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)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)
(1) LARRY D NEFF CHAIRMAN	1.0	X	X		0	0	0
(2) RUDY E FARBER VICE CHAIRMAN	1.0	X	X		0	0	0
(3) MITCH MCCUMBER SECRETARY/TREASURER	1.0	X	X		0	0	0
(4) DR LARRY G BARNES DIRECTOR	1.0	X			0	287,056	18,602
(5) GARY D DUNCAN EX OFFICIO MBR THROUGH 12/11	6.0	X			0	721,849	16,458
(6) DEE ANNE EVENSON DIRECTOR	1.0	X			0	0	0
(7) CRAIG L PENDERGRASS DO DIRECTOR	1.0	X			0	412,270	10,052
(8) ROY B SHAVER PHD DIRECTOR	1.0	X			0	0	0
(9) GARY A WASSON DIRECTOR	1.0	X			0	0	0
(10) DAXTON D HOLCOMB CEO	60.0	X	X		157,674	0	37,036
(11) PAULA BAKER EX OFFICIO MEMBER BEG. 01/12	6.0	X			0	260,393	73,667
(12) STEVE GRADDY CFO	10.0		X		0	336,679	92,136
(13) JIMMY W PYRON PHYSICIAN	60.0			X	324,251	0	17,266
(14) BARRY J WAACK PHYSICIAN	60.0			X	356,550	0	13,759
(15) JOSEPH KONSTANZER PHARMACIST COORDINATOR	60.0			X	148,536	0	4,486
(16) DAUD KHAN PHYSICIAN	60.0			X	313,654	0	10,052
(17) WILLIAM D GEORGE PHYSICIAN	60.0			X	171,041	0	11,542

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	12,488	12,488
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 ....	194,710		194,710
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	9,387,240	8,831,070	556,170
8	Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) ....	124,468	124,468
9	Other employee benefits .......	1,030,199	901,730	128,469
10	Payroll taxes ...........	615,109	530,492	84,617
11	Fees for services (non-employees):
a	Management ......	0
b	Legal .........	28,194		28,194
c	Accounting ...........	55,020		55,020
d	Lobbying ...........	0
e	Professional fundraising. See Part IV, line 17..	0
f	Investment management fees ......	203,188		203,188
g	Other ..........	1,737,551	1,592,634	144,917
12	Advertising and promotion ....	36,455	27,919	8,536
13	Office expenses .......	4,199,875	990,977	3,208,898
14	Information technology ......	49,202	43,368	5,834
15	Royalties ..	0
16	Occupancy ...........	412,984	305,086	107,898
17	Travel ............	58,562	23,496	35,066
18	Payments of travel or entertainment expenses for any federal, state, or local public officials ......	0
19	Conferences, conventions, and meetings ....	27,979	23,281	4,698
20	Interest ...........	85,559	75,415	10,144
21	Payments to affiliates .......	0
22	Depreciation, depletion, and amortization .....	740,049	652,304	87,745
23	Insurance ..............	234,867	142,974	91,893
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	6,428,829	6,428,829
b	TAXES, LICENSES & DUES	57,934	12,470	45,464
c	PROVIDER TAXES & FEES	1,400,033	1,400,033
d	MEDICAL SUPPLIES & DRUGS	1,377,399	1,377,399
e
f	All other expenses	37,814	325	37,489
25	Total functional expenses. Add lines 1 through 24f	28,535,708	23,496,758	5,038,950	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 ..........	727,613	1	500,114
2	Savings and temporary cash investments .......	268,225	2	2,508,258
3	Pledges and grants receivable, net .........	0	3	0
4	Accounts receivable, net .........	3,554,730	4	3,796,835
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 .............	0	7	0
8	Inventories for sale or use ..............	525,890	8	531,721
9	Prepaid expenses and deferred charges ............	238,170	9	215,866
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	15,315,245
b	Less: accumulated depreciation. .....	10b	11,345,868	4,656,371	10c	3,969,377
11	Investments—publicly traded securities ..........	10,829,275	11	13,528,262
12	Investments—other securities. See Part IV, line 11 ......	0	12	0
13	Investments—program-related. See Part IV, line 11 ..	0	13	0
14	Intangible assets .........	664,703	14	664,703
15	Other assets. See Part IV, line 11 ...........	1,627,086	15	1,375,031
16	Total assets. Add lines 1 through 15 (must equal line 34)...	23,092,063	16	27,090,167
	17	Accounts payable and accrued expenses .	202,096	17	514,134
18	Grants payable ..........	0	18	0
19	Deferred revenue ..........	0	19	0
20	Tax-exempt bond liabilities ..........	1,305,000	20	1,230,000
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 ..	0	23	0
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.....	2,520,343	25	2,573,000
26	Total liabilities. Add lines 17 through 25.....	4,027,439	26	4,317,134
		Organizations that follow SFAS 117, check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets .....	18,087,405	27	22,035,453
28	Temporarily restricted net assets .....	977,219	28	737,580
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 .....	19,064,624	33	22,773,033
34	Total liabilities and net assets/fund balances .....	23,092,063	34	27,090,167

- 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

FREEMAN NEOSHO HOSPITAL

Employer identification number

43-1240629

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

FREEMAN NEOSHO HOSPITAL

Employer identification number

43-1240629

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 FREEMAN NEOSHO HOSPITAL
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 FREEMAN NEOSHO HOSPITAL
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
FREEMAN NEOSHO HOSPITAL

Employer identification number

43-1240629

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

FREEMAN NEOSHO HOSPITAL

Employer identification number

43-1240629

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

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

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

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

Yes

8,117

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

8,117

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
OTHER LOBBYING ACTIVITIES	SCHEDULE C, PART II-B, LINE 1(I)	THE ORGANIZATION PAYS DUES TO THE MISSOURI HOSPITAL ASSOCIATION AND THE AMERICAN HOSPITAL ASSOCIATION. A PORTION OF THESE DUES ARE ATTRIBUTABLE TO LOBBYING PURPOSES.

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

FREEMAN NEOSHO HOSPITAL

Employer identification number

43-1240629

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 .................	913,042		913,042
b	Buildings ................	6,887,428	5,679,193	1,208,235
c	Leasehold improvements ............
d	Equipment ................	7,352,438	5,550,465	1,801,973
e	Other .................	162,337	116,210	46,127
Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10(c).).......				3,969,377

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) INTEREST IN AFFILIATE				852,009
(2) INTEREST RECEIVABLE				53,677
(3) DUE FROM FREEMAN HOSPITAL				469,345






Total. (Column (b) must equal Form 990, Part X, col.(B) line 15.)...........				1,375,031

Part X

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

1.(a) Description of Liability		(b) Book value
Federal Income Taxes		0
EST AMT DUE TO 3RD PRTY PAYERS		2,473,000
EST SELF INSURANCE COSTS		100,000







Total. (Column (b) must equal Form 990, Part X, col.(B) line 25.)		2,573,000
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	31,680,357
2	Total expenses (Form 990, Part IX, column (A), line 25) .....................	2	28,535,708
3	Excess or (deficit) for the year. Subtract line 2 from line 1 .............	3	3,144,649
4	Net unrealized gains (losses) on investments ..........................	4	547,417
5	Donated services and use of facilities .............................	5
6	Investment expenses ...................................	6
7	Prior period adjustments ..................................	7
8	Other (Describe in Part XIV.) .................................	8	16,343
9	Total adjustments (net). Add lines 4 through 8 .........................	9	563,760
10	Excess or (deficit) for the year per financial statements. Combine lines 3 and 9 .........	10	3,708,409

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	32,040,929
2	Amounts included on line 1 but not on Form 990, Part VIII, line 12:
a	Net unrealized gains on investments ..........	2a	547,417
b	Donated services and use of facilities .........	2b
c	Recoveries of prior year grants ...........	2c
d	Other (Describe in Part XIV.) ............	2d	-186,845
e	Add lines 2a through 2d .....................			2e	360,572
3	Subtract line 2e from line 1.....................			3	31,680,357
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	31,680,357

Part XIII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return
1	Total expenses and losses per audited financial statements .............			1	28,332,520
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	28,332,520
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	203,188
b	Other (Describe in Part XIV.) ............	4b
c	Add lines 4a and 4b.......................			4c	203,188
5	Total expenses. Add lines 3 and 4c. (This must equal Form 990, Part I, line 18.) ......			5	28,535,708

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
UNCERTAIN TAX POSITIONS	SCHEDULE D, PART X, LINE 2	MANAGEMENT HAS EVALUATED THEIR INCOME TAX POSITIONS UNDER THE GUIDANCE INCLUDED IN ASC 740. BASED ON THEIR REVIEW, MANAGEMENT HAS NOT IDENTIFIED ANY MATERIAL UNCERTAIN TAX POSITIONS TO BE RECORDED OR DISCLOSED IN THE FINANCIAL STATEMENTS.
OTHER CHANGES IN NET ASSETS	SCHEDULE D, PART XI, LINE 8	CHANGE IN INTERESTS IN AFFILIATES $(238,385) TRANSFER FROM AFFILIATES 254,728 ---------- TOTAL $ 16,343
OTHER REVENUE INCLUDED ON LINE 1, BUT NOT ON FORM 990, PART VIII, LINE 12	SCHEDULE D, PART XII, LINE 2D	CHANGE IN INTERESTS IN AFFILIATES $(238,385) TRANSFER FROM AFFILIATES 254,728 INVESTMENT EXPENSES (203,188) ---------- TOTAL $(186,845)

Schedule D (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

FREEMAN NEOSHO HOSPITAL

Employer identification number

43-1240629

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) ..	384,909		384,909	1.740 %
b Medicaid (from Worksheet 3, column a) .....	4,732,851	3,867,807	865,044	3.910 %
c Costs of other means-tested government programs (from Worksheet 3, column b) .
dTotal Financial Assistance and Means-Tested Government Programs .....	5,117,760	3,867,807	1,249,953	5.650 %
Other Benefits e Community health improvement services and community benefit operations (from (Worksheet 4) ....	918		918
f Health professions education (from Worksheet 5) ..	5,505		5,505	0.020 %
g Subsidized health services (from Worksheet 6) ..
h Research (from Worksheet 7)
i Cash and in-kind contributions for community benefit (from Worksheet 8) ....	12,488		12,488	0.060 %
jTotal Other Benefits ...	18,911		18,911	0.080 %
kTotal. Add lines 7d and 7j. ..	5,136,671	3,867,807	1,268,864	5.730 %

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.

		(c) Total community building expense	(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	11,186	11,186	0.050 %
10	Total	11,186	11,186	0.050 %

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

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

6,428,829

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

1,195,762

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).....

9,269,506

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

9,200,439

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

69,067

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 %
1
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?1 Name and address		Other (Describe)
1	FREEMAN NEOSHO HOSPITAL 113 W HICKORY STREET NEOSHO,MO64850	X	X	X

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)

FREEMAN NEOSHO 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: 150.% 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: 250.% 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

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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?3
Name and address		Type of Facility (describe)
1	MEDICAL OFFICE BUILDING 336 S JEFFERSON NEOSHO,MO64850	MEDICAL SERVICES
2	BIG SPRING PEDIATRICSREHABILITATION 204 N LINCOLN NEOSHO,MO64850	MEDICAL SERVICES
3	FREEMAN CLINIC OF ANDERSON 510 PARK STREET ANDERSON,MO64831	MEDICAL SERVICES
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
PERCENT OF TOTAL EXPENSE	SCHEDULE H, PART I, LINE 7F	TO ARRIVE AT THE PERCENT OF TOTAL EXPENSES, THE DENOMINATOR WHICH EQUALS TOTAL OPERATING EXPENSES PER PART IX, LINE 25, OF THE FORM 990 ($28,535,708) WAS REDUCED BY BAD DEBT EXPENSE ($6,428,829).
COST TO CHARGE RATIO	SCHEDULE H, PART I, LINE 7	THE COST TO CHARGE RATIO COMPUTED ON IRS WORKSHEET 2 WAS USED IN THE CALCULATIONS ON IRS WORKSHEET 3. IRS WORKSHEET 1 USED COST ACCOUNTING.
BAD DEBT EXPENSE	SCHEDULE H, PART III, SECTION A, LINE 4A & 4B	THE AUDITED FINANCIAL STATEMENTS DO NOT CONTAIN A FOOTNOTE THAT DESCRIBES BAD DEBT EXPENSE. THEY DO, HOWEVER, CONTAIN A FOOTNOTE THAT DESCRIBES PATIENT ACCOUNTS RECEIVABLE. THAT FOOTNOTE READS AS FOLLOWS: THE HEALTH SYSTEM REPORTS PATIENT ACCOUNTS RECEIVABLE FOR SERVICES RENDERED AT NET REALIZABLE AMOUNTS FROM THIRD-PARTY PAYERS, PATIENTS AND OTHERS. THE HEALTH SYSTEM PROVIDES AN ALLOWANCE FOR DOUBTFUL ACCOUNTS BASED UPON A REVIEW OF OUTSTANDING RECEIVABLES, HISTORICAL COLLECTION INFORMATION AND EXISTING ECONOMIC CONDITIONS. AS A SERVICE TO THE PATIENT, THE HEALTH SYSTEM BILLS THIRD-PARTY PAYERS DIRECTLY AND BILLS THE PATIENT WHEN THE PATIENT'S LIABILITY IS DETERMINED. PATIENT ACCOUNTS RECEIVABLE ARE DUE IN FULL WHEN BILLED. ACCOUNTS ARE CONSIDERED DELINQUENT AND SUBSEQUENTLY WRITTEN OFF AS BAD DEBTS BASED ON INDIVIDUAL CREDIT EVALUATION AND SPECIFIC CIRCUMSTANCES OF THE ACCOUNT. THE ORGANIZATION CALCULATED BAD DEBT USING THE AMOUNTS CALCULATED IN THE ORGANIZATION'S AUDITED FINANCIAL STATEMENTS. BAD DEBT ATTRIBUTABLE TO PATIENTS ELIGIBLE UNDER THE ORGANIZATION'S CHARITY CARE POLICY WAS DETERMINED USING POVERTY LIMIT DEMOGRAPHIC INFORMATION OBTAINED THROUGH THE US CENSUS BUREAU.
COMMUNITY BENEFIT RATIONALE	SCHEDULE H, PART III, SECTION B, LINE 8	SERVING PATIENTS WITH GOVERNMENT HEALTH BENEFITS, SUCH AS MEDICARE, IS A COMPONENT OF THE COMMUNITY BENEFIT STANDARD THAT TAX-EXEMPT HOSPITALS ARE HELD TO. THIS IMPLIES THAT SERVING MEDICARE PATIENTS IS A COMMUNITY BENEFIT AND THAT THE HOSPITAL OPERATES TO PROMOTE THE HEALTH OF THE COMMUNITY.
COLLECTION POLICY	SCHEDULE H, PART III, SECTION C, LINE 9B	UPON ADMINISTRATION AND/OR DIRECTOR APPROVAL THE HOSPITAL WILL CONSIDER ACCOUNTS ELIGIBLE FOR FINANCIAL AID BASED ON PRESUMPTIVE CRITERIA INCLUDING BUT NOT LIMITED TO: -LOW COLLECTABILITY SCORE -COLLECTION EFFORTS EXHAUSTED -INTERNAL OR EXTERNAL -NO CONTACT: ATTEMPTS TO CONTACT VIA PHONE SKIP TRACING AND MAIL AND POTENTIAL HOME VISIT. -NO PAYMENT / ARRANGEMENTS
OTHER FACTORS USED TO DETERMINE AMOUNTS CHARGED TO PATIENTS	SCHEDULE H, PART V, SECTION B, LINE 11H	THE ORGANIZATION'S FINANCIAL ASSISTANCE POLICY ALSO USES FAMILY SIZE IN THE DETERMINATION OF AMOUNTS CHARGED TO PATIENTS.
DETERMINATION OF MAXIMUM AMOUNTS CHARGED	SCHEDULE H, PART V, SECTION B, LINE 19	FPG GUIDELINES DETERMINE THE DISCOUNT PERCENTAGE BILLED TO QUALIFIED PATIENTS UNDER THE ORGANIZATION'S FINANCIAL ASSISTANCE POLICY.
NEEDS ASSESSMENT		FREEMAN REVIEWS STUDIES AND ASSESSMENTS FROM JOPLIN HEALTH DEPARTMENT AND OTHER LOCAL GOVERNMENTAL AGENCIES TO ASSESS COMMUNITY NEEDS, INCORPORATING THIS INFORMATION INTO THE FREEMAN STRATEGIC PLAN AND MONITORING THE EDUCATIONAL AND OUTREACH PROGRAMS PROVIDED IN THE COMMUNITY. FREEMAN ALSO WORKS WITH THE COMMUNITY HEALTH COLLABORATIVE, WHICH DEVELOPED A PRIORITIZED LISTING OF COMMUNITY HEALTH ISSUES USING TOOLS PROVIDED BY THE MISSOURI DEPARTMENT OF HEALTH AND SENIOR SERVICES. FURTHERMORE, TO FIND OUT WHAT PATIENTS THINK OF THE SERVICE THEY RECEIVE, FREEMAN WORKS WITH HEALTHSTREAM RESEARCH, AN INDEPENDENT COMPANY THAT TELEPHONES A REPRESENTATIVE NUMBER OF PATIENTS AT HOME AFTER THEIR DISCHARGE FROM THE HOSPITAL AND ASKS THEM TO RATE FREEMAN IN A VARIETY OF AREAS. RESULTS FROM THESE SURVEYS ARE REFLECTED IN HOSPITAL CONSUMER ASSESSMENT OF HEALTHCARE PROVIDERS AND SYSTEMS (HCAHPS) SCORES THAT THE FEDERAL GOVERNMENT USES TO EVALUATE FREEMAN SERVICES. FREEMAN USES INFORMATION OBTAINED IN THE HCAHPS SURVEYS TO EVALUATE TRENDS IN PATIENT CARE AND ADDRESS ANY ISSUES DISCOVERED. ADDITIONALLY, FREEMAN SUBSCRIBES TO AND MANAGES A NUMBER OF DATABASE SERVICES TO ANALYZE CONSUMER USE OF FREEMAN PRODUCTS AND SERVICES AND FORMULATE PLANS TO STAY AHEAD OF PATIENT NEEDS, AND FREEMAN PARTNERS WITH THE MISSOURI HOSPITAL ASSOCIATION FOR DATA ASSESSMENT DEMOGRAPHIC INFORMATION, TREND ANALYSIS, AND EDUCATION. FREEMAN SENIOR LEADERS ROUTINELY MAKE APPEARANCES AT COMMUNITY FUNCTIONS, SUCH AS ROTARY INTERNATIONAL AND SOROPTIMIST MEETINGS. THEY INFORM CONSTITUENTS ABOUT HAPPENINGS IN THE HEALTH SYSTEM AND SEEK INPUT FROM AUDIENCE MEMBERS. TO SERVE THE COMMUNITY AND SEEK OUT INFORMATION REGARDING CONSUMER TRENDS AND OPINIONS, FREEMAN SENIOR LEADERS SERVE ON A VARIETY OF BOARDS, COUNCILS, AND COMMITTEES. WHILE PROVIDING LEADERSHIP AND SUPPORT TO THESE ORGANIZATIONS, FREEMAN LEADERS MAKE CONTACT WITH MANY OTHER COMMUNITY LEADERS TO CHECK THE PULSE OF THE COMMUNITY IN TERMS OF HEALTHCARE NEEDS AND OPINION. MANY FREEMAN OUTREACH AND WELLNESS PROGRAMS, INCLUDING FREEMAN SCREEN TEAM, FREEMAN PREVENTIVE SERVICES, AND FREEMAN ADVANTAGE, AMONG OTHERS, PROVIDE SERVICE AND EDUCATION TO THE COMMUNITY WHILE ALSO PROVIDING A CONDUIT FOR PUBLIC OPINION TO TRAVEL BACK TO FREEMAN DECISION MAKERS.
PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE		FREEMAN HAS STEPPED UP EFFORTS TO COMMUNICATE INFORMATION ABOUT FINANCIAL ASSISTANCE, OR CHARITY CARE, OPTIONS AVAILABLE TO PATIENTS IN MANY WAYS. FREEMAN PUBLISHES COMMUNICATION PIECES ON FINANCIAL SERVICES, INCLUDING A BROCHURE TITLED FINANCIAL SERVICES AND PAYMENT OPTIONS. FREEMAN ALSO INCLUDES MESSAGING ABOUT ITS FINANCIAL ASSISTANCE PROGRAM ON BILLS, STATEMENTS, AND ENVELOPES SENT TO PATIENTS' HOMES AND ON SIGNS POSTED AROUND FREEMAN PATIENT ACCOUNTS AND ADMISSIONS PUBLIC AREAS. FREEMAN HAS ALSO PLACED FINANCIAL ASSISTANCE INFORMATION, INCLUDING A FINANCIAL ASSISTANCE APPLICATION IN ENGLISH AND SPANISH, ON THE FREEMAN WEBSITE. ADDITIONALLY, FREEMAN HAS IMPLEMENTED SEVERAL EDUCATIONAL OPPORTUNITIES TO ENSURE THE COMMUNITY IS AWARE OF ITS FINANCIAL ASSISTANCE PROGRAM. THESE INCLUDE: - FREEMAN ADMISSIONS STAFF MEMBERS PERSONALLY INTERVIEW PATIENTS, BASED ON THE SETTING OF CARE (PRIOR TO SERVICES, AT TIME OF SERVICE, AND AFTER CARE PROVIDED), TO PROVIDE EDUCATION ON AVAILABLE BENEFITS. FREEMAN HELPS UNINSURED AND UNDERINSURED PATIENTS WITH STATE AND FEDERAL ASSISTANCE RESOURCES, AS WELL AS THE FREEMAN FINANCIAL ASSISTANCE PROGRAM. - FREEMAN CONTINUALLY PROVIDES EDUCATION TO EMPLOYEES, FROM CLINICAL STAFF TO VOLUNTEERS, REGARDING ITS FINANCIAL ASSISTANCE POLICY SO THEY CAN HELP CUSTOMERS LEARN ABOUT AVAILABLE RESOURCES. - FREEMAN PROVIDES SYSTEM-WIDE COMMUNICATION, SUCH AS THE DAILY LINE-UP NEWSLETTER (REQUIRED READING FOR STAFF MEMBERS AT EVERY LEVEL) AND COMMUNICATION BOARDS POSTED IN ALL DEPARTMENTS, TO REMIND STAFF OF THE FREEMAN FINANCIAL ASSISTANCE POLICY THROUGHOUT THE YEAR. - PATIENTS NEEDING HELP PAYING FOR HEALTHCARE ARE INTERVIEWED BY MEDIASSIST, FREEMAN'S THIRD-PARTY ELIGIBILITY VENDOR. MEDIASSIST ON-SITE STAFF SPECIALIZE IN THE STATE ASSISTANCE APPLICATION PROCESS FOR THE FOUR-STATE AREA (MISSOURI, ARKANSAS, OKLAHOMA, AND KANSAS), AS WELL AS OTHER STATES, BASED ON PATIENTS' NEEDS. MEDIASSIST HELPS PATIENTS WITH THE APPLICATION PROCESS VIA FACE-TO-FACE INTERVIEWS, HOME VISITS, AND OVER-THE-PHONE CONVERSATIONS. - FREEMAN WORKS WITH MANY OF OUR COMMUNITY'S EMPLOYERS, SENDING WRITTEN NOTICES TO THEIR BENEFITS DEPARTMENTS EXPLAINING THE FREEMAN FINANCIAL ASSISTANCE ELIGIBILITY PROCESS. FREEMAN ALSO MEETS WITH EMPLOYERS TO ENSURE THEIR EMPLOYEES UNDERSTAND THE AVAILABILITY OF ASSISTANCE OFFERED THROUGH FREEMAN. - IN RESPONSE TO EDUCATION OFFERED ABOUT THE FREEMAN FINANCIAL ASSISTANCE PROGRAM, THE HEALTH SYSTEM RECEIVES REFERRALS FROM PHYSICIANS AND COMMUNITY CLINICS. THIS HELPS PATIENTS ARRANGE FOR MEDICALLY NECESSARY HEALTHCARE PRIOR TO THE TIME SERVICES ARE RENDERED. FREEMAN HEALTH SYSTEM STRONGLY BELIEVES THAT ITS FINANCIAL ASSISTANCE, OR CHARITY CARE, AND THE RELATED COMMUNITY BENEFIT PROVIDED BY SUCH CARE, IS UNDERSTATED ON ITS FINANCIAL STATEMENTS BECAUSE SOME PATIENTS THAT POTENTIALLY QUALIFY FOR FINANCIAL ASSISTANCE DO NOT WISH TO APPLY FOR IT. IN ADDITION, SOME PATIENTS WHO QUALIFY FOR FINANCIAL ASSISTANCE DO NOT RECEIVE FINANCIAL ASSISTANCE BECAUSE THEY REFUSE TO PROVIDE REQUIRED DOCUMENTATION TO PROCESS THE APPLICATION. THUS, FREEMAN'S BAD DEBT INCLUDES A PORTION THAT COULD BE CLASSIFIED AS FINANCIAL ASSISTANCE IF THE APPLICATION FOR FINANCIAL ASSISTANCE HAD BEEN PROPERLY COMPLETED BY THE PATIENT.
COMMUNITY INFORMATION		FREEMAN SERVES AN AREA WITH A POPULATION OF ABOUT A HALF MILLION PEOPLE IN SOUTHWEST MISSOURI, SOUTHEAST KANSAS, NORTHEAST OKLAHOMA, AND NORTHWEST ARKANSAS. THE PRIMARY SERVICE AREA INCLUDES TWO MISSOURI COUNTIES WITH A COMBINED POPULATION OF 176,102; THE SECONDARY SERVICE AREA INCLUDES NINE ADDITIONAL, LARGELY RURAL COUNTIES IN SOUTHWEST MISSOURI, SOUTHEAST KANSAS, AND NORTHEAST OKLAHOMA, WITH A COMBINED POPULATION OF 246,116. INCOMES AND EDUCATION LEVELS LAG BEHIND NATIONAL AVERAGES, WHILE THE PERCENTAGE OF PEOPLE LIVING IN POVERTY IS HIGHER THAN THE NATIONAL AVERAGE.
COMMUNITY BUILDING ACTIVITIES		FREEMAN HEALTH SYSTEM WORKS TO IMPROVE THE HEALTH OF THE COMMUNITY THROUGH A VARIETY OF COMMUNITY SERVICE PROGRAMS BOTH INSIDE AND OUTSIDE THE ORGANIZATION. AS A SYSTEM, FREEMAN PARTICIPATES IN THE JOPLIN AREA CHAMBER OF COMMERCE AS A TOP LEVEL SPONSOR, WITH STAFF MEMBERS SERVING ON A VARIETY OF COMMITTEES AND PARTICIPATING IN LEADERSHIP JOPLIN AND THE YOUNG PROFESSIONALS NETWORK. UNITED WAY OF SOUTHWEST MISSOURI AND SOUTHEAST KANSAS COUNTS ON FREEMAN, AS ONE OF ITS PACESETTER COMPANIES, TO HELP SET THE TONE FOR GIVING IN THE COMMUNITY. FREEMAN PROVIDES FINANCIAL SUPPORT FOR A MANY COMMUNITY SERVICE GROUPS, INCLUDING THE ALZHEIMER'S ASSOCIATION, AMERICAN CANCER SOCIETY, AMERICAN DIABETES ASSOCIATION, AMERICAN HEART ASSOCIATION, BIG BROTHERS/BIG SISTERS OF JASPER & NEWTON COUNTIES, BOYS & GIRLS CLUB OF JOPLIN, CHILDREN'S CENTER OF SOUTHWEST MISSOURI, COMMUNITY BLOOD CENTER OF THE OZARKS, COMMUNITY CLINIC OF JOPLIN, FREEMAN SOUTHWEST FAMILY Y IN NEOSHO, JOPLIN FAMILY Y, GEORGE A. SPIVA CENTER FOR THE ARTS, LAFAYETTE HOUSE, MARCH OF DIMES, NATIONAL MULTIPLE SCLEROSIS SOCIETY, NEOSHO AREA UNITED FUND, RONALD MCDONALD HOUSE CHARITIES OF THE FOUR STATES, AND MANY OTHER LOCAL, REGIONAL, AND NATIONAL ORGANIZATIONS. SETTING AN EXAMPLE FOR THEIR STAFFS, FREEMAN SENIOR LEADERS CURRENTLY SERVE ON A VARIETY OF BOARDS, COUNCILS, AND COMMITTEES FOR SERVICE/COMMUNITY ORGANIZATIONS SUCH AS VOLUNTARY HOSPITALS OF AMERICA (VHA) INC., VHA MID-AMERICA, MISSOURI HOSPITAL ASSOCIATION, MIDWEST TRANSPLANT NETWORK, RONALD MCDONALD HOUSE CHARITIES OF THE FOUR STATES, JOPLIN AREA CHAMBER OF COMMERCE, PROMUSICA, JOPLIN FAMILY Y, COMMUNITY CLINIC OF JOPLIN, ROTARY INTERNATIONAL, PITTSBURG STATE UNIVERSITY FOUNDATION, ASCENT RECOVERY RESIDENCES, TALKINGTON FOUNDATION, JOPLIN METRO EMERGENCY TRANSPORTATION SYSTEM, OZARK TRI-COUNTY HEALTH CARE CONSORTIUM, OSTEOPATHIC MEDICAL EDUCATION CONSORTIUM OF OKLAHOMA, JOPLIN R-VIII SCHOOL DISTRICT, UNITED WAY OF SOUTHWEST MISSOURI AND SOUTHEAST KANSAS, MISSOURI SOUTHERN STATE UNIVERSITY SCHOOL OF NURSING, AND CROWDER COLLEGE. FREEMAN PHYSICIANS, NURSES, AND SUPPORT PERSONNEL SERVE ON COMMUNITY BOARDS AND COMMITTEES TOO NUMEROUS TO MENTION. INVESTING IN THE COMMUNITY'S EDUCATIONAL FUTURE FOLLOWING THE MAY 22, 2011, EF-5 TORNADO THAT DEVASTATED JOPLIN, MISSOURI, FREEMAN DONATED $50,000 TO JOPLIN-AREA SCHOOLS IN JULY 2011. TWO SCHOOL SYSTEMS THAT SUSTAINED HEAVY LOSSES IN THE STORM, JOPLIN PUBLIC SCHOOLS AND JOPLIN AREA CATHOLIC SCHOOLS, EACH RECEIVED $25,000 FROM FREEMAN TO HELP FUND RECOVERY AND REBUILDING EFFORTS. IN COLLABORATION WITH JOPLIN PUBLIC SCHOOLS, FREEMAN WORKS TO ENHANCE EDUCATIONAL OPPORTUNITIES FOR CHILDREN THROUGH BRIGHT FUTURES, AN INITIATIVE FOCUSED ON IMPROVING THE LIVES OF JOPLIN STUDENTS. FREEMAN PARTICIPATES IN THIS INITIATIVE THROUGH A PARTNERSHIP SUPPORTING VARIOUS SCHOOLS BY HELPING WITH EVENTS, FUNCTIONS, AND OTHER NEEDS OF STUDENTS AND TEACHERS. FREEMAN ALSO SPONSORS THE TOGETHER REACHING EVERY KID PROJECT, IN WHICH MEMBERS OF THE COMMUNITY VOLUNTEER THEIR TIME TO TUTOR AND MENTOR STUDENTS AFTER SCHOOL TO IMPROVE STUDENT ACHIEVEMENT IN READING AND MATH. FREEMAN SERVES MORE THAN 1 MILLION MEALS EACH YEAR AND RECOGNIZES THE IMPORTANCE OF PROVIDING WHOLESOME FOODS TO THE COMMUNITY. ESTABLISHING ITS COMMITMENT TO SERVING LOCAL, NUTRITIOUS, AND SUSTAINABLE FOOD, FREEMAN BECAME THE FIRST HOSPITAL IN MISSOURI TO SIGN THE HEALTHY FOOD IN HEALTHCARE PLEDGE. THE PLEDGE, PART OF THE NATIONAL HEALTHY FOOD IN HEALTHCARE INITIATIVE DEVELOPED BY THE INSTITUTE FOR AGRICULTURE AND TRADE POLICY AND HEALTH CARE WITHOUT HARM, WAS FREEMAN'S FIRST STEP TOWARD IMPROVING COMMUNITY HEALTH THROUGH FOOD POLICY CHANGE. SINCE SIGNING THE PLEDGE IN 2010, FREEMAN HAS PROMOTED THE AVAILABILITY OF NUTRITIOUS FOODS TO PATIENTS, EMPLOYEES, AND VISITORS. IN FY 2012, FREEMAN SET UP FARMERS MARKETS DURING THE SUMMER MONTHS AT FREEMAN WEST, FREEMAN EAST, AND FREEMAN NEOSHO. THESE MARKETS PROVIDE THE COMMUNITY WITH AN OPPORTUNITY TO BUY FRESH, NUTRITIOUS FRUIT, VEGETABLES, AND OTHER LOCALLY PRODUCED FOODS. FREEMAN HELPS WITH COMMUNITY-BUILDING MY OFFERING SOLUTIONS TO HELP MEET THE NEEDS OF SPECIFIC POPULATIONS, SUCH AS CHILDREN WITH AUTISM, CHILDREN WITH MEDICAL EXPENSES, AND SENIOR CITIZENS. OZARK CENTER FOR AUTISM, FOR INSTANCE, PROVIDES HOPE FOR CHILDREN WITH AUTISM THROUGH A PRESCHOOL PROGRAM AND RECENTLY EXPANDED SERVICES FOR SCHOOL-AGE CHILDREN. AS A CHILDREN'S MIRACLE NETWORK HOSPITAL, FREEMAN RAISES MONEY TO HELP SICK AND INJURED CHILDREN WITH MEDICAL EXPENSES. FREEMAN ADVANTAGE PROMOTES THE HEALTH OF SENIOR CITIZENS BY OFFERING AVENUES FOR LEARNING, TRAVEL, SOCIALIZING, AND HEALTHY LIVING. MEN AND WOMEN OF ALL AGES AND FROM ALL WALKS OF LIFE PARTICIPATE IN FREEMAN AUXILIARY, AN ORGANIZATION THAT RAISES MONEY FOR HOSPITAL EQUIPMENT, SERVICES, SCHOLARSHIPS, AND COMMUNITY NEEDS. AND FREEMAN FOUNDATION WORKS WITH THE COMMUNITY TO FIND FUNDING FOR INNOVATIVE, LIFESAVING TECHNOLOGIES AND MEDICAL SERVICES. FREEMAN SPONSORS PROGRAMS TO HELP REDUCE WASTE AND SOLVE ENVIRONMENTAL CHALLENGES AROUND THE HEALTH SYSTEM AND THROUGHOUT THE COMMUNITY. THROUGH FREEMAN GREEN TEAM, FREEMAN HAS ESTABLISHED AN ALLIANCE WITH AREA BUSINESSES TO CREATE COMMUNITY-WIDE SUSTAINABILITY PROJECTS. IN JULY 2011, FREEMAN WAS RECOGNIZED AS ONE OF THE GREENEST HEALTHCARE ORGANIZATIONS IN AMERICA BY THE GREENCARE AWARDS PROGRAM. FREEMAN WAS SELECTED OUT OF APPROXIMATELY 125 APPLICANTS AS THE 2011 GREENCARE AWARD WINNER IN THE HOUSEKEEPING AND MAINTENANCE CATEGORY. THIS DISTINCTION REFLECTS THE HEALTH SYSTEM'S COMMITMENT TO PROVIDING ENVIRONMENTALLY SUSTAINABLE HEALTHCARE. ONE OF FREEMAN'S GOALS IS TO BECOME THE COMMUNITY'S BEST CORPORATE PARTNER. TO ACCOMPLISH THIS, FREEMAN DONATES TIME, RESOURCES, AND FUNDING AS AN ORGANIZATION, WHILE THOSE WORKING AT FREEMAN GIVE BACK TO THE COMMUNITY AS WELL, DONATING MAN-HOURS, MORE THAN 33,070 HOURS LAST YEAR, AND MONEY FOR THE BETTERMENT OF THE COMMUNITY.
OTHER INFORMATION		FREEMAN PROMOTES THE HEALTH OF THE COMMUNITY THROUGH MANY OUTREACH PROGRAMS. THESE INCLUDE PROGRAMS TO HELP PEOPLE QUIT SMOKING, SUPPORT GROUPS FOR A VARIETY OF ILLNESSES AND CONDITIONS, OZARK CENTER FOR AUTISM, PROGRAMS FOR SENIOR CITIZENS, COMMUNITY HEALTH SCREENINGS, AND MANY MORE. FREEMAN SCREEN TEAM TRAVELS THROUGHOUT THE COMMUNITY, OFFERING LOW-COST HEALTH SCREENINGS TO HELP PEOPLE GET A HANDLE ON THEIR MEDICAL CONDITIONS AND SEEK HELP BEFORE SMALL PROBLEMS BECOME MEDICAL EMERGENCIES. FREEMAN SUPPORT GROUPS OFFER SUPPORT TO PARTICIPANTS AND EDUCATION ON TOPICS SUCH AS AUTISM, DIABETES, STROKE RECOVERY, CANCER RECOVERY, SLEEP DISORDERS, ALZHEIMER'S DISEASE, AND LYMPHEDEMA. FOR THE THIRD TIME SINCE 2007, FREEMAN HEALTH SYSTEM WAS RECOGNIZED FOR ITS EMPLOYEE HEALTH INITIATIVES WITH THE HEALTH AT WORK SILVER AWARD IN OCTOBER 2011. SPONSORED BY COMPSYCH, THIS AWARD HONORS ORGANIZATIONS THAT PROMOTE EMPLOYEE HEALTH AND WELLNESS. FREEMAN EARNED THIS MERIT BASED ON ITS COMPREHENSIVE WELLNESS PROGRAM, PARTICIPATION RATES, AND RESULTS. ADDITIONALLY, FREEMAN WAS RECOGNIZED AS A FIT-FRIENDLY COMPANY BY THE AMERICAN HEART ASSOCIATION AND WAS ONE OF ONLY 24 COMPANIES ACROSS THE COUNTRY TO RECEIVE AMERICAN HEART ASSOCIATION'S COMMUNITY INNOVATION AWARD. AS A FIT-FRIENDLY COMPANY, FREEMAN SERVES AS AN EXAMPLE OF POSITIVE CHANGE IN THE AMERICAN WORKFORCE BY MAKING EMPLOYEES' HEALTH AND WELLNESS A PRIORITY. FREEMAN ALSO PROVIDES AUTISM SERVICES TO THE COMMUNITY. PRIOR TO THE OPENING OF OZARK CENTER FOR AUTISM IN FALL 2007, FAMILIES SEEKING TREATMENT FOR CHILDREN WITH AUTISM HAD TWO CHOICES-RELOCATE TO RECEIVE TREATMENT OR GO WITHOUT IT. DEVELOPED IN CONSULTATION WITH THE CLEVELAND CLINIC AUTISM CONSULTING GROUP, OZARK CENTER FOR AUTISM IS ONE OF ONLY A FEW TREATMENT CENTERS OF ITS CALIBER. OZARK CENTER FOR AUTISM INCLUDES A SPECIAL EDUCATION CENTER, PROVIDING THERAPY SERVICES TO STUDENTS FROM KINDERGARTEN THROUGH HIGH SCHOOL. OZARK CENTER FOR AUTISM ALSO OFFERS THE AREA'S ONLY AUTISM DIAGNOSTIC TEAM, PROVIDING PARENTS OF CHILDREN ON THE AUTISM SPECTRUM THE OPPORTUNITY TO RECEIVE AN AUTISM DIAGNOSIS WITHOUT HAVING TO TRAVEL HUNDREDS OF MILES AWAY FROM HOME. OZARK CENTER FOR AUTISM WAS DEVASTATED BY THE EF-5 TORNADO THAT STRUCK JOPLIN, MISSOURI ON MAY 22, 2011. HOWEVER, THE SCHOOL REOPENED IN A TEMPORARY LOCATION SHORTLY AFTER THE DISASTER AND IS NOW HOUSED IN A LONG-TERM, TEMPORARY HOME, UNTIL A NEW CENTER CAN BE BUILT. FREEMAN STAFF MEMBERS, SUCH AS DOCTORS AND NURSES, HELP THE COMMUNITY BY WORKING AT THE COMMUNITY CLINIC OF JOPLIN AND ACCESS FAMILY CARE, ORGANIZATIONS THAT PROVIDE FREE OR LOW-COST HEALTHCARE SERVICES TO INDIGENT PORTIONS OF THE COMMUNITY. DEPENDING ON THE SITUATION, FREEMAN STAFF MEMBERS VOLUNTEER OR FREEMAN PAYS THEM TO WORK FOR THE COMMUNITY THROUGH THESE ORGANIZATIONS. IT IS OFTEN DIFFICULT TO ATTRACT NEW PHYSICIANS TO CITIES LOCATED IN LARGELY RURAL AREAS. ONE WAY FREEMAN HELPS ATTRACT DOCTORS TO JOPLIN IS THROUGH GRADUATE MEDICAL EDUCATION. AS A TEACHING HOSPITAL, FREEMAN BROUGHT 23 CORE MEDICAL STUDENTS, 45 VISITING MEDICAL STUDENTS, AND 24 RESIDENT DOCTORS TRAINED IN THE FREEMAN GRADUATE MEDICAL EDUCATION PROGRAM IN THE 2011-2012 SCHOOL YEAR. MEDICAL STUDENTS AND RESIDENT DOCTORS OFTEN REMAIN IN THE COMMUNITIES IN WHICH THEY TRAINED. THIS COMMUNITY BENEFIT IS VITAL TO THE POPULATION SERVED BY FREEMAN BECAUSE IT IS DIFFICULT AND EXPENSIVE TO ATTRACT AND RECRUIT PHYSICIANS TO WORK IN THE JOPLIN AREA. ADDITIONALLY, FREEMAN REACHES OUT TO YOUNGER STUDENTS AS WELL. THROUGH A SUMMER VOLUNTEER PROGRAM, HIGH SCHOOL STUDENTS SPEND SEVERAL WEEKS AT THE HOSPITALS, WORKING SIDE-BY-SIDE WITH NURSES AND DOCTORS. FREEMAN HEALTH ACADEMY, ON THE OTHER HAND, WORKS WITH MIDDLE SCHOOL STUDENTS TO ENCOURAGE THEM TO GRADUATE FROM HIGH SCHOOL AND HELP THEM CHOOSE COURSES, SUCH AS MATH AND SCIENCE, TO PREPARE THEM FOR FURTHER EDUCATION AND CAREERS IN HEALTHCARE.
AFFILIATED HEALTH CARE SYSTEM		FREEMAN HEALTH SYSTEM CONSISTS OF FREEMAN HOSPITAL WEST AND FREEMAN HOSPITAL EAST IN JOPLIN, FREEMAN NEOSHO HOSPITAL, AND OZARK CENTER, WHICH PROVIDES COMPREHENSIVE BEHAVIORAL HEALTH SERVICES. FREEMAN IS NOT AFFILIATED WITH ANOTHER HEALTHCARE SYSTEM.
STATE FILING OF COMMUNITY BENEFIT REPORT		FREEMAN HEALTH SYSTEM IS INCORPORATED IN THE STATE OF MISSOURI AND FILES A COMMUNITY BENEFIT REPORT IN MISSOURI.

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
FREEMAN NEOSHO HOSPITAL

Employer identification number
43-1240629

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	(e) Amount of non-cash assistance	(f) Method of valuation (book, FMV, appraisal, other)	(g) Description of non-cash assistance	(h) Purpose of grant or assistance

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
MONITORING USE OF GRANT FUNDS	SCHEDULE I, PART I, LINE 2	DURING THE FISCAL YEAR, FREEMAN NEOSHO HOSPITAL ASSISTED LOCAL CHARITABLE ORGANIZATIONS WITH WHICH THEY HAVE A CONSISTENT RELATIONSHIP OF GIVING. THE HOSPITAL WORKS CLOSELY WITH THE ORGANIZATIONS; THEREFORE, THEY ARE ABLE TO WITNESS THE USE OF GRANT FUNDS FIRST HAND.

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

FREEMAN NEOSHO HOSPITAL

Employer identification number

43-1240629

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

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) DR LARRY G BARNES	(i) (ii)	0 210,233	0 60,323	0 16,500	0 7,350	0 11,252	0 305,658	0 0
(2) GARY D DUNCAN	(i) (ii)	0 571,004	0 1,901	0 148,944	0 7,350	0 9,108	0 738,307	0 0
(3) CRAIG L PENDERGRASS DO	(i) (ii)	0 370,136	0 42,134	0 0	0 0	0 10,052	0 422,322	0 0
(4) DAXTON D HOLCOMB	(i) (ii)	157,223 0	351 0	100 0	21,674 0	15,362 0	194,710 0	0 0
(5) JIMMY W PYRON	(i) (ii)	306,600 0	1,151 0	16,500 0	7,350 0	9,916 0	341,517 0	0 0
(6) BARRY J WAACK	(i) (ii)	355,949 0	601 0	0 0	7,350 0	6,409 0	370,309 0	0 0
(7) JOSEPH KONSTANZER	(i) (ii)	141,781 0	5,946 0	809 0	4,456 0	30 0	153,022 0	0 0
(8) DAUD KHAN	(i) (ii)	313,053 0	601 0	0 0	0 0	10,052 0	323,706 0	0 0
(9) WILLIAM D GEORGE	(i) (ii)	170,815 0	175 0	51 0	5,271 0	6,271 0	182,583 0	0 0
(10) STEVE GRADDY	(i) (ii)	0 314,404	0 1,251	0 21,024	0 74,931	0 17,205	0 428,815	0 0
(11) PAULA BAKER	(i) (ii)	0 224,161	0 101	0 36,131	0 63,259	0 10,408	0 334,060	0 0

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 NONQUALIFIED RETIREMENT PLAN	SCHEDULE J, PART I, LINE 4B	THE FOLLOWING INDIVIDUALS RECEIVED CONTRIBUTIONS FROM A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN THROUGH FREEMAN HEALTH SYSTEM OR FREEMAN NEOSHO DURING THE YEAR: $ 119,615 GARY D. DUNCAN 55,909 PAULA BAKER 67,581 STEVE GRADDY 16,884 DAXTON HOLCOMB
BONUS & INCENTIVE COMPENSATION	SCHEDULE J, PART II, COLUMN (B)(II)	THE ORGANIZATION PROVIDES PHYSICIANS THE POTENTIAL TO RECEIVE ANNUAL BONUS COMPENSATION. PHYSICIAN BONUSES ARE CALCULATED BASED ON GENERATING WORKED RELATIVE VALUE UNITS (WRVU). EMPLOYMENT CONTRACTS SPECIFY THE NUMBER OF REQUIRED WRVUS (TO OBTAIN AN ANNUAL SALARY) AND THE ADDITIONAL BONUS COMPENSATION PHYSICIANS WILL RECEIVE ONCE THE REQUIRED WRVUS HAVE BEEN MET. ADDITIONAL BONUS COMPENSATION IS CALCULATED BY MULTIPLYING THE WRVUS IN EXCESS OF REQUIRED WRVUS TIMES A PREDETERMINED COMPENSATION FACTOR. WRVUS SHALL BE COMPUTED BY USE OF THE APPROVED MEDICARE METHODS OF COMPUTATION FOR PHYSICIAN PRACTICES.

Schedule J (Form 990) 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

FREEMAN NEOSHO HOSPITAL

Employer identification number

43-1240629

Identifier	Return Reference	Explanation
ORGANIZATION'S VISION	FORM 990, PART I, LINE 1	VISION - TO BE THE LEADING PROVIDER OF PATIENT CENTERED, PHYSICIAN DIRECTED HEALTHCARE IN AN ENVIRONMENT OF COMPASSION AND TRUST, SUPPORTED BY DEDICATED EMPLOYEES WITH A DESIRE TO PROVIDE EXCELLENCE IN CARE AND SERVICE.
PROGRAM SERVICES	FORM 990, PART III, LINE 4	FREEMAN HEALTH SYSTEM, NOT-FOR-PROFIT, COMMUNITY-OWNED, AND LOCALLY GOVERNED BY A VOLUNTEER BOARD OF DIRECTORS, PROVIDES FULL-SERVICE HEALTHCARE TO SOUTHWEST MISSOURI, SOUTHEAST KANSAS, NORTHEAST OKLAHOMA, AND NORTHWEST ARKANSAS. A THREE-HOSPITAL, 517 LICENSED BED HEALTH SYSTEM, FREEMAN PROVIDES COMPREHENSIVE SERVICES INCLUDING CANCER CARE, HEART CARE, ORTHOPAEDICS, NEUROSURGERY, WOMEN'S SERVICES, AND BEHAVIORAL HEALTHCARE. FREEMAN ACCEPTS MEDICAID AND MEDICARE PATIENTS AND OFFERS CHARITY CARE AND PAYMENT PLANS, PROVIDING A SAFETY NET TO A THIRD OF THE LOCAL POPULATION WITH HOUSEHOLD INCOMES BELOW $25,000. FREEMAN ASKS ALL EMPLOYEES AND VOLUNTEERS TO EMBRACE THE MISSION OF IMPROVING THE HEALTH OF THE COMMUNITIES SERVED THROUGH CONTEMPORARY, INNOVATIVE, QUALITY HEALTHCARE SOLUTIONS. THE FREEMAN MEDICAL TEAM, WHICH INCLUDES MORE THAN 300 PHYSICIANS REPRESENTING 60 SPECIALTIES, USES THE LATEST TECHNIQUES, BEST PRACTICES, AND TECHNOLOGIES TO PROVIDE LIFESAVING MEDICAL CARE, PROVIDING CONSTITUENTS WITH THE HEALTHCARE THEY NEED RIGHT IN THEIR OWN BACK YARD. JOPLIN-AREA PATIENTS DO NOT HAVE TO TRAVEL TO BIG CITIES TO RECEIVE HEART INTERVENTIONS, CARDIOTHORACIC SURGERIES, NEUROSURGERIES, PAIN THERAPIES, INTENSIVE CARE, TRAUMA CARE, AND ADVANCED DIAGNOSTIC SERVICES. THE CLOSE-TO-HOME AVAILABILITY OF PROGRESSIVE HEALTHCARE SERVICES EASES STRESS ON PATIENTS, FOR WHOM TRAVEL CAN BE UNCOMFORTABLE, AND THEIR FAMILIES, FOR WHOM TRAVEL CAN PRESENT A GREAT FINANCIAL BURDEN. FISCAL YEAR (FY) 2012 WAS CHALLENGING BECAUSE FREEMAN HAD TO DEAL WITH THE BIGGEST DISASTER TO EVER HIT ITS HOME CITY. THOUSANDS OF STRUCTURES WERE LOST IN THE MAY 22, 2011, EF-5 TORNADO THAT DEVASTATED JOPLIN, MISSOURI, BUT THE REAL HEARTBREAK WAS THE 161 LIVES TAKEN BY THE STORM AND THE HUNDREDS OF PEOPLE INJURED. MAY 22, 2011, BEGAN AS A TYPICAL SPRING SUNDAY IN JOPLIN, A SOUTHWEST MISSOURI TOWN WITH A POPULATION OF ABOUT 50,000. MANY PEOPLE ENJOYED A LEISURELY READ OF THE MORNING NEWSPAPER AND SPENT TIME RELAXING WITH THEIR FAMILIES; MANY WENT TO CHURCH AND THEN OUT TO EAT. THE NATIONAL WEATHER SERVICE ISSUED TORNADO WATCH #325 AT 1:30 PM. SOUTHWEST MISSOURIANS ARE USED TO BAD WEATHER, ESPECIALLY THUNDERSTORMS AND TORNADOES, AND TOOK IT IN STRIDE. THE FREEMAN EMERGENCY ROOM WAS RUNNING AT NEAR CAPACITY, AND FREEMAN HEALTH SYSTEM AND THE OTHER HOSPITAL IN TOWN, ST. JOHN'S, WERE BOTH ABOUT HALF FULL AT THAT TIME. THIS PARTICULAR AFTERNOON, THE JOPLIN HIGH SCHOOL CLASS OF 2011 PICKED UP THEIR DIPLOMAS IN A CEREMONY HELD AT THE COLLEGE ON THE NORTHEAST END OF TOWN. GRADUATION ENDED IN THE LATE AFTERNOON, AND PEOPLE HEADED HOME FOR PRIVATE CELEBRATIONS WITH FAMILY AND FRIENDS. AT 5:11 PM, TORNADO SIRENS SOUNDED. IT THEN APPEARED THE TORNADO WOULD VEER NORTH OF JOPLIN, AND THE SIRENS STOPPED. WHEN THE SIRENS SOUNDED AGAIN SEVERAL MINUTES LATER, MANY PEOPLE WERE SHOPPING AT WALMART OR THE HOME DEPOT OR EATING OUT AT ONE OF THE MANY RESTAURANTS THAT LINE MAIN STREET AND RANGE LINE ROAD. AT 5:41 PM, THE TORNADO OFFICIALLY TOUCHED DOWN ON THE WEST SIDE OF TOWN. IT TOOK ABOUT 32 MINUTES FOR THE THREE-QUARTER-MILE-WIDE TORNADO TO GRIND ITS WAY FROM ONE SIDE OF JOPLIN TO THE OTHER. THE SLOW-MOVING GIANT STAYED ON THE GROUND FOR MORE THAN 13 MILES, THE SIX DEADLIEST MILES RIPPING THROUGH SOME OF THE CITY'S MOST DENSELY POPULATED RESIDENTIAL AREAS AND THE HEART OF THE BUSINESS DISTRICT. THE TORNADO DESTROYED 8,000 STRUCTURES, INCLUDING THE ONLY OTHER EMERGENCY HOSPITAL IN TOWN. IT INJURED THOUSANDS OF PEOPLE, HUNDREDS OF THEM SEVERELY. PEOPLE WITH UNIMAGINABLE INJURIES, SUCH AS IMPALEMENTS, SEVERED LIMBS, AND EXPOSED INTERNAL ORGANS, POURED INTO THE HOSPITAL IN DROVES. IN ADDITION TO THE OVERWHELMING VOLUME AND CRITICAL NATURE OF INJURIES, FREEMAN RECEIVED PATIENTS FROM THE 40-BED ICU OF THE HOSPITAL THAT HAD BEEN DESTROYED, MANY OF THEM DELIVERED IN PICKUP TRUCKS AND VENTILATED BY HAND TO KEEP THEM ALIVE UNTIL THEY COULD REACH WORKING VENTILATORS. MOST OF THESE ICU PATIENTS WERE UNABLE TO COMMUNICATE, AND FREEMAN HAD NO ACCESS TO THEIR MEDICAL RECORDS. PHYSICIANS TREATING THEM DIDN'T KNOW WHY THE PATIENTS HAD BEEN ADMITTED TO THE ICU, THEIR HISTORY, OR EVEN THEIR CONDITION BEFORE THE TORNADO HIT. COMMUNICATION WITH THE OUTSIDE WORLD WAS IMPOSSIBLE THAT NIGHT. THE TORNADO KNOCKED DOWN TELEPHONE POLES AND CELL PHONE TOWERS, AND THE HOSPITAL WAS UNABLE TO CALL PHYSICIANS, NURSES, OR OTHER STAFF MEMBERS TO COME TO THE HOSPITAL TO HELP. AND, CONVERSELY, STAFF MEMBERS COULDN'T CALL FREEMAN TO SEE IF THEY WERE NEEDED. WORSENING MATTERS, FREEMAN WAS UNABLE TO REACH EMERGENCY MEDICAL SERVICE PROVIDERS IN THE SURROUNDING AREA TO ASK THEM TO SEND EMPTY AMBULANCES TO TRANSPORT STABLE PATIENTS TO HOSPITALS IN OTHER TOWNS AND CITIES. STAFF MEMBERS ON DUTY AT THE HOSPITAL AT THE TIME OF THE TORNADO WORKED UNDER THE PRESSURE OF NOT KNOWING IF THEIR OWN FAMILIES HAD SURVIVED THE STORM BECAUSE THEY HAD NO WAY TO PHONE HOME. THE TORNADO PLOWED DIRECTLY THROUGH SOME OF THE MOST POPULAR PHYSICIAN NEIGHBORHOODS, AND MORE THAN A DOZEN FREEMAN PHYSICIANS LOST THEIR HOMES THAT NIGHT, INCLUDING ONE OF THE TRAUMA SURGEONS, ONE OF THE ANESTHESIOLOGISTS, THE EMERGENCY DEPARTMENT/TRAUMA MEDICAL DIRECTOR, AND OTHER KEY MEDICAL STAFF MEMBERS, RESIDENTS, AND MEDICAL STUDENTS. MANY FREEMAN STAFF MEMBERS-DOCTORS, NURSES, AND SUPPORT STAFF-LITERALLY CRAWLED OUT OF THE RUBBLE OF THEIR OWN HOMES AND PROCEEDED TO THE HOSPITAL TO HELP SAVE LIVES AND COMFORT THE WOUNDED. IN THE IMMEDIATE HOURS AFTER THE TORNADO, FREEMAN: - TREATED MORE THAN 500 PATIENTS AT FREEMAN WEST AND 39 AT FREEMAN NEOSHO - PERFORMED 22 SURGERIES IN 12 HOURS - PERFORMED 800 X-RAYS AND 400 CT SCANS - CARED FOR 60 PATIENTS FROM ST. JOHN'S - TRANSFERRED 64 PATIENTS TO SURROUNDING HOSPITALS ELEVEN PATIENTS DIED AT FREEMAN WEST THE FIRST NIGHT, TWO FREEMAN EMPLOYEES PERISHED IN THE STORM, AND 464 FREEMAN EMPLOYEES AND VOLUNTEERS, OR 12.5% OF THE FREEMAN WORKFORCE, WERE DIRECTLY AFFECTED, MANY LOSING EVERYTHING THEY OWNED. NORMALLY, FREEMAN HOSPITAL EAST PROVIDES OUTPATIENT, POST-ACUTE, AND BEHAVIORAL HEALTH SERVICES. THE NIGHT OF THE TORNADO, THE TWO PSYCHIATRISTS ON DUTY THERE SET UP AND MANNED A TRIAGE AREA TO CARE FOR EMERGENCY PATIENTS AT THIS NONEMERGENCY FACILITY UNTIL ADDITIONAL HELP COULD BE SUMMONED. ADDITIONALLY, FREEMAN NEOSHO HOSPITAL TOOK ON MANY OF THE INJURED PATIENTS. QUICKMEDS PHARMACY, OWNED BY FREEMAN HEALTH SYSTEM, OPERATES TWO PHARMACIES IN JOPLIN-ONE AT 32ND AND MCCLELLAND BOULEVARD AND ONE INSIDE FREEMAN HOSPITAL WEST. THE 32ND AND MCCLELLAND STORE WAS OPEN WHEN THE STORM STRUCK. PHARMACY STAFF TOOK SHELTER AS THEY BRACED FOR THE WORST. THE MASSIVE TORNADO MISSED THE PHARMACY BY LESS THAN A HALF MILE. THE STORE SUSTAINED MINOR DAMAGE. THE DOORS, HOWEVER, COULD NOT BE SECURED SO PHARMACY MANAGEMENT MADE THE DECISION TO MOVE THE ENTIRE PHARMACY INVENTORY TO THE QUICKMEDS PHARMACY LOCATED IN THE MAIN LOBBY OF FREEMAN HOSPITAL WEST. ONE PHARMACIST AND TWO PHARMACY TECHNICIANS OPENED THE FREEMAN WEST STORE SOON AFTER THE TORNADO THAT NIGHT AND WORKED CONTINUOUSLY FOR 24 HOURS FOLLOWING THE STORM. QUICKMEDS STAFF ASSISTED WITH MEDICATION NEEDS AS PATIENTS WERE TRIAGED AND DISCHARGED FROM THE HOSPITAL. IN THE IMMEDIATE HOURS FOLLOWING THE STORM, COMMUNICATION CAPABILITIES, INCLUDING TECHNICAL PROCESSING, WERE DISABLED. QUICKMEDS PHARMACY DISPENSED THOUSANDS OF DOLLARS OF MEDICATION WITHOUT THE ABILITY TO ADJUDICATE TO INSURANCE OR COLLECT MONEY FROM PATIENTS. MANY PATIENTS LOST ALL THEIR BELONGINGS, INCLUDING FORMS OF IDENTIFICATION AND MEANS OF PAYMENT. FREEMAN IMMEDIATELY MADE THE DECISION THAT PATIENTS WOULD NOT GO WITHOUT CARE AND THE MEDICATIONS THEY SO DESPERATELY NEEDED.
PROGRAM SERVICES (CONTINUED)	FORM 990, PART III, LINE 4	BECAUSE THE TORNADO DESTROYED OR DISABLED SIX LOCAL PHARMACIES, THE COMMUNITY HAD GREAT NEED FOR QUICKMEDS PHARMACY SERVICES. ALMOST IMMEDIATELY, PEOPLE BEGAN ARRIVING AT QUICKMEDS PHARMACY AT FREEMAN WEST. THE TORNADO DEMOLISHED MANY LOCAL PHYSICIAN OFFICES, AND MEDICATION RECORDS WERE NOT AVAILABLE. NUMEROUS CUSTOMERS TRIED TO DESCRIBE THE COLOR OF THE CAPSULE OR TABLET THEY WERE TAKING IN HOPES THE PHARMACY STAFF COULD DETERMINE THEIR MEDICATIONS FOR THEM. THIS PRESENTED A CHALLENGE FOR PHARMACISTS WHO HAD TO PLAY A ROLE DIFFERENT THAN THEY HAD EVER PLAYED BEFORE. IT BECAME EVIDENT THE MORNING FOLLOWING THE STORM, THAT FREEMAN NEEDED A PHYSICIAN AT THE PHARMACY TO HELP PATIENTS WHO NEEDED MEDICATIONS UNTIL THEY COULD OBTAIN PRESCRIPTIONS FROM THEIR OWN PHYSICIANS. TO ASSIST PATIENTS IN THIS CAPACITY, DR. DENNIS ESTEP, FREEMAN OCCUPATIONAL MEDICINE PHYSICIAN, WORKED IN THE PHARMACY ALONGSIDE THE PHARMACISTS AND STAFF. WITHOUT THIS COLLABORATION, MANY PATIENTS WOULD HAVE GONE WITHOUT THEIR MEDICATIONS. FREEMAN MADE THE DECISION TO HAVE A PHYSICIAN PRESENT EVEN BEFORE THE MISSOURI STATE BOARD OF PHARMACY RELEASED A STATEMENT GIVING PHARMACISTS THE ABILITY TO CONTINUE ANY AND ALL MEDICATIONS NECESSARY FOR A PATIENT WITHOUT A PHYSICIAN'S PRESCRIPTION. FREEMAN IDENTIFIED AND MET THE CHALLENGES THIS HORRIBLE STORM BROUGHT TO COUNTLESS PATIENTS BEFORE MANY OTHER PROVIDERS COULD REACT. FOR MONTHS, FREEMAN SERVED AS THE ONLY FULLY-FUNCTIONING HOSPITAL IN JOPLIN. PATIENT CENSUS AND ACUITY INCREASED DRAMATICALLY. AS THE ONLY LEVEL II TRAUMA CENTER LEFT IN JOPLIN FOLLOWING THE STORM, FREEMAN MADE PLANS TO MEET THE SURGE OF ADDITIONAL PATIENTS THAT CONTINUED LONG AFTER THE INITIAL INFLUX. PLANS INCLUDED: - ADDING 58 BEDS AT FREEMAN WEST (29 IN MARCH 2012, WITH 29 MORE PLANNED FOR OCTOBER 2012) - OPENING A TRANSITIONAL CARE UNIT JULY 18 - ADDING 20 ADULT PSYCHIATRIC BEDS AT FREEMAN EAST BECAUSE FOR SIX MONTHS FREEMAN WAS THE ONLY HOSPITAL IN TOWN WITH BEHAVIORAL HEALTH EMERGENCY AND INPATIENT CAPABILITIES - HIRING ADDITIONAL CLINICAL AND PHYSICIAN STAFF BECAUSE OF THE POST-TORNADO SURGE OF PATIENTS THAT CONTINUED FOR MONTHS, FREEMAN HAD TO HIRE MANY NURSES TO MEET THE DEMAND FOR SERVICES. THERE WEREN'T ENOUGH QUALIFIED NURSES AVAILABLE LOCALLY TO FILL THE NEED, SO FREEMAN HAD TO USE AGENCIES TO FILL VACANCIES. AGENCY NURSING STAFF COMES AT A PREMIUM PRICE, AND THIS RAISED THE COST OF LABOR FOR FREEMAN IN THE MONTHS FOLLOWING THE TORNADO. ANOTHER CONSEQUENCE OF THE TORNADO WAS THE GROWTH IN BAD DEBT THAT FREEMAN EXPERIENCED AFTER THE STORM. THOUSANDS OF PEOPLE LOST THEIR HOMES AND EVERYTHING THEY OWED IN THE STORM, AND MANY OF THEM COULD NOT PAY THEIR HOSPITAL BILLS. MANY OF THESE PATIENTS DID NOT APPLY FOR FINANCIAL ASSISTANCE, SO THEIR BILLS HAD TO BE WRITTEN OFF AS BAD DEBT, RATHER THAN CHARITY CARE. AFTER THE TORNADO, JOPLIN SAW A DRAMATIC INCREASE IN CHILD TRAUMA. TO PROVIDE CRITICAL SERVICES FOR CHILDREN AND FAMILIES IN NEED, THE GOVERNOR ALLOCATED FUNDS FOR CREATION OF WILL'S PLACE, A HEALING CENTER FOR KIDS. FREEMAN AND OZARK CENTER COLLABORATED WITH AREA CHILD CARE PROVIDERS AND CHILD-SERVING AGENCIES IN THE DESIGN OF THE CENTER. BEFORE THE TORNADO, FREEMAN HAD ESTABLISHED A DISASTER RELIEF FUND AND WAS ABLE TO PROVIDE THREE ROUNDS OF FINANCIAL DISASTER ASSISTANCE TO EVERY EMPLOYEE SUSTAINING LOSS. DONORS TO THIS FUND INCLUDED: - CORPORATIONS - FOUNDATIONS - FREEMAN EMPLOYEES - FREEMAN AUXILIARY - INDIVIDUALS - FREEMAN BOARD MEMBERS - FREEMAN PHYSICIANS IN THE FACE OF DEVASTATION AND HORRIFIC CIRCUMSTANCES-A SITUATION MORE BRUTAL THAN EVEN THE MOST EXPERIENCED DOCTOR OR NURSE HAD EVER SEEN PREVIOUSLY-FREEMAN HEALTHCARE PROFESSIONALS GAVE ALL THE ENERGY, SKILL, AND COURAGE THEY COULD MUSTER TO SERVE JOPLIN WITH HEARTS AND HANDS. MANY OF THEM WOULD SAY THEY WERE "JUST DOING THEIR JOBS." HOWEVER, THEY SHOWED UP THAT NIGHT TO DO MORE THAN JUST THEIR JOBS-THEY PERFORMED HEROICALLY TO PROVIDE THE BEST HEALTHCARE POSSIBLE DURING JOPLIN'S DARKEST HOURS. TODAY, FREEMAN REMAINS FIERCELY FOCUSED ON THAT RESPONSIBILITY AND CONSIDERS IT A PRIVILEGE TO CARE FOR THE COMMUNITY AND WORK TOWARD HEALING. TO HELP ENSURE THE COMMUNITY HAS THE PHYSICIANS IT NEEDS, FREEMAN BROUGHT 24 NEW PHYSICIANS INTO THE COMMUNITY DURING FY 2012, PROVIDING A GREAT BENEFIT, IN TERMS OF BOTH HEALTHCARE AND ECONOMICS. ACCORDING TO THE MISSOURI HOSPITAL ASSOCIATION, FAMILY PHYSICIANS MAKE AN ECONOMIC IMPACT OF MORE THAN $1 MILLION EACH YEAR ON THE COMMUNITIES THEY SERVE. FREEMAN NEOSHO HOSPITAL IS A 67 LICENSED BED, CRITICAL-ACCESS FACILITY THAT SERVES THE NEEDS OF LARGELY RURAL NEWTON AND MCDONALD COUNTIES IN SOUTHWEST MISSOURI. FREEMAN NEOSHO HOSPITAL PROVIDES THE COMMUNITY WITH EMERGENCY SERVICES; PEDIATRIC SERVICES; COMPREHENSIVE SURGICAL SERVICES; CARDIOLOGY AND ONCOLOGY/HEMATOLOGY SPECIALTY CLINICS; AND CARDIAC, PHYSICAL THERAPY, SPEECH THERAPY REHABILITATION SERVICES, AND MAMMOGRAPHY AND OTHER DIAGNOSTIC SERVICES THROUGH THE NEWLY BUILT GARY DUNCAN WOMEN'S PAVILION. FREEMAN ALSO PROVIDES EMERGENCY TRANSPORT FOR NEWTON AND MCDONALD COUNTIES THROUGH FREEMAN AMBULANCE SERVICE. FREEMAN NEOSHO PLAYED A BIG ROLE IN TORNADO RECOVERY, HELPING CARE FOR THE INFLUX OF PATIENTS IMMEDIATELY FOLLOWING THE STORM AND MEETING THE LONG-TERM MEDICAL NEEDS OF A COMMUNITY WHOSE HOSPITAL RESOURCES HAD BEEN DRAMATICALLY REDUCED. FREEMAN FAST FACTS FY 2012 (JOPLIN & NEOSHO COMBINED) - OUTPATIENT REGISTRATIONS: 409,376 - EMERGENCY/TRAUMA/URGENT CARE VISITS: 125,025 - FREEMAN OCCUMED VISITS: 43,035 - ADMISSIONS: 23,953 - SURGICAL PROCEDURES: 11,331 - BIRTHS: 2,841 - BABIES IN NEONATAL INTENSIVE CARE UNIT: 230 FOR 21 YEARS, FREEMAN ORTHOPAEDICS & SPORTS MEDICINE AND FREEMAN REHABILITATION SERVICES HAVE PROVIDED FREE ANNUAL PRESEASON PHYSICAL EXAMS FOR ATHLETES ATTENDING AREA SCHOOLS AND COLLEGES. MORE THAN 75 VOLUNTEERS, INCLUDING DOCTORS, NURSES, THERAPISTS, AND OTHER CLINICIANS, ASSIST WITH THE EXAMS, SCHEDULED AT SPECIFIC TIMES THROUGHOUT THE YEAR. THESE FREE PRESEASON PHYSICALS PROVIDE COMPREHENSIVE EVALUATION AND ASSESSMENT TO ATHLETES PARTICIPATING IN A SANCTIONED SPORT IN A SCHOOL-BASED PROGRAM; THROUGH THE AREA'S PARKS AND RECREATION DEPARTMENTS, YMCAS, OR LOCAL LEAGUES; OR IN TRAINING TO COMPETE IN A SPECIFIC EVENT, SUCH AS A MARATHON OR TRIATHLON. THIS PROGRAM HELPED HUNDREDS OF ATHLETES IN FY 2012. THROUGH THE CHAPLAINS FUND, FREEMAN OFFERS HELP TO PATIENTS UPON DISMISSAL FROM THE HOSPITAL. THIS FUND HELPS PATIENTS OBTAIN PRESCRIPTION MEDICATIONS BEFORE THEY GO HOME. ADDITIONALLY, PATIENTS WHO HAVE NO WAY HOME FROM THE HOSPITAL MAY RECEIVE HELP WITH TRANSPORTATION EXPENSES THROUGH THE CHAPLAINS FUND. THIS PROGRAM HELPED 1,424 PATIENTS IN FY 2012, PROVIDING A COMMUNITY BENEFIT OF $28,468. IN TERMS OF COMMUNITY SERVICE AS COMMUNITY BENEFIT, FREEMAN EMPLOYEES SPENT 33,070 HOURS ENGAGED IN COMMUNITY BENEFIT ACTIVITIES IN 2012. THIS ON-THE-JOB COMMUNITY BENEFIT INCLUDES TIME FREEMAN HEALTHCARE PROFESSIONALS SPENT TRAINING OR SERVING AS PRECEPTORS FOR STUDENT NURSES, MEDICAL STUDENTS, AND RESIDENT PHYSICIANS, AMONG OTHERS. STAFF MEMBERS ALSO SPENT COUNTLESS HOURS GIVING TOURS TO SCHOOL AND COMMUNITY GROUPS, WORKING WITH HIGH SCHOOL STUDENTS AND OTHER COMMUNITY MEMBERS ON JOB-SHADOWING PROJECTS, AND ENGAGING THE PUBLIC THROUGH PUBLIC PROGRAMS AND EVENTS. FREEMAN PROVIDES EMERGENT CARE FOR ALL WHO ENTER ITS DOORS, REGARDLESS OF THE PATIENT'S ABILITY TO PAY OR INSURANCE STATUS. FREEMAN ENDEAVORS TO GIVE PATIENTS MORE OPTIONS FOR PAYING THEIR BILLS, INCLUDING SETTING UP PAYMENT PLANS FOR QUALIFYING PATIENTS, A PROGRAM THAT PROVES ESPECIALLY BENEFICIAL TO PEOPLE WHO HAVE HEALTH INSURANCE, BUT LACK FUNDS TO PAY LARGE DEDUCTIBLES, CO-PAYS, OR OUT-OF-POCKET EXPENSES. ON A RELATED NOTE, FREEMAN ALLOWS FREEMAN EMPLOYEES TO PAY OFF HOSPITAL BILLS IN INSTALLMENTS AS LOW AS $50 EVERY TWO WEEKS. CONSIDERING THE FACT THAT FREEMAN EMPLOYS MORE THAN 4,000 PEOPLE AND MOST OF THEIR FAMILIES RECEIVE TREATMENT AT FREEMAN, THIS ACT ALONE AMOUNTS TO A SIZABLE COMMUNITY BENEFIT. FREEMAN URGENT CARE, WITH WALK-IN CLINICS IN JOPLIN AND WEBB CITY, OFFERS CONVENIENT, COST-EFFECTIVE CARE FOR MINOR MEDICAL ISSUES. WHILE FREEMAN URGENT CARE PROVIDES PATIENTS, INCLUDING THOSE WITHOUT PRIMARY CARE PROVIDERS, AN APPROPRIATE, LESS EXPENSIVE ALTERNATIVE TO AN EMERGENCY ROOM VISIT, MANY PATIENTS STILL CHOOSE TO USE THE EMERGENCY ROOM FOR PRIMARY MEDICAL CARE.
PROGRAM SERVICES (CONTINUED)	FORM 990, PART III, LINE 4	FREEMAN HELPS MANY ORGANIZATIONS THAT, IN TURN, HELP SOME OF THE MOST FRAGILE MEMBERS OF THE COMMUNITY. FOR INSTANCE, FOR $1 PER YEAR, FREEMAN LEASES THE LAND AND BUILDING AT 34TH STREET AND INDIANA AVENUE TO CHILDREN'S CENTER OF SOUTHWEST MISSOURI, A NOT-FOR-PROFIT AGENCY THAT PROTECTS AND ADVOCATES FOR CHILDREN WHO HAVE BEEN VICTIMS OF ABUSE. SIMILARLY, FREEMAN LEASES LAND TO RONALD MCDONALD HOUSE CHARITIES OF THE FOUR STATES FOR $1 PER YEAR, AND FREEMAN MAINTAINS THE GROUNDS AND PROVIDES HOUSEKEEPING SERVICES, WITH AN ANNUAL RETAIL VALUE OF $1,602. FREEMAN HEALTH SYSTEM CONTRIBUTES TO THE HEALTH OF THE COMMUNITY BY CREATING A WIDE RANGE OF CAREER OPPORTUNITIES. PROFESSIONALS IN MANY FIELDS AT FREEMAN EARN ABOVE-AVERAGE WAGES AND SALARIES, AND THE BENEFITS FREEMAN OFFERS HELP ATTRACT AND MAINTAIN AN AFFLUENT MIDDLE CLASS, WHOSE MEMBERS BUY HOMES, SPEND MONEY, AND BOOST THE AREA ECONOMY. IN 2012, FREEMAN HEALTH SYSTEM, INCLUDING OZARK CENTER, PROVIDED PAYROLL AND BENEFITS TOTALING $259,085,722. TO HELP ENSURE A STEADY SUPPLY OF PHYSICIANS, NURSES, AND OTHER CLINICIANS IN THE FUTURE, FREEMAN EDUCATES YOUNG PEOPLE ABOUT HEALTHCARE CAREERS. HIGH SCHOOL STUDENTS PARTICIPATE IN A SUMMER VOLUNTEER PROGRAM, WORKING WITH HEALTHCARE PROFESSIONALS IN REAL LIFE HOSPITAL SITUATIONS. THE HIGH SCHOOL VOLUNTEER PROGRAM ALSO PROVIDES SCHOLARSHIP MONEY FOR OUTSTANDING PARTICIPANTS. ADDITIONALLY, FREEMAN HEALTH ACADEMY, PROVIDED AT NO COST TO FAMILIES, REACHES OUT TO MIDDLE SCHOOL STUDENTS TO HELP THEM PREPARE FOR HEALTHCARE CAREERS. THE FIRST PROGRAM OF ITS KIND IN THE COMMUNITY, IT GIVES STUDENTS THE OPPORTUNITY TO LEARN ABOUT HEALTHCARE CAREERS FROM FREEMAN PHYSICIANS AND STAFF. IT ENCOURAGES STUDENTS TO GRADUATE FROM HIGH SCHOOL AND HELPS THEM CHOOSE HIGH SCHOOL COURSES, SUCH AS SCIENCE AND MATH, TO PREPARE THEM FOR FURTHER EDUCATION AND HEALTHCARE CAREERS.
PROGRAM SERVICES	FORM 990, PART III, LINE 4A	DIGITAL MAMMOGRAPHY OFFERS THE BEST TECHNOLOGY AVAILABLE FOR BREAST CANCER SCREENING. BREAST CANCER IS THE SECOND MOST COMMON FORM OF CANCER AMONG WOMEN IN THE U.S., PRECEDED ONLY BY SKIN CANCER. DEATHS LINKED TO BREAST CANCER HAVE DECLINED THROUGHOUT THE PAST TWO DECADES, THANKS LARGELY TO IMPROVED DIAGNOSTIC SCREENING. DIGITAL MAMMOGRAPHY USES COMPRESSION AND X-RAYS TO EXAMINE A BREAST, CAPTURING A DIGITAL IMAGE ON A COMPUTER. WHEN COMPARED TO FILM MAMMOGRAPHY, DIGITAL OFFERS GREATER CONTRAST, DETAIL, AND PENETRATION OF DENSE BREAST TISSUE. THROUGH THE USE OF DIGITAL MAMMOGRAPHY, A RADIOLOGIST CAN MANIPULATE AN IMAGE TO BETTER EXAMINE BREAST TISSUE.
PROGRAM SERVICES	FORM 990, PART III, LINE 4B	FREEMAN NEOSHO HOSPITAL PROVIDES INTENSIVE CARE, GENERAL CARE, AND SWING-BED INPATIENT SERVICES. FREEMAN NEOSHO INPATIENT SERVICES TOTALED 1,699 CASES, OF WHICH, 129, OR 8%, WERE MEDICAID CASES. ADDITIONALLY, 113 INPATIENT CASES, OR 7% OF THE TOTAL, FELL INTO THE SELF-PAY (NO INSURANCE) CATEGORY. FREEMAN NEOSHO TREATS CHILDREN FROM BIRTH TO AGE 18 AND WORKS WITH FAMILIES TO MAKE THEIR CHILDREN'S HOSPITALIZATION LESS TRAUMATIC BY ENCOURAGING PARENTAL INVOLVEMENT. 6 OF THE 13 INPATIENT PEDIATRIC CASES, OR 46%, WERE MEDICAID CASES. AN ADDITIONAL 8% OF THE PEDIATRIC CASES WERE SELF-PAY (NO INSURANCE).
PROGRAM SERVICES	FORM 990, PART III, LINE 4C	RECENT EXPANSION PROJECTS HAVE POSITIONED FREEMAN NEOSHO HOSPITAL TO BETTER SERVE ITS GROWING NUMBER OF EMERGENCY ROOM PATIENTS. ACCORDING TO DATA FROM MISSOURI HOSPITAL ASSOCIATION, FREEMAN NEOSHO HAS ONE OF THE STATE'S BUSIEST EMERGENCY ROOMS FOR CRITICAL ACCESS HOSPITALS, SERVING 16,053 PATIENTS IN FISCAL YEAR 2012. IN RESPONSE TO THE DEPARTMENT'S INCREASING ANNUAL PATIENT COUNT, FREEMAN NEOSHO HOSPITAL EXPANDED ITS EMERGENCY ROOM FROM SIX BEDS TO NINE IN FEBRUARY 2012, ALLOWING FOR A GREATER PATIENT LOAD AND PROVIDING MORE SERVICES TO THE COMMUNITY. OF THE ROOMS ADDED, ONE IS A FASTTRACK ROOM INTENDED FOR THE LESS ACUTELY ILL OR INJURED. THE REMAINING ADDITIONAL ROOMS ARE FOR CRITICALLY ILL OR INJURED PATIENTS. THE PROJECT WAS DESIGNED WITH THE GOAL OF GIVING PATIENTS FASTER TREATMENT. THE FREEMAN NEOSHO EMERGENCY DEPARTMENT TREATED 16,053 CASES, OF WHICH 5,145 WERE MEDICAID CASES REPRESENTING 32% OF THE TOTAL EMERGENCY ROOM VOLUME. IN ADDITION, THE EMERGENCY ROOM TREATED 3,662 CASES, OR 23%, THAT WERE SELF-PAY (NO INSURANCE).
COMMON PAYMASTER ARRANGEMENT & SALARIES	FORM 990, PART V, LINE 2A, PART VII, SECTION A, & PART IX, LINES 5-10	A RELATED ORGANIZATION, FREEMAN HEALTH SYSTEM (FHS), FILES ALL W-2'S ON BEHALF OF THE ORGANIZATION. THE AMOUNT OF W-2'S FILED FOR THE YEAR ON PART V, LINE 2A, IS THE AMOUNT OF W-2'S FILED ON BEHALF OF FREEMAN NEOSHO FOR THOSE THAT WORK PRIMARILY FOR FREEMAN NEOSHO. THE AMOUNT LISTED IN COLUMN D OF PART VII, SECTION A, AS PAID BY THE ORGANIZATION WAS PAID THROUGH W-2'S FILED BY FHS, BUT HAS BEEN SHOWN IN COLUMN D FOR THE INDIVIDUALS WHO WORK PRIMARILY FOR FREEMAN NEOSHO. ADDITIONALLY, THE APPLICABLE AMOUNTS WERE LISTED ON PART IX, LINE 5 AS OFFICER COMPENSATION FROM THE ORGANIZATION. OTHER SALARIES AND WAGES ON PART IX, LINES 7 THROUGH 10, ARE THE AMOUNT OF SALARIES AND BENEFITS ALLOCATED TO THE ORGANIZATION FOR THOSE EMPLOYEES WHO WORK PRIMARILY FOR FREEMAN NEOSHO.
MEMBERS/STOCKHOLDERS/OTHER PERSONS	FORM 990, PART VI, SECTION A, LINES 6, 7A, & 7B	FREEMAN HEALTH SYSTEM IS THE SOLE MEMBER OF THE ORGANIZATION. DIRECTORS AND OFFICERS OF THE ORGANIZATION ARE APPOINTED AND REMOVED BY THE ORGANIZATION'S SOLE MEMBER. THE BOARD OF FREEMAN NEOSHO HOSPITAL MUST OBTAIN APPROVAL FROM THE ORGANIZATION'S SOLE MEMBER, FREEMAN HEALTH SYSTEM, TO PERFORM CERTAIN ACTIONS. THESE ACTIONS INCLUDE: ALL GOVERNANCE DECISIONS OF INTEREST TO THE MEMBER AFFECTING THE OPERATION OF THE CORPORATION; APPOINTMENT REVIEW AND REMOVAL OF THE ADMINISTRATOR; DEVELOPMENT AND ADOPTION OF STRATEGIC PLANS, BUDGET AND FISCAL POLICY; APPROVAL OF ANY FINANCING OR REFINANCING PLANS; ANY INVESTMENT OF THE ORGANIZATION'S FUNDS; APPOINTMENT AND REMOVAL OF DIRECTORS OF SUBSIDIARIES; AMENDMENT OF THE ARTICLES OF INCORPORATION AND BYLAWS OR ANY POLICIES, RULES, AND REGULATIONS PERTAINING TO THE MEDICAL STAFF; THE SALE, LEASE, OR EXCHANGE OF ALL OR SUBSTANTIALLY ALL OF THE ORGANIZATION'S PROPERTY OR ASSETS; TAKING ANY ACTION THAT WOULD AFFECT THE EXISTENCE OF THE CORPORATION, INCLUDING MERGER, CONSOLIDATION, AFFILIATION, OR DISSOLUTION; ADOPTION OR AMENDMENT OF ANY CORPORATE COMPLIANCE PROGRAM; AND ANY OTHER MATTER THAT BY LAW REQUIRES THE APPROVAL OF MEMBERS OF A NONPROFIT CORPORATION.
REVIEW OF FORM 990	FORM 990, PART VI, SECTION B, LINE 11B	THE FORM 990 IS PREPARED BY AN INDEPENDENT ACCOUNTING FIRM BASED ON THE AUDITED FINANCIAL STATEMENTS AND INFORMATION PROVIDED BY THE ACCOUNTING DEPARTMENT OF THE ORGANIZATION. PRIOR TO FILING, THE DRAFT OF THE FORM 990 IS REVIEWED BY MEMBERS OF TOP MANAGEMENT. ONCE A FINAL DRAFT IS READY, A POWER POINT PRESENTATION IS MADE TO THE BOARD MEMBERS AT THE BOARD OF DIRECTORS MEETING TO EXPLAIN THE 990 AND ITS USES. THE BOARD REVIEWS THE DOCUMENT FOR KEY INFORMATION INCLUDED. PAPER COPIES ARE MADE AVAILABLE TO THE BOARD MEMBERS AT THEIR REQUEST.
CONFLICT OF INTEREST POLICY	FORM 990, PART VI, SECTION B, LINE 12C	THE CONFLICT OF INTEREST POLICY IS REVIEWED BY THE BOARD OF DIRECTORS EACH YEAR IN APRIL. THE BOARD MEMBERS ARE ASKED TO SIGN A NEW CONFLICT OF INTEREST POLICY AND LIST ANY POSSIBLE CONFLICTS. THIS INFORMATION IS REVIEWED AND MAINTAINED IN THE ADMINISTRATIVE OFFICES. IF A BOARD MEMBER ENCOUNTERS A TRANSACTION THAT WOULD CAUSE A POSSIBLE CONFLICT OF INTEREST, A FORM DETAILING THE TRANSACTION IS COMPLETED AND SUBMITTED TO THE BOARD FOR REVIEW AND APPROVAL. CORPORATE OFFICERS AND KEY EMPLOYEES ARE ALSO REQUIRED TO ANNUALLY DISCLOSE CONFLICTS OF INTEREST.
FREEMAN HEALTH SYSTEM COMPENSATION REVIEW	FORM 990, PART VI, SECTION B, LINES 15A & 15B	EXECUTIVE COMPENSATION PHILOSOPHY & STRATEGY I. KEY PRINCIPLES FREEMAN HEALTH SYSTEM ("FHS") DESIRES TO ENSURE THAT ITS EXECUTIVE COMPENSATION PROGRAM IS COMPETITIVE, FAIR, AND EQUITABLE; COMPLIANT WITH REGULATORY GUIDELINES; AND REPRESENTATIVE OF MARKET BEST PRACTICES. KEY PRINCIPLES THAT GUIDE FHS'S EXECUTIVE COMPENSATION DECISION-MAKING PROCESS INCLUDE: -EXECUTIVE COMPENSATION PROGRAMS WILL SUPPORT FHS'S MISSION, VALUES, STRATEGIC DIRECTION, AND TAX-EXEMPT STATUS. -FHS COMPETES IN A NATIONAL MARKET FOR ITS EXECUTIVES AND THUS WILL CONSIDER PAY PRACTICES THAT ARE REPRESENTATIVE OF THE INDUSTRY. -THE RELATIVE PAY LEVELS OF FHS EXECUTIVES WILL OVER TIME REFLECT BOTH INDIVIDUAL AND ORGANIZATIONAL PERFORMANCE. -FHS INTENDS TO ESTABLISH THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER IRS INTERMEDIATE SANCTIONS REGULATIONS. THUS, EXECUTIVE COMPENSATION PROGRAMS AND DECISIONS WILL BE APPROVED, IN ADVANCE OF THEIR IMPLEMENTATION BY THE EXECUTIVE COMPENSATION COMMITTEE (HEREAFTER THE "COMMITTEE") OF THE BOARD OF DIRECTORS: THE COMMITTEE IS COMPRISED OF MEMBERS OF THE BOARD OF DIRECTORS, WHO ARE INDEPENDENT OF FHS'S MANAGEMENT, HAVE NO PERSONAL INTEREST IN THE COMPENSATION ARRANGEMENTS, ARE NOT RELATED TO, OR UNDER THE CONTROL OF ANY INDIVIDUAL WHOSE COMPENSATION ARRANGEMENT IS BEING REVIEWED AND HAVE NO MATERIAL BUSINESS RELATIONSHIP WITH FHS. THE COMMITTEE WILL RELY UPON APPROPRIATE, INDEPENDENT COMPARABILITY DATA TO SUPPORT ITS DECISION MAKING PROCESS. THE COMMITTEE WILL ADEQUATELY DOCUMENT ITS DELIBERATIONS, DECISIONS, AND ACTIONS ON A TIMELY BASIS. II. PRIMARY PROGRAM COMPONENTS FHS'S EXECUTIVE TOTAL COMPENSATION PROGRAM CONSISTS OF THE FOLLOWING COMPONENTS: -BASE SALARY -ANNUAL AT RISK COMPENSATION -STANDARD ALL EMPLOYEE BENEFITS -SUPPLEMENTAL BENEFITS AND PERQUISITES -SEVERANCE ANNUALLY, THE COMMITTEE WILL DIRECT THE REVIEW OF THE COMPONENTS OF THE EXECUTIVE COMPENSATION PROGRAM AND APPROVE PROGRAM MODIFICATIONS AS APPROPRIATE. THE COMMITTEE MAY ALSO AUTHORIZE UNIQUE PROGRAM COMPONENTS WHICH SUPPORT THE ACHIEVEMENTS OF FHS'S MISSION. III. MARKET COMPARATORS FHS WILL CONSIDER A NATIONAL PEER GROUP OF HEALTHCARE ORGANIZATIONS COMPARABLE TO FHS IN SIZE (I.E., NET REVENUES) AND COMPLEXITY TO DETERMINE THE MARKET VALUES FOR EACH OF ITS EXECUTIVE POSITIONS. THIS PEER GROUP WILL PRIMARILY BE COMPRISED OF NOT-FOR-PROFIT HEALTHCARE ORGANIZATIONS (BUT FOR-PROFIT ORGANIZATIONS MAY BE CONSIDERED SELECTIVELY) FOR FUNCTIONALLY COMPARABLE POSITIONS AS REPORTED IN SURVEYS CONDUCTED BY INDEPENDENT FIRMS. -CASH COMPENSATION THE FOLLOWING ORGANIZATIONS/MARKETS ARE THE PRIMARY COMPARATORS FOR COMPENSATION PURPOSES: SYSTEM LEVEL EXECUTIVES: HEALTH SYSTEMS OF COMPARABLE SIZE TO FHS, BASED ON NET REVENUE. THESE WILL BE BASED ON NATIONAL HEALTHCARE LABOR MARKETS. HOSPITAL LEVEL EXECUTIVES: HOSPITALS OF COMPARABLE SIZE TO THE FHS ENTITY, BASED ON NET REVENUE. THESE WILL BE BASED ON NATIONAL HEALTHCARE LABOR MARKETS. OTHER EXECUTIVES: ORGANIZATIONS OF COMPARABLE SIZE IN RELEVANT MARKET SEGMENTS SUCH AS MEDICAL GROUP PRACTICES, HOME HEALTH, AND THE LIKE. THESE WILL BE BASED ON NATIONAL HEALTHCARE LABOR MARKET. -EXECUTIVE BENEFITS FHS WILL DEVELOP AND ADMINISTER EXECUTIVE BENEFIT (I.E., STANDARD BENEFITS, SUPPLEMENTAL EXECUTIVE BENEFITS, AND PERQUISITES) PLANS THAT ARE BASED ON NATIONAL HEALTHCARE INDUSTRY MARKET NORMS. IV. MARKET POSITION TARGETS FHS HAS ESTABLISHED A TARGET MARKET POSITION FOR EACH OF THE COMPONENTS OF ITS EXECUTIVE TOTAL COMPENSATION PROGRAM. -BASE SALARIES: FHS WILL MANAGE ITS EXECUTIVES' BASE SALARIES AROUND THE 50TH PERCENTILE OF BASE SALARIES PAID IN THE MARKET. SALARIES WILL VARY FROM THE 50TH PERCENTILE BASED AN EXECUTIVE'S EXPERIENCE AND PERFORMANCE. FOR EXAMPLE: EXECUTIVES WHO ARE NEW TO THE ORGANIZATION AND/OR HAVE LIMITED OR NO PRIOR EXECUTIVE-LEVEL EXPERIENCE SHOULD HAVE SALARIES THAT ARE 80 TO 90 PERCENT OF THE 50TH PERCENTILE. EXPERIENCED EXECUTIVES (WITH APPROXIMATELY 5 TO 7 YEARS OF EXECUTIVE-LEVEL EXPERIENCE) WHO CONSISTENTLY MEET FHS'S PERFORMANCE EXPECTATIONS SHOULD HAVE SALARIES THAT ARE 90 TO 110 PERCENT OF THE 50TH PERCENTILE. *EXPERIENCED EXECUTIVES (WITH MORE THAN 7 YEARS OF EXECUTIVE-LEVEL EXPERIENCE) WHO CONSISTENTLY EXCEED FHS'S PERFORMANCE EXPECTATIONS SHOULD HAVE SALARIES THAT ARE 110 TO 120 PERCENT OF THE 50TH PERCENTILE. -TOTAL CASH COMPENSATION: THE GOAL OF THIS COMPONENT IS TO PAY UP TO THE 75TH PERCENTILE OF MARKET TOTAL CASH COMPENSATION WHEN EXCEPTIONAL PERFORMANCE IS ACHIEVED. TOTAL CASH COMPENSATION INCLUDES BASE SALARIES AND LUMP-SUM AWARDS FROM FHS'S EXECUTIVE AT RISK COMPENSATION PLAN(S). ACTUAL TOTAL CASH COMPENSATION WILL REFLECT EXECUTIVES' CURRENT SALARIES, INDIVIDUAL PERFORMANCE AND CONTRIBUTIONS, AND THE ORGANIZATION'S PERFORMANCE. -EXECUTIVE BENEFITS: FHS TARGETS EXECUTIVE BENEFITS (STANDARD BENEFITS PLUS SUPPLEMENTAL EXECUTIVE BENEFITS AND PERQUISITES) AT THE 50TH PERCENTILE OF EXECUTIVE BENEFITS PROVIDED IN THE HEALTHCARE MARKET. -SEVERANCE: FHS TARGETS EXECUTIVE SEVERANCE AT THE 50TH PERCENTILE OF CURRENT HEALTHCARE MARKET PRACTICES. OTHER BUSINESS JUDGMENT FACTORS SUCH AS COMPETITIVE MARKET FORCES, EACH EXECUTIVE'S JOB PERFORMANCE, EACH EXECUTIVE'S UNIQUE SKILLS, RESPONSIBILITIES AND EFFORTS, AND/OR EACH EXECUTIVE'S MARKETPLACE STANDING, ARE ALSO CONSIDERED BY THE COMMITTEE DURING ITS DECISION MAKING PROCESS.
FREEMAN HEALTH SYSTEM COMPENSATION REVIEW (CONTINUED)	FORM 990, PART VI, SECTION B, LINES 15A & 15B	EXECUTIVE COMPENSATION COMMITTEE CHARTER THIS EXECUTIVE COMPENSATION COMMITTEE CHARTER WAS ADOPTED BY THE BOARD OF DIRECTORS (THE "BOARD") OF FREEMAN HEALTH SYSTEM (HEREAFTER "FHS") ON APRIL 25, 2008. THIS CHARTER APPLIES TO FHS AND ALL OF ITS BUSINESS ENTITIES, INCLUDING FREEMAN NEOSHO HOSPITAL, OZARK CENTER AND THE FREEMAN FOUNDATION (HEREAFTER THE "SYSTEM"). THIS CHARTER IS A COMPONENT OF THE FLEXIBLE FRAMEWORK WITHIN WHICH THE BOARD, ASSISTED BY ITS COMMITTEES, DIRECTS THE AFFAIRS OF FHS. WHILE THE CHARTER SHOULD BE INTERPRETED IN THE CONTEXT OF ALL APPLICABLE LAWS AND REGULATIONS, AS WELL AS IN THE CONTEXT OF FHS'S ARTICLES OF INCORPORATION AND BYLAWS, IT IS NOT INTENDED TO ESTABLISH BY ITS OWN FORCE ANY LEGALLY BINDING OBLIGATIONS. I. PURPOSE THE EXECUTIVE COMPENSATION COMMITTEE (HEREAFTER THE "COMMITTEE") IS AUTHORIZED TO ACT ON THE BOARD'S BEHALF IN (I) DETERMINING APPROPRIATE COMPENSATION FOR SYSTEM EXECUTIVES AND OTHER DISQUALIFIED PERSONS AS DEFINED IN THE IRS INTERMEDIATE SANCTIONS REGULATIONS; (II) EVALUATING SYSTEM EXECUTIVES' AND OTHER DISQUALIFIED PERSONS' CASH COMPENSATION PLANS, POLICIES, AND PROGRAMS; (III) REVIEWING BENEFIT PLANS FOR SYSTEM EXECUTIVES AND OTHER DISQUALIFIED PERSONS; AND (IV) VERIFYING THAT COMPENSATION INFORMATION IS APPROPRIATELY AND FULLY DISCLOSED. -A DISQUALIFIED PERSON: IS ANY PERSON WHO IS OR WAS IN A POSITION TO EXERCISE SUBSTANTIAL INFLUENCE OVER THE AFFAIRS OF THE APPLICABLE TAX-EXEMPT ORGANIZATION. IT IS NOT NECESSARY THAT THE PERSON ACTUALLY EXERCISE SUBSTANTIAL INFLUENCE, ONLY THAT THE PERSON BE IN A POSITION TO DO SO. -FOR PURPOSES OF THIS CHARTER, "EXECUTIVES" ARE DEFINED AS SYSTEM EXECUTIVES AND OTHER DISQUALIFIED PERSONS VALIDATED BY THE COMMITTEE. IN DISCHARGING ITS ROLE, THE COMMITTEE IS EMPOWERED TO INVESTIGATE ANY MATTER BROUGHT TO ITS ATTENTION WITH ACCESS TO ALL BOOKS, RECORDS, FACILITIES, AND PERSONNEL OF THE SYSTEM. IT HAS THE AUTHORITY TO RETAIN OUTSIDE ADVISORS (E.G., LEGAL COUNSEL, COMPENSATION CONSULTANTS, OR OTHER EXPERTS) AND WILL RECEIVE ADEQUATE FUNDING FROM THE SYSTEM TO ENGAGE SUCH ADVISORS. IT SHALL HAVE THE SOLE AUTHORITY TO RETAIN, COMPENSATE, TERMINATE, AND OVERSEE ITS ADVISORS, WHO SHALL BE ACCOUNTABLE ULTIMATELY TO THE COMMITTEE. TO SUPPORT THE COMMITTEE, A TIMETABLE AND RESOURCE BOOK WILL BE DEVELOPED CONTAINING THE NECESSARY DATA, INFORMATION, AND DOCUMENTS THE COMMITTEE WILL NEED TO CARRY OUT ITS DUTIES. THE RESOURCE BOOK WILL BE DISTRIBUTED TO THE COMMITTEE IN ADVANCE OF ITS MEETINGS AND FHS WILL MAINTAIN THESE BOOKS AT ITS CORPORATE OFFICE. THE COMMITTEE ALSO WILL RECEIVE TRAINING IN COMPENSATION PLAN DESIGN AND ADMINISTRATION, INCLUDING LEGAL AND REGULATORY ISSUES (AS NEEDED). II. COMMITTEE MEMBERSHIP THE COMMITTEE IS A STANDING COMMITTEE OF THE BOARD. IN ACCORDANCE WITH THE CORPORATE BYLAWS, IT SHALL CONSIST OF AT LEAST THREE, BUT NOT MORE THAN FIVE, MEMBERS OF THE BOARD. EACH COMMITTEE MEMBER HAS BEEN DETERMINED BY THE BOARD TO BE "INDEPENDENT" IN ACCORDANCE WITH IRS INTERMEDIATE SANCTIONS REGULATIONS. AT THE START OF THE YEAR, EACH MEMBER WILL REVIEW THE ORGANIZATION'S CONFLICT OF INTEREST POLICY TO ENSURE HE OR SHE HAS NO CONFLICT OF INTEREST AND IS "INDEPENDENT". IF A REAL, POTENTIAL, OR PERCEIVED CONFLICT OF INTEREST IS IDENTIFIED, THE COMMITTEE MEMBER WILL REVIEW THE ISSUE WITH THE COMMITTEE CHAIR AND LEGAL COUNSEL TO DETERMINE THE APPROPRIATE ACTION. IN ADDITION, NO DIRECTOR MAY SERVE ON THE COMMITTEE UNLESS HE OR SHE IS A "NON-EMPLOYEE" MEMBER OF A SYSTEM BOARD. THE FHS BOARD WILL APPOINT A COMMITTEE CHAIR TO CONVENE ALL SESSIONS, SET AGENDAS FOR MEETINGS, AND DETERMINE THE INFORMATION NEEDS OF THE COMMITTEE. BEFORE DEBATING AND VOTING ON ANY COMPENSATION ARRANGEMENT, EACH MEMBER SHALL DETERMINE WHETHER HE OR SHE HAS A CONFLICT OF INTEREST REGARDING THE COMPENSATION ARRANGEMENT. ANY MEMBER WITH A CONFLICT OF INTEREST REGARDING A PARTICULAR COMPENSATION ARRANGEMENT OR TRANSACTION SHALL RECUSE HIMSELF OR HERSELF FROM THE DISCUSSION AND SHALL NOT VOTE ON THE PENDING COMPENSATION ARRANGEMENT OR TRANSACTION. III. COMMITTEE SUPPORT STAFF THE COMMITTEE SHALL BE ASSISTED IN FULFILLING ITS DUTIES AND RESPONSIBILITIES BY A FHS SUPPORT STAFF COMPRISED OF THE FOLLOWING POSITIONS: -THE PRESIDENT AND CHIEF EXECUTIVE OFFICER (CEO) -CHIEF FINANCIAL OFFICER -CONTROLLER -DIRECTOR OF HUMAN RESOURCES FROM TIME TO TIME, THE COMMITTEE MAY REQUEST OTHER SYSTEM POSITIONS TO SERVE AS SUPPORT STAFF MEMBERS. WHEN THE COMMITTEE VOTES ON COMPENSATION MATTERS RELATED TO ANY OF THE SUPPORT STAFF, THE SUPPORT STAFF SHOULD BE EXCUSED FROM THE MEETING. IV. COMMITTEE MEETINGS THE COMMITTEE SHALL MEET ON A REGULARLY SCHEDULED BASIS TWO TIMES PER YEAR OR MORE FREQUENTLY AS CIRCUMSTANCES DICTATE. THE COMMITTEE SHALL MEET AT LEAST (ANNUALLY) WITH FHS'S PRESIDENT AND CEO AND OTHER CORPORATE OFFICERS THE BOARD AND COMMITTEE DEEM APPROPRIATE, TO DISCUSS AND REVIEW THE PERFORMANCE CRITERIA AND COMPENSATION LEVELS OF SYSTEM EXECUTIVES AND OTHER DISQUALIFIED PERSONS. MEETINGS OF THE COMMITTEE MAY BE HELD TELEPHONICALLY. A MAJORITY OF THE MEMBERS SHALL CONSTITUTE A QUORUM SUFFICIENT FOR THE TAKING OF ANY ACTION BY THE COMMITTEE. V. COMMITTEE RESPONSIBILITIES THE FOLLOWING RESPONSIBILITIES ARE SET FORTH AS A GUIDE WITH THE UNDERSTANDING THAT THE COMMITTEE MAY DIVERGE FROM THIS LIST AS APPROPRIATE GIVEN THE CIRCUMSTANCES. THE COMMITTEE SHALL REPORT ANY DIVERGENCE FROM THIS LIST TO THE FULL BOARD. THE COMMITTEE IS AUTHORIZED TO CARRY OUT THESE AND SUCH OTHER RESPONSIBILITIES ASSIGNED BY THE BOARD FROM TIME TO TIME, AND TAKE ANY ACTIONS REASONABLY RELATED TO THE MANDATE OF THIS CHARTER. -ESTABLISH, REGULARLY REVIEW, AND APPROPRIATELY MODIFY THE FHS EXECUTIVE COMPENSATION PHILOSOPHY AND STRATEGY. THE EXECUTIVE COMPENSATION PHILOSOPHY AND STRATEGY WILL BE REVIEWED AND APPROVED BY THE FULL BOARD. -ADMINISTER EXECUTIVE COMPENSATION PROGRAMS IN A MANNER: CONSISTENT WITH THE EXECUTIVE COMPENSATION PHILOSOPHY AND STRATEGY, THAT QUALIFIES FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE IRS INTERMEDIATE SANCTIONS REGULATIONS. -VALIDATE THE GOALS AND OBJECTIVES RELEVANT TO THE COMPENSATION OF THE PRESIDENT AND CEO, SYSTEM EXECUTIVES, AND OTHER DISQUALIFIED PERSONS, INCLUDING ANNUAL PERFORMANCE OBJECTIVES. -EVALUATE THE PERFORMANCE OF THE PRESIDENT AND CEO, AND REVIEW THE EVALUATIONS PREPARED BY THE PRESIDENT/CEO AND OTHER SYSTEM EVALUATION COMMITTEES OF OTHER EXECUTIVES/DISQUALIFIED PERSONS BASED ON APPROVED GOALS AND OBJECTIVES. -ESTABLISH THE COMPENSATION LEVEL FOR THE PRESIDENT/CEO AND REVIEW AND APPROVE COMPENSATION RECOMMENDATIONS PREPARED BY THE PRESIDENT/CEO FOR ALL EXECUTIVES AND DO SAME FOR EXECUTIVES AND DISQUALIFIED PERSONS FROM OTHER SYSTEM ENTITIES. -REVIEW AND APPROVE CHANGES, IN ADVANCE OF THEIR IMPLEMENTATION, INCLUDING: EXECUTIVE BASE SALARIES AND RANGE AT RISK COMPENSATION PLANS EXECUTIVE WELFARE AND RETIREMENT BENEFIT PLANS OTHER EXECUTIVE FRINGE BENEFITS *EMPLOYMENT AGREEMENTS AND/OR SEVERANCE PLANS -MAINTAIN MINUTES OR OTHER RECORDS OF COMMITTEE MEETINGS AND ACTIVITIES, AS REQUIRED BY IRS INTERMEDIATE SANCTIONS REGULATIONS. -ENGAGE INDEPENDENT, OUTSIDE ADVISORS TO PROVIDE OBJECTIVE AND IMPARTIAL COMPENSATION DATA AND EXPRESS AN OPINION ON THE REASONABLENESS OF TOTAL COMPENSATION. -REVIEW PERIODICALLY THE COMPONENTS OF FHS'S EXECUTIVE TOTAL COMPENSATION PROGRAM TO DETERMINE WHETHER THEY ARE PROPERLY COORDINATED AND ACHIEVE THEIR INTENDED PURPOSE(S), AND APPROVE MODIFICATIONS, INCLUDING NEW PROGRAMS. -REPORT REGULARLY TO THE FULL BOARD AND TO OTHER SYSTEM BOARDS ON COMMITTEE FINDINGS AND APPROVED ACTIONS AND ANY OTHER MATTERS THE COMMITTEE DEEMS APPROPRIATE OR THE BOARD REQUESTS. -CONDUCT AN ANNUAL SELF-EVALUATION OF THE COMMITTEE'S PERFORMANCE, INCLUDING ITS EFFECTIVENESS AND COMPLIANCE WITH THIS CHARTER. -REVIEW AND REASSESS THE ADEQUACY OF THIS CHARTER ANNUALLY, AND AMEND IT AS THE COMMITTEE DEEMS APPROPRIATE. -COMMUNICATE WITH EXTERNAL PARTIES, AS APPROPRIATE, REGARDING COMMITTEE PROCEDURES AND THE COMPENSATION OF THE ORGANIZATION'S EXECUTIVES AND OTHER DISQUALIFIED PERSONS. OTHER DISQUALIFIED PERSONS. A COMPENSATION REVIEW LAST OCCURRED IN JUNE OF 2010.
DOCUMENT DISCLOSURE	FORM 990, PART VI, SECTION C, LINE 19	THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE NOT MADE AVAILABLE TO THE PUBLIC.
RELATED HOURS	FORM 990, PART VII, SECTION A, COLUMN B	BOARD MEMBERS LARRY G. BARNES AND CRAIG L. PENDERGRASS WORK APPROXIMATELY 60 HOURS PER WEEK FOR FREEMAN HEALTH SYSTEM, A RELATED ENTITY. GARY D. DUNCAN, BOARD MEMBER AND FREEMAN HEALTH SYSTEM CEO THROUGH DECEMBER 2011, WORKED APPROXIMATELY 60 HOURS PER WEEK BETWEEN FREEMAN NEOSHO AND FREEMAN HEALTH SYSTEM. PAULA BAKER, BOARD MEMBER AND FREEMAN HEALTH SYSTEM CEO BEGINNING JANUARY 2012, WORKS APPROXIMATELY 60 HOURS PER WEEK BETWEEN FREEMAN NEOSHO AND FREEMAN HEALTH SYSTEM. STEVE GRADDY, CFO, WORKS APPROXIMATELY 60 HOURS PER WEEK BETWEEN FREEMAN NEOSHO HOSPITAL AND FREEMAN HEALTH SYSTEM.
OTHER CHANGES IN NET ASSETS	FORM 990, PART XI, LINE 5	CHANGE IN INTERESTS IN AFFILIATES $(238,385) TRANSFER FROM AFFILIATES 254,728 NET UNREALIZED GAIN ON INVESTMENTS 547,417 ---------- TOTAL $ 563,760

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

FREEMAN NEOSHO HOSPITAL

Employer identification number

43-1240629

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) FREEMAN HEALTH SYSTEM 1102 W 32ND STREET JOPLIN,MO64804 43-1704371	HOSPITAL	MO	501(C)(3)	3	NA		No
(2) OZARK CENTER 1105 E 32ND ST JOPLIN,MO64803 43-0821959	BEHAVIOR HLTH	MO	501(C)(3)	9	FREEMAN HLTH		No
(3) MAGNOLIA HEIGHTS HOUSING CORPORATION 3006 MCCLELLAND BLVD JOPLIN,MO64804 47-0950622	HUD HOUSING	MO	501(C)(3)	11 A I	OZARK CENTER		No
(4) CEDAR HILL HOUSING CORPORATION 3006 MCCLELLAND BLVD JOPLIN,MO64804 47-0943557	HUD HOUSING	MO	501(C)(3)	11 A I	OZARK CENTER		No
(5) POPLAR PLACE HOUSING CORPORATION 3006 MCCLELLAND BLVD JOPLIN,MO64804 90-0462595	HUD HOUSING	MO	501(C)(3)	11 A I	OZARK CENTER		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	(f) Share of total income	(g) Share of end-of-year assets	(h) Disproprtionate allocations?		(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	(j) General or managing partner?
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(f) Share of total income	(g) Share of end-of-year assets	Yes	No	(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No
(1) FREEMAN SURGICAL CE 11221 ROE AVE STE 320 LEAWOOD LEAWOOD,KS66211 26-2652980	AMBULATORY SU	KS	NA				No			No

Part IV

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

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(e) Type of entity (C corp, S corp, or trust)	(f) Share of total income	(g) Share of end-of-year assets	(h) Percentage ownership

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

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

Yes

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

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

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

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

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

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

Yes

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

(a) Name of other organization	(b) Transaction type(a-r)	(c) Amount involved	(d) Method of determining amount involved
(1)
(2)
(3)
(4)
(5)
(6)

Schedule R (Form 990) 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: FREEMAN NEOSHO PROVIDES WORLD-CLASS, COMPASSIONATE HEALTHCARE SERVICES WHERE IT MATTERS MOST, CLOSE TO HOME. SEE SCHEDULE O FOR ADDITIONAL INFORMATION.
2	Check this box
3	Number of voting members of the governing body (Part VI, line 1a).....	3	10
4	Number of independent voting members of the governing body (Part VI, line 1b) ....	4	6
5	Total number of individuals employed in calendar year 2011 (Part V, line 2a) ...	5	237
6	Total number of volunteers (estimate if necessary) ....	6	31
7a	Total unrelated business revenue from Part VIII, column (C), line 12 ..	7a	0
b	Net unrelated business taxable income from Form 990-T, line 34 ..	7b	0

		Prior Year	Current Year
8	Contributions and grants (Part VIII, line 1h) .........	75,574	82,940
9	Program service revenue (Part VIII, line 2g) .........	28,719,177	31,093,356
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	333,874	402,600
11	Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)	25,223	101,461
12	Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)...................	29,153,848	31,680,357
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...	36,568	12,488
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)	11,560,536	11,351,726
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)....	17,397,942	17,171,494
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	28,995,046	28,535,708
19	Revenue less expenses. Subtract line 18 from line 12.......	158,802	3,144,649
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16).............	23,092,063	27,090,167
21	Total liabilities (Part X, line 26).............	4,027,439	4,317,134
22	Net assets or fund balances. Subtract line 21 from line 20.....	19,064,624	22,773,033

Sign Here

	Signature of officer	Date

	Type or print name and title.


4a	(Code: ) (Expenses $ 14,166,883 including grants of $ ) (Revenue $ 15,853,805 )
	FREEMAN NEOSHO OFFERS OUTPATIENT SERVICES INCLUDING EMERGENCY MEDICINE, RADIOLOGY (INCLUDING MAMMOGRAPHY), OCCUPATIONAL MEDICINE, OUTPATIENT SURGERY, REHABILITATION THERAPIES, LABORATORY SERVICES, AND MORE. FREEMAN EXPANDED SERVICES TO THE NEOSHO COMMUNITY BY ESTABLISHING GARY DUNCAN WOMEN'S PAVILION IN NOVEMBER 2011. THIS EXPANSION EQUIPPED FREEMAN NEOSHO WITH STATE-OF-THE-ART DIGITAL MAMMOGRAPHY. SEE SCHEDULE O FOR ADDITIONAL DETAILS.

4b	(Code: ) (Expenses $ 5,748,443 including grants of $ ) (Revenue $ 8,780,214 )
	FREEMAN NEOSHO HOSPITAL IS A 67 LICENSED BED, 25 OPERATIONAL BED, CRITICAL-ACCESS FACILITY THAT SERVES THE NEEDS OF LARGELY RURAL NEWTON AND MCDONALD COUNTIES IN SOUTHWEST MISSOURI. FREEMAN NEOSHO HOSPITAL PROVIDES THE COMMUNITY WITH EMERGENCY SERVICES, PEDIATRIC SERVICES, AND SURGICAL SERVICES. FREEMAN NEOSHO PLAYED A BIG ROLE IN TORNADO RECOVERY, HELPING CARE FOR THE INFLUX OF PATIENTS IMMEDIATELY FOLLOWING THE STORM AND MEETING THE LONG-TERM MEDICAL NEEDS OF A COMMUNITY WHOSE HOSPITAL RESOURCES HAD BEEN DRAMATICALLY REDUCED. SEE SCHEDULE O FOR ADDITIONAL DETAILS.

4c	(Code: ) (Expenses $ 3,581,432 including grants of $ ) (Revenue $ 6,459,337 )
	WITH AN EMERGENCY ROOM STAFFED 24 HOURS A DAY BY EXPERIENCED EMERGENCY ROOM PHYSICIANS, FREEMAN NEOSHO EMERGENCY SERVICES IS THERE TO HELP PEOPLE IN NEWTON AND MCDONALD COUNTIES IN SOUTHWEST MISSOURI WHEN MEDICAL EMERGENCIES ARISE. EAGLEMED AIR AMBULANCE PROVIDES EMERGENCY TRANSPORT SERVICES TO AND FROM FREEMAN NEOSHO. SEE SCHEDULE O FOR ADDITIONAL DETAILS.

4d	Other program services (Describe in Schedule O.)
	(Expenses $ including grants of $ ) (Revenue $ )
4e	Total program service expenses$ 23,496,758

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)............	1,471,706	2,018,247	305,056

(A) Name and business address	(B) Description of services	(C) Compensation





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 0

				(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
e	Government grants (contributions)1e		80,940

f	All other contributions, gifts, grants, and similar amounts not included above1f		2,000
g	Noncash contributions included in lines 1a-1f:$
h	Total. Add lines 1a-1f.......			82,940
			Business Code
2a	PATIENT SERVICES		900,099	30,974,968	30,974,968
b	CAFETERIA & VENDING		722,210	111,882	111,882
c	OTHER		900,099	6,506	6,506
d
e
f	All other program service revenue .
g	Total. Add lines 2a–2f........			31,093,356
3	Investment income (including dividends, interest
	and other similar amounts).....			313,392			313,392
4	Income from investment of tax-exempt bond proceeds..			0
5	Royalties............			0
		(i) Real	(ii) Personal
6a	Gross rents	25,223
b	Less: rental expenses
c	Rental income or (loss)	25,223
d	Net rental income or (loss).......			25,223			25,223
		(i) Securities	(ii) Other
7a	Gross amount from sales of assets other than inventory	159,354
b	Less: cost or other basis and sales expenses	62,310	7,836
c	Gain or (loss)	97,044	-7,836
d	Net gain or (loss)..........			89,208			89,208
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	INSURANCE SETTLEMENT		900,099	76,238			76,238
b
c
d	All other revenue ....
e	Total. Add lines 11a–11d ......			76,238
12	Total revenue. See Instructions....			31,680,357	31,093,356		504,061


				(A) Beginning of year		(B) End of year
1	Cashnon-interest-bearing ..........			727,613	1	500,114
2	Savings and temporary cash investments .......			268,225	2	2,508,258
3	Pledges and grants receivable, net .........			0	3	0
4	Accounts receivable, net .........			3,554,730	4	3,796,835
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 .............			0	7	0
8	Inventories for sale or use ..............			525,890	8	531,721
9	Prepaid expenses and deferred charges ............			238,170	9	215,866
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	15,315,245
b	Less: accumulated depreciation. .....	10b	11,345,868	4,656,371	10c	3,969,377
11	Investments—publicly traded securities ..........			10,829,275	11	13,528,262
12	Investments—other securities. See Part IV, line 11 ......			0	12	0
13	Investments—program-related. See Part IV, line 11 ..			0	13	0
14	Intangible assets .........			664,703	14	664,703
15	Other assets. See Part IV, line 11 ...........			1,627,086	15	1,375,031
16	Total assets. Add lines 1 through 15 (must equal line 34)...			23,092,063	16	27,090,167
17	Accounts payable and accrued expenses .			202,096	17	514,134
18	Grants payable ..........			0	18	0
19	Deferred revenue ..........			0	19	0
20	Tax-exempt bond liabilities ..........			1,305,000	20	1,230,000
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 ..			0	23	0
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.....			2,520,343	25	2,573,000
26	Total liabilities. Add lines 17 through 25.....			4,027,439	26	4,317,134
	Organizations that follow SFAS 117, check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets .....			18,087,405	27	22,035,453
28	Temporarily restricted net assets .....			977,219	28	737,580
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 .....			19,064,624	33	22,773,033
34	Total liabilities and net assets/fund balances .....			23,092,063	34	27,090,167