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 07-01-2010 and ending 06-30-2011
BCheck if applicable:
CName of organization
UNION HOSPITAL OF CECIL COUNTY INC
 
Doing Business As
 
 
Number and street (or P.O. box if mail is not delivered to street address)
106 BOW STREET
 
Room/suite
City or town, state or country, and ZIP + 4
ELKTON, MD219215596
D Employer identification number

52-0607945
E Telephone number

G Gross receipts $ 151,478,765
F Name and address of principal officer:
KENNETH S LEWIS MD JD
106 BOW STREET
ELKTON,MD219215596
I
Tax-exempt status: (   ) LeftBullet (insert no.) or
J
Website:MediumBullet
WWW.UHCC.COM
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: 1903
M State of legal domicile: MD
Part I
Summary
Activities & Governance 1 Briefly describe the organization’s mission or most significant activities: PROVIDE HEALTHCARE SERVICES TO THE RESIDENTS OF CECIL COUNTY, MD, AND THE SURROUNDING AREA.
2 Check this box MediumBullet
3 Number of voting members of the governing body (Part VI, line 1a) .... 3 16
4 Number of independent voting members of the governing body (Part VI, line 1b) .... 4 15
5 Total number of individuals employed in calendar year 2010 (Part V, line 2a) ... 5 1,248
6 Total number of volunteers (estimate if necessary) .... 6 410
7a Total unrelated business revenue from Part VIII, column (C), line 12 .. 7a 878,577
b Net unrelated business taxable income from Form 990-T, line 34 .. 7b -480,796
Revenues; Prior Year Current Year
8 Contributions and grants (Part VIII, line 1h) ......... 977,572 667,518
9 Program service revenue (Part VIII, line 2g) ......... 128,832,816 139,069,390
10 Investment income (Part VIII, column (A), lines 3, 4, and 7d ) .... -146,067 1,179,680
11 Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e) 911,141 689,865
12 Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)................... 130,575,462 141,606,453
Expenses; 13 Grants and similar amounts paid (Part IX, column (A), lines 1–3 )... 2,642,957 4,089,347
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) 61,358,579 63,312,190
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).... 71,462,890 72,395,699
18 Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25) 135,464,426 139,797,236
19 Revenue less expenses. Subtract line 18 from line 12...... -4,888,964 1,809,217
Net Assets or Fund Balances; Beginning of Current Year End of Year
20 Total assets (Part X, line 16)............ 174,781,521 171,527,434
21 Total liabilities (Part X, line 26)............ 97,849,767 87,457,012
22 Net assets or fund balances. Subtract line 21 from line 20 ..... 76,931,754 84,070,422
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: UNION HOSPITAL OF CECIL COUNTY'S MISSION IS TO PROVIDE HEALTHCARE SERVICES TO THE RESIDENTS OF CECIL COUNTY, MARYLAND, WESTERN NEW CASTLE COUNTY, DELAWARE, AND SOUTHERN CHESTER COUNTY, PENNSYLVANIA.
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 $ 136,359,245 including grants of $ 4,089,347 ) (Revenue $ 138,191,493 )
UNION HOSPITAL OF CECIL COUNTY'S MISSION IS TO PROVIDE HEALTH CARE SERVICES TO THE RESIDENTS OF CECIL COUNTY, MARYLAND, WESTERN NEW CASTLE COUNTY, DELAWARE, AND SOUTHERN CHESTER COUNTY, PENNSYLVANIA, THAT REPRESENT QUALITY AND VALUE AND ARE PROVIDED WITH MODERN TECHNOLOGY, COMPASSIONATE NURSES AND STAFF, AND CONVENIENT TO THE CITIZENS OF OUR COMMUNITY. THESE HEALTHCARE SERVICES ARE PROVIDED REGARDLESS OF RACE, CREED, SEX, NATIONAL ORIGIN, HANDICAP, AGE, OR ABILITY TO PAY. ALTHOUGH REIMBURSEMENT FOR SERVICES RENDERED IS VITALLY IMPORTANT TO THE OPERATION, STABILITY, AND VIABILITY OF UNION HOSPITAL OF CECIL COUNTY, WE RECOGNIZE THAT NOT ALL MEMBERS OF OUR COMMUNITY ARE IN THE FINANCIAL POSITION TO PURCHASE ESSENTIAL MEDICAL SERVICES. THEREFORE, CONSISTENT WITH UNION HOSPITAL'S COMMITMENT TO SERVE ALL MEMBERS OF CECIL COUNTY, MARYLAND, FREE CARE AND/OR SUBSIDIZED CARE AND HEALTH ACTIVITIES AND PROGRAMS TO SUPPORT THE COMMUNITY WILL BE CONSIDERED WHERE THE NEED AND/OR AN INDIVIDUAL'S INABILITY TO PAY COEXISTS. THESE ACTIVITIES INCLUDE COMMUNITY EDUCATION, SPECIAL PROGRAMS FOR THE ELDERLY, SPECIAL PROGRAMS FOR THE PHYSICALLY/MENTALLY CHALLENGED, MEDICALLY UNDERSERVED AND A VARIETY OF BROAD COMMUNITY SUPPORT ACTIVITIES.UNION HOSPITAL OF CECIL COUNTY SERVICED 7,032 ADMISSIONS PROVIDING 26,375 PATIENT DAYS TO INPATIENTS IN FISCAL YEAR 2011 OF WHICH:1) PATIENTS COVERED UNDER THE MEDICARE PROGRAM WERE 3,324 ADMISSIONS AND 13,663 PATIENT DAYS2) PATIENTS COVERED UNDER THE MEDICAID PROGRAM WERE 133 ADMISSIONS AND 528 PATIENT DAYS3) PATIENTS COVERED UNDER THE MEDICAID HMO PROGRAM WERE 1,225 ADMISSIONS AND 3,913 PATIENT DAYS4) PATIENTS COVERED UNDER THE MEDICARE HMO PROGRAM WERE 60 ADMISSIONS AND 256 PATIENT DAYSCHARITY CARE IS ALSO PROVIDED THROUGH MANY REDUCED PRICE SERVICES AND FREE PROGRAMS OFFERED THROUGHOUT THE YEAR BASED UPON ACTIVITIES AND SERVICES THAT UNION HOSPITAL OF CECIL COUNTY BELIEVES WILL SERVE A BONA FIDE COMMUNITY NEED. THESE INCLUDE:A) ADULT DAY CARE SERVICES FOR THE ELDERLY AND PHYSICALLY/MENTALLY CHALLENGEDB) SUPPORT GROUPS FOR CANCER PATIENTS AND FAMILIES, DIABETES, ALCOHOLICS ANONYMOUS, OSTOMY AND SMOKELESSC) OFFERING AND CONDUCTING FREE BLOOD PRESSURE, CHOLESTEROL SCREENINGS AND PROSTATE SCREENINGSD) IN CONJUNCTION WITH THE STATE OF MARYLAND AND THE LOCAL DEPARTMENT OF HEALTH, OFFERING AND CONDUCTING A CANCER SCREENING PROGRAM FOR INDIGENT FEMALESE) PROVIDING MEETING FACILITIES FOR A VARIETY OF NONPROFITS AND VOLUNTEER FIRE COMPANIESF) HOSPITAL STAFF VOLUNTEERS ON NONPROFIT ORGANIZATION BOARDS SUCH AS THE AMERICAN CANCER SOCIETYDURING THE YEAR, UNION HOSPITAL OF CECIL COUNTY PROVIDED $16,030,000 IN UNCOMPENSATED CARE.
4b (Code:   ) (Expenses $   including grants of $   ) (Revenue $   )
4c (Code:   ) (Expenses $   including grants of $   ) (Revenue $   )
4d Other program services. (Describe in Schedule O.)
(Expenses $   including grants of $   ) (Revenue $   )
4e Total program service expensesMediumBullet$ 136,359,245
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 I..........
3
 
No
4
Section 501(c)(3) organizations. Did the organization engage in lobbying activities? If “Yes,” complete Schedule C,
Part II.........................
4
 
No
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
 
No
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
 
No
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
Yes
 
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. ..... Click to see attachment
20b
Yes
 
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.. Click to see attachment
21
Yes
 
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..... Click to see attachment
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 attachment
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......
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................
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...........................
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...............
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 .........................
28a
 
No
b
A family member of a current or former officer, director, trustee, or key employee? If “Yes,”
complete Schedule L, Part IV...................
28b
 
No
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..
28c
 
No
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
155
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
1,248
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
 
No
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
 
No
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
 
No
f
Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract?..
7f
 
No
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
16
b
Enter the number of voting members included in line 1a, above, who are independent .................
1b
15
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
Yes
 
7a
Does the organization have members, stockholders, or other persons who may elect one or more members of the governing body? .........................
7a
Yes
 
b
Are any decisions of the governing body subject to approval by members, stockholders, or other persons? ..
7b
Yes
 
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
MD
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
CARLA MOORE DIRECTOR OF FINANCE
106 BOW STREET
ELKTON,MD21921
(410) 398-4000
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) JACK GOLDSTEIN
CHAIRMAN
 .50 X   X       0 0 0
(2) MARTIN J HEALY
VICE CHAIRMAN
 .50 X   X       0 0 0
(3) RICHARD GUTTENDORF
TREASURER
 .50 X   X       0 0 0
(4) RONALD GRAYBEAL
SECRETARY
 .50 X   X       0 0 0
(5) MARY BOLT PHD
DIRECTOR
 .50 X           0 0 0
(6) PHILLIP FARMER
DIRECTOR
 .50 X           0 0 0
(7) HARLAND GRAEF
DIRECTOR
 .50 X           0 0 0
(8) RAYMOND HAMM
DIRECTOR
 .50 X           0 0 0
(9) RAYMOND HEIDEL
DIRECTOR
 .40 X           0 0 0
(10) MARTHA HOSFORD MD
DIRECTOR
 .50 X           0 0 0
(11) HENRY PASSI
DIRECTOR
 .50 X           0 0 0
(12) SHEELMOHAN SACHDEV MD
DIRECTOR
 .60 X           0 0 0
(13) MICHAEL SCIBINICO
DIRECTOR
 .50 X           0 0 0
(14) DWIGHT THOMEY
DIRECTOR
 .50 X           0 0 0
(15) RICHARD SZUMEL MD
DIRECTOR
 .60 X           0 0 0
(16) KENNETH S LEWIS MD JD
PRESIDENT/CEO
 28.00 X   X       0 628,122 117,860
(17) LAURIE R BEYER CPA
SENIOR VP/CFO
 26.00     X       0 253,540 16,496
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) JOSE MA
VP MEDICAL AFFAIRS
 38.00       X     0 305,232 17,813
(19) DAVID GIPSON
SENIOR VP/COO
 29.60       X     0 260,371 16,715
(20) PETER GLOGGNER
VP HUMAN RESOURCES
 40.00       X     185,153 0 7,321
(21) MARY JANE KAMPS
VP/CIO
 40.00       X     169,620 0 13,984
(22) NADER J DABABNEH MD
PHYSICIAN
 40.00         X   523,241 0 19,697
(23) IRFAN M HISAMUDDIN MD
PHYSICIAN
 40.00         X   388,897 0 19,334
(24) JOHN M HEBEKA MD
PHYSICIAN
 40.00         X   318,821 0 21,974
(25) MICHAEL BRYWKA MD
ANESTHESIOLOGIST
 40.00         X   317,380 0 21,962
(26) ALFONSO J BASILE MD
ANESTHESIOLOGIST
 40.00         X   315,613 0 21,520








1b Sub-Total................MediumBullet
c Total from continuation sheets to Part VII, Section A....MediumBullet
d Total (add lines 1b and 1c)............MediumBullet 2,218,725 1,447,265 294,676
2
Total number of individuals (including but not limited to those listed above) who received more than $100,000 in reportable compensation from the organizationMediumBullet63
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
 
No
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
RADCAREEMCARE
PO BOX 368
PERRY HALL,MD21128 		RADIOLOGY PHYSICIAN SERVICES 3,326,391
DIVERSIFIED CLINICAL SERVICES INC
4500 SALISBURY ROAD 300
JACKSONVILLE,FL32216 		STAFFING & SERVICES FOR WOUND CARE CENTE 742,121
MD-IT TRANSCRIPTION SERVICES LLC
4940 PEARL EAST CIRCLE
BOULDER,CO80301 		TRANSCRIPTION SERVICES 608,883
LAB CORP OF AMERICA HOLDINGS INC
PO BOX 1290
BURLINGTON,NC27216 		LAB TESTING 575,719
PHYSIOTHERAPY ASSOCIATES INC
855 SPRINGDALE DRIVE
EXTON,PA19341 		PHYSICAL THERAPY SERVICES 555,707
2
Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 in compensation from the organization MediumBullet16
Form 990 (2010)
Form 990 (2010)
Page 9
Part VIII
Statement of Revenue
(A)
Total revenue 		(B)
Related or
exempt
function
revenue 		(C)
Unrelated
business
revenue 		(D)
Revenue
excluded from
tax under sections
512, 513, or 514
Contributions, gifts, grants and other similar amounts 1a Federated campaigns..1a  
b Membership dues....1b  
c Fundraising events....1c  
d Related organizations...1d 607,773
e Government grants (contributions)1e  
f All other contributions, gifts, grants, and
similar amounts not included above1f 		59,745
g Noncash contributions included in lines 1a-1f:$  
h Total. Add lines 1a-1f.......MediumBullet 667,518
Program Service Revenue Business Code
2a NET PATIENT SERVICE RE 621,990 136,913,669 136,913,669    
b LABORATORY REVENUE 621,500 877,897   877,897  
c OTHER OPERATING REVENU 621,990 770,356 770,356    
d ADULT DAY CARE 623,990 408,614 408,614    
e LIFELINE 900,099 98,854 98,854    
f All other program service revenue .        
g Total. Add lines 2a–2f........MediumBullet 139,069,390
Other Revenue 3 Investment income (including dividends, interest
and other similar amounts).....MediumBullet 1,167,152     1,167,152
4 Income from investment of tax-exempt bond proceeds..MediumBullet 32,735     32,735
5 Royalties............MediumBullet        
(i) Real (ii) Personal
6a Gross Rents 185,835  
b Less: rental expenses 270,545  
c Rental income or (loss) -84,710  
d Net rental income or (loss).......MediumBullet -84,710     -84,710
(i) Securities (ii) Other
7a Gross amount from sales of assets other than inventory 9,125,226 456,334
b Less: cost or other basis and sales expenses 9,300,215 301,552
c Gain or (loss) -174,989 154,782
d Net gain or (loss)..........MediumBullet -20,207     -20,207
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 CAFETERIA/FOOD SERVICE 722,210 745,841     745,841
b PURCHASE DISCOUNTS 900,099 28,054     28,054
c UBI FROM PARTNERSHIP 541,900 680   680  
d All other revenue ....        
e Total. Add lines 11a–11d ......MediumBullet 774,575
12 Total revenue. See Instructions....MediumBullet 141,606,453 138,191,493 878,577 1,868,865
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 4,089,347 4,089,347
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 .... 376,078   376,078  
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 53,266,933 52,923,532 343,401  
8 Pension plan contributions (include section 401(k) and section 403(b) employer contributions) .... 413,479 390,363 23,116  
9 Other employee benefits ....... 5,467,916 5,418,881 49,035  
10 Payroll taxes ........... 3,787,784 3,736,087 51,697  
11 Fees for services (non-employees):        
a Management ...... 3,108,573 1,554,286 1,554,287  
b Legal ......... 295,895   295,895  
c Accounting ........... 124,400   124,400  
d Lobbying ...........        
e Professional fundraising. See Part IV, line 17..    
f Investment management fees ...... 117,889   117,889  
g Other .......... 16,662,320 16,401,356 260,964  
12 Advertising and promotion .... 447,677 447,677    
13 Office expenses ....... 22,133,216 22,067,735 65,481  
14 Information technology ...... 140,054 140,054    
15 Royalties ..        
16 Occupancy ........... 2,303,566 2,303,566    
17 Travel ............ 170,269 161,474 8,795  
18 Payments of travel or entertainment expenses for any federal, state, or local public officials ......        
19 Conferences, conventions, and meetings .... 15,454 2,328 13,126  
20 Interest ........... 4,074,222 4,074,222    
21 Payments to affiliates .......        
22 Depreciation, depletion, and amortization ..... 8,715,464 8,715,464    
23 Insurance .............. 1,830,200 1,830,200    
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 BAD DEBT 9,542,426 9,542,426    
b REPAIRS & MAINTENANCE 2,076,753 2,076,753    
c DUES/ACCREDITATIONS 416,752 262,925 153,827  
d EMPLOYEE RELATIONS 134,900 134,900    
e PUBLICATIONS 85,669 85,669    
f All other expenses        
25 Total functional expenses. Add lines 1 through 24f 139,797,236 136,359,245 3,437,991 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 .......... 205,919 1 149,667
2 Savings and temporary cash investments ....... 3,426,868 2 6,561,658
3 Pledges and grants receivable, net .........   3  
4 Accounts receivable, net ......... 16,872,772 4 16,239,575
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 ............. 2,310,616 7 1,741,983
8 Inventories for sale or use .............. 1,686,189 8 1,990,589
9 Prepaid expenses and deferred charges ............ 1,314,477 9 1,797,805
10a Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D 10a 156,379,063
b Less: accumulated depreciation. ..... 10b 76,356,778 84,954,723 10c 80,022,285
11 Investments—publicly traded securities .......... 53,439,337 11 54,102,807
12 Investments—other securities. See Part IV, line 11 ...... 5,030,779 12 4,947,666
13 Investments—program-related. See Part IV, line 11 ..   13  
14 Intangible assets .........   14  
15 Other assets. See Part IV, line 11 ........... 5,539,841 15 3,973,399
16 Total assets. Add lines 1 through 15 (must equal line 34)... 174,781,521 16 171,527,434
Liabilities 17 Accounts payable and accrued expenses . 10,622,232 17 11,652,633
18 Grants payable ..........   18  
19 Deferred revenue ..........   19  
20 Tax-exempt bond liabilities .......... 83,056,483 20 71,632,043
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..... 4,171,052 25 4,172,336
26 Total liabilities. Add lines 17 through 25..... 97,849,767 26 87,457,012
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 ..... 75,819,074 27 83,217,623
28 Temporarily restricted net assets ..... 1,112,680 28 852,799
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 ..... 76,931,754 33 84,070,422
34 Total liabilities and net assets/fund balances ..... 174,781,521 34 171,527,434
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
141,606,453
2
Total expenses (must equal Part IX, column (A), line 25) . . . . .
2
139,797,236
3
Revenue less expenses. Subtract line 2 from line 1 . . . .
3
1,809,217
4
Net assets or fund balances at beginning of year (must equal Part X, line 33, column (A)) . .
4
76,931,754
5
Other changes in net assets or fund balances (explain in Schedule O) . . . .
5
5,329,451
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
84,070,422
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
UNION HOSPITAL OF CECIL COUNTY INC
 
Employer identification number

52-0607945
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
UNION HOSPITAL OF CECIL COUNTY INC
 
Employer identification number

52-0607945
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
UNION HOSPITAL OF CECIL COUNTY INC
  		Employer identification number

52-0607945
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
UNION HOSPITAL OF CECIL COUNTY INC
  		Employer identification number

52-0607945
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
UNION HOSPITAL OF CECIL COUNTY INC
  		Employer identification number

52-0607945
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 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
UNION HOSPITAL OF CECIL COUNTY INC
 
Employer identification number

52-0607945
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 .................   1,134,905 1,134,905
b Buildings ................   69,795,667 22,808,747 46,986,920
c Leasehold improvements ............   691,473 390,705 300,768
d Equipment ................   83,305,192 52,252,005 31,053,187
e Other .................   1,451,826 905,321 546,505
Total. Add lines 1a-1e. (Column (d) should equal Form 990, Part X, column (B), line 10(c).)........SchDMdBullet 80,022,285
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








Total. (Column (b) should equal Form 990, Part X, col.(B) line 15.)...........Small Bullet  
Part X
Other Liabilities. See Form 990, Part X, line 25.
1.(a) Description of Liability (b) Amount
Federal Income Taxes  
THIRD PARTY ADVANCES 2,460,368
CAPITAL LEASE OBLIGATIONS 1,192,154
ESTIMATED MEDICAL MALPRACTICE CLAIMS LIABILITY 519,814






Total. (Column (b) should equal Form 990, Part X, col.(B) line 25.)Small Bullet 4,172,336
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) .................... 1 141,606,453
2 Total expenses (Form 990, Part IX, column (A), line 25) ..................... 2 139,797,236
3 Excess or (deficit) for the year. Subtract line 2 from line 1 ............. 3 1,809,217
4 Net unrealized gains (losses) on investments .......................... 4 5,471,400
5 Donated services and use of facilities ............................. 5  
6 Investment expenses ................................... 6  
7 Prior period adjustments .................................. 7  
8 Other (Describe in Part XIV) ................................. 8 -141,949
9 Total adjustments (net). Add lines 4 - 8 ............................. 9 5,329,451
10 Excess or (deficit) for the year per financial statements. Combine lines 3 and 9 ......... 10 7,138,668
Part XII Reconciliation of Revenue per Audited Financial Statements With Revenue per Return
1 Total revenue, gains, and other support per audited financial statements ....... 1 146,818,015
2 Amounts included on line 1 but not on Form 990, Part VIII, line 12:
a Net unrealized gains on investments .......... 2a 5,471,400
b Donated services and use of facilities ......... 2b  
c Recoveries of prior year grants ........... 2c  
d Other (Describe in Part XIV): ............ 2d -259,838
e Add lines 2a through 2d ..................... 2e 5,211,562
3 Subtract line 2e from line 1..................... 3 141,606,453
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 0
5 Total Revenue. Add lines 3 and 4c. (This should equal Form 990, Part I, line 12.) ...... 5 141,606,453
Part XIII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return
1 Total expenses and losses per audited financial statements ............. 1 139,679,347
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 0
3 Subtract line 2e from line 1..................... 3 139,679,347
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 117,889
b Other (Describe in Part XIV): ............ 4b  
c Add lines 4a and 4b....................... 4c 117,889
5 Total expenses. Add lines 3 and 4c. (This should equal Form 990, Part I, line 18.) ...... 5 139,797,236
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: THE HOSPITAL ACCOUNTS FOR UNCERTAINTY IN INCOME TAXES BY PRESCRIBING A RECOGNITION THRESHOLD OF MORE-LIKELY-THAN-NOT TO BE SUSTAINED UPON EXAMINATION BY THE APPROPRIATE TAXING AUTHORITY. MEASUREMENT OF THE TAX UNCERTAINTY OCCURS IF THE RECOGNITION THRESHOLD HAS BEEN MET. THERE WERE NO TAX UNCERTAINTIES THAT MET THE RECOGNITION THRESHOLD IN 2011 AND 2010.
PART XI, LINE 8 - OTHER ADJUSTMENTS:   CHANGE IN INTEREST IN NET ASSETS OF FOUNDATION & SUBSIDIARY -141,949.
PART XII, LINE 2D - OTHER ADJUSTMENTS:   CHANGE IN INTEREST IN NET ASSETS OF FOUNDATION & SUBSIDIARY -141,949. INVESTMENT FEES -117,889.
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
UNION HOSPITAL OF CECIL COUNTY INC
 
Employer identification number

52-0607945
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
 
No
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) .. 		    2,640,343   2,640,343 2.030 %
b Unreimbursed Medicaid (from
Worksheet 3, column a) . 		    30,259,445 30,259,445    
c Unreimbursed costs—other means-tested government programs (from Worksheet 3, column b) ....            
dTotal Charity Care and
Means-Tested Government Programs ..... 		    32,899,788 30,259,445 2,640,343 2.030 %
Other Benefits
e Community health improvement
services and community
benefit operations (from
(Worksheet 4) .... 		    636,362 116,740 519,622 0.400 %
f Health professions education
(from Worksheet 5) .. 		    241,512   241,512 0.190 %
g Subsidized health services
(from Worksheet 6) .. 		    8,241,273 4,866,360 3,374,913 2.590 %
h Research (from Worksheet 7)     421   421 0 %
i Cash and in-kind contributions
to community groups
(from Worksheet 8) .. 		    435,271 126,575 308,696 0.240 %
jTotal Other Benefits ...     9,554,839 5,109,675 4,445,164 3.420 %
kTotal. Add lines 7d and 7j. ..     42,454,627 35,369,120 7,085,507 5.450 %
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     6,329   6,329 0 %
2 Economic development     5,126   5,126 0 %
3 Community support     1,931   1,931 0 %
4 Environmental improvements     7,565   7,565 0.010 %
5 Leadership development and training for community members     159   159 0 %
6 Coalition building     20,745   20,745 0.020 %
7 Community health improvement advocacy     3,023   3,023 0 %
8 Workforce development     72,189   72,189 0.060 %
9 Other     38,710   38,710 0.030 %
10 Total     155,777   155,777 0.120 %
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
Yes
 
2
Enter the amount of the organization's bad debt expense (at cost).....
2
7,796,162
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
132,535
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
50,187,786
6
Enter Medicare allowable costs of care relating to payments on line 5.....
6
35,432,577
7
Subtract line 6 from line 5. This is the surplus or (shortfall)........
7
14,755,209
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
 
No
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 %
1
2
3
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?1
Name and address 		Licensed Hospital General-Medical-Surgical Children's Hospital Teaching Hospital Critical Hospital Research Facility ER-24Hours ER-Other Other (Describe)
1 UNION HOSPITAL OF CECIL COUNTY INC
106 BOW STREET
ELKTON,MD21921 		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:NA
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   No
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?  
Name and address Type of Facility (Describe)
1
2
3
4
5
6
7
8
9
10
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 7: ALL INFORMATION IS BASED ON ACTUAL COST PLUS OVERHEAD. OVERHEAD IS A HOSPITAL AVERAGE PERCENTAGE OF OVERHEAD TO DIRECT COSTS. DIRECT COSTS EXCLUDE BAD DEBT EXPENSE.
    PART I, LINE 7G: THE AMOUNTS ATTRIBUTABLE TO A PHYSICIAN CLINIC WHICH WERE INCLUDED IN THE SUBSIDIZED HEALTH SERVICES FIGURES ON PART I, LINE 7G ARE AS FOLLOWS:COLUMN (C) TOTAL COMMUNITY BENEFIT EXPENSE - $7,393,843COLUMN (D) DIRECT OFFSETTING REVENUE - $4,457,746COLUMN (E) NET COMMUNITY BENEFIT EXPENSE - $2,936,097
    PART I, L7 COL(F): THE AMOUNT OF BAD DEBT EXPENSE INCLUDED ON FORM 990, PART IX, LINE 25 BUT SUBTRACTED FOR PURPOSES OF CALCULATING THE PERCENTAGE IN THIS COLUMN IS $9,542,426.
    PART II: PHYSICAL IMPROVEMENTS/HOUSING UNION HOSPITAL PROVIDED OPPORTUNITIES FOR HOSPITAL STAFF TO GET INVOLVED IN REPAIR INITIATIVES. ONE SUCH PROGRAM WAS ENTITLED "PROJECT ECHO." THROUGH THIS PROGRAM COMMUNITY MEMBERS OR ORGANIZATIONS PROPOSED PHYSICAL IMPROVEMENT PROJECTS FOR THE HOSPITAL TO ADOPT. IN FISCAL YEAR 2011, HOSPITAL STAFF PARTICIPATED IN BUILDING HANDICAP RAMPS FOR CHURCHES, RE-FLOORING YOUTH CENTERS AND OTHER FACILITY ENHANCEMENT PROJECTS. THESE FACILITY REPAIRS MAY HAVE CONTRIBUTED TO HEALTH IMPROVEMENTS FOR THOSE WITH DISABILITIES OR FOR SHIELDING YOUTH FROM ENGAGEMENT IN CRIMINAL ACTIVITIES THAT COULD LEAD TO POORER HEALTH OUTCOMES. ECONOMIC DEVELOPMENT UNION HOSPITAL WORKED WITH THE CECIL COUNTY ECONOMIC DEVELOPMENT COMMISSION IN FISCAL YEAR 2011. THIS ORGANIZATION INVESTIGATED AND ASSEMBLED INFORMATION PERTINENT TO THE ECONOMIC RESOURCES AND INDUSTRIAL OPPORTUNITIES OF CECIL COUNTY. IT ENCOURAGED THE LOCATION OF NEW INDUSTRIAL ENTERPRISES AND THE EXPANSIONS OF PRESENT ENTERPRISES IN THE COUNTY. HOSPITAL STAFF PUT TOGETHER A PRESENTATION TO THE COMMISSION TO DISCUSS THE ECONOMIC IMPACT AND BENEFITS OF CRITICAL AND GENERAL HEALTH CARE THROUGH TELEMEDICINE. COMMUNITY SUPPORTIN FISCAL YEAR 2011, UNION HOSPITAL PROVIDED COMMUNITY SUPPORT THROUGH INITIATIVES SUCH AS PROVIDING FREE NOTARY SERVICES TO THE COMMUNITY AND WORKING WITH CECIL COUNTY EMERGENCY MEDICAL SERVICES TO PROVIDE LECTURES ON IMPORTANT EMS TOPICS IN THE COMMUNITY, AS WELL AS PROVIDING PARAMEDIC EVALUATIONS AND PRACTICALS FOR STUDENTS AND HEALTH PROFESSIONALS IN THE COMMUNITY. COMMUNITY SUPPORT PROVIDES AN OUTLET FOR GROWTH AND DEVELOPMENT OF COMMUNITY RESOURCES. THIS CAN IMPACT HEALTH IN A NUMBER OF POSITIVE WAYS-IN PARTICULAR UNION HOSPITAL CHOSE TO GROW AND DEVELOP ACCESS TO ADVISORY AND EMERGENCY SERVICES FOR THE CECIL COUNTY COMMUNITY. ENVIRONMENTAL IMPROVEMENTS IN FISCAL YEAR 2011, A GROUP OF UNION HOSPITAL STAFF CONDUCTED AN ADOPT-A-HIGHWAY LITTER PICK-UP TO MAINTAIN A STRETCH OF HIGHWAY THAT THE HOSPITAL HAD ADOPTED. MEMBERS OF THE HOSPITAL'S FACILITIES AND SECURITY STAFF ALSO PROVIDED FREE PROPERTY ASSESSMENTS TO AREA ORGANIZATIONS. ENVIRONMENTAL MAINTENANCE AND IMPROVEMENTS CAN IMPROVE THE HEALTH OF THE COMMUNITY BY PROVIDING SUSTAINABLE AND RESPONSIBLE STEWARDSHIP OF RESOURCES. LEADERSHIP DEVELOPMENT AND TRAINING FOR COMMUNITY MEMBERSUNION HOSPITAL'S EDUCATION DEPARTMENT, AFFINITY HEALTH INSTITUTE, PROVIDED LEADERSHIP DEVELOPMENT TRAINING TO MEMBERS OF THE CECIL COUNTY COMMUNITY IN COLLABORATION WITH THE CECIL LEADERSHIP INSTITUTE, AS PART OF A COUNTY-WIDE LEADERSHIP PROGRAM. INCREASED ACCESS TO LEADERSHIP SERVICES CAN IMPROVE THE HEALTH OF A COMMUNITY, ESPECIALLY FOR INDIVIDUALS TASKED WITH MAKING CRITICAL CARE DECISIONS, ALLOCATING RESOURCES AMONG COMMUNITY HEALTH ORGANIZATIONS AND TRAINING AND EDUCATING HEALTH CARE WORKFORCES. ADVOCACY FOR COMMUNITY HEALTH IMPROVEMENTS UNION HOSPITAL'S BEHAVIORAL HEALTH STAFF PARTICIPATED IN MEETINGS WITH THE DEPARTMENT OF SOCIAL SERVICES IN CECIL COUNTY AND THE CECIL COUNTY HEALTH DEPARTMENT TO FACILITATE THE ALLOCATION OF COMMUNITY RESOURCES AND THE PROVISION OF PLACEMENT OPPORTUNITIES FOR BEHAVIORAL HEALTH PATIENTS. THIS COLLABORATION ADDRESSED ISSUES LIKE MENTAL HEALTH AND HOMELESSNESS WHILE WORKING WITH SENATOR PIPKIN AND OTHER LEGISLATIVE REPRESENTATIVES/EVENTS. ADVOCACY FOR BEHAVIORAL HEALTH RESOURCES AND PLACEMENT OPPORTUNITIES WITHIN THE COMMUNITY AND IN TREATMENT PROGRAMS, ESPECIALLY FOR THE HOMELESS POPULATION, PROVIDES THESE AND POTENTIAL PATIENTS WITH ACCESS TO MENTAL HEALTH SERVICES THAT THEY WOULD OTHERWISE NOT HAVE IF THESE SERVICE EXTENSIONS WERE NOT AVAILABLE. UNION HOSPITAL STAFF ALSO PARTICIPATED IN EDUCATIONAL PROGRAMS FOR WOMEN AND CHILDREN THROUGH THE JUDY CENTER-AN ORGANIZATION THAT PROVIDES COMPREHENSIVE, COMMUNITY BASED SERVICES TO YOUNG CHILDREN AND THEIR FAMILIES. UNION HOSPITAL STAFF PROVIDED NUTRITIONAL AND COMMUNITY NEEDS PLANNING SESSIONS FOR FAMILIES. PROVIDING THESE OPPORTUNITIES INCREASES COMMUNITY HEALTH IMPROVEMENT THROUGH PUBLIC HEALTH EDUCATION IN PARTNERSHIP WITH A COMMUNITY ORGANIZATION. WORKFORCE DEVELOPMENT UNION HOSPITAL STAFF PROVIDED A MIDDLE SCHOOL-BASED PROGRAM THAT GRANTED STUDENTS ACCESS TO VARIOUS HOSPITAL JOBS AND ENVIRONMENTS TO LEARN MORE ABOUT VARIOUS HEALTH CARE CAREER OPPORTUNITIES. IN FISCAL YEAR 2011, THE HOSPITAL HOSTED TEN CAREER AWARENESS DAYS WITH PARTICIPATION FROM FIVE CECIL COUNTY MIDDLE SCHOOLS-450 STUDENTS WERE SERVED IN TOTAL. AT A HIGHER EDUCATIONAL LEVEL, UNION HOSPITAL PROVIDED SUPPORT FOR LOCAL NURSING PROGRAMS THROUGH FACULTY SEARCHES AND OFFERING EXPERTISE IN INTERVIEWING CANDIDATES FOR HIRE. UNION HOSPITAL ALSO RECRUITED PHYSICIANS FOR AREAS IDENTIFIED AS MEDICALLY UNDERSERVED AREAS. FROM AUGUST 2010 TO JUNE 2011, THE HOSPITAL RECRUITED PHYSICIANS IN THE FOLLOWING SERVICE LINES:-UROLOGY;-RHEUMATOLOGY;-ENDOCRINOLOGY; AND-PSYCHIATRY. OTHERIN-KIND CONTRIBUTIONS BY UNION HOSPITAL STAFF THAT HAD AN INDIRECT AFFECT ON HEALTH NEEDS WERE REPORTED IN THIS CATEGORY. THESE INCLUDED ACTIVITIES SUCH AS SERVING ON COMMUNITY BOARDS THAT COULD BE INDIRECTLY ASSOCIATED WITH IMPROVING HEALTH ISSUES IN THE COMMUNITY. THE FOLLOWING ARE EXAMPLES: -SERVICE ON THE BOYS AND GIRLS CLUB COMMUNITY BOARD -SERVICE ON THE CECIL PARTNERSHIPS FOR CHILDREN, YOUTH AND FAMILIES COMMUNITY BOARD -SERVICE ON THE UNITED WAY OF CECIL COUNTY COMMUNITY BOARD -SERVICE ON THE CHESAPEAKE HEALTH EDUCATION PROGRAM COMMUNITY BOARD NET COMMUNITY BENEFITS FOR ACTIVITIES REPORTED IN THIS CATEGORY WERE $38,710, AND 1,160 PEOPLE WERE SERVED THROUGHOUT THE CECIL COUNTY COMMUNITY IN FISCAL YEAR 2011.
    PART III, LINE 4: COSTING METHODOLOGY USED IN DETERMINING BAD DEBT EXPENSE AMOUNTS: THE METHODOLOGY ASSUMES THAT THE PERCENTAGE OF CHARITY CARE TO TOTAL REVENUE CAN BE APPLIED TO THE AMOUNT OF BAD DEBT EXPENSE FOR THE YEAR. OTHER BAD DEBT AMOUNTS ARE NOT INCLUDED IN COMMUNITY BENEFITS.HOW THE ORGANIZATION ACCOUNTS FOR DISCOUNTS AND PAYMENTS ON PATIENT ACCOUNTS IN DETERMINING BAD DEBT EXPENSE: DISCOUNTS AND PAYMENTS ARE OFFSET AGAINST BAD DEBT EXPENSE.METHOD USED TO DETERMINE THE AMOUNT THAT REASONABLY COULD BE ATTRIBUTABLE TO PATIENTS WHO LIKELY WOULD QUALIFY FOR FINANCIAL ASSISTANCE UNDER THE HOSPITAL'S FINANCIAL ASSISTANCE POLICY: THE HOSPITAL USES THE AVERAGE CHARITY CARE WRITE-OFF PER CHARITY CASE MULTIPLIED BY THE NUMBER OF CASES NOT APPROVED DUE TO LACK OF DOCUMENTATION.FOOTNOTE TO THE ORGANIZATION'S FINANCIAL STATEMENTS THAT DESCRIBES BAD DEBT EXPENSE: ACCOUNTS RECEIVABLE, PATIENTS ARE REPORTED AT NET REALIZABLE VALUE. ACCOUNTS ARE WRITTEN OFF WHEN THEY ARE DETERMINED TO BE UNCOLLECTIBLE BASED UPON MANAGEMENT'S ASSESSMENT OF INDIVIDUAL ACCOUNTS. THE ALLOWANCE FOR DOUBTFUL ACCOUNTS IS ESTIMATED BASED UPON A PERIODIC REVIEW OF THE ACCOUNTS RECEIVABLE AGING, PAYOR CLASSIFICATIONS AND APPLICATION OF HISTORICAL WRITE-OFF PERCENTAGES.
    PART III, LINE 8: COSTING METHODOLOGY USED TO DETERMINE AMOUNT OF MEDICARE ALLOWABLE COSTS: MEDICARE ALLOWABLE COSTS EQUAL MEDICARE REVENUE ADJUSTED FOR THE HOSPITAL TOTAL RATIO OF PATIENT CARE COSTS TO CHARGES DUE TO THE FACT THAT MEDICARE PAYS FULL CHARGES IN MARYLAND.EXTENT TO WHICH MEDICARE SHORTFALL SHOULD BE TREATED AS COMMUNITY BENEFIT: IN THE STATE OF MARYLAND, MEDICARE PAYS FULL CHARGES. THERE IS NO SHORTFALL THAT SHOULD BE TREATED AS A COMMUNITY BENEFIT.
    FOR THE LAST 30 YEARS, MARYLAND HOSPITALS HAVE MET THEIR COMMUNITY BENEFIT OBLIGATIONS IN A UNIQUE MANNER THAT BUILDS THE COSTS OF UNCOMPENSATED CARE--CHARITY CARE AND PATIENT BAD DEBT--AND GRADUATE MEDICAL EDUCATION INTO THE RATES THAT HOSPITALS ARE REIMBURSED BY ALL PAYORS. THE SYSTEM IS BASED IN FEDERAL AND STATE LAW AND BENEFITS ALL MARYLAND RESIDENTS, INCLUDING THOSE IN NEED OF FINANCIAL ASSISTANCE TO PAY THEIR HOSPITAL BILLS.MARYLAND IS THE ONLY STATE IN WHICH ALL PAYORS--GOVERNMENTALLY-INSURED, COMMERICALLY--INSURED, OR SELF PAY--ARE CHARGED THE SAME PRICE FOR SERVICES AT ANY GIVEN HOSPITAL.UNDER THIS SYSTEM, MARYLAND HOSPITALS ARE REGULATED BY A STAGE AGENCY--THE HEALTH SERVICES COST REVIEW COMMISSION (HSCRC)--THAT IS REQUIRED TO:1) PUBLICLY DISCLOSE INFORMATION ON THE COST AND FINANCIAL POSITION OF HOSPITALS;2) REVIEW AND APPROVE HOSPITAL RATES;3) COLLECT INFORMATION DETAILING TRANSACTIONS BETWEEN HOSPITALS AND FIRMS WITH WHICH THEIR TRUSTEES HAVE A FINANCIAL INTEREST; AND,4) MAINTAIN THE SOLVENCY OF EFFICIENT AND EFFECTIVE HOSPITALS.SINCE 2000, THE RATE SETTING COMMISSION HAS HAD ITS OWN FRAMEWORK FOR REPORTING HOSPITALS' COMMUNITY BENEFITS AND ISSUING A REPORT ANNUALLY REGARDING HOSPITALS' COMMUNITY BENEFIT TOTALS. BECAUSE OF THIS UNIQUE STRUCTURE, MARYLAND HOSPITALS' COMMUNITY BENEFITS NUMBERS WILL NOT COMPARE WITH THE REST OF THE NATION'S HOSPITALS. HOWEVER, MARYLAND HOSPITALS MEET OR EXCEED THE COMMUNITY BENEFIT STANDARD ESTABLISHED BY THE IRS IN 1969. ADDITIONAL DETAIL ILLUSTRATING THIS CAN BE FOUND WITHIN THIS SCHEDULE H REPORT.MARYLAND'S REGULATORY SYSTEM CREATES A UNIQUE PROCESS FOR HOSPITAL PAYMENT THAT DIFFERS FROM THE REST OF THE NATION. THE HEALTH SERVICES COST REVIEW COMMISSION (HSCRC) DETERMINES PAYMENT THROUGH A RATE-SETTING PROCESS AND ALL PAYORS, INCLUDING GOVERNMENTAL PAYORS, PAY THE SAME AMOUNT FOR THE SAME SERVICES DELIVERED AT THE SAME HOSPITAL. MARYLAND'S UNIQUE ALL-PAYOR SYSTEM INCLUDES A METHOD FOR REFERENCING UNCOMPENSATED CARE IN EACH PAYORS' RATES, WHICH DOES NOT ENABLE MARYLAND HOSPITALS TO BREAKOUT ANY OFFSETTING REVENUE RELATED TO UNCOMPENSATED CARE. COMMUNITY BENEFITS EXPENSES ARE EQUAL TO MEDICAID REVENUES IN MARYLAND, AS SUCH, THE NET EFFECT IS ZERO. THE EXCEPTION TO THIS IS THE IMPACT ON THE HOSPITAL OF ITS SHARE OF THE MEDICAID ASSESSMENT. IN RECENT YEARS, THE STATE OF MARYLAND HAS CLOSED FISCAL GAPS IN THE STATE MEDICAID BUDGET BY ASSESSING HOSPITALS THROUGH THE RATE-SETTING SYSTEM.
    PART VI, LINE 2: IMPROVING THE HEALTH OF UNION HOSPITAL'S COMMUNITY BENEFIT SERVICE AREA REQUIRES COLLABORATION AMONG COMMUNITY MEMBERS AND ACTIVE PARTICIPATION IN THE PLANNING AND IMPLEMENTATION OF HEALTH PROGRAMS. DURING FISCAL YEAR 2011, UNION HOSPITAL WORKED WITH THE CECIL COUNTY HEALTH DEPARTMENT AND THE CECIL COUNTY COMMUNITY HEALTH ADVISORY COMMITTEE TO DISCUSS THE BEST METHOD TO ASSESS THE COUNTY'S HEALTH PROBLEMS, IDENTIFY PRIORITIES AND DEVELOP STRATEGIES TO ADDRESS THESE PROBLEMS. THE HOSPITAL ALSO WORKED WITH A COMMUNITY BENEFIT CONSULTANT, JOAN LINDENSTEIN, TO ADVISE THE HOSPITAL REGARDING THE PLANNING AND IMPLEMENTATION OF A COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA). ADDITIONALLY, IN JULY 2011, THE HOSPITAL HIRED A FULL-TIME COMMUNITY BENEFITS COORDINATOR TO ASSIST WITH THE MONITORING AND TRACKING OF COMMUNITY BENEFITS, AS WELL AS THE PREPARATION AND ANALYSIS OF THE CHNA. THROUGH THE MARYLAND HOSPITAL ASSOCIATION, UNION HOSPITAL WAS INTRODUCED TO THE HEALTHY COMMUNITIES INSTITUTE (HCI). HCI HAS DESIGNED A SYSTEM AND STRATEGIES TO HELP LOCAL PUBLIC HEALTH DEPARTMENTS, HOSPITALS AND COALITIONS MEASURE COMMUNITY HEALTH, SHARE BEST PRACTICES, IDENTIFY NEW FUNDING SOURCES AND FACILITATE COMMUNITY HEALTH IMPROVEMENT. AFTER CAREFUL REVIEW OF THE HCI SYSTEM, AND WITH THE SUPPORT OF THE CECIL COUNTY HEALTH DEPARTMENT, THE HOSPITAL CONTRACTED WITH HCI TO ASSIST WITH THE DEVELOPMENT OF THE HOSPITAL'S CHNA. THE HCI SYSTEM IS AVAILABLE VIA THE HOSPITAL'S WEBSITE: HTTP://WWW.UHCC.COM/ABOUT/COMMUNITY-BENEFIT. THE WEBSITE PROVIDES CONTINUOUSLY UPDATED HEALTH AND QUALITY OF LIFE INDICATOR DASHBOARDS. HAVING ACCESS TO THE HCI SYSTEM WILL HELP UNION HOSPITAL MEET THE HEALTHCARE REFORM AND IRS FORM 990 REQUIREMENTS FOR CONDUCTING A CHNA. IN COLLABORATION WITH THE CECIL COUNTY HEALTH DEPARTMENT AND OTHER COMMUNITY STAKEHOLDERS, THE HOSPITAL WILL USE THE INFORMATION GATHERED FROM THIS ASSESSMENT OF HEALTH DATA TO IDENTIFY HEALTH PRIORITIES FOR THE COMMUNITY BENEFIT SERVICE AREA. THE HOSPITAL WILL ALSO FORMULATE A STRATEGIC PLAN FOR MEETING THESE HEALTH NEEDS. IN ADDITION, THE HOSPITAL WILL CONDUCT FOUR TOWN HALL MEETINGS THROUGHOUT FISCAL YEAR 2012, IN ORDER TO FULLY ENGAGE THE COMMUNITY AND FURTHER SUPPORT THE HEALTH PRIORITIES THAT ARE IDENTIFIED BY THE CHNA. UNION HOSPITAL WILL WORK COLLABORATIVELY WITH THE CECIL COUNTY HEALTH DEPARTMENT'S HEALTH OFFICERS AND EPIDEMIOLOGIST, UTILIZING THEIR EXPERTISE TO BOTH IDENTIFY COMMUNITY HEALTH NEEDS AND DEVELOP A STRATEGIC PLAN. IN THE PAST, THE HOSPITAL HAS RELIED ON THE CECIL COUNTY HEALTH DEPARTMENT'S COMMUNITY HEALTH SURVEY. THE LAST COMMUNITY HEALTH SURVEY WAS CONDUCTED IN 2009. THE RESULTS OF THIS SURVEY CONFIRMED THE ONGOING PRESENCE OF THE FOLLOWING HEALTH PRIORITIES: 1) TOBACCO USE; 2) CANCER (LUNG CANCER HAVING THE HIGHEST INCIDENCE AND PREVALENCE IN THE COUNTY); 3) LIFESTYLE AND NUTRITION; AND 4) ALCOHOL AND DRUG ABUSE/ADDICTION.
    PART VI, LINE 3: UNION HOSPITAL OF CECIL COUNTY UTILIZES A COMMUNITY FINANCIAL ASSISTANCE (CHARITY CARE) POLICY TO ENSURE THAT THE HOSPITAL'S STAFF FOLLOWS A CONSISTENT AND EQUITABLE PROCESS IN GRANTING CHARITY CARE/FINANCIAL ASSISTANCE TO APPROPRIATE PATIENTS, WHILE RESPECTING THE INDIVIDUAL'S DIGNITY. THE POLICY IS IN AGREEMENT WITH THE ESTABLISHED MARYLAND STATE FINANCIAL ASSISTANCE GUIDELINES REGARDING CHARITY CARE.THE POLICY DESCRIBES THE APPLICATION PROCESS FOR THE FINANCIAL ASSISTANCE PROGRAM, THE INFORMATION REQUIRED TO VERIFY INCOME AND ASSETS, THE TIMELINE FOR APPLICATION REVIEW AND TIERED ADJUSTMENTS BASED ON FEDERAL POVERTY GUIDELINES.THE APPLICATION FOR FINANCIAL ASSISTANCE IS AVAILABLE TO ALL UNDERINSURED AND UNINSURED PATIENTS OF UNION HOSPITAL. APPLICATIONS AND SIGNAGE ARE LOCATED THROUGHOUT THE HOSPITAL, EMERGENCY ROOM AND OUTPATIENT AREAS. THE FINANCIAL ASSISTANCE APPLICATION AND BROCHURE (IN ENGLISH AND SPANISH) ARE AVAILABLE ON THE HOSPITAL'S WEBSITE: HTTP://WWW.UHCC.COM/ABOUT/PATIENTS-VISITORS/ADMISSION/FINANCIAL-ASSISTANCE. IN ADDITION, EVERY JANUARY THE HOSPITAL PLACES AN ADVERTISEMENT IN THE LOCAL PAPER OUTLINING ITS FINANCIAL ASSISTANCE POLICY. ALL FINANCIAL ASSISTANCE APPLICATIONS RECEIVED ARE PROCESSED FOR ELIGIBILITY. PATIENTS WHO ARE NOT ELIGIBLE FOR CHARITY CARE ARE REFERRED TO THE CECIL COUNTY HEALTH DEPARTMENT TO DETERMINE IF OTHER ASSISTANCE IS AVAILABLE. ANY INDIVIDUAL WHO PRESENTS TO THE BUSINESS OFFICE OF UNION HOSPITAL IN PERSON TO DISCUSS HIS/HER BILL IS PROVIDED WITH A FINANCIAL ASSISTANCE APPLICATION. ALL INPATIENT, SELF-PAY PATIENTS ARE VISITED BY FINANCE STAFF AND SCREENED FOR THE FINANCIAL ASSISTANCE PROGRAM, AS WELL AS FOR MEDICAID AND OTHER STATE AND COUNTY PROGRAMS. FOLLOWING DISCHARGE FROM THE HOSPITAL, EACH PATIENT RECEIVES A SUMMARY OF CHARGES WHICH INCLUDES NOTICE OF THE FINANCIAL ASSISTANCE PROGRAM AND A DESIGNATED CONTACT TELEPHONE NUMBER.
    PART VI, LINE 4: UNION HOSPITAL'S COMMUNITY BENEFIT SERVICE AREA INCLUDES THE TOWNS OF ELKTON, ELK MILLS, CHILDS, CHESAPEAKE CITY, EARLEVILLE, WARWICK, CECILTON, NORTH EAST, CHARLESTOWN, AND RISING SUN IN CECIL COUNTY. THE HOSPITAL'S SECONDARY SERVICE AREA, WHERE THE HOSPITAL RECEIVES ADDITIONAL PATIENTS, INCLUDES THE TOWNS IN WESTERN CECIL COUNTY OF CONOWINGO, COLORA, PORT DEPOSIT, PERRYVILLE, AND PERRY POINT; BEAR, MIDDLETOWN, AND TOWNSEND IN DELAWARE; AND SOUTHERN CHESTER COUNTY IN PENNSYLVANIA. IN 2010, THE TOTAL POPULATION OF CECIL COUNTY WAS 101,108 PERSONS. THE POPULATION DENSITY WAS 292 PEOPLE PER SQUARE MILE. OF THE TOTAL COUNTY POPULATION, 50.3% WERE FEMALES. THE MEDIAN AGE WAS 38.9 YEARS. THE RACIAL MAKEUP OF THE COUNTY WAS 89.2% WHITE; 6.2% BLACK OR AFRICAN AMERICAN; 0.3% AMERICAN INDIAN OR ALASKAN NATIVE; AND 1.1% ASIAN. THERE WERE 36,867 HOUSEHOLDS, AND OF THIS AMOUNT, 26,681 WERE FAMILY HOUSEHOLDS. THE MEDIAN HOUSEHOLD INCOME WAS $62,427. APPROXIMATELY 8.1% OF HOUSEHOLDS AND 12.2% OF ALL PEOPLE WERE BELOW THE POVERTY LINE. THOSE PERSONS YOUNGER THAN 18 YEARS OF AGE MADE UP 18.1% OF THIS IMPOVERISHED POPULATION; WHILE, 11.1% WERE AGED 65 AND OLDER. DURING FISCAL YEAR 2011, 5.7% OF THE HOSPITAL'S PATIENTS WERE UNINSURED AND 21.7% WERE MEDICAID RECIPIENTS.UNION HOSPITAL'S TARGET POPULATION WAS EVENLY SPLIT BETWEEN MALES AND FEMALES IN 2010, SO THE COMMUNITY BENEFIT INITIATIVES TARGETED BOTH GENDERS. THE MAJORITY OF CECIL COUNTY WAS WHITE, BUT THE HOSPITAL'S INITIATIVES WERE NOT NECESSARILY BASED ON RACE/ETHNICITY; THE HOSPITAL FOCUSED ON THE HEALTH NEED VERSUS THE ETHNIC/RACIAL MAKE-UP OF THE COUNTY. WHILE THE AVERAGE AGE OF THE HOSPITAL'S PATIENTS WAS 38.9 YEARS, PROGRAMS WERE TAILORED TO FIT THE APPROPRIATE AGE GROUP, BLENDING PROGRAM DESIGN ELEMENTS WHERE APPROPRIATE. OTHER IMPORTANT FACTORS THAT INFLUENCED THE MAKE-UP OF UNION HOSPITAL'S COMMUNITY BENEFIT PROGRAMMING WERE POVERTY AND UNINSURED PERCENTAGES. IN 2010, THE MEDIAN HOUSEHOLD INCOME WAS $62,427, AND 8.1% OF ALL HOUSEHOLDS HAD INCOMES BELOW THE FEDERAL POVERTY LEVEL. ALMOST 15% OF THE RESIDENTS OF CECIL COUNTY WERE MEDICAID RECIPIENTS, AND 9.08% OF ALL RESIDENTS DID NOT HAVE HEALTH INSURANCE. CECIL COUNTY'S MORTALITY RATE WAS GREATLY INFLUENCED BY DEATHS ASSOCIATED WITH HEART DISEASE AND CANCER. AS A RESULT, UNION HOSPITAL DEVELOPED FREE SCREENING OPPORTUNITIES AND HEALTH EDUCATION INITIATIVES FOR THE COMMUNITY TO TRY TO IMPROVE MORTALITY IN THE COMMUNITY BENEFIT SERVICE AREA. UNION HOSPITAL'S PROGRAMMING WAS FOCUSED ON PROVIDING AS MUCH HEALTH EDUCATION AND ACCESS TO CARE AS POSSIBLE; HOWEVER, WITH NO PUBLIC TRANSPORTATION, A SHORTAGE OF PRIMARY CARE PROVIDERS, AND BEING A RURAL COUNTY, ACCESS TO CARE CONTINUED TO BE A BARRIER FOR HEALTH CARE DELIVERY.
    PART VI, LINE 6: THE CECIL COUNTY COMMUNITY HEALTH ADVISORY COMMITTEE IN CONJUNCTION WITH UNION HOSPITAL AND CECIL COUNTY HEALTH DEPARTMENT IDENTIFIED FOUR HEALTH PRIORITIES FOR CECIL COUNTY IN 2009: 1) CANCER, 2) TOBACCO USE, 3) LIFESTYLES AND NUTRITION, AND 4) ALCOHOL AND DRUG ABUSE/ADDICTION. UNION HOSPITAL ADDRESSED EACH HEALTH PRIORITY. THE FOLLOWING EXPLANATION DETAILS DIFFERENT ASPECTS OF THE COMMUNITY BENEFITS SERVICES UNION HOSPITAL PROVIDED TO PATIENTS IN CECIL COUNTY, ACCORDING TO THE FOUR IDENTIFIED HEALTH PRIORITIES. CANCER IN FISCAL YEAR 2011, UNION HOSPITAL PROVIDED FREE PROSTATE SCREENINGS (42) AND COLORECTAL SCREENINGS (482) TO RESIDENTS OF CECIL COUNTY. ACCESS TO THESE SCREENINGS PROVIDED PATIENTS WITH THE OPPORTUNITY TO IDENTIFY SIGNS AND SYMPTOMS OF PROSTATE AND COLORECTAL CANCERS. THESE SCREENINGS EDUCATE PATIENTS ON WHAT THE NEXT STEPS ARE IN TAKING CARE OF ILLNESS OR INFIRMARY. THE SCREENINGS ALSO GIVE UNION HOSPITAL STAFF THE CHANCE TO MAKE SURE, THROUGH FOLLOW-UP CARE, THAT PATIENTS ARE CONNECTED TO PRIMARY CARE PROVIDERS WHO WILL GUIDE THEM THROUGH THE NEXT STEPS THAT ARE NECESSARY FOR CONTINUED CARE. UNION HOSPITAL ALSO PROVIDES CANCER SUPPORT GROUPS. THROUGH 24 BREAST CANCER SUPPORT GROUP SESSIONS AND 12 I CAN COPE SUPPORT GROUP SESSIONS, PATIENTS WERE PROVIDED WITH OUTLETS TO COPE WITH THE CHALLENGES THAT ARISE FROM A CANCER DIAGNOSIS, OPPORTUNITIES ON HOW TO MANAGE THE IMPACT OF CANCER AND RECEIVE EDUCATION AND GUIDANCE ON HOW TO STAY STRONG. THE BREAST CANCER SUPPORT GROUP SERVED 269 INDIVIDUALS IN FISCAL YEAR 2011 AND THE I CAN COPE SUPPORT GROUP SERVED 135 INDIVIDUALS. TOBACCO USEIN FISCAL YEAR 2011, UNION HOSPITAL PROVIDED THE TOBACCO CESSATION PROGRAM THAT HELPED STAFF IDENTIFY SMOKERS IN THE HOSPITAL'S PATIENT POPULATION AND PROVIDE THEM WITH THE TOOLS THEY NEEDED TO EITHER QUIT SMOKING AND/OR STOP USING TOBACCO PRODUCTS. LIFESTYLES AND NUTRITION IN FISCAL YEAR 2011, UNION HOSPITAL STAFF PROVIDED NUTRITION SEMINARS AND PRESENTATIONS THROUGHOUT CECIL COUNTY IN ORDER TO IMPROVE THE QUALITY AND QUANTITY OF HEALTHY LIFESTYLE HEALTH EDUCATION IN THE COMMUNITY. THESE SEMINARS AND PRESENTATIONS PROVIDED INFORMATION AND SKILLS ON HOW TO PROVIDE PROPER NUTRITION FOR BOTH THE INDIVIDUAL AND THE FAMILY. A DIABETES SUPPORT GROUP WAS OFFERED TO COMMUNITY RESIDENTS AT UNION HOSPITAL. THIS SUPPORT GROUP MET FOR 12 SESSIONS AND SERVED 90 INDIVIDUALS THROUGHOUT FISCAL YEAR 2011. ACCESS TO THE DIABETES SUPPORT GROUP PROVIDED COMMUNITY RESIDENTS WITH EDUCATION AND CARE SUPPORT. UNION HOSPITAL'S CLINICAL AND NON-CLINICAL STAFF MENTORED STUDENTS FROM AREA COLLEGES AND UNIVERSITIES THROUGH NUTRITION AND FOOD SERVICES INTERNSHIPS IN FISCAL YEAR 2011. THESE INTERNSHIPS PROVIDED STUDENTS WITH THE OPPORTUNITY TO LEARN ABOUT AND PROMOTE HEALTHY LIFESTYLE CHOICES, IN TURN TRAINING STUDENT INTERNS ON HOW TO CONVEY THIS INFORMATION TO COMMUNITY MEMBERS AND UTILIZE SKILLS LEARNED IN FUTURE CAREERS. IN FISCAL YEAR 2011, EIGHT INTERNS COMPLETED 889 HOURS OF INTERNSHIP WORK (189 HOURS WERE REPORTED FOR COMMUNITY BENEFITS AFTER AN 80% STANDARD REDUCTION WAS TAKEN). IN JANUARY 2011, THE CECIL COMMUNITY HEALTH CENTER WAS CREATED IN PARTNERSHIP WITH CECIL COUNTY HEALTH DEPARTMENT AND AREA PRIMARY CARE PROVIDERS. THE MISSION OF THIS CLINIC WAS TO INCREASE ACCESS TO PRIMARY CARE SERVICES IN CECIL COUNTY AMONG UNINSURED OR UNDER-INSURED PATIENTS, OVERALL REDUCING THE NUMBER OF UNNECESSARY ADMISSIONS AND READMISSIONS TO UNION HOSPITAL'S EMERGENCY DEPARTMENT. FIVE PHYSICIANS AND 21 ADDITIONAL UNION HOSPITAL STAFF CONTRIBUTED 270.75 HOURS OF SERVICE TO THIS CLINIC. EIGHTY-FIVE PERSONS WERE SERVED BY THIS INITIATIVE. THE CECIL COMMUNITY HEALTH CENTER IS STILL IN OPERATION IN FISCAL YEAR 2012. UNION HOSPITAL'S EMPLOYED PHYSICIANS AND ADDITIONAL STAFF PROVIDED 450 SPORTS PHYSICALS TO STUDENTS IN THE CECIL COUNTY PUBLIC SCHOOL SYSTEM THAT DID NOT HAVE ACCESS TO PROPER PHYSICAL CARE. CHILD AND ADOLESCENT HEALTH WAS PROMOTED THROUGH THIS ACCESSIBILITY TO FREE HEALTH CARE IN THE FORM OF A SPORTS PHYSICAL. UNION HOSPITAL, IN COLLABORATION WITH CECIL COUNTY CHILD ADVOCACY CENTER, PROMOTED THE HEALTH AND WELL-BEING OF CHILDREN THROUGH ADVOCACY FOR INVESTIGATION AND ASSESSMENT OF CHILD MALTREATMENT IN CECIL COUNTY. TWO PHYSICIANS, THE HOSPITAL'S CEO AND TWO MANAGERS CONTRIBUTED A TOTAL OF 27.15 COMMUNITY BENEFIT HOURS TO PLANNING SESSIONS AND TASK FORCE MEETINGS FOR CHILD ADVOCACY IN CECIL COUNTY. A TOTAL OF 250 PERSONS WERE SERVED BY THIS INITIATIVE. ADVOCACY THROUGH THIS COLLABORATION HAS CONTINUED INTO FISCAL YEAR 2012. ALCOHOL AND DRUG ABUSE/ADDICTIONUNION HOSPITAL PROVIDED THE FOLLOWING COMPONENTS OF INITIATIVES DIRECTED AT ADDRESSING ALCOHOL AND DRUG ABUSE/ADDICTION IN CECIL COUNTY: -THE HOSPITAL FORMED A COLLABORATIVE PROJECT WITH DRUG-EFFECTED NEWBORNS; -THE HOSPITAL TRAINED SEVEN FOSTER PARENTS IN IDENTIFYING THE SIGNS AND SYMPTOMS OF NEONATAL ABSTINENCE SYNDROME (NAS), AS WELL AS THE HOSPITAL SERVICES AVAILABLE TO CARE FOR BABIES GOING THROUGH WITHDRAWAL; AND -THE HOSPITAL ALSO PROVIDED MEETING SPACE FOR ALCOHOLICS ANONYMOUS THROUGHOUT FISCAL YEAR 2011. CECIL COUNTY HEALTH DEPARTMENT PROVIDED THE MAJORITY OF INITIATIVES DIRECTED AT IMPROVING HEALTH IN THIS AREA DURING FISCAL YEAR 2011. THEY OFFERED TRADITIONAL OUTPATIENT SERVICES FOR BOTH ADULTS AND CHILDREN THAT INCLUDED: EVALUATION, GROUP TREATMENT SESSIONS AND EDUCATIONAL GROUPS; AFTERCARE PROGRAMS FOR PATIENTS WHO COMPLETED INPATIENT PROGRAMS; AND REFERRALS TO MORE INTENSIVE TREATMENTS AND OTHER COMMUNITY RESOURCES. THE CECIL COUNTY HEALTH DEPARTMENT ALSO OFFERED INFORMATION ON THE ALCOHOL AND OTHER DRUG ABUSE PREVENTION PROGRAM. THIS PROGRAM PROMOTES HEALTHY, DRUG-FREE LIFESTYLES AMONG YOUTHS AND THEIR FAMILIES THROUGH THE PROMOTION OF DRUG RESISTANCE PROTOCOL AND SELF MANAGEMENT SKILLS.
    PART VI, LINE 7: UNION HOSPITAL OF CECIL COUNTY, INC. IS PART OF AN AFFILIATED HEALTH CARE SYSTEM IN WHICH AFFINITY HEALTH ALLIANCE, INC. IS THE PARENT ENTITY. AFFINITY HEALTH ALLIANCE, INC.'S PURPOSE IS TO SUPPORT THE UNION HOSPITAL OF CECIL COUNTY IN PROVIDING HEALTH CARE AND HEALTH CARE RELATED SERVICES THROUGH THE EFFECTIVE MANAGEMENT OF ALL AFFILIATED CORPORATIONS. SPECIFICALLY, THIS INVOLVES COORDINATING SYSTEM WIDE POLICIES, FUNDRAISING AND STRATEGIC PLANNING PROGRAMS TO PROVIDE HEALTH CARE SERVICES IN RESPONSE TO THE MEDICAL, HUMAN AND RELATED SERVICE NEEDS OF THE COMMUNITY.OTHER TAX-EXEMPT ORGANIZATIONS IN THE GROUP INCLUDE THE UNION HOSPITAL OF CECIL COUNTY FOUNDATION, INC., CECIL COUNTY BREEDERS FAIR AND UNION HOSPITAL OF CECIL COUNTY HEALTH SERVICES, INC.THE FOUNDATION CONDUCTS AND SUPERVISES FUNDRAISING ACTIVITIES ON BEHALF OF ITS TAX-EXEMPT AFFILIATES. THE FOUNDATION ENGAGES IN CORPORATE FUNDRAISING, CAPITAL CAMPAIGNS, SPECIAL EVENTS, ACTIVITIES, AND A MULTI-FACETED COMMUNICATION PROGRAM THAT APPEALS TO PRIVATE AND CORPORATE CONTRIBUTORS.CECIL COUNTY BREEDERS FAIR, INC. IS ORGANIZED FOR THE PURPOSE OF SUPPORTING THE UNION HOSPITAL OF CECIL COUNTY THROUGH FUNDRAISING ACTIVITIES CONSISTING OF THE RUNNING OF THE FAIR HILL RACES.UNION HOSPITAL OF CECIL COUNTY HEALTH SERVICES, INC.'S MISSION IS TO OWN, MANAGE AND MAINTAIN PROPERTIES FOR HEALTH RELATED VENTURES TO SERVE CECIL COUNTY AND THE SURROUNDING AREAS. THE ACTIVITIES OF THIS CORPORATION COMPLEMENT AND AUGMENT THE HEALTH CARE ACTIVITIES OF THE HOSPITAL.
REPORTS FILED WITH STATES PART VI, LINE 7 MD
Schedule H (Form 990) 2010
Additional Data


Software ID:  
Software Version:  
Schedule I
(Form 990)
Department of the Treasury
Internal Revenue Service
Grants and Other Assistance to Organizations,
Governments and Individuals in the United States
Complete if the organization answered "Yes," to Form 990, Part IV, line 21 or 22.
lBullet Attach to Form 990
OMB No. 1545-0047
2010
Open to Public
Inspection
Name of the organization
UNION HOSPITAL OF CECIL COUNTY INC
 
Employer identification number
52-0607945
Part I
General Information on Grants and Assistance
1
Does the organization maintain records to substantiate the amount of the grants or assistance, the grantees' eligibility for the grants or assistance, and
the selection criteria used to award the grants or assistance? ....................................
2
Describe in Part IV the organization's procedures for monitoring the use of grant funds in the United States.
Part II
Grants and Other Assistance to Governments and Organizations in the United States. Complete if the organization answered "Yes" to
Form 990, Part IV, line 21 for any recipient that received more than $5,000. Check this box if no one recipient received more than $5,000. Use
Part IV and Schedule I-1 (Form 990) if additional space is needed ......................... lBullet
(a) Name and address of organization
or government		 (b) EIN (c) IRC Code section
if applicable		 (d) Amount of cash grant (e) Amount of non-cash
assistance		 (f) Method of valuation
(book, FMV, appraisal,
other)		 (g) Description of
non-cash assistance		 (h) Purpose of grant
or assistance
(1) UNION HOSPITAL OF CECIL COUNTY HEALTH SERVICES INC106 BOW STREET
ELKTON,MD21921 		52-1794553 501(C)(3) 2,384,875       CHARITABLE ACTIVITIES
(2) UNION HOSPITAL OF CECIL COUNTY VENTURES INC106 BOW STREET
ELKTON,MD21921 		52-1793691   1,704,472       CAPITAL CONTRIBUTION




















2
Enter total number of section 501(c)(3) and government organizations ......................... Bullet Image
1
3
Enter total number of other organizations ................................ . Bullet Image
1
For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50055P
Schedule I (Form 990) 2010

Schedule I (Form 990) 2010
Page 2
Part III
Grants and Other Assistance to Individuals in the United States. Complete if the organization answered "Yes" to Form 990, Part IV, line 22.
Use Schedule I-1 (Form 990) if additional space is needed.
(a)Type of grant or assistance (b)Number of
recipients		 (c)Amount of
cash grant		 (d)Amount of
non-cash assistance		 (e)Method of valuation (book,
FMV, appraisal, other)		 (f)Description of non-cash assistance













Part IV
Supplemental Information. Complete this part to provide the information required in Part I, line 2, and any other additional information.
Identifier Return Reference Explanation
PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: THE ORGANIZATION ONLY PROVIDES ASSISTANCE TO ITS AFFILIATED ENTITIES. IT DOES NOT PROVIDE GRANTS TO OTHER ORGANIZATIONS.
Schedule I (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
UNION HOSPITAL OF CECIL COUNTY INC
 
Employer identification number

52-0607945
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
 
No
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
Yes
 
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
Yes
 
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) KENNETH S LEWIS MD JD (i)
(ii)		 0
411,761 		0
76,262 		0
140,099 		0
93,675 		0
24,185 		0
745,982 		0
0
(2) LAURIE R BEYER CPA (i)
(ii)		 0
211,957 		0
28,035 		0
13,548 		0
3,083 		0
13,413 		0
270,036 		0
0
(3) JOSE MA (i)
(ii)		 0
247,578 		0
33,900 		0
23,754 		0
3,675 		0
14,138 		0
323,045 		0
0
(4) DAVID GIPSON (i)
(ii)		 0
212,938 		0
26,875 		0
20,558 		0
3,206 		0
13,509 		0
277,086 		0
0
(5) PETER GLOGGNER (i)
(ii)		 151,622
0 		20,158
0 		13,373
0 		0
0 		7,321
0 		192,474
0 		0
0
(6) MARY JANE KAMPS (i)
(ii)		 139,310
0 		20,580
0 		9,730
0 		0
0 		13,984
0 		183,604
0 		0
0
(7) NADER J DABABNEH MD (i)
(ii)		 477,854
0 		43,988
0 		1,399
0 		0
0 		19,697
0 		542,938
0 		0
0
(8) IRFAN M HISAMUDDIN MD (i)
(ii)		 350,873
0 		37,825
0 		199
0 		606
0 		18,728
0 		408,231
0 		0
0
(9) JOHN M HEBEKA MD (i)
(ii)		 309,497
0 		8,992
0 		332
0 		3,675
0 		18,299
0 		340,795
0 		0
0
(10) MICHAEL BRYWKA MD (i)
(ii)		 302,011
0 		9,170
0 		6,199
0 		3,675
0 		18,287
0 		339,342
0 		0
0
(11) ALFONSO J BASILE MD (i)
(ii)		 305,703
0 		9,400
0 		510
0 		3,248
0 		18,272
0 		337,133
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 THE ORGANIZATION'S PRESIDENT & CEO, DR. KENNETH LEWIS, HAS A DISCRETIONARY SPENDING ACCOUNT FOR FLEXIBLE BENEFITS WHICH INCLUDED: A) LEASED CAR PAYMENTS, GAS, REPAIRS AND INSURANCE B) TAX RETURN PREPARATION C) ATTORNEY REGISTRATION FEE D) SOCIAL CLUB DUES ALL BENEFITS HAVE BEEN INCLUDED IN TAXABLE WAGES.
  PART I, LINE 4B THE ORGANIZATION'S PRESIDENT & CEO, DR. KENNETH LEWIS, PARTICIPATES IN A SUPPLEMENTAL, NON-QUALIFIED RETIREMENT PLAN UNDER SECTION 457(F) OF THE INTERNAL REVENUE CODE. $90,000 HAS BEEN CONTRIBUTED TO THE PLAN EACH CALENDAR YEAR SINCE 2007 ($90,000 EACH ON 12/31/07, 12/31/08, 12/31/09 AND 12/31/10). THE RIGHT TO RECEIVE PAYMENTS UNDER THE PLAN SHALL BE FORFEITED IN THE EVENT THAT EMPLOYMENT WITH THE HOSPITAL TERMINATES PRIOR TO THE VESTING DATE FOR ANY REASON OTHER THAN INVOLUNTARY TERMINATION WITHOUT CAUSE, DEATH, OR DISABILITY. THE ENTIRE BALANCE OF THE ACCOUNT SHALL VEST AND BE PAID ON OR AFTER JANUARY 1, 2011.
  PART I, LINE 6 A PORTION OF THE BONUSES AND MERIT INCREASE ARE TIED TO EXPENSES PER EQUIVALENT INPATIENT DAY OF UNION HOSPITAL OF CECIL COUNTY.
  PART I, LINE 7 A PORTION OF THE BONUSES AND MERIT INCREASE ARE TIED TO THE ORGANIZATIONAL GOALS, SUCH AS PATIENT SATISFACTION, QUALITY, EMPLOYEE TURNOVER, ETC.
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
UNION HOSPITAL OF CECIL COUNTY INC
 
Employer identification number
52-0607945
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 COUNTY COMMISSIONERS OF CECIL COUNTY
  		52-6000919   12-01-2009 16,000,000 SEE PART V   X   X   X
B MARYLAND HEALTH & HIGHER EDUCATION FACILITIES AUTHORITY
  		52-0936091 5742168A8 07-14-2005 31,401,189 SEE PART V   X   X   X
Part II
Proceeds
A B C D
1 Amount of bonds retired. . . . .        
2 Amount of bonds defeased . . . .        
3 Total proceeds of issue . . . . 13,834,447 35,836,388    
4 Gross proceeds in reserve funds . . 927,659 927,659    
5 Capitalized interest from proceeds. 90,381 726,046    
6 Proceeds in refunding escrow. . . . .        
7 Issuance costs from proceeds . . . 140,715 576,473    
8 Credit enhancement from proceeds.        
9 Working capital expenditures from proceeds . .        
10 Capital expenditures from proceeds . . 13,672,373 33,640,038    
11 Other spent proceeds . .        
12 Other unspent proceeds. . . 2,165,553      
13 Year of substantial completion . . . 2010 2007
Yes No Yes No Yes No Yes No
14 Were the bonds issued as part of a current refunding issue? X     X        
15 Were the bonds issued as part of an advance refunding issue?   X   X        
16 Has the final allocation of proceeds been made? . .   X X          
17 Does the organization maintain adequate books and records to support the final allocation of proceeds? . 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        
2 Are there any lease arrangements that may result in private business use of bond-financed property? . . . . .   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          
b Are there any research agreements that may result in private business use of bond-financed property? . .   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          
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 0 % 0 %    
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 % 0 %    
6 Total of lines 4 and 5 . . .. . . . . . 0 % 0 %    
7 Has the organization adopted management practices and procedures to ensure the post-issuance compliance of its tax-exempt bond liabilities? 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        
2 Is the bond issue a variable rate issue? X     X        
3a Has the organization or the governmental issuer entered into a hedge with respect to the bond issue?   X X          
b Name of provider . BANK OF AMERICA
NA 		BANK OF AMERICA
NA 		 
  		 
 
c Term of hedge . . 35.000000000000 35.000000000000    
d Was the hedge superintegrated? .   X   X        
e Was a hedge terminated? .   X   X        
4a Were gross proceeds invested in a GIC? .   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        
6 Did the bond issue qualify for an exception to rebate? . . . 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, LINE (F) PURPOSE OF BOND ISSUE A: THE PURPOSE OF THE ISSUE WAS FINANCING AND REFINANCING THE ACQUISITION, CONSTRUCTION, RENOVATION AND EQUIPPING OF HOSPITAL FACILITIES. A PORTION OF THE ISSUE REFUNDED INTERIM TAXABLE INDEBTEDNESS THAT WAS INCURRED ON OCTOBER 2, 2009. ISSUE B: THE PURPOSE OF THE ISSUE WAS FINANCING AND REFINANCING THE ACQUISITION, CONSTRUCTION, RENOVATION AND EQUIPPING OF HOSPITAL FACILITIES.
PART II, LINE 3 DIFFERENCE IN PROCEEDS ISSUE A: THE DIFFERENCE IN PROCEEDS REPORTED ON PART II, LINE 3 AND PART I, COLUMN (E) FOR ISSUE A IS DUE TO $2,165,553 OF FUNDS NOT USED AND STILL AVAILABLE. THIS AMOUNT HAS NOT BEEN RECORDED ON THE BALANCE SHEET AS OF JUNE 30, 2011. ISSUE B: THIS NUMBER REPRESENTS SALE PROCEEDS PLUS INVESTMENT EARNINGS IN THE CONSTRUCTION FUND, PLUS INVESTMENT EARNINGS IN THE COST OF ISSUANCE FUND, PLUS INVESTMENT EARNINGS IN THE DEBT SERVICE RESERVE FUND DURING THE CONSTRUCTION PERIOD.
PART II, LINE 10 CAPITAL EXPENDITURES FROM PROCEEDS ISSUE B: THIS NUMBER REPRESENTS TOTAL PROCEEDS LESS PROCEEDS DEPOSITED INTO A RESERVE FUND LESS PROCEEDS SPENT ON ISSUANCE COSTS.
PART IV, LINES 3(B) AND 3(C) HEDGE ISSUE B: THE ORGANIZATION ENTERED INTO AN INTEREST RATE HEDGE WITH BANK OF AMERICA, N.A. ON MARCH 28, 2005. THE TERM OF THE HEDGE WAS FROM JUNE 22, 2005 THROUGH JULY 1, 2040. THE HEDGE WAS TERMINATED IN CONNECTION WITH THE ISSUANCE OF THE BONDS.
PART IV, LINE 5 TEMPORARY PERIOD ISSUE A: THE PROCEEDS USED TO REFUND THE TAXABLE DEBT WERE NOT INVESTED BEYOND THEIR TEMPORARY PERIOD. THE PROCEEDS USED FOR "NEW MONEY" EXPENDITURES PROJECTS ARE STILL SUBJECT TO THEIR TEMPORARY PERIOD.
PART IV, LINE 6 EXCEPTION TO REBATE ISSUE A: THE PORTION OF THE ISSUE USED TO REFUND THE TAXABLE DEBT QUALIFIED FOR AN EXCEPTION TO REBATE. THE REMAINDER OF THE ISSUE MAY QUALIFY FOR AN EXCEPTION TO REBATE BUT IT IS TOO EARLY TO MAKE THAT CONCLUSION.
Schedule K (Form 990) 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
UNION HOSPITAL OF CECIL COUNTY INC
 
Employer identification number

52-0607945
Identifier Return Reference Explanation
FORM 990, PART VI, SECTION A, LINE 6   AFFINITY HEALTH ALLIANCE, INC. ("AHA"), A TAX-EXEMPT ORGANIZATION, IS THE SOLE MEMBER OF THE UNION HOSPITAL OF CECIL COUNTY, INC.
FORM 990, PART VI, SECTION A, LINE 7A   THE BYLAWS OF THE HOSPITAL PROVIDE THAT ITS DIRECTORS ARE APPOINTED BY ITS SOLE MEMBER, AHA.
FORM 990, PART VI, SECTION A, LINE 7B   THE BYLAWS OF THE HOSPITAL PROVIDE THAT ITS SOLE MEMBER (AHA) MAY AMEND ITS BYLAWS.
FORM 990, PART VI, SECTION B, LINE 11   THE FINANCE COMMITTEE OF THE ORGANIZATION REVIEWS THE FORM 990 PRIOR TO FILING WITH THE INTERNAL REVENUE SERVICE.
  FORM 990, PART VI, SECTION B, LINE 12C BOARD MEMBERS ARE REQUIRED TO ANNUALLY DISCLOSE ANY POTENTIAL CONFLICT OF INTEREST. THE ORGANIZATION'S CEO REVIEWS THE SIGNED ANNUAL DISCLOSURES. THE CORPORATE COMPLIANCE OFFICER IS MADE AWARE OF ANY DISCLOSED CONFLICT, INVESTIGATES THE CONFLICT, AND REPORTS BACK TO THE BOARD OF DIRECTORS. THE BOARD CONSIDERS THE FACTS AND MAKES AN APPROPRIATE FINDING. ANY BOARD MEMBER WITH A CONFLICT MUST ABSTAIN FROM BOARD DELIBERATIONS AND VOTING ON THE MATTER. ALL VICE PRESIDENTS ANNUALLY RECEIVE A LIST OF THE INDIVIDUALS UNDER THEIR SUPERVISION WHO MAY HAVE A POTENTIAL CONFLICT OF INTEREST. THE LIST IS COMPRISED OF ALL MANAGERS, CERTAIN PROFESSIONAL STAFF WHO MAY HAVE RESPONSIBILITY NEGOTIATING WITH VENDORS, AND ANY OTHER PERSONS THAT HOSPITAL EXECUTIVES DEEM APPROPRIATE. EACH VICE PRESIDENT REVIEWS THE CONFLICT OF INTEREST POLICY WITH THEIR DESIGNATED EMPLOYEES, AND EACH EMPLOYEE IS REQUIRED TO SIGN A FORM STIPULATING WHETHER OR NOT THEY HAVE A CONFLICT. THE FORMS ARE REVIEWED BY THE VICE PRESIDENT OF HUMAN RESOURCES. IF A CONFLICT IS NOTED, IT IS BROUGHT TO THE ATTENTION OF THE APPROPRIATE VICE PRESIDENT AND THE CEO TO DETERMINE WHETHER OPERATIONAL CHANGES NEED TO OCCUR BECAUSE OF THE POTENTIAL CONFLICT.
  FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION COMMITTEE OF THE ORGANIZATION'S BOARD OF DIRECTORS IS RESPONSIBLE FOR SETTING THE OVERALL COMPENSATION PHILOSOPHY OF THE ORGANIZATION, AS WELL AS SETTING, MONITORING AND REVIEWING THE COMPENSATION PACKAGE OF THE ORGANIZATION'S CEO AND OTHER MEMBERS OF THE EXECUTIVE MANAGEMENT TEAM. THE COMMITTEE USES RELEVANT MARKET INFORMATION, INCLUDING THE USE OF AN INDEPENDENT COMPENSATION CONSULTANT AND COMPENSATION STUDIES OR SURVEYS, TO SET COMPENSATION. DURING THE FISCAL YEAR ENDED JUNE 30, 2011, AN INDEPENDENT COMPENSATION CONSULTANT PROVIDED THE FOLLOWING SERVICES: EXECUTIVE COMPENSATION AND PERFORMANCE EVALUATION.
  FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION WILL MAKE ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST.
AVERAGE HOURS PER WEEK FORM 990, PART VII, SECTION A, LINE 1A, COLUMN (B) AVERAGE HOURS PER WEEK LISTED IN PART VII ARE FOR THIS LEGAL ENTITY ONLY. BOARD MEMBERS, OFFICERS AND CERTAIN KEY EMPLOYEES ALSO DEVOTE TIME TO THE RELATED ORGANIZATIONS LISTED ON SCHEDULE R. TOTAL AVERAGE HOURS PER WEEK FOR THESE INDIVIDUALS FOR ALL RELATED ORGANIZATIONS ARE AS FOLLOWS: PRESIDENT/CEO KENNETH S. LEWIS - 40 HOURS SENIOR VP/CFO LAURIE R. BEYER - 40 HOURS SENIOR VP/COO DAVID GIPSON - 40 HOURS VP OF MEDICAL AFFAIRS JOSE MA - 40 HOURS BOARD MEMBERS - 1 HOUR
CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 5,471,400. CHANGE IN INTEREST IN NET ASSETS OF FOUNDATION & SUBSIDIARY -141,949. TOTAL TO FORM 990, PART XI, LINE 5: 5,329,451.
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
UNION HOSPITAL OF CECIL COUNTY INC
 
Employer identification number

52-0607945
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

















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) UNION HOSPITAL OF CECIL COUNTY FOUNDATION INC

106 BOW STREET

ELKTON,MD21921
52-1794552 		FUNDRAISING & SUPPORT MD 501(C)(3) LINE 11C, III-FI AFFINITY HEALTH ALLIANCE INC
 
 
No
(2) UNION HOSPITAL OF CECIL COUNTY HEALTH SERVICES INC

106 BOW STREET

ELKTON,MD21921
52-1794553 		HEALTHCARE PROPERTY MANAGEMENT MD 501(C)(3) LINE 9 AFFINITY HEALTH ALLIANCE INC
 
 
No
(3) CECIL COUNTY BREEDERS FAIR INC

106 BOW STREET

ELKTON,MD21921
51-6018180 		FUNDRAISING & SUPPORT MD 501(C)(4)   UNION HOSPITAL OF CECIL COUNTY FOUNDATION INC
 
 
No
(4) AFFINITY HEALTH ALLIANCE INC

106 BOW STREET

ELKTON,MD21921
52-1794697 		MANAGEMENT & SUPPORT MD 501(C)(3) LINE 11C, III-FI 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












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
(1) UNION HOSPITAL OF CECIL COUNTY VENTURES INC
106 BOW STREET
ELKTON,MD21921
52-1793691 		MEDICAL SERVICES MD N/A
 C      
(2) CECIL COUNTY ANESTHESIOLOGISTS INC
106 BOW STREET
ELKTON,MD21921
52-1886386 		INACTIVE MD N/A
 C      
(3) EMERGENCY MEDICAL SPECIALISTS OF CECIL COUNTY
106 BOW STREET
ELKTON,MD21921
52-1881684 		INACTIVE MD N/A
 C      








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
Yes
 
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
Yes
 
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
Yes
 
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
Yes
 
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)
(2)
(3)
(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


Software ID:  
Software Version: