1 Million in hospital provider taxes to benefit the communities where its employees and patients live and work. Healthy lifestyle promotion is a fundamental principle of McLeod. Health screenings are offered to the community to check for problems in blood pressure, cholesterol, diabetes, breast, skin and prostate cancer, osteoporosis, peripheral vascular disease, and stroke. Nearly 100 support groups, classes, health fairs, seminars, screenings and programs free or at a reduced cost are provided to attendees seeking to learn about and deal with many medical issues. Childbirth preparation classes, Infant/Child CPR, Child Safety Passenger Checks from McLeod SafeKids, and SafeSitters sessions are offered. In addition, a computer located in the McLeod Resource Center is available to the public for Internet access to the most current health information. These benefits to the community demonstrate the heart of serving and compassionate care that is the core, and the legacy, of McLeod Health. McLeod Health Foundation 555 East Cheves Street Florence SC 295020551 570818672 To raise money for McLeod SC 501(c)(3) Line 11a N/A 0 McLeod Regional Medical Center of the Pee Dee Inc 555 East Cheves Street Florence SC 295020551 570370242 To operate a hospital SC 501(c)(3) Line 3 N/A 0 McLeod Medical Center - Dillon 555 East Cheves Street Florence SC 295020551 510473471 To operate a hospital SC 501(c)(3) Line 3 N/A 0 McLeod Physician Associates II 555 East Cheves Street Florence SC 295020551 202935692 Physician Services SC 501(c)(3) Line 3 N/A 0 McLeod Loris Seacoast Hospital 555 East Cheves Street Florence SC 295020551 453576100 To operate a hospital SC 501(c)(3) Line 3 N/A 0 LorisSeacoast Healthcare Foundation - 2812-93012 555 East Cheves Street Florence SC 295020551 421704953 To Raise money for McLeod SC 501(c)(3) Line 11a N/A 0 McLeod Medical Partners LLC 4401 Barclay Down Dr STE 300 Charlotte NC 282094670 570812002 Rental SC N/A McLeod Physician Associates Inc 555 East Cheves Street Florence SC 29501 582279897 Physician Services SC N/A C LorisSeacoast Healthcare Foundation - 100111-2712 555 East Cheves Street Florence SC 295020551 421704953 To Raise money for McLeod SC N/A C 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 McLeod Regional Medical Center of the Pee Dee Inc K 37023459 Actual Cost of Services Provided McLeod Medical Center - Dillon K 3484315 Actual Cost of Services Provided McLeod Physician Associates II K 2038535 Actual Cost of Services Provided McLeod Health Foundation K 177476 Actual Cost of Services Provided McLeod Loris Seacoast Hospital K 412656 Actual Cost of Services Provided