2013-08-13T11:52:53-05:00 2012-09-30 ERNST & YOUNG US LLP TWO NORTH CENTRAL AVENUE STE 2300 PHOENIX AZ 85004 990 2011-10-01 942735850 SCOTTSDALE HEALTHCARE CORPORATION % TODD LAPORTE SCOT 4808824000 7400 EAST OSBORN ROAD SCOTTSDALE AZ 85251 TODD LAPORTE 2013-08-12 6023223000 2011 2016-02-24 21:20:13Z THOMAS J SADVARY 7400 E OSBORN ROAD SCOTTSDALE AZ 85251 137824603 false X WWW.SHC.ORG X 1964 AZ SEE SCHEDULE O 17 11 7540 0 -16774 0 656903 487094 54060627 62721295 12407697 45601184 0 0 67125227 108809573 0 0 0 0 31948339 32834362 0 0 0 26355974 35061561 58304313 67895923 8820914 40913650 525033476 633736658 481690946 522446081 43342530 111290577 X SEE SCHEDULE O false false 41036927 0 62721295 PROVIDE OVERALL PLANNING AND DIRECTION TO ALL AFFILIATED EXEMPT ORGANIZATIONS, COORDINATE GROWTH AND DEVELOPMENT, SECURE FINANCING, AND IDENTIFY NEW OR EXPANDED HEALTH SERVICE NEEDS. FURTHERING, PROMOTING, AND SUPPORTING COMMUNITY HEALTH THROUGH THE OPERATION AND CONDUCT OF LONG RANGE HEALTH CARE PLANNING AND FUNDRAISING FOR COMMUNITY HEALTHCARE (SECTION 501(C)(3)) ORGANIZATIONS. 41036927 true true false true false false false false false false true false false true true false false true false false true false false false false false false false false true true false false false false false false false false false false false false false false false true true true true false true 1121 0 true 7540 true false false false false false false false false false false false X 17 11 false false false false false false false true true false false true true true true true true true true true true AZ X TODD LAPORTE 4808826186 8125 N HAYDEN RD SCOTTSDALE AZ 85258 X DREW BROWN 1.0 X 0 0 0 RICHARD FOX 1.0 X 0 0 0 KARRIE FRANCOIS 1.0 X 0 0 0 BRAD GAZAWAY 1.0 X X 0 0 0 RUFUS GLASPER 1.0 X X 0 0 0 JOHN B GROTTING 1.0 X X 0 0 0 RONALD KORN 1.0 X 0 0 0 JOHN D MUSIL 1.0 X 0 0 0 BRAD OSWOOD 1.0 X 85789 0 0 KATHLEEN PLAYER 1.0 X 0 0 0 MARILYN QUAYLE 1.0 X 0 0 0 THOMAS J SADVARY 39.0 X X 5785542 0 267334 PAUL W SIECKMANN 1.0 X 41025 0 0 RICHARD SILVERMAN 1.0 X 0 0 0 DENNIS STIZZA 1.0 X 60000 0 0 MIKE WELBORN 1.0 X X 0 0 0 STEVEN M WHEELER 1.0 X X 0 0 0 F KEITH WITHYCOMBE 1.0 X 0 534 0 GARY E BAKER 13.0 X 391649 0 134796 DAVID A BARBER 40.0 X 310261 0 78815 JAMES F BURKE 39.0 X 425223 0 197304 JAMES R CRAMER 40.0 X 311871 0 129090 MICHAEL R FOLEY 40.0 X 439808 0 114257 ALAN B KELLY 35.0 X 933956 0 101429 TODD A LAPORTE 35.0 X 465241 0 165674 WENDY H LYONS 40.0 X 1982571 0 145486 CAROL H MCCUNE 39.0 X 2275349 0 120087 VIKKI L NOYES 8.0 X 252843 0 66060 KIMBERLY A POST 7.0 X 280659 0 95112 PEGGY J REILEY 15.0 X 853378 0 49441 RICHARD C SILVER 20.0 X 326841 0 17292 MARK A SLATER 0.0 X 279194 0 86536 BRIAN D STEINES 40.0 X 267075 0 58155 DEAN C THOMAS 0.0 X 280013 0 77995 LOIS E UNIAT 20.0 X 266294 0 11741 KATHI L ZARUBI 0.0 X 258586 0 14071 CHERALYN T BEAUDRY 40.0 X 217681 0 8882 BELLE A BUTLER 40.0 X 206127 0 9256 MICHAEL H HILDEBRANDT 40.0 X 216128 0 10604 SUSAN LIVENGOOD 40.0 X 214743 0 12752 PEGGY P MOREHOUSE 40.0 X 152597 0 11633 BETTY A STEPHENSON 40.0 X 160414 0 10321 CYNTHIA L KEGOWICZ 40.0 X 222320 0 13495 MARVIN M BELL 40.0 X 236847 0 13706 KRISTIE A DEYERLE 40.0 X 230547 0 9714 ROBERT A MARLOW 40.0 X 242429 0 12349 DARLENE E MOYER 40.0 X 227860 0 9252 JEAN KNOEDLER 0.0 X 554161 0 12666 19455022 534 2065305 63 true true false KIM FLAGG DBA THREE FLAGGS MEDIA 701 E FAIRWAY DR LITCHFIELD PARK AZ 85340 MARKETING MEDIA 2195953 RSI ENTERPRISES INC PO BOX 16190 PHOENIX AZ 85011 COLLECTIONS 1880955 DNH MEDICAL MANAGEMENT INC 100 N SUPELVEDA BLVD STE 600 EL SEGUNDO CA 92045 CONSULTANTS 1379929 DELOITTE TOUCHE LLP PO BOX 7247-6447 PHILADELPHIA PA 19170 ACCOUNTANTS 1117511 ADVANCED REIMBURSEMENT MANAGEMENT L 201 N CENTRAL AVE STE 2704 PHOENIX AZ 85004 COLLECTIONS 1025105 35 487094 487094 CONTRACT MGMT FEE/UNDERWRITING 900099 62096696 62096696 MISC HEALTHCARE REVENUE 900099 451607 451607 FLOW THROUGH FROM SHC ASC, LLC 621990 172992 172992 62721295 12078744 -16774 12095518 611470 611470 0 61926000 29015030 32910970 32910970 32910970 0 0 0 0 108809573 62721295 -16774 45617958 0 0 0 0 11692478 0 11692478 0 15390716 11850851 3539865 690433 531633 158800 3241330 2495824 745506 1819405 1400942 418463 0 619842 477278 142564 664337 0 664337 0 0 0 8952548 6893462 2059086 1194308 919617 274691 564370 434565 129805 810347 623967 186380 0 1350062 1039548 310514 115609 89019 26590 0 188468 0 188468 650093 0 650093 0 1405835 0 1405835 511665 393982 117683 INTERCOMPANY EXPENSES 3681513 2834765 846748 PREMIUMS 12498333 9623716 2874617 RECRUITMENT 605288 466072 139216 DUES AND SUBSCRIPTIONS 583422 449235 134187 665521 512451 153070 67895923 41036927 26858996 0 5488052 10078326 248329410 314648622 0 0 0 0 0 0 0 0 932458 588214 0 0 215263 432614 7422010 4589133 3780787 2832877 0 0 14041581 15232265 0 0 0 0 252245925 289923740 525033476 633736658 34479120 46160186 0 0 0 0 365839795 372894139 0 0 0 0 422628 422628 0 0 80949403 102969128 481690946 522446081 X 0 0 43342530 111290577 0 0 43342530 111290577 525033476 633736658 X 40913650 27034397 X false true true X true true X X X X false false false SCOTTSDALE HEALTHCARE HOSPITALS 860181654 03 true true true 41036927 1 41036927 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true false false false false false false true 199151 199151 false LOBBYING ACTIVITIES SCHEDULE C, PART II-B LOBBYING EXPENDITURES CONSIST OF THE ACTIVITIES OF THE CORPORATION'S GOVERNMENT RELATIONS DEPARTMENT TO ADVANCE AND SUPPORT LEGISLATION FOR THE BENEFIT OF HEALTHCARE. 52776 52776 2223165 1175578 1047586 716013 696839 19174 4050798 2337457 1713341 379258 379258 0 2832877 CASH RESERVED FOR FUNDED DEPR 142868533 DUE FROM AFFILIATES 64221724 TRUSTEE FUNDS 25430239 BOND ISSUE COSTS 17729635 INSURANCE RECOVERIES 15854483 CASH VALUE LIFE INSURANCE 10692429 RABBI TRUST RETIREMENT PLAN 9396052 OTHER RECEIVABLES 3677751 OTHER MISCELLANEOUS 52894 289923740 0 INSURANCE RESERVE 35442070 HEDGE RATE SWAP AND MARK TO MARKET 32447083 SERP-EXEC RETIREMENT PLAN 21355956 EXEC DEFERRED COMPENSATION 9691461 PHYSICIAN GUARANTEE 2098764 ACCRUED INTEREST 432361 MISC LIABILITY 1501433 102969128 UNCERTAIN TAX POSITIONS SCHEDULE D, PART X, LINE 2 NO UNCERTAIN TAX POSITIONS HAVE BEEN IDENTIFIED AS OF SEPTEMBER 30, 2012. Central America and the Caribbean Investments 49468063 49468063 49468063 true false true false false false X X true true X X X X true true false false false false false false false THOMAS J SADVARY 633196 0 274083 0 4878263 0 257970 0 9364 0 6052876 0 4847418 0 GARY E BAKER 287189 0 84140 0 20320 0 125928 0 8868 0 526445 0 0 0 DAVID A BARBER 234607 0 56014 0 19640 0 68885 0 9930 0 389076 0 0 0 JAMES F BURKE 293896 0 109215 0 22112 0 188755 0 8549 0 622527 0 0 0 JAMES R CRAMER 233311 0 55052 0 23508 0 123682 0 5408 0 440961 0 0 0 MICHAEL R FOLEY 339424 0 79059 0 21325 0 105937 0 8320 0 554065 0 0 0 ALAN B KELLY 273980 0 79054 0 580922 0 95326 0 6103 0 1035385 0 575199 0 TODD A LAPORTE 342665 0 102246 0 20330 0 154519 0 11155 0 630915 0 0 0 WENDY H LYONS 199509 0 48461 0 1734601 0 138618 0 6868 0 2128057 0 1714106 0 CAROL H MCCUNE 242873 0 57021 0 1975455 0 109650 0 10437 0 2395436 0 1970831 0 VIKKI L NOYES 205256 0 44791 0 2796 0 60908 0 5152 0 318903 0 0 0 KIMBERLY A POST 202282 0 49552 0 28825 0 86847 0 8265 0 375771 0 0 0 PEGGY J REILEY 312521 0 93917 0 446940 0 43565 0 5876 0 902819 0 420315 0 RICHARD C SILVER 265767 0 38548 0 22526 0 9800 0 7492 0 344133 0 0 0 MARK A SLATER 208095 0 51489 0 19610 0 72871 0 13665 0 365730 0 0 0 BRIAN D STEINES 203254 0 47909 0 15912 0 53137 0 5018 0 325230 0 0 0 DEAN C THOMAS 210501 0 50626 0 18886 0 71903 0 6092 0 358008 0 0 0 LOIS E UNIAT 208339 0 30848 0 27107 0 8465 0 3276 0 278035 0 0 0 KATHI L ZARUBI 186217 0 26692 0 45677 0 7703 0 6368 0 272657 0 0 0 CHERALYN T BEAUDRY 167003 0 25951 0 24727 0 7372 0 1510 0 226563 0 0 0 BELLE A BUTLER 159933 0 45179 0 1015 0 6437 0 2819 0 215383 0 0 0 MICHAEL H HILDEBRANDT 172781 0 24981 0 18366 0 7027 0 3577 0 226732 0 0 0 SUSAN LIVENGOOD 153330 0 32090 0 29323 0 7022 0 5730 0 227495 0 0 0 PEGGY P MOREHOUSE 138058 0 12497 0 2042 0 5757 0 5876 0 164230 0 0 0 BETTY A STEPHENSON 144287 0 13823 0 2304 0 5947 0 4374 0 170735 0 0 0 CYNTHIA L KEGOWICZ 189851 0 28539 0 3930 0 7946 0 5549 0 235815 0 0 0 MARVIN M BELL 202034 0 29820 0 4993 0 8298 0 5408 0 250553 0 0 0 KRISTIE A DEYERLE 195926 0 28041 0 6580 0 7909 0 1805 0 240261 0 0 0 ROBERT A MARLOW 208850 0 28464 0 5115 0 7867 0 4482 0 254778 0 0 0 DARLENE E MOYER 187039 0 37020 0 3801 0 7550 0 1702 0 237112 0 0 0 JEAN KNOEDLER 106202 0 51218 0 396741 0 9222 0 3444 0 566827 0 268642 0 SCHEDULE J, PART I, LINE 1 HOUSING ALLOWANCE - THE HOUSING ALLOWANCE IS A TEMPORARY ALLOWANCE WHICH IS TAXABLE AND PAID THROUGH PAYROLL ON THE FIRST PAYCHECK OF EACH MONTH DURING THE PERIOD OF THE TEMPORARY HOUSING. THIS IS PART OF THE RELOCATION PACKAGE FOR MANAGERS AND ABOVE AS WELL AS PHYSICIANS. THE AMOUNT PAID PER MONTH AND THE LENGTH IS DETERMINED BY THE LEVEL OF THE POSITION. TAX GROSS-UP PAYMENTS - THESE ARE PAYMENTS FOR: 1.) EMPLOYEES RECEIVING A TAXABLE AWARD, GIFT, OR GIFT CERTIFICATE; 2.) PAYMENTS MADE ON BEHALF OF STAFF TO VENDORS DUE TO A CRISIS; 3.) GROUP TERM LIFE EXCESS BENEFIT OF $50,000. IT IS AVAILABLE TO ANY RANK OF EMPLOYEE; OR 4.) A DOMESTIC PARTNER. IT IS AVAILABLE AT OPEN ENROLLMENT FOR INDIVIDUALS WHO WANT TO COVER THEIR NON-MARRIED PARTNER WITH MEDICAL AND/OR DENTAL COVERAGE. SCHEDULE J, PART I, LINE 4A THE FOLLOWING INDIVIDUALS RECEIVED SEVERANCE PAYMENTS: JEAN KNOEDLER $126,862. SCHEDULE J, PART I, LINE 4B SCOTTSDALE HEALTHCARE OFFERS CERTAIN EXECUTIVES A NON-QUALIFIED SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP). IT IS INTENDED THAT THIS PLAN BE AN INELIGIBLE DEFERRED COMPENSATION PLAN UNDER THE PROVISIONS OF CODE SECTION 457(F) AND BE OPERATED IN COMPLIANCE WITH CODE SECTION 409A. THE DESIGN OF THE SERP IS SUCH THAT IT PROVIDES A MECHANISM FOR RESTORATION OF DEFERRED RETIREMENT THAT OTHERWISE WOULD BE LOST TO THE EXECUTIVES DUE TO MANDATORY CAP ON DEFERRALS WITHIN THE QUALIFIED RETIREMENT PLAN OFFERED TO OTHER EMPLOYEES OF SCOTTSDALE HEALTHCARE. THE SERP IS ALSO DESIGNED TO DISCOURAGE EXECUTIVE TURNOVER, WHICH COULD HAMPER ORGANIZATIONAL STABILITY AND SUSTAINABILITY, THROUGH THE AGE AND SERVICE REQUIREMENTS THAT AN EXECUTIVE MUST MEET IN ORDER TO RECEIVE BENEFITS FROM THIS PLAN. THE ANNUAL VALUE OF EACH EXECUTIVE'S PARTICIPATION IN THE PLAN IS TAKEN INTO CONSIDERATION AS PART OF THE CALCULATION OF TOTAL COMPENSATION WHEN TESTED AGAINST THE MARKET FOR REASONABLENESS. DEFERRED COMPENSATION INCLUDES THE INCREASE IN THE SERP ACCOUNT BALANCE FOR THE FOLLOWING INDIVIDUALS WHO PARTICIPATE IN THE SERP PROGRAM: GARY E BAKER - $116,128 DAVID A BARBER - $59,085 JAMES F BURKE - $178,955 JAMES R CRAMER - $113,882 MICHAEL R FOLEY - $96,137 ALAN B KELLY - $85,526 JEAN KNOEDLER - $4,872 TODD A LAPORTE - $144,719 WENDY H LYONS - $129,703 CAROL H MCCUNE - $100,602 VIKKI L NOYES - $52,492 KIMBERLY A POST - $77,729 PEGGY J REILEY - $33,765 THOMAS J SADVARY - $248,170 MARK A SLATER - $63,341 BRIAN D STEINES - $44,310 DEAN C THOMAS - $62,651 IN ADDITION, THE FOLLOWING INDIVIDUALS EXPERIENCED A TAXABLE VESTING EVENT DURING THE YEAR AS FOLLOWS. THESE AMOUNTS WERE INCLUDED IN COLUMN (B)(III) AS TAXABLE WAGES AND COLUMN (F) AS AMOUNTS PREVIOUSLY REPORTED ON THE 990 AS DEFERRED. NOTE THAT THESE AMOUNTS WERE ACCUMULATED OVER MANY YEARS OF SERVICE TO THE ORGANIZATION. THOMAS J SADVARY - $4,847,418 ALAN B KELLY - $575,199 WENDY H LYONS - $1,714,106 CAROL H MCCUNE - $1,970,831 PEGGY J REILEY - $420,315 JEAN KNOEDLER - $268,642 SUPPLEMENTAL COMPENSATION INFORMATION EXECUTIVE INCENTIVE AND BONUS PLAN THE INCENTIVE PLAN INCLUDED SEVERAL MEASUREMENTS. THE 4 MEASUREMENTS ARE AS FOLLOWS: 1.) PATIENT SATISFACTION - PRESS GAINEY AND HCAHPS SCORES; 2.) OPERATING MARGIN - TRIGGER; 3.) PATIENT SAFETY - % OF CMS MEASURES IN TOP DECILE PERFORMANCE AND FALL RATE; 4.) EMPLOYEE SURVEY RESULTS. OPERATING MARGIN IS THE PROGRAM TRIGGER (THRESHOLD MUST BE MET TO TRIGGER ANY PAYOUT). EACH MEASUREMENT HAD A THRESHOLD; TARGET AND OPTIMUM PERFORMANCE LEVEL. EACH PERFORMANCE LEVEL EQUALED A PREDETERMINED NUMBER OF POINTS. THE TOTAL POINTS EARNED EQUATE TO A BONUS % OF SALARY. THE IDA OF THE CITY OF SCOTTSDALE AZ 860494636 810472GBO 2010-08-26 109852372 SEE PART VI false true false THE IDA OF THE CITY OF SCOTTSDALE AZ 860494636 810472EX4 2006-05-25 175800000 SEE PART VI false true false THE IDA OF THE CITY OF SCOTTSDALE AZ 860494636 810472FW5 2008-06-04 151350684 REFUND OF 5/25/06 & 8/1/07 BONDS false true false THE IDA OF THE CITY OF SCOTTSDALE AZ 860494636 810472GBO 2010-09-30 34310000 REFUND OF 6/9/06 BONDS false true false 0 0 109852372 0 0 0 0 0 0 0 0 0 true false false true 0 0 81070281 11777422 0 0 1365670 12683620 0 78497454 0 0 2010 true false true true 0 0 151350684 13271860 0 0 1911360 0 0 0 0 0 true false false true 0 0 34310000 0 0 0 210000 0 0 0 0 0 true false false true false false false false 0.00000 0.00000 0.00000 true false false false false 0.00000 0.00000 0.00000 true false false false false 0.00000 0.00000 0.00000 true false false false false 0.00000 0.00000 0.00000 true false false false 0 true MRGN STNLYCITIMBIA 8. true false false false true false 0 true MRGN STNLYCITIMBIA 8. true false false false false false 0 false 0 false false false true false 0 false 0 false false PART I, COL F 0 LINE A- CONVERSION OF SERIES 2006C-E THROUGH CURRENT REFUNDING OF 5/25/06 0 BONDS. LINE B-FINANCE NEW MONEY PROJECTS AND REFUND 7/8/93, 6/11/03 AND 0 6/25/03 BONDS. 0 FORM 990, PART I, LINE 1 AND PART III, LINE 1 DESCRIPTION OF THE ORGANIZATION'S MISSION THE MISSION OF SCOTTSDALE HEALTHCARE IS TO IDENTIFY AND MEET THE HEALTHCARE NEEDS OF ALL PEOPLE WHO LIVE AND WORK IN THE GREATER SCOTTSDALE AREA THROUGH CREATIVE AND EFFECTIVE COLLABORATION WITH HEALTHCARE PROFESSIONALS AND ORGANIZATIONS. CRITICAL GOALS AND HOW WE ATTAIN OUR VISION: -COMMIT ABSOLUTELY TO QUALITY, CLINICAL CARE AND SERVICE. -ACHIEVE FINANCIAL HEALTH TO FULFILL OUR MISSION AND INVEST IN THE FUTURE. -ASSURE EXCELLENT BOARD, PHYSICIAN, VOLUNTEER, STAFF AND ADMINISTRATION RELATIONSHIPS TO FOSTER COLLABORATIVE PARTNERSHIPS. -DEVELOP, RETAIN, AND RECRUIT THE BEST TALENT TO BECOME THE VALLEY'S HEALTHCARE EMPLOYER OF CHOICE. FORM 990, PART VI, LINE 11 PROCESS USED BY MANAGEMENT AND/OR GOVERNING BODY TO REVIEW FORM 990 THE TAX RETURN INFORMATION IS GATHERED BY THE FINANCE TEAM FROM VARIOUS SOURCES WITHIN THE ORGANIZATION INCLUDING HUMAN RESOURCES, PAYROLL, DEVELOPMENT AND THE LEGAL DEPARTMENT. THE INFORMATION IS REVIEWED BY THE CONTROLLER AND PROVIDED TO AN ACCOUNTING FIRM THAT PREPARES THE TAX RETURNS. AN INITIAL DRAFT OF THE FORM 990 IS SUBMITTED TO THE CONTROLLER, CHIEF FINANCIAL OFFICER, AND LEGAL COUNSEL FOR REVIEW. COMMENTS FROM THOSE INDIVIDUALS ARE CONSIDERED AND INCORPORATED INTO A REVISED DRAFT THAT IS PRESENTED TO THE BOARD OF DIRECTORS PRIOR TO FILING. THE BOARD OF DIRECTORS REVIEWS THE REVISED DRAFT AND SUBMITS COMMENTS TO THE CONTROLLER. COMMENTS FROM THOSE INDIVIDUALS ARE CONSIDERED AND INCORPORATED INTO A FINAL DRAFT PREPARED FOR FILING. THE FINAL DRAFT IS THEN MADE AVAILABLE FOR BOARD MEMBERS PRIOR TO FILING WITH THE IRS. FORM 990, PART VI, LINE 12C PROCESS USED TO MONITOR TRANSACTIONS FOR CONFLICTS OF INTEREST EACH BOARD MEMBER, OFFICER OF THE CORPORATION AND BOARD COMMITTEE MEMBER COMPLETES A CONFLICT OF INTEREST DISCLOSURE STATEMENT ANNUALLY. THE COMPLIANCE OFFICE, ALONG WITH GENERAL COUNSEL, EXAMINES EACH DISCLOSURE STATEMENT WHERE POTENTIAL CONFLICTS HAVE BEEN DISCLOSED. RECOMMENDATIONS ARE MADE TO THE CHAIR OF THE BOARD ON HOW TO APPROPRIATELY REMEDIATE, MONITOR, OR ELIMINATE ANY CONFLICTS. THE COMPLIANCE OFFICE/GENERAL COUNSEL THEN PROVIDES TO THE INTERESTED PERSON, WITH COPIES TO THE CHAIR OF THE BOARD, THE CEO, AND, IF NEEDED, THE APPROPRIATE COMMITTEE CHAIR, A CORRESPONDENCE THAT SPECIFIES WHAT ACTIONS, CONDITION, OR MONITORING OF THE CONFLICT ARE REQUIRED AND WHETHER THE INTERESTED PERSON IS PERMITTED TO GIVE A PRESENTATION TO THE BOARD OR APPROPRIATE COMMITTEE AFTER FULL DISCLOSURE OF THE CONFLICT. IN SUCH AN EVENT, THE INTERESTED PERSON LEAVES THE MEETING WHILE THE PROPOSED TRANSACTION IS DISCUSSED. THE INTERESTED PERSON IS REQUIRED TO CO-SIGN CORRESPONDENCE SENT BY THE GENERAL COUNSEL AND ADHERE TO IT THROUGHOUT THE YEAR. IF A CONFLICT OR FINANCIAL INTEREST ARISES AFTER THE ANNUAL DISCLOSURE PROCESS THE INTERESTED PERSON WILL CONSULT WITH THE COMPLIANCE OFFICE OR GENERAL COUNSEL AND UPDATE THE DISCLOSURE STATEMENT CONSISTENT WITH THE ADVICE OF THE GENERAL COUNSEL. A RECORD OF THE BOARD OR COMMITTEE MEETING WHERE PROPOSED TRANSACTIONS OR ARRANGEMENTS THAT ARE AFFECTED BY CONFLICT OF INTEREST AND THE MANAGEMENT OF SUCH ARE CONTAINED IN THE BOARD/COMMITTEE MINUTES. IF VIOLATIONS OF THE CONFLICT OF INTEREST POLICY/MANAGEMENT ARE REPORTED, THE GENERAL COUNSEL WILL LOOK INTO THE MATTER. CONFIRMED VIOLATIONS MAY INCLUDE REMOVAL FROM THE BOARD OR COMMITTEE OR OFFICER POSITION PURSUANT TO THE REMOVAL PROCEDURES STATED IN THE BYLAWS. BYLAWS INCLUDE THE PROVISIONS THAT INTERESTED PERSONS WHO RECEIVE COMPENSATION DIRECTLY OR INDIRECTLY FROM THE HOSPITAL SYSTEM MAY NOT VOTE IN SUCH MATTERS. A VOTING MEMBER OF ANY COMMITTEE WHOSE JURISDICTION INCLUDES MAKING CHOICES ON GOODS OR SERVICES FOR THE HOSPITAL SYSTEM OR WHAT AMOUNTS SHOULD BE PAID FOR GOODS OR SERVICES SHALL BE PROHIBITED FROM VOTING ON ANY SUCH MATTER AND MAY BE PROHIBITED FROM DISCUSSING THE MATTER. PERIODIC REVIEWS OF THE PROCESS ARE CONDUCTED. OUTSIDE EXPERTS MAY, BUT NEED NOT BE, USED TO EVALUATE POLICIES AND PROCESSES. FORM 990, PART VI, LINE 15A & 15B PROCESS USED TO DETERMINE COMPENSATION AN EXECUTIVE COMPENSATION CONSULTANT CONDUCTS DETAILED MARKET ANALYSIS FOR EXECUTIVE CASH COMPENSATION. THEY UTILIZE AVAILABLE PUBLISHED HEALTHCARE SURVEY SOURCES. EXECUTIVE POSITIONS ARE MATCHED TO APPROPRIATE SURVEY POSITIONS BASED ON JOB CONTENT, DUTIES AND SCOPE OF RESPONSIBILITY. SURVEY DATA IS MATCHED FROM ORGANIZATIONS OF SIMILAR SIZE AND SCOPE. RESULTS OF THE STUDY ARE SHARED WITH THE BOARD FOR APPROVAL. THE STUDY WAS LAST COMPLETED IN OCTOBER 2012. FORM 990, PART VI, LINE 19 AVAILABILITY OF GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS TO THE GENERAL PUBLIC DOCUMENTS ARE AVAILABLE FOR PUBLIC INSPECTION UPON REQUEST TO THE CORPORATE CONTROLLER AT: 8125 N. HAYDEN ROAD, SCOTTSDALE, AZ 85258 FORM 990, PART VII HOURS DEVOTED TO RELATED ORGANIZATIONS IN ADDITION TO THE HOURS DEVOTED TO SCOTTSDALE HEALTHCARE CORPORATION AS REPORTED IN PART VII, THE FOLLOWING OFFICERS DEVOTED HOURS TO RELATED ORGANIZATIONS SCOTTSDALE HEALTHCARE HOSPITAL (SHH), SCOTTSDALE HEALTHCARE REALTY CORPORATION (SHRC), SCOTTSDALE HEALTHCARE FOUNDATION (SHF) AND SCOTTSDALE CAPTIVE INSURANCE COMPANY (SCIC). THE BOARD MEMBERS EACH SERVE ON THE BOARDS OF AND DEVOTE TIME TO THESE ENTITIES. GARY E. BAKER DEVOTED 24 HOURS PER WEEK TO SHH, 2 HOURS PER WEEK TO SHRC AND 1 HOUR PER WEEK TO SCIC. JAMES F. BURKE DEVOTED 1 HOUR PER WEEK TO SCIC. ALAN B. KELLY DEVOTED 5 HOURS PER WEEK TO SCIC. JEAN KNOEDLER DEVOTED 24 HOURS PER WEEK TO SHH. TODD A. LAPORTE DEVOTED 5 HOURS PER WEEK TO SCIC. CAROL HENDERSON MCCUNE DEVOTED 1 HOUR PER WEEK TO SCIC. VIKKI L. NOYES DEVOTED 32 HOURS PER WEEK TO SHH. KIMBERLY A. POST DEVOTED 32 HOURS PER WEEK TO SHH AND 1 HOUR PER WEEK TO SCIC. PEGGY J. REILEY DEVOTED 24 HOURS PER WEEK TO SHH AND 1 HOUR PER WEEK TO SCIC. THOMAS J. SADVARY DEVOTED 1 HOUR PER WEEK TO SHF. MARK A. SLATER DEVOTED 40 HOURS PER WEEK TO SHH. DEAN C. THOMAS DEVOTED 40 HOURS PER WEEK TO SHH. KATHI L. ZARUBI DEVOTED 40 HOURS PER WEEK TO SHH. RICHARD C. SILVER DEVOTED 20 HOURS PER WEEK TO SHH. LOIS E. UNIAT DEVOTED DEVOTED 20 HOURS PER WEEK TO SHH. FORM 990, PART X, LINE 7 NOTES AND LOANS RECEIVABLE ALL OF THE NOTES AND LOANS RECEIVABLE REPORTED ON LINE 7 REPRESENT PHYSICIAN GUARANTEE AGREEMENTS THAT MUST BE PAID BACK IF THE PHYSICIANS DO NOT FULFILL THEIR CONTRACTS. PHYSICIANS ARE SENT A 1099 FOR THE FULL AMOUNT WHEN THEY ARE PAID. FORM 990, PART XI, LINE 5 EXPLANATION OF OTHER CHANGES IN NET ASSETS UNREALIZED INVESTMENT GAINS $29,292,193 EFFECT OF FAS 158 (11,116,224) CHANGE IN VALUE HEDGE RATE SWAP (4,406,892) BOOK/TAX DIFFERENCES (3,334,215) PRIOR PERIOD ADJUSTMENT 16,599,535 ------------ OTHER CHANGES IN NET ASSETS $27,034,397 SCOTTSDALE HEALTHCARE HOSPITALS 7400 E OSBORN RD SCOTTSDALE AZ 85251 860181654 HEALTHCARE AZ 501(C)(3) 3 SHC true SCOTTSDALE HEALTHCARE REALTY CORPORATION 7400 E OSBORN RD SCOTTSDALE AZ 85251 942735851 RENTAL AZ 501(C)(2) N/A SHC true SCOTTSDALE HEALTHCARE FOUNDATION 7400 E OSBORN RD SCOTTSDALE AZ 85251 742355411 FOUNDATION AZ 501(C)(3) 7 SHC true SCOTTSDALE MEMORIAL HEALTH SERVICES CO 7400 E OSBORN RD SCOTTSDALE AZ 85251 942735859 HEALTHCARE AZ 501(C)(3) 3 SHC true SCOTTSDALE CAPTIVE INSURANCE COMPANY 7400 E OSBORN RD SCOTTSDALE AZ 85251 203455823 CAPTIVE INS AZ 501(C)(3) 11 TYPE 1 SHC true SCOTTSDALE HEALTHCARE AUXILIARY 7400 E OSBORN RD 200 SCOTTSDALE AZ 85251 237264497 FUNDRAISING AZ 501(C)(3) 9 SHC true SCOTTSDALE HEALTHCARE ASC LLC 271450828 HEALTHCARE DE SHC RELATED 172992 7674239 false 0 false 0.90000 SCOTTSDALE SURG PARTNERS LLC 201808351 HEALTHCARE DE SHC ASC LLC BILTMORE SURGICAL PARTNERS LLC HEALTHCARE DE SHC ASC LLC MESA SURGICAL CENTER LLC HEALTHCARE DE SHC ASC LLC GLOBALREHAB-SCOTTSDALE LLC HEALTHCARE AZ SHH SCOTTSDALE HEALTH PARTNERS LLC HEALTHCARE AZ SHH SCOTTSDALE MSO INC (FKA SCOTTCARE INC) 7400 E OSBORN RD SCOTTSDALE AZ 85251 860512895 MSO, GROUP PURCH. 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