Form990
Click to see attachment
Department of the Treasury
Internal Revenue Service
Return of Organization Exempt From Income Tax
Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except black lung benefit trust or private foundation)

MediumBullet The organization may have to use a copy of this return to satisfy state reporting requirements.
OMB No. 1545-0047
2010
Open to Public Inspection
A For the calendar year, or tax year beginning 10-01-2010 and ending 09-30-2011
BCheck if applicable:
CName of organization
MEMORIAL HEALTH SYSTEM
 
Doing Business As
 
 
Number and street (or P.O. box if mail is not delivered to street address)
701 NORTH FIRST STREET
 
Room/suite
City or town, state or country, and ZIP + 4
SPRINGFIELD, IL627810001
D Employer identification number

37-1110690
E Telephone number

G Gross receipts $ 86,693,167
F Name and address of principal officer:
EDGAR J CURTIS
701 NORTH FIRST STREET
SPRINGFIELD,IL627810001
I
Tax-exempt status: (   ) LeftBullet (insert no.) or
J
Website:MediumBullet
WWW.MHSIL.COM
H(a)
Is this a group return for
affiliates?
H(b)
Are all affiliates included?
If "No," attach a list. (see instructions)
H(c)
Group exemption number MediumBullet  
K Form of organization:
 
L Year of formation: 1981
M State of legal domicile: IL
Part I
Summary
Activities & Governance 1 Briefly describe the organization’s mission or most significant activities: TO IMPROVE THE HEALTH OF THE PEOPLE AND COMMUNITIES WE SERVE.
2 Check this box MediumBullet
3 Number of voting members of the governing body (Part VI, line 1a) .... 3 17
4 Number of independent voting members of the governing body (Part VI, line 1b) .... 4 13
5 Total number of individuals employed in calendar year 2010 (Part V, line 2a) ... 5 266
6 Total number of volunteers (estimate if necessary) .... 6 0
7a Total unrelated business revenue from Part VIII, column (C), line 12 .. 7a 499,766
b Net unrelated business taxable income from Form 990-T, line 34 .. 7b -5,590
Revenues; Prior Year Current Year
8 Contributions and grants (Part VIII, line 1h) ......... 8,103 0
9 Program service revenue (Part VIII, line 2g) ......... 49,572,822 57,330,196
10 Investment income (Part VIII, column (A), lines 3, 4, and 7d ) .... 656,769 901,157
11 Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e) 1,730,852 1,933,615
12 Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)................... 51,968,546 60,164,968
Expenses; 13 Grants and similar amounts paid (Part IX, column (A), lines 1–3 )... 178,253 293,447
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) 22,641,807 26,428,259
16a Professional fundraising fees (Part IX, column (A), line 11e).... 0 0
b Total fundraising expenses (Part IX, column (D), line 25) MediumBullet0    
17 Other expenses (Part IX, column (A), lines 11a–11d, 11f–24f).... 28,618,217 32,634,394
18 Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25) 51,438,277 59,356,100
19 Revenue less expenses. Subtract line 18 from line 12...... 530,269 808,868
Net Assets or Fund Balances; Beginning of Current Year End of Year
20 Total assets (Part X, line 16)............ 144,243,267 138,836,542
21 Total liabilities (Part X, line 26)............ 63,763,910 62,665,324
22 Net assets or fund balances. Subtract line 21 from line 20 ..... 80,479,357 76,171,218
Part II
Signature Block
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than officer) is based on all information of which preparer has any knowledge.
Sign Here
JumboBullet
Signature of officer Date
JumboBullet
Type or print name and title.
Paid Preparer's Use Only Preparer's
signatureBig Right Arrow 		Date
right pointing bullet image Preparer’s taxpayer identification number
(see instructions)
Firm’s name (or yours
if self-employed),
address, and ZIP + 4Big Right Arrow




 		EIN right pointing bullet image
Phone no. right pointing bullet image
May the IRS discuss this return with the preparer shown above? (see instructions) .........
For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions.
Cat. No. 11282Y
Form 990 (2010)
Form 990 (2010)
Page 2
Part III
Statement of Program Service Accomplishments
Check if Schedule O contains a response to any question in this Part III . . . . . . . . . .
1
Briefly describe the organization’s mission: TO IMPROVE THE HEALTH OF THE PEOPLE AND COMMUNITIES WE SERVE.
2
Did the organization undertake any significant program services during the year which were not listed on
the prior Form 990 or 990-EZ? ....................
If “Yes,” describe these new services on Schedule O.
3
Did the organization cease conducting, or make significant changes in how it conducts, any program services? ..........................
If “Yes,” describe these changes on Schedule O.
4
Describe the exempt purpose achievements for each of the organization’s three largest program services by expenses.
Section 501(c)(3) and 501(c)(4) organizations and section 4947(a)(1) trusts are required to report the amount of grants and allocations to others, the total expenses, and revenue, if any, for each program service reported.
4a (Code:   ) (Expenses $ 29,888,191 including grants of $   ) (Revenue $ 15,469,743 )
INFORMATION TECHNOLOGYMEMORIAL HEALTH SYSTEM IS PROACTIVE IN IMPLEMENTING TECHNOLOGY THAT BOTH IMPROVES PATIENT SAFETY, QUALITY AND CLINICAL EFFECTIVENESS, AND IMPROVES MEMORIAL HEALTH SYSTEM'S BUSINESS PROCESSES. MEMORIAL HEALTH SYSTEM'S STAFF OF EXPERIENCED INFORMATION TECHNOLOGY PROFESSIONALS IS ON THE CUTTING EDGE OF MEDICAL TECHNOLOGY. THEY SUPPORT A VAST ARRAY OF PATIENT CARE AND BUSINESS APPLICATIONS. DURING FY11 SIGNIFICANT INFORMATION TECHNOLOGY PROJECTS INCLUDED: COMPLETED IMPLEMENTATION OF COMPUTERIZED PROVIDER ORDER ENTRY SYSTEM AT MEMORIAL MEDICAL CENTER, COMPLETED IMPLEMENTATION OF PROVIDER DOCUMENTATION (PRODOC) AT MEMORIAL MEDICAL CENTER, COMPLETION OF IMPLEMENTATION OF ALLSCRIPTS ELECTRONIC HEALTH RECORD AT MEMORIAL PHYSICIAN SERVICES, IMPLEMENTATION OF ELECTRONIC DOCUMENTATION (COPATH PLUS) FOR ANATOMIC PATHOLOGY AT MEMORIAL MEDICAL CENTER, AND COMPLETION OF INFRASTRUCTURE UPGRADES FOR WIRELESS AND TELECOMMUNICATION GEAR THROUGHOUT THE HEALTH SYSTEM TO PROVIDE BACK-UP ROUTING AND REDUNDANCY TO PREVENT FAILURES.MEMORIAL HEALTH SYSTEM HAS BEEN ON A JOURNEY TO FULLY IMPLEMENT INTEGRATED ELECTRONIC HEALTH RECORDS SINCE 1995. THE MULTIPLE ELECTRONIC HEALTH RECORD (EHR) ADVANCEMENTS IMPROVE PATIENT SAFETY AND QUALITY OF CARE DELIVERED THROUGH IMPROVED CARE TEAM COMMUNICATION, IMPROVED TURN-AROUND TIME FROM ORDERING TO TEST IMPLEMENTATION, REDUCED MEDICATION ERRORS AND REDUCTION OF DUPLICATED TESTS. DATA EXTRACTION FROM THE EHR ALSO ALLOWS FOR REAL TIME ANALYSIS OF PATIENT CARE ISSUES AND IMMEDIATE RESOLUTION TO QUALITY DEFICITS. SYSTEM STABILIZATION PROJECTS (WIDE AREA NETWORK BACKUP CONNECTIVITY, WIRELESS REDUNDANCY AND INCREASED SERVER CONNECTIVITY REDUNDANCY FOR SEVERAL APPLICATIONS) CONTRIBUTED TO THE OVERALL SYSTEM AVAILABILITY ALLOWING CLINICAL STAFF BETTER AVAILABILITY OF PATIENT DATA.
4b (Code:   ) (Expenses $ 5,210,245 including grants of $   ) (Revenue $ 4,186,290 )
BUILDING AND FACILITY EXPANSION AND IMPROVEMENTSIN ORDER TO INCREASE CAPACITY TO MEET THE ONGOING COMMUNITY DEMAND FOR SERVICES, MEMORIAL HEALTH SYSTEM INVESTED IN SEVERAL SIGNIFICANT FACILITY IMPROVEMENTS IN FY11. ALL RENOVATIONS AND EXPANSION OF SERVICES WERE DEVELOPED AND DESIGNED WITH THE ASSISTANCE OF A HEALTHCARE DESIGN FIRM, AND WITH STRICT ADHERENCE TO PUBLIC HEALTH CODE FOR WORKFLOW CIRCULATION AND SPACE DIMENSIONS. EACH INCORPORATED SPECIFIC IMPROVEMENTS TO PROTECT HEALTHCARE PROVIDERS FROM INJURY OR HARM. THE TOP FOUR PROJECTS WERE:LINEAR ACCELERATORS WERE REPLACED WITH TRUEBEAM TECHNOLOGY TO OFFER THE LATEST ADVANCEMENT IN RADIATION THERAPY FOR THE TREATMENT OF CANCER. THIS PROVIDES MMC'S PATIENTS WITH INCREASED ACCURACY, EFFICIENCY, AND SAFETY. THE VARIAN RAPIDARC TECHNOLOGY LIMITS THE REPOSITIONING OF PATIENTS AND MODIFICATIONS OF MACHINE SETTINGS AND AUTOMATICALLY MONITORS THE BREATHING AND OTHER MOVEMENTS OF PATIENTS TO PRECISELY TARGET THE TUMOR. THE COST OF THE PROJECT WAS $8.3 MILLION.AS PART OF MMC'S ONGOING EFFORT TO PROVIDE MODERN, EFFICIENT PATIENT CARE, A MAJOR RENOVATION OF THE BAYLIS DAY SURGERY WAS COMPLETED IN 2011. THE PROJECT IMPROVED OPERATING EFFICIENCY OF THE SPACE BY IMPROVING PATIENT FLOW. OUTPATIENT OR'S WERE MODERNIZED, 11 NEW PATIENT PREP AND INTERVIEW ROOMS WERE CREATED AND SURGICAL RECOVERY BAYS WERE MODIFIED. THE COST OF THE PROJECT WAS $4.2 MILLION.IN SUPPORT OF OUR MISSION TO IMPROVE THE HEALTH OF THE PEOPLE AND THE COMMUNITIES WE SERVE, MHS JOINED WITH THE SPRINGFIELD COMMUNITY TO SUPPORT THE CONSTRUCTION OF A NEW WESTSIDE YMCA. SPORTSCARE RELOCATED TO THE NEW Y, OFFERING SPECIALIZED SPORTS MEDICINE. THE NEW FACILITY IS EQUIPPED WITH THE LATEST TECHNOLOGY IN SPORTS MEDICINE AND REHABILITATION FOR A WIDE RANGE OF ACTIVE LIFESTYLES. THE NEW 10,000 SQUARE FOOT LOCATION IS HOME TO STATE-OF-THE-ART SPORTS MEDICINE EQUIPMENT, A WARM-WATER THERAPY POOL, PHYSICIAN CLINICS, ONSITE X-RAY EQUIPMENT AND IMPACT CONCUSSION ASSESSMENT EQUIPMENT. THE COST OF THIS PROJECT WAS $3.2 MILLION.TO SUPPORT MHS' GREAT PATIENT EXPERIENCE INITIATIVE, THE INFUSION THERAPY PROGRAM WAS RELOCATED TO A NEWLY CREATED INFUSION SERVICES AREA. CAPACITY WAS EXPANDED TO 12 CHAIRS AND 4 BEDS, PROVIDING PRIVATE ROOMS WHEN REQUIRED. RELOCATION OF THE PROGRAM TO AN AREA ADJACENT TO THE EMERGENCY DEPARTMENT ALSO PROVIDES FLEXIBILITY FOR THE EMERGENCY DEPARTMENT TO UTILIZE THE BEDS IF THEY ARE NOT NEEDED TO CARE FOR INFUSION PROGRAM PATIENTS. THE SPACE VACATED BY THE INFUSION THERAPY PROGRAM WAS CONVERTED TO ADDITIONAL INPATIENT BEDS ON THE ONCOLOGY NURSING UNIT. COST OF THIS PROJECT WAS $2.2 MILLION.
4c (Code:   ) (Expenses $ 3,543,355 including grants of $   ) (Revenue $ 37,233,986 )
EXECUTIVE LEADERSHIPGUIDED BY THE VALUES OF MEMORIAL HEALTH SYSTEM, SENIOR LEADERSHIP IS RESPONSIBLE FOR STRATEGIC PLANNING, PRIORITIZING AMONG COMPETING ISSUES AND ENGAGING IN DIALOGUE AND DECISION-MAKING THAT WILL ENABLE MEMORIAL HEALTH SYSTEM TO ACHIEVE ITS MISSION AND VISION AND ACCOMPLISH ITS STRATEGIC GOALS. IN FY11, MHS SENIOR LEADERSHIP UPDATED THE ORGANIZATION'S STRATEGIC PLAN, 5 YEAR GOALS AND MEASURES OF SUCCESS TO REFLECT EMERGING PRIORITIES RELATED TO THE EMERGING "TRIPLE AIM" OF HEALTH CARE: TO IMPROVE THE QUALITY OF CARE FOR INDIVIDUALS AND THE HEALTH OF POPULATIONS OF PEOPLE WHILE REDUCING COSTS. IN ADDITION, WE UPDATED AND IMPROVED OUR SYSTEM LEADERSHIP TEAM ANNUAL ACTION PLANNING TEMPLATE AND CREATED A NEW STANDARDIZED ACTION PLANNING TEMPLATE TO BE USED AT ALL MHS AFFILIATES AND DEPARTMENTS TO INCREASE ACCOUNTABILITY FOR EXECUTING OUR STRATEGIES IN A MANNER THAT HELPS US FULFILL OUR MISSION, ACHIEVE OUR VISION AND ACCOMPLISH OUR GOALS. IN THE AREA OF INFORMATION SYSTEMS, WE SUCCESSFULLY IMPLEMENTED AN AMBULATORY ELECTRONIC HEALTH RECORD IN ALL 14 OF OUR AFFILIATE PRIMARY CARE PHYSICIAN GROUP CLINICS AND COMPUTERIZED PHYSICIAN ORDER ENTRY IN MEMORIAL MEDICAL CENTER. WE ALSO PROVIDED LEADERSHIP FOR THE COMMUNITY TO ESTABLISH, INCORPORATE AND FUND THE LINCOLN LAND HEALTH INFORMATION EXCHANGE IN COLLABORATION WITH SOUTHERN ILLINOIS UNIVERSITY SCHOOL OF MEDICINE, SPRINGFIELD CLINIC AND OTHER HOSPITALS AND HEALTH CARE PROVIDERS IN THE REGION. IN THE AREA OF SYSTEM FACILITY PLANNING AND MANAGEMENT, WE COMPLETED CONSTRUCTION OF A REPLACEMENT CRITICAL ACCESS HOSPITAL (ABRAHAM LINCOLN MEMORIAL HOSPITAL IN LINCOLN, ILLINOIS) AND A NEW AMBULATORY SERVICES BUILDING INCLUDING BETTER ACCESS VIA STATE HIGHWAY 29, NEW EMERGENCY, IMAGING AND SURGERY FACILITIES FOR OUR OTHER CRITICAL ACCESS HOSPITAL (TAYLORVILLE MEMORIAL HOSPITAL IN TAYLORVILLE, ILLINOIS). IN SPRINGFIELD, TO IMPROVE PATIENT ACCESS AND CONVENIENCE WE COMPLETED CONSOLIDATION OF OUR OUTPATIENT IMAGING SERVICES ON THE MEMORIAL MEDICAL CENTER CAMPUS, AN EMERGENCY SERVICES EXPANSION, NEW OUTPATIENT INFUSION UNIT AND A 500 SPACE PARKING GARAGE TO IMPROVE PATIENT AND PHYSICIAN VEHICULAR ACCESS. WE ALSO COMPLETED, IN PARTNERSHIP WITH THE YMCA, A NEW Y FACILITY AND RELOCATED OUR SPORTS MEDICINE AND CARDIAC REHABILITATION PHASE 3 PROGRAM TO THAT FACILITY TO IMPROVE ACCESS FOR THESE PATIENTS. THIS NEW FACILITY PROMOTES INDIVIDUAL RESPONSIBILITY AND IS AN EXCELLENT RESOURCE FOR AREA RESIDENTS TO IMPROVE THEIR OWN HEALTH AND WELLNESS. OTHER KEY SUCCESSES THIS YEAR DIRECTLY RELATED TO STRONG LEADERSHIP INCLUDE THE RECERTIFICATION OF MAGNET HOSPITAL DESIGNATION FOR MEMORIAL MEDICAL CENTER FOR ANOTHER FOUR (4) YEARS, REAFFIRMATION OF OUR A+/A1 BOND RATING BY MOODY'S AND STANDARD AND POORS, DESIGNATION OF MEMORIAL HEALTH SYSTEM AS A NATIONAL "EMPLOYER OF CHOICE", MHS EMPLOYEE ENGAGEMENT SCORES AT THE 95TH PERCENTILE OF OUR NATIONAL COMPARISON GROUP AND SIGNIFICANTLY IMPROVED HCAHPS INPATIENT SATISFACTION SCORES AT MEMORIAL MEDICAL CENTER. THIS YEAR WE ADOPTED NEW, EVIDENCE BASED LEADERSHIP COMPETENCY AND EMPLOYEE ENGAGEMENT MODELS. WE ALSO REVAMPED OUR LEADERSHIP COMMUNICATIONS MODEL TO BETTER ALIGN AND CASCADE IMPORTANT MESSAGES THROUGHOUT OUR ORGANIZATION STARTING WITH OUR SYSTEM LEADERSHIP TEAM (IN A SPRING LEADERSHIP RETREAT) TO OUR DEPARTMENT DIRECTORS AND MANAGERS (VIA SUMMER LEADERSHIP DEVELOPMENT INSTITUTE RETREATS) TO OUR EMPLOYEES (VIA FALL ROUND-THE-CLOCK EMPLOYEE MEETINGS) TO OUR ALIGNED PHYSICIANS (VIA MEMORIAL PHYSICIAN SERVICES STRATEGIC UPDATE MEETING.) WE ALSO INSTITUTED PROTECTED "NO MEETING TIMES" AND THE HOURLY NURSE MANAGER ROUNDING BEST PRACTICE ON OUR INPATIENT UNITS, WHICH DIRECTLY CORRELATES TO IMPROVED "RESPONSE TO CONCERNS AND COMPLAINTS" AND OVERALL PATIENT SATISFACTION RATINGS.TO BETTER ALIGN OUR LEADERSHIP PRIORITIES WITH OUR ORGANIZATIONAL STRUCTURE, TWO NEW SENIOR LEADER ROLES AND ONE NEW SYSTEM LEADER ROLE WERE CREATED BY REVISING JOB DESCRIPTIONS OF THREE INCUMBENT LEADERS. THE THREE POSITIONS WERE VICE PRESIDENT FOR CLINICAL INTEGRATION, VICE PRESIDENT OF QUALITY AND OPERATIONS AND ADMINISTRATOR OF ORTHOPEDICS AND NEUROSCIENCES. WE ALSO CREATED NEW "CO-MANAGEMENT" LEADERSHIP STRUCTURES FOR OUTPATIENT SURGERY, ORTHOPEDICS, CARDIOVASCULAR AND ONCOLOGY SERVICES WHEREBY PHYSICIANS SHARE LEADERSHIP RESPONSIBILITIES WITH ADMINISTRATIVE LEADERS AND HAVE ALIGNED INCENTIVES TO IMPROVE PATIENT CLINICAL OUTCOMES, QUALITY AND SAFETY PROCESSES, EFFICIENCY AND OTHER MEASURES.
(Code:   ) (Expenses $ 3,182,214 including grants of $ 293,447 ) (Revenue $   )
4d Other program services. (Describe in Schedule O.)
(Expenses $ 3,182,214 including grants of $ 293,447 ) (Revenue $   )
4e Total program service expensesMediumBullet$ 41,824,005
Form 990 (2010)
Form 990 (2010)
Page 3
Part IV
Checklist of Required Schedules
Yes
No
1
Is the organization described in section 501(c)(3) or 4947(a)(1) (other than a private foundation)? If “Yes,” complete Schedule AClick to see attachment.....................
1
Yes
 
2
Is the organization required to complete Schedule B, Schedule of Contributors? ........
2
 
No
3
Did the organization engage in direct or indirect political campaign activities on behalf of or in opposition to candidates for public office? If “Yes,” complete Schedule C, Part IClick to see attachment..........
3
 
No
4
Section 501(c)(3) organizations. Did the organization engage in lobbying activities? If “Yes,” complete Schedule C,
Part IIClick to see attachment.........................
4
Yes
 
5
Is the organization a section 501(c)(4), 501(c)(5), or 501(c)(6) organization that receives membership dues, assessments, or similar amounts as defined in Revenue Procedure 98-19? If “Yes,” complete Schedule C, Part IIIClick to see attachment........................
5
 
No
6
Did the organization maintain any donor advised funds or any similar funds or accounts where donors have the right to provide advice on the distribution or investment of amounts in such funds or accounts? If “Yes,” complete
Schedule D, Part IClick to see attachment.......................
6
 
No
7
Did the organization receive or hold a conservation easement, including easements to preserve open space,
the environment, historic land areas or historic structures? If “Yes,” complete Schedule D, Part IIClick to see attachment...
7
 
No
8
Did the organization maintain collections of works of art, historical treasures, or other similar assets? If “Yes,” complete Schedule D, Part III Click to see attachment....................
8
 
No
9
Did the organization report an amount in Part X, line 21; serve as a custodian for amounts not listed in Part X; or provide credit counseling, debt management, credit repair, or debt negotiation services? If “Yes,”
complete Schedule D, Part IVClick to see attachment...................
9
 
No
10
Did the organization, directly or through a related organization, hold assets in term, permanent,or quasi-endowments? If “Yes,” complete Schedule D, Part VClick to see attachment
10
 
No
11
If the organization’s answer to any of the following questions is ‘Yes,’ then complete Schedule D, Parts VI, VII, VIII, IX, or X as applicable:
a
Did the organization report an amount for land, buildings, and equipment in Part X, line10? If “Yes,” complete Schedule D, Part VI.Click to see attachment
11a
Yes
 
b
Did the organization report an amount for investments—other securities in Part X, line 12 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part VII.Click to see attachment
11b
 
No
c
Did the organization report an amount for investments—program related in Part X, line 13 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part VIII.Click to see attachment
11c
 
No
d
Did the organization report an amount for other assets in Part X, line 15 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part IX.Click to see attachment
11d
 
No
e
Did the organization report an amount for other liabilities in Part X, line 25? If “Yes,” complete Schedule D, Part X.Click to see attachment
11e
Yes
 
f
Did the organization’s separate or consolidated financial statements for the tax year include a footnote that addresses the organization’s liability for uncertain tax positions under FIN 48 (ASC 740)? If “Yes,” complete Schedule D, Part X.Click to see attachment
11f
Yes
 
12a
Did the organization obtain separate, independent audited financial statements for the tax year? If “Yes,” complete Schedule D, Parts XI, XII, and XIII Click to see attachment
12a
 
No
b
Was the organization included in consolidated, independent audited financial statements for the tax year? If “Yes,” and if the organization answered ‘No’ to line 12a, then completing Schedule D, Parts XI, XII, and XIII is optional Click to see attachment
12b
Yes
 
13
Is the organization a school described in section 170(b)(1)(A)(ii)? If “Yes,” complete Schedule E
13
 
No
14a
Did the organization maintain an office, employees, or agents outside of the United States?....
14a
 
No
b
Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, fundraising, business, and program service activities outside the United States? If “Yes,” complete Schedule F, Part I.........
14b
 
No
15
Did the organization report on Part IX, column (A), line 3, more than $5,000 of grants or assistance to any organization or entity located outside the U.S.? If “Yes,” complete Schedule F, Part II..
15
 
No
16
Did the organization report on Part IX, column (A), line 3, more than $5,000 of aggregate grants or assistance to individuals located outside the U.S.? If “Yes,” complete Schedule F, Part III..
16
 
No
17
Did the organization report a total of more than $15,000, of expenses for professional fundraising services on Part IX, column (A), lines 6 and 11e? If “Yes,” complete Schedule G, Part I
17
 
No
18
Did the organization report more than $15,000 total of fundraising event gross income and contributions on Part VIII, lines 1c and 8a? If “Yes,” complete Schedule G, Part II..........
18
 
No
19
Did the organization report more than $15,000 of gross income from gaming activities on Part VIII, line 9a? If “Yes,” complete Schedule G, Part III...................
19
 
No
Form 990 (2010)
Form 990 (2010)
Page 4
Part IV
Checklist of Required Schedules (continued)
20a
Did the organization operate one or more hospitals? If “Yes,” complete Schedule H.....
20a
 
No
b
Did the organization attach its audited financial statement to this return? Note: All Form 990 filers that operate one or more hospitals must attach audited financial statements. .....
20b
 
 
21
Did the organization report more than $5,000 of grants and other assistance to governments and organizations in the United States on Part IX, column (A), line 1? If “Yes,” complete Schedule I, Parts I and II.. Click to see attachment
21
Yes
 
22
Did the organization report more than $5,000 of grants and other assistance to individuals in the United States on Part IX, column (A), line 2? If “Yes,” complete Schedule I, Parts I and III..... Click to see attachment
22
Yes
 
23
Did the organization answer “Yes” to Part VII, Section A, questions 3, 4, or 5, about compensation of the organization’s current and former officers, directors, trustees, key employees, and highest compensated employees? If “Yes,” complete Schedule J................ Click to see attachment
23
Yes
 
24a
Did the organization have a tax-exempt bond issue with an outstanding principal amount of more than $100,000 as of the last day of the year, that was issued after December 31, 2002? If “Yes,” answer questions 24b–24d and complete Schedule K. If “No,” go to line 25................ Click to see attachment
24a
Yes
 
b
Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception?...
24b
 
No
c
Did the organization maintain an escrow account other than a refunding escrow at any time during the year
to defease any tax-exempt bonds?......................
24c
 
No
d
Did the organization act as an “on behalf of” issuer for bonds outstanding at any time during the year?...
24d
 
No
25a
Section 501(c)(3) and 501(c)(4) organizations. Did the organization engage in an excess benefit transaction with a disqualified person during the year? If “Yes,” complete Schedule L, Part I...... Click to see attachment
25a
 
No
b
Is the organization aware that it engaged in an excess benefit transaction with a disqualified person in a prior year, and that the transaction has not been reported on any of the organization’s prior Forms 990 or 990-EZ? If “Yes,” complete Schedule L, Part I................ Click to see attachment
25b
 
No
26
Was a loan to or by a current or former officer, director, trustee, key employee, highly compensated employee, or disqualified person outstanding as of the end of the organization’s tax year? If “Yes,” complete Schedule L,
Part II........................... Click to see attachment
26
 
No
27
Did the organization provide a grant or other assistance to an officer, director, trustee, key employee, substantial contributor, or a grant selection committee member, or to a person related to such an individual? If “Yes,” complete Schedule L, Part III............... Click to see attachment
27
 
No
28
Was the organization a party to a business transaction with one of the following parties? (see Schedule L, Part IV instructions for applicable filing thresholds, conditions, and exceptions):
a
A current or former officer, director, trustee, or key employee? If “Yes,” complete Schedule L, Part IV ......................... Click to see attachment
28a
 
No
b
A family member of a current or former officer, director, trustee, or key employee? If “Yes,”
complete Schedule L, Part IV................... Click to see attachment
28b
 
No
c
An entity of which a current or former officer, director, trustee, or key employee (or a family member thereof) was an officer, director, trustee, or owner? If “Yes,” complete Schedule L, Part IV.. Click to see attachment
28c
Yes
 
29
Did the organization receive more than $25,000 in non-cash contributions? If “Yes,” complete Schedule M
29
 
No
30
Did the organization receive contributions of art, historical treasures, or other similar assets, or qualified conservation contributions? If “Yes,” complete Schedule M............
30
 
No
31
Did the organization liquidate, terminate, or dissolve and cease operations? If “Yes,” complete Schedule N,
Part I...........................
31
 
No
32
Did the organization sell, exchange, dispose of, or transfer more than 25% of its net assets? If “Yes,” complete Schedule N, Part II.......................
32
 
No
33
Did the organization own 100% of an entity disregarded as separate from the organization under Regulations sections 301.7701-2 and 301.7701-3? If “Yes,” complete Schedule R, Part I........ Click to see attachment
33
 
No
34
Was the organization related to any tax-exempt or taxable entity? If “Yes,” complete Schedule R, Parts II, III, IV, and V, line 1..................... Click to see attachment
34
Yes
 
35
Is any related organization a controlled entity within the meaning of section 512(b)(13)? .....
35
Yes
 
a
Did the organization receive any payment from or engage in any transaction with a controlled entity within the meaning of section 512(b)(13)? If “Yes,” complete Schedule R, Part V, line 2... Click to see attachment
36
Section 501(c)(3) organizations. Did the organization make any transfers to an exempt non-charitable related organization? If “Yes,” complete Schedule R, Part V, line 2........... Click to see attachment
36
 
No
37
Did the organization conduct more than 5% of its activities through an entity that is not a related organization and that is treated as a partnership for federal income tax purposes? If “Yes,” complete Schedule R, Part VIClick to see attachment
37
 
No
38
Did the organization complete Schedule O and provide explanations in Schedule O for Part VI, lines 11 and 19? Note. All Form 990 filers are required to complete Schedule O. ............
38
Yes
 
Form 990 (2010)
Form 990 (2010)
Page 5
Part V
Statements Regarding Other IRS Filings and Tax Compliance
Check if Schedule O contains a response to any question in this Part V . . . . . . . . . .
Yes
No
1a
Enter the number reported in Box 3 of Form 1096. Enter -0- if not applicable. .......
1a
34
b
Enter the number of Forms W-2G included in line 1a. Enter -0- if not applicable.
1b
0
c
Did the organization comply with backup withholding rules for reportable payments to vendors and reportable gaming (gambling) winnings to prize winners? ..................
1c
Yes
 
2a
Enter the number of employees reported on Form W-3, Transmittal of Wage and Tax Statements filed for the calendar year ending with or within the year covered by this return .....................
2a
266
b
If at least one is reported on line 2a, did the organization file all required federal employment tax returns?

Note. If the sum of lines 1a and 2a is greater than 250, you may be required to e-file. (see instructions)
2b
Yes
 
3a
Did the organization have unrelated business gross income of $1,000 or more during the year?.............................
3a
Yes
 
b
If “Yes,” has it filed a Form 990-T for this year? If “No,” provide an explanation in Schedule O.....
3b
Yes
 
4a
At any time during the calendar year, did the organization have an interest in, or a signature or other authority over, a financial account in a foreign country (such as a bank account or securities account)?.......................
4a
 
No
b
If "Yes," enter the name of the foreign country: MediumBullet
See instructions for filing requirements for Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts.
5a
Was the organization a party to a prohibited tax shelter transaction at any time during the tax year?..
5a
 
No
b
Did any taxable party notify the organization that it was or is a party to a prohibited tax shelter transaction?
5b
 
No
c
If “Yes” to line 5a or 5b, did the organization file Form 8886-T? ........
5c
 
 
6a
Does the organization have annual gross receipts that are normally greater than $100,000, and did the organization solicit any contributions that were not tax deductible?..........
6a
 
No
b
If “Yes,” did the organization include with every solicitation an express statement that such contributions or gifts were not tax deductible?........................
6b
 
 
7
Organizations that may receive deductible contributions under section 170(c).
a
Did the organization receive a payment in excess of $75 made partly as a contribution and partly for goods and services provided to the payor?....................
7a
 
No
b
If “Yes,” did the organization notify the donor of the value of the goods or services provided?.....
7b
 
 
c
Did the organization sell, exchange, or otherwise dispose of tangible personal property for which it was required to file Form 8282?...........................
7c
 
No
d
If “Yes,” indicate the number of Forms 8282 filed during the year ....
7d
 
e
Did the organization receive any funds, directly or indirectly, to pay premiums on a personal benefit contract?..........................
7e
 
No
f
Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract?..
7f
 
No
g
If the organization received a contribution of qualified intellectual property, did the organization file Form 8899 as required?...................
7g
 
 
h
If the organization received a contribution of cars, boats, airplanes, or other vehicles, did the organization file a Form 1098-C?...............
7h
 
 
8
Sponsoring organizations maintaining donor advised funds and section 509(a)(3) supporting organizations. Did the supporting organization, or a donor advised fund maintained by a sponsoring organization, have excess business holdings at any time during the year?................
8
 
 
9
Sponsoring organizations maintaining donor advised funds.
a
Did the organization make any taxable distributions under section 4966?.........
9a
 
 
b
Did the organization make a distribution to a donor, donor advisor, or related person?......
9b
 
 
10
Section 501(c)(7) organizations. Enter:
a
Initiation fees and capital contributions included on Part VIII, line 12 ...
10a
 
b
Gross receipts, included on Form 990, Part VIII, line 12, for public use of club facilities
10b
 
11
Section 501(c)(12) organizations. Enter:
a
Gross income from members or shareholders .........
11a
 
b
Gross income from other sources (Do not net amounts due or paid to other sources against amounts due or received from them.) ........
11b
 
12a
Section 4947(a)(1) non-exempt charitable trusts. Is the organization filing Form 990 in lieu of Form 1041?
12a
 
 
b
If “Yes,” enter the amount of tax-exempt interest received or accrued during the year.
12b
 
13
Section 501(c)(29) qualified nonprofit health insurance issuers.
a
Is the organization licensed to issue qualified health plans in more than one state?
Note. All 501(c)(29) organizations must list in Schedule O each state in which they are licensed to issue qualified health plans, the amount of reserves required by each state, and the amount of reserves the organization allocated to each state.
13a
 
 
b
Enter the aggregate amount of reserves the organization is required to maintain by the states in which the organization is licensed to issue qualified health plans.
13b
 
c
Enter the aggregate amount of reserves on hand.
13c
 
14a
Did the organization receive any payments for indoor tanning services during the tax year?.....
14a
 
 
b
If "Yes," has it filed a Form 720 to report these payments? If “No,” provide an explanation in Schedule O..
14b
 
 
Form 990 (2010)
Form 990 (2010)
Page 6
Part VI
Governance, Management, and Disclosure For each “Yes” response to lines 2 through 7b below, and for a “No” response to lines 8a, 8b, or 10b below, describe the circumstances, processes, or changes in Schedule O. See instructions.
Check if Schedule O contains a response to any question in this Part VI . . . . . . . . . .
Section A. Governing Body and Management
Yes
No
1a
Enter the number of voting members of the governing body at the end of the tax year ..............
1a
17
b
Enter the number of voting members included in line 1a, above, who are independent .................
1b
13
2
Did any officer, director, trustee, or key employee have a family relationship or a business relationship with any other officer, director, trustee, or key employee? .................
2
Yes
 
3
Did the organization delegate control over management duties customarily performed by or under the direct supervision of officers, directors or trustees, or key employees to a management company or other person? ..
3
 
No
4
Did the organization make any significant changes to its governing documents since the prior Form 990 was filed?
4
 
No
5
Did the organization become aware during the year of a significant diversion of the organization’s assets? .
5
 
No
6
Does the organization have members or stockholders? ................
6
Yes
 
7a
Does the organization have members, stockholders, or other persons who may elect one or more members of the governing body? .........................
7a
Yes
 
b
Are any decisions of the governing body subject to approval by members, stockholders, or other persons? ..
7b
Yes
 
8
Did the organization contemporaneously document the meetings held or written actions undertaken during the year by the following:
a
The governing body? .........................
8a
Yes
 
b
Each committee with authority to act on behalf of the governing body? ............
8b
Yes
 
9
Is there any officer, director, trustee, or key employee listed in Part VII, Section A, who cannot be reached at the organization’s mailing address? If “Yes,” provide the names and addresses in Schedule O .....
9
 
No
Section B. Policies (This Section B requests information about policies not required by the Internal
Revenue Code.)
Yes
No
10a
Does the organization have local chapters, branches, or affiliates? ............
10a
 
No
b
If “Yes,” does the organization have written policies and procedures governing the activities of such chapters, affiliates, and branches to ensure their operations are consistent with those of the organization? ....
10b
 
 
11a
Has the organization provided a copy of this Form 990 to all members of its governing body before filing the form?
11a
Yes
 
b
Describe in Schedule O the process, if any, used by the organization to review the Form 990. .....
12a
Does the organization have a written conflict of interest policy? If “No,” go to line 13.......
12a
Yes
 
b
Are officers, directors or trustees, and key employees required to disclose annually interests that could give rise to conflicts? ...........................
12b
Yes
 
c
Does the organization regularly and consistently monitor and enforce compliance with the policy? If “Yes,” describe in Schedule O how this is done ....................
12c
Yes
 
13
Does the organization have a written whistleblower policy? ...............
13
Yes
 
14
Does the organization have a written document retention and destruction policy? .........
14
Yes
 
15
Did the process for determining compensation of the following persons include a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision?
a
The organization’s CEO, Executive Director, or top management official ...........
15a
Yes
 
b
Other officers or key employees of the organization ................
15b
Yes
 
If "Yes" to line a or b, describe the process in Schedule O. (See instructions.)
16a
Did the organization invest in, contribute assets to, or participate in a joint venture or similar arrangement with a taxable entity during the year? ......................
16a
 
No
b
If “Yes,” has the organization adopted a written policy or procedure requiring the organization to evaluate its participation in joint venture arrangements under applicable federal tax law, and taken steps to safeguard the organization’s exempt status with respect to such arrangements? ............
16b
 
 
Section C. Disclosure
17
List the States with which a copy of this Form 990 is required to be filedMediumBullet
IL
18
Section 6104 requires an organization to make its Form 1023 (or 1024 if applicable), 990, and 990-T (501(c)(3)s only) available for public inspection. Indicate how you make these available. Check all that apply.
19
Describe in Schedule O whether (and if so, how), the organization makes its governing documents, conflict of interest policy, and financial statements available to the public.
20
State the name, physical address, and telephone number of the person who possesses the books and records of the organization: MediumBullet
ROBERT W KAY SENIOR VP & CFO
701 NORTH FIRST STREET
SPRINGFIELD,IL627810001
(217) 788-3198
Form 990 (2010)
Form 990 (2010)
Page 7
Part VII
Compensation of Officers, Directors,Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors
Check if Schedule O contains a response to any question in this Part VII . . . . . . . . . .
Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees
1a Complete this table for all persons required to be listed. Report compensation for the calendar year ending with or within the organization’s tax year.
RoundBullet List all of the organization’s current officers, directors, trustees (whether individuals or organizations), regardless of amount
of compensation, and current key employees. Enter -0- in columns (D), (E), and (F) if no compensation was paid.

RoundBullet List all of the organization’s current key employees, if any. See instructions for definition of "key employee."
RoundBullet List the organization’s five current highest compensated employees (other than an officer, director, trustee or key employee)
who received reportable compensation (Box 5 of Form W-2 and/or Box 7 of Form 1099-MISC) of more than $100,000 from the
organization and any related organizations.

RoundBullet List all of the organization’s former officers, key employees, or highest compensated employees who received more than $100,000
of reportable compensation from the organization and any related organizations.

RoundBullet List all of the organization’s former directors or trustees that received, in the capacity as a former director or trustee of the
organization, more than $10,000 of reportable compensation from the organization and any related organizations.

List persons in the following order: individual trustees or directors; institutional trustees; officers; key employees; highest
compensated employees; and former such persons.
Check this box if neither the organization nor any related organizations compensated any current or former officer, director, or trustee.
(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
Individual Trustee or Director; Institutional Trustee; Officer; Key Employee; Highest compensated employee; Former;
(1) JOSEPH M HURWITZ
CHAIRMAN
 2.00 X   X       0 0 0
(2) JAMES P BRUNER
1ST VICE CHAIRMAN
 1.70 X   X       0 0 0
(3) JOHN D BLACKBURN
2ND VICE CHAIRMAN
 1.70 X   X       0 0 0
(4) CAROL J HANSEN POSEGATE
SECRETARY
 .80 X   X       0 0 0
(5) DWIGHT H O'KEEFE III
TREASURER (TERM ENDED 12/31/10)
 1.50 X   X       0 0 0
(6) MARK H FERGUSON
IMMEDIATE PAST CHAIRMAN
 1.60 X           0 0 0
(7) DALE M BECKER
TREASURER
 1.50 X   X       0 0 0
(8) CLIFTON R BAXTER
MEMBER
 1.10 X           0 0 0
(9) RICHARD LEVI
MEMBER
 .80 X           0 0 0
(10) WILLIAM R ENLOW
MEMBER
 1.00 X           0 0 0
(11) RANDALL S GERMERAAD
MEMBER
 .80 X           0 0 0
(12) NINA M HARRIS
MEMBER
 1.00 X           0 0 0
(13) LOUIS G LOWER II
MEMBER
 .80 X           0 0 0
(14) HOWARD A PETERS III
MEMBER
 .70 X           0 0 0
(15) DIANE K RUTLEDGE PHD
MEMBER
 1.00 X           0 0 0
(16) SERGIO A PECORI
MEMBER
 1.10 X           0 0 0
(17) WILLIAM D PUTMAN MD
MEMBER
 .90 X           0 0 0
Form 990 (2010)
Form 990 (2010)
Page 8
Part VII
Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (continued)
(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
Individual Trustee or Director; Institutional Trustee; Officer; Key Employee; Highest compensated employee; Former;
(18) EDGAR J CURTIS EX-OFFICIO
PRESIDENT & CEO
 50.00 X   X       666,927 0 458,534
(19) MG NELSON
BOARD MEMBER
 .70 X           0 0 0
(20) MICHAEL W NEUMEISTER MD
BOARD MEMBER
 .70 X           0 0 0
(21) DEAN E ROBERT JR
BOARD MEMBER
 .70 X           0 0 0
(22) ROBERT W KAY
SVP & CFO & ASST TREASURER
 50.00     X       410,448 0 231,627
(23) FORREST G HESTER
SVP & CPO
 50.00       X     492,432 0 66,016
(24) MITCHELL L JOHNSON
SVP & CSO
 50.00       X     372,857 0 59,654
(25) ELAINE L YOUNG
VP FINANCE
 50.00       X     247,187 0 44,482
(26) DOUGLAS RAHN
SVP AND COO
 50.00       X     0 550,825 96,033
(27) RAJESH GOVINDAIAH MD
SVP & CMO
 50.00       X     280,488 0 78,413
(28) DAVID GRAHAM MD
SVP & CIO
 50.00       X     433,583 0 73,337
(29) BRAD WARREN
SVP & CPO
 50.00       X     81,349 100,762 51,840
(30) KEVIN R ENGLAND
VP BUSINESS DEVELOPMENT
 50.00         X   313,740 0 68,774
(31) ANNA N EVANS
VP & GENERAL COUNSEL
 50.00         X   363,853 0 67,301
(32) EDWARD MCDOWALL
VP MRKTG & COMM
 50.00         X   224,715 0 39,291
(33) GARY CROMPTON
VP IS OPERATIONS
 50.00         X   202,759 0 32,732
(34) JOSH SAVAGE
VP SYS QUALY IMPROV
 50.00         X   162,924 0 26,431
(35) ROBERT T CLARKE
FORMER PRESIDENT & CEO
             X 382,201 0 0
1b Sub-Total................MediumBullet
c Total from continuation sheets to Part VII, Section A....MediumBullet
d Total (add lines 1b and 1c)............MediumBullet 4,635,463 651,587 1,394,465
2
Total number of individuals (including but not limited to those listed above) who received more than $100,000 in reportable compensation from the organizationMediumBullet36
Yes
No
3
Did the organization list any former officer, director or trustee, key employee, or highest compensated employee on line 1a? If “Yes,” complete Schedule J for such individual .............
3
Yes
 
4
For any individual listed on line 1a, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000? If “Yes,” complete Schedule J for such individual...........................
4
Yes
 
5
Did any person listed on line 1a receive or accrue compensation from any unrelated organization or individual for services rendered to the organization? If “Yes,” complete Schedule J for such person .....
5
 
No
Section B. Independent Contractors
1
Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from the organization.
(A)
Name and business address 		(B)
Description of services 		(C)
Compensation
HAROLD O'SHEA BUILDERS INC
3401 CONSTITUTION DR
SPRINGFIELD,IL62711 		CONSTRUCTION 5,863,193
CERNER CORPORATION
PO BOX 412702
KANSAS CITY,MO64141 		IT CONSULTING SERVICES 3,551,233
MAINLINE INFORMATION SYSTEMS INC
PO BOX 402989
ATLANTA,GA30384 		IT MAINTENANCE 1,461,899
DELL MARKETING LP INC
PO BOX 802816
CHICAGO,IL60680 		IT CONSULTING SERVICES 1,414,706
MICROSOFT LICENSING GP
1950 N STEMMONS FWY
DALLAS,TX75207 		IT CONSULTING SERVICES 1,060,526
2
Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 in compensation from the organization MediumBullet28
Form 990 (2010)
Form 990 (2010)
Page 9
Part VIII
Statement of Revenue
(A)
Total revenue 		(B)
Related or
exempt
function
revenue 		(C)
Unrelated
business
revenue 		(D)
Revenue
excluded from
tax under sections
512, 513, or 514
Contributions, gifts, grants and other similar amounts 1a Federated campaigns..1a  
b Membership dues....1b  
c Fundraising events....1c  
d Related organizations...1d  
e Government grants (contributions)1e  
f All other contributions, gifts, grants, and
similar amounts not included above1f 		 
g Noncash contributions included in lines 1a-1f:$  
h Total. Add lines 1a-1f.......MediumBullet  
Program Service Revenue Business Code
2a MANAGEMENT FEES 900,099 37,674,163 37,233,986 440,177  
b IT REIMBURSED EXPENSES 900,099 15,469,743 15,469,743    
c PROGRAM RELATED RENT 900,099 4,186,290 4,186,290    
d
e
f All other program service revenue .        
g Total. Add lines 2a–2f........MediumBullet 57,330,196
Other Revenue 3 Investment income (including dividends, interest
and other similar amounts).....MediumBullet 1,035,311     1,035,311
4 Income from investment of tax-exempt bond proceeds..MediumBullet 230     230
5 Royalties............MediumBullet        
(i) Real (ii) Personal
6a Gross Rents 3,953,941  
b Less: rental expenses 4,218,185  
c Rental income or (loss) -264,244  
d Net rental income or (loss).......MediumBullet -264,244     -264,244
(i) Securities (ii) Other
7a Gross amount from sales of assets other than inventory 22,168,827 6,803
b Less: cost or other basis and sales expenses 21,926,614 383,400
c Gain or (loss) 242,213 -376,597
d Net gain or (loss)..........MediumBullet -134,384     -134,384
8a Gross income from fundraising events (not including
$  
of contributions reported on line 1c). See Part IV, line 18 ...
a  
b Less: direct expenses ...b  
c Net income or (loss) from fundraising events..MediumBullet      
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...MediumBullet        
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..MediumBullet        
Miscellaneous Revenue Business Code
11a BILLING SERVICE 561,000 2,196,951   58,681 2,138,270
b 501 BLDG SVCS CHAPA 900,099 908   908  
c            
d All other revenue ....        
e Total. Add lines 11a–11d ......MediumBullet 2,197,859
12 Total revenue. See Instructions....MediumBullet 60,164,968 56,890,019 499,766 2,775,183
Form 990 (2010)
Form 990 (2010)
Page 10
Part IX
Statement of Functional Expenses
Section 501(c)(3) and 501(c)(4) organizations must complete all columns. All other organizations must complete column (A) but are not required to complete columns (B), (C), and (D).
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 21 263,447 263,447
2 Grants and other assistance to individuals in the U.S. See Part IV, line 22 30,000 30,000
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 .... 3,543,355 3,543,355    
6 Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) .... 382,201 382,201    
7 Other salaries and wages 16,999,353 9,651,103 7,348,250  
8 Pension plan contributions (include section 401(k) and section 403(b) employer contributions) .... 1,650,061 952,415 697,646  
9 Other employee benefits ....... 2,589,341 1,274,639 1,314,702  
10 Payroll taxes ........... 1,263,948 703,438 560,510  
11 Fees for services (non-employees):        
a Management ......        
b Legal ......... 650,331   650,331  
c Accounting ........... 317,746   317,746  
d Lobbying ........... 272,238   272,238  
e Professional fundraising. See Part IV, line 17..    
f Investment management fees ...... 205,437   205,437  
g Other .......... 5,382,550 1,983,675 3,398,875  
12 Advertising and promotion .... 292,902   292,902  
13 Office expenses ....... 2,555,140 1,372,290 1,182,850  
14 Information technology ...... 13,126,896 12,980,620 146,276  
15 Royalties ..        
16 Occupancy ........... 2,535,930 1,779,896 756,034  
17 Travel ............ 186,625 58,648 127,977  
18 Payments of travel or entertainment expenses for any federal, state, or local public officials ......        
19 Conferences, conventions, and meetings .... 276,734 213,847 62,887  
20 Interest ........... 700,860 700,860    
21 Payments to affiliates .......        
22 Depreciation, depletion, and amortization ..... 5,955,167 5,797,498 157,669  
23 Insurance .............. 22,037   22,037  
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 MINOR PROJECT COSTS 79,910 79,910 0  
b REPAIRS & MAINTENANCE 54,961 52,872 2,089  
c MISCELLANEOUS 9,932 724 9,208  
d DIETARY SUPPLIES 8,998 2,567 6,431  
e
f All other expenses        
25 Total functional expenses. Add lines 1 through 24f 59,356,100 41,824,005 17,532,095 0
26 Joint costs. Check here MediumBullet 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 		       
Form 990 (2010)
Form 990 (2010)
Page 11
Part X Balance Sheet
(A)
Beginning of year 		(B)
End of year
Assets 1 Cash—non-interest-bearing .......... 122,270 1  
2 Savings and temporary cash investments ....... 2,004,473 2 367,585
3 Pledges and grants receivable, net .........   3  
4 Accounts receivable, net ......... 1,452,398 4 1,520,870
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 ..............   8  
9 Prepaid expenses and deferred charges ............ 1,842,135 9 2,897,908
10a Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D 10a 152,521,951
b Less: accumulated depreciation. ..... 10b 59,939,677 94,500,364 10c 92,582,274
11 Investments—publicly traded securities .......... 36,149,753 11 35,712,978
12 Investments—other securities. See Part IV, line 11 ...... 456,000 12 449,786
13 Investments—program-related. See Part IV, line 11 ..   13  
14 Intangible assets .........   14  
15 Other assets. See Part IV, line 11 ........... 7,715,874 15 5,305,141
16 Total assets. Add lines 1 through 15 (must equal line 34)... 144,243,267 16 138,836,542
Liabilities 17 Accounts payable and accrued expenses . 7,687,078 17 8,255,257
18 Grants payable ..........   18  
19 Deferred revenue .......... 17,716 19 18,071
20 Tax-exempt bond liabilities .......... 15,301,800 20 14,901,357
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 .. 20,470,000 23 19,405,000
24 Unsecured notes and loans payable to unrelated third parties ....   24  
25 Other liabilities. Complete Part X of Schedule D..... 20,287,316 25 20,085,639
26 Total liabilities. Add lines 17 through 25..... 63,763,910 26 62,665,324
Net Assets or Fund Balance Organizations that follow SFAS 117, check here MediumBullet and complete lines 27 through 29, and lines 33 and 34.
27 Unrestricted net assets ..... 80,479,357 27 76,171,218
28 Temporarily restricted net assets .....   28  
29 Permanently restricted net assets .....   29  
Organizations that do not follow SFAS 117, check here MediumBullet 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 ..... 80,479,357 33 76,171,218
34 Total liabilities and net assets/fund balances ..... 144,243,267 34 138,836,542
Form 990 (2010)
Form 990 (2010)
Page 12
Part XI
Reconcilliation of Net Assets
Check if Schedule O contains a response to any question in this Part XI . . . . . . . . . .
1
Total revenue (must equal Part VIII, column (A), line 12) . . .
1
60,164,968
2
Total expenses (must equal Part IX, column (A), line 25) . . . . .
2
59,356,100
3
Revenue less expenses. Subtract line 2 from line 1 . . . .
3
808,868
4
Net assets or fund balances at beginning of year (must equal Part X, line 33, column (A)) . .
4
80,479,357
5
Other changes in net assets or fund balances (explain in Schedule O) . . . .
5
-5,117,007
6
Net assets or fund balances at end of year. Combine lines 3, 4, and 5 (must equal Part X, line 33, column (B)) . . . . . .
6
76,171,218
Part XII
Financial Statements and Reporting
Check if Schedule O contains a response to any question in this Part XII . . . . . . . . . .
Yes
No
1
Accounting method used to prepare the Form 990:  
If the organization changed its method of accounting from a prior year or checked "Other," explain in
Schedule O.
2a
Were the organization’s financial statements compiled or reviewed by an independent accountant?..
2a
 
No
b
Were the organization’s financial statements audited by an independent accountant?........
2b
Yes
 
c
If “Yes,” to 2a or 2b, does the organization have a committee that assumes responsibility for oversight of the audit, review, or compilation of its financial statements and selection of an independent accountant?
If the organization changed either its oversight process or selection process during the tax year, explain in Schedule O............................
2c
Yes
 
d
If “Yes” to line 2a or 2b, check a box below to indicate whether the financial statements for the year were issued on a separate basis, consolidated basis, or both:
3a
As a result of a federal award, was the organization required to undergo an audit or audits as set forth in the Single Audit Act and OMB Circular A-133? ................
3a
Yes
 
b
If “Yes,” did the organization undergo the required audit or audits? If the organization did not undergo the required audit or audits, explain why in Schedule O and describe any steps taken to undergo such audits. ..
3b
Yes
 
Form 990 (2010)
Additional Data


Software ID:  
Software Version:  
Form 990, Special Condition Description:
Special Condition Description
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.
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
MEMORIAL HEALTH SYSTEM
 
Employer identification number

37-1110690
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.)
1
2
3
4
5
section 170(b)(1)(A)(iv). (Complete Part II.)
6
7
8
9
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.)
10
11
e
f
g
(i) a person who directly or indirectly controls, either alone or together with persons described in (ii)
Yes
No
and (iii) below, the governing body of the the supported organization? ................
11g(i)
 
No
(ii) a family member of a person described in (i) above? ......................
11g(ii)
 
No
(iii) a 35% controlled entity of a person described in (i) or (ii) above? ................
11g(iii)
 
No
h
(i)
Name of supported organization 		(ii)
EIN 		(iii)
Type of organization (described on lines 1- 9 above or IRC section (see instructions)) 		(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?
Yes No Yes No Yes No
(1) MEMORIAL MEDICAL CENTER
  		370661220 3   No Yes   Yes   0
(2) MEMORIAL HOME SERVICES
  		370714225 9   No Yes   Yes   450,000
(3) ABRAHAM LINCOLN MEMORIAL HOSPITAL
  		370723793 3   No Yes   Yes   0
(4) TAYLORVILLE MEMORIAL HOSPITAL
  		370661250 3   No Yes   Yes   0
(5) MENTAL HEALTH CENTERS OF CENTRAL ILLINOIS
  		370646367 7   No Yes   Yes   0
(6) SPRINGFIELD RESIDENTIAL SERVICES
  		371298589 9   No Yes   Yes   0
(7) ABRAHAM LINCOLN HEALTHCARE FOUNDATION
  		363492268 7   No Yes   Yes   0
(8) MEMORIAL MEDICAL CENTER FOUNDATION
  		371110301 7   No Yes   Yes   0
Total                 450,000

For Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 11285F
Schedule A (Form 990 or 990-EZ) 2010
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).            
12
12
 
13
Section C. Computation of Public Support Percentage
14
14
 
15
15
 
16a
b
17a
b
18
Schedule A (Form 990 or 990-EZ) 2010
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.).            
14
Section C. Computation of Public Support Percentage
15
15
 
16
16
 
Section D. Computation of Investment Income Percentage
17
17
 
18
18
 
19a
b
20
Schedule A (Form 990 or 990-EZ) 2010
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:  
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
MEMORIAL HEALTH SYSTEM
 
Employer identification number

37-1110690
Part I-A
Complete if the organization is exempt under section 501(c) or is a section 527 organization.

1
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.
2
Political expenditures ....................................SchCMd Bullet
$  
3
Volunteer hours ........................................
 

Part I-B
Complete if the organization is exempt under section 501(c)(3).
1
Enter the amount of any excise tax incurred by the organization under section 4955 .........SchCMd Bullet
$  
2
Enter the amount of any excise tax incurred by organization managers under section 4955 ......SchCMd Bullet
$  
3
If the organization incurred a section 4955 tax, did it file Form 4720 for this year? ..............
4a
Was a correction made? .........................................
b
If "Yes," describe in Part IV.
Part I-C
Complete if the organization is exempt under section 501(c) except section 501(c)(3).
1
Enter the amount directly expended by the filing organization for section 527 exempt function activities SchCMd Bullet
$  
2
Enter the amount of the filing organization's funds contributed to other organizations for section 527 exempt funtion activities ....................................SchCMd Bullet

$  
3
Total exempt function expenditures. Add lines 1 and 2. Enter here and on Form 1120-POL, line 17b..SchCMd Bullet

$  
4
Did the filing organization file Form 1120-POL for this year? ..........................
5
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

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
B Check
Limits on Lobbying Expenditures
(The term "expenditures" means amounts paid or incurred.) 		(a) Filing
Organization's
Totals 		(b) Affiliated Group
Totals
1a Total lobbying expenditures to influence public opinion (grass roots lobbying) ......    
b Total lobbying expenditures to influence a legislative body (direct lobbying) .......    
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? ......................................

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


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
No
(b)
Amount
1
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:
a
Volunteers? .........................................
 
No
b
Paid staff or management (include compensation in expenses reported on lines 1c through 1i)? ....
 
No
c
Media advertisements? ....................................
 
No
 
d
Mailings to members, legislators, or the public? .........................
 
No
 
e
Publications, or published or broadcast statements? .......................
 
No
 
f
Grants to other organizations for lobbying purposes? .......................
 
No
 
g
Direct contact with legislators, their staffs, government officials, or a legislative body? ........
 
No
 
h
Rallies, demonstrations, seminars, conventions, speeches, lectures, or any similar means? ......
 
No
 
i
Other activities? If "Yes," describe in Part IV ..........................
Yes
 
272,238
j
Total. lines 1c through 1i ...................................
272,238
2a
Did the activities in line 1 cause the organization to be not described in section 501(c)(3)? .....
 
No
b
If "Yes," enter the amount of any tax incurred under section 4912 .................
 
c
If "Yes," enter the amount of any tax incurred by organization managers under section 4912 .....
 
d
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
No
1
Were substantially all (90% or more) dues received nondeductible by members? ................
1
 
 
2
Did the organization make only in-house lobbying expenditures of $2,000 or less? ................
2
 
 
3
Did the organization agree to carryover lobbying and political expenditures from the prior year? ..........
3
 
 
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”.
1
Dues, assessments and similar amounts from members .....................
1
 
2
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).
a
Current year .........................................
2a
 
b
Carryover from last year ....................................
2b
 
c
Total ...........................................
2c
 
3
Aggregate amount reported in section 6033(e)(1)(A) notices of nondeductible section 162(e) dues .
3
 
4
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? ................................
4
 
5
Taxable amount of lobbying and political expenditures (see instructions) ..............
5
 
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: MEMORIAL HEALTH SYSTEM ENGAGES LOBBYISTS TO ASSIST IT IN SECURING FEDERAL GRANTS AND MONITORING STATE REGULATIONS IN SUPPORT OF FURTHERING THE MEMORIAL HEALTH SYSTEM MISSION, WHICH IS "TO IMPROVE THE HEALTH OF THE PEOPLE AND COMMUNITIES WE SERVE". THIS INCLUDES ASSISTING MEMORIAL HEALTH SYSTEM IN DEVELOPING PRESENTATIONS TO THE ILLINOIS CONGRESSIONAL DELEGATION REQUESTING APPROPRIATIONS FOR PRIORITY PROJECTS INVOLVING LOCAL PATIENT SAFETY, QUALITY IMPROVEMENT AND IMPROVED LOCAL ACCESS TO MEDICAL CARE. THE LOBBYISTS ALSO ASSIST MEMORIAL IN COMMUNICATING THE IMPORTANCE OF ADEQUATE MEDICAID FUNDING IN SUPPORT OF THE SUBSTANTIAL SERVICES MEMORIAL'S AFFILIATES PROVIDE TO THOSE IN POVERTY AND IN MONITORING LEGISLATIVE AND REGULATORY DEVELOPMENTS THAT WOULD AFFECT MEMORIAL HEALTH SYSTEM'S ABILITY TO CONTINUE DELIVERING ITS ALREADY SUBSTANTIAL COMMUNITY BENEFIT.
Schedule C (Form 990 or 990EZ) 2010

Additional Data


Software ID:  
Software Version:  

SCHEDULE D
(Form 990)
Department of the Treasury
Internal Revenue Service
Supplemental Financial Statements
SchDMd Bullet 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
MEMORIAL HEALTH SYSTEM
 
Employer identification number

37-1110690
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 .......    
5
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? ............
6
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. ...................................
Part II
Conservation Easements. Complete if the organization answered "Yes" to Form 990, Part IV, line 7.
1
Purpose(s) of conservation easements held by the organization (check all that apply).
2
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.
Held at the End of the 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  
3
Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during
the taxable year SchDMd Bullet  
4
Number of states where property subject to conservation easement is located SchDMd Bullet  
5
Does the organization have a written policy regarding the periodic monitoring, inspection, handling of violations, and
enforcement of the conservation easements it holds? .............................
6
Staff and volunteer hours devoted to monitoring, inspecting and enforcing conservation easements during the year SchDMd Bullet  
7
Amount of expenses incurred in monitoring, inspecting, and enforcing conservation easements during the year SchDMd Bullet $  
8
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)? ....................................
9
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.
1a
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.
b
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 $  
2
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:
a
Revenues included in Form 990, Part VIII, line 1 ..........................SchDMd Bullet $  
b
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

Schedule D (Form 990) 2010
Page 2
Part III
Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued)
3
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):
a
d
b
e
 
c
4
Provide a description of the organization’s collections and explain how they further the organization’s exempt purpose in
Part XIV.
5
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?........
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.
1a
Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets not
included on Form 990, Part X? ....................................
b
If "Yes," explain the arrangement in Part XIV and complete the following table:
Amount
c Beginning balance ................................. 1c  
d Additions during the year .............................. 1d  
e Distributions during the year ............................. 1e  
f Ending balance ................................... 1f  
2a
Did the organization include an amount on Form 990, Part X, line 21? .....................
b
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 ......      
2
Provide the estimated percentage of the year end balance held as:
a
Board designated or quasi-endowment: SchDMd Bullet  
b
Permanent endowment: SchDMd Bullet  
c
Term endowment: SchDMd Bullet  
3a
Are there endowment funds not in the possession of the organization that are held and administered for the
organization by:

Yes
No
(i) unrelated organizations ........................
3a(i)
 
 
(ii) related organizations ........................
3a(ii)
 
 
b
If "Yes" to 3a(ii), are the related organizations listed as required on Schedule R? .........
3b
 
 
4
Describe in Part XIV the intended uses of the organization's endowment funds.
Part VI
Investments—Land, Buildings, and Equipment. See Form 990, Part X, line 10.
Description of investment (a) Cost or other basis (investment) (b)Cost or other basis (other) (c) Accumulated depreciation (d) Book value
1a Land ................. 251,493 18,705,037 18,956,530
b Buildings ................ 42,052,151 36,786,712 16,865,017 61,973,847
c Leasehold improvements ............        
d Equipment ................ 1,279,710 49,576,544 42,155,649 8,700,604
e Other ................. 768,159 3,102,145 919,011 2,951,293
Total. Add lines 1a-1e. (Column (d) should equal Form 990, Part X, column (B), line 10(c).)........SchDMdBullet 92,582,274
Schedule D (Form 990) 2010

Schedule D (Form 990) 2010
Page 3
Part VII
Investments—Other 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.)Small Bullet  
Part VIII
Investments—Program 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.)Small Bullet  
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.)...........Small Bullet  
Part X
Other Liabilities. See Form 990, Part X, line 25.
1.(a) Description of Liability (b) Amount
Federal Income Taxes  
DEFERRED COMPENSATION 9,869,921
WORKERS' COMPENSATION 368,949
RESERVE FOR POST EMPLOYMENT BENEFITS 2,218,833
DUE TO AFFILIATES 64,288
SWAP LIABILITY 4,455,987
SERP 3,107,661



Total. (Column (b) should equal Form 990, Part X, col.(B) line 25.)Small Bullet 20,085,639
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

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 60,164,968
2 Total expenses (Form 990, Part IX, column (A), line 25) ..................... 2 59,356,100
3 Excess or (deficit) for the year. Subtract line 2 from line 1 ............. 3 808,868
4 Net unrealized gains (losses) on investments .......................... 4 -1,904,938
5 Donated services and use of facilities ............................. 5  
6 Investment expenses ................................... 6  
7 Prior period adjustments .................................. 7  
8 Other (Describe in Part XIV) ................................. 8 -3,212,069
9 Total adjustments (net). Add lines 4 - 8 ............................. 9 -5,117,007
10 Excess or (deficit) for the year per financial statements. Combine lines 3 and 9 ......... 10 -4,308,139
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 48,707,973
2 Amounts included on line 1 but not on Form 990, Part VIII, line 12:
a Net unrealized gains on investments .......... 2a  
b Donated services and use of facilities ......... 2b  
c Recoveries of prior year grants ........... 2c  
d Other (Describe in Part XIV): ............ 2d  
e Add lines 2a through 2d ..................... 2e 0
3 Subtract line 2e from line 1..................... 3 48,707,973
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 205,437
b Other (Describe in Part XIV): ........... 4b 11,251,558
c Add lines 4a and 4b....................... 4c 11,456,995
5 Total Revenue. Add lines 3 and 4c. (This should equal Form 990, Part I, line 12.) ...... 5 60,164,968
Part XIII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return
1 Total expenses and losses per audited financial statements ............. 1 49,677,271
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 -9,209,945
e Add lines 2a through 2d...................... 2e -9,209,945
3 Subtract line 2e from line 1..................... 3 58,887,216
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 205,437
b Other (Describe in Part XIV): ............ 4b 263,447
c Add lines 4a and 4b....................... 4c 468,884
5 Total expenses. Add lines 3 and 4c. (This should equal Form 990, Part I, line 18.) ...... 5 59,356,100
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: THE ORGANIZATION COMPLETES AN EVALUATION OF ITS LIABILITY FOR UNCERTAIN TAX POSITIONS UNDER FIN 48 EACH YEAR. FOR FY10, NO UNCERTAIN TAX POSITIONS WERE IDENTIFIED, SO A FOOTNOTE WAS NOT REQUIRED. EFFECTIVE OCTOBER 1, 2008, MEMORIAL HEALTH SYSTEM ADOPTED GUIDANCE PROVIDED BY THE RECOGNITION SUBSECTION OF THE INCOME TAXES TOPIC OF THE FASB ACCOUNTING STANDARDS CODIFICATION. THIS SUBTOPIC PRESCRIBES A RECOGNITION THRESHOLD AND MEASUREMENT ATTRIBUTE FOR THE FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT OF A TAX POSITION TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. ADOPTION OF THIS GUIDANCE DID NOT HAVE A MATERIAL IMPACT ON THE CONSOLIDATED BALANCE SHEETS, CONSOLIDATED STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS, AND CONSOLIDATED STATEMENTS OF CASH FLOWS.
PART XI, LINE 8 - OTHER ADJUSTMENTS:   NONOPERATING RECONCILING ITEMS -51,554. CHANGE IN UNRESTRICTED NET ASSETS -3,160,515.
PART XII, LINE 4B - OTHER ADJUSTMENTS:   REALIZED LOSSES REIMBURSED IT EXPENSES 15,469,743. RENTAL EXPENSES REPORTED IN F/S AS EXPENSE 990 AS NET -4,218,185.
PART XIII, LINE 2D - OTHER ADJUSTMENTS:   RENTAL EXPENSES INCLUDED IN 990 REVENUE 4,218,185. REIMBURSED IT EXPENSES -15,469,743. NONOPERATING CHANGE IN FAIR VALUE OF INTEREST RATE SWAP 128,066. NONOPERATING OTHER EXPENSE 8,609. REALIZED LOSSES 1,904,938. OTHER REIMBURSED EXPENSES RECLASSED TO UBI
PART XIII, LINE 4B - OTHER ADJUSTMENTS:   NONOPERATING CONTRIBUTION EXPENSE 263,447.
Schedule D (Form 990) 2010

Additional Data


Software ID:  
Software Version:  




Schedule I
(Form 990)
Department of the Treasury
Internal Revenue Service
Grants and Other Assistance to Organizations,
Governments and Individuals in the United States
Complete if the organization answered "Yes," to Form 990, Part IV, line 21 or 22.
lBullet Attach to Form 990
OMB No. 1545-0047
2010
Open to Public
Inspection
Name of the organization
MEMORIAL HEALTH SYSTEM
 
Employer identification number
37-1110690
Part I
General Information on Grants and Assistance
1
Does the organization maintain records to substantiate the amount of the grants or assistance, the grantees' eligibility for the grants or assistance, and
the selection criteria used to award the grants or assistance? ....................................
2
Describe in Part IV the organization's procedures for monitoring the use of grant funds in the United States.
Part II
Grants and Other Assistance to Governments and Organizations in the United States. Complete if the organization answered "Yes" to
Form 990, Part IV, line 21 for any recipient that received more than $5,000. Check this box if no one recipient received more than $5,000. Use
Part IV and Schedule I-1 (Form 990) if additional space is needed ......................... lBullet
(a) Name and address of organization
or government		 (b) EIN (c) IRC Code section
if applicable		 (d) Amount of cash grant (e) Amount of non-cash
assistance		 (f) Method of valuation
(book, FMV, appraisal,
other)		 (g) Description of
non-cash assistance		 (h) Purpose of grant
or assistance
(1) LINCOLN LAND COMMUNITY COLLEGE FOUNDATION5250 SHEPHERD ROAD
SPRINGFIELD,IL62794 		37-1360597 501(C)(3) 40,000       PROVIDE SUPPORT FOR FURNISHINGS, FIXTURES AND EQUIPMENT FOR NEW LOCATION.
(2) GREATER SPRINGFIELD CHAMBER OF COMMERCE1011 S SECOND STREET
SPRINGFIELD,IL62704 		37-0710280 501(C)(6) 50,000       PARTICIPATE IN A PUBLIC AND PRIVATE ECONOMIC GROWTH PARTNERSHIP LED BY THE CHAMBER OF COMMERCE.
(3) SPRINGFIELD URBAN LEAGUE INC100 N 11TH STREET
SPRINGFIELD,IL62703 		37-0765550 501(C)(3) 15,000       PROVIDE SUPPORT FOR ANNUAL AWARD DINNERS.
(4) SOUTHERN ILLINOIS UNIVERSITY SCHOOL OF MEDICINEPO BOX 19602
SPRINGFIELD,IL62702 		37-6005961 501(A)(1) 27,430       PROVIDE SUPPORT FOR HEALTH EDUCATION EVENTS AND COMMUNITY EVENTS.
(5) UNITED WAY OF CENTRAL ILLINOIS INC1999 WEST WABASH AVENUE SUITE 107
SPRINGFIELD,IL62704 		37-0716060 501(C)(3) 88,822       SUPPORT FOR UNITED WAY COMMUNITY FUND.
(6) PRAIRIE EDUCATION & RESEARCH COOPERATIVE317 N 5TH STREET
SPRINGFIELD,IL62701 		37-1157915 501(C)(3) 5,000       PROVIDE SUPPORT FOR HEALTH EDUCATION EVENTS.
(7) HOSPITAL SISTERS MISSION INCPO BOX 1665
SPRINGFIELD,IL62705 		35-2271729 501(C)(3) 10,000       PROVIDE SUPPORT FOR A COMMUNITY EVENT.
(8) FELLOWSHIP OF CHRISTIAN ATHLETES5250 S 6TH STREET
SPRINGFIELD,IL62703 		44-0610626 501(C)(3) 10,000       PROVIDE SUPPORT FOR ANNUAL DINNER.








2
Enter total number of section 501(c)(3) and government organizations ......................... Bullet Image
7
3
Enter total number of other organizations ................................ . Bullet Image
1
For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50055P
Schedule I (Form 990) 2010

Schedule I (Form 990) 2010
Page 2
Part III
Grants and Other Assistance to Individuals in the United States. Complete if the organization answered "Yes" to Form 990, Part IV, line 22.
Use Schedule I-1 (Form 990) if additional space is needed.
(a)Type of grant or assistance (b)Number of
recipients		 (c)Amount of
cash grant		 (d)Amount of
non-cash assistance		 (e)Method of valuation (book,
FMV, appraisal, other)		 (f)Description of non-cash assistance
(1) EDUCATIONAL GRANT - EDUCATIONAL GRANT WAS ISSUED TO INDIVIDUAL FOR REPAYMENT OF STUDENT DEBT. IN RETURN, THE INDIVIDUAL AGREED TO WORK FOR MEMORIAL AS DIRECTOR OF BUSINESS DEVELOPMENT AND SUPPORT. MEMORIAL AGREED TO GRANT SO THAT EMPLOYEE CAN BE EMPLOYED BY MEMORIAL. 1 30,000      













Part IV
Supplemental Information. Complete this part to provide the information required in Part I, line 2, and any other additional information.
Identifier Return Reference Explanation
PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: MHS PROVIDES GRANTS PRIMARILY TO LOCALLY MANAGED 501(C)(3) ORGANIZATIONS WHO SUPPORT OR SHARE OUR VISION AND MISSION. THE ORGANIZATION HAS EMPLOYEES WHO ARE VOLUNTEER BOARD MEMBERS OF THE ORGANIZATION THAT WE ASSIST IN ORDER TO ENSURE THAT THE MISSION OF THE ORGANIZATION IS IN CONSISTENT WITH THE MHS MISSION. ADDITIONALLY, PROCEDURES ARE IN PLACE TO MONITOR AND ENSURE THAT GRANTS ARE USED FOR THEIR PRESCRIBED PURPOSE.
Schedule I (Form 990) 2010


Additional Data


Software ID:  
Software Version:  


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
MEMORIAL HEALTH SYSTEM
 
Employer identification number

37-1110690
Part I
Questions Regarding Compensation
Yes
No
1a
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.
b
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....
1b
Yes
 
2
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? ....
2
Yes
 
3
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.
4
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:
a
Receive a severance payment or change-of-control payment? ...............
4a
 
No
b
Participate in, or receive payment from, a supplemental nonqualified retirement plan? ........
4b
Yes
 
c
Participate in, or receive payment from, an equity-based compensation arrangement? ........
4c
 
No
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.
5
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:
a
The organization? ...........................
5a
 
No
b
Any related organization? .........................
5b
 
No
If "Yes," to line 5a or 5b, describe in Part III.
6
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:
a
The organization? ...........................
6a
 
No
b
Any related organization? .........................
6b
 
No
If "Yes," to line 6a or 6b, describe in Part III.
7
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 ............
7
Yes
 
8
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 .............................
8
 
No
9
If "Yes" to line 8, did the organization also follow the rebuttable presumption procedure described in Regulations section 53.4958-6(c)? .........................
9
 
 
For Privacy Act and Paperwork Reduction Act Notice, see the Intructions for Form 990
Cat. No. 50053T
Schedule J (Form 990) 2010

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
(i) Base compensation (ii) Bonus & incentive compensation (iii) Other reportable compensation
(1) EDGAR J CURTIS EX-OFFICIO (i)
(ii)		 640,422
0 		0
0 		26,505
0 		452,498
0 		6,036
0 		1,125,461
0 		0
0
(2) ROBERT W KAY (i)
(ii)		 364,084
0 		0
0 		46,364
0 		201,735
0 		29,892
0 		642,075
0 		0
0
(3) FORREST G HESTER (i)
(ii)		 261,678
0 		101,128
0 		129,626
0 		45,125
0 		20,891
0 		558,448
0 		0
0
(4) MITCHELL L JOHNSON (i)
(ii)		 252,559
0 		93,704
0 		26,594
0 		41,667
0 		17,987
0 		432,511
0 		0
0
(5) ELAINE L YOUNG (i)
(ii)		 190,359
0 		51,971
0 		4,857
0 		25,047
0 		19,435
0 		291,669
0 		0
0
(6) DOUGLAS RAHN (i)
(ii)		 0
383,574 		0
146,896 		0
20,355 		0
64,489 		0
31,544 		0
646,858 		0
0
(7) RAJESH GOVINDAIAH MD (i)
(ii)		 217,032
0 		57,750
0 		5,706
0 		40,855
0 		37,558
0 		358,901
0 		0
0
(8) DAVID GRAHAM MD (i)
(ii)		 297,776
0 		116,116
0 		19,691
0 		51,693
0 		21,644
0 		506,920
0 		0
0
(9) BRAD WARREN (i)
(ii)		 51,664
100,433 		27,728
0 		1,957
329 		3,364
10,092 		9,692
28,692 		94,405
139,546 		0
0
(10) KEVIN R ENGLAND (i)
(ii)		 233,351
0 		64,775
0 		15,614
0 		31,355
0 		37,419
0 		382,514
0 		0
0
(11) ANNA N EVANS (i)
(ii)		 249,890
0 		70,454
0 		43,509
0 		33,839
0 		33,462
0 		431,154
0 		0
0
(12) EDWARD MCDOWALL (i)
(ii)		 171,067
0 		47,105
0 		6,543
0 		23,004
0 		16,287
0 		264,006
0 		0
0
(13) GARY CROMPTON (i)
(ii)		 147,708
0 		40,821
0 		14,230
0 		16,625
0 		16,107
0 		235,491
0 		0
0
(14) JOSH SAVAGE (i)
(ii)		 123,117
0 		34,285
0 		5,522
0 		13,963
0 		12,468
0 		189,355
0 		0
0
(15) ROBERT T CLARKE (i)
(ii)		 0
0 		0
0 		382,201
0 		0
0 		0
0 		382,201
0 		0
0

Schedule J (Form 990) 2010

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 4B PART I, LINE 4B THE ORGANIZATION PROVIDES CERTAIN SUPPLEMENTAL RETIREMENT BENEFITS TO THE FOLLOWING OFFICERS AND KEY EMPLOYEES: EDGAR J. CURTIS, $143,804, ROBERT W. KAY, $51,493, DOUGLAS L. RAHN, $54,775, FORREST G. HESTER, $21,758, MITCHELL L. JOHNSON, $34,561, ELAINE L. YOUNG, $19,730, KEVIN R. ENGLAND, $25,182, ANNA N. EVANS, $27,520, DAVID GRAHAM, M.D., $42,827, GARY CROMPTON $16,466, RAJESH GOINDAIAH $42,600, EDWARD MCDOWALL, JOSH SAVAGE $3,571, AND BRAD WARREN 28,841. THESE BENEFITS ARE PROVIDED THROUGH A NONQUALIFIED DEFERRED COMPENSATION PLAN, UNDER WHICH THE BENEFITS BEING EARNED ARE SUBJECT TO A "SUBSTANTIAL RISK OF FORFEITURE." THE SUPPLEMENTAL RETIREMENT BENEFITS ARE STRUCTURED TO PROVIDE A RETENTION INCENTIVE THAT HAS BEEN DETERMINED BY THE LEADERSHIP COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS OF MEMORIAL HEALTH SYSTEM TO BE OF SUBSTANTIAL VALUE TO THE ORGANIZATION. TO BECOME ENTITLED TO THE BENEFITS PROVIDED, EACH COVERED EMPLOYEE MUST MEET SUBSTANTIAL REQUIREMENTS RELATING TO FURTHER EMPLOYMENT. UNTIL THOSE REQUIREMENTS ARE SATISFIED, IF EVER, THE EMPLOYEE IS NOT ENTITLED TO THESE AMOUNTS. IF THE EMPLOYEE WERE TO HAVE TERMINATED EMPLOYMENT VOLUNTARILY IN THE YEAR TO WHICH THIS RETURN APPLIES AND NOT MET THESE SUBSTANTIAL REQUIREMENTS, THESE SUPPLEMENTAL RETIREMENT BENEFITS WOULD HAVE BEEN FORFEITED. THESE SUPPLEMENTAL RETIREMENT BENEFITS ARE PART OF A RETIREMENT PROGRAM THAT PROVIDES RETIREMENT INCOME FOR ALL YEARS OF SERVICE THAT THE EMPLOYEE PROVIDES TO THE ORGANIZATION. ACCORDINGLY, ANY RETIREMENT BENEFITS SHOULD BE VIEWED AS APPLYING TO THE ENTIRE LENGTH OF THE EMPLOYEE'S SERVICE. THE LEADERSHIP COMPENSATION COMMITTEE OF THE MHS BOARD APPROVES ALL RETIREMENT BENEFITS, TOGETHER WITH ALL OTHER FORMS OF COMPENSATION AND BENEFITS FOR THESE AND OTHER SENIOR LEADERS, IN A MANNER INTENDED TO QUALIFY FOR THE "REBUTTABLE PRESUMPTION OF REASONABLENESS" UNDER FEDERAL INCOME TAX LAW.
  PART I, LINE 7 MEMBERS OF SENIOR MANAGEMENT RECEIVE INCENTIVE COMPENSATION UNDER THE ANNUAL INCENTIVE COMPENSATION PLANS SPONSORED BY MEMORIAL HEALTH SYSTEM. THESE AMOUNTS ARE INCLUDED IN SCHEDULE J, PART II, COLUMN (B)(II). THE PLANS ARE DESIGNED TO CONDITION A PORTION OF COMPENSATION ON PERFORMANCE AGAINST PRE-DETERMINED ORGANIZATIONAL GOALS APPROVED IN ADVANCE BY THE EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS OF MEMORIAL HEALTH SYSTEM. THE LEADERSHIP COMPENSATION COMMITTEE OF THE BOARD HAS REVIEWED THE REASONABLENESS OF ALL SUCH PAYMENTS, AND HAS CONCLUDED, AS THE RESULT OF A PROCESS THAT IS DESIGNED TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER FEDERAL TAX LAW, THAT ALL SUCH AMOUNTS ARE REASONABLE AND DO NOT EXCEED FAIR MARKET VALUE FOR THE SERVICES PROVIDED.
Schedule J (Form 990) 2010

Additional Data


Software ID:  
Software Version:  
Schedule K
(Form 990)
Department of the Treasury
Internal Revenue Service
Supplemental Information on Tax Exempt Bonds
SchKMediumBullet Complete if the organization answered "Yes" to Form 990, Part IV, line 24a. Provide descriptions,
explanations, and any additional information in Schedule O (Form 990).
SchKMediumBullet Attach to Form 990. SchKMediumBullet See separate instructions.
OMB No. 1545-0047
2010
Open to Public
Inspection
Name of the organization
MEMORIAL HEALTH SYSTEM
 
Employer identification number
37-1110690
Part I
Bond Issues
(a) Issuer Name (b) Issuer EIN (c) CUSIP # (d) Date Issued (e) Issue Price (f) Description of Purpose (g) Defeased (h) On
Behalf of
Issuer 		(i) Pool
financing
Yes No Yes No Yes No
A ILLINOIS HEALTH FACILITIES AUTHORITY
  		36-2780046 45200P2U4 12-17-2003 31,000,000 SEE SCHEDULE O   X   X   X
B ILLINOIS FINANCE AUTHORITY
  		86-1091967 45200FJ59 12-22-2009 147,401,639 SEE SCHEDULE O   X   X   X
Part II
Proceeds
A B C D
1 Amount of bonds retired. . . . .        
2 Amount of bonds defeased . . . .        
3 Total proceeds of issue . . . . 31,091,579 147,547,332    
4 Gross proceeds in reserve funds . . 11,076,408 11,076,408    
5 Capitalized interest from proceeds.        
6 Proceeds in refunding escrow. . . . . 11,406,560      
7 Issuance costs from proceeds . . . 329,438 1,350,000    
8 Credit enhancement from proceeds. 110,306      
9 Working capital expenditures from proceeds . .        
10 Capital expenditures from proceeds . . 19,245,275 135,120,924    
11 Other spent proceeds . .        
12 Other unspent proceeds. . .        
13 Year of substantial completion . . . 2004 2011
Yes No Yes No Yes No Yes No
14 Were the bonds issued as part of a current refunding issue? X     X        
15 Were the bonds issued as part of an advance refunding issue?   X   X        
16 Has the final allocation of proceeds been made? . . X     X        
17 Does the organization maintain adequate books and records to support the final allocation of proceeds? . X   X          
Part III
Private Business Use
A B C D
Yes No Yes No Yes No Yes No
1 Was the organization a partner in a partnership, or a member of an LLC, which owned property financed by tax-exempt bonds? . . .   X   X        
2 Are there any lease arrangements that may result in private business use of bond-financed property? . . . . . X   X          
For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50193E
Schedule K (Form 990) 2010
Schedule K (Form 990) 2010
Page 2
Part III
Private Business Use (Continued)
A B C D
Yes No Yes No Yes No Yes No
3a Are there any management or service contracts that may result in private business use? X   X          
b Are there any research agreements that may result in private business use of bond-financed property? . . X   X          
c Does the organization routinely engage bond counsel or other outside counsel to review any management or service contracts or research agreements relating to the financed property? .   X   X        
4 Enter the percentage of financed property used in a private business use by entities other than a section 501(c)(3) organization or a state or local government . . . . . . . . . . . . . SchKMediumBullet 0 % 0.150 %    
5 Enter the percentage of financed property used in a private business use as a result of unrelated trade or business activity carried on by your organization, another section 501(c)(3) organization, or a state or local government . SchKMediumBullet 1.270 % 2.740 %    
6 Total of lines 4 and 5 . . .. . . . . . 1.270 % 2.890 %    
7 Has the organization adopted management practices and procedures to ensure the post-issuance compliance of its tax-exempt bond liabilities? X   X          
Part IV
Arbitrage
A B C D
Yes No Yes No Yes No Yes No
1 Has a Form 8038-T, Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate, been filed with respect to the bond issue? . . . X     X        
2 Is the bond issue a variable rate issue? X     X        
3a Has the organization or the governmental issuer entered into a hedge with respect to the bond issue? X     X        
b Name of provider . PIPER JAFFRAY & CO
  		NA
  		 
  		 
 
c Term of hedge . . 12.000000000000      
d Was the hedge superintegrated? .   X            
e Was a hedge terminated? .   X            
4a Were gross proceeds invested in a GIC? .   X   X        
b Name of provider . NA
  		NA
  		 
  		 
 
c Term of GIC . .        
d Was the regulatory safe harbor for establishing the fair market value of the GIC satisfied? .                
5 Were any gross proceeds invested beyond an available temporary period? .   X   X        
6 Did the bond issue qualify for an exception to rebate? . . .   X   X        
Schedule K (Form 990) 2010

Schedule K (Form 990) 2010
Page 3
Part V
Supplemental Information
Complete this part to provide additional information for responses to questions on Schedule K (see instructions).
Identifier Return Reference Explanation
SCHEDULE K SUPPLENTAL INFORMATION   SCHEDULE K: ONE SCHEDULE K WAS COMPLETED AT THE PARENT LEVEL ONLY. HOWEVER, EACH AFFILIATE IS STILL SHOWING ITS ALLOCATION OF THE LIABILITY ON THE BALANCE SHEET. SCHEDULE K PART I, COLUMN (F) CONTINUATIONS: THE PURPOSE OF THE 2003 ISSUE WAS TO REFUND THE 1993 SERIES ISSUED ON 8/5/93 IN THE AMOUNT OF $11,406,560. PROCEEDS WERE ALSO USED TO PAY ISSUANCE EXPENSES AND TO PURCHASE EQUIPMENT AND SOFTWARE FOR MEMORIAL HEALTH SYSTEM. PROCEEDS WERE ALSO USED FOR CONSTRUCTION AND BUILDING IMPROVEMENTS AND TO CONSTRUCT AND EQUIP AN OUTPATIENT PSYCHIATRIC FACILITY. THE PURPOSE OF THE 2009 ISSUE WAS TO PAY ISSUANCE COSTS, CONSTRUCT AND EQUIP A REPLACEMENT HOSPITAL FACILITY FOR ABRAHAM LINCOLN MEMORIAL HOSPITAL, RENOVATE AND REMODEL TAYLORVILLE MEMORIAL HOSPITAL, RENOVATE, REMODEL, AND EQUIP MEMORIAL MEDICAL CENTER, CONSTRUCT A PARKING GARAGE ADJACENT TO MEMORIAL MEDICAL CENTER, CONSTRUCT AND EQUIP A WOUND CARE CENTER, RENOVATE A PAIN CLINIC, CONSTRUCT AND EQUIP A CONSOLIDATED IMAGING SERVICES AREA, PURCHASE VARIOUS PARCELS OF REAL PROPERTY IN SPRINGFIELD, IL AND TAYLORVILLE, IL FOR FUTURE EXPANSION OF EXISTING FACILITIES, CONSTRUCT AND EQUIP A SPACE FOR PHYSICAL THERAPY WITHIN THE NEW YMCA IN SPRINGFIELD, IL, AND ROUTINE CAPITAL EXPENDITURES. SCHEDULE K PART II, LINE 13: FOR THE 2009 ISSUANCE, AS OF SEPTEMBER 30, 2011 THE PROJECTS ARE SUBSTANTIALLY COMPLETE. SCHEDULE K PART II, LINE 16: FOR THE 2009 ISSUANCE, THE BALANCE OF WHAT HAS NOT BEEN SPENT IS IN RESERVE FUNDS. SCHEDULE K PART III, LINE 3C: MEMORIAL HEALTH SYSTEM'S INTERNAL COUNSEL ROUTINELY REVIEWS MANAGEMENT AND SERVICE CONTRACTS AND RESEARCH AGREEMENTS RELATING TO FINANCED PROPERTY. SCHEDULE K PART III, LINE 5: ISSUANCE COSTS ARE INCLUDED IN THESE PERCENTAGES. SCHEDULE K PART IV, LINE 1: THE ARBITRAGE REBATE FILING IS ONLY REQUIRED EVERY 5 YEAR; THE 2009 ISSUANCE HAS NOT YET MET THIS REQUIREMENT. SCHEDULE K PART IV, LINE 5: BOND DRAWS ARE NOT FINAL AS OF SEPTEMBER 30, 2011 FOR THE 2009 ISSUANCE.
Schedule K (Form 990) 2010

Additional Data


Software ID:  
Software Version:  

Schedule L
(Form 990 or 990-EZ)
Department of the Treasury
Internal Revenue Service
Transactions with Interested Persons
MediumBullet Complete if the organization answered
"Yes" on Form 990, Part IV, lines 25a, 25b, 26, 27, 28a, 28b, or 28c,
or Form 990-EZ, Part V lines 38a or 40b.
MediumBullet Attach to Form 990 or Form 990-EZ. MediumBulletSee separate instructions.
OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
MEMORIAL HEALTH SYSTEM
 
Employer identification number

37-1110690
Part I
Excess Benefit Transactions (section 501(c)(3) and section 501 (c)(4) organizations only).
Complete if the organization answered "Yes" on Form 990, Part IV, line 25a or 25b, or Form 990-EZ, Part V, line 40b.
1(a) Name of disqualified person (b) Description of transaction (c) Corrected?
Yes No





2
Enter the amount of tax imposed on the organization managers or disqualified persons during the year under section 4958. ......................... Bullet Image$
 
3
Enter the amount of tax, if any, on line 2, above, reimbursed by the organization ....... Bullet Image$
 

Part II
Loans to and/or From Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 26, or Form 990-EZ, Part V, line 38a.
(a) Name of interested person and purpose (b) Loan to or from the organization? (c)Original principal amount (d)Balance due (e) In default? (f) Approved by board or committee? (g)Written agreement?
To From Yes No Yes No Yes No
Total ...............Small Bullet $  
Part III
Grants or Assistance Benefitting Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 27.
(a) Name of interested person (b)Relationship between interested person and the organization (c)Amount of grant or type of assistance
For Privacy Act and Paperwork Reduction Act Notice, see the
Instructions for Form 990 or 990-EZ.
Cat. No. 50056A
Schedule L (Form 990 or 990-EZ) 2010
Schedule L (Form 990 or 990-EZ) 2010
Page 2
Part IV
Business Transactions Involving Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 28a, 28b, or 28c.
(a) Name of interested person (b) Relationship between interested person and the organization (c) Amount of transaction (d) Description of transaction (e) Sharing of organization's revenues?
Yes No
(1) SPRINGFIELD CLINIC LLP
  		WILLIAM D. PUTMAN, M.D., BOARD MEMBER AND EMPLOYEE 768,793 PHYSICIAN FEES   No
(2) SORLING NORTHRUP HANNA CULLEN & COCHRAN LTD ATTORNEYS AT LAW
  		MARK H. FERGUSON, BOARD MEMBER 409,413 ATTORNEY FEES   No
(3) SORLING NORTHRUP HANNA CULLEN & COCHRAN LTD ATTORNEYS AT LAW
  		WILLIAM R. ENLOW, BOARD MEMBER 409,413 ATTORNEY FEES   No
Part V
Supplemental Information
Complete this part to provide additional information for responses to questions on Schedule L (see instructions).
Identifier Return Reference Explanation
Schedule L (Form 990 or 990-EZ) 2010

Additional Data


Software ID:  
Software Version:  




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
MEMORIAL HEALTH SYSTEM
 
Employer identification number

37-1110690
Identifier Return Reference Explanation
FORM 990, PART VI, SECTION A, LINE 2   MARK H. FERGUSON AND WILLIAM R. ENLOW, BOTH MEMORIAL HEALTH SYSTEM BOARD MEMBERS, ARE PARTNERS AT THE SAME LAW FIRM, SORLING, NORTHRUP, HANNA, CULLEN & COCHRAN, LTD.
FORM 990, PART VI, SECTION A, LINE 6   THE CORPORATION CONTAINS 105 INDIVIDUAL MEMBERS WHO ELECT THE BOARD OF DIRECTORS.
FORM 990, PART VI, SECTION A, LINE 7A   THE INDIVIDUAL MEMBERS OF THE CORPORATION HAVE THE POWER AND AUTHORITY TO ELECT THE CORPORATION'S BOARD OF DIRECTORS, AS WELL AS THE POWER AND AUTHORITY TO REMOVE MEMBER ELECTED DIRECTORS.
FORM 990, PART VI, SECTION A, LINE 7B   INDIVIDUAL MEMBERS OF THE CORPORATION HAVE NO VOTING RIGHTS WITH RESPECT TO THE MANAGEMENT, CONTROL OR OPERATION OF THE AFFAIRS AND PROPERTIES OF THE CORPORATION. ONLY THE BOARD OF DIRECTORS CAN MAKE DECISIONS IN THAT REGARD.
FORM 990, PART VI, SECTION B, LINE 11   A FINAL DRAFT COPY OF THE MHS FORM 990 AND ALL ATTACHMENTS IS PROVIDED TO ALL OF THE MEMORIAL HEALTH SYSTEM BOARD OF DIRECTORS AND A BOARD COMMITTEE PRIOR TO FILING. AT THE BOARD MEETING, A PRESENTATION IS MADE BY THE CFO TO THE BOARD, FOLLOWED BY A QUESTION AND ANSWER SESSION. ALL QUESTIONS AND COMMENTS ARISING FROM THESE REVIEWS ARE ADDRESSED PRIOR TO SUBMISSION OF THE RETURN TO THE APPROPRIATE TAXING AUTHORITIES.
  FORM 990, PART VI, SECTION B, LINE 12C ALL OFFICERS, DIRECTORS AND KEY EMPLOYEES OF THE CORPORATION ARE REQUIRED TO ANNUALLY REVIEW THE CONFLICT OF INTEREST POLICY AND COMPLETE A SPECIFIC DISCLOSURE STATEMENT WHICH IS ATTACHED TO THE POLICY. MEMORIAL HEALTH SYSTEM MONITORS AND ENFORCES ITS CONFLICT OF INTEREST POLICY BY IDENTIFYING ANY POTENTIAL CONFLICTS AT THE TIME EACH MEETING AGENDA IS PREPARED. ANY OFFICER OR DIRECTOR WHO HAS A CONFLICT IS NOTIFIED OF SUCH CONFLICT, AS WELL AS THEIR OBLIGATION TO ABSTAIN FROM THE DISCUSSION AND VOTE ON ANY CONFLICTED ISSUES(S). SUCH ABSTENTION(S), IF REQUIRED, ARE DOCUMENTED IN THE MINUTES OF EACH MEETING. BOARD MEMBERS ARE ALSO REQUIRED TO UPDATE THEIR CONFLICT OF INTEREST DISCLOSURE STATEMENTS PROMPTLY IN THE EVENT OF ANY CHANGE IN PERSONAL OR BUSINESS ACTIVITIES THAT WOULD REQUIRE SUCH DISCLOSURE.
  FORM 990, PART VI, SECTION B, LINE 15 THE MEMORIAL HEALTH SYSTEM BOARD OF DIRECTORS HAS APPOINTED A LEADERSHIP COMPENSATION COMMITTEE MADE UP OF PAST AND PRESENT INDEPENDENT MEMBERS OF THE BOARD OF DIRECTORS, AND HAS DELEGATED TO IT THE RESPONSIBILITY OF ADMINISTERING, OVERSEEING AND APPROVING ALL FORMS OF COMPENSATION AND BENEFITS PROVIDED TO EXECUTIVE LEADERSHIP, INCLUDING THE CHIEF EXECUTIVE OFFICER AND THE CHIEF FINANCIAL OFFICER. THE BOARD HAS ADOPTED A LEADERSHIP COMPENSATION PHILOSOPHY STATEMENT DESCRIBING THE ROLE AND RESPONSIBILITIES OF THE COMMITTEE. THIS PHILOSOPHY EXPRESSLY STATES THE COMMITTEE'S INTENT, ON BEHALF OF THE CORPORATION, TO TAKE ALL THE STEPS NECESSARY TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE FEDERAL INCOME TAX LAW INTERMEDIATE SANCTIONS RULES. THE COMMITTEE ANALYZES EVERY ELEMENT OF COMPENSATION (INCLUDING CURRENT, INCENTIVE AND DEFERRED COMPENSATION) AND BENEFITS (INCLUDING QUALIFIED AND NON-QUALIFIED BENEFITS). THE COMMITTEE CONDUCTS ITS REVIEW AND APPROVAL PROCESS AT LEAST ANNUALLY, AND APPROVES COMPENSATION AND BENEFITS ONLY TO THE EXTENT THAT THE COMMITTEE HAS CONCLUDED THAT THE COMPENSATION AND BENEFITS CONSTITUTE NO MORE THAN REASONABLE COMPENSATION FOR EACH EXECUTIVE. IN CONNECTION WITH THE MOST RECENT REVIEW AND APPROVAL PROCESS, THE COMMITTEE RECEIVED PROFESSIONAL ADVICE FROM AN INDEPENDENT CONSULTANT AND OUTSIDE LEGAL COUNSEL. THE COMMITTEE CONSISTS ENTIRELY OF PAST AND PRESENT DISINTERESTED MEMBERS OF THE BOARD OR DISINTERESTED COMMITTEE MEMBERS WHO UNDER STATE CORPORATE LAW MAY SERVE ON SUCH A COMMITTEE. THE COMMITTEE WORKS WITH ITS COMPENSATION CONSULTANT TO PREPARE AND REVIEW IN ADVANCE COMPREHENSIVE DATA SHOWING THE COMPENSATION PROVIDED BY SIMILARLY SITUATED ORGANIZATIONS FOR FUNCTIONALLY SIMILAR POSITIONS. THE COMMITTEE ALSO PREPARES A TIMELY AND THOROUGH WRITTEN RECORD OF ITS PROCEDURAL CRITERIA NECESSARY TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE FEDERAL INCOME TAX LAW INTERMEDIATE SANCTIONS RULES.
  FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS OF MEMORIAL HEALTH SYSTEM, SUCH AS ARTICLES OF INCORPORATION AND ANY AMENDMENTS THERETO, ARE AVAILABLE TO THE GENERAL PUBLIC THROUGH THE ILLINOIS SECRETARY OF STATE'S OFFICE. THESE GOVERNING DOCUMENTS, AS WELL AS THE BYLAWS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS, ARE AVAILABLE UPON REQUEST FROM THE CORPORATION.
CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED LOSSES ON INVESTMENTS: -1,904,938. NONOPERATING RECONCILING ITEMS -51,554. CHANGE IN UNRESTRICTED NET ASSETS -3,160,515. TOTAL TO FORM 990, PART XI, LINE 5: -5,117,007.
FAIR MARKET VALUE FOR RENTAL INCOME RECEIVED SCHEDULE R, PART V, LINE 2 MEMORIAL HEALTH SYSTEM COLLECTED RENTAL INCOME FROM AFFILIATES DURING THE FISCAL YEAR ENDED SEPTEMBER 30, 2011. THE VALUES LISTED IN SCHEDULE R, PART V, LINE 2 WERE DETERMINED USING FAIR MARKET VALUE.
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:  
SCHEDULE R
(Form 990)
Department of the Treasury
Internal Revenue Service
Related Organizations and Unrelated Partnerships
MediumBulletComplete if the organization answered "Yes" to Form 990, Part IV, line 33, 34, 35, 36, or 37.
MediumBulletAttach to Form 990. MediumBullet See separate instructions.

OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
MEMORIAL HEALTH SYSTEM
 
Employer identification number

37-1110690
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
Yes No
(1) MEMORIAL MEDICAL CENTER

701 NORTH FIRST ST

SPRINGFIELD,IL627810001
37-0661220 		HOSPITAL SERVICES IL 501(C)(3) 170(B)(1)(A)(III) N/A
 
No
(2) MEMORIAL HEALTH VENTURES

701 NORTH FIRST ST

SPRINGFIELD,IL627810001
36-3492266 		HEALTHCARE ACTIVITIES IL 501(C)(3) 509(A)(3) TYPE II N/A
 
No
(3) ABRAHAM LINCOLN MEMORIAL HOSPITAL

315 EIGHTH ST

LINCOLN,IL62656
37-0723793 		HOSPITAL SERVICES IL 501(C)(3) 170(B)(1)(A)(III) N/A
 
No
(4) TAYLORVILLE MEMORIAL HOSPITAL

201 EAST PLEASANT

TAYLORVILLE,IL62568
37-0661250 		HOSPITAL SERVICES IL 501(C)(3) 170(B)(1)(A)(III) N/A
 
No
(5) MEMORIAL HOME SERVICES

720 NORTH BOND

SPRINGFIELD,IL627024915
37-0714225 		HOME HEALTH, HOSPICE, AND CONTINUOUS CARE SERVICES IL 501(C)(3) 509(A)(2) N/A
 
No
(6) MEMORIAL PHYSICIAN SERVICES

701 NORTH FIRST ST

SPRINGFIELD,IL627810001
37-1181194 		HEALTH CLINICS IL 501(C)(3) 509(A)(3) TYPE II N/A
 
No
(7) MEMORIAL MEDICAL CENTER FOUNDATION

1 MEMORIAL PLAZA

SPRINGFIELD,IL62781
37-1110301 		GRANTS TO HOSPITALS, OTHER CHARITABLE ORGANIZATIONS, AND SCHOLARSHIPS IL 501(C)(3) 170(B)(1)(A)(V) N/A
 
No
(8) TAYLORVILLE MEMORIAL HOSPITAL FOUNDATION

201 EAST PLEASANT

TAYLORVILLE,IL62568
37-1337485 		GRANTS TO OTHER CHARITABLE ORGANIZATIONS AND HOSPITALS IL 501(C)(3) 509(A)(3)TYPE III-FI N/A
 
No
(9) MENTAL HEALTH CENTERS OF CENTRAL ILLINOIS

710 NORTH EIGHTH ST

SPRINGFIELD,IL627026395
37-0646367 		TRAINING, PSYCHIATRIC, AND RESIDENT SERVICES FOR MENTALLY ILL AND DISABLED IL 501(C)(3) 170(B)(1)(A)(VI) N/A
 
No
(10) ABRAHAM LINCOLN HEALTHCARE FOUNDATION

315 EIGHTH ST

LINCOLN,IL62656
36-3492268 		GRANTS TO OTHER CHARITABLE ORGANIZATIONS AND HOSPITALS IL 501(C)(3) 170(B)(1)(A)(VI) N/A
 
No
For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50135Y
Schedule R (Form 990) 2010
Schedule R (Form 990) 2010
Page 2
Part III
Identification of Related Organizations Taxable as a Partnership (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a partnership during the tax year.)
(a)
Name, address, and EIN of
related organization



 		(b)
Primary activity




 		(c)
Legal
domicile
(state or foreign
country)


 		(d)
Direct controlling
entity



 		(e)
Predominant income(related, unrelated, excluded from tax under sections 512-514)

(f)
Share of total income




 		(g)
Share of end-of-year
assets



 		(h)
Disproprtionate allocations?




 		(i)
Code V—UBI
amount in box 20 of
Schedule K-1
(Form 1065)
 		(j)
General or
managing
partner?



 		(k)
Percentage
ownership
Yes No 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)

 		(f)
Share of total income



 		(g)
Share of
end-of-year
assets

 		(h)
Percentage
ownership
(1) MEMORIAL HOME SERVICES OF CENTRAL ILLINOIS INC
701 NORTH FIRST STREET
SPRINGFIELD,IL62781
37-1190216 		PROVIDE DURABLE MEDICAL EQUIPMENT AND SUPPLIES TO PATIENTS IL N/A
 C      
(2) HEALTHCARE NETWORK ASSOCIATES OF SANGAMON
720 NORTH BOND ST
SPRINGFIELD,IL62702
36-4156479 		HEALTHCARE ACTIVITIES IL N/A
 C      










Schedule R (Form 990) 2010
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
No
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 . . . . . . . . . . . . . . . . . . . . . . .
1a
Yes
 
b Gift, grant, or capital contribution to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1b
Yes
 
c Gift, grant, or capital contribution from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1c
Yes
 
d Loans or loan guarantees to or for other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1d
 
No
e Loans or loan guarantees by other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1e
 
No
f Sale of assets to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1f
Yes
 
g Purchase of assets from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1g
Yes
 
h Exchange of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1h
 
No
i Lease of facilities, equipment, or other assets to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1i
Yes
 
j Lease of facilities, equipment, or other assets from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . .
1j
Yes
 
k Performance of services or membership or fundraising solicitations for other organization(s) . . . . . . . . . . . . . . . . . . . . . .
1k
Yes
 
l Performance of services or membership or fundraising solicitations by other organization(s) . . . . . . . . . . . . . . . . . . . . . .
1l
Yes
 
m Sharing of facilities, equipment, mailing lists, or other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1m
Yes
 
n Sharing of paid employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1n
Yes
 
o Reimbursement paid to other organization for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1o
Yes
 
p Reimbursement paid by other organization for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1p
Yes
 
q Other transfer of cash or property to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1q
 
No
r Other transfer of cash or property from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1r
 
No
2
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) MEMORIAL HEALTH VENTURES

 A 454,079 FMV
(2) MEMORIAL HOME SERVICES

 A 138,128 FMV
(3) MEMORIAL MEDICAL CENTER

 A 2,292,563 FMV
(4) MEMORIAL PHYSICIAN SERVICES

 A 1,073,252 FMV
(5) MEMORIAL HOME SERVICES

 B 450,000 FMV
(6) MEMORIAL PHYSICIAN SERVICES

 B 9,478,000 FMV
(7) MEMORIAL MEDICAL CENTER

 C 6,300,000 FMV
(8) MEMORIAL PHYSICIAN SERVICES

 C 80,000 FMV
(9) MEMORIAL MEDICAL CENTER

 G 356,388 FMV
(10) MEMORIAL HEALTH VENTURES

 I 454,079 FMV
(11) MEMORIAL HOME SERVICES

 I 138,128 FMV
(12) MEMORIAL MEDICAL CENTER

 I 2,292,563 FMV
(13) MEMORIAL PHYSICIAN SERVICES

 I 1,073,252 FMV
(14) MEMORIAL MEDICAL CENTER

 J 148,437 FMV
(15) MEMORIAL PHYSICIAN SERVICES

 J 458,352 FMV
(16) MEMORIAL MEDICAL CENTER

 K 36,351,027 FMV
(17) ABRAHAM LINCOLN MEMORIAL HOSPITAL

 K 1,912,131 FMV
(18) TAYLORVILLE MEMORIAL HOSPITAL

 K 1,846,113 FMV
(19) MEMORIAL PHYSICIAN SERVICES

 K 3,687,482 FMV
(20) MENTAL HEALTH CENTERS OF CENTRAL ILLINOIS

 K 432,908 FMV
(21) MEMORIAL HOME SERVICES OF CENTRAL ILLINOIS INC

 K 440,177 FMV
(22) MEMORIAL HOME SERVICES

 K 630,633 FMV
(23) MEMORIAL HEALTH VENTURES

 K 542,565 FMV
(24) ABRAHAM LINCOLN MEMORIAL HOSPITAL

 G 57,015 FMV
(25) MEMORIAL MEDICAL CENTER FOUNDATION

 O 200,000 FMV
(26) MEMORIAL HEALTH VENTURES

 K 241,808 FMV
(27) MEMORIAL HEALTH VENTURES

 P 137,789 FMV
(28) MEMORIAL MEDICAL CENTER

 O 11,621,235 FMV
(29) MEMORIAL MEDICAL CENTER

 N 806,503 FMV
(30) MEMORIAL MEDICAL CENTER

 L 742,153 FMV
(31) MEMORIAL MEDICAL CENTER

 K 295,813 FMV
(32) MEMORIAL MEDICAL CENTER

 P 8,066,567 FMV
(33) MEMORIAL HOME SERVICES

 P 407,838 FMV
(34) MEMORIAL PHYSICIAN SERVICES

 P 1,251,697 FMV
(35) MEMORIAL PHYSICIAN SERVICES

 K 1,470,334 FMV
(36) MEMORIAL PHYSICIAN SERVICES

 O 694,412 FMV
(37) ABRAHAM LINCOLN MEMORIAL HOSPITAL

 N 101,320 FMV
(38) ABRAHAM LINCOLN MEMORIAL HOSPITAL

 P 103,372 FMV
(39) TAYLORVILLE MEMORIAL HOSPITAL

 N 104,097 FMV
(40) TAYLORVILLE MEMORIAL HOSPITAL

 P 55,412 FMV
(41) MEMORIAL MEDICAL CENTER

 M 977,037 FMV
(42) MEMORIAL HOME SERVICES

 M 138,128 FMV
Schedule R (Form 990) 2010
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 V—UBI
amount in box
20 of Schedule K-1
(Form 1065) 		(h)
General or
managing
partner?
Yes No Yes No Yes No






























Schedule R (Form 990) 2010
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: