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) SCOTT A BAKER SECRETARY	.30	X	X
(2) SANDRA L BODNYK TREASURER	.40	X	X
(3) PATRICK J BRENNAN MD TRUSTEE	.30	X
(4) ADDIE J BUTLER EDD TRUSTEE	.30	X
(5) DAVID G DECAMPLI CHAIR	.70	X	X
(6) RICHARD E DROBNICKI VICE CHAIR	.70	X	X
(7) ROBERT E GADOMSKI TRUSTEE	.30	X
(8) MICHAEL GOLDNER DO TRUSTEE	.20	X
(9) ELSBETH G HAYMON TRUSTEE	.30	X
(10) KATHERINE E HILGERT TRUSTEE	.20	X
(11) SANDRA JARVA WEISS TRUSTEE	.20	X
(12) JAAN PETER NAKTIN MD TRUSTEE	.20	X
(13) GERALD A NAU TRUSTEE	.20	X
(14) EDITH D RITTER TRUSTEE	.20	X
(15) GARY R SCHMIDT TRUSTEE	.30	X
(16) THE REV DAVID R STROBEL TRUSTEE	.20	X
(17) DANIEL J WILSON PHD TRUSTEE	.30	X

(A) Name and business address	(B) Description of services	(C) Compensation
HEALTH NETWORK LABORATORIES 2024 LEHIGH STREET ALLENTOWN,PA18103	LABORATORY SERVICES	380,605
POCONO MEDICAL CENTER 206 EAST BROWN STREET EAST STROUDSBURG,PA18301	MEDICAL SERVICES	376,199
CAMBRIDGE MEDICAL STAFFING 4155 INDEPENDENCE DRIVE SCHNECKSVILLE,PA18078	TEMP STAFF SERVICES	310,580
COMPHEALTH MEDICAL STAFFING PO BOX 972651 DALLAS,TX75397	TEMP MEDICAL STAFF SERVICES	271,082
PEOPLE 20 GLOBAL PO BOX 827932 PHILADELPHIA,PA19182	TEMP STAFF SERVICES	209,301
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 10

Do not include amounts reported on lines 6b, 7b, 8b, 9b, and 10b of Part VIII.	(A) Total expenses	(B) Program service expenses	(C) Management and general expenses	(D) Fundraising expenses
1	Grants and other assistance to governments and organizations in the U.S. See Part IV, line 21
2	Grants and other assistance to individuals in the U.S. See Part IV, line 22
3	Grants and other assistance to governments, organizations, and individuals outside the U.S. See Part IV, lines 15 and 16
4	Benefits paid to or for members
5	Compensation of current officers, directors, trustees, and key employees ....
6	Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....	193,710	193,710
7	Other salaries and wages	29,037,401	26,403,360	2,634,041
8	Pension plan contributions (include section 401(k) and section 403(b) employer contributions) ....	1,901,297	1,728,752	172,545
9	Other employee benefits .......	3,789,410	3,446,742	342,668
10	Payroll taxes ...........	2,011,448	1,820,691	190,757
11	Fees for services (non-employees):
a	Management ......
b	Legal .........
c	Accounting ...........
d	Lobbying ...........	11,309	11,309
e	Professional fundraising. See Part IV, line 17..
f	Investment management fees ......
g	Other ..........	2,072,653	1,685,479	387,174
12	Advertising and promotion ....	23,624	23,457	167
13	Office expenses .......	1,508,339	1,381,859	126,480
14	Information technology ......
15	Royalties ..
16	Occupancy ...........	1,908,397	1,012,069	896,328
17	Travel ............	54,494	40,946	13,548
18	Payments of travel or entertainment expenses for any federal, state, or local public officials ......
19	Conferences, conventions, and meetings ....	52,168	45,380	6,788
20	Interest ...........
21	Payments to affiliates .......
22	Depreciation, depletion, and amortization .....	4,287,013	4,287,013
23	Insurance ..............	77,415	77,415
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	UBI TAXES	290,094		290,094
b	CORPORATE ALLOCATION	24,495,349	17,636,651	6,858,698
c	DRUGS	1,838,192	1,838,192
d	BAD DEBT EXPENSE	734,139	734,139
e	REPAIRS AND MAINTENANCE	262,634	73,194	189,440
f	All other expenses	111,985	22,958	89,027
25	Total functional expenses. Add lines 1 through 24f	74,661,071	62,463,316	12,197,755	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 ..........	18,552	1	23,585
2	Savings and temporary cash investments .......		2
3	Pledges and grants receivable, net .........		3
4	Accounts receivable, net .........	10,134,712	4	10,606,150
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 ..............	519,517	8	457,572
9	Prepaid expenses and deferred charges ............	1,385,294	9	1,289,271
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	115,054,755
b	Less: accumulated depreciation. .....	10b	65,445,023	52,863,302	10c	49,609,732
11	Investments—publicly traded securities ..........		11
12	Investments—other securities. See Part IV, line 11 ......		12
13	Investments—program-related. See Part IV, line 11 ..		13
14	Intangible assets .........	635,721	14	605,516
15	Other assets. See Part IV, line 11 ...........	0	15	803,448
16	Total assets. Add lines 1 through 15 (must equal line 34)...	65,557,098	16	63,395,274
	17	Accounts payable and accrued expenses .	16,160,512	17	11,739,905
18	Grants payable ..........		18
19	Deferred revenue ..........		19
20	Tax-exempt bond liabilities ..........		20
21	Escrow or custodial account liability. Complete Part IV of Schedule D..		21
22	Payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........		22
23	Secured mortgages and notes payable to unrelated third parties ..		23
24	Unsecured notes and loans payable to unrelated third parties ....		24
25	Other liabilities. Complete Part X of Schedule D.....	30,449,082	25	25,872,283
26	Total liabilities. Add lines 17 through 25.....	46,609,594	26	37,612,188
		Organizations that follow SFAS 117, check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets .....	18,947,504	27	25,783,086
28	Temporarily restricted net assets .....		28
29	Permanently restricted net assets .....		29
	Organizations that do not follow SFAS 117, check here and complete lines 30 through 34.
30	Capital stock or trust principal, or current funds .....		30
31	Paid-in or capital surplus, or land, building or equipment fund .....		31
32	Retained earnings, endowment, accumulated income, or other funds		32
33	Total net assets or fund balances .....	18,947,504	33	25,783,086
34	Total liabilities and net assets/fund balances .....	65,557,098	34	63,395,274

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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

THE GOOD SHEPHERD REHABILITATION HOSPITAL

Employer identification number

23-1371947

Part I

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Type I

Type II

Type III - Functionally integrated

Type III - Other

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

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

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

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

Yes

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

11g(i)

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

11g(ii)

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

11g(iii)

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

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


Total

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

Cat. No. 11285F

Schedule A (Form 990 or 990-EZ) 2010

Page 2

Part II

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

Section A. Public Support

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

Section B. Total Support

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

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

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

Section C. Computation of Public Support Percentage

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

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

16a

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

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

17a

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

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

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

Schedule A (Form 990 or 990-EZ) 2010

Page 3

Part III

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

Section A. Public Support

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

Section B. Total Support

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

Section C. Computation of Public Support Percentage

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

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

Section D. Computation of Investment Income Percentage

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

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

19a

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

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

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

Schedule A (Form 990 or 990-EZ) 2010

Page 4

Part IV

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

Facts And Circumstances Test

Explanation

Schedule A (Form 990 or 990-EZ) 2010

Additional Data

Software ID:
Software Version:

- TIN:

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

Department of the Treasury
Internal Revenue Service

Schedule of Contributors

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

OMB No. 1545-0047

2010

Name of organization

THE GOOD SHEPHERD REHABILITATION HOSPITAL

Employer identification number

23-1371947

Organization type (check one):

Filers of:

Section:

Form 990 or 990-EZ

501(c)( ) (enter number) organization

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

527 political organization

Form 990-PF

501(c)(3) exempt private foundation

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

501(c)(3) taxable private foundation

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

General Rule

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

Special Rules

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

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

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

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

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

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

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

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

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

Page 1 of 1 of Part III

Name of organization
THE GOOD SHEPHERD REHABILITATION HOSPITAL

Employer identification number

23-1371947

Part III

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

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

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

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

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

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

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

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

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

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

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE C
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Political Campaign and Lobbying Activities

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

Complete if the organization is described below.
SchCMd Bullet

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

See separate instructions.

OMB No. 1545-0047

2010

Open to Public
Inspection

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

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

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

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

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

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

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

Name of the organization

THE GOOD SHEPHERD REHABILITATION HOSPITAL

Employer identification number

23-1371947

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

11,309

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

11,309

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

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

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

If the filing organization incurred a section 4912 tax, did it file Form 4720 for this year? .......

Part III-A

Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6).

Yes

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

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

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

Part III-B

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

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

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

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

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

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

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

If notices were sent and the amount on line 2c exceeds the amount on line 3, what portion of the excess does the organization agree to carryover to the reasonable estimate of nondeductible lobbying and political expenditure next year? ................................

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

Part IV

Supplemental Information

Complete this part to provide the descriptions required for Part l-A, line 1; Part l-B, line 4; Part l-C, line 5; and Part ll-B, line 1i.
Also, complete this part for any additional information.

Identifier	Return Reference	Explanation
EXPLANATION OF OTHER LOBBYING ACTIVITIES:	PART II-B, LINE 1I:	THE GOOD SHEPHERD REHABILITATION HOSPITAL ("GSRH") PAID DUES TO VARIOUS ORGANIZATIONS DURING THE YEAR ENDED JUNE 30, 2011. THESE ORGANIZATIONS INFORMED GSRH THAT A PERCENTAGE OF THOSE DUES WERE USED FOR LOBBYING PURPOSES, AS FOLLOWS: 1) THE HOSPITAL & HEALTHSYSTEM ASSOCIATION OF PENNSYLVANIA ("HAP") - $7,143 2) THE AMERICAN MEDICAL REHABILITATION PROVIDERS ASSOCIATION ("AMRPA") - $2,866 3) THE PENNSYLVANIA ASSOCIATION OF REHABILITATION FACILITIES ("PARF") - $1,272 4) LUTHERAN SERVICES IN AMERICA ("LSA") - $28

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

THE GOOD SHEPHERD REHABILITATION HOSPITAL

Employer identification number

23-1371947

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 .................	2,188,957		2,188,957
b	Buildings ................	56,868,966	23,739,673	33,129,293
c	Leasehold improvements ............	6,357,394	3,638,396	2,718,998
d	Equipment ................	45,111,074	35,349,017	9,762,057
e	Other .................	4,528,364	2,717,937	1,810,427
Total. Add lines 1a-1e. (Column (d) should equal Form 990, Part X, column (B), line 10(c).)........				49,609,732

Schedule D (Form 990) 2010

Page 3

Part VII

InvestmentsOther Securities. See Form 990, Part X, line 12.

(a) Description of security or category (including name of security)		(b)Book value	(c) Method of valuation: Cost or end-of-year market value
(1)Financial derivatives
(2)Closely-held equity interests
Other








Total. (Column (b) should equal Form 990, Part X, col.(B) line 12.)

Part VIII

InvestmentsProgram Related. See Form 990, Part X, line 13.

(a) Description of investment type		(b) Book value	(c) Method of valuation: Cost or end-of-year market value









Total. (Column (b) should equal Form 990, Part X, col.(B) line 13.)

Part IX

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

(a) Description				(b) Book value









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

Part X

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

1.(a) Description of Liability		(b) Amount
Federal Income Taxes
ESTIMATED THIRD-PARTY PAYOR SETTLEMENTS		890,563
ADVANCE FROM THIRD-PARTY PAYOR		277,900
AMOUNTS DUE TO AFFILIATES		24,703,820






Total. (Column (b) should equal Form 990, Part X, col.(B) line 25.)		25,872,283
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	76,101,082
2	Total expenses (Form 990, Part IX, column (A), line 25) .....................	2	74,661,071
3	Excess or (deficit) for the year. Subtract line 2 from line 1 .............	3	1,440,011
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	5,395,571
9	Total adjustments (net). Add lines 4 - 8 .............................	9	5,395,571
10	Excess or (deficit) for the year per financial statements. Combine lines 3 and 9 .........	10	6,835,582

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	81,628,658
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	5,805,039
e	Add lines 2a through 2d .....................			2e	5,805,039
3	Subtract line 2e from line 1.....................			3	75,823,619
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	277,463
c	Add lines 4a and 4b.......................			4c	277,463
5	Total Revenue. Add lines 3 and 4c. (This should equal Form 990, Part I, line 12.) ......			5	76,101,082

Part XIII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return
1	Total expenses and losses per audited financial statements .............			1	74,793,076
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	132,005
e	Add lines 2a through 2d......................			2e	132,005
3	Subtract line 2e from line 1.....................			3	74,661,071
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	0
5	Total expenses. Add lines 3 and 4c. (This should equal Form 990, Part I, line 18.) ......			5	74,661,071

Part XIV

Supplemental Information

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

Identifier	Return Reference	Explanation
DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48:	PART X:	GOOD SHEPHERD PRESCRIBES A RECOGNITION THRESHOLD OF MORE-LIKELY-THAN-NOT TO BE SUSTAINED UPON EXAMINATION BY THE APPROPRIATE TAXING AUTHORITY IN RECORDING TAX LIABILITIES IN THE FINANCIAL STATEMENTS. MEASUREMENT AND RECOGNITION OF THE TAX UNCERTAINTY OCCURS IF THE RECOGNITION THRESHOLD HAS BEEN MET. GOOD SHEPHERD'S POLICY IS TO RECOGNIZE INTEREST RELATED TO UNRECOGNIZED TAX BENEFITS IN INTEREST EXPENSE AND PENALTIES IN OPERATING EXPENSES.
PART XI, LINE 8 - OTHER ADJUSTMENTS:		PENSION LIABILITY ADJUSTMENT 5,805,039. NET ASSETS RELEASED ADJUSTMENT FOR SPECIAL EVENTS -409,468.
PART XII, LINE 2D - OTHER ADJUSTMENTS:		PENSION LIABILITY ADJUSTMENT 5,805,039.
PART XII, LINE 4B - OTHER ADJUSTMENTS:		SPECIAL EVENTS EXPENSE -132,005. NET ASSETS RELEASED ADJUSTMENT FOR SPECIAL EVENTS 409,468.
PART XIII, LINE 2D - OTHER ADJUSTMENTS:		SPECIAL EVENTS EXPENSE 132,005.

Schedule D (Form 990) 2010

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE G
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Supplemental Information Regarding
Fundraising or Gaming Activities

Complete if the organization answered "Yes" to Form 990, Part IV, lines 17, 18, or 19,
or if the organization entered more than $15,000 on Form 990-EZ, line 6a.
right arrow

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

See separate instructions.

OMB No. 1545-0047

2010

Open to Public Inspection

Name of the organization
THE GOOD SHEPHERD REHABILITATION HOSPITAL

Employer identification number

23-1371947

Part I

Fundraising Activities. Complete if the organization answered "Yes" to Form 990, Part IV, line 17.

Indicate whether the organization raised funds through any of the following activities. Check all that apply.

a	Mail solicitations	e	Solicitation of non-government grants
b	Internet and e-mail solicitations	f	Solicitation of government grants
c	Phone solicitations	g	Special fundraising events
d	In-person solicitations

Did the organization have a written or oral agreement with any individual (including officers, directors, trustees

or key employees listed in Form 990, Part VII) or entity in connection with professional fundraising services?

Yes

If “Yes,” list the ten highest paid individuals or entities (fundraisers) pursuant to agreements under which the fundraiser is
to be compensated at least $5,000 by the organization. Form 990-EZ filers are not required to complete this table.

(i) Name and address of individual or entity (fundraiser)	(ii) Activity	(iii) Did fundraiser have custody or control of contributions?		(iv) Gross receipts from activity	(v) Amount paid to (or retained by) fundraiser listed in col. (i)	(vi) Amount paid to (or retained by) organization
	(ii) Activity	Yes	No	(iv) Gross receipts from activity		(vi) Amount paid to (or retained by) organization
Total .................

List all states in which the organization is registered or licensed to solicit funds or has been notified it is exempt from registration or licensing.

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

Cat. No. 50083H

Schedule G (Form 990 or 990-EZ) 2010

Page 2

Part II

Fundraising Events. Complete if the organization answered "Yes" to Form 990, Part IV, line 18, or reported more than $15,000 on Form 990-EZ, line 6a. List events with gross receipts greater than $5,000.

		(a) Event #1 GOLF & TENNIS CLASSIC (event type)	(b) Event #2 GALA IN THE GARDEN (event type)	(c) Other Events 1 (total number)	(d) Total Events (Add col. (a) through col. (c))
1	Gross receipts . . .	184,692	174,356	50,420	409,468
2	Less: Charitable contributions . . .	133,932	113,122	30,409	277,463
3	Gross income (line 1 minus line 2) . . .	50,760	61,234	20,011	132,005
4	Cash prizes . . .
5	Non-cash prizes . .	750		750	1,500
6	Rent/facility costs . .	24,940	18,530	5,697	49,167
7	Food and beverages . .	13,419	25,513	7,132	46,064
8	Entertainment . . .		700		700
9	Other direct expenses .	11,651	16,491	6,432	34,574
10	Direct expense summary. Add lines 4 through 9 in column (d) ...........				132,005
11	Net income summary. Combine lines 3 and 10 in column (d)............				0

Part III

Gaming. Complete if the organization answered "Yes" to Form 990, Part IV, line 19, or reported more than $15,000 on Form 990-EZ, line 6a.

(a) Bingo

(b) Pull tabs/Instant
bingo/progressive bingo

(c) Other gaming

(d) Total gaming (Add col. (a) through col. (c))

Gross revenue . . . .

Cash prizes . . . .

Non-cash prizes . . .

Rent/facility costs . . .

Other direct expenses . .

Volunteer labor . . .

	Yes
	No

	Yes
	No

	Yes
	No

Direct expense summary. Add lines 2 through 5 in column (d) ........... right arrow

Net gaming income summary. Combine lines 1 and 7 in column (d) .......... right arrow

Enter the state(s) in which the organization operates gaming activities:

Is the organization licensed to operate gaming activities in each of these states? ............

YesNo

If "No," Explain:

10a

Were any of the organization's gaming licenses revoked, suspended or terminated during the tax year? .....

YesNo

If "Yes," Explain:

Does the organization operate gaming activities with nonmembers? .................

YesNo

Is the organization a grantor, beneficiary or trustee of a trust or a member of a partnership or other entity

formed to administer charitable gaming? ...........................

YesNo

Schedule G (Form 990 or 990-EZ) 2010

Page 3

Indicate the percentage of gaming activity operated in:

The organization's facility ......................

13a

An outside facility ........................

13b

Provide the name and address of the person who prepares the organization's gaming/special events books and records:

Name

Address

15a

Does the organization have a contract with a third party from whom the organization receives gaming

revenue? ......................................

YesNo

If "Yes," enter the amount of gaming revenue received by the organization right arrow

$ and the

amount of gaming revenue retained by the third party right arrow

$ .

If "Yes," enter name and address:

Name

Address

Gaming manager information:

Name

Gaming manager compensation right arrow

Description of services provided right arrow

Director/officer Employee Independent contractor

Mandatory distributions:

Is the organization required under state law to make charitable distributions from the gaming proceeds to

retain the state gaming license? ............................

YesNo

Enter the amount of distributions required under state law distributed to other exempt organizations or spent

in the organization's own exempt activities during the tax year right arrow

Part IV

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

Identifier	ReturnReference	Explanation

Schedule G (Form 990 or 990-EZ) 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

THE GOOD SHEPHERD REHABILITATION HOSPITAL

Employer identification number

23-1371947

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: .....

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?.........

Yes

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) ..	602,084		602,084	0.810 %
b Unreimbursed Medicaid (from Worksheet 3, column a) .	9,647,257	6,897,055	2,750,202	3.720 %
c Unreimbursed costs—other means-tested government programs (from Worksheet 3, column b) ....
dTotal Charity Care and Means-Tested Government Programs .....	10,249,341	6,897,055	3,352,286	4.530 %
Other Benefits e Community health improvement services and community benefit operations (from (Worksheet 4) ....	32,862		32,862	0.040 %
f Health professions education (from Worksheet 5) ..	1,801,827		1,801,827	2.440 %
g Subsidized health services (from Worksheet 6) ..	2,643,822	800,058	1,843,764	2.490 %
h Research (from Worksheet 7)
i Cash and in-kind contributions to community groups (from Worksheet 8) ..	2,021		2,021	0 %
jTotal Other Benefits ...	4,480,532	800,058	3,680,474	4.970 %
kTotal. Add lines 7d and 7j. ..	14,729,873	7,697,113	7,032,760	9.500 %

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

Schedule H (Form 990) 2010

Page 2

Part II

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

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

Part III

Bad Debt, Medicare, & Collection Practices

Section A. Bad Debt Expense

Yes

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

Yes

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

200,099

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

20,070

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).....

21,447,778

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

21,700,801

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

-253,023

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	GOOD SHEPHERD REHABILITATION HOSPITAL 850 SOUTH 5TH STREET ALLENTOWN,PA18103	X	REHABILITATION HOSPITAL

Schedule H (Form 990) 2010

Page 4

Part VFacility Information (continued)

Section B. Facility Policies and Practices.

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

Name of Hospital Facility:NA

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

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

Schedule H (Form 990) 2010

Page 5

Part VFacility Information (continued)

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

Schedule H (Form 990) 2010

Page 6

Part VFacility Information (continued)

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

Schedule H (Form 990) 2010

Page 7

Part VFacility Information (continued)

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

Schedule H (Form 990) 2010

Page 8

Part VI

Supplemental Information

Complete this part to provide the following information.

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

Identifier	ReturnReference	Explanation
		PART I, LINE 3C: GOOD SHEPHERD REHABILITATION HOSPITAL (THE HOSPITAL) HAS A WRITTEN CHARITY CARE POLICY. ALL PATIENTS ARE NOTIFIED OF GOOD SHEPHERD'S CHARITY CARE AVAILABILITY PRIOR TO THE START OF THEIR CARE. GENERALLY, PATIENTS AUTOMATICALLY QUALIFY UNDER THE HOSPITAL'S CHARITY CARE POLICY IF THEIR INCOME IS LESS THAN 200% OF THE CURRENT FEDERAL POVERTY GUIDELINES. HOWEVER, OTHER FACTORS ARE ALSO USED TO DETERMINE ELIGIBILITY INCLUDING:-SOURCES OF INCOME-LIVING EXPENSES-OTHER PERSONAL ASSETS AND LIABILITIES-DEMOGRAPHIC INFORMATION-ONGOING HEALTHCARE NEEDSQUALIFICATION UNDER THE HOSPITAL'S CHARITY CARE POLICY ENTITLES PATIENTS TO COMPLETELY FREE CARE. THE HOSPITAL DOES NOT OFFER A PROGRAM OF DISCOUNTED CARE. THE HOSPITAL'S POLICY ALSO PROVIDES FOR CHARITY CARE FOR CERTAIN PATIENTS UNDER UNIQUE CIRCUMSTANCES. THESE CIRCUMSTANCES INCLUDE PATIENTS WHO MAY EXPERIENCE SIGNIFICANT FINANCIAL HARDSHIP OR PERSONAL FINANCIAL LOSS REGARDLESS OF THEIR INCOME, INCLUDING PATIENTS WHO MAY BE CLASSIFIED AS "MEDICALLY INDIGENT". THESE UNIQUE CIRCUMSTANCES ARE REVIEWED BY ADMINISTRATION, PURSUANT TO POLICY. THE GOOD SHEPHERD AUDITED FINANCIAL STATEMENTS PROVIDE THE FOLLOWING DISCLOSURES WITH RESPECT TO CHARITY CARE:"GOOD SHEPHERD PROVIDES A SIGNIFICANT AMOUNT OF CHARITY CARE TO PATIENTS WHO MEET CERTAIN CRITERIA REGARDLESS OF THEIR ABILITY TO PAY. THE CRITERIA FOR CHARITY CONSIDERS FAMILY SIZE, SOURCES OF INCOME, LIVING EXPENSES, NET WORTH, ONGOING HEALTHCARE NEEDS, AS WELL AS OTHER PERTINENT INFORMATION. BECAUSE GOOD SHEPHERD DOES NOT PURSUE COLLECTION OF AMOUNTS DETERMINED TO QUALIFY AS CHARITY CARE, THEY ARE NOT REPORTED AS REVENUES. THE AMOUNT OF CHARITY CARE PROVIDED TO PATIENTS FOR THE YEARS ENDED JUNE 30, 2011 AND 2010, MEASURED AT CHARGES, WAS $1,809,000 AND $1,696,000, RESPECTIVELY. THESE AMOUNTS DO NOT INCLUDE DOUBTFUL ACCOUNTS.""GOOD SHEPHERD WILL BE REQUIRED TO ADOPT AMENDED GUIDANCE RELATING TO HEALTH CARE ENTITIES WHICH REQUIRES THAT DIRECT AND INDIRECT COSTS BE USED AS THE MEASUREMENT FOR CHARITY CARE DISCLOSURE PURPOSES. THE GUIDANCE WAS ALSO AMENDED TO REQUIRE DISCLOSURE OF THE METHOD USED TO IDENTIFY OR DETERMINE SUCH COSTS. THE AMENDED GUIDANCE IS EFFECTIVE FOR FISCAL YEARS BEGINNING AFTER DECEMBER 15, 2010. ADOPTION OF THE AMENDED GUIDANCE WILL REVISE DISCLOSURE IN THE NOTES TO GOOD SHEPHERD'S CONSOLIDATED FINANCIAL STATEMENTS BUT WILL NOT IMPACT AMOUNTS REPORTED IN THE PRIMARY CONSOLIDATED FINANCIAL STATEMENTS."
		PART I, LINE 6A: THE HOSPITAL'S COMMUNITY BENEFIT ACTIVITIES ARE INCLUDED WITHIN AND REPORTED AS PART OF AN ANNUAL REPORT TO THE COMMUNITY, PUBLISHED ON A CONSOLIDATED BASIS BY GOOD SHEPHERD REHABILITATION NETWORK (GSRN). THIS REPORT INCLUDES THE COMMUNITY BENEFIT ACTIVITIES PROVIDED BY GSRN, AS WELL AS BY ITS CONTROLLED ENTITIES (INCLUDING THE HOSPITAL). THIS REPORT IS DISTRIBUTED AND MADE AVAILABLE TO THE PUBLIC IN SEVERAL MANNERS, INCLUDING BEING AVAILABLE ON THE GSRN WEBSITE. A COMMUNITY BENEFIT REPORT IS NOT REQUIRED TO BE FILED WITH THE COMMONWEALTH OF PENNSYLVANIA AND, ACCORDINGLY, GSRN HAS NOT FILED ONE.IN ORDER TO BETTER UNDERSTAND THE ORGANIZATIONAL, FINANCIAL AND OPERATIONAL COMPLEXITIES OF THE ORGANIZATIONS CONTAINED WITHIN GSRN, THE FOLLOWING INFORMATION IS PROVIDED:THE HOSPITAL'S FINANCIAL RESULTS ARE REPORTED AS A COMPONENT OF THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS OF GOOD SHEPHERD REHABILITATION NETWORK AND CONTROLLED ENTITIES (GOOD SHEPHERD). SEPARATE AUDITED FINANCIAL STATEMENTS ARE NOT PREPARED FOR THE HOSPITAL. THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS OF GOOD SHEPHERD INCLUDE THE FOLLOWING CORPORATIONS:-GOOD SHEPHERD REHABILITATION NETWORK (GSRN), THE CONTROLLING PARENT CORPORATION, FORMERLY GOOD SHEPHERD HOME-GOOD SHEPHERD REHABILITATION HOSPITAL (THE HOSPITAL)-GOOD SHEPHERD HOME LONG-TERM CARE FACILITY, INC. (LTC)-GOOD SHEPHERD WORKSHOP/VOCATIONAL SERVICES, INC. (WORK SERVICES)-GOOD SHEPHERD LONG-TERM ACUTE SERVICES, INC., D/B/A GOOD SHEPHERD SPECIALTY HOSPITAL (THE SPECIALTY HOSPITAL)-GOOD SHEPHERD HOUSING DEVELOPMENT CORPORATION (SUPPIL)-GOOD SHEPHERD RECIPROCAL RISK RETENTION GROUP (THE RRG)-GOOD SHEPHERD GROUP, LLC (GS GROUP)GOOD SHEPHERD'S PRIMARY OPERATIONS ARE CONDUCTED WITHIN THE HOSPITAL, WHICH PROVIDES COMPREHENSIVE INPATIENT REHABILITATION SERVICES AND OUTPATIENT REHABILITATION SERVICES AT NUMEROUS LOCATIONS. THE LTC OPERATES TWO SKILLED NURSING FACILITIES WHICH SERVICE THE NEEDS OF SEVERELY DISABLED ADULTS. WORK SERVICES SPECIALIZES IN EMPLOYMENT AND DEVELOPMENT PROGRAMS FOR PERSONS WITH PHYSICAL, EMOTIONAL AND INTELLECTUAL DISABILITIES, HEARING AND SIGHT IMPAIRMENTS AND INDUSTRIAL INJURIES BY PROVIDING SUBCONTRACTING SERVICES. THE SPECIALTY HOSPITAL PROVIDES SERVICES THAT REPRESENT THE FIRST STEP IN THE POST ACUTE CARE PROCESS OF RECOVERY. THE RRG IS A SELF INSURANCE COMPANY THAT PROVIDES PRIMARY LIABILITY INSURANCE AND RISK MANAGEMENT SERVICES. SUPPIL PROVIDES SUPPORTIVE INDEPENDENT HOUSING TO PERSONS WITH DISABILITIES UNDER SECTION 811 OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. GS GROUP WAS ESTABLISHED TO DEVELOP A WHEELCHAIR DEVICE TO ASSIST REHABILITATION PATIENTS.IN ADDITION TO THE ORGANIZATIONS DESCRIBED ABOVE, IN JANUARY 2007, GSRN ENTERED INTO A JOINT VENTURE AGREEMENT WITH THE TRUSTEES OF THE UNIVERSITY OF PENNSYLVANIA (THE UNIVERSITY) TO CREATE PHILADELPHIA POST ACUTE PARTNERS, LLC D/B/A GOOD SHEPHERD PENN PARTNERS (GSPP). GSPP WAS CREATED TO ESTABLISH AND OPERATE A NEW LONG-TERM ACUTE CARE HOSPITAL, TO ASSUME THE OWNERSHIP OF AND CONTINUE TO OPERATE ALL OF THE OUTPATIENT OPERATIONS OF THE UNIVERSITY, TO CARRY OUT THE DAY-TO-DAY OPERATIONS OF THE HOSPITAL OF THE UNIVERSITY OF PENNSYLVANIA'S (HUP'S) INPATIENT REHABILITATION UNIT, AND TO PROVIDE THE UNIVERSITY AND ITS AFFILIATES WITH CERTAIN CLINICAL AND/OR STAFFING SERVICES RELATING TO REHABILITATION. GSRN IS A 70% OWNER OF GSPP; HOWEVER, THE OPERATIONS OF GSPP ARE NOT CONSOLIDATED WITHIN THE CONSOLIDATED FINANCIAL STATEMENTS OF GOOD SHEPHERD AS GSRN IS NOT DEEMED TO HAVE CONTROL OVER GSPP. AS A RESULT, GSRN RECORDS THEIR INVESTMENT IN GSPP UNDER THE EQUITY METHOD OF ACCOUNTING WITHIN THE GSRN CONSOLIDATED FINANCIAL STATEMENTS.
		PART I, LINE 7: THE HOSPITAL USED A COST-TO-CHARGE RATIO IN DETERMINING THE FIGURES REPORTED IN THIS TABLE. THIS COST-TO-CHARGE RATIO WAS DERIVED FROM WORKSHEET 2 RATIO OF PATIENT CARE COST-TO CHARGES.
		PART I, LINE 7G: OF THE NET COMMUNITY BENEFIT EXPENSE OF $1,843,764, REPORTED ON PART I, LINE 7G, COLUMN (E), $882,869 IS RELATED TO THE NET LOSS FROM THE HOSPITAL'S DEVELOPMENT PEDIATRICIAN AND PEDIATRICIAN OPERATING UNIT. THIS OPERATING LOSS INCLUDES THE PROFESSIONAL FEES EARNED BY THESE PHYSICIANS, AS WELL AS THE DIRECT SALARY AND WAGES AND OTHER OPERATING EXPENSES NECESSARY TO GENERATE SUCH PROFESSIONAL FEES. IN ADDITION, $102,566 OF OVERHEAD COSTS WAS ALLOCATED TO THIS OPERATING UNIT, BASED UPON THE SAME RELATIVE NET REVENUE ALLOCATION METHODOLOGY USED IN THE DEVELOPMENT OF INTERNAL FINANCIAL STATEMENTS.
		PART I, L7 COL(F): THE AMOUNT OF BAD DEBT EXPENSE INCLUDED ON FORM 990, PART IX, LINE 25, BUT SUBTRACTED FOR PURPOSES OF CALCULATING THE PERCENTAGE IN THIS COLUMN IS $734,139.
		PART II: WHILE MINIMAL COMMUNITY BUILDING ACTIVITIES ARE PROVIDED DIRECTLY WITHIN THE HOSPITAL CORPORATION, GSRN, THE HOSPITAL'S PARENT COMPANY, PROVIDED $27,925 OF SUCH ACTIVITIES DURING THE 2011 FISCAL YEAR. THESE ACTIVITIES TOOK THE FORM OF EXECUTIVE AND GOVERNMENT AND COMMUNITY RELATIONS BOARD MEMBERSHIPS, PARTICIPATION IN THE PARTNERSHIP FOR A DISABILITY FRIENDLY COMMUNITY, AMRPA BOARD AND UNITED WAY COMMITTEE AND BOARD MEMBERSHIPS AS WELL AS VARIOUS WORKFORCE DEVELOPMENT ACTIVITIES. THESE ACTIVITIES WERE NOT PROVIDED FOR PURPOSES OF MARKETING, TO INCREASE REFERRALS OF PATIENTS WITH THIRD-PARTY INSURANCE COVERAGE, IN FULFILLMENT OF REGULATORY REQUIREMENTS OR CURRENT STANDARDS OF CARE, OR TO BENEFIT PERSONS AFFILIATED WITH GSRN. RATHER, THE PRIMARY PURPOSE OF THESE COMMUNITY BUILDING ACTIVITIES IS TO BENEFIT THE COMMUNITY AND SHOULD BE CONSIDERED AS A COMPONENT OF COMMUNITY BENEFIT. FOR EXAMPLE, PARTICIPATION IN THE PARTNERSHIP FOR A DISABILITY FRIENDLY COMMUNITY DIRECTLY BENEFITS THE DISABILITY COMMUNITY. SPECIFICALLY, THE PARTNERSHIP EDUCATES AND EMPOWERS INDIVIDUALS WITH DISABILITIES AND THEIR CAREGIVERS TO BETTER CARE FOR THEMSELVES AND TO IDENTIFY AND UTILIZE RESOURCES THAT ARE ALREADY AVAILABLE TO THEM WITHIN THE COMMUNITY. WITHOUT SUCH EDUCATION AND EMPOWERMENT, THERE IS A RISK THAT THOSE INDIVIDUALS WITH DISABILITIES EITHER DO NOT RECEIVE THE CARE OR ASSISTANCE THEY REQUIRE, OR THEY OVER-RELY ON THE SERVICES OF THE MEDICAL COMMUNITY FOR EVEN THE MOST BASIC OF NEEDS. THE VALUE OF THE COMMUNITY BUILDING ACTIVITIES PROVIDED DURING THE 2011 FISCAL YEAR WAS DETERMINED BASED UPON ACTUAL REPORTED HOURS VALUED AT THE AVERAGE SALARY AND BENEFIT RATE PER HOUR OF ALL GOOD SHEPHERD EMPLOYEES. CONSERVATIVELY, NO APPLICATION OF INDIRECT OR OVERHEAD COSTS WAS APPLIED TO THESE DIRECT COSTS.ALL GSRN COSTS, INCLUSIVE OF THE COSTS ASSOCIATED WITH COMMUNITY BUILDING ACTIVITIES, ARE ALLOCATED TO GSRN'S SUBSIDIARY CORPORATIONS BASED UPON A COMPREHENSIVE ALLOCATION METHODOLOGY WHICH CONSIDERS DEPARTMENTAL RESOURCE UTILIZATION AND RELATIVE NET PATIENT SERVICE REVENUE, AMONG OTHER FACTORS.
		PART III, LINE 4: THE FOLLOWING IS THE TEXT OF THE FOOTNOTE TO GOOD SHEPHERD'S AUDITED FINANCIAL STATEMENTS (WHICH CONTAIN THE ACCOUNTS OF THE HOSPITAL) THAT DESCRIBES BAD DEBT EXPENSE:"ACCOUNTS RECEIVABLE, PATIENTS ARE REPORTED AT NET REALIZABLE VALUE. ACCOUNTS ARE WRITTEN-OFF WHEN THEY ARE DETERMINED TO BE UNCOLLECTIBLE BASED UPON MANAGEMENT'S ASSESSMENTS OF INDIVIDUAL ACCOUNTS. THE ALLOWANCE FOR DOUBTFUL COLLECTIONS IS ESTIMATED BASED UPON A PERIODIC REVIEW OF THE ACCOUNTS RECEIVABLE AGING, PAYOR CLASSIFICATIONS, AND APPLICATION OF HISTORICAL WRITE-OFF PERCENTAGES."BAD DEBT EXPENSE IS REPORTED IN THE AUDITED FINANCIAL STATEMENT AND IS ACCOUNTED FOR IN ACCORDANCE WITH HEALTHCARE FINANCIAL MANAGEMENT ASSOCIATION STATEMENT NUMBER 15. IN THIS CONNECTION, THE AMOUNT RECORDED AS BAD DEBT EXPENSE IS COMPRISED OF A COMBINATION OF ACTUAL BAD DEBT WRITE-OFFS AND RECOVERIES, AS WELL AS AN AMOUNT DERIVED BY APPLYING ESTIMATED HISTORICAL BAD DEBT WRITE-OFF PERCENTAGES AGAINST AGED ACCOUNTS RECEIVABLE BALANCES. FOR PURPOSES OF PART III, SECTION A, LINE 2, TOTAL BAD DEBT EXPENSE (AT COST) WAS DETERMINED BY APPLYING THE COST-TO-CHARGE RATIO, DERIVED FROM WORKSHEET 2 RATIO OF PATIENT CARE COST-TO CHARGES TO TOTAL THE NET OF ACTUAL BAD DEBT WRITE-OFF'S AND RECOVERIES PROCESSED DURING THE 2011 FISCAL YEAR. FOR PURPOSES OF PART III, SECTION A, LINE 3, THE FOLLOWING PROCESS WAS USED TO ESTIMATE THE AMOUNT OF THE HOSPITAL'S BAD DEBT EXPENSE (AT COST) ATTRIBUTABLE TO PATIENTS ELIGIBLE UNDER THE HOSPITAL'S CHARITY CARE POLICY:TOTAL BAD DEBT EXPENSE (AT COST), PER PART III, SECTION A, LINE 2, WAS USED AS A STARTING POINT. THEN, THE ESTIMATED POVERTY PERCENTAGE (10%), OF THE HOSPITAL'S 5-COUNTY PRIMARY SERVICE AREA, WAS DETERMINED BASED UPON THE EXAMINATION OF COMMONWEALTH OF PENNSYLVANIA REPORTS, GENERATED FROM THE MOST RECENTLY-PUBLISHED US CENSUS DATA.
		PART III, LINE 8: THE COSTING METHODOLOGY UTILIZED IN THE DETERMINATION OF THE MEDICARE ALLOWABLE COSTS REPORTED IN THE HOSPITAL'S COST REPORT IS QUITE COMPREHENSIVE. DIRECTLY ALLOCATED COSTS ARE USED AS A STARTING POINT AND OTHER COSTS ARE STEPPED-DOWN TO THE HOSPITAL BASED UPON INDUSTRY-ACCEPTABLE ALLOCATION METHODOLOGIES. THE HOSPITAL HAS REPORTED A MEDICARE SHORTFALL OF ($253,023) IN PART III, SECTION B (MEDICARE), LINE 7. THIS SHORTFALL SHOULD BE CONSIDERED AS A COMPONENT OF COMMUNITY BENEFIT BECAUSE THE HOSPITAL TREATS ALL MEDICALLY NECESSARY PATIENTS, REGARDLESS OF THEIR ABILITY TO PAY AND REGARDLESS OF WHETHER THE EXPECTED REIMBURSEMENT IS ADEQUATE TO COVER ALL RELATED AND NECESSARY EXPENSES.
		PART III, LINE 9B: THE HOSPITAL HAS A WRITTEN BILLING AND COLLECTION POLICY AND SUCH POLICY COVERS THE PROCEDURES NECESSARY TO BILL AND COLLECT FOR THE MEDICAL SERVICES PROVIDED TO PATIENTS. PATIENTS KNOWN TO QUALIFY FOR FINANCIAL ASSISTANCE UNDER THE HOSPITAL'S CHARITY CARE POLICY (AS EVIDENCED BY A PROPERLY COMPLETED AND APPROVED CHARITY CARE APPLICATION) ARE NOT SUBJECT TO THE COLLECTION PROVISIONS OF THIS POLICY. RATHER, THEIR ACCOUNT BALANCES ARE WRITTEN-OFF FROM THE PATIENT ACCOUNTING RECORDS AS CHARITY CARE.
		PART VI, LINE 2: GOOD SHEPHERD PERIODICALLY ASSESSES THE NEEDS OF THE COMMUNITIES IT SERVES IN DIFFERENT WAYS. THE MOST RECENT COMPREHENSIVE ASSESSMENT WAS PREPARED IN THE FORM OF A RESEARCH PROJECT COMMISSIONED AND FUNDED BY GOOD SHEPHERD AND CONDUCTED BY THE LEHIGH VALLEY RESEARCH CONSORTIUM (LVRC), AN AFFILIATE OF THE LEHIGH VALLEY ASSOCIATION OF INDEPENDENT COLLEGES AND UNIVERSITIES (LVAIC). THIS RESEARCH PROJECT WAS CONDUCTED OVER THE 18-MONTH PERIOD ENDED OCTOBER 2009 AND CULMINATED IN THE PREPARATION OF A 139-PAGE REPORT, ENTITLED THE LEHIGH VALLEY DISABILITY COMMUNITY: A SURVEY OF NEEDS AND OPPORTUNITIES, AND PUBLISHED AS OF DECEMBER 3, 2009. THIS REPORT WILL HEREINAFTER BE REFERRED TO AS "THE RESEARCH PROJECT." THE RESEARCH PROJECT WAS CONDUCTED AS A SERVICE TO THE COMMUNITIES GOOD SHEPHERD SERVES AND IN THE INTEREST OF GATHERING INFORMATION THAT CAN ASSIST THE LEHIGH VALLEY IN BECOMING MORE ACCESSIBLE AND INCLUSIVE OF PEOPLE WITH DISABILITIES. FOR PURPOSES OF THE RESEARCH PROJECT, "LEHIGH VALLEY" WAS DEFINED AS LEHIGH COUNTY AND NORTHAMPTON COUNTY. THIS DEFINITION WAS A BIT NARROWER IN SCOPE THAN THE HOSPITAL'S PRIMARY SERVICE AREA AS DEFINED IN PART VI (SUPPLEMENTAL INFORMATION), LINE 4.GOOD SHEPHERD'S AIM IN SUPPORTING THE STUDY WAS TO PROVIDE A FOUNDATION FOR LONG-TERM EFFORTS TO BUILD A MORE DISABILITY FRIENDLY COMMUNITY IN PARTNERSHIP WITH COMMUNITY ORGANIZATIONS, CIVIC AND BUSINESS LEADERS, AND CITIZENS. THE GOALS OF THE RESEARCH PROJECT INCLUDED EMPOWERING PEOPLE WITH DISABILITIES AND THEIR ADVOCATES TO RECOGNIZE THE LEHIGH VALLEY'S RICH RESOURCES AND ACHIEVEMENTS, WHILE ADVANCING POSITIVE CHANGE FOR OUR COMMUNITIES. SPECIFICALLY, THE RESEARCH PROJECT ADDRESSED THE FOLLOWING THREE QUESTIONS:1. WHAT ARE THE GREATEST UNMET NEEDS TO LIVING FULLY AND FREELY IN THE LEHIGH VALLEY FOR PERSONS WITH DISABILITIES TODAY?2. WHAT ARE THE GREATEST CONCERNS AMONG COMMUNITY ORGANIZATIONS AND LEADERS WHO SERVE, WORK WITH, AND ADVOCATE FOR PERSONS WITH DISABILITIES AND THEIR CAREGIVERS?3. WHAT ARE THE WELL-ESTABLISHED BEST PRACTICES THAT MAY BE USED AS POTENTIAL SOLUTIONS TO ADDRESS UNMET NEEDS OF PERSONS WITH DISABILITIES LIVING IN THE LEHIGH VALLEY?ON DECEMBER 3, 2009, A PUBLIC FORUM WAS HELD AT NORTHAMPTON COMMUNITY COLLEGE TO SHARE THE FINDINGS FROM THE RESEARCH PROJECT ON THE UNMET NEEDS OF PERSONS WITH DISABILITIES WHO LIVE IN LEHIGH AND NORTHAMPTON COUNTIES. AT THE FORUM, ATTENDEES WERE PROVIDED WITH PRINTED COPIES OF THE EXECUTIVE SUMMARY, CONTAINED WITHIN THE RESEARCH PROJECT AS WELL AS A LINK TO THE LVRC'S WEBSITE, WHERE THE COMPLETE REPORT IS AVAILABLE. THE COMPLETE REPORT IS STILL AVAILABLE ON THE LVRC'S WEBSITE. INFORMATION REGARDING THE RESEARCH PROJECT APPEARS ON GOOD SHEPHERD'S WEBSITE AND HAS ALSO BEEN DESCRIBED AND DISCUSSED THROUGH VARIOUS TELEVISION SPOTS AND PRINT MEDIA.IN THE TWO-YEAR PERIOD SINCE THE COMMUNITY FORUM FOR THE RESEARCH PROJECT WAS HELD, GOOD SHEPHERD HAS USED THE FINDINGS FROM THE NEEDS ASSESSMENT TO LAUNCH A COMMUNITY NETWORK OF PERSONS WITH DISABILITIES, CARE GIVERS, FAMILY MEMBERS, SERVICE PROVIDERS, BUSINESS, RELIGIOUS, EDUCATIONAL AND CIVIC LEADERS, FUNDING SOURCE REPRESENTATIVES AND MANY OTHERS WORKING COLLABORATIVELY TO MAKE THE LEHIGH VALLEY REGION OF EASTERN PENNSYLVANIA MORE DISABILITY-FRIENDLY. THIS NETWORK IS DESIGNED AS A SELF-GOVERNING COMMUNITY COLLABORATIVE THAT OPERATES ON - AND MOST DEFINITELY BENEFITS FROM - THE TALENTS, RESOURCES, GOODWILL AND ENERGIES CONTRIBUTED BY ITS MEMBERS. HOWEVER, GOOD SHEPHERD PROVIDES ALL ADMINISTRATIVE AND CLERICAL SUPPORT FOR MEETINGS OF THE NETWORK AND ITS STEERING COMMITTEE. THE NETWORK DOES NOT REPLACE NOR COMPETE WITH EXISTING DISABILITY SPECIFIC AGENCIES OR PROGRAMS SERVING PERSONS WITH DISABILITIES AND THEIR FAMILIES OR OTHER CAREGIVERS IN OUR REGION. RATHER, THE NETWORK PROVIDES THE ARENA FOR ALL ADVOCATES TO COME TOGETHER FOR INFORMATION-SHARING, COLLABORATION, AND ACTION AROUND ISSUES OF TRANSPORTATION, EMPLOYMENT, HOUSING, EDUCATION AND IMPROVING COMMUNITY PERCEPTIONS AND ATTITUDES ABOUT PERSONS WITH DISABILITIES.IN LATE 2010, GOOD SHEPHERD BEGAN PLANNING FOR ITS NEXT COMMUNITY HEALTH NEEDS ASSESSMENT - THIS TIME IN COLLABORATION WITH EACH OF THE FOUR NOT-FOR-PROFIT HOSPITALS THAT SERVE THE LEHIGH VALLEY REGION (LEHIGH AND NORTHAMPTON COUNTIES) OF EASTERN PENNSYLVANIA. AS A MEMBER OF THE LEHIGH VALLEY HEALTH CARE COUNCIL (LVHCC), COMPRISED OF REPRESENTATIVES FROM THE VALLEY'S NOT-FOR-PROFIT HOSPITALS, GOOD SHEPHERD IS PART OF A JOINT EFFORT DESIGNED TO IMPROVE CLINICAL DECISION-MAKING AND SPECIFIC HEALTH ISSUES AFFECTING PEOPLE IN THE LEHIGH VALLEY. THE ULTIMATE GOAL OF THE WORK OF THE LVHCC WILL BE TO DEVELOP AND IMPLEMENT COMMUNITY-WIDE STRATEGIES, BEGINNING IN FY 2014, THAT WILL PLACE AN EMPHASIS ON PREVENTION ACTIVITIES AND REDUCING HEALTH DISPARITIES IN THE REGION.THE LVHCC IS GATHERING PRIMARY AND SECONDARY QUALITATIVE AND QUANTITATIVE DATA SETS AND SHARING HEALTH SYSTEM-SPECIFIC DATA TO FORM THE FOUNDATION FOR A COMMUNITY HEALTH NEEDS ASSESSMENT THAT WILL COMPLY WITH THE REQUIREMENTS OF SECTION 9007 OF THE PATIENT PROTECTION AND AFFORDABLE CARE ACT (PPACA) OF 2010. THE LVHCC EXPECTS TO COMPLETE DATA GATHERING AND BEGIN A PROCESS OF SHARING PRELIMINARY FINDINGS WITH OTHER COMMUNITY HEALTH STAKEHOLDERS AND PROVIDERS BY JUNE 2012. THESE STAKEHOLDERS WILL INCLUDE REPRESENTATIVES FROM GOVERNMENT, SCHOOL DISTRICTS, HUMAN AND SOCIAL SERVICE AGENCIES, BUSINESS, CIVIC AND RELIGIOUS SECTORS AND HIGHER EDUCATION. THEIR PARTICIPATION IN THE PROCESS WILL BE CRITICAL TO SUCCESSFULLY DEVELOP AND FULLY IMPLEMENT ANY COMMUNITY HEALTH STRATEGIES CREATED AND ADOPTED BY THE MEMBER HOSPITALS OF THE LVHCC.
		PART VI, LINE 3: 1. GOOD SHEPHERD'S MISSION IS AS FOLLOWS:"MOTIVATED BY THE DIVINE GOOD SHEPHERD AND THE PHYSICAL AND COGNITIVE REHABILITATION NEEDS OF OUR COMMUNITIES, OUR MISSION IS TO ENHANCE LIVES, MAXIMIZE FUNCTION, INSPIRE HOPE AND PROMOTE DIGNITY AND WELL-BEING WITH EXPERTISE AND COMPASSION."GOOD SHEPHERD VIGOROUSLY PURSUES THEIR MISSION REGARDLESS OF A PATIENT'S ABILITY TO PAY.2. IN EACH INPATIENT ROOM, GOOD SHEPHERD PROVIDES A REFERENCE BINDER OF IMPORTANT INFORMATION TO ALL INPATIENTS. THIS BINDER SUPPLEMENTS THE PATIENT'S ADMISSIONS PACKAGE AND INCLUDES A NOTICE OF FINANCIAL AID WHICH INCLUDES THE FOLLOWING WORDING:"IF YOU HAVE LITTLE OR NO HEALTH INSURANCE TO PAY FOR THE SERVICES YOU RECEIVE FROM GOOD SHEPHERD AND WORRY THAT YOU MAY NOT BE ABLE TO PAY FOR PART OR ALL OF YOUR CARE, WE MAY BE ABLE TO HELP. GOOD SHEPHERD PROVIDES CHARITY CARE TO PATIENTS BASED ON THEIR INCOME, ASSETS AND FINANCIAL NEEDS. IN ADDITION, IF YOU DO NOT MEET THE CRITERIA TO BE ELIGIBLE FOR CHARITY CARE, WE WILL HELP YOU ARRANGE FOR AN INTEREST-FREE PAYMENT PLAN TO RESOLVE ANY BALANCES YOU OWE."3. CHARITY CARE INFORMATION IS AVAILABLE ON THE GOOD SHEPHERD WEBSITE. IN PARTICULAR, PATIENTS MAY ACCESS A COPY OF THE NOTICE OF FINANCIAL AID AND A CHARITY CARE APPLICATION.4. GOOD SHEPHERD PUBLISHES AND DISTRIBUTES A NOTICE OF PAYMENT RESPONSIBILITY TO ALL PATIENTS. THE FIRST PARAGRAPH OF THIS FORM STATES THE FOLLOWING:"GOOD SHEPHERD IS A NON-PROFIT CHARITABLE ORGANIZATION THAT PROVIDES HEALTHCARE SERVICES TO ALL MEDICALLY APPROPRIATE PATIENTS WHO SEEK CARE REGARDLESS OF THEIR FUNDS TO PAY FOR SERVICES. THIS INCLUDES THE UNINSURED AND THE UNDER INSURED."THE NOTICE GOES ON TO STATE:"IT HAS BEEN BROUGHT TO OUR ATTENTION THAT YOU POTENTIALLY LACK THE FINANCIAL RESOURCES TO PAY FOR YOUR MEDICAL CARE. YOUR ADMISSION TO GOOD SHEPHERD IS CONTINGENT UPON YOUR ASSISTANCE IN HELPING US SECURE PAYMENT OF YOUR MEDICAL BILL FOR THE CARE BEING PROVIDED TO YOU. TO ADDRESS THE PAYMENT OF YOUR BILL, WE ARE REQUESTING THAT YOU APPLY FOR MEDICAL ASSISTANCE BENEFITS THROUGH THE PENNSYLVANIA MEDICAID PROGRAM AND APPLY FOR GOOD SHEPHERD'S CHARITY CARE PROGRAM."5. EACH PATIENT BILL OR STATEMENT INCLUDES THE FOLLOWING STATEMENT:"GOOD SHEPHERD REHABILITATION HOSPITAL IS A NON-PROFIT ORGANIZATION AND OFFERS CHARITY CARE TO THOSE WHO QUALIFY. IF YOU DO NOT HAVE THE FUNDS TO PAY, PLEASE CONTACT US." 6. TRANSLATION SERVICES ARE AVAILABLE TO ANY NON-ENGLISH-SPEAKING PATIENT. THESE SERVICES ALSO INCLUDE ASSISTANCE WITH CHARITY CARE ELIGIBILITY AND OTHER FINANCIAL MATTERS. 7. AS PART OF INTERNAL DEPARTMENTAL ORIENTATION AND TRAINING, ADMISSIONS, CARE MANAGEMENT AND PATIENT ACCOUNTING PERSONNEL ARE TRAINED IN GOOD SHEPHERD'S CHARITY CARE POLICIES AND PROCEDURES.
		PART VI, LINE 4: BASED UPON HEALTH CARE COST CONTAINMENT COUNCIL DATA FOR THE 2010 CALENDAR YEAR, THE HOSPITAL'S PRIMARY SERVICE AREA IS COMPRISED OF THE FOLLOWING FIVE PENNSYLVANIA COUNTIES. IN ADDITION, THE HOSPITAL'S MARKET SHARE PERCENTAGE IS INDICATED FOR EACH COUNTY WITHIN ITS PRIMARY SERVICE AREA.-CARBON COUNTY 15%-LEHIGH COUNTY 72%-NORTHAMPTON COUNTY 45%-MONROE COUNTY 66%-BERKS COUNTY 2%LEHIGH, NORTHAMPTON AND BERKS COUNTIES ARE A MIX OF URBAN, SUBURBAN AND RURAL COMMUNITIES WHILE CARBON AND MONROE COUNTIES ARE PRIMARILY RURAL. THE FOLLOWING HOSPITALS ARE LOCATED WITHIN EACH OF THESE COUNTIES:CARBON COUNTY-TWO (2) NOT-FOR-PROFIT ACUTE CARE HOSPITALSLEHIGH COUNTY-SEVEN (7) ACUTE CARE HOSPITALS - SIX (6) NOT-FOR-PROFIT, ONE (1) FOR-PROFIT-ONE (1) NOT-FOR-PROFIT INPATIENT REHABILITATION HOSPITAL (THE HOSPITAL)-ONE (1) NOT-FOR-PROFIT LONG-TERM ACUTE CARE HOSPITAL (THE SPECIALTY HOSPITAL)NORTHAMPTON COUNTY -ONE (1) FOR-PROFIT ACUTE CARE HOSPITAL-ONE (1) FOR-PROFIT LONG-TERM ACUTE CARE HOSPITALMONROE COUNTY-ONE (1) NOT-FOR-PROFIT ACUTE CARE HOSPITALBERKS COUNTY-TWO (2) NOT-FOR-PROFIT ACUTE CARE HOSPITALS-ONE (1) FOR-PROFIT INPATIENT REHABILITATION HOSPITALTHESE COUNTIES HAVE THE FOLLOWING DEMOGRAPHICS AND CHARACTERISTICS:1. AVERAGE INCOME LEVEL AND POVERTY RATES (MEDIAN 2008 HOUSEHOLD INCOMES AND POPULATION PERCENTAGE BELOW THE POVERTY LEVEL)CARBON COUNTY $47,744 AND 10.5%LEHIGH COUNTY $53,541 AND 11.9% NORTHAMPTON COUNTY $58,762 AND 8.8%MONROE COUNTY $56,733 AND 10.4%BERKS COUNTY $53,470 AND 12.4%2. RATES OF UNINSURED OR UNDERINSURED PERSONSCARBON COUNTY 6,104 INDIVIDUALS OR 9.6% OF THE COUNTY POPULATIONLEHIGH COUNTY 33,990 INDIVIDUALS OR 9.9% OF COUNTY POPULATIONNORTHAMPTON COUNTY 28,185 INDIVIDUALS OR 9.4% OF THE COUNTY POPULATIONMONROE COUNTY 17,628 INDIVIDUALS OR 10.6% OF THE COUNTY POPULATIONBERKS COUNTY 41,909 INDIVIDUALS OR 10.3% OF THE COUNTY POPULATION3. PERCENT OF FAMILIES WHO ARE ON MEDICAID OR OTHER ASSISTANCE CARBON COUNTY DEC 2010 PERCENTAGE ENROLLED IN MEDICAID - 15.3%LEHIGH COUNTY DEC 2010 PERCENTAGE ENROLLED IN MEDICAID - 18.4%NORTHAMPTON COUNTY DEC 2010 PERCENTAGE ENROLLED IN MEDICAID - 13.2%MONROE COUNTY DEC 2010 PERCENTAGE ENROLLED IN MEDICAID - 16.9%BERKS COUNTY DEC 2010 PERCENTAGE ENROLLED IN MEDICAID - 18.7%4. POPULATION AGE BREAKDOWN (PENNSYLVANIA POPULATION > AGE 65 IS 15.4%)CARBON COUNTY POPULATION > AGE 65 - 17.8%LEHIGH COUNTY POPULATION > AGE 65 - 14.8%NORTHAMPTON COUNTY POPULATION > AGE 65 - 15.7%MONROE COUNTY POPULATION > AGE 65 - 12.8%BERKS COUNTY POPULATION > AGE 65 - 14.5%5. PERCENTAGES OF NON-ENGLISH-SPEAKING POPULATIONSCARBON COUNTY 737 INDIVIDUALS OR 1.2% NOT PROFICIENT IN ENGLISHLEHIGH COUNTY 25,047 INDIVIDUALS OR 7.8% NOT PROFICIENT IN ENGLISHNORTHAMPTON COUNTY 10,949 INDIVIDUALS OR 3.9% NOT PROFICIENT IN ENGLISHMONROE COUNTY 6,739 INDIVIDUALS OR 4.2% NOT PROFICIENT IN ENGLISHBERKS COUNTY 24,109 INDIVIDUALS OR 6.3% NOT PROFICIENT IN ENGLISH6. AREAS DESIGNATED AS FEDERALLY MEDICALLY UNDERSERVED AREAS OR POPULATIONSCARBON COUNTY: COALDALE AND THE BOROUGHS OF: LANSFORD, NESQUEHONING AND SUMMIT HILLLEHIGH COUNTY: ALLENTOWN SERVICE AREA - CT 0004.00 AND CT 0005.00NORTHAMPTON COUNTY: EASTON SERVICE AREA - CT: 143-147 AND SOUTH BETHLEHEM SERVICE AREA - CT: 109-113MONROE COUNTY: LOW INCOME STROUDSBURG BOROUGH - MCD (74888) BERKS COUNTY :CITY OF READING SERVICE AREAS - CT: 1, 2, 10, 11, 13, 14, 17, 19, 21, 22, 23 AND 257. SPECIAL POPULATIONS WITHIN THE AREA SERVED, INCLUDING ETHNIC AND CULTURAL GROUPSCARBON COUNTY BACHELOR'S DEGREE OR HIGHER, PCT OF PERSONS AGE 25+ 14.6% VS. 26.4% IN PALEHIGH COUNTY HISPANIC OR LATINO POPULATION - 18.8% VS. 5.7% IN PANORTHAMPTON COUNTY HISPANIC OR LATINO POPULATION - 10.5% VS. 5.7% IN PAMONROE COUNTY HISPANIC OR LATINO POPULATION - 13.1% VS. 5.7% IN PABERKS COUNTY HISPANIC OR LATINO POPULATION - 16.4% VS. 5.7% IN PA
		PART VI, LINE 6: WITH RESPECT TO HOW THE HOSPITAL FURTHERS ITS EXEMPT PURPOSE BY PROMOTING THE HEALTH OF THE COMMUNITY, THE FOLLOWING INFORMATION IS PROVIDED:- THE GSRN BOARD OF TRUSTEES GOVERNS ALL OF THE ENTITIES DESCRIBED IN PART I, LINE 6A (INCLUDING THE HOSPITAL). THE GSRN BOARD OF TRUSTEE MEMBERS (BOARD MEMBERS) ALL LIVE IN THE HOSPITAL'S PRIMARY SERVICE AREA AS DEFINED IN PART VI (SUPPLEMENTAL INFORMATION), LINE 4. THE VAST MAJORITY OF THE BOARD MEMBERS ARE NOT EMPLOYEES OR CONTRACTORS OF THE HOSPITAL. NONE OF THE BOARD MEMBERS ARE FAMILY MEMBERS.- THE HOSPITAL EXTENDS MEDICAL STAFF PRIVILEGES TO ALL QUALIFIED PHYSICIANS IN ITS PRIMARY SERVICE AREA. ALL APPLICANTS ARE APPROVED BY THE HOSPITAL'S MEDICAL EXECUTIVE COMMITTEE.- THE HOSPITAL PARTICIPATES IN THE MEDICARE, MEDICAID, CHAMPUS, TRICARE, OVR AND OTHER GOVERNMENT SPONSORED HEALTHCARE PROGRAMS.- THE HOSPITAL OPERATES IN A PRIMARY SERVICE AREA, WHICH INCLUDES ONLY ONE OTHER FREE-STANDING INPATIENT REHABILITATION HOSPITAL (A FOR-PROFIT FACILITY). HOWEVER, CERTAIN OF THE ACUTE CARE HOSPITALS WITHIN THE HOSPITAL'S PRIMARY SERVICE AREA OPERATE SMALLER REHABILITATION UNITS UNDER THEIR ACUTE CARE LICENSE. - TO THE EXTENT THE HOSPITAL GENERATES SURPLUS OPERATING MARGINS AND/OR FREE CASH FLOW, THE AMOUNTS ARE COMPLETELY REINVESTED WITHIN THE HOSPITAL AND/OR THE OTHER AFFILIATED CORPORATIONS UNDER THE CONTROL OF GOOD SHEPHERD REHABILITATION NETWORK (GSRN). SUCH REINVESTMENT CAN TAKE THE FORM OF INFRASTRUCTURE IMPROVEMENTS, INVESTMENTS IN MEDICAL EQUIPMENT AND TECHNOLOGY, OR OTHER INVESTMENTS INTENDED TO ENHANCE PATIENT SATISFACTION, IMPROVE THE QUALITY OF CARE, CONFORM WITH SAFETY CODES OR REGULATIONS, ETC.- THE HOSPITAL AND OTHER AFFILIATED CORPORATIONS UNDER THE CONTROL OF GOOD SHEPHERD REHABILITATION NETWORK (GSRN) ARE INVOLVED IN HEALTH PROFESSIONS EDUCATION, PARTICULARLY FOR NURSING AND THERAPY.
		PART VI, LINE 7: WITHIN THE GOOD SHEPHERD REHABILITATION NETWORK AND CONTROLLED ENTITIES (GOOD SHEPHERD), THE GOOD SHEPHERD LONG-TERM ACUTE SERVICES, INC., D/B/A GOOD SHEPHERD SPECIALTY HOSPITAL (THE SPECIALTY HOSPITAL), PROVIDES "CHARITY CARE AND CERTAIN OTHER COMMUNITY BENEFITS AT COST" AS REPORTED ON THEIR SCHEDULE H TO FORM 990. THESE AMOUNTS AGGREGATE $107,933 OR APPROXIMATELY 1% OF THE SPECIALTY HOSPITAL'S EXPENSES. THROUGH ITS GOOD SHEPHERD WORKSHOP/VOCATIONAL SERVICES, INC. (WORK SERVICES) SUBSIDIARY, GOOD SHEPHERD REHABILITATION NETWORK AND CONTROLLED ENTITIES (GOOD SHEPHERD), PROVIDES EMPLOYMENT AND DEVELOPMENT PROGRAMS FOR PERSONS WITH PHYSICAL, EMOTIONAL AND INTELLECTUAL DISABILITIES, HEARING AND SIGHT IMPAIRMENTS AND INDUSTRIAL INJURIES BY PROVIDING SUBCONTRACTING SERVICES. THESE PROGRAMS ARE OPERATED AT A LOSS, WHICH TOTALED $638,623 FOR THE FISCAL YEAR ENDED JUNE 30, 2011, AND WHICH WAS FUNDED BY GOOD SHEPHERD. THE LOSS WAS DETERMINED BY REDUCING REVENUES GENERATED BY THE WORK SERVICES PROGRAMS BY DIRECTLY ASSIGNED EXPENSES AND ALLOCATED CORPORATE OVERHEAD COSTS (WHICH WERE ALLOCATED ON THE BASIS OF RELATIVE OPERATING UNIT REVENUE).THROUGH ITS GOOD SHEPHERD HOUSING DEVELOPMENT CORPORATION (SUPPIL) SUBSIDIARY, GOOD SHEPHERD REHABILITATION NETWORK AND CONTROLLED ENTITIES (GOOD SHEPHERD), PROVIDES SUPPORTIVE INDEPENDENT HOUSING TO PERSONS WITH DISABILITIES UNDER SECTION 811 OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. THESE SERVICES WERE OPERATED AT A LOSS, WHICH TOTALED $227,266 FOR THE FISCAL YEAR ENDED JUNE 30, 2011, AND WHICH WAS FUNDED BY GOOD SHEPHERD. THE LOSS WAS DETERMINED AFTER REDUCING SUPPIL RENTAL REVENUE AND OTHER INCOME BY THE DIRECTLY ASSIGNED EXPENSES INCURRED TO OPERATE THE PROGRAM.GSRN IS A 70% OWNER OF GSPP; HOWEVER, THE OPERATIONS OF GSPP ARE NOT CONSOLIDATED WITHIN THE CONSOLIDATED FINANCIAL STATEMENTS OF GOOD SHEPHERD AS GSRN IS NOT DEEMED TO HAVE CONTROL OVER GSPP. AS A RESULT, GSRN RECORDS THEIR INVESTMENT IN GSPP UNDER THE EQUITY METHOD OF ACCOUNTING WITHIN THE GSRN CONSOLIDATED FINANCIAL STATEMENTS. THROUGH ITS OWNERSHIP IN THE GSPP UNCONSOLIDATED AFFILIATE, GSRN PROVIDES THE FOLLOWING COMMUNITY BENEFITS, WHICH TOTAL TO $3,219,000:FINANCIAL ASSISTANCE AT COST $ 215,000UNREIMBURSED MEDICAID 2,059,000COMMUNITY HEALTH IMPROVEMENT SERVICES 4,000HEALTH PROFESSIONS EDUCATION 828,000RESEARCH 82,000COMMUNITY BUILDING ACTIVITIES 31,000 TOTAL $3,219,000THESE AMOUNTS ARE REPORTED ABOVE AT THEIR FULL COST ALTHOUGH GOOD SHEPHERD HAS A 70% OWNERSHIP INTEREST IN GSPP.
	PART VI, LINE 7	NONE

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

THE GOOD SHEPHERD REHABILITATION HOSPITAL

Employer identification number

23-1371947

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....

Yes

Did the organization require substantiation prior to reimbursing or allowing expenses incurred by all
officers, directors, trustees, and the CEO/Executive Director, regarding the items checked in line 1a? ....

Yes

Indicate which, if any, of the following the organization uses to establish the compensation of the
organization's CEO/Executive Director. Check all that apply.

Compensation committee Written employment contract

Independent compensation consultant Compensation survey or study

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

During the year, did any person listed in Form 990, Part VII, Section A, line 1a with respect to the filing organization or a related organization:

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

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

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

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

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

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

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

Yes

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

Yes

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

Yes

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

Yes

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) SARA T GAMMON	(i) (ii)	0 501,846	0 0	0 0	0 175,460	0 16,726	0 694,032	0 0
(2) DANIEL C CONFALONE	(i) (ii)	0 280,650	0 0	0 0	0 19,726	0 15,585	0 315,961	0 0
(3) PHILLIP R BRYANT	(i) (ii)	0 341,079	0 0	0 0	0 23,974	0 23,017	0 388,070	0 0
(4) ANTHONY R BONGIOVANNI	(i) (ii)	0 217,963	0 0	0 0	0 69,226	0 26,971	0 314,160	0 0
(5) SAMUEL A MIRANDA JR	(i) (ii)	0 205,303	0 0	0 0	0 45,612	0 31,759	0 282,674	0 0
(6) ROSAURO A DALOPE	(i) (ii)	212,217 0	12,000 0	0 0	15,760 0	1,246 0	241,223 0	0 0
(7) DANIEL Q YEAGER	(i) (ii)	184,757 0	900 0	0 0	13,050 0	4,617 0	203,324 0	0 0
(8) CHIRAG J KOLALA	(i) (ii)	177,853 0	6,000 0	0 0	12,923 0	4,489 0	201,265 0	0 0
(9) JAMES J DALEY	(i) (ii)	171,263 0	0 0	0 0	12,038 0	10,409 0	193,710 0	0 0
(10) YASMEEN I BHATTI	(i) (ii)	162,749 0	450 0	0 0	11,471 0	10,462 0	185,132 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
	PART I, LINE 1A	GOOD SHEPHERD DOES NOT PAY ANY DUES ON BEHALF OF CEO, SARA GAMMON, DIRECTLY TO A SOCIAL CLUB. GOOD SHEPHERD REIMBURSES THE CEO FOR CERTAIN SOCIAL CLUB DUES RELEVANT IN PURSUING THE OVERALL MISSION OF GOOD SHEPHERD. THESE EXPENSES ARE ACCOUNTED FOR UNDER AN ACCOUNTABLE REIMBURSEMENT PLAN. THE AMOUNT OF THIS REIMBURSEMENT IS INCLUDED IN MS. GAMMON'S TAXABLE COMPENSATION.
	PART I, LINE 5	GSRN HAS A PERFORMANCE COMPENSATION PROGRAM IN PLACE WHICH IS APPROVED BY THE BOARD. CERTAIN MEMBERS OF MANAGEMENT CAN RECEIVE AN ANNUAL PERFORMANCE PAYMENT ONLY WHEN PRE-DEFINED AND PRE-APPROVED FINANCIAL AND NON-FINANCIAL GOALS ARE ACHIEVED. FOR FISCAL YEAR 2011, A PERFORMANCE PAYMENT WAS ACHIEVED. THIS IS NOT GUARANTEED EACH YEAR.
	PART I, LINE 6	GSRN HAS A PERFORMANCE COMPENSATION PROGRAM IN PLACE WHICH IS APPROVED BY THE BOARD. CERTAIN MEMBERS OF MANAGEMENT CAN RECEIVE AN ANNUAL PERFORMANCE PAYMENT ONLY WHEN PRE-DEFINED AND PRE-APPROVED FINANCIAL AND NON-FINANCIAL GOALS ARE ACHIEVED. FOR FISCAL YEAR 2011, A PERFORMANCE PAYMENT WAS ACHIEVED. THIS IS NOT GUARANTEED EACH YEAR.
SUPPLEMENTAL INFORMATION	PART III	PART I, LINE 3: SARA T. GAMMON WAS PAID BY THE GOOD SHEPHERD REHABILITATION NETWORK ("GSRN"), AN AFFILIATED TAX-EXEMPT ORGANIZATION. THE GOOD SHEPHERD REHABILITATION HOSPITAL RELIED ON GSRN'S USE OF THE DESCRIBED METHODS TO ESTABLISH MS. GAMMON'S COMPENSATION.

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

THE GOOD SHEPHERD REHABILITATION HOSPITAL

Employer identification number

23-1371947

Identifier	Return Reference	Explanation
	FORM 990, PART V, LINE 1:	ACCOUNTS PAYABLE PAYMENTS ARE CONSOLIDATED UNDER A COMMON REPORTING SYSTEM. SINCE TOTALS FOR EACH VENDOR MAY CONTAIN TRANSACTIONS FROM MULTIPLE CORPORATIONS, THE NUMBER OF 1099'S FILED ON BEHALF OF THE GOOD SHEPHERD REHABILITATION HOSPITAL BY THE COMMON REPORTING AGENT CANNOT BE SEPARATELY IDENTIFIED AND DETERMINED.
FORM 990, PART VI, SECTION A, LINE 7A		THE SOLE CORPORATE MEMBER OF THE ORGANIZATION IS THE GOOD SHEPHERD REHABILITATION NETWORK ("GSRN"), A RELATED TAX-EXEMPT ENTITY. GSRN HAS THE ULTIMATE AUTHORITY AND RESPONSIBILITY FOR THE FOLLOWING ACTIVITIES WITH RESPECT TO THE GOOD SHEPHERD REHABILITATION HOSPITAL: AMENDMENT, APPROVAL OR REVOCATION OF BYLAWS; INSTITUTIONAL DEVELOPMENT; CORPORATE AND STRATEGIC PLANNING; FINANCIAL PLANNING AND BUDGETING; AUDIT AND FISCAL MATTERS; RESOURCE ALLOCATION; PUBLIC RELATIONS; APPOINTMENT OF TRUSTEES AND OFFICERS; COMPENSATION AND HUMAN RESOURCE POLICIES; MEDICAL STAFF AND GENERAL POLICY MATTERS.
FORM 990, PART VI, SECTION A, LINE 7B		SEE EXPLANATION FOR FORM 990, PART VI, SECTION A, LINE 7A.
FORM 990, PART VI, SECTION B, LINE 11		THE IRS FORM 990 IS PREPARED USING INFORMATION SOLICITED FROM OFFICERS, DIRECTORS, TRUSTEES, BOARD COMMITTEE MEMBERS, AND MANAGEMENT. THIS GROUP OF INDIVIDUALS ARE PROVIDED A DRAFT RETURN BEFORE THE FINAL RETURN IS FILED. QUESTIONS, COMMENTS, AND ADDITIONAL INFORMATION PROVIDED BY THIS GROUP ARE INCORPORATED INTO THE FINAL RETURN. THE FINAL RETURN IS REVIEWED AT A COMMITTEE LEVEL OF THE BOARD PRIOR TO IT BEING FILED.
	FORM 990, PART VI, SECTION B, LINE 12C	THERE IS A SYSTEMATIC PROCESS COORDINATED THROUGH THE GOVERNANCE COMMITTEE WHERE THE CONFLICT OF INTEREST STATEMENTS COMPLETED ANNUALLY BY BOARD MEMBERS AND SENIOR LEADERSHIP TEAM MEMBERS ARE REVIEWED BY THE GOVERNANCE COMMITTEE. WHENEVER THE COMMITTEE FEELS THE CONFLICT STATEMENT IS EITHER INCOMPLETE OR FEELS SOMETHING MAY BE MISSING, THE COMMITTEE WILL ASK MANAGEMENT TO PURSUE FURTHER DUE DILIGENCE. WHEN A BOARD MEMBER DOES HAVE AN INHERENT CONFLICT, THE TRUSTEE IS ASKED TO EITHER ABSTAIN FROM VOTING OR EXCUSE HIMSELF FROM THE ROOM DURING THE DISCUSSION AND VOTING.
	FORM 990, PART VI, SECTION B, LINE 15	THE GOOD SHEPHERD REHABILITATION NETWORK BOARD DELEGATES RESPONSIBILITY FOR FOLLOWING ALL LEGAL AND REGULATORY REQUIREMENTS AFFECTING EXECUTIVE COMPENSATION TO THE HUMAN RESOURCES/EXECUTIVE COMPENSATION COMMITTEE OF THE BOARD. THIS COMMITTEE IS CHARGED WITH ADMINISTRATION OF COMPENSATION PRACTICES FOR OFFICERS AND KEY EMPLOYEES OF THE ORGANIZATION. THIS COMMITTEE SELECTED AND USES AN INDEPENDENT CONSULTING FIRM SPECIALIZING IN HEALTHCARE EXECUTIVE COMPENSATION MATTERS AND USES COMPARABLE COMPETITIVE MARKET DATA IN THEIR ANALYSIS. THE SERVICES OF AN INDEPENDENT COMPENSATION CONSULTANT (IHS) WERE UTILIZED AND THEIR LATEST REPORT TO THE HUMAN RESOURCE COMPENSATION COMMITTEE WAS DATED AUGUST 30, 2011. COMMITTEE MEETINGS ARE HELD ON AN ONGOING BASIS AND ARE DOCUMENTED IN DETAIL.
	FORM 990, PART VI, SECTION C, LINE 19	FINANCIAL STATEMENTS ARE PUBLISHED TO THE ORGANIZATION'S WEBSITE AT LEAST ANNUALLY. THE GOVERNING DOCUMENTS AND POLICIES ARE AVAILABLE UPON REQUEST.
	FORM 990, PART VII, SECTION A:	SARA T. GAMMON, DANIEL C. CONFALONE, PHILLIP R. BRYANT, ANTHONY R. BONGIOVANNI, AND SAMUEL A MIRANDA, JR. ARE OFFICERS/KEY EMPLOYEES FOR ALL 7 ENTITIES WITHIN THE GOOD SHEPHERD REHABILITATION NETWORK. THEY EACH DEVOTE APPROXIMATELY 60 HOURS PER WEEK TO THE ENTIRE GROUP OF ENTITIES. THE AVERAGE HOURS LISTED IN COLUMN (B) FOR EACH INDIVIDUAL REPRESENTS THE APPROXIMATE PORTION OF 60 HOURS DEVOTED TO THE GOOD SHEPHERD REHABILITATION HOSPITAL PER WEEK. THE COMPENSATION AND BENEFIT INFORMATION REPORTED IN COLUMNS (E) AND (F) REPRESENTS WHAT EACH INDIVIDUAL EARNS FOR THEIR TIME SPENT ON THE ENTIRE GROUP OF 7 ENTITIES. THE BOARD MEMBERS ALSO DEVOTE TIME TO FIVE OTHER ORGANIZATIONS IN THE GROUP. TOTAL TIME SPENT BY BOARD MEMBERS RANGES FROM .75 HOURS PER WEEK TO 3.25 HOURS PER WEEK. THE AVERAGE HOURS LISTED IN COLUMN (B) FOR EACH BOARD MEMBER REPRESENTS THE APPROXIMATE PORTION OF HOURS DEVOTED TO THE GOOD SHEPHERD REHABILITATION HOSPITAL PER WEEK. THE TOP FIVE HIGHEST COMPENSATED EMPLOYEES ONLY DEVOTE TIME TO THE GOOD SHEPHERD REHABILITATION HOSPITAL, WITH THE EXCEPTION OF JAMES DALEY. DR. DALEY IS ALSO A BOARD MEMBER OF THE ALLENTOWN SPECIALTY HOSPITAL WHERE HE DEVOTES APPROXIMATELY 1 HOUR PER WEEK FOR A TOTAL OF 40 HOURS AT BOTH ORGANIZATIONS.
CHANGES IN NET ASSETS OR FUND BALANCES:	FORM 990, PART XI, LINE 5:	PENSION LIABILITY ADJUSTMENT 5,805,039. NET ASSETS RELEASED ADJUSTMENT FOR SPECIAL EVENTS -409,468. TOTAL TO FORM 990, PART XI, LINE 5: 5,395,571.
	FORM 990, PART XI, LINE 2C	THE PROCESSES USED BY THE COMMITTEE THAT ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF THE ORGANIZATION'S FINANCIAL STATEMENTS AND THE SELECTION OF AN INDEPENDENT ACCOUNTANT HAVE NOT CHANGED FROM THE PRIOR YEAR.

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

THE GOOD SHEPHERD REHABILITATION HOSPITAL

Employer identification number

23-1371947

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) GOOD SHEPHERD HOME LONG-TERM CARE FACILITY INC GOOD SHEPHERD PLAZA 850 SOUTH 5TH S ALLENTOWN,PA18103 23-2215800	OPERATES TWO SKILLED NURSING FACILITIES FOR THE SEVERELY DISABLED	PA	501(C)(3)	LINE 3	GOOD SHEPHERD REHABILITATION NETWORK		No
(2) GOOD SHEPHERD HOUSING DEVELOPMENT CORPORATION GOOD SHEPHERD PLAZA 850 SOUTH 5TH S ALLENTOWN,PA18103 23-3073390	PROVIDES INDEPENDENT LIVING APTS FOR DISABLED, LOW-INCOME ADULTS	PA	501(C)(3)	LINE 7	GOOD SHEPHERD REHABILITATION NETWORK		No
(3) GOOD SHEPHERD REHABILITATION NETWORK GOOD SHEPHERD PLAZA 850 SOUTH 5TH S ALLENTOWN,PA18103 23-2216041	PROVIDES MANAGEMENT SERVICES IN SUPPORT OF ITS TAX-EXEMPT AFFILIATES	PA	501(C)(3)	LINE 7	N/A		No
(4) GOOD SHEPHERD WORKSHOPVOCATIONAL SERVICES INC 1901 LEHIGH STREET ALLENTOWN,PA18103 23-2215801	PROVIDES EMPLOYMENT DEVELOPMENT PROGRAMS AND VOCATIONAL EVALUATIONS	PA	501(C)(3)	LINE 11A, I	GOOD SHEPHERD REHABILITATION NETWORK		No
(5) PHILADELPHIA POST-ACUTE PARTNERS LLC 1800 LOMBARD STREET PHILADELPHIA,PA19146 20-8283421	OPERATES INPATIENT REHAB HOSP, ACUTE CARE HOSP & 8 OUTPATIENT FACILITIES	PA	501(C)(3)	LINE 3	GOOD SHEPHERD REHABILITATION NETWORK		No
(6) THE ALLENTOWN SPECIALTY HOSPITAL INC GOOD SHEPHERD PLAZA 850 SOUTH 5TH S ALLENTOWN,PA18103 23-3009874	PROVIDES INPATIENT SVCS THROUGH OPERATION OF A LONG-TERM ACUTE CARE HOSP	PA	501(C)(3)	LINE 3	GOOD SHEPHERD REHABILITATION NETWORK		No

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

Cat. No. 50135Y

Schedule R (Form 990) 2010

Page 2

Part III

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

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(f) Share of total income	(g) Share of end-of-year assets	(h) Disproprtionate allocations?		(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	(j) General or managing partner?
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(f) Share of total income	(g) Share of end-of-year assets	Yes	No	(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No

Part IV

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

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(e) Type of entity (C corp, S corp, or trust)
(1) GOOD SHEPHERD RECIPROCAL RISK RENTENTION GROUP 7301 RIVERS AVENUE SUITE 230 NORTH CHARLESTON,SC29406 20-4065112	RISK RETENTION GROUP	SC	N/A	C

Schedule R (Form 990) 2010

Page 3

Part V

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

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

Yes

1 During the tax year, did the orgranization engage in any of the following transactions with one or more related organizations listed in Parts II-IV?

a Receipt of (i) interest (ii) annuities (iii) royalties (iv) rent from a controlled entity . . . . . . . . . . . . . . . . . . . . . . .

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

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

Yes

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

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

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

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

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

Yes

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

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

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

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

Yes

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

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

Yes

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

Yes

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	(d) Method of determining amount involved
(1)
(2)
(3)
(4)
(5)
(6)

Schedule R (Form 990) 2010

Page 4

Part VI

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

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

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

Schedule R (Form 990) 2010

Page 5

Part VII

Supplemental Information

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

Identifier	Return Reference	Explanation

Additional Data

Software ID:
Software Version:

1	Briefly describe the organization’s mission or most significant activities: TO ENHANCE LIVES, MAXIMIZE FUNCTION, INSPIRE HOPE, AND PROMOTE DIGNITY AND WELL-BEING.
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	14
5	Total number of individuals employed in calendar year 2010 (Part V, line 2a) ...	5	1,485
6	Total number of volunteers (estimate if necessary) ....	6	49
7a	Total unrelated business revenue from Part VIII, column (C), line 12 ..	7a	5,226,493
b	Net unrelated business taxable income from Form 990-T, line 34 ..	7b	867,282

		Prior Year	Current Year
8	Contributions and grants (Part VIII, line 1h) .........	1,978,172	1,960,827
9	Program service revenue (Part VIII, line 2g) .........	65,763,877	73,844,067
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	-57,764	19,871
11	Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)	308,554	276,317
12	Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)...................	67,992,839	76,101,082
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...	0	0
14	Benefits paid to or for members (Part IX, column (A), line 4) ....	0	0
15	Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10)	33,205,810	36,933,266
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)....	36,121,844	37,727,805
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	69,327,654	74,661,071
19	Revenue less expenses. Subtract line 18 from line 12......	-1,334,815	1,440,011
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16)............	65,557,098	63,395,274
21	Total liabilities (Part X, line 26)............	46,609,594	37,612,188
22	Net assets or fund balances. Subtract line 21 from line 20 .....	18,947,504	25,783,086

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 $ 62,463,316 including grants of $ ) (Revenue $ 68,893,519 )
	THE GOOD SHEPHERD REHABILITATION HOSPITAL ("GSRH") IS A 102 BED REHABILITATION HOSPITAL WITH LOCATIONS IN ALLENTOWN, BETHLEHEM AND EAST STROUDSBURG, PENNSYLVANIA. GOOD SHEPHERD HOLDS THE FOLLOWING CARF (COMMISSION ON ACCREDITATION OF REHABILITATION FACILITIES) ACCREDITATIONS: - COMPREHENSIVE INTEGRATED INPATIENT (CHILDREN, ADOLESCENTS, ADULTS)- BRAIN INJURY INPATIENT REHABILITATION PROGRAM (CHILDREN, ADOLESCENTS, ADULTS)- INPATIENT STROKE REHABILITATION SPECIALTY PROGRAMPOST-ACUTE CARE IS PROVIDED FOR CHILDREN, ADOLESCENTS AND ADULTS WHO HAVE CONDITIONS THAT INCLUDE: AMPUTATION, ARTHRITIS, BRAIN INJURY, CHILDHOOD DEVELOPMENTAL DISABILITIES, CHRONIC PAIN, COMPLEX WOUNDS, MULTIPLE SCLEROSIS, MULTIPLE TRAUMA, ORTHOPEDIC INJURY, PULMONARY DISEASE, SPINAL CORD INJURY AND STROKE. SERVICES ARE PROVIDED BY PHYSICAL MEDICINE AND REHABILITATION PHYSICIANS, REHABILITATION NURSES, PHYSICAL AND OCCUPATIONAL THERAPISTS, RESPIRATORY THERAPISTS, NEURO-PSYCHOLOGISTS AND SPEECH-LANGUAGE PATHOLOGISTS. IN FISCAL YEAR 2011, GSRH DISCHARGED A TOTAL OF 1,890 PATIENTS AND HAD OUTPATIENT VISITS TOTALING 203,549.

4b	(Code: ) (Expenses $ including grants of $ ) (Revenue $ )












4c	(Code: ) (Expenses $ including grants of $ ) (Revenue $ )












4d	Other program services. (Describe in Schedule O.)
	(Expenses $ including grants of $ ) (Revenue $ )
4e	Total program service expenses$ 62,463,316

(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) SARA T GAMMON PRESIDENT/CEO	8.00	X	X			0	501,846	192,186
(19) DANIEL C CONFALONE SVP FINANCE/CFO	15.00		X			0	280,650	35,311
(20) PHILLIP R BRYANT CMO	50.00			X		0	341,079	46,991
(21) ANTHONY R BONGIOVANNI CPO	15.00			X		0	217,963	96,197
(22) SAMUEL A MIRANDA JR CNO	40.00			X		0	205,303	77,371
(23) ROSAURO A DALOPE PEDIATRIC HOSPITALIST	40.00				X	224,217	0	17,006
(24) DANIEL Q YEAGER STAFF PHYSIATRIST	40.00				X	185,657	0	17,667
(25) CHIRAG J KOLALA MED. DIR. SPINE & JOINT	40.00				X	183,853	0	17,412
(26) JAMES J DALEY MED. DIR. AMPUTEE PROGRAM	39.00				X	171,263	0	22,447
(27) YASMEEN I BHATTI STAFF PHYSIATRIST	40.00				X	163,199	0	21,933

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)............	928,189	1,546,841	544,521

				(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		277,463
d	Related organizations...1d		1,587,587
e	Government grants (contributions)1e

f	All other contributions, gifts, grants, and similar amounts not included above1f		95,777
g	Noncash contributions included in lines 1a-1f:$
h	Total. Add lines 1a-1f.......			1,960,827
			Business Code
2a	NET PATIENT SVC REV		623,000	68,416,909	68,416,909
b	PROFESSIONAL SVCS REV		621,110	5,427,158	220,810	5,206,348
c
d
e
f	All other program service revenue .
g	Total. Add lines 2a–2f........			73,844,067
3	Investment income (including dividends, interest
	and other similar amounts).....			19,871			19,871
4	Income from investment of tax-exempt bond proceeds..
5	Royalties............
		(i) Real	(ii) Personal
6a	Gross Rents
b	Less: rental expenses
c	Rental income or (loss)
d	Net rental income or (loss).......
		(i) Securities	(ii) Other
7a	Gross amount from sales of assets other than inventory
b	Less: cost or other basis and sales expenses
c	Gain or (loss)
d	Net gain or (loss)..........
8a	Gross income from fundraising events (not including $ 277,463 of contributions reported on line 1c). See Part IV, line 18 ...
	a		132,005
b	Less: direct expenses ...b		132,005
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...
10a	Gross sales of inventory, less returns and allowances .
	a
b	Less: cost of goods sold ..b
c	Net income or (loss) from sales of inventory..
Miscellaneous Revenue			Business Code
11a	FITNESS CENTER		713,940	162,092	162,092
b	LIFESTYLE PRDUCTS/SVCS		446,199	113,853	93,708	20,145
c	MED REC ABSTRACTING		561,439	372			372
d	All other revenue ....
e	Total. Add lines 11a–11d ......			276,317
12	Total revenue. See Instructions....			76,101,082	68,893,519	5,226,493	20,243


				(A) Beginning of year		(B) End of year
1	Cashnon-interest-bearing ..........			18,552	1	23,585
2	Savings and temporary cash investments .......				2
3	Pledges and grants receivable, net .........				3
4	Accounts receivable, net .........			10,134,712	4	10,606,150
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 ..............			519,517	8	457,572
9	Prepaid expenses and deferred charges ............			1,385,294	9	1,289,271
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	115,054,755
b	Less: accumulated depreciation. .....	10b	65,445,023	52,863,302	10c	49,609,732
11	Investments—publicly traded securities ..........				11
12	Investments—other securities. See Part IV, line 11 ......				12
13	Investments—program-related. See Part IV, line 11 ..				13
14	Intangible assets .........			635,721	14	605,516
15	Other assets. See Part IV, line 11 ...........			0	15	803,448
16	Total assets. Add lines 1 through 15 (must equal line 34)...			65,557,098	16	63,395,274
17	Accounts payable and accrued expenses .			16,160,512	17	11,739,905
18	Grants payable ..........				18
19	Deferred revenue ..........				19
20	Tax-exempt bond liabilities ..........				20
21	Escrow or custodial account liability. Complete Part IV of Schedule D..				21
22	Payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........				22
23	Secured mortgages and notes payable to unrelated third parties ..				23
24	Unsecured notes and loans payable to unrelated third parties ....				24
25	Other liabilities. Complete Part X of Schedule D.....			30,449,082	25	25,872,283
26	Total liabilities. Add lines 17 through 25.....			46,609,594	26	37,612,188
	Organizations that follow SFAS 117, check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets .....			18,947,504	27	25,783,086
28	Temporarily restricted net assets .....				28
29	Permanently restricted net assets .....				29
	Organizations that do not follow SFAS 117, check here and complete lines 30 through 34.
30	Capital stock or trust principal, or current funds .....				30
31	Paid-in or capital surplus, or land, building or equipment fund .....				31
32	Retained earnings, endowment, accumulated income, or other funds				32
33	Total net assets or fund balances .....			18,947,504	33	25,783,086
34	Total liabilities and net assets/fund balances .....			65,557,098	34	63,395,274