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        <TotalCommunityBenefitExpense>51130389</TotalCommunityBenefitExpense>
        <DirectOffsettingRevenue>14599672</DirectOffsettingRevenue>
        <NetCommunityBenefitExpense>36530717</NetCommunityBenefitExpense>
        <PercentOfTotalExpense>0.12460</PercentOfTotalExpense>
      </TotalCharityCare>
      <CommunityHealthServices>
        <NumberOfActivitiesOrPrograms>206</NumberOfActivitiesOrPrograms>
        <PersonsServed>297259</PersonsServed>
        <TotalCommunityBenefitExpense>1410415</TotalCommunityBenefitExpense>
        <DirectOffsettingRevenue>609978</DirectOffsettingRevenue>
        <NetCommunityBenefitExpense>800437</NetCommunityBenefitExpense>
        <PercentOfTotalExpense>0.00270</PercentOfTotalExpense>
      </CommunityHealthServices>
      <CashAndInKindContributions>
        <TotalCommunityBenefitExpense>294977</TotalCommunityBenefitExpense>
        <NetCommunityBenefitExpense>294977</NetCommunityBenefitExpense>
        <PercentOfTotalExpense>0.00100</PercentOfTotalExpense>
      </CashAndInKindContributions>
      <TotalOtherBenefits>
        <NumberOfActivitiesOrPrograms>206</NumberOfActivitiesOrPrograms>
        <PersonsServed>297259</PersonsServed>
        <TotalCommunityBenefitExpense>1705392</TotalCommunityBenefitExpense>
        <DirectOffsettingRevenue>609978</DirectOffsettingRevenue>
        <NetCommunityBenefitExpense>1095414</NetCommunityBenefitExpense>
        <PercentOfTotalExpense>0.00370</PercentOfTotalExpense>
      </TotalOtherBenefits>
      <TotalCommunityBenefits>
        <NumberOfActivitiesOrPrograms>206</NumberOfActivitiesOrPrograms>
        <PersonsServed>346328</PersonsServed>
        <TotalCommunityBenefitExpense>52835781</TotalCommunityBenefitExpense>
        <DirectOffsettingRevenue>15209650</DirectOffsettingRevenue>
        <NetCommunityBenefitExpense>37626131</NetCommunityBenefitExpense>
        <PercentOfTotalExpense>0.12830</PercentOfTotalExpense>
      </TotalCommunityBenefits>
      <BadDebtExpenseReported>0</BadDebtExpenseReported>
      <BadDebtExpenseAmount>2741777</BadDebtExpenseAmount>
      <AmountReimbursedByMedicare>64600577</AmountReimbursedByMedicare>
      <CostOfCareReimbursedByMedicare>83152643</CostOfCareReimbursedByMedicare>
      <MedicareSurplusOrShortfall>-18552066</MedicareSurplusOrShortfall>
      <CostingMethodologyUsed>
        <CostToChargeRatio>X</CostToChargeRatio>
      </CostingMethodologyUsed>
      <WrittenDebtCollectionPolicy>1</WrittenDebtCollectionPolicy>
      <ProvisionForCharityCare>1</ProvisionForCharityCare>
      <NumberOfHospitalFacilities>1</NumberOfHospitalFacilities>
      <Form990ScheduleHPartVSectionA>
        <FacilityNumber>1</FacilityNumber>
        <Name>
          <BusinessNameLine1>KADLEC REGIONAL MEDICAL CENTER</BusinessNameLine1>
        </Name>
        <Address>
          <AddressLine1>888 SWIFT BLVD</AddressLine1>
          <City>RICHLAND</City>
          <State>WA</State>
          <ZIPCode>99352</ZIPCode>
        </Address>
        <LicensedHospital>X</LicensedHospital>
        <GeneralMedicalAndSurgical>X</GeneralMedicalAndSurgical>
        <Er24Hours>X</Er24Hours>
      </Form990ScheduleHPartVSectionA>
      <Form990ScheduleHPartVSectionB>
        <HospitalFacilityName>
          <BusinessNameLine1>KADLEC REGIONAL MEDICAL CENTER</BusinessNameLine1>
        </HospitalFacilityName>
        <HospitalFacilityNumber>1</HospitalFacilityNumber>
        <EligibilityCriteriaExplained>1</EligibilityCriteriaExplained>
        <UsesFPGFree>1</UsesFPGFree>
        <FPGFreePercent>200.000000000000</FPGFreePercent>
        <UsesFPGDiscounted>1</UsesFPGDiscounted>
        <FPGDiscountPercent>300.000000000000</FPGDiscountPercent>
        <ExplainsBasis>1</ExplainsBasis>
        <IncomeLevel>X</IncomeLevel>
        <ExplainsApplicationMethod>1</ExplainsApplicationMethod>
        <IncludesPublicityMeasures>0</IncludesPublicityMeasures>
        <ActionsOnNonpayment>1</ActionsOnNonpayment>
        <PermitLawsuit>X</PermitLawsuit>
        <CollectionActivities>0</CollectionActivities>
        <NotifiedAllPatients>X</NotifiedAllPatients>
        <DocumentedDetermination>X</DocumentedDetermination>
        <NondiscrimEmergencyCarePolicy>1</NondiscrimEmergencyCarePolicy>
        <UsedOtherMethod>X</UsedOtherMethod>
        <AmountsGenerallyBilled>0</AmountsGenerallyBilled>
        <GrossCharges>0</GrossCharges>
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      <Form990ScheduleHPartVI>
        <Explanation>PART I, LINE 7, COLUMN (F): THE BAD DEBT EXPENSE INCLUDED ON FORM 990, PART IX, LINE 25, COLUMN (A), BUT SUBTRACTED FOR PURPOSES OF CALCULATING THE PERCENTAGE IN THIS COLUMN IS $ 2741777.</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <ReturnReference>FORM 990, PART I, LINE 6B:</ReturnReference>
        <Explanation>THE COMMUNITY BENEFIT REPORT IS PUBLISHED AND DISTRIBUTED TO THE PUBLIC BY MAIL OR ITS AVAILABLE AT THE HOSPITAL.</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Explanation>PART III, LINE 8: KADLEC REGIONAL MEDICAL CENTER IS NOT COVERING THE COST OF THE CARE PROVIDED. THE COSTING METHODOLOGY OF COST TO CHARGE RATIO IS DIRECTLY FROM THE MEDICARE COST REPORT.</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Explanation>PART III, LINE 9B: IF A PATIENT QUALIFIES FOR 100% FINANCIAL ASSISTANCE, THE ACCOUNT IS NOT PLACED WITH A COLLECTION AGENCY. A PATIENT QUALIFYING FOR PARTIAL ADJUSTMENT IS RESPONSIBLE FOR THE REMAINING BALANCE AND THE ACCOUNT IS HANDLED ACCORDING TO OUR COLLECTION POLICY.</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>KADLEC REGIONAL MEDICAL CENTER</Identifier>
        <Explanation>PART V, SECTION B, LINE 19D: MEDICARE COST-TO-CHARGE RATIO</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Explanation>PART VI, LINE 2: THROUGH A COALITION BETWEEN BENTON-FRANKLIN COMMUNITY HEALTH ALLIANCE, LOURDES HEALTH NETWORK, KADLEC REGIONAL MEDICAL CENTER, KENNEWICK GENERAL HOSPITAL, GROUP HEATLH COOPERATIVE, PROSSER MEMORIAL HOSPITAL AND BENTON FRANKLIN HEALTH DISTRICT. THE ASSESSMENT IS PRODUCED FROM DATA, STAKEHOLDER INTERVIEWS, SURVEYS AND FORUMS AND INTERESTED COMMUNITY REPRESENTATIVES.</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Explanation>PART VI, LINE 3: KADLEC PROVIDES INFORMATION REGARDING FINANCIAL ASSISTANCE AT TIME OF REGISTRATION TO ALL SELF-PAY (UNINSURED) PATIENTS. FINANCIAL ASSISTANCE INFORMATION IS ALSO AVAILABLE ON OUR WEBSITE AND AGAIN ON OUR PATIENT STATEMENTS. ON-SITE FINANCIAL COUNSELORS ARE AVAILABLE TO ASSIST PATIENTS WITH APPLICATION PROCESS FOR FEDERAL, STATE, AND LOCAL GOVERNMENT PROGRAMS AS WELL AS FOR OUR ORGANIZATION'S FINANCIAL ASSISTANCE PROGRAM. ACCOUNTS RECEIVABLE REPRESENTATIVES ALSO INFORM PATIENTS OF THE PROGRAM AS THEY SPEAK WITH PATIENTS REGARDING THEIR SELF-PAY BALANCES.</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Explanation>PART VI, LINE 4: KADLEC SERVES A DIVERSE POPULATION WITHIN ITS PRIMARY SERVICE AREA OF BENTON AND FRANKLIN COUNTIES. THE COMBINED POPULATION OF THESE COUNTIES IS APPROXIMATELY 225,000 PEOPLE. WE TAKE CARE OF PATIENTS OF ALL AGES, WITH A GROWING POPULATION OF YOUNGER FAMILIES. IN ADDITION, OUR ATTRACTIVENESS AS A RETIREMENT COMMUNITY IS ALSO BRINGING A GROWING RETIREMENT-AGE POPULATION. WE ARE UNIQUELY QUALIFIED TO SERVE THIS GROUP THROUGH OUR FREE HEALTHY AGES AFTER 50 PROGRAM.</Explanation>
      </Form990ScheduleHPartVI>
    </IRS990ScheduleH>
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      <CompensationCommittee>X</CompensationCommittee>
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        <NamePerson>WILLIAM C BAKER</NamePerson>
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      <Form990ScheduleJPartII>
        <NamePerson>LARRY J CHRISTENSEN</NamePerson>
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        <NamePerson>KIRK W HARPER</NamePerson>
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        <CompReportPrior990RelatedOrgs>0</CompReportPrior990RelatedOrgs>
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      <Form990ScheduleJPartII>
        <NamePerson>JULIE L MEEK</NamePerson>
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        <TotalCompensationFilingOrg>347197</TotalCompensationFilingOrg>
        <TotalCompensationRelatedOrgs>0</TotalCompensationRelatedOrgs>
        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
        <CompReportPrior990RelatedOrgs>0</CompReportPrior990RelatedOrgs>
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      <Form990ScheduleJPartII>
        <NamePerson>DAVID R ROACH</NamePerson>
        <BaseCompensationFilingOrg>232887</BaseCompensationFilingOrg>
        <CompBasedOnRelatedOrgs>0</CompBasedOnRelatedOrgs>
        <BonusFilingOrg>14356</BonusFilingOrg>
        <BonusRelatedOrgs>0</BonusRelatedOrgs>
        <OtherCompensationFilingOrg>0</OtherCompensationFilingOrg>
        <OtherCompensationRelatedOrgs>0</OtherCompensationRelatedOrgs>
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        <TotalCompensationRelatedOrgs>0</TotalCompensationRelatedOrgs>
        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
        <CompReportPrior990RelatedOrgs>0</CompReportPrior990RelatedOrgs>
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      <Form990ScheduleJPartII>
        <NamePerson>LANE SAVITCH</NamePerson>
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        <CompBasedOnRelatedOrgs>0</CompBasedOnRelatedOrgs>
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        <OtherCompensationFilingOrg>21271</OtherCompensationFilingOrg>
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        <TotalCompensationRelatedOrgs>0</TotalCompensationRelatedOrgs>
        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
        <CompReportPrior990RelatedOrgs>0</CompReportPrior990RelatedOrgs>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>WILLIAM T WINGO</NamePerson>
        <BaseCompensationFilingOrg>257894</BaseCompensationFilingOrg>
        <CompBasedOnRelatedOrgs>0</CompBasedOnRelatedOrgs>
        <BonusFilingOrg>21597</BonusFilingOrg>
        <BonusRelatedOrgs>0</BonusRelatedOrgs>
        <OtherCompensationFilingOrg>0</OtherCompensationFilingOrg>
        <OtherCompensationRelatedOrgs>0</OtherCompensationRelatedOrgs>
        <DeferredCompFilingOrg>18967</DeferredCompFilingOrg>
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        <NontaxableBenefitsFilingOrg>2753</NontaxableBenefitsFilingOrg>
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        <TotalCompensationRelatedOrgs>0</TotalCompensationRelatedOrgs>
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        <CompReportPrior990RelatedOrgs>0</CompReportPrior990RelatedOrgs>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>RAND WORTMAN</NamePerson>
        <BaseCompensationFilingOrg>335487</BaseCompensationFilingOrg>
        <CompBasedOnRelatedOrgs>0</CompBasedOnRelatedOrgs>
        <BonusFilingOrg>102376</BonusFilingOrg>
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        <OtherCompensationFilingOrg>7260</OtherCompensationFilingOrg>
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        <TotalCompensationRelatedOrgs>0</TotalCompensationRelatedOrgs>
        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
        <CompReportPrior990RelatedOrgs>0</CompReportPrior990RelatedOrgs>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>NATALIE K EUBANKS</NamePerson>
        <BaseCompensationFilingOrg>157935</BaseCompensationFilingOrg>
        <CompBasedOnRelatedOrgs>0</CompBasedOnRelatedOrgs>
        <BonusFilingOrg>0</BonusFilingOrg>
        <BonusRelatedOrgs>0</BonusRelatedOrgs>
        <OtherCompensationFilingOrg>0</OtherCompensationFilingOrg>
        <OtherCompensationRelatedOrgs>0</OtherCompensationRelatedOrgs>
        <DeferredCompFilingOrg>10160</DeferredCompFilingOrg>
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        <TotalCompensationRelatedOrgs>0</TotalCompensationRelatedOrgs>
        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
        <CompReportPrior990RelatedOrgs>0</CompReportPrior990RelatedOrgs>
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      <Form990ScheduleJPartII>
        <NamePerson>DARLA J HARLESS</NamePerson>
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        <BonusFilingOrg>0</BonusFilingOrg>
        <BonusRelatedOrgs>0</BonusRelatedOrgs>
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        <OtherCompensationRelatedOrgs>0</OtherCompensationRelatedOrgs>
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        <NamePerson>DAVID L PEARSON</NamePerson>
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        <NamePerson>GARY H RICHARDSON</NamePerson>
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        <NamePerson>JANICE L ROACH</NamePerson>
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        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
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      <Form990ScheduleJPartIII>
        <ReturnReference>PART I, LINE 1A</ReturnReference>
        <Explanation>THE BOARD IS ALLOWED TO TAKE THEIR COMPANION ON THE ANNUAL BOARD RETREAT. RAND WORTMAN KHS PRESIDENT &amp; CEO, KRMC CEO; LANE SAVITCH, KRMC PRESIDENT; LARRY CHRISTENSEN, VP RESOURCE DEVELOPMENT FOR KHS AND KADLEC FOUNDATION EXECUTIVE DIRECTOR; WILLIAM WINGO, VP, CORPORATE COUNSEL FOR KRMC AND KHS WILLIAM BAKER, VP, REGIONAL BUSINESS DEVELOPMENT FOR KRMC AND KHS; THEIR MEADOW SPRINGS COUNTRY CLUB DUES ARE PAID BY THE MEDICAL CENTER.</Explanation>
      </Form990ScheduleJPartIII>
      <Form990ScheduleJPartIII>
        <ReturnReference>PART I, LINE 6</ReturnReference>
        <Explanation>THE KHS BOARD ESTABLISHED AN INCENTIVE COMPENSATION PROGRAM FOR SENIOR KHS AND KRMC EXECUTIVES TO ENSURE LEADERSHIP WAS FOCUSED ON KHS AND KRMC PRIORITIES; PATIENT SATISFACTION, EMPLOYEE SATISFACTION, QUALITY CARE, STRATEGIC GOALS, AND OPERATING INCOME. PERFORMANCE EXPECTATIONS ARE SET EACH YEAR WITH THE OPERATING BUDGET, CAPITAL BUDGET, AND BUSINESS PLAN. THE INCENTIVE GOALS ARE WEIGHTED ACCORDING TO THE PARTICIPANTS CONTRIBUTION. THE GOALS ARE ALL OR NOTHING AND THE PAYOUT OCCURS AFTER A FINAL REPORT IS PRESENTED TO THE BOARD EXECUTIVE COMMITTEE.</Explanation>
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    <IRS990ScheduleK documentId="RetDoc1053100001">
      <Form990ScheduleKPartI>
        <IssuerName>
          <BusinessNameLine1>WASHINGTON HEALTHCARE FACILITIES AUTHORITY</BusinessNameLine1>
        </IssuerName>
        <IssuerEIN>911108929</IssuerEIN>
        <CUSIPNumber>93978ED25</CUSIPNumber>
        <DateIssued>2006-09-07</DateIssued>
        <IssuePrice>33165247</IssuePrice>
        <DescriptionOfPurpose>REFUNDING SERIES 1996 AND 2001 BONDS</DescriptionOfPurpose>
        <Defeased>0</Defeased>
        <OnBehalfOfIssuer>0</OnBehalfOfIssuer>
        <PoolFinancing>0</PoolFinancing>
      </Form990ScheduleKPartI>
      <Form990ScheduleKPartI>
        <IssuerName>
          <BusinessNameLine1>WASHINGTON HEALTHCARE FACILITIES AUTHORITY</BusinessNameLine1>
        </IssuerName>
        <IssuerEIN>911108929</IssuerEIN>
        <CUSIPNumber>93978ED33</CUSIPNumber>
        <DateIssued>2006-09-07</DateIssued>
        <IssuePrice>50000000</IssuePrice>
        <DescriptionOfPurpose>FINANCING MAJOR ADDITION</DescriptionOfPurpose>
        <Defeased>0</Defeased>
        <OnBehalfOfIssuer>0</OnBehalfOfIssuer>
        <PoolFinancing>0</PoolFinancing>
      </Form990ScheduleKPartI>
      <Form990ScheduleKPartI>
        <IssuerName>
          <BusinessNameLine1>WASHINGTON HEALTHCARE FACILITIES AUTHORITY</BusinessNameLine1>
        </IssuerName>
        <IssuerEIN>911108929</IssuerEIN>
        <CUSIPNumber>93978HAV7</CUSIPNumber>
        <DateIssued>2010-11-04</DateIssued>
        <IssuePrice>56114049</IssuePrice>
        <DescriptionOfPurpose>FINANCING MAJOR ADDITION</DescriptionOfPurpose>
        <Defeased>0</Defeased>
        <OnBehalfOfIssuer>0</OnBehalfOfIssuer>
        <PoolFinancing>0</PoolFinancing>
      </Form990ScheduleKPartI>
      <Form990ScheduleKPartII>
        <AmountRetired>6675000</AmountRetired>
        <TotalProceeds>33165247</TotalProceeds>
        <AmountInReserveFund>2262824</AmountInReserveFund>
        <IssuanceCostsFromProceeds>1135420</IssuanceCostsFromProceeds>
        <CreditEnhancement>933645</CreditEnhancement>
        <CapitalExpenditures>1828067</CapitalExpenditures>
        <YearOfSubstCompletion>2002</YearOfSubstCompletion>
        <CurrentRefunding>1</CurrentRefunding>
        <AdvanceRefunding>1</AdvanceRefunding>
        <FinalAllocationMade>1</FinalAllocationMade>
        <AdequateBooksAndRecdsMaintaind>1</AdequateBooksAndRecdsMaintaind>
      </Form990ScheduleKPartII>
      <Form990ScheduleKPartII>
        <AmountRetired>2075000</AmountRetired>
        <TotalProceeds>50000000</TotalProceeds>
        <AmountInReserveFund>3800585</AmountInReserveFund>
        <IssuanceCostsFromProceeds>2041879</IssuanceCostsFromProceeds>
        <CreditEnhancement>1712033</CreditEnhancement>
        <CapitalExpenditures>44452624</CapitalExpenditures>
        <YearOfSubstCompletion>2008</YearOfSubstCompletion>
        <CurrentRefunding>0</CurrentRefunding>
        <AdvanceRefunding>1</AdvanceRefunding>
        <FinalAllocationMade>1</FinalAllocationMade>
        <AdequateBooksAndRecdsMaintaind>1</AdequateBooksAndRecdsMaintaind>
      </Form990ScheduleKPartII>
      <Form990ScheduleKPartII>
        <AmountRetired>425000</AmountRetired>
        <TotalProceeds>56114049</TotalProceeds>
        <AmountInReserveFund>5294085</AmountInReserveFund>
        <IssuanceCostsFromProceeds>845875</IssuanceCostsFromProceeds>
        <CapitalExpenditures>33352135</CapitalExpenditures>
        <OtherSpentProceeds>9707345</OtherSpentProceeds>
        <YearOfSubstCompletion>2012</YearOfSubstCompletion>
        <CurrentRefunding>0</CurrentRefunding>
        <AdvanceRefunding>0</AdvanceRefunding>
        <FinalAllocationMade>0</FinalAllocationMade>
        <AdequateBooksAndRecdsMaintaind>0</AdequateBooksAndRecdsMaintaind>
      </Form990ScheduleKPartII>
      <Form990ScheduleKPartIII>
        <OwningBondFinancedProperty>0</OwningBondFinancedProperty>
        <AnyLeaseArrangements>0</AnyLeaseArrangements>
        <MngmentCntrctBondFinancdPrprty>0</MngmentCntrctBondFinancdPrprty>
        <AnyResearchAgreements>0</AnyResearchAgreements>
        <PostIssuanceComplianceProcdrs>1</PostIssuanceComplianceProcdrs>
      </Form990ScheduleKPartIII>
      <Form990ScheduleKPartIII>
        <OwningBondFinancedProperty>0</OwningBondFinancedProperty>
        <AnyLeaseArrangements>0</AnyLeaseArrangements>
        <MngmentCntrctBondFinancdPrprty>0</MngmentCntrctBondFinancdPrprty>
        <AnyResearchAgreements>0</AnyResearchAgreements>
        <PostIssuanceComplianceProcdrs>1</PostIssuanceComplianceProcdrs>
      </Form990ScheduleKPartIII>
      <Form990ScheduleKPartIII>
        <OwningBondFinancedProperty>0</OwningBondFinancedProperty>
        <AnyLeaseArrangements>0</AnyLeaseArrangements>
        <MngmentCntrctBondFinancdPrprty>0</MngmentCntrctBondFinancdPrprty>
        <AnyResearchAgreements>0</AnyResearchAgreements>
        <PostIssuanceComplianceProcdrs>1</PostIssuanceComplianceProcdrs>
      </Form990ScheduleKPartIII>
      <Form990ScheduleKPartIV>
        <Form8038TFiled>1</Form8038TFiled>
        <VariableRateIssue>0</VariableRateIssue>
        <HedgeIdentifiedInBooksAndRecds>0</HedgeIdentifiedInBooksAndRecds>
        <GrossProceedsInvestedInGIC>0</GrossProceedsInvestedInGIC>
        <GrossProceedsInvested>0</GrossProceedsInvested>
        <ExceptionToRebate>0</ExceptionToRebate>
      </Form990ScheduleKPartIV>
      <Form990ScheduleKPartIV>
        <Form8038TFiled>1</Form8038TFiled>
        <VariableRateIssue>1</VariableRateIssue>
        <HedgeIdentifiedInBooksAndRecds>1</HedgeIdentifiedInBooksAndRecds>
        <NameOfHedgeProvider>
          <BusinessNameLine1>PIPER JAFFRAY</BusinessNameLine1>
        </NameOfHedgeProvider>
        <TermOfHedge>28.500000000000</TermOfHedge>
        <SuperintegratedHedge>0</SuperintegratedHedge>
        <HedgeTerminated>0</HedgeTerminated>
        <GrossProceedsInvestedInGIC>0</GrossProceedsInvestedInGIC>
        <GrossProceedsInvested>0</GrossProceedsInvested>
        <ExceptionToRebate>0</ExceptionToRebate>
      </Form990ScheduleKPartIV>
      <Form990ScheduleKPartIV>
        <Form8038TFiled>0</Form8038TFiled>
        <VariableRateIssue>0</VariableRateIssue>
        <HedgeIdentifiedInBooksAndRecds>0</HedgeIdentifiedInBooksAndRecds>
        <GrossProceedsInvestedInGIC>0</GrossProceedsInvestedInGIC>
        <GrossProceedsInvested>0</GrossProceedsInvested>
        <ExceptionToRebate>0</ExceptionToRebate>
      </Form990ScheduleKPartIV>
    </IRS990ScheduleK>
    <IRS990ScheduleO documentId="RetDoc1044400001">
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION A, LINE 3</ReturnReference>
        <Explanation>THE BOARD OF DIRECTORS HIRED QUORUM HEALTH RESOURCES AS A MANAGEMENT COMPANY TO OVERSEE DAY TO DAY OPERATIONS OF THE MEDICAL CENTER. THE CEO IS AN EMPLOYEE OF QUORUM HEALTH RESOURCES.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION A, LINE 6</ReturnReference>
        <Explanation>KADLEC HEALTH SYSTEM (KHS) IS THE SOLE VOTING MEMBER OF KADLEC REGIONAL MEDICAL CENTER(KRMC). KHS SHALL HAVE SUCH RIGHTS AND POWERS AS ARE SPECIFIED IN THE WASHINGTON NONPROFIT CORPORATION ACT, THE ARTICLES OF INCORPORATION OF KRMC AND THE BYLAWS.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION A, LINE 7A</ReturnReference>
        <Explanation>THE ANNUAL MEETING OF THE SOLE VOTING MEMBER OF KADLEC REGIONAL MEDICAL CENTER(KRMC) TO RATIFY ELECTION AND RE-ELECTION OF DIRECTORS OF KRMC AND FOR THE TRANSACTION OF SUCH OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE SOLE VOTING MEMBER, SHALL BE HELD EACH YEAR AS SPECIFIED IN THE BYLAWS OF THE SOLE VOTING MEMBER. THE SOLE VOTING MEMBER MAY DELEGATE OR APPOINT AN OFFICER OF KADLEC HEALTH SYSTEM TO EXERCISE ANY OF THE RIGHTS AND POWERS OF THE SOLE VOTING MEMBER.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION A, LINE 7B</ReturnReference>
        <Explanation>THE SOLE VOTING MEMBER HAS THE RIGHT: (1)TO RATIFY THE ELECTION OR APPOINTMENT OF EACH MEMBER OF THE BOARD OF DIRECTORS AND THE ELECTION OF OFFICERS (2) TO REMOVE ANY DIRECTOR (3) TO AMEND THE ARTICLES OF INCORPORATION OR BYLAWS OF KADLEC REGIONAL MEDICAL CENTER, AND TO APPROVE ANY AMENDMENTS TO THE ARTICLES OF INCORPORATION OF BYLAWS OF KRMC RECOMMENDED BY THE BOARD OF DIRECTORS (4) TO APPROVE ANY MERGERS OR CONSOLIDATION (5) TO APPROVE THE ANNUAL OPERATING AND CAPITAL BUDGETS AND DEVELOPMENT AND REVISION (6) TO APPROVE THE ENTRY INTO JOINT VENTURES OR PARTNERSHIPS (7) TO APPROVE THE ENCUMBRANCE, LEASE, SALE OR OTHER TRANSFER OF ASSETS WITH A VALUE OF $1,000,000 OR GREATER (8) TO APPROVE THE SELECTION OR REMOVAL KRMC'S INDEPENDENT AUDITOR OR LEGAL COUNSEL (9) TO APPROVE THE INITIATION OF LITIGATION OR SETTLEMENT OF MATERIAL LITIGATION IN WHICH KRMC IS THE PLAINTIFF OR DEFENDANT (10) TO APPROVE THE EXECUTION OF ANY MANAGEMENT AGREEMENT, OR ANY OTHER CONTRACT</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 11</ReturnReference>
        <Explanation>ONCE THE 990 IS PREPARED BY A THIRD PARTY, ACCOUNTING STAFF REVIEWS THE DOCUMENTS TO VERIFY INFORMATION HAS BEEN PROVIDED AND INPUT ACCURATELY. ONCE THIS PROCESS HAS BEEN COMPLETED, THE 990 IS REVIEWED AND APPROVED BY THE EXECUTIVE COMMITTEE OF THE BOARD. THE 990 IS ALSO UPLOADED TO THE BOARD WEBSITE AND IS AVAILABLE FOR ALL BOARD MEMBERS TO REVIEW.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 12C</ReturnReference>
        <Explanation>THE COMPLIANCE PROGRAM IS DIRECTED BY THE COMPLIANCE OFFICER AND THE CORPORATE COMPLIANCE COMMITTEE, WHO ARE CHARGED WITH ENSURING THAT THE HOSPITAL MAINTAINS AN EFFECTIVE COMPLIANCE PROGRAM.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 15</ReturnReference>
        <Explanation>AN INDEPENDENT THIRD PARTY IS USED TO DETERMINE APPROPRIATE COMPENSATION AND REVIEWED AND APPROVED BY THE COMPENSATION COMMITTE.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION C, LINE 19</ReturnReference>
        <Explanation>HARD COPIES OF THE AUDITED FINANCIAL STATEMENTS ARE KEPT IN THE ACCOUNTING DEPARTMENT AND ARE AVAILABLE UPON REQUEST. THE HOSPITAL'S "MISSION, VISION, VALUES" STATEMENT IS DISPLAYED IN NUMEROUS PUBLIC LOCATIONS THROUGHOUT THE FACILITY. CONFLICT OF INTEREST POLICY IS AVAILABLE TO PUBLIC UPON REQUEST.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VII, RELATED ORGANIZATION</ReturnReference>
        <Explanation>RAND WORTMAN; KHS-PRES/CEO; KNC-V. CHAIR; KC-MEMBER; TCN-SEC/TREAS; 56.00 (2) WAYNE MARTIN, PHD; KHS - MEMBER; 2.00 (3) TOM COWAN; KHS - MEMBER; 2.00 (5) SANDY GAMBLE; KHS - TREASURER; 2.00 (6) DAVID MERKLEY, MD; KHS - SECRETARY; 2.00 (8) WASSIM KHAWANDI, MD; TCN - CHAIR; 2.00 (9) JEREMY BLANCHARD, MD; KMA - PHYSICIAN; 50.00 (10) STEVEN KING; KHS - MEMBER; 2.00 (16) JULIE L MEEK; KC - TREASURER; 2.00 (18) LANE SAVITCH; KC - MEMBER; 2.00 (19) WILLIAM T WINGO; KNC - SECRETARY; 2.00 (24) JANICE L ROACH; KMA - EXECUTIVE DIRECTOR; 50.00</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>CHANGES IN NET ASSETS OR FUND BALANCES:</Identifier>
        <ReturnReference>FORM 990, PART XI, LINE 5:</ReturnReference>
        <Explanation>NET UNREALIZED LOSSES ON INVESTMENTS: -27,646. MARKET VALUATION ACCOUNT FOR INVESTMENTS -2,292,253. INTEREST RATE SWAP CONTRACT -7,370,733. BOOK/TAX DIFFERENCE IN JOINT VENTURE INCOME 222,766. TOTAL TO FORM 990, PART XI, LINE 5: -9,467,866.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART XII, LINE 2C:</ReturnReference>
        <Explanation>NO CHANGE FROM PRIOR YEAR.</Explanation>
      </GeneralExplanation>
    </IRS990ScheduleO>
    <IRS990ScheduleR documentId="RetDoc1043400001">
      <Form990ScheduleRPartI>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>KADLEC CLINIC LLC</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>945 GOETHALS SUITE 220</AddressLine1>
          <City>RICHLAND</City>
          <State>WA</State>
          <ZIPCode>99352</ZIPCode>
        </AddressUS>
        <EIN>204265899</EIN>
        <PrimaryActivities>PRIMARY CARE PHYSICIAN SERVICES</PrimaryActivities>
        <LegalDomicileState>WA</LegalDomicileState>
        <DirectControllingEntityName>
          <BusinessNameLine1>KADLEC HEALTH SYSTEM</BusinessNameLine1>
        </DirectControllingEntityName>
      </Form990ScheduleRPartI>
      <Form990ScheduleRPartI>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>KADLEC MEDICAL ASSOCIATES LLC</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>888 SWIFT BLVD</AddressLine1>
          <City>RICHLAND</City>
          <State>WA</State>
          <ZIPCode>993523583</ZIPCode>
        </AddressUS>
        <EIN>203980865</EIN>
        <PrimaryActivities>INPATIENT HOSPITALISTS SERVICES</PrimaryActivities>
        <LegalDomicileState>WA</LegalDomicileState>
        <DirectControllingEntityName>
          <BusinessNameLine1>KADLEC HEALTH SYSTEM</BusinessNameLine1>
        </DirectControllingEntityName>
      </Form990ScheduleRPartI>
      <Form990ScheduleRPartI>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>KADLEC NEUROSCIENCE CENTER LLC</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>800 SWIFT BLVD SUITE 300</AddressLine1>
          <City>RICHLAND</City>
          <State>WA</State>
          <ZIPCode>993523583</ZIPCode>
        </AddressUS>
        <EIN>201613946</EIN>
        <PrimaryActivities>NEUROLOGICAL RELATED PHYSICIAN SERVICES</PrimaryActivities>
        <LegalDomicileState>WA</LegalDomicileState>
        <DirectControllingEntityName>
          <BusinessNameLine1>KADLEC HEALTH SYSTEM</BusinessNameLine1>
        </DirectControllingEntityName>
      </Form990ScheduleRPartI>
      <Form990ScheduleRPartI>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>TRICITIES NEPHROLOGY LLC</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>309 BRADLEY SUITE 109</AddressLine1>
          <City>RICHLAND</City>
          <State>WA</State>
          <ZIPCode>99352</ZIPCode>
        </AddressUS>
        <EIN>271041915</EIN>
        <PrimaryActivities>NEPHROLOGY PHYSICIAN SERVICES</PrimaryActivities>
        <LegalDomicileState>WA</LegalDomicileState>
        <DirectControllingEntityName>
          <BusinessNameLine1>KADLEC HEALTH SYSTEM</BusinessNameLine1>
        </DirectControllingEntityName>
      </Form990ScheduleRPartI>
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>THE NEUROLOGICAL RESOURCE CENTER</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>712 SWIFT BLVD SUITE 1</AddressLine1>
          <City>RICHLAND</City>
          <State>WA</State>
          <ZIPCode>993523583</ZIPCode>
        </AddressUS>
        <EIN>911266345</EIN>
        <PrimaryActivities>EDUCATION ON NEUROLOGICAL DISORDERS</PrimaryActivities>
        <LegalDomicileState>WA</LegalDomicileState>
        <ExemptCodeSection>501(C)(3)</ExemptCodeSection>
        <PublicCharityStatus>LINE 7</PublicCharityStatus>
        <DirectControllingEntityName>
          <BusinessNameLine1>KADLEC HEALTH SYSTEM</BusinessNameLine1>
        </DirectControllingEntityName>
        <ControlledOrg>0</ControlledOrg>
      </Form990ScheduleRPartII>
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>KADLEC HEALTH SYSTEM</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>888 SWIFT BLVD</AddressLine1>
          <City>RICHLAND</City>
          <State>WA</State>
          <ZIPCode>993523583</ZIPCode>
        </AddressUS>
        <EIN>911266346</EIN>
        <PrimaryActivities>HOSPITAL &amp; PHYSICIAN SERVICES</PrimaryActivities>
        <LegalDomicileState>WA</LegalDomicileState>
        <ExemptCodeSection>501(C)(3)</ExemptCodeSection>
        <PublicCharityStatus>LINE 3</PublicCharityStatus>
        <DirectControllingEntityNA>N/A</DirectControllingEntityNA>
        <ControlledOrg>0</ControlledOrg>
      </Form990ScheduleRPartII>
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>KADLEC FOUNDATION</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>800 SWIFT BLVD</AddressLine1>
          <City>RICHLAND</City>
          <State>WA</State>
          <ZIPCode>993523583</ZIPCode>
        </AddressUS>
        <EIN>237005501</EIN>
        <PrimaryActivities>FUNDRAISING</PrimaryActivities>
        <LegalDomicileState>WA</LegalDomicileState>
        <ExemptCodeSection>501(C)(3)</ExemptCodeSection>
        <PublicCharityStatus>LINE 11A, I</PublicCharityStatus>
        <DirectControllingEntityName>
          <BusinessNameLine1>KADLEC HEALTH SYSTEM</BusinessNameLine1>
        </DirectControllingEntityName>
        <ControlledOrg>0</ControlledOrg>
      </Form990ScheduleRPartII>
      <Form990ScheduleRPartIV>
        <NameOfRelatedOrg>
          <BusinessNameLine1>MID COLUMBIA MEDICAL ASSOCIATES</BusinessNameLine1>
        </NameOfRelatedOrg>
        <AddressUS>
          <AddressLine1>510 N COLORADO SUITE A</AddressLine1>
          <City>KENNEWICK</City>
          <State>WA</State>
          <ZIPCode>99336</ZIPCode>
        </AddressUS>
        <EIN>911987844</EIN>
        <PrimaryActivity>INFECTIOUS DISEASE AND NEPHROLOGY PHYSICIANS</PrimaryActivity>
        <LegalDomicileState>WA</LegalDomicileState>
        <DirectControllingEntityNA>N/A</DirectControllingEntityNA>
        <TypeOfEntity>C</TypeOfEntity>
      </Form990ScheduleRPartIV>
      <Form990ScheduleRPartIV>
        <NameOfRelatedOrg>
          <BusinessNameLine1>KADLEC ENTERPRISES INC</BusinessNameLine1>
        </NameOfRelatedOrg>
        <AddressUS>
          <AddressLine1>888 SWIFT BOULEVARD</AddressLine1>
          <City>RICHLAND</City>
          <State>WA</State>
          <ZIPCode>99352</ZIPCode>
        </AddressUS>
        <EIN>911323736</EIN>
        <PrimaryActivity>ENGAGE IN BUSINESS RELATED TO HEALTHCARE AND TO SUPPORT KHS</PrimaryActivity>
        <LegalDomicileState>WA</LegalDomicileState>
        <DirectControllingEntityNA>N/A</DirectControllingEntityNA>
        <TypeOfEntity>C</TypeOfEntity>
      </Form990ScheduleRPartIV>
      <ReceiptOfIntAnnRentsRoyalties>0</ReceiptOfIntAnnRentsRoyalties>
      <GiftGrantOrCapContrToOtherOrg>0</GiftGrantOrCapContrToOtherOrg>
      <GiftGrantOrCapContrFrOtherOrg>1</GiftGrantOrCapContrFrOtherOrg>
      <LoansOrGuaranteesToOtherOrg>1</LoansOrGuaranteesToOtherOrg>
      <LoansOrGuaranteesFromOtherOrg>0</LoansOrGuaranteesFromOtherOrg>
      <SaleOfAssetsToOtherOrg>0</SaleOfAssetsToOtherOrg>
      <PurchaseOfAssetsFromOtherOrg>0</PurchaseOfAssetsFromOtherOrg>
      <ExchangeOfAssets>0</ExchangeOfAssets>
      <RentalOfFacilitiesToOtherOrgs>0</RentalOfFacilitiesToOtherOrgs>
      <RentalOfFacilitiesFrOtherOrgs>0</RentalOfFacilitiesFrOtherOrgs>
      <PerformOfServicesForOtherOrgs>0</PerformOfServicesForOtherOrgs>
      <PerformOfServicesByOtherOrgs>0</PerformOfServicesByOtherOrgs>
      <SharingOfFacilities>0</SharingOfFacilities>
      <SharingOfPaidEmployees>0</SharingOfPaidEmployees>
      <ReimbursementPaidToOtherOrg>0</ReimbursementPaidToOtherOrg>
      <ReimbursementPaidByOtherOrg>0</ReimbursementPaidByOtherOrg>
      <OtherTransferToOtherOrg>1</OtherTransferToOtherOrg>
      <OtherTransferFromOtherOrg>0</OtherTransferFromOtherOrg>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>KADLEC HEALTH SYSTEM</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>Q</TransactionType>
        <AmountInvolved>15101073</AmountInvolved>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>THE NEUROLOGICAL RESOURCE CENTER</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>Q</TransactionType>
        <AmountInvolved>249984</AmountInvolved>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>KADLEC FOUNDATION</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>C</TransactionType>
        <AmountInvolved>2968199</AmountInvolved>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>KADLEC FOUNDATION</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>D</TransactionType>
        <AmountInvolved>2100000</AmountInvolved>
      </TransactionsRelatedOrgsTable>
    </IRS990ScheduleR>
  </ReturnData>
</Return>