TY 2011 Form 990

(A) Name and Title	(B) Average hours per week (describe hours for related organizations in Schedule O)	(C) Position (do not check more than one box, unless person is both an officer and a director/trustee)
(1) Dr John Adolph Director-Board Member	1.0	X
(2) D'Lana Barbay Director-Bd Member from 1/1/12	1.0	X
(3) Gehrig Brown Director-Board Member	1.0	X
(4) Dr Dave Carpenter Director-Board Member	1.0	X
(5) Jimmie Carpenter Chair Patient Safety & Quality	1.0	X
(6) Winston Coates Director-Board Member	1.0	X
(7) Gary Coker Director-Board Member	1.0	X
(8) Bo Crawford Chairman of the Board	1.0	X
(9) Dr Chris Dowdy Director-Bd Member from 1/1/12	1.0	X
(10) Jeff Dyson Third Vice President	1.0	X
(11) Loretta Hughes Director-Board Member	1.0	X
(12) Dr James Jones Director-Board Member	1.0	X
(13) Dr Saku Kumar Director-Board Member	1.0	X
(14) Dr Emmett Mackan Director-Board Member	1.0	X
(15) Gary Rothenberger Chairman Human Resources Comm	1.0	X
(16) Ann Scoggin Director-Board Member	1.0	X
(17) Walter D Snider Second Vice President	1.0	X

(A) Name and Title	(B) Average hours per week (describe hours for related organizations in Schedule O)	(C) Position (do not check more than one box, unless person is both an officer and a director/trustee)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)	(F) Estimated amount of other compensation from the organization and related organizations
(18) Larry Walker Secretary	1.0	X				0	0	0
(19) Terry Whiddon First Vice President	1.0	X				0	0	0
(20) Terry Woodard Director-Board Member	1.0	X				0	0	0
(21) Dr Miguel Castellano Director-Bd Member to 12/31/11	1.0	X				0	0	0
(22) Michael Clayton Director-Bd Member to 12/31/11	1.0	X				0	0	0
(23) Nell McCallum Morris Director-Bd Member to 12/31/11	1.0	X				0		0
(24) David Teuscher MD Director-Bd Member to 12/31/11	1.0	X				0	0	0
(25) Dr Keith A Wied Director-Bd Member to 12/31/11	1.0	X				0	0	0
(26) Wilson Weber Director	1.0	X				0	709,641	115,102
(27) David Parmer CEO Baptist Hospitals S/E TX	40.0		X			0	630,306	26,306
(28) Gary Troutman CFO Baptist Hospitals S/E TX	40.0		X			0	300,628	23,467
(29) Gerald Bryant CNO Baptist Hospitals S/E TX	40.0		X			0	261,611	23,415
(30) David Butler Assistant Secretary	1.0		X			0	425,560	30,482
(31) Nicholas Crafts COO Bapitst Hospitals S/E TX	40.0			X		0	219,889	20,412
(32) Jarren Garrett Chief Admin Officer-Orange	40.0			X		0	189,020	16,406
(33) Bryan Chandler Vice President of Business Dev	40.0			X		191,890	0	10,211
(34) Mathis Haynes Admin Dir CBO	40.0				X	316,881	0	10,099
(35) Gerald Thomas Surgery Admin Director	40.0				X	192,800	0	7,911
(36) Quan Pho Pharmacy Director	40.0				X	182,880	0	10,809
(37) Neil Capili RN	40.0				X	165,631	0	8,458
(38) Gary Hay Chief Perfusion	40.0				X	170,489	0	11,380

(A) Name and business address	(B) Description of services	(C) Compensation
Executive Health Resources Inc PO Box 822688 PHILADELPHIA,PA19182	MANAGEMENT SERVICE	1,374,970
Philips Medical PO Box 100355 ATLANTA,GA30384	MAINTENANCE SERVICES	912,163
Diversified Clinical Service PO Box 636981 CINCINNATI,OH45263	MANAGEMENT SERVICE	751,392
Webmedx Inc 3350 Riverwood Pkwy Ste 180 ATLANTA,GA30339	MDC TRANSCRIPTION	703,080
ARUP Laboratories PO Box 27964 SALT LAKE CITY,UT84127	OUTSIDE LAB SERVICES	664,114
2 Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 of compensation from the organization 37

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 United States. See Part IV, line 21	48,350	48,350
2	Grants and other assistance to individuals in the United States. See Part IV, line 22	0
3	Grants and other assistance to governments, organizations, and individuals outside the United States. See Part IV, lines 15 and 16	0
4	Benefits paid to or for members	0
5	Compensation of current officers, directors, trustees, and key employees ....	1,666,201	1,332,961	333,240
6	Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....	0
7	Other salaries and wages	83,852,180	66,847,543	17,004,637
8	Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) ....	1,261,622	905,368	356,254
9	Other employee benefits .......	12,536,854	8,933,941	3,602,913
10	Payroll taxes ...........	6,152,959	4,410,960	1,741,999
11	Fees for services (non-employees):
a	Management ......	3,935,805	1,848,341	2,087,464
b	Legal .........	40,591		40,591
c	Accounting ...........	216,420		216,420
d	Lobbying ...........	0
e	Professional fundraising. See Part IV, line 17..	0
f	Investment management fees ......	0
g	Other ..........	9,526,213	4,096,272	5,429,941
12	Advertising and promotion ....	0
13	Office expenses .......	64,525,413	58,724,859	5,800,554
14	Information technology ......	1,760,264	1,513,828	246,436
15	Royalties ..	0
16	Occupancy ...........	636,602	676,273	-39,671
17	Travel ............	349,050	137,337	211,713
18	Payments of travel or entertainment expenses for any federal, state, or local public officials ......	0
19	Conferences, conventions, and meetings ....	106,571	101,961	4,610
20	Interest ...........	7,521,098	5,771,530	1,749,568
21	Payments to affiliates .......	0
22	Depreciation, depletion, and amortization .....	13,608,851	10,402,208	3,206,643
23	Insurance ..............	2,795,844	2,140,692	655,152
24	Other expenses. Itemize expenses not covered above (List miscellaneous expenses in line 24f. If line 24f amount exceeds 10% of line 25, column (A) amount, list line 24f expenses on Schedule O.)
a	Bad Debt	20,920,735	20,920,735
b	REPAIRS & MAINTENANCE	5,553,223	1,156,856	4,396,367
c	All other expenses	4,857,484	5,043,648	-186,164
d
e
f	All other expenses
25	Total functional expenses. Add lines 1 through 24f	241,872,330	195,013,663	46,858,667	0
26	Joint costs. Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation. Check here if following SOP 98-2 (ASC 958-720).

Part X Balance Sheet
	1	Cashnon-interest-bearing ..........	29,491,305	1	20,818,645
2	Savings and temporary cash investments .......	1,208,742	2	1,211,721
3	Pledges and grants receivable, net .........	0	3	0
4	Accounts receivable, net .........	23,223,960	4	24,711,340
5	Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
	Schedule L ..........	0	5	0
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 ..........	0	6	0
7	Notes and loans receivable, net .............	2,360,547	7	2,660,423
8	Inventories for sale or use ..............	5,406,270	8	5,302,205
9	Prepaid expenses and deferred charges ............	6,807,853	9	9,298,499
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	352,445,582
b	Less: accumulated depreciation. .....	10b	211,253,220	146,258,302	10c	141,192,362
11	Investments—publicly traded securities ..........	331,695	11	342,653
12	Investments—other securities. See Part IV, line 11 ......	3,286,155	12	3,309,517
13	Investments—program-related. See Part IV, line 11 ..	0	13	0
14	Intangible assets .........	798,343	14	773,481
15	Other assets. See Part IV, line 11 ...........	25,955,660	15	37,515,076
16	Total assets. Add lines 1 through 15 (must equal line 34)...	245,128,832	16	247,135,922
	17	Accounts payable and accrued expenses .	21,648,201	17	28,132,381
18	Grants payable ..........	0	18	0
19	Deferred revenue ..........	0	19	0
20	Tax-exempt bond liabilities ..........	0	20	0
21	Escrow or custodial account liability. Complete Part IV of Schedule D..	0	21	0
22	Payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........	0	22	0
23	Secured mortgages and notes payable to unrelated third parties ..	147,731,702	23	142,745,842
24	Unsecured notes and loans payable to unrelated third parties ....	0	24	0
25	Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D.....	14,747,449	25	13,754,977
26	Total liabilities. Add lines 17 through 25.....	184,127,352	26	184,633,200
		Organizations that follow SFAS 117, check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets .....	60,860,505	27	62,334,135
28	Temporarily restricted net assets .....	140,975	28	168,587
29	Permanently restricted net assets .....	0	29	0
	Organizations that do not follow SFAS 117, check here and complete lines 30 through 34.
30	Capital stock or trust principal, or current funds .....		30
31	Paid-in or capital surplus, or land, building or equipment fund .....		31
32	Retained earnings, endowment, accumulated income, or other funds		32
33	Total net assets or fund balances .....	61,001,480	33	62,502,722
34	Total liabilities and net assets/fund balances .....	245,128,832	34	247,135,922

- TIN:

SCHEDULE A
(Form 990 or 990EZ)

Department of the Treasury
Internal Revenue Service

Public Charity Status and Public Support

Complete if the organization is a section 501(c)(3) organization or a section
4947(a)(1) nonexempt charitable trust.

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

See separate instructions.

OMB No. 1545-0047

2011

Open to Public
Inspection

Name of the organization

Baptist Hospitals of Southeast Texas

Employer identification number

74-1303720

Part I

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Type I

Type II

Type III - Functionally integrated

Type III - Other

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

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

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

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

Yes

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

11g(i)

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

11g(ii)

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

11g(iii)

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

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


Total

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

Cat. No. 11285F

Schedule A (Form 990 or 990-EZ) 2011

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) 2007	(b) 2008	(c) 2009	(d) 2010	(e) 2011	(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) 2007	(b) 2008	(c) 2009	(d) 2010	(e) 2011	(f) Total
7	Amounts from line 4..
8	Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
9	Net income from unrelated business activities, whether or not the business is regularly carried on..
10	Other income. (Explain in Part IV.) Do not include gain or loss from the sale of capital assets..
11	Total support (Add lines 7 through 10).

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

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

Section C. Computation of Public Support Percentage

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

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

16a

33 1/3% support test—2011. If the organization did not check the box on line 13, and line 14 is 33 1/3% or more, check this box
and stop here. The organization qualifies as a publicly supported organization ...................... right arrow

33 1/3% support test—2010. If the organization did not check the box on line 13 or 16a, and line 15 is 33 1/3% or more, check this
box and stop here. The organization qualifies as a publicly supported organization ..................... right arrow

17a

10%-facts-and-circumstances test—2011. If the organization did not check a box on line 13, 16a, or 16b and line 14
is 10% or more, and if the organization meets the "facts and circumstances" test, check this box and stop here. Explain
in Part IV how the organization meets the "facts and circumstances" test. The organization qualifies as a publicly supported
organization .................................................. right arrow

10%-facts-and-circumstances test—2010. If the organization did not check a box on line 13, 16a, 16b, or 17a and line
15 is 10% or more, and if the organization meets the "facts and circumstances" test, check this box and stop here.
Explain in Part IV how the organization meets the "facts and circumstances" test. The organization qualifies as a publicly
supported organization .............................................. right arrow

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

Schedule A (Form 990 or 990-EZ) 2011

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) 2007	(b) 2008	(c) 2009	(d) 2010	(e) 2011	(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) 2007	(b) 2008	(c) 2009	(d) 2010	(e) 2011	(f) Total
9	Amounts from line 6...
10a	Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
b	Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975.
c	Add lines 10a and 10b.
11	Net income from unrelated business activities not included in line 10b, whether or not the business is regularly carried on.
12	Other income. Do not include gain or loss from the sale of capital assets (Explain in Part IV.)
13	Total support (Add lines 9, 10c, 11 and 12.).

Section C. Computation of Public Support Percentage

Public Support Percentage for 2011 (line 8 column (f) divided by line 13 column (f)) .........

Public support percentage from 2010 Schedule A, Part III, line 15 ...............

Section D. Computation of Investment Income Percentage

Investment income percentage for 2011 (line 10c column (f) divided by line 13 column (f)) ......

Investment income percentage from 2010 Schedule A, Part III, line 17 .............

19a

33 1/3% support tests—2011. If the organization did not check the box on line 14, and line 15 is more than 33 1/3% and line 17 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization .......... right arrow

33 1/3% support tests—2010. If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33 1/3% and line 18 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization .... right arrow

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

Schedule A (Form 990 or 990-EZ) 2011

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) 2011

Additional Data

Software ID:
Software Version:

- TIN:

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

Department of the Treasury
Internal Revenue Service

Schedule of Contributors

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

OMB No. 1545-0047

2011

Name of organization

Baptist Hospitals of Southeast Texas

Employer identification number

74-1303720

Organization type (check one):

Filers of:

Section:

Form 990 or 990-EZ

501(c)( ) (enter number) organization

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

527 political organization

Form 990-PF

501(c)(3) exempt private foundation

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

501(c)(3) taxable private foundation

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

General Rule

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

Special Rules

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

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

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

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

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

Cat. No. 30613XSchedule B (Form 990, 990-EZ, or 990-PF) (2011)

Page 2

Name of organization Baptist Hospitals of Southeast Texas
Schedule B (Form 990, 990-EZ, or 990-PF) (2011)
Part I	Contributors (see Instructions). Use duplicate copies of Part I if additional space is needed.
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
RESTRICTED	RESTRICTED RESTRICTED RESTRICTED RESTRICTED, RESTRICTED RESTRICTED	$RESTRICTED	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
Schedule B (Form 990, 990-EZ, or 990-PF) (2011)

Page 3

Name of organization Baptist Hospitals of Southeast Texas
Schedule B (Form 990, 990-EZ, or 990-PF) (2011)
Part II	Noncash Property (see Instructions). Use duplicate copies of Part II if additional space is needed.
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions).	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions).	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions).	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions).	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions).	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions).	(d) Date received
		$
Schedule B (Form 990, 990-EZ, or 990-PF) (2011)

Page 4

Schedule B (Form 990, 990-EZ, or 990-PF) (2011)

Name of organization
Baptist Hospitals of Southeast Texas

Employer identification number

74-1303720

Part III

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

$
Use duplicate copies of Part III if additional space is needed

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

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

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

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

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

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

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

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

Schedule B (Form 990, 990-EZ, or 990-PF) (2011)

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE C
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Political Campaign and Lobbying Activities

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

Complete if the organization is described below.
SchCMd Bullet

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

See separate instructions.

OMB No. 1545-0047

2011

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, line 35c (Proxy Tax), then
Round Bullet

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

Name of the organization

Baptist Hospitals of Southeast Texas

Employer identification number

74-1303720

Part I-A

Complete if the organization is exempt under section 501(c) or is a section 527 organization.

Provide a description of the organization’s direct and indirect political campaign activities in Part IV.

Political expenditures .................................... SchCMd Bullet

Volunteer hours ........................................

Part I-B

Complete if the organization is exempt under section 501(c)(3).

Enter the amount of any excise tax incurred by the organization under section 4955 ......... SchCMd Bullet

Enter the amount of any excise tax incurred by organization managers under section 4955 ...... SchCMd Bullet

If the organization incurred a section 4955 tax, did it file Form 4720 for this year? ..............

Yes No

Was a correction made? .........................................

Yes No

If "Yes," describe in Part IV.

Part I-C

Complete if the organization is exempt under section 501(c) except section 501(c)(3).

Enter the amount directly expended by the filing organization for section 527 exempt function activities SchCMd Bullet

Enter the amount of the filing organization's funds contributed to other organizations for section 527 exempt function activities ................................... SchCMd Bullet

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

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

Yes No

Enter the names, addresses and employer identification number (EIN) of all section 527 political organizations to which the filing
organization made payments. For each organization listed, enter the amount paid from the filing organization’s funds. Also enter the amount of political contributions received that were promptly and directly delivered to a separate political organization, such as a separate segregated fund or a political action committee (PAC). If additional space is needed, provide information in Part IV.

(a) Name	(b) Address	(c) EIN	(d) Amount paid from filing organization's funds. If none, enter -0-.	(e) Amount of political contributions received and promptly and directly delivered to a separate political organization. If none, enter -0-.

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

Cat. No. 50084S

Schedule C (Form 990 or 990-EZ) 2011

Page 2

Part II-A

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

A Check if the filing organization belongs to an affiliated group (and list in Part IV each affiliated group member's name, address, EIN, expenses, and share of excess lobbying expenditures).
B Check if the filing organization checked box A and "limited control" provisions apply.

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

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

4-Year Averaging Period Under Section 501(h) (Some organizations that made a section 501(h) election do not have to complete all of the five columns below. See the instructions for lines 2a through 2f on page 4.)
Lobbying Expenditures During 4-Year Averaging Period
	Calendar year (or fiscal year beginning in)	(a) 2008	(b) 2009	(c) 2010	(d) 2011	(e) Total

2a	Lobbying non-taxable amount

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

c	Total lobbying expenditures

d	Grassroots nontaxable amount

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

f	Grassroots lobbying expenditures

Schedule C (Form 990 or 990-EZ) 2011

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)).

For each “Yes” response to lines 1a through 1i below, provide in Part IV a detailed description of the lobbying activity.

(a)

Yes

(b)

Amount

During the year, did the filing organization attempt to influence foreign, national, state or local legislation, including any attempt to influence public opinion on a legislative matter or referendum, through the use of:

Volunteers? .........................................

Paid staff or management (include compensation in expenses reported on lines 1c through 1i)? ....

Media advertisements? ....................................

Mailings to members, legislators, or the public? .........................

Publications, or published or broadcast statements? .......................

Grants to other organizations for lobbying purposes? .......................

Yes

18,102

Direct contact with legislators, their staffs, government officials, or a legislative body? ........

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

Other activities? ..........................

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

18,102

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

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

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

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

Part III-A

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

Yes

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

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

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

Part III-B

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

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

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

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

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

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

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

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

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

Part IV

Supplemental Information

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

Identifier	Return Reference	Explanation
MEMBERSHIP DUES TO AHA AND THA	SCHEDULE C, PART II-B	BAPTIST HOSPITALS OF SOUTHEAST TEXAS PAID $40,091.00 TO AHA AND $58,737.42 TO THA IN 2011. THE PORTION OF DUES THAT WERE USED FOR LOBBYING PURPOSES WAS 24.42% FOR AHA AND 14.15% FOR THA. TOTAL DUES PAID FOR LOBBYING ACTIVITES WERE (40,091.00 X .2442) + (58,737.42 X .1415) = $18,102.

Schedule C (Form 990 or 990EZ) 2011

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE D
(Form 990)

Department of the Treasury
Internal Revenue Service

Supplemental Financial Statements

Complete if the organization answered "Yes," to Form 990,
Part IV, line 6, 7, 8, 9, 10, 11a, 11b, 11c, 11d, 11e, 11f, 12a, or 12b
SchDMd Bullet

Attach to Form 990. SchDMd Bullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization

Baptist Hospitals of Southeast Texas

Employer identification number

74-1303720

Part I

Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Complete if the organization answered "Yes" to Form 990, Part IV, line 6.

		(a) Donor advised funds	(b) Funds and other accounts
1	Total number at end of year .......
2	Aggregate contributions to (during year) ...
3	Aggregate grants from (during year) ...
4	Aggregate value at end of year .......

Did the organization inform all donors and donor advisors in writing that the assets held in donor advised
funds are the organization's property, subject to the organization's exclusive legal control? ............

Yes No

Did the organization inform all grantees, donors, and donor advisors in writing that grant funds can be
used only for charitable purposes and not for the benefit of the donor or donor advisor, or for any other purpose conferring impermissible private benefit? ...................................

Yes No

Part II

Conservation Easements. Complete if the organization answered "Yes" to Form 990, Part IV, line 7.

Purpose(s) of conservation easements held by the organization (check all that apply).

Preservation of land for public use (e.g., recreation or education) Preservation of an historically important land area

Protection of natural habitat Preservation of a certified historic structure

Preservation of open space

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


a	Total number of conservation easements .......................	2a
b	Total acreage restricted by conservation easements ..................	2b
c	Number of conservation easements on a certified historic structure included in (a) .....	2c
d	Number of conservation easements included in (c) acquired after 8/17/06, and not on a historic structure listed in the National Register ....................	2d

Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during
the tax year SchDMd Bullet

Number of states where property subject to conservation easement is located SchDMd Bullet

Does the organization have a written policy regarding the periodic monitoring, inspection, handling of violations, and
enforcement of the conservation easements it holds? .............................

Yes No

Staff and volunteer hours devoted to monitoring, inspecting and enforcing conservation easements during the year SchDMd Bullet

Amount of expenses incurred in monitoring, inspecting, and enforcing conservation easements during the year
SchDMd Bullet

Does each conservation easement reported on line 2(d) above satisfy the requirements of section
170(h)(4)(B)(i) and 170(h)(4)(B)(ii)? ....................................

Yes No

In Part XIV, describe how the organization reports conservation easements in its revenue and expense statement, and
balance sheet, and include, if applicable, the text of the footnote to the organization’s financial statements that describes
the organization’s accounting for conservation easements.

Part III

Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets.
Complete if the organization answered "Yes" to Form 990, Part IV, line 8.

If the organization elected, as permitted under SFAS 116 (ASC 958), not to report in its revenue statement and balance sheet works of
art, historical treasures, or other similar assets held for public exhibition, education or research in furtherance of public service,
provide, in Part XIV, the text of the footnote to its financial statements that describes these items.

If the organization elected, as permitted under SFAS 116 (ASC 958), to report in its revenue statement and balance sheet works of art,
historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service,
provide the following amounts relating to these items:

(i)

Revenues included in Form 990, Part VIII, line 1 ........................ SchDMd Bullet

(ii)

Assets included in Form 990, Part X .............................. SchDMd Bullet

If the organization received or held works of art, historical treasures, or other similar assets for financial gain, provide the
following amounts required to be reported under SFAS 116 (ASC 958), relating to these items:

Revenues included in Form 990, Part VIII, line 1 .......................... SchDMd Bullet

Assets included in Form 990, Part X ............................... SchDMd Bullet

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

Cat. No. 52283D

Schedule D (Form 990) 2011

Page 2

Part III

Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued)

Using the organization’s accession and other records, check any of the following that are a significant use of its collection
items (check all that apply):

Public exhibition

Loan or exchange programs

Scholarly research

Other

Preservation for future generations

Provide a description of the organization’s collections and explain how they further the organization’s exempt purpose in
Part XIV.

During the year, did the organization solicit or receive donations of art, historical treasures or other similar
assets to be sold to raise funds rather than to be maintained as part of the organization’s collection?........

Yes No

Part IV

Escrow and Custodial Arrangements. Complete if the organization answered "Yes" to Form 990,
Part IV, line 9, or reported an amount on Form 990, Part X, line 21.

Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets not
included on Form 990, Part X? ....................................

Yes No

If "Yes," explain the arrangement in Part XIV and complete the following table:


c	Beginning balance .................................	1c
d	Additions during the year ..............................	1d
e	Distributions during the year .............................	1e
f	Ending balance ...................................	1f

Did the organization include an amount on Form 990, Part X, line 21? .....................

Yes No

If “Yes,” explain the arrangement in Part XIV.

Part V

Endowment Funds. Complete if the organization answered "Yes" to Form 990, Part IV, line 10.

		(a)Current Year	(b)Prior Year	(c)Two Years Back	(d)Three Years Back	(e)Four Years Back
1a	Beginning of year balance ....
b	Contributions ........
c	Net investment earnings, gains, and losses ...
d	Grants or scholarships .....
e	Other expenditures for facilities and programs ........
f	Administrative expenses ....
g	End of year balance ......

Provide the estimated percentage of the year end balance (line 1g) held as:

Board designated or quasi-endowment SchDMd Bullet

Permanent endowment SchDMd Bullet

Temporarily restricted endowment SchDMd Bullet

The percentages in lines 2a, 2b, and 2c should equal 100%.

Are there endowment funds not in the possession of the organization that are held and administered for the
organization by:

Yes

(i) unrelated organizations ........................

3a(i)

(ii) related organizations ........................

3a(ii)

If "Yes" to 3a(ii), are the related organizations listed as required on Schedule R? .........

Describe in Part XIV the intended uses of the organization's endowment funds.

Part VI

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

Description of property		(b)Cost or other basis (other)	(c) Accumulated depreciation	(d) Book value
1a	Land .................	8,315,203		8,315,203
b	Buildings ................	185,216,741	98,312,364	86,904,377
c	Leasehold improvements ............	20,201,712	4,822,607	15,379,105
d	Equipment ................	135,574,925	105,427,585	30,147,340
e	Other .................	3,136,998	2,690,663	446,335
Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10(c).).......				141,192,360

Schedule D (Form 990) 2011

Page 3

Part VII

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

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








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

Part VIII

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

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









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

Part IX

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

(a) Description				(b) Book value
(1) MORTGAGE RESERVE FUND				15,636,132
(2) CAPTIVE INSURANCE FUND				10,718,959
(3) OTHER ASSETS				5,788,928
(4) DEFERRED FINANCING COSTS				4,688,606
(5) DUE FROM BPN				682,451




Total. (Column (b) must equal Form 990, Part X, col.(B) line 15.)...........				37,515,076

Part X

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

1.(a) Description of Liability		(b) Book value
Federal Income Taxes		0
ACCR PROF LIABILITY		9,452,944
OTHER LIABILITIES		3,913,140
ASBESTOS ABATEMENT		252,985
DEF RENT PHELAN MEAD		135,818
REST FUND/PRAYER		90




Total. (Column (b) must equal Form 990, Part X, col.(B) line 25.)		13,754,977
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) 2011

Page 4

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

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

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

Part XIV

Supplemental Information

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

Identifier	Return Reference	Explanation

Schedule D (Form 990) 2011

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE F(Form 990)

Department of the Treasury
Internal Revenue Service

Statement of Activities Outside the United States

Complete if the organization answered "Yes" to Form 990,Part IV, line 14b, 15, or 16. Right pointing arrow large image

Attach to Form 990. Right pointing arrow large image

See separate instructions.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization
Baptist Hospitals of Southeast Texas

Employer identification number

74-1303720

Part I

General Information on Activities Outside the United States. Complete if the organization answered
“Yes” to Form 990, Part IV, line 14b.

For grantmakers. Does the organization maintain records to substantiate the amount of its grants

and other assistance, the grantees' eligibility for the grants or assistance, and the selection criteria used

to award the grants or assistance? ..............................

Yes

For grantmakers. Describe in Part V the organization’s procedures for monitoring the use of its grants and other
assistance outside the United States.

Activites per Region. (Use Part V if additional space is needed.)

(a) Region		(b) Number of offices in the region	(c) Number of employees or agents in region or independent contractors	(d) Activities conducted in region (by type) (e.g., fundraising, program services, investments, grants to recipients located in the region)	(e) If activity listed in (d) is a program service, describe specific type of service(s) in region	(f) Total expenditures for region/investments in region
	Central America and the Caribbean	1	0	Program Services	Captive Insurance	1,826,997
















3a	Sub-total .....	1	0			1,826,997
b	Total from continuation sheets to Part I ...
c	Totals (add lines 3a and 3b)	1	0			1,826,997

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.Cat. No. 50082W Schedule F (Form 990) 2011

Schedule F (Form 990) 2011

Page 2

Part II

Grants and Other Assistance to Organizations or Entities Outside the United States. Complete if the organization answered "Yes" to Form 990,

Part IV, line 15, for any recipient who received more than $5,000. Check this box if no one recipient received more than $5,000 ........ MediumBullet

Use Part V if additional space is needed.

1 (a) Name of organization		(b) IRS code section and EIN (if applicable)	(c) Region	(d) Purpose of grant	(e) Amount of cash grant	(f) Manner of cash disbursement	(g) Amount of of non-cash assistance	(h) Description of non-cash assistance	(i) Method of valuation (book, FMV, appraisal, other)

Enter total number of recipient organizations listed above that are recognized as charities by the foreign country, recognized as tax-exempt by the IRS, or for which the grantee or counsel has provided a section 501(c)(3) equivalency letter ..... MediumBullet

Enter total number of other organizations or entities ........................ MediumBullet

Schedule F (Form 990) 2011

Schedule F (Form 990) 2011Page 3

Part III

Grants and Other Assistance to Individuals Outside the United States. Complete if the organization answered "Yes" to Form 990, Part IV, line 16.

Use Part V if additional space is needed.

(a) Type of grant or assistance		(b) Region	(c) Number of recipients	(d) Amount of cash grant	(e) Manner of cash disbursement	(f) Amount of non-cash assistance	(g) Description of non-cash assistance	(h) Method of valuation (book, FMV, appraisal, other)

Schedule F (Form 990) 2011

Page 4

Part IV

Foreign Forms

Schedule F (Form 990) 2011

Page 5

Part V

Supplemental Information
Complete this part to provide the information required by Part I, line 2 (monitoring of funds); Part I, line 3, column (f) (accounting method; amounts of investments vs. expenditures per region); Part II, line 1 (accounting method); Part III (accounting method); and Part III, column (c) (estimated number of recipients), as applicable. Also complete this part to provide any additional information (see instructions).

Identifier	ReturnReference	Explanation

Schedule F (Form 990) 2011

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE H (Form 990)

Department of the Treasury
Internal Revenue Service

Hospitals

Complete if the organization answered "Yes" to Form 990, Part IV, question 20.
MediumBullet

Attach to Form 990. MediumBullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization

Baptist Hospitals of Southeast Texas

Employer identification number

74-1303720

Part I

Charity Care and Certain Other Community Benefits at Cost

Yes

Did the organization have a financial assistance policy during the tax year? If "No," skip to question 6a....

Yes

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

Yes

If the organization had multiple hospital facilities, indicate which of the following best describes application of the financial assistance policy to its various hospital facilities during the tax year.

Applied uniformly to all hospital facilities Applied uniformly to most hospital facilities Generally tailored to individual hospital facilities

Answer the following based on the financial assistance eligibility criteria that applied to the largest number of the organization's patients during the tax year.

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

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

Yes

100% 150% 200% Other

Did the organization use FPG to determine eligibility for providing discounted care? If "Yes," indicate which of the

following was the family income limit for eligibility for discounted care: ............

Yes

200% 250% 300% 350% 400% Other

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

Did the organization's financial assistance policy that applied to the largest number of its patients during the tax year provide for free or discounted care to the "medically indigent"? ..............

Yes

Did the organization budget amounts for free or discounted care provided under its financial assistance policy during the tax year? ............................

Yes

If "Yes," did the organization's financial assistance expenses exceed the budgeted amount?......

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

Did the organization prepare a community benefit report during the tax year?...........

Yes

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

Yes

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

Financial Assistance and Certain Other Community Benefits at Cost

	(c) Total community benefit expense	(d) Direct offsetting revenue	(e) Net community benefit expense	(f) Percent of total expense
a Financial Assistance at cost (from Worksheet 1) ..	5,427,230		5,427,230	2.460 %
b Medicaid (from Worksheet 3, column a) .....	1,485,369		1,485,369	0.670 %
c Costs of other means-tested government programs (from Worksheet 3, column b) .	57,764		57,764	0.030 %
dTotal Financial Assistance and Means-Tested Government Programs .....	6,970,363		6,970,363	3.160 %
Other Benefits e Community health improvement services and community benefit operations (from (Worksheet 4) ....	16,236,802	19,857,989	-3,621,187	0 %
f Health professions education (from Worksheet 5) ..	228,600	178,882	49,718	0.020 %
g Subsidized health services (from Worksheet 6) ..	93,358	35,600	57,758	0.030 %
h Research (from Worksheet 7)
i Cash and in-kind contributions for community benefit (from Worksheet 8) ....	98,343		98,343	0.040 %
jTotal Other Benefits ...	16,657,103	20,072,471	-3,415,368	0 %
kTotal. Add lines 7d and 7j. ..	23,627,466	20,072,471	3,554,995	1.610 %

For Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat. No. 50192T Schedule H (Form 990) 2011

Schedule H (Form 990) 2011

Page

Part II

Community Building Activities Complete this table if the organization conducted any community building activities during the tax year, and describe in Part VI how its community building activities promoted the health of the communities it serves.

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

Part III

Bad Debt, Medicare, & Collection Practices

Section A. Bad Debt Expense

Yes

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

Yes

Enter the amount of the organization's bad debt expense........

20,920,735

Enter the estimated amount of the organization's bad debt expense attributable to patients eligible under the organization's financial assistance policy .....

5,230,184

Provide in Part VI the text of the footnote to the organization's financial statements that describes bad debt expense. In addition, describe the costing methodology used in determining the amounts reported on lines 2 and 3, and rationale for including a portion of bad debt amounts as community benefit.

Section B. Medicare

Enter total revenue received from Medicare (including DSH and IME).....

69,046,836

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

68,956,063

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

90,773

Describe in Part VI the extent to which any shortfall reported in line 7 should be treated as community benefit.Also describe in Part VI the costing methodology or source used to determine the amount reported on line 6.Check the box that describes the method used:

Cost accounting system Cost to charge ratio Other

Section C. Collection Practices

Did the organization have a written debt collection policy during the tax year? ..........

Yes

If "Yes," did the organization’s collection policy that applied to the largest number of its patients during the tax year contain provisions on the collection practices to be followed for patients who are known to qualify for financial assistance? Describe in Part VI.......................

Yes

Part IV

Management Companies and Joint Ventures

(see instructions)

(a) Name of entity	(b) Description of primary activity of entity	(c) Organization's profit % or stock ownership %	(d) Officers, directors, trustees, or key employees' profit % or stock ownership%	(e) Physicians' profit % or stock ownership %
1BAPTUSP SURG CTRS	OUTPATIENT SERVICES	50.100 %	0 %	0 %
2
3
4
5
6
7
8
9
10
11
12
13

Schedule H (Form 990) 2011

Page

Part VFacility Information

Section A. Hospital Facilities (list in order of size from largest to smallest) How many hospital facilities did the organization operate during the tax year?2 Name and address		Other (Describe)
1	Baptist Beaumont Hospital 3080 College Street Beaumont,TX77701	X	X	X
2	Baptist Orange Hospital 608 Strickland Drive Orange,TX77630	X	X	X

Schedule H (Form 990) 2011

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Part VFacility Information (continued)

Section B. Facility Policies and Practices.

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

Baptist Beaumont Hospital

Name of Hospital Facility:

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

				Yes	No
Community Health Needs Assessment (Lines 1 through 7 are optional for 2011)
1	During the tax year or any prior tax year, did the hospital facility conduct a community health needs assessment (“Needs Assessment”)? If “No,” skip to question 8. .....................		1
	If “Yes,” indicate what the Needs Assessment describes (check all that apply):
	a	A definition of the community served by the hospital facility
	b	Demographics of the community
	c	Existing health care facilities and resources within the community that are available to respond to the health needs of the community
	d	How data was obtained
	e	The health needs of the community
	f	Primary and chronic disease needs and other health issues of uninsured persons, low-income persons, and minority groups
	g	The process for identifying and prioritizing community health needs and services to meet the community health needs
	h	The process for consulting with persons representing the community’s interests
	i	Information gaps that limit the hospital facility’s ability to assess the community’s health needs
	j	Other (describe in Part VI)
2	Indicate the tax year the hospital facility last conducted a Needs Assessment: 20
3	In conducting its most recent Needs Assessment, did the hospital facility take into account input from persons who represent the community served by the hospital facility? If “Yes,” describe in Part VI how the hospital facility took into account input from persons who represent the community, and identify the persons the hospital facility consulted.		3
4	Was the hospital facility’s Needs Assessment conducted with one or more other hospital facilities? If “Yes,” list the other hospital facilities in Part VI............................		4
5	Did the hospital facility make its Needs Assessment widely available to the public? ...........		5
	If “Yes,” indicate how the Needs Assessment was made widely available (check all that apply):
	a	Hospital facility’s website
	b	Available upon request from the hospital facility
	c	Other (describe in Part VI)
6	If the hospital facility addressed needs identified in its most recently conducted Needs Assessment, indicate how (check all that apply):
	a	Adoption of an implementation strategy to address the health needs of the hospital facility’s community
	b	Execution of the implementation strategy
	c	Participation in the development of a community-wide community benefit plan
	d	Participation in the execution of a community-wide community benefit plan
	e	Inclusion of a community benefit section in operational plans
	f	Adoption of a budget for provision of services that address the needs identified in the Needs Assessment
	g	Prioritization of health needs in the community
	h	Prioritization of services that the hospital facility will undertake to meet health needs in its community
	i	Other (describe in Part VI)
7	Did the hospital facility address all of the needs identified in its most recently conducted Needs Assessment? If “No,” explain in Part VI which needs it has not addressed and the reasons why it has not addressed such needs. ....		7
Financial Assistance Policy
	Did the hospital facility have in place during the tax year a written financial assistance policy that:
8	Explained eligibility criteria for financial assistance, and whether such assistance includes free or discounted care?		8	Yes
9	Used federal poverty guidelines (FPG) to determine eligibility for providing free care?...........		9	Yes
	If "Yes," indicate the FPG family income limit for eligibility for free care: 200.% If "No," explain in Part VI the criteria the hospital facility used.

Schedule H (Form 990) 2011

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Part VFacility Information (continued)

				Yes	No
10	Used FPG to determine eligibility for providing discounted care?.................		10	Yes
	If “Yes,” indicate the FPG family income limit for eligibility for discounted care: 400.% If "No," explain in Part VI the criteria the hospital facility used.
11	Explained the basis for calculating amounts charged to patients?.................		11
	If “Yes,” indicate the factors used in determining such amounts (check all that apply):
	a	Income level
	b	Asset level
	c	Medical indigency
	d	Insurance status
	e	Uninsured discount
	f	Medicaid/Medicare
	g	State regulation
	h	Other (describe in Part VI)
12	Explained the method for applying for financial assistance?...................		12	Yes
13	Included measures to publicize the policy within the community served by the hospital facility?.......		13	Yes
	If “Yes,” indicate how the hospital facility publicized the policy (check all that apply):
	a	The policy was posted on the hospital facility’s web site
	b	The policy was attached to all billing invoices
	c	The policy was posted in the hospital facility’s emergency rooms or waiting rooms
	d	The policy was posted in the hospital facility’s admissions offices
	e	The policy was provided, in writing, to patients upon admission to the hospital facility
	f	The policy was available upon request
	g	Other (describe in Part VI)
Billing and Collections
14	Did the hospital facility have in place during the tax year a separate billing and collections policy, or a written financial assistance policy (FAP) that explained actions the hospital facility may take upon non-payment?.......		14	Yes
15	Check all of the following collection actions against an individual that were permitted under the hospital facility's policies during the tax year before making reasonable efforts to determine the patient’s eligibility under the facility’s FAP:
	a	Reporting to credit agency
	b	Lawsuits
	c	Liens on residences
	d	Body attachments
	e	Other similar actions (describe in Part VI)
16	Did the hospital facility or an authorized third party perform any of the following actions during the tax year before making reasonable efforts to determine the patient’s eligibility under the facility’s FAP?..........		16		No
	If “Yes,” check all actions in which the hospital facility or a third party engaged:
	a	Reporting to credit agency
	b	Lawsuits
	c	Liens on residences
	d	Body attachments
	e	Other similar actions (describe in Part VI)
17	Indicate which efforts the hospital facility made before initiating any of the actions checked in line 16 (check all that apply):
	a	Notified patients of the financial assistance policy upon admission
	b	Notified patients of the financial assistance policy prior to discharge
	c	Notified patients of the financial assistance policy in communications with the patients regarding the patients’ bills
	d	Documented its determination of whether patients were eligible for financial assistance under the hospital facility’s financial assistance policy
	e	Other (describe in Part VI)

Schedule H (Form 990) 2011

Page

Part VFacility Information (continued)

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

Schedule H (Form 990) 2011

Page

Part VFacility Information (continued)

Section B. Facility Policies and Practices.

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

Baptist Orange Hospital

Name of Hospital Facility:

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

				Yes	No
Community Health Needs Assessment (Lines 1 through 7 are optional for 2011)
1	During the tax year or any prior tax year, did the hospital facility conduct a community health needs assessment (“Needs Assessment”)? If “No,” skip to question 8. .....................		1
	If “Yes,” indicate what the Needs Assessment describes (check all that apply):
	a	A definition of the community served by the hospital facility
	b	Demographics of the community
	c	Existing health care facilities and resources within the community that are available to respond to the health needs of the community
	d	How data was obtained
	e	The health needs of the community
	f	Primary and chronic disease needs and other health issues of uninsured persons, low-income persons, and minority groups
	g	The process for identifying and prioritizing community health needs and services to meet the community health needs
	h	The process for consulting with persons representing the community’s interests
	i	Information gaps that limit the hospital facility’s ability to assess the community’s health needs
	j	Other (describe in Part VI)
2	Indicate the tax year the hospital facility last conducted a Needs Assessment: 20
3	In conducting its most recent Needs Assessment, did the hospital facility take into account input from persons who represent the community served by the hospital facility? If “Yes,” describe in Part VI how the hospital facility took into account input from persons who represent the community, and identify the persons the hospital facility consulted.		3
4	Was the hospital facility’s Needs Assessment conducted with one or more other hospital facilities? If “Yes,” list the other hospital facilities in Part VI............................		4
5	Did the hospital facility make its Needs Assessment widely available to the public? ...........		5
	If “Yes,” indicate how the Needs Assessment was made widely available (check all that apply):
	a	Hospital facility’s website
	b	Available upon request from the hospital facility
	c	Other (describe in Part VI)
6	If the hospital facility addressed needs identified in its most recently conducted Needs Assessment, indicate how (check all that apply):
	a	Adoption of an implementation strategy to address the health needs of the hospital facility’s community
	b	Execution of the implementation strategy
	c	Participation in the development of a community-wide community benefit plan
	d	Participation in the execution of a community-wide community benefit plan
	e	Inclusion of a community benefit section in operational plans
	f	Adoption of a budget for provision of services that address the needs identified in the Needs Assessment
	g	Prioritization of health needs in the community
	h	Prioritization of services that the hospital facility will undertake to meet health needs in its community
	i	Other (describe in Part VI)
7	Did the hospital facility address all of the needs identified in its most recently conducted Needs Assessment? If “No,” explain in Part VI which needs it has not addressed and the reasons why it has not addressed such needs. ....		7
Financial Assistance Policy
	Did the hospital facility have in place during the tax year a written financial assistance policy that:
8	Explained eligibility criteria for financial assistance, and whether such assistance includes free or discounted care?		8	Yes
9	Used federal poverty guidelines (FPG) to determine eligibility for providing free care?...........		9	Yes
	If "Yes," indicate the FPG family income limit for eligibility for free care: 200.% If "No," explain in Part VI the criteria the hospital facility used.

Schedule H (Form 990) 2011

Page

Part VFacility Information (continued)

				Yes	No
10	Used FPG to determine eligibility for providing discounted care?.................		10	Yes
	If “Yes,” indicate the FPG family income limit for eligibility for discounted care: 400.% If "No," explain in Part VI the criteria the hospital facility used.
11	Explained the basis for calculating amounts charged to patients?.................		11	Yes
	If “Yes,” indicate the factors used in determining such amounts (check all that apply):
	a	Income level
	b	Asset level
	c	Medical indigency
	d	Insurance status
	e	Uninsured discount
	f	Medicaid/Medicare
	g	State regulation
	h	Other (describe in Part VI)
12	Explained the method for applying for financial assistance?...................		12	Yes
13	Included measures to publicize the policy within the community served by the hospital facility?.......		13	Yes
	If “Yes,” indicate how the hospital facility publicized the policy (check all that apply):
	a	The policy was posted on the hospital facility’s web site
	b	The policy was attached to all billing invoices
	c	The policy was posted in the hospital facility’s emergency rooms or waiting rooms
	d	The policy was posted in the hospital facility’s admissions offices
	e	The policy was provided, in writing, to patients upon admission to the hospital facility
	f	The policy was available upon request
	g	Other (describe in Part VI)
Billing and Collections
14	Did the hospital facility have in place during the tax year a separate billing and collections policy, or a written financial assistance policy (FAP) that explained actions the hospital facility may take upon non-payment?.......		14	Yes
15	Check all of the following collection actions against an individual that were permitted under the hospital facility's policies during the tax year before making reasonable efforts to determine the patient’s eligibility under the facility’s FAP:
	a	Reporting to credit agency
	b	Lawsuits
	c	Liens on residences
	d	Body attachments
	e	Other similar actions (describe in Part VI)
16	Did the hospital facility or an authorized third party perform any of the following actions during the tax year before making reasonable efforts to determine the patient’s eligibility under the facility’s FAP?..........		16		No
	If “Yes,” check all actions in which the hospital facility or a third party engaged:
	a	Reporting to credit agency
	b	Lawsuits
	c	Liens on residences
	d	Body attachments
	e	Other similar actions (describe in Part VI)
17	Indicate which efforts the hospital facility made before initiating any of the actions checked in line 16 (check all that apply):
	a	Notified patients of the financial assistance policy upon admission
	b	Notified patients of the financial assistance policy prior to discharge
	c	Notified patients of the financial assistance policy in communications with the patients regarding the patients’ bills
	d	Documented its determination of whether patients were eligible for financial assistance under the hospital facility’s financial assistance policy
	e	Other (describe in Part VI)

Schedule H (Form 990) 2011

Page

Part VFacility Information (continued)

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

Schedule H (Form 990) 2011

Page

Part VFacility Information (continued)

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

Schedule H (Form 990) 2011

Page

Part VI

Supplemental Information

Complete this part to provide the following information.

1	Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II; Part III, lines 4, 8, and 9b; and Part V, Section B, lines 1j, 3, 4, 5c, 6i, 7, 9, 10, 11h, 13g, 15e, 16e, 17e, 18d, 19d, 20, and 21.
2	Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any needs assessments reported in Part V, Section B.
3	Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization’s financial assistance policy.
4	Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves.
5	Promotion of community health. Provide any other information important to describing how the organization’s hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.).
6	Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served.
7	State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report.

Identifier	ReturnReference	Explanation
COMMUNITY BENEFIT REPORT	SCHEDULE H, PART I, LINE 6A	Our community benefit report for FY 2012 was prepared by Vivanti Group, LLC with the assistance of our corporate office.
COMMUNITY BENEFIT EXPENSE	SCHEDULE H, PART I, LINE 7	Line 7A: Ratio of Cost to Charges for the patients that received a Charity Discount based on the hospitals cost accounting system. Line 7B: Ratio of cost to charges for the Medicaid Patients based on the hospitals cost accounting system. Line 7C: Ratio of cost to charges for CHIP Patients based on the hospitals cost accounting system. Line 7E: Actual expenses less any direct offsetting revenue Line 7F: Actual Expenses less any direct offsetting revenue. Line 7G: Ratio of cost to charges based on the hospitals cost accounting system. Line 7I: Actual expense of the contributions.
COMMUNITY BUILDING ACTIVITIES	SCHEDULE H, PART II	The Partnership in Education provides the mechanism for the established relationship between Baptist Hospitals of Southeast Texas, Regina-Howell Elementary School, Hatton & Sims Elementary Schools, Community Christian School and All Saint's Episcopal School and Vidor ISO. Now in the fifteenth successful year, Baptist Hospitals of Southeast Texas contributes to both students and staff by providing manpower for school events, furnishes flu shots and wellness information to staff and dedicates funding for special events. Facility provides medical equipment such as blood pressure machines, digital themometers and portable defilbrillators. CPR classes and TB skin test are also provided. The Positive Points Program has been established in conjunction with BISD and OISD School/Business Partnership. Program involves third, fourth and fifth grade students who are awarded points from his/her teacher based on positive behaviors. These positive behaviors may consist of random acts of kindness, courtesy toward others, good listening skills and respect for adults. Program is presented on a quarterly basis during the school year. Students tour facility and learn of services probided to their community. Before leaving, each student makes a give and presents to patients located on stroke and heart floors. The employees of Baptist Hospitals of Southeast Texas are dedicated to enhancing community wellness. During 2011-2012, the employees contributed time, enthusiasm and funding to several initiatives. During the holiday season, individuals collected gifts for children within the Child Protective Service Agency of Southeast Texas. The "Angel Tree" and employee participants provided 125 children with a joyous Christmas delivery. Equally compassionate, employees initiate a celebration, gift giving and mentoring for the inhabitants of Buckner's Children Village. This annual event reached 95 children in 2011. Collection of used telephones for the Hope Crisis Center and Teddy Bears for Police League were contributed by employees. United Way campaigns, blood drives, Relay for Life and March of Dimes all benefitted from employee driven financial campaign. The Department of Religion of the Baptist Hospitals of Southeast Texas delivers numerous benefits to the patients, their families and members of the community at large. The chaplains provide financial assistance through the Chaplain's Emergency Fund. In 2011-2012, $33,266 was donated for medicine, food, housing and travel to patients and family members throughout Southeast Texas. Additionally, chaplains provided sessions of pastoral counseling to individuals from the community. Many of these dollars are contributed by fundraising activities within the Baptist Hospital organization. The Congregational Health Ministry (Parish Nursing) programming in the Chaplaincy Department provided unreimbursed services and training to the community through training Faith Community Nurses to function in their respective congregations and assisting them with the implementation of their congregational programming. These unreimbursed expenses included unreimbursed preventive care services to Southeast Texas communities, salary and benefits of faculty, and operating expenses for the FCN department throughout the year. The total for 2012 is $66,541. More than 1200 55+ members have available to them monthly educational seminars on health, wellness and independent living issues including taking medications, basic first aid, health screening and defensive driving classes. Baptist Hospitals of Southeast Texas reaches out to the community by offering numerous classes, speakers and other informative activities. Hospital personnel are made available as speakers for civic groups, industrial partners, and media appearance and health fairs to address health topics of particular concern to the public. In 2011-2012, over 13,036 individuals received information needed to make healthy lifestyle choices. In addition, quarterly community educational newsletters are mailed to approximately 30,000 households. New mobile application has been created to provide health tips and reminders to users that enroll. Grant funding has been established through DHHS for HIV education in the community. Baptist Hospitals of Southeast Texas partnered with City of Beaumont to collaborate to achieve Gold Recognition as a Heart and Stroke Healthy City by Texas Council on Cardiovascular Diseases. Baptist Hospitals of Southeast Texas has designed support groups to encourage follow-up and continued education for patients during and after an illness. Baptist Hospitals of Southeast Texas have initiated or supported groups for patients, family members and the community at large: New Beginning Support Group, Cancer Support Group, Diabetes Support Group, Better Start for Babies Program, Stroke Wise Support Group and Mended Hearts.
FOOTNOTE TO FINANCIAL STATEMENTS REGARDING BAD DEBT	SCHEDULE H, PART III, LINE 4	Baptist Hospitals of Southeast Texas (BHSET) reports patient account receivable for services rendered at net realizable amounts from Government payers, managed care plans, patients and others. Amounts due from patients include both amounts due from fully uninsured patients and co-payments and deductibles for which insured patients are responsible. As a service to the patients, BHSET bills third-party payers directly and bills the patients when the patient's liability is determined. Patient accounts receivable are due in full when billed. BHSET provides an allowance for doubtful accounts for estimated losses resulting from payers; inability to make payments on accounts. BHSET estimates its allowance for doubtful accounts based upon a review of outstanding receivables, histroical collection information and existing economic conditions. Accounts are considered delinquent and subsequently written off based on individual credit evaluationa nd specific circumstances of the account. The bad debts are reported at cost based on the amount of the allowance multiplied by the overall hospital cost to charge ratio as determined from the hopsital cost accounting system for accounts discharged during the 2012 fiscal year.
COST METHODOLOGY FOR MEDICARE	SCHEDULE H, PART III, LINE 8	We utilized the cost information provided in our 8/31/2012 cost report as filed with Medicare.
WRITTEN DEBT COLLECTION POLICY	SCHEDULE H, PART III, LINE 9B	Patients without a payor source are educated about the hospitals charity policy. Based upon the hospital's charity policy a patient may qualify for charity on a sliding scale. The minimum charity level is 20% up to a maximum of 100%. Patients that qualify for charity have their account reduced based on the level of charity they qualify for. Patients with a balance remaining after application of the charity are handled consistent with the hospitlas collection policy.
CHARGES FOR MEDICAL CARE	SCHEDULE H, PART V, SECTION B, LINE 19D	The organization gives all unfunded patients a discount from billed charges equal to the average Medicare discount per its policy.
COMMUNITY NEEDS ASSESSMENT	SCHEDULE H, PART VI, QUESTION 2	ANNUALLY BAPTIST HOSPITALS OF SOUTHEAST TEXAS PERFORMS A COMMUNITY NEEDS ASSESSMENT TO IDENTIFY ACTIVITY TO IMPROVE THE HEALTH STATUS OF THE COMMUNITY AS A WHOLE. THESE ACTIVITIES ARE BASED ON A SPECIFIC COMMUNITY WIDE ASSESSMENT OF NEED USING A VARIETY OF SOURCES INCLUDING, DISCUSSIONS WITH LEADERS OF COMMUNITY ORGANIZATIONS, STATE AND COMMUNITY DATA AND HOSPITAL ADMISSION AND EMERGENCY ROOM TRENDS. THE COMMUNITY BENEFITS PLAN IS DESIGNED IN ACCORDANCE WITH THE TEXAS STATUTES AND CODES OF HEALTH AND SAFETY, TITLE 4F. HEALTH FACILITIES, POWERS AND DUTIES OF HOSPITALS, CHAPTER 311. POWERS AND DUTIES OF HOSPITALS, SUBCHAPTER C. HOSPITAL DATA REPORTING AND COLLECTION SYSTEM AND SUBCHAPTER D. COMMUNITY BENEFITS AND CHARITY CARE. IN PREPARING THIS REPORT THE ORGANIZATION USES DATA AVAILABLE FOR THE COUNTIES OF JEFFERSON, ORANGE, HARDIN AND JASPER, TEXAS HEALTH SERVICE REGION 5 AND THE STATE OF TEXAS. AFTER REVIEWING THE DATA AVAILABLE AND SPEAKING TO A VARIETY OF COMMUNITY REPRESENTATIVES, THE ORGANIZATION IDENTIFIED THAT A SIGNIFICANT NUMBER OF PEOPLE ARE AFFECTED BY STROKE AND CANCER IN THE SERVICE AREA. THE ORGANIZATION LEADERSHIP SELECTED THESE AS THE PRIMARY AREAS OF FOCUS FOR FY 2012 COMMUNITY BENEFIT PLAN OBJECTIVES. FIVE OBJECTIVES WERE DEVELOPED TO HELP IMPROVE THE HEALTH STATUS OF THE COMMUNITY. OBJECTIVE #1: IMPLEMENT A VARIETY OF CANCER AWARENESS, EDUCATION AND SCREENING PROGRAMS FOCUSED ON BREAST CANCER, PROSTATE CANCER AND LUNG AND NECK CANCER TO REINFORCE THE ORGANIZATIONS FOCUS ON CANCER EDUCATION. TO MEET THIS COMMUNITY NEED THE ORGANIZATION PARTNERED WITH THE JULIE ROGERS GIFT OF LIFE PROGRAM TO OFFER FREE MAMMOGRAMS AND PROSTATE SCREENING TO INDIVIDUALS UNABLE TO OBTAIN THE PROCEDURES DUE TO FINANCIAL LIMITATIONS OR OTHER CONSTRAINTS. 1,589 FREE MAMMOGRAMS AND 382 FREE PROSTATE SCREENINGS WERE PERFORMED IN FY 2011. THE ORGANIZATION PROVIDES FREE TOBACCO AWARENESS PROGRAMS IN THE HOSPITALS, AT EMPLOYER LOCATIONS AND AT COMMUNITY EVENTS TO OUTLINE THE RISKS OF SMOKING AND TOBACCO USE, INCLUDING LUNG CANCER AND OTHER PULMONARY DISEASES. BAPTIST HOSPITALS OF SOUTHEAST TEXAS HAS RECEIVED RECOGNITION ON BEING A "TOBACCO FREE" FACILITY. OBJECTIVE #2: CONTINUE IMPLEMENTATION OF THE DNV STROKE CERTIFIED PROGRAM AND GROW STROKE EDUCATION PROGRAM FOR ORANGE, JEFFERSON, JASPER AND HARDIN COUNTIES. EDUCATION PROGRAMS ON PREVENTION OF VASCULAR DISEASES RELATED TO STROKES ARE AVAILABLE TO THE COMMUNITY FOR DIFFERENT ORGANIZATIONS, EMPLOYERS AND HEALTHCARE PROVIDERS. BHSET IS PARTNERING WITH THE CITY OF BEAUMONT TO BE A CERTIFIED STROKE CITY. THIS INCLUDES EDUCATION, THE HOSPITALS NON-SMOKING POLICY AND SERVING ON VARIOUS COMMITTEES REGARDING THIS INITIATIVE. OBJECTIVE #3: IMPLEMENT A COMMUNITY WELLNESS PROGRAM ENCOMPASSING HEALTH EDUCATION, SCREENINGS AND SUPPORT GROUPS. BAPTIST HOSPITALS OF SOUTHEAST TEXAS REACHES OUT TO THE COMMUNITY BY OFFERING NUMEROUS CLASSES, SPEAKERS AND OTHER INFORMATIVE ACTIVITY. THE ORGANIZATION MAKES STAFF AVAILABLE AS SPEAKERS FOR CIVIC GROUPS, INDUSTRIAL PARTNERS AND MEDIA APPEARANCE AND HEALTH FAIRS TO ADDRESS HEALTH TOPICS OF PARTICULAR CONCERN TO THE PUBLIC. IN ADDITION THE ORGANIZATION HAS INITIATED SUPPORT GROUPS FOR THE COMMUNITY BASED ON DEMAND FOR THE PROGRAMS. SOME OF THE GROUPS CURRENTLY MEETING INCLUDE: ALZHEIMER'S SUPPORT GROUP, NARCOTICS ANONYMOUS, ALCOHOLICS ANONYMOUS, NEW BEGINNING SUPPORT GROUP, CANCER SUPPORT GROUP, DIABETES SUPPORT GROUP, PROSTATE CANCER SUPPORT GROUP, BETTER START FOR BABIES PROGRAM AND MENDED HEARTS. TRANQUILITY PARTIAL HOSPITAL PROGRAM WAS DESIGNED TO ENHANCE SERVICES TO SENIORS IN SOUTHEAST TEXAS. OBJECTIVE #4: PROVIDE LODGING TO OUT-OF-TOWN PATIENTS AND THEIR FAMILIES AT THE REAUD GUEST HOUSE. BECAUSE OF THE GROWING NUMBER OF OUT-OF-TOWN PATIENTS SEEKING MEDICAL SERVICES AT BAPTIST HOSPITALS OF SOUTHEAST TEXAS, THE HEALTH SYSTEM WILL OFFER A LOW-COST OPTION FOR PATIENT FAMILIES NEEDING A PLACE TO STAY. MANY OF THESE FAMILIES MAY NOT BE ABLE TO AFFORD HOTEL ROOMS FOR LONGER DURATIONS. THE HOSPITAL WILL PROVIDE FINANCIAL ASSISTANCE TO FAMILIES WITH NEED. OBJECTIVE #5: CREATE NURSING HOME/COMMUNITY HEALTH PARTNERSHIP TO PROVIDE EDUCATION AND INCREASED COLLABORATION WHICH WILL ASSIST IN IMPROVING QUALITY AND EFFICIENCY OF CARE. BHSET PSA IS EXPECTED TO EXPERIENCE THE MOST GROWTH OVER THE NEXT 5 YEARS IN THE 65-PLUS POPULATION. BECAUSE OF THE LARGE NUMBER OF NURSING HOME AND COMMUNITY HEALTH PARTNERS IN THE AREA, IT IS ADVANTAGEOUS FOR BHSET TO FOSTER RELATIONSHIPS WITH THESE GROUPS. THE HOSPITAL WILL FACILITATE A QUARTERLY NURSING HOME CONSORTIUM AND BI-ANNUAL EDUCATIONAL PROGRAMS TO CONCENTRATE ON READMISSIONS AND UNNECESSARY HOSPITALIZATIONS.
PATIENT EDUCATION	SCHEDULE H, PART VI, QUESTION 3	All unfunded patients are provided verbal and written information regarding the hospitals Charity policy as well as other sources of funding available within the communities. Patients are screened to determine if they would qualify for Medicaid, County Indigent Programs, Children's Health Insurance Program, Crime Victims and other programs. One on one assistance is provided in completing the applications, providing the necessary documentation and providing transportation if necessary to appointments.
COMMUNITY INFORMATION	SCHEDULE H, PART VI, QUESTION 4	The primary service are (PSA) zip codes for BHSET fall within four counties: Jasper, Jefferson, Hardin and Orange. The Texas Department of State Health groups counties into 11 different Health Service Regions. Jasper, Jefferson, Hardin and Orange Counties are included in Health Service Region 5. DEMOGRAPHICS - The estimated primary service area (PSA) 2010 population is 291,184. The secondary service area (SSA) estimated 2010 population is 193,968. The PSA and SSA population growth is primarily coming from the 65+ years age group. The majority of PSA growth is expected to come from the Hispanic and "Other" polulations while the White population is expected to decrease over the next five years.
PROMOTION OF COMMUNITY HEALTH	SCHEDULE H, PART VI, QUESTION 5	BAPTIST HOSPITALS OF SOUTHEAST TEXAS ARE A NOT-FOR-PROFIT HEALTHCARE SYSTEM WITH SPIRITUAL VALUES, DEDICATED TO PROVIDING HIGH QUALITY HEALTH SERVICES IN ORDER TO IMPROVE THE HEALTH OF THE PEOPLE IN SOUTHEAST TEXAS. BAPTIST HOSPITALS OF SOUTHEAST TEXAS SUPPORTS AND PARTICIPATES IN, EITHER THROUGH FUNDING OR MANPOWER OR BOTH, MANY PROJECTS ACROSS THE COMMUNITY. DURING THE 2012 FISCAL YEAR, BAPTIST HOSPITALS OF SOUTHEAST TEXAS CONTRIBUTED TO COMMUNITY AGENCIES $98,343 FOR SPONSORSHIPS, DONATIONS OF FUNDS, SUPPLIES AND THE LABOR OF OUR EMPLOYEES, MAKE POSSIBLE A WIDER OUTREACH. COLLECTIVELY, GREATER STRIDES CAN BE ACCOMPLISHED TOWARD COMMUNITY WELLNESS. THE JULIE ROGERS GIFT OF LIFE FREE MAMMOGRAM PROGRAM WAS ESTABLISHED IN 1993 AS A COLLABORATIVE EFFORT BETWEEN THE JULIE & BEN ROGERS CANCER INSTITUTE, BAPTIST HOSPITALS OF SOUTHEAST TEXAS AND UNIVERSITY OF TEXAS MEDICAL BRANCH. THE GIFT OF LIFE HAS MADE MAMMOGRAPHY SERVICES AVAILABLE TO WOMEN WHO HAVE NEEDED THE EXAMINATION BUT WERE UNABLE TO OBTAIN THE PROCEDURE DUE TO FINANCIAL LIMITATIONS OR OTHER CONSTRAINTS. SINCE ITS INCEPTION, OVER 15,500 FREE MAMMOGRAMS HAVE BEEN PROVIDED TO WOMEN IN SOUTHEAST TEXAS. IN 2011-2012, 1,589 MAMMOGRAMS WERE PROVIDED AT THE BEAUMONT AND ORANGE HOSPITALS. THE JULIE & BEN ROGERS CANCER INSTITUTE OFFERED 382 FREE PROSTATE SCREENINGS IN 2011-2012 TO PROMOTE EARLY DETECTION OF THE DISEASE. A TEAM OF THE CANCER INSTITUTE EMPLOYEES GENEROUSLY CONTRIBUTES THEIR TIME AND EXPERTISE TO THE GIFT OF LIFE EDUCATIONAL PROGRAMS. THE PARTNERSHIP IN EDUCATION PROVIDES THE MECHANISM FOR THE ESTABLISHED RELATIONSHIP BETWEEN BAPTIST HOSPITALS OF SOUTHEAST TEXAS, REGINA-HOWELL ELEMENTARY SCHOOL, HATTON & SIMS ELEMENTARY SCHOOLS, COMMUNITY CHRISTIAN SCHOOL AND ALL SAINT'S EPISCOPAL SCHOOL AND VIDOR ISD. NOW IN THE FIFTEENTH SUCCESSFUL YEAR, BAPTIST HOSPITALS OF SOUTHEAST TEXAS CONTRIBUTES TO BOTH STUDENTS AND STAFF BY PROVIDING MANPOWER FOR SCHOOL EVENTS, FURNISHES FLU SHOTS AND WELLNESS INFORMATION TO STAFF AND DEDICATES FUNDING FOR SPECIAL EVENTS. FACILITY PROVIDES MEDICAL EQUIPMENT SUCH AS BLOOD PRESSURE MACHINES, DIGITAL THERMOMETERS AND PORTABLE DEFIBRILLATORS. CPR CLASSES AND TB SKIN TEST ARE ALSO PROVIDED. THE POSITIVE POINTS PROGRAM HAS BEEN ESTABLISHED IN CONJUNCTION WITH BISD AND OISD SCHOOL/BUSINESS PARTNERSHIP. PROGRAM INVOLVES THIRD, FOURTH AND FIFTH GRADE STUDENTS WHO ARE AWARDED POINTS FROM HIS/HER TEACHER BASED ON POSITIVE BEHAVIORS. THESE POSITIVE BEHAVIORS MAY CONSIST OF RANDOM ACTS OF KINDNESS, COURTESY TOWARD OTHERS, GOOD LISTENING SKILLS AND RESPECT FOR ADULTS. PROGRAM IS PRESENTED ON A QUARTERLY BASIS DURING THE SCHOOL YEAR. STUDENTS TOUR FACILITY AND LEARN OF SERVICES PROVIDED TO THEIR COMMUNITY. BEFORE LEAVING, EACH STUDENT MAKES A GIFT AND PRESENTS TO PATIENTS LOCATED ON STROKE AND HEART FLOORS. THE EMPLOYEES OF BAPTIST HOSPITALS OF SOUTHEAST TEXAS ARE DEDICATED TO ENHANCING COMMUNITY WELLNESS. DURING 2011-2012, THE EMPLOYEES CONTRIBUTED TIME, ENTHUSIASM AND FUNDING TO SEVERAL INITIATIVES. DURING THE HOLIDAY SEASON, INDIVIDUALS COLLECTED GIFTS FOR CHILDREN WITHIN THE CHILD PROTECTIVE SERVICE AGENCY OF SOUTHEAST TEXAS. THE "ANGEL TREE" AND EMPLOYEE PARTICIPANTS PROVIDED 125 CHILDREN WITH A JOYOUS CHRISTMAS DELIVERY. EQUALLY COMPASSIONATE, EMPLOYEES INITIATE A CELEBRATION, GIFT GIVING AND MENTORING FOR THE INHABITANTS OF BUCKNER'S CHILDREN VILLAGE. THIS ANNUAL EVENT REACHED 95 CHILDREN IN 2011. COLLECTION OF USED TELEPHONES FOR THE HOPE CRISIS CENTER AND TEDDY BEARS FOR POLICE LEAGUE WERE CONTRIBUTERD BY EMPLOYEES. UNITED WAY CAMPAIGNS, BLOOD DRIVES, RELAY FOR LIFE AND MARCH OF DIMES ALL BENEFITTED FROM EMPLOYEE DRIVEN FINANCIAL CAMPAIGN. THE DEPARTMENT OF RELIGION OF THE BAPTIST HOSPITALS OF SOUTHEAST TEXAS DELIVERS NUMEROUS BENEFITS TO THE PATIENTS, THEIR FAMILIES AND MEMBERS OF THE COMMUNITY AT LARGE. THE CHAPLAINS PROVIDE FINANCIAL ASSISTANCE THROUGH THE CHAPLAIN'S EMERGENCY FUND. IN 2011-2012, $33,266 WAS DONATED FOR MEDICINE, FOOD, HOUSING AND TRAVEL TO PATIENTS AND FAMILY MEMBERS THROUGHOUT SOUTHEAST TEXAS. ADDITIONALLY, CHAPLAINS PROVIDED SESSIONS OF PASTORAL COUNSELING TO INDIVIDUALS FROM THE COMMUNITY. MANY OF THESE DOLLARS ARE CONTRIBUTED BY FUNDRAISING ACTIVITIES WITHIN THE BAPTIST HOSPITAL ORGANIZATION. THE CONGREGATIONAL HEALTH MINISTRY (PARISH NURSING) PROGRAMMING IN THE CHAPLAINCY DEPARTMENT PROVIDED UNREIMBURSED SERVICES AND TRAINING TO THE COMMUNITY THROUGH TRAINING FAITH COMMUNITY NURSES TO FUNCTION IN THEIR RESPECTIVE CONGREGATIONS AND ASSISTING THEM WITH THE IMPLEMENTATION OF THEIR CONGREGATIONAL PROGRAMMING. THESE UNREIMBURSED EXPENSES INCLUDED UNREIMBURSED PREVENTIVE CARE SERVICES TO SOUTHEAST TEXAS COMMUNITIES, SALARY AND BENEFITS OF FACULTY, AND OPERATING EXPENSES FOR THE FCN DEPARTMENT THROUGHOUT THE YEAR. THE TOTAL FOR 2012 IS $66,541. MORE THAN 1200 55+ MEMBERS HAVE AVAILABLE TO THEM MONTHLY EDUCATIONAL SEMINARS ON HEALTH, WELLNESS AND INDEPENDENT LIVING ISSUES INCLUDING TAKING MEDICATIONS, BASIC FIRST AID, HEALTH SCREENING AND DEFENSIVE DRIVING CLASSES. BAPTIST HOSPITALS OF SOUTHEAST TEXAS REACHES OUT TO THE COMMUNITY BY OFFERING NUMEROUS CLASSES, SPEAKERS AND OTHER INFORMATIVE ACTIVITIES. HOSPITAL PERSONNEL ARE MADE AVAILABLE AS SPEAKERS FOR CIVIC GROUPS, INDUSTRIAL PARTNERS, AND MEDIA APPEARANCE AND HEALTH FAIRS TO ADDRESS HEALTH TOPICS OF PARTICULAR CONCERN TO THE PUBLIC. IN 2011-2012, OVER 13,036 INDIVIDUALS RECEIVED INFORMATION NEEDED TO MAKE HEALTHY LIFESTYLE CHOICES. IN ADDITION, QUARTERLY COMMUNITY EDUCATIONAL NEWSLETTERS ARE MAILED TO APPROXIMATELY 30,000 HOUSEHOLDS. NEW MOBILE APPLICATION HAS BEEN CREATED TO PROVIDE HEALTH TIPS AND REMINDERS TO USERS THAT ENROLL. GRANT FUNDING HAS BEEN ESTABLISHED THROUGH DHHS FOR HIV EDUCATION IN THE COMMUNITY. BAPTIST HOSPITALS OF SOUTHEAST TEXAS PARTNERED WITH CITY OF BEAUMONT TO COLLABORATE TO ACHIEVE GOLD RECOGNITION AS A HEART AND STROKE HEALTHY CITY BY TEXAS COUNCIL ON CARDIOVASCULAR DISEASES. BAPTIST HOSPITALS OF SOUTHEAST TEXAS HAS DESIGNED SUPPORT GROUPS TO ENCOURAGE FOLLOW-UP AND CONTINUED EDUCATION FOR PATIENTS DURING AND AFTER AN ILLNESS. BAPTIST HOSPITALS OF SOUTHEAST TEXAS HAVE INITIATED OR SUPPORTED GROUPS FOR PATIENTS, FAMILY MEMBERS AND THE COMMUNITY AT LARGE: NEW BEGINNING SUPPORT GROUP, CANCER SUPPORT GROUP, DIABETES SUPPORT GROUP, STROKE WISE SUPPORT GROUP. FOR OVER 60 YEARS, BAPTIST HOSPITALS OF SOUTHEAST TEXAS HAS BEEN BUILT ON A SOLID NINE - COUNTY AREA THAT WE SERVE. MEETING THE COMMUNITY'S NEEDS WAS THE UNDERLYING PRINCIPLE UPON WHICH THIS HOSPITAL WAS FOUNDED. BAPTIST HOSPITALS OF SOUTHEAST TEXAS ARE MAKING FUNDAMENTAL DIFFERENCES IN THE GENERAL HEALTH AND WELL-BEING OF THE COMMUNITIES WE SERVE.
AFFILIATED HEALTH CARE SYSTEM	SCHEDULE H, PART VI, QUESTION 6	Baptist Hospitals of Southeast Texas consists of Baptist Beaumont Hospital a 508 bed general acute care hospital and Baptist Orange Hospital, 194 bed general acute care hospital. Baptist Beaumont Hospital includes the Ben & Julie Rogers Cancer Center, Fannin Behavioral Health Center and a 15 bed Inpatient Rehab Unit. Both hospitals have been an integral part of the community since their inception and continue to search for ways to better serve our communities.
STATE FILING OF COMMUNITY BENEFIT REPORT	SCHEDULE H, PART VI, QUESTION 7	STATE OF TEXAS

Schedule H (Form 990) 2011

Additional Data

Software ID:
Software Version:

- TIN:

Schedule I
(Form 990)

Department of the Treasury
Internal Revenue Service

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

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

Attach to Form 990

OMB No. 1545-0047

2011

Open to Public
Inspection

Name of the organization
Baptist Hospitals of Southeast Texas

Employer identification number
74-1303720

Part I

General Information on Grants and Assistance

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

Yes No

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

Part II

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

(a) Name and address of organization or government	(b) EIN	(c) IRC Code section if applicable	(d) Amount of cash grant	(h) Purpose of grant or assistance
(1) Sports Society for American HealthPO Box 608 Beaumont,TX77704	76-0646118	501(c)(3)	12,500	community support
(2) Julie RogersGift of LifePMB 46148 S Dowlen Rd Beaumont,TX77707	75-1003314	501(c)(3)	10,000	COMMUNITY SUPPORT
(3) Dishman Department of NursingPO Box 10081 Beaumont,TX77710	74-6000298	115	25,850	community support

Enter total number of section 501(c)(3) and government organizations listed in the line 1 table ................. Bullet Image

Enter total number of other organizations listed in the line 1 table ......................... . Bullet Image

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

Cat. No. 50055P

Schedule I (Form 990) 2011

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

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
Form 990, Schedule I	Description of Organization's Procedures for Monitoring the Use of Grants	The Director of Marketing maintains the records to substantiate any recipient (other than employees) that receives grants or assistance from Baptist Hospitals of Southeast Texas. This is also recorded on our Annual Community Benefits Report. Records are maintained to document and monitor the amount of assistance as well as the selecton criteria used to grant the award.

Schedule I (Form 990) 2011

Additional Data

Software ID:
Software Version:

- TIN:

Schedule J
(Form 990)

Department of the Treasury
Internal Revenue Service

Compensation Information

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

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

Attach to Form 990. SchJMediumBullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization

Baptist Hospitals of Southeast Texas

Employer identification number

74-1303720

Part I

Questions Regarding Compensation

Yes

Check the appropiate box(es) if the organization provided any of the following to or for a person listed in Form
990, Part VII, Section A, line 1a. Complete Part III to provide any relevant information regarding these items.

First-class or charter travel Housing allowance or residence for personal use

Travel for companions Payments for business use of personal residence

Tax idemnification and gross-up payments Health or social club dues or initiation fees

Discretionary spending account Personal services (e.g., maid, chauffeur, chef)

If any of the boxes in line 1a are checked, did the organization follow a written policy regarding payment or reimbursement or provision of all the expenses described above? If "No," complete Part III to explain....

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

Indicate which, if any, of the following the organization uses to establish the compensation of the
organization's CEO/Executive Director. Check all that apply. Do not check any boxes for methods
used by a related organization to establish compensation of the CEO/Executive Director, but explain in Part III.

Compensation committee Written employment contract

Independent compensation consultant Compensation survey or study

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

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

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

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

Yes

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

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

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

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

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

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

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

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

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

Yes

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

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

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

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

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

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

Cat. No. 50053T

Schedule J (Form 990) 2011

Page 2

Part II

Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees. Use duplicate copies if additional space is 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) for each listed individual must equal the total amount of Form 990, Part VII, Section A, line 1a, applicable column (D) and column (E) for that individual.

(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 as deferred in prior Form 990
(A) Name		(i) Base compensation	(ii) Bonus & incentive compensation	(iii) Other reportable compensation	(C) Retirement and other deferred compensation	(D) Nontaxable benefits	(E) Total of columns (B)(i)-(D)	(F) Compensation reported as deferred in prior Form 990
(1) David Parmer	(i) (ii)	0 369,949	0 251,617	0 8,740	0 18,050	0 8,256	0 656,612	0 0
(2) Gary Troutman	(i) (ii)	0 237,017	0 61,979	0 1,632	0 17,407	0 6,060	0 324,095	0 0
(3) Gerald Bryant	(i) (ii)	0 187,289	0 49,667	0 24,655	0 12,105	0 11,310	0 285,026	0 0
(4) David Butler	(i) (ii)	0 261,492	0 111,285	0 52,783	0 14,798	0 15,684	0 456,042	0 38,204
(5) Nicholas Crafts	(i) (ii)	0 165,525	0 28,568	0 25,796	0 13,237	0 7,175	0 240,301	0 0
(6) Jarren Garrett	(i) (ii)	0 156,376	0 31,561	0 1,083	0 12,170	0 4,236	0 205,426	0 0
(7) Bryan Chandler	(i) (ii)	154,443 0	37,447 0	0 0	5,766 0	4,445 0	202,101 0	0 0
(8) Mathis Haynes	(i) (ii)	268,521 0	48,360 0	0 0	2,494 0	7,605 0	326,980 0	0 0
(9) Gerald Thomas	(i) (ii)	166,653 0	26,147 0	0 0	1,063 0	6,848 0	200,711 0	0 0
(10) Quan Pho	(i) (ii)	162,880 0	20,000 0	0 0	4,890 0	5,919 0	193,689 0	0 0
(11) Neil Capili	(i) (ii)	161,853 0	3,778 0	0 0	2,116 0	6,342 0	174,089 0	0 0
(12) Gary Hay	(i) (ii)	166,973 0	3,516 0	0 0	5,280 0	6,100 0	181,869 0	0 0
(13) Wilson Weber	(i) (ii)	0 415,342	0 223,642	0 70,657	0 99,418	0 15,684	0 824,743	0 38,400

Schedule J (Form 990) 2011

Page 3

Part III

Supplemental Information

Complete this part to provide the information, explanation, or descriptions required for Part I, lines 1a, 1b, 3, 4c, 5a, 5b, 6a, 6b, 7, and 8. Also complete this part for any additional information.

Identifier	Return Reference	Explanation
Supplemental Compensation Information		THE ORGANIZATION'S EXECUTIVES ARE EMPLOYED BY THE PARENT ORGANIZATION, VHA SOUTHWEST COMMUNITY HEALTH CORPORATION (CHC), AND THEREFORE FOLLOW THE COMPENSATION POLICY OF SOUTHWEST COMMUNITY HOSPITAL, ITS CLASS A MEMBER, WHICH IN TURN FOLLOWS THE COMPENSATION POLICY OF CHC. CHC ENGAGED SULLIVAN COTTER TO CONDUCT A COMPETITIVE MARKET ANALYSIS OF THE COMPENSATION OF CHC'S TOP MANAGEMENT OFFICIALS, OFFICERS, DIRECTORS AND KEY EMPLOYEES. SULLIVAN COTTER GATHERED DATA RELATED TO ON JOB DESCRIPTIONS, SCOPE OF RESPONSIBILITY, AND CURRENT INCUMBENTS' COMPENSATION. SULLIVAN COTTER RECOMMENDED APPROPRIATE COMPARISON DATA AND UTILIZED SURVEY DATA FROM FOUR MAJOR EXECUTIVE COMPENSATION SURVEY PROVIDERS TO PROVIDE MARKET DATA AND EXECUTIVE COMPENSATION RECOMMENDATIONS THAT MEET CHC'S COMPENSATION PHILOSOPHY. SULLIVAN COTTER'S RECOMMENDATIONS WERE PRESENTED TO THE CHC COMPENSATION COMMITTEE OF THE BOARD FOR REVIEW AND APPROVAL. CHC ALSO CONDUCTS PERIODIC REVIEWS OF COMPENSATION TO DETERMINE WHETHER COMPENSATION ARRANGEMENTS AND BENEFITS ARE REASONABLE, BASED ON COMPETENT SURVEY INFORMATION, AND THE RESULT OF ARM'S LENGTH BARGAINING. THE ORGANIZATION FOLLOWED THIS PROCESS FOR THE YEAR ENDED 6/30/2012 FOR ITS OFFICERS, DIRECTORS, KEY EMPLOYEES AND OTHER MANAGEMENT OFFICIALS. SCHEDULE J, PART I, LINE 4B NONQUALIFIED RETIREMENT PLAN PARTICIPATION WAS PAID TO DAVID L. BUTLER - $57,804 WILSON WEBER - $140,268 SCHEDULE J, PART I, LINE 6A DEPARTMENT DIRECTORS WERE ELIGIBLE FOR DISCRETIONARY INCENTIVE PAYMENT GOAL "DIPG" PAYMENT IN 2011, AS PART OF A DEPARTMENT DIRECTORS INCENTIVE PROGRAM. THE DIPG PROGRAM CONSISTED OF BHSET GOALS BASED ON HOSPITAL WIDE INITIATIVES IN OPERATIONAL EXCELLENCE, QUALITY, PATIENT SATISFACTION, EMPLOYEE SATISFACTION AND GROWTH. UNDER THE DIPG PROGRAM, EACH DEPARTMENT DIRECTOR WAS ASSIGNED THREE INDIVIDUAL GOALS AGREED UPON WITH THEIR SENIOR MANAGER. THE HOSPITAL ALSO HAD TO MEET EARNINGS BEFORE INTEREST, DEPRECIATION & AMORTIZATION EARNINGS LEVEL FOR THE DEPARTMENT DIRECTORS TO BE ELIGIBLE FOR PAYOUT AND THE TOTAL PAYOUT TO THEM WAS BASED ON THEIR FINAL ACHIEVEMENT LEVEL. IN FY11 THE HOSPITAL MET ITS EARNINGS BEFORE INTEREST, DEPRECIATION AND AMORTIZATION (EBIDA) TARGET.

Schedule J (Form 990) 2011

Additional Data

Software ID:
Software Version:

- TIN:

Schedule L
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Transactions with Interested Persons

Complete if the organization answered
"Yes" on Form 990, Part IV, lines 25a, 25b, 26, 27, 28a, 28b, or 28c,
or Form 990-EZ, Part V lines 38a or 40b.
MediumBullet

Attach to Form 990 or Form 990-EZ. MediumBullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization

Baptist Hospitals of Southeast Texas

Employer identification number

74-1303720

Part I

Excess Benefit Transactions (section 501(c)(3) and section 501 (c)(4) organizations only).
Complete if the organization answered "Yes" on Form 990, Part IV, line 25a or 25b, or Form 990-EZ, Part V, line 40b.

1(a) Name of disqualified person	(b) Description of transaction	(c) Corrected?
1(a) Name of disqualified person	(b) Description of transaction	Yes	No

Enter the amount of tax imposed on the organization managers or disqualified persons during the year under section 4958. ......................... Bullet Image

Enter the amount of tax, if any, on line 2, above, reimbursed by the organization ....... Bullet Image

Part II

Loans to and/or From Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 26, or Form 990-EZ, Part V, line 38a.

(a) Name of interested person and purpose	(b) Loan to or from the organization?		(c)Original principal amount	(d)Balance due	(e) In default?		(f) Approved by board or committee?		(g)Written agreement?
(a) Name of interested person and purpose	To	From	(c)Original principal amount	(d)Balance due	Yes	No	Yes	No	Yes	No






Total ............... $

Part III

Grants or Assistance Benefitting Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 27.

(a) Name of interested person	(b)Relationship between interested person and the organization	(c)Amount of grant or type of assistance

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

Cat. No. 50056A

Schedule L (Form 990 or 990-EZ) 2011

Page 2

Part IV

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

(a) Name of interested person	(b) Relationship between interested person and the organization	(c) Amount of transaction	(d) Description of transaction	(e) Sharing of organization's revenues?
(a) Name of interested person		(c) Amount of transaction	(d) Description of transaction	Yes	No
(1) Gary Wayne Coker Board Member Tru	See Schedule L, Part V	113,568	See Schedule L, Part V		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
BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS	SCHEDULE L, PART IV	Gary Wayne Coker, Board Member, Trustee: Partner in a Law Firm which provides legal services to BHSET (Germer Gertz Law Firm). Gary Wayne Coker does not participate in providing those legal services.

Schedule L (Form 990 or 990-EZ) 2011

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE O
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Supplemental Information to Form 990 or 990-EZ

Complete to provide information for responses to specific questions on
Form 990 or to provide any additional information.
MediumBullet

Attach to Form 990 or 990-EZ.

OMB No. 1545-0047

2011

Open to Public
Inspection

Name of the organization

Baptist Hospitals of Southeast Texas

Employer identification number

74-1303720

Identifier	Return Reference	Explanation
ORGANIZATION'S MISSION STATEMENT	FORM 990, PART III, LINE 1	The Baptist Hospitals of Southeast Texas are not-for-profit, community-owned, health care facilities with Spiritual values, dedicated to providing high quality health services and Sacred Work in a Christian environment. For the year ending June 30, 2012, Baptist Hospitlas of S/E TX provided the following: 1. Admissions 19,163 2. Average Daily Census 234 3. Births 1,945 4. Total ER Visits 94,888 5. O/P Visits 73,068 6. Total Surgeries 8,605
PROGRAM SERVICE ACTIVITIES	FORM 990, PART III, LINE 4A	WE HAVE ONE PRIMARY SERVICE ACTIVITY AND THAT IS TO PROVIDE HIGH QUALITY HEALTH SERVICES TO THE SOUTHEAST TEXAS COMMUNITY. PATIENT SERVICE REVENUE FOR THE BEAUMONT AND ORANGE FACILITIES INCLUDES BOTH INPATIENT AND OUTPATIENT ROUTINE AND ANCILLARY REVENUE. FOR OVER SIXTY YEARS, BAPTIST HOSPITALS OF SOUTHEAST TEXAS HAS BEEN DEDICATED TO PROVIDING QUALITY HEALTH SERVICES IN A CHRISTIAN ENVIRONMENT. OUR PARTNERS IN CARING - OUR PHYSICIANS, OUR NURSES AND STAFF - PRACTICE A PHILOSOPHY THAT INSPIRES AN ENVIRONMENT OF TEAMWORK, RESPECT, ENCOURAGEMENT, OPPORTUNITY AND TRUST. OUR EFFORTS CONTINUE EACH DAY AS WE STRIVE TO OFFER NEWER AND BETTER PROGRAMS, SERVICES AND TECHNOLOGIES FOR THE MEMBERS OF OUR COMMUNITY. WITH A COMMITMENT TO EXCEED CUSTOMER EXPECTATIONS THROUGH DISTINGUISHED QUALITY, SAFETY, CUSTOMER SERVICE, SPIRITUAL VALUES, OPERATIONAL EXCELLENCE AND INNOVATION IN MEETING THE HEALTHCARE NEEDS OF THOSE BEING SERVICED, PLANS FOR ADDITIONAL SERVICES BECAME A REALITY. CANCER SERVICES FOR SOUTHEAST TEXAS BEGAN IN 1990 WHEN THE BEN AND JULIE ROGERS CANCER INSTITUTE WAS DEDICATED TO PROVIDING OUTPATIENT CHEMOTHERAPY AS WELL AS INPATIENT AND OUTPATIENT RADIATION THERAPY SERVICES. EACH YEAR ADVANCEMENTS CONTINUE IN GROWTH AND IMPROVEMENTS INCLUDING CONSTRUCTION OF THE NEW BAPTIST BEAUMONT HOSPITAL, WHICH INCLUDE APPROXIMATELY 160,000 SQUARE FEET TO THE EXISTING EAST CAMPUS. THE INNOVATIVE ADDITION WOULD INCLUDE ADDITIONAL INTENSIVE CARE AND TELEMETRY ROOMS AND A NEW EMERGENCY DEPARTMENT THAT INCREASED THE NUMBER OF PATENTS WHO CAN BE SERVED TO 90,000 PER YEAR. THE NEW CONSTRUCTION ALSO INCLUDED NEW SURGERY SUITES, ENDOSCOPY, CATHETERIZATION LABS, IMAGING DEPARTMENT, OUTPATIENT HOLDING AREA, HOSPITAL CAFETERIA, CHAPEL, PHARMACY, AND GIFT SHOP. ANOTHER 52,000 SQUARE FEET OF RENOVATIONS WERE COMPLETED PROVIDING NEW GASTROINTESTINAL LABS, A NEW LABORATORY, REHABILITATION UNIT, PULMONARY FUNCTIONS LAB AND DAY SURGERY UNITS. WITH THE COMPLETION OF THE "NEW CITY OF HEALING" IN 2003, THE EXPANSION OF SERVICES WAS AT THE HEART OF THE ORGANIZATION. FOCUSING ON THE SMALLEST MEMBERS OF THE COMMUNITY, THE CHILDREN'S UNIT AT BAPTIST BEAUMONT HOSPITAL ORIGINATED-PROVING CARING FOR KIDS IS JUST THE RIGHT SIZE AT BAPTIST BEAUMONT HOSPITAL. MEETING THE UNIQUE NEEDS OF CHILDREN, THE FIRST CERTIFIED CHILD LIFE SPECIALIST WAS ADDED TO HELP CHILDREN FROM INFANTS TO TEENS AND THEIR FAMILIES COPE WITH A HOSPITAL EXPERIENCE. THE CHILD LIFE SPECIALIST PROVIDES EMOTIONAL AND DEVELOPMENTAL SUPPORT WHILE GIVING HONEST INFORMATION GEARED TO A CHILD'S LEVEL OF UNDERSTANDING AND, OF COURSE, PLENTY OF CHILD'S PLAY! WITH OVER 40 MILLION PEOPLE FEELING EXHAUSTED BECAUSE THEY ARE EXPERIENCING A SLEEP DISORDER, BAPTIST BEAUMONT HOSPITAL PROUDLY ANNOUNCED THE SLEEP CENTER LOCATED AT THE MAIN CAMPUS. CHRONIC SLEEP DISORDERS CAN DISTURB FAMILY LIFE, AFFECT PRODUCTIVITY AT WORK AND EVEN RESULT IN DEATH. THE SLEEP CENTER WAS ESTABLISHED TO PROVIDE COMPREHENSIVE CARE TO PATIENTS WHO ARE EXPERIENCING SLEEP PROBLEMS. SOME OF THE MOST COMMON DISORDERS INCLUDE: SLEEP APNEA, NARCOLEPSY, RESTLESS LEG SYNDROME AND INSOMNIA. BAPTIST BEAUMONT HOSPITAL'S WOUND HEALING AND BARIATRIC CENTER PROVIDES COMPREHENSIVE, OUTPATIENT WOUND CARE SERVICES, INCLUDING HYPERBARIC OXYGEN THERAPY. THE CENTER UTILIZES A MULTIDISCIPLINARY APPROACH TO WOUND CARE BY COORDINATING THE EFFORTS OF MULTIPLE SPECIALTIES TRAINED TO TREAT PATIENTS WITH CHRONIC OR NON-HEALING WOUNDS. THE CENTER IS STAFFED BY PHYSICIANS IN THE FOLLOWING SPECIALTIES: FAMILY MEDICINE, INFECTIOUS DISEASE, PODIATRY, AND THORACIC/VASCULAR SURGERY. THE CERTIFIED PROGRAM IS COMPLIANT WITH THE MOST STRINGENT STANDARDS OF PERFORMANCE. BY UTILIZING THE RIGOROUS STANDARDS AND CLINICAL PRACTICE GUIDELINES, SUPERIOR CARE IS PROVIDED TO THE COMMUNITY. THE WOUND HEALING AND BARIATRIC CENTER HAS RECEIVED THE GOLD SEAL OF APPROVAL IN DISEASE STATE MANAGEMENT FROM THE JOINT COMMISSION ON ACCREDITATION OF HOSPITAL ORGANIZATIONS. OVER THE NEXT FEW YEARS, ADDITIONAL PROGRAMS AND SERVICES SUCH AS THE STRYKER NAVIGATION TECHNOLOGY HAVE BEEN ADDED TO COMPLEMENT THE SERVICES PROVIDED AT BAPTIST BEAUMONT HOSPITAL. THE STRYKER NAVIGATION SYSTEM OFFERS A TECHNOLOGY OPTION THAT HELPS FACILITATE ACCURATE IMPLANT ALIGNMENT AND PROPER LIGAMENT BALANCING, WHICH ARE THE MOST IMPORTANT PREREQUISITES FOR THE ARTIFICIAL KNEE JOINT STABILITY, DURABILITY AND SUFFICIENT RANGE OF MOTION. NAVIGATED TOTAL KNEE REPLACEMENT IS AN EXTREMELY SUCCESSFUL WAY TO TREAT QUALIFYING PATIENTS WITH SEVERE KNEE PAIN. THE NEW SURGICAL NAVIGATION TECHNOLOGY THAT IS NOW IN PLACE GREATLY ENHANCES THE ABILITY TO RESTORE RANGE OF MOTION, OVERALL FUNCTION AND RETURNS PATIENTS TO NORMAL ACTIVITIES. AT BAPTIST BEAUMONT HOSPITAL, THE NEWEST ARRIVAL TO WOMEN'S SERVICES IS THE "HUGS AND KISSES" INFANT PROTECTION SYSTEM. LOCATED IN THE PEDIATRIC AND WOMEN'S SERVICES UNIT, AN ADVANCED SYSTEM HAS BEEN IMPLEMENTED FOR ENSURING THE SAFETY OF BABIES, HELPING TO ENSURE THAT A BABY IS MATCHED WITH ITS OWN MOTHER WHEN BROUGHT TO A ROOM FROM THE NURSERY AND THAT ONLY AUTHORIZED INDIVIDUALS MOVE A BABY THROUGH THE UNITS. THE VERICHIP RADIO TRANSMITTER IS PLACED ON THE BABY'S ANKLE. WITH A WIRELESS SYSTEM IN PLACE THROUGHOUT THE AREA, "HUGS" POLLS THE BABY'S MOTIONS EVERY SEVEN SECONDS TO DETERMINE THE EXACT LOCATION OF THE INFANT IN RELATION TO AN ELECTRONIC FLOOR PLAN THAT IS OBSERVED BY HOSPITAL STAFF. IN MAY 2006 THE NEW DAUPHIN CANCER SCREENING AND PREVENTION CENTER PARTNERED WITH THE JULIE AND BEN ROGERS CANCER INSTITUTE OPENED TO THE COMMUNITY. A FIRST IN SOUTHEAST TEXAS, THE CENTER OFFERS SCREENING TESTS FOR PROSTATE CANCER AND BREAST CANCER ALONG WITH PREVENTION PROGRAMS. THE DAUPHIN CENTER WAS THE FIRST IN THE AREA TO OFFER DIGITAL MAMMOGRAM IN SOUTHEAST TEXAS. IN 2007 THE TEXAS NURSES ASSOCIATION (TNA), A STATEWIDE PROFESSIONAL ORGANIZATION OF REGISTERED NURSES, ANNOUNCED THE NEW ADDITIONS TO THE LIST OF HOSPITALS IN TEXAS TO EARN THE NURSE-FRIENDLY HOSPITAL DESIGNATION. AWARDED ONLY TWICE A YEAR, THE TNA'S NURSE-FRIENDLY HOSPITAL DESIGNATION NOW BELONGS TO THE BAPTIST BEAUMONT CAMPUS. THE NEWEST RECIPIENTS JOIN ONLY THIRTY-ONE OTHER HOSPITALS FROM THE STATE'S 581 IN ATTAINING THE THREE-YEAR DESIGNATION. THIS AWARD TELLS THE COMMUNITY THAT BAPTIST BEAUMONT HOSPITAL IS COMMITTED TO THE HIGHEST QUALITY OF PATIENT CARE AND IT TELLS NURSES THAT THE HOSPITAL PROVIDES THE TYPE OF ENVIRONMENT THAT ALLOWS NURSES TO PRACTICE EXCELLENT PRACTICE CARE. LATER THE SAME YEAR, THE GREATER BEAUMONT CHAMBER OF COMMERCE RECOGNIZED BAPTIST BEAUMONT HOSPITAL FOR ITS LONG-TIME COMMITMENT TO SOUTHEAST TEXAS WHEN IT ANNOUNCED THE BEAUMONT FACILITY HAD BEEN RECOGNIZED AS THE RECIPIENT OF THE 2007 SPINDLETOP AWARD. RECOGNITION WAS GIVEN FOR THE ACCOMPLISHMENTS WITH THE NEW EXPANSION AND THE LEVEL OF HEALTHCARE PROVIDED TO THE COMMUNITY. BAPTIST HOSPITAL'S AWARD-WINNING CARE IS COMPLEMENTED BY BEING CERTIFIED AS AN ADVANCED PRIMARY STROKE CARE CENTER BY THE JOINT COMMISSION FOR DISEASE-SPECIFIC CARE. THE STROKE PROGRAM AT BAPTIST BEAUMONT HOSPITAL HAS BEEN RECOGNIZED FOR EXCEPTIONAL EFFORTS TO FOSTER BETTER OUTCOMES FOR STROKE PATIENTS. THE STROKE PROGRAM HAS PARTNERED WITH LOCAL VENDORS, MEDICAL PERSONNEL AND PHYSICIANS TO ESTABLISH THE NEW STROKEWISE SUPPORT GROUP DESIGNED TO PROVIDE STROKE SURVIVORS AND THEIR FAMILIES A WAY TO MEET OTHER STROKE SURVIVORS OR CAREGIVERS.
PROGRAM SERVICE ACTIVITIES (CONT.)	FORM 990, PART III, LINE 4A	BAPTIST BEAUMONT HOSPITAL'S FOCUS ON INNOVATION IMPLEMENTED THE MEDIVANCE'S COOLING TECHNOLOGY. THE ARCTIC SUN THERAPEUTIC TEMPERATURE MANAGEMENT DEVICE, THE ONLY ONE IN SOUTHEAST TEXAS, IS A PRECISE NONINVASIVE PATIENT COOLING DEVICE THAT IS USED AT MORE THAN SEVENTY PERCENT OF THE NATION'S TOP HOSPITALS. THE NEWEST MEMBER OF THE EMERGENCY DEPARTMENT IS THE RP-6 MOBILE ROBOT SYSTEM, MADE BY INTOUCH HEALTH, THE ROBOT ALLOWS DOCTORS TO "VIRTUALLY" CONSULT WITH PATIENTS, FAMILY MEMBERS, AND HEALTHCARE STAFF AT A MOMENT'S NOTICE, EVEN IF MILES AWAY FROM THE HOSPITAL. THE RP-6 WILL ALLOW PHYSICIANS IMMEDIATE ACCESS TO PATIENTS IN SITUATIONS WHERE TIME IS CRITICAL. THE HOSPITAL WAS ALSO RECOGNIZED BY THE TEXAS HEALTH CARE QUALITY IMPROVEMENT AWARD PROGRAM WITH THE AWARD OF EXCELLENCE. OTHER AWARDS INCLUDE THE 2005 PRESS GANEY COMPASS AWARD PRESENTED TO BAPTIST BEAUMONT HOSPITAL FOR OUTSTANDING IMPROVEMENT IN PATIENT SATISFACTION. MOST RECENTLY, THE VHA AWARDED BAPTIST BEAUMONT HOSPITAL WITH THE 2006 LEADERSHIP AWARD FOR CLINICAL EXCELLENCE IN CARDIAC CARE. WITH THE ADDITION OF A FIFTY-TWO BED PATIENT TOWER, A CONVENIENT CARE CLINIC, A NEW 64 SLICE CT SCANNER AND MRI THAT ALLOWS PHYSICIANS NEW INNOVATIONS IN TECHNOLOGY, AND THE NEWLY ESTABLISHED INFANT TRANSPORT TEAM, BAPTIST BEAUMONT HOSPITAL CONTINUES TO CARRY ITS COMMITMENT TO SOUTHEAST TEXAS INTO THE TWENTY-FIRST CENTURY. SINCE 1949, BAPTIST HOSPITALS OF SOUTHEAST TEXAS HAS CONTINUOUSLY INVESTED IN THE LATEST MEDICAL INSTRUMENTS, EQUIPMENT AND TECHNOLOGY TO ASSURE THE RIGHT HEALTHCARE FOR SOUTHEAST TEXAS IS RIGHT HERE. IN THE HANDS OF OUR HIGHLY SKILLED PARTNERS IN CARING-OUR DOCTORS, NURSES AND TECHNICIANS-THESE "INSTRUMENTS:" -BRING NEW HOPE TO COUNTLESS CANCER AND HEART PATIENTS; -ASSURE THAT HEALTHCARE FOR KIDS IS JUST THE RIGHT SIZE; AND -HELP US SAFELY DELIVER THE NEXT GENERATION OF SONS AND DAUGHTERS AND BROTHERS AND SISTERS. AS A PART OF THE COMMITMENT TO THE BEAUMONT COMMUNITY, BAPTIST HOSPITALS OF SOUTHEAST TEXAS OFFERS A VARIETY OF CLASSES AND ACTIVITIES. THESE EVENTS RANGE FROM COURSES DESIGNED TO HELP PATIENTS COPE WITH VARIOUS HEALTH PROBLEMS TO CHILDBIRTH PREPARATION, AND FROM INFANT CPR AND SAFETY TO A DRIVING SAFETY COURSE FOR MATURE ADULTS. HOSPITAL PERSONNEL ARE MADE AVAILABLE AS SPEAKERS FOR CIVIC GROUPS, INDUSTRIAL PARTNERS, AND MEDIA APPEARANCE AND HEALTH FAIRS TO ADDRESS HEALTH TOPICS OF PARTICULAR CONCERN TO THE PUBLIC. DURING OUR RECENT FISCAL YEAR, OVER 21,422 INDIVIDUALS RECEIVED INFORMATION NEEDED TO MAKE HEALTHY LIFESTYLE CHOICES. THE STRONGEST AND MOST UNIQUE ASPECT OF BAPTIST HOSPITALS CONTINUES TO BE A DEDICATED STAFF OF EMPLOYEES, PHYSICIANS AND VOLUNTEERS HELPING THE COMMUNITY TO HEAL, PROVIDING COMPASSIONATE CARE AND SERVICES. TOGETHER, WE CONTINUE TO ASSIST THE COMMUNITY IN MEETING OUR VISION OF PROVIDING HIGH QUALITY HEALING HEALTHCARE IN A CHRISTIAN ENVIRONMENT. THE BAPTIST HOSPITALS OF SOUTHEAST TEXAS ARE NOT-FOR-PROFIT, COMMUNITY- OWNED, HEALTH CARE FACILITIES WITH SPIRITUAL VALUES, DEDICATED TO PROVIDING HIGH QUALITY HEALTH SERVICES AND SACRED WORK IN A CHRISTIAN ENVIRONMENT. FOR THE YEAR ENDING JUNE 30, 2012, BAPTIST HOSPITALS OF SOUTHEAST TEXAS PROVIDED THE FOLLOWING: 1. Admissions 19,163 2. Average Daily Census 234 3. Birth 1,945 4. Total ER Visits 94,888 5. O/P Visits 73,068 6. Total Surgeries 8,605 ADDITIONAL INFORMATION IS AVAILABLE ON THE INTERNET AT WWW.BHSET.NET DESCRIPTION OF CLASSES OF MEMBERS OR STOCKHOLDERS FORM 990, PART VI, QUESTION 6 BAPTIST HOSPITAL OF SOUTHEST TEXAS HAS TWO CLASSES OF MEMBERS DESIGNATED AS CLASS A AND CLASS B. THE SOLE CLASS A MEMBER OF THE CORPORATION IS SOUTHWEST COMMUNITY HOSPITAL, INC. THE SOLE CLASS B MEMBER OF THE CORPORATION IS MEMORIAL HERMANN HOSPITAL SYSTEM.
DESCRIPTION OF CLASSES OF PERSONS AND THE NATURE OF THEIR RIGHTS	FORM 990, PART VI, QUESTION 7A	THERE ARE TWO CLASSES OF MEMBERS DESIGNATED AS CLASS A AND CLASS B. THE SOLE CLASS A MEMBER OF THE CORPORATION IS SOUTHWEST COMMUNITY HOSPITAL, INC., A TEXAS NON-PROFIT CORPORATION. THE SOLE CLASS B MEMBER OF THE CORPORATION IS MEMORIAL HERMANN HOSPITAL SYSTEM ("MHHS"). MHHS HAS THE RIGHT TO APPOINT A SINGLE INDIVIDUAL TO THE BOARD OF DIRECTORS BUT HAS NO VOTING, VETO, APPROVAL OR CONSENT RIGHTS AS A MEMBER OF THE CORPORATION OTHER THAN THE RIGHTS THAT ARE EXPRESSLY SET FORTH IN THE ARTICLES OF INCORPORATION OF THE CORPORATION OR THE BYLAWS. THE CLASS A MEMBER DETERMINES THE TOTAL NUMBER OF DIRECTORS. AFTER HAVING RECEIVED NOMINATIONS FROM THE BOARD, AND AFTER CONSIDERING THE NOMINATIONS AS WELL AS OTHER CANDIDATES AT THE DISCRETION OF THE CLASS A MEMBER, THE CLASS A MEMBER, AT ITS ANNUAL MEETING IN DECEMBER OF EACH YEAR, SHALL ELECT DIRECTORS FOR TERMS COMMENCING ON THE FIRST DAY OF THE NEXT MONTH FOLLOWING THE MONTH IN WHICH SUCH ELECTION OCCURS AND CONTINUING FOR THREE (3) YEARS AND UNTIL THEIR RESPECTIVE SUCCESSORS SHALL HAVE BEEN ELECTED AND QUALIFIED EXCEPT AS PROVIDED IN THE BYLAWS. AT LEAST (50%) OF THE DIRECTORS APPOINTED BY THE CLASS A MEMBER SHALL BE MEMBERS OF THE BAPTIST DENOMINATION. UNLESS PROHIBITED BY LAW, ACTIVE MEMBERS OF THE BEAUMONT HOSPITAL MEDICAL STAFF ARE ELIGIBLE TO BE ELECTED AS DIRECTORS OF THE CORPORATION AND ARE ENTITLED TO THE SAME PRIVILEGES AND SUBJECT TO THE SAME RESPONSIBILITIES IN THE SAME MANNER AS OTHER INDIVIDUALS.
DESCR CLASSES OF PERSONS, DECS REQUIRING APPR & TYPE OF VOTING RIGHTS	FORM 990, PART VI, QUESTION 7B	THE FOLLOWING ACTIONS WILL REQUIRE THE PRIOR WRITTEN CONSENT OF THE CLASS B MEMBER: (I) THE AMENDMENT OF THE ARTICLES OF INCORPORATION OR THE BYLAWS TO THE EXTENT, AND ONLY TO THE EXTENT, AN AMENDMENT AFFECTS A RIGHT, POWER, OR PRIVILEGE OF THE CLASS B MEMBER. (II) MERGER OR CONSOLIDATION OF THE CORPORATION WITH ANY OTHER ORGANIZATION UNLESS: (A) THE BALANCE OF THE CAPITAL CONTRIBUTIONS OF THE CLASS B MEMBER AND ALL DEBT DESCRIBED IN THE MASTER AGREEMENT AMONG THE CLASS A MEMBER, CLASS B MEMBER AND CORPORATION OWED BY THE CORPORATION TO MHHS WILL BE PAID IN FULL TO MHHS; (B) THE TRANSACTION OCCURS WITH AN AFFILIATE OF THE CLASS A MEMBER; OR (C) THE TRANSACTION IS THE MERGER OF BAPTIST HOSPITAL ORANGE INTO THE CORPORATION. (III) BANKRUPTCY, DISSOLUTION, OR LIQUIDATION OF THE CORPORATION. (IV) TRANSFER, CONVEYANCE, OR ANY OTHER DISPOSITION OF ASSETS IN EXCESS OF $250,000 OTHER THAN IN THE ORDINARY COURSE OF BUSINESS. (V) ANY CONTRIBUTION REQUESTED OF THE CLASS B MEMBER. (VI) INCURRENCE OF DEBT BY THE CORPORATION IN EXCESS OF $500,000 OTHER THAN IN THE ORDINARY COURSE OF BUSINESS. (VII) ANY CHANGE IN THE MEMBERSHIP OF THE CORPORATION, EXCEPT REPLACEMENT OF THE CLASS A MEMBER WITH AN AFFILIATE OF SOUTHWEST COMMUNITY HOSPITAL, INC OR MHHS (OR ITS SUCCESSOR) AUTOMATICALLY CEASING TO BE THE CLASS B MEMBER. (VIII) ANY INTENTIONAL CHANGE IN THE TAX-EXEMPT STATUS OF THE CORPORATION. (IX) THE CORPORATION'S CREATION OF, OR INVESTMENT IN, ANY ORGANIZATION NOT AFFILIATED WITH THE CLASS A MEMBER WHEREBY THE CORPORATION SPENDS OR INVESTS OVER $1,000,000. (X) ANY AMENDMENT TO THE FORMULA FOR DETERMINING THE MANAGEMENT SERVICES FEE SET FORTH IN THE MANAGEMENT AGREEMENT BETWEEN THE CLASS A MEMBER, THE CORPORATION, BAPTIST HOSPITAL, ORANGE, AND VHA SOUTHWEST COMMUNITY HEALTH CORPORATION. (XI) ANY RETURN OF A MEMBERSHIP CONTRIBUTION, DISTRIBUTION, OR PAYMENT OF ANY OTHER KIND NOT IN THE ORDINARY COURSE OF BUSINESS TO THE MEMBERS OF THE CORPORATION EXCEPT AS PERMITTED UNDER THE MANAGEMENT AGREEMENT BETWEEN THE CLASS A MEMBER AND THE CORPORATION, THE MANAGEMENT AGREEMENT BETWEEN THE CLASS B MEMBER AND THE CORPORATION, THE ARTICLES OF INCORPORATION OR BYLAWS OF THE CORPORATION, OR THE MASTER AGREEMENT BETWEEN THE CLASS A MEMBER, THE CLASS B MEMBER, AND THE CORPORATION. THE POWER TO ALTER, AMEND, OR RESTATE THE ARTICLES OF INCORPORATION OF THE CORPORATION OR TO ALTER, AMEND, OR REPEAL THE BYLAWS OR TO ADOPT NEW BYLAWS IS VESTED SOLELY IN THE CLASS A MEMBER, EXCEPT AS SET FORTH IN THE BYLAWS. ALL POWERS AND DUTIES OF THE CORPORATION ARE RESERVED SOLELY TO THE CLASS A MEMBER EXCEPT AS PROVIDED IN THE BYLAWS AND SPECIFICALLY DELEGATED TO THE CORPORATION'S BOARD OF DIRECTORS BY THE CLASS A MEMBER, AND AS SPECIFICALLY DELEGATED TO PERSONS OR GROUPS OTHER THAN THE CLASS A MEMBERS BY THE BYLAWS OR BY THE LOCAL GOVERNING BODY. WHILE MAINTAINING AUTHORITY TO ACT UNILATERALLY, THE CLASS A MEMBER MAY CONSULT WITH THE CORPORATION'S BOARD OF DIRECTORS BEFORE EXERCISING ITS RIGHTS.
DESC THE PROCESS USED BY MANAGEMENT &/OR GOVERNING BODY TO REVIEW 990	FORM 990, PART VI, QUESTION 11b	THE DETAILED REVIEW OF THE FORM 990 IS CONDUCTED BY THE CFO, CORPORATE CONTROLLER, AND HOSPITAL CONTROLLER, FOLLOWING THE PREPARATION AND REVIEW OF THE RETURN BY THE ORGANIZATION'S PAID PREPARER. AN ELECTRONIC COPY OF THE FINAL FORM 990 IS EMAILED TO EACH BOARD MEMBER PRIOR TO FILING WITH THE IRS.
DESCRIPTION OF PROCESS TO MONITOR TRANSACTIONS FOR CONFLICTS OF INTEREST	FORM 990, PART VI, QUESTION 12C	THE COMPLIANCE OFFICER FOR BAPTIST HOSPITALS OF SOUTHEAST TEXAS MAINTAINS THE CONFLICT OF INTEREST STATEMENTS AND REGULARLY MONITORS THEM AS WELL AS ANY OTHER ACTIVITIES THAT MAY CONSTITUTE A CONFLICT OF INTEREST. THE ORGANIZATION'S PRACTICE IS TO SEND OUT ANNUAL DISCLOSURE QUESTIONNAIRES TO BOARD MEMBERS, SENIOR OFFICERS, AND DIRECTORS OF THE ORGANIZATION. THE RESPONSES ARE TAKEN TO THE AUDIT AND COMPLIANCE COMMITTEE OF BOARD MEMBERS TO DETERMINE IF A CONFLICT OF INTEREST EXISTS. IF THERE IS ANY POSSIBILITY OF FINANCIAL GAIN BY A MEMBER FROM ANY DECISION THAT IS TO BE DELIBERATED ON, THEN THAT MEMBER IS REMOVED FROM THOSE DISCUSSIONS TO ENSURE THAT THE MEMBER WILL NOT TAKE PART IN ANY DELIBERATIONS THAT HE OR SHE MIGHT PERSONALLY GAIN FROM. THE MEMBER OPERATING UNDER A CONFLICT IS PROHIBITED FROM VOTING ON ANY MATTER TO WHICH THE CONFLICT RELATES.
OFFICES & POSITIONS FOR WHICH PROCESS WAS USED, & YEAR PROCESS WAS BEGUN	FORM 990, PART VI, QUESTION 15A & 15B	THE ORGANIZATION'S EXECUTIVES ARE EMPLOYED BY THE PARENT ORGANIZATION, VHA SOUTHWEST COMMUNITY HEALTH CORPORATION (CHC), AND THEREFORE FOLLOW THE COMPENSATION POLICY OF SOUTHWEST COMMUNITY HOSPITAL, ITS CLASS A MEMBER, WHICH IN TURN FOLLOWS THE COMPENSATION POLICY OF CHC. CHC ENGAGED SULLIVAN COTTER TO CONDUCT A COMPETITIVE MARKET ANALYSIS OF THE COMPENSATION OF CHC'S TOP MANAGEMENT OFFICIALS, OFFICERS, DIRECTORS AND KEY EMPLOYEES. SULLIVAN COTTER GATHERED DATA RELATED TO ON JOB DESCRIPTIONS, SCOPE OF RESPONSIBILITY, AND CURRENT INCUMBENTS' COMPENSATION. SULLIVAN COTTER RECOMMENDED APPROPRIATE COMPARISON DATA AND UTILIZED SURVEY DATA FROM FOUR MAJOR EXECUTIVE COMPENSATION SURVEY PROVIDERS TO PROVIDE MARKET DATA AND EXECUTIVE COMPENSATION RECOMMENDATIONS THAT MEET CHC'S COMPENSATION PHILOSOPHY. SULLIVAN COTTER'S RECOMMENDATIONS WERE PRESENTED TO THE CHC COMPENSATION COMMITTEE OF THE BOARD FOR REVIEW AND APPROVAL. CHC ALSO CONDUCTS PERIODIC REVIEWS OF COMPENSATION TO DETERMINE WHETHER COMPENSATION ARRANGEMENTS AND BENEFITS ARE REASONABLE, BASED ON COMPETENT SURVEY INFORMATION, AND THE RESULT OF ARM'S LENGTH BARGAINING. THIS PROCESS IS PERFORMED EACH YEAR PRIOR TO THE ANNUAL EMPLOYEE EVALUATION PROCESS, WHICH ENDS ON JULY 1ST OF EACH YEAR.
AVAIL OF GOV DOCS, CONFLICT OF INTEREST POLICY & FIN STMTS TO GEN PUBLIC	FORM 990, PART VI, QUESTION 19	THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, FINANCIAL STATEMENTS, AND CONFLICT OF INTEREST POLICY AVAILABLE AT ITS BUSINESS OFFICE UPON REQUEST.
AVERAGE RELATED HOURS DISCLOSURE	FORM 990, PART VII, SECTION A, COLUMN B	ESTIMATED HOURS WORKED BY OFFICERS, DIRECTORS, TRUSTEES, KEY EMPLOYEES, AND HIGHEST COMPENSATED EMPLOYEES AT RELATED ENTITIES: DAVID BUTLER: ARTESIA GENERAL HOSPITAL - 1 HOUR YOAKUM COMMUNITY HOSPITAL - 1 HOUR CHC COMMUNITY CARE - 1 HOUR CONTINUECARE HOSPITAL OF TYLER - 1 HOUR VHASW COMMUNITY HEALTH CORPORATION - 34 HOURS COMMUNITY HOSPITAL CONSULTING, INC. - 1 HOUR SOUTHWEST COMMUNITY HOSPITAL - .01 HOUR WILSON WEBER: ARTESIA GENERAL HOSPITAL - 1 HOUR YOAKUM COMMUNITY HOSPITAL - 1 HOUR ST. MARK'S MEDICAL CENTER - 1 HOUR VHASW COMMUNITY HEALTH CORPORATION - 33 HOURS COMMUNITY HOSPITAL CONSULTING, INC. - 6 HOURS SOUTHWEST COMMUNITY HOSPITAL - .01 HOUR DAVID PARMER: BAPTIST PHYSICIAN NETWORK - 1 HOUR GARY TROUTMAN: BAPTIST PHYSICIAN NETWORK - 1 HOUR GERALD BRYANT: BAPTIST PHYSICIAN NETWORK - 1 HOUR BAPTIST PHYSICIAN NETWORK - 1 HOUR
AUDITED FINANCIAL STATEMENTS	FORM 990, PART XI, QUESTION 2C	THE AUDIT COMMITTEE OF VHA SOUTHWEST COMMUNITY HEALTH CORPORATION, WHICH IS THE PARENT ORGANIZATION OF BAPTIST HOSPITALS OF SOUTHEAST TEXAS, IS RESPONSIBLE FOR OVERSEEING THE EXTERNAL AUDIT OF THE CONSOLIDATED FINANCIALS.

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

Cat. No. 51056K

Schedule O (Form 990 or 990-EZ) 2011

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE R
(Form 990)

Department of the Treasury
Internal Revenue Service

Related Organizations and Unrelated Partnerships

Complete if the organization answered "Yes" to Form 990, Part IV, line 33, 34, 35, 36, or 37.
MediumBullet

Attach to Form 990. MediumBullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization

Baptist Hospitals of Southeast Texas

Employer identification number

74-1303720

Part I

Identification of Disregarded Entities (Complete if the organization answered "Yes" on Form 990, Part IV, line 33.)

(a) Name, address, and EIN of disregarded entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Total income	(e) End-of-year assets	(f) Direct controlling entity

Part II

Identification of Related Tax-Exempt Organizations (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related tax-exempt organizations during the tax year.)

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Exempt Code section	(e) Public charity status (if section 501(c)(3))	(f) Direct controlling entity	(g) Section 512(b)(13) controlled organization
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Exempt Code section	(e) Public charity status (if section 501(c)(3))	(f) Direct controlling entity	Yes	No
(1) Baptist Physician Network 3080 College Street Beaumont,TX77701 76-0453250	Primary Care	TX	501(C)(3)	3	BP BHP SETX	Yes
(2) Artesia General Hospital 702 North 13th Street Artesia,NM88210 74-2851819	Hospital	NM	501(C)(3)	3	CHC		No
(3) Laird Memorial Hospital 5801 Tennyson Pkwy Ste 550 Plano,TX75024 02-0643367	Hospital	TX	501(C)(3)	3	CHC		No
(4) Southwest Community Hospital INC 5801 Tennyson Pkwy Ste 550 Plano,TX75024 75-2725353	Hospital	TX	501(C)(3)	3	CHC		No
(5) Yoakum Community Hospital 1200 Carl Ramert Drive Yoakum,TX77995 74-2323822	Hospital	TX	501(C)(3)	3	CHC		No
(6) Continuecare Hospital of Tyler 800 E Dawson Street Tyler,TX75701 20-0991990	Hospital	TX	501(C)(3)	3	CHC CM Care		No
(7) Continuecare Hospital of SE TX 5801 Tennyson Pkwy Ste 550 Plano,TX75024 20-1150480	Hospital	TX	501(C)(3)	3	CHC CM Care		No
(8) ST MARKS MEDICAL CENTER ONE ST MARKS PLACE LA GRANGE,TX78945 74-3019849	HOSPITAL	TX	501(C)(3)	3	CHC		No
(9) CHC COMMUNITY CARE LLC 5801 TENNYSON PKWY STE 550 PLANO,TX75024 37-1485773	SUPPORT ORG	TX	501(C)(3)	11C	CHC		No
(10) VHASW COMMUNITY HEALTH CORPORATION 5801 TENNYSON PKWY STE 550 PLANO,TX75024 75-2638469	SUPPORT ORG	TX	501(C)(3)	11C	NA		No

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

Cat. No. 50135Y

Schedule R (Form 990) 2011

Page 2

Part III

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

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(e) Predominant income(related, unrelated, excluded from tax under sections 512-514)	(f) Share of total income	(g) Share of end-of-year assets	(h) Disproprtionate allocations?		(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	(j) General or managing partner?		(k) Percentage ownership
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity		(f) Share of total income	(g) Share of end-of-year assets	Yes	No	(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No
(1) BaptUSP Surg Ctrs 15305 Dallas Addison,TX75001 26-2857851	Ambulatory Svcs	TX		Investment Income	50,175			No	0		No	50.100 %

Part IV

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

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(e) Type of entity (C corp, S corp, or trust)
(1) Community Health Assurance SPC LTD	Captive Insurance	CJ	NA	C Corp
(2) Community Hospital Consulting Inc 5801 Tennyson Parkway Ste 550 Plano,TX75024 20-4710183	Mgmt Consulting	TX	CHC	C Corp

Schedule R (Form 990) 2011

Page 3

Part V

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

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

Yes

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

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

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

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

Yes

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

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

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

Yes

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

h Exchange of assets with related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

Yes

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

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

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

m Sharing of facilities, equipment, mailing lists, or other assets with related organization(s) . . . . . . . . . . . . . . . . . . . . .

n Sharing of paid employees with related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

o Reimbursement paid to related organization(s) for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

p Reimbursement paid by related organization(s) for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

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

Yes

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

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

(a) Name of other organization	(b) Transaction type(a-r)	(c) Amount involved	(d) Method of determining amount involved
(1) Baptist Physician Network	Q	6,557,060	FMV
(2) VHASW Community Health Corporation	O	6,193,395	FMV
(3)
(4)
(5)
(6)

Schedule R (Form 990) 2011

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

Schedule R (Form 990) 2011

Page 5

Part VII

Supplemental Information

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

Identifier	Return Reference	Explanation

Additional Data

Software ID:
Software Version:

1	Briefly describe the organization’s mission or most significant activities: Baptist Hospitals of Southeast Texas are not-for-profit, community- owned, health care facilities with spiritual values, dedicated to providing high quality health services in a Christian environment.
2	Check this box
3	Number of voting members of the governing body (Part VI, line 1a).....	3	21
4	Number of independent voting members of the governing body (Part VI, line 1b) ....	4	20
5	Total number of individuals employed in calendar year 2011 (Part V, line 2a) ...	5	2,194
6	Total number of volunteers (estimate if necessary) ....	6	459
7a	Total unrelated business revenue from Part VIII, column (C), line 12 ..	7a	1,467,196
b	Net unrelated business taxable income from Form 990-T, line 34 ..	7b	-1,181,889

		Prior Year	Current Year
8	Contributions and grants (Part VIII, line 1h) .........	2,005,724	544,750
9	Program service revenue (Part VIII, line 2g) .........	270,729,801	238,541,189
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	463,117	653,531
11	Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)	4,209,736	3,784,961
12	Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)...................	277,408,378	243,524,431
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...	22,500	48,350
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)	105,733,889	105,469,816
16a	Professional fundraising fees (Part IX, column (A), line 11e).....	0	0
b	Total fundraising expenses (Part IX, column (D), line 25) 0
17	Other expenses (Part IX, column (A), lines 11a–11d, 11f–24f)....	170,418,000	136,354,164
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	276,174,389	241,872,330
19	Revenue less expenses. Subtract line 18 from line 12.......	1,233,989	1,652,101
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16).............	245,128,832	247,135,922
21	Total liabilities (Part X, line 26).............	184,127,352	184,633,200
22	Net assets or fund balances. Subtract line 21 from line 20.....	61,001,480	62,502,722

Sign Here

	Signature of officer	Date

	Type or print name and title.


4a	(Code: ) (Expenses $ 195,013,663 including grants of $ 48,350 ) (Revenue $ 238,541,189 )
	See Schedule O

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












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












4d	Other program services (Describe in Schedule O.)
	(Expenses $ including grants of $ ) (Revenue $ )
4e	Total program service expenses$ 195,013,663

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)............	1,220,571	2,736,655	314,458

				(A) Total revenue	(B) Related or exempt function revenue	(C) Unrelated business revenue	(D) Revenue excluded from tax under sections 512, 513, or 514
1a	Federated campaigns..1a
b	Membership dues....1b
c	Fundraising events....1c
d	Related organizations...1d		242,232
e	Government grants (contributions)1e		244,405

f	All other contributions, gifts, grants, and similar amounts not included above1f		58,113
g	Noncash contributions included in lines 1a-1f:$
h	Total. Add lines 1a-1f.......			544,750
			Business Code
2a	Net Patient Revenue		621,300	234,514,362	234,514,362
b	LTACH Rental		621,300	926,308	391,595	534,713
c	Radiology School Tuition Revenue		611,600	178,882	178,882
d	MEDICAL TRANSCRIPTION REVENUE		621,300	35,017	35,017
e	All other program service revenue		900,099	2,886,620	2,886,620
f	All other program service revenue .
g	Total. Add lines 2a–2f........			238,541,189
3	Investment income (including dividends, interest
	and other similar amounts).....			722,984			722,984
4	Income from investment of tax-exempt bond proceeds..			0
5	Royalties............			0
		(i) Real	(ii) Personal
6a	Gross rents	2,612,629
b	Less: rental expenses
c	Rental income or (loss)	2,612,629
d	Net rental income or (loss).......			2,612,629		932,483	1,680,146
		(i) Securities	(ii) Other
7a	Gross amount from sales of assets other than inventory		-69,453
b	Less: cost or other basis and sales expenses
c	Gain or (loss)		-69,453
d	Net gain or (loss)..........			-69,453			-69,453
8a	Gross income from fundraising events (not including $ of contributions reported on line 1c). See Part IV, line 18 ...
	a
b	Less: direct expenses ...b
c	Net income or (loss) from fundraising events..			0
9a	Gross income from gaming activities. See Part IV, line 19 ...
	a
b	Less: direct expenses ...b
c	Net income or (loss) from gaming activities...			0
10a	Gross sales of inventory, less returns and allowances .
	a
b	Less: cost of goods sold ..b
c	Net income or (loss) from sales of inventory..			0
Miscellaneous Revenue			Business Code
11a	Cafeteria Income		722,210	1,143,692			1,143,692
b	Vending Machine Income		722,210	28,640			28,640
c
d	All other revenue ....
e	Total. Add lines 11a–11d ......			1,172,332
12	Total revenue. See Instructions....			243,524,431	238,006,476	1,467,196	3,506,009


				(A) Beginning of year		(B) End of year
1	Cashnon-interest-bearing ..........			29,491,305	1	20,818,645
2	Savings and temporary cash investments .......			1,208,742	2	1,211,721
3	Pledges and grants receivable, net .........			0	3	0
4	Accounts receivable, net .........			23,223,960	4	24,711,340
5	Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
	Schedule L ..........			0	5	0
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 ..........			0	6	0
7	Notes and loans receivable, net .............			2,360,547	7	2,660,423
8	Inventories for sale or use ..............			5,406,270	8	5,302,205
9	Prepaid expenses and deferred charges ............			6,807,853	9	9,298,499
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	352,445,582
b	Less: accumulated depreciation. .....	10b	211,253,220	146,258,302	10c	141,192,362
11	Investments—publicly traded securities ..........			331,695	11	342,653
12	Investments—other securities. See Part IV, line 11 ......			3,286,155	12	3,309,517
13	Investments—program-related. See Part IV, line 11 ..			0	13	0
14	Intangible assets .........			798,343	14	773,481
15	Other assets. See Part IV, line 11 ...........			25,955,660	15	37,515,076
16	Total assets. Add lines 1 through 15 (must equal line 34)...			245,128,832	16	247,135,922
17	Accounts payable and accrued expenses .			21,648,201	17	28,132,381
18	Grants payable ..........			0	18	0
19	Deferred revenue ..........			0	19	0
20	Tax-exempt bond liabilities ..........			0	20	0
21	Escrow or custodial account liability. Complete Part IV of Schedule D..			0	21	0
22	Payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........			0	22	0
23	Secured mortgages and notes payable to unrelated third parties ..			147,731,702	23	142,745,842
24	Unsecured notes and loans payable to unrelated third parties ....			0	24	0
25	Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D.....			14,747,449	25	13,754,977
26	Total liabilities. Add lines 17 through 25.....			184,127,352	26	184,633,200
	Organizations that follow SFAS 117, check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets .....			60,860,505	27	62,334,135
28	Temporarily restricted net assets .....			140,975	28	168,587
29	Permanently restricted net assets .....			0	29	0
	Organizations that do not follow SFAS 117, check here and complete lines 30 through 34.
30	Capital stock or trust principal, or current funds .....				30
31	Paid-in or capital surplus, or land, building or equipment fund .....				31
32	Retained earnings, endowment, accumulated income, or other funds				32
33	Total net assets or fund balances .....			61,001,480	33	62,502,722
34	Total liabilities and net assets/fund balances .....			245,128,832	34	247,135,922

1	Was the organization a U.S. transferor of property to a foreign corporation during the tax year? If "Yes," the organization may be required to file Form 926 (see instructions for Form 926).................	Yes	No
2	Did the organization have an interest in a foreign trust during the tax year? If " Yes," the organization may be required to file Form 3520 and/or Form 3520-A. (see instructions for Forms 3520 and 3520-A)..........	Yes	No
3	Did the organization have an ownership interest in a foreign corporation during the tax year? If "Yes," the organization may be required to file Form 5471, Information Return of U.S. Persons with respect to Certain Foreign Corporations. (see instructions for Form 5471)..............................	Yes	No
4	Was the organization a direct or indirect shareholder of a passive foreign investment company or a qualified electing fund during the tax year? If "Yes," the organization may be required to file Form 8621, Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund. (see instructions for Form 8621)	Yes	No
5	Did the organization have an ownership interest in a foreign partnership during the tax year? If "Yes," the organization may be required to file Form 8865, Return of U.S. Persons with respect to Certain Foreign Partnerships. (see instructions for Form 8865)....................................	Yes	No
6	Did the organization have any operations in or related to any boycotting countries during the tax year? If "Yes," the organization may be required to file Form 5713, International Boycott Report (see instructions for Form 5713)................................................	Yes	No