2012-08-14T08:44:58-05:00 2011-09-30 DELOITTE TAX LLP 2 JERICHO PLAZA JERICHO NY 11753 990 2010-10-01 222592333 SOUTHCOAST HOSPITALS GROUP INC SOUT 5089615000 C/O ACCOUNTING DEPARTMENT 101 PAGE STREET NEW BEDFORD MA 02740 WILLIAM GRIGG 5089615000 2012-08-14 1 5169187000 2010 2016-02-24 21:20:13Z KEITH HOVAN C/O ACCOUNTING DEPARTMENT 101 PAGE STREET NEW BEDFORD MA 02740 861849313 0 X WWW.SOUTHCOAST.ORG X 1986 MA SEE SCHEDULE O 16 15 6284 550 34213499 -52707 3753714 12880463 632859308 653516593 11802775 16074682 -651198 -349241 647764599 682122497 0 0 0 0 376320971 386565663 0 0 672816 243046952 249429908 619367923 635995571 28396676 46126926 692664229 751714723 314587615 340475318 378076614 411239405 X SEE SCHEDULE O 0 1 610000554 619303094 SOUTHCOAST PROVIDES INPATIENT AND OUTPATIENT HEALTHCARE SERVICES TO IMPROVE THE HEALTH AND WELLNESS OF INDIVIDUALS IN SOUTHCOAST'S COMMUNITIES. SOUTHCOAST RECORDED 210,955 INPATIENT DAYS, PERFORMED 21,530 SURGERIES, 11,113 ENDOSCOPIES, PROVIDED 2,916,259 LABORATORY TESTS, PERFORMED 389,757 RADIOLOGICAL PROCEDURES, 170,036 PHYSICAL MEDICINE VISITS, 649 PCI CORONARY INTERVENTIONS, 2,241 DIAGNOSTIC CATHERIZATIONS, 294 OPEN HEART SURGERIES, 167 ELECTROPHYSIOLOGY CASES, 578 CORONARY DEVICE IMPLANTS, 3,162 NEWBORN ADMISSIONS, MADE 47,959 HOME HEALTH CARE VISITS, PERFORMED 7,011 RADIATION ONCOLOGY SERVICES AND 9,267 CHEMOTHERAPY TREATMENTS AND CARED FOR 181,205 EMERGENCY ROOM PATIENTS 24 HOURS A DAY 7 DAYS A WEEK REGARDLESS OF ABILITY TO PAY FOR SUCH SERVICES. 610000554 1 1 0 1 0 0 0 0 0 1 1 0 0 0 1 0 0 1 0 0 0 0 0 0 1 0 1 1 0 0 1 1 0 0 0 0 0 0 0 1 0 0 1 0 0 0 0 1 0 0 0 0 1 478 4 1 6284 1 1 1 0 0 0 1 1 1 1 0 0 0 0 X 16 15 0 0 1 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 MA X CAROLYN ALLEN 5089615000 101 PAGE STREET NEW BEDFORD MA 02740 KEITH HOVAN 40.00 X X 847750 0 31355 MWAJID BAIG MD 1.00 X 0 0 0 DOUGLAS BEATON 1.00 X 0 0 0 RWILLIAM BLASDALE 1.00 X 0 0 0 PETER BULLARD ESQ 1.00 X 0 0 0 EILEEN FARLEY 1.00 X 0 0 0 ELIZABETH O'NEILL LASTAITI 1.00 X X 0 0 0 JEAN MACCORMACK 1.00 X 0 0 0 ELIZABETH KUNZ ESQ 1.00 X X 0 0 0 PAMELA MCNAMARA 1.00 X 0 0 0 STEVEN MENDES MD 1.00 X 6125 0 0 CARL RIBEIRO 1.00 X X 0 0 0 GILBERT SHAPIRO MD 1.00 X 0 0 0 ROBERT TRIPP JR DO 1.00 X 0 0 0 MAUREEN SYLVIA ARMSTRONG 1.00 X 0 0 0 CARL TABER 1.00 X 0 0 0 WILLIAM GRIGG 40.00 X 493203 0 29462 JOHN DAY 40.00 X 1130215 0 30393 LINDA BODENMANN 40.00 X 503827 0 32305 DAVID DEJESUS JR 40.00 X 290289 0 15726 GEORGE BEAUREGARD 40.00 X 360000 0 16655 BARBARA MULVILLE 40.00 X 325663 0 20483 CHRISTOPHER BALDWIN 40.00 X 307806 0 31326 RONALD LAFLEUR 40.00 X 292536 0 21402 CAROL CONLEY 40.00 X 275127 0 10546 RONALD GOODSPEED MD 0.00 X 215121 0 0 5047662 0 239653 428 1 1 0 GILBANE BUILDING COMPANY 155 FEDERAL ST SUITE 400 BOSTON MA 02110 CONSTRUCTION CONTRACTOR 14859890 SLH EMERGENCY ASSOCIATES C/O EDELSTEIN CO LLP PO BOX 7 N DARTMOUTH MA 02747 EMERGENCY ROOM PHYSICIAN SERVICES 10940804 FIRST PHYSICIANS CORP C/O 363 HIGHLAND AVENUE FALL RIVER MA 02720 EMERGENCY ROOM PHYSICIAN SERVICES 9128281 TOBEY EMERGENCY ASSOCIATES PC PO BOX 53 WAREHAM MA 02571 EMERGENCY ROOM PHYSICIAN SERVICES 4150453 ANESTHESIA ASSOCIATES INC 460 ENTERPRISE ST SAN MARCOS CA 98069 ANESTHESIA SERVICES 3680399 81 455614 12424849 1607294 12880463 PATIENT SERVICE REVENU 621500 642489596 609333800 33155796 HEALTH CARE SERVICE RE 446110 10206256 9969294 236962 PARTNERSHIP INCOME 525900 348492 348492 OUTPATIENT CARE CENTER 621400 265307 265307 SATELLITE LOCATION CAF 722210 206942 206942 653516593 5448117 5448117 787618 1300920 -513302 -513302 -513302 187793761 1127887 177289495 1005588 10504266 122299 10626565 10626565 65558 455614 130813 -65255 -65255 GIFT SHOP INCOME 900099 191563 191563 SALES OF SCRAP 900099 37753 37753 229316 682122497 619303094 34213499 15725441 3682406 1844266 1838140 215121 107561 107560 297061531 284943824 11675474 442233 16999291 16198345 775975 24971 47430784 44876496 2488439 65849 21176530 20178768 966655 31107 2046848 236882 1807100 2866 408009 408009 338313 338313 808795 808795 69396301 66497546 2863384 35371 2985726 2985726 15428198 14817186 571949 39063 10164583 10123554 41029 496448 496448 1341931 1201671 126080 14180 5729771 5729771 35014660 35014660 MED SUPPLIES/LINENS 63290213 63209037 74503 6673 PHARMACEUTICALS 23873864 23873864 0 0 FOOD SERVICE 6378486 6368077 0 10409 PARTS AND REPAIRS 3320108 3318691 1352 65 0 0 0 0 8407654 7639868 767757 29 635995571 610000554 25322201 672816 0 0 7883059 28199635 1888284 6832921 62884611 60186063 18731191 16675544 591216795 351276005 216296482 239940790 350390293 354639258 29565184 34603169 5025125 10637343 692664229 751714723 98796779 108520947 162898704 158757419 8548234 27447049 44343898 45749903 314587615 340475318 X 310369970 338805108 28139973 30560588 39566671 41873709 378076614 411239405 692664229 751714723 X 46126926 -12964135 X 0 1 1 X 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 1 338313 0 0 338313 0 PART IV, SUPPLEMENTAL INFORMATION: PART II-B, LINE 1G: DURING FISCAL YEAR 2011 HIRED CONSULTANTS MONITORED AND ADVOCATED FOR SOUTHCOAST CONCERNS BEFORE THE SOUTHEASTERN MASSACHUSETTS STATE LEGISLATIVE DELEGATION THROUGHOUT THE BUDGET PROCESS, BEGINNING WITH HOUSE 1 (GOVERNOR'S BUDGET RECOMMENDATION) THROUGH HB3400 - THE HOUSE'S RECOMMENDATION & SB3 - THE SENATE'S BUDGET, TO THE CONFERENCED BUDGET, HB3535. HIRED CONSULTANTS ALSO MONITORED AND ADVOCATED SOUTHCOAST CONCERNS TO THIS SAME LEGISLATIVE DELEGATION REGARDING THE GOVERNOR'S HEALTH CARE PAYMENT REFORM LEGISLATION, HB1849, AN ACT IMPROVING THE QUALITY OF HEALTH CARE AND CONTROLLING COST BY REFORMING THE HEALTH SYSTEMS AND PAYMENTS AND THE MAINTENANCE AND SUPPORT OF MEDICAID RATES OF PAYMENT THROUGHOUT THE BUDGET PROCESS, INCLUDING THE GOVERNOR'S HOUSE 1 BUDGET, THE HOUSE'S BUDGET PROPOSAL - HB3400, THE SENATE'S PROPOSAL - SB3, AND THE FINAL BUDGET, HB3535. HIRED CONSULTANTS SOUGHT INFORMATION AND ADVICE FROM THE SOUTHEASTERN MASSACHUSETTS DELEGATION RELATIVE TO PURSUING REMAINING FUNDING FROM THE JUNE 2010 1115 MEDICAID WAIVER EXTENSION AGREEMENT FOR GROUP B HOSPITALS. 61852448 2307038 112603 2288009 68504 61915576 60230362 171211 4211863 2680564 80424 61852448 63772624 83724 -984990 2573502 67494 60230362 1.00000 0 0 9946269 9946269 299341462 163741090 135600372 2151799 999408 1152391 274572897 183674746 90898151 5204368 2860761 2343607 239940790 NON PENSION POST RETIREMENT BENEFIT 11510950 LONG TERM INSURANCE RESERVES 14366228 LONG TERM GENERAL RESERVE 10728360 DEFERRED COMPENSATION 457B PLAN 1361656 SWAP AGREEMENT LIABILITY 3586108 ASSET RETIREMENT OBLIGATION(FIN 47) 3050878 OTHER LONG TERM LIABILITIES 1145723 45749903 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: SHG'S ENDOWMENT FUNDS ARE INTENDED TO PROVIDE A SOURCE OF INCOME TO SUPPORT SHG'S TAX EXEMPT PURPOSE OF PROVIDING QUALITY HEALTH CARE SERVICES TO PEOPLE IN SHG'S SERVICE AREA. CENTRAL AMERICA/CARRIBEAN 0 6 PROGRAM SERVICES CAPTIVE INSURANCE 1123930 0 6 0 0 0 6 1123930 0 1123930 0 0 0 0 0 0 SC GOLF TOURNAMENT 346518 300003 46515 32029 32676 23940 3817 TH GOLF TOURNAMENT 119992 105499 14493 17484 10300 469 3 54662 50112 4550 6591 3507 521172 455614 65558 56104 32676 37747 4286 130813 -65255 1 1 X 1 X 1 X 1 1 0 1 1 17781687 11298275 6483412 0.01020 106998528 97220435 9778093 0.01540 124780215 108518710 16261505 0.02560 251506 251506 0.00040 15 89 465817 465817 0.00070 10933020 9808007 1125013 0.00180 188536 188536 0.00030 15 89 11838879 9808007 2030872 0.00320 15 89 136619094 118326717 18292377 0.02880 2 3 700 66293 66293 0.00010 8 48000 48000 0.00010 13 700 114293 114293 0.00020 1 6300039 273591095 302472180 -28881085 X 1 1 3 1 SHG INC DBA CHARLTON MEMORIAL HOSPITAL

363 HIGHLAND AVE FALL RIVER MA 02720

X X X ACUTE CARE HOSPITAL 2 SHG INC DBA ST LUKE'S HOSPITAL

101 PAGE ST NEW BEDFORD MA 02740

X X X ACUTE CARE HOSPITAL 3 SHG INC DBA TOBEY HOSPITAL

43 HIGH ST WAREHAM MA 02571

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