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          <AddressLine1>301 East Jackson Street</AddressLine1>
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      <Form990ScheduleHPartVI>
        <Explanation>1. Part I, Item 6a - Community Benefit report for McLeod Health (Sole Member of McLeod Medical Center - Dillon) is filed annually with South Carolina Hospital Association. Highlights are published in McLeod Magazine which is a publication that is distributed free to the public. Entire report is available to anyone upon request. Part II - The main example of a Community-Building activity performed by McLeod Medical Center - Dillon (MMC-D) in Fiscal Year 2012 was that there was a Disaster Coordinator that helped Dillon County for a few hours per week with Emergency Planning. He worked with the school systems and all public safety within the county to aid in emergency preparedness work. Also, the McLeod Health organization financially participates each year in the nursing programs at two local higher education schools, Francis Marion University and Florence-Darlington Technical College, to help maintain and expand their nursing programs. These two programs are the cornerstone for recruiting, retention and cultivation of exceptional nurses by the McLeod Health facilities including McLeod Medical Center - Dillon, as well as other health care providers in the region. Part III, Line 4 - Net patient service revenues are reported at the estimated net realizable amounts received, or to be received, from patients, third-party payors, and others for the specific services and supplies rendered, including estimated retroactive adjustments under reimbursement agreements with third-party payors. For the amounts reported in Lines 2 and 3, we used the IRS method to calculate the Ratio of Patient Care Cost to Charges, as shown on page 8 of the Instructions for Schedule H (Worksheet 2). The calculated ratio was then applied to the gross charges written off to bad debt (net of recoveries). Part III, Line 9b - MMC-D is an organization in the McLeod Health system. McLeod Health's charity policy outlines the criteria used to determine patients who qualify for charity. When patients have furnished the required information, it is reviewed and a determination is made. If approved for charity care, their account balances are adjusted based on the percentage they qualify for using a charity adjustment code. If all required information is not furnished, the patient is notified that their charity application was not approved due to failure to provide the necessary information. Following that notification, the account generally transfers to bad debt for further collection action. 2. McLeod Medical Center- Dillon has a 20-member Community Advisory Board consisting of physicians and influential leaders in the community. It meets quarterly to assess the health care needs of the community. Additionally, McLeod Medical Center-Dillon along with the rest of the McLeod Health system is actively involved in agencies like United Way, American Heart Association, American Cancer Society, Children's Miracle Network to further stay on the pulse of the health needs of the community.3. Uninsured patients are screened at the time of registration for their ability to pay for their health care services. If the patient has no ability to pay and is deemed ineligible for governmental programs (Medicare, Medicaid, etc.) then they are informed of the Hospital Charity program. They are provided with an application and a listing of the appropriate documents necessary to establish eligibility for the Hospital Charity program.4. McLeod Medical Center- Dillon (MMC-D),together with its related organizations McLeod Regional Medical Center of the Pee Dee, Inc. and McLeod Physician Associates II, considers its primary service area (PSA) as the South Carolina counties of Florence, Darlington, Chesterfield, Dillon, Horry, Marion, and Marlboro, and its secondary service area (SSA) as the South Carolina counties of Clarendon, Georgetown, Lee, Sumter, and Williamsburg. These twelve counties make up the northeastern corner of South Carolina. MMC-D has the great majority of its discharges from the County of Dillon with those patients comprising approximately 76% of all MMC-D discharges in FY 12.As for some demographics of the PSA and the main County served by MMC-D, the total population of Dillon County in 2010 was 32,062 and the total population of the PSA that same year was 346,357. The median age in Dillon county was 36.7.5. With a strong history in the Dillon community since 1943, McLeod Dillon has continued to grow and expand to serve residents of Dillon (SC) and Robeson (NC) counties with excellence in patient care. The Joint Commission accredited medical center employs 350 and has the strength of 100 physicians on its medical staff. McLeod Dillon offers general and orthopedic surgery, women's services, emergency services, intensive care, rehabilitative services and cardiac rehabilitation. Investments in state of the art technology to improve patient care have included Open MRI, digital mammography, 4D ultrasounds, vascular studies, CT Scans and Nuclear Studies.McLeod Dillon is a 79-bed community hospital in Dillon, SC, and serves as the primary healthcare provider in one of the more economically-challenged counties in South Carolina. McLeod Dillon primarily serves Dillon County which has a population of approximately 32,062. Dillon County is in the northeastern corner of South Carolina and is a county assigned to the Pee Dee Region of the state. The county's per capita income of $15,792 has lagged both the U.S. and South Carolina averages, and it has 25.2% of its population living below the poverty level, much higher than the national average of 9.9%. The county has an unemployment rate of 8.9% and 34.9% of the population has not received a high school diploma. In Dillon County, the number of uninsured has reached 18%. 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 &amp; 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.</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Explanation>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 person's 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.</Explanation>
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        <Explanation>6. McLeod Health is the Sole Member of McLeod Medical Center-Dillon and other related organizations which comprise the regional McLeod Health system. Descriptions of each entity follows:McLeod Regional Medical Center of the Pee Dee, Inc.: McLeod Regional Medical Center of the Pee Dee, Inc. (MRMC) is the largest entity in the McLeod Health system and owns and operates the following organizations, which operate as divisions of MRMC: - McLeod Regional Medical Center, the System's main hospital campus located in Florence, South Carolina, which includes a 453-bed tertiary care facility and a 40-bed neonatal intensive care unit; - McLeod Medical Center-Darlington, a 49-bed community hospital located in Darlington, South Carolina; - McLeod Behavioral Health, a 23-bed psychiatric facility located on the campus of McLeod Medical Center-Darlington; - McLeod Home Care, which consists of McLeod Home Health, a five-county home healthcare organization with offices in Florence, South Carolina, and McLeod Hospice House, a 12-bed inpatient hospice facility located in Florence, South Carolina; - McLeod Health &amp; Fitness Center, a comprehensive health and fitness center located in Florence, South Carolina; - McLeod Ambulatory Surgery Center, a free-standing outpatient service center located on the campus of McLeod Regional Medical Center. Additionally, MRMC is the majority owner in a joint venture, McLeod Medical Partners, LLC, which owns and operates three medical office buildings on the campus.McLeod Medical Center-Dillon: McLeod Medical Center-Dillon is a South Carolina nonprofit corporation and an organization described under Sections 501(c)(3) and 509(a)(1) of the Code. McLeod Medical Center-Dillon owns and operates a 79-bed community hospital located in the City of Dillon in Dillon County, South Carolina. Dillon County borders Florence County to the northeast.McLeod Loris Seacoast Hospital: McLeod Loris Seacoast Hospital (MLSH) is the newest entity in McLeod Health, joining in January 2012, and consists of the following divisions:-McLeod Loris, a 105-bed community hospital located in Loris South Carolina;-McLeod Seacoast, a 50-bed community hospital located in Little River, South Carolina;-Loris Extended Care Center, a long-term care facility in Loris, South CarolinaLoris Seacoast Healthcare Foundation: Loris Seacoast Healthcare Foundation solicits funds for facilities, research, and general support of MLSH.McLeod Physician Associates II (MPA II): MPA II is a South Carolina nonprofit corporation and an organization described under Sections 501(c)(3) and 509(a)(2) of the Code that operates a multi-specialty physician group practice of over 100 employed physicians providing primary and specialty care services through over 50 offices in northeastern South Carolina. MPA II supports the mission of McLeod Health, providing comprehensive medical and surgical services, including a wide range of physician specialties, to McLeod's patients from a 12-county service area.McLeod Health Foundation: The Foundation was organized in 1986 as a South Carolina nonprofit corporation and is an organization described under Sections 501(c)(3) and 509(a)(3) of the Code. The Foundation is principally engaged in fundraising activities for the System. In the past five years, the Foundation has received approximately $22 million for the benefit of the System, including approximately $2 million which has been used for Hospice House, $2.2 million for Children's Hospital Block Grants and $740,000 for the Cancer Clinic. According to its bylaws, the Foundation's governing body consists of not less than 15 and not more than 30 members, each of which is appointed by the Board of Trustees of McLeod Health (the "McLeod Health Board" or the "Board"). Currently, there are 24 members of the Foundation's governing body. At least one member of the Foundation's governing body must be a member of the McLeod Health Board.McLeod Medical Partners, LLC: McLeod Medical Partners, LLC is a for-profit entity that owns and operates three medical office buildings on the McLeod Regional Medical Center campus. The Borrower owns a 62% share in the equity of this company. McLeod Physician Associates, Inc.: McLeod Physician Associates, Inc. is a South Carolina for-profit corporation that formerly operated a multi-specialty physician group practice, but is now inactive. Effective October 1, 2006, substantially all assets and operations of McLeod Physician Associates, Inc. were transferred to MPA II.7. McLeod Health files a community benefit report annually in the state of South Carolina to the SC Hospital Association.</Explanation>
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        <NamePerson>Robert L Colones</NamePerson>
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      <GeneralExplanation>
        <ReturnReference>Form 990, Part VI, Section A, line 6</ReturnReference>
        <Explanation>McLeod Medical Center-Dillon has a sole member which is McLeod Health.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>Form 990, Part VI, Section A, line 7a</ReturnReference>
        <Explanation>The Board of McLeod Health (sole member) has final authority as needed on the makeup and decision-making of McLeod Medical Center-Dillon's Board.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>Form 990, Part VI, Section A, line 7b</ReturnReference>
        <Explanation>The Board of McLeod Health (sole member) has final authority as needed on the makeup and decision-making of McLeod Medical Center-Dillon's Board.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>Form 990, Part VI, Section B, line 11</ReturnReference>
        <Explanation>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 (Sole Member of McLeod Medical Center - Dillon) 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 Sole Member's Board before the filing date of August 15, 2013.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>Form 990, Part VI, Section B, line 12c</ReturnReference>
        <Explanation>McLeod Medical Center - Dillon 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. Yes, each Board Member signs a Conflict of Interest statement each year.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>Form 990, Part VI, Section B, line 15a</ReturnReference>
        <Explanation>In determining compensation of McLeod Medical Center - Dillon's top management official, the process included a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision. The compensation committee reviewed and approved in the compensation. In the review of compensation, the top management official was compared to other similarly situated organizations and positions. During the review and approval of the compensation, documentation of the decision was recorded in the Board minutes. Individuals were not present when their compensation was determined.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>Form 990, Part VI, Section C, line 19</ReturnReference>
        <Explanation>Governing documents, conflict of interest policy, and financial statements are available to the public upon request.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Avg hours devoted to related org(s) when related comp is reported:</Identifier>
        <ReturnReference>Form 990, Part VII:</ReturnReference>
        <Explanation>Robert L. Colones' compensation is paid by McLeod Health, a related organization of McLeod Medical Center - Dillon. The compensation he receives is for his role as CEO of McLeod Health and not for his role as a Board Member, an uncompensated role, of McLeod Medical Center Dillon. Hours worked are not tracked on an entity by entity basis. Therefore, all hours reported on Form 990, Part VII, Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors represent aggregate hours worked per week. S. Fulton Ervin, III's compensation is paid by McLeod Health, a related organization of McLeod Medical Center - Dillon. The compensation he receives is for his role as CFO at McLeod Health and not for his role as a Board Member, an uncompensated role, of McLeod Medical Center - Dillon. Hours worked are not tracked on an entity by entity basis. Therefore, all hours reported on Form 990, Part VII, Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors represent aggregate hours worked per week. Deborah D. Locklair's compensation is paid by McLeod Health, a related organization of McLeod Medical Center - Dillon. The compensation she receives is for her role as Vice President at McLeod Health and not for her role as a Board Member, an uncompensated role, of McLeod Medical Center - Dillon. Therefore, all hours reported on Form 990, VII, Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors represent aggregate hours worked per week. Michael J. Sutton, MD's compensation is paid by McLeod Physician Associates II, a related organization of McLeod Medical Center - Dillon. The compensation he receives is for his role as a Surgeon in McLeod Physician Associates II and not for his role as a Board Member, an uncompensated role, of McLeod Medical Center- Dillon. Hours worked are not tracked on an entity by entity basis. Therefore, all hours reported on Form 990, Part VII, Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors represent aggregate hours worked per week.</Explanation>
      </GeneralExplanation>
    </IRS990ScheduleO>
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        <PrimaryActivities>To raise money for McLeod entities</PrimaryActivities>
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        <ExemptCodeSection>section 501(c)(3)</ExemptCodeSection>
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        <PrimaryActivity>To raise money for McLeod entities</PrimaryActivity>
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          <BusinessNameLine1>Mcleod Health Foundation</BusinessNameLine1>
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        <AmountInvolved>142082</AmountInvolved>
        <MethodOfAmtDetermination>Actual Cash Transferred</MethodOfAmtDetermination>
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      <TransactionsRelatedOrgsTable>
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        <MethodOfAmtDetermination>Actual Cost of Services Provided</MethodOfAmtDetermination>
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          <BusinessNameLine1>Mcleod Physician Associates II</BusinessNameLine1>
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        <AmountInvolved>1154338</AmountInvolved>
        <MethodOfAmtDetermination>Actual Cost of Services Provided</MethodOfAmtDetermination>
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</Return>