Form990
Click to see attachment
Department of the Treasury
Internal Revenue Service
Return of Organization Exempt From Income Tax
Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except black lung benefit trust or private foundation)

MediumBullet The organization may have to use a copy of this return to satisfy state reporting requirements.
OMB No. 1545-0047
2010
Open to Public Inspection
A For the calendar year, or tax year beginning 01-01-2010 and ending 12-31-2010
BCheck if applicable:
CName of organization
INOVA HEALTH CARE SERVICES
 
Doing Business As
 
 
Number and street (or P.O. box if mail is not delivered to street address)
8110 GATEHOUSE ROAD SUITE 400W
 
Room/suite
City or town, state or country, and ZIP + 4
FALLS CHURCH, VA22042
D Employer identification number

54-0620889
E Telephone number

G Gross receipts $ 1,643,413,444
F Name and address of principal officer:
J Knox Singleton
8110 GATEHOUSE ROAD SUITE 400W
FALLS CHURCH,VA22042
I
Tax-exempt status: (   ) LeftBullet (insert no.) or
J
Website:MediumBullet
INOVA.ORG
H(a)
Is this a group return for
affiliates?
H(b)
Are all affiliates included?
If "No," attach a list. (see instructions)
H(c)
Group exemption number MediumBullet  
K Form of organization:
 
L Year of formation: 1956
M State of legal domicile: VA
Part I
Summary
Activities & Governance 1 Briefly describe the organization’s mission or most significant activities: Inova Health Care Services (IHCS)mission is to maintain and operate hospitals and perform other activities dedicated to providing quality care and improving the health of the diverse communities it serves. To achieve this goal, Inova works in partnership with other organizations, spearheading numerous community health improvement projects.
2 Check this box MediumBullet
3 Number of voting members of the governing body (Part VI, line 1a) .... 3 30
4 Number of independent voting members of the governing body (Part VI, line 1b) .... 4 21
5 Total number of individuals employed in calendar year 2010 (Part V, line 2a) ... 5 12,925
6 Total number of volunteers (estimate if necessary) .... 6 1,824
7a Total unrelated business revenue from Part VIII, column (C), line 12 .. 7a 7,245,638
b Net unrelated business taxable income from Form 990-T, line 34 .. 7b 0
Revenues; Prior Year Current Year
8 Contributions and grants (Part VIII, line 1h) ......... 12,334,030 12,713,325
9 Program service revenue (Part VIII, line 2g) ......... 1,530,579,746 1,567,871,629
10 Investment income (Part VIII, column (A), lines 3, 4, and 7d ) .... 75,841,362 -10,518,052
11 Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e) 44,879,013 46,234,214
12 Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)................... 1,663,634,151 1,616,301,116
Expenses; 13 Grants and similar amounts paid (Part IX, column (A), lines 1–3 )... 0 0
14 Benefits paid to or for members (Part IX, column (A), line 4) .... 0 0
15 Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10) 769,419,432 798,033,934
16a Professional fundraising fees (Part IX, column (A), line 11e).... 0 0
b Total fundraising expenses (Part IX, column (D), line 25) MediumBullet0    
17 Other expenses (Part IX, column (A), lines 11a–11d, 11f–24f).... 693,977,921 681,198,101
18 Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25) 1,463,397,353 1,479,232,035
19 Revenue less expenses. Subtract line 18 from line 12...... 200,236,798 137,069,081
Net Assets or Fund Balances; Beginning of Current Year End of Year
20 Total assets (Part X, line 16)............ 2,391,147,426 2,583,973,333
21 Total liabilities (Part X, line 26)............ 1,394,624,787 1,456,032,393
22 Net assets or fund balances. Subtract line 21 from line 20 ..... 996,522,639 1,127,940,940
Part II
Signature Block
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than officer) is based on all information of which preparer has any knowledge.
Sign Here
JumboBullet
Signature of officer Date
JumboBullet
Type or print name and title.
Paid Preparer's Use Only Preparer's
signatureBig Right Arrow 		Date
right pointing bullet image Preparer’s taxpayer identification number
(see instructions)
Firm’s name (or yours
if self-employed),
address, and ZIP + 4Big Right Arrow




 		EIN right pointing bullet image
Phone no. right pointing bullet image
May the IRS discuss this return with the preparer shown above? (see instructions) .........
For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions.
Cat. No. 11282Y
Form 990 (2010)
Form 990 (2010)
Page 2
Part III
Statement of Program Service Accomplishments
Check if Schedule O contains a response to any question in this Part III . . . . . . . . . .
1
Briefly describe the organization’s mission: IHCS was specifically chartered for the purpose of serving the health care needs of the community by establishing, maintaining, and operating hospital facilities, programs and other shared service arrangements, carrying on health-related education activities, promoting and carrying on health-related scientific research; and engaging in activities designed and carried on to promote the general health of the diverse community served. IHCS includes a centralized system office and various unincorporated and incorporated subsidiaries. The unincorporated subsidiaries of IHCS include Fairfax Hospital, Mount Vernon Hospital, Fair Oaks Hospital, Emergency Care Center of Reston, Emergency Care Center of Fairfax, and Springfield Healthplex. The Institute of Research and Education is operated as a program of IHCS.
2
Did the organization undertake any significant program services during the year which were not listed on
the prior Form 990 or 990-EZ? ....................
If “Yes,” describe these new services on Schedule O.
3
Did the organization cease conducting, or make significant changes in how it conducts, any program services? ..........................
If “Yes,” describe these changes on Schedule O.
4
Describe the exempt purpose achievements for each of the organization’s three largest program services by expenses.
Section 501(c)(3) and 501(c)(4) organizations and section 4947(a)(1) trusts are required to report the amount of grants and allocations to others, the total expenses, and revenue, if any, for each program service reported.
4a (Code:   ) (Expenses $ 1,253,276,662 including grants of $ 9,066,437 ) (Revenue $ 1,604,475,396 )
Inova Health Care Services (IHCS) is part of the Inova Health System whose mission is to serve the community as a not-for-profit organization through the provision of a full spectrum of high quality and accessible healthcare services. IHCS was specifically chartered for the purpose of serving the health care needs of the community by establishing, maintaining, and operating hospital facilities, programs, and other shared service arrangements; carrying on health-related education activities; promoting and carrying on health-related scientific research; and engaging in activities designed and carried on to promote the general health of the community. IHCS includes a centralized System Office and the various unincorporated and incorporated subsidiaries which are described below.The unincorporated subsidiaries of IHCS include: Inova Fairfax Hospital, Inova Mount Vernon Hospital, Inova Fair Oaks Hospital, Emergency Care Center of Reston, Emergency Care Center of Fairfax, Springfield Healthplex and the Inova Research Center. PROGRAM SERVICESAcute care services are provided on three campuses in Fairfax County, Virginia. Services provided include emergency and trauma facilities, inpatient and outpatient services, and a variety of ancillary and specialized services based on the needs of the community. During 2010, IHCS admissions and observations cases totaled approximately 87,000, outpatient visits totaled approximately 387,000, emergency visits totaled approximately 245,000 and deliveries totaled approximately 14,000. The acute care program services provided by these hospitals are described more fully below.Inova Fairfax Hospital (IFH) is an 833-licensed bed tertiary care hospital providing comprehensive medical and surgical services which include emergency/trauma, cardiac, transplant, cancer, obstetric, pediatric, neonatal, stroke and extensive outpatient services. The IFH campus includes the Inova Heart and Vascular Institute, Inova Women's Hospital, and Inova Fairfax Hospital for Children, operating as divisions of IFH. The campus is located in central Fairfax County and services the surrounding community. IFH is the home of northern Virginia's only level one emergency and trauma center and the state-of-the-art Women's and Children's Center. IFH is a teaching hospital providing clinical training through its medical residency, nursing, and paramedical education programs. In 2010, Inova Heart and Vascular Institute (IHVI) earned the Joint Commission's Gold Seal of Approval for treatment of heart attack patients by demonstrating compliance with national standards for healthcare quality and safety. The IHVI at IFH earned Advanced Certification in Heart Failure from the Joint Commission for its exceptional efforts to foster better quality of care and outcomes for heart failure patients. In addition, IFH's Joint Replacement Surgery Program was awarded the Joint Commission's Gold Seal of Approval for healthcare quality. For the fourth year in a row, IFH was named one of America's 50 Best Hospitals by independent quality ratings firm HealthGrades, Inc.Inova Mount Vernon Hospital (IMVH) is a 237-licensed bed, acute-care hospital serving southeastern Fairfax County. IMVH provides a full-service, 24-hour emergency department; broad range of diagnostic, medical and surgical services; inpatient psychiatric services; the Dorothea R. Fischer Wound Healing Center and a specialized hyperbaric oxygen therapy program used to treat conditions requiring increased oxygen flow to body tissues (such as grafts and certain types of burns). In 2010, IMVH's Hyperbaric Oxygen Unit was granted a four-year accreditation with distinction from the Undersea and Hyperbaric Medicine Society, a recognition earned by less than 20 percent of accredited medical facilities in the country. The hospital operates the Inova Center for Rehabilitation, a nationally-known accredited program providing inpatient and outpatient rehabilitative services.Inova Fair Oaks Hospital (IFOH) is a 182-licensed bed general acute-care hospital, which opened in 1987 to serve the growing communities in western Fairfax County, Virginia. IFOH provides a full-service 24-hour emergency department; a spectrum of diagnostic services and treatment including full-body CT scanning, open MRI and radiation cancer services; inpatient medical and surgical services including the only inpatient pain management program in northern Virginia; obstetrics and pediatric services; and comprehensive outpatient services including outpatient surgery, physical medicine, wound care and rehabilitation. IFOH is home to a designated Bariatric Surgery Center of Excellence. In 2010, IFOH's Spine and Joint Replacement Surgery Program received the Joint Commission Gold Seal of Approval for healthcare quality. IHCS uses much of its surplus funds to improve the quality of patient care and expand its facilities. IHCS has recently invested significant capital in all three hospital facilities. IHCS is embarking on an $875 million facility development program at the IFH campus over the next four years. This program will expand existing services, renovate the existing patient tower and provide for a new and separate women's hospital facility. The IMVH will be investing in a $46 million expansion to create private rooms and upgrade facilities. Specific acute care programs include:Cardiovascular Care: The Inova Heart and Vascular Institute is the region's first dedicated heart hospital. Open since October 2004, it houses 156 inpatient beds, six cardiovascular operating rooms, 11-room cardiac catheterization and electrophysiology suite, chest pain unit, 64-slice CT scanner and other diagnostic testing, outpatient clinics, cardiac rehabilitation and educational facilities. Specialty programs include pediatric cardiac surgery, arterial fibrillation, valve disease and heart failure. In 2010, Inova Heart and Vascular Institute opened its one-of-a-kind hybrid operating room (OR), which includes technology that cannot be found anywhere else in the nation. This innovative OR features all the equipment necessary for cardiac surgeons, electrophysiologists and cardiologists to operate together on the same patient. It reduces surgical time and allows patients to recover more quickly, with fewer complications.Procedures that used to be performed in three separate areas are now consolidated in a single space. These include treatment of cardiac rhythm abnormalities, aortic valve replacement without the use of a heart-lung machine, and treatment for coronary artery blockages combining minimally invasive surgical techniques and catheter-based stenting. In 2010, a total of 26,962 patients were served by the IHCS cardiovascular program. Women's Health: The Womens Health services is the largest such program in the Mid-Atlantic region, providing services for approximately 14,000 births each year. Obstetric services provided include delivery services, high risk prenatal services, inpatient and outpatient obstetrics/gynecologic surgery, and regular and specialty nursery care. In addition, IFH provides obstetric services to low-income patients through the InovaCares Clinic for Women with 28,981 visits in 2010.Breast Care Institute: In 2009, the Inova Breast Care Institute at IFH and IFOH was the first in the DC region to earn a three-year accreditation in breast care from the National Accreditation Program for Breast Centers (NAPBC), part of the American College of Surgeons, which sets the standards for how breast cancer patients receive care. In 2010, the Inova Breast Care Institute at IMVH also earned this three-year accreditation.
4b (Code:   ) (Expenses $   including grants of $   ) (Revenue $   )
Research and Education Services: The Inova Research Center (IRC), including research and academic activities, is centered on the IFH campus. In 2005, the Inova campus of the Virginia Commonwealth University (VCU) School of Medicine opened and a total of 48 third and fourth year medical students now train (receive clinical experience) at IFH. Also located on the IFH campus is the VCU School of Pharmacy which offers the opportunity for 40 students to complete their education and clinical training in Northern Virginia, and recently graduated their first class of "Inova Campus students." Like the VCU Inova campus, the School of Pharmacy Inova Campus is the first branch campus of a pharmacy school to be established in Northern Virginia. In January 2008, the Claude Moore Health Education Center opened on the campus of IFH. The building features 11,000 square feet of modern space dedicated to the educational needs of medical and nursing students as well as residents and fellows. This state-of-the-art center includes both medical and surgical simulation centers, enabling students to learn through hands-on experience. In addition, the center offers high-tech information technology that allows students who travel or live outside of the region to receive a seamless medical education from anywhere in Virginia. In 2008, a dedicated research floor opened to support the extensive activities of the IRC, where there are numerous active clinical trials, ongoing translational research and outcomes projects, many in partnership with universities and other research entities. Inova Translational Medicine Institute In 2010 the Inova Translational Medicine Institute (ITMI) was created for research activities related to the innovative field of personalized medicine. Personalized medicine emphasizes the customization of healthcare through the use of genetic information. Understanding the genomic makeup of individual patients may well help prevent or manage their diseases. IFH's medical education programs offer a variety of clinical training objectives for medical residents and students, nursing and pharmacy. IFH's residency program has approximately 650 residents/fellows trained throughout the year and 374 medical students from various medical schools. IFH incurs various expenses associated with the medical education programs, including physician teaching costs and resident salaries, the cost of maintaining higher levels of technology required to support a teaching program and charges resulting from extra tests ordered for instructional purposes. Fairfax also provides a center for clinical education and development. The unreimbursed direct cost of these programs in 2010 was $17.8 million.
4c (Code:   ) (Expenses $   including grants of $   ) (Revenue $   )
(Code:   ) (Expenses $   including grants of $   ) (Revenue $   )
Each year, IHCS designates funds for the development and continuation of identified, accessible direct care programs and services benefiting those most in need in the community. Many of these programs and services are not billed to the patient or are provided at a fee structure below the actual cost of the service. In addition to providing the direct care subsidized service, Inova also provides disease-prevention programs, health and exercise classes, health education and health screenings and other programs within the community in support of the IHCS mission. In 2010, Inova provided nearly 200,000 people with health education, prevention and wellness programs, health fairs and screenings, and clinically related services resulting in over 342,000 visits for direct health care services at an unreimbursed cost of approximately $16.7 million. These services and programs are described below.InovaCares Clinic for WomenThe InovaCares Clinic for Women was created in 1960 to serve the uninsured women of Fairfax County, offering a wide range of OB/GYN services for those in need. InovaCares Clinic for Women is a service offered to the community in collaboration with the Fairfax County Health Department, serving uninsured and low-income patients up to 300% of the Federal Poverty Guidelines (FPL). The Clinic for Women provides comprehensive outpatient obstetrical services, gynecological care, diabetes management, case management, non-stress testing, LEEP and colposcopy procedures, cryosurgery, and nutritional counseling - all at little to no cost to the patient. In addition, the Clinic for Women runs a high risk obstetrics clinic and a gynecology clinic. In 2010, the InovaCares Clinic for women had 28,981 visits and a total of 2,987 deliveries at Inova Hospitals (2,496 at IFH, 111 at IFOH and 190 at IAH). The InovaCares Clinic for Women is co-located with InovaCares Clinic for Children.InovaCares Clinic for ChildrenThe Clinic for Children was created in 1993 as a response to the inability of new uninsured or Medicaid mothers to secure an affordable medical home for their children. The mission of the Clinic for Children is to provide a full service medical home for pediatric patients between zero and 21 years of age that reflect the cultural diversity of the community we serve. The Clinic for Children provides comprehensive pediatric services that include well-child care, immunizations, episodic care (sick visit), and school/sports physicals, immunizations, and nutritional counseling. The InovaCares Clinic for Children is co-located with the InovaCares Clinic for Women. To answer the growing demand for pediatric services in the Reston/Herndon region, InovaCares Clinic for Children opened a satellite clinic in June 2009 serving that area's uninsured and Medicaid population. In 2010, the InovaCares Clinics for Children provided 30,464 visits.Inova Juniper Program, HIV Clinical and Education ServicesInova Juniper Program (IJP) provides outpatient primary medical care, mental health therapy, substance abuse treatment, pharmaceutical assistance, nutritional counseling and medical case management services to more than 1,400 persons living with HIV disease in the Northern Virginia region. To maximize accessibility for clients, services are provided at the main location in Springfield, as well as five satellite offices (Dumfries, Manassas, Mt. Vernon, Arlington, and Reston), hospitals, homes and other community locations throughout the region. Clients receive care from a multidisciplinary care team with HIV-specific expertise. The clinical team is comprised of physicians, psychiatrists, pharmacists, physician assistants, nurse practitioners, registered nurses, clinical social workers, a community case manager, a consumer advocate and eligibility workers. Nurses and social workers provide medical case management services in order to coordinate care for clients with complex medical histories, mental health disorders and substance abuse issues. Major accomplishments of IJP for 2010 include almost doubling its census, now serving over 1,400 patients; maintaining a 0% HIV transmission rate from pregnant mothers to their newborn babies and implementing an onsite treatment program to screen and provide treatment to clients co-infected with HIV and Hepatitis C.Life with CancerThe mission of Life with Cancer (LWC) is to enhance the quality of life of those individuals in our community affected by cancer. The program addresses the specific needs of those affected by cancer by providing individual and family counseling, support groups, educational seminars, workshops on cancer diagnosis and treatment, and a full array of complementary therapies. Life with Cancer is generously supported by our community; therefore all services are available at no charge to residents of the Washington Metropolitan area.Major accomplishments of Life with Cancer during 2010 include:In October 2010, Life with Cancer launched its first ever webinar, a one-hour education seminar for breast cancer patients and their family members and the website, www.lifewithcancer.org, had reached over 30,000 unique visitors, providing education and support to all those that visit the site through the many resources that are available. The website includes an entire section devoted to all of our Spanish-speaking families. LWC oncology counselors provided individuals with supportive counseling sessions for almost 7,500 contacts in both in- and outpatient settings; 35 stem cell transplant sessions were held.330 support groups were offered in 6 locations, with total of over 3,000 participants.LWC Programs for Children and TeensLife with Cancer's programs for children and teens provide a variety of services for children and families affected by cancer. The program provided services to over 1,200 children, teens and parents. The program for children and teens has four staff that provides services at two pediatric oncology clinics on the pediatric floor of IFHC and at the Life with Cancer Family Center. One part of the program that continues to grow is the art therapy program. A full-time art therapist provided 2,567 hours of art therapy services in 2010. Art therapy is provided to pediatric patients and their families in the outpatient oncology clinic as well as inpatient. There were 37 teen dinners for teens with cancer and 76 support and education groups for children who have cancer, have a family member with cancer or have experienced a cancer-related death. There were 12 monthly Parenting Alone groups for parents who have lost a spouse or partner to cancer and 12 monthly Parent Bereavement groups for parents who have lost a young child to cancer. Both are unique groups where parents meet others and get support and guidance from each other. Lions Eye ClinicAdministered by IFH, the Ophthalmology Clinic provides optometry specialty services to the indigent including treatment of glaucoma, retina, and cataracts as well as children's specialty services. The physicians volunteer their services or are paid nominal fees by the State of Virginia or sponsoring community organization. In 2010, the clinic had 2,882 visits.The Center for Facial RehabilitationLocated at IFH, the program is a multi-disciplinary team of plastic and oral surgeons, speech pathologists, and other physicians who treat children and adults with cleft lip and palate or other craniofacial anomalies. Most of the professionals volunteer their time and IFH incurs unreimbursed costs for use of its facilities, parent information and support group which it sponsors. Inova Diabetes CenterThe Inova Diabetes Center provides outpatient diabetes self-management education to over 2,700 adults and children with diabetes each year in the Northern Virginia area. Since 95% of effective diabetes management is the responsibility of the individual with diabetes, this self-management education is vital to reduce the burden of this chronic disease and its complications in our Northern Virginia community. The Inova Diabetes Center has five locations in the Northern Virginia area including IFH, IMVH and IFOH and is the recipient of the American Diabetes Association's Recognition for Diabetes Education Programs. In 2010, the Inova Diabetes Centers provided a total of 3,463 patient visits at an unreimbursed cost of approximately $890,000.
4d Other program services. (Describe in Schedule O.)
(Expenses $   including grants of $   ) (Revenue $   )
4e Total program service expensesMediumBullet$ 1,253,276,662
Form 990 (2010)
Form 990 (2010)
Page 3
Part IV
Checklist of Required Schedules
Yes
No
1
Is the organization described in section 501(c)(3) or 4947(a)(1) (other than a private foundation)? If “Yes,” complete Schedule AClick to see attachment.....................
1
Yes
 
2
Is the organization required to complete Schedule B, Schedule of Contributors? Click to see attachment........
2
Yes
 
3
Did the organization engage in direct or indirect political campaign activities on behalf of or in opposition to candidates for public office? If “Yes,” complete Schedule C, Part IClick to see attachment..........
3
 
No
4
Section 501(c)(3) organizations. Did the organization engage in lobbying activities? If “Yes,” complete Schedule C,
Part IIClick to see attachment.........................
4
Yes
 
5
Is the organization a section 501(c)(4), 501(c)(5), or 501(c)(6) organization that receives membership dues, assessments, or similar amounts as defined in Revenue Procedure 98-19? If “Yes,” complete Schedule C, Part III........................
5
 
 
6
Did the organization maintain any donor advised funds or any similar funds or accounts where donors have the right to provide advice on the distribution or investment of amounts in such funds or accounts? If “Yes,” complete
Schedule D, Part IClick to see attachment.......................
6
 
No
7
Did the organization receive or hold a conservation easement, including easements to preserve open space,
the environment, historic land areas or historic structures? If “Yes,” complete Schedule D, Part IIClick to see attachment...
7
 
No
8
Did the organization maintain collections of works of art, historical treasures, or other similar assets? If “Yes,” complete Schedule D, Part III Click to see attachment....................
8
 
No
9
Did the organization report an amount in Part X, line 21; serve as a custodian for amounts not listed in Part X; or provide credit counseling, debt management, credit repair, or debt negotiation services? If “Yes,”
complete Schedule D, Part IVClick to see attachment...................
9
 
No
10
Did the organization, directly or through a related organization, hold assets in term, permanent,or quasi-endowments? If “Yes,” complete Schedule D, Part VClick to see attachment
10
 
No
11
If the organization’s answer to any of the following questions is ‘Yes,’ then complete Schedule D, Parts VI, VII, VIII, IX, or X as applicable:
a
Did the organization report an amount for land, buildings, and equipment in Part X, line10? If “Yes,” complete Schedule D, Part VI.Click to see attachment
11a
Yes
 
b
Did the organization report an amount for investments—other securities in Part X, line 12 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part VII.Click to see attachment
11b
 
No
c
Did the organization report an amount for investments—program related in Part X, line 13 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part VIII.Click to see attachment
11c
Yes
 
d
Did the organization report an amount for other assets in Part X, line 15 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part IX.Click to see attachment
11d
Yes
 
e
Did the organization report an amount for other liabilities in Part X, line 25? If “Yes,” complete Schedule D, Part X.Click to see attachment
11e
Yes
 
f
Did the organization’s separate or consolidated financial statements for the tax year include a footnote that addresses the organization’s liability for uncertain tax positions under FIN 48 (ASC 740)? If “Yes,” complete Schedule D, Part X.Click to see attachment
11f
Yes
 
12a
Did the organization obtain separate, independent audited financial statements for the tax year? If “Yes,” complete Schedule D, Parts XI, XII, and XIII Click to see attachment
12a
 
No
b
Was the organization included in consolidated, independent audited financial statements for the tax year? If “Yes,” and if the organization answered ‘No’ to line 12a, then completing Schedule D, Parts XI, XII, and XIII is optional Click to see attachment
12b
Yes
 
13
Is the organization a school described in section 170(b)(1)(A)(ii)? If “Yes,” complete Schedule E
13
 
No
14a
Did the organization maintain an office, employees, or agents outside of the United States?....
14a
 
No
b
Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, fundraising, business, and program service activities outside the United States? If “Yes,” complete Schedule F, Part I.........
14b
 
No
15
Did the organization report on Part IX, column (A), line 3, more than $5,000 of grants or assistance to any organization or entity located outside the U.S.? If “Yes,” complete Schedule F, Part II..
15
 
No
16
Did the organization report on Part IX, column (A), line 3, more than $5,000 of aggregate grants or assistance to individuals located outside the U.S.? If “Yes,” complete Schedule F, Part III..
16
 
No
17
Did the organization report a total of more than $15,000, of expenses for professional fundraising services on Part IX, column (A), lines 6 and 11e? If “Yes,” complete Schedule G, Part I
17
 
No
18
Did the organization report more than $15,000 total of fundraising event gross income and contributions on Part VIII, lines 1c and 8a? If “Yes,” complete Schedule G, Part II..........
18
 
No
19
Did the organization report more than $15,000 of gross income from gaming activities on Part VIII, line 9a? If “Yes,” complete Schedule G, Part III...................
19
 
No
Form 990 (2010)
Form 990 (2010)
Page 4
Part IV
Checklist of Required Schedules (continued)
20a
Did the organization operate one or more hospitals? If “Yes,” complete Schedule H..... Click to see attachment
20a
Yes
 
b
Did the organization attach its audited financial statement to this return? Note: All Form 990 filers that operate one or more hospitals must attach audited financial statements. .....
20b
 
No
21
Did the organization report more than $5,000 of grants and other assistance to governments and organizations in the United States on Part IX, column (A), line 1? If “Yes,” complete Schedule I, Parts I and II..
21
 
No
22
Did the organization report more than $5,000 of grants and other assistance to individuals in the United States on Part IX, column (A), line 2? If “Yes,” complete Schedule I, Parts I and III.....
22
 
No
23
Did the organization answer “Yes” to Part VII, Section A, questions 3, 4, or 5, about compensation of the organization’s current and former officers, directors, trustees, key employees, and highest compensated employees? If “Yes,” complete Schedule J................ Click to see attachment
23
Yes
 
24a
Did the organization have a tax-exempt bond issue with an outstanding principal amount of more than $100,000 as of the last day of the year, that was issued after December 31, 2002? If “Yes,” answer questions 24b–24d and complete Schedule K. If “No,” go to line 25................ Click to see list of attachments
24a
Yes
 
b
Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception?...
24b
 
No
c
Did the organization maintain an escrow account other than a refunding escrow at any time during the year
to defease any tax-exempt bonds?......................
24c
 
No
d
Did the organization act as an “on behalf of” issuer for bonds outstanding at any time during the year?...
24d
 
No
25a
Section 501(c)(3) and 501(c)(4) organizations. Did the organization engage in an excess benefit transaction with a disqualified person during the year? If “Yes,” complete Schedule L, Part I...... Click to see attachment
25a
 
No
b
Is the organization aware that it engaged in an excess benefit transaction with a disqualified person in a prior year, and that the transaction has not been reported on any of the organization’s prior Forms 990 or 990-EZ? If “Yes,” complete Schedule L, Part I................ Click to see attachment
25b
 
No
26
Was a loan to or by a current or former officer, director, trustee, key employee, highly compensated employee, or disqualified person outstanding as of the end of the organization’s tax year? If “Yes,” complete Schedule L,
Part II........................... Click to see attachment
26
 
No
27
Did the organization provide a grant or other assistance to an officer, director, trustee, key employee, substantial contributor, or a grant selection committee member, or to a person related to such an individual? If “Yes,” complete Schedule L, Part III............... Click to see attachment
27
 
No
28
Was the organization a party to a business transaction with one of the following parties? (see Schedule L, Part IV instructions for applicable filing thresholds, conditions, and exceptions):
a
A current or former officer, director, trustee, or key employee? If “Yes,” complete Schedule L, Part IV ......................... Click to see attachment
28a
Yes
 
b
A family member of a current or former officer, director, trustee, or key employee? If “Yes,”
complete Schedule L, Part IV................... Click to see attachment
28b
Yes
 
c
An entity of which a current or former officer, director, trustee, or key employee (or a family member thereof) was an officer, director, trustee, or owner? If “Yes,” complete Schedule L, Part IV.. Click to see attachment
28c
Yes
 
29
Did the organization receive more than $25,000 in non-cash contributions? If “Yes,” complete Schedule M
29
 
No
30
Did the organization receive contributions of art, historical treasures, or other similar assets, or qualified conservation contributions? If “Yes,” complete Schedule M............
30
 
No
31
Did the organization liquidate, terminate, or dissolve and cease operations? If “Yes,” complete Schedule N,
Part I...........................
31
 
No
32
Did the organization sell, exchange, dispose of, or transfer more than 25% of its net assets? If “Yes,” complete Schedule N, Part II.......................
32
 
No
33
Did the organization own 100% of an entity disregarded as separate from the organization under Regulations sections 301.7701-2 and 301.7701-3? If “Yes,” complete Schedule R, Part I........ Click to see attachment
33
 
No
34
Was the organization related to any tax-exempt or taxable entity? If “Yes,” complete Schedule R, Parts II, III, IV, and V, line 1..................... Click to see attachment
34
Yes
 
35
Is any related organization a controlled entity within the meaning of section 512(b)(13)? .....
35
 
No
a
Did the organization receive any payment from or engage in any transaction with a controlled entity within the meaning of section 512(b)(13)? If “Yes,” complete Schedule R, Part V, line 2... Click to see attachment
36
Section 501(c)(3) organizations. Did the organization make any transfers to an exempt non-charitable related organization? If “Yes,” complete Schedule R, Part V, line 2........... Click to see attachment
36
 
No
37
Did the organization conduct more than 5% of its activities through an entity that is not a related organization and that is treated as a partnership for federal income tax purposes? If “Yes,” complete Schedule R, Part VIClick to see attachment
37
 
No
38
Did the organization complete Schedule O and provide explanations in Schedule O for Part VI, lines 11 and 19? Note. All Form 990 filers are required to complete Schedule O. ............
38
Yes
 
Form 990 (2010)
Form 990 (2010)
Page 5
Part V
Statements Regarding Other IRS Filings and Tax Compliance
Check if Schedule O contains a response to any question in this Part V . . . . . . . . . .
Yes
No
1a
Enter the number reported in Box 3 of Form 1096. Enter -0- if not applicable. .......
1a
1,782
b
Enter the number of Forms W-2G included in line 1a. Enter -0- if not applicable.
1b
0
c
Did the organization comply with backup withholding rules for reportable payments to vendors and reportable gaming (gambling) winnings to prize winners? ..................
1c
Yes
 
2a
Enter the number of employees reported on Form W-3, Transmittal of Wage and Tax Statements filed for the calendar year ending with or within the year covered by this return .....................
2a
12,925
b
If at least one is reported on line 2a, did the organization file all required federal employment tax returns?

Note. If the sum of lines 1a and 2a is greater than 250, you may be required to e-file. (see instructions)
2b
Yes
 
3a
Did the organization have unrelated business gross income of $1,000 or more during the year?.............................
3a
Yes
 
b
If “Yes,” has it filed a Form 990-T for this year? If “No,” provide an explanation in Schedule O.....
3b
Yes
 
4a
At any time during the calendar year, did the organization have an interest in, or a signature or other authority over, a financial account in a foreign country (such as a bank account or securities account)?.......................
4a
 
No
b
If "Yes," enter the name of the foreign country: MediumBullet
See instructions for filing requirements for Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts.
5a
Was the organization a party to a prohibited tax shelter transaction at any time during the tax year?..
5a
 
No
b
Did any taxable party notify the organization that it was or is a party to a prohibited tax shelter transaction?
5b
 
No
c
If “Yes” to line 5a or 5b, did the organization file Form 8886-T? ........
5c
 
 
6a
Does the organization have annual gross receipts that are normally greater than $100,000, and did the organization solicit any contributions that were not tax deductible?..........
6a
 
No
b
If “Yes,” did the organization include with every solicitation an express statement that such contributions or gifts were not tax deductible?........................
6b
 
 
7
Organizations that may receive deductible contributions under section 170(c).
a
Did the organization receive a payment in excess of $75 made partly as a contribution and partly for goods and services provided to the payor?....................
7a
 
 
b
If “Yes,” did the organization notify the donor of the value of the goods or services provided?.....
7b
 
 
c
Did the organization sell, exchange, or otherwise dispose of tangible personal property for which it was required to file Form 8282?...........................
7c
 
 
d
If “Yes,” indicate the number of Forms 8282 filed during the year ....
7d
 
e
Did the organization receive any funds, directly or indirectly, to pay premiums on a personal benefit contract?..........................
7e
 
 
f
Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract?..
7f
 
 
g
If the organization received a contribution of qualified intellectual property, did the organization file Form 8899 as required?...................
7g
 
 
h
If the organization received a contribution of cars, boats, airplanes, or other vehicles, did the organization file a Form 1098-C?...............
7h
 
 
8
Sponsoring organizations maintaining donor advised funds and section 509(a)(3) supporting organizations. Did the supporting organization, or a donor advised fund maintained by a sponsoring organization, have excess business holdings at any time during the year?................
8
 
 
9
Sponsoring organizations maintaining donor advised funds.
a
Did the organization make any taxable distributions under section 4966?.........
9a
 
 
b
Did the organization make a distribution to a donor, donor advisor, or related person?......
9b
 
 
10
Section 501(c)(7) organizations. Enter:
a
Initiation fees and capital contributions included on Part VIII, line 12 ...
10a
 
b
Gross receipts, included on Form 990, Part VIII, line 12, for public use of club facilities
10b
 
11
Section 501(c)(12) organizations. Enter:
a
Gross income from members or shareholders .........
11a
 
b
Gross income from other sources (Do not net amounts due or paid to other sources against amounts due or received from them.) ........
11b
 
12a
Section 4947(a)(1) non-exempt charitable trusts. Is the organization filing Form 990 in lieu of Form 1041?
12a
 
 
b
If “Yes,” enter the amount of tax-exempt interest received or accrued during the year.
12b
 
13
Section 501(c)(29) qualified nonprofit health insurance issuers.
a
Is the organization licensed to issue qualified health plans in more than one state?
Note. All 501(c)(29) organizations must list in Schedule O each state in which they are licensed to issue qualified health plans, the amount of reserves required by each state, and the amount of reserves the organization allocated to each state.
13a
 
 
b
Enter the aggregate amount of reserves the organization is required to maintain by the states in which the organization is licensed to issue qualified health plans.
13b
 
c
Enter the aggregate amount of reserves on hand.
13c
 
14a
Did the organization receive any payments for indoor tanning services during the tax year?.....
14a
 
 
b
If "Yes," has it filed a Form 720 to report these payments? If “No,” provide an explanation in Schedule O..
14b
 
 
Form 990 (2010)
Form 990 (2010)
Page 6
Part VI
Governance, Management, and Disclosure For each “Yes” response to lines 2 through 7b below, and for a “No” response to lines 8a, 8b, or 10b below, describe the circumstances, processes, or changes in Schedule O. See instructions.
Check if Schedule O contains a response to any question in this Part VI . . . . . . . . . .
Section A. Governing Body and Management
Yes
No
1a
Enter the number of voting members of the governing body at the end of the tax year ..............
1a
30
b
Enter the number of voting members included in line 1a, above, who are independent .................
1b
21
2
Did any officer, director, trustee, or key employee have a family relationship or a business relationship with any other officer, director, trustee, or key employee? .................
2
 
No
3
Did the organization delegate control over management duties customarily performed by or under the direct supervision of officers, directors or trustees, or key employees to a management company or other person? ..
3
 
No
4
Did the organization make any significant changes to its governing documents since the prior Form 990 was filed?
4
 
No
5
Did the organization become aware during the year of a significant diversion of the organization’s assets? .
5
 
No
6
Does the organization have members or stockholders? ................
6
 
No
7a
Does the organization have members, stockholders, or other persons who may elect one or more members of the governing body? .........................
7a
 
No
b
Are any decisions of the governing body subject to approval by members, stockholders, or other persons? ..
7b
 
No
8
Did the organization contemporaneously document the meetings held or written actions undertaken during the year by the following:
a
The governing body? .........................
8a
Yes
 
b
Each committee with authority to act on behalf of the governing body? ............
8b
Yes
 
9
Is there any officer, director, trustee, or key employee listed in Part VII, Section A, who cannot be reached at the organization’s mailing address? If “Yes,” provide the names and addresses in Schedule O .....
9
 
No
Section B. Policies (This Section B requests information about policies not required by the Internal
Revenue Code.)
Yes
No
10a
Does the organization have local chapters, branches, or affiliates? ............
10a
 
No
b
If “Yes,” does the organization have written policies and procedures governing the activities of such chapters, affiliates, and branches to ensure their operations are consistent with those of the organization? ....
10b
 
 
11a
Has the organization provided a copy of this Form 990 to all members of its governing body before filing the form?
11a
Yes
 
b
Describe in Schedule O the process, if any, used by the organization to review the Form 990. .....
12a
Does the organization have a written conflict of interest policy? If “No,” go to line 13.......
12a
Yes
 
b
Are officers, directors or trustees, and key employees required to disclose annually interests that could give rise to conflicts? ...........................
12b
Yes
 
c
Does the organization regularly and consistently monitor and enforce compliance with the policy? If “Yes,” describe in Schedule O how this is done ....................
12c
Yes
 
13
Does the organization have a written whistleblower policy? ...............
13
Yes
 
14
Does the organization have a written document retention and destruction policy? .........
14
Yes
 
15
Did the process for determining compensation of the following persons include a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision?
a
The organization’s CEO, Executive Director, or top management official ...........
15a
Yes
 
b
Other officers or key employees of the organization ................
15b
Yes
 
If "Yes" to line a or b, describe the process in Schedule O. (See instructions.)
16a
Did the organization invest in, contribute assets to, or participate in a joint venture or similar arrangement with a taxable entity during the year? ......................
16a
 
No
b
If “Yes,” has the organization adopted a written policy or procedure requiring the organization to evaluate its participation in joint venture arrangements under applicable federal tax law, and taken steps to safeguard the organization’s exempt status with respect to such arrangements? ............
16b
 
 
Section C. Disclosure
17
List the States with which a copy of this Form 990 is required to be filedMediumBullet
18
Section 6104 requires an organization to make its Form 1023 (or 1024 if applicable), 990, and 990-T (501(c)(3)s only) available for public inspection. Indicate how you make these available. Check all that apply.
19
Describe in Schedule O whether (and if so, how), the organization makes its governing documents, conflict of interest policy, and financial statements available to the public.
20
State the name, physical address, and telephone number of the person who possesses the books and records of the organization: MediumBullet
Inova Health Care Services
8110 Gatehouse Road Suite 400W
Falls Church,VA22042
(703) 289-2433
Form 990 (2010)
Form 990 (2010)
Page 7
Part VII
Compensation of Officers, Directors,Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors
Check if Schedule O contains a response to any question in this Part VII . . . . . . . . . .
Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees
1a Complete this table for all persons required to be listed. Report compensation for the calendar year ending with or within the organization’s tax year.
RoundBullet List all of the organization’s current officers, directors, trustees (whether individuals or organizations), regardless of amount
of compensation, and current key employees. Enter -0- in columns (D), (E), and (F) if no compensation was paid.

RoundBullet List all of the organization’s current key employees, if any. See instructions for definition of "key employee."
RoundBullet List the organization’s five current highest compensated employees (other than an officer, director, trustee or key employee)
who received reportable compensation (Box 5 of Form W-2 and/or Box 7 of Form 1099-MISC) of more than $100,000 from the
organization and any related organizations.

RoundBullet List all of the organization’s former officers, key employees, or highest compensated employees who received more than $100,000
of reportable compensation from the organization and any related organizations.

RoundBullet List all of the organization’s former directors or trustees that received, in the capacity as a former director or trustee of the
organization, more than $10,000 of reportable compensation from the organization and any related organizations.

List persons in the following order: individual trustees or directors; institutional trustees; officers; key employees; highest
compensated employees; and former such persons.
Check this box if neither the organization nor any related organizations compensated any current or former officer, director, or trustee.
(A)
Name and Title 		(B)
Average hours per week (describe hours for related organizations in Schedule O) 		(C)
Position (check all that apply) 		(D)
Reportable compensation from the organization (W- 2/1099-MISC) 		(E)
Reportable compensation from related organizations (W- 2/1099-MISC) 		(F)
Estimated amount of other compensation from the organization and related organizations
Individual Trustee or Director; Institutional Trustee; Officer; Key Employee; Highest compensated employee; Former;
(1) CHARLES H SMITH
CHAIRMAN
 3.00 X   X       0 0 0
(2) LORI MORRIS
VICE CHAIRMAN
 2.00 X   X       0 0 0
(3) CHARLES MANN
SECRETARY
 2.00 X   X       0 0 0
(4) MARY AGEE
TRUSTEE
 2.00 X           0 0 0
(5) ROBERT AHMED MD
TRUSTEE
 2.00 X           0 0 0
(6) MARTHA CALIHAN MD
TRUSTEE
 2.00 X           0 0 0
(7) CHRISTOPHER CHIANTELLA MD
TRUSTEE
 2.00 X           0 0 0
(8) MARGARET COLON
TRUSTEE
 2.00 X           0 0 0
(9) PAULA DARLING
TRUSTEE
 2.00 X           0 0 0
(10) MICHAEL FREY
TRUSTEE
 2.00 X           0 0 0
(11) LAUREN S GARCIA
TRUSTEE
 2.00 X           0 0 0
(12) KATHERINE HANLEY
TRUSTEE
 2.00 X           0 0 0
(13) MARIA V HOPPER
TRUSTEE
 2.00 X           0 0 0
(14) BETTY HUDSON
TRUSTEE
 2.00 X           0 0 0
(15) GERALD HYLAND
TRUSTEE
 2.00 X           0 0 0
(16) HOOKS JOHNSTON
TRUSTEE
 2.00 X           0 0 0
(17) AL KHOURY MD
TRUSTEE
 2.00 X           0 0 0
Form 990 (2010)
Form 990 (2010)
Page 8
Part VII
Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (continued)
(A)
Name and Title 		(B)
Average hours per week (describe hours for related organizations in Schedule O) 		(C)
Position (check all that apply) 		(D)
Reportable compensation from the organization (W- 2/1099-MISC) 		(E)
Reportable compensation from related organizations (W- 2/1099-MISC) 		(F)
Estimated amount of other compensation from the organization and related organizations
Individual Trustee or Director; Institutional Trustee; Officer; Key Employee; Highest compensated employee; Former;
(18) JAMES MCNEIL
TRUSTEE
 2.00 X           0 0 0
(19) DEAN MOREHOUSE
TRUSTEE
 2.00 X           0 0 0
(20) CAROLYN MOSS
TRUSTEE
 2.00 X           0 0 0
(21) JOHN MOYNIHAN MD
TRUSTEE
 2.00 X           0 0 0
(22) GARY NAKAMOTO
TRUSTEE
 2.00 X           0 0 0
(23) JOHN PETERSON
TRUSTEE
 2.00 X           0 0 0
(24) ERIC REINES MD
TRUSTEE
 2.00 X           0 0 0
(25) ARNOLD ROSENBLATT MD
TRUSTEE
 2.00 X           0 0 0
(26) JOHN RYAN
TRUSTEE
 2.00 X           0 0 0
(27) JILL STELFOX
TRUSTEE
 2.00 X           0 0 0
(28) SHIRLEY TRAVIS PHD
TRUSTEE
 2.00 X           0 0 0
(29) ROBERT TSIEN
TRUSTEE
 2.00 X           0 0 0
(30) JKNOX SINGLETON
PRESIDENT
 20.00     X       0 4,740,012 598,266
(31) RICHARD MAGENHEIMER
TREASURER
 24.00     X       0 931,361 74,611
(32) JOHN GAUL
ASST SECRETARY
 24.00     X       411,351 0 64,796
(33) GREGORY SHIELDS
ASST SECRETARY
 20.00     X       75,132 0 13,089
(34) MARK STAUDER
PRESIDENT, COO
 38.00     X       0 1,175,263 193,807
(35) LEWIS PASTERNAK
CEO IFH
 40.00     X       0 872,911 163,945
(36) TODD STOTTLEMYER
EVP CORPORATE SERVICES
 27.00     X       0 752,579 136,883
(37) JOHN NIEDERHUBER
CEO IITRPM & EVP IHS
 40.00     X       0 696,664 19,349
(38) KYLANNE SILVERSTONE
EVP HEALTH SERVICES
 40.00     X       0 612,971 137,758
(39) WAYNE DIEWALD
EVP AMBULATORY SVCS & GROWTH
 40.00     X       0 522,800 68,556
(40) RODNEY HUEBBERS
EVP, IHS ADMIN IFH/IWC/IVH
 40.00     X       0 452,736 59,808
(41) PAT WALTERS
SVP STRATEGIC PLANNING
 40.00       X     663,743 0 68,378
(42) JOHN FITZGERALD
CEO IFOH
 40.00       X     519,426 0 107,769
(43) GEOFFREY BROWN
SVP CIO
 40.00       X     513,186 0 107,393
(44) PATRICK CHRISTIANSEN
SVP COO IFH
 40.00       X     503,948 0 79,714
(45) MARK RUNYON
SVP FINANCE
 40.00       X     502,061 0 120,910
(46) BARBARA DOYLE
CEO IMVH
 40.00       X     440,608 0 123,156
(47) MAUREEN SWICK
SVP CHIEF NURSING EXEC
 40.00       X     278,867 0 33,373
(48) ANGELA MANNINO
SVP HUMAN RESOURCES
 40.00       X     360,572 0 66,896
(49) JAMES ECKLUND
PHYSICIAN
 40.00         X   818,312 0 64,793
(50) JOSEPH WATSON
PHYSICIAN
 40.00         X   700,899 0 51,893
(51) JOSEPH HALLAL
CMO
 40.00         X   635,110 0 20,472
(52) ROBERT HYMES
PHYSICIAN
 40.00         X   588,313 0 67,264
(53) CARY SCHWARTZBACH
PHYSICIAN
 40.00         X   586,480 0 28,176
(54) JAMES KIM
AVP DEPUTY GENERAL COUNSEL
 40.00           X 246,209 0 59,657
(55) RONALD EWALD
VP IHS AA FINANCE
 40.00           X 306,818 0 90,720
(56) JEFFREY COWART
VP MARKETING AND COMMUNICATIONS
 40.00           X 311,882 0 37,935
(57) PATRICIA BYRNES SCHMEHL
VP IFH WOMENS CENTER
 40.00           X 256,970 0 93,820
(58) ALIREZA MALEKZADEH
PHYSICIAN
 40.00           X 584,485 0 55,026
(59) JAMES PIPER
PHYSICIAN
 40.00           X 461,823 0 71,228
(60) JOHN HAMILTON
PHYSICIAN
 40.00           X 449,526 0 66,284
(61) JOHANN JONSSON
PHYSICIAN
 40.00           X 473,042 0 47,212
1b Sub-Total................MediumBullet
c Total from continuation sheets to Part VII, Section A....MediumBullet
d Total (add lines 1b and 1c)............MediumBullet 10,688,763 10,757,297 2,992,937
2
Total number of individuals (including but not limited to those listed above) who received more than $100,000 in reportable compensation from the organizationMediumBullet867
Yes
No
3
Did the organization list any former officer, director or trustee, key employee, or highest compensated employee on line 1a? If “Yes,” complete Schedule J for such individual .............
3
Yes
 
4
For any individual listed on line 1a, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000? If “Yes,” complete Schedule J for such individual...........................
4
Yes
 
5
Did any person listed on line 1a receive or accrue compensation from any unrelated organization or individual for services rendered to the organization? If “Yes,” complete Schedule J for such person .....
5
 
No
Section B. Independent Contractors
1
Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from the organization.
(A)
Name and business address 		(B)
Description of services 		(C)
Compensation
FAIRFAX RADIOLOGICAL CONSULTANTS
2722 MERRILEE DRIVE SUITE 230
FAIRFAX,VA22031 		RADIOLOGY 5,834,733
GEORGE WASHINGTON UNIVERSITY
2121 I STREET NW
WASHINGTON,DC20052 		RESIDENCY PROGRAM 5,105,764
CARDIAC VASCULAR & THORACIC
2921 TELESTAR CT SUITE 140
FALLS CHURCH,VA22042 		MEDICAL SERVICES 4,954,580
QUEST DIAGNOSTICS
14255 NEWBROOK DRIVE
CHANTILLY,VA20151 		RADIOLOGY 3,194,908
DELOITTE CONSULTING LLP
4022 SELLS DRIVE
HERMITAGE,TN37076 		CONSULTING 3,142,814
2
Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 in compensation from the organization MediumBullet194
Form 990 (2010)
Form 990 (2010)
Page 9
Part VIII
Statement of Revenue
(A)
Total revenue 		(B)
Related or
exempt
function
revenue 		(C)
Unrelated
business
revenue 		(D)
Revenue
excluded from
tax under sections
512, 513, or 514
Contributions, gifts, grants and other similar amounts 1a Federated campaigns..1a  
b Membership dues....1b  
c Fundraising events....1c  
d Related organizations...1d 3,646,888
e Government grants (contributions)1e 9,066,437
f All other contributions, gifts, grants, and
similar amounts not included above1f 		 
g Noncash contributions included in lines 1a-1f:$  
h Total. Add lines 1a-1f.......MediumBullet 12,713,325
Program Service Revenue Business Code
2a Net Patient Service Re 900,099 1,561,097,038 1,561,097,038    
b Inova Reston MRI LLC 621,400 3,611,420 3,611,420    
c Franconia-Springfield 621,400 1,859,932 1,859,932    
d Technical Dynamic, LLC 811,000 1,686,638 1,686,638    
e Northern Virginia Surg 621,400 794,952 794,952    
f All other program service revenue . -1,178,351 -1,178,351    
g Total. Add lines 2a–2f........MediumBullet 1,567,871,629
Other Revenue 3 Investment income (including dividends, interest
and other similar amounts).....MediumBullet 1,857,461     1,857,461
4 Income from investment of tax-exempt bond proceeds..MediumBullet 1,498,345     1,498,345
5 Royalties............MediumBullet        
(i) Real (ii) Personal
6a Gross Rents 15,623,279  
b Less: rental expenses 13,238,470  
c Rental income or (loss) 2,384,809  
d Net rental income or (loss).......MediumBullet 2,384,809     2,384,809
(i) Securities (ii) Other
7a Gross amount from sales of assets other than inventory    
b Less: cost or other basis and sales expenses 575,306 13,298,552
c Gain or (loss) -575,306 -13,298,552
d Net gain or (loss)..........MediumBullet -13,873,858     -13,873,858
8a Gross income from fundraising events (not including
$  
of contributions reported on line 1c). See Part IV, line 18 ...
a  
b Less: direct expenses ...b  
c Net income or (loss) from fundraising events..MediumBullet      
9a Gross income from gaming activities.
See Part IV, line 19 ...
a  
b Less: direct expenses ...b  
c Net income or (loss) from gaming activities...MediumBullet        
10a Gross sales of inventory, less
returns and allowances .
a  
b Less: cost of goods sold ..b  
c Net income or (loss) from sales of inventory..MediumBullet        
Miscellaneous Revenue Business Code
11a COMMUNITY BLOOD SERVIC 900,099 8,889,115 8,889,115    
b FOOD SERVICES 900,099 5,513,870 5,513,870    
c LAUNDRY SERVICES 812,300 4,783,463   4,783,463  
d All other revenue .... 24,662,957 22,200,782 2,462,175  
e Total. Add lines 11a–11d ......MediumBullet 43,849,405
12 Total revenue. See Instructions....MediumBullet 1,616,301,116 1,604,475,396 7,245,638 -8,133,243
Form 990 (2010)
Form 990 (2010)
Page 10
Part IX
Statement of Functional Expenses
Section 501(c)(3) and 501(c)(4) organizations must complete all columns. All other organizations must complete column (A) but are not required to complete columns (B), (C), and (D).
Do not include amounts reported on lines 6b,
7b, 8b, 9b, and 10b of Part VIII. 		(A)
Total expenses 		(B)
Program service expenses 		(C)
Management and general expenses 		(D)
Fundraising expenses
1 Grants and other assistance to governments and organizations in the U.S. See Part IV, line 21    
2 Grants and other assistance to individuals in the U.S. See Part IV, line 22    
3 Grants and other assistance to governments, organizations, and individuals outside the U.S. See Part IV, lines 15 and 16    
4 Benefits paid to or for members    
5 Compensation of current officers, directors, trustees, and key employees .... 10,805,424 10,805,424    
6 Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....        
7 Other salaries and wages 637,843,857 546,266,799 91,577,058  
8 Pension plan contributions (include section 401(k) and section 403(b) employer contributions) .... 40,123,977 31,659,672 8,464,305  
9 Other employee benefits ....... 63,289,141 55,245,118 8,044,023  
10 Payroll taxes ........... 45,971,535 39,994,938 5,976,597  
11 Fees for services (non-employees):        
a Management ......        
b Legal ......... 4,151,788 2,241,120 1,910,668  
c Accounting ........... 1,180,018 71,654 1,108,364  
d Lobbying ........... 399,550 399,550    
e Professional fundraising. See Part IV, line 17..    
f Investment management fees ......        
g Other .......... 45,357,354 28,262,135 17,095,219  
12 Advertising and promotion .... 2,250,094 1,450,740 799,354  
13 Office expenses ....... 7,178,821 4,817,904 2,360,917  
14 Information technology ...... 27,729,384 2,352,866 25,376,518  
15 Royalties ..        
16 Occupancy ........... 19,852,743 12,587,862 7,264,881  
17 Travel ............ 1,591,705 956,163 635,542  
18 Payments of travel or entertainment expenses for any federal, state, or local public officials ......        
19 Conferences, conventions, and meetings .... 1,520,574 779,883 740,691  
20 Interest ........... 22,861,051 22,861,051    
21 Payments to affiliates .......        
22 Depreciation, depletion, and amortization ..... 103,237,432 67,546,327 35,691,105  
23 Insurance .............. 10,820,641 10,447,130 373,511  
24 Other expenses. Itemize expenses not covered above. (Expenses grouped together and labeled miscellaneous may not exceed 5% of total expenses shown on line 25 below.)
a SUPPLIES 269,815,944 267,655,658 2,160,286  
b BAD DEBT 57,821,081 57,821,081    
c OTHER PURCHASED SERVICE 42,085,161 38,396,266 3,688,895  
d PHYSICIAN FEES 32,150,319 31,595,768 554,551  
e LOSS ON EXT-DEBT/SWAPS 9,285,312   9,285,312  
f All other expenses 21,909,129 19,061,553 2,847,576  
25 Total functional expenses. Add lines 1 through 24f 1,479,232,035 1,253,276,662 225,955,373 0
26 Joint costs. Check here MediumBullet if following
SOP 98-2 (ASC 958-720). Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation 		       
Form 990 (2010)
Form 990 (2010)
Page 11
Part X Balance Sheet
(A)
Beginning of year 		(B)
End of year
Assets 1 Cash—non-interest-bearing ..........   1  
2 Savings and temporary cash investments ....... 170,456,664 2 225,557,904
3 Pledges and grants receivable, net .........   3  
4 Accounts receivable, net ......... 165,255,298 4 177,311,252
5 Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
Schedule L ..........   5  
6 Receivables from other disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B). Complete Part II of
Schedule L ..........   6  
7 Notes and loans receivable, net ............. 8,313,689 7 8,036,661
8 Inventories for sale or use .............. 14,626,322 8 14,071,409
9 Prepaid expenses and deferred charges ............ 29,018,834 9 39,014,942
10a Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D 10a 1,743,287,786
b Less: accumulated depreciation. ..... 10b 1,011,367,649 726,389,930 10c 731,920,137
11 Investments—publicly traded securities .......... 228,906,957 11 211,358,783
12 Investments—other securities. See Part IV, line 11 ......   12  
13 Investments—program-related. See Part IV, line 11 ..   13  
14 Intangible assets .........   14  
15 Other assets. See Part IV, line 11 ........... 1,048,179,732 15 1,176,702,245
16 Total assets. Add lines 1 through 15 (must equal line 34)... 2,391,147,426 16 2,583,973,333
Liabilities 17 Accounts payable and accrued expenses . 192,598,752 17 199,429,493
18 Grants payable ..........   18  
19 Deferred revenue ..........   19  
20 Tax-exempt bond liabilities .......... 1,021,344,123 20 1,002,093,647
21 Escrow or custodial account liability. Complete Part IV of Schedule D..   21  
22 Payables to current and former officers, directors, trustees, key
employees, highest compensated employees, and disqualified
persons. Complete Part II of Schedule L..........   22  
23 Secured mortgages and notes payable to unrelated third parties ..   23  
24 Unsecured notes and loans payable to unrelated third parties ....   24  
25 Other liabilities. Complete Part X of Schedule D..... 180,681,912 25 254,509,253
26 Total liabilities. Add lines 17 through 25..... 1,394,624,787 26 1,456,032,393
Net Assets or Fund Balance Organizations that follow SFAS 117, check here MediumBullet and complete lines 27 through 29, and lines 33 and 34.
27 Unrestricted net assets ..... 996,500,915 27 1,127,919,216
28 Temporarily restricted net assets ..... 21,724 28 21,724
29 Permanently restricted net assets .....   29  
Organizations that do not follow SFAS 117, check here MediumBullet and complete lines 30 through 34.
30 Capital stock or trust principal, or current funds .....   30  
31 Paid-in or capital surplus, or land, building or equipment fund .....   31  
32 Retained earnings, endowment, accumulated income, or other funds   32  
33 Total net assets or fund balances ..... 996,522,639 33 1,127,940,940
34 Total liabilities and net assets/fund balances ..... 2,391,147,426 34 2,583,973,333
Form 990 (2010)
Form 990 (2010)
Page 12
Part XI
Reconcilliation of Net Assets
Check if Schedule O contains a response to any question in this Part XI . . . . . . . . . .
1
Total revenue (must equal Part VIII, column (A), line 12) . . .
1
1,616,301,116
2
Total expenses (must equal Part IX, column (A), line 25) . . . . .
2
1,479,232,035
3
Revenue less expenses. Subtract line 2 from line 1 . . . .
3
137,069,081
4
Net assets or fund balances at beginning of year (must equal Part X, line 33, column (A)) . .
4
996,522,639
5
Other changes in net assets or fund balances (explain in Schedule O) . . . .
5
-5,650,780
6
Net assets or fund balances at end of year. Combine lines 3, 4, and 5 (must equal Part X, line 33, column (B)) . . . . . .
6
1,127,940,940
Part XII
Financial Statements and Reporting
Check if Schedule O contains a response to any question in this Part XII . . . . . . . . . .
Yes
No
1
Accounting method used to prepare the Form 990:  
If the organization changed its method of accounting from a prior year or checked "Other," explain in
Schedule O.
2a
Were the organization’s financial statements compiled or reviewed by an independent accountant?..
2a
 
No
b
Were the organization’s financial statements audited by an independent accountant?........
2b
Yes
 
c
If “Yes,” to 2a or 2b, does the organization have a committee that assumes responsibility for oversight of the audit, review, or compilation of its financial statements and selection of an independent accountant?
If the organization changed either its oversight process or selection process during the tax year, explain in Schedule O............................
2c
Yes
 
d
If “Yes” to line 2a or 2b, check a box below to indicate whether the financial statements for the year were issued on a separate basis, consolidated basis, or both:
3a
As a result of a federal award, was the organization required to undergo an audit or audits as set forth in the Single Audit Act and OMB Circular A-133? ................
3a
 
No
b
If “Yes,” did the organization undergo the required audit or audits? If the organization did not undergo the required audit or audits, explain why in Schedule O and describe any steps taken to undergo such audits. ..
3b
 
 
Form 990 (2010)
Additional Data


Software ID:  
Software Version:  
Form 990, Special Condition Description:
Special Condition Description
SCHEDULE A
(Form 990 or 990EZ)

Department of the Treasury
Internal Revenue Service
Public Charity Status and Public Support

Complete if the organization is a section 501(c)(3) organization or a section
4947(a)(1) nonexempt charitable trust.
right arrow Attach to Form 990 or Form 990-EZ. right arrow See separate instructions.
OMB No. 1545-0047
2010
Open to Public
Inspection
Name of the organization
INOVA HEALTH CARE SERVICES
 
Employer identification number

54-0620889
Part I
Reason for Public Charity Status (All organizations must complete this part.) See instructions
The organization is not a private foundation because it is: (For lines 1 through 11, check only one box.)
1
2
3
4
5
section 170(b)(1)(A)(iv). (Complete Part II.)
6
7
8
9
receipts from activities related to its exempt functions—subject to certain exceptions, and (2) no more than 331/3% of
its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses
acquired by the organization after June 30, 1975. See section 509(a)(2). (Complete Part III.)
10
11
e
f
g
(i) a person who directly or indirectly controls, either alone or together with persons described in (ii)
Yes
No
and (iii) below, the governing body of the the supported organization? ................
11g(i)
 
 
(ii) a family member of a person described in (i) above? ......................
11g(ii)
 
 
(iii) a 35% controlled entity of a person described in (i) or (ii) above? ................
11g(iii)
 
 
h
(i)
Name of supported organization 		(ii)
EIN 		(iii)
Type of organization (described on lines 1- 9 above or IRC section (see instructions)) 		(iv)
Is the organization in col. (i) listed in your governing document? 		(v)
Did you notify the organization in col. (i) of your support? 		(vi)
Is the organization in col. (i) organized in the U.S.? 		(vii)
Amount of support?
Yes No Yes No Yes No
Total                  

For Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 11285F
Schedule A (Form 990 or 990-EZ) 2010
Schedule A (Form 990 or 990-EZ) 2010
Page 2
Part II
Support Schedule for Organizations Described in IRC 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi)
(Complete only if you checked the box on line 5, 7, or 8 of Part I or if the organization failed to qualify under Part III. If the organization fails to qualify under the tests listed below, please complete Part III.)
Section A. Public Support
Calendar year(or fiscal year beginning in) (a) 2006 (b) 2007 (c) 2008 (d) 2009 (e) 2010 (f) Total
1 Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") ....            
2 Tax revenues levied for the organization's benefit and either paid to or expended on its behalf.......            
3 The value of services or facilities furnished by a governmental unit to the organization without charge..            
4 Total. Add lines 1 through 3..            
5 The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included on line 1 that exceeds 2% of the amount shown on line 11, column (f)..            
6 Public Support. Subtract line 5 from line 4.            
Section B. Total Support
Calendar year(or fiscal year beginning in) (a) 2006 (b) 2007 (c) 2008 (d) 2009 (e) 2010 (f) Total
7 Amounts from line 4..            
8 Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..            
9 Net income from unrelated business activities, whether or not the business is regularly carried on..            
10 Other income. (Explain in Part IV.) Do not include gain or loss from the sale of capital assets..            
11 Total support (Add lines 7 through 10).            
12
12
 
13
Section C. Computation of Public Support Percentage
14
14
 
15
15
 
16a
b
17a
b
18
Schedule A (Form 990 or 990-EZ) 2010
Schedule A (Form 990 or 990-EZ) 2010
Page 3
Part III
Support Schedule for Organizations Described in IRC 509(a)(2)
(Complete only if you checked the box on line 9 of Part I or if the organization failed to qualify under Part II. If the organization fails to qualify under the tests listed below, please complete Part II.)
Section A. Public Support
Calendar year(or fiscal year beginning in) (a) 2006 (b) 2007 (c) 2008 (d) 2009 (e) 2010 (f) Total
1 Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") .            
2 Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose......            
3 Gross receipts from activities that are not an unrelated trade or business under section 513..            
4 Tax revenues levied for the organization's benefit and either paid to or expended on its behalf...            
5 The value of services or facilities furnished by a governmental unit to the organization without charge..            
6 Total. Add lines 1 through 5.            
7a Amounts included on lines 1, 2, and 3 received from disqualified persons...            
b Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year.            
c Add lines 7a and 7b..            
8 Public Support (Subtract line 7c from line 6.)            
Section B. Total Support
Calendar year (or fiscal year beginning in) (a) 2006 (b) 2007 (c) 2008 (d) 2009 (e) 2010 (f) Total
9 Amounts from line 6...            
10a Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..            
b Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975.            
c Add lines 10a and 10b.            
11 Net income from unrelated business activities not included in line 10b, whether or not the business is regularly carried on.            
12 Other income. Do not include gain or loss from the sale of capital assets (Explain in Part IV.)            
13 Total support (Add lines 9, 10c, 11 and 12.).            
14
Section C. Computation of Public Support Percentage
15
15
 
16
16
 
Section D. Computation of Investment Income Percentage
17
17
 
18
18
 
19a
b
20
Schedule A (Form 990 or 990-EZ) 2010
Schedule A (Form 990 or 990-EZ) 2010
Page 4
Part IV
Supplemental Information. Supplemental Information. Complete this part to provide the explanation required by Part II, line 10; Part II, line 17a or 17b; or Part III, line 12. Also complete this part for any additional information. (See instructions).
Facts And Circumstances Test
 
Explanation
 
 
 
 
Schedule A (Form 990 or 990-EZ) 2010

Additional Data


Software ID:  
Software Version:  
Schedule B
(Form 990, 990-EZ,
or 990-PF)
Department of the Treasury
Internal Revenue Service
Schedule of Contributors
Arrow Bullet Attach to Form 990, 990-EZ, or 990-PF.
OMB No. 1545-0047
2010
Name of organization
INOVA HEALTH CARE SERVICES
 
Employer identification number

54-0620889
Organization type (check one):
Filers of:
Section:
Form 990 or 990-EZ





Form 990-PF




Check if your organization is covered by the General Rule or a Special Rule.  
Note. Only a section 501(c)(7), (8), or (10) organization can check boxes for both the General Rule and a Special Rule. See instructions.
General Rule—
Special Rules
......................... Arrow Bullet   $    
Caution. An Organization that is not covered by the General Rule and/or the Special Rules does not file Schedule B (Form 990,
990-EZ, or 990-PF), but it must answer “No” on Part IV, line 2 of its Form 990, or check the box in the heading of its
Form 990-EZ, or on line 2 of its Form 990-PF, to certify that it does not meet the filing requirements of Schedule B (Form 990,
990-EZ, or 990-PF).
For Paperwork Reduction Act Notice, see the Instructions
for Form 990, 990-EZ, or 990-PF.
Cat. No. 30613XSchedule B (Form 990, 990-EZ, or 990-PF) (2010)

Schedule B (Form 990, 990-EZ, or 990-PF) (2010)
Page 1 of 1 of Part I
Name of organization
INOVA HEALTH CARE SERVICES
  		Employer identification number

54-0620889
Part I
Contributors (see Instructions)
     
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Aggregate contributions		 (d)
Type of contribution
RESTRICTED
RESTRICTED
 

     
RESTRICTED
RESTRICTED  
RESTRICTED, RESTRICTED   RESTRICTED

$RESTRICTED




(Complete Part II if there is
a noncash contribution.)
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Aggregate contributions		 (d)
Type of contribution
 
 
 

     
 
   

$  




(Complete Part II if there is
a noncash contribution.)
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Aggregate contributions		 (d)
Type of contribution
 
 
 

     
 
   

$  




(Complete Part II if there is
a noncash contribution.)
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Aggregate contributions		 (d)
Type of contribution
 
 
 

     
 
   

$  




(Complete Part II if there is
a noncash contribution.)
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Aggregate contributions		 (d)
Type of contribution
 
 
 

     
 
   

$  




(Complete Part II if there is
a noncash contribution.)
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Aggregate contributions		 (d)
Type of contribution
 
 
 

     
 
   

$  




(Complete Part II if there is
a noncash contribution.)
Schedule B (Form 990, 990-EZ, or 990-PF) (2010)

Schedule B (Form 990, 990-EZ, or 990-PF) (2010)
Page 1 of 1 of Part II
Name of organization
INOVA HEALTH CARE SERVICES
  		Employer identification number

54-0620889
Part II
Noncash Property (see Instructions)
     
(a) No.
from
Part I		 (b)
Description of noncash property given		 (c)
FMV (or estimate)
(see instructions) 		(d)
Date received
 
$    
(a) No.
from
Part I		 (b)
Description of noncash property given		 (c)
FMV (or estimate)
(see instructions) 		(d)
Date received
 
$    
(a) No.
from
Part I		 (b)
Description of noncash property given		 (c)
FMV (or estimate)
(see instructions) 		(d)
Date received
 
$    
(a) No.
from
Part I		 (b)
Description of noncash property given		 (c)
FMV (or estimate)
(see instructions) 		(d)
Date received
 
$    
(a) No.
from
Part I		 (b)
Description of noncash property given		 (c)
FMV (or estimate)
(see instructions) 		(d)
Date received
 
$    
(a) No.
from
Part I		 (b)
Description of noncash property given		 (c)
FMV (or estimate)
(see instructions) 		(d)
Date received
 
$    
Schedule B (Form 990, 990-EZ, or 990-PF) (2010)

Schedule B (Form 990, 990-EZ, or 990-PF) (2010)
Page 1 of 1 of Part III
Name of organization
INOVA HEALTH CARE SERVICES
  		Employer identification number

54-0620889
Part III
Exclusively religious, charitable, etc., individual contributions to section 501(c)(7), (8), or (10) organizations
aggregating more than $1,000 for the year. (Complete columns (a) through (e) and the following line entry.)
For organizations completing Part III, enter the total of exclusively religious, charitable, etc.,
contributions of $1,000 or less for the year. (Enter this information once. See instructions.) Arrow Bullet $  
(a) No.
from
Part I		 (b)
Purpose of gift		 (c)
Use of gift		 (d)
Description of how gift is held
 
(e)
Transfer of gift
Transferee's name, address, and ZIP 4 Relationship of transferor to transferee
 
 
       
 
(a) No.
from
Part I		 (b)
Purpose of gift		 (c)
Use of gift		 (d)
Description of how gift is held
 
(e)
Transfer of gift
Transferee's name, address, and ZIP 4 Relationship of transferor to transferee
 
 
       
 
(a) No.
from
Part I		 (b)
Purpose of gift		 (c)
Use of gift		 (d)
Description of how gift is held
 
(e)
Transfer of gift
Transferee's name, address, and ZIP 4 Relationship of transferor to transferee
 
 
       
 
(a) No.
from
Part I		 (b)
Purpose of gift		 (c)
Use of gift		 (d)
Description of how gift is held
 
(e)
Transfer of gift
Transferee's name, address, and ZIP 4 Relationship of transferor to transferee
 
 
       
 
Schedule B (Form 990, 990-EZ, or 990-PF) (2010)

Additional Data


Software ID:  
Software Version:  
SCHEDULE C
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service
Political Campaign and Lobbying Activities

For Organizations Exempt From Income Tax Under section 501(c) and section 527
SchCMd Bullet Complete if the organization is described below.
SchCMd Bullet Attach to Form 990 or Form 990-EZ. SchCMd Bullet See separate instructions.
OMB No. 1545-0047
2010
Open to Public
Inspection
If the organization answered “Yes,” to Form 990, Part IV, Line 3, or Form 990-EZ, Part V, line 46 (Political Campaign Activities), then
Round Bullet Section 501(c)(3) organizations: Complete Parts I-A and B. Do not complete Part I-C.
Round Bullet Section 501(c) (other than section 501(c)(3)) organizations: Complete Parts I-A and C below. Do not complete Part I-B.
Round Bullet Section 527 organizations: Complete Part I-A only.
If the organization answered “Yes,” to Form 990, Part IV, Line 4, or Form 990-EZ, Part VI, line 47 (Lobbying Activities), then
Round Bullet Section 501(c)(3) organizations that have filed Form 5768 (election under section 501(h)) Complete Part II-A. Do not complete Part II-B.
Round Bullet Section 501(c)(3) organizations that have NOT filed Form 5768 (election under section 501(h)): Complete Part II-B. Do not complete Part II-A.
If the organization answered “Yes,” to Form 990, Part IV, Line 5 (Proxy Tax) or Form 990-EZ, Part V, line 35a (Proxy Tax), then
Round Bullet Section 501(c)(4), (5), or (6) organizations: Complete Part III.
Name of the organization
INOVA HEALTH CARE SERVICES
 
Employer identification number

54-0620889
Part I-A
Complete if the organization is exempt under section 501(c) or is a section 527 organization.

1
Provide a description of the organization's direct and indirect political campaign activities on behalf of or in opposition to candidates for public office in Part IV.
2
Political expenditures ....................................SchCMd Bullet
$  
3
Volunteer hours ........................................
 

Part I-B
Complete if the organization is exempt under section 501(c)(3).
1
Enter the amount of any excise tax incurred by the organization under section 4955 .........SchCMd Bullet
$  
2
Enter the amount of any excise tax incurred by organization managers under section 4955 ......SchCMd Bullet
$  
3
If the organization incurred a section 4955 tax, did it file Form 4720 for this year? ..............
4a
Was a correction made? .........................................
b
If "Yes," describe in Part IV.
Part I-C
Complete if the organization is exempt under section 501(c) except section 501(c)(3).
1
Enter the amount directly expended by the filing organization for section 527 exempt function activities SchCMd Bullet
$  
2
Enter the amount of the filing organization's funds contributed to other organizations for section 527 exempt funtion activities ....................................SchCMd Bullet

$  
3
Total exempt function expenditures. Add lines 1 and 2. Enter here and on Form 1120-POL, line 17b..SchCMd Bullet

$  
4
Did the filing organization file Form 1120-POL for this year? ..........................
5
Enter the names, addresses and employer identification number (EIN) of all section 527 political organizations to which the filing
organization made payments. For each organization listed, enter the amount paid from the filing organization’s funds. Also enter the amount of political contributions received that were promptly and directly delivered to a separate political organization, such as a separate segregated fund or a political action committee (PAC). If additional space is needed, provide information in Part IV.
(a) Name (b) Address (c) EIN (d) Amount paid from filing organization's funds. If none, enter -0-. (e) Amount of political contributions received and promptly and directly delivered to a separate political organization. If none, enter -0-.










For Privacy Act and Paperwork Reduction Act Notice, see the instructions for Form 990.
Cat. No. 50084S
Schedule C (Form 990 or 990-EZ) 2010

Schedule C (Form 990 or 990-EZ) 2010
Page 2
Part II-A
Complete if the organization is exempt under section 501(c)(3) and filed Form 5768 (election under section 501(h)).
A Check
B Check
Limits on Lobbying Expenditures
(The term "expenditures" means amounts paid or incurred.) 		(a) Filing
Organization's
Totals 		(b) Affiliated Group
Totals
1a Total lobbying expenditures to influence public opinion (grass roots lobbying) ......    
b Total lobbying expenditures to influence a legislative body (direct lobbying) ....... 399,550  
c Total lobbying expenditures (add lines 1a and 1b) ................... 399,550  
d Other exempt purpose expenditures ........................ 1,252,877,112  
e Total exempt purpose expenditures (add lines 1c and 1d) ............... 1,253,276,662  
f Lobbying nontaxable amount. Enter the amount from the following table in both
columns.		 1,000,000  
  If the amount on line 1e, column (a) or (b) is:The lobbying nontaxable amount is:    
  Not over $500,00020% of the amount on line 1e.    
  Over $500,000 but not over $1,000,000$100,000 plus 15% of the excess over $500,000.    
  Over $1,000,000 but not over $1,500,000$175,000 plus 10% of the excess over $1,000,000.    
  Over $1,500,000 but not over $17,000,000$225,000 plus 5% of the excess over $1,500,000.    
  Over $17,000,000$1,000,000.    
       
g Grassroots nontaxable amount (enter 25% of line 1f) ................. 250,000  
h Subtract line 1g from line 1a. If zero or less, enter -0-. ................ 0  
i Subtract line 1f from line 1c. If zero or less, enter -0-. ................ 0  
j If there is an amount other than zero on either line 1h or line 1i, did the organization file Form 4720 reporting
section 4911 tax for this year? ......................................

4-Year Averaging Period Under Section 501(h)
(Some organizations that made a section 501(h) election do not have to complete all of the five
columns below. See the instructions for lines 2a through 2f on page 4.)
Lobbying Expenditures During 4-Year Averaging Period
  Calendar year (or fiscal year
beginning in) 		(a) 2007 (b) 2008 (c) 2009 (d) 2010 (e) Total
             
2a Lobbying non-taxable amount 1,000,000 1,000,000 1,000,000 1,000,000 4,000,000
             
b Lobbying ceiling amount
(150% of line 2a, column(e)) 		        6,000,000
             
c Total lobbying expenditures 75,210 30,933 152,775 399,550 658,468
             
d Grassroots non-taxable amount 250,000 250,000 250,000 250,000 1,000,000
             
e Grassroots ceiling amount
(150% of line 2d, column (e))		         1,500,000
             
f Grassroots lobbying expenditures          
Schedule C (Form 990 or 990-EZ) 2010


Schedule C (Form 990 or 990-EZ) 2010
Page 3
Part II-B
Complete if the organization is exempt under section 501(c)(3) and has NOT filed Form 5768 (election under section 501(h)).
(a)
Yes
No
(b)
Amount
1
During the year, did the filing organization attempt to influence foreign, national, state or local legislation, including any attempt to influence public opinion on a legislative matter or referendum, through the use of:
a
Volunteers? .........................................
 
 
b
Paid staff or management (include compensation in expenses reported on lines 1c through 1i)? ....
 
 
c
Media advertisements? ....................................
 
 
 
d
Mailings to members, legislators, or the public? .........................
 
 
 
e
Publications, or published or broadcast statements? .......................
 
 
 
f
Grants to other organizations for lobbying purposes? .......................
 
 
 
g
Direct contact with legislators, their staffs, government officials, or a legislative body? ........
 
 
 
h
Rallies, demonstrations, seminars, conventions, speeches, lectures, or any similar means? ......
 
 
 
i
Other activities? If "Yes," describe in Part IV ..........................
 
 
 
j
Total. lines 1c through 1i ...................................
 
2a
Did the activities in line 1 cause the organization to be not described in section 501(c)(3)? .....
 
 
b
If "Yes," enter the amount of any tax incurred under section 4912 .................
 
c
If "Yes," enter the amount of any tax incurred by organization managers under section 4912 .....
 
d
If the filing organization incurred a section 4912 tax, did it file Form 4720 for this year? .......
 
 
Part III-A
Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6).
Yes
No
1
Were substantially all (90% or more) dues received nondeductible by members? ................
1
 
 
2
Did the organization make only in-house lobbying expenditures of $2,000 or less? ................
2
 
 
3
Did the organization agree to carryover lobbying and political expenditures from the prior year? ..........
3
 
 
Part III-B
Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6) if BOTH Part III-A, lines 1 and 2 are answered “No” OR if Part III-A, line 3 is answered “Yes”.
1
Dues, assessments and similar amounts from members .....................
1
 
2
Section 162(e) non-deductible lobbying and political expenditures (do not include amounts of political
expenses for which the section 527(f) tax was paid).
a
Current year .........................................
2a
 
b
Carryover from last year ....................................
2b
 
c
Total ...........................................
2c
 
3
Aggregate amount reported in section 6033(e)(1)(A) notices of nondeductible section 162(e) dues .
3
 
4
If notices were sent and the amount on line 2c exceeds the amount on line 3, what portion of the excess does the organization agree to carryover to the reasonable estimate of nondeductible lobbying and political expenditure next year? ................................
4
 
5
Taxable amount of lobbying and political expenditures (see instructions) ..............
5
 
Part IV
Supplemental Information
Complete this part to provide the descriptions required for Part l-A, line 1; Part l-B, line 4; Part l-C, line 5; and Part ll-B, line 1i.
Also, complete this part for any additional information.
Identifier Return Reference Explanation
Schedule C (Form 990 or 990EZ) 2010

Additional Data


Software ID:  
Software Version:  

SCHEDULE D
(Form 990)
Department of the Treasury
Internal Revenue Service
Supplemental Financial Statements
SchDMd Bullet Complete if the organization answered "Yes," to Form 990,
Part IV, line 6, 7, 8, 9, 10, 11, or 12.
SchDMd Bullet Attach to Form 990. SchDMd Bullet See separate instructions.
OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
INOVA HEALTH CARE SERVICES
 
Employer identification number

54-0620889
Part I
Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Complete if the organization answered "Yes" to Form 990, Part IV, line 6.
(a) Donor advised funds (b) Funds and other accounts
1 Total number at end of year .......    
2 Aggregate contributions to (during year) ...    
3 Aggregate grants from (during year) ...    
4 Aggregate value at end of year .......    
5
Did the organization inform all donors and donor advisors in writing that the assets held in donor advised
funds are the organization's property, subject to the organization's exclusive legal control? ............
6
Did the organization inform all grantees, donors, and donor advisors in writing that grant funds may be
used only for charitable purposes and not for the benefit of the donor or donor advisor, or for any other purpose conferring impermissible private benefit. ...................................
Part II
Conservation Easements. Complete if the organization answered "Yes" to Form 990, Part IV, line 7.
1
Purpose(s) of conservation easements held by the organization (check all that apply).
2
Complete lines 2a–2d if the organization held a qualified conservation contribution in the form of a conservation easement on the last day of the tax year.
Held at the End of the Year
a Total number of conservation easements ....................... 2a  
b Total acreage restricted by conservation easements .................. 2b  
c Number of conservation easements on a certified historic structure included in (a) ..... 2c  
d Number of conservation easements included in (c) acquired after 8/17/06 ........ 2d  
3
Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during
the taxable year SchDMd Bullet  
4
Number of states where property subject to conservation easement is located SchDMd Bullet  
5
Does the organization have a written policy regarding the periodic monitoring, inspection, handling of violations, and
enforcement of the conservation easements it holds? .............................
6
Staff and volunteer hours devoted to monitoring, inspecting and enforcing conservation easements during the year SchDMd Bullet  
7
Amount of expenses incurred in monitoring, inspecting, and enforcing conservation easements during the year SchDMd Bullet $  
8
Does each conservation easement reported on line 2(d) above satisfy the requirements of section
170(h)(4)(B)(i) and 170(h)(4)(B)(ii)? ....................................
9
In Part XIV, describe how the organization reports conservation easements in its revenue and expense statement, and
balance sheet, and include, if applicable, the text of the footnote to the organization’s financial statements that describes
the organization’s accounting for conservation easements.
Part III
Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets.
Complete if the organization answered "Yes" to Form 990, Part IV, line 8.
1a
If the organization elected, as permitted under SFAS 116, not to report in its revenue statement and balance sheet works of
art, historical treasures, or other similar assets held for public exhibition, education or research in furtherance of public service,
provide, in Part XIV, the text of the footnote to its financial statements that describes these items.
b
If the organization elected, as permitted under SFAS 116, to report in its revenue statement and balance sheet works of art,
historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service,
provide the following amounts relating to these items:
(i)
Revenues included in Form 990, Part VIII, line 1 ........................SchDMd Bullet $  
(ii)
Assets included in Form 990, Part X ..............................SchDMd Bullet $  
2
If the organization received or held works of art, historical treasures, or other similar assets for financial gain, provide the
following amounts required to be reported under SFAS 116 relating to these items:
a
Revenues included in Form 990, Part VIII, line 1 ..........................SchDMd Bullet $  
b
Assets included in Form 990, Part X ...............................SchDMd Bullet $  
For Privacy Act and Paperwork Reduction Act Notice, see the Intructions for Form 990
Cat. No. 52283D
Schedule D (Form 990) 2010

Schedule D (Form 990) 2010
Page 2
Part III
Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued)
3
Using the organization’s accession and other records, check any of the following that are a significant use of its collection
items (check all that apply):
a
d
b
e
 
c
4
Provide a description of the organization’s collections and explain how they further the organization’s exempt purpose in
Part XIV.
5
During the year, did the organization solicit or receive donations of art, historical treasures or other similar
assets to be sold to raise funds rather than to be maintained as part of the organization’s collection?........
Part IV
Escrow and Custodial Arrangements. Complete if the organization answered "Yes" to Form 990,
Part IV, line 9, or reported an amount on Form 990, Part X, line 21.
1a
Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets not
included on Form 990, Part X? ....................................
b
If "Yes," explain the arrangement in Part XIV and complete the following table:
Amount
c Beginning balance ................................. 1c  
d Additions during the year .............................. 1d  
e Distributions during the year ............................. 1e  
f Ending balance ................................... 1f  
2a
Did the organization include an amount on Form 990, Part X, line 21? .....................
b
If “Yes,” explain the arrangement in Part XIV.
Part V
Endowment Funds. Complete if the organization answered "Yes" to Form 990, Part IV, line 10.
(a)Current Year (b)Prior Year (c)Two Years Back (d)Three Years Back (e)Four Years Back
1a Beginning of year balance ....      
b Contributions ........      
c Investment earnings or losses ...      
d Grants or scholarships .....      
e Other expenditures for facilities
and programs ........ 		     
f Administrative expenses ....      
g End of year balance ......      
2
Provide the estimated percentage of the year end balance held as:
a
Board designated or quasi-endowment: SchDMd Bullet  
b
Permanent endowment: SchDMd Bullet  
c
Term endowment: SchDMd Bullet  
3a
Are there endowment funds not in the possession of the organization that are held and administered for the
organization by:

Yes
No
(i) unrelated organizations ........................
3a(i)
 
 
(ii) related organizations ........................
3a(ii)
 
 
b
If "Yes" to 3a(ii), are the related organizations listed as required on Schedule R? .........
3b
 
 
4
Describe in Part XIV the intended uses of the organization's endowment funds.
Part VI
Investments—Land, Buildings, and Equipment. See Form 990, Part X, line 10.
Description of investment (a) Cost or other basis (investment) (b)Cost or other basis (other) (c) Accumulated depreciation (d) Book value
1a Land .................   44,581,882 44,581,882
b Buildings ................   579,959,463 246,374,369 333,585,094
c Leasehold improvements ............   314,960,540 202,007,400 112,953,140
d Equipment ................   742,024,372 562,985,880 179,038,492
e Other .................   61,761,529   61,761,529
Total. Add lines 1a-1e. (Column (d) should equal Form 990, Part X, column (B), line 10(c).)........SchDMdBullet 731,920,137
Schedule D (Form 990) 2010

Schedule D (Form 990) 2010
Page 3
Part VII
Investments—Other Securities. See Form 990, Part X, line 12.
(a) Description of security or category
(including name of security)		 (b)Book value (c) Method of valuation:
Cost or end-of-year market value
(1)Financial derivatives    
(2)Closely-held equity interests    
Other








Total. (Column (b) should equal Form 990, Part X, col.(B) line 12.)Small Bullet  
Part VIII
Investments—Program Related. See Form 990, Part X, line 13.
(a) Description of investment type (b) Book value (c) Method of valuation:
Cost or end-of-year market value








Total. (Column (b) should equal Form 990, Part X, col.(B) line 13.)Small Bullet  
Part IX
Other Assets. See Form 990, Part X, line 15.
(a) Description (b) Book value
(1) UNAMORTIZED BOND COSTS 6,112,838
(2) OTHER ASSETS 813,139
(3) DUE FROM SUBSIDIARIES AND AFFILIATES 1,157,393,560
(4) INVESTMENT IN SUBSIDIARIES AND JOINT VENTURES 12,382,708





Total. (Column (b) should equal Form 990, Part X, col.(B) line 15.)...........Small Bullet 1,176,702,245
Part X
Other Liabilities. See Form 990, Part X, line 25.
1.(a) Description of Liability (b) Amount
Federal Income Taxes  
THIRD PARTY SETTLEMENTS 41,592,850
NOTES PAYABLE AND OTHER 103,974,516
SELF INSURED LIABILITY 34,047,415
DEFERRED COSTS 11,540,277
POST RETIREMENT/EMPLOYMENT BENEFITS 22,992,925
INTEREST RATE SWAP LIABILITY 40,361,270



Total. (Column (b) should equal Form 990, Part X, col.(B) line 25.)Small Bullet 254,509,253
2. Fin 48 (ASC 740) Footnote. In Part XIV, provide the text of the footnote to the organization's financial statements that reports the organization's liability for uncertain tax positions under FIN 48 (ASC740).
Schedule D (Form 990) 2010

Schedule D (Form 990) 2010
Page 4
Part XI Reconciliation of Change in Net Assets from Form 990 to Financial Statements
1 Total revenue (Form 990, Part VIII, column (A), line 12) .................... 1  
2 Total expenses (Form 990, Part IX, column (A), line 25) ..................... 2  
3 Excess or (deficit) for the year. Subtract line 2 from line 1 ............. 3  
4 Net unrealized gains (losses) on investments .......................... 4  
5 Donated services and use of facilities ............................. 5  
6 Investment expenses ................................... 6  
7 Prior period adjustments .................................. 7  
8 Other (Describe in Part XIV) ................................. 8  
9 Total adjustments (net). Add lines 4 - 8 ............................. 9  
10 Excess or (deficit) for the year per financial statements. Combine lines 3 and 9 ......... 10  
Part XII Reconciliation of Revenue per Audited Financial Statements With Revenue per Return
1 Total revenue, gains, and other support per audited financial statements ....... 1  
2 Amounts included on line 1 but not on Form 990, Part VIII, line 12:
a Net unrealized gains on investments .......... 2a  
b Donated services and use of facilities ......... 2b  
c Recoveries of prior year grants ........... 2c  
d Other (Describe in Part XIV): ............ 2d  
e Add lines 2a through 2d ..................... 2e  
3 Subtract line 2e from line 1..................... 3  
4 Amounts included on Form 990, Part VIII, line 12, but not on line 1:
a Investment expenses not included on Form 990, Part VIII, line 7b . 4a  
b Other (Describe in Part XIV): ........... 4b  
c Add lines 4a and 4b....................... 4c  
5 Total Revenue. Add lines 3 and 4c. (This should equal Form 990, Part I, line 12.) ...... 5  
Part XIII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return
1 Total expenses and losses per audited financial statements ............. 1  
2 Amounts included on line 1 but not on Form 990, Part IX, line 25:
a Donated services and use of facilities .......... 2a  
b Prior year adjustments .............. 2b  
c Other losses ................ 2c  
d Other (Describe in Part XIV): ............ 2d  
e Add lines 2a through 2d...................... 2e  
3 Subtract line 2e from line 1..................... 3  
4 Amounts included on Form 990, Part IX, line 25, but not on line 1:
a Investment expenses not included on Form 990, Part VIII, line 7b .. 4a  
b Other (Describe in Part XIV): ............ 4b  
c Add lines 4a and 4b....................... 4c  
5 Total expenses. Add lines 3 and 4c. (This should equal Form 990, Part I, line 18.) ...... 5  
Part XIV
Supplemental Information
Complete this part to provide the descriptions required for Part II, lines 3, 5, and 9; Part III, lines 1a and 4; Part lV, lines 1b and 2b;
Part V, line 4; Part X; Part XI, line 8; Part XII, lines 2d and 4b; and Part XIII, lines 2d and 4b. Also complete this part to provide any additional information.
Identifier Return Reference Explanation
Description of Uncertain Tax Positions Under FIN 48: Part X: From Inova Health System consolidated financial statements including Inova Health Care Services: The Foundation, IHCS, AHSC, LHI and IHSS, are not-for-profit corporations and have been determined to be exempt from Federal income tax under the provisions of section 501(c)(3) of the Internal Revenue Code. IHI and its subsidiaries are taxable organizations. Deferred income taxes are provided for all significant timing differences between revenues and expenses reported for financial statement and for tax purposes. Management annually reviews its tax positions and has determined that there are no material uncertain tax positions that require recognition in the consolidated financial statements.
Schedule D (Form 990) 2010

Additional Data


Software ID:  
Software Version:  




SCHEDULE H
(Form 990)
Department of the Treasury
Internal Revenue Service
Hospitals
MediumBullet Complete if the organization answered "Yes" to Form 990, Part IV, question 20.
MediumBullet Attach to Form 990. MediumBullet See separate instructions.
OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
INOVA HEALTH CARE SERVICES
 
Employer identification number

54-0620889
Part I
Charity Care and Certain Other Community Benefits at Cost
Yes
No
1a
Does the organization have a charity care policy? If "No," skip to question 6a...........
1a
Yes
 
b
If "Yes," is it a written policy? .......................
1b
Yes
 
2
If the organization has multiple hospitals, indicate which of the following best describes application of the charity care policy to the various hospitals.
3
Answer the following based on the charity care eligibility criteria that applies to the largest number of the organization's patients.
a
Does the organization use Federal Poverty Guidelines (FPG) to determine eligibility for providing free care to low
income individuals? If "Yes," indicate which of the following is the FPG family income limit for eligibility for free care:
3a
Yes
 
b
Does the organization use FPG to determine eligibility for providing discounted care to low income individuals? If
"Yes," indicate which of the following is the family income limit for eligibility for discounted care: .....
3b
Yes
 
c
If the organization does not use FPG to determine eligibility, describe in Part VI the income based criteria for determining eligibility for free or discounted care. Include in the description whether the organization uses an asset test or other threshold, regardless of income, to determine eligibility for free or discounted care.
4
Does the organization's policy provide free or discounted care to the "medically indigent"? ......
4
Yes
 
5a
Does the organization budget amounts for free or discounted care provided under its charity care policy? ...
5a
Yes
 
b
If "Yes," did the organization's charity care expenses exceed the budgeted amount?.........
5b
Yes
 
c
If "Yes" to line 5b, as a result of budget considerations, was the organization unable to provide free or discounted
care to a patient who was eligibile for free or discounted care?...............
5c
 
No
6a
Does the organization prepare an annual community benefit report?.............
6a
Yes
 
6b
If "Yes," does the organization make it available to the public? ..............
6b
Yes
 
Complete the following table using the worksheets provided in the Schedule H instructions. Do not submit these worksheets with the Schedule H.
7
Charity Care and Certain Other Community Benefits at Cost
Charity Care and
Means-Tested Government Programs		 (a) Number of activities or programs (optional) (b) Persons served (optional) (c) Total community benefit expense (d) Direct offsetting revenue (e) Net community benefit expense (f) Percent of total expense
a Charity care at cost (from
Worksheets 1 and 2) .. 		    83,153,657   83,153,657 5.850 %
b Unreimbursed Medicaid (from
Worksheet 3, column a) . 		    45,863,807   45,863,807 3.230 %
c Unreimbursed costs—other means-tested government programs (from Worksheet 3, column b) ....            
dTotal Charity Care and
Means-Tested Government Programs ..... 		    129,017,464   129,017,464 9.080 %
Other Benefits
e Community health improvement
services and community
benefit operations (from
(Worksheet 4) .... 		    7,498,887   7,498,887 0.530 %
f Health professions education
(from Worksheet 5) .. 		    13,214,556   13,214,556 0.930 %
g Subsidized health services
(from Worksheet 6) .. 		    9,506,726   9,506,726 0.670 %
h Research (from Worksheet 7)     4,623,327   4,623,327 0.330 %
i Cash and in-kind contributions
to community groups
(from Worksheet 8) .. 		    93,600   93,600 0.010 %
jTotal Other Benefits ...     34,937,096   34,937,096 2.470 %
kTotal. Add lines 7d and 7j. ..     163,954,560   163,954,560 11.550 %
For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat. No. 50192T Schedule H (Form 990) 2010
Schedule H (Form 990) 2010
Page 2
Part II
Community Building Activities Complete this table if the organization conducted any community building activities.
(a) Number of activities or programs (optional) (b) Persons served (optional) (c) Total community building expense (d) Direct offsetting
revenue 		(e) Net community building expense (f) Percent of total expense
1 Physical improvements and housing            
2 Economic development            
3 Community support            
4 Environmental improvements            
5 Leadership development and training for community members            
6 Coalition building            
7 Community health improvement advocacy            
8 Workforce development            
9 Other            
10 Total            
Part III
Bad Debt, Medicare, & Collection Practices
Section A. Bad Debt Expense
Yes
No
1
Does the organization report bad debt expense in accordance with Heathcare Financial Management Association Statement No. 15? ..........................
1
 
No
2
Enter the amount of the organization's bad debt expense (at cost).....
2
26,152,114
3
Enter the estimated amount of the organization's bad debt expense (at cost) attributable to patients eligible under the organization's charity care policy ..
3
0
4
Provide in Part VI the text of the footnote to the organization's financial statements that describes bad debt expense. In addition, describe the costing methodology used in determining the amounts reported on lines 2 and 3, and rationale for including a portion of bad debt amounts as community benefit.
Section B. Medicare
5
Enter total revenue received from Medicare (including DSH and IME).....
5
239,570,099
6
Enter Medicare allowable costs of care relating to payments on line 5.....
6
266,054,880
7
Subtract line 6 from line 5. This is the surplus or (shortfall)........
7
-26,484,781
8
Describe in Part VI the extent to which any shortfall reported in line 7 should be treated as community benefit.
Also describe in Part VI the costing methodology or source used to determine the amount reported on line 6.
Check the box that describes the method used:
Section C. Collection Practices
9a
Does the organization have a written debt collection policy? ...............
9a
Yes
 
b
If "Yes," does the organization's collection policy contain provisions on the collection practices to be followed for patients who are known to qualify for charity care or financial assistance? Describe in Part VI......
9b
Yes
 
Part IV
Management Companies and Joint Ventures
(a) Name of entity (b) Description of primary
activity of entity 		(c) Organization's
profit % or stock
ownership % 		(d) Officers, directors,
trustees, or key
employees' profit %
or stock ownership% 		(e) Physicians'
profit % or stock
ownership %
11 Franconia-Springfield Surgery Center LLC
  		Surgical Services 60.680 %   39.420 %
22 Northern Virginia Surgery Center LLC
  		Surgical Services 60.000 %   40.000 %
33 Inova Woodburn Surgery Center LLC
  		Surgical Services 75.400 %   24.600 %
4
5
6
7
8
9
10
11
12
13
Schedule H (Form 990) 2010
Schedule H (Form 990) 2010
Page 3
Part VFacility Information
Section A. Hospital Facilities
(list in order of size, measured by total revenue per facility, from largest to smallest)
How many hospital facilities did the organization operate during the tax year?3
Name and address 		Licensed Hospital General-Medical-Surgical Children's Hospital Teaching Hospital Critical Hospital Research Facility ER-24Hours ER-Other Other (Describe)
1 INOVA FAIRFAX HOSPITAL
3300 GALLOWS ROAD
FALLS CHURCH,VA22046 		X X X X   X X    
2 INOVA FAIR OAKS HOSPITAL
3600 JOSEPH SIEWICK DRIVE
FAIRFAX,VA22033 		X X         X    
3 INOVA MOUNT VERNON HOSPITAL
2501 PARKER LANE
ALEXANDRIA,VA22306 		X X         X    
Schedule H (Form 990) 2010
Schedule H (Form 990) 2010
Page 4
Part VFacility Information (continued)

Section B. Facility Policies and Practices.

(Complete a separate Section B for each of the hospital facilities listed in Part V, Section A)
Name of Hospital Facility:INOVA FAIRFAX HOSPITAL
Line Number of Hospital Facility (from Schedule H, Part V, Section A):1

Yes No
Community Health Needs Assessment (Lines 1 through 7 are optional for 2010)
1 During the tax year or any prior tax year, did the hospital facility conduct a community health needs assessment (“Needs Assessment”)? If “No,” skip to question 8. ..................... 1    
If “Yes,” indicate what the Needs Assessment describes (check all that apply):
a A definition of the community served by the hospital facility
b Demographics of the community
c Existing health care facilities and resources within the community that are available to respond to the health needs of the community
d How data was obtained
e The health needs of the community
f Primary and chronic disease needs and other health issues of uninsured persons, low-income persons, and minority groups
g The process for identifying and prioritizing community health needs and services to meet those needs
h The process for consulting with persons representing the community’s interests
i Information gaps that limit the hospital facility’s ability to assess all of the community’s health needs
j Other (describe in Part VI)
2 Indicate the tax year the hospital facility last conducted a Needs Assessment: 20  
3 In conducting its most recent Needs Assessment, did the hospital facility take into account input from persons who represent the community served by the hospital facility? If “Yes,” describe in Part VI how the hospital facility took into account input from persons who represent the community, and identify the persons the hospital facility consulted. 3    
4 Was the hospital facility’s Needs Assessment conducted with one or more other hospital facilities? If “Yes,” list the other hospital facilities in Part VI............................ 4    
5 Did the hospital facility make its Needs Assessment widely available to the public? ........... 5    
If “Yes,” indicate how the Needs Assessment was made widely available (check all that apply):
a Hospital facility’s website
b Available upon request from the hospital facility
c Other (describe in Part VI)
6 If the hospital facility addressed needs identified in its most recently conducted Needs Assessment, indicate how (check all that apply):
a Adoption of an implementation strategy to address the health needs of the hospital facility’s community
b Execution of the implementation strategy
c Development of a community benefit plan for the facility
d Participation in community-wide community benefit plan
e Inclusion of a community benefit section in operational plans
f Adoption of a budget for provision of services that address the needs identified in the CHNA
g Prioritization of health needs in the community
h Prioritization of services that the hospital facility will undertake to meet health needs in its community
i Other (describe in Part VI)
7 Did the hospital facility address all of the needs identified in its most recently conducted Needs Assessment? If “No,” explain in Part VI which needs it has not addressed together with the reasons why it has not addressed such needs. 7    
Financial Assistance Policy
Did the hospital facility have in place during the tax year a written financial assistance policy that:
8 Explains eligibility criteria for financial assistance, and whether such assistance includes free or discounted care? 8    
9 Used federal poverty guidelines (FPG) to determine eligibility for providing free care to low incomeindividuals?.. 9    
If “Yes,” indicate the FPG family income limit for eligibility for free care:   %
Schedule H (Form 990) 2010
Schedule H (Form 990) 2010
Page 5
Part VFacility Information (continued)

Yes No
10 Used FPG to determine eligibility for providing discounted care to low income individuals?......... 10    
If “Yes,” indicate the FPG family income limit for eligibility for discounted care:   %
11 Explained the basis for calculating amounts charged to patients?................. 11    
If “Yes,” indicate the factors used in determining such amounts (check all that apply):
a Income level
b Asset level
c Medical indigency
d Insurance status
e Uninsured discount
f Medicaid/Medicare
g State regulation
h Other (describe in Part VI)
12 Explained the method for applying for financial assistance?................... 12    
13 Included measures to publicize the policy within the community served by the hospital facility?....... 13    
If “Yes,” indicate how the hospital facility publicized the policy (check all that apply):
a The policy was posted at all times on the hospital facility’s web site
b The policy was attached to all billing invoices
c The policy was posted in the hospital facility’s emergency rooms or waiting rooms
d The policy was posted in the hospital facility’s admissions offices
e The policy was provided, in writing, to patients upon admission to the hospital facility
f The policy was available upon request
g Other (describe in Part VI)
Billing and Collections
14 Did the hospital facility have in place during the tax year a separate billing and collections policy, or a written financial assistance policy that explained actions the hospital facility may take upon non-payment?........ 14    
15 Check all of the following collection actions against a patient that were permitted under the hospital facility's policies at any time during the tax year:
a Reporting to credit agency
b Lawsuits
c Liens on residences
d Body attachments or arrests
e Other (describe in Part VI)
16 Did the hospital facility engage in or authorize a third party to engage in any of the following collection actions during the tax year?................................... 16    
If “Yes,” check all collection actions in which the hospital facility or a third party engaged (check all that apply):
a Reporting to credit agency
b Lawsuits
c Liens on residences
d Body attachments
e Other (describe in Part VI)
17 Indicate which actions the hospital facility took before initiating any of the collection actions checked in question 16 (check all that apply):
a Notified patients of the financial assistance policy upon admission
b Notified patients of the financial assistance policy prior to discharge
c Notified patients of the financial assistance policy in communications with the patients regarding the patients’ bills
d Documented its determination of whether a patient who applied for financial assistance under the financial assistance policy qualified for financial assistance
e Other (describe in Part VI)
Schedule H (Form 990) 2010
Schedule H (Form 990) 2010
Page 6
Part VFacility Information (continued)

Policy Relating to Emergency Medical Care
Yes No
18 Did the hospital facility have in place during the tax year a written policy relating to emergency medical care that requires the hospital facility to provide, without discrimination, care for emergency medical conditions to individuals regardless of their eligibility under the hospital facility’s financial assistance policy?.......... 18    
If “No,” indicate the reasons why (check all that apply):
a The hospital facility did not provide care for any emergency medical conditions
b The hospital facility did not have a policy relating to emergency medical care
c The hospital facility limited who was eligible to receive care for emergency medical conditions (describe in Part VI)
d Other (describe in Part VI)
Charges for Medical Care
19 Indicate how the hospital facility determined the amounts generally billed to individuals who had insurance covering emergency or other medically necessary care (check all that apply):
a The hospital facility used the lowest negotiated commercial insurance rate for those services at the hospital facility
b The hospital facility used the average of the three lowest negotiated commercial insurance rates for those services at the hospital facility
c The hospital facility used the Medicare rate for those services
d Other (describe in Part VI)
20 Did the hospital facility charge any of its patients who were eligible for assistance under the hospital facility’s financial assistance policy, and to whom the hospital facility provided emergency or other medically necessary services, more than the amounts generally billed to individuals who had insurance covering such care?......... 20    
If “Yes,” explain in Part VI.
21 Did the hospital facility charge any of its patients an amount equal to the gross charge for services provided to that patient?................................... 21    
If “Yes,” explain in Part VI.
Schedule H (Form 990) 2010
Schedule H (Form 990) 2010
Page 7
Part VFacility Information (continued)

Section C. Other Facilities That Are Not Licensed, Registered, or Similarly Recognized as a Hospital Facility
(list in order of size, measured by total revenue per facility, from largest to smallest)
How many non-hospital facilities did the organization operate during the tax year?11
Name and address Type of Facility (Describe)
1 FRANCONIA SPRINGFIELD EMERGENCY CARE
6355 WALKER LANE
ALEXANDRIA,VA22310 		EMERGENCY ROOM
2 FRANCONIA SPRINGFIELD EMERGENCY CARE
6355 WALKER LANE
ALEXANDRIA,VA22310 		EMERGENCY ROOM
3 FRANCONIA SPRINGFIELD EMERGENCY CARE
6355 WALKER LANE
ALEXANDRIA,VA22310 		EMERGENCY ROOM
4 FRANCONIA SPRINGFIELD EMERGENCY CARE
6355 WALKER LANE
ALEXANDRIA,VA22310 		EMERGENCY ROOM
5 FRANCONIA SPRINGFIELD EMERGENCY CARE
6355 WALKER LANE
ALEXANDRIA,VA22310 		EMERGENCY ROOM
6 FRANCONIA SPRINGFIELD EMERGENCY CARE
6355 WALKER LANE
ALEXANDRIA,VA22310 		EMERGENCY ROOM
7 FRANCONIA SPRINGFIELD EMERGENCY CARE
6355 WALKER LANE
ALEXANDRIA,VA22310 		EMERGENCY ROOM
8 FRANCONIA SPRINGFIELD EMERGENCY CARE
6355 WALKER LANE
ALEXANDRIA,VA22310 		EMERGENCY ROOM
9 FRANCONIA SPRINGFIELD EMERGENCY CARE
6355 WALKER LANE
ALEXANDRIA,VA22310 		EMERGENCY ROOM
10 FRANCONIA SPRINGFIELD EMERGENCY CARE
6355 WALKER LANE
ALEXANDRIA,VA22310 		EMERGENCY ROOM
11 FRANCONIA SPRINGFIELD EMERGENCY CARE
6355 WALKER LANE
ALEXANDRIA,VA22310 		EMERGENCY ROOM
Schedule H (Form 990) 2010
Schedule H (Form 990) 2010
Page 8
Part VI
Supplemental Information
Complete this part to provide the following information.
1 Required descriptions. Provide the description required for Part I, lines 3c, 6a, and 7; Part II; Part III, lines 4, 8, and 9b; and Part V, Section B, lines 1j, 2, 4c, 6i, 7, 11i, 13i, 17l, 18l, 19e, 21d, 25, and 26.
2 Community health needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any community health needs assessments reported in Part V, Section B.
3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization’s financial assistance policy.
4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves.
5 Promotion of community health. Provide any other information important to describing how the organization’s hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.).
6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served.
7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report.
Identifier ReturnReference Explanation
    Part I, Line 3c: THE COMMUNITY BENEFIT REPORT IS INCLUDED IN THE CONSOLIDATED INOVA HEALTH SYSTEM REPORT TO THE COMMUNITY ON INOVA.ORG WEBSITE.
    Part I, Line 7: Cost to charge ratio method is used based on table 2 in the instructions. Total operating expense is divided by Total Gross Revenue to arrive at the cost to charge ratio.
    Part I, Line 7g: Cost of Physician Clinic is $5,623,131.
    Part I, L7 Col(f): Bad Debt Expense subtracted from calculation is $57,821,081
    Part III, Line 4: Bad Debt FootnotePatient accounts receivable include charges for amounts due from all patients less allowances for the excess of established charges over the payments to be received on behalf of patients covered by Medicare, Medicaid and other insurers. Bad debt expense is recognized when providing an allowance for uncollectible accounts. Inova has a self-insured discount program whereby uninsured patients receive a 35% discount for services rendered. Discounts to uninsured patients are classified as a deduction from revenue as opposed to bad debt.All operating entities of IHS treat emergency patients regardless of their ability to pay. Non-emergency medically necessary care is provided virtually without restriction at all IHS tax-exempt operating entities. A patient is classified as a charity patient based upon established IHS policies that consider patient income levels and available assets. Since IHS does not pursue collection of amounts that qualify as charity care, they are deducted from gross revenue. Unpaid accounts of patients who fail to provide required income and asset documentation to IHS are classified as bad debt expense. Guidelines used by IHS in determining charity care may differ from guidelines used by certain state or federal agencies.
    Part III, Line 8: The organization does not treat any Medicare shortfall as community benefit. The amounts are taken directly from the Medicare Cost Reports as filed using a cost to charge ratio method.
    Part III, Line 9b: Inova Health System strives to comply with the guidelines established by the American Hospital Association (AHA) and the International Code of Ethics and Professional Responsibility (ACA) which require members to engage in honorable, ethical and professional conduct of character not likely to deceive, defraud or harm the public.The policy of Inova Health System is to take legal action, only if there is evidence that the patient or responsible party has income and/or assets in excess of the levels suggested in the financial assistance policy; the patient has failed to provide the information needed to determine eligibility for financial assistance; or the patient is no longer meeting his obligations under an agreed-upon payment plan and has not informed the collections office of a change in financial condition.Staffs who work closely with patients, including those involved in billing and collection, are educated about hospital billing, financial assistance and collection policies and practices.Agencies acting on behalf of Inova Health System may not garnish wages or freeze bank accounts as a means of collecting unpaid hospital bills. Agencies may file liens only against estates. The foreclosure or forced sale of a patient's primary residence to pay an outstanding hospital bill is prohibited. It is not the policy of Inova Health System to file liens related to Medicare, Medicaid, MediCredit FFA or charity accounts.
    Inova Health System does not follow HFMA Statement 15 with respect to bad debts. The disclosure method followed does not result in materially different results.
    Part VI, Line 2: In prior years, Inova Health System (IHS) has used the following methods to determine the healthcare needs of the community:An assessment of community health status based on available morbidity and mortality data from secondary data sources such as Commonwealth of Virginia vital statistics, cancer registries and hospital discharge abstracts.Focus groups and surveys to determine community concerns and expectations related to health issues.Conferences to elicit broad community input and reach consensus on critical health care needs.Periodically updated the community needs reviews with a comprehensive analysis of community health status to determine how community health needs have changed since the prior reviews were completed. This analysis relied on secondary data sources including Virginia Department of Health statistics on births, deaths and diseases; information on hospital finances and utilization from Virginia Health Information Inc; and internal information on hospital utilization and charges from IHS. Study of community Health Impact on Hospital services using population based hospital discharge data.Engaged community leaders with special knowledge of, or an expertise in, public health, including representatives from the Alexandria Health Department, Fairfax County School District and a private non-profit. Northern Virginia Family Services provided expert consultation and guidance for the task force on the importance and challenges of establishing partnerships.As a result of this work Inova's programs expanded to address the identified Community Health Priorities. These goals were re-evaluated and updated to align with the Healthy People 2010 goals and outcomes. Community health needs assessments are now in progress across Northern Virginia sponsored by the various Health Departments using the framework of the Mobilizing for Action through Planning and Partnerships (MAPP) process. IHS is a participating member of the MAPP process teams across Northern Virginia. Inova served on the MAPP team's year-long task force for Arlington County, for which the final report was completed in 2008. In 2008 Inova also participated in the first of four assessments being conducted by Fairfax County. Fairfax County has three other assessments to complete the MAPP process. This process brings together a diverse group of key community stakeholders including local government, human service organizations, schools and universities, healthcare consumers, advocacy groups, hospitals, faith institutions, youth development organizations, economic and philanthropic groups, etc. to identify strengths and weaknesses in the ten essential public health services to provide a foundation for community health planning and improve the community's delivery of these services. Inova is also participating in the continuing local public health needs assessment in the City of Alexandria. The information from all the MAPP health needs assessments from all jurisdictions served by IHS will provide the new baseline for the ongoing three-year community needs assessments and will be incorporated into the community needs assessment Inova has initiated in 2011 to be completed in 2012. In addition to participating in the MAPP process, Inova is continually garnering feedback on their existing programs from program participants through monthly and quarterly satisfaction surveys and focus groups, participating in regional and local health related groups such as the Northern Virginia Access to Health Care Consortium, meeting with various cultural and ethnic groups in the community and using internal utilization and outcomes data, review of best practices and regional and national benchmark data and other external sources such as the Metropolitan Washington Council of Governments (COG) demographic data to develop strategic goals for health improvement activities. Collectively, all of this information is utilized in assessing community health needs to guide strategic planning efforts.
    Part VI, Line 3: IHS utilizes a multifaceted approach to educate and inform patients and the public about Inova's financial assistance/charity care policy. Inova has information posted at patient access sites regarding the availability of financial assistance/charity care and patient rights and responsibilities. In addition, Inova provides information about its financial assistance/charity care program and referrals to Inova financial counselors who assist patients in completing Inova's financial assistance/charity care application. This financial information is reviewed by the Inova Patient Accounts Department with the patient contacted if additional information is required in order to make a determination. The patient is subsequently provided a letter, notifying them as to the level of financial assistance/charity care for which they are qualified (whether it be 100% coverage or a sliding scale payment based upon their income level between 200-300% of the Federal Poverty Guideline). Inova also has Medicaid eligibility workers on-site in all hospitals, in our InovaCares Clinic for Women and Children (clinic for low income families) and in the community as part of our Partnership for Healthier Kids Access to Care program. Inova partners with schools across our jurisdiction to provide information about state funded health programs for children and contact information to meet with an eligibility worker responsible for enrolling families in state Medicaid programs. These eligibility workers also go out into the community attending community events such as health fairs, faith-based community activities and other family-centered community events to proactively meet with families to encourage enrollment in programs for which they are eligible. Inova has a section on its public website dedicated to information about billing and financial coordinators and financial assistance resources. On the site a brochure called "Financial Help for Healthcare Services" can be downloaded and is available in six languages to address the needs of our culturally diverse community.
    Part VI, Line 4: Inova Health Care Services (IHCS) is a not-for-profit corporation and a subsidiary of the parent organization, Inova Health System Foundation (Inova). Inova provides healthcare and related services throughout Northern Virginia and the greater metropolitan Washington, D.C. area, including certain contiguous counties of Virginia and Maryland. Northern Virginia is one of the fastest growing urban communities in the United States. With approximately 1,314 square miles, the region is the most densely populated in the Commonwealth of Virginia. Northern Virginia is comprised of several distinct communities, including the cities of Alexandria, Fairfax, Falls Church, Manassas and Manassas Park, and the counties of Arlington, Fairfax, Loudoun, and Prince William. The eastern sections are urbanized with attendant health problems of overcrowding and increasing demand for health services and public programs. IHCS' service area is primarily Fairfax County.The region's population served by IHCS is forecasted to grow 12% from 2010 through 2020 adding an estimated average of 22,000 persons a year. Population growth will be spurred by the comparative strength of the region's economy and high rates of in-migration from domestic and international locations. The region's population that is 65 years of age and older will more than double from 2000 to 2030, while the number of children will increase by about 30 percent during the period.Northern Virginia's population is more racially and ethnically diverse than in the rest of the state. With increasing diversity, economically disadvantaged populations and multiple languages, the need for access to culturally appropriate, flexible health care continues to grow. The Northern Virginia geographic region is 40.4 percent non-white, up from 23.2 percent in 1990, while the nation as a whole has a 33.9 percent non-white population (U.S. Census Bureau, 2007). Fairfax County, with more than one million residents, has the largest population centers in Northern Virginia and also has the largest non-white populations. At present, Asians, Hispanics, and African Americans represent 17.5 percent, 15.5 percent, and 9.0 percent of Fairfax County's population, respectively. More than one-quarter of the state's Hispanic population, which tripled between 1999 and 2006, reside in Fairfax County, according to a 2008 study by the University of Virginia's Weldon Cooper Center for Public Service.According to the 2007 Virginia Health Care Foundation Health Access Survey, approximately 14.8 percent of the overall Northern Virginia population currently lacks healthcare insurance. Compared to 2.5 percent of Whites in the region who lack health insurance, 39.6 percent of Hispanics, 6.8 percent of Asians, and 6.5 percent of African Americans in Northern Virginia are uninsured. Area residents most likely to be uninsured are those whose family incomes are at or below 200 percent of the poverty level, young adults (age 18-44), people who are non-white, unemployed individuals, part-time workers, and people who work at companies with fewer than 50 employees. Serving this population poses significant cultural and linguistic challenges, and these uninsured residents have widely divergent age, geographic, and health status characteristics.
    Part VI, Line 6: Inova Health System Foundation (IHSF), the parent company of Inova Health System, is a non-stock, not-for-profit corporation exempt from federal income taxes under the provisions of Section 501(c)(3) of the Internal Revenue Code. Inova Health System (Inova) provides healthcare and related services throughout northern Virginia and the greater metropolitan Washington, D.C. area, including certain continuous counties of Virginia and Maryland.Inova Health System's investment in the communities across Northern Virginia is evident by its programs providing access to care for low income, uninsured, underinsured and vulnerable populations; promoting health & wellness and increasing health literacy; providing the support and infrastructure for disaster preparedness; and providing programs to support development of our future healthcare workforce to meet the healthcare needs of the communities served. All Inova healthcare facilities have open medical staffs to provide the maximum access to qualified physicians. A Community Board of Trustees provides fiscal and quality oversight for Inova Health System's facilities to ensure the vision and mission of the organization are achieved.Access to Care ProgramsInova's commitment to supporting access to healthcare services is evident in the infrastructure created to support the many programs provided for the low income and uninsured population. Inova's Community Safety Net and Community Health Division are organized to address the healthcare needs of the community. In addition to the programs already described in the core Form 990, program accomplishments that increase access to healthcare services for the communities served by Inova Health System include the following programs which provide infrastructure support and services focused on vulnerable populations:The Streamlined Eligibility program (SES), launched by the successful implementation of the federally-funded 2001 CAP and 2004 HCAP grants, continues to be funded by Inova. SES provides local safety-net health care providers access to coordinated health care networks to serve the uninsured and underinsured residents of Northern Virginia. A shared database is used to determine a patient's eligibility for services which provides one central intake thereby streamlining and expediting the process. Inova supports the infrastructure and expansion of the program which currently consists of 12 public/private partners serving Fairfax County, City of Alexandria, Loudoun County, Arlington County, and Prince William County. The system currently houses over 285,000 eligibility records of uninsured and Medicaid patients.The Inova Partnership for Healthier Kids works with schools, community organizations, corporations and local governments to keep kids in our community healthy and ready to learn. In 2010, PHK assisted over 3,000 children with access to a source of comprehensive health care services such as Medicaid, FAMIS or local safety net providers.The Inova Access to Care program provides families with comprehensive application and enrollment assistance to connect them to an appropriate and affordable source of health care services. The Access to Care program provides students and families nutrition and physical activity education to increase knowledge and improve skills to make healthy lifestyle choices.Inova Kellar Center provides mental health, substance abuse treatment and special education services to children, adolescents and their families in our community regardless of their ability to pay. The program meets the needs of the children and families of Fairfax County by providing a full continuum of mental health services from outpatient therapy and medication management to Intensive Outpatient After-School Programs and full-day Partial Hospitalization Programs. During 2010 the Center provided 75,710 clinical and educational sessions to children and families. Inova Kellar Center has been involved in the development of a system of care model for the provision of mental health services within the region. Keeping with the goal of having children remain in the community, the Center continues to build capacity to meet the needs of the increasingly challenged population. The $300,000 grant from a private foundation to support the expansion of Kellar Center's system of care services for children has enabled the Center to expand Outpatient Family Services including psychological services and home-based services by underwriting the initial investment and "start up" costs associated with expansions. The Center has doubled its ability to provided ADLD assessments and psychological testing. The recruitment process for two additional child and adolescent psychiatrists has begun. These positions will provide services to over 500 additional patients by 2012.Health Promotion and Preventative Care ProgramsNorthern Virginia Healthy Kids' Coalition: Tipping the Scales for Better Health. Obesity has become an urgent public health problem in Northern Virginia, with over 100,000 children two to 18 years of age being either overweight or at-risk of becoming overweight. Inova Health System, in partnership with Northern Virginia schools, health departments, and government entities have joined together in a multi-year effort to address the childhood obesity epidemic by working to reverse this trend. The Inova Health System sponsors this community-based coalition. The key message for this program is: 9-5-2-1-0 for Health - help children and teens adopt healthy habits which promote healthy weight:9 - Get at least nine hours of sleep per night5 - Eat five servings of fruits and vegetables per day2 - Limit screen time outside of school to no more than two hours per day1 - Get at least one hour of physical activity per day0 - Eliminate or minimize consumption of beverages with sugar addedInova Partnering Actively Towards Health (iPATH). The iPATH mission is to provide opportunities for students to engage in health-oriented activities within our community, strengthen healthy living amongst adolescents, and expose students to exciting medical careers. The PATHway to Improved Health program is a ten-week program designed to engage selected student leaders that will champion health awareness activities in their schools and communities, empower students to partner with health professionals to assist Inova and their school in developing a new health initiative, and serve as a health ambassador to their families to help achieve the goal of improving the health of the community one family at a time. Congregational Health Partnership (CHP) has resourced and facilitated wellness of spirit, mind, and body through multi-faith communities. Some key accomplishments are: provided more than 102 health education and wellness promotion activities; distributed over 12,000 pieces of health education materials; conducted over 3,371 consultations and networking conversations; and increased the number of new faith communities partnered with CHP with 20 new Faith Congregations contacted this year. Everyday, Congregational Health Partnership serves vulnerable and marginalized community groups, works to decrease health disparities, stresses assessment, prevention and best practices health promotion, and emphasizes teaching, mentoring, coaching, and providing health information resources.Health Literacy and Health Equity ProgramsThe goal of Inova's Office of Health Equity (OHE) is to identify and address documented health disparities in Northern Virginia through internal and community initiatives with respect to quality, service and community. Guided by an Executive Advisory Committee, the OHE partners with community groups, conducts education and research, and provides services that will contribute to the elimination of disparities in our community. The following discussion presents the OHE's activities in the areas of staff training/education, services for the Deaf and Hard of Hearing, and Language Services.Language Services In support of patient safety and satisfaction, interpretation and translation services are provided at every Inova facility to facilitate communication with the 8-10 percent of Inova's patient population who has limited English proficiency (LEP). Medical Interpretation is provided by on-site medical interpreters and telephonically via the language line. Through December 2010 the OHE delivered 109,515 interpreter encounters (37,414 hours of interpreter service) across Inova facilities.Services for the Deaf and Hard of Hearing have undergone several changes in 2010, including creation of a Scheduler position, and deployment of NexTalk (video remote interpreting) in all Inova emergency departments, to improve our ability to communicate with deaf patients and their families on short notice. Through December 2010, 1,696 interpreted sessions (6,412 hours) have been delivered.
    Part VI, Line 7: Organization is part of Inova Health System included in description under Line 5.
  PART VI, LINE 5 Education and TrainingThrough our staff education and training programs, the Office of Health Equity facilitates the development of a culturally competent workforce. In support of this goal, the OHE continues to implement programs such as:The 21st Century Leadership Development Program is a nine-month program designed to identify and grow future Inova leaders. In March 2010, the OHE partnered with Inova's Office of Continuing Education to organize an all-day CME program on Health Disparities. The program featured several nationally-known speakers and had over 237 providers, including physicians, nurses, social workers and psychologists in attendance.Cultural Competence and Diversity Education programs are conducted regularly. In 2010, the OHE delivered 84 educational sessions and in-service trainings, reaching over 1,000 Inova employees. Content included, but was not limited to, providing culturally competent patient care, cross-cultural communication, cultural awareness and sensitivity, cross-cultural conflict resolution, and cross-cultural issues in the childcare setting.OHE is currently working with members of the Alexandria Homeless Services Coordinating Committee (AHSCC) and key staff at Inova Alexandria Hospital to ensure consistent Inova representation on the Committee and to present an in-service for a range of IAH staff, including case managers, social workers, patient care directors and additional emergency department personnel. The goal of this initiative is to reduce readmissions to IAH from the homeless population.A longstanding partnership between Fairfax County Public Library System and Inova Health System, the Health Information Partnership (HIP) is dedicated to increasing Health Literacy throughout Fairfax County. Programs sponsored by and administered through the partnership include Literature in Medicine and Ask Me Three focused on educating the public on optimizing communication with healthcare providers to ensure understanding of healthcare information and treatment provided. In the fall of 2010, the HIP hosted a traveling exhibit from the National Institutes of Health's National Library of Medicine on the topic titled "Changing the Face of Medicine: Celebrating America's Women Physicians."The exhibit tells the extraordinary story of how American women who wanted to practice medicine have struggled over the past two centuries to gain access to medical education and to work in the specialty they chose. It describes women's successful quest to become doctors and introduces audiences to outstanding physicians from across the United States. Interactive kiosks provide educational activities, information about medical careers, and biographies of outstanding women physicians. These interactive elements help the exhibit appeal to those within and outside of the medical community, adults and children, and men and women.Disaster Preparedness - As part of a regional alliance of all hospitals across Northern Virginia to provide a coordinated response in the event of a disaster, Inova Health System has taken a leadership role. Inova funds and provides the site for the Regional Hospital Coordinating Center (RHCC), providing 24/7 coverage for Incident Command and Operations Chief. Inova operates an E-ICU which, during a disaster, facilitates access to and management of all critical care beds within Inova Health System. Workforce ProgramsMilitary to Medicine, a non-profit military service organization of Inova Health System, provides healthcare training and employment opportunity assistance for military spouses, wounded warriors and their caregivers, veterans, members of the National Guard, reservists and their spouses and transitioning service members so they can become productive members of the healthcare workforce. Military to Medicine became a national military service organization in October 2008 when agreements were formalized with the U.S. Army Reserve and the Department of Defense.
Schedule H (Form 990) 2010
Additional Data


Software ID:  
Software Version:  
Schedule J
(Form 990)
Department of the Treasury
Internal Revenue Service
Compensation Information
For certain Officers, Directors, Trustees, Key Employees, and Highest
Compensated Employees
SchJMediumBullet Complete if the organization answered "Yes" to Form 990,
Part IV, question 23.
SchJMediumBullet Attach to Form 990. SchJMediumBullet See separate instructions.
OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
INOVA HEALTH CARE SERVICES
 
Employer identification number

54-0620889
Part I
Questions Regarding Compensation
Yes
No
1a
Check the appropiate box(es) if the organization provided any of the following to or for a person listed in Form
990, Part VII, Section A, line 1a. Complete Part III to provide any relevant information regarding these items.
b
If any of the boxes in line 1a are checked, did the organization follow a written policy regarding payment or reimbursement orprovision of all the expenses described above? If "No," complete Part III to explain....
1b
Yes
 
2
Did the organization require substantiation prior to reimbursing or allowing expenses incurred by all
officers, directors, trustees, and the CEO/Executive Director, regarding the items checked in line 1a? ....
2
Yes
 
3
Indicate which, if any, of the following the organization uses to establish the compensation of the
organization's CEO/Executive Director. Check all that apply.
4
During the year, did any person listed in Form 990, Part VII, Section A, line 1a with respect to the filing organization or a related organization:
a
Receive a severance payment or change-of-control payment? ...............
4a
Yes
 
b
Participate in, or receive payment from, a supplemental nonqualified retirement plan? ........
4b
Yes
 
c
Participate in, or receive payment from, an equity-based compensation arrangement? ........
4c
 
No
If "Yes" to any of lines 4a-c, list the persons and provide the applicable amounts for each item in Part III.
Only 501(c)(3) and 501(c)(4) organizations only must complete lines 5-9.
5
For persons listed in form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the revenues of:
a
The organization? ...........................
5a
 
No
b
Any related organization? .........................
5b
 
No
If "Yes," to line 5a or 5b, describe in Part III.
6
For persons listed in form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the net earnings of:
a
The organization? ...........................
6a
 
No
b
Any related organization? .........................
6b
 
No
If "Yes," to line 6a or 6b, describe in Part III.
7
For persons listed in Form 990, Part VII, Section A, line 1a, did the organization provide any non-fixed
payments not described in lines 5 and 6? If "Yes," describe in Part III ............
7
 
No
8
Were any amounts reported in Form 990, Part VII, paid or accured pursuant to a contract that was
subject to the initial contract exception described in Regs. section 53.4958-4(a)(3)? If "Yes," describe
in Part III .............................
8
 
No
9
If "Yes" to line 8, did the organization also follow the rebuttable presumption procedure described in Regulations section 53.4958-6(c)? .........................
9
 
 
For Privacy Act and Paperwork Reduction Act Notice, see the Intructions for Form 990
Cat. No. 50053T
Schedule J (Form 990) 2010

Schedule J (Form 990) 2010
Page 2
Part II
Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees. Use Schedule J-1 if additional space needed.
For each individual whose compensation must be reported in Schedule J, report compensation from the organization on row (i) and from related organizations, described in the
instructions on row (ii). Do not list any individuals that are not listed on Form 990, Part VII.

Note. The sum of columns (B)(i)-(iii) must equal the applicable column (D) or column (E) amounts on Form 990, Part VII, line 1a.
(A) Name (B) Breakdown of W-2 and/or 1099-MISC compensation (C) Retirement and other deferred compensation (D) Nontaxable
benefits		 (E) Total of columns
(B)(i)-(D) 		(F) Compensation
reported in prior
Form 990 or
Form 990-EZ
(i) Base compensation (ii) Bonus & incentive compensation (iii) Other reportable compensation
(1) JKNOX SINGLETON (i)
(ii)		 0
1,141,985 		0
564,307 		0
3,033,720 		0
578,200 		0
20,066 		0
5,338,278 		0
0
(2) RICHARD MAGENHEIMER (i)
(ii)		 0
584,341 		0
228,221 		0
118,799 		0
53,200 		0
21,411 		0
1,005,972 		0
0
(3) JOHN GAUL (i)
(ii)		 355,105
0 		35,875
0 		20,371
0 		47,314
0 		17,482
0 		476,147
0 		0
0
(4) MARK STAUDER (i)
(ii)		 0
797,062 		0
334,837 		0
43,364 		0
173,696 		0
20,111 		0
1,369,070 		0
0
(5) LEWIS PASTERNAK (i)
(ii)		 0
593,711 		0
242,830 		0
36,370 		0
140,327 		0
23,618 		0
1,036,856 		0
0
(6) TODD STOTTLEMYER (i)
(ii)		 0
455,492 		0
263,165 		0
33,922 		0
113,624 		0
23,259 		0
889,462 		0
0
(7) JOHN NIEDERHUBER (i)
(ii)		 0
259,131 		0
325,000 		0
112,533 		0
15,283 		0
4,066 		0
716,013 		0
0
(8) KYLANNE SILVERSTONE (i)
(ii)		 0
428,357 		0
150,866 		0
33,748 		0
123,438 		0
14,320 		0
750,729 		0
0
(9) WAYNE DIEWALD (i)
(ii)		 0
352,099 		0
86,267 		0
84,434 		0
51,442 		0
17,114 		0
591,356 		0
0
(10) RODNEY HUEBBERS (i)
(ii)		 0
281,065 		0
150,581 		0
21,090 		0
47,535 		0
12,273 		0
512,544 		0
0
(11) PAT WALTERS (i)
(ii)		 418,948
0 		147,733
0 		97,062
0 		53,200
0 		15,178
0 		732,121
0 		0
0
(12) JOHN FITZGERALD (i)
(ii)		 371,084
0 		111,972
0 		36,370
0 		91,743
0 		16,026
0 		627,195
0 		29,596
0
(13) GEOFFREY BROWN (i)
(ii)		 292,278
0 		197,431
0 		23,477
0 		91,165
0 		16,228
0 		620,579
0 		0
0
(14) PATRICK CHRISTIANSEN (i)
(ii)		 331,835
0 		90,676
0 		81,437
0 		65,004
0 		14,710
0 		583,662
0 		25,643
0
(15) MARK RUNYON (i)
(ii)		 352,494
0 		128,626
0 		20,941
0 		100,651
0 		20,259
0 		622,971
0 		0
0
(16) BARBARA DOYLE (i)
(ii)		 318,637
0 		88,522
0 		33,449
0 		113,376
0 		9,780
0 		563,764
0 		0
0
(17) MAUREEN SWICK (i)
(ii)		 201,494
0 		25,000
0 		52,373
0 		25,304
0 		8,069
0 		312,240
0 		0
0
(18) ANGELA MANNINO (i)
(ii)		 286,194
0 		35,454
0 		38,924
0 		47,374
0 		19,522
0 		427,468
0 		0
0
(19) JAMES ECKLUND (i)
(ii)		 665,077
0 		152,425
0 		810
0 		47,700
0 		17,093
0 		883,105
0 		0
0
(20) JOSEPH WATSON (i)
(ii)		 609,501
0 		90,588
0 		810
0 		31,200
0 		20,693
0 		752,792
0 		0
0
(21) JOSEPH HALLAL (i)
(ii)		 217,394
0 		56,304
0 		361,412
0 		16,294
0 		4,178
0 		655,582
0 		0
0
(22) ROBERT HYMES (i)
(ii)		 417,863
0 		170,000
0 		450
0 		47,700
0 		19,564
0 		655,577
0 		0
0
(23) CARY SCHWARTZBACH (i)
(ii)		 415,445
0 		170,000
0 		1,035
0 		7,350
0 		20,826
0 		614,656
0 		0
0
(24) JAMES KIM (i)
(ii)		 203,170
0 		33,267
0 		9,772
0 		40,922
0 		18,735
0 		305,866
0 		0
0
(25) RONALD EWALD (i)
(ii)		 232,669
0 		51,636
0 		22,513
0 		76,495
0 		14,225
0 		397,538
0 		0
0
(26) JEFFREY COWART (i)
(ii)		 218,675
0 		43,002
0 		50,205
0 		22,344
0 		15,591
0 		349,817
0 		20,072
0
(27) PATRICIA BYRNES SCHMEHL (i)
(ii)		 197,097
0 		40,789
0 		19,084
0 		68,441
0 		25,379
0 		350,790
0 		0
0
(28) ALIREZA MALEKZADEH (i)
(ii)		 414,080
0 		170,000
0 		405
0 		31,200
0 		23,826
0 		639,511
0 		0
0
(29) JAMES PIPER (i)
(ii)		 345,495
0 		115,500
0 		828
0 		52,715
0 		18,513
0 		533,051
0 		0
0
(30) JOHN HAMILTON (i)
(ii)		 395,496
0 		53,400
0 		630
0 		47,700
0 		18,584
0 		515,810
0 		0
0
(31) JOHANN JONSSON (i)
(ii)		 345,494
0 		126,000
0 		1,548
0 		28,699
0 		18,513
0 		520,254
0 		0
0
Schedule J (Form 990) 2010

Schedule J (Form 990) 2010
Page 3
Part III
Supplemental Information
Complete this part to provide the information, explanation, or descriptions required for Part I, lines 1a, 1b, 4c, 5a, 5b, 6a, 6b, 7, and 8. Also complete this part for any additional information.
Identifier Return Reference Explanation
  Part I, Line 1a Employee Angela Mannino received a temporary housing benefit which was included on the W-2.
  Part I, Lines 4a-b Severance paid to Joseph Hallal $313,827 SERP Plan Payments: J. Knox Singleton $209,003 Richard Magenheimer $85,051 Patrick Christiansen $48,235 Jeffrey Cowart $30,536 Wayne Diewald $52,002 Joseph Hallal $30,546 Pat Walters $63,314 The Supplemental Executive Retirement plan (SERP Plan) is a nonqualified retirement plan. Employees eligible to participate are Executive Directors, Assistant Vice Presidents, Vice Presidents, Senior Vice Presidents, Executive Vice Presidents, CFO, COO, and CEO. Each year, a certain percentage of each participant's base salary is contributed to the SERP Plan. This amount ranges from 5% to 20%, depending on position. After three years of continuous participation, participants vest in 50% of their balance at that time and are paid out the vested balance as a taxable event. After a total of six years participation and after attaining age 50, participants are 100% vested and are paid out their remaining balance as a taxable event. Vesting then reverts to a 3 year rolling schedule until year 12. Thereafter, the annual contribution is paid out to the participant each year as a taxable event.
Schedule J (Form 990) 2010

Additional Data


Software ID:  
Software Version:  
Schedule K
(Form 990)
Department of the Treasury
Internal Revenue Service
Supplemental Information on Tax Exempt Bonds
SchKMediumBullet Complete if the organization answered "Yes" to Form 990, Part IV, line 24a. Provide descriptions,
explanations, and any additional information in Schedule O (Form 990).
SchKMediumBullet Attach to Form 990. SchKMediumBullet See separate instructions.
OMB No. 1545-0047
2010
Open to Public
Inspection
Name of the organization
INOVA HEALTH CARE SERVICES
 
Employer identification number
54-0620889
Part I
Bond Issues
(a) Issuer Name (b) Issuer EIN (c) CUSIP # (d) Date Issued (e) Issue Price (f) Description of Purpose (g) Defeased (h) On
Behalf of
Issuer 		(i) Pool
financing
Yes No Yes No Yes No
A Industrial Development Authority of Fairfax County Virginia
  		54-1470567 303823FM5 05-12-2005 124,000,000 See Part V   X   X   X
B Industrial Development Authority of Fairfax County Virginia
  		54-1470567 303823FR4 05-12-2005 99,400,000 See Part V   X   X   X
C Industrial Development Authority of Fairfax County Virginia
  		54-1470567 303823GL6 04-16-2009 350,414,313 See Part V   X   X   X
D Industrial Development Authority of Fairfax County Virginia
  		54-1470567 303823JH2 12-15-2009 73,433,655 See Part V   X   X   X
Industrial Development Authority of Fairfax County Virginia
  		54-1470567 303823JJ8 03-08-2010 190,000,000 See Part V   X   X   X
Part II
Proceeds
A B C D
1 Amount of bonds retired. . . . . 6,820,000 15,790,000 193,470,000 3,310,000
2 Amount of bonds defeased . . . .        
3 Total proceeds of issue . . . . 124,000,000 99,400,000 350,414,313 73,433,655
4 Gross proceeds in reserve funds . .        
5 Capitalized interest from proceeds. 3,604,217      
6 Proceeds in refunding escrow. . . . .        
7 Issuance costs from proceeds . . . 367,125 294,292 4,384,313 660,539
8 Credit enhancement from proceeds.        
9 Working capital expenditures from proceeds . .        
10 Capital expenditures from proceeds . . 120,028,859   69,055,868  
11 Other spent proceeds . .        
12 Other unspent proceeds. . . 143,584,270      
13 Year of substantial completion . . . 2007
Yes No Yes No Yes No Yes No
14 Were the bonds issued as part of a current refunding issue?   X   X   X    
15 Were the bonds issued as part of an advance refunding issue?   X X     X   X
16 Has the final allocation of proceeds been made? . . X   X   X   X  
17 Does the organization maintain adequate books and records to support the final allocation of proceeds? . X   X   X   X  
Part III
Private Business Use
A B C D
Yes No Yes No Yes No Yes No
1 Was the organization a partner in a partnership, or a member of an LLC, which owned property financed by tax-exempt bonds? . . .   X   X   X   X
2 Are there any lease arrangements that may result in private business use of bond-financed property? . . . . . X     X   X   X
For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50193E
Schedule K (Form 990) 2010
Schedule K (Form 990) 2010
Page 2
Part III
Private Business Use (Continued)
A B C D
Yes No Yes No Yes No Yes No
3a Are there any management or service contracts that may result in private business use? X     X   X   X
b Are there any research agreements that may result in private business use of bond-financed property? . . X     X X     X
c Does the organization routinely engage bond counsel or other outside counsel to review any management or service contracts or research agreements relating to the financed property? . X     X X     X
4 Enter the percentage of financed property used in a private business use by entities other than a section 501(c)(3) organization or a state or local government . . . . . . . . . . . . . SchKMediumBullet 1.100 %   1.100 %  
5 Enter the percentage of financed property used in a private business use as a result of unrelated trade or business activity carried on by your organization, another section 501(c)(3) organization, or a state or local government . SchKMediumBullet 0.300 %   0.300 %  
6 Total of lines 4 and 5 . . .. . . . . . 1.400 %   1.400 %  
7 Has the organization adopted management practices and procedures to ensure the post-issuance compliance of its tax-exempt bond liabilities? X     X X     X
Part IV
Arbitrage
A B C D
Yes No Yes No Yes No Yes No
1 Has a Form 8038-T, Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate, been filed with respect to the bond issue? . . .   X   X   X   X
2 Is the bond issue a variable rate issue? X   X     X   X
3a Has the organization or the governmental issuer entered into a hedge with respect to the bond issue? X     X   X   X
b Name of provider . Morgan Stanley
Capital Services 		 
  		 
  		 
 
c Term of hedge . . 30.000000000000      
d Was the hedge superintegrated? .   X            
e Was a hedge terminated? .   X            
4a Were gross proceeds invested in a GIC? .   X   X   X   X
b Name of provider .  
  		 
  		 
  		 
 
c Term of GIC . .        
d Was the regulatory safe harbor for establishing the fair market value of the GIC satisfied? .                
5 Were any gross proceeds invested beyond an available temporary period? .   X   X   X   X
6 Did the bond issue qualify for an exception to rebate? . . .   X   X   X   X
Schedule K (Form 990) 2010

Schedule K (Form 990) 2010
Page 3
Part V
Supplemental Information
Complete this part to provide additional information for responses to questions on Schedule K (see instructions).
Identifier Return Reference Explanation
Part I, Column F Description of Purpose Bond A Renovate and expand certain portions of Inova Alexandria Hospital (IAH), Inova Fairfax Hospital (IFH), Inova Fair Oaks Hospital (IFOH); 2) Acquire certain capital equipment for use in or in connection with IAH, IFH, IFOH, and Inova Mount Vernon Hospital and renovate any space necessary or incidental to the installation of such equipment; 3) Pay issuance costs for Series 2005 A and B; 4) Refund prior bonds issued by the Industrial Development Authority of Loudoun County, Virginia Hospital Revenue Bonds, Series 1995 issued 10/26/1995 and 2002A issued 6/27/2002, and pay issuance costs of Series 2005D; 5) Refund prior bonds Series 2001A, B, C, and D issued 12/11/2001 Bond B Refund prior bonds -1996A issued 4/18/1996; 2) Pay issuance costs of series 2005C bonds Bond C Refund prior bonds - 2008ABC issued 4/17/08; 2) Pay issuance costs of series 2009A and B bonds; 3) Finance the costs of acquisition, construction, renovation, installation and equipping of the 2009 Projects Bond D Refund prior bonds - 1998A issued 3/10/98; 2) Pay issuance costs of series 2009C bonds Bond E Refund prior bonds - 2009B issued 4/16/2009; 2) Pay issuance costs of series 2010A bonds
Part II, Line 3, Column C Total Proceeds Issue price per Form 8038 for 2009AB 540,414,313 Refunded bonds- 2009B to 2010A (190,000,000) Part 1, row C, column E 350,414,313
PART III, LINE 7 COMPLIANCE Part III relates to PBU and bonds that are required to disclose PBU based on post 2002 issuances (no refi bonds before 2002). So only 2005A, 2009A and 2010A bonds are applicable for this section. The other 2 bonds have NO answers since the section isn't applicable.
Schedule K (Form 990) 2010

Additional Data


Software ID:  
Software Version:  

Schedule K
(Form 990)
Department of the Treasury
Internal Revenue Service
Supplemental Information on Tax Exempt Bonds
SchKMediumBullet Complete if the organization answered "Yes" to Form 990, Part IV, line 24a. Provide descriptions,
explanations, and any additional information in Schedule O (Form 990).
SchKMediumBullet Attach to Form 990. SchKMediumBullet See separate instructions.
OMB No. 1545-0047
2010
Open to Public
Inspection
Name of the organization
INOVA HEALTH CARE SERVICES
 
Employer identification number
54-0620889
Part I
Bond Issues
(a) Issuer Name (b) Issuer EIN (c) CUSIP # (d) Date Issued (e) Issue Price (f) Description of Purpose (g) Defeased (h) On
Behalf of
Issuer 		(i) Pool
financing
Yes No Yes No Yes No
A Industrial Development Authority of Fairfax County Virginia
  		54-1470567 303823FM5 05-12-2005 124,000,000 See Part V   X   X   X
B Industrial Development Authority of Fairfax County Virginia
  		54-1470567 303823FR4 05-12-2005 99,400,000 See Part V   X   X   X
C Industrial Development Authority of Fairfax County Virginia
  		54-1470567 303823GL6 04-16-2009 350,414,313 See Part V   X   X   X
D Industrial Development Authority of Fairfax County Virginia
  		54-1470567 303823JH2 12-15-2009 73,433,655 See Part V   X   X   X
Industrial Development Authority of Fairfax County Virginia
  		54-1470567 303823JJ8 03-08-2010 190,000,000 See Part V   X   X   X
Part II
Proceeds
A B C D
1 Amount of bonds retired. . . . . 6,820,000 15,790,000 193,470,000 3,310,000
2 Amount of bonds defeased . . . .        
3 Total proceeds of issue . . . . 124,000,000 99,400,000 350,414,313 73,433,655
4 Gross proceeds in reserve funds . .        
5 Capitalized interest from proceeds. 3,604,217      
6 Proceeds in refunding escrow. . . . .        
7 Issuance costs from proceeds . . . 367,125 294,292 4,384,313 660,539
8 Credit enhancement from proceeds.        
9 Working capital expenditures from proceeds . .        
10 Capital expenditures from proceeds . . 120,028,859   69,055,868  
11 Other spent proceeds . .        
12 Other unspent proceeds. . . 143,584,270      
13 Year of substantial completion . . . 2007
Yes No Yes No Yes No Yes No
14 Were the bonds issued as part of a current refunding issue?   X   X   X    
15 Were the bonds issued as part of an advance refunding issue?   X X     X   X
16 Has the final allocation of proceeds been made? . . X   X   X   X  
17 Does the organization maintain adequate books and records to support the final allocation of proceeds? . X   X   X   X  
Part III
Private Business Use
A B C D
Yes No Yes No Yes No Yes No
1 Was the organization a partner in a partnership, or a member of an LLC, which owned property financed by tax-exempt bonds? . . .   X   X   X   X
2 Are there any lease arrangements that may result in private business use of bond-financed property? . . . . . X     X   X   X
For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50193E
Schedule K (Form 990) 2010
Schedule K (Form 990) 2010
Page 2
Part III
Private Business Use (Continued)
A B C D
Yes No Yes No Yes No Yes No
3a Are there any management or service contracts that may result in private business use? X     X   X   X
b Are there any research agreements that may result in private business use of bond-financed property? . . X     X X     X
c Does the organization routinely engage bond counsel or other outside counsel to review any management or service contracts or research agreements relating to the financed property? . X     X X     X
4 Enter the percentage of financed property used in a private business use by entities other than a section 501(c)(3) organization or a state or local government . . . . . . . . . . . . . SchKMediumBullet 1.100 %   1.100 %  
5 Enter the percentage of financed property used in a private business use as a result of unrelated trade or business activity carried on by your organization, another section 501(c)(3) organization, or a state or local government . SchKMediumBullet 0.300 %   0.300 %  
6 Total of lines 4 and 5 . . .. . . . . . 1.400 %   1.400 %  
7 Has the organization adopted management practices and procedures to ensure the post-issuance compliance of its tax-exempt bond liabilities? X     X X     X
Part IV
Arbitrage
A B C D
Yes No Yes No Yes No Yes No
1 Has a Form 8038-T, Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate, been filed with respect to the bond issue? . . .   X   X   X   X
2 Is the bond issue a variable rate issue? X   X     X   X
3a Has the organization or the governmental issuer entered into a hedge with respect to the bond issue? X     X   X   X
b Name of provider . Morgan Stanley
Capital Services 		 
  		 
  		 
 
c Term of hedge . . 30.000000000000      
d Was the hedge superintegrated? .   X            
e Was a hedge terminated? .   X            
4a Were gross proceeds invested in a GIC? .   X   X   X   X
b Name of provider .  
  		 
  		 
  		 
 
c Term of GIC . .        
d Was the regulatory safe harbor for establishing the fair market value of the GIC satisfied? .                
5 Were any gross proceeds invested beyond an available temporary period? .   X   X   X   X
6 Did the bond issue qualify for an exception to rebate? . . .   X   X   X   X
Schedule K (Form 990) 2010

Schedule K (Form 990) 2010
Page 3
Part V
Supplemental Information
Complete this part to provide additional information for responses to questions on Schedule K (see instructions).
Identifier Return Reference Explanation
Part I, Column F Description of Purpose Bond A Renovate and expand certain portions of Inova Alexandria Hospital (IAH), Inova Fairfax Hospital (IFH), Inova Fair Oaks Hospital (IFOH); 2) Acquire certain capital equipment for use in or in connection with IAH, IFH, IFOH, and Inova Mount Vernon Hospital and renovate any space necessary or incidental to the installation of such equipment; 3) Pay issuance costs for Series 2005 A and B; 4) Refund prior bonds issued by the Industrial Development Authority of Loudoun County, Virginia Hospital Revenue Bonds, Series 1995 issued 10/26/1995 and 2002A issued 6/27/2002, and pay issuance costs of Series 2005D; 5) Refund prior bonds Series 2001A, B, C, and D issued 12/11/2001 Bond B Refund prior bonds -1996A issued 4/18/1996; 2) Pay issuance costs of series 2005C bonds Bond C Refund prior bonds - 2008ABC issued 4/17/08; 2) Pay issuance costs of series 2009A and B bonds; 3) Finance the costs of acquisition, construction, renovation, installation and equipping of the 2009 Projects Bond D Refund prior bonds - 1998A issued 3/10/98; 2) Pay issuance costs of series 2009C bonds Bond E Refund prior bonds - 2009B issued 4/16/2009; 2) Pay issuance costs of series 2010A bonds
Part II, Line 3, Column C Total Proceeds Issue price per Form 8038 for 2009AB 540,414,313 Refunded bonds- 2009B to 2010A (190,000,000) Part 1, row C, column E 350,414,313
PART III, LINE 7 COMPLIANCE Part III relates to PBU and bonds that are required to disclose PBU based on post 2002 issuances (no refi bonds before 2002). So only 2005A, 2009A and 2010A bonds are applicable for this section. The other 2 bonds have NO answers since the section isn't applicable.
Schedule K (Form 990) 2010

Additional Data


Software ID:  
Software Version:  

Schedule L
(Form 990 or 990-EZ)
Department of the Treasury
Internal Revenue Service
Transactions with Interested Persons
MediumBullet Complete if the organization answered
"Yes" on Form 990, Part IV, lines 25a, 25b, 26, 27, 28a, 28b, or 28c,
or Form 990-EZ, Part V lines 38a or 40b.
MediumBullet Attach to Form 990 or Form 990-EZ. MediumBulletSee separate instructions.
OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
INOVA HEALTH CARE SERVICES
 
Employer identification number

54-0620889
Part I
Excess Benefit Transactions (section 501(c)(3) and section 501 (c)(4) organizations only).
Complete if the organization answered "Yes" on Form 990, Part IV, line 25a or 25b, or Form 990-EZ, Part V, line 40b.
1(a) Name of disqualified person (b) Description of transaction (c) Corrected?
Yes No





2
Enter the amount of tax imposed on the organization managers or disqualified persons during the year under section 4958. ......................... Bullet Image$
 
3
Enter the amount of tax, if any, on line 2, above, reimbursed by the organization ....... Bullet Image$
 

Part II
Loans to and/or From Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 26, or Form 990-EZ, Part V, line 38a.
(a) Name of interested person and purpose (b) Loan to or from the organization? (c)Original principal amount (d)Balance due (e) In default? (f) Approved by board or committee? (g)Written agreement?
To From Yes No Yes No Yes No
Total ...............Small Bullet $  
Part III
Grants or Assistance Benefitting Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 27.
(a) Name of interested person (b)Relationship between interested person and the organization (c)Amount of grant or type of assistance
For Privacy Act and Paperwork Reduction Act Notice, see the
Instructions for Form 990 or 990-EZ.
Cat. No. 50056A
Schedule L (Form 990 or 990-EZ) 2010
Schedule L (Form 990 or 990-EZ) 2010
Page 2
Part IV
Business Transactions Involving Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 28a, 28b, or 28c.
(a) Name of interested person (b) Relationship between interested person and the organization (c) Amount of transaction (d) Description of transaction (e) Sharing of organization's revenues?
Yes No
(1) Arnold Rosenblatt MD Trustee 97,000 Contract fees paid to Dr. Rosenblatt to serve as the Inova Mount Vernon Hospital Medical Staff President. The Medical Staff pays $29,500 of this annual amount. Services provided at arm's length and customary rates.   No
(2) Arnold Rosenblatt MD Trustee 22,400 Fees paid to Dr. Rosenblatt for interpretation of EKGs, and treadmills tests. Services provided at arm's length and customary rates.   No
(3) Eric Reines MD Trustee 11,313 Dr. Eric Reines, Trustee, is a partner in Alexandria Infectious Disease. Fees paid to the practice for Dr. Reines to provide infectious disease contract services and for services provided as a member of the Inova Alexandria Physician CPOE facility adoption committee. Services provided at arm's length and customary rates.   No
(4) Eric Reines MD Trustee 50,250 Dr. Eric Reines, Trustee, is a partner in Alexandria Infectious Disease. Fees paid to the practice under the emergency services charity care program. Services provided at arm's length and customary rates.   No
(5) John Moynihan MD Trustee 155,000 Fees paid to Dr. Moynihan to serve as the Inova Fairfax Hospital / IFH for Children Medical Staff President. The entire amount is paid by the Hospital. Services provided at arm's length and customary rates.   No
(6) Robert Ahmed MD Trustee 115,000 Fees paid to Dr. Ahmed to serve as the Inova Fair Oaks Hospital Medical Staff President. Half of this annual amount is paid by the Medical Staff. Services provided at arm's length and customary rates.   No
(7) Robert Ahmed MD Trustee 53,538 Fees paid to Dr. Ahmed for trauma call pay and for participation in the CPOE implementation committee. Services provided at arm's length and customary rates.   No
(8) Charles Mann Trustee 39,567 Charles Mann, Trustee, is the former owner of Alliant Merchant Services. Contract fees paid to Alliant for credit card system transaction processing and equipment at Inova Hospitals. Services provided at arm's length and customary rates.   No
(9) Arnold Rosenblatt MD Trustee 131,791 Arnold Rosenblatt, MD, Trustee, is a partner in Mount Vernon Cardiology Associates which leases medical office space from Inova Health System in several locations. Space is leased at commercial terms and at fair market value. Services provided at arm's length and customary rates.   No
(10) Martha Calihan MD Trustee 958,056 Martha Calihan, MD, Trustee, is a partner in Loudoun Medical Group which leases medical office space from Inova Health System in several locations. Space is leased at commercial terms and at fair market value. Services provided at arm's length and customary rates.   No
Part V
Supplemental Information
Complete this part to provide additional information for responses to questions on Schedule L (see instructions).
Identifier Return Reference Explanation
Schedule L (Form 990 or 990-EZ) 2010

Additional Data


Software ID:  
Software Version:  




SCHEDULE O
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service
Supplemental Information to Form 990 or 990-EZ

Complete to provide information for responses to specific questions on
Form 990 or to provide any additional information.
MediumBullet Attach to Form 990 or 990-EZ.
OMB No. 1545-0047
2010
Open to Public
Inspection
Name of the organization
INOVA HEALTH CARE SERVICES
 
Employer identification number

54-0620889
Identifier Return Reference Explanation
Form 990, Part VI, Section B, line 11   The Form 990 is prepared and provided to the Chief Accounting Officer and external tax consultants for initial review. After the review it is given to the CFO of Inova Health System for his review and comment. The Form 990 is presented to the Executive Committee of the Board of Trustees for their review. Upon completion of the Executive Committee review, it is provided to the full Board of Trustees. In this process, the Form 990 has been provided to the Governing Board approximately two weeks prior to the filing of the return.
  Form 990, Part VI, Section B, line 12c Yes, annually the organization distributes the conflict of interest policy to all directors, officers, trustees, and key employees. The organization requires that each director, officer, trustee, and key employee acknowledge that they have read, understood, and will abide by the policy. Each director, officer, trustee, and key employee is required to complete and submit an annual conflict of interest disclosure. These disclosures are broad and require that the individual list any business relationships or personal relationships with other directors, officers, trustees, and key employees, as well as any relationships with competitors, or current or potential vendors or contractors. Disclosure statements are reviewed by senior management and any potential conflicts are discussed with governing body chairman to ensure that any member who may have a conflict discloses their potential conflict, and is dismissed from related discussions and recused from participation in applicable decisions.
  Form 990, Part VI, Section B, line 15 The compensation of all senior management positions is evaluated annually in light of each manager's job content, scope and complexity. Compensation levels for Vice Presidents and above are reviewed by an independent external consultant to ensure that remuneration is consistent with the organization's compensation philosophy and objectives and competitive with other large complex health systems. The independent compensation consultant maintains national benchmark compensation databases and surveys and also reviews Forms 990 of comparable healthcare systems to determine market levels of compensation. In addition, the Inova Health System's CEO's compensation is reviewed and approved annually by an independent governing Board. The job requirements and complexity of all other management positions are evaluated annually using nationally recognized third party salary surveys to assure that the compensation for such positions is consistent with external market compensation comparisons. Salary ranges are developed for each management position classification to ensure that the compensation levels for these positions are consistent with the organization's compensation philosophy and objectives and with competitive market comparisons. Compensation for employed physicians is reviewed and approved by the Inova Health System Physician Compensation Committee. The committee is comprised of executive management of the Inova Health System. The Fair Market Value (FMV) compensation is based on four nationally recognized industry physician compensation benchmark surveys (MGMA, AMGA, Sullivan & Cotter, Hay Group). The committee also utilizes independent consultants to provide FMV opinions for positions that are not readily available in the four published benchmark surveys. The consultants' opinions and compensation survey data are presented to the Physician Compensation Committee for review and approval.
  Form 990, Part VI, Section C, line 18 The Form 1023, 990T and Form 990 is available at the address listed on page 1 of the Form 990 upon request during regular business hours.
  Form 990, Part VI, Section C, line 19 Inova Health System makes certain information publicly available. Inova's consolidated annual audited financial statements are posted on the Electronic Municipal Market Access's (EMMA) website. In addition, the quarterly financial statements of the Inova entities that are obligated to service the Inova bonds, called the Inova Health System Obligated Group (which represents the vast majority of Inova's financial results), are posted on the EMMA website within 60 days of each quarter-end, except the 4th quarter which is posted within 150 days after year-end along with Inova's fully consolidated annual audited financial statements (mentioned above). Inova's Form 990s are disclosed on the Guidestar website. Inova's governing documents are not currently publicly available. While the conflict of interest policy is not specifically publicly disclosed, Inova's Code of Conduct is on the public website. Section III of the Code of Conduct describes what can constitute a conflict and requires that potential conflicts be reported to management or the Chief Compliance Officer. The Code also refers to the conflict of interest policy which is available to staff and physicians on Inova's intranet website.
Changes in Net Assets or Fund Balances: Form 990, Part XI, line 5: PARTNERSHIP INCOME -6,774,591. UNREALIZED GAIN ON BOND SWAP 6,274,076. CAPITAL RIEMBURSEMENT 609,961. EQUITY IN SUBS 5,215,921. DONATED FUNDS 1,089,630. UNREALIZED GAIN 3,273,951. PENSION LOSS AND OTHER -15,339,728. Total to Form 990, Part XI, Line 5: -5,650,780.
PROGRAM SERVICE ACCOMPLISHMENTS PART III, LINE 4a Pediatrics: The Inova Fairfax Hospital for Children (IFHC) is Northern Virginia's regional pediatric referral center with 112 licensed acute care beds and more than 25 subspecialties including pediatric emergency and trauma care, critical care, infectious disease, pulmonary disease, cardiac surgery, hematology and oncology, neonatology, physical medicine & rehabilitation and speech & hearing therapy. The Fairfax facility includes Northern Virginia's only Level III (highest level) newborn intensive care unit, which is staffed around the clock by neonatology physicians and nurses specially trained in caring for premature and other newborns with medical complications. As of December 31, 2010, there were a total of 75 NICU bassinets. In addition to its neonatal intensive care unit, IFHC operates the only pediatric intensive care unit in northern Virginia, providing 24-hour coverage for children with life-threatening illnesses or injuries. Inova Fairfax also has 20 dedicated pediatric emergency room treatment bays, a dedicated hematology/oncology unit and two dedicated operating rooms for pediatric heart surgeries. In addition, IFHC provides a primary care medical home for children of low income families that are uninsured or on Medicaid through the InovaCares Clinic for Children, which had 30,464 visits in 2010. With two clinic locations, one in Falls Church and the other in Reston, IFHC serves children from birth to 21 years of age. The Emergency and Trauma Center at Inova Fairfax Hospital, Northern Virginia's only Level I trauma center, is a state-of-the-art facility. Emergency medical specialists with expertise in trauma care treat every type of illness, injury, or life-threatening trauma. The Inova Center for Rehabilitation, located on the Inova Mount Vernon campus is accredited by the Commission on Accreditation and Rehabilitation Facilities (CARF) and provides comprehensive inpatient and outpatient medical rehabilitation services to patients with severe head injuries, spinal cord injuries, strokes, multiple sclerosis, and other orthopedic and neurological disabilities. These services are staffed by an interdisciplinary team representing psychiatry, psychology, vocational counseling, physical therapy, occupational therapy, and nursing with treatment tailored to meet the specific needs of each patient. Emergency Care Center (ECC) of Fairfax, Emergency Care Center of Reston and Springfield Healthplex are 24-hour, free-standing emergency centers located in Fairfax City, Reston, and Springfield, Virginia, respectively. During 2010, ECC of Fairfax reported 15,273 emergency room visits; ECC of Reston reported 12,884 emergency room visits; and Springfield Healthplex reported 35,573 emergency room visits. Financial Assistance/Charity Care All Inova facilities, including the IHCS facilities, provide financial assistance/charity care in accordance with Inova policies which ensure access to medically necessary care for all individuals. Financial assistance/charity care is defined as free or discounted healthcare services provided to persons who cannot afford to pay. These policies include the following key provisions: 1. Emergency care shall be provided to all persons regardless of their ability to pay. 2. Non-emergency medically necessary care, except for certain specialty or referral programs, shall be provided by all hospitals and access facilities to medically indigent patients. "Medically necessary care" refers to inpatient and outpatient services defined as medically necessary by the federal Medicare program. "Medically indigent" is defined as those patients whose income falls at or below 300% of the Federal Poverty Guideline (FPG). In general, free medically necessary care is provided for patients with incomes falling below 200% of the FPG; and discounted care is provided for services rendered to patients with incomes falling between 200% and 300% of the FPG. Inova Health System utilizes a multifaceted approach to educate and inform patients and the public about Inova's financial assistance/charity care policy. Inova has information posted at patient access sites regarding the availability of financial assistance/charity care and patient rights and responsibilities. In addition, Inova provides information about its financial assistance/charity care program and referrals to Inova financial counselors who assist patients in completing Inova's financial assistance/charity care application. This financial information is reviewed by the Inova Patient Accounts Department with the patient contacted if additional information is required in order to make a determination. The patient is subsequently provided a letter, notifying them as to the level of financial assistance/charity care for which they are qualified (whether it be 100% coverage or a sliding scale payment based upon their income level between 200-300% of the Federal Poverty Guideline). In 2010, IHCS' unreimbursed cost of financial assistance/charity care, including free and discounted services, was $83.2 million. Medicaid Established under Title XIX of the Social Security Act, this program provides assistance for the medically indigent, including those who cannot pay for care despite being able to afford other living expenses, as well as adults and children with disabilities, including vision impairments. The reimbursement that IHCS facilities receive from the Medicaid program routinely falls below the actual cost of services provided. During 2010, IHCS provided care to Medicaid patients at an unreimbursed cost of $45.9 million. Participation in Governmental Programs for Those Without the Ability to Pay Various government programs provide for the indigent, including Medicaid recipients. These programs provide a percentage of reimbursement for qualifying patients; however, payment is typically below the cost of those services. In addition to federal and state programs, the Inova subsidiaries, including IHCS, work with various County governments and agencies and in providing certain free services to those residents the County identifies as most in need.
PROGRAM SERVICE ACCOMPLISHMENTS PART III, LINE 4d Each year a summer camp for children with diabetes is held which provides peer support and a fun learning environment for the children. Community outreach is a key component to the program and, through the Diabetes Connections Project which is partially funded through a grant with the International Diabetes Center, the Inova Diabetes Center worked with Community Safety Net Clinics across Northern Virginia to collaboratively develop a shared, evidence-based set of clinical guidelines for the treatment of diabetes to improve the health status of the low income, uninsured population across Northern Virginia. IHCS and its subsidiaries provide many other non-billed and below margin patient services. Case management services are provided to the indigent and assistance is provided with financial paperwork. Inova Mount Vernon participates in the Health Information and Claims Assistance Program by providing assistance with health insurance paperwork problems. In addition, home IV therapy services are provided for the indigent. Transportation is provided for indigent patients to and from IHCS facilities and programs. Inova Fairfax provides forensic and medical care to abused adults and children as well as blood alcohol testing for area police departments while coordinating the disposition of deaths with various community organizations. Other services include pastoral care, guardianship services, free living accommodations for out-of-town Inova Fairfax heart and lung transplant patients and their families, and emergency assistance to patients and their families needing medication or transportation. Community Health Education and Wellness As part of Inova's overall health and wellness efforts, IHCS and its subsidiaries are actively involved in sponsoring programs, activities, and services designed to improve community health and prevent the onset of disease. HealthSource HealthSource serves the community as the premier provider of health education and prevention services. Our participants engage in prevention activities, receive quality health education, participate in wellness programs and benefit from care management. As a part of our vision, Healthsource targets the community we serve by holding programs throughout the region in environments that are familiar to and convenient for our clients. Seminars, classes, health fairs and screenings are offered at Inova Health System hospitals, community locations and worksites throughout Northern Virginia and the Greater Metropolitan Washington Area. During 2010, HealthSource served 195,702 participants. Program highlights include: Prevention and Self Care Program Seasonal and H1N1 Influenza The Inova HealthSource Fight the Flu Program provided a total of 46,431 flu shots through immunization clinics for communities serviced by Inova Health System, as well as its employees and physicians. In the first quarter, demand and attendance at worksite and community clinics was high due to the H1N1 vaccination campaign. During the fall campaign, The Fight the Flu Program provided 9,359 flu shots to Fairfax County Public Schools at 175 clinics. Additional clinics were held at 320 worksites vaccinating 17,532 employees Tobacco Cessation Education Our inpatient tobacco cessation program served 1,690 patients hospitalized for heart failure, heart disease, pneumonia and stroke in all Inova Health System hospitals. In order to provide tobacco cessation education for all adult inpatients, our team worked with all the hospitals to transition a new plan throughout the first half of the year. Through the summer, the program was successfully piloted and implemented. With funding from the Virginia Tobacco State Fund, Life Skills Training, a tobacco prevention program, was offered to 556 students in 15 school-based programs. The Inova Stroke Program IMVH received certification as a primary stroke center. In collaboration with the Inova hospitals, stroke awareness and education was provided to over 600 participants A new stroke awareness and education program, "Stroke Heroes" was launched to increase participation of the community in stroke education. The Workplace and Community Programs Workplace and Community Programs served 16,305 participants at 645 events and added 18 new clients. Inova HealthSource provided 30 automated external defribrillator (AED) machines and education free of charge to community organizations and businesses in the Loudoun area. HealthSource manages the process, identifies organizations, presents AED education to each group and maintains a database of AED locations. The Care Management Programs provided health coaching in weight management, tobacco cessation, back pain management, fitness, pregnancy and breastfeeding at worksites and for community members. . The Health Education Program: Supporting community wellness through health education The HealthSource Life Support Training Center facilitated the training of 23,704 students. Students include community members and Inova employees. For parents who have infants in the NICU, Inova HealthSource provides free CPR training. Over 47,000 people participated in childbirth education programs. Class materials are now provided online as part of Inovas Going Green initiative. This allows new parents to tailor materials to their individual educational requirements. The Healthy Lifestyles program supports the community through a lifespan of fitness and nutrition classes and workshops. From prenatal yoga to senior fitness, Inova HealthSource supports healthy choices in convenient locations all throughout the Northern Virginia area. The Healthy Lifestyles program served over 23,700 class participants in 14 locations in the community and in Inova Hospital facilities.
NUMBER OF EMPLOYEES PART V, LINE 2A The organization falls under a master pay agent and does not file any payroll returns under its own EIN, however all required returns have been filed on time.
AUDITED FINANCIAL STATEMENTS PART XI, LINE 2B AND 2C The company is part of the Inova Health System, a not-for-profit integrated health care delivery system serving Northern Virginia and surrounding areas. The company's financial statements are consolidated in the Inova Health System consolidated financial statements. Inova Health System is audited on an annual basis by a large "Big Four" independent public accounting firm. In addition, they are responsible for the issuance of a management letter encompassing each member of the consolidated group. The Finance and Audit Committee of the Board of Trustees of Inova Health System is responsible for the oversight of the audit, including the hiring of the audit firm, review and approval of audited financial statements and communication with the external auditors at least twice a year without the presence of internal management.
A-133 AUDIT PART XI, LINE 3A The company is a subsidiary of the Inova Health System, a not-for-profit integrated health care delivery system serving Northern Virginia and surrounding areas. The company receives various federal grants. These grants and awards are audited as part of the consolidated Inova Health System A-133 compliance audit. The Inova Health System's federal grants are audited on an annual basis by a large "Big Four" independent public accounting firm and a "Report on Compliance with Requirements Applicable to Each Major Program and on Internal Controls over Compliance in Accordance with OMB Circular A-133" is issued on a consolidated basis. The Finance and Audit Committee of the Board of Trustees of Inova Health System is responsible for the oversight of the A 133 audit, including the hiring of the audit firm, review and approval of audited financial statements and communications with the external auditors at least twice a year without the presence of internal management.
HOURS WORKED PART VII, COLUMN B THE FOLLOWING INDIVIDUALS HAVE HOURS PER WEEK WORKED ON RELATED ORGANIZATIONS: J. KNOX SINGLETON, 30 HOURS JOHN GAUL, 26 HOURS RICHARD MAGENHEIMER, 26 HOURS TODD STOTTLEMYER, 15 HOURS MARK STAUDER, 12 HOURS RODNEY HUEBBERS, 10 HOURS WAYNE DIEWALD, 10 HOURS LEWIS PASTERNAK, 10 HOURS KYLANNE SILVERSTONE, 10 HOURS JOHN NIEDERHUBER, 10 HOURS GREG SHIELDS, 20 HOURS JAMES KIM, 26 HOURS JOHN RYAN, 3 HOURS CHRISTOPHER CHIANTELLA, 3 HOURS MARTHA CALIHAN, 4 HOURS AL KHOURY, 3 HOURS CHARLES SMITH, 2 HOURS LORI MORRIS, 3 HOURS MARGARET COLON, 3 HOURS
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.
Cat. No. 51056K
Schedule O (Form 990 or 990-EZ) 2010

Additional Data


Software ID:  
Software Version:  
SCHEDULE R
(Form 990)
Department of the Treasury
Internal Revenue Service
Related Organizations and Unrelated Partnerships
MediumBulletComplete if the organization answered "Yes" to Form 990, Part IV, line 33, 34, 35, 36, or 37.
MediumBulletAttach to Form 990. MediumBullet See separate instructions.

OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
INOVA HEALTH CARE SERVICES
 
Employer identification number

54-0620889
Part I
Identification of Disregarded Entities (Complete if the organization answered "Yes" on Form 990, Part IV, line 33.)
(a)
Name, address, and EIN of disregarded entity


(b)
Primary activity


 		(c)
Legal domicile (state
or foreign country)

 		(d)
Total income
(e)
End-of-year assets


 		(f)
Direct controlling
entity







(1) INOVA CAP LLC
8110 GATEHOUSE ROAD
FALLS CHURCH,VA22042
27-0927074 		INSURANCE CAPTIVE VA 6,444,308 64,018,779 N/A










Part II
Identification of Related Tax-Exempt Organizations (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related tax-exempt organizations during the tax year.)
(a)
Name, address, and EIN of related organization


(b)
Primary activity


 		(c)
Legal domicile (state
or foreign country)

 		(d)
Exempt Code section
(e)
Public charity status
(if section 501(c)(3))

 		(f)
Direct controlling
entity

 		(g)
Section 512(b)(13) controlled organization
Yes No
(1) INOVA HEALTH SYSTEM FOUNDATION

8110 GATEHOUSE ROAD SUITE 400W

FALLS CHURCH,VA22042
54-1071867 		FUNDRAISING VA 501(C)(3) 11,III N/A
 
No
(2) INOVA VNA HOME CARE

8110 GATEHOUSE ROAD SUITE 400W

FALLS CHURCH,VA22042
54-1277164 		HOME CARE SERVICES VA 501(C)(3) 9 N/A
 
No
(3) INOVA HEALTH SYSTEM SERVICES

8110 GATEHOUSE ROAD SUITE 400W

FALLS CHURCH,VA22042
54-1434144 		NURSING HOMES VA 501(C)(3) 9 N/A
 
No
(4) IMANCO INC

8110 GATEHOUSE ROAD SUITE 400W

FALLS CHURCH,VA22042
54-1340725 		PAYROLL CORPORATION VA 501(C)(3) 11, I N/A
 
No
(5) INOVA ALEXANDRIA HEALTH SERVICES CORPORATION

8110 GATEHOUSE ROAD SUITE 400W

FALLS CHURCH,VA22042
52-1356573 		INACTIVE CORPORATION VA 501(C)(3) 9 N/A
 
No
(6) INOVA PHYSICAL REHABILITATION SERVICES

8110 GATEHOUSE ROAD SUITE 400W

FALLS CHURCH,VA22042
54-1692089 		REHABILITATION SERVICES VA 501(C)(3) 9 N/A
 
No
(7) INOVA ALEXANDRIA HOSPITAL

8110 GATEHOUSE ROAD SUITE 400W

FALLS CHURCH,VA22042
54-0505861 		HOSPITAL VA 501(C)(3) 3 N/A
 
No
(8) INOVA MEDICAL FOUNDATION

8110 GATEHOUSE ROAD SUITE 400W

FALLS CHURCH,VA22042
54-1716343 		MANAGED CARE INACTIVE VA 501(C)(3) 11, I N/A
 
No
(9) UMC HOLDINGS INC

8110 GATEHOUSE ROAD SUITE 400W

FALLS CHURCH,VA22042
54-1390795 		URGENT CARE SERVICES VA 501(C)(3) 9 N/A
 
No
(10) INOVA EMPLOYEE ASSISTANACE

8110 GATEHOUSE ROAD SUITE 400W

FALLS CHURCH,VA22042
54-1916699 		EMPLOYEE SERVICES VA 501(C)(3) 11, I N/A
 
No
(11) ALEXANDRIA COMMUNITY HEALTHCARE GROUP

8110 GATEHOUSE ROAD SUITE 400W

FALLS CHURCH,VA22042
54-1444341 		INACTIVE CORPORATION VA 501(C)(3) 11, I N/A
 
No
(12) ALEXANDRIA HOSPITAL FOUNDATION

8110 GATEHOUSE ROAD SUITE 400W

FALLS CHURCH,VA22042
51-0241913 		FUNDRAISING VA 501(C)(3) 11, I N/A
 
No
(13) LOUDOUN HOSPITAL CENTER

8110 GATEHOUSE ROAD SUITE 400W

FALLS CHURCH,VA22042
54-0525802 		HOSPITAL VA 501(C)(3) 3 N/A
 
No
(14) LOUDOUN NURSING AND REHABILITATION CENTER

8110 GATEHOUSE ROAD SUITE 400W

FALLS CHURCH,VA22042
54-1361310 		REHABILITATION SERVICES VA 501(C)(3) 9 N/A
 
No
(15) LOUDOUN HEALTH SERVICES

8110 GATEHOUSE ROAD SUITE 400W

FALLS CHURCH,VA22042
54-1555489 		SURGERY CENTER VA 501(C)(3) 9 N/A
 
No
(16) LOUDOUN HEALTHCARE FOUNDATION

8110 GATEHOUSE ROAD SUITE 400W

FALLS CHURCH,VA22042
54-2011240 		FUNDRAISING VA 501(C)(3) 11, I N/A
 
No
(17) LOUDOUN HEALTHCARE INC

8110 GATEHOUSE ROAD SUITE 400W

FALLS CHURCH,VA22042
54-1361309 		INACTIVE CORPORATION VA 501(C)(3) 11, I N/A
 
No
(18) LHI PROPERTIES INC

8110 GATEHOUSE ROAD SUITE 400W

FALLS CHURCH,VA22042
54-1651315 		INACTIVE CORPORATION VA 501(C)(3) 11, I N/A
 
No
For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50135Y
Schedule R (Form 990) 2010
Schedule R (Form 990) 2010
Page 2
Part III
Identification of Related Organizations Taxable as a Partnership (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a partnership during the tax year.)
(a)
Name, address, and EIN of
related organization



 		(b)
Primary activity




 		(c)
Legal
domicile
(state or foreign
country)


 		(d)
Direct controlling
entity



 		(e)
Predominant income(related, unrelated, excluded from tax under sections 512-514)

(f)
Share of total income




 		(g)
Share of end-of-year
assets



 		(h)
Disproprtionate allocations?




 		(i)
Code V—UBI
amount in box 20 of
Schedule K-1
(Form 1065)
 		(j)
General or
managing
partner?



 		(k)
Percentage
ownership
Yes No Yes No
(1) TECHNICAL DYNAMICS LLC

8110 GATEHOUSE ROAD SUITE 400W
FALLS CHURCH,VA22042
43-2041666 		EQUIPMENT REPAIRS VA N/A
 RELATED 1,686,638 9,902   No   Yes   67.220 %
(2) INOVA WOODBURN SURGERY CENTER LLC

8110 GATEHOUSE ROAD SUITE 400W
FALLS CHURCH,VA22042
26-2295023 		SURGERY CENTER VA N/A
 RELATED -1,176,838 2,432,061   No   Yes   75.400 %
(3) NORTHERN VIRGINIA SURGERY CENTER

8110 GATEHOUSE ROAD SUITE 400W
FALLS CHURCH,VA22042
20-3502477 		SURGERY CENTER VA N/A
 RELATED 794,952 3,389,210   No   Yes   60.000 %
(4) FRANCONIA-SPRINGFIELD SURGERY CENTER LLC

8110 GATEHOUSE ROAD SUITE 400W
FALLS CHURCH,VA22042
54-2018390 		SURGERY CENTER VA N/A
 RELATED 1,859,932 1,028,582   No   Yes   60.680 %
(5) POTOMAC INOVA HEALTHCARE ALLIANCE LLC

8110 GATEHOUSE ROAD SUITE 400W
FALLS CHURCH,VA22042
54-1802733 		RADIATION ONCOLOGY VA N/A
 RELATED 65,161 1,995,474   No   Yes   50.000 %
(6) INOVA RESTON MRI CENTER LLC

2722 MERRILEE DRIVE SUITE 230
FAIRFAX,VA22031
26-4587374 		MRI SERVICES VA N/A
 RELATED 3,611,420 2,676,280   No   Yes   75.000 %


Part IV
Identification of Related Organizations Taxable as a Corporation or Trust (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a corporation or trust during the tax year.)
(a)
Name, address, and EIN of related organization



 		(b)
Primary activity



 		(c)
Legal domicile
(state or
foreign
country)
 		(d)
Direct controlling
entity


 		(e)
Type of entity
(C corp, S corp,
or trust)

 		(f)
Share of total income



 		(g)
Share of
end-of-year
assets

 		(h)
Percentage
ownership












Schedule R (Form 990) 2010
Schedule R (Form 990) 2010
Page 3
Part V
Transactions With Related Organizations (Complete if the organization answered "Yes" on Form 990, Part IV, line 34, 35, 35A, or 36.)
Note. Complete line 1 if any entity is listed in Parts II, III or IV.
Yes
No
1 During the tax year, did the orgranization engage in any of the following transactions with one or more related organizations listed in Parts II-IV?
a Receipt of (i) interest (ii) annuities (iii) royalties (iv) rent from a controlled entity . . . . . . . . . . . . . . . . . . . . . . .
1a
 
No
b Gift, grant, or capital contribution to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1b
 
No
c Gift, grant, or capital contribution from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1c
Yes
 
d Loans or loan guarantees to or for other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1d
 
No
e Loans or loan guarantees by other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1e
 
No
f Sale of assets to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1f
 
No
g Purchase of assets from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1g
 
No
h Exchange of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1h
 
No
i Lease of facilities, equipment, or other assets to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1i
 
No
j Lease of facilities, equipment, or other assets from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . .
1j
 
No
k Performance of services or membership or fundraising solicitations for other organization(s) . . . . . . . . . . . . . . . . . . . . . .
1k
 
No
l Performance of services or membership or fundraising solicitations by other organization(s) . . . . . . . . . . . . . . . . . . . . . .
1l
Yes
 
m Sharing of facilities, equipment, mailing lists, or other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1m
 
No
n Sharing of paid employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1n
 
No
o Reimbursement paid to other organization for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1o
 
No
p Reimbursement paid by other organization for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1p
 
No
q Other transfer of cash or property to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1q
Yes
 
r Other transfer of cash or property from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1r
 
No
2
If the answer to any of the above is "Yes," see the instructions for information on who must complete this line, including covered relationships and transaction thresholds.
(a)
Name of other organization 		(b)
Transaction
type(a-r) 		(c)
Amount involved 		(d)
Method of determining amount involved
(1) INOVA HEALTH SYSTEM FOUNDATION

 C 3,646,888 GENERAL LEDGER
(2) INOVA HEALTH SYSTEM FOUNDATION - CASH SWEEP ACCOUNT

 Q 124,885,601 INTERCOMPANY BALANCE
(3) INOVA HEALTH SYSTEM FOUNDATION

 L 5,984,242 GENERAL LEDGER
(4)
(5)
(6)
Schedule R (Form 990) 2010
Schedule R (Form 990) 2010
Page 4
Part VI
Unrelated Organizations Taxable as a Partnership (Complete if the organization answered "Yes" on Form 990, Part IV, line 37.)
Provide the following information for each entity taxed as a partnership through which the organization conducted more than five percent of its activities (measured by total assets or gross revenue) that was not a related organization. See instructions regarding exclusion for certain investment partnerships.
(a)
Name, address, and EIN of entity 		(b)
Primary activity 		(c)
Legal domicile
(state or foreign
country) 		(d)
Are all
partners
section
501(c)(3)
organizations? 		(e)
Share of
end-of-year
assets 		(f)
Disproprtionate allocations? 		(g)
Code V—UBI
amount in box
20 of Schedule K-1
(Form 1065) 		(h)
General or
managing
partner?
Yes No Yes No Yes No






























Schedule R (Form 990) 2010
Schedule R (Form 990) 2010
Page 5
Part VII
Supplemental Information
Complete this part to provide additional information for responses to questions on Schedule R (see instructions).
Identifier Return Reference Explanation
Additional Data


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