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        <ReturnReference>Description of Uncertain Tax Positions Under FIN 48:</ReturnReference>
        <Explanation>In July 2006, the FASB issued Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109, codified in FASB ASC Topic 740 ("ASC 740"). This standard clarifies the accounting for uncertainty in income taxes recognized in a company's financial statements and prescribes a recognition threshold and measurement attribute for tax positions taken or expected to be taken on a tax return including the entity's status as a tax-exempt not-for-profit entity. Additionally, ASC 740 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Hospital adopted this standard effective July 1, 2009. The Hospital had no significant uncertain tax positions at the date of adoption or at June 30, 2010. Accordingly, the adoption did not have a material effect on the Hospital's financial position or changes in net assets. If interest and penalties are incurred related to uncertain tax positions, such amounts would be recognized in income tax expense. Tax periods for all fiscal years after 2006 remain open to examination by the federal and state taxing jurisdictions to which the Hospital is subject.</Explanation>
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      <TotalCommunityBenefits>
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        <NetCommunityBuildingExpense>33119</NetCommunityBuildingExpense>
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        <TotalCommunityBuildingExpense>33119</TotalCommunityBuildingExpense>
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      <BadDebtExpenseReported>1</BadDebtExpenseReported>
      <BadDebtExpenseAmount>557983</BadDebtExpenseAmount>
      <AmountAttributableTo>50442</AmountAttributableTo>
      <AmountReimbursedByMedicare>10727786</AmountReimbursedByMedicare>
      <CostOfCareReimbursedByMedicare>12520535</CostOfCareReimbursedByMedicare>
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      <CostingMethodologyUsed>
        <CostToChargeRatio>X</CostToChargeRatio>
      </CostingMethodologyUsed>
      <WrittenDebtCollectionPolicy>1</WrittenDebtCollectionPolicy>
      <ProvisionForCharityCare>1</ProvisionForCharityCare>
      <Form990ScheduleHPartIV>
        <NameOfEntity>
          <BusinessNameLine1>SELECT PHYSICIAN MANAGEMENT SERVICES INC</BusinessNameLine1>
        </NameOfEntity>
        <DescriptionEntPrimaryActivity>DORMANT - PRIOR MANAGEMENT OF PHYSICIAN PRACTICES</DescriptionEntPrimaryActivity>
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      <Form990ScheduleHPartV>
        <Name>
          <BusinessNameLine1>MISSISSIPPI METHODIST REHAB CENTER INC</BusinessNameLine1>
        </Name>
        <Address>
          <AddressLine1>1350 EAST WOODROW WILSON</AddressLine1>
          <City>JACKSON</City>
          <State>MS</State>
          <ZIPCode>39216</ZIPCode>
        </Address>
        <LicensedHospital>X</LicensedHospital>
        <Other>ACUTE REHAB</Other>
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      <Form990ScheduleHPartVI>
        <IncomeBasedCriteria>Part I, Line 3c: METHODIST REHABILITATION utilizeS the FPG 150% or less to determine "free care to low income individuals" however discounted care does not utilize the FPG. METHODIST REHABILITATION DOES provide a private pay 30% discount and monthly payment plans.</IncomeBasedCriteria>
        <CostingMethodUsed>Part I, Line 7: THE COSTING METHODOLOGY UTILIZED WAS THE COST-TO-CHARGE RATIO AS DERIVED FROM WORKSHEET 2, RATIO OF PATIENT CARE COST-TO-CHARGES.</CostingMethodUsed>
        <BadDebtFootnote>Part III, Line 4: THE HOSPITAL OFTEN ADMITS A NUMBER OF PATIENTS WITH THE EXPECTATION/REALIZATION THAT IT WILL LIKELY BE UNABLE TO COLLECT A SIGNIFICANT PORTION OF THESE ACCOUNTS. CHARGES DEEMED UNCOLLECTIBLE DURING 2010 WERE APPROXIMATELY $893,000.THE COSTING METHODOLOGY WORKSHEET 2, RATIO OF PATIENT CARE COST-TO-CHARGE, WAS USED TO DETERMINE THE AMOUNT OF BAD DEBT EXPENSE REPORTED ON LINE 2 OF PART III.</BadDebtFootnote>
        <ShortfallAsCommunityBenefit>Part III, Line 8: WE CONSIDER OUR SHORTFALL A COMMUNITY BENEFIT BECAUSE WE ARE THE ONLY FREE STANDING PHYSICAL MEDICINE AND REHABILITATION PROVIDER IN THE STATE, AND WE SERVE THE MOST SEVERE BRAIN, SPINAL, AND STROKE PATIENTS THROUGHOUT OUR SERVICE AREA.THE COSTING METHODOLOGY WORKSHEET 2, RATIO OF PATIENT CARE COST-TO-CHARGE, WAS USED TO DETERMINE THE AMOUNT OF MEDICARE ALLOWABLE COSTS REPORTED ON LINE 6 OF PART III.</ShortfallAsCommunityBenefit>
        <DebtCollectionPolicy>Part III, Line 9b: WHEN A PATIENT QUALIFIES FOR CHARITY CARE (FINANCIAL ASSISTANCE), NO COLLECTIONS ARE ATTEMPTED ON THESE PATIENTS. CHARGES ARE WRITTEN OFF.</DebtCollectionPolicy>
        <GeneralExplanation>PART I, QUESTION 7(b) UNREIMBURSED MEDICAID-LONG-TERM CARE SERVICES RENDERED TO MEDICAID PROGRAM BENEFICIARIES ARE REIMBURSED USING A COST-BASED METHOD. CERTAIN LIMITS APPLY TO COMPONENTS AND MAY CHANGE IN THE FUTURE DEPENDENT UPON OTHER SIMILAR PROVIDERS OPENING IN THE STATE OF MISSISSIPPI. MEDICAID IMPOSED ADDITIONAL LIMITS TO THE REIMBURSEMENT RATE EFFECTIVE JANUARY 1, 2007, WHICH THE HOSPITAL APPEALED TO THE SUPREME COURT OF MISSISSIPPI. ON SEPTEMBER 24, 2009, THE SUPREME COURT RULED IN FAVOR OF THE HOSPITAL AND DETERMINED THE APPLICATION OF THE CEILING BY THE DEPARTMENT OF MEDICAID TO BE NULL AND VOID AS IT WAS IMPROPER AND IN VIOLATION OF THE APPLICABLE STATUTES. A REQUEST FOR RECONSIDERATION WAS FILED BY THE DEPARTMENT OF MEDICAID, WHICH WAS DENIED ON DECEMBER 3, 2009, AND THE DEPARTMENT OF MEDICAID WAS MANDATED TO REIMBURSE THE HOSPITAL. DURING FISCAL YEAR 2010, THE HOSPITAL WAS REIMBURSED $10,316,938 FOR THE DIFFERENCE BETWEEN THE CEILING AND ACTUAL COST.OF THE $10,316,938 SETTLEMENT PAYMENT RECEIVED, $9,151,432 RELATED TO PRIOR YEARS. NET COMMUNITY BENEFIT EXPENSE FOR 6/30/10, WITHOUT PRIOR YEAR PAYMENTS, IS $2,599,906.</GeneralExplanation>
        <NeedsAssessment>Part VI, Line 2: THE HEALTH CARE NEEDS OF THE COMMUNITIES SERVED ARE ASSESSED BY RESEARCHING VITAL STATISTICS FOUND THROUGH THE CDC AND MISSISSIPPI DEPARTMENT OF HEALTH.</NeedsAssessment>
        <PatientEducationAssistance>Part VI, Line 3: WHEN POSSIBLE, CHARITY CARE IS IDENTIFIED AND APPROVED BEFORE INITIAL ADMISSION. WE PROVIDE SOCIAL WORKERS AND OUTREACH NURSES THAT INTERVIEW PATIENTS REGARDING THEIR FINANCIAL RESOURCES AND NEEDS. WE ASSIST PATIENTS IN COMPLETING MEDICAID, VR APPLICATIONS WHEN APPLICABLE. WE ARE WELL AWARE THAT MOST OF OUR PATIENTS WILL REQUIRE A LIFETIME OF MEDICAL AND FINANCIAL SUPPORT DUE TO THE SEVERITY OF THEIR INJURIES. THEREFORE, WE ALSO ASSIST IN DISABILITY APPLICATIONS WITH THE SOCIAL SECURITY ADMINISTRATION.</PatientEducationAssistance>
        <CommunityInformation>Part VI, Line 4: OUR ORGANIZATION'S PRIMARY SERVICE AREA IS THE STATE OF MISSISSIPPI, WITH A POPULATION OF 2.9 MILLION PERSONS. THE PERCENTAGE OF ADULTS WITH DISABILITIES LIVING IN MS IS 16.7%. MISSISSIPPI ALSO HAS THE HIGHEST PERCENTAGE OF PERSONS LIVING IN POVERTY AND OBESITY, POPULATIONS THAT ARE DISPROPORTIONATELY AFFECTED BY DISABLING ILLNESSES AND INJURIES.</CommunityInformation>
        <CommunityBuildingActivities>Part VI, Line 5: MRC SPONSORED THREE HUD SECTION 811 PROJECTS TO BUILD ACCESSIBLE HOUSING APARTMENT COMPLEXES IN JACKSON, HATTIESBURG, AND MERIDIAN, MISSISSIPPI. THESE COMPLEXES WERE SPECIALLY DESIGNED FOR LOW-INCOME PEOPLE WITH MOBILITY IMPAIRMENTS.</CommunityBuildingActivities>
        <OtherInformation>Part VI, Line 6: METHODIST REHABILITATION CENTER'S COMMUNITY BENEFITS GO WELL BEYOND CLINICAL INPATIENT AND OUTPATIENT REHABILITATION CARE. THE CENTER SUPPORTS LIFELONG HEALTH AND LIFESTYLE NEEDS OF DISABLED PERSONS THROUGH RESEARCH, EDUCATION, OUTREACH PROGRAMS, PARTNERSHIPS, ADVOCACY, VOLUNTEERISM AND FINANCIAL SUPPORT. OUR FULL COMMUNITY BENEFIT REPORT IS MADE AVAILABLE TO THE PUBLIC ON THE ORGANIZATION'S WEBSITE www.methodistonline.org/news/publications AND IN PRINT UPON REQUEST.</OtherInformation>
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          <BusinessNameLine1>WILSON RESEARCH FOUNDATION</BusinessNameLine1>
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          <AddressLine1>1350 E WOODROW WILSON</AddressLine1>
          <City>JACKSON</City>
          <State>MS</State>
          <ZIPCode>39216</ZIPCode>
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        <EINOfRecipient>640752440</EINOfRecipient>
        <IRCSection>501(c)(3)</IRCSection>
        <AmountOfCashGrant>8000</AmountOfCashGrant>
        <PurposeOfGrant>CONTRIBUTION OF GIFT SHOP'S NET MARGIN ON BEHALF OF VOLUNTEERS</PurposeOfGrant>
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        <ReturnReference>Part I, Line 2:</ReturnReference>
        <Explanation>Schedule I, Part I, Line 2: METHODIST REHABILITATION ONLY DONATES TO NON-PROFIT COMMUNITY MINDED ORGANIZATIONS THAT PROVIDE SUPPORT TO THE COMMUNITY SERVED BY METHODIST REHABILITATION.</Explanation>
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        </NameOfInterestedPerson>
        <Relationship>BOARD TRUSTEE</Relationship>
        <AmountOfTransaction>0</AmountOfTransaction>
        <DescriptionOfTransaction>RAY IS PRES/CEO OF BANKPLUS. BANKPLUS PROVIDES FINANCIAL ADVICE ON THE RETIREMENT ACCOUNT FOR MMRC IN ITS ORDINARY COURSE OF BUSINESS.</DescriptionOfTransaction>
        <SharingOfRevenues>0</SharingOfRevenues>
      </Form990ScheduleLPartIV>
      <Form990ScheduleLPartIV>
        <NameOfInterestedPerson>
          <NamePerson>TISH HUGHES</NamePerson>
        </NameOfInterestedPerson>
        <Relationship>BOARD TRUSTEE</Relationship>
        <AmountOfTransaction>0</AmountOfTransaction>
        <DescriptionOfTransaction>HUGHES IS SR VP IN PRIVATE BANKING WITH TRUSTMARK BANK. MMRC HAS SOME INVESTMENTS HELD BY TRUSTMARK, AS WELL AS A LINE OF CREDIT IN THE ORDINARY COURSE OF THEIR BUSINESS.</DescriptionOfTransaction>
        <SharingOfRevenues>0</SharingOfRevenues>
      </Form990ScheduleLPartIV>
    </IRS990ScheduleL>
    <IRS990ScheduleO documentId="RetDoc1044400001">
      <GeneralExplanation>
        <Identifier>Form 990, Part VI, Section B, line 11</Identifier>
        <Explanation>THE CONTROLLER AND CFO ARE RESPONSIBLE FOR PREPARATION OF THE 990. THEY UTILIZE A CPA FIRM TO COMPLETE THE FORM. THE PRESIDENT AND CEO REVIEW, SCRUTINIZE, AND ULTIMATELY APPROVE THE FORM 990 FOR FILING. CEO REVIEWS THE COMPLETED FORM 990 WITH THE CHAIRMAN OF THE BOARD.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Form 990, Part VI, Section B, line 12c</Identifier>
        <Explanation>AS THE BOARD CONSIDERS ITS BUSINESS RELATIONSHIPS, CONTRACT APPROVALS AND OTHER TRANSACTIONS, THE PRESENCE OF OR ANY POTENTIAL CONFLICT OF INTEREST (AS DEFINED BY THE BYLAWS) IS DISCLOSED AND DISCUSSED. A CONFLICT OF INTEREST TRANSACTION MAY BE APPROVED OR AUTHORIZED ONLY BY THE AFFIRMATIVE VOTE OF A MAJORITY OF THE BOARD OF TRUSTEES WHO HAVE NO DIRECT OR INDIRECT INTEREST IN THE TRANSACTION. IN MATTERS WHERE A BOARD MEMBER HAS A CONFLICT OF INTEREST, THE BOARD MEMBER IS RECUSED FROM DISCUSSION AND VOTING.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Form 990, Part VI, Section B, line 15</Identifier>
        <Explanation>EXECUTIVE COMPENSATION FOR METHODIST REHABILITATION CENTER (MRC) IS: -OVERSEEN BY THE PERSONNEL COMMITTEE OF THE BOARD OF TRUSTEES THAT IS DESIGNATED FOR THIS PURPOSE, THAT IS INDEPENDENT OF CONFLICTS OF INTERESTS, AND THAT FOLLOWS THE HIGHEST ETHICAL STANDARDS AND BUSINESS PRACTICES -ALIGNED TO ORGANIZATIONAL PERFORMANCE -GUIDED BY INDEPENDENT COUNSEL WITH EXPERTISE IN EXECUTIVE COMPENSATION TO ENSURE THAT MRC IS COMPARABLE TO TRENDS AND PRACTICES OF SIMILAR SIZED NOT-FOR-PROFIT HOSPITALS EXECUTIVE COMPENSATION IS A GOVERNANCE RESPONSIBILITY OF THE BOARD OF TRUSTEES THAT IS FREE FROM MANAGEMENT INFLUENCE. IT SETS THE TONE FOR THE ENTIRE ORGANIZATION AND REFLECTS ITS VALUES. EMPLOYMENT OF AN INDEPENDENT CONSULTANT WITH EXPERTISE IN HEALTHCARE EXECUTIVE COMPENSATION, IS AN IMPORTANT CONTROL TO ENSURE A WELL DESIGNED, FAIRLY IMPLEMENTED AND TRANSPARENT PROGRAM. METHODIST REHABILITATION CENTER'S EXECUTIVE COMPENSATION DETERMINATION PROCESS: -THE BOARD CHARTERS AN INDEPENDENT COMMITTEE (PERSONNEL COMMITTEE) -THE PERSONNEL COMMITTEE, AS NEEDED, HIRES AND DIRECTLY SUPERVISES THE WORK OF THE CONSULTANT -THE PERSONNEL COMMITTEE HAS A TOTAL COMPENSATION PHILOSOPHY (PAY AND BENEFITS) -THE CONSULTANT IS INDEPENDENT AND USES APPROPRIATE DATA FOR ANALYSIS AND COMPARISON. WHEN A CONSULTANT IS NOT NECESSARY, OBJECTIVE COMPENSATION DATA IS PURCHASED AND UTILIZED IN THE DECISION. -THE PERSONNEL COMMITTEE MAKES DETERMINATIONS IN EXECUTIVE SESSION -THE PERSONNEL COMMITTEE MINUTES REFLECT THE DECISION-MAKING PROCESS -ALL APPROPRIATE TAX FORMS ARE FULLY COMPLETED AND SUBMITTED</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Form 990, Part VI, Section C, line 19</Identifier>
        <Explanation>METHODIST REHABILITATION MAKES THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, OR FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>FORM 990, PART XI, LINE 2C</Identifier>
        <ReturnReference>AUDIT COMMITTEE</ReturnReference>
        <Explanation>audit COMMITTEE'S PROCESS FOR AUDIT OVERSIGHT AND SELECTION OF INDEPENDENT ACCOUNTANT HAS NOT CHANGED FROM PRIOR YEAR.</Explanation>
      </GeneralExplanation>
    </IRS990ScheduleO>
    <IRS990ScheduleR documentId="RetDoc1043400001">
      <Form990ScheduleRPartI>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>PAIN MANAGEMENT CENTER LLC</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>1350 EAST WOODROW WILSON DRIVE</AddressLine1>
          <City>JACKSON</City>
          <State>MS</State>
          <ZIPCode>39216</ZIPCode>
        </AddressUS>
        <EIN>721367775</EIN>
        <PrimaryActivities>COMPREHENSIVE PAIN MANAGEMENT SERVICES</PrimaryActivities>
        <LegalDomicileState>MS</LegalDomicileState>
      </Form990ScheduleRPartI>
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>THE WILSON RESEARCH FOUNDATION</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>1350 EAST WOODROW WILSON DRIVE</AddressLine1>
          <City>JACKSON</City>
          <State>MS</State>
          <ZIPCode>39216</ZIPCode>
        </AddressUS>
        <EIN>640752440</EIN>
        <PrimaryActivities>TO SUPPORT MISSISSIPPI METHODIST HOSPITAL AND REHABILITATION CENTER</PrimaryActivities>
        <LegalDomicileState>MS</LegalDomicileState>
        <ExemptCodeSection>501(c)(3)</ExemptCodeSection>
        <PublicCharityStatus>509(a)(3) TYPE II</PublicCharityStatus>
      </Form990ScheduleRPartII>
      <Form990ScheduleRPartIV>
        <NameOfRelatedOrg>
          <BusinessNameLine1>SELECT PHYSICIAN MANAGEMENT SERVICES INC</BusinessNameLine1>
        </NameOfRelatedOrg>
        <AddressUS>
          <AddressLine1>1350 EAST WOODROW WILSON DRIVE</AddressLine1>
          <City>JACKSON</City>
          <State>MS</State>
          <ZIPCode>39216</ZIPCode>
        </AddressUS>
        <EIN>640808219</EIN>
        <PrimaryActivity>PHYSICIAN PRACTICE MANAGEMENT SERVICES</PrimaryActivity>
        <LegalDomicileState>MS</LegalDomicileState>
        <TypeOfEntity>C</TypeOfEntity>
        <ShareOfEOYAssets>1652</ShareOfEOYAssets>
        <PercentageOwnership>1.00000</PercentageOwnership>
      </Form990ScheduleRPartIV>
      <ReceiptOfIntAnnRentsRoyalties>0</ReceiptOfIntAnnRentsRoyalties>
      <GiftGrantOrCapContrToOtherOrg>1</GiftGrantOrCapContrToOtherOrg>
      <GiftGrantOrCapContrFrOtherOrg>1</GiftGrantOrCapContrFrOtherOrg>
      <LoansOrGuaranteesToOtherOrg>0</LoansOrGuaranteesToOtherOrg>
      <LoansOrGuaranteesFromOtherOrg>0</LoansOrGuaranteesFromOtherOrg>
      <SaleOfAssetsToOtherOrg>0</SaleOfAssetsToOtherOrg>
      <PurchaseOfAssetsFromOtherOrg>0</PurchaseOfAssetsFromOtherOrg>
      <ExchangeOfAssets>0</ExchangeOfAssets>
      <RentalOfFacilitiesToOtherOrgs>1</RentalOfFacilitiesToOtherOrgs>
      <RentalOfFacilitiesFrOtherOrgs>0</RentalOfFacilitiesFrOtherOrgs>
      <PerformOfServicesForOtherOrgs>0</PerformOfServicesForOtherOrgs>
      <PerformOfServicesByOtherOrgs>0</PerformOfServicesByOtherOrgs>
      <SharingOfFacilities>0</SharingOfFacilities>
      <SharingOfPaidEmployees>1</SharingOfPaidEmployees>
      <ReimbursementPaidToOtherOrg>0</ReimbursementPaidToOtherOrg>
      <ReimbursementPaidByOtherOrg>1</ReimbursementPaidByOtherOrg>
      <OtherTransferToOtherOrg>0</OtherTransferToOtherOrg>
      <OtherTransferFromOtherOrg>0</OtherTransferFromOtherOrg>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>THE WILSON RESEARCH FOUNDATION</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>B</TransactionType>
        <AmountInvolved>8000</AmountInvolved>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>THE WILSON RESEARCH FOUNDATION</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>C</TransactionType>
        <AmountInvolved>4500</AmountInvolved>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>THE WILSON RESEARCH FOUNDATION</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>P</TransactionType>
        <AmountInvolved>138686</AmountInvolved>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>THE WILSON RESEARCH FOUNDATION</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>N</TransactionType>
        <AmountInvolved>86159</AmountInvolved>
      </TransactionsRelatedOrgsTable>
    </IRS990ScheduleR>
  </ReturnData>
</Return>