TY 2010 Form 990

(A) Name and business address	(B) Description of services	(C) Compensation
ANESTHESIA SERVICES PC ONE MOBILE INFIRMARY CIRCLE MOBILE,AL36607	ANESTHESIA SVCS	1,302,435
MOBILE EMERGENCY GROUP PC PO BOX 850153 MOBILE,AL36685	ED PHYS SVCS	756,221
BALDWIN PHYSICIAN SERVICES PC PO BOX 830529 BIRMINGHAM,AL35283	HOSPITALIST SVC	622,031
BMA WEST MOBILE PO BOX 62760 NEW ORLEANS,LA70162	DIALYSIS	137,463
JEFFREY C BARRE 117 MAJORS RUN FAIRHOPE,AL36526	GROUNDS CARE	136,154
2 Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 in compensation from the organization 5

Do not include amounts reported on lines 6b, 7b, 8b, 9b, and 10b of Part VIII.	(A) Total expenses	(B) Program service expenses	(C) Management and general expenses	(D) Fundraising expenses
1	Grants and other assistance to governments and organizations in the U.S. See Part IV, line 21
2	Grants and other assistance to individuals in the U.S. See Part IV, line 22
3	Grants and other assistance to governments, organizations, and individuals outside the U.S. See Part IV, lines 15 and 16
4	Benefits paid to or for members
5	Compensation of current officers, directors, trustees, and key employees ....
6	Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....
7	Other salaries and wages	14,270,325	11,847,885	2,422,440
8	Pension plan contributions (include section 401(k) and section 403(b) employer contributions) ....	314,034	262,840	51,194
9	Other employee benefits .......	1,693,103	1,417,094	276,009
10	Payroll taxes ...........	995,247	833,002	162,245
11	Fees for services (non-employees):
a	Management ......	2,205,935		2,205,935
b	Legal .........	81,605		81,605
c	Accounting ...........	432,494		432,494
d	Lobbying ...........
e	Professional fundraising. See Part IV, line 17..
f	Investment management fees ......
g	Other ..........	3,879,007	2,975,618	903,389
12	Advertising and promotion ....
13	Office expenses .......	1,824,022	783,686	1,040,336
14	Information technology ......	988,248		988,248
15	Royalties ..
16	Occupancy ...........	2,441,676	718,587	1,723,089
17	Travel ............	4,920		4,920
18	Payments of travel or entertainment expenses for any federal, state, or local public officials ......
19	Conferences, conventions, and meetings ....
20	Interest ...........	290,232		290,232
21	Payments to affiliates .......
22	Depreciation, depletion, and amortization .....	1,314,609	1,174,346	140,263
23	Insurance ..............	721,616		721,616
24	Other expenses. Itemize expenses not covered above. (Expenses grouped together and labeled miscellaneous may not exceed 5% of total expenses shown on line 25 below.)
a	PROVISION FOR BAD DEBT	15,704,656	15,704,656
b	MEDICAL SUPPLIES/DRUGS	7,925,704	7,888,181	37,523
c	REPAIRS/REPLACEMENT	1,821,441	1,444,431	377,010
d	LAB SUPPLIES/PROCEDURES	890,732	860,154	30,578
e
f	All other expenses	2,714,871	1,277,746	1,437,125
25	Total functional expenses. Add lines 1 through 24f	60,514,477	47,188,226	13,326,251	0
26	Joint costs. Check here if following SOP 98-2 (ASC 958-720). Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation

Part X Balance Sheet
	1	Cashnon-interest-bearing ..........	1,925	1	1,925
2	Savings and temporary cash investments .......	6,961,430	2	5,036,002
3	Pledges and grants receivable, net .........		3
4	Accounts receivable, net .........	6,201,567	4	6,020,205
5	Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
	Schedule L ..........		5
6	Receivables from other disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B). Complete Part II of
	Schedule L ..........		6
7	Notes and loans receivable, net .............		7
8	Inventories for sale or use ..............	666,314	8	665,848
9	Prepaid expenses and deferred charges ............	1,732,324	9	2,709,491
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	14,055,963
b	Less: accumulated depreciation. .....	10b	6,438,786	7,929,425	10c	7,617,177
11	Investments—publicly traded securities ..........	294,184	11	393,533
12	Investments—other securities. See Part IV, line 11 ......		12
13	Investments—program-related. See Part IV, line 11 ..		13
14	Intangible assets .........		14
15	Other assets. See Part IV, line 11 ...........	5,510,096	15	5,095,621
16	Total assets. Add lines 1 through 15 (must equal line 34)...	29,297,265	16	27,539,802
	17	Accounts payable and accrued expenses .	5,809,585	17	5,985,836
18	Grants payable ..........		18
19	Deferred revenue ..........	302,823	19	1,181,654
20	Tax-exempt bond liabilities ..........		20
21	Escrow or custodial account liability. Complete Part IV of Schedule D..		21
22	Payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........		22
23	Secured mortgages and notes payable to unrelated third parties ..		23
24	Unsecured notes and loans payable to unrelated third parties ....		24
25	Other liabilities. Complete Part X of Schedule D.....	40,483,088	25	37,905,362
26	Total liabilities. Add lines 17 through 25.....	46,595,496	26	45,072,852
		Organizations that follow SFAS 117, check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets .....	-17,298,231	27	-17,533,050
28	Temporarily restricted net assets .....		28
29	Permanently restricted net assets .....		29
	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 .....	-17,298,231	33	-17,533,050
34	Total liabilities and net assets/fund balances .....	29,297,265	34	27,539,802

- 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

2010

Open to Public
Inspection

Name of the organization

INFIRMARY HEALTH HOSPITALS INC

Employer identification number

20-3713023

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) 2010

Page 2

Part II

Support Schedule for Organizations Described in IRC 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi)
(Complete only if you checked the box on line 5, 7, or 8 of Part I or if the organization failed to qualify under Part III. If the organization fails to qualify under the tests listed below, please complete Part III.)

Section A. Public Support

Calendar year(or fiscal year beginning in)		(a) 2006	(b) 2007	(c) 2008	(d) 2009	(e) 2010	(f) Total
1	Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") ....
2	Tax revenues levied for the organization's benefit and either paid to or expended on its behalf.......
3	The value of services or facilities furnished by a governmental unit to the organization without charge..
4	Total. Add lines 1 through 3..
5	The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included on line 1 that exceeds 2% of the amount shown on line 11, column (f)..
6	Public Support. Subtract line 5 from line 4.

Section B. Total Support

Calendar year(or fiscal year beginning in)		(a) 2006	(b) 2007	(c) 2008	(d) 2009	(e) 2010	(f) Total
7	Amounts from line 4..
8	Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
9	Net income from unrelated business activities, whether or not the business is regularly carried on..
10	Other income. (Explain in Part IV.) Do not include gain or loss from the sale of capital assets..
11	Total support (Add lines 7 through 10).

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—2010. 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—2009. 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—2010. 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—2009. 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) 2010

Page 3

Part III

Support Schedule for Organizations Described in IRC 509(a)(2)
(Complete only if you checked the box on line 9 of Part I or if the organization failed to qualify under Part II. If the organization fails to qualify under the tests listed below, please complete Part II.)

Section A. Public Support

Calendar year(or fiscal year beginning in)		(a) 2006	(b) 2007	(c) 2008	(d) 2009	(e) 2010	(f) Total
1	Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") .
2	Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose......
3	Gross receipts from activities that are not an unrelated trade or business under section 513..
4	Tax revenues levied for the organization's benefit and either paid to or expended on its behalf...
5	The value of services or facilities furnished by a governmental unit to the organization without charge..
6	Total. Add lines 1 through 5.
7a	Amounts included on lines 1, 2, and 3 received from disqualified persons...
b	Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year.
c	Add lines 7a and 7b..
8	Public Support (Subtract line 7c from line 6.)

Section B. Total Support

Calendar year (or fiscal year beginning in)		(a) 2006	(b) 2007	(c) 2008	(d) 2009	(e) 2010	(f) Total
9	Amounts from line 6...
10a	Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
b	Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975.
c	Add lines 10a and 10b.
11	Net income from unrelated business activities not included in line 10b, whether or not the business is regularly carried on.
12	Other income. Do not include gain or loss from the sale of capital assets (Explain in Part IV.)
13	Total support (Add lines 9, 10c, 11 and 12.).

Section C. Computation of Public Support Percentage

Public Support Percentage for 2010 (line 8 column (f) divided by line 13 column (f)) .........

Public support percentage from 2009 Schedule A, Part III, line 15 ...............

Section D. Computation of Investment Income Percentage

Investment income percentage for 2010 (line 10c column (f) divided by line 13 column (f)) ......

Investment income percentage from 2009 Schedule A, Part III, line 17 .............

19a

33 1/3% support tests—2010. 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—2009. 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) 2010

Page 4

Part IV

Supplemental Information. Supplemental Information. Complete this part to provide the explanation required by Part II, line 10; Part II, line 17a or 17b; or Part III, line 12. Also complete this part for any additional information. (See instructions).

Facts And Circumstances Test

Explanation

Schedule A (Form 990 or 990-EZ) 2010

Additional Data

Software ID:
Software Version:

- 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

2010

Open to Public
Inspection

If the organization answered “Yes,” to Form 990, Part IV, Line 3, or Form 990-EZ, Part V, line 46 (Political Campaign Activities), then
Round Bullet

Section 501(c)(3) organizations: Complete Parts I-A and B. Do not complete Part I-C.
Round Bullet

Section 501(c) (other than section 501(c)(3)) organizations: Complete Parts I-A and C below. Do not complete Part I-B.
Round Bullet

Section 527 organizations: Complete Part I-A only.
If the organization answered “Yes,” to Form 990, Part IV, Line 4, or Form 990-EZ, Part VI, line 47 (Lobbying Activities), then
Round Bullet

Section 501(c)(3) organizations that have filed Form 5768 (election under section 501(h)) Complete Part II-A. Do not complete Part II-B.
Round Bullet

Section 501(c)(3) organizations that have NOT filed Form 5768 (election under section 501(h)): Complete Part II-B. Do not complete Part II-A.
If the organization answered “Yes,” to Form 990, Part IV, Line 5 (Proxy Tax) or Form 990-EZ, Part V, line 35a (Proxy Tax), then
Round Bullet

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

Name of the organization

INFIRMARY HEALTH HOSPITALS INC

Employer identification number

20-3713023

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 on behalf of or in opposition to candidates for public office 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 funtion 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) 2010

Page 2

Part II-A

Complete if the organization is exempt under section 501(c)(3) and filed Form 5768 (election under section 501(h)).

A Check if the filing organization belongs to an affiliated group.
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.)		(a) Filing Organization's Totals	(b) Affiliated Group Totals
1a	Total lobbying expenditures to influence public opinion (grass roots lobbying) ......
b	Total lobbying expenditures to influence a legislative body (direct lobbying) .......		66,017
c	Total lobbying expenditures (add lines 1a and 1b) ...................		66,017
d	Other exempt purpose expenditures ........................	60,186,598	627,568,300
e	Total exempt purpose expenditures (add lines 1c and 1d) ...............	60,186,598	627,634,317
f	Lobbying nontaxable amount. Enter the amount from the following table in both columns.	1,000,000	1,000,000
	If the amount on line 1e, column (a) or (b) is:The lobbying nontaxable amount is:
	Not over $500,00020% of the amount on line 1e.
	Over $500,000 but not over $1,000,000$100,000 plus 15% of the excess over $500,000.
	Over $1,000,000 but not over $1,500,000$175,000 plus 10% of the excess over $1,000,000.
	Over $1,500,000 but not over $17,000,000$225,000 plus 5% of the excess over $1,500,000.
	Over $17,000,000$1,000,000.

g	Grassroots nontaxable amount (enter 25% of line 1f) .................	250,000	250,000
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) 2007	(b) 2008	(c) 2009	(d) 2010	(e) Total

2a	Lobbying non-taxable amount	1,000,000	1,000,000	1,000,000	1,000,000	4,000,000

b	Lobbying ceiling amount (150% of line 2a, column(e))					6,000,000

c	Total lobbying expenditures	18,274	35,302	65,007	66,017	184,600

d	Grassroots non-taxable amount	250,000	250,000	250,000	250,000	1,000,000

e	Grassroots ceiling amount (150% of line 2d, column (e))					1,500,000

f	Grassroots lobbying expenditures

Schedule C (Form 990 or 990-EZ) 2010

Page 3

Part II-B

Complete if the organization is exempt under section 501(c)(3) and has NOT filed Form 5768 (election under section 501(h)).

(a)

Yes

(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? If "Yes," describe in Part IV ..........................

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

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 carryover 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) if BOTH Part III-A, lines 1 and 2 are answered “No” OR if Part III-A, line 3 is answered “Yes”.

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

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

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

Identifier	Return Reference	Explanation
ADDITIONAL INFORMATION	SCHEDULE C, PART IV	SCHEDULE C, PART II-A, AFFILIATED ORGANIZATIONS: ORGANIZATION NAME: MOBILE INFIRMARY ASSOCIATION ADDRESS: P.O. BOX 2144 MOBILE, AL 36652 EIN: 63-0288856 ORGANIZATION IS AN ELECTING ORGANIZATION. GRASSROOTS LOBBYING AMOUNT: 0 DIRECT LOBBYING AMOUNT: 0 TOTAL LOBBYING EXPENDITURES: 0 OTHER EXEMPT PURPOSE EXPENDITURES: 364,988,857 TOTAL EXEMPT PURPOSE EXPENDITURES: 364,988,857 LOBBYING NONTAXABLE AMOUNT: 1,000,000 GRASSROOTS NONTAXABLE AMOUNT: 250,000 TOTAL GRASSROOTS LESS NONTAXABLE AMOUNT: TOTAL EXPENDITURES LESS NONTAXABLE AMOUNT: SHARE OF EXCESS LOBBYING EXPENDITURES: 0 ORGANIZATION NAME: INFIRMARY HEALTH SYSTEM, INC. ADDRESS: P.O. BOX 2226 MOBILE, AL 36652 EIN: 63-0841123 ORGANIZATION IS AN ELECTING ORGANIZATION. GRASSROOTS LOBBYING AMOUNT: 0 DIRECT LOBBYING AMOUNT: 66,017 TOTAL LOBBYING EXPENDITURES: 66,017 OTHER EXEMPT PURPOSE EXPENDITURES: 43,317,193 TOTAL EXEMPT PURPOSE EXPENDITURES: 43,383,210 LOBBYING NONTAXABLE AMOUNT: 1,000,000 GRASSROOTS NONTAXABLE AMOUNT: 250,000 TOTAL GRASSROOTS LESS NONTAXABLE AMOUNT: TOTAL EXPENDITURES LESS NONTAXABLE AMOUNT: SHARE OF EXCESS LOBBYING EXPENDITURES: 0 ORGANIZATION NAME: INFIRMARY FOUNDATION, INC. ADDRESS: P.O. BOX 2226 MOBILE, AL 36652 EIN: 63-0870620 ORGANIZATION IS AN ELECTING ORGANIZATION. GRASSROOTS LOBBYING AMOUNT: 0 DIRECT LOBBYING AMOUNT: 0 TOTAL LOBBYING EXPENDITURES: 0 OTHER EXEMPT PURPOSE EXPENDITURES: 1,328,516 TOTAL EXEMPT PURPOSE EXPENDITURES: 1,328,516 LOBBYING NONTAXABLE AMOUNT: 207,852 GRASSROOTS NONTAXABLE AMOUNT: 51,963 TOTAL GRASSROOTS LESS NONTAXABLE AMOUNT: TOTAL EXPENDITURES LESS NONTAXABLE AMOUNT: SHARE OF EXCESS LOBBYING EXPENDITURES: 0 ORGANIZATION NAME: INFIRMARY HEALTH HOSPITALS, INC. ADDRESS: P.O. BOX 2226 MOBILE, AL 36652 EIN: 20-3713023 ORGANIZATION IS AN ELECTING ORGANIZATION. GRASSROOTS LOBBYING AMOUNT: 0 DIRECT LOBBYING AMOUNT: 0 TOTAL LOBBYING EXPENDITURES: 0 OTHER EXEMPT PURPOSE EXPENDITURES: 60,186,598 TOTAL EXEMPT PURPOSE EXPENDITURES: 60,186,598 LOBBYING NONTAXABLE AMOUNT: 1,000,000 GRASSROOTS NONTAXABLE AMOUNT: 250,000 TOTAL GRASSROOTS LESS NONTAXABLE AMOUNT: TOTAL EXPENDITURES LESS NONTAXABLE AMOUNT: SHARE OF EXCESS LOBBYING EXPENDITURES: 0 ORGANIZATION NAME: GULF HEALTH HOSPITALS, INC. ADDRESS: P.O. BOX 2226 MOBILE, AL 36652 EIN: 63-0891904 ORGANIZATION IS AN ELECTING ORGANIZATION. GRASSROOTS LOBBYING AMOUNT: 0 DIRECT LOBBYING AMOUNT: 0 TOTAL LOBBYING EXPENDITURES: 0 OTHER EXEMPT PURPOSE EXPENDITURES: 154,662,396 TOTAL EXEMPT PURPOSE EXPENDITURES: 154,662,396 LOBBYING NONTAXABLE AMOUNT: 1,000,000 GRASSROOTS NONTAXABLE AMOUNT: 250,000 TOTAL GRASSROOTS LESS NONTAXABLE AMOUNT: TOTAL EXPENDITURES LESS NONTAXABLE AMOUNT: SHARE OF EXCESS LOBBYING EXPENDITURES: 0 ORGANIZATION NAME: INFIRMARY HOSPICE CARE ADDRESS: P.O. BOX 2226 MOBILE, AL 36652 EIN: 72-1356598 ORGANIZATION IS AN ELECTING ORGANIZATION. GRASSROOTS LOBBYING AMOUNT: 0 DIRECT LOBBYING AMOUNT: 0 TOTAL LOBBYING EXPENDITURES: 0 OTHER EXEMPT PURPOSE EXPENDITURES: 3,084,740 TOTAL EXEMPT PURPOSE EXPENDITURES: 3,084,740 LOBBYING NONTAXABLE AMOUNT: 304,237 GRASSROOTS NONTAXABLE AMOUNT: 76,059 TOTAL GRASSROOTS LESS NONTAXABLE AMOUNT: TOTAL EXPENDITURES LESS NONTAXABLE AMOUNT: SHARE OF EXCESS LOBBYING EXPENDITURES: 0

Schedule C (Form 990 or 990EZ) 2010

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, 11, or 12.
SchDMd Bullet

Attach to Form 990. SchDMd Bullet

See separate instructions.

OMB No. 1545-0047

2010

Open to Public Inspection

Name of the organization

INFIRMARY HEALTH HOSPITALS INC

Employer identification number

20-3713023

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 may be
used only for charitable purposes and not for the benefit of the donor or donor advisor, or for any other purpose conferring impermissible private benefit. ...................................

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 pleasure) Preservation of an historically importantly land area

Protection of natural habitat Preservation of a certified historic structure

Preservation of open space

Complete lines 2a–2d if the organization held a qualified conservation contribution in the form of a conservation easement on the last day of the tax year.


a	Total number of conservation easements .......................	2a
b	Total acreage restricted by conservation easements ..................	2b
c	Number of conservation easements on a certified historic structure included in (a) .....	2c
d	Number of conservation easements included in (c) acquired after 8/17/06 ........	2d

Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during
the taxable 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, 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, 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 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) 2010

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	Investment earnings or 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 held as:

Board designated or quasi-endowment: SchDMd Bullet

Permanent endowment: SchDMd Bullet

Term endowment: SchDMd Bullet

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

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

Description of investment		(b)Cost or other basis (other)	(c) Accumulated depreciation	(d) Book value
1a	Land .................
b	Buildings ................
c	Leasehold improvements ............	4,160,975	735,021	3,425,954
d	Equipment ................	8,259,589	5,695,483	2,564,106
e	Other .................	1,635,399	8,282	1,627,117
Total. Add lines 1a-1e. (Column (d) should equal Form 990, Part X, column (B), line 10(c).)........				7,617,177

Schedule D (Form 990) 2010

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) should 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) should 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
(1) PREPAID LEASE				5,095,621








Total. (Column (b) should equal Form 990, Part X, col.(B) line 15.)...........				5,095,621

Part X

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

1.(a) Description of Liability		(b) Amount
Federal Income Taxes
LT OBLIGATIONS TO AFFILIATES		37,905,362








Total. (Column (b) should equal Form 990, Part X, col.(B) line 25.)		37,905,362
2. Fin 48 (ASC 740) Footnote. In Part XIV, provide the text of the footnote to the organization's financial statements that reports the organization's liability for uncertain tax positions under FIN 48 (ASC740).

Schedule D (Form 990) 2010

Page 4

Part XI Reconciliation of Change in Net Assets from Form 990 to Financial Statements
1	Total revenue (Form 990, Part VIII, column (A), line 12) ....................	1
2	Total expenses (Form 990, Part IX, column (A), line 25) .....................	2
3	Excess or (deficit) for the year. Subtract line 2 from line 1 .............	3
4	Net unrealized gains (losses) on investments ..........................	4
5	Donated services and use of facilities .............................	5
6	Investment expenses ...................................	6
7	Prior period adjustments ..................................	7
8	Other (Describe in Part XIV) .................................	8
9	Total adjustments (net). Add lines 4 - 8 .............................	9
10	Excess or (deficit) for the year per financial statements. Combine lines 3 and 9 .........	10

Part XII Reconciliation of Revenue per Audited Financial Statements With Revenue per Return
1	Total revenue, gains, and other support per audited financial statements .......		1
2	Amounts included on line 1 but not on Form 990, Part VIII, line 12:
a	Net unrealized gains on investments ..........	2a
b	Donated services and use of facilities .........	2b
c	Recoveries of prior year grants ...........	2c
d	Other (Describe in Part XIV): ............	2d
e	Add lines 2a through 2d .....................		2e
3	Subtract line 2e from line 1.....................		3
4	Amounts included on Form 990, Part VIII, line 12, but not on line 1:
a	Investment expenses not included on Form 990, Part VIII, line 7b .	4a
b	Other (Describe in Part XIV): ...........	4b
c	Add lines 4a and 4b.......................		4c
5	Total Revenue. Add lines 3 and 4c. (This should equal Form 990, Part I, line 12.) ......		5

Part XIII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return
1	Total expenses and losses per audited financial statements .............		1
2	Amounts included on line 1 but not on Form 990, Part IX, line 25:
a	Donated services and use of facilities ..........	2a
b	Prior year adjustments ..............	2b
c	Other losses ................	2c
d	Other (Describe in Part XIV): ............	2d
e	Add lines 2a through 2d......................		2e
3	Subtract line 2e from line 1.....................		3
4	Amounts included on Form 990, Part IX, line 25, but not on line 1:
a	Investment expenses not included on Form 990, Part VIII, line 7b ..	4a
b	Other (Describe in Part XIV): ............	4b
c	Add lines 4a and 4b.......................		4c
5	Total expenses. Add lines 3 and 4c. (This should equal Form 990, Part I, line 18.) ......		5

Part XIV

Supplemental Information

Complete this part to provide the descriptions required for Part II, lines 3, 5, and 9; Part III, lines 1a and 4; Part lV, lines 1b and 2b;
Part V, line 4; Part X; Part XI, line 8; Part XII, lines 2d and 4b; and Part XIII, lines 2d and 4b. Also complete this part to provide any additional information.

Identifier	Return Reference	Explanation

Schedule D (Form 990) 2010

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

2010

Open to Public Inspection

Name of the organization

INFIRMARY HEALTH HOSPITALS INC

Employer identification number

20-3713023

Part I

Charity Care and Certain Other Community Benefits at Cost

Yes

Does the organization have a charity care policy? If "No," skip to question 6a...........

Yes

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

Yes

If the organization has multiple hospitals, indicate which of the following best describes application of the charity care policy to the various hospitals.

Applied uniformly to all hospitals Applied uniformly to most hospitals Generally tailored to individual hospitals

Answer the following based on the charity care eligibility criteria that applies to the largest number of the organization's patients.

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

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

100% 150% 200% Other

Does the organization use FPG to determine eligibility for providing discounted care to low income individuals? If

"Yes," indicate which of the following is the family income limit for eligibility for discounted care: .....

200% 250% 300% 350% 400% Other

If the organization does not use FPG to determine eligibility, describe in Part VI the income based criteria for determining eligibility for free or discounted care. Include in the description whether the organization uses an asset test or other threshold, regardless of income, to determine eligibility for free or discounted care.

Does the organization's policy provide free or discounted care to the "medically indigent"? ......

Yes

Does the organization budget amounts for free or discounted care provided under its charity care policy? ...

Yes

If "Yes," did the organization's charity care expenses exceed the budgeted amount?.........

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

Does the organization prepare an annual community benefit report?.............

Yes

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

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

Charity Care 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 Charity care at cost (from Worksheets 1 and 2) ..			412,500	3,405	409,095	0.910 %
b Unreimbursed Medicaid (from Worksheet 3, column a) .			4,257,821	5,722,953	-1,465,132
c Unreimbursed costs—other means-tested government programs (from Worksheet 3, column b) ....
dTotal Charity Care and Means-Tested Government Programs .....			4,670,321	5,726,358	-1,056,037
Other Benefits e Community health improvement services and community benefit operations (from (Worksheet 4) ....	17	358	13,750	5,910	7,840	0.020 %
f Health professions education (from Worksheet 5) ..			699,113	262,166	436,947	0.980 %
g Subsidized health services (from Worksheet 6) ..
h Research (from Worksheet 7)
i Cash and in-kind contributions to community groups (from Worksheet 8) ..
jTotal Other Benefits ...	17	358	712,863	268,076	444,787	1.000 %
kTotal. Add lines 7d and 7j. ..	17	358	5,383,184	5,994,434	-611,250

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat. No. 50192T Schedule H (Form 990) 2010

Schedule H (Form 990) 2010

Page 2

Part II

Community Building Activities Complete this table if the organization conducted any community building activities.

		(a) Number of activities or programs (optional)	(b) Persons served (optional)	(c) Total community building expense	(d) Direct offsetting revenue	(e) Net community building expense	(f) Percent of total expense
1	Physical improvements and housing
2	Economic development
3	Community support
4	Environmental improvements
5	Leadership development and training for community members
6	Coalition building
7	Community health improvement advocacy
8	Workforce development
9	Other
10	Total

Part III

Bad Debt, Medicare, & Collection Practices

Section A. Bad Debt Expense

Yes

Does 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 (at cost).....

5,300,935

Enter the estimated amount of the organization's bad debt expense (at cost) attributable to patients eligible under the organization's charity care policy ..

2,405,034

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).....

14,725,666

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

16,496,927

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

-1,771,261

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

Does the organization have a written debt collection policy? ...............

If "Yes," does the organization's collection policy contain provisions on the collection practices to be followed for patients who are known to qualify for charity care or financial assistance? Describe in Part VI......

Part IV

Management Companies and Joint Ventures

(a) Name of entity	(b) Description of primary activity of entity	(c) Organization's profit % or stock ownership %	(d) Officers, directors, trustees, or key employees' profit % or stock ownership%	(e) Physicians' profit % or stock ownership %
1
2
3
4
5
6
7
8
9
10
11
12
13

Schedule H (Form 990) 2010

Page 3

Part VFacility Information

Section A. Hospital Facilities (list in order of size, measured by total revenue per facility, from largest to smallest) How many hospital facilities did the organization operate during the tax year?2 Name and address		Other (Describe)
1	INFIRMARY WEST 5600 GIRBY ROAD MOBILE,AL36693	X	X	X	X
2	INFIRMARY LTAC HOSPITAL 5600 GIRBY ROAD MOBILE,AL36693	X				LONG-TERM ACUTE CARE HOSPITAL

Schedule H (Form 990) 2010

Page 4

Part VFacility Information (continued)

Section B. Facility Policies and Practices.

(Complete a separate Section B for each of the hospital facilities listed in Part V, Section A)

Name of Hospital Facility:INFIRMARY WEST

Line Number of Hospital Facility (from Schedule H, Part V, Section A):1

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

Schedule H (Form 990) 2010

Page 5

Part VFacility Information (continued)

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

Schedule H (Form 990) 2010

Page 6

Part VFacility Information (continued)

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

Schedule H (Form 990) 2010

Page 4

Part VFacility Information (continued)

Section B. Facility Policies and Practices.

(Complete a separate Section B for each of the hospital facilities listed in Part V, Section A)

Name of Hospital Facility:INFIRMARY LTAC HOSPITAL

Line Number of Hospital Facility (from Schedule H, Part V, Section A):2

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

Schedule H (Form 990) 2010

Page 5

Part VFacility Information (continued)

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

Schedule H (Form 990) 2010

Page 6

Part VFacility Information (continued)

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

Schedule H (Form 990) 2010

Page 7

Part VFacility Information (continued)

Section C. Other Facilities That Are Not Licensed, Registered, or Similarly Recognized as a Hospital Facility (list in order of size, measured by total revenue per facility, from largest to smallest) How many non-hospital facilities did the organization operate during the tax year?
Name and address		Type of Facility (Describe)
1
2
3
4
5
6
7
8
9
10

Schedule H (Form 990) 2010

Page 8

Part VI

Supplemental Information

Complete this part to provide the following information.

1	Required descriptions. Provide the description required for Part I, lines 3c, 6a, and 7; Part II; Part III, lines 4, 8, and 9b; and Part V, Section B, lines 1j, 2, 4c, 6i, 7, 11i, 13i, 17l, 18l, 19e, 21d, 25, and 26.
2	Community health needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any community health needs assessments reported in Part V, Section B.
3	Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization’s financial assistance policy.
4	Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves.
5	Promotion of community health. Provide any other information important to describing how the organization’s hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.).
6	Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served.
7	State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report.

Identifier	ReturnReference	Explanation
COSTING METHODOLOGY EXPLANATION	PART I LINE 7	SCHEDULE H PART VI QUESTION 1 PART I LINE 3C THE ORGANIZATION CONSIDERS FPG BUT DOES NOT HAVE A SPECIFIC LIMIT TO DETERMINE ELIGIBILITY FOR FREE OR DISCOUNTED CARE THE ORGANIZATION ESTIMATES THE PATIENTS DEMONSTRATED FINANCIAL NEED BASED ON THEIR RESPECTIVE OVERALL FINANCIAL AND SOCIAL SITUATION THE ORGANIZATION DOES NOT UTILIZE ONE INCOME OR ASSET THRESHOLD UNIVERSALLY BUT UTILIZES AN INTERNALLY DEVELOPED POINT SYSTEM IN AN ATTEMPT TO CONSISTENTLY ESTIMATE DEMONSTRATED FINANCIAL NEED POINTS ARE ASSIGNED BASED ON MONTHLY INCOME NUMBER OF DEPENDENTS ASSETS DEBT AND MONTHLY EXPENSES TO DETERMINE IF THE PATIENT MEETS THE ELIGIBILITY THRESHOLD FOR ASSISTANCE COSTS FOR PART I LINE 7A AND 7B AND PART III SECTION A LINE 2 WERE CALCULATED USING THE RCC CALCULATED IN WORKSHEET 2 OTHER COSTS WERE OBTAINED FROM THE ORGANIZATIONS ACCOUNTING RECORDS PART I LINE 7 THE ORGANIZATION REPORTED A BAD DEBT EXPENSE OF 15704656 ON FORM 990 PART IX PART I LINE 7B A NEW REIMBURSEMENT PROGRAM WAS IMPLEMENTED FOR ALABAMA MEDICAID IN SEPTEMBER 2010 REIMBURSEMENT UNDER THIS PROGRAM RETROACTIVE TO OCTOBER 1 2009 WAS RECEIVED AND RECORDED IN THE TAX YEAR ENDED MARCH 31 2011 RESULTING IN EIGHTEEN MONTHS OF RELATED NET REIMBURSEMENT IN THE CURRENT TAX YEAR THIS IS THE CAUSE FOR THE OVERALL NEGATIVE NET COMMUNITY BENEFIT EXPENSE WHICH IS BEING REPORTED FOR THE YEAR PART III LINES 23 4 AMOUNTS ON PART III LINE 2 AND 3 WERE CALCULATED USING THE RCC CALCULATED PER WORKSHEET 2 OF INSTRUCTIONS APPLICABLE PATIENT DISCOUNTS AND PAYMENTS ARE RECORDED SEPARATE FROM BAD DEBTS PER PART III LINE 2 THE TEXT OF THE ORGANIZATIONS AUDITED FINANCIAL STATEMENT FOOTNOTE REGARDING UNCOLLECTIBLE ACCOUNTS ALLOWANCES FOR DOUBTFUL ACCOUNTS ARE ESTIMATED BASED ON HISTORICAL WRITEOFF PERCENTAGES DOUBTFUL ACCOUNTS ARE WRITTENOFF AGAINST THE ALLOWANCE AFTER ADEQUATE COLLECTION EFFORT IS EXHAUSTED AND RECORDED AS RECOVERIES OF BAD DEBTS IF SUBSEQUENTLY COLLECTED THE AMOUNT OF BAD DEBT COST IN PART III LINE 2 THAT COULD REASONABLY BE ATTRIBUTABLE TO PATIENTS WHO LIKELY WOULD QUALIFY FOR FINANCIAL ASSISTANCE IS NOT DETERMINABLE SINCE THOSE PATIENTS HAVE NOT PROVIDED ANY FINANCIAL INFORMATION TO THE ORGANIZATION THE ORGANIZATION HAS ESTIMATED HOWEVER BY ESTIMATING THE PERCENTAGE OF PATIENTS WHO GENERATED BAD DEBT BY ZIP CODE AND APPLYING THE PERCENTAGE OF RESIDENTS IN THAT ZIP CODE WHO WERE BELOW 200 OF FEDERAL POVERTY LEVEL PART III LINE 6 THE ORGANIZATIONS ASFILED MEDICARE COST REPORT WAS USED IN DETERMINING THE AMOUNT REPORTED ON PART III LINE 6 WHICH USES THE COSTTOCHARGE RATIO METHODOLOGY IN CALCULATING TOTAL MEDICARE ALLOWABLE COSTS THERE WAS AN ADDITIONAL LOSS OF 1771261 ATTRIBUTABLE TO ADDITIONAL SERVICES PROVIDED TO MEDICARE PATIENTS BUT NOT INCLUDED IN PART III SECTION B PER INSTRUCTIONS PRIMARILY LAB AND PHYSICAL THERAPY SERVICES PART III LINE 8 IT IS THE ORGANIZATIONS OPINION THAT MEDICARE SHORTFALLS SHOULD BE TREATED IN TOTAL AS A COMMUNITY BENEFIT HEALTHCARE SERVICES TO THE MEDICARE POPULATION REALISTICALLY MUST BE PROVIDED IN ORDER FOR SOCIETY TO CONTINUE TO FUNCTION AS WE KNOW IT PART III LINE 9A RELATED TO COLLECTION PRACTICES OF THE ORGANIZATION COLLECTION EFFORTS ARE SUSPENDED FOR PATIENTS WHO ARE IN THE PROCESS OF APPLYING FOR ASSISTANCE UNDER THE ORGANIZATIONS ASSISTANCE POLICY OR THROUGH MEDICAID
NEEDS ASSESSMENT	PART VI	SCHEDULE H PART VI QUESTION 2 THE ORGANIZATION ASSESSES THE NEEDS OF THE COMMUNITY THROUGH A VARIETY OF MEANS CONSTANT COMMUNICATION WITH THE OPEN MEDICAL STAFF OF MORE THAN 550 PHYSICIANS LOCATED THROUGHOUT THE COMMUNITY PROVIDES VALUABLE INSIGHT INTO HEALTH RELATED NEEDS THE INDEPENDENT BOARD REPRESENTING MEMBERS OF THE COMMUNITY PROVIDES INPUT FROM A DIFFERENT PERSPECTIVE COMMENTS FROM PATIENT SATISFACTION SURVEYS ARE SCRUTINIZED FOR OPPORTUNITIES COOPERATION WITH OTHER AREA HOSPITALS AND UNIVERSITIES PROVIDES INSIGHT INTO NEEDS FORMAL COMMITTEES IN THE ORGANIZATION SUCH AS THE STROKE COMMITTEE ASSESS DATA PROVIDED BY THE AMERICAN HEART ASSOCIATION AND SIMILAR ORGANIZATIONS TO ASSIST IN IDENTIFYING COMMUNITY NEEDS THE ORGANIZATION HAS AFFILIATED HOSPITALS AND ENTITIES LOCATED THROUGHOUT THE SERVICE AREA THROUGH WEEKLY LEADERSHIP MEETINGS AND FORMALIZED JOINT STRATEGIC PLANNING NEEDS OF THE COMMUNITIES SERVED ARE ASSESSED
PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE	PART VI	SCHEDULE H PART VI QUESTION 3 THE ORGANIZATIONS REGISTRATION AND BUSINESS OFFICE LOCATIONS HAVE SIGNAGE PROMINENTLY DISPLAYED WHICH INCLUDES WORDING INTENDED TO INFORM AND PROMPT PATIENTS TO AVAIL THEMSELVES OF THE ORGANIZATIONS ASSISTANCE PROGRAM ADDITIONALLY THE ORGANIZATION INCLUDES SIMILAR WORDING 1 WITHIN PATIENT ACCOUNT STATEMENTS MAILED TO PATIENTS WHO ARE BILLED FOR SERVICES RENDERED BY THE ORGANIZATION AND 2 ON THE ORGANIZATIONS WEBSITE WHICH IS AVAILABLE TO THE GENERAL PUBLIC THE ORGANIZATION CONTRACTS WITH A THIRDPARTY VENDOR TO HAVE THEM IDENTIFY CONTACT AND ASSIST WITH QUALIFYING PATIENTS WHO MAY BE ELIGIBLE FOR GOVERNMENT ASSISTANCE PROGRAMS THE THIRDPARTY VENDOR UTILIZES ADMISSION REPORTS REFERRALS FROM ORGANIZATION FINANCIAL COUNSELORS PATIENT SELF REFERRALS AND CURRENTPAST INTERNALPUBLIC PATIENT ELIGIBILITY DATA TO IDENTIFY POTENTIALLY ELIGIBLE PATIENTS WHOM THEY CONTACT ANDOR ASSIST IN QUALIFYING FOR GOVERNMENT ASSISTANCE PROGRAMS
COMMUNITY INFORMATION	PART VI	SCHEDULE H PART VI QUESTION 4 THE ORGANIZATION IS LOCATED IN MOBILE ALABAMA ON THE CENTRAL GULF COAST MOBILE IS THE THIRD MOST POPULOUS CITY IN THE STATE OF ALABAMA AND IS THE COUNTY SEAT OF MOBILE COUNTY MOBILE IS THE CENTER OF ALABAMAS SECOND LARGEST METROPOLITAN AREA WHICH CONSISTS OF ALL OF MOBILE COUNTY THE 2006 CENSUS DATA SHOWS THAT THERE WERE 73057 HOUSEHOLDS IN MOBILE OF WHICH 22225 HAD CHILDREN UNDER THE AGE OF 18 LIVING WITH THEM 29963 WERE MARRIED COUPLES LIVING TOGETHER 15360 HAD A FEMALE HOUSEHOLDER WITH NO HUSBAND PRESENT 3488 HAD A MALE HOUSEHOLDER WITH NO WIFE PRESENT AND 24246 WERE NONFAMILIES THE RACIAL MAKEUP OF THE CITY WAS 482 WHITE AND 479 BLACK OR AFRICANAMERICAN THE AVERAGE HOUSEHOLD SIZE WAS 259 THE PRIMARY SERVICE AREA INCLUDES MOBILE AND BALDWIN COUNTIES IN ALABAMA THESE TWO COUNTIES HAVE A COMBINED POPULATION OF APPROXIMATELY 585000 THE SECONDARY SERVICE AREA FOR THE HOSPITAL INCLUDES THE RURAL AREAS OF GEORGE COUNTY IN MISSISSIPPI AND WASHINGTON CLARKE ESCAMBIA AND MONROE COUNTIES IN ALABAMA THERE ARE FOUR MAJOR MEDICAL CENTERS WITHIN THE CITY LIMITS THE MAJORITY OF THE PERSONS SERVED ARE EMPLOYED WITHIN SERVICE INDUSTRIES SUCH AS TRADE TRANSPORTATION UTILITIES PROFESSIONAL AND BUSINESS SERVICES EDUCATION HEALTH SERVICES AND GOVERNMENT THE UNEMPLOYMENT RATE FOR MOBILE COUNTY IS APPROXIMATELY 11 AND FOR BALDWIN COUNTY IS APPROXIMATELY 9 PER CAPITA INCOME IN 2010 FOR THE PRIMARY SERVICE ARE OF THE HOSPITAL WAS 22095 AND 18157 FOR THE SECONDARY SERVICE AREA IN 2010 202 OF THE RESIDENTS OF THE CITY OF MOBILE WERE LIVING BELOW THE POVERTY LEVEL OF THESE HOUSEHOLDS LIVING BELOW THE POVERTY LEVEL 74 HAD A FEMALE HEADOFHOUSEHOLD WITH NO HUSBAND PRESENT
AFFILIATED HEALTH CARE INFORMATION	PART VI	SCHEDULE H PART VI QUESTION 6 EACH HOSPITAL AND ENTITY WITHIN INFIRMARY HEALTH SYSTEM HAS ITS OWN LEADERSHIP AND PROVIDES CERTAIN COMMUNITY BENEFITS AND PROGRAM SERVICES RELATED UNIQUELY TO THE COMMUNITY IT SERVES HOWEVER EXECUTIVE LEADERSHIP OF THE SYSTEM PROVIDES GUIDANCE FOR ALL AND THERE ARE MANY COMMUNITY BENEFITS AND SERVICES WHICH ARE COORDINATED FROM A SYSTEM PERSPECTIVE IN ORDER TO SERVE A NEED WITHIN THE BROADER SERVICE AREA OR TO JOINTLY COORDINATE THE EFFORT FOR MORE EFFICIENCY INFIRMARY HEALTH SYSTEM HAS ESTABLISHED A PROGRAM TO FUND SPECIAL COMMUNITY HEALTH NEEDS IDENTIFIED AND APPROVED BY THE VOLUNTARY BOARD OF THE INFIRMARY FOUNDATION THE 501C3 PHILANTHROPIC AFFILIATE OF THE ORGANIZATION EACH YEAR AN ACCOUNTING OF THE COMMUNITY BENEFIT FUNDS DISTRIBUTED BY THE FOUNDATION IS REVIEWED BY MANAGEMENT
ADDITIONAL INFORMATION	PART VI	QUESTION 7 A COMMUNITY BENEFIT REPORT IS NOT REQUIRED TO BE FILED WITH ANY STATE

Schedule H (Form 990) 2010

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

2010

Open to Public Inspection

Name of the organization

INFIRMARY HEALTH HOSPITALS INC

Employer identification number

20-3713023

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 orprovision of all the expenses described above? If "No," complete Part III to explain....

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? ....

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.

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? ........

Yes

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 Regs. 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) 2010

Page 2

Part II

Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees. Use Schedule J-1 if additional space needed.

For each individual whose compensation must be reported in Schedule J, report compensation from the organization on row (i) and from related organizations, described in the
instructions on row (ii). Do not list any individuals that are not listed on Form 990, Part VII.

Note. The sum of columns (B)(i)-(iii) must equal the applicable column (D) or column (E) amounts on Form 990, Part VII, line 1a.

(A) Name		(B) Breakdown of W-2 and/or 1099-MISC compensation			(C) Retirement and other deferred compensation	(D) Nontaxable benefits	(E) Total of columns (B)(i)-(D)
(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)
(1) D MARK NIX	(i) (ii)	541,009	214,870	92,221	183,711	18,755	1,050,566
(2) ALAN C WHALEY	(i) (ii)	353,755	42,840	112,094	85,124	16,973	610,786
(3) JOSEPH L DENTON	(i) (ii)	320,955	71,510	42,826	70,274	13,119	518,684
(4) OWEN BAILEY	(i) (ii)	251,737	29,997	36,218	52,197	17,897	388,046
(5) E WATSON SMITH	(i) (ii)	247,567	25,000		3,063	12,365	287,995
(6) SCOTT A BROWNING	(i) (ii)	204,191			17,250	10,350	231,791
(7) DARAN MASON	(i) (ii)	251,934				10,191	262,125

Schedule J (Form 990) 2010

Page 3

Part III

Supplemental Information

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

Identifier	Return Reference	Explanation
OTHER ADDITIONAL INFORMATION	SCHEDULE J, PART III	SCHEDULE J, PART I, LINE 4B 457(F) PARTICIPATION: D. MARK NIX - 161,959 ALAN C. WHALEY - 51,003 JOSEPH L. DENTON - 46,800 OWEN BAILEY - 34,426 SCOTT A. BROWNING - 17,250

Schedule J (Form 990) 2010

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

2010

Open to Public Inspection

Name of the organization

INFIRMARY HEALTH HOSPITALS INC

Employer identification number

20-3713023

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) 2010

Page 2

Part IV

Business Transactions Involving Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 28a, 28b, or 28c.

(a) Name of interested person	(b) Relationship between interested person and the organization	(c) Amount of transaction	(d) Description of transaction	(e) Sharing of organization's revenues?
(a) Name of interested person		(c) Amount of transaction	(d) Description of transaction	Yes	No
(1) KATHLEEN K DENTON	FAMILY MEMBER	19,879	RN SERVICES RENDERED		No

Part V

Supplemental Information

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

Identifier	Return Reference	Explanation
ADDITIONAL INFORMATION	SCHEDULE L PART V	PART IV KATHLEEN K DENTON IS AN RN FOR IHHI AND IS THE WIFE OF JOSEPH L DENTON TREASURER

Schedule L (Form 990 or 990-EZ) 2010

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

2010

Open to Public
Inspection

Name of the organization

INFIRMARY HEALTH HOSPITALS INC

Employer identification number

20-3713023

Identifier	Return Reference	Explanation
FIRST ACHIEVEMENT DESCRIPTION	FORM 990, PAGE 2, PART III, LINE 4A	INFIRMARY HEALTH HOSPITALS, INC. ("IHHI") OPERATES INFIRMARY WEST, A 124 BED ACUTE CARE HOSPITAL, AND INFIRMARY LONG-TERM ACUTE CARE HOSPITAL, A 191 BED LONG-TERM CARE HOSPITAL. BOTH HOSPITALS PROVIDE SERVICES NECESSARY TO DELIVER ESSENTIAL HEALTHCARE TO THE GULF COAST COMMUNITY REGARDLESS OF RACE, CREED, SEX, NATIONAL ORIGIN, HANDICAP, OR AGE. IHHI SERVICED 2,261 INPATIENTS AND PROVIDED MORE THAN 37,000 OUTPATIENT SERVICES DURING THE YEAR ENDING MARCH 31, 2011. IHHI OPERATES A FULL-TIME LEVEL II EMERGENCY DEPARTMENT, OPEN TO ALL PERSONS, WITHOUT REGARD TO ABILITY TO PAY, WHICH TREATED 19,585 PATIENTS DURING THE YEAR. THERE ARE MORE THAN 550 PHYSICIANS ON THE OPEN MEDICAL STAFF. IHHI PARTICIPATES IN THE MEDICARE AND MEDICAID PROGRAMS. MEDICARE AND MEDICAID PATIENTS ACCOUNTED FOR 51.08% OF TOTAL INPATIENT VISITS AND 22.19% OF OUTPATIENT GROSS REVENUE IN FISCAL 2011. WHILE THE HOSPITALS ARE REIMBURSED TO SOME EXTENT FOR TREATING MEDICARE AND MEDICAID PATIENTS, THE TOTAL RECEIVED WAS 40,862,000 LESS THAN WHAT WOULD HAVE BEEN RECEIVED HAD THESE PROGRAMS PAID FULL CHARGES. IN ADDITION TO SERVING MEDICARE AND MEDICAID PATIENTS, IHHI PROVIDES CARE TO PATIENTS WHO MEET THE CRITERIA OF ITS CHARITY CARE POLICY. IHHI HAS EXPANDED THE FEDERAL POVERTY GUIDELINE TO AFFORD CHARITABLE CARE TO LARGER NUMBERS OF ITS PATIENT POPULATION. THE CHARITY CARE PROCESS IS ADMINISTERED IN A NON-DISCRIMINATORY MANNER. THE AMOUNT OF CHARGES FORGEONE FOR HEALTHCARE SERVICES AND SUPPLIES FURNISHED UNDER THIS CHARITY CARE POLICY FOR THE YEAR ENDING MARCH 31, 2011 WS 2,317,700. INFIRMARY LONG-TERM ACUTE CARE IS THE ONLY FACILITY OF ITS KIND ON THE ALABAMA GULF COAST. IT IS A HOSPITAL SPECIFICALLY DESIGNED TO MEET THE SPECIAL NEEDS OF PATIENTS REQUIRING EXTENDED ACUTE MEDICAL CARE AND REHABILITATION. WE CONSIDER THE PATIENT'S FAMILY VITAL MEMBERS OF THE MEDICAL CARE TEAM AND AS SUCH EDUCATION FOR THE PATIENT AS WELL AS THE FAMILY IS AN IMPORTANT PART OF THE HEALING PROCESS. THROUGH AFFILIATION WITH THE UNIVERSITY OF SOUTH ALABAMA (USA), IHHI PROVIDED A WIDE CLINICAL AND EDUCATIONAL ENVIRONMENT FOR NURSING AND MEDICAL STUDENTS. CLINICAL FACILITIES WERE MADE AVAILABE FOR ROTATIONS OF EIGHT USA COLLEGE OF MEDICINE RESIDENTS. RESIDENT AND FELLOWSHIP PROGRAMS IN CARDIOLOGY, PULMONARY MEDICINE, GASTROENTEROLOGY, RADIOLOGY, SURGERY, AND PATHOLOGY UTILIZE THE CAMPUS OF INFIRMARY WEST FOR REAL TIME CLINICAL EXPERIENCES, AS WELL AS GRAND ROUNDS FOR ENHANCEMENT OF LEARNING OPPORTUNITIES. IN ADDITION, IHHI PROVIDED PRACTICUM EXPERIENCES TO STUDENTS IN PHYSICAL AND OCCUPATIONAL THERAPY, AS WELL AS RESPIRATORY MEDICINE.
CLASSES OF MEMBERS OR STOCKHOLDERS	FORM 990, PAGE 6, PART VI, LINE 6	THERE IS ONLY ONE CLASS AND ONE MEMBER OF THE CORPORATION, INFIRMARY HEALTH SYSTEM, INC.
ELECTION OF MEMBERS AND THEIR RIGHTS	FORM 990, PAGE 6, PART VI, LINE 7A	THE GOVERNING BODY OF THE PARENT ELECTS THE BOARD MEMBERS OF THE ORGANIZATION.
DECISIONS SUBJECT TO APPROVAL OF MEMBERS	FORM 990, PAGE 6, PART VI, LINE 7B	CERTAIN ACTIONS OF THE BOARD OF DIRECTORS ARE SUBJECT TO REVIEW AND APPROVAL BY THE BOARD OF DIRECTORS OF THE PARENT COMPANY, INFIRMARY HEALTH SYSTEM, INC.
ORGANIZATION'S PROCESS USED TO REVIEW FORM 990	FORM 990, PAGE 6, PART VI, LINE 11B	THE 990 IS PREPARED BY THE ACCOUNTING DEPARTMENT. A DETAILED REVIEW IS COMPLETED BY THE VICE-PRESIDENT/CONTROLLER AND A COPY OF THE FINAL 990, INCLUDING ALL REQUIRED SCHEDULES, IS PROVIDED TO THE PRESIDENT/CHIEF EXECUTIVE OFFICER FOR REVIEW AND APPROVAL WITH SIGNATURE.
ENFORCEMENT OF CONFLICTS POLICY	FORM 990, PAGE 6, PART VI, LINE 12C	A DIRECTOR SHALL DISCLOSE AT THE EARLIEST POSSIBLE MEETING OF THE BOARD OF DIRECTORS AFTER THE DIRECTOR BECOMES AWARE OF THE EXISTING OR POTENTIAL CONFLICTING INTEREST. THE BOARD OF DIRECTORS SHALL ASK THE INTERESTED DIRECTOR TO LEAVE THE MEETING DURING DELIBERATIONS WITH RESPECT TO THE MATTER THAT GIVES RISE TO THE EXISTING OR POTENTIAL CONFLICTING INTEREST. THE OFFICERS ARE REQUIRED EACH YEAR TO REVIEW THE CONFLICT OF INTEREST POLICIES WHICH DEFINE CONFLICTS OF INTEREST AND ADVISE THAT ALL SHOULD BE AVOIDED IF POSSIBLE. ALL BOARD MEMBERS AND OFFICERS ARE REQUIRED ANNUALLY TO COMPLETE A CONFLICT OF INTEREST DISCLOSURE STATEMENT. FORM 990, PART VI, LINE 14 - DOCUMENT RETENTION AND DESTRUCTION POLICY ALTHOUGH THE ORGANIZATION AS A WHOLE DOES NOT HAVE ONE BOARD APPROVED POLICY REGARDING DOCUMENT RETENTION AND DESTRUCTION, THERE ARE DEPARTMENT- SPECIFIC POLICIES IN PLACE.
COMPENSATION PROCESS FOR OFFICERS	FORM 990, PAGE 6, PART VI, LINE 15B	AS AN AFFILIATE OF INFIRMARY HEALTH SYSTEM, INFIRMARY HEALTH HOSPITALS, INC. ("IHHI")FOLLOWS THE SYSTEM-WIDE COMPENSATION PHILOSOPHY. THE SYSTEM EMPLOYEES DESIGNATED AS OFFICERS, DIRECTORS, AND KEY EMPLOYEES ARE PARTICIPANTS IN THE ORGANIZATION'S PERFORMANCE PLAN THAT IS REVIEWED ANNUALLY FOR MERIT INCREASES. THE ANNUAL REVIEW COVERS THE EMPLOYEE'S PERFORMANCE FOR THE FISCAL YEAR OF APRIL 1ST THROUGH MARCH 31ST OF THE FOLLOWING YEAR. THE AMOUNT OF INDIVIDUAL MERITS/SALARY INCREASES ARE DETERMINED BASED ON THE COMPA-RATIO (HOURLY RATE RELATIVE TO SALARY RANGE MIDPOINT), THE NUMBER OF MONTHS SINCE THEIR LAST INCREASE AND PERFORMANCE SCORE (RATING) AND THE ORGANIZATION'S ANNUAL MERIT GUIDELINES. EACH POSITION IS ASSIGNED A SALARY RANGE BASED ON MARKET DATA, INTERNAL EQUITY, AND EVALUATION FACTORS SUCH AS ACCOUNTABILITY, KNOW HOW, AND PROBLEM SOLVING ABILITY. SALARY RANGE MIDPOINTS (THE MIDPOINT REPRESENTS 100% OF THE MARKET) INCREASE EACH YEAR BASED ON EXTERNAL DATA. IHHI PARTICIPATES IN NUMEROUS SALARY SURVEYS.DEPENDING ON THE POSITION, THE SURVEY DATA MAY BE INDUSTRY SPECIFIC (E.G. HEALTHCARE) OR FROM OTHER INDUSTRIES. CURRENTLY, EXECUTIVE POSITION DATA COMES FROM WATSON WYATT, INTEGRATED HEALTHCARE STRATEGIES, AND SULLIVAN COTTER. THE ANNUAL MERIT GUIDELINES PROVIDE A MERIT INCREASE PERCENTAGE RANGE BASED ON THE INDIVIDUAL EMPLOYEE'S PERFORMANCE RATING AND COMPA-RATIO. FOR EXECUTIVES, THE CEO AND THE VP, HUMAN RESOURCES REVIEW THE SUGGESTED MERIT INCREASE AND MAKE RECOMMENDATIONS TO THE INFIRMARY HEALTH SYSTEM COMPENSATION COMMITTEE. THE FINAL RECOMMENDATIONS ARE APPROVED BY THE INFIRMARY BOARD OF DIRECTORS. INFIRMARY HEALTH SYSTEM, INC. HAD AN EXTERNAL REVIEW OF COMPENSATION PRACTICES PERFORMED BY WATSON WYATT IN 2008 AND BY HEWITT & ASSOCIATES IN 2010.
GOVERNING DOCUMENTS DISCLOSURE EXPLANATION	FORM 990, PAGE 6, PART VI, LINE 19	THE CORPORATE CHARTER OF INFIRMARY HEALTH HOSPITALS, INC. IS A MATTER OF PUBLIC RECORD IN THE PROBATE COURT OF MOBILE COUNTY, ALABAMA. THE CORPORATE BYLAWS, THE CONFLICT OF INTEREST POLICY, AND THE FINANCIAL STATEMENTS ARE NOT ROUTINELY MADE AVAILABLE TO THE PUBLIC.
OTHER CHANGES IN NET ASSETS EXPLANATION	FORM 990, PART XI, LINE 5	CHANGE IN FAIR MARKET VALUE OF SWAP - (78,408); AUDIT ADJUSTMENT - 114,811; ROUNDING - (3). REASONABLE CAUSE STATEMENT NOTICE 2010-04 THIS RETURN IS BEING FILED BETWEEN MARCH 1, 2012, AND MARCH 30, 2012, AS DIRECTED BY THE IRS IN NOTICE 2012-04, BECAUSE ELECTRONIC FILING WAS NOT AVAILABLE JANUARY 1, 2012 THROUGH FEBRUARY 29, 2012. WE REQUEST THAT PENALTIES BE WAIVED BECAUSE IT WOULD BE INEQUITABLE TO IMPOSE A PENALTY ON US DUE TO THE UNUSUAL CIRCUMSTANCES REQUIRING US TO DELAY THE FILING OF THIS RETURN.

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

Cat. No. 51056K

Schedule O (Form 990 or 990-EZ) 2010

Additional Data

Software ID:
Software Version:

- 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

2010

Open to Public Inspection

Name of the organization

INFIRMARY HEALTH HOSPITALS INC

Employer identification number

20-3713023

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) GULF HEALTH HOSPITALS INC PO BOX 2226 MOBILE,AL36652 63-0891904	HOSPITALS	AL	501C3	3	IHS		No
(2) GULF HEALTH PROPERITES INC PO BOX 2166 MOBILE,AL36652 63-0933700	REALESTATE	AL	501C2		IHS		No
(3) INFIRMARY FOUNDATION INC PO BOX 2166 MOBILE,AL36652 63-0870620	FOUNDATION	AL	501C3	7	IHS		No
(4) MOBILE INFIRMARY ASSOCIATION PO BOX 2144 MOBILE,AL36652 63-0288856	HOSPITALS	AL	501C3	3	IHS		No
(5) INFIRMARY HEALTH SYSTEM INC PO BOX 2226 MOBILE,AL36652 63-0841123	MGMT	AL	501C3	11B	NA		No
(6) INFIRMARY HOSPICE CARE INC PO BOX 2226 MOBILE,AL36652 72-1356598	HOSPICE	AL	501C3	9	IHS		No

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

Cat. No. 50135Y

Schedule R (Form 990) 2010

Page 2

Part III

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

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(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 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

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)
(1) GULF HEALTH PLANS PPO INC PO BOX 2226 MOBILE,AL36652 63-0888584	PPO	AL	GHS	C CORP
(2) GULF HEALTH SERVICES INC PO BOX 2226 MOBILE,AL36652 63-0943206	MGMT	AL	NA	C CORP
(3) GULF HEALTH MANAGEMENT SVCS INC PO BOX 2226 MOBILE,AL36652 56-2332377	MGMT	AL	NA	C CORP
(4) INFIRMARY MEDICAL CLINICS PC PO BOX 2226 MOBILE,AL36652 63-0985524	PHY OFFICE	AL	GHS	C CORP
(5) INDUSTRIAL REHAB INC PO BOX 2226 MOBILE,AL36652 20-0978395	PHY THER	AL	NA	C CORP
(6) AMERICAN OAK HILL ASSURANCE PO BOX 2226 MOBILE,AL36652 63-6117376	SELF INS	BD	NA	C CORP
(7) PROF & COMP GEN PAT SELF INS TRUST PO BOX 2226 MOBILE,AL36652 63-6117376	SELF INS	AL	NA	TRUST
(8) WORKER'S COMPENSATION TRUST PO BOX 2226 MOBILE,AL36652 63-6118459	SELF INS	AL	NA	TRUST
(9) GULF HEALTH PLANS PPO INC PO BOX 2226 MOBILE,AL36652 63-0888584	PPO	AL	GHS	C CORP
(10) GULF HEALTH SERVICES INC PO BOX 2226 MOBILE,AL36652 63-0943206	MGMT	AL	NA	C CORP
(11) GULF HEALTH MANAGEMENT SVCS INC PO BOX 2226 MOBILE,AL36652 56-2332377	MGMT	AL	NA	C CORP
(12) INFIRMARY MEDICAL CLINICS PC PO BOX 2226 MOBILE,AL36652 63-0985524	PHY OFFICE	AL	GHS	C CORP
(13) INDUSTRIAL REHAB INC PO BOX 2226 MOBILE,AL36652 20-0978395	PHY THER	AL	NA	C CORP
(14) AMERICAN OAK HILL ASSURANCE PO BOX 2226 MOBILE,AL36652 63-6117376	SELF INS	BD	NA	C CORP
(15) PROF & COMP GEN PAT SELF INS TRUST PO BOX 2226 MOBILE,AL36652 63-6117376	SELF INS	AL	NA	TRUST
(16) WORKER'S COMPENSATION TRUST PO BOX 2226 MOBILE,AL36652 63-6118459	SELF INS	AL	NA	TRUST

Schedule R (Form 990) 2010

Page 3

Part V

Transactions With Related Organizations (Complete if the organization answered "Yes" on Form 990, Part IV, line 34, 35, 35A, or 36.)

Note. Complete line 1 if any entity is listed in Parts II, III or IV.

Yes

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 other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

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

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

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

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

Yes

h Exchange of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

Yes

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

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

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

Yes

m Sharing of facilities, equipment, mailing lists, or other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

n Sharing of paid employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

o Reimbursement paid to other organization for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

p Reimbursement paid by other organization for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

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

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) WORKER'S COMPENSATION TRUST	Q	75,373	CASH
(1)
(2)
(3)
(4)
(5)
(6)

Schedule R (Form 990) 2010

Page 4

Part VI

Unrelated Organizations Taxable as a Partnership (Complete if the organization answered "Yes" on Form 990, Part IV, line 37.)

Provide the following information for each entity taxed as a partnership through which the organization conducted more than five percent of its activities (measured by total assets or gross revenue) that was not a related organization. See instructions regarding exclusion for certain investment partnerships.

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

Schedule R (Form 990) 2010

Page 5

Part VII

Supplemental Information

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

Identifier	Return Reference	Explanation

Additional Data

Software ID:
Software Version:

1	Briefly describe the organization’s mission or most significant activities: OUR MISSION IS "LIFE", LEADERSHIP, INTEGRITY, FAMILY, EXCELLENT SERVICE. TO PROVIDE QUALITY PATIENT CARE THROUGH A DYNAMIC HEALTHCARE SYSTEM.
2	Check this box
3	Number of voting members of the governing body (Part VI, line 1a) ....	3	4
4	Number of independent voting members of the governing body (Part VI, line 1b) ....	4	3
5	Total number of individuals employed in calendar year 2010 (Part V, line 2a) ...	5	458
6	Total number of volunteers (estimate if necessary) ....	6	28
7a	Total unrelated business revenue from Part VIII, column (C), line 12 ..	7a	327,880
b	Net unrelated business taxable income from Form 990-T, line 34 ..	7b	102,549

		Prior Year	Current Year
8	Contributions and grants (Part VIII, line 1h) .........	757,957	0
9	Program service revenue (Part VIII, line 2g) .........	66,360,742	60,135,802
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	12,099	9,401
11	Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)	225,191	98,055
12	Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)...................	67,355,989	60,243,258
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...		0
14	Benefits paid to or for members (Part IX, column (A), line 4) ....		0
15	Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10)	19,548,579	17,272,709
16a	Professional fundraising fees (Part IX, column (A), line 11e)....		0
b	Total fundraising expenses (Part IX, column (D), line 25) 0
17	Other expenses (Part IX, column (A), lines 11a–11d, 11f–24f)....	50,245,708	43,241,768
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	69,794,287	60,514,477
19	Revenue less expenses. Subtract line 18 from line 12......	-2,438,298	-271,219
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16)............	29,297,265	27,539,802
21	Total liabilities (Part X, line 26)............	46,595,496	45,072,852
22	Net assets or fund balances. Subtract line 21 from line 20 .....	-17,298,231	-17,533,050

Sign Here

	Signature of officer	Date

	Type or print name and title.

Paid Preparer's Use Only	Preparer's signature	Date	Check if self- employed	Preparer’s taxpayer identification number (see instructions)
	Firm’s name (or yours if self-employed), address, and ZIP + 4			EIN
				Phone no.


4a	(Code: ) (Expenses $ 47,188,226 including grants of $ ) (Revenue $ 59,807,922 )
	SEE SCHEDULE O INFIRMARY HEALTH HOSPITALS, INC. ("IHHI") OPERATES INFIRMARY WEST, A 124 BED ACUTE CARE HOSPITAL, AND INFIRMARY LONG-TERM ACUTE CARE HOSPITAL, A 191 BED LONG-TERM CARE HOSPITAL. BOTH HOSPITALS PROVIDE SERVICES NECESSARY TO DELIVER ESSENTIAL HEALTHCARE TO THE GULF COAST COMMUNITY REGARDLESS OF RACE, CREED, SEX, NATIONAL ORIGIN, HANDICAP, OR AGE. IHHI SERVICED 2,261 INPATIENTS AND PROVIDED MORE THAN 37,000 OUTPATIENT SERVICES DURING THE YEAR ENDING MARCH 31, 2011. IHHI OPERATES A FULL-TIME LEVEL II EMERGENCY DEPARTMENT, OPEN TO ALL PERSONS, WITHOUT REGARD TO ABILITY TO PAY, WHICH TREATED 19,585 PATIENTS DURING THE YEAR. THERE ARE MORE THAN 550 PHYSICIANS ON THE OPEN MEDICAL STAFF. IHHI PARTICIPATES IN THE MEDICARE AND MEDICAID PROGRAMS. MEDICARE AND MEDICAID PATIENTS ACCOUNTED FOR 51.08% OF TOTAL INPATIENT VISITS AND 22.19% OF OUTPATIENT GROSS REVENUE IN FISCAL 2011. WHILE THE HOSPITALS ARE REIMBURSED TO SOME EXTENT FOR TREATING MEDICARE AND MEDICAID PATIENTS, THE TOTAL RECEIVED WAS 40,862,000 LESS THAN WHAT WOULD HAVE BEEN RECEIVED HAD THESE PROGRAMS PAID FULL CHARGES. IN ADDITION TO SERVING MEDICARE AND MEDICAID PATIENTS, IHHI PROVIDES CARE TO PATIENTS WHO MEET THE CRITERIA OF ITS CHARITY CARE POLICY. IHHI HAS EXPANDED THE FEDERAL POVERTY GUIDELINE TO AFFORD CHARITABLE CARE TO LARGER NUMBERS OF ITS PATIENT POPULATION. THE CHARITY CARE PROCESS IS ADMINISTERED IN A NON-DISCRIMINATORY MANNER. THE AMOUNT OF CHARGES FORGEONE FOR HEALTHCARE SERVICES AND SUPPLIES FURNISHED UNDER THIS CHARITY CARE POLICY FOR THE YEAR ENDING MARCH 31, 2011 WS 2,317,700. INFIRMARY LONG-TERM ACUTE CARE IS THE ONLY FACILITY OF ITS KIND ON THE ALABAMA GULF COAST. IT IS A HOSPITAL SPECIFICALLY DESIGNED TO MEET THE SPECIAL NEEDS OF PATIENTS REQUIRING EXTENDED ACUTE MEDICAL CARE AND REHABILITATION. WE CONSIDER THE PATIENT'S FAMILY VITAL MEMBERS OF THE MEDICAL CARE TEAM AND AS SUCH EDUCATION FOR THE PATIENT AS WELL AS THE FAMILY IS AN IMPORTANT PART OF THE HEALING PROCESS. THROUGH AFFILIATION WITH THE UNIVERSITY OF SOUTH ALABAMA (USA), IHHI PROVIDED A WIDE CLINICAL AND EDUCATIONAL ENVIRONMENT FOR NURSING AND MEDICAL STUDENTS. CLINICAL FACILITIES WERE MADE AVAILABE FOR ROTATIONS OF EIGHT USA COLLEGE OF MEDICINE RESIDENTS. RESIDENT AND FELLOWSHIP PROGRAMS IN CARDIOLOGY, PULMONARY MEDICINE, GASTROENTEROLOGY, RADIOLOGY, SURGERY, AND PATHOLOGY UTILIZE THE CAMPUS OF INFIRMARY WEST FOR REAL TIME CLINICAL EXPERIENCES, AS WELL AS GRAND ROUNDS FOR ENHANCEMENT OF LEARNING OPPORTUNITIES. IN ADDITION, IHHI PROVIDED PRACTICUM EXPERIENCES TO STUDENTS IN PHYSICAL AND OCCUPATIONAL THERAPY, AS WELL AS RESPIRATORY MEDICINE.

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$ 47,188,226

(A) Name and Title	(B) Average hours per week (describe hours for related organizations in Schedule O)	(C) Position (check all that apply)			(D) Reportable compensation from the organization (W- 2/1099-MISC)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)	(F) Estimated amount of other compensation from the organization and related organizations
(A) Name and Title
(1) D MARK NIX PRESIDENT &	5.00	X	X		0	848,100	202,466
(2) MICHAEL HOLBERG DIRECTOR	5.00	X			0	0	0
(3) TIM ROSSON DIRECTOR	5.00	X			0	0	0
(4) LAURA MORRISSETTE CLARK DIRECTOR	5.00	X			0	0	0
(5) FRED T STIMPSON III CHAIRMAN	5.00	X	X		0	0	0
(6) T BESTOR WARD III CHAIRMAN	5.00	X	X		0	0	0
(7) ALAN C WHALEY VP/ADMINISTR	40.00		X		0	508,689	102,097
(8) JOSEPH L DENTON TREASURER	5.00		X		0	435,291	83,393
(9) OWEN BAILEY VICE PRESIDE	5.00		X		0	317,952	70,094
(10) E WATSON SMITH SECRETARY	5.00		X		0	272,567	15,428
(11) SCOTT A BROWNING SECRETARY	5.00		X		0	204,191	27,600
(12) DARAN MASON PHYSICIAN	40.00			X	251,934	0	10,191
(13) DEENA ROBERSON PHARMACIST	40.00			X	136,885	0	11,140
(14) ANSLEY WHEAT PHARMACY MAN	40.00			X	132,825	0	3,483
(15) TINA VANDERHEIDEN DIRECTOR OF	40.00			X	116,945	0	6,164

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)............	638,589	2,586,790	532,056

				(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
g	Noncash contributions included in lines 1a-1f:$
h	Total. Add lines 1a-1f.......
			Business Code
2a	PROGRAM SERVICE REVENUE		900,099	59,807,922	59,807,922
b	REFERENCE LABORATORY REV		621,500	327,880		327,880
c
d
e
f	All other program service revenue .
g	Total. Add lines 2a–2f........			60,135,802
3	Investment income (including dividends, interest
	and other similar amounts).....			9,401			9,401
4	Income from investment of tax-exempt bond proceeds..
5	Royalties............
		(i) Real	(ii) Personal
6a	Gross Rents	39,213
b	Less: rental expenses
c	Rental income or (loss)	39,213
d	Net rental income or (loss).......			39,213			39,213
		(i) Securities	(ii) Other
7a	Gross amount from sales of assets other than inventory
b	Less: cost or other basis and sales expenses
c	Gain or (loss)
d	Net gain or (loss)..........
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..
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...
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..
Miscellaneous Revenue			Business Code
11a	CAFETERIA		722,210	-890			-890
b	ALL OTHER REVENUE		900,099	59,732			59,732
c
d	All other revenue ....
e	Total. Add lines 11a–11d ......			58,842
12	Total revenue. See Instructions....			60,243,258	59,807,922	327,880	107,456


				(A) Beginning of year		(B) End of year
1	Cashnon-interest-bearing ..........			1,925	1	1,925
2	Savings and temporary cash investments .......			6,961,430	2	5,036,002
3	Pledges and grants receivable, net .........				3
4	Accounts receivable, net .........			6,201,567	4	6,020,205
5	Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
	Schedule L ..........				5
6	Receivables from other disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B). Complete Part II of
	Schedule L ..........				6
7	Notes and loans receivable, net .............				7
8	Inventories for sale or use ..............			666,314	8	665,848
9	Prepaid expenses and deferred charges ............			1,732,324	9	2,709,491
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	14,055,963
b	Less: accumulated depreciation. .....	10b	6,438,786	7,929,425	10c	7,617,177
11	Investments—publicly traded securities ..........			294,184	11	393,533
12	Investments—other securities. See Part IV, line 11 ......				12
13	Investments—program-related. See Part IV, line 11 ..				13
14	Intangible assets .........				14
15	Other assets. See Part IV, line 11 ...........			5,510,096	15	5,095,621
16	Total assets. Add lines 1 through 15 (must equal line 34)...			29,297,265	16	27,539,802
17	Accounts payable and accrued expenses .			5,809,585	17	5,985,836
18	Grants payable ..........				18
19	Deferred revenue ..........			302,823	19	1,181,654
20	Tax-exempt bond liabilities ..........				20
21	Escrow or custodial account liability. Complete Part IV of Schedule D..				21
22	Payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........				22
23	Secured mortgages and notes payable to unrelated third parties ..				23
24	Unsecured notes and loans payable to unrelated third parties ....				24
25	Other liabilities. Complete Part X of Schedule D.....			40,483,088	25	37,905,362
26	Total liabilities. Add lines 17 through 25.....			46,595,496	26	45,072,852
	Organizations that follow SFAS 117, check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets .....			-17,298,231	27	-17,533,050
28	Temporarily restricted net assets .....				28
29	Permanently restricted net assets .....				29
	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 .....			-17,298,231	33	-17,533,050
34	Total liabilities and net assets/fund balances .....			29,297,265	34	27,539,802