TY 2010 Form 990

(A) Name and Title	(B) Average hours per week (describe hours for related organizations in Schedule O)	(C) Position (check all that apply)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)
(1) William Brown Board Member	1.00	X		0	0
(2) Susan Gallagher Board Member Vice-Chair/Secretary	1.00	X	X	0	0
(3) Elzie Higginbottom Board Member	1.00	X		0	0
(4) William Kresse Board Member	1.00	X		0	0
(5) John McCarthy Board Member/Chair	1.00	X	X	0	0
(6) Betsy Meisenheimer Board Member	1.00	X		0	0
(7) Sr Lenore Mulvihill RSM Board Member	1.00	X		0	0
(8) Michelle Murphy Board Member	1.00	X		0	0
(9) Langdon Neal Board Member	1.00	X		0	0
(10) Renee Togher Board Member	1.00	X		0	0
(11) Steven Potts Board Member	1.00	X		0	0
(12) Thomas Reger Board Member/Treasurer	1.00	X	X	0	0
(13) Sr Betty Smith RSM Board Member	1.00	X		0	0
(14) Raymond Spaeth II Board Member	1.00	X		0	0
(15) Rohitkumar Vasa Board Member, Physician	1.00	X		15,449	0
(16) Michael McDonnell Board Member/Physician	40.00	X		337,349	21,039
(17) Sr Sheila Lyne RSM President/CEO	40.00		X	10,259	1,341

(A) Name and business address	(B) Description of services	(C) Compensation
CPS MedManagement LLC 6409 Quail Hollow Road Memphis,TN38120	Pharmacy Management	4,636,901
Shiftwise Corporate 2501 SW 1st Ave Suite 200 Portland,OR97201	Automated Staffing Services	3,529,680
University of Illinois 11600 UIH M/C 722 Chicago,IL60612	Residency Program	2,451,198
Aramark CTS Inc 10510 Twin Lakes Parkway Charlotte,NC28269	Biomedical Management	1,930,550
Morrison Management 200 E 5th Ave Suite 126 Naperville,IL60563	Food Service Managment	1,671,781
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 103

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	9,785	9,785
2	Grants and other assistance to individuals in the U.S. See Part IV, line 22	30,680	30,680
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 ....	2,015,415	363,860	1,651,555
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	98,175,861	83,935,637	14,240,224
8	Pension plan contributions (include section 401(k) and section 403(b) employer contributions) ....	1,576,116	1,293,344	282,772
9	Other employee benefits .......	11,281,651	9,568,066	1,713,585
10	Payroll taxes ...........	6,468,005	5,476,987	991,018
11	Fees for services (non-employees):
a	Management ......	9,332,100	6,567,450	2,764,650
b	Legal .........	508,495		508,495
c	Accounting ...........	86,000		86,000
d	Lobbying ...........	120,000		120,000
e	Professional fundraising. See Part IV, line 17..
f	Investment management fees ......
g	Other ..........	16,149,484	11,342,257	4,807,227
12	Advertising and promotion ....	616,992	70	616,922
13	Office expenses .......	39,242,145	35,266,019	3,976,126
14	Information technology ......	4,092,093	3,273,674	818,419
15	Royalties ..
16	Occupancy ...........	5,123,178	1,635,813	3,487,365
17	Travel ............	92,621	15,442	77,179
18	Payments of travel or entertainment expenses for any federal, state, or local public officials ......
19	Conferences, conventions, and meetings ....	271,465	90,432	181,033
20	Interest ...........	684,463	16,018	668,445
21	Payments to affiliates .......
22	Depreciation, depletion, and amortization .....	9,271,525	2,596,929	6,674,596
23	Insurance ..............	6,927,197	6,782,881	144,316
24	Other expenses. Itemize expenses not covered above. (Expenses grouped together and labeled miscellaneous may not exceed 5% of total expenses shown on line 25 below.)
a	Bad Debts	17,157,447	17,157,447
b	Provider Tax	7,194,748	7,194,748
c	Equipment Rent/Maintena	3,971,479	2,389,781	1,581,698
d	Tests and Analysis	1,270,416	1,270,416
e
f	All other expenses	1,929,383	768,733	1,160,650
25	Total functional expenses. Add lines 1 through 24f	243,598,744	197,046,469	46,552,275	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 ..........	8,300	1	8,400
2	Savings and temporary cash investments .......	13,589,876	2	30,545,012
3	Pledges and grants receivable, net .........		3
4	Accounts receivable, net .........	30,656,926	4	37,594,923
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 .............	1,859,410	7	1,484,238
8	Inventories for sale or use ..............	2,592,179	8	2,556,177
9	Prepaid expenses and deferred charges ............	3,809,489	9	5,368,707
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	217,758,439
b	Less: accumulated depreciation. .....	10b	145,120,254	71,162,709	10c	72,638,185
11	Investments—publicly traded securities ..........	14,106,065	11	10,227,823
12	Investments—other securities. See Part IV, line 11 ......		12
13	Investments—program-related. See Part IV, line 11 ..	0	13
14	Intangible assets .........		14
15	Other assets. See Part IV, line 11 ...........	13,848,055	15	14,150,558
16	Total assets. Add lines 1 through 15 (must equal line 34)...	151,633,009	16	174,574,023
	17	Accounts payable and accrued expenses .	28,866,277	17	32,598,885
18	Grants payable ..........		18
19	Deferred revenue ..........	1,501,473	19	1,376,469
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 ..	19,421,961	23	38,613,577
24	Unsecured notes and loans payable to unrelated third parties ....	6,000,000	24
25	Other liabilities. Complete Part X of Schedule D.....	41,593,121	25	33,894,552
26	Total liabilities. Add lines 17 through 25.....	97,382,832	26	106,483,483
		Organizations that follow SFAS 117, check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets .....	50,088,726	27	63,570,377
28	Temporarily restricted net assets .....	3,848,891	28	4,207,603
29	Permanently restricted net assets .....	312,560	29	312,560
	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 .....	54,250,177	33	68,090,540
34	Total liabilities and net assets/fund balances .....	151,633,009	34	174,574,023

- 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

Mercy Hospital and Medical Center

Employer identification number

36-2170152

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 B
(Form 990, 990-EZ,
or 990-PF)

Department of the Treasury
Internal Revenue Service

Schedule of Contributors

Attach to Form 990, 990-EZ, or 990-PF.

OMB No. 1545-0047

2010

Name of organization

Mercy Hospital and Medical Center

Employer identification number

36-2170152

Organization type (check one):

Filers of:

Section:

Form 990 or 990-EZ

501(c)( ) (enter number) organization

4947(a)(1) nonexempt charitable trust not treated as a private foundation

527 political organization

Form 990-PF

501(c)(3) exempt private foundation

4947(a)(1) nonexempt charitable trust treated as a private foundation

501(c)(3) taxable private foundation

Check if your organization is covered by the General Rule or a Special Rule.
Note. Only a section 501(c)(7), (8), or (10) organization can check boxes for both the General Rule and a Special Rule. See instructions.

General Rule

For an organization filing Form 990, 990-EZ, or 990-PF that received, during the year, $5,000 or more (in money or
property) from any one contributor. Complete Parts I and II.

Special Rules

For a section 501(c)(3) organization filing Form 990 or 990-EZ, that met the 33¹/3% support test of the regulations
under sections 509(a)(1) and 170(b)(1)(A)(vi), and received from any one contributor, during the year, a contribution of the
greater of (1) $5,000 or (2) 2% of the amount on (i) Form 990, Part VIII, line 1h, or (ii) Form 990-EZ, line 1. Complete Parts I and II.

For a section 501(c)(7), (8), or (10) organization filing Form 990, or 990-EZ, that received from any one contributor,
during the year, aggregate contributions of more than $1,000 for use exclusively for religious, charitable,
scientific, literary, or educational purposes, or the prevention of cruelty to children or animals. Complete Parts I, II, and
III.

For a section 501(c)(7), (8), or (10) organization filing Form 990, or 990-EZ, that received from any one contributor,
during the year, contributions for use exclusively for religious, charitable, etc., purposes, but these contributions did
not aggregate to more than $1,000. If this box is checked, enter here the total contributions that were received during
the year for an exclusively religious, charitable, etc., purpose. Do not complete any of the parts unless the General Rule
applies to this organization because it received nonexclusively religious, charitable, etc., contributions of $5,000 or more
during the year. ......................... Arrow Bullet

Caution. An Organization that is not covered by the General Rule and/or the Special Rules does not file Schedule B (Form 990,
990-EZ, or 990-PF), but it must answer “No” on Part IV, line 2 of its Form 990, or check the box in the heading of its
Form 990-EZ, or on line 2 of its Form 990-PF, to certify that it does not meet the filing requirements of Schedule B (Form 990,
990-EZ, or 990-PF).

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

Cat. No. 30613XSchedule B (Form 990, 990-EZ, or 990-PF) (2010)

Name of organization Mercy Hospital and Medical Center
Schedule B (Form 990, 990-EZ, or 990-PF) (2010) Page 1 of 1 of Part I
Part I	Contributors (see Instructions)
(a) No.	(b) Name, address, and ZIP + 4	(c) Aggregate contributions	(d) Type of contribution
RESTRICTED	RESTRICTED RESTRICTED RESTRICTED RESTRICTED, RESTRICTED RESTRICTED	$RESTRICTED	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Aggregate contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Aggregate contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Aggregate contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Aggregate contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Aggregate contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
Schedule B (Form 990, 990-EZ, or 990-PF) (2010)

Name of organization Mercy Hospital and Medical Center
Schedule B (Form 990, 990-EZ, or 990-PF) (2010) Page 1 of 1 of Part II
Part II	Noncash Property (see Instructions)
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
Schedule B (Form 990, 990-EZ, or 990-PF) (2010)

Schedule B (Form 990, 990-EZ, or 990-PF) (2010)

Page 1 of 1 of Part III

Name of organization
Mercy Hospital and Medical Center

Employer identification number

36-2170152

Part III

Exclusively religious, charitable, etc., individual contributions to section 501(c)(7), (8), or (10) organizations
aggregating more than $1,000 for the year. (Complete columns (a) through (e) and the following line entry.)
For organizations completing Part III, enter the total of exclusively religious, charitable, etc.,
contributions of $1,000 or less for the year. (Enter this information once. See instructions.) Arrow Bullet

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

(e) Transfer of gift
Transferee's name, address, and ZIP 4	Relationship of transferor to transferee

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

(e) Transfer of gift
Transferee's name, address, and ZIP 4	Relationship of transferor to transferee

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

(e) Transfer of gift
Transferee's name, address, and ZIP 4	Relationship of transferor to transferee

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

(e) Transfer of gift
Transferee's name, address, and ZIP 4	Relationship of transferor to transferee

Schedule B (Form 990, 990-EZ, or 990-PF) (2010)

Additional Data

Software ID:
Software Version:

- 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

Mercy Hospital and Medical Center

Employer identification number

36-2170152

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.)		(b) Affiliated Group Totals
1a	Total lobbying expenditures to influence public opinion (grass roots lobbying) ......
b	Total lobbying expenditures to influence a legislative body (direct lobbying) .......
c	Total lobbying expenditures (add lines 1a and 1b) ...................
d	Other exempt purpose expenditures ........................
e	Total exempt purpose expenditures (add lines 1c and 1d) ...............
f	Lobbying nontaxable amount. Enter the amount from the following table in both columns.
	If the amount on line 1e, column (a) or (b) is:The lobbying nontaxable amount is:
	Not over $500,00020% of the amount on line 1e.
	Over $500,000 but not over $1,000,000$100,000 plus 15% of the excess over $500,000.
	Over $1,000,000 but not over $1,500,000$175,000 plus 10% of the excess over $1,000,000.
	Over $1,500,000 but not over $17,000,000$225,000 plus 5% of the excess over $1,500,000.
	Over $17,000,000$1,000,000.

g	Grassroots nontaxable amount (enter 25% of line 1f) .................
h	Subtract line 1g from line 1a. If zero or less, enter -0-. ................
i	Subtract line 1f from line 1c. If zero or less, enter -0-. ................
j	If there is an amount other than zero on either line 1h or line 1i, did the organization file Form 4720 reporting section 4911 tax for this year? ......................................	Yes No

4-Year Averaging Period Under Section 501(h) (Some organizations that made a section 501(h) election do not have to complete all of the five columns below. See the instructions for lines 2a through 2f on page 4.)
Lobbying Expenditures During 4-Year Averaging Period
	Calendar year (or fiscal year beginning in)	(a) 2007	(b) 2008	(c) 2009	(d) 2010	(e) Total

2a	Lobbying non-taxable amount

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

c	Total lobbying expenditures

d	Grassroots non-taxable amount

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

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? ........

Yes

120,000

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

Other activities? If "Yes," describe in Part IV ..........................

Yes

16,482

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

136,482

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
Explanation of Other Lobbying Activities:	Part II-B, Line 1i:	American Hospital Association lobbying dues - $10,027 Metropolitan Chicago Healthcare Council lobbying dues - $6,455

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

Mercy Hospital and Medical Center

Employer identification number

36-2170152

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 .................	6,319,970		6,319,970
b	Buildings ................	56,303,057	41,932,528	14,370,529
c	Leasehold improvements ............	8,707,029	2,155,973	6,551,056
d	Equipment ................	143,105,352	100,998,815	42,106,537
e	Other .................	3,323,031	32,938	3,290,093
Total. Add lines 1a-1e. (Column (d) should equal Form 990, Part X, column (B), line 10(c).)........				72,638,185

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) Third Party Settlements				4,168,512
(2) Interest in Net Assets of Foundation				3,736,573
(3) Unamortized Financing Costs				3,522,605
(4) Investment in Joint Ventures				1,550,105
(5) Intangible Assets				342,153
(6) Cash Surrender Value				740,502
(7) Deferred Cost - Miscellaneous				90,108


Total. (Column (b) should equal Form 990, Part X, col.(B) line 15.)...........				14,150,558

Part X

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

1.(a) Description of Liability		(b) Amount
Federal Income Taxes
Reserve for Self Insurance Claims		33,213,500
Due to Parent		681,052







Total. (Column (b) should equal Form 990, Part X, col.(B) line 25.)		33,894,552
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
Description of Uncertain Tax Positions Under FIN 48:	Part X:	Mercy Hospital and Medical Center has received a determination letter from the Internal Revenue Service stating that it is exempt from the payment of federal income taxes under Section 501(c)(3) of the Internal Revenue Code. Mercy Hospital and Medical Center files a Form 990 (Return of Organization Exempt from Income Tax) annually. When this return is filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would ultimately be sustained. UBIT is reported on Form 990T, as appropriate. The benefit of a tax position is recognized in the consolidated financial statements in the period during which, based on all available evidence, management believes that it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions are not offset or aggregated with other positions. Tax positions that meet the "more likely than not" recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely to be realized on settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Form 990 filed by Mercy Hospital and Medical Center is subject to examination by the Internal Revenue Service (IRS) up to three years from the extended due date of each return. Form 990 filed by Mercy Hospital and Medical Center is no longer subject to examination for the years ended June 30, 2007 and prior.

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

Mercy Hospital and Medical Center

Employer identification number

36-2170152

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:

Yes

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: .....

Yes

200% 250% 300% 350% 400% Other 60000.0000000000 %

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

Yes

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

	(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) ..	3,891,416		3,891,416	1.720 %
b Unreimbursed Medicaid (from Worksheet 3, column a) .	62,377,443	73,392,427	-11,014,984	0 %
c Unreimbursed costs—other means-tested government programs (from Worksheet 3, column b) ....
dTotal Charity Care and Means-Tested Government Programs .....	66,268,859	73,392,427	-7,123,568	1.720 %
Other Benefits e Community health improvement services and community benefit operations (from (Worksheet 4) ....	7,706,338	7,127,569	578,769	0.260 %
f Health professions education (from Worksheet 5) ..	6,978,601	4,078,518	2,900,083	1.280 %
g Subsidized health services (from Worksheet 6) ..	39,792,387	34,861,750	4,930,637	2.180 %
h Research (from Worksheet 7)
i Cash and in-kind contributions to community groups (from Worksheet 8) ..	1,552,745		1,552,745	0.690 %
jTotal Other Benefits ...	56,030,071	46,067,837	9,962,234	4.410 %
kTotal. Add lines 7d and 7j. ..	122,298,930	119,460,264	2,838,666	6.130 %

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

Yes

Enter the amount of the organization's bad debt expense (at cost).....

6,957,344

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

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).....

90,170,910

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

72,081,729

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

18,089,181

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

Yes

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......

Yes

Part IV

Management Companies and Joint Ventures

(a) Name of entity	(b) Description of primary activity of entity	(c) Organization's profit % or stock ownership %	(d) Officers, directors, trustees, or key employees' profit % or stock ownership%	(e) Physicians' profit % or stock ownership %
11 Mercy Adv MRI LLC	Sub-lease MRI Equipment	65.000 %	0 %	35.000 %
22 Mercy Hrt & Vascular LLC	Sub-lease CT Equipment	51.000 %	0 %	49.000 %
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?1 Name and address		Other (Describe)
1	Mercy Hospital and Medical Center 2525 South Michigan Avenue Chicago,IL606162477	X	X	X	X

Schedule H (Form 990) 2010

Page 4

Part VFacility Information (continued)

Section B. Facility Policies and Practices.

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

Name of Hospital Facility:NA

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

				Yes	No
Community Health Needs Assessment (Lines 1 through 7 are optional for 2010)
1	During the tax year or any prior tax year, did the hospital facility conduct a community health needs assessment (“Needs Assessment”)? If “No,” skip to question 8. .....................		1
	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?14
Name and address		Type of Facility (Describe)
1	Mercy Medical on Pulaski - North 5525 South Pulaski Chicago,IL60629	Clinic - Primary and Specialty Physicians
2	Mercy Medical on Pulaski - North 5525 South Pulaski Chicago,IL60629	Clinic - Primary and Specialty Physicians
3	Mercy Medical on Pulaski - North 5525 South Pulaski Chicago,IL60629	Clinic - Primary and Specialty Physicians
4	Mercy Medical on Pulaski - North 5525 South Pulaski Chicago,IL60629	Clinic - Primary and Specialty Physicians
5	Mercy Medical on Pulaski - North 5525 South Pulaski Chicago,IL60629	Clinic - Primary and Specialty Physicians
6	Mercy Medical on Pulaski - North 5525 South Pulaski Chicago,IL60629	Clinic - Primary and Specialty Physicians
7	Mercy Medical on Pulaski - North 5525 South Pulaski Chicago,IL60629	Clinic - Primary and Specialty Physicians
8	Mercy Medical on Pulaski - North 5525 South Pulaski Chicago,IL60629	Clinic - Primary and Specialty Physicians
9	Mercy Medical on Pulaski - North 5525 South Pulaski Chicago,IL60629	Clinic - Primary and Specialty Physicians
10	Mercy Medical on Pulaski - North 5525 South Pulaski Chicago,IL60629	Clinic - Primary and Specialty Physicians
11	Mercy Medical on Pulaski - North 5525 South Pulaski Chicago,IL60629	Clinic - Primary and Specialty Physicians
12	Mercy Medical on Pulaski - North 5525 South Pulaski Chicago,IL60629	Clinic - Primary and Specialty Physicians
13	Mercy Medical on Pulaski - North 5525 South Pulaski Chicago,IL60629	Clinic - Primary and Specialty Physicians
14	Mercy Medical on Pulaski - North 5525 South Pulaski Chicago,IL60629	Clinic - Primary and Specialty Physicians

Schedule H (Form 990) 2010

Page 8

Part VI

Supplemental Information

Complete this part to provide the following information.

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

Identifier	ReturnReference	Explanation
		Part I, Line 3c: Mercy Hospital and Medical Center uses the FPG to determine free and discounted care. Patients with eligible assets and income above the 200%, but not exceeding 600% of FPG, adjusted for family size, will receive a discount on medically necessary services provided to them, based upon a sliding scale established by hospital policy.
		Part I, Line 6a: Mercy Hospital and Medical Center prepared an annual Community Benefit Report which is submitted to the Attorney General of the State of Illinois.
		Part I, Line 7: The costing methodology used to calculate the amounts reported in the table is the cost-to-charge ratio derived from the IRS's Schedule H, Worksheet 2.
		Part I, Line 7g: Mercy Hospital and Medical Center did not include any costs attributable to a physician clinic as Subsidized Health Services.
		Part I, L7 Col(f): There was a total Bad Debt Expense of $17,157,447 subtracted from total expenses.
		Part II: None
		Part III, Line 4: The cost methodology used to calculate the amount reported as Bad Debt Expense, at cost, is the cost-to-charge ratio derived from the IRS's Schedule H, worksheet 2.Audited Financial Statements footnote regarding bad debt expense:The collection of receivables from third-party payors and patients is the Corporation's primary source of cash for operations and is critical to its operating performance. The primary collection risks relate to uninsured patient accounts and patient accounts for which the primary insurance payor has paid, but patient responsibility amounts (deductibles and co-payments) remain outstanding. Patient receivables, where a third-party payor is responsible for paying the amount, are carried at a net amount determined by the original charge for the service provided, less an estimate made for contractual adjustments or discounts provided to third-party payors. Patient receivables due directly from the patients are carried at the original charge for the service provided less amounts covered by third-party payors and less an estimated allowance for uncollectible receivables. Management estimates this allowance based on the aging of its accounts receivable and its historical collection experience for each payor type. Recoveries of receivables previously written off are recorded as a reduction of the provision for uncollectible accounts when received. The past due status of receivables is determined on a case-by-case basis depending on the payor responsible. Interest is generally not charged on past due accounts. Receivables or payables related to estimated settlements on various payor contracts, primarily Medicare, are reported as amounts due from or to third-party payors. Significant changes in payor mix, business office operations, economic conditions or trends in federal and state governmental health care coverage could affect the Corporation's collection of accounts receivable, cash flows and results of operations.
		Part III, Line 8: The costing methodology used to calculate the amount reported as Medicare Revenue and Medicare Allowance Cost were derived from the Medicare Cost Report.
		Part III, Line 9b: Mercy Hospital and Medical Center's Charity Care Policy contains provisions for the collection practices to be followed for patients who are known to qualify for charity care or financial assistance. MANG and Financial Assistance Applications will be taken for all uninsured inpatients that have not yet applied for Medicaid. Medical Assistance-No Grant (MANG) and Financial Assistance Applications may also be taken on outpatients on a case-by-case basis. However, these patients will be assessed for Charity or Financial Assistance only if they are denied for Medicaid. During the Financial Assistance process, the patient may be treated as self-pay, in accordance with hospital policies. Failure to comply with the payment arrangement terms of any remaining balance after the financial assistance adjustment is applied may result in the claim being referred to an outside collection agency. The discount will still be applicable. Accounts already placed at an outside agency may be considered for Charity of Financial Assistance. The patient must provide required information for the agency to complete the Charity or Financial Assistance application. Once approved, the account will be recalled from the agency and adjusted in accordance with Mercy's Charity Care Policy.
		Part VI, Line 2: To plan and deliver medical care, Mercy Hospital and Medical Center annually assesses the health care needs of our community using proprietary and community data and sources, including admission and discharge information, community demographics including race, ethnicity, gender and age, patient and community surveys, targeted community needs assessments and collaborative relationships and health events with community agencies and groups including neighborhood churches, local schools and universities, elderly/retirement associations and centers, and community based health centers. Reviewing and analyzing gathered data confirms an ethnically, racially and age diverse community with specific health challenges, needs and barriers that face these populations.Mercy Hospital and Medical Center is in the process of developing a formal assessment infrastructure that will expand our community assessment process and facilitate a stronger strategy to address our community's needs.
		Part VI, Line 3: All of Mercy Hospital and Medical Center's patient statements include a message, in two languages, to advise the patient of the availability of the hospital's financial assistance programs and indicates the patient may qualify for the program. The message includes phone numbers to call and hours of operation. Mercy Hospital's website (www.mercy-chicago.org) provides detailed information regarding the financial assistance programs available, provides the phone number of the financial counselors and the ability to download a request form for determination of charity care eligibility. Patients are given a packet upon admission that contains information about Mercy Hospital and Medical Center's financial assistance program and other financial assistance programs available (All Kids formerly KidsCare, Illinois Breast and Cervical Cancer Program-IBCCP) etc. and meet for a one-on-one interview with a Financial Aid Counselor. Mercy Hospital and Medical Center's Financial Counselors undergo financial assistance training upon employment plus an annual (and as-needed) in-service training to update new laws and policy changes. All third parties are required to follow hospital policies regarding the availability of financial assistance and provide appropriate forms to determine if eligibility is met.
		Part VI, Line 4: Eighteen Chicago zip codes make up the primary service area for Mercy Hospital and Medical Center. Four zip codes (60616, 60608, 60609 and 60653) make up approximately 50% of Mercy's inpatient admissions. Ten zip codes (60632, 60629, 60636, 60621, 60615, 60637, 60649, 60619, 60620 and 60628) are located South and West of the core market. Four zip codes (60604, 60605, 60661 and 60607) are located to the North. Mercy's primary service areas are the Near-South side and Mid-South sides of Chicago and serve the ethnically diverse neighborhoods of Chinatown, Pilsen, Armour Square, Douglas, Oakland, Fuller Park, Grant Boulevard and Kenwood, which together extend from Roosevelt Road on the North, Lake Michigan on the East, 51st/55th Streets on the South and as far West as Western Avenue. In Mercy's core market, approximately 79,000 or 30.84% of individuals are below the Federal Poverty Guidelines (FPG). In Mercy's secondary market, approximately 157,000 or 22.21% of individuals are below FPG. In the zip codes North of the hospital, approximately 6,700 or 20.55% are below poverty levels.
		Part VI, Line 6: Mercy Hospital and Medical Center extends medical staff privileges to all qualified physicians. This helps ensure high quality and easily accessible care is available in a variety of primary and specialty care areas.Mercy Hospital and Medical Center participates in Medicare, Medicaid, Champus, Tri-care, and All Kids, and Family Care and other government sponsored health care programs and offers charity care on a sliding fee scale. Mercy's state-of-the-art Emergency Center offers comprehensive emergency services in a spacious, private and compassionate setting. The Center features 25 private treatment suites, two nurses' stations, spacious waiting areas, private triage areas and a six-bay ambulance area with private entrance. One of the treatment suites is a "decontamination" room for emergencies involving chemical exposure. As a Level II Trauma Center, the Center is equipped to handle all medical emergencies, injuries and illnesses with 24 hour access to both trauma surgeons and a wide array of medical specialists. Mercy's Emergency Center serves all people, regardless of ethnicity, gender, religion or ability to pay. Mercy Hospital and Medical Center assures their uninsured and underinsured patients that they will receive the same high quality medical care as those who are insured. During the past two years, Mercy Hospital and Medical Center opened a new state-of-the-art Cancer Center that utilizes the latest cancer technology and physicians that work collaboratively to provide superior cancer care. Mercy Hospital and Medical Center is aggressively addressing disparities in cancer care.Mercy Hospital and Medical Center promotes financial assistance to all who might be eligible to receive it. Policies governing such assistance are available to staff and patients in a variety of manners. Information is available on our website (www.mercy-chicago.org), through an admission packet given to patients, and with one-on-one interviews with Financial Counselors. The information is provided in two languages. Mercy Hospital and Medical Center offers a number of on-going programs that further assist the enhancement of the health status of the population it serves. Mercy offers events focusing on chronic disease, nutrition and exercise, as well, as smoking cessation. Special events include blood pressure screening, Living Well workshops, Identity Theft in Today's Society-Protecting Your Privacy and Security and community blood drives. Wellness and health education classes (i.e. Eat Right Every Bite, Education for Life-Diabetes Management, Center for Weight Management Information Class) are offered regularly and most are free of charge. Since its first chartering, Mercy Hospital and Medical Center has served as a teaching hospital and pioneer in medicine and medical education. Mercy has had a long standing relationship with the University of Illinois College of Medicine and provides residency training in Internal Medicine, Obstetrics and Gynecology and Podiatry. Mercy also has affiliated programs in Surgery, Emergency Medicine and Radiology. Mercy also presents at various community organizations and local schools a program providing attendees information about health care career opportunities, hiring requirements, customer service, and question and answer periods. Several management leaders participate on various community task forces (i.e. Chicago Breast Cancer Task Force) or serve on the board of trustees for various organizations (i.e. Chair of the Board of Trustees of Mother McAuley High School to ensure the provision of high quality education of young women).Consistent with our non-profit status, Mercy Hospital and Medical Center uses operating margin as a catalyst for reinvestment in facilities, technology, staff and medical services for the community.
		Part VI, Line 7: Mercy Hospital and Medical Center, a non-for-profit hospital established in 1852, is Chicago's first hospital. Its mission is to provide a broad spectrum of health care services appropriate to the needs of and accessible to people in the communities it serves. From its very inception, Mercy Hospital has had an unwavering commitment to serving the community, including the underinsured and underprivileged. In order to meet the health care needs of the residents of the community and to maintain Mercy's status as a viable teaching hospital, it is constantly evaluating a strengthening its clinical programs on the main hospital campus and at satellite facilities located throughout the city of Chicago. As an active participant in the health and wellness of its community, Mercy is dedicated to partnering with residents, community leaders, businesses and other health providers to support the health needs and foster the economic growth of the diverse communities served by Mercy. Mercy is relentless in its efforts to make certain that residents have access to appropriate health programs and services and is committed to utilizing its resources to maximize the number of community residents who are able to access programs and services at Mercy. To that end, Mercy is committed to the following goals:1. Mercy will maintain and abide by a charity care policy that offers free and discounted care to those unable to pay for medical care and services. 2. Mercy will provide clinical internships and residencies for physicians, nurses, allied health professionals and other pursuing health related professions and careers. Clinical rotations are provided in Respiratory Therapy, Occupational Therapy and Radiology.3. Mercy will offer education programs, workshops and health fairs for community residents. Programs are offered on a weekly rotating basis. Among health fairs offered are Back to School, Memorial Health, Diabetes and Health and Fitness Awareness Day.4. Mercy partners with Chicago area schools to provide medical care to students, to provide community service opportunities and to mentor students who have expressed an interest in pursuing health careers. Mercy maintains two school-based health centers in Wendell Phillips and Percy Dunbar Vocational Career Academies on the near South Side of Chicago. Both are highly regarded in the community for their role in reducing the barriers adolescents face in seeking health care services. Mercy also provides support and learning opportunities for students attending Christo Rey, De La Salle and other public and private schools in the area. Mercy is also an active participant in Chicago Public School Health Career Academy Program.5. Mercy supports the efforts and programs of the Mercy Family Health Center, which annually provides over 40,000 primary care and specialty visits for its patients.6. Mercy provides outreach programs that provide health screening and health education to community residents. Programs offered include (but not limited to) Go Red for Women, CarFit Community Event, Lunch and Learn Series, Senior Fest, Wellness Health Screenings and Free People's Clinic.7. Mercy will continue to operate and support the Emergency Department to meet the acute medical care needs of the community. 8. Mercy will provide representatives to area boards and community organizations to assist in improving the health and economic strength of the community.9. Mercy provides free or discounted meeting space for community workshops, meetings and activities.10. Mercy will train and deploy volunteers to meet the needs of its patients and programs. Mercy has approximately 80 volunteers.11. Mercy supports and maintains an eldercare program to offer free information, education and counseling to senior citizens and their families regarding issues related to aging. This program offers assistance with clarifying and applying for governmental and other programs related to health care, medical coverage, housing and other social programs. In some cases a program representative will make home visits to the elderly to address social and medical needs.12. Mercy provides language assistance services at the Hospital and at satellites, to meet the needs of patients and visitors. 13. Mercy participates in research activities to advance medical knowledge and services.14. Mercy is a leader in preparation of its staff and facility to respond to the use or threatened use of bioterrorism, including but not limited to use of viruses, bacteria, fungi, toxins from living organisms, or chemicals to produce death and/or disease in humans and living system.
Reports Filed With States	Part VI, Line 7	IL

Schedule H (Form 990) 2010

Additional Data

Software ID:
Software Version:

- TIN:

Schedule I
(Form 990)

Department of the Treasury
Internal Revenue Service

Grants and Other Assistance to Organizations,
Governments and Individuals in the United States

Complete if the organization answered "Yes," to Form 990, Part IV, line 21 or 22.
lBullet

Attach to Form 990

OMB No. 1545-0047

2010

Open to Public
Inspection

Name of the organization
Mercy Hospital and Medical Center

Employer identification number
36-2170152

Part I

General Information on Grants and Assistance

Does the organization maintain records to substantiate the amount of the grants or assistance, the grantees' eligibility for the grants or assistance, and
the selection criteria used to award the grants or assistance? ....................................

Yes No

Describe in Part IV the organization's procedures for monitoring the use of grant funds in the United States.

Part II

Grants and Other Assistance to Governments and Organizations in the United States. Complete if the organization answered "Yes" to
Form 990, Part IV, line 21 for any recipient that received more than $5,000. Check this box if no one recipient received more than $5,000. Use
Part IV and Schedule I-1 (Form 990) if additional space is needed ......................... lBullet

(a) Name and address of organization or government	(b) EIN	(c) IRC Code section if applicable	(d) Amount of cash grant	(h) Purpose of grant or assistance
(1) Mercy Diagnostic and Treatment Center2525 South Michigan Avenue Chicago,IL606162477	36-3720708	501(c)(3)	9,785	Maternal/Child Health

Enter total number of section 501(c)(3) and government organizations ......................... Bullet Image

Enter total number of other organizations ................................ . Bullet Image

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

Cat. No. 50055P

Schedule I (Form 990) 2010

Page 2

Part III

Grants and Other Assistance to Individuals in the United States. Complete if the organization answered "Yes" to Form 990, Part IV, line 22.
Use Schedule I-1 (Form 990) if additional space is needed.

(a)Type of grant or assistance	(b)Number of recipients	(c)Amount of cash grant
(1) Employee Scholarship Program	5	30,680

Part IV

Supplemental Information. Complete this part to provide the information required in Part I, line 2, and any other additional information.

Identifier	Return Reference	Explanation
Procedure for Monitoring Grants in the U.S.:	Part I, Line 2:	Schedule I, Part I, Line 2: Organization's relevant disbursements are monitored to ensure that they are made for intended use.

Schedule I (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

Mercy Hospital and Medical Center

Employer identification number

36-2170152

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? ........

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)	(F) Compensation reported in prior Form 990 or Form 990-EZ
(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) Michael McDonnell	(i) (ii)	224,349 0	113,000 0	0 0	4,821 0	16,218 0	358,388 0	0 0
(2) Richard Cerceo	(i) (ii)	327,701 0	0 0	0 0	8,355 0	13,458 0	349,514 0	0 0
(3) Thomas J Garvey	(i) (ii)	308,892 0	0 0	0 0	9,140 0	15,345 0	333,377 0	0 0
(4) Barbara Townsend	(i) (ii)	224,349 0	0 0	0 0	4,784 0	8,346 0	237,479 0	0 0
(5) Carla Campbell	(i) (ii)	157,726 0	0 0	0 0	4,856 0	18,270 0	180,852 0	0 0
(6) Paul Jones	(i) (ii)	325,759 0	0 0	0 0	0 0	429 0	326,188 0	0 0
(7) Ann Garcelon	(i) (ii)	170,206 0	64,800 0	0 0	5,658 0	7,065 0	247,729 0	0 0
(8) Charles Lawler	(i) (ii)	196,276 0	24,000 0	0 0	0 0	17,643 0	237,919 0	0 0
(9) Phillip Ahn	(i) (ii)	182,127 0	62,667 0	0 0	5,007 0	13,437 0	263,238 0	0 0
(10) Abdulhamid Kanji	(i) (ii)	207,591 0	0 0	0 0	0 0	9,994 0	217,585 0	0 0

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

Schedule J (Form 990) 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

Mercy Hospital and Medical Center

Employer identification number

36-2170152

Identifier	Return Reference	Explanation
Form 990, Part VI, Section A, line 6		Mercy Hospital and Medical Center has one member, Mercy Health System of Chicago.
Form 990, Part VI, Section A, line 7b		The following items must be submitted to and received approval of the System prior to becoming effective. A. Any changes in the mission, vision or values of the Medical Center. B. Amendments of the Articles of Incorporation or by-laws of the Medical Center. C. Merger, consolidation, dissolution or name change of the Medical Center. D. Any expenditure by the Medical Center in excess of $1,000,000, not previously approved in the Annual Budget, and, subject to the above-stated amount, any plan for construction, purchase, sale, lease, exchange, gift, pledge or mortgage of any real property or interest therein, or the disposition of any asset of the Medical Center not previously approved in the Annual Budget. E. Annual Budget and Strategic Plan of the Medical Center. F. Election or removal of the President/CEO of the Medical Center. G. Long-term borrowing by the Medical Center where repayment is due more than three years from date debt is incurred. H. Candidates elected as Board members or officers of the Medical Center. I. Removal of a director or officer of the Medical Center.
Form 990, Part VI, Section B, line 11		A draft copy of Form 990 and related schedules is provided to senior management for review and comments. The Finance Committee of the Board of Directors reviews a final draft of Form 990 and related schedules and is given an opportunity to ask questions and comment. The Board of Directors is provided with a copy of Form 990 and related schedules to review and discuss before it is filed.
	Form 990, Part VI, Section B, line 12c	The purpose of the Conflict of Interest Policy is to protect the interest of the Corporation when it is contemplating entering into a transaction or arrangement that might benefit the private interest of a Corporate Person (defined as a member of the Board of Directors, Board Committee members and officers) or might be adverse to the Corporation. The policy is intended to supplement, but not replace, any applicable state laws governing conflicts of interest applicable to nonprofit and charitable corporations. Definitions: A. Any Corporate Person who has a direct or indirect financial interest, as defined below, is an interested person. If a person is an interested person with respect to any entity in the health care system of which the Corporation is a part, he or she is an interested person with respect to all entities in the health care system. B. Financial Interest - A person has a financial interest if the person has, directly or indirectly, through business, investment or family: 1. An ownership or investment interest in any entity with which the Corporation has a transaction or arrangement, or 2. A compensation arrangement with the Corporation or with any entity or individual with which the Corporation has a transaction or arrangement, or 3. A potential ownership or investment interest in, or compensation arrangement with, any entity or individual with whom the Corporation is negotiating a transaction or arrangement. Compensation includes direct and indirect remuneration as well as gifts or favors that are substantial in nature. 4. A financial interest is not necessarily a conflict of interest. Under Section III-B, a person who has a financial interest may have a conflict of interest only if the Audit Committee decides that a conflict of interest exists. Procedures: A. Duty to Disclose - An interested Person or Corporate Person must disclose the existence of his or her financial interest and must be given the opportunity to disclose all material facts to the Audit Committee. B. Determining whether a Conflict of Interest Exists - After disclosure of the financial interest and all material facts, and after any discussion with the interested person, the Audit Committee decides if a conflict of interest exists. C.Procedures for Addressing the Conflict of Interest: 1. After exercising due diligence, the Audit Committee shall determine how the conflict of interest will be resolved. The Audit Committee shall recommend appropriate action to the Board of Directors. D. Violations of the Conflicts of Interest Policy: 1. If any Corporate person has reasonable cause to believe that another Corporate Person has failed to disclose actual or possible conflicts of interest, that person shall inform the Audit Committee. The Audit Committee shall inform the subject person of the basis for such believe and afford that person a opportunity to explain the alleged failure to disclose. 2. If, after hearing the response of the person and making further investigation as warranted, the Audit Committee shall take appropriate disciplinary and corrective action. The minutes of the Audit Committee shall contain the names of the person(s) found to have an actual or possible conflict of interest as well as the nature and content of the actual or possible conflict and its discussion, the decision of the Audit Committee as to whether a conflict of interest in fact exists and the committee's recommendation to the Board of Directors. The names of the person(s) present for discussion and the votes relating to the discussion. All Corporate Persons, shall at the time of appointment or commencement to service to the Corporation, and annually thereafter, sign a statement ("Disclosure Certificate") affirming that such person has received a copy of the conflicts of interest policy, has read and understand the policy, has agreed to comply with the policy, and understands that the Corporation is a charitable organization and that in order to maintain its Federal tax exemption it must engage primarily in activities which accomplish one or more of its tax-exempt purposes. The certifier has a continuing and ongoing duty, to immediately report any conflict or duality of interest as same arises. Periodic reviews shall be conducted. Every two years, all Mercy mangers (i.e. employees with the title of supervisor, manager, director, vice president, chief operating officer and/or president/chief executive officer) and certain other key employees will be required to sign an agreement regarding conflicts of interest, which includes a duty to disclose any actual, apparent or potential conflicts. Periodic checks will be conducted by the Human Resources Department to determine changes that have occurred, however, all employees are expected to exercise good judgment and discretion in evaluating a particular activity so as to avoid any actual or apparent conflicts of interest. In addition, all employees have a responsibility to promptly disclose in writing any activity that might be deemed to create a conflict of interest for review and approval by his/her supervisor. Mercy prohibits all employees from accepting gifts, gratuities, or entertainment from individuals and firms with whom Mercy does business. It is also a violation to give gifts to individuals or firms with whom Mercy does business. Excluded from this prohibition is the exchange of normal business courtesies such as luncheons or dinners, when they are proper and consistent with regular business practice. Employees who fail to disclose potential conflicts of interest and/or who engage in an activity that constitutes a conflict of interest will be subject to disciplinary action including termination.
	Form 990, Part VI, Section B, line 15	Mercy Hospital and Medical Center uses an executive compensation survey compiled by Sullivan Cotter & Associates. The Vice President of Human Resources reviews the salary survey data each year and presents the results to the Executive Committee of the Board of Directors. The Executive Committee reviews the data and makes a recommendation to adjust the CEO's salary, when supported by the data, to the full Board of Directors. Minutes of all Board of Director meetings are recorded. Mercy Hospital does not have a formal compensation committee; however, the Executive Committee assumes this function. No outside compensation consultants are used.
	Form 990, Part VI, Section C, line 19	Mercy Hospital and Medical Center makes its governing documents, Conflict of Interest Policy and Financial Statements available to the public upon request.
Changes in Net Assets or Fund Balances:	Form 990, Part XI, line 5:	Change in booked income from Joint Ventures to K1s 36,480. Change in Hospital interest in Net Assets of the Foudation 363,400. Temporarily Restricted Net Assets released for operations -10,335. Total to Form 990, Part XI, Line 5: 389,545.

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

Mercy Hospital and Medical Center

Employer identification number

36-2170152

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) Mercy Health System of Chicago 2525 South Michigan Avenue Chicago,IL606162477 36-3163327	Supporting Organization	IL	501(c)(3)	11 - Type I	N/A		No
(2) Mercy Foundation Inc 2525 South Michigan Avenue Chicago,IL606162477 36-3227350	Fund Raising	IL	501(c)(3)	11 - Type I	N/A	Yes
(3) Mercy Diagnostic and Treatment Center 2525 South Michigan Avenue Chicago,IL606162477 36-3720708	Clinic	IL	501(c)(3)	3	N/A	Yes

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	(e) Predominant income(related, unrelated, excluded from tax under sections 512-514)	(f) Share of total income	(g) Share of end-of-year assets	(h) Disproprtionate allocations?		(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	(j) General or managing partner?		(k) Percentage ownership
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity		(f) Share of total income	(g) Share of end-of-year assets	Yes	No	(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No
(1) Mercy Heart & Vascular LLC 2525 South Michigan Avenue Chicago,IL606162477 20-5272726	Sublease CT Equipment	IL	N/A	Related	626,013	298,256		No			No	51.000 %
(2) Mercy Adv MRI LLC 2525 South Michigan Avenue Chicago,IL606162477 26-2116721	Sublease MRI Equipment	IL	N/A	Related	445,361	1,436,811		No			No	65.000 %

Part IV

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

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(e) Type of entity (C corp, S corp, or trust)
(1) Mercy Services Inc 2525 South Michigan Avenue Chicago,IL606162477 36-3227348	Dormant	IL	N/A	C

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) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

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

Yes

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) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

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

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

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

Yes

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

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

Yes

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) Mercy Foundation Inc	C	425,000	Cash
(2) Mercy Foundation Inc	N	79,639	Cash
(3) Mercy Diagnostic & Treatment Center	P	464,336	Cash
(4) Mercy Foundation Inc	L	315,911	Cash
(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: Mercy fosters an environment of healing, providing access and needed care with compassion and excellence to the diverse communities it serves.
2	Check this box
3	Number of voting members of the governing body (Part VI, line 1a) ....	3	16
4	Number of independent voting members of the governing body (Part VI, line 1b) ....	4	14
5	Total number of individuals employed in calendar year 2010 (Part V, line 2a) ...	5	2,095
6	Total number of volunteers (estimate if necessary) ....	6	0
7a	Total unrelated business revenue from Part VIII, column (C), line 12 ..	7a	347,998
b	Net unrelated business taxable income from Form 990-T, line 34 ..	7b	-1,610

		Prior Year	Current Year
8	Contributions and grants (Part VIII, line 1h) .........	2,145,410	1,357,728
9	Program service revenue (Part VIII, line 2g) .........	246,592,774	254,100,071
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	-66,718	250,649
11	Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)	1,607,761	1,341,114
12	Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)...................	250,279,227	257,049,562
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...	29,822	40,465
14	Benefits paid to or for members (Part IX, column (A), line 4) ....	0	0
15	Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10)	115,153,946	119,517,048
16a	Professional fundraising fees (Part IX, column (A), line 11e)....	0	0
b	Total fundraising expenses (Part IX, column (D), line 25) 0
17	Other expenses (Part IX, column (A), lines 11a–11d, 11f–24f)....	125,983,592	124,041,231
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	241,167,360	243,598,744
19	Revenue less expenses. Subtract line 18 from line 12......	9,111,867	13,450,818
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16)............	151,633,009	174,574,023
21	Total liabilities (Part X, line 26)............	97,382,832	106,483,483
22	Net assets or fund balances. Subtract line 21 from line 20 .....	54,250,177	68,090,540

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 $ 197,046,469 including grants of $ 40,465 ) (Revenue $ 255,024,012 )
	Mercy Hospital and Medical Center is a 479 bed acute care facility providing quality health care to over 200,000 residents embracing a broad cultural mix. Mercy, established in 1852, strives to provide a broad spectrum of health care services, appropriate to the needs of and accessible to people in the communities it serves. Since its inception, Mercy Hospital and Medical Center has had an unwavering commitment to serving the community, including the under-insured and under-privileged.Founded in 1852, Mercy Hospital and Medical Center enjoys the honor of being Chicago's first chartered hospital and the first hospital in Illinois. For more than 155 years, Mercy has been an innovative pioneer in both patient care and medical education, and Mercy's leadership legacy continues today. Recognized nationally for excellence, Mercy stands at the intersection of pioneering medicine and compassionate patient care.Our centers of excellence (twelve in all) and specialty care centers provide leading edge care with a patient-first perspective, and continually pioneer new approaches in the fields of heart and endovascular care, cancer care, women's health care, diabetes treatment and minimally invasive surgery. Mercy is also home to one of the city's leading heart & vascular centers and is currently recognized as one of the nation's 10 Top Cardiovascular Hospitals by Thomson Healthcare.Mercy is steadfastly committed to investing in technologies that allow our providers to deliver the highest quality care. Recent examples of this commitment include:-A hospital-wide implementation of electronic health records, make Mercy one of only 7% of U.S. hospitals to implement EHR.-Recent acquisitions of a state-of-the-art linear accelerator and digital mammography equipment.-Mercy was one of the first hospitals in Illinois to acquire a 64-slice scanner and remains at the forefront of cardiac testing and imaging.-Other plans for Mercy include a planned expansion of our critical care unit and gastrointestinal laboratory suites, providing for enhanced care to patients.Mercy's medical staff consists of more than 489 providers in 32 specialties. Our providers are recognized leaders in their field, both locally and internationally, and are often sough for expert advice and consultation.Mercy has a long and proud tradition of teaching, and medical education remains central to our mission today. Mercy maintains affiliations with Chicago's leading medical universities and offers four freestanding residency programs, as well as three integrated residency programs. Our sponsored residency programs include Internal Medicine, Obstetrics/Gynecology, Diagnostic Radiology and Podiatry. Our affiliated residency programs include Surgery, Emergency Medicine and Pathology.As a major urban hospital, Mercy provides residents with ample caseloads and a broad education experience. Two on-site clinics, the Doctors Office Center and the Mercy Family Health Center, accommodate 65,000 patient visits per year in all major specialties and sub-specialties. There are an additional 100,000 patients visits in Mercy's satellite clinics located throughout the Chicago area.Located minutes from Chicago's Loop, Mercy serves a diverse patient population, ranging from upscale urban redevelopment areas to established ethnic neighborhoods. Mercy's population virtually mirrors that of Chicago, a city known for its ethnic and socioeconomic diversity.Patient Days = 72,463 including 4,502 nursery days.Emergency Room and Cast Room Visits = 58,583

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$ 197,046,469

(A) Name and Title	(B) Average hours per week (describe hours for related organizations in Schedule O)				(D) Reportable compensation from the organization (W- 2/1099-MISC)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)	(F) Estimated amount of other compensation from the organization and related organizations
(A) Name and Title
(18) Richard Cerceo Vice President/COO	40.00	X			327,701	0	21,813
(19) Thomas J Garvey Vice President/CFO	40.00	X			308,892	0	24,485
(20) Barbara Townsend Vice President/Business Development	40.00		X		224,349	0	13,130
(21) Carla Campbell Vice President/CNO	40.00		X		157,726	0	23,126
(22) Paul Jones Physician	40.00			X	325,759	0	429
(23) Ann Garcelon Physician	40.00			X	235,006	0	12,723
(24) Charles Lawler Physician	40.00			X	220,276	0	17,643
(25) Phillip Ahn Physician	40.00			X	244,794	0	18,444
(26) Abdulhamid Kanji Physician	40.00			X	207,591	0	9,994

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)............	2,615,151	0	164,167

				(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		425,000
e	Government grants (contributions)1e		702,640

f	All other contributions, gifts, grants, and similar amounts not included above1f		230,088
g	Noncash contributions included in lines 1a-1f:$
h	Total. Add lines 1a-1f.......			1,357,728
			Business Code
2a	Medicare/Medicaid Pmts		900,099	163,563,337	163,563,337
b	Net Patient Serv. Rev.		900,099	88,433,361	88,433,361
c	Other Program Serv. Re		900,099	1,481,721	1,481,721
d	Reference Lab		621,500	347,998		347,998
e	Laboratory Services -		541,900	163,533	163,533
f	All other program service revenue .			110,121	110,121
g	Total. Add lines 2a–2f........			254,100,071
3	Investment income (including dividends, interest
	and other similar amounts).....			245,174			245,174
4	Income from investment of tax-exempt bond proceeds..
5	Royalties............
		(i) Real	(ii) Personal
6a	Gross Rents	47,917
b	Less: rental expenses
c	Rental income or (loss)	47,917
d	Net rental income or (loss).......			47,917			47,917
		(i) Securities	(ii) Other
7a	Gross amount from sales of assets other than inventory		24,616
b	Less: cost or other basis and sales expenses		19,141
c	Gain or (loss)		5,475
d	Net gain or (loss)..........			5,475			5,475
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	Jt.Venture Revenue		541,900	1,071,373	1,071,373
b	Medical Student Traini		611,710	20,000	20,000
c	Hospital Preparedness		541,900	15,000	15,000
d	All other revenue ....			186,824	165,566		21,258
e	Total. Add lines 11a–11d ......			1,293,197
12	Total revenue. See Instructions....			257,049,562	255,024,012	347,998	319,824


				(A) Beginning of year		(B) End of year
1	Cashnon-interest-bearing ..........			8,300	1	8,400
2	Savings and temporary cash investments .......			13,589,876	2	30,545,012
3	Pledges and grants receivable, net .........				3
4	Accounts receivable, net .........			30,656,926	4	37,594,923
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 .............			1,859,410	7	1,484,238
8	Inventories for sale or use ..............			2,592,179	8	2,556,177
9	Prepaid expenses and deferred charges ............			3,809,489	9	5,368,707
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	217,758,439
b	Less: accumulated depreciation. .....	10b	145,120,254	71,162,709	10c	72,638,185
11	Investments—publicly traded securities ..........			14,106,065	11	10,227,823
12	Investments—other securities. See Part IV, line 11 ......				12
13	Investments—program-related. See Part IV, line 11 ..			0	13
14	Intangible assets .........				14
15	Other assets. See Part IV, line 11 ...........			13,848,055	15	14,150,558
16	Total assets. Add lines 1 through 15 (must equal line 34)...			151,633,009	16	174,574,023
17	Accounts payable and accrued expenses .			28,866,277	17	32,598,885
18	Grants payable ..........				18
19	Deferred revenue ..........			1,501,473	19	1,376,469
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 ..			19,421,961	23	38,613,577
24	Unsecured notes and loans payable to unrelated third parties ....			6,000,000	24
25	Other liabilities. Complete Part X of Schedule D.....			41,593,121	25	33,894,552
26	Total liabilities. Add lines 17 through 25.....			97,382,832	26	106,483,483
	Organizations that follow SFAS 117, check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets .....			50,088,726	27	63,570,377
28	Temporarily restricted net assets .....			3,848,891	28	4,207,603
29	Permanently restricted net assets .....			312,560	29	312,560
	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 .....			54,250,177	33	68,090,540
34	Total liabilities and net assets/fund balances .....			151,633,009	34	174,574,023