TY 2011 Form 990

(A) Name and Title	(B) Average hours per week (describe hours for related organizations in Schedule O)	(C) Position (do not check more than one box, unless person is both an officer and a director/trustee)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)	(F) Estimated amount of other compensation from the organization and related organizations
(1) LEON RESIDORI DIRECTOR	1.0	X			0	0
(2) BRUCE BAKER PRESIDENT	1.0	X	X		0	0
(3) MICHAEL RITTOF VICE PRESIDENT	1.0	X	X		0	0
(4) BARRY NARVICK DIRECTOR	1.0	X			0	0
(5) JOHN SCALA MD DIRECTOR	1.0	X			0	0
(6) KELLY BEATY TREASURER	1.0	X	X		0	0
(7) CATHY MACCHIETTO DIRECTOR	1.0	X			0	0
(8) SHELDON SOBOL SECRETARY	1.0	X	X		0	0
(9) RODNEY ENGSTROM DIRECTOR	1.0	X			0	0
(10) JACKIE GOOGINS DIRECTOR	1.0	X			0	0
(11) JOHN ROTH MD DIRECTOR	1.0	X			0	0
(12) peter roumeliotis md director	1.0	X			0	0
(13) tami hansen director	1.0	X			0	0
(14) THOMAS MEYER CFO	1.0		X		200,388	11,892
(15) MARK STEADHAM PRES. AND CEO OF MORRIS HOSP.	40.0		X		283,121	4,417
(16) DENNIS MAHONEY VP PROFESSIONAL SRVS	40.0			X	157,729	10,734
(17) CAROL HAVEL VP PATIENT CARE SRVS	40.0			X	158,317	9,869

(A) Name and business address	(B) Description of services	(C) Compensation
MAYO COLLABORATIVE SERVICES INC PO BOX 9146 MINNEAPOLIS,MN554809146	LABORATORY SERVICES	503,160
CANCER TREATMENT GROUP 128 SHORE DRIVE OGDEN DUNES,IN46368	PHYSICIAN SERVICES	348,000
EPIC GROUP SC SLOT 303125 PO BOX 66973 CHICAGO,IL606060973	HEALTH SERVICES	300,258
PLT LLC 490 MILLS ROAD JOLIET,IL60432	LAUNDRY SERVICES	245,480
CENTER FOR SURGERY AND BREAST HEALT 300 BARNEY DRIVESUITE A JOLIET,IL60435	TRAUMA COVERAGE	223,200
2 Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 of compensation from the organization 10

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 United States. See Part IV, line 21	0
2	Grants and other assistance to individuals in the United States. See Part IV, line 22	0
3	Grants and other assistance to governments, organizations, and individuals outside the United States. See Part IV, lines 15 and 16	0
4	Benefits paid to or for members	0
5	Compensation of current officers, directors, trustees, and key employees ....	836,468	727,727	108,741
6	Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....	0
7	Other salaries and wages	45,001,729	39,151,505	5,850,224
8	Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) ....	0
9	Other employee benefits .......	6,422,816	5,587,850	834,966
10	Payroll taxes ...........	2,277,829	1,981,711	296,118
11	Fees for services (non-employees):
a	Management ......	0
b	Legal .........	321,422	279,637	41,785
c	Accounting ...........	134,096	116,664	17,432
d	Lobbying ...........	0
e	Professional fundraising. See Part IV, line 17..	418			418
f	Investment management fees ......	546,260	475,246	71,014
g	Other ..........	6,178,789	5,375,546	803,243
12	Advertising and promotion ....	0
13	Office expenses .......	3,636,039	3,163,354	472,685
14	Information technology ......	0
15	Royalties ..	0
16	Occupancy ...........	2,525,596	2,197,269	328,327
17	Travel ............	0
18	Payments of travel or entertainment expenses for any federal, state, or local public officials ......	0
19	Conferences, conventions, and meetings ....	0
20	Interest ...........	1,792,836	1,559,767	233,069
21	Payments to affiliates .......	0
22	Depreciation, depletion, and amortization .....	7,970,474	6,934,312	1,036,162
23	Insurance ..............	1,656,606	1,441,247	215,359
24	Other expenses. Itemize expenses not covered above (List miscellaneous expenses in line 24f. If line 24f amount exceeds 10% of line 25, column (A) amount, list line 24f expenses on Schedule O.)
a	SUPPLIES	15,453,871	13,444,868	2,009,003
b	BAD DEBT ALLOWANCE	7,427,219	6,461,681	965,538
c	TRANSFERS	732,095	636,923	95,172
d	FOOD	409,791	356,518	53,273
e
f	All other expenses	9,843,666	8,563,989	1,279,677
25	Total functional expenses. Add lines 1 through 24f	113,168,020	98,455,814	14,711,788	418
26	Joint costs. Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation. Check here if following SOP 98-2 (ASC 958-720).

Part X Balance Sheet
	1	Cashnon-interest-bearing ..........	863,000	1	1,062,368
2	Savings and temporary cash investments .......	6,654,287	2	10,031,170
3	Pledges and grants receivable, net .........	0	3	0
4	Accounts receivable, net .........	14,124,116	4	16,392,418
5	Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
	Schedule L ..........	0	5	0
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 ..........	0	6	0
7	Notes and loans receivable, net .............	0	7	0
8	Inventories for sale or use ..............	3,605,768	8	3,498,923
9	Prepaid expenses and deferred charges ............	2,015,875	9	1,987,916
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	157,186,787
b	Less: accumulated depreciation. .....	10b	85,798,211	75,244,375	10c	71,388,576
11	Investments—publicly traded securities ..........	46,340,282	11	47,864,388
12	Investments—other securities. See Part IV, line 11 ......	0	12	0
13	Investments—program-related. See Part IV, line 11 ..	740,401	13	738,577
14	Intangible assets .........	0	14	0
15	Other assets. See Part IV, line 11 ...........	7,071,882	15	6,586,256
16	Total assets. Add lines 1 through 15 (must equal line 34)...	156,659,986	16	159,550,592
	17	Accounts payable and accrued expenses .	12,038,651	17	9,801,927
18	Grants payable ..........	0	18	0
19	Deferred revenue ..........	0	19	0
20	Tax-exempt bond liabilities ..........	45,749,006	20	44,424,162
21	Escrow or custodial account liability. Complete Part IV of Schedule D..	0	21	0
22	Payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........	0	22	0
23	Secured mortgages and notes payable to unrelated third parties ..	0	23	0
24	Unsecured notes and loans payable to unrelated third parties ....	0	24	0
25	Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D.....	8,816,130	25	14,802,903
26	Total liabilities. Add lines 17 through 25.....	66,603,787	26	69,028,992
		Organizations that follow SFAS 117, check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets .....	90,003,466	27	90,468,867
28	Temporarily restricted net assets .....	32,733	28	32,733
29	Permanently restricted net assets .....	20,000	29	20,000
	Organizations that do not follow SFAS 117, check here 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 .....	90,056,199	33	90,521,600
34	Total liabilities and net assets/fund balances .....	156,659,986	34	159,550,592

- TIN:

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.

Attach to Form 990 or Form 990-EZ. right arrow

See separate instructions.

OMB No. 1545-0047

2011

Open to Public
Inspection

Name of the organization

MORRIS HOSPITAL

Employer identification number

36-2170155

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.)

A church, convention of churches, or association of churches. section 170(b)(1)(A)(i).

A school described in section 170(b)(1)(A)(ii). (Attach Schedule E.)

A hospital or a cooperative hospital service organization described in section 170(b)(1)(A)(iii).

A medical research organization operated in conjunction with a hospital described in section 170(b)(1)(A)(iii). Enter the hospital's name, city, and state:

An organization operated for the benefit of a college or university owned or operated by a governmental unit described in

section 170(b)(1)(A)(iv). (Complete Part II.)

A federal, state, or local government or governmental unit described in section 170(b)(1)(A)(v).

An organization that normally receives a substantial part of its support from a governmental unit or from the general public described in

section 170(b)(1)(A)(vi). (Complete Part II.)

A community trust described in section 170(b)(1)(A)(vi). (Complete Part II.)

An organization that normally receives: (1) more than 331/3% of its support from contributions, membership fees, and gross

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.)

An organization organized and operated exclusively to test for public safety. Seesection 509(a)(4).

An organization organized and operated exclusively for the benefit of, to perform the functions of, or to carry out the purposes of one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2). See section 509(a)(3). Check the box that describes the type of supporting organization and complete lines 11e through 11h.

Type I

Type II

Type III - Functionally integrated

Type III - Other

By checking this box, I certify that the organization is not controlled directly or indirectly by one or more disqualified persons other than foundation managers and other than one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2).

If the organization received a written determination from the IRS that it is a Type I, Type II or Type III supporting organization, check this box ..................................................

Since August 17, 2006, has the organization accepted any gift or contribution from any of the
following persons?

(i) a person who directly or indirectly controls, either alone or together with persons described in (ii)

Yes

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)

Provide the following information about the supported organization(s).

(i) Name of supported organization	(ii) EIN	(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?
(i) Name of supported organization	(ii) EIN	Yes	No	Yes	No	Yes	No	(vii) Amount of support?


Total

For Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 11285F

Schedule A (Form 990 or 990-EZ) 2011

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) 2007	(b) 2008	(c) 2009	(d) 2010	(e) 2011	(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) 2007	(b) 2008	(c) 2009	(d) 2010	(e) 2011	(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).

Gross receipts from related activities, etc. (See instructions.) ..................

First Five Years If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a 501(c)(3) organization,
check this box and stop here.......................................... right arrow

Section C. Computation of Public Support Percentage

Public Support Percentage for 2010 (line 6 column (f) divided by line 11 column (f)) .........

Public Support Percentage for 2009 Schedule A, Part II, line 14 ...............

16a

33 1/3% support test—2011. If the organization did not check the box on line 13, and line 14 is 33 1/3% or more, check this box
and stop here. The organization qualifies as a publicly supported organization ...................... right arrow

33 1/3% support test—2010. If the organization did not check the box on line 13 or 16a, and line 15 is 33 1/3% or more, check this
box and stop here. The organization qualifies as a publicly supported organization ..................... right arrow

17a

10%-facts-and-circumstances test—2011. If the organization did not check a box on line 13, 16a, or 16b and line 14
is 10% or more, and if the organization meets the "facts and circumstances" test, check this box and stop here. Explain
in Part IV how the organization meets the "facts and circumstances" test. The organization qualifies as a publicly supported
organization .................................................. right arrow

10%-facts-and-circumstances test—2010. If the organization did not check a box on line 13, 16a, 16b, or 17a and line
15 is 10% or more, and if the organization meets the "facts and circumstances" test, check this box and stop here.
Explain in Part IV how the organization meets the "facts and circumstances" test. The organization qualifies as a publicly
supported organization .............................................. right arrow

Private Foundation If the organization did not check a box on line 13, 16a, 16b, 17a or 17b, check this box and see
instructions ................................................... right arrow

Schedule A (Form 990 or 990-EZ) 2011

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) 2007	(b) 2008	(c) 2009	(d) 2010	(e) 2011	(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) 2007	(b) 2008	(c) 2009	(d) 2010	(e) 2011	(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.).

Section C. Computation of Public Support Percentage

Public Support Percentage for 2011 (line 8 column (f) divided by line 13 column (f)) .........

Public support percentage from 2010 Schedule A, Part III, line 15 ...............

Section D. Computation of Investment Income Percentage

Investment income percentage for 2011 (line 10c column (f) divided by line 13 column (f)) ......

Investment income percentage from 2010 Schedule A, Part III, line 17 .............

19a

33 1/3% support tests—2011. If the organization did not check the box on line 14, and line 15 is more than 33 1/3% and line 17 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization .......... right arrow

33 1/3% support tests—2010. If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33 1/3% and line 18 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization .... right arrow

Private Foundation If the organization did not check a box on line 14, 19a or 19b, check this box and see instructions ..... right arrow

Schedule A (Form 990 or 990-EZ) 2011

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) 2011

Additional Data

Software ID:
Software Version:

- TIN:

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

2011

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, line 35c (Proxy Tax), then
Round Bullet

Section 501(c)(4), (5), or (6) organizations: Complete Part III.

Name of the organization

MORRIS HOSPITAL

Employer identification number

36-2170155

Part I-A

Complete if the organization is exempt under section 501(c) or is a section 527 organization.

Provide a description of the organization’s direct and indirect political campaign activities in Part IV.

Political expenditures .................................... SchCMd Bullet

Volunteer hours ........................................

Part I-B

Complete if the organization is exempt under section 501(c)(3).

Enter the amount of any excise tax incurred by the organization under section 4955 ......... SchCMd Bullet

Enter the amount of any excise tax incurred by organization managers under section 4955 ...... SchCMd Bullet

If the organization incurred a section 4955 tax, did it file Form 4720 for this year? ..............

Yes No

Was a correction made? .........................................

Yes No

If "Yes," describe in Part IV.

Part I-C

Complete if the organization is exempt under section 501(c) except section 501(c)(3).

Enter the amount directly expended by the filing organization for section 527 exempt function activities SchCMd Bullet

Enter the amount of the filing organization's funds contributed to other organizations for section 527 exempt function activities ................................... SchCMd Bullet

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

Did the filing organization file Form 1120-POL for this year? ..........................

Yes No

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) 2011

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 if the filing organization belongs to an affiliated group (and list in Part IV each affiliated group member's name, address, EIN, expenses, and share of excess lobbying expenditures).
B Check if the filing organization checked box A and "limited control" provisions apply.

Limits on Lobbying Expenditures (The term "expenditures" means amounts paid or incurred.)		(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? ......................................	Yes No

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) 2008	(b) 2009	(c) 2010	(d) 2011	(e) Total

2a	Lobbying non-taxable amount

b	Lobbying ceiling amount (150% of line 2a, column(e))

c	Total lobbying expenditures

d	Grassroots nontaxable amount

e	Grassroots ceiling amount (150% of line 2d, column (e))

f	Grassroots lobbying expenditures

Schedule C (Form 990 or 990-EZ) 2011

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)).

For each “Yes” response to lines 1a through 1i below, provide in Part IV a detailed description of the lobbying activity.

(a)

Yes

(b)

Amount

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:

Volunteers? .........................................

Paid staff or management (include compensation in expenses reported on lines 1c through 1i)? ....

Media advertisements? ....................................

Mailings to members, legislators, or the public? .........................

Publications, or published or broadcast statements? .......................

Grants to other organizations for lobbying purposes? .......................

Direct contact with legislators, their staffs, government officials, or a legislative body? ........

Rallies, demonstrations, seminars, conventions, speeches, lectures, or any similar means? ......

Other activities? ..........................

Yes

56,193

Total. Add lines 1c through 1i ...............................

56,193

Did the activities in line 1 cause the organization to be not described in section 501(c)(3)? .....

If "Yes," enter the amount of any tax incurred under section 4912 .................

If "Yes," enter the amount of any tax incurred by organization managers under section 4912 .....

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

Were substantially all (90% or more) dues received nondeductible by members? ................

Did the organization make only in-house lobbying expenditures of $2,000 or less? ................

Did the organization agree to carry over lobbying and political expenditures from the prior year? ..........

Part III-B

Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6) and if either (a) BOTH Part III-A, lines 1 and 2 are answered “No” OR (b) Part III-A, line 3 is answered “Yes”.

Dues, assessments and similar amounts from members .....................

Section 162(e) nondeductible lobbying and political expenditures (do not include amounts of political
expenses for which the section 527(f) tax was paid).

Current year .........................................

Carryover from last year ....................................

Total ...........................................

Aggregate amount reported in section 6033(e)(1)(A) notices of nondeductible section 162(e) dues .

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? ................................

Taxable amount of lobbying and political expenditures (see instructions) ..............

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, Part II-A; line 5; and Part ll-B, line 1.
Also, complete this part for any additional information.

Identifier	Return Reference	Explanation
DUES TO AMERICAN HOSPITAL ASSOCIATION & ILLINOIS HOSPITAL ASSOCIATION	SCH C PART II-B	26.13% OF TOTAL $20,916 PAYMENT FOR 2011 DUES OWED TO AMERICAN HOSPITAL ASSOCIATION REPRESENT LOBBYING COSTS. 32% OF TOTAL $75,494 PAYMENT FOR 2011 DUES OWED TO ILLINOIS HOSPITAL ASSOCIATION REPRESENT LOBBYING COSTS. 26.13% OF TOTAL $21,334 PAYMENT FOR 2012 DUES OWED TO AMERICAN HOSPITAL ASSOCIATION REPRESENT LOBBYING COSTS. 27% OF TOTAL $77,758 PAYMENT FOR 2012 DUES OWED TO ILLINOIS HOSPITAL ASSOCIATION REPRESENT LOBBYING COSTS.

Schedule C (Form 990 or 990EZ) 2011

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE D
(Form 990)

Department of the Treasury
Internal Revenue Service

Supplemental Financial Statements

Complete if the organization answered "Yes," to Form 990,
Part IV, line 6, 7, 8, 9, 10, 11a, 11b, 11c, 11d, 11e, 11f, 12a, or 12b
SchDMd Bullet

Attach to Form 990. SchDMd Bullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization

MORRIS HOSPITAL

Employer identification number

36-2170155

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 .......

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? ............

Yes No

Did the organization inform all grantees, donors, and donor advisors in writing that grant funds can 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? ...................................

Yes No

Part II

Conservation Easements. Complete if the organization answered "Yes" to Form 990, Part IV, line 7.

Purpose(s) of conservation easements held by the organization (check all that apply).

Preservation of land for public use (e.g., recreation or education) Preservation of an historically important land area

Protection of natural habitat Preservation of a certified historic structure

Preservation of open space

Complete lines 2a through 2d if the organization held a qualified conservation contribution in the form of a conservation easement on the last day of the tax 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, and not on a historic structure listed in the National Register ....................	2d

Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during
the tax year SchDMd Bullet

Number of states where property subject to conservation easement is located SchDMd Bullet

Does the organization have a written policy regarding the periodic monitoring, inspection, handling of violations, and
enforcement of the conservation easements it holds? .............................

Yes No

Staff and volunteer hours devoted to monitoring, inspecting and enforcing conservation easements during the year SchDMd Bullet

Amount of expenses incurred in monitoring, inspecting, and enforcing conservation easements during the year
SchDMd Bullet

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)? ....................................

Yes No

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.

If the organization elected, as permitted under SFAS 116 (ASC 958), 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.

If the organization elected, as permitted under SFAS 116 (ASC 958), 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

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 (ASC 958), relating to these items:

Revenues included in Form 990, Part VIII, line 1 .......................... SchDMd Bullet

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) 2011

Page 2

Part III

Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued)

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):

Public exhibition

Loan or exchange programs

Scholarly research

Other

Preservation for future generations

Provide a description of the organization’s collections and explain how they further the organization’s exempt purpose in
Part XIV.

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?........

Yes No

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.

Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets not
included on Form 990, Part X? ....................................

Yes No

If "Yes," explain the arrangement in Part XIV and complete the following table:


c	Beginning balance .................................	1c
d	Additions during the year ..............................	1d
e	Distributions during the year .............................	1e
f	Ending balance ...................................	1f

Did the organization include an amount on Form 990, Part X, line 21? .....................

Yes No

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	Net investment earnings, gains, and losses ...
d	Grants or scholarships .....
e	Other expenditures for facilities and programs ........
f	Administrative expenses ....
g	End of year balance ......

Provide the estimated percentage of the year end balance (line 1g) held as:

Board designated or quasi-endowment SchDMd Bullet

Permanent endowment SchDMd Bullet

Temporarily restricted endowment SchDMd Bullet

The percentages in lines 2a, 2b, and 2c should equal 100%.

Are there endowment funds not in the possession of the organization that are held and administered for the
organization by:

Yes

(i) unrelated organizations ........................

3a(i)

(ii) related organizations ........................

3a(ii)

If "Yes" to 3a(ii), are the related organizations listed as required on Schedule R? .........

Describe in Part XIV the intended uses of the organization's endowment funds.

Part VI

Land, Buildings, and Equipment. See Form 990, Part X, line 10.

Description of property		(b)Cost or other basis (other)	(c) Accumulated depreciation	(d) Book value
1a	Land .................	6,550,097		6,550,097
b	Buildings ................	64,009,720	26,368,090	37,641,630
c	Leasehold improvements ............	1,585,734	95,431	1,490,303
d	Equipment ................	76,887,758	55,392,314	21,495,444
e	Other .................	8,153,478	3,942,376	4,211,102
Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10(c).).......				71,388,576

Schedule D (Form 990) 2011

Page 3

Part VII

InvestmentsOther 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) must equal Form 990, Part X, col. (B) line 12.)

Part VIII

InvestmentsProgram 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) must equal Form 990, Part X, col.(B) line 13.)

Part IX

Other Assets. See Form 990, Part X, line 15.

(a) Description				(b) Book value









Total. (Column (b) must equal Form 990, Part X, col.(B) line 15.)...........

Part X

Other Liabilities. See Form 990, Part X, line 25.

1.(a) Description of Liability		(b) Book value
Federal Income Taxes		0
EST 3RD-PARTY PAYOR SETTLEMENT		12,702,236
DUE TO MEDICAID		2,033,603
ASBESTOS ABATEMENT		67,064






Total. (Column (b) must equal Form 990, Part X, col.(B) line 25.)		14,802,903
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) 2011

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	117,363,692
2	Total expenses (Form 990, Part IX, column (A), line 25) .....................	2	113,168,020
3	Excess or (deficit) for the year. Subtract line 2 from line 1 .............	3	4,195,672
4	Net unrealized gains (losses) on investments ..........................	4	-184,487
5	Donated services and use of facilities .............................	5
6	Investment expenses ...................................	6
7	Prior period adjustments ..................................	7
8	Other (Describe in Part XIV.) .................................	8	-3,545,784
9	Total adjustments (net). Add lines 4 through 8 .........................	9	-3,730,271
10	Excess or (deficit) for the year per financial statements. Combine lines 3 and 9 .........	10	465,401

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	114,268,752
2	Amounts included on line 1 but not on Form 990, Part VIII, line 12:
a	Net unrealized gains on investments ..........	2a	-184,487
b	Donated services and use of facilities .........	2b
c	Recoveries of prior year grants ...........	2c
d	Other (Describe in Part XIV.) ............	2d	710,917
e	Add lines 2a through 2d .....................			2e	526,430
3	Subtract line 2e from line 1.....................			3	113,742,322
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	3,621,370
c	Add lines 4a and 4b.......................			4c	3,621,370
5	Total Revenue. Add lines 3 and 4c. (This must equal Form 990, Part I, line 12.) ......			5	117,363,692

Part XIII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return
1	Total expenses and losses per audited financial statements .............			1	113,766,350
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	598,330
e	Add lines 2a through 2d......................			2e	598,330
3	Subtract line 2e from line 1.....................			3	113,168,020
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 must equal Form 990, Part I, line 18.) ......			5	113,168,020

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
ASC SUBTOPIC 740-10		ASC Subtopic 740-10, Accounting for Uncertainty in Income Taxes-An Interpretation of FASB Statement No. 109, addresses the determination of how tax benefits claimed or expected to be claimed on a tax return should be recorded in the consolidated financial statements. Under ASC Subtopic 740-10, the Hospital must recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ASC Subtopic 740-10 also provides guidance on derecognition, classification, interest and penalties on income taxes, and accounting in interim periods and requires increased disclosures. As of December 31, 2011 and 2010, the Hospital does not have a liability for unrecognized tax benefits.
RECONCILIATION OF CHANGE IN NET ASSETS	SCHEDULE D, PART XI, LINE 8	CHANGE IN FAIR VALUE OF DERIVATIVE INSTRUMENTS (3,621,370) NET Asset transfers 70,412 OTHER CHANGE IN NET ASSETS 5,174 ------------ (3,545,784)
RECONCILIATION OF REVENUE	SCHEDULE D, PART XII, LINES 2D and 4B	other revenue on books not on return line 2d REVENUE ATTRIBUTABLE TO MORRIS HOSPITAL FOUNDATION 392,200 REVENUE ATTRIBUTABLE TO MORRIS HOSPITAL AUXILIARY 318,717 --------- 710,917 other revenue on return not on books line 4b change in fair value of derivative instruments 3,621,370
RECONCILIATION OF EXPENSES	SCHEDULE D, PART XIII, LINE 2D	EXPENSES ATTRIBUTABLE TO MORRIS HOSPITAL FOUNDATION 265,562 EXPENSES ATTRIBUTALBE TO MORRIS HOSPITAL AUXILIARY 332,768 --------- 598,330

Schedule D (Form 990) 2011

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE H (Form 990)

Department of the Treasury
Internal Revenue Service

Hospitals

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

2011

Open to Public Inspection

Name of the organization

MORRIS HOSPITAL

Employer identification number

36-2170155

Part I

Charity Care and Certain Other Community Benefits at Cost

Yes

Did the organization have a financial assistance policy during the tax year? If "No," skip to question 6a....

Yes

If "Yes," was it a written policy? .......................

Yes

If the organization had multiple hospital facilities, indicate which of the following best describes application of the financial assistance policy to its various hospital facilities during the tax year.

Applied uniformly to all hospital facilities Applied uniformly to most hospital facilities Generally tailored to individual hospital facilities

Answer the following based on the financial assistance eligibility criteria that applied to the largest number of the organization's patients during the tax year.

Did the organization use Federal Poverty Guidelines (FPG) to determine eligibility for providing free care?

If "Yes," indicate which of the following was the FPG family income limit for eligibility for free care:

Yes

100% 150% 200% Other

Did the organization use FPG to determine eligibility for providing discounted care? If "Yes," indicate which of the

following was the family income limit for eligibility for discounted care: ............

Yes

200% 250% 300% 350% 400% Other 600 %

If the organization did 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 used an asset test or other threshold, regardless of income, to determine eligibility for free or discounted care.

Did the organization's financial assistance policy that applied to the largest number of its patients during the tax year provide for free or discounted care to the "medically indigent"? ..............

Yes

Did the organization budget amounts for free or discounted care provided under its financial assistance policy during the tax year? ............................

Yes

If "Yes," did the organization's financial assistance expenses exceed the budgeted amount?......

Yes

If "Yes" to line 5b, as a result of budget considerations, was the organization unable to provide free or discountedcare to a patient who was eligibile for free or discounted care?...............

Did the organization prepare a community benefit report during the tax year?...........

Yes

If "Yes," did the organization make it available to the public? ...............

Yes

Complete the following table using the worksheets provided in the Schedule H instructions. Do not submit these worksheets with the Schedule H.

Financial Assistance and Certain Other Community Benefits at Cost

	(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 Financial Assistance at cost (from Worksheet 1) ..		4,613	3,045,674	0	3,045,674	2.880 %
b Medicaid (from Worksheet 3, column a) .....		29,468	13,240,637	8,353,429	4,887,208	4.620 %
c Costs of other means-tested government programs (from Worksheet 3, column b) .			36,950,618	29,696,149	7,254,469	6.860 %
dTotal Financial Assistance and Means-Tested Government Programs .....		34,081	53,236,929	38,049,578	15,187,351	14.360 %
Other Benefits e Community health improvement services and community benefit operations (from (Worksheet 4) ....	22	67,119	227,530	8,340	219,190	0.210 %
f Health professions education (from Worksheet 5) ..	6	5,338	506,376	0	506,376	0.480 %
g Subsidized health services (from Worksheet 6) ..	2	59	302,900	0	302,900	0.290 %
h Research (from Worksheet 7)		0	0	0	0	0 %
i Cash and in-kind contributions for community benefit (from Worksheet 8) ....	5	29,341	437,632	0	437,632	0.410 %
jTotal Other Benefits ...	35	101,857	1,474,438	8,340	1,466,098	1.390 %
kTotal. Add lines 7d and 7j. ..	35	135,938	54,711,367	38,057,918	16,653,449	15.750 %

For Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat. No. 50192T Schedule H (Form 990) 2011

Schedule H (Form 990) 2011

Page

Part II

Community Building Activities Complete this table if the organization conducted any community building activities during the tax year, and describe in Part VI how its community building activities promoted the health of the communities it serves.

		(a) Number of activities or programs (optional)	(b) Persons served (optional)	(c) Total community building expense	(e) Net community building expense
1	Physical improvements and housing			0	0
2	Economic development			0	0
3	Community support			0	0
4	Environmental improvements	1	11	6,140	6,140
5	Leadership development and training for community members			0	0
6	Coalition building			0	0
7	Community health improvement advocacy			0	0
8	Workforce development			0	0
9	Other	1	2	1,209	1,209
10	Total	2	13	7,349	7,349

Part III

Bad Debt, Medicare, & Collection Practices

Section A. Bad Debt Expense

Yes

Did the organization report bad debt expense in accordance with Heathcare Financial Management Association Statement No. 15? ..........................

Enter the amount of the organization's bad debt expense........

7,427,219

Enter the estimated amount of the organization's bad debt expense attributable to patients eligible under the organization's financial assistance policy .....

1,859,338

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

Enter total revenue received from Medicare (including DSH and IME).....

29,696,149

Enter Medicare allowable costs of care relating to payments on line 5.....

36,950,618

Subtract line 6 from line 5. This is the surplus or (shortfall)........

-7,254,469

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:

Cost accounting system Cost to charge ratio Other

Section C. Collection Practices

Did the organization have a written debt collection policy during the tax year? ..........

Yes

If "Yes," did the organization’s collection policy that applied to the largest number of its patients during the tax year contain provisions on the collection practices to be followed for patients who are known to qualify for financial assistance? Describe in Part VI.......................

Yes

Part IV

Management Companies and Joint Ventures

(see instructions)

(a) Name of entity	(b) Description of primary activity of entity	(c) Organization's profit % or stock ownership %	(e) Physicians' profit % or stock ownership %
1Deerpath Orthopedic	Surgery	45.600 %	54.400 %
2
3
4
5
6
7
8
9
10
11
12
13

Schedule H (Form 990) 2011

Page

Part VFacility Information

Section A. Hospital Facilities (list in order of size from largest to smallest) How many hospital facilities did the organization operate during the tax year?1 Name and address		Other (Describe)
1	MORRIS HOSPITAL 150 WEST HIGH STREET MORRIS,IL60450	X

Schedule H (Form 990) 2011

Page

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)

MORRIS HOSPITAL

Name of Hospital Facility:

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 2011)
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 the community health 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 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	Participation in the development of a community-wide community benefit plan
	d	Participation in the execution of a 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 Needs Assessment
	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 and 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	Explained eligibility criteria for financial assistance, and whether such assistance includes free or discounted care?		8	Yes
9	Used federal poverty guidelines (FPG) to determine eligibility for providing free care?...........		9	Yes
	If "Yes," indicate the FPG family income limit for eligibility for free care: 150.% If "No," explain in Part VI the criteria the hospital facility used.

Schedule H (Form 990) 2011

Page

Part VFacility Information (continued)

				Yes	No
10	Used FPG to determine eligibility for providing discounted care?.................		10	Yes
	If “Yes,” indicate the FPG family income limit for eligibility for discounted care: 600.% If "No," explain in Part VI the criteria the hospital facility used.
11	Explained the basis for calculating amounts charged to patients?.................		11	Yes
	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	Yes
13	Included measures to publicize the policy within the community served by the hospital facility?.......		13	Yes
	If “Yes,” indicate how the hospital facility publicized the policy (check all that apply):
	a	The policy was posted 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 (FAP) that explained actions the hospital facility may take upon non-payment?.......		14	Yes
15	Check all of the following collection actions against an individual that were permitted under the hospital facility's policies during the tax year before making reasonable efforts to determine the patient’s eligibility under the facility’s FAP:
	a	Reporting to credit agency
	b	Lawsuits
	c	Liens on residences
	d	Body attachments
	e	Other similar actions (describe in Part VI)
16	Did the hospital facility or an authorized third party perform any of the following actions during the tax year before making reasonable efforts to determine the patient’s eligibility under the facility’s FAP?..........		16		No
	If “Yes,” check all actions in which the hospital facility or a third party engaged:
	a	Reporting to credit agency
	b	Lawsuits
	c	Liens on residences
	d	Body attachments
	e	Other similar actions (describe in Part VI)
17	Indicate which efforts the hospital facility made before initiating any of the actions checked in line 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 patients were eligible for financial assistance under the hospital facility’s financial assistance policy
	e	Other (describe in Part VI)

Schedule H (Form 990) 2011

Page

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	Yes
	If “No,” indicate why:
	a	The hospital facility did not provide care for any emergency medical conditions
	b	The hospital facility’s policy was not in writing
	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)
Individuals Eligible for Financial Assistance
19	Indicate how the hospital facility determined, during the tax year, the maximum amounts that can be charged to FAP-eligible individuals for emergency or other medically necessary care.
	a	The hospital facility used its lowest negotiated commercial insurance rate when calculating the maximum amounts that can be charged
	b	The hospital facility used the average of it's three lowest negotiated commercial insurance rates when calculating the maximum amounts that can be charged
	c	The hospital facility used the Medicare rates when calculating the maximum amounts that can be charged
	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		No
	If “Yes,” explain in Part VI.
21	Did the hospital facility charge any of its FAP-eligible patients an amount equal to the gross charge for any services provided to that patient?...............................		21		No
	If “Yes,” explain in Part VI.

Schedule H (Form 990) 2011

Page

Part VFacility Information (continued)

Section C. Other Health Care Facilities That Are Not Licensed, Registered, or Similarly Recognized as a Hospital Facility (list in order of size, from largest to smallest) How many non-hospital health care facilities did the organization operate during the tax year?11
Name and address		Type of Facility (describe)
1	RADIATION THERAPY CENTER 1600 US RTE 6 MORRIS,IL60450	RADIATION & ONCOLOGY CLINIC
2	RIDGE ROAD CAMPUS 27240 W SAXONY DRIVE CHANNAHON,IL60410	IMMEDIATE CARE CTR
3	THE DIAGNOSTIC & REHABILITATIVE CENTER 100 WEST GORE RD MORRIS,IL60450	PHYSICAL THERAPY & IMMEDIATE CARE CTR
4	MINOOKA HEALTHCARE CENTER 27240 W SAXONY DRIVE CHANNAHON,IL60410	CLINIC
5	CHANNAHON HEALTHCARE CENTER 25259 REED STREET CHANNAHON,IL60408	CLINIC
6	MARSEILLES HEALTHCARE CENTER 580 SYCAMORE STREET MARSEILLES,IL61341	CLINIC
7	MORRIS HEALTHCARE CENTER 1345 EDWARDS STREET MORRIS,IL60450	CLINIC
8	BRAIDWOOD HEALTHCARE CENTER 389 E MAIN STREET BRAIDWOOD,IL60408	CLINIC
9	DWIGHT HEALTHCARE CENTER 101 S PRAIRIE AVENUE DWIGHT,IL60420	CLINIC
10	NEWARK HEALTHCARE CENTER 5 N JOHNSON STREET NEWARK,IL60541	CLINIC
11	GARDNER HEALTHCARE CENTER 409 N ROUTE 53 GARDNER,IL60424	CLINIC

Schedule H (Form 990) 2011

Page

Part VI

Supplemental Information

Complete this part to provide the following information.

1	Required descriptions. Provide the descriptions 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, 3, 4, 5c, 6i, 7, 9, 10, 11h, 13g, 15e, 16e, 17e, 18d, 19d, 20, and 21.
2	Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any 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
Schedule H, Part I	Line 3c, 6a, 7g, 7f, and 7	Line 3c Not applicable as the organization does follow federal poverty guidelines to determine eligibility for providing charity and discounted care to low-income uninsured and underinsured individuals. Line 6a The Hospital's community benefit report is available upon request. Line 7g The Hospital has not included any costs attributable to physician clinic as part of their subsidized health services. Line 7f The percent of charity care and certain other benefits at cost as a percent of total expense less bad debt is 15.75%. Line 7 Charity care is calculated by determining the total amount from patient billing that is written off to charity care charge codes or allowances. This amount matches the number that is reported on our year ending 2011 audited financial statements. The total charity care dollar amount is then reduced to cost by applying the Hospital's cost to charge ratio as calculated on IRS schedule H - worksheet 2.
Schedule H, Part II	Community Coalition and Collaborative Efforts	Throughout the year, Morris Hospital furthers its mission of improving the health of area residents by participating in a number of community-building activities in collaboration with other organizations. Morris Hospital participates in a number of health education programs and screenings throughout the year at the request of other organizations, including in 2011 the Environmental Fair sponsored by the University of Illinois Extension office, a senior health fair in Mazon sponsored by Quality Home Health, and health fairs sponsored by a number of other organizations including Minooka Junior High School, Grundy County Health Department, and Rivershores Nursing Home . Currently, Morris Hospital offers free senior exercise classes for the community at the Coal City Public Library, Mazon Grade School and the United Methodist Church in Minooka. The goal is to help seniors improve their mobility, flexibility and strength while providing socialization. The hospital's investment in staff salaries to teach the exercise classes was $57,927 in 2011. Each year, Morris Hospital partners with a number of area organizations to offer a Camp 911 safety program to area 4-6th graders. 2011 Camp 911 community partners included Morris Emergency Medical Services, Morris Fire Department, Grundy County Sheriff's Department, Morris Police Department, Elwood Fire Department, and Grundy County Chapter of the American Red Cross. Morris Hospital improves access to health services by providing community members free rides to medical appointments through its free Patient Transportation Service. This occurred 17,379 times in 2011. Rides are provided regardless of whether the medical provider is associated with Morris Hospital. The service was started in 1998 in response to an identified need for increased transportation service in the county. The service is available to any community member needing a ride and is especially used by seniors and low-income community members. In coordinating the rides, Morris Hospital works in cooperation with a number of other health providers when providing this service, including Silver Cross kidney dialysis, Fresenius Hemodialysis Clinic, ATI Physical Therapy, Morris Health & Rehab Center, Walnut Grove Nursing Home, Park Pointe Assisted Living, Heritage Manor nursing home, and Ortiz Eye & Hearing, Many of these riders have indicated that they have no other way to get to their appointment, such as Elias and Olenea from Braidwood who rely on the free service at least weekly, and sometimes even multiple times in the same week. "The folks with Morris Hospital's Patient Transportation Service are very wonderful to us. They are always willing to go out of their way to accommodate us," Elias says. Morris Hospital works in collaboration with Morris Mobile Meals by preparing daily, nutritious meals to people of all ages and economic circumstances, including children, the elderly, ill, disabled and homebound. The Nutrition Services staff at the Hospital cooks and prepares the meals daily, which are delivered by volunteers from Mobile Meals. Over 12,000 meals were prepared in 2011. While clients pay a nominal fee to Mobile Meals, Morris Hospital is reimbursed only for the cost of the food and related supplies so the meals can remain affordable for those who use the service, with Morris Hospital donating $78,338 in staff time. As part of a commitment to supporting our community's future healthcare providers, the Hospital devoted over $110,000 in staff time mentoring students studying to become nurses, paramedics, respiratory therapists, pharmacists, lab and radiology technologists through Joliet Junior College, College of DuPage, Illinois Valley Community College, Kankakee Community College, Lewis University, Midwestern University, Swedish American University, University of St. Francis, and Grundy Vocational Center. It is imperative that these students have a place to complete their critical training. By helping students train in preparation for entering the healthcare workforce, we are helping to improve access to healthcare services in the future. Becca, now a pharmacist at Morris Hospital, had her sights set on becoming a retail pharmacist when she was a student at Midwestern University. She says her experience at Morris Hospital gave her the opportunity to use so many of the things she learned in pharmacy school - especially working with patients. As a result of the experience, she ended up changing her mind about retail pharmacy and now works at Morris Hospital. Morris Hospital continues to provide financial donations at the request of a number of community organizations whose mission closely mirrors the Hospital's. The hospital's contributions help these organizations meet their goals of enhancing public health or relieving government burden. In 2011, over $39,000 was donated to Gardner South Wilmington H.S., Coal City H.S., Seneca H.S., and Morris H.S. for prom safety events; Big Brothers Big Sisters of Will and Grundy County for mentoring services; Dwight EMS, Minooka Fire Department, Morris Fire Department, and Gardner Fire Department for their children's safety program; Guardian Angel for its services for women needing shelter; Joliet Area Community Hospice and Grundy Community Hospice for their end of life and grief services; the American Cancer Society for cancer services and research; Running for Life for ovarian cancer awareness; and Shabbona Middle School for drug awareness education. At the request of area organizations, Morris Hospital provides personnel to offer their talents and expertise by serving as volunteer leaders on boards of directors. In 2011 this included the President & CEO serving on the Grundy Economic Development Council, the Vice President of Patient Care serving on the Will-Grundy Medical Clinic Board, the Vice President of Planning serving on the Grundy County Chamber of Commerce board, and the Manager of PACS serving on the United Way of Grundy County board. With substance abuse and mental health identified as top priorities on the Community Needs Assessment, the Hospital has initiated a contract with the local psychiatry group, Institute for Personal Development, to assure that the mental health needs of patients who present through the Morris Hospital Emergency Department are met. The arrangement is particularly critical at this time, when cuts by the State of Illinois have (eliminated/significantly reduced) mental health services through the county health department. Morris Hospital is a significant partner of the Will Grundy Medical Clinic, which provides free medical and dental care to qualifying residents. We demonstrate our support by providing a staff member to serve on the clinic's Board of Directors, free use of office space each month, volunteer time from Morris Hospital employed physicians, a $10,000 annual donation and support of other WGMC fundraising initiatives, and free hospital services to clients referred from WGMC. Morris Hospital has enthusiastically responded to the call for help from several area social service agencies, including PADS (Public Action to Deliver Shelter) for which Morris Hospital launders sheets, blankets and towels, in addition to providing pick up and delivery service, all free of charge. This comes at a time when the number of homeless in the community is at an all-time high due to housing foreclosure. Along with linens for PADS, Morris Hospital helped fund We Care's mobile food pantries in two communities in 2011, along with financially sponsoring "fill the pantry" to help stock the shelves at We Care's Morris pantry. The hospital's commitment to these projects also involves providing the manpower to unload, stock and distribute thousands of pounds of food through employee volunteerism. The Morris Hospital's Nutrition Services department also prepared meals for patrons of St. Vincent's Table six times a year in 2011, along with staff to serve the meals. In July 2011, Morris Hospital was an active participant in the Grundy County back-to-school fair for low income families. The event was spearheaded by the United Way of Grundy County and Grundy County Community Foundation. Morris Hospital provided physicians, nurses and support staff to give physicals and immunizations. All services were provided free of charge and would otherwise be the responsibility of the government funded Medicaid program. As a Resource Hospital within Illinois Region VII Emergency Medical Services (EMS), Morris Hospital is licensed to provide initial education and continuing training for area emergency medical technicians and paramedics, working side by side with local EMS providers to ensure the very best pre-hospital care for local communities. Morris Hospital also serves as the Resource Hospital for Coal City Fire, Minooka Fire, Morris EMS, Morris Fire, Morris City Dispatch, and Newark EMS, assuring that ambulances are appropriately stocked with supplies and equipment; that EMS person
Schedule H, Part III	Line 4, 8, and 9	Line 4 THE HOSPITAL BELIEVES THAT ITS CHARITY CARE AND THE RELATED COMMUNITY BENEFIT REALIZED FROM THAT CARE, IS NOT FULLY REFLECTED AT ITS TRUE VALUE BECAUSE IT DOESN'T CAPTURE ALL PATIENTS THAT COULD QUALIFY BUT FOR WHAT EVER RATIONALE, DO NOT APPLY FOR SUCH ASSISTANCE. IT IS LOGICAL THAT THE HOSPITAL'S BAD DEBT INCLUDES AN AMOUNT THAT COULD/SHOULD BE CONSIDERED AS CHARITY CARE IF THE APPLICATION FOR IT WAS COMPLETED. BAD DEBT EXPENSE AS REFLECTED ON THE HOSPITAL'S FINANCIAL STATEMENTS INCLUDES (1) WRITE-OFFS FROM THE PATENT BILLING SYSTEM (2) RECOVERIES OF PRIOR BAD DEBTS WRITTEN OFF AND (3) ADJUSTMENTS TO THE PROVISION OF ALLOWANCE FOR BAD DEBT EXPENSE. ADJUSTMENTS TO THE ALLOWANCE ACCOUNT IS NECESSARY TO ADEQUATELY PROVIDE AN ESTIMATE OF BAD DEBT EXPENSE RELATED TO CURRENT YEAR'S PATIENT ACCOUNTS RECEIVABLE. (THE ALLOWANCE ACCOUNt IS REFLECTED AS A CONTRA RECEIVABLE ACCOUNT ON THE HOSPITAL'S BALANCE SHEET). THIS ADJUSTMENT IS BASED ON THE MONITORING OF THE PRIOR YEAR'S RECEIVABLE HISTORICAL WRITE OFFS AND RECOVERIES TO USE AS AN ESTIMATE OF CURRENT YEAR EXPECTED EXPERIENCE. Bad debt expense attributable to charity care, which includes an allowance for charity care, was calculated using the cost to charge ratio on the IRS schedule H worksheet 2. Line 8 The Hospital continually strives to provide excellent patient care in the most cost effective fashion. Nonetheless, the Medicare program, in many cases, does not provide payment that covers the full cost of the care provided. Since it is the mission of the hospital to respond to community need, hospital management continually advocates for improved Medicare payment so that the cost of quality care to those patients that are not able to afford it is not compromised and is fairly subsidized by all payers. While this shortfall in Medicare payments is not classified as community benefit by the IRS, we nonetheless believe it is an important contribution made by the hospital to the health and well being of the community. Our mission calls us to serve all patients with the highest possible quality and efficiency, even if we are not paid fully for doing so. Line 9 Patients are given adequate time to apply for Financial Assistance before the patient account is sent to collection. We have also implemented Automated Charity Scoring for the uninsured that allows us to process Charity without an application. For any account already placed with an agency a patient can still apply for Financial Assistance and if they are qualified for charity an adjustment is made and the Hospital notifies the agency and the account is cancelled. schedule h, part v line 11h and 19d line 11h Morris Hospital uses an automated charity scoring system called connance. patients may qualify via this paro (patient account rank ordering) automated system. if scored as presumptive charity then account is written off under financial assistance without patient having to complete the financial worksheet. line 19d gross charges are reduced by an amount determined by a sliding scale that considers: income, family size and cost to charge ratio.
Schedule H, Part VI	Line 2, 3, 4, 5, 6 & 7	Line 2. Needs assessment. Over the past several years, Morris Hospital & Healthcare Centers has partnered with the Grundy County Health Department to conduct a Community Health Needs Assessment and Plan approximately every five years. The most current document is titled "Grundy County Community Analysis 2011." The previous plan served the time frame of 2005-2011. The 2011 Analysis was prepared by Health Systems Research for the Grundy County Health Department and IPlan Steering Committee, which Morris Hospital serves on along with other community agencies. The study was funded through a grant awarded by Morris Hospital Foundation to the Grundy County Health Department. The data sources used by Health Systems Research for the 2011 plan include the U.S. Census, Illinois Department of Public Health, Illinois Department of Employment Security, Illinois Uniform Crime Reporting Program, Illinois Hospital Association COMPdata, Illinois Youth Survey and National Center for Health Statistics. The report includes information on population descriptors and migration, housing, education and employment, income and poverty, crime and safety, births and deaths, and health status, behaviors and utilization. The completed analysis shows cancer, heart disease, stroke, accidents, respiratory disease and diabetes are the top causes of death in Grundy County. In fact, almost one-half of Grundy County deaths are due to heart disease or cancer. While the Steering Committee is currently working on developing a plan that addresses the health problems outlined in the analysis, Morris Hospital also uses this data in its own strategic planning process. For example, over the past several years, Morris Hospital has placed emphasis on cardiac services by adding angioplasty and stenting treatment capabilities, regularly offering a cardiac health risk assessment, working with EMS providers to add EKG transmitting capabilities from the field, and adding a support group for women with heart disease. The 2011 analysis did show a decrease in the heart disease death rate in Grundy County since the completion of the last community health needs assessment. The Grundy County Board of Health exercises authority over the IPlan Steering Committee and completion and execution of an action plan related to the 2011 analysis. Line 3. Patient education of eligibility for assistance. As stated in the Provision of Financial Assistance policy, Morris Hospital & Healthcare Centers is a not-for-profit, tax-exempt entity with a charitable mission of providing medically necessary health care services to residents of the City of Morris and the Hospital's defined service area, regardless of their financial status and ability to pay. Processes and procedures exist for identifying and assisting patients whose care may be provided without charge or at a discount commensurate with their financial resources and ability to pay. When possible, a Financial Service Representative conducts an interview with the patient, the guarantor, and /or his or her legal representative, prior to the admission or rendering of service. If an interview is not possible prior to the admission or rendering of service, the interview is conducted upon admission or as soon as possible thereafter. A Financial Representative is located within the Emergency Department, as this is the first point of care for a significant number of individuals qualifying for financial assistance. This makes the Financial Representative more easily accessible to patients. However, in the case of an emergency admission, the evaluation of payment alternatives does not take place until the required medical care has been provided. Before beginning the application process for financial assistance from Morris Hospital, the Financial Representative will first determine if the patient qualifies for medical assistance from other existing financial resources such as Medicare, Medicaid, KidCare, FamilyCare, Will-Grundy Medical Clinic, or other state and federal programs. While it is the intention to identify patients who qualify for financial assistance at the time of registration, there are instances when it is not possible to determine the need for financial assistance at that point. As part of a strategy to reach patients with this important information, signage regarding the availability of financial assistance is posted in both English and Spanish at various locations throughout the Hospital and the offsite locations. An overview of the financial assistance program is available on the Hospital's website, along with a downloadable copy of the financial assistance application. Information on financial assistance is also included in the Patient Guide that is given to all inpatient and observation patients. In addition, patient account correspondence sent to patients includes a statement regarding the availability of the financial assistance program and a contact number. Any patient whose payment is 30 days late and has not already been denied financial assistance is sent information on the financial assistance program. 4. Community information. Morris Hospital & Healthcare Centers serves an 18 zip code area encompassing 5 counties: Grundy, LaSalle, Kendall, Will and Livingston. At the time of the 2010 Census, the population for the Morris Hospital service area was 74,516. Communities served are primarily rural with a few that are more suburban. The majority population (89.9%) in the Morris Hospital service area is White/Caucasian, and 7.3% is Hispanic/Latino, making Grundy County less diverse when compared to the overall population of the United States. Children and youth ages 0-19 make up 29.9% of the population, and 10.9% of the population are seniors age 65 and older. This is a higher percentage of children and youth and a smaller percentage of seniors as compared to the state of Illinois. The average household income is $59,603. This exceeds the state in median household income. Poverty rates vary considerably by community through the Morris Hospital service area, ranging from less than 0% of families with children under 18 being at poverty level in in South Wilmington, to over 34% in Verona. Among the counties served by Morris Hospital, Grundy County has the highest unemployment rate at 11.8% . In 2011, 40.6% of the Hospital's patient revenue was from Medicare and 11.4% was from Medicaid. 5.7% of patient revenue came from self pay patients. There is one other hospital located in Morris Hospital's 18 zip code service area. Three other hospitals have ancillary or physician services located within the Morris Hospital service area. Line 5. Furthering our exempt purpose: In 2011, Morris Hospital invested over $1.4 million in community services. This is a dollar amount that grows annually, an indication of the organization's commitment to providing these vital services, particularly at a time when the organization's net income has been on a steady decline, from $10.2 million in 2005, to $3.4 million in 2010. Despite the decline in net income, the Morris Hospital governance and administration hasn't made cuts in services that improve health and quality of life. In fact, just the opposite is true with a continually robust offering of CPR classes, an expansion of diabetes education classes and support group, babysitter training, exercise classes, a 5K Run, and a safety camp for children to name a few examples. Senior exercise classes alone were a $57,927 investment for Morris Hospital in 2011, which pays instructors to teach a total of 15 weekly classes at four different locations in the Hospital service area. The class is intended to help individuals age 55 and older improve their strength, flexibility and mobility. Participation is free. Monthly support groups facilitated by staff from Morris Hospital are provided for women with heart disease, breastfeeding moms, individuals with diabetes, and those faced with a diagnosis of cancer. Support groups are also offered free of charge. With a goal of detecting disease at the earliest, most curable stages, Morris Hospital offers a number of educational programs and annual health screenings for heart disease, diabetes, hypertension, prostate cancer, skin cancer and colorectal cancer. All of these are offered free of charge with the exception of the Cardiac Health Risk Assessment, a comprehensive screening for heart disease that includes total cholesterol, glucose, height and weight, peripheral vascular, blood pressure and body fat. Participants are charged a nominal fee of $35 to help cover expenses. Morris Hospital is committed to retaining its status as a Level II trauma center in order to best serve the community. Salaries and other expenses to retain this certification cost the Hospital $292,200. An additional $392,519 was invested in Morris Hospital's role as a Resource Hospital for Emergency Medical Services. In this capacity, Morris Hospital provides education and training for emergency medical techn

Schedule H (Form 990) 2011

Additional Data

Software ID:
Software Version:

- TIN:

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

2011

Open to Public Inspection

Name of the organization

MORRIS HOSPITAL

Employer identification number

36-2170155

Part I

Questions Regarding Compensation

Yes

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.

First-class or charter travel Housing allowance or residence for personal use

Travel for companions Payments for business use of personal residence

Tax idemnification and gross-up payments Health or social club dues or initiation fees

Discretionary spending account Personal services (e.g., maid, chauffeur, chef)

If any of the boxes in line 1a are checked, did the organization follow a written policy regarding payment or reimbursement or provision of all the expenses described above? If "No," complete Part III to explain....

Yes

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? ....

Yes

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. Do not check any boxes for methods
used by a related organization to establish compensation of the CEO/Executive Director, but explain in Part III.

Compensation committee Written employment contract

Independent compensation consultant Compensation survey or study

Form 990 of other organizations Approval by the board or compensation committee

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:

Receive a severance payment or change-of-control payment? ...............

Participate in, or receive payment from, a supplemental nonqualified retirement plan? ........

Participate in, or receive payment from, an equity-based compensation arrangement? ........

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.

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:

The organization? ...........................

Any related organization? .........................

If "Yes," to line 5a or 5b, describe in Part III.

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:

The organization? ...........................

Any related organization? .........................

If "Yes," to line 6a or 6b, describe in Part III.

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 ............

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 Regulations section 53.4958-4(a)(3)? If "Yes," describe
in Part III .............................

If "Yes" to line 8, did the organization also follow the rebuttable presumption procedure described in Regulations section 53.4958-6(c)? .........................

For Privacy Act and Paperwork Reduction Act Notice, see the Intructions for Form 990

Cat. No. 50053T

Schedule J (Form 990) 2011

Page 2

Part II

Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees. Use duplicate copies if additional space is 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) for each listed individual must equal the total amount of Form 990, Part VII, Section A, line 1a, applicable column (D) and column (E) for that individual.

(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 as deferred in prior Form 990
(A) Name		(i) Base compensation	(ii) Bonus & incentive compensation	(iii) Other reportable compensation	(C) Retirement and other deferred compensation	(D) Nontaxable benefits	(E) Total of columns (B)(i)-(D)	(F) Compensation reported as deferred in prior Form 990
(1) THOMAS MEYER	(i) (ii)	169,546 0	0 0	30,842 0	5,845 0	7,586 0	213,819 0	0 0
(2) BEATRIZ SETRINI	(i) (ii)	295,128 0	0 0	40,705 0	7,838 0	5,999 0	349,670 0	0 0
(3) LLOYD FLATT	(i) (ii)	219,003 0	0 0	11,452 0	7,327 0	6,204 0	243,986 0	0 0
(4) RITA HART	(i) (ii)	150,010 0	48,374 0	42,162 0	5,611 0	9,959 0	256,116 0	0 0
(5) Mohan Gounder	(i) (ii)	235,019 0	0 0	29,017 0	6,043 0	1,609 0	271,688 0	0 0
(6) IAN BEST	(i) (ii)	150,093 0	76,474 0	29,831 0	4,096 0	6,440 0	266,934 0	0 0
(7) DENNIS MAHONEY	(i) (ii)	141,837 0	0 0	15,892 0	5,095 0	8,336 0	171,160 0	0 0
(8) CAROL HAVEL	(i) (ii)	145,384 0	0 0	12,933 0	5,172 0	5,158 0	168,647 0	0 0
(9) MARK STEADHAM	(i) (ii)	275,018 0	0 0	8,103 0	1,869 0	4,068 0	289,058 0	0 0

Schedule J (Form 990) 2011

Page 3

Part III

Supplemental Information

Complete this part to provide the information, explanation, or descriptions required for Part I, lines 1a, 1b, 3, 4c, 5a, 5b, 6a, 6b, 7, and 8. Also complete this part for any additional information.

Identifier	Return Reference	Explanation

Schedule J (Form 990) 2011

Additional Data

Software ID:
Software Version:

- TIN:

Schedule K
(Form 990)

Department of the Treasury
Internal Revenue Service

Supplemental Information on Tax Exempt Bonds

Complete if the organization answered "Yes" to Form 990, Part IV, line 24a. Provide descriptions,
explanations, and any additional information in Part VI.
SchKMediumBullet

Attach to Form 990. SchKMediumBullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public
Inspection

Name of the organization
MORRIS HOSPITAL

Employer identification number
36-2170155

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
(a) Issuer Name		(b) Issuer EIN	(c) CUSIP #	(d) Date Issued	(e) Issue Price	(f) Description of Purpose	Yes	No	Yes	No	Yes	No
A	VILLAGE OF CHANNAHON IL	36-2597211	159140AC6	05-28-2003	9,220,000	advanced refund for facilities	X			X		X
B	VILLAGE OF CHANNAHON IL	36-2597211	159140AD4	05-28-2003	5,670,000	construction of birthing ctr		X		X		X
C	VILLAGE OF CHANNAHON IL	36-2597211	159140AE2	05-28-2003	5,885,000	renovation of icu and med/sur		X		X		X
D	VILLAGE OF CHANNAHON IL	36-2597211	159140AF9	05-28-2003	6,445,000	infrastructure improvements		X		X		X
	VILLAGE OF CHANNAHON IL	36-2597211	159140AG7	04-15-2009	6,780,000	surgery/pacu, pacs sys and var		X		X		X
	VILLAGE OF CHANNAHON IL	36-2597211	159140AH5	04-15-2009	8,220,000	construction of med office bld		X		X		X

Part II

Proceeds

	A		B		C		D
	1 Amount of bonds retired . . . . . . . . . . . . .	2,575,000		890,000		780,000		840,000
2 Amount of bonds legally defeased . . . . . . . . . .	0		0		0		0
3 Total proceeds of issue . . . . . . . . . . . . .	9,220,000		5,670,000		5,885,000		6,445,000
4 Gross proceeds in reserve funds . . . . . . . .	739,125		286,598		297,516		325,921
5 Capitalized interest from proceeds . . . . . . . . . .	0		0		0		0
6 Proceeds in refunding escrows . . . . . . . . . . .	0		0		0		0
7 Issuance costs from proceeds . . . . . . . . . . .	112,877		42,525		44,137		48,338
8 Credit enhancement from proceeds . . . . . . . . . .	0		0		0		0
9 Working capital expenditures from proceeds . . . . . . .	0		0		0		0
10 Capital expenditures from proceeds . . . . . . . . . .	0		5,340,870		5,543,340		6,070,733
11 Other spent proceeds . . . . . . . . . . .	0		0		0		0
12 Other unspent proceeds . . . . . . . . . . .	0		0		0		0
13 Year of substantial completion . . . . . . . . . . .	2003		2004		2005		2004
	Yes	No	Yes	No	Yes	No	Yes	No
14 Were the bonds issued as part of a current refunding issue? . . . .		X		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) 2011

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 of bond-financed property? . . . . . . . . .		X		X		X		X
b If ‘Yes’ to line 3a, does the organization routinely engage bond counsel or other outside counsel to review any management or service contracts relating to the financed property? . . . . .
c Are there any research agreements that may result in private business use of bond-financed property? . . . . . . .		X		X		X		X
d If ‘Yes’ to line 3c, does the organization routinely engage bond counsel or other outside counsel to review any research agreements relating to the financed property? .
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 . .	0.00000%		0.00000%		0.00000%		0.00000%
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 . . . . . . .	0.00000%		0.00000%		0.00000%		0.00000%
6 Total of lines 4 and 5 . . .. . . . . . . . .	0.00000%		0.00000%		0.00000%		0.00000%
7 Does the bond issue meet the private security or payment test? . . .	X		X		X		X
8 Has the organization established written procedures to ensure that all nonqualified bonds of the issue are remediated in accordance with the requirements under Regulations sections 1.141-12 and 1.145-2?	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 qualified hedge with respect to the bond issue?	X		X		X		X
b Name of provider . . . . . . . .	goldman sachs		goldman sachs		goldman sachs
c Term of hedge . . . . . . . .	20.		29.		29.		29.
d Was the hedge superintegrated? . . . .		X		X		X		X
e Was a hedge terminated? . . . . .		X		X		X		X
4a Were gross proceeds invested in a guaranteed investment contract (GIC)? . . . . . .		X		X		X		X
b Name of provider . . . . . .	0		0		0		0
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
7 Has the organization established written procedures to monitor the requirements of section 148? . . .		X		X		X		X

Schedule K (Form 990) 2011

Page 3

Part V

Procedures To Undertake Corrective Action

Has the organization established written procedures to ensure that violations of federal tax requirements are timely identified and corrected through the voluntary closing agreement program if self-remediation is not available under applicable regulations? . . . . . . . . . . . . . . YesNo

Part VI

Supplemental Information

Complete this part to provide additional information for responses to questions on Schedule K (see instructions).

Identifier	Return Reference	Explanation

Schedule K (Form 990) 2011

Additional Data

Software ID:
Software Version:

- TIN:

Schedule K
(Form 990)

Department of the Treasury
Internal Revenue Service

Supplemental Information on Tax Exempt Bonds

Complete if the organization answered "Yes" to Form 990, Part IV, line 24a. Provide descriptions,
explanations, and any additional information in Part VI.
SchKMediumBullet

Attach to Form 990. SchKMediumBullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public
Inspection

Name of the organization
MORRIS HOSPITAL

Employer identification number
36-2170155

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
(a) Issuer Name		(b) Issuer EIN	(c) CUSIP #	(d) Date Issued	(e) Issue Price	(f) Description of Purpose	Yes	No	Yes	No	Yes	No
A	VILLAGE OF CHANNAHON IL	36-2597211	159140AC6	05-28-2003	9,220,000	advanced refund for facilities	X			X		X
B	VILLAGE OF CHANNAHON IL	36-2597211	159140AD4	05-28-2003	5,670,000	construction of birthing ctr		X		X		X
C	VILLAGE OF CHANNAHON IL	36-2597211	159140AE2	05-28-2003	5,885,000	renovation of icu and med/sur		X		X		X
D	VILLAGE OF CHANNAHON IL	36-2597211	159140AF9	05-28-2003	6,445,000	infrastructure improvements		X		X		X
	VILLAGE OF CHANNAHON IL	36-2597211	159140AG7	04-15-2009	6,780,000	surgery/pacu, pacs sys and var		X		X		X
	VILLAGE OF CHANNAHON IL	36-2597211	159140AH5	04-15-2009	8,220,000	construction of med office bld		X		X		X

Part II

Proceeds

	A		B		C		D
	1 Amount of bonds retired . . . . . . . . . . . . .	2,575,000		890,000		780,000		840,000
2 Amount of bonds legally defeased . . . . . . . . . .	0		0		0		0
3 Total proceeds of issue . . . . . . . . . . . . .	9,220,000		5,670,000		5,885,000		6,445,000
4 Gross proceeds in reserve funds . . . . . . . .	739,125		286,598		297,516		325,921
5 Capitalized interest from proceeds . . . . . . . . . .	0		0		0		0
6 Proceeds in refunding escrows . . . . . . . . . . .	0		0		0		0
7 Issuance costs from proceeds . . . . . . . . . . .	112,877		42,525		44,137		48,338
8 Credit enhancement from proceeds . . . . . . . . . .	0		0		0		0
9 Working capital expenditures from proceeds . . . . . . .	0		0		0		0
10 Capital expenditures from proceeds . . . . . . . . . .	0		5,340,870		5,543,340		6,070,733
11 Other spent proceeds . . . . . . . . . . .	0		0		0		0
12 Other unspent proceeds . . . . . . . . . . .	0		0		0		0
13 Year of substantial completion . . . . . . . . . . .	2003		2004		2005		2004
	Yes	No	Yes	No	Yes	No	Yes	No
14 Were the bonds issued as part of a current refunding issue? . . . .		X		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) 2011

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 of bond-financed property? . . . . . . . . .		X		X		X		X
b If ‘Yes’ to line 3a, does the organization routinely engage bond counsel or other outside counsel to review any management or service contracts relating to the financed property? . . . . .
c Are there any research agreements that may result in private business use of bond-financed property? . . . . . . .		X		X		X		X
d If ‘Yes’ to line 3c, does the organization routinely engage bond counsel or other outside counsel to review any research agreements relating to the financed property? .
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 . .	0.00000%		0.00000%		0.00000%		0.00000%
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 . . . . . . .	0.00000%		0.00000%		0.00000%		0.00000%
6 Total of lines 4 and 5 . . .. . . . . . . . .	0.00000%		0.00000%		0.00000%		0.00000%
7 Does the bond issue meet the private security or payment test? . . .	X		X		X		X
8 Has the organization established written procedures to ensure that all nonqualified bonds of the issue are remediated in accordance with the requirements under Regulations sections 1.141-12 and 1.145-2?	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 qualified hedge with respect to the bond issue?	X		X		X		X
b Name of provider . . . . . . . .	goldman sachs		goldman sachs		goldman sachs
c Term of hedge . . . . . . . .	20.		29.		29.		29.
d Was the hedge superintegrated? . . . .		X		X		X		X
e Was a hedge terminated? . . . . .		X		X		X		X
4a Were gross proceeds invested in a guaranteed investment contract (GIC)? . . . . . .		X		X		X		X
b Name of provider . . . . . .	0		0		0		0
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
7 Has the organization established written procedures to monitor the requirements of section 148? . . .		X		X		X		X

Schedule K (Form 990) 2011

Page 3

Part V

Procedures To Undertake Corrective Action

Part VI

Supplemental Information

Complete this part to provide additional information for responses to questions on Schedule K (see instructions).

Identifier	Return Reference	Explanation

Schedule K (Form 990) 2011

Additional Data

Software ID:
Software Version:

- TIN:

Schedule L
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Transactions with Interested Persons

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. MediumBullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization

MORRIS HOSPITAL

Employer identification number

36-2170155

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?
1(a) Name of disqualified person	(b) Description of transaction	Yes	No

Enter the amount of tax imposed on the organization managers or disqualified persons during the year under section 4958. ......................... Bullet Image

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?
(a) Name of interested person and purpose	To	From	(c)Original principal amount	(d)Balance due	Yes	No	Yes	No	Yes	No






Total ............... $

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) 2011

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?
(a) Name of interested person		(c) Amount of transaction	(d) Description of transaction	Yes	No
(1) Barry Narvick	Director	25,118	SEE PART V	Yes

Part V

Supplemental Information

Complete this part to provide additional information for responses to questions on Schedule L (see instructions).

Identifier	Return Reference	Explanation
BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS	SCHEDULE L, PART IV, LINE 1	This amount is the total amount of business that the Hospital had with "Narvick Bros. Lumber Co." in 2011 which was for various repairs/materials. The transactions are at "arms length" (FMV), these transactions are approved in advance via purchase requisition/purchase order process.

Schedule L (Form 990 or 990-EZ) 2011

Additional Data

Software ID:
Software Version:

- TIN:

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

2011

Open to Public
Inspection

Name of the organization

MORRIS HOSPITAL

Employer identification number

36-2170155

Identifier	Return Reference	Explanation
2011 Report	Form 990, page 2, Part III, Program Service Accomplishments	In 2011, Morris Hospital upgraded its 11-year-old MRI system with a $1.3 million 1.5T Vantage Tita(TM). One of the key enhancements from a patient perspective is the bore opening, which is 18 percent larger than other 1.5T systems. The new system also reduces noise levels by 90 percent through its Pianissim(TM) technology. More room and less noise makes it easier for patients to relax so they can remain motionless during their exam. The new system also gives Morris Hospital the ability to offer advanced vascular studies and breast MRI. Expansion of primary care services in outlying communities remains a priority. In June 2011, a community open house was held to celebrate the completion of an 800 square foot addition to the Marseilles Healthcare Center that added three exam rooms to better accommodate the growing number of patient visits. The first nurse practitioner was hired for the primary care office setting, a model that will be continued in 2012. The first nurse practitioner is sharing her time between the Marseilles and Newark Healthcare Centers, thereby allowing Morris Hospital to expand access to care in both of these rural communities. A laboratory draw site opened in Coal City in October. Specimens collected in Coal City are brought to the accredited laboratory at Morris Hospital for testing. This is a convenient alternative for individuals living in Coal City and surrounding communities who need lab testing. During 2011, 6 new physicians joined the medical staff at Morris Hospital in the following specialties: radiation oncology, family practice, obstetrics/gynecology, radiology and nephrology. There are 200 physicians on the Morris Hospital medical staff representing 38 medical specialties. Morris Hospital & Healthcare Centers was awarded its first accreditation from The Healthcare Facilities Accreditation Program (HFAP) based on results of an extensive and objective onsite review that took place in February 2011. During the three day, unannounced survey, three HFAP surveyors conducted an intense review of policies and practices to verify Morris Hospital & Healthcare Centers' compliance with the approximately 1,000 standards set by the Centers for Medicare and Medicaid Services (CMS). They toured the hospital and several of its satellite facilities, reviewed documents, files and charts, and conducted interviews with patients, physicians and staff. Morris Hospital & Healthcare Centers' laboratories at the Diagnostic & Rehabilitative Center on Gore Road in Morris and the Ridge Road Campus in Channahon were awarded first time accreditations by the Accreditation Committee of the College of American Pathologists (CAP). In addition, a voluntary, three-year re-accreditation was received from the Intersocietal Commission for the Accreditation of Echocardiography Laboratories (ICAEL) for adult transthoracic and adult stress echocardiography. With a goal of reducing preventable re-admissions, Morris Hospital voluntarily enrolled in Project RED under the guidance of Joint Commission Resources. The initial focus was on standardizing the discharge process for patients with congestive heart failure, and then applying the concept to patients with other diagnoses. In 2011, Morris Hospital embarked on a Workforce Productivity Improvement Project that involved an extensive review of data along with interviews. The outcome lead to a savings opportunity in excess of $3 million by reducing avoidable patient days and delays in care, modifying staff scheduling and time and attendance policies, and identifying improvements in productivity. This is an ongoing initiative aimed at reducing expenses. For the first time in Morris Hospital's history, the entire patient medical record was made available electronically and accessible through one system by transitioning to McKesson's Horizon Patient Folder, a system that captures, indexes, stores and retrieves patient information, giving physicians and staff access to review, analyze, code and complete electronic charts in the electronic medical record system. This came on the heels of an upgrade to Meditech 5.6. On a regional level, Morris Hospital made a commitment to join the MetroChicago Health Information Exchange system which will allow health information to flow with patients throughout the metropolitan Chicago area no matter where care is received. In 2011, Morris Hospital was honored with 11 National Excellence in Healthcare Awards from Professional Research Consultants for excellence in patient satisfaction. Succession planning is a top priority at Morris Hospital. In 2011, an assistant vice president of patient care services was added to the senior leadership team, along with other changes made to the organizational chart to position the organization for the future. Guided by a mission of improving the health of area residents, Morris Hospital continues to offer numerous health education classes, support groups, health screenings and exercise programs on an ongoing basis throughout the year. In 2011, a dedicated diabetes educator was added to the staff, offering free one-on-one diabetes education and counseling, along with monthly education programs and support groups. Just 15 months after becoming a Resource Hospital for Emergency Medical Services, Morris Hospital graduated 30 students from its first college accredited EMT-Paramedic course in partnership with Joliet Junior College. The students had been attending class at the hospital twice weekly since August 2010, in addition to spending one weekend a month in practical experience for a total of 1,000 training hours. The goal is to increase access to paramedic training in order to expand the paramedic population in the local community. This helps assure excellent pre-hospital care. Morris Hospital invested $392,519 in its EMS/Resource Hospital program in 2011. Morris Hospital provided community members free rides to medical appointments 17,379 times through its free Patient Transportation Service in 2011. Many riders have no other way to get to their doctor's appointment, physical therapy session or kidney dialysis. While the fleet of six buses has been donated by the Morris Hospital Foundation, the 2011 operating cost to the hospital for salaries, gasoline and vehicle upkeep totaled $307,341. With a team of more than 1,600 employees, physicians and Auxilians, the 89-bed Morris Hospital today serves patients in more than 18 communities and provides numerous services including a Level II trauma center, radiation therapy center, 12-bed state-of-the-art intensive care unit, immediate care services at two locations, and a dedicated pediatric unit. Morris Hospital also operates Healthcare Centers in Braidwood, Channahon, Dwight, Gardner, Marseilles, Morris and Newark.
GOVERNING BODY AND MANAGEMENT	REGARDING PART VI, SECTION A	QUESTION 8A MINUTES AND AGENDA OF THE FULL BOARD OF MORRIS HOSPITAL ARE MAINTAINED. THE FULL BOARD MEETS EVERY MONTH. MEETING DATES APPLICABLE TO 2011 ARE AS FOLLOWS: 01/24/2011 02/28/2011 03/28/2011 04/25/2011 05/23/2011 06/28/2011 07/25/2011 08/22/2011 09/26/2011 10/24/2011 11/28/2011 12/19/2011 PART VI, SECTION A, QUESTIONS 8B MINUTES AND AGENDA OF THE FOLLOWING COMMITTEES OF MORRIS HOSPITAL HAVE BEEN AND ARE MAINTAINED. FINANCE COMMITTEE 02/28/2011 03/21/2011 03/28/2011 04/18/2011 05/16/2011 06/28/2011 07/18/2011 08/22/2011 09/26/2011 10/17/2011 11/21/2011 12/19/2011 EXECUTIVE COMMITTEE 01/03/2011 03/10/2011 03/22/2011 05/03/2011 05/04/2011 06/24/2011 09/08/2011 10/12/2011 PI/QUALITY COMMITTEE 01/20/2011 02/17/2011 04/21/2011 05/20/2011 06/16/2011 07/15/2011 08/18/2011 10/17/2011 11/17/2011 12/17/2011 LONG RANGE PLANNING COMMITTEE 04/22/2011 NOMINATING COMMITTEE 03/16/2011 11/22/2011 RECRUITMENT/RETENTION COMMITTEE 01/26/2011 03/17/2011 04/28/2011 07/11/2011 09/01/2011 10/26/2011 11/29/2011 COMPENSATION/SUCCESSION/PHYSICIAN COMMITTEE 01/26/2011 04/11/2011 06/24/2011
POLICIES	PART VI, SECTION B	QUESTION 11B A DRAFT OF THE 990, AS PREPARED BY KPMG, WAS REVIEWED BY MEMBERS OF THE FINANCE COMMITTEE ALONG WITH THE CFO AND ACCOUNTING MANAGER OF MORRIS HOSPITAL. A JOINT SPECIAL BOARD MEETING OF THE MORRIS HOSPITAL, MORRIS HOSPITAL FOUNDATION AND MORRIS HOSPITAL AUXILIARY BOARDS WAS HELD TO PROVIDE A FORMAL PRESENTATION OF THE FINAL 990'S OF EACH RESPECTIVE ORGANIZATION PRIOR TO FILING. PART VI, SECTION B, QUESTION #12B DIRECTORS, OFFICERS, MEMBERS OF THE BOARD, KEY AGENTS, AND KEY EMPLOYEES ARE REQUIRED TO COMPLETE A STATEMENT WHICH REQUIRES THE FOLLOWING: (1) DISCLOSE FOR IN THE PRIOR TWO YEARS, ANY PRODUCTS OR SERVICES THAT HE/SHE MAY HAVE PROVIDED PERSONALLY TO MORRIS HOSPITAL AND HEALTHCARE CENTERS OR ANY OF ITS AFFILIATES OTHER THAN IN HIS/HER CAPACITY AS A DIRECTOR, COMMITTEE MEMBER, OFFICER, OR OTHER SENIOR MANAGEMENT POSITION. (2) DISCLOSE FOR IN THE PRIOR TWO YEARS, ANY DIRECT OR INDIRECT OWNERSHIP INTEREST THAT HE/SHE MAY HAVE IN ANY COMPANY WITH WHICH MORRIS HOSPITAL AND HEALTHCARE CENTERS OR ANY OF ITS AFFILIATES CONDUCTS BUSINESS, INCLUDING THE PURCHASE OR SALE OF PRODUCTS AND SERVICES (EXCEPT OWNERSHIP OF LESS THAN 1% INTEREST IN A PUBLICLY TRADED COMPANY). (3) DISCLOSE FOR IN THE PRIOR TWO YEARS, WHETHER HE/SHE MAY HAVE SERVED AS A BOARD MEMBER, EMPLOYEE, CONSULTANT OR IN ANY OTHER CAPACITY TO A BUSINESS OR COMPANY THAT PROVIDES PRODUCTS OR SERVICES TO MORRIS HOSPITAL AND HEALTHCARE CENTERS OR ANY OF ITS AFFILIATES. (4) DISCLOSE FOR IN THE PRIOR TWO YEARS, WHETHER HE/SHE HAS BEEN INVOLVED IN ANY LEGAL OR ADMINISTRATIVE PROCEEDING, REAL ESTATE OR OTHER BUSINESS TRANSACTION, INCLUDING THE PURCHASE OF GOODS OR SERVICES, INVOLVING MORRIS HOSPITAL AND HEALTHCARE CENTERS OR ANY OF ITS AFFILIATES EITHER PERSONALLY OR THROUGH A COMPANY IN WHICH HE/SHE HAS A DIRECT OR INDIRECT OWNERSHIP OR FOR WHICH HE/SHE HAS SERVED AS A BOARD MEMBER, EMPLOYEE, CONSULTANT OR IN ANY OTHER CAPACITY. (5) DISCLOSE FOR IN THE PRIOR TWO YEARS, WHETHER HE/SHE HAS SERVED AS A BOARD MEMBER, EMPLOYEE, CONSULTANT OR IN ANY OTHER CAPACITY WITH RESPECT TO A BUSINESS OR COMPANY THAT PROVIDES SERVICES IN COMPETITION WITH MORRIS HOSPITAL AND HEALTHCARE CENTERS OR ANY OF ITS AFFILIATES. COMPETITION MEANING PROVIDING A PRODUCT OR SERVICE WHICH IS THE SAME AS (MATERIALLY SIMILIAR TO) A PRODUCT OR SERVICE PROVIDED BY MORRIS HOSPITAL AND HEALTHCARE CENTERS OR ANY OF ITS AFFILIATES SAME GEOGRAPHIC AREA, OR TO PATIENTS IN THE SAME GEOGRAHPIC AREA. (6) DISCLOSE FOR IN THE PRIOR TWO YEARS, WHETHER HE/SHE HAS HAD ANY EMPLOYMENT, APPOINTMENT OR OTHER RELATIONSHIP WITH A GOVERNMENT ENTITY HAVING REGULATORY AUTHORITY OVER A MORRIS HOSPITAL AND HEALTHCARE CENTERS OR ANY OF ITS AFFILIATES. (7) DISCLOSE FOR IN THE PRIOR TWO YEARS, WHETHER TO THE BEST OF HIS/HER KNOWLEDGE, ANY MEMBER OF HIS/HER IMMEDIATE FAMILY HAVE PERSONALLY, OR COMPANY WITH WHICH THAT INDIVIDUAL HAD AN OWNERSHIP, EMPLOYMENT, CONSULTING OR BOARD RELATIONSHIP, PROVIDED GOODS OR SERVICES TO, OR OTHERWISE CONDUCTED A BUSINESS RELATIONSHIP WITH MORRIS HOSPITAL AND HEALTHCARE CENTERS OR ANY OF ITS AFFILIATES (8) DISCLOSE FOR IN THE PRIOR YEAR, WHETHER HE/SHE HAS HAD ANY MEMBER OF HIS/HER IMMEDIATE FAMILY EMPLOYED BY MORRIS HOSPITAL AND HEALTHCARE CENTERS OR ANY OF ITS AFFILIATES. (IMMEDIATE FAMILY MEMBERS WOULD INCLUDE SPOUSE, ANCESTORS, CHILDREN, GRANDCHILDREN, GREAT-GRAND CHILDREN, SIBLINGS (WHETHERBY WHOLE OR HALF-BLOOD), AND THE SPOUSES OF CHILDREN, GRANDCHILDREN, GREAT-GRAND CHILDREN AND SIBLINGS). (9) DISCLOSE FOR IN THE PRIOR TWO YEARS, WHETHER HE/SHE HAS BEEN AWARE OF ANY OTHER EVENTS, TRANSACTIONS, ARRANGEMENTS OR OTHER SITUATIONS THAT HAVE OCCURRED OR THAT MAY OCCUR IN THE FUTURE, INCLUDING PENDING OR CONTEMPLATED TRANSACTIONS OR ARRANGEMENTS, THAT COULD BE PERCEIVED AS A CONFLICT OR DUALITY OF INTEREST OR THAT BELIEVE SHOULD BE EXAMINED BY MORRIS HOPSITAL AND HEALTHCARE CENTER'S BOARD OF DIRECTORS IN ACCORDANCE WITH THE TERMS AND INTENT OF THE MORRIS HOSPITAL AND HEALTHCARE CENTER'S CONFLICTS AND DUALITIES OF INTEREST POLICY. PART VI, SECTION B, QUESTION #12C PERIODIC REVIEWS ARE MADE THAT AT A MINIMUM INCLUDE: (1) WHETHER COMPENSATION ARRANGEMENTS AND BENEFITS ARE REASONABLE AND ARE THE RESULT OF ARM'S LENGTH BARGAINING (2) WHETHER ACQUISTIONS OF PHYSICIAN PRACTICES AND OTHER PROVIDER SERVICES RESULT IN INUREMENT OR IMPERMISSIBLE PRIVATE BENEFIT (3) WHETHER PARTNERSHIP AND JOINT VENTURE ARRANGEMENTS AND ARRANGEMENTS WITH MANAGEMENT SERVICE ORGANIZATIONS AND PHYSICIAN HOSPITAL ORGANIZATIONS CONFORM TO WRITTEN POLICIES, ARE PROPERLY RECORDED, REFLECT REASONABLE PAYMENTS FOR GOODS AND SERVICES, FURTHER THE CORPORATION'S CHARITABLE PURPOSES AND DO NOT RESULT IN INUREMENT OR IMPERMISSIBLE PRIVATE BENEFIT (4) WHETHER AGREEMENTS TO PROVIDE HEALTHCARE AND AGREEMENTS WITH OTHER HEALTH CARE PROVIDERS, EMPLOYEES AND THIRD PARTY PAYORS FURTHER CORPORATION'S CHARITABLE PURPOSES AND DO NOT RESULT IN INUREMENT OR IMPERMISSIBLE PRIVATE BENEFIT PART VI, SECTION B, QUESTION #15A & B THE HOSPITAL HAS A COMPENSATION COMMITTEE WHICH MEETS SEVERAL TIMES PER YEAR THAT WITH THE ASSISTANCE OF INTERNAL SOURCES (HUMAN RESOURCES) AND EXTERNAL ADVISORS; ASSESSES AND EVALUATES THE APPROPRIATNESS OF THE COMPENSATION AND BENEFITS OF UPPER MANAGEMENT WHICH INCLUDES CEO, CFO AND OTHER TOP MANAGEMENT OFFICALS WHICH INCLUDES KEY EMPLOYEES. DISCLOSURE PART VI, SECTION C QUESTION 19 THE DOCUMENTS ARE MADE AVAILABLE UPON REQUEST.
RECONCILIATION OF NET ASSETS	PART XI, LINE 5	NET UNREALIZED GAINS ON INVESTMENTS (184,487) CHANGE IN FAIR VALUE OF DERIVATIVE INSTRUMENTS (3,621,370) NET ASSET TRANSFERS 70,412 other changes in net assets 5,174 ----------- (3,730,271) ===========

For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.

Cat. No. 51056K

Schedule O (Form 990 or 990-EZ) 2011

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE R
(Form 990)

Department of the Treasury
Internal Revenue Service

Related Organizations and Unrelated Partnerships

Complete if the organization answered "Yes" to Form 990, Part IV, line 33, 34, 35, 36, or 37.
MediumBullet

Attach to Form 990. MediumBullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization

MORRIS HOSPITAL

Employer identification number

36-2170155

Part I

Identification of Disregarded Entities (Complete if the organization answered "Yes" on Form 990, Part IV, line 33.)

(a) Name, address, and EIN of disregarded entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Total income	(e) End-of-year assets	(f) Direct controlling entity

Part II

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

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Exempt Code section	(e) Public charity status (if section 501(c)(3))	(f) Direct controlling entity	(g) Section 512(b)(13) controlled organization
(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	Yes	No
(1) MORRIS HOSPITAL FOUNDATION 150 WEST HIGH STREET MORRIS,IL60450 36-3939156	SUPPORT HOSP	IL	501(c)(3)	7	NA	Yes
(2) MORRIS HOSPITAL AUXILIARY 150 WEST HIGH STREET MORRIS,IL60450 20-8026364	SUPPORT HOSP	IL	501(c)(3)	7	NA	Yes

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 50135Y

Schedule R (Form 990) 2011

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 VUBI amount in box 20 of Schedule K-1 (Form 1065)	(j) General or managing partner?		(k) Percentage ownership
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity		(f) Share of total income	(g) Share of end-of-year assets	Yes	No	(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No
(1) DEERPATH ORTHOPEDIC SURGICAL CENTER LLC 1051 WEST US RET 6 SUITE 100 MORRIS,IL60450 80-0033465	SURGERY	IL	NA	N/A	646,879	659,978		No	0		No	45.600 %

Part IV

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

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(e) Type of entity (C corp, S corp, or trust)	(f) Share of total income	(g) Share of end-of-year assets	(h) Percentage ownership

Schedule R (Form 990) 2011

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

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 . . . . . . . . . . . . . . . . . . . . . . .

b Gift, grant, or capital contribution to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

c Gift, grant, or capital contribution from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

d Loans or loan guarantees to or for related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

e Loans or loan guarantees by related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

f Sale of assets to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

g Purchase of assets from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

h Exchange of assets with related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

i Lease of facilities, equipment, or other assets to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

j Lease of facilities, equipment, or other assets from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . .

k Performance of services or membership or fundraising solicitations for related organization(s) . . . . . . . . . . . . . . . . . . . .

l Performance of services or membership or fundraising solicitations by related organization(s) . . . . . . . . . . . . . . . . . . . .

m Sharing of facilities, equipment, mailing lists, or other assets with related organization(s) . . . . . . . . . . . . . . . . . . . . .

n Sharing of paid employees with related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

o Reimbursement paid to related organization(s) for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

p Reimbursement paid by related organization(s) for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

q Other transfer of cash or property to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

r Other transfer of cash or property from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

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) DEERPATH ORTHOPEDIC SURGICAL CENTER LLC	R	648,921	FMV
(1)
(2)
(3)
(4)
(5)
(6)

Schedule R (Form 990) 2011

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)	(e) Are all partners section 501(c)(3) organizations?		(f) Share of total income	(g) Share of end-of-year assets	(h) Disproprtionate allocations?		(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	(j) General or managing partner?
(a) Name, address, and EIN of entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	Yes	No	(f) Share of total income	(g) Share of end-of-year assets	Yes	No	(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No

Schedule R (Form 990) 2011

Page 5

Part VII

Supplemental Information

Complete this part to provide additional information for responses to questions on Schedule R (see instructions).

Identifier	Return Reference	Explanation

Additional Data

Software ID:
Software Version:

1	Briefly describe the organization’s mission or most significant activities: MORRIS HOSPITAL & HEALTHCARE CENTERS EXIST TO PROVIDE HEALTHCARE IN A GENERAL SHORT TERM HOSPITAL IN ADDITION TO DELIVERING PRIMARY HEALTHCARE SERVICES IN THE OUTPATIENT SETTING.
2	Check this box
3	Number of voting members of the governing body (Part VI, line 1a).....	3	11
4	Number of independent voting members of the governing body (Part VI, line 1b) ....	4	10
5	Total number of individuals employed in calendar year 2011 (Part V, line 2a) ...	5	929
6	Total number of volunteers (estimate if necessary) ....	6	575
7a	Total unrelated business revenue from Part VIII, column (C), line 12 ..	7a	35,243
b	Net unrelated business taxable income from Form 990-T, line 34 ..	7b	-28,252

		Prior Year	Current Year
8	Contributions and grants (Part VIII, line 1h) .........	3,909	14,081
9	Program service revenue (Part VIII, line 2g) .........	114,106,186	115,049,546
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	2,250,587	1,384,875
11	Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)	709,155	915,190
12	Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)...................	117,069,837	117,363,692
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...	0	0
14	Benefits paid to or for members (Part IX, column (A), line 4).....	0	0
15	Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10)	58,922,552	54,538,842
16a	Professional fundraising fees (Part IX, column (A), line 11e).....	907	418
b	Total fundraising expenses (Part IX, column (D), line 25) 418
17	Other expenses (Part IX, column (A), lines 11a–11d, 11f–24f)....	53,332,758	58,628,760
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	112,256,217	113,168,020
19	Revenue less expenses. Subtract line 18 from line 12.......	4,813,620	4,195,672
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16).............	156,659,986	159,550,592
21	Total liabilities (Part X, line 26).............	66,603,787	69,028,992
22	Net assets or fund balances. Subtract line 21 from line 20.....	90,056,199	90,521,600

Sign Here

	Signature of officer	Date

	Type or print name and title.


4a	(Code: ) (Expenses $ 98,455,814 including grants of $ ) (Revenue $ 115,049,546 )
	SHORT TERM GENERAL AND PRIMARY HEALTH CARE FOR GRUNDY COUNTY AND THE SURROUNDING AREA. SEE ALSO SCHEDULE O "2011 REPORT."

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 expenses$ 98,455,814

(A) Name and Title	(B) Average hours per week (describe hours for related organizations in Schedule O)		(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
(A) Name and Title
(18) BEATRIZ SETRINI PHYSICIAN	40.0	X	335,833	0	13,085
(19) LLOYD FLATT PHYSICIAN	40.0	X	230,455	0	12,476
(20) RITA HART PHYSICIAN	40.0	X	240,546	0	13,960
(21) Mohan Gounder PHYSICIAN	40.0	X	264,036	0	6,860
(22) IAN BEST PHYSICIAN	40.0	X	256,398	0	10,132

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)............	2,126,823	0	93,425

				(A) Total revenue	(B) Related or exempt function revenue	(C) Unrelated business revenue	(D) Revenue excluded from tax under sections 512, 513, or 514
1a	Federated campaigns..1a
b	Membership dues....1b
c	Fundraising events....1c
d	Related organizations...1d
e	Government grants (contributions)1e

f	All other contributions, gifts, grants, and similar amounts not included above1f		14,081
g	Noncash contributions included in lines 1a-1f:$
h	Total. Add lines 1a-1f.......			14,081
			Business Code
2a	NET PATIENT REVENUE		621,500	115,049,546	115,014,303	35,243
b
c
d
e
f	All other program service revenue .
g	Total. Add lines 2a–2f........			115,049,546
3	Investment income (including dividends, interest
	and other similar amounts).....			2,112,463			2,112,463
4	Income from investment of tax-exempt bond proceeds..			0
5	Royalties............			0
		(i) Real	(ii) Personal
6a	Gross rents	147,644
b	Less: rental expenses
c	Rental income or (loss)	147,644
d	Net rental income or (loss).......			147,644			147,644
		(i) Securities	(ii) Other
7a	Gross amount from sales of assets other than inventory	23,299,239	25,827
b	Less: cost or other basis and sales expenses	24,026,782	25,872
c	Gain or (loss)	-727,543	-45
d	Net gain or (loss)..........			-727,588			-727,588
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..			0
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...			0
10a	Gross sales of inventory, less returns and allowances .
	a
b	Less: cost of goods sold ..b
c	Net income or (loss) from sales of inventory..			0
Miscellaneous Revenue			Business Code
11a	CAFETERIA		900,099	345,010			345,010
b	MOBILE MEALS		900,099	28,527			28,527
c	MEDICAL RECORD FEE		900,099	5,104			5,104
d	All other revenue ....			388,905			388,905
e	Total. Add lines 11a–11d ......			767,546
12	Total revenue. See Instructions....			117,363,692	115,014,303	35,243	2,300,065


				(A) Beginning of year		(B) End of year
1	Cashnon-interest-bearing ..........			863,000	1	1,062,368
2	Savings and temporary cash investments .......			6,654,287	2	10,031,170
3	Pledges and grants receivable, net .........			0	3	0
4	Accounts receivable, net .........			14,124,116	4	16,392,418
5	Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
	Schedule L ..........			0	5	0
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 ..........			0	6	0
7	Notes and loans receivable, net .............			0	7	0
8	Inventories for sale or use ..............			3,605,768	8	3,498,923
9	Prepaid expenses and deferred charges ............			2,015,875	9	1,987,916
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	157,186,787
b	Less: accumulated depreciation. .....	10b	85,798,211	75,244,375	10c	71,388,576
11	Investments—publicly traded securities ..........			46,340,282	11	47,864,388
12	Investments—other securities. See Part IV, line 11 ......			0	12	0
13	Investments—program-related. See Part IV, line 11 ..			740,401	13	738,577
14	Intangible assets .........			0	14	0
15	Other assets. See Part IV, line 11 ...........			7,071,882	15	6,586,256
16	Total assets. Add lines 1 through 15 (must equal line 34)...			156,659,986	16	159,550,592
17	Accounts payable and accrued expenses .			12,038,651	17	9,801,927
18	Grants payable ..........			0	18	0
19	Deferred revenue ..........			0	19	0
20	Tax-exempt bond liabilities ..........			45,749,006	20	44,424,162
21	Escrow or custodial account liability. Complete Part IV of Schedule D..			0	21	0
22	Payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........			0	22	0
23	Secured mortgages and notes payable to unrelated third parties ..			0	23	0
24	Unsecured notes and loans payable to unrelated third parties ....			0	24	0
25	Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D.....			8,816,130	25	14,802,903
26	Total liabilities. Add lines 17 through 25.....			66,603,787	26	69,028,992
	Organizations that follow SFAS 117, check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets .....			90,003,466	27	90,468,867
28	Temporarily restricted net assets .....			32,733	28	32,733
29	Permanently restricted net assets .....			20,000	29	20,000
	Organizations that do not follow SFAS 117, check here 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 .....			90,056,199	33	90,521,600
34	Total liabilities and net assets/fund balances .....			156,659,986	34	159,550,592