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 10-01-2010 and ending 09-30-2011
BCheck if applicable:
CName of organization
FIRSTHEALTH OF THE CAROLINAS INC
 
Doing Business As
 
 
Number and street (or P.O. box if mail is not delivered to street address)
155 MEMORIAL DRIVE
 
Room/suite
City or town, state or country, and ZIP + 4
PINEHURST, NC28374
D Employer identification number

56-1936354
E Telephone number

G Gross receipts $ 494,731,389
F Name and address of principal officer:
CHARLES T FROCK
155 MEMORIAL DRIVE
PINEHURST,NC28374
I
Tax-exempt status: (   ) LeftBullet (insert no.) or
J
Website:MediumBullet
WWW.FIRSTHEALTH.ORG
H(a)
Is this a group return for
affiliates?
H(b)
Are all affiliates included?
If "No," attach a list. (see instructions)
H(c)
Group exemption number MediumBullet  
K Form of organization:
 
L Year of formation: 1995
M State of legal domicile: NC
Part I
Summary
Activities & Governance 1 Briefly describe the organization’s mission or most significant activities: TO SERVICE THE COMMUNITY'S TOTAL HEALTH CARE NEEDS.
2 Check this box MediumBullet
3 Number of voting members of the governing body (Part VI, line 1a) .... 3 20
4 Number of independent voting members of the governing body (Part VI, line 1b) .... 4 19
5 Total number of individuals employed in calendar year 2010 (Part V, line 2a) ... 5 4,538
6 Total number of volunteers (estimate if necessary) .... 6 883
7a Total unrelated business revenue from Part VIII, column (C), line 12 .. 7a 878,338
b Net unrelated business taxable income from Form 990-T, line 34 .. 7b -89,019
Revenues; Prior Year Current Year
8 Contributions and grants (Part VIII, line 1h) ......... 3,247,673 5,100,727
9 Program service revenue (Part VIII, line 2g) ......... 461,163,936 466,091,070
10 Investment income (Part VIII, column (A), lines 3, 4, and 7d ) .... -4,549,326 10,454,938
11 Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e) 6,641,791 11,307,103
12 Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)................... 466,504,074 492,953,838
Expenses; 13 Grants and similar amounts paid (Part IX, column (A), lines 1–3 )... 223,109 211,225
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) 201,947,848 213,539,178
16a Professional fundraising fees (Part IX, column (A), line 11e).... 0 0
b Total fundraising expenses (Part IX, column (D), line 25) MediumBullet70,997    
17 Other expenses (Part IX, column (A), lines 11a–11d, 11f–24f).... 248,212,943 248,760,158
18 Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25) 450,383,900 462,510,561
19 Revenue less expenses. Subtract line 18 from line 12...... 16,120,174 30,443,277
Net Assets or Fund Balances; Beginning of Current Year End of Year
20 Total assets (Part X, line 16)............ 808,656,420 807,891,417
21 Total liabilities (Part X, line 26)............ 358,418,002 336,984,262
22 Net assets or fund balances. Subtract line 21 from line 20 ..... 450,238,418 470,907,155
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: FIRSTHEALTH OF THE CAROLINAS, INC. (FIRSTHEALTH) IS A COMPREHENSIVE HEALTH CARE CENTER ORGANIZED AND OPERATED TO SERVICE THE COMMUNITY'S TOTAL HEALTH CARE NEEDS. FIRSTHEALTH PROVIDES NEEDED MEDICAL CARE TO THE COMMUNITY REGARDLESS OF A PERSON'S ABILITY TO PAY. A VARIETY OF HEALTH CARE SERVICES ARE OFFERED IN SUPPORT OF THE ORGANIZATION'S CHARITABLE MISSION AS A COMMUNITY-BASED HEALTH CARE SYSTEM.
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 $ 335,024,525 including grants of $ 211,225 ) (Revenue $ 465,251,616 )
SEE SCHEDULE O
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$ 335,024,525
Form 990 (2010)
Form 990 (2010)
Page 3
Part IV
Checklist of Required Schedules
Yes
No
1
Is the organization described in section 501(c)(3) or 4947(a)(1) (other than a private foundation)? If “Yes,” complete Schedule AClick to see attachment.....................
1
Yes
 
2
Is the organization required to complete Schedule B, Schedule of Contributors? Click to see attachment........
2
Yes
 
3
Did the organization engage in direct or indirect political campaign activities on behalf of or in opposition to candidates for public office? If “Yes,” complete Schedule C, Part IClick to see attachment..........
3
 
No
4
Section 501(c)(3) organizations. Did the organization engage in lobbying activities? If “Yes,” complete Schedule C,
Part IIClick to see attachment.........................
4
Yes
 
5
Is the organization a section 501(c)(4), 501(c)(5), or 501(c)(6) organization that receives membership dues, assessments, or similar amounts as defined in Revenue Procedure 98-19? If “Yes,” complete Schedule C, Part III........................
5
 
 
6
Did the organization maintain any donor advised funds or any similar funds or accounts where donors have the right to provide advice on the distribution or investment of amounts in such funds or accounts? If “Yes,” complete
Schedule D, Part IClick to see attachment.......................
6
 
No
7
Did the organization receive or hold a conservation easement, including easements to preserve open space,
the environment, historic land areas or historic structures? If “Yes,” complete Schedule D, Part IIClick to see attachment...
7
 
No
8
Did the organization maintain collections of works of art, historical treasures, or other similar assets? If “Yes,” complete Schedule D, Part III Click to see attachment....................
8
 
No
9
Did the organization report an amount in Part X, line 21; serve as a custodian for amounts not listed in Part X; or provide credit counseling, debt management, credit repair, or debt negotiation services? If “Yes,”
complete Schedule D, Part IVClick to see attachment...................
9
 
No
10
Did the organization, directly or through a related organization, hold assets in term, permanent,or quasi-endowments? If “Yes,” complete Schedule D, Part VClick to see attachment
10
 
No
11
If the organization’s answer to any of the following questions is ‘Yes,’ then complete Schedule D, Parts VI, VII, VIII, IX, or X as applicable:
a
Did the organization report an amount for land, buildings, and equipment in Part X, line10? If “Yes,” complete Schedule D, Part VI.Click to see attachment
11a
Yes
 
b
Did the organization report an amount for investments—other securities in Part X, line 12 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part VII.Click to see attachment
11b
 
No
c
Did the organization report an amount for investments—program related in Part X, line 13 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part VIII.Click to see attachment
11c
 
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
 
No
b
Was the organization included in consolidated, independent audited financial statements for the tax year? If “Yes,” and if the organization answered ‘No’ to line 12a, then completing Schedule D, Parts XI, XII, and XIII is optional Click to see attachment
12b
Yes
 
13
Is the organization a school described in section 170(b)(1)(A)(ii)? If “Yes,” complete Schedule E
13
 
No
14a
Did the organization maintain an office, employees, or agents outside of the United States?....
14a
 
No
b
Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, fundraising, business, and program service activities outside the United States? If “Yes,” complete Schedule F, Part I.........
14b
 
No
15
Did the organization report on Part IX, column (A), line 3, more than $5,000 of grants or assistance to any organization or entity located outside the U.S.? If “Yes,” complete Schedule F, Part II..
15
 
No
16
Did the organization report on Part IX, column (A), line 3, more than $5,000 of aggregate grants or assistance to individuals located outside the U.S.? If “Yes,” complete Schedule F, Part III..
16
 
No
17
Did the organization report a total of more than $15,000, of expenses for professional fundraising services on Part IX, column (A), lines 6 and 11e? If “Yes,” complete Schedule G, Part I
17
 
No
18
Did the organization report more than $15,000 total of fundraising event gross income and contributions on Part VIII, lines 1c and 8a? If “Yes,” complete Schedule G, Part II..........
18
 
No
19
Did the organization report more than $15,000 of gross income from gaming activities on Part VIII, line 9a? If “Yes,” complete Schedule G, Part III...................
19
 
No
Form 990 (2010)
Form 990 (2010)
Page 4
Part IV
Checklist of Required Schedules (continued)
20a
Did the organization operate one or more hospitals? If “Yes,” complete Schedule H..... Click to see attachment
20a
Yes
 
b
Did the organization attach its audited financial statement to this return? Note: All Form 990 filers that operate one or more hospitals must attach audited financial statements. ..... 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
Yes
 
23
Did the organization answer “Yes” to Part VII, Section A, questions 3, 4, or 5, about compensation of the organization’s current and former officers, directors, trustees, key employees, and highest compensated employees? If “Yes,” complete Schedule J................ Click to see attachment
23
Yes
 
24a
Did the organization have a tax-exempt bond issue with an outstanding principal amount of more than $100,000 as of the last day of the year, that was issued after December 31, 2002? If “Yes,” answer questions 24b–24d and complete Schedule K. If “No,” go to line 25................ Click to see list of attachments
24a
Yes
 
b
Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception?...
24b
 
No
c
Did the organization maintain an escrow account other than a refunding escrow at any time during the year
to defease any tax-exempt bonds?......................
24c
 
No
d
Did the organization act as an “on behalf of” issuer for bonds outstanding at any time during the year?...
24d
 
No
25a
Section 501(c)(3) and 501(c)(4) organizations. Did the organization engage in an excess benefit transaction with a disqualified person during the year? If “Yes,” complete Schedule L, Part I...... Click to see attachment
25a
 
No
b
Is the organization aware that it engaged in an excess benefit transaction with a disqualified person in a prior year, and that the transaction has not been reported on any of the organization’s prior Forms 990 or 990-EZ? If “Yes,” complete Schedule L, Part I................ Click to see attachment
25b
 
No
26
Was a loan to or by a current or former officer, director, trustee, key employee, highly compensated employee, or disqualified person outstanding as of the end of the organization’s tax year? If “Yes,” complete Schedule L,
Part II........................... Click to see attachment
26
Yes
 
27
Did the organization provide a grant or other assistance to an officer, director, trustee, key employee, substantial contributor, or a grant selection committee member, or to a person related to such an individual? If “Yes,” complete Schedule L, Part III............... Click to see attachment
27
 
No
28
Was the organization a party to a business transaction with one of the following parties? (see Schedule L, Part IV instructions for applicable filing thresholds, conditions, and exceptions):
a
A current or former officer, director, trustee, or key employee? If “Yes,” complete Schedule L, Part IV ......................... Click to see attachment
28a
 
No
b
A family member of a current or former officer, director, trustee, or key employee? If “Yes,”
complete Schedule L, Part IV................... Click to see attachment
28b
 
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.. Click to see attachment
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
Yes
 
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
Yes
 
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
736
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
4,538
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
20
b
Enter the number of voting members included in line 1a, above, who are independent .................
1b
19
2
Did any officer, director, trustee, or key employee have a family relationship or a business relationship with any other officer, director, trustee, or key employee? .................
2
 
No
3
Did the organization delegate control over management duties customarily performed by or under the direct supervision of officers, directors or trustees, or key employees to a management company or other person? ..
3
 
No
4
Did the organization make any significant changes to its governing documents since the prior Form 990 was filed?
4
 
No
5
Did the organization become aware during the year of a significant diversion of the organization’s assets? .
5
 
No
6
Does the organization have members or stockholders? ................
6
 
No
7a
Does the organization have members, stockholders, or other persons who may elect one or more members of the governing body? .........................
7a
 
No
b
Are any decisions of the governing body subject to approval by members, stockholders, or other persons? ..
7b
 
No
8
Did the organization contemporaneously document the meetings held or written actions undertaken during the year by the following:
a
The governing body? .........................
8a
Yes
 
b
Each committee with authority to act on behalf of the governing body? ............
8b
Yes
 
9
Is there any officer, director, trustee, or key employee listed in Part VII, Section A, who cannot be reached at the organization’s mailing address? If “Yes,” provide the names and addresses in Schedule O .....
9
 
No
Section B. Policies (This Section B requests information about policies not required by the Internal
Revenue Code.)
Yes
No
10a
Does the organization have local chapters, branches, or affiliates? ............
10a
 
No
b
If “Yes,” does the organization have written policies and procedures governing the activities of such chapters, affiliates, and branches to ensure their operations are consistent with those of the organization? ....
10b
 
 
11a
Has the organization provided a copy of this Form 990 to all members of its governing body before filing the form?
11a
Yes
 
b
Describe in Schedule O the process, if any, used by the organization to review the Form 990. .....
12a
Does the organization have a written conflict of interest policy? If “No,” go to line 13.......
12a
Yes
 
b
Are officers, directors or trustees, and key employees required to disclose annually interests that could give rise to conflicts? ...........................
12b
Yes
 
c
Does the organization regularly and consistently monitor and enforce compliance with the policy? If “Yes,” describe in Schedule O how this is done ....................
12c
Yes
 
13
Does the organization have a written whistleblower policy? ...............
13
Yes
 
14
Does the organization have a written document retention and destruction policy? .........
14
Yes
 
15
Did the process for determining compensation of the following persons include a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision?
a
The organization’s CEO, Executive Director, or top management official ...........
15a
Yes
 
b
Other officers or key employees of the organization ................
15b
Yes
 
If "Yes" to line a or b, describe the process in Schedule O. (See instructions.)
16a
Did the organization invest in, contribute assets to, or participate in a joint venture or similar arrangement with a taxable entity during the year? ......................
16a
Yes
 
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
Yes
 
Section C. Disclosure
17
List the States with which a copy of this Form 990 is required to be filedMediumBullet
NC
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
LYNN DEJACO CFO
155 MEMORIAL DRIVE
PINEHURST,NC28374
(910) 715-1568
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) ALEX BOWNESS
CHAIR
 2.00 X   X       0 0 0
(2) JULIAN KING
VICE CHAIR
 2.00 X   X       0 0 0
(3) JOHN MAY
SECRETARY
 2.00 X   X       0 0 0
(4) EDWARD BARNES
TREASURER
 2.00 X   X       0 0 0
(5) ROBERT BAHNER MD
BOARD MEMBER
 1.00 X           0 0 0
(6) DAVID BRUTON MD
BOARD MEMBER
 1.00 X           0 0 0
(7) JAMES BULTHUIS
BOARD MEMBER
 1.00 X           0 0 0
(8) DAVID COWHERD MD
BOARD MEMBER
 1.00 X           0 0 0
(9) JOHN ELLIS MD
BOARD MEMBER
 1.00 X           0 0 0
(10) WALTER FASOLAK MD
BOARD MEMBER
 1.00 X           0 0 0
(11) ANNA HOLLERS
BOARD MEMBER
 1.00 X           0 0 0
(12) KENNETH C MITCHELL MD
BOARD MEMBER
 1.00 X           0 0 0
(13) DR SUSAN PURSER
BOARD MEMBER
 1.00 X           0 0 0
(14) BRUCE SOLOMON DO
BOARD MEMBER
 1.00 X           0 0 0
(15) JOHN STEVENSON MD
BOARD MEMBER
 1.00 X           0 0 0
(16) WILLIAM STEWART MD
BOARD MEMBER
 1.00 X           0 0 0
(17) ROBERT TWEED
BOARD MEMBER
 1.00 X           0 0 0
Form 990 (2010)
Form 990 (2010)
Page 8
Part VII
Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (continued)
(A)
Name and Title 		(B)
Average hours per week (describe hours for related organizations in Schedule O) 		(C)
Position (check all that apply) 		(D)
Reportable compensation from the organization (W- 2/1099-MISC) 		(E)
Reportable compensation from related organizations (W- 2/1099-MISC) 		(F)
Estimated amount of other compensation from the organization and related organizations
Individual Trustee or Director; Institutional Trustee; Officer; Key Employee; Highest compensated employee; Former;
(18) DAVID WORONOFF
BOARD MEMBER
 1.00 X           0 0 0
(19) CHARLES T FROCK
CEO/BOARD MEMBER
 50.00 X   X       6,444,466 0 11,856
(20) DAVID BURNS
BOARD MEMBER
 1.00 X           0 0 0
(21) LYNN DEJACO
SENIOR VP/CFO
 50.00     X       485,472 0 23,977
(22) DANIEL BIEDIGER
VP HUMAN RESOURCES
 50.00     X       275,761 0 24,227
(23) GEORGE BUSSEY MD
SENIOR VP/CMO
 50.00     X       454,857 0 639
(24) JEFFREY CASEY
VP FINANCE
 50.00     X       318,226 0 22,498
(25) DAVID DILLEHUNT
VP/CIO
 50.00     X       321,028 0 18,408
(26) VIVIAN HARRINGTON
VP COMMUNITY SERVICES
 50.00     X       195,956 0 21,678
(27) KERRY HENSLEY
PRESIDENT MMH
 50.00     X       209,976 0 5,366
(28) JOHN JACKSON
PRESIDENT RMH
 50.00     X       313,709 0 22,353
(29) STUART VOELPEL
SR. VP/COO MRH
 50.00     X       495,456 0 5,687
(30) LINDA WALLACE
VP/CNO
 50.00     X       278,954 0 3,299
(31) CYNTHIA MCDONALD
VP QUALITY
 50.00     X       225,825 0 11,332
(32) JOHN KRAHNERT MD
CARDIAC SURGEON
 50.00         X   563,376 0 20,794
(33) ANDY KISER
CARDIAC SURGEON
 50.00         X   644,403 0 0
(34) DANIEL BARNES MD
HOSPITALIST
 50.00         X   355,660 0 20,794
(35) PETER ELLMAN MD
CARDIAC SURGEON
 50.00         X   415,839 0 17,194
(36) BOHDAN KOPYNEC MD
FAMILY PRACTICE
 50.00         X   332,821 0 22,123
(37) STEPHEN SZABO MD
EX-OFFICIO BOARD MEMBER
 1.00           X 0 0 0
(38) CAROLYN HELMS
EX-OFFICIO BOARD MEMBER
 1.00           X 0 0 0
(39) DAVID THORNTON MD
EX-OFFICIO BOARD MEMBER
 1.00           X 0 0 0
(40) ROBERT BOONE
VP OPERATIONS
 50.00           X 27,729 0 0
(41) JOHN STREITMAN MD
KEY EMPLOYEE
 50.00           X 297,183 0 0
1b Sub-Total................MediumBullet
c Total from continuation sheets to Part VII, Section A....MediumBullet
d Total (add lines 1b and 1c)............MediumBullet 12,628,968 0 252,225
2
Total number of individuals (including but not limited to those listed above) who received more than $100,000 in reportable compensation from the organizationMediumBullet202
Yes
No
3
Did the organization list any former officer, director or trustee, key employee, or highest compensated employee on line 1a? If “Yes,” complete Schedule J for such individual .............
3
Yes
 
4
For any individual listed on line 1a, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000? If “Yes,” complete Schedule J for such individual...........................
4
Yes
 
5
Did any person listed on line 1a receive or accrue compensation from any unrelated organization or individual for services rendered to the organization? If “Yes,” complete Schedule J for such person .....
5
 
No
Section B. Independent Contractors
1
Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from the organization.
(A)
Name and business address 		(B)
Description of services 		(C)
Compensation
GMK OF NORTH CAROLINA PC
4340 SWINNEA ROAD
MEMPHIS,TN38118 		ARCHITECT AND CONSTRUCTION MANAGEMENT SE 5,235,223
BRASFIELD AND GORRIE
3700 GLENWOOD AVE STE 300
RALIGH,NC27612 		CONSTRUCTION MANAGEMENT SERVICES 4,733,468
MCKESSON
5995 WINDWARD PARKWAY
ALPHARETTA,GA30005 		MAINTENANCE FEES, MEDICAL SUPPLIES 4,203,711
PINEHURST MEDICAL CLINIC
205 PAGE ROAD
PINEHURST,NC28374 		MEDICAL ONCOLOGY PHYSICIAN SERVICES 3,674,284
TEXICAN HORIZON ENERGY
PO BOX 2392
HOUSTON,TX77252 		NATURAL GAS SUPPLIER 1,026,826
2
Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 in compensation from the organization MediumBullet49
Form 990 (2010)
Form 990 (2010)
Page 9
Part VIII
Statement of Revenue
(A)
Total revenue 		(B)
Related or
exempt
function
revenue 		(C)
Unrelated
business
revenue 		(D)
Revenue
excluded from
tax under sections
512, 513, or 514
Contributions, gifts, grants and other similar amounts 1a Federated campaigns..1a  
b Membership dues....1b  
c Fundraising events....1c  
d Related organizations...1d 681,891
e Government grants (contributions)1e 2,199,669
f All other contributions, gifts, grants, and
similar amounts not included above1f 		2,219,167
g Noncash contributions included in lines 1a-1f:$  
h Total. Add lines 1a-1f.......MediumBullet 5,100,727
Program Service Revenue Business Code
2a NET PATIENT SERVICE RE 621,110 432,257,997 432,257,997    
b OTHER OPERATING REVENU 621,110 23,086,937 22,427,870 659,067  
c HEALTH AND FITNESS 713,940 5,496,861 5,133,446 363,415  
d EMS REVENUE 621,110 5,249,275 5,249,275    
e
f All other program service revenue .        
g Total. Add lines 2a–2f........MediumBullet 466,091,070
Other Revenue 3 Investment income (including dividends, interest
and other similar amounts).....MediumBullet 7,926,414     7,926,414
4 Income from investment of tax-exempt bond proceeds..MediumBullet 30,070     30,070
5 Royalties............MediumBullet        
(i) Real (ii) Personal
6a Gross Rents 2,191,277  
b Less: rental expenses 1,379,717  
c Rental income or (loss) 811,560  
d Net rental income or (loss).......MediumBullet 811,560   -153,269 964,829
(i) Securities (ii) Other
7a Gross amount from sales of assets other than inventory 2,259,486 238,968
b Less: cost or other basis and sales expenses    
c Gain or (loss) 2,259,486 238,968
d Net gain or (loss)..........MediumBullet 2,498,454     2,498,454
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 580,862
b Less: cost of goods sold ..b 397,834
c Net income or (loss) from sales of inventory..MediumBullet 183,028 183,028    
Miscellaneous Revenue Business Code
11a MISCELLANEOUS 621,110 7,615,193     7,615,193
b FOOD SERVICE 722,210 2,697,322   9,125 2,688,197
c            
d All other revenue ....        
e Total. Add lines 11a–11d ......MediumBullet 10,312,515
12 Total revenue. See Instructions....MediumBullet 492,953,838 465,251,616 878,338 21,723,157
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 21 183,225 183,225
2 Grants and other assistance to individuals in the U.S. See Part IV, line 22 28,000 28,000
3 Grants and other assistance to governments, organizations, and individuals outside the U.S. See Part IV, lines 15 and 16    
4 Benefits paid to or for members    
5 Compensation of current officers, directors, trustees, and key employees .... 10,218,831   10,218,831  
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 146,596,940 124,100,199 22,496,741  
8 Pension plan contributions (include section 401(k) and section 403(b) employer contributions) .... 43,282,526 34,252,742 9,029,784  
9 Other employee benefits .......        
10 Payroll taxes ........... 13,440,881 10,636,788 2,804,093  
11 Fees for services (non-employees):        
a Management ...... 361,758 361,758    
b Legal ......... 746,211   746,211  
c Accounting ........... 235,714 13,170 222,544  
d Lobbying ........... 39,287   39,287  
e Professional fundraising. See Part IV, line 17..    
f Investment management fees ...... 702,784   702,784  
g Other .......... 50,744,786 26,305,543 24,439,083 160
12 Advertising and promotion .... 1,923,446 505,279 1,418,167  
13 Office expenses ....... 96,926,964 89,921,094 7,005,870  
14 Information technology ...... 92,619 86,251 6,368  
15 Royalties ..        
16 Occupancy ........... 11,033,204 2,504,497 8,516,750 11,957
17 Travel ............ 1,779,999 1,335,520 444,479  
18 Payments of travel or entertainment expenses for any federal, state, or local public officials ......        
19 Conferences, conventions, and meetings .... 946,314 56,147 890,167  
20 Interest ........... 6,416,747   6,416,747  
21 Payments to affiliates .......        
22 Depreciation, depletion, and amortization ..... 29,498,748 2,126,028 27,319,679 53,041
23 Insurance .............. 4,589,782 204,967 4,384,815  
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 41,894,395 41,894,395    
b MISCELLANEOUS 827,400 508,922 312,639 5,839
c
d
e
f All other expenses        
25 Total functional expenses. Add lines 1 through 24f 462,510,561 335,024,525 127,415,039 70,997
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 .......... 29,555,070 1 22,227,988
2 Savings and temporary cash investments ....... 15,117,010 2 6,142,392
3 Pledges and grants receivable, net .........   3  
4 Accounts receivable, net ......... 61,312,708 4 60,107,457
5 Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
Schedule L .......... 41,603 5 32,907
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 .............   7  
8 Inventories for sale or use .............. 7,586,483 8 7,257,348
9 Prepaid expenses and deferred charges ............ 4,353,275 9 4,438,676
10a Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D 10a 683,699,022
b Less: accumulated depreciation. ..... 10b 371,351,221 284,286,815 10c 312,347,801
11 Investments—publicly traded securities .......... 360,915,301 11 361,522,582
12 Investments—other securities. See Part IV, line 11 ......   12  
13 Investments—program-related. See Part IV, line 11 .. 4,884,511 13 99,000
14 Intangible assets ......... 3,342,321 14 8,771,478
15 Other assets. See Part IV, line 11 ........... 37,261,323 15 24,943,788
16 Total assets. Add lines 1 through 15 (must equal line 34)... 808,656,420 16 807,891,417
Liabilities 17 Accounts payable and accrued expenses . 63,733,810 17 57,578,016
18 Grants payable ..........   18  
19 Deferred revenue .......... 276,998 19  
20 Tax-exempt bond liabilities .......... 244,008,041 20 239,730,453
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 .. 1,239,923 23 1,160,186
24 Unsecured notes and loans payable to unrelated third parties ....   24  
25 Other liabilities. Complete Part X of Schedule D..... 49,159,230 25 38,515,607
26 Total liabilities. Add lines 17 through 25..... 358,418,002 26 336,984,262
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 ..... 448,089,418 27 468,758,155
28 Temporarily restricted net assets ..... 2,149,000 28 2,149,000
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 ..... 450,238,418 33 470,907,155
34 Total liabilities and net assets/fund balances ..... 808,656,420 34 807,891,417
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
492,953,838
2
Total expenses (must equal Part IX, column (A), line 25) . . . . .
2
462,510,561
3
Revenue less expenses. Subtract line 2 from line 1 . . . .
3
30,443,277
4
Net assets or fund balances at beginning of year (must equal Part X, line 33, column (A)) . .
4
450,238,418
5
Other changes in net assets or fund balances (explain in Schedule O) . . . .
5
-9,774,540
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
470,907,155
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
FIRSTHEALTH OF THE CAROLINAS INC
 
Employer identification number

56-1936354
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
FIRSTHEALTH OF THE CAROLINAS INC
 
Employer identification number

56-1936354
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
FIRSTHEALTH OF THE CAROLINAS INC
  		Employer identification number

56-1936354
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
FIRSTHEALTH OF THE CAROLINAS INC
  		Employer identification number

56-1936354
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
FIRSTHEALTH OF THE CAROLINAS INC
  		Employer identification number

56-1936354
Part III
Exclusively religious, charitable, etc., individual contributions to section 501(c)(7), (8), or (10) organizations
aggregating more than $1,000 for the year. (Complete columns (a) through (e) and the following line entry.)
For organizations completing Part III, enter the total of exclusively religious, charitable, etc.,
contributions of $1,000 or less for the year. (Enter this information once. See instructions.) Arrow Bullet $  
(a) No.
from
Part I		 (b)
Purpose of gift		 (c)
Use of gift		 (d)
Description of how gift is held
 
(e)
Transfer of gift
Transferee's name, address, and ZIP 4 Relationship of transferor to transferee
 
 
       
 
(a) No.
from
Part I		 (b)
Purpose of gift		 (c)
Use of gift		 (d)
Description of how gift is held
 
(e)
Transfer of gift
Transferee's name, address, and ZIP 4 Relationship of transferor to transferee
 
 
       
 
(a) No.
from
Part I		 (b)
Purpose of gift		 (c)
Use of gift		 (d)
Description of how gift is held
 
(e)
Transfer of gift
Transferee's name, address, and ZIP 4 Relationship of transferor to transferee
 
 
       
 
(a) No.
from
Part I		 (b)
Purpose of gift		 (c)
Use of gift		 (d)
Description of how gift is held
 
(e)
Transfer of gift
Transferee's name, address, and ZIP 4 Relationship of transferor to transferee
 
 
       
 
Schedule B (Form 990, 990-EZ, or 990-PF) (2010)

Additional Data


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

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

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

56-1936354
Part I-A
Complete if the organization is exempt under section 501(c) or is a section 527 organization.

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

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

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

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










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

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

4-Year Averaging Period Under Section 501(h)
(Some organizations that made a section 501(h) election do not have to complete all of the five
columns below. See the instructions for lines 2a through 2f on page 4.)
Lobbying Expenditures During 4-Year Averaging Period
  Calendar year (or fiscal year
beginning in) 		(a) 2007 (b) 2008 (c) 2009 (d) 2010 (e) Total
             
2a Lobbying non-taxable amount 1,000,000 1,000,000 1,000,000 1,000,000 4,000,000
             
b Lobbying ceiling amount
(150% of line 2a, column(e)) 		        6,000,000
             
c Total lobbying expenditures 56,583 41,734 38,367 39,287 175,971
             
d Grassroots non-taxable amount 250,000 250,000 250,000 250,000 1,000,000
             
e Grassroots ceiling amount
(150% of line 2d, column (e))		         1,500,000
             
f Grassroots lobbying expenditures 42,583 10,500 70,000 67,100 190,183
Schedule C (Form 990 or 990-EZ) 2010


Schedule C (Form 990 or 990-EZ) 2010
Page 3
Part II-B
Complete if the organization is exempt under section 501(c)(3) and has NOT filed Form 5768 (election under section 501(h)).
(a)
Yes
No
(b)
Amount
1
During the year, did the filing organization attempt to influence foreign, national, state or local legislation, including any attempt to influence public opinion on a legislative matter or referendum, through the use of:
a
Volunteers? .........................................
 
 
b
Paid staff or management (include compensation in expenses reported on lines 1c through 1i)? ....
 
 
c
Media advertisements? ....................................
 
 
 
d
Mailings to members, legislators, or the public? .........................
 
 
 
e
Publications, or published or broadcast statements? .......................
 
 
 
f
Grants to other organizations for lobbying purposes? .......................
 
 
 
g
Direct contact with legislators, their staffs, government officials, or a legislative body? ........
 
 
 
h
Rallies, demonstrations, seminars, conventions, speeches, lectures, or any similar means? ......
 
 
 
i
Other activities? If "Yes," describe in Part IV ..........................
 
 
 
j
Total. lines 1c through 1i ...................................
 
2a
Did the activities in line 1 cause the organization to be not described in section 501(c)(3)? .....
 
 
b
If "Yes," enter the amount of any tax incurred under section 4912 .................
 
c
If "Yes," enter the amount of any tax incurred by organization managers under section 4912 .....
 
d
If the filing organization incurred a section 4912 tax, did it file Form 4720 for this year? .......
 
 
Part III-A
Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6).
Yes
No
1
Were substantially all (90% or more) dues received nondeductible by members? ................
1
 
 
2
Did the organization make only in-house lobbying expenditures of $2,000 or less? ................
2
 
 
3
Did the organization agree to carryover lobbying and political expenditures from the prior year? ..........
3
 
 
Part III-B
Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6) if BOTH Part III-A, lines 1 and 2 are answered “No” OR if Part III-A, line 3 is answered “Yes”.
1
Dues, assessments and similar amounts from members .....................
1
 
2
Section 162(e) non-deductible lobbying and political expenditures (do not include amounts of political
expenses for which the section 527(f) tax was paid).
a
Current year .........................................
2a
 
b
Carryover from last year ....................................
2b
 
c
Total ...........................................
2c
 
3
Aggregate amount reported in section 6033(e)(1)(A) notices of nondeductible section 162(e) dues .
3
 
4
If notices were sent and the amount on line 2c exceeds the amount on line 3, what portion of the excess does the organization agree to carryover to the reasonable estimate of nondeductible lobbying and political expenditure next year? ................................
4
 
5
Taxable amount of lobbying and political expenditures (see instructions) ..............
5
 
Part IV
Supplemental Information
Complete this part to provide the descriptions required for Part l-A, line 1; Part l-B, line 4; Part l-C, line 5; and Part ll-B, line 1i.
Also, complete this part for any additional information.
Identifier Return Reference Explanation
EXPLANATION OF OTHER LOBBYING ACTIVITIES: PART II-B, LINE 1I: LOBBYING EXPENSES - PORTION OF AHA (24.60) AND NCHA (23.46%) ASSOCIATION DUES ALLOCATED FOR LOBBYING PURPOSES. GRASSROOTS LOBBYING - FIRSTHEALTH OF THE CAROLINA, INC ("FIRSTHEATH") WORKS WITH THE NATIONAL AND STATE ASSOCIATION TO MAINTAIN AND STRENGTHEN RELATIONSHIPS WITH LEGISLATORS AND POLICYMAKERS AT THE NATIONAL, STATE, AND LOCAL LEVELS. THE OBJECTIVE IS TO ENSURE THAT FIRSTHEALTH'S EXPERIENCE AND EXPERTISE IS CONSISTENTLY AND CONTINUALLY HEARD SO THAT HEALTH LEGISLATION, REGULATION, AND POLICIES SUPPORT THE ORGANIZATION'S ABILITY TO FULFILL ITS MISSION - "TO CARE FOR PEOPLE."
Schedule C (Form 990 or 990EZ) 2010

Additional Data


Software ID:  
Software Version:  

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

56-1936354
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 .................   7,613,452 7,613,452
b Buildings ................   373,972,884 210,925,262 163,047,622
c Leasehold improvements ............   13,578,784 7,578,112 6,000,672
d Equipment ................   271,000,968 152,847,847 118,153,121
e Other .................   17,532,934   17,532,934
Total. Add lines 1a-1e. (Column (d) should equal Form 990, Part X, column (B), line 10(c).)........SchDMdBullet 312,347,801
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 PAYABLES 13,552,740
DUE TO AFFILIATES 4,131,276
PROFESSIONAL LIABILITY RESERVE 7,635,326
SWAP TRANSACTION 13,196,265





Total. (Column (b) should equal Form 990, Part X, col.(B) line 25.)Small Bullet 38,515,607
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) .................... 1 492,953,838
2 Total expenses (Form 990, Part IX, column (A), line 25) ..................... 2 462,510,561
3 Excess or (deficit) for the year. Subtract line 2 from line 1 ............. 3 30,443,277
4 Net unrealized gains (losses) on investments .......................... 4 -10,209,891
5 Donated services and use of facilities ............................. 5  
6 Investment expenses ................................... 6  
7 Prior period adjustments .................................. 7  
8 Other (Describe in Part XIV) ................................. 8 435,351
9 Total adjustments (net). Add lines 4 - 8 ............................. 9 -9,774,540
10 Excess or (deficit) for the year per financial statements. Combine lines 3 and 9 ......... 10 20,668,737
Part XII Reconciliation of Revenue per Audited Financial Statements With Revenue per Return
1 Total revenue, gains, and other support per audited financial statements ....... 1  
2 Amounts included on line 1 but not on Form 990, Part VIII, line 12:
a Net unrealized gains on investments .......... 2a  
b Donated services and use of facilities ......... 2b  
c Recoveries of prior year grants ........... 2c  
d Other (Describe in Part XIV): ............ 2d  
e Add lines 2a through 2d ..................... 2e  
3 Subtract line 2e from line 1..................... 3  
4 Amounts included on Form 990, Part VIII, line 12, but not on line 1:
a Investment expenses not included on Form 990, Part VIII, line 7b . 4a  
b Other (Describe in Part XIV): ........... 4b  
c Add lines 4a and 4b....................... 4c  
5 Total Revenue. Add lines 3 and 4c. (This should equal Form 990, Part I, line 12.) ...... 5  
Part XIII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return
1 Total expenses and losses per audited financial statements ............. 1  
2 Amounts included on line 1 but not on Form 990, Part IX, line 25:
a Donated services and use of facilities .......... 2a  
b Prior year adjustments .............. 2b  
c Other losses ................ 2c  
d Other (Describe in Part XIV): ............ 2d  
e Add lines 2a through 2d...................... 2e  
3 Subtract line 2e from line 1..................... 3  
4 Amounts included on Form 990, Part IX, line 25, but not on line 1:
a Investment expenses not included on Form 990, Part VIII, line 7b .. 4a  
b Other (Describe in Part XIV): ............ 4b  
c Add lines 4a and 4b....................... 4c  
5 Total expenses. Add lines 3 and 4c. (This should equal Form 990, Part I, line 18.) ...... 5  
Part XIV
Supplemental Information
Complete this part to provide the descriptions required for Part II, lines 3, 5, and 9; Part III, lines 1a and 4; Part lV, lines 1b and 2b;
Part V, line 4; Part X; Part XI, line 8; Part XII, lines 2d and 4b; and Part XIII, lines 2d and 4b. Also complete this part to provide any additional information.
Identifier Return Reference Explanation
DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: FIRSTHEALTH OF THE CAROLINA, INC. IS AN ORGANIZATION EXEMPT FROM FEDERAL INCOME TAX UNDER INTERNAL REVENUE CODE SECTION 501(A) AS ORGANIZATIONS DESCRIBED IN SECTION 501(C)(3). RELATED INCOME IS GENERALLY NOT SUBJECT TO FEDERAL OR STATE TAXES. FIRSTHEALTH ADOPTED THE INCOME TAX STANDARD REGARDING THE RECOGNITION AND MEASUREMENT OF UNCERTAIN TAX POSITIONS, WHICH CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN AN ORGANIZATION'S FINANCIAL STATEMENTS AND PRESCRIBES A RECOGNITION THRESHOLD AND MEASUREMENT PRINCIPLES FOR THE FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT OF TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN ON A TAX RETURN THAT ARE NOT CERTAIN TO BE REALIZED. THIS STANDARD HAS HAD NO SIGNIFICANT IMPACT ON THE CONSOLIDATED FINANCIAL STATEMENTS.
PART XI, LINE 8 - OTHER ADJUSTMENTS:   LOSS ON SWAP MARKET ADJUSTMENT 984,746. LOSS ON ADVANCED REFUDNING -549,395.
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
FIRSTHEALTH OF THE CAROLINAS INC
 
Employer identification number

56-1936354
Part I
Charity Care and Certain Other Community Benefits at Cost
Yes
No
1a
Does the organization have a charity care policy? If "No," skip to question 6a...........
1a
Yes
 
b
If "Yes," is it a written policy? .......................
1b
Yes
 
2
If the organization has multiple hospitals, indicate which of the following best describes application of the charity care policy to the various hospitals.
3
Answer the following based on the charity care eligibility criteria that applies to the largest number of the organization's patients.
a
Does the organization use Federal Poverty Guidelines (FPG) to determine eligibility for providing free care to low
income individuals? If "Yes," indicate which of the following is the FPG family income limit for eligibility for free care:
3a
Yes
 
b
Does the organization use FPG to determine eligibility for providing discounted care to low income individuals? If
"Yes," indicate which of the following is the family income limit for eligibility for discounted care: .....
3b
Yes
 
c
If the organization does not use FPG to determine eligibility, describe in Part VI the income based criteria for determining eligibility for free or discounted care. Include in the description whether the organization uses an asset test or other threshold, regardless of income, to determine eligibility for free or discounted care.
4
Does the organization's policy provide free or discounted care to the "medically indigent"? ......
4
Yes
 
5a
Does the organization budget amounts for free or discounted care provided under its charity care policy? ...
5a
Yes
 
b
If "Yes," did the organization's charity care expenses exceed the budgeted amount?.........
5b
Yes
 
c
If "Yes" to line 5b, as a result of budget considerations, was the organization unable to provide free or discounted
care to a patient who was eligibile for free or discounted care?...............
5c
 
No
6a
Does the organization prepare an annual community benefit report?.............
6a
Yes
 
6b
If "Yes," does the organization make it available to the public? ..............
6b
Yes
 
Complete the following table using the worksheets provided in the Schedule H instructions. Do not submit these worksheets with the Schedule H.
7
Charity Care and Certain Other Community Benefits at Cost
Charity Care and
Means-Tested Government Programs		 (a) Number of activities or programs (optional) (b) Persons served (optional) (c) Total community benefit expense (d) Direct offsetting revenue (e) Net community benefit expense (f) Percent of total expense
a Charity care at cost (from
Worksheets 1 and 2) .. 		    12,779,011 4,440,156 8,338,855 1.980 %
b Unreimbursed Medicaid (from
Worksheet 3, column a) . 		    13,210,966   13,210,966 3.140 %
c Unreimbursed costs—other means-tested government programs (from Worksheet 3, column b) ....            
dTotal Charity Care and
Means-Tested Government Programs ..... 		    25,989,977 4,440,156 21,549,821 5.120 %
Other Benefits
e Community health improvement
services and community
benefit operations (from
(Worksheet 4) .... 		    2,679,034   2,679,034 0.640 %
f Health professions education
(from Worksheet 5) .. 		           
g Subsidized health services
(from Worksheet 6) .. 		    855,304   855,304 0.200 %
h Research (from Worksheet 7)     253,777   253,777 0.060 %
i Cash and in-kind contributions
to community groups
(from Worksheet 8) .. 		    519,434   519,434 0.120 %
jTotal Other Benefits ...     4,307,549   4,307,549 1.020 %
kTotal. Add lines 7d and 7j. ..     30,297,526 4,440,156 25,857,370 6.140 %
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     209   209 0 %
2 Economic development            
3 Community support     9,591   9,591 0 %
4 Environmental improvements            
5 Leadership development and training for community members     834   834 0 %
6 Coalition building            
7 Community health improvement advocacy     2,055   2,055 0 %
8 Workforce development     59,109   59,109 0.010 %
9 Other            
10 Total     71,798   71,798 0.010 %
Part III
Bad Debt, Medicare, & Collection Practices
Section A. Bad Debt Expense
Yes
No
1
Does the organization report bad debt expense in accordance with Heathcare Financial Management Association Statement No. 15? ..........................
1
 
No
2
Enter the amount of the organization's bad debt expense (at cost).....
2
11,387,828
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
 
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
151,643,467
6
Enter Medicare allowable costs of care relating to payments on line 5.....
6
160,056,443
7
Subtract line 6 from line 5. This is the surplus or (shortfall)........
7
-8,412,976
8
Describe in Part VI the extent to which any shortfall reported in line 7 should be treated as community benefit.
Also describe in Part VI the costing methodology or source used to determine the amount reported on line 6.
Check the box that describes the method used:
Section C. Collection Practices
9a
Does the organization have a written debt collection policy? ...............
9a
Yes
 
b
If "Yes," does the organization's collection policy contain provisions on the collection practices to be followed for patients who are known to qualify for charity care or financial assistance? Describe in Part VI......
9b
Yes
 
Part IV
Management Companies and Joint Ventures
(a) Name of entity (b) Description of primary
activity of entity 		(c) Organization's
profit % or stock
ownership % 		(d) Officers, directors,
trustees, or key
employees' profit %
or stock ownership% 		(e) Physicians'
profit % or stock
ownership %
11 FIRST IMAGING OF THE CAROLINAS LLC
  		MOBILE IMAGING SERVICES 50.000 %   50.000 %
22 SURGERY CENTER OF PINEHURST LLC
  		AMBULATORY SURGERY CENTER 40.000 %   52.000 %
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?3
Name and address 		Licensed Hospital General-Medical-Surgical Children's Hospital Teaching Hospital Critical Hospital Research Facility ER-24Hours ER-Other Other (Describe)
1 FIRSTHEALTH MOORE REGIONAL HOSPITAL
155 MEMORIAL DRIVE PO BOX 3000
PINEHURST,NC28374 		X X         X    
2 FIRSTHEALTH MONTGOMERY MEMORIAL HOSPITAL
520 ALLEN STREET PO BOX 486
TROY,NC37371 		X X     X   X    
3 FIRSTHEALTH RICHMOND MEMORIAL HOSPITAL
925 LONG DRIVE
ROCKINGHAM,NC28379 		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 FOR 2010
Line Number of Hospital Facility (from Schedule H, Part V, Section A):1

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

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

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

Section C. Other Facilities That Are Not Licensed, Registered, or Similarly Recognized as a Hospital Facility
(list in order of size, measured by total revenue per facility, from largest to smallest)
How many non-hospital facilities did the organization operate during the tax year?  
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: THE ORGANIZATION USED WORKSHEET 2 OF THE 2010 SCHEDULE H INSTRUCTIONS TO COMPUTE A COST-TO-CHARGES RATIO USED TO CALCULATE CHARITY CARE AND UNREIMBURSED MEDICAID AT COST.
    PART I, L7 COL(F): TOTAL EXPENSES REPORTED ON FORM 990, PART IX, LINE 25 CONTAINS A BAD DEBT EXPENSE OF $41,894,395 THAT HAS BEEN REMOVED FOR PURPOSES OF COMPUTING PERCENTAGE OF TOTAL EXPENSE ON COLUMN (F).
    PART II: FIRSTHEALTH OF THE CAROLINAS WORKS WITH THE COMMUNITIES WE SERVE TO CREATE OPPORTUNITIES TO IMPROVE THE PHYSICAL ENVIRONMENT FOR BETTER HEALTH. FIRSTHEALTH PERSONNEL WORK IN COLLABORATION WITH VARIOUS COMMUNITY GROUPS AND CIVIC ORGANIZATIONS TO PROMOTE THE HEALTH AND WELLNESS OF OUR REGION AND THE LOCAL COMMUNITIES WE SERVE. FIRSTHEALTH ACCOMPLISHES THESE GOALS BY OBTAINING PUBLIC AND PRIVATE GRANTS TO INCREASE ACCESS TO WALKING TRAILS AND SIDEWALKS, BUILDING COMMUNITY GARDENS, PROMOTING HEALTH AND WELLNESS THROUGH LOCAL BUSINESSES, SCHOOLS, AND THE CHAMBER OF COMMERCE, AND FACILITATING OF AND PARTICIPATING ON COMMUNITY-BASED COMMITTEES CONSISTING OF KEY LEADERS IN THE HEALTH FIELD TO HELP CREATE A HEALTHIER COMMUNITY AND REGION.
    PART III, LINE 4: THE ORGANIZATION'S FINANCIAL STATEMENTS DO NOT INCLUDE FOOTNOTE ON BAD DEBT EXPENSE.WORKSHEET 2 OF THE 2010 SCHEDULE H INSTRUCTIONS WAS USED TO COMPUTE A COST-TO-CHARGES RATIO USED TO CALCULATE BAD DEBT EXPENSE AT COST FOR PURPOSES OF LINE PART III, LINE 2
    PART III, LINE 8: THE MEDICARE COST REPORT WAS USED TO CALCULATE THE OVERALL SHORTFALL. THE ORGANIZATION BELIEVES THE ENTIRE SHORTFALL SHOULD BE CONSIDERED COMMUNITY BENEFIT.
    PART VI, LINE 2: FIRSTHEALTH OF THE CAROLINAS CONDUCTS A PERIODIC COMMUNITY TELEPHONE SURVEY (EVERY 3 -4 YEARS) TO ASSESS THE HEALTH CONDITION OF THE POPULATION OF OUR PRIMARY SERVICE AREA (MOORE, MONTGOMERY, RICHMOND, AND HOKE COUNTIES) AS WELL AS SCOTLAND AND ROBESON COUNTIES, AND TRACKS THIS INFORMATION OVER TIME. THE FIRST SURVEY WAS CONDUCTED IN 1999. THE SURVEY AND ANALYSIS OF DATA IS CONDUCTED BY PRC ASSOCIATES. ADDITIONALLY, FIRSTHEALH OF THE CAROLINAS CONVENES 2010 VISION GROUPS THROUGHOUT OUR PRIMARY SERVICE AREA TO OBTAIN AN "ON THE GROUND PERSPECTIVE" OF THE POPULATION'S HEALTH STATUS AND DEVELOP ACTION PLAN TO ADDRESS IDENTIFIED HEALTH ISSUES. THE GROUPS CONSIST OF KEY COMMUNITY HEALTH LEADERS IN EACH COUNTY.
    PART VI, LINE 3: ANYONE WHO VISITS A FIRSTHEALTH HOSPITAL FOR MEDICAL CARE IS TREATED REGARDLESS OF HIS/HER ABILITY TO PAY. ALTHOUGH AN EFFORT IS MADE TO COLLECT A PORTION OF THE BILL ON ADMISSION OR AT DISCHARGE, THE FIRSTHEALTH STAFF IS TRAINED TO IDENTIFY THOSE WHO MAY NEED FINANCIAL ASSISTANCE. FOR SOME, THIS COULD SIMPLY INVOLVE ESTABLISHING A PAYMENT PLAN THAT FITS WITH THE FAMILY BUDGET. FOR OTHERS, THE HELP IS MORE COMPLEX. WHEN PATIENTS ARE UNABLE TO HELP WITH MEDICAL EXPENSES, FINANCIAL COUNSELORS MEET WITH THEM ONE ON ONE TO IDENTIFY ANY PROGRAM FOR WHICH THEY MIGHT QUALIFY. THESE INCLUDE MEDICAID, VOCATIONAL REHABILITATION AND NORTH CAROLINA PURCHASE OF CASE SERVICES. WHEN NECESSARY, THE HOSPITAL ITSELF ABSORBS SOME OR ALL OF THE COST OF CASE FOR THOSE THAT MEET DESIGNATED CRITERIA. THE AMOUNT OF ASSISTANCE DEPENDS ON FAMILY INCOME. PATIENTS AT OR BELOW 200% OF THE FEDERAL POVERTY GUIDELINES QUALIFY FOR 100% FINANCIAL ASSISTANCE FOR THE FIRSTHEALTH FINANCIAL ASSISTANCE PROGRAM. PATIENTS WHOSE INCOME EXCEEDS 200% MAY STILL QUALIFY FOR ASSISTANCE DEPENDING ON THEIR INDIVIDUAL FINANCIAL CIRCUMSTANCES. INFORMATION ABOUT FEDERAL, STATE, AND LOCAL PROGRAMS, AS WELL AS FIRSTHEALTH'S FINANCIAL AID PROGRAM IS OFFERED TO ALL PATIENTS IN THE FIRSTHEALTH OF THE CAROLINAS PATIENT HANDBOOK AND CAN BE FOUND ON OUR CORPORATE WEBSITE, WWW.FIRSTHEALTH.ORG.
    PART VI, LINE 4: FIRSTHEALTH OF THE CAROLINAS OWNS AND OPERATES A HEALTH CARE DELIVERY SYSTEM THAT PROVIDES HEALTH CARE SERVICES TO PATIENTS THROUGHOUT A 15-COUNTY SERVICE AREA IN SOUTH-CENTRAL NORTH CAROLINA AND NORTHWEST SOUTH CAROLINA. FIRSTHEALTH OF THE CAROLINAS OPERATES THREE ACUTE CARE HOSPITALS IN THIS SERVICE AREA. FIRSTHEALTH DRAWS APPROXIMATELY 67.0% OF ITS PATIENTS FROM MOORE, MONTGOMERY, AND RICHMOND COUNTIES, NORTH CAROLINA AND APPROXIMATELY 11.0% OF ITS PATIENTS FROM THE TWO SURROUNDING COUNTIES OF HOKE AND SCOTLAND. THESE FIVE COUNTIES COLLECTIVELY COMPRISE OF FIRSTHEALTH'S PRIMARY SERVICE AREA. FIRSTHEALTH'S PRIMARY SERVICE AREA REPRESENTS A POPULATION BASE OF APPROXIMATELY 247,168. THE POPULATION BASE OF FIRSTHEALTH'S TOTAL SERVICE AREA IS APPROXIMATELY 1,250,824.
    PART VI, LINE 6: FIRSTHEALTH OF THE CAROLINAS ALSO FURTHERS ITS EXEMPT PURPOSE BY PROMOTING THE HEALTH OF THE COMMUNITY BY EXTENDING MEDICAL STAFF PRIVILEGES TO QUALIFIED PHYSICIANS OF THE COMMUNITY. IN ADDITION, A MAJORITY OF FIRSTHEALTH'S GOVERNING BODY IS COMPRISED OF PERSONS WHO RESIDE IN FIRSTHEALTH'S PRIMARY SERVICE AREA WHO ARE INDEPENDENT MEMBERS OF THE COMMUNITY.
REPORTS FILED WITH STATES PART VI, LINE 7 NC
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
FIRSTHEALTH OF THE CAROLINAS INC
 
Employer identification number
56-1936354
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) COUNTY OF MOOREPO BOX 905
CARTHAGE,NC28374 		56-6000322 501(C)(3) 45,635   FMV   SUPPORT HEALTH & WELLNESS PROGRAMS
(2) SANDHILLS COMMUNITY COLLEGE FOUNDATION2200 AIRPORT ORAD
PINEHURST,NC28374 		56-0946799 501(C)(3) 50,000   FMV   SUPPORT HEALTH EDUCATION PROGRAMS
(3) MOORE COUNTY FREE CLINIC211 TRIMBLE PLANT RD
SOUTHERN PINES,NC28387 		01-0781234 501(C)(3) 45,000   FMV   GENERAL SUPPORT
(4) VILLAGE OF PINEHURST395 MAGNOLIA RD
PINEHURST,NC28374 		56-1211319 501(C)(3) 27,480   FMV   SUPPORT HEALTH & WELLNESS PROGRAMS
















2
Enter total number of section 501(c)(3) and government organizations ......................... Bullet Image
4
3
Enter total number of other organizations ................................ . Bullet Image
 
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
(1) SCHOLARSHIP PAYMENTS TO HEALTH CHOICE ELIGABLE CHILDREN FOR PROGRAM ENROLLMENT FEES 618 28,000   FMV  













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: FIRSTHEALTH OF THE CAROLINAS, INC..("FIRSTHEALTH") SUPPORTS VARIOUS COMMUNITY-BASED TAX-EXEMPT ORGANIZATIONS AND LOCAL GOVERNMENTAL UNITS THROUGH CASH DONATIONS. FIRSTHEALTH DOES NOT RESTRICT THE USE OF THESE DONATIONS AND SUPPORT PAYMENTS. THE RECEIVING EXEMPT ORGANIZATIONS OR GOVERNMENTAL UNITS MAY USE THE DONATION/SUPPORT PAYMENT AT WILL TO FURTHER THEIR EXEMPT PURPOSES.
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
FIRSTHEALTH OF THE CAROLINAS INC
 
Employer identification number

56-1936354
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
 
 
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
Yes
 
b
Any related organization? .........................
5b
 
No
If "Yes," to line 5a or 5b, describe in Part III.
6
For persons listed in form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the net earnings of:
a
The organization? ...........................
6a
 
No
b
Any related organization? .........................
6b
 
No
If "Yes," to line 6a or 6b, describe in Part III.
7
For persons listed in Form 990, Part VII, Section A, line 1a, did the organization provide any non-fixed
payments not described in lines 5 and 6? If "Yes," describe in Part III ............
7
 
No
8
Were any amounts reported in Form 990, Part VII, paid or accured pursuant to a contract that was
subject to the initial contract exception described in Regs. section 53.4958-4(a)(3)? If "Yes," describe
in Part III .............................
8
 
No
9
If "Yes" to line 8, did the organization also follow the rebuttable presumption procedure described in Regulations section 53.4958-6(c)? .........................
9
 
 
For Privacy Act and Paperwork Reduction Act Notice, see the Intructions for Form 990
Cat. No. 50053T
Schedule J (Form 990) 2010

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

Note. The sum of columns (B)(i)-(iii) must equal the applicable column (D) or column (E) amounts on Form 990, Part VII, line 1a.
(A) Name (B) Breakdown of W-2 and/or 1099-MISC compensation (C) Retirement and other deferred compensation (D) Nontaxable
benefits		 (E) Total of columns
(B)(i)-(D) 		(F) Compensation
reported in prior
Form 990 or
Form 990-EZ
(i) Base compensation (ii) Bonus & incentive compensation (iii) Other reportable compensation
(1) CHARLES T FROCK (i)
(ii)		 471,266
0 		343,672
0 		5,629,528
0 		0
0 		11,856
0 		6,456,322
0 		5,389,394
0
(2) LYNN DEJACO (i)
(ii)		 347,201
0 		82,864
0 		55,407
0 		12,740
0 		11,237
0 		509,449
0 		0
0
(3) DANIEL BIEDIGER (i)
(ii)		 188,596
0 		50,208
0 		36,957
0 		13,720
0 		10,507
0 		299,988
0 		0
0
(4) GEORGE BUSSEY MD (i)
(ii)		 347,849
0 		86,589
0 		20,419
0 		0
0 		639
0 		455,496
0 		0
0
(5) JEFFREY CASEY (i)
(ii)		 224,080
0 		58,136
0 		36,010
0 		11,760
0 		10,738
0 		340,724
0 		0
0
(6) DAVID DILLEHUNT (i)
(ii)		 228,103
0 		57,980
0 		34,945
0 		11,760
0 		6,648
0 		339,436
0 		0
0
(7) VIVIAN HARRINGTON (i)
(ii)		 145,714
0 		35,397
0 		14,845
0 		11,495
0 		10,183
0 		217,634
0 		0
0
(8) KERRY HENSLEY (i)
(ii)		 145,399
0 		38,276
0 		26,301
0 		0
0 		5,366
0 		215,342
0 		0
0
(9) JOHN JACKSON (i)
(ii)		 208,634
0 		96,244
0 		8,831
0 		11,760
0 		10,593
0 		336,062
0 		0
0
(10) STUART VOELPEL (i)
(ii)		 340,833
0 		87,958
0 		66,665
0 		0
0 		5,687
0 		501,143
0 		0
0
(11) LINDA WALLACE (i)
(ii)		 214,530
0 		50,936
0 		13,488
0 		0
0 		3,299
0 		282,253
0 		0
0
(12) CYNTHIA MCDONALD (i)
(ii)		 170,502
0 		40,876
0 		14,447
0 		10,528
0 		804
0 		237,157
0 		0
0
(13) JOHN KRAHNERT MD (i)
(ii)		 482,941
0 		61,919
0 		18,516
0 		9,800
0 		10,994
0 		584,170
0 		0
0
(14) ANDY KISER (i)
(ii)		 529,113
0 		100,297
0 		14,993
0 		0
0 		0
0 		644,403
0 		0
0
(15) DANIEL BARNES MD (i)
(ii)		 217,791
0 		130,016
0 		7,853
0 		9,800
0 		10,994
0 		376,454
0 		0
0
(16) PETER ELLMAN MD (i)
(ii)		 380,945
0 		34,497
0 		397
0 		6,200
0 		10,994
0 		433,033
0 		0
0
(17) BOHDAN KOPYNEC MD (i)
(ii)		 214,050
0 		117,718
0 		1,053
0 		11,760
0 		10,363
0 		354,944
0 		0
0
(18) JOHN STREITMAN MD (i)
(ii)		 240,249
0 		50,298
0 		6,636
0 		0
0 		0
0 		297,183
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 4B THE ORGANIZATION'S CEO PARTICIPATED IN A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN. THE AMOUNT OF THE PAYOUT WAS $5.55 MILLION TO THE CORPORATE CEO UNDER THE BOARD-APPROVED CEO SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP) ESTABLISHED IN 1998. OF THIS TOTAL, $5.389 MILLION HAD BEEN REPORTED IN THE ANNUAL EXECUTIVE COMPENSATION IN THE PRIOR TAX YEARS THAT THE ACTUARIALLY-CALCULATED FUNDING LIABILITY WAS DETERMINED. $167,250 OF THE PAYOUT WAS BOOKED BY FIRSTHEALTH DURING FISCAL 2011 AND IS REPORTED ON THIS TAX RETURN.
  PART I, LINE 5 PHYSICIANS ARE PAID UNDER A PRODUCTIVITY-BASED COMPENSATION MODEL, WHICH TIES TOTAL COMPENSATION TO A RELATIVE VALUE UNIT (RVU). AN RVU IS A DOLLAR AMOUNT ASSIGNED TO EACH PATIENT ENCOUNTER OR MEDICAL TEST/PROCEDURE PERFORMED.
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
FIRSTHEALTH OF THE CAROLINAS INC
 
Employer identification number
56-1936354
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 NORTH CAROLINA MEDICAL CARE COMMISSION
  		52-1309402   01-06-2010 29,535,000 SERIES 2010 - REFUND ISSUE DATED 12/9/08   X   X   X
B NORTH CAROLINA MEDICAL CARE COMMISSION
  		52-1309402   12-09-2009 40,830,000 SERIES 2009D - REFUND ISSUE DATED 4/15/109; NEW HEART INSTITUTE   X   X   X
C NORTH CAROLINA MEDICAL CARE COMMISSION
  		52-1309402 65821DDT5 12-09-2009 54,734,475 SERIES 2009C - REFUND ISSUES DATED 4/15/19, 12/9/08, 5/1/02   X   X   X
D NORTH CAROLINA MEDICAL CARE COMMISSION
  		52-1309402 65821DCT6 04-15-2009 45,505,000 SERIES 2009A - CONSTRUCTION OF NEW HEART INSTITUTE   X   X   X
NORTH CAROLINA MEDICAL CARE COMMISSION
  		52-1309402 65821DBZ3 12-09-2008 106,845,000 SERIES 2008A & 2008B - REFUND ISSUES DATED 4/9/03 AND 2/20/98   X   X   X
Part II
Proceeds
A B C D
1 Amount of bonds retired. . . . . 3,270,000   3,270,000  
2 Amount of bonds defeased . . . .        
3 Total proceeds of issue . . . . 29,535,000 40,938,198 54,747,321 45,726,447
4 Gross proceeds in reserve funds . .        
5 Capitalized interest from proceeds.        
6 Proceeds in refunding escrow. . . . .        
7 Issuance costs from proceeds . . . 135,000 190,000 784,475 910,100
8 Credit enhancement from proceeds.        
9 Working capital expenditures from proceeds . .        
10 Capital expenditures from proceeds . . 25,244,123 25,244,123 3,021,876 32,271,489
11 Other spent proceeds . .        
12 Other unspent proceeds. . . 8,401,072 8,401,072 1,018,286 8,726,052
13 Year of substantial completion . . .
Yes No Yes No Yes No Yes No
14 Were the bonds issued as part of a current refunding issue? X   X       X  
15 Were the bonds issued as part of an advance refunding issue?   X   X   X   X
16 Has the final allocation of proceeds been made? . . X     X   X   X
17 Does the organization maintain adequate books and records to support the final allocation of proceeds? . X   X   X   X  
Part III
Private Business Use
A B C D
Yes No Yes No Yes No Yes No
1 Was the organization a partner in a partnership, or a member of an LLC, which owned property financed by tax-exempt bonds? . . .   X   X   X   X
2 Are there any lease arrangements that may result in private business use of bond-financed property? . . . . . X     X X     X
For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50193E
Schedule K (Form 990) 2010
Schedule K (Form 990) 2010
Page 2
Part III
Private Business Use (Continued)
A B C D
Yes No Yes No Yes No Yes No
3a Are there any management or service contracts that may result in private business use? X     X X     X
b Are there any research agreements that may result in private business use of bond-financed property? . .   X   X   X   X
c Does the organization routinely engage bond counsel or other outside counsel to review any management or service contracts or research agreements relating to the financed property? . X   X   X   X  
4 Enter the percentage of financed property used in a private business use by entities other than a section 501(c)(3) organization or a state or local government . . . . . . . . . . . . . SchKMediumBullet 1.800 %   10.000 %  
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 0.100 %   0.100 %  
6 Total of lines 4 and 5 . . .. . . . . . 1.900 %   10.100 %  
7 Has the organization adopted management practices and procedures to ensure the post-issuance compliance of its tax-exempt bond liabilities? X   X   X   X  
Part IV
Arbitrage
A B C D
Yes No Yes No Yes No Yes No
1 Has a Form 8038-T, Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate, been filed with respect to the bond issue? . . .   X   X   X   X
2 Is the bond issue a variable rate issue? X   X     X   X
3a Has the organization or the governmental issuer entered into a hedge with respect to the bond issue? X     X   X   X
b Name of provider . CITIGROUP FINANCIAL
  		 
  		 
  		 
 
c Term of hedge . . 18.000000000000      
d Was the hedge superintegrated? .   X            
e Was a hedge terminated? .   X            
4a Were gross proceeds invested in a GIC? .   X   X   X   X
b Name of provider .  
  		 
  		 
  		 
 
c Term of GIC . .        
d Was the regulatory safe harbor for establishing the fair market value of the GIC satisfied? .                
5 Were any gross proceeds invested beyond an available temporary period? .   X   X   X   X
6 Did the bond issue qualify for an exception to rebate? . . .   X   X   X   X
Schedule K (Form 990) 2010

Schedule K (Form 990) 2010
Page 3
Part V
Supplemental Information
Complete this part to provide additional information for responses to questions on Schedule K (see instructions).
Identifier Return Reference Explanation
SCHEDULE K SUPPLENTAL INFORMATION   PART I, BOND B, COLUMN F: REISSUANCE OF 29,400,000 OF BOND PROCEEDS ORIGINALLY ISSUED ON 2/27/2002; AND ISSUANCE OF 20,600,000 OF NEW MONEY FOR VARIOUS CAPITAL PROJECTS, PART II, LINE 14, COLUMN B: THE REISSUANCE OF THE 2/27/2002 ISSUE WAS DEEMED A CURRENT REFUNDING FOR TAX PURPOSES. PART II, LINE 1, COLUMN A: 28,900,000 OF THE 2008 B ORIGINAL PRINCIPAL AMOUNT WAS REFUNDED BY ISSUE DATED 12/9/2009; THIS REPRESENTED THE ENTIRE OUTSTANDING AMOUNT OF THE 2008 B AS OF THE DATE OF REFUNDING; 29,400,000 OF THE 2008A ORIGINAL PRINCIPAL AMOUNT WAS REFUNDED BY ISSUE DATED 1/6/2010. ONLY THE A PORTION OF THE ISSUE REMAINS OUTSTANDING AS OF 9/30/2011.
Schedule K (Form 990) 2010

Additional Data


Software ID:  
Software Version:  

Schedule K
(Form 990)
Department of the Treasury
Internal Revenue Service
Supplemental Information on Tax Exempt Bonds
SchKMediumBullet Complete if the organization answered "Yes" to Form 990, Part IV, line 24a. Provide descriptions,
explanations, and any additional information in Schedule O (Form 990).
SchKMediumBullet Attach to Form 990. SchKMediumBullet See separate instructions.
OMB No. 1545-0047
2010
Open to Public
Inspection
Name of the organization
FIRSTHEALTH OF THE CAROLINAS INC
 
Employer identification number
56-1936354
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 NORTH CAROLINA MEDICAL CARE COMMISSION
  		52-1309402   01-06-2010 29,535,000 SERIES 2010 - REFUND ISSUE DATED 12/9/08   X   X   X
B NORTH CAROLINA MEDICAL CARE COMMISSION
  		52-1309402   12-09-2009 40,830,000 SERIES 2009D - REFUND ISSUE DATED 4/15/109; NEW HEART INSTITUTE   X   X   X
C NORTH CAROLINA MEDICAL CARE COMMISSION
  		52-1309402 65821DDT5 12-09-2009 54,734,475 SERIES 2009C - REFUND ISSUES DATED 4/15/19, 12/9/08, 5/1/02   X   X   X
D NORTH CAROLINA MEDICAL CARE COMMISSION
  		52-1309402 65821DCT6 04-15-2009 45,505,000 SERIES 2009A - CONSTRUCTION OF NEW HEART INSTITUTE   X   X   X
NORTH CAROLINA MEDICAL CARE COMMISSION
  		52-1309402 65821DBZ3 12-09-2008 106,845,000 SERIES 2008A & 2008B - REFUND ISSUES DATED 4/9/03 AND 2/20/98   X   X   X
Part II
Proceeds
A B C D
1 Amount of bonds retired. . . . . 3,270,000   3,270,000  
2 Amount of bonds defeased . . . .        
3 Total proceeds of issue . . . . 29,535,000 40,938,198 54,747,321 45,726,447
4 Gross proceeds in reserve funds . .        
5 Capitalized interest from proceeds.        
6 Proceeds in refunding escrow. . . . .        
7 Issuance costs from proceeds . . . 135,000 190,000 784,475 910,100
8 Credit enhancement from proceeds.        
9 Working capital expenditures from proceeds . .        
10 Capital expenditures from proceeds . . 25,244,123 25,244,123 3,021,876 32,271,489
11 Other spent proceeds . .        
12 Other unspent proceeds. . . 8,401,072 8,401,072 1,018,286 8,726,052
13 Year of substantial completion . . .
Yes No Yes No Yes No Yes No
14 Were the bonds issued as part of a current refunding issue? X   X       X  
15 Were the bonds issued as part of an advance refunding issue?   X   X   X   X
16 Has the final allocation of proceeds been made? . . X     X   X   X
17 Does the organization maintain adequate books and records to support the final allocation of proceeds? . X   X   X   X  
Part III
Private Business Use
A B C D
Yes No Yes No Yes No Yes No
1 Was the organization a partner in a partnership, or a member of an LLC, which owned property financed by tax-exempt bonds? . . .   X   X   X   X
2 Are there any lease arrangements that may result in private business use of bond-financed property? . . . . . X     X X     X
For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50193E
Schedule K (Form 990) 2010
Schedule K (Form 990) 2010
Page 2
Part III
Private Business Use (Continued)
A B C D
Yes No Yes No Yes No Yes No
3a Are there any management or service contracts that may result in private business use? X     X X     X
b Are there any research agreements that may result in private business use of bond-financed property? . .   X   X   X   X
c Does the organization routinely engage bond counsel or other outside counsel to review any management or service contracts or research agreements relating to the financed property? . X   X   X   X  
4 Enter the percentage of financed property used in a private business use by entities other than a section 501(c)(3) organization or a state or local government . . . . . . . . . . . . . SchKMediumBullet 1.800 %   10.000 %  
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 0.100 %   0.100 %  
6 Total of lines 4 and 5 . . .. . . . . . 1.900 %   10.100 %  
7 Has the organization adopted management practices and procedures to ensure the post-issuance compliance of its tax-exempt bond liabilities? X   X   X   X  
Part IV
Arbitrage
A B C D
Yes No Yes No Yes No Yes No
1 Has a Form 8038-T, Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate, been filed with respect to the bond issue? . . .   X   X   X   X
2 Is the bond issue a variable rate issue? X   X     X   X
3a Has the organization or the governmental issuer entered into a hedge with respect to the bond issue? X     X   X   X
b Name of provider . CITIGROUP FINANCIAL
  		 
  		 
  		 
 
c Term of hedge . . 18.000000000000      
d Was the hedge superintegrated? .   X            
e Was a hedge terminated? .   X            
4a Were gross proceeds invested in a GIC? .   X   X   X   X
b Name of provider .  
  		 
  		 
  		 
 
c Term of GIC . .        
d Was the regulatory safe harbor for establishing the fair market value of the GIC satisfied? .                
5 Were any gross proceeds invested beyond an available temporary period? .   X   X   X   X
6 Did the bond issue qualify for an exception to rebate? . . .   X   X   X   X
Schedule K (Form 990) 2010

Schedule K (Form 990) 2010
Page 3
Part V
Supplemental Information
Complete this part to provide additional information for responses to questions on Schedule K (see instructions).
Identifier Return Reference Explanation
SCHEDULE K SUPPLENTAL INFORMATION   PART I, BOND B, COLUMN F: REISSUANCE OF 29,400,000 OF BOND PROCEEDS ORIGINALLY ISSUED ON 2/27/2002; AND ISSUANCE OF 20,600,000 OF NEW MONEY FOR VARIOUS CAPITAL PROJECTS, PART II, LINE 14, COLUMN B: THE REISSUANCE OF THE 2/27/2002 ISSUE WAS DEEMED A CURRENT REFUNDING FOR TAX PURPOSES. PART II, LINE 1, COLUMN A: 28,900,000 OF THE 2008 B ORIGINAL PRINCIPAL AMOUNT WAS REFUNDED BY ISSUE DATED 12/9/2009; THIS REPRESENTED THE ENTIRE OUTSTANDING AMOUNT OF THE 2008 B AS OF THE DATE OF REFUNDING; 29,400,000 OF THE 2008A ORIGINAL PRINCIPAL AMOUNT WAS REFUNDED BY ISSUE DATED 1/6/2010. ONLY THE A PORTION OF THE ISSUE REMAINS OUTSTANDING AS OF 9/30/2011.
Schedule K (Form 990) 2010

Additional Data


Software ID:  
Software Version:  

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

56-1936354
Part I
Excess Benefit Transactions (section 501(c)(3) and section 501 (c)(4) organizations only).
Complete if the organization answered "Yes" on Form 990, Part IV, line 25a or 25b, or Form 990-EZ, Part V, line 40b.
1(a) Name of disqualified person (b) Description of transaction (c) Corrected?
Yes No





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

Part II
Loans to and/or From Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 26, or Form 990-EZ, Part V, line 38a.
(a) Name of interested person and purpose (b) Loan to or from the organization? (c)Original principal amount (d)Balance due (e) In default? (f) Approved by board or committee? (g)Written agreement?
To From Yes No Yes No Yes No
(1) JOHN STREITMAN MD
ADVANCE 		  X 103,580 32,907   No   No Yes  
Total ...............Small Bullet $ 32,907
Part III
Grants or Assistance Benefitting Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 27.
(a) Name of interested person (b)Relationship between interested person and the organization (c)Amount of grant or type of assistance
For Privacy Act and Paperwork Reduction Act Notice, see the
Instructions for Form 990 or 990-EZ.
Cat. No. 50056A
Schedule L (Form 990 or 990-EZ) 2010
Schedule L (Form 990 or 990-EZ) 2010
Page 2
Part IV
Business Transactions Involving Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 28a, 28b, or 28c.
(a) Name of interested person (b) Relationship between interested person and the organization (c) Amount of transaction (d) Description of transaction (e) Sharing of organization's revenues?
Yes No
Part V
Supplemental Information
Complete this part to provide additional information for responses to questions on Schedule L (see instructions).
Identifier Return Reference Explanation
Schedule L (Form 990 or 990-EZ) 2010

Additional Data


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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
FIRSTHEALTH OF THE CAROLINAS INC
 
Employer identification number

56-1936354
Identifier Return Reference Explanation
FORM 990, PART VI, SECTION B, LINE 11   FIRSTHEALTH'S FORM 990 WAS INITIALLY REVIEWED BY QUALIFIED MEMBERS OF ADMINISTRATION, INCLUDING THE CORPORATE CEO AND CFO, AND COMPLIANCE DEPARTMENTS. THE ENTIRE RETURN WAS REVIEWED BY THE COMPENSATION AND CORPORATE FINANCE/AUDIT/COMPLIANCE COMMITTEES OF THE FIRSTHEALTH BOARD OF DIRECTORS PRIOR TO FILING WITH THE IRS. FIRSTHEALTH'S INDEPENDENT TAX PREPARER, DIXON HUGHES GOODMAN, LLP, ALSO CONDUCTED A REVIEW OF THE RETURN DURING THEIR PREPARATION PROCESS. ONCE THE RETURN IS SUCCESSFULLY E-FILED WITH THE IRS, A COPY OF THE RETURN IS MADE AVAILABLE TO ALL MEMBERS OF THE FIRSTHEALTH BOARD OF DIRECTORS. IN ADDITION TO THE POSTING OF THE FIRSTHEALTH RETURN ON GUIDESTAR, A PUBLIC INSPECTION COPY OF THE FORM 990 IS MADE AVAILABLE FOR REVIEW.
  FORM 990, PART VI, SECTION B, LINE 12C FIRSTHEALTH STRIVES TO MAINTAIN THE HIGHEST ETHICAL STANDARDS AND HAS ADOPTED A CONFLICT OF INTEREST/DUALITY OF INTEREST POLICY THAT APPLIES TO ANY DIRECTOR, TRUSTEE, OFFICER OR MEMBER OF A BOARD COMMITTEE, OR ANY EMPLOYEE WHO HAS A DIRECT OR INDIRECT FINANCIAL INTEREST OR DUALITY OF INTEREST WITH ANY ORGANIZATION SEEKING TO DO BUSINESS WITH OR IS IN AN ACTUAL OR POTENTIAL ADVERSARIAL RELATIONSHIP WITH FIRSTHEALTH. ANY COVERED INDIVIDUAL WITH AN ACTUAL OR POSSIBLE CONFLICT MUST DISCLOSE THE EXISTENCE OF THE CONFLICT TO THE DIRECTORS, TRUSTEES AND MEMBERS OF BOARD COMMITTEES WITH BOARD-DELEGATED POWERS CONSIDERING THE PROPOSED TRANSACTION, ARRANGEMENT OR ISSUE. EACH TRUSTEE, OFFICER OR MEMBER OF A BOARD COMMITTEE WITH BOARD-DELEGATED POWERS COMPLETES AN ANNUAL CONFLICT OF INTEREST DISCLOSURE STATEMENT, AND ALL REPORTED CONFLICTS ARE REPORTED TO AND REVIEWED BY THE FIRSTHEALTH BOARD OF DIRECTORS. ALL MANAGEMENT EMPLOYEES ALSO COMPLETE ANNUAL CONFLICT OF INTEREST DISCLOSURE STATEMENTS, WHICH ARE SUMMARIZED AND REVIEWED WITH SENIOR MANAGEMENT.
  FORM 990, PART VI, SECTION B, LINE 15 FIRSTHEALTH'S BOARD OF DIRECTORS DETERMINES COMPENSATION FOR THE CEO THROUGH ITS COMPENSATION COMMITTEE ("COMMITTEE"). THE COMMITTEE IS COMPOSED OF BOARD MEMBERS WHO ARE INDEPENDENT OF FIRSTHEALTH MANAGEMENT, HAVE NO PERSONAL INTEREST IN THE COMPENSATION ARRANGEMENTS, ARE NOT RELATED TO OR UNDER THE CONTROL OF ANY INDIVIDUAL WHOSE COMPENSATION ARRANGEMENT IS BEING REVIEWED, HAVE NO MATERIAL BUSINESS RELATIONSHIP WITH FIRSTHEALTH, AND ARE NOT PAID FOR THEIR SERVICES AS A BOARD MEMBER. THE COMMITTEE RETAINS AN INDEPENDENT CONSULTANT TO CONDUCT PERIODIC COMPENSATION ANALYSES TO HELP ENSURE FIRSTHEALTH'S COMPENSATION PRACTICES AND COMPENSATION LEVELS ARE REASONABLE. THIS CONSULTANT PROVIDES ONLY ADVISORY SERVICES RELATED TO COMPENSATION MATTERS TO FIRSTHEALTH. TO ATTRACT AND RETAIN THE HIGHEST CALIBER OF HEALTHCARE PROFESSIONALS NEEDED TO SUSTAIN THE QUALITY OF THE HEALTHCARE FIRSTHEALTH PROVIDES TO THE COMMUNITIES THAT IT SERVES, COMPENSATION MUST BE COMPETITIVE WITH THAT PROVIDED BY OTHER COMPETING ORGANIZATIONS IN THE AREA JOB MARKET. WHEN EXECUTIVE POSITIONS ARE FILLED, FIRSTHEALTH TYPICALLY CONDUCTS NATIONAL SEARCHES. FIRSTHEALTH BENCHMARKS AGAINST ORGANIZATIONS OF COMPARABLE SIZE AND MISSION, ACROSS THE REGION AND THE NATION. MARKET DATA IS ASSEMBLED FOR ALL ELEMENTS OF EXECUTIVE COMPENSATION (I.E. CASH COMPENSATION, BENEFITS AND PERQUISITES). COMPENSATION LEVELS REFLECT THE SCOPE OF THE CEO'S RESPONSIBILITIES, EDUCATIONAL BACKGROUND, EXPERIENCE AND INDUSTRY STANDING, AS WELL AS INDIVIDUAL AND ORGANIZATION PERFORMANCE. THE MOST RECENT REVIEW WAS PERFORMED DURING FISCAL YEAR 2011. A SIMILAR PROCESS TO THAT FOR THE CEO IS AFFECTED FOR DETERMINING THE COMPENSATION OF THE OTHER CORPORATE OFFICERS OR KEY EMPLOYEES OF FIRSTHEALTH (I.E. USE OF INDEPENDENT CONSULTANT, COMPARABLE INDUSTRY DATA, ETC.). THE COMMITTEE REVIEWS AND APPROVES THE CEO'S PERFORMANCE ASSESSMENTS AND COMPENSATION RECOMMENDATIONS FOR OTHER CORPORATE OFFICERS AND KEY EMPLOYEES. ALL COMPENSATION DECISIONS ARE MADE IN A MANNER THAT IS CONSISTENT WITH FIRSTHEALTH'S BOARD-APPROVED COMPENSATION PHILOSOPHY. THE MOST RECENT YEAR REVIEW WAS PERFORMED DURING FISCAL YEAR 2011.
  FORM 990, PART VI, SECTION C, LINE 18 THE ORGANIZATION MAKES ITS FORM 990 AVAILABLE TO THE PUBLIC UPON REQUEST AND ON WWW.GUIDESTAR.ORG.
  FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC UPON REQUEST. IN ADDITION, QUARTERLY AND ANNUAL FINANCIAL STATEMENTS ARE POSTED TO THE DIGITAL ASSURANCE CERTIFICATION (DAC) WEBSITE.
CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED LOSSES ON INVESTMENTS: -10,209,891. LOSS ON SWAP MARKET ADJUSTMENT 984,746. LOSS ON ADVANCED REFUDNING -549,395. TOTAL TO FORM 990, PART XI, LINE 5: -9,774,540.
STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS FORM 990, PAGE 2, PART III FIRSTHEALTH OF THE CAROLINAS, INC. ("FIRSTHEALTH") PROVIDES A COMPREHENSIVE COMMUNITY BENEFITS PROGRAM IN ITS PRIMARY AND SECONDARY SERVICE AREAS. FIRSTHEALTH PLAYS A PIVOTAL ROLE IN DELIVERING HEALTH CARE IN THE MID-CAROLINAS AND IS BOTH THE INFRASTRUCTURE AND SAFETY NET FOR HEALTH CARE IN ITS COMMUNITIES. HOSPITAL CARE IS THE CORNERSTONE OF HEALTH CARE IN MOST COMMUNITIES, BUT FIRSTHEALTH GOES BEYOND THE WALLS OF ITS THREE HOSPITALS (FIRSTHEALTH MOORE REGIONAL HOSPITAL, FIRSTHEALTH MONTGOMERY MEMORIAL HOSPITAL AND FIRSTHEALTH RICHMOND MEMORIAL HOSPITAL) TO ENHANCE THE HEALTH AND WELLNESS OF THE RESIDENTS OF ITS SERVICE AREAS. FIRSTHEALTH PROVIDES LOW-COST AND, IN MANY CASES, FREE PROGRAMS TO OUR MOST VULNERABLE PATIENT POPULATIONS. ONE OF FIRSTHEALTH'S MOST IMPORTANT FINANCIAL CONTRIBUTIONS IS BRIDGING THE GAP CREATED BY UNDERPAYMENTS FROM MEDICARE AND MEDICAID AND OTHER GOVERNMENT PROGRAMS, WHILE CONTINUING TO PROVIDE ACCESS TO FREE OR LOW COST HEALTH SCREENINGS AND DIAGNOSTIC SERVICES, AS WELL AS HEALTH/WELLNESS EDUCATIONAL PROGRAMS IN THE COMMUNITIES FIRSTHEALTH SERVES. FREE AND DISCOUNTED CHARITY CARE TO ELIGIBLE PATIENTS SERVED ANYONE WHO VISITS A FIRSTHEALTH HOSPITAL FOR MEDICAL CARE IS TREATED REGARDLESS OF HIS OR HER ABILITY TO PAY FOR THE TREATMENT PROVIDED. WHEN PATIENTS ARE UNABLE TO HELP WITH THEIR MEDICAL EXPENSES, FIRSTHEALTH ABSORBS SOME OR ALL OF THE COST OF CARE FOR THOSE THAT MEET DESIGNATED FINANCIAL CRITERIA, DEPENDING ON FAMILY INCOME. PATIENTS WITH FAMILY INCOMES AT OR BELOW 200 PERCENT OF THE FEDERAL POVERTY GUIDELINE QUALIFY FOR 100 PERCENT FINANCIAL ASSISTANCE UNDER FIRSTHEALTH'S FINANCIAL ASSISTANCE PROGRAM. FIRSTHEALTH'S NET COSTS OF FREE CARE (TREATING PATIENTS THAT QUALIFIED FOR 100% FINANCIAL ASSISTANCE) WERE $8,338,855 IN FISCAL 2011. THROUGH ITS FINANCIAL ASSISTANCE PROGRAM, FIRSTHEALTH ALSO OFFERS VARYING LEVELS OF DISCOUNTED CARE TO PATIENTS WHO ARE POOR AND/OR MEET CERTAIN INCOME GUIDELINES. PATIENTS WITH FAMILY INCOMES BETWEEN 201 AND 360 PERCENT OF THE FEDERAL POVERTY GUIDELINE QUALIFY FOR DISCOUNTS AGAINST FIRSTHEALTH'S LIST PRICE FOR SERVICES RENDERED. FIRSTHEALTH HAS ALSO EXPERIENCED AN UPWARD TRENDING IN BAD DEBT EXPENSE, AS THE NUMBER OF PATIENTS WHO HAVE BEEN DETERMINED TO HAVE THE FINANCIAL CAPACITY TO PAY FOR HEALTHCARE SERVICES PROVIDED BUT ARE UNWILLING/FINANCIALLY UNABLE TO SETTLE THE CLAIM CONTINUES TO INCREASE. FIRSTHEALTH CONTINUES TO PROVIDE ALL NECESSARY HEALTHCARE SERVICES TO THIS PATIENT POPULATION. IN FISCAL 2011, THE COST TO FIRSTHEALTH FOR THESE SERVICES WAS $11,387,828. FIRSTHEALTH'S FINANCIAL COUNSELORS WORK CLOSELY WITH PATIENTS AND FAMILIES TO HELP DETERMINE ELIGIBILITY FOR ASSISTANCE OR QUALIFICATION FOR PUBLIC PROGRAMS. FIRSTHEALTH REQUESTS THAT PATIENTS PROVIDE APPROPRIATE DOCUMENTATION, SUCH AS TAX RETURNS, CURRENT PAY STUBS, OR OTHER RELEVANT INFORMATION, THAT IS USED TO DEMONSTRATE FINANCIAL NEED. FIRSTHEALTH ALSO OFFERS EXTENDED PAYMENT PLANS THAT WILL VARY IN LENGTH, DEPENDING ON THE BALANCE OF THE PATIENT'S ACCOUNT. FIRSTHEALTH ASSISTS PATIENTS WITH FINDING AVAILABLE GOVERNMENTAL PROGRAMS THAT MATCH PATIENTS' NEEDS, SUCH AS MEDICAID, VOCATIONAL REHABILITATION, CRIME VICTIM ASSISTANCE, ETC. FIRSTHEALTH ALSO POSTS DETAILED INFORMATION ABOUT ITS FINANCIAL ASSISTANCE PROGRAM ON ITS WEBSITE (WWW.FIRSTHEALTH.ORG) SO THE PUBLIC CAN BE AWARE OF ITS AVAILABILITY. MEDICAID SHORTFALL FIRSTHEALTH PROVIDES MEDICAID SERVICES IN ITS THREE HOSPITALS, AS WELL AS THROUGH ITS HOME CARE, HOSPICE, AND DENTAL CARE PROGRAMS IN ITS PRIMARY AND SECONDARY SERVICE AREAS. THE MEDICAID PROGRAM, WHICH PROVIDES HEALTH CARE COVERAGE FOR LOW-INCOME FAMILIES AND INDIVIDUALS, IS FUNDED BY THE STATE AND FEDERAL GOVERNMENTS. IN NORTH CAROLINA, AS IN MANY STATES, MEDICAID PAYMENTS ARE WELL BELOW THE PROVIDER'S ACTUAL COST OF TREATING MEDICAID PATIENTS AND THE REIMBURSEMENT LEVEL IS PREDICTED TO DECLINE AS FINANCIAL PRESSURES ON THE FEDERAL AND STATE GOVERNMENT OPERATING BUDGETS MOUNT. IN FISCAL 2011, FIRSTHEALTH'S UNPAID COSTS FROM MEDICAID TOTALED $13,210,966. MEDICARE SHORTFALL FIRSTHEALTH PROVIDES SERVICES TO MEDICARE BENEFICIARIES IN ITS THREE HOSPITALS. IN ADDITION, MEDICARE BENEFICIARIES ARE SERVED BY FIRSTHEALTH'S HOME CARE AND HOSPICE AND PALLIATIVE CARE PROGRAMS. THE MEDICARE SHORTFALL REPRESENTS THE DIFFERENCE BETWEEN THE ACTUAL COST OF CARE RENDERED AND THE REIMBURSEMENT RECEIVED FOR DELIVERING THAT CARE TO PATIENTS. THE COST OF DELIVERING CARE INCLUDES, BUT IS NOT LIMITED TO, PERSONNEL COSTS, TECHNOLOGY, SUPPLIES, PHARMACEUTICALS, MEDICAL DEVICES, FACILITY OPERATING COSTS, ETC. FIRSTHEALTH'S FINANCIAL SHORTFALL FROM PROVIDING THESE MEDICARE SERVICES IN FISCAL 2011 WAS $8,412,976. SUBSIDIZED MEDICALLY ESSENTIAL SERVICES AS A RURAL HEALTH CARE PROVIDER, FIRSTHEALTH IS MANY TIMES THE PROVIDER OF LAST RESORT FOR OUR PATIENTS. IN ORDER TO OFFER A FULL-SPECTRUM OF HEALTH CARE SERVICES, FIRSTHEALTH PROVIDES SERVICES AND PROGRAMS THAT YIELD NEGATIVE OPERATING MARGINS. HOWEVER, BECAUSE THESE SERVICES ARE ESSENTIAL TO THE OVERALL HEALTH OF THE COMMUNITIES SERVED, FIRSTHEALTH CONTINUES TO PROVIDE THEM. SUBSIDIZED MEDICALLY NECESSARY HOSPITAL SERVICES PROVIDED BY FIRSTHEALTH INCLUDE, BUT ARE NOT LIMITED TO: INPATIENT PSYCHIATRY UNIT AND OUTPATIENT MENTAL HEALTH SERVICES; INPATIENT PHYSICAL REHABILITATION UNIT; NEONATAL INTENSIVE CARE UNIT; EMERGENCY DEPARTMENTS (APPROXIMATELY 104,340 PATIENT ENCOUNTERS); WOMEN'S AND CHILDREN'S SERVICES; INPATIENT MEDICAL AND RADIATION ONCOLOGY SERVICES; RENAL DIALYSIS SERVICES; DIABETES CARE; AND A NUMBER OF OTHER OUTPATIENT SERVICES. IN ADDITION, FIRSTHEALTH OF THE CAROLINAS, INC., THROUGH ITS REGIONAL EMERGENCY MEDICAL SERVICES BUSINESS LINE, PROVIDED 18,653 EMERGENCY TRANSPORTS TO RESIDENTS OF THREE NORTH CAROLINA AND ONE SOUTH CAROLINA COUNTIES. IN FISCAL 2011, FIRSTHEALTH RECEIVED $5,249,275 OF OPERATING SUBSIDIES FROM THESE COUNTIES TO OFFSET THE UNREIMBURSED OPERATING COSTS OF PROVIDING THESE ESSENTIAL TRANSPORT SERVICES. FIRSTHEALTH COMMUNITY HEALTH SERVICES MOBILE HEALTH SERVICES FIRSTHEALTH MOBILE HEALTH SERVICES PROVIDES THE FIRSTHEALTH-SERVED COMMUNITIES WITH CONVENIENT ACCESS TO PREVENTIVE HEALTH SCREENINGS AND HEALTH/WELLNESS EDUCATION PROGRAMS/EVENTS AT NO OR LOW COST. SCREENINGS OFFERED INCLUDE: OSTEOPOROSIS, CHOLESTEROL, BLOOD PRESSURE, BLOOD SUGAR, PROSTATE CANCER (PSA) BLOOD DRAW, VASCULAR SCREENINGS FOR ABDOMINAL AORTIC ANEURYSM, CORONARY ARTERY DISEASE, AND PERIPHERAL VASCULAR DISEASE. NINETY-ONE PERCENT OF THOSE WITH ABNORMAL RESULTS WERE REFERRED FOR FURTHER LIFE-SAVING TESTING. IN ADDITION, MOBILE HEALTH SERVICES STAFF PROVIDED 24 EDUCATION EVENTS TO THE RESIDENTS OF THE COMMUNITIES SERVED. ALL MOBILE HEALTH SCREENINGS ARE PROVIDED AT A REDUCED RATE, AND FINANCIAL ASSISTANCE FOR SCREENINGS IS AVAILABLE WHEN APPROPRIATE, BASED ON INCOME. IN FISCAL 2011 FIRSTHEALTH MOBILE HEALTH SERVICES PROVIDED SERVICES TO 2,047 PEOPLE. FIRSTHEALTH PROVIDED $105,168 OF FINANCIAL SUBSIDIES TO OFFSET THE UNFUNDED OPERATING COSTS OF THE MOBILE HEALTH SERVICES PROGRAM IN FISCAL 2011. TOBACCO CESSATION FIRSTHEALTH OFFERED TOBACCO CESSATION PROGRAMS THROUGHOUT ITS SERVICE AREA. A TOBACCO USE PREVENTION AND CESSATION INITIATIVE PROVIDED PREVENTIVE SERVICES THROUGH SCHOOL SYSTEMS AND CESSATION SERVICES THROUGH PROVIDER OFFICES AND OCCUPATIONAL SITES. FIRSTHEALTH SPONSORED THE TOBACCO REALITY UNFILTERED (TRU) PROGRAM THROUGH SUPPORT OF SCHOOL TEENS AGAINST TOBACCO USE (TATU) GROUPS. TATU RECRUITED TEENAGERS TO TEACH YOUNGER CHILDREN ABOUT THE HAZARDS OF TOBACCO USE. FIRSTHEALTH OF THE CAROLINAS WAS AWARDED FUNDING FROM THE NORTH CAROLINA HEALTH AND WELLNESS TRUST FUND (HWTF) TO DEVELOP THE SANDHILLS REGION COMMUNITY COLLEGE TOBACCO-FREE TASK FORCE. THE OVERALL SIX MONTH CUMULATIVE PROGRAM QUIT RATE AS FOR FISCAL 2011 WAS 36%. TATU RECRUITED TEENAGERS TO TEACH YOUNGER CHILDREN ABOUT THE HAZARDS OF TOBACCO. IN FISCAL 2011, 55 TEENS WERE TRAINED AND 156 ADVOCACY ACTIVITIES WERE CONDUCTED TO PROMOTE PREVENTION OF TOBACCO USE. THIS GROUP WAS DESIGNED TO COORDINATE TOBACCO USE PREVENTION AWARENESS ACTIVITIES, PROMOTE CESSATION SERVICES AND CONDUCT GRASSROOTS POLICY ADVOCACY FOR TOBACCO-FREE CAMPUS ENVIRONMENTS. FIRSTHEALTH CONTRIBUTED $20,750 OF FINANCIAL SUBSIDIES TO OFFSET THE UNFUNDED OPERATING COSTS OF THE TOBACCO CESSATION PROGRAMS IN FISCAL 2011.
    SCHOOL HEALTH PROGRAM THROUGH A PARTNERSHIP WITH MOORE COUNTY SCHOOLS AND THE NORTH CAROLINA DEPARTMENT OF HEALTH AND HUMAN SERVICES, THE FIRSTHEALTH SCHOOL HEALTH PROGRAM PROVIDES SCHOOL-BASED NURSES TO 24 SCHOOLS IN MOORE COUNTY. THE PROGRAM HAS RECEIVED BOTH STATE AND NATIONAL RECOGNITION AS A BEST PRACTICE STANDARD AS IT CONTRIBUTES TO THE ACADEMIC SUCCESS AND ADVANCEMENT OF THE WELL BEING AND THE LIFELONG ACHIEVEMENT OF THE SCHOOL-AGED CHILD. SPECIALLY TRAINED NURSES HELP OVER 12,330 SCHOOL CHILDREN EACH YEAR. NURSES PROMOTE HEALTH AND SAFETY, INTERVENE WITH ACTUAL AND POTENTIAL HEALTH PROBLEMS AND PROVIDE CASE MANAGEMENT AND OTHER SERVICES. IN ADDITION TO THE NURSES IN THE SCHOOLS, FIRSTHEALTH ALSO OFFERS ON-SITE MEDICAL CARE AT TWO LOCATIONS IN MONTGOMERY COUNTY. HUNDREDS OF SCHOOL CHILDREN IN MONTGOMERY COUNTY HAVE ACCESS TO MEDICAL CARE ON THE SCHOOL CAMPUS OR JUST STEPS AWAY FROM THE CLASSROOM DOOR. THE TWO SCHOOL HEALTH CENTERS PROVIDE ON-SITE MEDICAL CARE THAT IS SENSIBLE, CONVENIENT, VALUABLE AND OPEN TO ANY CHILD IN THE MONTGOMERY COUNTY SCHOOL SYSTEM. THE CENTERS PROVIDE PHYSICAL, MENTAL, NUTRITIONAL, AND HEALTH AND WELLNESS INTERVENTIONS THAT ARE AVAILABLE TO ALL CHILDREN EVEN IN THE MOST RURAL SECTIONS OF THE COUNTY. A PATIENT SERVICE REPRESENTATIVE, ON-SITE REGISTERED NURSE AND A FAMILY NURSE PRACTITIONER PROVIDE CARE FOR THOUSANDS OF CHILDREN EACH YEAR. MEDICAL PROFESSIONALS STAFFING THESE CENTERS PROVIDE HEALTH, WELLNESS, LEARNING AND EASY ACCESS TO CARE FOR CHILDREN WORKING TOGETHER TO MEET FIRSTHEALTH'S CORE PURPOSE- TO CARE FOR PEOPLE-AS A HOSPITAL WITHOUT WALLS. FIRSTHEALTH PROVIDED $343,387 OF FINANCIAL SUBSIDIES TO OFFSET THE UNFUNDED OPERATING COSTS OF THE SCHOOL HEALTH NURSE PROGRAM AND THE SCHOOL BASED CENTERS IN FISCAL 2011. FIRSTHEALTH MEDICATION ASSISTANCE PROGRAM FIRSTHEALTH CARES HELPS LOW-INCOME INDIVIDUALS OBTAIN FREE OR LOW-COST PRESCRIPTION MEDICATIONS. PATIENTS ARE ELIGIBLE BASED ON MEDICATION NEEDS, LACK OF INSURANCE OR INELIGIBILITY FOR PRESCRIPTION DRUG COVERAGE AND INDIVIDUAL PHARMACEUTICAL COMPANY PROGRAM GUIDELINES. THESE MEDICATIONS ARE FOR CHRONIC DISEASE CONDITIONS SUCH AS ASTHMA, BRONCHITIS, CONGESTIVE HEART FAILURE, COPD, DIABETES, EMPHYSEMA, HYPERTENSION AND HIGH CHOLESTEROL. AN ON-STAFF PHARMACIST MAKES SURE EACH PATIENT'S MEDICATIONS CAN SAFELY BE TAKEN TOGETHER, ARE RIGHT FOR THE PATIENT'S CONDITION, THAT MEDICATIONS ARE NOT UNNECESSARY OR DUPLICATIONS, AND ADVISES IF LESS EXPENSIVE OPTIONS ARE AVAILABLE. THE MEDICATION ASSISTANCE SERVICE IS FREE OF CHARGE. FOR FISCAL 2011, 1,204 PATIENTS WERE SERVED, WITH 7,171 MEDICATIONS RECEIVED, AT AN AVERAGE WHOLESALE PRICE OF $4,178,691 IF THE PATIENTS HAD TO PURCHASE THESE MEDICATIONS. FIRSTHEALTH PROVIDED $4,834 OF FINANCIAL SUBSIDIES TO OFFSET THE UNFUNDED OPERATING COSTS OF FIRSTHEALTH CARES IN FISCAL 2011. DENTAL CARE CENTERS FIRSTHEALTH OPERATES THREE DENTAL CARE CENTERS IN SOUTHERN PINES (MOORE COUNTY), TROY (MONTGOMERY COUNTY) AND RAEFORD (HOKE COUNTY), NORTH CAROLINAS. EACH DENTAL CARE CENTER PROVIDES COMPREHENSIVE DENTAL CARE SERVICES TO MEDICAID AND HEALTHCHOICE-ELIGIBLE CHILDREN UP TO AGE 18. SINCE FEW DENTISTS IN THESE COUNTIES PARTICIPATE IN MEDICAID'S DENTAL PROGRAM, THE FIRSTHEALTH DENTAL CARE CENTERS PROVIDES A TREMENDOUS UNMET NEED IN THE REGION. WHEN THE DENTAL CARE CENTERS OPENED IN 1997, NEARLY HALF OF THE CHILDREN OF LOW-INCOME FAMILIES IN FIRSTHEALTH'S SERVICE AREA WERE GETTING LITTLE TO NO DENTAL CARE SERVICES. IN FISCAL 2011, FIRSTHEALTH'S DENTAL CARE SERVICES PROVIDED 14,804 DENTAL CARE VISITS FOR 4,792 ELIGIBLE CHILDREN RESIDING IN THE THREE COUNTIES SERVED. SECURING AFFORDABLE HEALTH COVERAGE SERVICES TECHNICAL, FINANCIAL AND OTHER ASSISTANCE IS PROVIDED TO UNINSURED PATIENTS TOWARD SECURING HEALTH CARE COVERAGE THROUGH MEDICAID, HEALTH CHOICE AND OTHER COVERAGE PROGRAMS. DURING FISCAL 2011, FIRSTHEALTH ASSISTED 618 CHILDREN WITH SCHOLARSHIPS TO PAY HEALTH CHOICE ENROLLMENT FEES. FIRSTHEALTH CONTINUES TO SPONSOR FIRSTPLAN, A SUBSIDIZED HEALTH INSURANCE PRODUCT FOR SMALL BUSINESSES OFFERING COVERAGE FOR PREVIOUSLY UNINSURED EMPLOYEES. FIRSTHEALTH PROVIDED $201,290 IN FINANCIAL SUBSIDIES TO COVER PREMIUMS PAID BY THE SMALL BUSINESSES PARTICIPATING IN THE FIRSTPLAN PROGRAM IN FISCAL 2011. DIABETES SELF-MANAGEMENT PROGRAM THE FIRSTHEALTH DIABETES SELF-MANAGEMENT PROGRAM, AN AMERICAN DIABETES ASSOCIATION ACCREDITED PROGRAM, ASSISTED PEOPLE WITH OR AT RISK FOR DIABETES AND HELPED THEM GAIN THE KNOWLEDGE AND SKILLS NEEDED TO SELF-MANAGE THE DISEASE AND RELATED CONDITIONS. THIS ASSISTANCE INCLUDED DIABETES SELF-MANAGEMENT EDUCATION (INDIVIDUAL AND GROUP SETTING), MEDICAL NUTRITION THERAPY, HEALTH CARE PROFESSIONAL EDUCATION, DISEASE MANAGEMENT, TELEPHONE CARE MANAGEMENT, COMMUNITY OUTREACH AND CASE MANAGEMENT SERVICES. APPROXIMATELY 1,400 DIABETICS RECEIVED ASSISTANCE THROUGH THIS PROGRAM IN FISCAL 2011. FIRSTHEALTH PROVIDED $4,380 IN FINANCIAL SUBSIDIES TO OFFSET THE UNFUNDED OPERATING COSTS OF THE DIABETES & NUTRITION COUNSELING CENTER IN FISCAL 2011. HEALTHY LIVING IN THE MID-CAROLINAS PROGRAM UNDER A SEVEN-YEAR GRANT FROM THE KATE B. REYNOLDS CHARITABLE TRUST, FIRSTHEALTH PROVIDED EVIDENCE-BASED LIFESTYLE BEHAVIOR CHANGE CLASSES THROUGH THE PEOPLE LIVING ACTIVE YEAR-ROUND (PLAY) AND THE HAPPY KITCHEN (THK) PROGRAMS. 175 LOW-INCOME INDIVIDUALS (FAMILY INCOMES AT OR BELOW 200% OF THE FEDERAL POVERTY LEVEL) ENROLLED IN THE PLAY PROGRAM AND 336 ENROLLED IN THE THK PROGRAM IN FISCAL 2011. FIRSTHEALTH PROVIDED $32,921 OF FINANCIAL SUBSIDIES TO OFFSET THE UNFUNDED OPERATING COSTS OF THE HEALTH LIVING INITIATIVES IN FISCAL 2011. SUPPORT IN THE COMMUNITY FIRSTHEALTH EMPLOYEES IDENTIFY LOCAL NEEDS AND RECOMMEND IN-KIND AND FINANCIAL SUPPORT TO ORGANIZATIONS IN NEED. DURING FISCAL 2011, FIRSTHEALTH SUPPORTED HEALTH EDUCATION EVENTS, DISTRIBUTED EQUIPMENT AND PROMOTED COMMUNITY-BASED HEALTH INITIATIVES. FIRSTHEALTH ALSO PROVIDED MEALS FOR OVER 50 COMMUNITY MEETINGS AND EVENTS. THOUGH THESE INITIATIVES, FIRSTHEALTH SERVED 44,234 PEOPLE AT A COST OF $252,081 FOR FISCAL 2011. VOLUNTEER EFFORTS BY FIRSTHEALTH EMPLOYEES FIRSTHEALTH PROVIDED ALMOST 1,100 HOURS OF ASSISTANCE TO THE COMMUNITY IN THE AREAS OF LEADERSHIP, PLANNING, RESOURCE IDENTIFICATION, TIME MANAGEMENT AND INFORMATION SYSTEMS ON A LOW OR NO-COST BASIS. FIRSTHEALTH PARTICIPATED IN AND PROVIDED ADMINISTRATIVE SUPPORT TO COUNTY-BASED MULTI-AGENCY GROUPS INCLUDING MOOREHEALTH, MONTGOMERY COMMUNITY RESOURCE TEAM, RICHMOND HEALTHY CAROLINIANS, AND HEALTHY HOKE. LOCAL SAFE KIDS COALITIONS WERE ALSO SUPPORTED IN MONTGOMERY, MOORE AND RICHMOND COUNTIES AS PART OF THE STATEWIDE INITIATIVE TO REDUCE CHILDHOOD INJURIES. THESE GROUPS HOSTED EVENTS SUCH AS BIKE RODEOS AND CAR SEAT SAFETY CHECKS. FAMILY ASSISTANCE FIRSTHEALTH'S PASTORAL CARE SERVICES PROVIDED FREE MEALS FOR MORE THAN 758 FAMILY MEMBERS STAYING WITH LOVED ONES IN THE HOSPITAL WHO COULD NOT AFFORD MEALS AND HOUSING. THE COST TO FIRSTHEALTH FOR FREE MEALS PROVIDED IN FISCAL 2011 TOTALED $9,068, WITH AN ADDITIONAL $8,097 PAID TO AREA HOTELS FOR TEMPORARY HOUSING PROVIDED TO 126 FAMILY MEMBERS. MOORE AND MONTGOMERY COUNTIES - FREE CARE CLINIC THE MOORE FREE CARE CLINIC (MFCC) IS A PRIVATE, VOLUNTEER-BASED, NON-PROFIT ORGANIZATION THAT PROVIDES PRIMARY HEALTH CARE SERVICES AT NO COST TO THE LIMITED-INCOME RESIDENTS OF MOORE COUNTY THAT LACK HEALTH CARE INSURANCE COVERAGE. FIRSTHEALTH PROVIDED DIRECT FINANCIAL SUPPORT TOTALING $45,000 IN FISCAL 2011 TO MFCC IN SUPPORT OF ITS MISSION. PATIENTS OF MFCC THAT REQUIRED INPATIENT/OUTPATIENT ACUTE CARE SERVICES WERE REFERRED TO FIRSTHEALTH MOORE REGIONAL HOSPITAL FOR CARE, GENERATING A TOTAL OF 1,689 PATIENT ENCOUNTERS IN FISCAL 2011. THE $724,148 COST OF PROVIDING THESE SERVICES IN FISCAL 2011 WAS ABSORBED BY FIRSTHEALTH. FIRSTHEALTH ALSO PROVIDED PHYSICIANS, NURSES AND PHYSICAL THERAPISTS TO MFCC, AND FIRSTHEALTH ABSORBED ANY ADDED COSTS ASSOCIATED WITH PROVIDING THIS COVERAGE.
    THE MONTGOMERY COUNTY FREE CLINIC (MCFC), INCORPORATED IN NOVEMBER 2009, PROVIDES PRIMARY HEALTH CARE SERVICES AT NO COST TO THE LIMITED-INCOME RESIDENTS OF MONTGOMERY COUNTY THAT LACK HEALTH CARE INSURANCE COVERAGE. PATIENTS OF MCFC THAT REQUIRED INPATIENT/OUTPATIENT ACUTE CARE SERVICES WERE REFERRED TO FIRSTHEALTH MONTGOMERY MEMORIAL HOSPITAL FOR CARE, GENERATING A TOTAL OF 340 PATIENT ENCOUNTERS IN FISCAL 2011. THE $89,600 COST OF PROVIDING THESE SERVICES IN FISCAL 2011 WAS ABSORBED BY FIRSTHEALTH. IN ADDITION, FIRSTHEALTH PROVIDED OFFICE SPACE TO MCFC AT 104 PROFESSIONAL DRIVE, BISCOE, NC. MCFC PAID $1 PER YEAR IN RENT FOR THE SPACE. FIRSTHEALTH ABSORBED A TOTAL OF $9,793 IN OPERATING COSTS ON THE MCFC BUILDING IN FISCAL 2011. MEDICAL STAFF DEVELOPMENT / PHYSICIAN RECRUITMENT ASSISTANCE FIRSTHEALTH PROVIDES FINANCIAL ASSISTANCE TO AREA PHYSICIAN PRACTICES AND INDIVIDUAL PHYSICIANS FOR THE RECRUITMENT OF PHYSICIANS TO PRACTICE IN THE GEOGRAPHIC AREAS SERVED BY THE THREE FIRSTHEALTH HOSPITALS. UNDER FIRSTHEALTH'S MEDICAL STAFF DEVELOPMENT PLAN, RECRUITMENT ASSISTANCE IS APPROPRIATE TO: (1) ADD PHYSICIANS IN AN UNDER-SERVED GEOGRAPHIC LOCATION; (2) ADD OR ENHANCE A SERVICE OF THE HOSPITAL OR COMMUNITY; OR (3) INCREASE PHYSICIAN COVERAGE WHERE THERE IS AN EXISTING SHORTAGE. DURING FISCAL 2011, FIRSTHEALTH PARTICIPATED IN A SEARCH FOR AN OB/GYN IN MOORE COUNTY. FIRSTHEALTH ALSO FORGAVE APPROXIMATELY $91,208 IN PAYMENTS MADE IN PRIOR YEARS TOWARD THE RECRUITMENT OF A PEDIATRICIAN AND PSYCHIATRIST IN MOORE COUNTY. IN ADDITION TO RECRUITMENT ASSISTANCE PROVIDED TO THE AREA PHYSICIAN PRACTICES, FIRSTHEALTH ALSO RECRUITED A TOTAL OF TEN PHYSICIANS AND MID-LEVEL PRACTITIONERS TO ITS HOSPITALIST PROGRAMS AT THE THREE FIRSTHEALTH HOSPITALS IN FISCAL 2011.
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
FIRSTHEALTH OF THE CAROLINAS INC
 
Employer identification number

56-1936354
Part I
Identification of Disregarded Entities (Complete if the organization answered "Yes" on Form 990, Part IV, line 33.)
(a)
Name, address, and EIN of disregarded entity


(b)
Primary activity


 		(c)
Legal domicile (state
or foreign country)

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


 		(f)
Direct controlling
entity







(1) STARFIRST LLC
155 MEMORIAL DRIVE
PINEHURST,NC28374
56-1936354 		CAPTIVE INSURANCE SC 1,936,000 21,937,409 FIRSTHEALTH OF THE CAROLINAS INC
 










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) FOUNDATION OF FIRSTHEALTH INC

155 MEMORIAL DRIVE

PINEHURST,NC28374
51-0191937 		FUNDRAISING NC 501(C)(3) LINE 11A, I FIRSTHEALTH OF THE CAROLINAS INC
 
Yes
 
(2) MONTGOMERY COUNTY PRIMARY CARE CORPORATION

155 MEMORIAL DRIVE

PINEHURST,NC28374
58-2069393 		HEALTHCARE SERVICES NC 501(C)(3) LINE 9 FIRSTHEALTH OF THE CAROLINAS INC
 
Yes
 










For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50135Y
Schedule R (Form 990) 2010
Schedule R (Form 990) 2010
Page 2
Part III
Identification of Related Organizations Taxable as a Partnership (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a partnership during the tax year.)
(a)
Name, address, and EIN of
related organization



 		(b)
Primary activity




 		(c)
Legal
domicile
(state or foreign
country)


 		(d)
Direct controlling
entity



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

(f)
Share of total income




 		(g)
Share of end-of-year
assets



 		(h)
Disproprtionate allocations?




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



 		(k)
Percentage
ownership
Yes No Yes No
(1) FIRSTIMAGING OF THE CAROLINAS LLC

155 MEMORIAL DRIVE
PINEHURST,NC28374
30-0313534 		MEDICAL SERVICES NC FIRSTHEALTH OF THE CAROLINAS INC
  		RELATED 456,124 346,087   No     No 50.000 %
(2) SURGERY CENTER OF PINEHURST LLC

10 FIRSTVILLAGE DRIVE
PINEHURST,NC28374
68-0561185 		MEDICAL SERVICES NC FIRSTHEALTH OF THE CAROLINAS INC
  		RELATED 1,312,352 891,304   No   Yes   40.000 %
(3) FIRSTHEALTH-UNCHCS LLC (DBA SANFORD HEMATOLOGY & ONCOLOGY)

155 MEMORIAL DRIVE
PINEHURST,NC28374
26-2568199 		MEDICAL SERVICES NC FIRSTHEALTH OF THE CAROLINAS INC
  		RELATED 227,017 643,226   No     No 50.000 %
(4) FIRSTCAROLINACARE INSURANCE SERVICES LLC

42 MEMORIAL DRIVE
PINEHURST,NC28374
26-1708544 		INSURANCE SERVICES NC FIRSTHEALTH OF THE CAROLINAS INC
  		RELATED 787 30,726   No     No 51.000 %
(5) SURGERY CENTER OF PINEHURST PROPERTIES LLC

155 MEMORIAL DRIVE
PINEHURST,NC28374
68-0561188 		REAL ESTATE NC FIRSTHEALTH OF THE CAROLINAS INC
  		RELATED 426,253 4,070,420   No   Yes   92.550 %
(6) CARDIOVASCULAR CENTER OF SCOTLAND COUNTY LLC

155 MEMORIAL DRIVE
PINEHURST,NC28374
26-2335801 		MEDICAL SERVICES NC FIRSTHEALTH OF THE CAROLINAS INC
  		RELATED -49,386 1,646,456   No     No 50.000 %


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



 		(b)
Primary activity



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


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

 		(f)
Share of total income



 		(g)
Share of
end-of-year
assets

 		(h)
Percentage
ownership
(1) FIRSTHEALTH PROFESSIONAL SERVICES INC
155 MEMORIAL DRIVE
PINEHURST,NC28374
56-1885149 		HEALTHCARE SERVICES NC FIRSTHEALTH OF THE CAROLINAS INC
  		C 18,000 442,000 100.000 %
(2) FIRSTCAROLINACARE INSURANCE COMPANY INC
42 MEMORIAL DRIVE
PINEHURST,NC28374
33-1160597 		INSURANCE COMPANY NC FIRSTHEALTH OF THE CAROLINAS INC
  		C 349,000 19,326,000 100.000 %










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
Yes
 
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
Yes
 
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
Yes
 
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
 
No
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
Yes
 
p Reimbursement paid by other organization for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1p
Yes
 
q Other transfer of cash or property to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1q
 
No
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) FIRSTIMAGING OF THE CAROLINAS LLC

 R 365,140  
(2) SURGERY CENTER OF PINEHURST LLC

 R 1,413,428  
(3) SURGERY CENTER OF PINEHURST PROPERTIES LLC

 R 469,385  
(4) FOUNDATION OF FIRSTHEALTH INC

 C 5,391,695  
(5) FOUNDATION OF FIRSTHEALTH INC

 O 2,009,538  
(6) FOUNDATION OF FIRSTHEALTH INC

 I 46,824  
(7) FOUNDATION OF FIRSTHEALTH INC

 P 2,614,499  
(8) MONTGOMERY COUNTY PRIMARY CARE CORPORATION

 O 11,170,000  
(9) MONTGOMERY COUNTY PRIMARY CARE CORPORATION

 P 8,524,667  
(10) FIRSTCAROLINACARE INSURANCE COMPANY INC

 I 66,909  
(11) FIRSTCAROLINACARE INSURANCE COMPANY INC

 K 336,000  
(12) FIRSTCAROLINACARE INSURANCE COMPANY INC

 L 1,872,936  
(13) FIRSTCAROLINACARE INSURANCE COMPANY INC

 O 25,399,605  
(14) FIRSTCAROLINACARE INSURANCE COMPANY INC

 P 13,506,731  
Schedule R (Form 990) 2010
Schedule R (Form 990) 2010
Page 4
Part VI
Unrelated Organizations Taxable as a Partnership (Complete if the organization answered "Yes" on Form 990, Part IV, line 37.)
Provide the following information for each entity taxed as a partnership through which the organization conducted more than five percent of its activities (measured by total assets or gross revenue) that was not a related organization. See instructions regarding exclusion for certain investment partnerships.
(a)
Name, address, and EIN of entity 		(b)
Primary activity 		(c)
Legal domicile
(state or foreign
country) 		(d)
Are all
partners
section
501(c)(3)
organizations? 		(e)
Share of
end-of-year
assets 		(f)
Disproprtionate allocations? 		(g)
Code V—UBI
amount in box
20 of Schedule K-1
(Form 1065) 		(h)
General or
managing
partner?
Yes No Yes No Yes No






























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


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