2012-08-08T17:22:50-05:00 2011-09-30 DIXON HUGHES GOODMAN LLP 500 RIDGEFIELD COURT ASHEVILLE NC 28806 990 2010-10-01 570359174 ANMED HEALTH ANME 8645121000 800 NORTH FANT STREET ANDERSON SC 29621 JERRY A PARRISH 8645121000 2012-08-08 1 AMY BIBBY 8282542254 2010 2016-02-24 21:20:13Z JOHN A MILLER JR 800 NORTH FANT STREET ANDERSON SC 29621 494202119 0 X WWW.ANMEDHEALTH.ORG X 1906 SC OPERATION OF A HEALTHCARE SYSTEM INCLUDING A WIDE RANGE OF MEDICAL SERVICES 16 12 3655 258 4311687 1522245 1465793 1092721 450524762 473757483 11676693 12634581 6675776 6717334 470343024 494202119 55000 314929 0 0 181145447 194043732 0 0 0 275125478 290082894 456325925 484441555 14017099 9760564 663280486 645626066 356984628 384738175 306295858 260887891 X THE MISSION OF ANMED HEALTH IS TO PASSIONATELY BLEND THE ART OF CARING WITH THE SCIENCE OF MEDICINE TO OPTIMIZE THE HEALTH OF OUR PATIENTS, STAFF AND COMMUNITY. 0 0 456140655 350679 474002207 ANMED HEALTH IS A HEALTHCARE SYSTEM PROVIDING A FULL RANGE OF ACUTE CARE SERVICES FOR MEDICAL, SURGICAL, PEDIATRIC, OBSTETRIC, PSYCHIATRIC, SUBSTANCE ABUSE AND REHABILITATION PATIENTS, AS WELL AS SPECIALIZED CARE IN ITS INTENSIVE CARE AND CORONARY CARE UNITS. TO SUPPORT THESE INPATIENT SERVICES, ANMED HEALTH OFFERS A NORMAL COMPLEMENT OF DIAGNOSTIC AND ANCILLARY SERVICES. TWO SEPARATELY LICENSED FACILITIES ARE OPERATED BY ANMED HEALTH: (1) ANMED HEALTH MEDICAL CENTER IS A 461-BED FACILITY THAT OFFERS THE LATEST IN MEDICAL AND SURGICAL SERVICES. A MEDICAL STAFF OF OVER 400 PHYSICIANS PROVIDES HIGH QUALITY CARE TO THE PATIENTS AT THE MEDICAL CENTER. OPEN HEART SURGERY, VASCULAR SURGERY, GENERAL SURGERY, EMERGENCY/ TRAUMA MEDICINE, A NEUROLOGICAL/STROKE CENTER, THE LATEST IN DIAGNOSTIC MRI, CT AND LABORATORY MEDICINE ARE AVAILABLE.(2) ANMED HEALTH WOMEN'S AND CHILDREN'S HOSPITAL IS A 72-BED ALL-PRIVATE ROOM FACILITY OFFERING INPATIENT CARE FOR LABOR/DELIVERY, WOMEN'S ELECTIVE SURGERY AND CHILDREN. THIS HOSPITAL INCLUDES DEDICATED UNITS FOR LABOR/DELIVERY, MOTHER/BABY, WOMEN'S ELECTIVE SURGERY AND PEDIATRICS. ON THE FIRST FLOOR, PHYSICIANS' OFFICES, A LEARNING CENTER, CAFE, COMMUNITY MEETING ROOMS AND RETAIL SHOPS MAKE VISITORS FEEL WELCOME WITH A WEALTH OF RESOURCES.ADDITIONALLY, ANMED HEALTH OFFERS OUTPATIENT SERVICES AT D.K. OGLESBY CENTER AT THE ANMED HEALTH NORTH CAMPUS AND HAS SEVERAL CLINICS LOCATED IN ANDERSON, IVA, CLEMSON, HONEA PATH, FAIRPLAY, PENDLETON, AND WILLIAMSTON, SOUTH CAROLINA, AND IN HARTWELL, GEORGIA.THE SYSTEM PROVIDED 92,247 INPATIENT DAYS AND 4,884 NURSERY DAYS OF SERVICE FOR THE YEAR.THE SYSTEM MAINTAINS RECORDS TO IDENTIFY AND MONITOR THE LEVEL OF UNCOMPENSATED CARE, INCLUDING CHARITY CARE, IT PROVIDES. THE COST OF CHARITY CARE PROVIDED WAS APPROXIMATELY $10,796,500. 456140655 1 1 0 1 0 0 0 0 0 0 1 0 1 1 1 1 0 1 0 0 0 0 0 0 0 0 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 1 1 0 0 0 1 337 0 1 3655 1 1 1 0 0 0 0 0 0 0 0 0 X 16 12 0 1 0 0 1 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 SC X X JERRY A PARRISH 8645121000 800 N FANT STREET ANDERSON SC 29621 JT BOSEMAN 1.00 X X 0 0 0 DR CHRIS PRZIREMBEL 1.00 X X 0 0 0 ANN D HERBERT 1.00 X X 0 0 0 WILLIAM E KIBLER JR 1.00 X 0 0 0 CHARLES C THORTON JR 1.00 X 0 0 0 ROBERT RAINEY 1.00 X 0 0 0 JOHN M GEER JR 1.00 X 0 0 0 EVERETTE NEWMAN 1.00 X 0 0 0 DR JERRY POWELL 1.00 X 0 0 0 MARY ANNE D LAKE 1.00 X 0 0 0 DR MICHAEL KUNKEL 1.00 X 18903 0 0 DR JOHN R HUNT 1.00 X 0 0 0 DR STEPHEN HAND 1.00 X 81262 0 0 FRED L FOSTER 1.00 X 0 0 0 JANE W MUDD 1.00 X 0 0 0 JOHN A MILLER JR 50.00 X X 720036 0 634166 WILLIAM T MANSON III 50.00 X 450458 0 185842 JERRY A PARRISH 50.00 X 387716 0 87797 DR MICHAEL L TILLIRSON 50.00 X 360616 0 84168 JAMES T DOUGLAS III 50.00 X 245276 0 27771 TINA JURY 50.00 X 265023 0 57855 JOHN D GLYMPH 50.00 X 266290 0 27609 GARRICK CHIDESTER 50.00 X 264914 0 75136 MICHAEL CUNNINGHAM 50.00 X 108157 0 37353 DR HENRY B HEARN 50.00 X 517751 0 24459 DR MARK P LACY 50.00 X 458608 0 24419 DR DANIELLE W SHELLEY 50.00 X 423038 0 24858 DR TIMOTHY L DUNIHO 50.00 X 441502 0 21612 DR MANDY MITCHELL 50.00 X 424887 0 13350 5326280 0 1289042 178 0 1 1 ANDERSON EMERGENCY ASSOCIATES 800 N FANT STREET ANDERSON SC 29621 ER PHYSICIANS 8689633 ADVANCED ICU CARE 999 EXECUTIVE PARKWAY STE 210 ST LOUIS MO 63141 INTENSIVISTS 1130780 HOSPITAL MEDICINE CONSULTANTS 819 N FANT STREET ANDERSON SC 29621 HOSPITALISTS 1077743 GHS PARTNERS IN HEALTHCARE 701 GROVE RD GREENVILLE SC 29605 MEDICAL SERVICES 1042349 PIEDMONT PATHOLOGY 404 E CALHOUN ST ANDERSON SC 29621 PATHOLOGISTS 995186 49 15000 1077721 1092721 NET PATIENT SERVICE 621400 472512437 468202804 4309633 ANCILLARY SERVICES 900099 773749 747770 25979 PLASMA RECOVERY 900099 471297 471297 473757483 6876121 6876121 2884224 2884224 2884224 2884224 5511802 246658 5511802 246658 5758460 5758460 CAFETERIA & VENDING 722210 2272771 2272771 MISCELLANEOUS REVENUE 900099 1287582 1287582 PURCHASE DISCOUNTS 900099 272757 270703 2054 3833110 494202119 469692574 4311687 19105137 296929 296929 18000 18000 3882443 3105954 776489 150484872 132772269 17712603 4090850 3608978 481872 24375149 21503935 2871214 11210418 9889913 1320505 690000 690000 275000 275000 1734881 585947 1148934 53428468 53428468 1494663 167850 1326813 8625499 8162059 463440 6546190 6546190 1049635 673603 376032 10342555 10342555 38075365 38075365 3656864 3656864 BAD DEBT EXPENSE 96623806 96623806 MEDICAL SUPPLIES 66078564 65899306 179258 MISCELLANEOUS EXPENSES 1286726 607986 678740 ENVIRONMENTAL CONTROL 174678 174678 484441555 456140655 28300900 0 22508471 36385475 83231575 67615664 2906410 3030890 6271118 7060230 682970376 405877487 288088915 277092889 235885430 232208940 3414239 2220154 20974328 20011824 663280486 645626066 40082108 43130648 263165395 258105897 53737125 83501630 356984628 384738175 X 304272742 258677995 2023116 2209896 306295858 260887891 663280486 645626066 X 9760564 -55168531 X X 0 1 1 X 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 20600 20600 0 EXPLANATION OF OTHER LOBBYING ACTIVITIES: PART II-B, LINE 1I: THE ORGANIZATION IS A MEMBER OF THE AMERICAN HOSPITAL ASSOCIATION (AHA) AND THE SOUTH CAROLINA HOSPITAL ASSOCIATION (SCHA). EACH YEAR, A PORTION OF THE DUES PAID TO THESE ORGANIZATIONS IS ALLOCATED TOWARDS LOBBYING EFFORTS ON BEHALF OF THEIR MEMBERSHIP BODIES. FOR FY 2011, AMOUNTS OF MEMBERSHIP DUES ALLOCATED TO THESE EXPENDITURES WERE APPROXIMATELY $ 10,000 FOR AHA AND $ 10,600 FOR SCHA. 19180557 19180557 287834504 140118863 147715641 3909252 3486364 422888 359509165 262272260 97236905 12536898 12536898 277092889 INVESTMENT IN CLEMSON HEALTH CENTER 1004779 F INVESTMENT IN UPSTATE LINEN SERVICES, LLC 913227 F INVESTMENT IN PREMIER 293983 F INVESTMENT IN ANDERSON AREA P.H.O. 8165 F 2220154 CASH SURRENDER VALUE OF LIFE INSURANCE 6567460 UNAMORTIZED BOND ISSUE COSTS 5889664 ZERO COUPON SWAP EARNINGS RECEIVABLE 7237969 DUE FROM RELATED ENTITIES 316731 20011824 ACCRUED PENSION LIABILITY 70454350 ESTIMATED THIRD-PARTY SETTLEMENTS 1885658 DUE TO RELATED ENTITIES 65350 RABBI TRUST LIABILITY 331802 INTEREST RATE SWAP ALLOWANCE 10764470 83501630 494202119 484441555 9760564 -13862214 -41306317 -55168531 -45407967 437301199 -13862214 -41889772 -55751986 493053185 1148934 1148934 494202119 482980919 -14773 -14773 482995692 1148934 296929 1445863 484441555 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE HOSPITAL SYSTEM IS EXEMPT FROM INCOME TAX UNDER SECTION 501(A) AS AN ORGANIZATION DESCRIBED IN SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE; ACCORDINGLY, THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS DO NOT REFLECT A PROVISION OR LIABILITY FOR FEDERAL OR STATE INCOME TAXES. THE MEDICAL CENTER HAS DETERMINED THAT IT DOES NOT HAVE ANY MATERIAL UNRECOGNIZED TAX BENEFITS OR OBLIGATIONS AS OF SEPTEMBER 30, 2011. FISCAL YEARS ENDING ON OR AFTER SEPTEMBER 30, 2008 REMAIN SUBJECT TO EXAMINATION BY FEDERAL AND STATE TAX AUTHORITIES. PART XI, LINE 8 - OTHER ADJUSTMENTS: CHANGE IN UNFUNDED PENSION COSTS -38,711,666. CHANGE IN FAIR VALUE OF INTEREST RATE SWAP CONTRACT -2,590,441. TRANSFERS TO RELATED ORGANIZATIONS -20,608. INCOME OF CONSOLIDATED ENTITY, NET OF MINORITY SHARE 16,398. PART XII, LINE 2D - OTHER ADJUSTMENTS: TRANSFERS FROM RELATED ORGANIZATIONS -20,608. CHANGE IN FAIR VALUE OF INTEREST RATE SWAP CONTRACT -2,590,441. CHANGE IN UNFUNDED PENSION COSTS -38,711,666. DISTRIBUTION TO NONCONTROLLING INTEREST IN CONSOLIDATED ENTITY -275,111. REVENUES OF CONSOLIDATED ENTITY 4,983. NON-OPERATING CASH GRANTS -296,929. PART XIII, LINE 2D - OTHER ADJUSTMENTS: EXPENSES OF CONSOLIDATED ENTITY -14,773. PART XIII, LINE 4B - OTHER ADJUSTMENTS: NON-OPERATING CASH GRANTS 296,929. CENTRAL AMERICA AND THE CARIBBEAN 0 0 INVESTMENTS 16499975 0 0 0 0 0 0 16499975 0 16499975 0 0 1 0 0 0 OTHER INFORMATION SCHEDULE F, PART V THE ORGANIZATION'S OWNERSHIP IN A FOREIGN CORPORATION WAS UNDER THE THRESHOLDS FOR FILING THE FORM 5471 FOR THE TAX YEAR. 1 1 X 1 X 1 X 1 1 1 0 1 1 10796522 10796522 0.02780 58076111 61128081 -3051970 0.00000 68872633 61128081 7744552 0.02780 317541 317541 0.00080 9490826 2321098 7169728 0.01850 5660129 3035951 2624178 0.00680 317818 166266 151552 0.00040 691485 691485 0.00180 16477799 5523315 10954484 0.02830 85350432 66651396 18699036 0.05610 11950 11950 0.00000 82602 82602 0.00020 94552 94552 0.00020 0 23109316 1199774 98313692 106312130 -7998438 X 1 1 2 1 ANMED HEALTH MEDICAL CENTER

800 N FANT STREET ANDERSON SC 29621

X X X X DISPROPORTIONATE SHARE HOSPITAL 2 ANMED HEALTH WOMEN'S & CHILDREN'S HOSPIT

2000 EAST GREENVILLE STREET ANDERSON SC 29621

X X X X DISPROPORTIONATE SHARE HOSPITAL NA IN 2010 PER IRS ANNOUNCEMENT 2011-37 1 26 CLEMSON HEALTH CENTER

885 TIGER BLVD CLEMSON SC 29631

OUTPATIENT FACILITY ANMED HEALTH MINOR CARE

600 N FANT ST ANDERSON SC 29621

OUTPATIENT FACILITY CARDIAC & ORTHOPAEDIC CENTER

100 HEALTHY WAY ANDERSON SC 29621

OUTPATIENT FACILITY ANMED HEALTH VASCULAR MEDICINE

703 N FANT ST ANDERSON SC 29621

PHYSICIAN OFFICE ANMED HEALTH CAROLINA OBGYN

160 PERPETUAL SQUARE DR ANDERSON SC 29621

PHYSICIAN OFFICE ANMED HEALTH HOME HEALTHLIFELINE

1926 MCCONNELL SPRINGS RD ANDERSON SC 29621

HOME HEALTH ANMED HEALTH ANDERSON BONE & JOINT

112 MONTGOMERY DR ANDERSON SC 29621

PHYSICIAN OFFICE ANMED HEALTH CHILDREN'S HEALTH CENTER

500 N FANT ST ANDERSON SC 29621

PHYSICIAN OFFICE ANMED HEALTH PEDIATRIC THERAPY WORKS

701 N FANT ST ANDERSON SC 29621

OUTPATIENT FACILITY ANMED HEALTH HONEA PATH FAMILY MEDLAB

21 S SHIRLEY AVE HONEA PATH SC 29654

PHYSICIAN OFFICE ANMED HEALTH ANDERSON PEDIATRICS

705 N FANT ST ANDERSON SC 29621

PHYSICIAN OFFICE ANMED HEALTH HARTWELL FAMILY MEDICINE

28 CHANDLER CENTER HARTWELL GA 30643

PHYSICIAN OFFICE ANMED HEALTH WILLIAMSTON FAMILY MEDICINE

16 ROBERTS BLVD WILLIAMSTON SC 29697

PHYSICIAN OFFICE ANMED HEALTH IVA FAMILY MEDICINE

331 ANTREVILLE HWY IVA SC 29655

PHYSICIAN OFFICE ANMED HEALTH EASTSIDE INTERNAL MEDICINE

400 N FANT ST ANDERSON SC 29621

PHYSICIAN OFFICE ANMED HEALTH MICHAEL M RIVERA MD

1519 N FANT ST ANDERSON SC 29621

PHYSICIAN OFFICE ANMED HEALTH LAKESIDE FAMILY MEDLAB

4120 HWY 24 ANDERSON SC 29621

PHYSICIAN OFFICE ANMED HEALTH CAROLINA KIDS

10706 CLEMSON BLVD SENECA SC 29678

PHYSICIAN OFFICE ANMED HEALTH CENERVILLE FAMILY MEDICINE

1520 WHITEHALL RD ANDERSON SC 29625

PHYSICIAN OFFICE ANMED HEALTH JOHD D WARE

105 BUFORD AVE ANDERSON SC 29621

PHYSICIAN OFFICE ANMED HEALTH PENDLETON FAMILY MEDICINE

101 SHIRLEY ST PENDLETON SC 29670

PHYSICIAN OFFICE ANMED HEALTH WESTSIDE FAMILY MEDICINE

1100 W FRANKLIN ST ANDERSON SC 29624

PHYSICIAN OFFICE ANMED HEALTH FAIRPLAY FAMILY MEDICINE

111 W PINE GROVE RD FAIRPLAY SC 29643

PHYSICIAN OFFICE ANMED HEALTH DANIEL A KEENAN JR MD

803 N FANT ST ANDERSON SC 29621

PHYSICIAN OFFICE ANMED HEALTH PALMETTO FAMILY MEDICINE

323 LEBBY ST PELZER SC 29669

PHYSICIAN OFFICE ANMED HEALTH CLEMSON FAMILY MEDICINE

386 CLEMSON BLVD CLEMSON SC 29631

PHYSICIAN OFFICE PART I, LINE 6A: SOUTH CAROLINA DOES NOT REQUIRE HOSPITALS TO FILE A COMMUNITY BENEFIT REPORT. EACH YEAR FOR THE PAST FOUR YEARS, ANMED HEALTH HAS PARTICIPATED IN THE SC HOSPITAL ASSOCIATION'S (SCHA) COMMUNITY BENEFIT SURVEY PROCESS. SCHA CONTRACTS WITH THE MICHIGAN HOSPITAL ASSOCIATION FOR USE OF THE COMMUNITY BENEFIT TRACKER SOFTWARE. IN EACH PARTICIPATION YEAR, ANMED HEALTH HAS REPORTED ITS COMMUNITY BENEFIT INFORMATION TO SCHA, USING THE TRACKER SURVEY INSTRUMENT. A SUMMARY OF THE RESULTS OF ANMED HEALTH'S COMMUNITY BENEFIT REPORT IS INCLUDED IN THE "YEAR IN REVIEW" REPORT, WHICH IS PUBLISHED ON ANMED HEALTH'S WEBSITE (WWW.ANMEDHEALTH.ORG). PART I, LINE 7: WORKSHEET 2 FROM THE 2010 SCHEDULE H INSTRUCTIONS WAS USED TO COMPUTE A COST-TO-CHARGE RATIO USED TO CALCULATE COMMUNITY BENEFIT EXPENSE AT COST FOR USE IN PART I, LINE 7. PART I, LINE 7G: SUBSIDIZED HEALTH SERVICES INCLUDES TWO OUTPATIENT CLINICS AND A PSYCHIATRIC INPATIENT CLINIC OPERATED BY THE ORGANIZATION. ONE OF THE OUTPATIENT CLINICS IS OPERATED IN A LOW-INCOME NEIGHBORHOOD AND THE OTHER IS A PEDIATRIC CLINIC. EACH CLINIC RUNS AT A FINANCIAL LOSS BUT IS NECESSARY FOR THE BENEFIT OF THE COMMUNITIES SERVED. PART I, L7 COL(F): THE AMOUNT OF TOTAL EXPENSE ON FORM 990, PART IX, LINE 25 CONTAINS BAD DEBT EXPENSE OF $96,623,806 THAT WAS REMOVED FROM THE CALCULATION OF CHARITY CARE ON PART I, LINE 7. PART II: LINE 2: ECONOMIC DEVELOPMENT: INCLUDED HERE ARE 363 TOTAL VOLUNTEER HOURS REPORTED BY 7 DIFFERENT ANMED HEALTH LEADERS IN SERVICE TO ORGANIZATIONS THAT SUPPORT THE ECONOMIC DEVELOPMENT OF ANDERSON COUNTY AND THE UPSTATE SC REGION. ANMED HEALTH'S CEO, MR. JOHN MILLER, SETS AN EXAMPLE FOR COMMUNITY LEADERSHIP IN THIS ARENA, THROUGH HIS SERVICE ON THE BOARD OF TRUSTEES AND COMMITTEES OF UPSTATE SC ALLIANCE AND TEN AT THE TOP (TATT). THE UPSTATE SC ALLIANCE IS A REGIONAL ECONOMIC DEVELOPMENT ORGANIZATION DESIGNED TO MARKET THE 10-COUNTY UPSTATE SC REGION, WHICH INCLUDES ANDERSON COUNTY. TATT IS A COLLABORATIVE OF PUBLIC, PRIVATE, AND NONPROFIT LEADERS ACROSS THE 10-COUNTY UPSTATE REGION, WHOSE MISSION IS TO EDUCATE LEADERS AND RESIDENTS ON THE VALUE OF BULLDING REGIONAL TRUST AND CONSENSUS THROUGH DATA-DRIVEN RESEARCH. TATT LEADERS ENCOURAGE QUALITY GROWTH, ENHANCED ECONOMIC VITALITY , AND IMPROVED QUALITY OF LIFE FOR THIS TARGETED REGION OF SC. MR. BILL MANSON, ANMED HEALTH'S COO AND PRESIDENT, SERVED AS CHAIR OF THE BOARD FOR ANDERSON AREA CHAMBER OF COMMERCE. OTHER ANMED HEALTH LEADERS ALSO SERVED ON THE CHAMBER'S BOARD, AS WELL AS COMMITTEES AND TASK FORCES SUCH AS PUBLIC POLICY, "COMPLETE THE STREETS", AND LEADERSHIP ANDERSON. THE COMMUNITY BENEFIT EXPENSE WAS CALCULATED BASED ON 363 VOLUNTEER HOURS AT AN ORGANIZATION-WIDE AVERAGE SALARY PLUS BENEFIT RATE OF $32.92/HOUR. PART II, LINE 6: COALITION BUILDING: INCLUDED HERE ARE 1,694 VOLUNTEER HOURS REPORTED BY 28 DIFFERENT ANMED HEALTH EMPLOYEES VOLUNTEERING WITH ANDERSON-AREA ORGANIZATIONS SUCH AS THE UNITED WAY, THE YMCA, PUBLIC SCHOOL DISTRICTS, UNIVERSITIES AND TECHNICAL COLLEGES, AND OTHER NOT-FOR-PROFIT HEALTH AND HUMAN SERVICE ORGANIZATIONS. ANMED HEALTH'S CEO, MR. JOHN MILLER, AND COO/PRESIDENT MR. BILL MANSON, SET AN EXAMPLE FOR ANMED HEALTH'S LEADERSHIP. THEY SERVE ON BOARDS AND COMMITTEES FOR LOCAL ORGANIZATIONS SUCH AS IMAGINE ANDERSON, CLEMSON UNIVERSITY, INNOVATE ANDERSON, UPSTATE DIVERSITY LEADERSHIP INSTITUTE, AND UNITED WAY'S COMMUNITY IMPACT. THE COMMUNITY BENEFIT EXPENSE FOR THESE VOLUNTEER HOURS WAS CALCULATED BASED ON 1,694 VOLUNTEER HOURS AT AN ORGANIZATION-WIDE AVERAGE SALARY+BENEFIT RATE OF $32.92/HOUR. ALSO INCLUDED IN THIS SECTION IS THE FAIR MARKET VALUE OF THE LEASE OF LAND ADJACENT TO ANMED HEALTH'S NORTH CAMPUS, PROVIDED TO THE CITY OF ANDERSON FOR THE OPERATION OF A CITY FIRE SUBSTATION. ANMED HEALTH SEEKS TO WORK WITH THESE ORGANIZATIONS IN ORDER TO ENCOURAGE COMMUNITY INVOLVEMENT, TO INCREASE SOCIAL CAPITAL, TO HIGHLIGHT THE NEEDS OF THE COMMUNITY, AND TO WORK WITH OTHER LOCAL ORGANIZATIONS TO MEET THESE NEEDS. PART III, LINE 4: THE ORGANIZATION'S AUDITED FINANCIAL STATEMENTS DO NOT INCLUDE A FOOTNOTE ON BAD DEBT, ACCOUNTS RECEIVABLE, OR ALLOWANCE FOR DOUBTFUL ACCOUNTS. WORKSHEET 2 FROM THE 2010 SCHEDULE H INSTRUCTIONS WAS USED TO COMPUTE A COST-TO-CHARGE RATIO TO DETERMINE BAD DEBT EXPENSE AT COST REPORTED ON PART III, LINE 2.TO DETERMINE AN ESTIMATE OF THE AMOUNT OF BAD DEBT EXPENSE ATTRIBUTABLE TO PATIENTS ELIGIBLE UNDER THE ORGANIZATION'S CHARITY CARE POLICY, THE ORGANIZATION ESTIMATED THE NUMBER OF CHARITY APPLICATIONS BEGUN BUT NEVER COMPLETED BY THE PATIENT, AND APPLIED THAT RATIO OF INCOMPLETE APPLICATIONS TO THE TOTAL BAD DEBT EXPENSE. THIS METHOD IS AN APPROXIMATION BASED ON THE ASSUMPTION THAT AN APPLICATION STARTED BUT NOT COMPLETED FOR WHATEVER REASON WAS LIKELY TO QUALIFY FOR SOME DEGREE OF DISCOUNT. THE ORGANIZATION IS WORKING TO DEVISE A SYSTEM TO CAPTURE MORE ACCURATE INFORMATION TO ESTIMATE THIS AMOUNT FOR FUTURE YEARS. PART III, LINE 8: THE MEDICARE COST REPORT WAS USED TO COMPUTE MEDICARE ALLOWBLE COSTS OF CARE RELATING TO MEDICARE PAYMENTS.ADDITIONAL ACTIVITIES FROM MEDICARE MANAGED CARE AND PHYSICIAN PRACTICES NOT REPORTED IN THE MEDICARE COST REPORT: TOTAL REVENUE RECIEVED FROM OTHER MEDICARE PROGRAMS: $ 58,968,389 COSTS OF CARE RELATED TO THE PAYMENTS ABOVE: 100,558,131 SHORTFALL OF OTHER MEDICARE SERVICES (41,589,742)ANMED HEALTH TREATS MEDICARE PATIENTS AT A LOSS AND BELIEVES ALL OF THIS SHOULD BE COUNTED AS A COMMUNITY BENEFIT. ANMED HEALTH TREATS ALL PATIENTS, REGARDLESS OF THEIR ABILITY TO PAY. WITHOUT THE MEDICARE PROGRAM, A PERCENTAGE OF THE POPULATION RECEIVING MEDICARE WOULD QUALIFY FOR OUR CHARITY PROGRAM AND SOME WOULD FAIL TO PAY AND BE WRITTEN OFF AS BAD DEBT EXPENSE. ALTERNATIVELY, SOME WOULD HAVE COMMERCIAL INSURANCE AND WE WOULD RECEIVE MORE THAN WE DO FROM MEDICARE. BECAUSE OF THESE FACTORS, THE ORGANIZATION TAKES THE POSITION THAT THE ENTIRETY OF THE MEDICARE SHORTFALL SHOULD BE CONSIDERED A COMMUNITY BENEFIT. PART III, LINE 9B: ONCE APPROVED FOR THE FINANCIAL ASSISTANCE POLICY, NO ADDITIONAL COLLECTION EFFORTS ARE MADE OR BILLS SENT BY THE ORGANIZATION, AND THE HOSPITAL SYSTEM WOULD ONLY EXPECT PAYMENT IF THE PATIENT RECEIVED MONEY FROM AN INSURANCE CLAIM. OUR FISCAL YEAR 2011 REPORT OUTLINES HOW ANMED HEALTH PROVIDED APPROXIMATELY $76.5 MILLION IN UNPAID COSTS OF PATIENT CARE, AND APPROXIMATELY $10.9M IN COSTS FOR COMMUNITY HEALTH AND EDUCATION PROGRAMS, SUBSIDIZED HEALTH SERVICES, HEALTH SCREENINGS, HEALTH CARE SUPPORT SERVICES, ONCOLOGY RESEARCH, HEALTH PROFESSIONS EDUCATION, AND COMMUNITY BUILDING ACTIVITIES. ANMED HEALTH DOCUMENTED SERVING OVER 44,000 PERSONS THROUGH ITS COMMUNITY BENEFIT-RELATED SERVICES. PART VI, LINE 2: ANMED HEALTH ASSESSES THE HEALTH CARE NEEDS OF THE ANDERSON COMMUNITY THROUGH A NUMBER OF FORMAL AND INFORMAL PROCESSES. AH CONDUCTED A FORMAL COMPREHENSIVE COMMUNITY HEALTH ASSESSMENT OF ANDERSON COUNTY IN 1995. IN 2002, AH AND NINE OTHER COMMUNITY GROUPS PARTNERED TO CONDUCT A FOLLOW-UP COMMUNITY ASSESSMENT THAT ADDRESSED NOT ONLY HEALTH, BUT A FULL SCOPE OF OTHER COMMUNITY PRIORITIES. THE RESULTS OF THE HEALTH-RELATED COMPONENTS OF THE 2002 STUDY INDICATED THAT "ACCESS TO CARE" AND "HEALTHY LIFESTYLES" WERE KEY ISSUES TO BE ADDRESSED. SINCE 2002, AH'S BOARD OF TRUSTEES HAS DIRECTED THE HEALTH SYSTEM TO LOOK FOR OPPORTUNITIES TO IMPROVE ACCESS TO CARE AND TO PROMOTE HEALTHY LIFESTYLES IN THE RESIDENTS OF ANDERSON COUNTY. AS A RESULT, AH HAS DEVELOPED A NETWORK OF PRIMARY CARE PHYSICIAN PRACTICES THAT SERVE PATIENTS THROUGHOUT AH'S SERVICE AREA. AH HAS ALSO PROVIDED REDUCED-FEE CLINICS FOR CHILDREN, AND FOR FAMILIES IN A MEDICALLY-UNDERSERVED NEIGHBORHOOD. AH OPERATES TWO "MINOR CARE" (URGENT CARE) WALK-IN SITES, MAKING PRIMARY CARE ACCESSIBLE FOR PATIENTS WHO OTHERWISE WOULD USE THE EMERGENCY DEPARTMENT FOR CARE. ONE OF THE MINOR CARE SITES IS DEDICATED TO PEDIATRIC PATIENTS AND THEIR NEEDS. ON AN INFORMAL AND ONGOING BASIS, AH ASSESSES THE HEALTH NEEDS IN THE COMMUNITY THROUGH VARIOUS PROCESSES. THE AH BOARD OF TRUSTEES REPRESENTS A DIVERSE GROUP OF MEMBERS WHO ARE ALWAYS CONSCIENCE OF THE HEALTH NEEDS IN THE COMMUNITY, BASED ON THEIR ONGOING INTERACTIONS WITH OTHER COMMUNITY LEADERS. THE "COMMUNITY HEALTH IMPROVEMENT COMMITTEE" OF THE BOARD OF TRUSTEES IDENTIFIES AND PRIORITIZES COMMUNITY HEALTH NEEDS. AH'S LEADERSHIP TEAM SERVES ON NUMEROUS BOARDS AND COMMITTEES OF LOCAL NOT-FOR-PROFITS AND COMMUNITY SERVICE AGENCIES AND ORGANIZATIONS, AND THUS ARE MADE AWARE OF UNMET NEEDS. AH'S MEDICAL STAFF IDENTIFY UNMET NEEDS THAT THEY SEE WITHIN THEIR COMMUNITY PRACTICES. THE COUNTY HEALTH DEPARTMENT IS A ALSO A RESOURCE TO HELP AH IDENTIFY UNMET HEALTH NEEDS. PART VI, LINE 3: ANMED HEALTH PROVIDES SIGNAGE ABOUT OUR CHARITY POLICY AT EACH REGISTRATION SITE. FINANCIAL COUNSELORS ARE AVAILABLE TO EXPLAIN THE APPLICATION FOR THOSE WHO NEED ASSISTANCE. CONTACT INFORMATION FOR THE COUNSELORS IS ON OUR WEBSITE, AND A COPY OF THE ASSISTANCE POLICY IS ON OUR WEBSITE UNDER "PATIENTS AND VISITORS", THEN "MEDICAL ASSISTANCE POLICY". THE APPLICATION FOR CHARITY CARE AND ASSOCIATED DOCUMENTATION IS AVAILABLE IN ENGLISH AND SPANISH. PART VI, LINE 4: ANMED HEALTH'S PRIMARY SERVICE AREA IS ANDERSON COUNTY, SC, BASED ON THE COUNTY OF RESIDENCE FOR THE MAJORITY OF ANMED HEALTH'S PATIENTS. MORE THAN 85% OF ANMED HEALTH'S INPATIENT, HOSPITAL OUTPATIENT, AND EMERGENCY DEPARTMENT ENCOUNTERS ARE FROM ANDERSON COUNTY RESIDENTS. RESIDENTS OF SURROUNDING COUNTIES IN SC AND GA SEEK HEALTHCARE SERVICES FROM ANMED HEALTH AS WELL, INCLUDING RESIDENTS OF OCONEE, PICKENS, AND ABBEVILLE COUNTIES IN SC, AND RESIDENTS OF HART COUNTY IN GA. THE RESIDENTS OF SURROUNDING COUNTIES SEEK CARE FROM ANMED HEALTH FOR A VARIETY OF REASONS, BUT PARTICULARLY BECAUSE OF THE SCOPE AND QUALITY OF SERVICES, AND THE NUMBER OF DIFFERENT PHYSICIAN SPECIALISTS ON STAFF AT ANMED HEALTH ANDERSON COUNTY, THE PRIMARY COMMUNITY SERVED BY ANMED HEALTH IS AN URBAN COMMUNITY THAN ENCOMPASSES APPROXIMATELY 187,126 RESIDENTS. THE POPULATION OF ANDERSON COUNTY IS EXPECTED TO GROW AT 1% PER YEAR. THE MEDIAN HOUSEHOLD INCOME IN THE COUNTY WAS $42,871. THE PER CAPITA INCOME FOR THE COUNTY WAS $22,117 WITH APPROXIMATELY 15.8% OF COMMUNITY RESIDENTS HAVING INCOMES BELOW THE FEDERAL POVERTY GUIDELINE. THE US DEPARTMENT OF HEALTH AND HUMAN SERVICES DESIGNATED SIX MEDICALLY UNDERSERVED AREAS IN ANDERSON COUNTY. FROM THE SOUTH CAROLINA PRIMARY HEALTH CARE ASSOCIATION, REGARDING MEDICALLY UNDERSERVED AREAS IN ANDERSON COUNTY, THE AREAS ARE AS FOLLOWS IN THE ASSOCIATED CENSUS TRACTS: ANDERSON COUNTY 03093 - CT 0005.00, CT 0006.00, CT 0007.00 AND BELTON DIVISION SERVICE AREA 03099 - MCD (90221) BELTON CCD, MCD (91170 FORK CCD, MCD (93224) STARR CCD. OVER 8.4% IS UNEMPLOYED AND APPROXIMATELY 75% OF ANDERSON COUNTY RESIDENTS WHO ARE UNINSURED OR MEDICAID RECIPIENTS COME TO ANMED HEALTH FOR THEIR INPATIENT MEDICAL CARE. ANMED HEALTH MAINTAINS OVER 75% MARKET SHARE WITH TWO OTHER HOSPITALS CONSISTING OF SLIGHTLY OVER 19% MARKET SHARE. PART VI, LINE 6: A MAJORITY OF THE ORGANIZATION'S GOVERNING BODY IS COMPRISED OF PERSONS WHO RESIDE IN THE ORGANIZATION'S PRIMARY SERVICE AREA AND WHO ARE NEITHER EMPLOYEES NOR INDEPENDENT CONTRACTORS OF THE ORGANIZATION, NOR FAMILY MEMBERS THEREOF. ANMED HEALTH EXTENDS MEDICAL STAFF PRIVILEDGES TO ALL QUALIFIED PHYSICIANS IN THE COMMUNITY FOR MANY OF ITS DEPARTMENTS.SURPLUS FUNDS ARE SPENT TO IMPROVE THE CARE WE PROVIDE OUR PATIENTS. THIS IS DONE THROUGH UPDATES TO OUR EQUIPMENT AND BUILDINGS, INVESTING IN NEW TECHNOLOGY, SUPPORTING OUR FAMILY MEDICINE RESIDENCY PROGRAM, ONCOLOGY RESEARCH, AND PROVIDING COMMUNITY BENEFITS.ANMED HEALTH PROVIDES, SUPPORTS, PROMOTES, AND / OR SPONSORS A BROAD SCOPE OF COMMUNITY BENEFIT ACTIVITIES AND PROGRAMS THAT PROMOTE GOOD HEALTH, WELLNESS / PREVENTION, AND ACCESS TO HEALTH CARE SERVICES. EXAMPLES OF COMMUNITY HEALTH EDUCATION PROGRAMS INCLUDE: - CAMP ASTHMANIA, A SUMMER CAMP FOR CHILDREN WHO HAVE ASTHMA, TO TEACH CHILDREN AND PARENTS ABOUT BEST PRACTICES IN MANAGING THIS CHRONIC DISEASE - CANCER SURVIVORS' DAY, CELEBRATING THE LIVES OF THOSE WHO HAVE SURVIVED A CANCER DIAGNOSIS, AND WHO HAVE EMBRACED HEALTHY LIFESTYLES FOR THE FUTURE - MULTIPLE COMMUNITY EDUCATION PROGRAMS FOCUSED ON CHRONIC DISEASES SUCH AS DIABETES AND CONGESTIVE HEART FAILURE, WITH AN EMPHASIS ON MANAGEMENT OF THESE DISEASES IN THE OUTPATIENT SETTING - SPEAKERS FOR COMMUNITY EDUCATION ABOUT PROPER NUTRITION AND WEIGHT LOSS - SAFE KIDS PROGRAMS TO TEACH BIKE AND WATERSPORTS SAFETY, FIRE SAFETY, AND PROPER CAR SEAT USE - A TEDDY BEAR CLINIC TO TEACH CHILDREN ABOUT SERVICES PROVIDED BY DOCTORS AND HOSPITALS - MULTIPLE HEALTH FAIRS THAT SERVED OVER 2500 PERSONS - COMMUNITY SUPPORT GROUPS FOR CARDIAC DISEASE, DIABETES, STROKE, ASTHMAS, AND WEIGHT-LOSS. DURING THE YEAR, OVER 13,000 PERSONS WERE SERVED AT OVER 400 COMMUNITY HEALTH EDUCATION EVENTS. AN EXAMPLE OF COMMUNITY-BASED CLINICAL SERVICES PROVIDED AT NO CHARGE DURING THE YEAR IS THAT OVER 3700 PERSONS WERE SCREENED FOR SYMPTOMS SUCH AS CHRONIC ELEVATED BLOOD PRESSURE, CHOLESTEROL, BLOOD SUGAR, AND FOR PROSTATE DISEASE, USING A MOBILE VAN AND OTHER COMMUNITY SCREENINGS. ALSO, REDUCED-FEE CLINICS WERE PROVIDED IN FAMILY MEDICINE AND IN PEDIATRICS, AS WELL AS PEDIATRIC REHABILITATION THERAPIES. OTHER HEALTH CARE SUPPORT SERVICES PROVIDED DURING THE YEAR INCLUDE: FREE GENETICS COUNSELING RELATED TO CANCER RISKS; MENTAL HEALTH AND SUBSTANCE ABUSE CRISIS INTERVENTION PHONE RESPONSE; FAMILY SUPPORT SERVICES TO ASSIST WITH MEDICAID ENROLLMENT, MEDICATION ASSISTANCE PROGRAMS, AND A NURSEWISE REFERRAL LINE. HEALTH PROFESSIONS EDUCATION PROGRAMS INCLUDES: A FAMILY MEDICINE RESIDENCY PROGRAM, NURSING TRAINING AND MENTORING, A RADIOLOGY TECHNOLOGY PROGRAM, THERAPY INTERNSHIPS, AND PHARMACY STUDENT ROTATIONS. AN ONCOLOGY RESEARCH PROGRAM WORKS WITH PHYSICIANS AND PATIENTS TO IDENTIFY AVAILABLE STUDIES AND TRIALS OF INVESTIGATIONAL MEDICATIONS AND REGIMENS FOR CANCER TREATMENT. FINALLY, ANMED HEALTH SUPPORTS MANY OTHER NOT-FOR-PROFIT COMMUNITY ORGANIZATIONS THROUGH CASH AND IN-KIND DONATIONS. THESE ORGANIZATIONS SHARE A SIMILAR VISION OF A HEALTHY COMMUNITY, AND INCLUDE THE ANDERSON FREE CLINIC, UNITED WAY, ANDERSON CANCER ASSOCIATION, ANDERSON YMCA, AND MANY OTHERS. ANMED HEALTH'S LEADERS ARE INVOLVED IN VOLUNTEER ACTIVITIES IN THE CHAMBER OF COMMERCE, CIVIC ORGANIZATIONS, AND OTHER LOCAL, REGIONAL, AND STATEWIDE ORGANIZATIONS. DURING THE YEAR, ANMED HEALTH'S LEADERS AND STAFF DOCUMENTED OVER 600 VOLUNTEER HOURS TO HEALTH-RELATED COMMUNITY ORGANIZATIONS AND EVENTS, AND ANOTHER 2000 VOLUNTEER HOURS FOR COMMUNITY-BUILDING ORGANIZATIONS AND EVENTS. PART VI, LINE 7: ANMED HEALTH HAS AN AFFILIATION AND SERVICES AGREEMENT WITH THE CHARLOTTE-MECKLENBURG HOSPITAL AUTHORITY D/B/A CAROLINAS HEALTHCARE SYSTEM (CHS). THE AGREEMENT APPOINTS CHS AS THE MANAGER OF THE HOSPITAL SYSTEM. SEE FORM 990, PART VI, LINE 3 FOR MORE DETAILS. ANMED HEALTH ALSO HAS AN AFFILIATION AND SERVICES AGREEMENT WITH CANNON MEMORIAL HOSPITAL. THE AGREEMENT APPOINTS ANMED HEALTH AS THE MANAGER OF CANNON MEMORIAL HOSPITAL. THERE IS NO TRANSFER OF GOVERNANCE OR OWNERSHIP BETWEEN CHS AND ANMED HEALTH, NOR BETWEEN CANNON MEMORIAL HOSPITAL AND ANMED HEALTH. REPORTS FILED WITH STATES PART VI, LINE 7 SC 1 ANDERSON FREE CLINIC PO BOX 728 ANDERSON SC 29622 570787584 501(C)(3) 20000 OPERATIONAL SUPPORT THE WESTSIDE COMMUNITY CENTER INC PO BOX 2323 ANDERSON SC 29622 570962032 501(C)(3) 5000 OPERATIONAL SUPPORT YOUNG MEN'S CHRISTIAN ASSOCIATION OF ANDERSON SC 201 E REED ROAD ANDERSON SC 29621 570314465 501(C)(3) 5000 OPERATIONAL SUPPORT CANCER ASSOCIATION OF ANDERSON 215 E CALHOUN STREET ANDERSON SC 29621 542098883 501(C)(3) 5750 OPERATIONAL SUPPORT FOOTHILLS COMMUNITY FOUNDATION PO BOX 1228 ANDERSON SC 29622 582453349 501(C)(3) 137796 SEE PART IV UNITED WAY OF ANDERSON COUNTY PO BOX 2067 ANDERSON SC 29622 570510602 501(C)(3) 233921 OPERATIONAL SUPPORT ANDERSON COUNTY CHAMBER OF COMMERCE 907 NORTH MAIN STREET ANDERSON SC 29621 570115330 501(C)(6) 5000 OPERATIONAL SUPPORT 6 0 NURSING SCHOLARSHIPS 7 18000 OTHER INFORMATION: PART IV: TRI COUNTY TECHNICAL COLLEGE SCHOLARSHIP: RECIPIENTS MUST LIVE IN ANDERSON COUNTY, SC, MUST BE A NURSING MAJOR WITH AT LEAST A 3.0 GPA, AND MUST BE WILLING TO ACCEPT EMPLOYMENT AT ANMED HEALTH OR BE RESPONSIBLE FOR PAYING BACK THE AMOUNT OF THE SCHOLARSHIP. CLEMSON UNIVERSITY SCHOLARSHIP: RECIPIENT MUST LIVE IN ANDERSON, PICKENS, OR OCONEE COUNTIES, SC, MUST BE A NURSING MAJOR WITH AT LEAST A 2.5 GPA, AND MUST BE WILING TO ACCEPT EMPLOYMENT AT ANMED HEALTH OR BE RESPONSIBLE FOR PAYING BACK THE AMOUNT OF THE SCHOLARSHIP. THE CHIEF NURSING OFFICER OF ANMED HEALTH APPROVES ALL SELECTIONS FOR THIS SCHOLARSHIP. GREENVILLE TECHNICAL COLLEGE: RECIPIENT MUST LIVE IN ANDERSON, PICKENS, OR OCONEE COUNTY, MUST BE A NURSING MAJOR AND WILLING TO ACCEPT EMPLOYMENT AT ANMED HEALTH OR BE RESPONSIBLE FOR PAYING BACK THE AMOUNT OF THE SCHOLARSHIP. THE CHIEF NURSING OFFICER OF ANMED HEALTH APPROVES ALL SELECTIONS FOR THIS SCHOLARSHIP. FOOTHILLS COMMUNITY GRANT: IN PAST YEARS, ANMED HEALTH HAS CONTRIBUTED A TOTAL OF APPROXIMATELY $4.5 MILLION TO FOOTHILLS COMMUNITY FOUNDATION, A 501(C)(3) ORGANIZATION. THESE CONTRIBUTIONS WERE RESTRICTED AT THE TIME, AND EACH YEAR A PORTION OF THE CONTRIBUTION IS RELEASED BY FOOTHILLS FOR USE IN CHARITABLE PURPOSES. FOR THE YEAR ENDED SEPTEMBER 30, 2011, APPROXIMATELY $137,796 WAS RELEASED FROM THE RESTRICTED FUND. THIS AMOUNT IS NOT A CURRENT YEAR ACCRUED EXPENDITURE AND IS NOT REPORTED IN THE AMOUNT ON FORM 990, PART X, LINE 1. 1 X X X X X 0 1 0 0 0 1 0 0 0 JOHN A MILLER JR 630247 0 0 0 89789 0 472047 0 162119 0 1354202 0 0 0 WILLIAM T MANSON III 411401 0 0 0 39057 0 135717 0 50125 0 636300 0 50912 0 JERRY A PARRISH 350785 0 0 0 36931 0 59391 0 28406 0 475513 0 28337 0 DR MICHAEL L TILLIRSON 348244 0 0 0 12372 0 48150 0 36018 0 444784 0 42171 0 JAMES T DOUGLAS III 213929 0 27675 0 3672 0 0 0 27771 0 273047 0 2597 0 TINA JURY 232138 0 27945 0 4940 0 2676 0 55179 0 322878 0 19464 0 JOHN D GLYMPH 234394 0 26190 0 5706 0 2748 0 24861 0 293899 0 7938 0 GARRICK CHIDESTER 257276 0 0 0 7638 0 43878 0 31258 0 340050 0 20067 0 DR HENRY B HEARN 516569 0 0 0 1182 0 2812 0 21647 0 542210 0 0 0 DR MARK P LACY 457576 0 0 0 1032 0 3023 0 21396 0 483027 0 0 0 DR DANIELLE W SHELLEY 422672 0 0 0 366 0 3179 0 21679 0 447896 0 0 0 DR TIMOTHY L DUNIHO 440950 0 0 0 552 0 0 0 21612 0 463114 0 0 0 DR MANDY MITCHELL 424647 0 0 0 240 0 3629 0 9721 0 438237 0 0 0 PART I, LINE 4B THE FOLLOWING OFFICERS RECEIVED DEFERRED COMPENSATION ALLOCATIONS FROM A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP): JOHN A. MILLER - $ 355,200 WILLIAM T. MANSON - 74,490 THE PURPOSE OF THE SERP FOR JOHN A. MILLER IS TO PROVIDE THE PARTICIPANT WITH ADDITIONAL RETIREMENT BENEFITS TO ENCOURAGE THE PARTICIPANT'S CONTINUED INTEREST IN THE COMPANY'S SUCCESS AND TO REINFORCE THE PARTICIPANT'S COMMITMENT NOT TO COMPETE WITH THE COMPANY FOLLOWING SEPARATION FROM SERVICE BEFORE THE PARTICIPANT'S NORMAL RETIREMENT DATE (PARTICIPANT'S 65TH BIRTHDAY). THE PLAN COMMENCED ON JANUARY 1, 1998. IF THE PARTICIPANT REMAINS EMPLOYED TO THE NORMAL RETIREMENT DATE, THE COMPANY SHALL PAY TO THE PARTICIPANT IN A LUMP SUM A SERP BENEFIT EQUAL TO THE ACTUARIAL PRESENT VALUE OF A LIFETIME ANNUITY PAYING ANNUAL BENEFITS (IN MONTHLY INSTALLMENTS) EQUAL TO 60% TIMES THE PARTICIPANT'S FINAL AVERAGE TOTAL COMPENSATION, WHICH IS THEN REDUCED BY SOCIAL SECURITY BENEFITS AND THE COMPANY'S QUALIFIED PLAN BENEFITS. THE PURPOSE OF THE SERP FOR WILLIAM T. MANSON IS TO PROVIDE SUPPLEMENTAL RETIREMENT BENEFITS TO THE PARTICIPANT TO ENCOURAGE HIS CONTINUED INTEREST IN THE SUCCESS OF THE COMPANY, AND TO PROVIDE REASONABLE RETIREMENT BENEFITS. THE PLAN COMMENCED ON MARCH 1, 2005. THE COMPANY SHALL CREDIT TO THE PARTICIPANT'S SERP ACCOUNT AN AMOUNT PROJECTED TO PROVIDE ANNUAL RETIREMENT BENEFITS EQUAL TO 50% OF THE PARTICIPANT'S FINAL FIVE-YEAR AVERAGE CASH COMPENSATION AT AGE 65. THE PROJECTION TAKES INTO ACCOUNT THAT THE TOTAL TAGETED RETIREMENT BENEFIT CONSISTS OF THE QUALIFIED DEFINED BENEFIT PENSION PLAN, 403(B) PLAN MATCHING CONTRIBUTIONS EARNED THEREON, 50% OF THE PROJECTED SOCIAL SECURITY PRIMARY RETIREMENT BENEFITS, AND BENEFITS UNDER THIS PLAN. THE COMPANY DOES NOT GUARANTEE THAT THE CREDITS WILL ACTUALLY PROVIDE THE TARGETED BENEFIT; RATHER, THE PARTICIPANT'S BENEFIT IS LIMITED TO THE AMOUNT ACCRUED IN HIS ACCOUNT. THE PARTICIPANT'S ENTITLEMENT TO THE BENEFITS DEPENDS ON THE PARTICIPANT'S FUTURE PERFORMANCE OF SUBSTANTIAL SERVICES. PART I, LINE 6 PHYSICIANS ARE COMMONLY COMPENSATED BY THE ORGANIZATION THROUGH AN AGREEMENT BASING THE BASE RATE ON A "TARGET COMPENSATION" AMOUNT THAT CONSIDERS THE MOST RECENT TWELVE MONTHS OF FINANCIAL DATA OF THE PHYSICIAN'S PRACTICE, WHICH IS A SUBSET OF THE ORGANIZATION AS A WHOLE, PROJECTED PATIENT VOLUMES AND COLLECTIONS DURING THE YEAR FROM THE SUBSET, AN ALLOCATION OF OVERHEAD COSTS FROM THE ORGANIZATION, EXPENSES OF THE PRACTICE, AND FULL-TIME EQUIVALENT STATUS OF THE PHYSICIAN. THE FOLLOWING INDIVIDUALS LISTED ON PART VII OF THE FORM 990 ARE ENGAGED IN SUCH AN AGREEMENT, AND THEIR COMPENSATION IS SET ANNUALLY ON THE PERFORMANCE FACTORS DISCUSSED HERE: HENRY B. HEARN MARK P. LACY DANIELLE W. SHELLEY TIMOTHY L. DUNIHO MANDY MITCHELL SUPPLEMENTAL INFORMATION PART III COMPENSATION FROM AN UNRELATED ORGANIZATION: DR. STEPHEN HAND WAS COMPENSATED BY HIS PERSONAL MEDICAL PRACTICE FOR SERVICES RENDERED TO ANMED HEALTH. DR. MICHAEL KUNKEL WAS COMPENSATED THROUGH HIS PHYSICIAN PRACTICE FOR SERVICES RENDERED TO ANMED HEALTH. ON OCTOBER 1, 2009, THE HOSPITAL SYSTEM ENTERED INTO A SERVICES AND AFFILIATION AGREEMENT WITH THE CHARLOTTE MECKLENBURG HOSPITAL AUTHORITY D/B/A CAROLINAS HEALTHCARE SYSTEM. THE AGREEMENT APPOINTS CAROLINAS HEALTHCARE SYSTEM AS THE MANAGER OF THE HOSPITAL SYSTEM. THE FOLLOWING OFFICERS AND KEY EMPLOYEES WERE COMPENSATED ACCORDING TO THIS AGREEMENT. AMOUNTS SHOWN RELATE TO COMPENSATION ACCRUED FOLLOWING THE AGREEMENT INITIATED OCTOBER 1, 2009: JOHN A. MILLER JR. - $ 786,894 WILLIAM T. MANSON, III - 474,391 JERRY A. PARRISH - 429,846 DR. MICHAEL L. TILLIRSON - 372,472 GARRICK CHIDESTER - 303,397 THE ABOVE AMOUNTS ARE REPRESENTED IN THE TOTALS SHOWN IN PART II. THE REMAINDER OF THE AMOUNTS SHOWN IN PART II WERE PAID DIRECTLY BY THE ORGANIZATION. SC JOBS-ECONOMIC DEVELOPMENT AUTHORITY 576000286 83703FBX9 2009-04-02 34585000 QUALIFIED HOSPITAL BOND SERIES 2009A 0 0 0 SC JOBS-ECONOMIC DEVELOPMENT AUTHORITY 576000286 83703FCQ3 2009-05-13 109368483 QUALIFIED HOSPITAL BOND SERIES 2009B 0 0 0 SC JOBS-ECONOMIC DEVELOPMENT AUTHORITY 576000286 83703FCQ3 2009-05-13 75605000 QUALIFIED HOSPITAL BOND SERIES 2009C & D 0 0 0 SC JOBS-ECONOMIC DEVELOPMENT AUTHORITY 590960018 83703FBX9 2010-03-04 43752346 QUALIFIED HOSPITAL BOND SERIES 2010 0 0 0 34585000 398936 124368 34061696 2007 1 0 1 1 2299804 109369972 1113917 1255460 2721883 51142629 54250000 2010 1 0 1 1 200000 75605000 113334 653394 701606 74250000 2010 1 0 1 1 2664300 43752346 3370984 351656 43400691 1999 1 0 1 1 0 0 0 0 1 0.00000 0.00000 0.00000 1 0 0 0 0 1 0.00000 0.00000 0.00000 1 0 0 0 0 0 0 0 0 0 1 0.00000 0.00000 0.00000 0 0 1 0 0 0 1 0 0 0 0 0 1 0 1 0 0 0 1 0 0 0 0 0 1 JAMES HERBERT FAMILY RELATIONSHIP TO BOARD MEMBER ANN HERBERT 139748 MEDICAL DOCTOR EMPLOYED BY THE HOSPITAL SYSTEM, COMPENSATION FOR MEDICAL SERVICES PERFORMED 0 FORM 990, PART VI, SECTION A, LINE 3 ON OCTOBER 1, 2009, THE HOSPITAL SYSTEM ENTERED INTO A SERVICES AND AFFILIATION AGREEMENT WITH THE CHARLOTTE MECKLENBURG HOSPITAL AUTHORITY D/B/A CAROLINAS HEALTHCARE SYSTEM (CHS). THE AGREEMENT APPOINTS CAROLINAS HEALTHCARE SYSTEM AS THE MANAGER OF THE HOSPITAL SYSTEM. THE BOARD OF ANMED HEALTH CONTINUES TO OVERSEE THE OPERATIONS OF THE HEALTHCARE FACILITY AND RELATED EXEMPT ACTIVITIES. AS PART OF THE AGREEMENT, ANMED HEALTH GRANTS CHS THE RESPONSIBILITY FOR MANAGEMENT OF THE HEALTH SYSTEM, SUBJECT TO THE GENERAL APPROVAL OF THE BOARD OF DIRECTORS OF ANMED HEALTH. BOARD APPROVAL IS REQUIRED FOR LARGE CAPITAL EXPENDITURES, SALE OR DISPOSAL OF SYSTEM ASSETS, AND BORROWING IN EXCESS OF IMMATERIAL AMOUNTS. CHS IS REQUIRED TO PROVIDE KEY MANAGEMENT PERSONNEL; HOWEVER, THE CURRENT CEO, CFO, AND A NUMBER OF KEY EMPLOYEES ARE PERSONS THAT WERE FORMERLY EMPLOYED DIRECTLY BY ANMED HEALTH, PRIOR TO THE EFFECTIVE DATE OF THE AGREEMENT. FORM 990, PART VI, SECTION A, LINE 6 THE SOLE MEMBER OF THE ORGANIZATION IS ANMED HEALTH FOUNDATION, A SOUTH CAROLINA 501(C)(3) ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 7A THE BOARD OF TRUSTEES OF ANMED HEALTH AS PROVIDED FOR IN ITS BYLAWS SHALL AUTOMATICALLY BECOME THE BOARD OF TRUSTEES OF THE ORGANIZATION UPON BEING ELECTED AS TRUSTEES OF ANMED HEALTH FOUNDATION. ACCORDINGLY, WHEN ANY BOARD MEMBER FOR ANY REASON CEASES BEING A BOARD MEMBER OF ANMEND HEALTH FOUNDATION, HE OR SHE SHALL ALSO AUTOMATICALLY CEASE BEING A BOARD MEMBER OF THE ORGANIZATION. FORM 990, PART VI, SECTION B, LINE 11 THE RETURN WAS PREPARED BY AN INDEPENDENT ACCOUNTING FIRM WITH ASSISTANCE AND OVERSIGHT BY MANAGEMENT. UPON COMPLETION AND REVIEW BY MANAGEMENT, THE RETURN WAS EMAILED TO EACH VOTING MEMBER OF THE BOARD AND PLACED ON A SECURE WEBSITE PRIOR TO THE JULY 2012 BOARD MEETING. AT THE MEETING, BOARD MEMBERS HAD AN OPPORTUNITY TO DISCUSS THE RETURN AND ASK QUESTIONS OF THE CFO AND A REPRESENTATIVE OF THE ACCOUNTING FIRM. FORM 990, PART VI, SECTION B, LINE 12C A COPY OF THE DISCLOSURE OF THE CONFLICT OF INTEREST POLICY, ALONG WITH AN EXPLANATION AND QUESTIONNIARE IS SENT TO ALL TRUSTEES, DIRECTORS, EXECUTIVE STAFF, MEDICAL STAFF WITH ADMINISTRATIVE RESPONSIBILITY, SELECTED OTHER EMPLOYEES, AND VOLUNTEERS ANNUALLY. THE QUESTIONNAIRE MUST BE COMPLETED AND RETURNED TO THE CHAIR OF THE BOARD. A REPORT IS SUBMITTED TO THE BOARD CONCERNING ANY POTENTIAL CONFLICTS THAT ARE DISCLOSED. IN SITUATIONS WHERE A POTENTIAL CONFLICT IS FOUND, THE BOARD REVIEWS THE CIRCUMSTANCES BEFORE A VOTE OR DISCUSSION OF MATTERS INVOLVING INTERESTED PARTIES. FORM 990, PART VI, SECTION B, LINE 15 PERIODIC COMPENSATION SURVEYS ARE PERFORMED BY INTEGRATED HEALTHCARE STRATEGIES, AN OUTSIDE CONSULTING SERVICE. ANMED HEALTH TARGETS THE 65TH PERCENTILE OF THE GIVEN RANGE FOR ITS COMPENSATION PACKAGES. THE COMPENSATION COMMITTEE OF THE BOARD APPROVES COMPENSATION FOR ALL OFFICERS, EXECUTIVES, AND DEPARTMENT DIRECTORS. FORM 990, PART VI, SECTION C, LINE 18 PHOTOCOPIES OF THE FORM 990 ARE AVAILABLE UPON REQUEST AT THE ORGANIZATION'S EXECUTIVE OFFICES. IN ADDITION, RECENT FILINGS OF THE FORM 990 ARE AVAILABLE ONLINE AT WWW.GUIDESTAR.ORG. FORM 990, PART VI, SECTION C, LINE 19 PHOTOCOPIES OF THE ORGANIZATION'S GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE AVAILABLE UPON REQUEST AT THE ORGANIZATION'S EXECUTIVE OFFICES. COPIES OF THE FINANCIAL STATEMENTS ARE AVAILABLE ON A SECURE WEBSITE FOR BONDHOLDERS. PLEASE CONTACT THE EXECUTIVE OFFICE FOR DETAILS. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED LOSSES ON INVESTMENTS: -13,862,214. CHANGE IN UNFUNDED PENSION COSTS -38,711,666. CHANGE IN FAIR VALUE OF INTEREST RATE SWAP CONTRACT -2,590,441. TRANSFERS TO RELATED ORGANIZATIONS -20,608. INCOME OF CONSOLIDATED ENTITY, NET OF MINORITY SHARE 16,398. TOTAL TO FORM 990, PART XI, LINE 5: -55,168,531. FORM 990, PART XII, LINE 2C: THE PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. BOARD MEMBER COMPENSATION: FORM 990, PART VII, LINE 1: IN ADDITION TO HIS SERVICES TO THE BOARD, DR. STEPHEN HAND IS COMPENSATED THROUGH HIS MEDICAL PRACTICE FOR SERVICES RENDERED TO THE HOSPITAL SYSTEM. ALL PAYMENTS TO HIM ON PART VII OF THE FORM 990 ARE FOR MEDICAL SERVICES. A PORTION OF DR. MICHAEL KUNKEL'S COMPENSATION LISTED ON PART VII IS FOR MEDICAL SERVICES RENDERED TO THE ORGANIZATION. FINANCIAL ACCOUNTS IN A FOREIGN COUNTRY: FORM 990, PART V, LINE 4A THE ORGANIZATION WAS A 2.16% PARTNER IN PROFESSIONAL MONEY MANAGEMENT PARTNERSHIP WITH A HEDGE FUND BASED IN THE CAYMAN ISLANDS. THE PARTNERSHIP IS HELD FOR INVESTMENT PURPOSES ONLY. ANMED HEALTH FOUNDATION 800 N FANT STREET ANDERSON SC 29621 570817544 FUNDRAISING/SUPPORT SC 501(C)(3) LINE 7 N/A 0 ANMED HEALTH AUXILIARY 800 N FANT STREET ANDERSON SC 29621 576024205 FUNDRAISING/SUPPORT SC 501(C)(3) LINE 11D, III-O N/A 0 ANMED HEALTH ENTERPRISES INC 800 N FANT STREET ANDERSON SC 29621 570815011 HOLDING CORPORATION SC N/A C ANMED HEALTH PLAN INC 800 N FANT STREET ANDERSON SC 29621 570811053 MANAGEMENT SERVICES ORGANIZATION SC N/A C ANMED HEALTH SERVICES INC 800 N FANT STREET ANDERSON SC 29621 570741536 HEALTHCARE SC N/A C ANDERSON AREA PHYSICIAN HOSPITAL ORGANIZATION INC 800 N FANT STREET ANDERSON SC 29621 571042018 MEDICAL SERVICES SC N/A C 2583 0.83000 0 0 1 0 0 0 0 0 0 0 0 1 0 1 0 1 0 1 NO REPORTABLE TRANSACTIONS WITH CONTROLLED ORGANIZATIONS