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) PAT BOSCO TRUSTEE	1.0	X		0	0
(2) MIKE DANIELS VICE CHAIR	1.0	X	X	0	0
(3) TRACEY DEBRUYN CHAIRPERSON	1.0	X	X	0	0
(4) MARK GROS MD TRUSTEE	1.0	X		0	0
(5) DOUG HINKIN MD TRUSTEE	1.0	X		0	0
(6) TOM HOLCOMBE TREASURER	1.0	X	X	0	0
(7) MARK KNACKENDOFFEL TRUSTEE	1.0	X		0	0
(8) SISTER LOIS ANN O'MALLEY SECRETARY	1.0	X	X	0	0
(9) JERRY PETTLE DDS TRUSTEE	1.0	X		0	0
(10) LANCE WHITE TRUSTEE	1.0	X		0	0
(11) DAVID HADLEY TRUSTEE	1.0	X		552,725	98,018
(12) RANDALL PETERSON TRUSTEE	1.0	X		537,324	159,950
(13) JOHN BROBERG EX-OFFICIO(CEO)	49.0	X	X	310,763	47,614
(14) MICHAEL CATES TRUSTEE	1.0	X		0	0
(15) MATT FOSTER MD MEDICAL STAFF PRESIDENT ELECT	1.0	X		0	0
(16) APOSTOLOS EVANGELIDIS MD TRUSTEE	1.0	X		0	0
(17) NANCY O'CONNOR TRUSTEE	1.0	X		0	0

(A) Name and business address	(B) Description of services	(C) Compensation
EMERGENCY PHYSICIANS OF MANHATTAN 10975 BENSON DRIVE OVERLAND PARK,KS66210	PROFESSIONAL SERVICE	841,277
AUREUS RADIOLOGY LLC POBOX 3037 OMAHA,NE681030037	CONTRACT LABOR	422,572
TRIMEDX LLC POBOX 636129 CINCINNATI,OH45263	MANAGEMENT SERVICES	1,678,800
INSTITUTE OF EXTRACORPOREAL THERAPI 3521 GARY AVENUE MANHATTAN,KS66503	DIALYSIS PROCEDURES	243,281
KANSAS LITHOTRIPSY 9825 SPECTRUM DR BLDG 3 AUSTIN,TX78717	LITHOTRIPSY PROCEDUR	111,200
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 13

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	0
2	Grants and other assistance to individuals in the U.S. See Part IV, line 22	0
3	Grants and other assistance to governments, organizations, and individuals outside the U.S. See Part IV, lines 15 and 16	0
4	Benefits paid to or for members	0
5	Compensation of current officers, directors, trustees, and key employees ....	985,299	215,744	769,555
6	Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....	0
7	Other salaries and wages	32,401,315	28,648,678	3,752,637
8	Pension plan contributions (include section 401(k) and section 403(b) employer contributions) ....	1,928,485	149,968	1,778,517
9	Other employee benefits .......	3,316,335	2,597,975	718,360
10	Payroll taxes ...........	2,634,551	2,066,105	568,446
11	Fees for services (non-employees):
a	Management ......	0
b	Legal .........	46,176	7,075	39,101
c	Accounting ...........	29,330		29,330
d	Lobbying ...........	0
e	Professional fundraising. See Part IV, line 17..	0
f	Investment management fees ......	0
g	Other ..........	13,851,869	6,553,592	7,298,277
12	Advertising and promotion ....	235,721	4,033	231,688
13	Office expenses .......	16,943,986	16,416,645	527,341
14	Information technology ......	178,971	34,666	144,305
15	Royalties ..	0
16	Occupancy ...........	2,031,234	1,819,242	211,992
17	Travel ............	215,745	118,162	97,583
18	Payments of travel or entertainment expenses for any federal, state, or local public officials ......	0
19	Conferences, conventions, and meetings ....	22,720	414	22,306
20	Interest ...........	2,400,708	2,397,371	3,337
21	Payments to affiliates .......	0
22	Depreciation, depletion, and amortization .....	5,524,821	5,340,279	184,542
23	Insurance ..............	1,183,174	1,132,147	51,027
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	SALES & OTHER TAXES	41,922	37,861	4,061
b	BAD DEBTS	4,566,604	4,566,604
c	DUES	187,131	24,643	162,488
d	PERSONNEL RECRUITING	164,068	2,140	161,928
e	UNRELATED BUS. INCOME TAXES	34,920	34,920
f	All other expenses	233,793	17,377	216,416
25	Total functional expenses. Add lines 1 through 24f	89,158,878	72,185,641	16,973,237	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 ..........	0	1	7,342,087
2	Savings and temporary cash investments .......	18,493,957	2	7,723,776
3	Pledges and grants receivable, net .........		3
4	Accounts receivable, net .........	10,397,594	4	12,300,853
5	Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
	Schedule L ..........		5
6	Receivables from other disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B). Complete Part II of
	Schedule L ..........		6
7	Notes and loans receivable, net .............		7
8	Inventories for sale or use ..............	3,008,630	8	2,577,413
9	Prepaid expenses and deferred charges ............	347,021	9	28,042
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	113,017,148
b	Less: accumulated depreciation. .....	10b	52,519,765	62,369,472	10c	60,497,383
11	Investments—publicly traded securities ..........		11
12	Investments—other securities. See Part IV, line 11 ......	28,101,087	12	19,226,297
13	Investments—program-related. See Part IV, line 11 ..		13
14	Intangible assets .........		14
15	Other assets. See Part IV, line 11 ...........	1,327,352	15	12,971,242
16	Total assets. Add lines 1 through 15 (must equal line 34)...	124,045,113	16	122,667,093
	17	Accounts payable and accrued expenses .	9,672,819	17	7,027,590
18	Grants payable ..........		18
19	Deferred revenue ..........		19
20	Tax-exempt bond liabilities ..........	31,936,061	20	30,101,599
21	Escrow or custodial account liability. Complete Part IV of Schedule D..		21
22	Payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........		22
23	Secured mortgages and notes payable to unrelated third parties ..	1,827,943	23	795,393
24	Unsecured notes and loans payable to unrelated third parties ....		24
25	Other liabilities. Complete Part X of Schedule D.....	10,529,728	25	12,784,259
26	Total liabilities. Add lines 17 through 25.....	53,966,551	26	50,708,841
		Organizations that follow SFAS 117, check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets .....	69,918,050	27	71,958,252
28	Temporarily restricted net assets .....	160,512	28
29	Permanently restricted net assets .....		29
	Organizations that do not follow SFAS 117, check here and complete lines 30 through 34.
30	Capital stock or trust principal, or current funds .....		30
31	Paid-in or capital surplus, or land, building or equipment fund .....		31
32	Retained earnings, endowment, accumulated income, or other funds		32
33	Total net assets or fund balances .....	70,078,562	33	71,958,252
34	Total liabilities and net assets/fund balances .....	124,045,113	34	122,667,093

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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 REGIONAL HEALTH CENTER INC

Employer identification number

48-1186704

Part I

Reason for Public Charity Status (All organizations must complete this part.) See instructions

The organization is not a private foundation because it is: (For lines 1 through 11, check only one box.)

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

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

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

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

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

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

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

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

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

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

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

receipts from activities related to its exempt functions—subject to certain exceptions, and (2) no more than 331/3% of

its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses

acquired by the organization after June 30, 1975. See section 509(a)(2). (Complete Part III.)

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

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

Type I

Type II

Type III - Functionally integrated

Type III - Other

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

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

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

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

Yes

and (iii) below, the governing body of the the supported organization? ................

11g(i)

(ii) a family member of a person described in (i) above? ......................

11g(ii)

(iii) a 35% controlled entity of a person described in (i) or (ii) above? ................

11g(iii)

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

(i) Name of supported organization	(ii) EIN	(iv) Is the organization in col. (i) listed in your governing document?		(v) Did you notify the organization in col. (i) of your support?		(vi) Is the organization in col. (i) organized in the U.S.?		(vii) Amount of support?
(i) Name of supported organization	(ii) EIN	Yes	No	Yes	No	Yes	No	(vii) Amount of support?


Total

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

Cat. No. 11285F

Schedule A (Form 990 or 990-EZ) 2010

Page 2

Part II

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

Section A. Public Support

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

Section B. Total Support

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

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

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

Section C. Computation of Public Support Percentage

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

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

16a

33 1/3% support test—2010. If the organization did not check the box on line 13, and line 14 is 33 1/3% or more, check this box
and stop here. The organization qualifies as a publicly supported organization ...................... right arrow

33 1/3% support test—2009. If the organization did not check the box on line 13 or 16a, and line 15 is 33 1/3% or more, check this
box and stop here. The organization qualifies as a publicly supported organization ..................... right arrow

17a

10%-facts-and-circumstances test—2010. If the organization did not check a box on line 13, 16a, or 16b and line 14
is 10% or more, and if the organization meets the "facts and circumstances" test, check this box and stop here. Explain
in Part IV how the organization meets the "facts and circumstances" test. The organization qualifies as a publicly supported
organization .................................................. right arrow

10%-facts-and-circumstances test—2009. If the organization did not check a box on line 13, 16a, 16b, or 17a and line
15 is 10% or more, and if the organization meets the "facts and circumstances" test, check this box and stop here.
Explain in Part IV how the organization meets the "facts and circumstances" test. The organization qualifies as a publicly
supported organization .............................................. right arrow

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

Schedule A (Form 990 or 990-EZ) 2010

Page 3

Part III

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

Section A. Public Support

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

Section B. Total Support

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

Section C. Computation of Public Support Percentage

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

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

Section D. Computation of Investment Income Percentage

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

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

19a

33 1/3% support tests—2010. If the organization did not check the box on line 14, and line 15 is more than 33 1/3% and line 17 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization .......... right arrow

33 1/3% support tests—2009. If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33 1/3% and line 18 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization .... right arrow

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

Schedule A (Form 990 or 990-EZ) 2010

Page 4

Part IV

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

Facts And Circumstances Test

Explanation

Schedule A (Form 990 or 990-EZ) 2010

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE C
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Political Campaign and Lobbying Activities

For Organizations Exempt From Income Tax Under section 501(c) and section 527
SchCMd Bullet

Complete if the organization is described below.
SchCMd Bullet

Attach to Form 990 or Form 990-EZ. SchCMd Bullet

See separate instructions.

OMB No. 1545-0047

2010

Open to Public
Inspection

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

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

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

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

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

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

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

Name of the organization

MERCY REGIONAL HEALTH CENTER INC

Employer identification number

48-1186704

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? ........

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

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

Yes

11,462

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

11,462

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
LOBBYING ACTIVITIES	SCHEDULE C, PART II-B, LINE I	A Portion of dues paid to the various organizations listed below is used for lobbying. Dues % Lobbying Total AHA 16,444 24.60% 4,045 KHA 48,413 15.00% 7,262 Chamber of Commerce 3,097 5.00% 155 ------ ----- 67,954 11,462

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 REGIONAL HEALTH CENTER INC

Employer identification number

48-1186704

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 .................	733,250		733,250
b	Buildings ................	70,692,003	22,933,430	47,758,573
c	Leasehold improvements ............	1,764,210	1,547,716	216,494
d	Equipment ................	35,123,253	25,770,539	9,352,714
e	Other .................	4,704,432	2,268,080	2,436,352
Total. Add lines 1a-1e. (Column (d) should equal Form 990, Part X, column (B), line 10(c).)........				60,497,383

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
(3)Other (A) UNAMORT LOAN COSTS-BOND	1,017,457	F
(B) NOTES REC-LT-PHYSICIAN	0	F
(C) PENSION CONTROL NET OF ADJ	0	F
(D) INVESTMENT IN AFFILIATES	2,329,826	F
(E) FUNDED DEPR-SWEEP ACCT	0	F
(F) FUNDED DEPR-UMB	0	F
(G) UMB-2001-DEBT SERVICE RESERVE	0	F
(H) UMB-2001-INTEREST ACCOUNT	0	F
(I) UMB-2001-PRINCIPAL ACCOUNT	0	F
(J) OPERATING-INVESTMENT-UMB BANK	0	F
(K) AMBULANCE RESERVE FUND	0	F
(L) FUNDED DEPR-UMB	0	F
(M) LONG TERM INVESTMENTS	15,879,014	F
Total. (Column (b) should equal Form 990, Part X, col.(B) line 12.)	19,226,297

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) DEPOSITS				0
(2) OTHER RECEIVABLES				0
(3) CHAMPUS/TRICARE SETTLEMENT				550,500
(4) SETTLEMENT RECEIVABLE				8,502
(5) DUE TO/FROM RELATED PARTIES				-201,263
(6) OTHER ASSETS-UNRELATED PART				888,953
(7) BOARD DESIG FUNDS-CAP IMPROVEM				8,155,066
(8) SELF INSURANCE ARRANGEMENTS				2,565,493
(9) EDUCATION LOAN RECEIVABLE				16,511
(10) PREPAID PENSION				987,480
Total. (Column (b) should equal Form 990, Part X, col.(B) line 15.)...........				12,971,242

Part X

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

1.(a) Description of Liability		(b) Amount
Federal Income Taxes		0
ASSET RETIREMENT OBLIGATION		4,697,240
ESTIMATED AMOUNTS DUE TO THIRD PARTY PAYORS		888,785
LONG TERM DEBT LESS CURRENT MATURITIES RELATED PARTY		5,715,158
CURRENT MATURITIES OF LONG TERM DEBT UNRELATED PARTY		1,283,177
CURRENT MATURITIES OF LONG TERM DEBT RELATED PARTY		199,899




Total. (Column (b) should equal Form 990, Part X, col.(B) line 25.)		12,784,259
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
FIN 48	SCHEDULE D, PART X	THE ORGANIZATION FOLLOWS THE FIN 48 POLICY OF VIA CHRISTI HEALTH, INC. (VCH) AND THE POLICY IS PROVIDED IN THE VCH CONSOLIDATED AUDITED FINANCIAL STATEMENTS. WITH THE EXCEPTION OF CERTAIN ENTITIES, ALL OF THE ENTITIES IN THE HEALTH SYSTEM ARE ORGANIZATIONS DESCRIBED IN SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND ARE GENERALLY EXEMPT FROM PAYMENT OF INCOME TAXES ON RELATED INCOME PURSUANT TO SECTION 501(A) OF THE INTERNAL REVENUE CODE. SUBSIDIARIES, WHICH ARE FOR-PROFIT ORGANIZATIONS, ARE SUBJECT TO FEDERAL AND STATE INCOME TAXES. TAX ASSETS AND LIABILITIES ARE RECOGNIZED FOR THE FUTURE TAX CONSEQUENCES ATTRIBUTABLE TO DIFFERENCES BETWEEN THE FINANCIAL STATEMENT CARRYING AMOUNTS OF EXISTING ASSETS AND LIABILITIES AND THEIR RESPECTIVE TAX BASES AND OPERATING LOSS AND TAX CREDIT CARRYFORWARD. INCOME TAX EXPENSE OR BENEFIT IS INCLUDED IN OTHER NON-OPERATING GAINS AND LOSSES IN THE CONSOLIDATED STATEMENTS OF OPERATION AND CHANGES IN NET ASSETS. DEFERRED TAX ASSETS AND LIABILITIES ARE MEASURED USING ENACTED TAX RATES EXPECTED TO BE RECOVERED OR SETTLED. THE EFFECT ON DEFERRED TAX ASSETS AND LIABILITIES OF A CHANGE IN TAX RATES IS RECOGNIZED IN INCOME IN THE PERIOD THAT INCLUDES THE ENACTMENT DATE.

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 REGIONAL HEALTH CENTER INC

Employer identification number

48-1186704

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

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) ..	3,127,398	0	3,127,398	3.510 %
b Unreimbursed Medicaid (from Worksheet 3, column a) .	6,698,385	4,669,020	2,029,365	2.280 %
c Unreimbursed costs—other means-tested government programs (from Worksheet 3, column b) ....	0	0	0	0 %
dTotal Charity Care and Means-Tested Government Programs .....	9,825,783	4,669,020	5,156,763	5.790 %
Other Benefits e Community health improvement services and community benefit operations (from (Worksheet 4) ....	396,916	23,618	373,298	0.420 %
f Health professions education (from Worksheet 5) ..	255,323	0	255,323	0.290 %
g Subsidized health services (from Worksheet 6) ..
h Research (from Worksheet 7)
i Cash and in-kind contributions to community groups (from Worksheet 8) ..	128,985	0	128,985	0.140 %
jTotal Other Benefits ...	781,224	23,618	757,606	0.850 %
kTotal. Add lines 7d and 7j. ..	10,607,007	4,692,638	5,914,369	6.640 %

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.

		(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	892	0	892	0 %
3	Community support	1,136	0	1,136	0 %
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	2,028	0	2,028	0 %

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).....

1,580,045

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).....

25,617,959

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

27,922,128

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

-2,304,169

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 %
1
2
3
4
5
6
7
8
9
10
11
12
13

Schedule H (Form 990) 2010

Page 3

Part VFacility Information

Section A. Hospital Facilities (list in order of size, measured by total revenue per facility, from largest to smallest) How many hospital facilities did the organization operate during the tax year?1 Name and address		Other (Describe)
1	MERCY REGIONAL HEALTH CENTER INC 1823 COLLEGE AVE MANHATTAN,KS66502	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:MERCY REGIONAL HEALTH CENTER INC

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?12
Name and address		Type of Facility (Describe)
1	WOMEN'S IMAGING 1133 COLLEGE AVE BLDG G SUITE 130 MANHATTAN,KS66502	OUTPATIENT DIAGNOSTIC SERVICES
2	WOMEN'S IMAGING 1133 COLLEGE AVE BLDG G SUITE 130 MANHATTAN,KS66502	OUTPATIENT DIAGNOSTIC SERVICES
3	WOMEN'S IMAGING 1133 COLLEGE AVE BLDG G SUITE 130 MANHATTAN,KS66502	OUTPATIENT DIAGNOSTIC SERVICES
4	WOMEN'S IMAGING 1133 COLLEGE AVE BLDG G SUITE 130 MANHATTAN,KS66502	OUTPATIENT DIAGNOSTIC SERVICES
5	WOMEN'S IMAGING 1133 COLLEGE AVE BLDG G SUITE 130 MANHATTAN,KS66502	OUTPATIENT DIAGNOSTIC SERVICES
6	WOMEN'S IMAGING 1133 COLLEGE AVE BLDG G SUITE 130 MANHATTAN,KS66502	OUTPATIENT DIAGNOSTIC SERVICES
7	WOMEN'S IMAGING 1133 COLLEGE AVE BLDG G SUITE 130 MANHATTAN,KS66502	OUTPATIENT DIAGNOSTIC SERVICES
8	WOMEN'S IMAGING 1133 COLLEGE AVE BLDG G SUITE 130 MANHATTAN,KS66502	OUTPATIENT DIAGNOSTIC SERVICES
9	WOMEN'S IMAGING 1133 COLLEGE AVE BLDG G SUITE 130 MANHATTAN,KS66502	OUTPATIENT DIAGNOSTIC SERVICES
10	WOMEN'S IMAGING 1133 COLLEGE AVE BLDG G SUITE 130 MANHATTAN,KS66502	OUTPATIENT DIAGNOSTIC SERVICES
11	WOMEN'S IMAGING 1133 COLLEGE AVE BLDG G SUITE 130 MANHATTAN,KS66502	OUTPATIENT DIAGNOSTIC SERVICES
12	WOMEN'S IMAGING 1133 COLLEGE AVE BLDG G SUITE 130 MANHATTAN,KS66502	OUTPATIENT DIAGNOSTIC SERVICES

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
ANNUAL COMMUNITY BENEFIT REPORT	PART I, LINE 6a	MRHC and WCH's annual report is prepared and printed in "Up Close", a magazine printed with 2,400 copies distributed to surrounding communities of Clay Center, Manhattan and Wamego. "Up Close" is also available on MRHC's website at www.mercyregional.org.
COMMUNITY BENEFIT PROGRAMS	PART I, LINE 7	For examples of some of the community benefit programs provided by Mercy Regional Health Center and Wamego Hospital Association (a combined report) see the Schedule O footnote for Part III, Statement of Program Services.
COMMUNITY BUILDING ACTIVITIES	PART II	Community building activities are essential roles for health-care organizations in that they address many of the underlying determinants of health. Research has consistently shown that when the socioeconomic factors influencing health are explored, health care actually plays the smaller role proportionately. A report in the Journal of American Medical Association and the Center for Disease Control suggests that the factors impacting health are as follows: lifestyle and behaviors, 50 percent; environment, 20 percent; genetics and human biology, 20 percent and health care, 10 percent. Community building activities help to address the other indicators outside of the role traditionally played by health care organizations. These activities are almost exclusively done in some form of partnership in which the community or other organizations are better suited to address identified community needs. VCH provides timely and specific resources to help community organizations through donations to fulfill their missions of improving the well-being of the community and contributing to its overall health status in ways that may differ from direct clinical services provided by the hospital. Donations such as staff time and expertise for trainings or presentations to Chamber, Rotary or other service groups, special population outreach efforts for at-risk children in need of mentoring, assistance in building homes for the homeless or domestic violence victims, donating outdated equipment to free clinics, or other durable goods provided to area shelters and other organizations are all ways to maximize those agencies' resources so they can provide more program services. Manhattan - Wamego, KS Presentations made to the Chamber of Commerce meetings in Manhattan, Wamego and other surrounding communities to update them on the results of the community health needs assessments, strategic plans of the hospital and participation in discussions regarding economic development and workforce development all benefit the communities. By actively sharing the findings of the community health needs assessments, it allows other Chamber members to be aware of the most up-to-date information and gives them an opportunity to partner with the hospital and other area businesses in finding solutions.
BAD DEBT EXPENSE	PART III, LINE 3	The organization has no suitable basis for estimating bad debt expense that would be attributable to patients eligible under the organization's charity care policy.
AUDIT FOOTNOTE - BAD DEBT EXPENSE	PART III, LINE 4	The provision for bad debt expense is based upon management's assessment of expected net collections considering economic conditions, historical experience, trends in health care coverage, and other collection indicators. Periodically throughout the year, management assesses the adequacy of the allowance for uncollectible accounts based upon historical write-off experience by payer category, including those amounts not covered by insurance. The results of this review are then used to make any modifications to the provision for bad debt expense to establish an appropriate allowance for uncollectible accounts. After satisfaction of amounts due from insurance and reasonable efforts to collect from the patient have been exhausted, The Health System follows established guidelines for placing certain past-due patient balances with collection agencies, subject to terms of certain restrictions on collection efforts as determined by the Health System. Accounts receivable are written off after collections efforts have been followed in accordance with the Health System's policies. MRHC reports bad debts in accordance with generally accepted accounting principles (GAAP). Healthcare Financial Management Statement 15 is followed to the extent that it aligns with the guidelines set forth by GAAP. Bad debt expense at cost is determined using the same cost-to-charge ratio that is used for charity care and Medicaid shortfall. VCH follows the guidance from CHA and does not consider bad debt as a community benefit.
MEDICARE SHORTFALL	PART III, LINE 8	MRHC follows the CHA guidelines regarding Medicare and does not include it as community benefit. The methodology described in the instructions to Schedule H, Part III, Section B, Line 7 for reporting Medicare shortfall does not take into account all costs incurred by the Hospital and does not represent the total Medicare shortfall. The Medicare shortfall reported on Schedule H, Part III, Section B, Line 7 was determined using information from the organization's Medicare cost report (using the Medicare Cost report step-down methodology of allocating costs). However, utilizing an internal cost accounting system actually results in a Medicare shortfall of $3,207,050. The most common reason for a difference between the Medicare shortfall reported on Schedule H and the actual shortfall reported above include inclusion of Medicare Advantage revenue and expenses; inclusion of Medicare Part B Revenue and Expenses; inclusion of other fee schedule revenue, other timing issues, and costs that are considered unallowable on the Medicare cost report that are, in fact, related to Medicare patient care.
DEBT COLLECTION POLICY	PART III, LINE 9B	It is the policy of MRHC to promote socially just practices for billing and collections for all patients receiving care. The policy is intended to further the MRHC mission by requiring ethical conduct in billing and collecting self-pay balances from patient/guarantor's regardless of ability to pay. The policy ensures that prior to turning an account over to a Third Party Collection Agent (Agent) for collection activity, MRHC will perform a reasonable review of each account to verify that the patient/guarantor is not potentially eligible for any government assistance program (e.g., Medicaid, Medicare, etc.) and would likely not qualify for charity care. MRHC will direct its staff and Agents to periodically assess each patient/guarantor's ability to pay or to determine eligibility for charity care. The review and assessment should include but may not be limited to the following: a. Ensure the patient/guarantor has been notified of VCH's financial assistance policy; b. Ensure the patient/guarantor was offered a financial assistance application; c. Ensure documentation of any known extraordinary financial circumstances of the patient/guarantor or if they are medically indigent
NEEDS ASSESSMENT	PART VI, LINE 2	Ministry representatives are involved with numerous coalitions that periodically assess community needs (e.g. Flint Hills Community Clinic, Kansas Health Care Collaborative, United Way of Riley County, Shepherds' Crossing and others) and in 2010 conducted their own health assessment. Secondary data, other community assessments and one-on-one interviews with community leaders, social service providers, health care providers and government representatives were used to conduct the MRHC and WCH assessments.
PATIENT ELIGIBILITY FOR ASSISTANCE	PART VI, LINE 3	VCH financial assistance staff is trained on how to qualify patients for Medicaid, SCHIP and other income-based programs. During the patient's registration, admissions and discharge processes, VCH attempts to identify patients who may be eligible for charity or discounted care through the charity care policy. In addition, VCH uses a percentage of the Federal Poverty Guidelines (FPG) to determine free and discounted care.
COMMUNITY INFORMATION	PART VI, LINE 4	For Manhattan based ministries - The primary counties for Manhattan ministries includes Riley, Geary and Pottawatomie. Riley County has a land area of 609 square miles with a 2010 population of 71,115. Pottawatomie County has a land area of 844 square miles with a 2010 population of 21,604. Geary County has a land area of 385 square miles with a 2010 population of 34,362. Riley County's population demographics includes: 83.2% white, 6.4% Black, 0.6% American Indian; 4.25% Asian and 6.5% persons of Hispanic or Latino origin. The diversity of the population in Riley County is greater than for Pottawatomie County. Racial breakout for Pottawatomie County includes: 93.6% white; 1.1% Black; 0.8% American Indian; 0.7% Asian persons; and 4.4% persons of Hispanic or Latino origin. The demographic distribution for Geary County includes: 66.2% white; 18.4% Black; 1.0% American Indian; 3.2% Asian; and 12.4% Hispanic or Latino origin. Geary County has the highest diversity rates primarily due to Fort Riley, an Army base and Home of the 1st Infantry Division. Almost 8.0% of the Riley County residents, 4.1% of the Pottawatomie County residents and 10.1% of the Geary County residents report that a language other than English is spoken at home. When it comes to education, 94.2% of Riley County residents completed high school and 41.2% had a bachelor's degree or higher. This compares to 92.8% and 27.1% for Pottawatomie County and 90.5% and 19.6% for Geary County. Median household income for Riley County residents in 2010 was $40,612 compared to $54,949 for Pottawatomie County and $44,033 for Geary County. The median value of owner-occupied housing units in Riley County was $148,600 in 2010 compared to $124,600 in Pottawatomie and $110,700 for Geary County residents. Riley County reports 26.3% of its residents are below poverty level compared to 9.1% for Pottawatomie and 11.4% for Geary County. The Statewide poverty level is around 13.2%. MRHC is the only hospital in the City of Manhattan and is the largest full-service medical center in the area that is available to all persons regardless of their ability to pay.
PROMOTION OF COMMUNITY HEALTH	PART VI, LINE 5	MRHC and its affiliates enrich the communities in which they operate as well as the broader community, improving medicine through research, educating physicians and other healthcare providers, and providing care and support to people in need. MRCH further supports this mission with a community board, open medical staff and an emergency room available to patients regardless of ability to pay. Community representation on the Governing Body - The Board of Trustees is the governing body of MRCH. The majority of its members are external members comprised of persons who reside in or around Sedgwick County and has overall responsibility for the charitable mission of the organization as set forth in its Articles of Incorporation and By Laws. These trustees are selected based on their expertise, experience and other criteria established by the nominating committee of the Board of Trustees. Areas of expertise and experience include such areas as healthcare, finance, education, and local government. The Board actively debates and sets policy and strategic direction for the ministry but does not get involved in issues related to daily operations. The Board takes a balanced approach when addressing community and business/financial concerns. The Board is also the primary group for determining the use of surplus funds generated by the organization which are reinvested in the ministry in order to allow the ministry to sustain its mission and prepare for the future. Open Medical Staff - The medical staff of MRCH is an open medical staff and is composed of physicians, dentists and podiatrists licensed to practice medicine in the State of Kansas. MRHC staff also participates in the community on boards of other not-for-profit organizations, government entities, foundations, area colleges and university committees, state-wide coalitions, etc.
AFFILIATED HEALTH CARE SYSTEM	PART VI, LINE 6	MRHC is an affiliate of Via Christi Health, Inc (VCH). VCH's affiliates are large multi-faceted, integrated, not-for-profit ministries including Hospital and Non-Hospital ministries (Physician Group Practices, Hospital organizations, Research, Home Health, Durable Medical Equipment and Senior Facilities). These ministries work together to care for patients, joined by common systems and a philosophy of serving as a healing presence with special concern for our neighbors, especially those who are vulnerable. This community benefit happens through its focus on patient care, education and research. The organizations work together to serve their communities at the local, regional and state level.
STATE FILING OF COMMUNITY BENEFIT REPORT	PART VI, LINE 7	Kansas does not require hospitals to file community benefit reports but Via Christi Health distributes our community benefit totals and activities annually in press releases as well as in our annual report.

Schedule H (Form 990) 2010

Additional Data

Software ID:
Software Version:

- TIN:

Schedule J
(Form 990)

Department of the Treasury
Internal Revenue Service

Compensation Information

For certain Officers, Directors, Trustees, Key Employees, and Highest
Compensated Employees
SchJMediumBullet

Complete if the organization answered "Yes" to Form 990,
Part IV, question 23.
SchJMediumBullet

Attach to Form 990. SchJMediumBullet

See separate instructions.

OMB No. 1545-0047

2010

Open to Public Inspection

Name of the organization

MERCY REGIONAL HEALTH CENTER INC

Employer identification number

48-1186704

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

Yes

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

Yes

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

If "Yes" to any of lines 4a-c, list the persons and provide the applicable amounts for each item in Part III.

Only 501(c)(3) and 501(c)(4) organizations only must complete lines 5-9.

For persons listed in form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the revenues of:

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

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

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

For persons listed in form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the net earnings of:

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

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

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

For persons listed in Form 990, Part VII, Section A, line 1a, did the organization provide any non-fixed
payments not described in lines 5 and 6? If "Yes," describe in Part III ............

Were any amounts reported in Form 990, Part VII, paid or accured pursuant to a contract that was
subject to the initial contract exception described in Regs. section 53.4958-4(a)(3)? If "Yes," describe
in Part III .............................

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

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

Cat. No. 50053T

Schedule J (Form 990) 2010

Page 2

Part II

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

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

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

(A) Name		(B) Breakdown of W-2 and/or 1099-MISC compensation			(C) Retirement and other deferred compensation	(D) Nontaxable benefits	(E) Total of columns (B)(i)-(D)	(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) DAVID HADLEY	(i) (ii)	0 419,685	0 123,438	0 9,602	0 87,169	0 10,849	0 650,743	0 0
(2) RANDALL PETERSON	(i) (ii)	0 443,357	0 81,238	0 12,729	0 151,362	0 8,588	0 697,274	0 0
(3) JOHN BROBERG	(i) (ii)	0 260,198	0 43,850	0 6,715	0 37,141	0 10,473	0 358,377	0 0
(4) JANET CRIQUI	(i) (ii)	136,653 0	40 0	5,517 0	9,882 0	7,889 0	159,981 0	0 0
(5) WILLIAM FREUND MD	(i) (ii)	369,627 0	0 0	4,040 0	0 0	6,107 0	379,774 0	0 0
(6) PRIYANTHA S RANAWEERA MD	(i) (ii)	564,690 0	40 0	2,812 0	2,450 0	10,113 0	580,105 0	0 0
(7) CASEY M POELL MD	(i) (ii)	249,060 0	18,040 0	1,169 0	0 0	5,839 0	274,108 0	0 0
(8) RICHARD ALLEN	(i) (ii)	0 0	0 0	0 175,331	0 0	0 0	0 175,331	0 0
(9) MARCIA BUBAK	(i) (ii)	144,487 0	40 0	4,566 0	9,636 0	10,098 0	168,827 0	0 0
(10) DAVID M WICHMAN MD	(i) (ii)	223,953 0	40 0	1,155 0	2,314 0	10,560 0	238,022 0	0 0
(11) FADI V BEDROS MD	(i) (ii)	381,240 0	40 0	2,068 0	2,450 0	12,215 0	398,013 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
SEVERANCE PAYMENTS FROM A RELATED ORGANIZATION	PART I, QUESTION 4A	Richard Allen 168,807.74
SUPPLEMENTAL NON-QUALIFED RETIREMENT PLAN PAID BY A RELATED ORGANIZATION	PART I, QUESTION 4B	Randall Peterson $132,987.12 David Hadley $71,243.56 John Broberg $21,216.00 Janet Criqui $ 8,474.66

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 REGIONAL HEALTH CENTER INC

Employer identification number

48-1186704

Identifier	Return Reference	Explanation
FORM 990 REVIEW	PART VI, SECTION A, QUESTION 11A	THE AUDIT COMMITTEE REVIEWS AND APPROVES THE FORM 990 PRIOR TO THE DATE OF FILING. THE AUDIT COMMITTEE REPORTS ON THE REVIEW TO THE BOARD OF TRUSTEES AND ASSURES THAT THE BOARD HAS THE OPPORTUNITY TO REVIEW THE FINAL FORM 990 AS FILED. A COPY OF FORM 990 IS PROVIDED TO THE BOARD OF TRUSTEES VIA A SECURE EMAIL PRIOR TO FILING WITH THE IRS.
CONFLICT OF INTEREST POLICY	PART VI, SECTION B, QUESTION 12C	MERCY REGIONAL HEALTH CENTER, INC. FOLLOWS VIA CHRISTI HEALTH, INC.'S CONFLICT OF INTEREST POLICY. IT IS MONITORED AND ENFORCED AS PART OF THE SYSTEM-WIDE PROCEDURES AND IS NOT HANDLED AT THE ORGANIZATION LEVEL. THE SYSTEM MONITORS AND ENFORCES THE CONFLICT OF INTEREST POLICY AS FOLLOWS: 1) AT TIME OF APPOINTMENT AND ANNUALLY THEREAFTER, ALL INTERESTED PERSONS, INCLUDING BOARD AND COMMITTEE MEMBERS COMPLETE A DISCLOSURE STATEMENT WHICH ADDRESSES ACTUAL OR POTENTIAL CONFLICTS OF INTEREST. 2) THE DISCLOSURE STATEMENT IS DONE ELECTRONICALLY AND THE RETURN OF THE COMPLETED STATEMENT IS A CONDITION OF CONTINUED APPOINTMENT, EMPLOYMENT OR PARTICIPATION WITH THE ORGANIZATION. 3) ALL ACTUAL OR POTENTIAL CONFLICTS ARE REVIEWED, INVESTIGATED AND RESOLVED BY THE CHIEF GOVERNANCE OFFICER AND THE CORPORATE RESPONSIBILITY OFFICER, WITH THE RESULTS SHARED WITH THE CHIEF EXECUTIVE OF THE ORGANIZATION. 4) PERIODIC REVIEWS ARE CONDUCTED BY GOVERNANCE, COMPLIANCE AND INTERNAL AUDIT TO ENSURE THE ORGANZIATION IS OPERATING CONSISTENT WITH THE POLICY AND ENFORCING THE POLICY'S TERMS.
COMPENSATION REVIEW	PART VI, SECTION B, QUESTION 15	Mercy Regional Health Center, Inc. uses the policies established by Via Christi Health, Inc. (VCH). VCH has established a common philosophy, strategy, and processes for executive compensation to be used throughout the Via Christi Health System. VCH's philosophy, strategy and process for executive compensation are described next. Through the oversight of the VCH Executive Compensation Committee, executive compensation is competitively positioned at its stated market position when compared to the compensation paid by relevant organizations (comparably-sized health systems, hospitals, and long-term care providers). VCH recognizes its responsibility to ensure that its executive compensation program is appropriate in view of its mission and tax-exempt status and that its compensation levels and expenditures are reasonable and not excessive. To ensure these ends, the VCH Executive Compensation Committee has established and approved the executive compensation philosophy for VCH and all related entities. It will also approve all changes in the compensation package for VCH executives in advance. On an annual basis, the Committee conducts a comprehensive review of total compensation for all executives. It also reviews and approves "off-cycle" compensation transactions as needed. In their review, the Committee considers the following factors: * Market data from independent compensation surveys and sources that reflect comparable positions in organizations of similar size and scope * Difficulties in recruiting and retaining executives * Skills, experience and performance history of individual executives * Critical business or strategic issues that the organization may face * Market position for total compensation The adequacy, competitiveness, and cost of the VCH total executive compensation program are reviewed on an ongoing basis and changes are made as the Committee determines appropriate. The executive compensation program will be maintained such that it will fall within the safe harbor guidelines established by the Intermediate Sanctions regulations. The Committee also employs the services of an independent compensation consultant to prepare market analysis to aid and support the Committee's actions, provide documentation of market trends for budget setting purposes, review annual compensation changes to ensure "reasonableness" and provide attestation, and provide consultation on all executive compensation issues. The Committee also relies on third-party validation of performance measures used in the determination of compensation.
GOVERNING DOCUMENTS	PART VI, SECTION C, QUESTION 19	MERCY REGIONAL HEALTH CENTER, INC.'S GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE AVAILABLE TO THE PUBLIC UPON REQUEST.
RELATED TAX-EXEMPT ORGANIZATIONS	SCHEDULE R, PART II	MERCY REGIONAL HEALTH CENTER, INC. IS CONTROLLED BY VIA CHRISTI HEALTH, INC. VIA CHRISTI HEALTH, INC. IS JOINTLY SPONSORED AND CONTROLLED BY ASCENSION HEALTH AND MARIAN HEALTH SYSTEM, WHICH IN TURN ARE SPONSORED BY THE SISTERS OF THE SORROWFUL MOTHER, FOUR PROVINCES OF THE DAUGHTERS OF CHARITY, THE CONGREGATION OF ST. JOSEPH, AND THE SISTERS OF ST. JOSEPH OF CARONDELET. DUE TO SUCH SPONSORSHIP AND CONTROL, AND IN THE INTEREST OF INCREASED CLARITY AND TRANSPARENCY, BOTH ASCENSION HEALTH AND MARIAN HEALTH SYSTEM ARE BEING LISTED AS RELATED ORGANIZATIONS ON SCHEDULE R.
MEMBERS	PART VI, SECTION A, Q6, 7A, AND 7B	VIA CHRISTI HEALTH, INC. AND MEMORIAL HOSPITAL ASSOCIATION, INC. ARE THE MEMBERS. THE MEMBERS MAY APPROVE AND REMOVE INDIVIDUALS ON THE BOARD OF TRUSTEES. ARTICLE 2 OF THE BYLAWS PROVIDE THE MEMBERS WITH THE FOLLOWING POWERS: Approve, before they may become effective, all mission, philosophy, and value statements of the corporation and all amendments thereto. Monitor compliance with the mission and philosophy of the corporation through receipt of annual reports, financial statements and other pertinent information. Approve Articles of Incorporation and Bylaws of the corporation or amendments thereto. Approve appointment and removal of all Directors of the corporation. Approve, before it may become effective, any merger or consolidation involving the corporation. Approve any partial or total dissolution of the corporation. Approve the issuance of any debt by the corporation in excess of $1 million or the amount specified in writing from time to time by the Corporate Members. Approve all transfers, leases, encumbrances or other conveyances of the property of all assets of the corporation in excess of $1 million or the amount specified in writing from time to time by the Corporate Members. Approve, before it may become effective, the creation of any subsidiary organization to the corporation. Receive reports on all operating and capital budgets of the corporation. Receive reports on all unbudgeted expenses in excess of $50,000 or the amount specified in writing from time to time by the Members. Receive information and reports on all long-range strategic and financial plans of the corporation. *Receive reports on all alliances and affiliations entered into by the corporation.
OTHER CHANGES IN NET ASSETS	PART XI LINE 5	UNREALIZED LOSS (2,386,191) NET PENSION ADJUSTMENT (115,715) RELEASED FROM RESTRICTION (50,000) K-1 ADJUSTMENTS: PFI LLC (1,711) MERCY IMAGING LLC 783,288 781,577 ----------- PART XI LINE 5 (1,770,329)
COMMUNITY BENEFIT REPORT	PART III	Part I - Summary As a part of Via Christi Health, we share this Mission: Inspired by the Gospel and our Catholic tradition, we serve as a healing presence with special concern for our neighbors who are vulnerable. Part III - Statement of Program Service Accomplishments Mercy Regional Health Center (MRHC) is a member of Via Christi Health, Inc. (VCH). As a Catholic health system, VCH has its origins in faith-based responses to health needs of our communities, with a particular concern for those living in poverty and who are vulnerable. In addition to typical inpatient and outpatient services, VCH operates primary care clinics, a low income neighborhood outreach clinic, specialty hospitals and centers, home medical services, therapy centers and long-term care villages. The obligation to reach out to those in need and to improve community health flows directly from VCH's identity as a faith-based healing ministry. VCH continues its tradition in providing community benefit because we are committed to: - Promoting and defending human dignity - Caring for persons living in poverty and other vulnerable populations - Promoting the common good - Stewarding resources responsibly According to the VCH mission statement, "As a part of Via Christi Health, we share this Mission: Inspired by the Gospel and our Catholic tradition, we serve as a healing presence with special concern for our neighbors who are vulnerable." The financial information in this report was prepared in accordance with the Catholic Health Association's (CHA) A Guide for Planning and Reporting Community Benefit Guidelines. Per these Guidelines, we report the net expense for community benefit services (i.e., the total community benefit expense minus any associated revenue from patients, residents, payers, and other external sources). The CHA Guidelines reflect a conservative approach to reporting quantifiable community benefit. The goal of the Guidelines is to produce community benefit financial reports that reflect true costs and that describe community benefit activities that increase access to health care and improve community health for all. The following are MRHC's definitions for quantifiable community benefits. Charity Care - Free or discounted health services provided to persons who cannot afford to pay and who meet VCH's criteria for financial assistance. Charity care is reported in terms of costs, not charges. Charity care does not include bad debt. Government Sponsored Means-Tested Health Care - Includes unpaid costs of public programs for low-income persons - the shortfall created when VCH receives payments that are less than the cost of caring for public program beneficiaries. This payment shortfall is not the same as a contractual allowance, which is the full difference between charges and government payments. Health Professions Education - Helping to prepare future health care professionals is a distinguishing characteristic of not-for-profit health care and constitutes a significant community benefit. This category includes programs and financial assistance for physicians and medical students, nurses and nursing students, interns and other health professionals. For fiscal year ended September 30, 2011 Community Benefit (MRHC, Inc and Subsidiaries): 1. Charity care - at cost $3.1 million 2. Government sponsored health care - net expense $2.0 million Unpaid cost of public indigent care programs (includes Medicaid, SCHIP, other safety net programs; does not include Medicare shortfall) 3. Community Benefit Programs - net expense $0.8 million 4. Total Quantifiable Community Benefit $5.9 million Listed below are just a few of the community benefit programs offered by Mercy Regional Health Center (MRHC) and Wamego City Hospital (WCH) during FY2011. This is not a complete listing but a sampling of how the hospital gives back to the community while meeting current needs.
COMMUNITY BENEFIT REPORT	PART III CONTINUED	Car Seat Clinics - MRHC conducts various car seat inspection clinics that the general public is invited to participate in to assess and educate parents on how to properly use the car seat and to ensure its base is securely installed in the parent's vehicle. Nearly 150 car seats were checked for a cost of $1,095 in community benefit. Heart Education Health News - Numerous newsletters were printed and distributed on cardiac related issues and shared with patients who have had a history of heart disease but who are now under physician care to improve their cardiac efficiency. Approximately $1,800 was spent to print and distribute their heart education newsletter. Targeted Population Health Fairs are conducted annually for children, seniors and the broader community. During this tax year, 290 people were served for a cost of $1,505 by having their blood pressure checked, eye exams, hearing tests and recommendations for establishing a medical home with either a physician and/or the free clinic. Several Support Groups are hosted (e.g. cardiac, bereavement) and numerous educational presentations (e.g. Bereaved Parents, Cardiac, etc) are given in the Manhattan/Wamego area. In FY2011, over 125 attendees participated in these educational events at a cost of nearly $500. Community Education is a program shared with the community to improve their understanding of specific diseases or improve their skills in taking care of others. MRHC offered educational forums on advance directives, babysitter's basics, breastfeeding and child birth basics, CPR, depression/anxiety, EMS, fitness/wellness and a host of other topics for the general public during FY2011. Nearly 3,000 attendees took advantage of these educational opportunities at a cost of just below $5,000. SANE/SART is a program in response to all victims of sexual assault who present themselves to MRHC hospital by providing immediate and follow-up medical, advocacy and criminal justice services in an ethical and compassionate manner. Over 106 individuals were assisted by the SANE/SART team of nurses at a cost of $17,626. Flint Hills Community Clinic, in partnership with MRHC, oversees uninsured and underinsured individuals. MRHC provides staff support, as well as free diagnostic testing (e.g. lab, x-rays, etc) for the clinic. During this fiscal year, nearly 2,100 instances of service were provided by MRHC at a cost of $231,282. Similarly, Wamego City Hospital provided 245 free labs for individuals helped by the Community Health Ministries Clinic in Wamego for a cost of $23,939. Health Profession Education of area physicians, nurses, physician assistants, nursing students and other health care professionals who are either looking for continuing education credits, wanting more hands-on training, or are in need of field practicum placements, etc are welcomed at MRHC and WCH for additional training opportunities. Nearly 660 health care professionals and/or students hoping to enter the health care field were offered training opportunities through the various programs offered by MRHC and WCH at a cost of $255,781. Security Transport is a support service provided by MRHC when patients are brought to the hospital emergency department but are in need of psychiatric placement but are unable to pay for transportation to get access to the facilities, which are located outside of the Manhattan area. Most of these patients are transferred to Larned, Osawatomie, Kansas University Medical Center in Kansas City or other locations. In FY2011, MRHC supplied security transport 140 times at a cost of $27,189. In-Kind Donations through service on community boards that are health related (e.g. American Red Cross, United Way, Flint Hills Community Clinic), and sharing of hospital space to conduct health related not-for-profit business is another area in which MRHC and WCH gives back to the community. In fiscal year 2011, MRHC and WCH contributed just over $129,052 through financial and in-kind contributions. Nearly $31,000 was expended in tracking community benefit activities offered by MRHC and WCH for fiscal year 2011. This includes the gearing up for a community-wide health needs assessment that was scheduled for FY2011. Community benefit staff uses and trains others to use the Community Benefit Inventory Social Accountability (CBISA) software, developed by Lyon Software and used by over 1,700 hospitals throughout the country. CBISA software follows the reporting guidelines adopted by Catholic Health Association and does not include bad debt or unpaid Medicare reimbursements as community benefit. Community Benefit Operations - Community benefit staff uses and trains others to use the Community Benefit Inventory Social Accountability (CBISA) software, developed by Lyon Software and used by over 1,700 hospitals throughout the country. CBISA software follows the reporting guidelines adopted by Catholic Health Association and does not include bad debt or unpaid Medicare reimbursements as community benefit. Overall, MRCH and WCH combined community benefit programs (not counting traditional charity care, unpaid reimbursement of Medicaid, and/or Community-Building activities) accounted for $758,452 to the geographical area of Manhattan and Wamego, Kansas during FY2011.
HOURS DEVOTED FOR RELATED ORGANIZATION	FORM 990 PART VII	NAME:DAVID HADLEY TITLE:TRUSTEE HOURS:49
HOURS DEVOTED FOR RELATED ORGANIZATION	FORM 990 PART VII	NAME:RANDALL PETERSON TITLE:TRUSTEE HOURS:49
HOURS DEVOTED FOR RELATED ORGANIZATION	FORM 990 PART VII	NAME:JOHN BROBERG TITLE:EX-OFFICIO(CEO) HOURS:1

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 REGIONAL HEALTH CENTER INC

Employer identification number

48-1186704

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) Catholic Care Center Inc 6700 E 45th St N Wichita,KS67226 48-1067110	Rtrmnt Home	KS	501(c)(3)	9	na
(2) CIBOR INC 9229 E 27TH ST N SUITE 200 Wichita,KS67226 27-0564463	Research	KS	501(c)(3)	7	na
(3) Cornerstone Assisted Living Inc 3636 N Ridge Road Wichita,KS67205 48-1241079	Rtrmnt Home	KS	501(c)(3)	9	na
(4) Gerard House Inc 3144 N Hood Wichita,KS67204 48-1049532	Shelter	KS	501(c)(3)	7	na
(5) Marian Health System Inc 1923 South Utica Avenue Tulsa,OK74104 36-3659989	Hospital Supp	DE	501(c)(3)	11	na
(6) Mercy Community Health Foundation Inc 1823 College Ave Manhattan,KS66502 48-1152279	Foundation	KS	501(c)(3)	11	na
(7) Mercy Regional Home Medical Services LLC 2439 Claflin Road Manhattan,KS66502 43-2024491	Home Medical	KS	501(c)(3)	11	na
(8) MOUNT CARMEL FOUNDATION INC 1102 E Centennial Dr Pittsburg,KS66762 48-0961283	Foundation	KS	501(c)(3)	11	na
(9) Salina Regional Home Medical Services 520 S Santa Fe Ave Ste 140 Salina,KS67401 43-1948057	Home Medical	KS	501(c)(3)	11	na
(10) St John's Inc 2225 Cantebury Dr Hays,KS67601 20-2828680	Rtrmnt Home	KS	501(c)(3)	9	na
(11) Via Christi Foundation Inc 723 N McLean Blvd Wichita,KS67203 48-1173588	Foundation	KS	501(c)(3)	11	na
(12) Via Christi Health Partners Inc 8200 E Thorn DR SUITE 300 Wichita,KS67226 48-0958974	Mgmnt Co.	KS	501(c)(3)	9	na
(13) Via Christi Health Inc 8200 E Thorn DR SUITE 300 Wichita,KS67226 48-1172107	Hospital Supp	KS	501(c)(3)	9	na
(14) Via Christi Healthcare Outreach Program 2622 W Central Suite 100 Wichita,KS67203 48-1236589	PACE Communit	KS	501(c)(3)	9	na
(15) Via Christi Home Health Wichita Inc 555 S Washington Wichita,KS67211 48-1046371	Home Health	KS	501(c)(3)	9	na
(16) Via Christi Hospital Pittsburg Inc 1102 E Centennial Dr Pittsburg,KS66762 48-0543778	Hospital	KS	501(c)(3)	3	na
(17) Via Christi Hospital Wichita St Teresa 14800 W St Teresa Wichita,KS67235 27-1965272	Hospital	KS	501(c)(3)	3	na
(18) Via Christi Hospitals Wichita Inc 929 N St Francis Wichita,KS67214 48-1172106	Hospital	KS	501(c)(3)	3	na
(19) VC IMMEDIATE CARE MOTHER MARY ANNE INC 929 N St Francis Wichita,KS67214 20-8374099	Med. Clinic	KS	501(c)(3)	9	na
(20) Via Christi Property Services Inc 1100 N St Francis Suite 240 Wichita,KS67214 48-0948571	Property Mgmt	KS	501(c)(4)	N/A	na
(21) Via Christi Rehabilitation Hospital Inc 1151 N Rock Road Wichita,KS67206 48-1158274	Rehab.	KS	501(c)(3)	3	na
(22) Via Christi Village Georgetown Inc 1655 S Georgetown Wichita,KS67218 48-1129325	Rtrmnt Home	KS	501(c)(3)	9	na
(23) Via Christi Village Manhattan Inc 2800 Willowgrove Rd Manhattan,KS66502 48-1078862	Rtrmnt Home	KS	501(c)(3)	9	na
(24) Via Christi Village McLean Inc 777 N McLean Blvd Wichita,KS67203 48-1247723	Rtrmnt Home	KS	501(c)(3)	9	na
(25) Via Christi Village Ponca City Inc 1601 Academy Rd Ponca City,OK74604 73-1153337	Rtrmnt Home	OK	501(C)(3)	9	na
(26) Via Christi Village Pittsburg Inc 1502 E Centennial Dr Pittsburg,KS66762 74-3070971	Rtrmnt Home	KS	501(c)(3)	9	na
(27) Via Christi Villages Inc 2622 W Central Suite 100 Wichita,KS67203 48-0559086	Mgmnt Co.	KS	501(c)(3)	11	na
(28) Wamego Hospital Association 711 Genn Dr Wamego,KS66547 72-1526400	Hospital	KS	501(c)(3)	3	na
(29) Ascension Health PO BOX 45998 ST LOUIS,MO63145 31-1662309	HLTH SYS GOV	MO	501(c)(3)	11	N/A
(30) Via Christi InMyHome Inc 2622 W Central Suite 100 Wichita,KS67203 27-1889960	HLTH AGENCY	KS	501(c)(3)	9	NA
(31) VIA CHRISTI CLINIC SERVICES INC 8200 THORN DRIVE SUITE 300 WICHITA,KS67226 27-3984287	MED. CLINIC	KS	501(C)(3)	11	NA

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) Ambulatory Surgery Center LP 8200 E THORN Dr SUITE 300 Wichita,KS67226 48-1114690	SURGERY CTR	KS	NA	N/A	0	0			0			0 %
(2) AMS Diagnostics LLC 8200 E THORN Dr SUITE 300 Wichita,KS67214 48-1223653	RADIOLOGY SVC	KS	NA	N/A	0	0			0			0 %
(3) KS Surgery and Recovery Ctr LLC 2770 North Webb Road Wichita,KS67226 48-1148580	SURGERY CTR	KS	NA	N/A	0	0			0			0 %
(4) Mercy Imaging LLC 1823 College Avenue Manhattan,KS66502 48-1251984	RADIOLOGY SVC	KS	NA	N/A	-783,288				0			75.000 %
(5) MR Imaging Center LLC 8200 E THORN Dr SUITE 300 Wichita,KS67214 48-1000538	Diagnostic Im	KS	NA	N/A	0	0			0			0 %
(6) PFI LLC 8200 E THORN Dr SUITE 300 Wichita,KS67226 72-1557076	MED CHEM MFG	KS	NA	N/A	16,306				0			3.165 %
(7) Preferred PET Imaging of KS LLC 8200 E THORN Dr SUITE 300 Wichita,KS67214 48-1250123	Diagnostic Im	KS	NA	N/A	0	0			0			0 %
(8) Via Christi Cyberknife LLC 8200 E THORN Dr SUITE 300 Wichita,KS67214 35-4588711	RADIOLOGY SVC	KS	NA	N/A	0	0			0			0 %
(9) St Joseph MRI LLC 8200 E THORN Dr SUITE 300 Wichita,KS67214 48-1007220	MEDICAL SVCS	KS	NA	N/A	0	0			0			0 %

Part IV

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

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(e) Type of entity (C corp, S corp, or trust)	(f) Share of total income	(g) Share of end-of-year assets	(h) Percentage ownership
(1) AFFILIATED MEDICAL SERVICES LAB INC 2916 E CENTRAL WICHITA,KS67214 48-1239522	MEDICAL LAB	KS	VC HEALTH	C-CORP	12,321,597	7,892,802	100.000 %
(2) SUNFLOWER ASSURANCE LTD 98-0223159	INSURANCE	CJ	NA	FOREIGN CORP	3,651,768	38,500,707	100.000 %
(3) INTEGRATED HEALTHCARE SYSTEMS INC 3311 EAST MURDOCK WICHITA,KS67208 48-0941549	CLINIC SERVICES	KS	NA	C CORP	58,758,618	41,790,046	100.000 %
(4) VCH IOWA PC TRUST 8200 THORN DRIVE SUITE 300 WICHITA,KS67226 27-6937322	BENEFICIARY TRUST	IA	NA	TRUST	0	0	100.000 %
(5) VCH IOWA PC 8200 THORN DR WICHITA,KS67226 27-3983977	PROF. CORP	IA	NA	CORP	0	0	100.000 %
(6) VIA CHRISTI CLINIC PA 3311 EAST MURDOCK WICHITA,KS67208 48-0993446	PROF. CORP	KS	NA	CORP	116,439,508	24,067,602	100.000 %

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

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

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

Yes

If the answer to any of the above is "Yes," see the instructions for information on who must complete this line, including covered relationships and transaction thresholds.

(a) Name of other organization	(b) Transaction type(a-r)	(c) Amount involved
(1) MERCY IMAGING LLC	P	319,306
(2) WAMEGO HOSPITAL ASSOCIATION	P	3,743,712
(3)
(4)
(5)
(6)

Schedule R (Form 990) 2010

Page 4

Part VI

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

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

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

Schedule R (Form 990) 2010

Page 5

Part VII

Supplemental Information

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

Identifier	Return Reference	Explanation

Additional Data

Software ID:
Software Version:

1	Briefly describe the organization’s mission or most significant activities: Inspired by the Gospel our Catholic tradition, Mercy Regional Health Center, Inc. serves as a healing presence with special concerns for our neighbors, who are vulnerable.
2	Check this box
3	Number of voting members of the governing body (Part VI, line 1a) ....	3	18
4	Number of independent voting members of the governing body (Part VI, line 1b) ....	4	15
5	Total number of individuals employed in calendar year 2010 (Part V, line 2a) ...	5	1,191
6	Total number of volunteers (estimate if necessary) ....	6	298
7a	Total unrelated business revenue from Part VIII, column (C), line 12 ..	7a	192,205
b	Net unrelated business taxable income from Form 990-T, line 34 ..	7b	98,716

		Prior Year	Current Year
8	Contributions and grants (Part VIII, line 1h) .........	7,533	2,974
9	Program service revenue (Part VIII, line 2g) .........	87,419,842	87,632,302
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	1,316,745	2,192,574
11	Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)	6,177,566	2,981,047
12	Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)...................	94,921,686	92,808,897
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...	174,233	0
14	Benefits paid to or for members (Part IX, column (A), line 4) ....	0	0
15	Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10)	43,214,226	41,265,985
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)....	43,052,415	47,892,893
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	86,440,874	89,158,878
19	Revenue less expenses. Subtract line 18 from line 12......	8,480,812	3,650,019
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16)............	124,045,113	122,667,093
21	Total liabilities (Part X, line 26)............	53,966,551	50,708,841
22	Net assets or fund balances. Subtract line 21 from line 20 .....	70,078,562	71,958,252

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 $ 3,307,424 including grants of $ ) (Revenue $ )
	Charity Care - Free or discounted health services provided to persons who cannot afford to pay and who meet Mercy Regional Health Center, Inc.'s criteria for financial assistance. Charity care is reported in terms of costs, not charges. Charity care does not include bad debt.

4b	(Code: ) (Expenses $ 1,810,874 including grants of $ ) (Revenue $ )
	Government Sponsored Means-Tested Health Care - Includes unpaid costs of public programs for low-income persons. This is the shortfall created when Mercy Regional Health Center, Inc. receives payments that are less than the cost of caring for public program beneficiaries. This payment shortfall is not the same as a contractual allowance, which is the full difference between charges and government payments.

4c	(Code: ) (Expenses $ 67,067,343 including grants of $ ) (Revenue $ 91,012,487 )
	Mercy Regional Health Center, Inc. provides a full range of inpatient and outpatient services to individuals in the community regardless of socioeconomic or demographic background. Mercy Regional Health Center, Inc. is committed to community health with programs including but not limited to Diabetes Education, Nutrition Education, Fitness Education, and Lifesaving Education. Mercy Regional Health Center, Inc. sponsors the American Heart Walk, provides fitness centers, exercise classes, ergonomic reviews, and provides scholarships to students attending nursing school.

4d	Other program services. (Describe in Schedule O.)
	(Expenses $ including grants of $ ) (Revenue $ )
4e	Total program service expenses$ 72,185,641

(A) Name and Title	(B) Average hours per week (describe hours for related organizations in Schedule O)	(C) Position (check all that apply)					(D) Reportable compensation from the organization (W- 2/1099-MISC)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)	(F) Estimated amount of other compensation from the organization and related organizations
(A) Name and Title
(18) MARK DUFF MD TRUSTEE	1.0	X					0	0	0
(19) JANET CRIQUI CFO(THROUGH JUNE)	50.0		X				142,210	0	17,771
(20) GERALD LUEGER CFO(JUNE TO SEPTEMBER)	50.0		X				100,125	0	11,192
(21) MARCIA BUBAK VP PATIENT CARE	50.0			X			149,093	0	19,734
(22) WILLIAM FREUND MD PHYSICIAN	50.0				X		373,667	0	6,107
(23) PRIYANTHA S RANAWEERA MD PHYSICIAN	50.0				X		567,542	0	12,563
(24) CASEY M POELL MD PHYSICIAN	50.0				X		268,269	0	5,839
(25) DAVID M WICHMAN MD PHYSICIAN	50.0				X		225,148	0	12,874
(26) FADI V BEDROS MD PHYSICIAN	50.0				X		383,348	0	14,665
(27) RICHARD ALLEN FORMER CEO	0.0					X	0	175,331	0

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)............	2,209,402	1,576,143	406,327

				(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		420
e	Government grants (contributions)1e		2,500

f	All other contributions, gifts, grants, and similar amounts not included above1f		54
g	Noncash contributions included in lines 1a-1f:$
h	Total. Add lines 1a-1f.......			2,974
			Business Code
2a	NET PATIENT SERVICE REVENUE		621,110	87,632,302	87,523,464	108,838
b
c
d
e
f	All other program service revenue .
g	Total. Add lines 2a–2f........			87,632,302
3	Investment income (including dividends, interest
	and other similar amounts).....			919,960			919,960
4	Income from investment of tax-exempt bond proceeds..			0
5	Royalties............			0
		(i) Real	(ii) Personal
6a	Gross Rents	147,785
b	Less: rental expenses	158,351
c	Rental income or (loss)	-10,566
d	Net rental income or (loss).......			-10,566		16,874	-27,440
		(i) Securities	(ii) Other
7a	Gross amount from sales of assets other than inventory	1,269,439	8,900
b	Less: cost or other basis and sales expenses		5,725
c	Gain or (loss)	1,269,439	3,175
d	Net gain or (loss)..........			1,272,614			1,272,614
8a	Gross income from fundraising events (not including $ of contributions reported on line 1c). See Part IV, line 18 ...
	a
b	Less: direct expenses ...b
c	Net income or (loss) from fundraising events..			0
9a	Gross income from gaming activities. See Part IV, line 19 ...
	a
b	Less: direct expenses ...b
c	Net income or (loss) from gaming activities...			0
10a	Gross sales of inventory, less returns and allowances .
	a
b	Less: cost of goods sold ..b
c	Net income or (loss) from sales of inventory..			0
Miscellaneous Revenue			Business Code
11a	EMS		621,910	2,080,017	2,080,017
b	FOOD SERVICES		722,210	509,783	509,783
c	MANAGEMENT		551,114	447,673	447,673
d	All other revenue ....			-45,860	451,550	66,493	-563,903
e	Total. Add lines 11a–11d ......			2,991,613
12	Total revenue. See Instructions....			92,808,897	91,012,487	192,205	1,601,231


				(A) Beginning of year		(B) End of year
1	Cashnon-interest-bearing ..........			0	1	7,342,087
2	Savings and temporary cash investments .......			18,493,957	2	7,723,776
3	Pledges and grants receivable, net .........				3
4	Accounts receivable, net .........			10,397,594	4	12,300,853
5	Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
	Schedule L ..........				5
6	Receivables from other disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B). Complete Part II of
	Schedule L ..........				6
7	Notes and loans receivable, net .............				7
8	Inventories for sale or use ..............			3,008,630	8	2,577,413
9	Prepaid expenses and deferred charges ............			347,021	9	28,042
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	113,017,148
b	Less: accumulated depreciation. .....	10b	52,519,765	62,369,472	10c	60,497,383
11	Investments—publicly traded securities ..........				11
12	Investments—other securities. See Part IV, line 11 ......			28,101,087	12	19,226,297
13	Investments—program-related. See Part IV, line 11 ..				13
14	Intangible assets .........				14
15	Other assets. See Part IV, line 11 ...........			1,327,352	15	12,971,242
16	Total assets. Add lines 1 through 15 (must equal line 34)...			124,045,113	16	122,667,093
17	Accounts payable and accrued expenses .			9,672,819	17	7,027,590
18	Grants payable ..........				18
19	Deferred revenue ..........				19
20	Tax-exempt bond liabilities ..........			31,936,061	20	30,101,599
21	Escrow or custodial account liability. Complete Part IV of Schedule D..				21
22	Payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........				22
23	Secured mortgages and notes payable to unrelated third parties ..			1,827,943	23	795,393
24	Unsecured notes and loans payable to unrelated third parties ....				24
25	Other liabilities. Complete Part X of Schedule D.....			10,529,728	25	12,784,259
26	Total liabilities. Add lines 17 through 25.....			53,966,551	26	50,708,841
	Organizations that follow SFAS 117, check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets .....			69,918,050	27	71,958,252
28	Temporarily restricted net assets .....			160,512	28
29	Permanently restricted net assets .....				29
	Organizations that do not follow SFAS 117, check here and complete lines 30 through 34.
30	Capital stock or trust principal, or current funds .....				30
31	Paid-in or capital surplus, or land, building or equipment fund .....				31
32	Retained earnings, endowment, accumulated income, or other funds				32
33	Total net assets or fund balances .....			70,078,562	33	71,958,252
34	Total liabilities and net assets/fund balances .....			124,045,113	34	122,667,093