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        <OtherCompensation>74978</OtherCompensation>
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        <OtherCompensation>78176</OtherCompensation>
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      <RecipientTable>
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        <Identifier>Procedure for Monitoring Grants in the U.S.:</Identifier>
        <ReturnReference>Part I, Line 2:</ReturnReference>
        <Explanation>Schedule I, Part I, Line 2: Grant Monitoring Primary oversight responsibility for all grants received by UHS organizations rests with the entity receiving the funds. Each entity is responsible for documenting the receipt of funds, assigning a cost center to track expenses and/or creating a restricted liability for deposit of the funds, documenting expenditures and completing all grantor required reporting. Their compliance with the terms of the agreement related to project implementation and management, fund expenditures and reporting is monitored by the granting agency's designated contact person with assistance from the UHS Grants Office. Note: The majority of the grant funds received for programs at PCMH are acquired through the PMH Foundation which has a compliance audit completed each year. Grant Funds for UHS are sent to the UHS Foundation and have the same audit procedures. All grant funds are recorded/monitored by the Corporate Accountant and the Assistant Vice President of Financial Services. Selection Criteria/process Grants provided by the UHS and PMH Foundations require the applicant to be a 501(c)3 or government entity and recipients are required to provide proof of their status by submitting a copy of their IRS letter of determination. Requests must be related to disease prevention and disease management or wellness. There are different health related focus areas for each of the hospitals community benefits grant programs. Each hospital's program has their own local community benefits grants review committee comprised of local representatives from their respective communities. These committees review letters of intent, decide which organizations are to be invited to submit a grant application, then review the grant applications and make funding recommendations. Their funding recommendations are then reviewed by the UHS Foundation Community Benefits Committee and final decisions are confirmed by the UHS Foundation Board.</Explanation>
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        <ReturnReference>Part I, Line 1a</ReturnReference>
        <Explanation>Dave McRae country club dues were $3,624 and were included in his W-2. Companion travel consisted of Thomasine Kennedy $225, Bruce Gray $75, Marcus Albernaz $150, Ralph Hall $150, William Jones $150 and Melvin McLawhorn $150. Charter Travel consisted of 8 trips for a total of $46,579 for Dave McRae accompanied at various times by Phil Flowers, Bruce Gray, David Womack and Joel Butler.</Explanation>
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        <ReturnReference>Part I, Line 4b:</ReturnReference>
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    <IRS990ScheduleO documentId="RetDoc1044400001">
      <GeneralExplanation>
        <Identifier>Form 990, Part VI, Section B, line 11</Identifier>
        <Explanation>The 990 is made available to board members by posting to a board member's website. Any board member who does not have the ability to access the return in this manner will receive a copy via electronic or regular mail. The return is also reviewed by the Chief Financial Officer, Chief General Counsel and the Chief Audit and Compliance officer of University Health Systems prior to filing.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Form 990, Part VI, Section B, line 12c</Identifier>
        <Explanation>All board members are required to complete a comprehensive conflict of interest questionnaire. These are reviewed by legal counsel and any potential or actual conflicts are brought to the board for disposition. Board members are required to recuse themselves from voting on issues in which they are deemed to have a conflict.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Form 990, Part VI, Section B, line 15</Identifier>
        <Explanation>The top management official is the CEO who is an employee of UHSEC. The compensation is determined by the UHSEC board using comparative data from like organizations and input from consultants. This process is performed every three years, the last year being 2010. It will be performed again in 2013. Compensation of other officers and key employees is determined by the UHSEC board using comparative data from like organizations and input from consultants. This process is performed every three years, the last year being 2010. It will be performed again in 2013.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Form 990, Part VI, Section C, line 19</Identifier>
        <Explanation>the organization makes its governing documents, conflict of interest policy, and financial statements available to the public upon request.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Form 990, Part XI, Line 2c;</Identifier>
        <Explanation>No changes for approving audited financial statements or selection of independent accountants have occurred from the prior year.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>form 990, part 1, line 1:</Identifier>
        <Explanation>Overview of University Health Systems of Eastern Carolina At University Health Systems of Eastern Carolina (UHS), we are committed to improving the health of our communities. Eastern North Carolina residents look to our hospitals for quality health care. We work hard to uphold the trust that our communities place in us. Through a clear vision, disciplined leadership and committed employees, UHS serves the needs of the region, including those who are underserved and need us the most. Our mission at UHS - to enhance the quality of life for the people and communities we serve, touch and support - drives us far beyond caring for patients within the confines of our hospital walls. It calls us to help make eastern North Carolina a better, healthier place to live. UHS is a North Carolina non-profit corporation with headquarters in Greenville, North Carolina. UHS and its affiliates operate an integrated health care delivery system that serves a total market of approximately 1.3 million people in 29 contiguous counties in eastern North Carolina. The Health System includes hospitals, physician practices, outpatient services, long-term care, home health, hospice, and wellness services. The Health System's owned hospitals are Pitt County Memorial Hospital (PCMH), which is a tertiary care hospital and an academic medical center, and five other acute care hospitals: Roanoke-Chowan Hospital, Heritage Hospital, Chowan Hospital, Bertie Memorial Hospital, and The Outer Banks Hospital. UHS also manages Albemarle Hospital and Duplin General Hospital. PCMH serves as the teaching hospital for the Brody School of Medicine, East Carolina Schools of Nursing and Allied Health and Pitt Community College. The system also serves as a regional referral center for eastern North Carolina. The System's six owned acute care hospitals are licensed to operate 1,208 beds. Each hospital is licensed by the Division of Facility Services of the North Carolina Department of Health and Human Services and approved as a provider by the Medicare and Medicaid programs. UHS and its hospitals and affiliate organizations provide services to patients without regard to their ability to pay. In fiscal year 2010 UHS' combined patient care statistics were: inpatient admissions, 56,622; inpatient days of care, 318,144; surgeries, 41,101; births, 5,397; and outpatient visits, 399,337. Our System's workforce included 11,215 employees. Each of UHS' hospitals operates an emergency room, which is open 24 hours a day. PCMH also offers a full spectrum of trauma services. Emergent and trauma services are provided to patients without regard to their ability to pay. In fiscal year 2010 UHS provided care to 194,408 emergency room patients. UHS and PCMH have the same governing board, which is comprised of 20 voting members that meet monthly. The Board of Commissioners of Pitt County appoints 11 members, and 9 members are appointed by the Board of Governors of the University of North Carolina. The board members have diverse backgrounds and are selected to represent the citizens of eastern Carolina. PCMH, in affiliation with the Brody School of Medicine, which is owned by the State of North Carolina, operates 30 resident-training programs with over 340 medical residents. This relationship enables PCMH and the Brody School of Medicine to combine their resources for the provision of quality patient care, medical education and research for the residents of eastern North Carolina. The Brody School of Medicine has three important goals: educating primary care physicians, making medical care more readily available to the people of eastern North Carolina, and providing opportunities to minority and disadvantaged students. As a non-profit organization, UHS reinvests all excess of revenues over expenses in programs, services, and facilities that provide access to patient care and health services to the citizens of eastern Carolina. Overview of University Health Systems of Eastern Carolina Community Benefit Programs 1. Eastern North Carolina is comprised of 1.3 million people living in 14,000 square miles. Boundaries are from I-95 East to the coast, and from the Virginia line up to and including Onslow County. The area is largely rural and largely poor, with higher than state or national average rates for poverty and uninsured. Health status indicators show increased incidence of disease in the region, especially cancer, heart disease and stroke. UHS determines priorities for target populations by working in concert with medical and community agency partners in ongoing assessment of the most pressing health care needs. Many efforts over the past decade have focused on diabetes, pediatric asthma, school health, injury prevention, access to care, nutrition enhancement, physical activities and chronic disease screenings. Also, special programs to manage the care of Medicaid enrollees, address access to both medical care and medications for the uninsured, and coordination of services for Children with obesity have been undertaken. The populations that are served by addressing these issues are largely the poor, the underserved, and minorities. Determination of specific populations to address occurs when partners such as the North Carolina Department of Health and Human Services, local health departments, county Healthy Carolinian task forces, and physicians identify a quantifiable need, and community partners are engaged to work together with the health system. 2. Funding for community health programs is obtained from both the operating funds of UHS entities and external grant-awarding organizations. The UHS Board annually provides financial support for the Community Benefit Initiatives program of its foundation. These funds are then awarded to community agencies that successfully demonstrate both need and a well-designed plan to address one of the Foundation's priority categories. In addition, each UHS hospital financially supports community health resources within its operating budget. Programs vary according to the hospital's financial ability and community need, but all include collaborative efforts with local health departments, including health screenings and education to targeted populations. UHS also has a successful track record of obtaining community health program support from external agencies that award grant funding to approved projects. The UHS Grants Office was established in 2008 and serves as the central point for grant mining, acquisition and management of grants awarded to UHS hospitals for community-based programs. Grant funds are utilized to demonstrate the effectiveness of a proposed community program, measure the outcomes achieved, and garner long-term sustainability from either the health system, other community agencies or as a collaborative program. Many community health programs are collaborative in nature with local service agencies, and often a portion of the grant funds are used to support resources or services in these agencies. 3. Community health priorities are determined in several ways. In partnership with the local health departments, the results of state-mandated community health assessments are studied by each local Healthy Carolinians task force. Those task force groups then compile a list of the most pressing issues in their communities based on data community input. Both established resources within various agencies and potential opportunities to garner new support are reviewed.</Explanation>
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        <Explanation>4. Community priorities are also established in response to a compelling need identified by health practitioners or community groups. Examples include the pediatric asthma program that has been in place for over 10 years in Pitt County, and expanded to other communities in the region. This major community-based program was established following a plea for assistance by pediatricians and pediatric clinical nurse specialists caring for children with asthma in the acute care setting. The Pitt County School System and local parents identified a lack of health care support in the schools, resulting in an award-winning school nurse program that has been replicated in several counties. Most recently, the focused attention on pediatric obesity and associated diseases has resulted in multiple community-based programs directed at improving nutrition, physical activity, and case management for that population. UHS is fortunate to have a strong collaborative partnership with East Carolina University, and works closely with the schools within the Health Sciences Division, especially the Brody School of Medicine. BSOM is an active participant in almost every community health initiative, supporting the research and evaluation of these programs, and contributes to programs for the under and uninsured in multiple ways. ECU and other educational institutions whose students matriculate through UHS facilities also provide opportunities for collaboration and participation in various community health initiatives. 5. Provided below are a few highlights of the community benefit and education activities: a. Community Health Improvement Services - Community health improvement services are programs and services that meet an identified need and are offered to the community at little or no charge. UHS hospitals sponsor programs that improve access to health care for the underserved and enhance the identification and management of chronic diseases, such as cancer, diabetes and heart disease. Here are a few examples of these programs: -Medication assistance programs for uninsured patients -The Pediatric Healthy Weight Program -Support for Health Carolinians collaboratives, including Pitt Partners for Health, the Hertford Partnership for Health and Three Rivers Healthy Carolinians -School nurse programs -Support for the Community Care Plan of Eastern Carolina for Medicaid recipients and HealthAssist for the uninsured -Support of local Federally Qualified Health Center b. Health Professional Education - Preparing future health care professionals is important to us. Our hospitals provide clinical settings for students of health professions, such as future physicians, nurses and other allied health professionals. We also support students through deferred forgivable loans and internships including resident training, nursing clinic sites, allied health professionals, and financial support of nursing programs. c. Research - East Carolina University (ECU) conducts research to evaluate new treatments and protocols. These studies help health professionals everywhere provide quality care to patients. UHS supports this through various means including supporting the Institutional Review Board at ECU and providing study sites. d. Financial and In-Kind Contributions - UHS donates money and in-kind services to community groups and activities that share our mission of improving health. They include Meals on Wheels, American Red Cross blood drives, medical supplies to emergency medical services, and free medications to qualifying patients. UHS hospitals are key partners in fundraising for organizations such as the United Way, American Heart Association, Juvenile Diabetes Association and the American Cancer Society. UHS contributed $1.6 million to the Community Benefits Grants Program which awards grants to local non-profits for health related programs. e. Community Building - Community-building activities include programs that are not directly related to health care but address underlying issues that impact the health of communities. Poverty, crime, homelessness, workforce development and economic development all affect the overall health of communities. UHS has provided support for our local Chambers of Commerce, financial support for road improvements, investments in communication infrastructure via information technology connections, support for the Teen leadership Academy, recruitment of physicians to our rural communities, and programs that encourage students to pursue health careers.</Explanation>
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        <TransactionType>B</TransactionType>
        <AmountInvolved>75933342</AmountInvolved>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>Pitt County Memorial Hospital Inc</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>I</TransactionType>
        <AmountInvolved>7521</AmountInvolved>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>Pitt County Memorial Hospital Inc</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>K</TransactionType>
        <AmountInvolved>49846832</AmountInvolved>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>Pitt County Memorial Hospital Inc</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>L</TransactionType>
        <AmountInvolved>828422</AmountInvolved>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>Pitt County Memorial Hospital Inc</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>N</TransactionType>
        <AmountInvolved>3279</AmountInvolved>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>Pitt County Memorial Hospital Inc</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>N</TransactionType>
        <AmountInvolved>251</AmountInvolved>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>Pitt County Memorial Hospital Inc</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>O</TransactionType>
        <AmountInvolved>70543</AmountInvolved>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>Pitt County Memorial Hospital Inc</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>P</TransactionType>
        <AmountInvolved>8520521</AmountInvolved>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>Pitt County Memorial Hospital Inc</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>Q</TransactionType>
        <AmountInvolved>11695492</AmountInvolved>
      </TransactionsRelatedOrgsTable>
    </IRS990ScheduleR>
  </ReturnData>
</Return>