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) Richard Fleming Honorary Trustee	1.00	X				0	0
(2) William F Hecht Trustee	1.00	X				0	0
(3) Matthew M McCambridge MD Trustee	1.00	X				45,000	0
(4) Stephen K Klasko MD Trustee	1.00	X				0	0
(5) Ronald W Swinfard MD Trustee/CEO	60.00	X	X			1,383,034	30,230
(6) Kathryn P Taylor Chair	1.00	X				0	0
(7) Martin K Till Vice Chair	1.00	X				0	0
(8) Daniel H Weiss Trustee	1.00	X				0	0
(9) Robert J Motley MD Trustee	1.00	X				15,000	0
(10) John D Stanley Trustee	1.00	X				0	0
(11) Keith Weinhold Sr. Vice-President-Operations	60.00			X		299,353	30,230
(12) James Geiger Sr. Vice-President-Operations	60.00			X		299,759	30,230
(13) Debby Patrick Vice-President Human Resources	60.00			X		297,726	30,230
(14) Scott Lipkin Chief, Nori	60.00			X		248,266	30,230
(15) Edward Dougherty Senior VP, Business and Network Dev.	60.00			X		243,922	30,123
(16) Elliot J Sussman MD Former Trustee/CEO	0.00				X	2,112,251	0
(17) Joseph G Felkner Former Treasurer	0.00				X	931,418	0

(A) Name and business address	(B) Description of services	(C) Compensation
Pulmonary Associates PC 1210 S Cedar Crest Blvd Suite 23 Allentown,PA18103	Physician Services	3,481,084
VSAS Orthopaedics 1250 S Cedar Crest Blvd Suite 11 Allentown,PA18103	Physician Services	2,305,350
Lehigh Area Medical Associates 1255 S Cedar Crest Blvd Suite 22 Allentown,PA18103	Physician Services	2,033,851
Post & Schell PC Four Penn Center 1600 John F Kenn Philadelphia,PA19103	Attorneys	1,533,555
Norris McLaughlin & Marcus PA 1611 Pond Road Suite 300 Allentown,PA181042221	Attorneys	958,154
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 48

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
2	Grants and other assistance to individuals in the United States. See Part IV, line 22	386,971	386,971
3	Grants and other assistance to governments, organizations, and individuals outside the United States. See Part IV, lines 15 and 16
4	Benefits paid to or for members
5	Compensation of current officers, directors, trustees, and key employees ....	10,047,999	10,047,999
6	Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....
7	Other salaries and wages	314,257,021	298,344,149	14,662,763	1,250,109
8	Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) ....	22,932,752	21,871,245	977,964	83,543
9	Other employee benefits .......	34,211,715	32,887,536	1,227,764	96,415
10	Payroll taxes ...........	23,183,500	21,972,460	1,115,339	95,701
11	Fees for services (non-employees):
a	Management ......
b	Legal .........	2,429,072	2,429,072
c	Accounting ...........	344,576	344,576
d	Lobbying ...........
e	Professional fundraising. See Part IV, line 17..
f	Investment management fees ......
g	Other ..........	106,066,840	96,409,884	9,598,713	58,243
12	Advertising and promotion ....	5,791,092	4,304,438	1,486,654
13	Office expenses .......	2,730,225	2,588,262	128,983	12,980
14	Information technology ......	12,496,064	12,423,128	68,354	4,582
15	Royalties ..
16	Occupancy ...........	27,092,493	26,570,284	478,909	43,300
17	Travel ............	1,376,120	1,290,885	76,442	8,793
18	Payments of travel or entertainment expenses for any federal, state, or local public officials ......
19	Conferences, conventions, and meetings ....	1,750,117	1,639,403	75,735	34,979
20	Interest ...........	16,087,125	16,087,125
21	Payments to affiliates .......
22	Depreciation, depletion, and amortization .....	64,030,015	63,912,317	115,911	1,787
23	Insurance ..............	6,225,463	6,225,463
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	MEDICAL SUPPLIES	176,799,561	176,798,045	1,516
b	PURCHASED SERVICES	107,378,707	105,120,141	2,099,311	159,255
c	BAD DEBTS EXPENSE	66,764,137	66,764,137
d	OTHER SUPPLIES	4,043,508	4,022,589	30,709	-9,790
e
f	All other expenses	32,725,321	30,063,244	2,525,270	136,807
25	Total functional expenses. Add lines 1 through 24f	1,039,150,394	1,002,503,352	34,670,337	1,976,704
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 ..........	10,853	1	13,515
2	Savings and temporary cash investments .......	3,528,591	2	2,920,440
3	Pledges and grants receivable, net .........	7,152,180	3	11,268,693
4	Accounts receivable, net .........	124,382,143	4	201,194,989
5	Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
	Schedule L ..........	0	5	90,000
6	Receivables from other disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B). Complete Part II of
	Schedule L ..........		6
7	Notes and loans receivable, net .............	1,123,621	7	2,238,618
8	Inventories for sale or use ..............	7,833,516	8	13,133,075
9	Prepaid expenses and deferred charges ............	15,094,205	9	15,764,871
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	1,032,736,708
b	Less: accumulated depreciation. .....	10b	588,417,428	438,799,210	10c	444,319,280
11	Investments—publicly traded securities ..........	639,808,126	11	613,111,767
12	Investments—other securities. See Part IV, line 11 ......	0	12	0
13	Investments—program-related. See Part IV, line 11 ..	89,606,426	13	102,113,760
14	Intangible assets .........		14
15	Other assets. See Part IV, line 11 ...........	8,671,371	15	3,879,431
16	Total assets. Add lines 1 through 15 (must equal line 34)...	1,336,010,242	16	1,410,048,439
	17	Accounts payable and accrued expenses .	82,631,847	17	89,089,187
18	Grants payable ..........		18
19	Deferred revenue ..........	2,394,848	19	2,707,670
20	Tax-exempt bond liabilities ..........	351,205,810	20	342,411,615
21	Escrow or custodial account liability. Complete Part IV of Schedule D..		21
22	Payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........		22
23	Secured mortgages and notes payable to unrelated third parties ..	34,362,783	23	34,605,371
24	Unsecured notes and loans payable to unrelated third parties ....		24
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.....	174,431,671	25	301,396,078
26	Total liabilities. Add lines 17 through 25.....	645,026,959	26	770,209,921
		Organizations that follow SFAS 117, check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets .....	551,790,038	27	502,217,281
28	Temporarily restricted net assets .....	97,224,615	28	91,734,168
29	Permanently restricted net assets .....	41,968,630	29	45,887,069
	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 .....	690,983,283	33	639,838,518
34	Total liabilities and net assets/fund balances .....	1,336,010,242	34	1,410,048,439

- 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

Lehigh Valley Hospital

Employer identification number

23-1689692

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

Lehigh Valley Hospital

Employer identification number

23-1689692

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 Lehigh Valley 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 Lehigh Valley 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
Lehigh Valley Hospital

Employer identification number

23-1689692

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

Lehigh Valley Hospital

Employer identification number

23-1689692

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)? ....

Yes

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

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

Yes

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? ........

Yes

76,084

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

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

Yes

24,000

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

100,084

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
Explanation of Lobbying Activities:	Part II-B, Line 1:	Indirect State lobbying activites - Indirect communication includes communication explaining a principal's position and requesting others to contact elected officials by way of grassroots lobbying.

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

Lehigh Valley Hospital

Employer identification number

23-1689692

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
1a	Beginning of year balance ....	105,775,895	89,400,969	78,716,975	96,684,736
b	Contributions ........	4,304,716	1,438,232	3,372,844	362,255
c	Net investment earnings, gains, and losses ...	2,562,031	16,891,409	9,223,571	-16,234,043
d	Grants or scholarships .....	363,340	246,433	285,893	650,019
e	Other expenditures for facilities and programs ........	1,892,924	1,708,282	1,625,502	1,445,904
f	Administrative expenses ....
g	End of year balance ......	110,386,378	105,775,895	89,401,995	78,717,025

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

Board designated or quasi-endowment SchDMd Bullet

0 %

Permanent endowment SchDMd Bullet

36.000 %

Temporarily restricted endowment SchDMd Bullet

64.000 %

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 .................	5,024,338		5,024,338
b	Buildings ................	631,014,641	337,043,266	293,971,375
c	Leasehold improvements ............	19,867,370	7,742,404	12,124,966
d	Equipment ................	258,166,637	181,482,234	76,684,403
e	Other .................	118,663,722	62,149,524	56,514,198
Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10(c).).......				444,319,280

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
(1) Investment-Lehigh Valley Physician Hospital Org.-42.7%	8,246,346	C
(2) Investment-Health Network Laboratories-83.24%	89,425,459	C
(3) Quakertown Health Venture - 50%	3,058,726	C
(4) Investment - Careworks Allentown	53,000	C
(5) Investment - Careworks Schnecksville	46,000	C
(6) Investment - Fairgrounds Medical Center	477,513	C
(7) Investment - GV - LVHS	806,716	C


Total. (Column (b) must equal Form 990, Part X, col.(B) line 13.)	102,113,760

Part IX

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

(a) Description				(b) Book value









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

Part X

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

1.(a) Description of Liability		(b) Book value
Federal Income Taxes
Cost Settlement Reserves with Third Parties		-1,610,874
Deferred Compensation Plan		3,613,492
Pension Liability		245,195,631
Workers Compensation		1,979,411
Professional Insurance Liability Reserves		28,112,435
Asset Retirement Obligation		4,142,709
Unrealized Loss on Interest Rate Swap		19,023,168
Other		940,106

Total. (Column (b) must equal Form 990, Part X, col.(B) line 25.)		301,396,078
2. Fin 48 (ASC 740) Footnote. In Part XIV, provide the text of the footnote to the organization's financial statements that reports the organization's liability for uncertain tax positions under FIN 48 (ASC740).

Schedule D (Form 990) 2011

Page 4

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

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

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

Part XIV

Supplemental Information

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

Identifier	Return Reference	Explanation
Description of Intended Use of Endowment Funds:	Part V, Line 4:	The endowment funds are used for continuing education, scholarships, research, clinical equipment, and nursing awards.
Description of Uncertain Tax Positions Under FIN 48:	Part X:	In 2008, the Organization adopted Financial Accounting Standards Board (FASB) Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 has become part of ASC 740. FIN 48/ASC 740 establishes that the financial statement effects of a tax position taken or expected to be taken are to be recognized in the financial statements when it is more likely than not, based on technical merits, that the position will be sustained upon IRS examination. FIN 48 became effective for fiscal year 2008 for the Organization. The Organization has analyzed tax positions taken on federal income tax returns for all open tax years for the taxable entities and has determined that as of June 30, 2012, there are no uncertain tax positions taken or expected to be taken that would require recognition in the financial statements. The Organization has analyzed specific criteria regarding the exempt 501(c) 3 status for the tax exempt entities and has determined that as of June 30, 2012 the Organization is compliant with the qualifications for exemption from Federal income tax.

Schedule D (Form 990) 2011

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE G (Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Supplemental Information Regarding
Fundraising or Gaming Activities

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

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

See separate instructions.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization
Lehigh Valley Hospital

Employer identification number

23-1689692

Part I

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

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

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

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

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

Yes

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

(i) Name and address of individual or entity (fundraiser)	(ii) Activity	(iii) Did fundraiser have custody or control of contributions?		(iv) Gross receipts from activity	(v) Amount paid to (or retained by) fundraiser listed in col. (i)	(vi) Amount paid to (or retained by) organization
	(ii) Activity	Yes	No	(iv) Gross receipts from activity		(vi) Amount paid to (or retained by) organization
Harris Connect 1511 Route 22 - Suite C-25 Brewster, NY10509	Phone/Mail Solicitation		No	79,253	208,548	-129,295
Total .................				79,253	208,548	-129,295

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

AL, AK, AZ, AR, CA, CO, CT, FL, GA, HI, IL, KS, KY, LA, ME, MA, MD, MI, MN, MS, MO, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, TN, UT, VA, WA, WV, MI, DC

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

Cat. No. 50083H

Schedule G (Form 990 or 990-EZ) 2011

Page 2

Part II

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

		(a) Event #1 Nite Lites (event type)	(d) Total Events (Add col. (a) through col. (c))
1	Gross receipts . . .	1,114,414	1,114,414
2	Less: Charitable contributions . . .	0
3	Gross income (line 1 minus line 2) . . .	1,114,414	1,114,414
4	Cash prizes . . .	0
5	Non-cash prizes . .	0
6	Rent/facility costs . .	0
7	Food and beverages . .	0
8	Entertainment . . .	0
9	Other direct expenses .	456,733	456,733
10	Direct expense summary. Add lines 4 through 9 in column (d) ...........		456,733
11	Net income summary. Combine lines 3 and 10 in column (d)............		657,681

Part III

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

(a) Bingo

(b) Pull tabs/Instant
bingo/progressive bingo

(c) Other gaming

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

Gross revenue . . . .

Cash prizes . . . .

Non-cash prizes . . .

Rent/facility costs . . .

Other direct expenses . .

Volunteer labor . . .

	Yes
	No

	Yes
	No

	Yes
	No

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

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

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

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

YesNo

If "No," Explain:

10a

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

YesNo

If "Yes," Explain:

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

YesNo

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

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

YesNo

Schedule G (Form 990 or 990-EZ) 2011

Page 3

Indicate the percentage of gaming activity operated in:

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

13a

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

13b

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

Name

Address

15a

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

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

YesNo

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

$ and the

amount of gaming revenue retained by the third party right arrow

$ .

If "Yes," enter name and address:

Name

Address

Gaming manager information:

Name

Gaming manager compensation right arrow

Description of services provided right arrow

Director/officer Employee Independent contractor

Mandatory distributions:

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

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

YesNo

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

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

Part IV

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

Identifier	ReturnReference	Explanation
Explanation of Fundraising Payments	Schedule G, Part I, Line 2b, Column (v)	The vendor provides donor acquisition services that provide multi-year benefits. The current financial information does not reflect the long-term cost/benefit of this program.

Schedule G (Form 990 or 990-EZ) 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

Lehigh Valley Hospital

Employer identification number

23-1689692

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) ..	16,276,000		16,276,000	1.670 %
b Medicaid (from Worksheet 3, column a) .....	126,032,126	94,418,296	31,613,830	3.250 %
c Costs of other means-tested government programs (from Worksheet 3, column b) .
dTotal Financial Assistance and Means-Tested Government Programs .....	142,308,126	94,418,296	47,889,830	4.920 %
Other Benefits e Community health improvement services and community benefit operations (from (Worksheet 4) ....	6,304,469		6,304,469	0.650 %
f Health professions education (from Worksheet 5) ..	13,317,798	5,491,488	7,826,310	0.800 %
g Subsidized health services (from Worksheet 6) ..	18,253,430	1,607,340	16,646,090	1.710 %
h Research (from Worksheet 7)	5,470,062	2,707,592	2,762,470	0.280 %
i Cash and in-kind contributions for community benefit (from Worksheet 8) ....	216,570		216,570	0.020 %
jTotal Other Benefits ...	43,562,329	9,806,420	33,755,909	3.460 %
kTotal. Add lines 7d and 7j. ..	185,870,455	104,224,716	81,645,739	8.380 %

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	5,148	5,148	0 %
4	Environmental improvements
5	Leadership development and training for community members
6	Coalition building
7	Community health improvement advocacy	613,297	613,297	0.060 %
8	Workforce development
9	Other
10	Total	618,445	618,445	0.060 %

Part III

Bad Debt, Medicare, & Collection Practices

Section A. Bad Debt Expense

Yes

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

Yes

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

15,405,798

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

10,963,927

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).....

238,153,460

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

234,599,809

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

3,553,651

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 %
11 LVHN Reciprocal Risk Retention Group	Malpractice Insurance	16.670 %	0 %	0 %
22 Health Network Laboratories LLC	Laboratory Services	85.000 %	0 %	0 %
33 Health Network Laboratories LP	Laboratory Services	81.670 %	0 %	0 %
44 Lehigh Valley Physician Hospital Organization Inc	Health Care Services	45.000 %	0 %	0 %
5
6
7
8
9
10
11
12
13

Schedule H (Form 990) 2011

Page

Part VFacility Information

Section A. Hospital Facilities (list in order of size from largest to smallest) How many hospital facilities did the organization operate during the tax year?2 Name and address		Other (Describe)
1	Lehigh Valley Hospital - Cedar Crest 1200 S Cedar Crest Blvd Allentown,PA18103	X	X	X	X	X	X
2	Lehigh Valley Hospital - 17th Street 17th Chew Streets Allentown,PA18103	X	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)

Lehigh Valley Hospital - Cedar Crest

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		No
	If “Yes,” indicate what the Needs Assessment describes (check all that apply):
	a	A definition of the community served by the hospital facility
	b	Demographics of the community
	c	Existing health care facilities and resources within the community that are available to respond to the health needs of the community
	d	How data was obtained
	e	The health needs of the community
	f	Primary and chronic disease needs and other health issues of uninsured persons, low-income persons, and minority groups
	g	The process for identifying and prioritizing community health needs and services to meet the community health needs
	h	The process for consulting with persons representing the community’s interests
	i	Information gaps that limit the hospital facility’s ability to assess the community’s health needs
	j	Other (describe in Part VI)
2	Indicate the tax year the hospital facility last conducted a Needs Assessment: 20
3	In conducting its most recent Needs Assessment, did the hospital facility take into account input from persons who represent the community served by the hospital facility? If “Yes,” describe in Part VI how the hospital facility took into account input from persons who represent the community, and identify the persons the hospital facility consulted.		3
4	Was the hospital facility’s Needs Assessment conducted with one or more other hospital facilities? If “Yes,” list the other hospital facilities in Part VI............................		4
5	Did the hospital facility make its Needs Assessment widely available to the public? ...........		5
	If “Yes,” indicate how the Needs Assessment was made widely available (check all that apply):
	a	Hospital facility’s website
	b	Available upon request from the hospital facility
	c	Other (describe in Part VI)
6	If the hospital facility addressed needs identified in its most recently conducted Needs Assessment, indicate how (check all that apply):
	a	Adoption of an implementation strategy to address the health needs of the hospital facility’s community
	b	Execution of the implementation strategy
	c	Participation in the development of a community-wide community benefit plan
	d	Participation in the execution of a community-wide community benefit plan
	e	Inclusion of a community benefit section in operational plans
	f	Adoption of a budget for provision of services that address the needs identified in the Needs Assessment
	g	Prioritization of health needs in the community
	h	Prioritization of services that the hospital facility will undertake to meet health needs in its community
	i	Other (describe in Part VI)
7	Did the hospital facility address all of the needs identified in its most recently conducted Needs Assessment? If “No,” explain in Part VI which needs it has not addressed and the reasons why it has not addressed such needs. ....		7
Financial Assistance Policy
	Did the hospital facility have in place during the tax year a written financial assistance policy that:
8	Explained eligibility criteria for financial assistance, and whether such assistance includes free or discounted care?		8	Yes
9	Used federal poverty guidelines (FPG) to determine eligibility for providing free care?...........		9	Yes
	If "Yes," indicate the FPG family income limit for eligibility for free care: 200.000000000000% If "No," explain in Part VI the criteria the hospital facility used.

Schedule H (Form 990) 2011

Page

Part VFacility Information (continued)

				Yes	No
10	Used FPG to determine eligibility for providing discounted care?.................		10	Yes
	If “Yes,” indicate the FPG family income limit for eligibility for discounted care: 400.000000000000% 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	Yes
	If “Yes,” explain in Part VI.

Schedule H (Form 990) 2011

Page

Part VFacility Information (continued)

Section B. Facility Policies and Practices.

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

Lehigh Valley Hospital - 17th Street

Name of Hospital Facility:

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

				Yes	No
Community Health Needs Assessment (Lines 1 through 7 are optional for 2011)
1	During the tax year or any prior tax year, did the hospital facility conduct a community health needs assessment (“Needs Assessment”)? If “No,” skip to question 8. .....................		1		No
	If “Yes,” indicate what the Needs Assessment describes (check all that apply):
	a	A definition of the community served by the hospital facility
	b	Demographics of the community
	c	Existing health care facilities and resources within the community that are available to respond to the health needs of the community
	d	How data was obtained
	e	The health needs of the community
	f	Primary and chronic disease needs and other health issues of uninsured persons, low-income persons, and minority groups
	g	The process for identifying and prioritizing community health needs and services to meet the community health needs
	h	The process for consulting with persons representing the community’s interests
	i	Information gaps that limit the hospital facility’s ability to assess the community’s health needs
	j	Other (describe in Part VI)
2	Indicate the tax year the hospital facility last conducted a Needs Assessment: 20
3	In conducting its most recent Needs Assessment, did the hospital facility take into account input from persons who represent the community served by the hospital facility? If “Yes,” describe in Part VI how the hospital facility took into account input from persons who represent the community, and identify the persons the hospital facility consulted.		3
4	Was the hospital facility’s Needs Assessment conducted with one or more other hospital facilities? If “Yes,” list the other hospital facilities in Part VI............................		4
5	Did the hospital facility make its Needs Assessment widely available to the public? ...........		5
	If “Yes,” indicate how the Needs Assessment was made widely available (check all that apply):
	a	Hospital facility’s website
	b	Available upon request from the hospital facility
	c	Other (describe in Part VI)
6	If the hospital facility addressed needs identified in its most recently conducted Needs Assessment, indicate how (check all that apply):
	a	Adoption of an implementation strategy to address the health needs of the hospital facility’s community
	b	Execution of the implementation strategy
	c	Participation in the development of a community-wide community benefit plan
	d	Participation in the execution of a community-wide community benefit plan
	e	Inclusion of a community benefit section in operational plans
	f	Adoption of a budget for provision of services that address the needs identified in the Needs Assessment
	g	Prioritization of health needs in the community
	h	Prioritization of services that the hospital facility will undertake to meet health needs in its community
	i	Other (describe in Part VI)
7	Did the hospital facility address all of the needs identified in its most recently conducted Needs Assessment? If “No,” explain in Part VI which needs it has not addressed and the reasons why it has not addressed such needs. ....		7
Financial Assistance Policy
	Did the hospital facility have in place during the tax year a written financial assistance policy that:
8	Explained eligibility criteria for financial assistance, and whether such assistance includes free or discounted care?		8	Yes
9	Used federal poverty guidelines (FPG) to determine eligibility for providing free care?...........		9	Yes
	If "Yes," indicate the FPG family income limit for eligibility for free care: 200.000000000000% If "No," explain in Part VI the criteria the hospital facility used.

Schedule H (Form 990) 2011

Page

Part VFacility Information (continued)

				Yes	No
10	Used FPG to determine eligibility for providing discounted care?.................		10	Yes
	If “Yes,” indicate the FPG family income limit for eligibility for discounted care: 400.000000000000% 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	Yes
	If “Yes,” explain in Part VI.

Schedule H (Form 990) 2011

Page

Part VFacility Information (continued)

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

Schedule H (Form 990) 2011

Page

Part VI

Supplemental Information

Complete this part to provide the following information.

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

Identifier	ReturnReference	Explanation
		Part I, Line 6a: The Community Benefit Report is issued by Lehigh Valley Health Network - EIN 22-2458317, the parent company of Lehigh Valley Hospital.
		Part I, Line 7: The costing methodology is cost to charge ratio for programs with gross charges and direct costs for programs without gross charges.
		Part I, Line 7g: CLINICS SUBSIDYThe clinics subsidy of $14,926,290 is the difference between clinic payments and clinic costs. The clinics subsidy includes the operations of the Medical and Surgical Clinics, Children's Clinic, the Dental Clinic, the Center for Women's Medicine, the Family Health Center, Geriatrics, Maternal Fetal Medicine, and the Mental Health Clinic. TRANSITIONAL LIVING CENTERSLehigh Valley Health Network administers two Residential Aftercare Programs as a contracted provider for the Lehigh County Department of Human Services. These programs include the Transitional Living Center-Full Care and the Transitional Living Center-Moderate Care. Although the programs receive revenue from clients and reimbursements from Lehigh County, these funds do not fully reimburse program operating expenditures. In FY'12, program operating expenditures exceeded program revenues and reimbursements by $395,951. The Transitional Living Centers serve residents of Lehigh County age 18 and over who have been treated for mental illness and would benefit from a structured residential program. The Full Care site is supervised 24 hours per day and teaches the activities of daily living as designated by the Pa. Department of Welfare to those residents who demonstrate the need for ongoing intensified supervision due to their mental illness. The Moderate Care site is supervised 10 hours per day and is designed to teach activities of daily living to those individuals who demonstrate the need for community reentry support in a less-intensified structure.AIDS ACTIVITIES OFFICEEstablished in 1989, Lehigh Valley Hospital's AIDS Activities Office (AAO) provides clinical and social services to children, adolescents and adults infected and affected by HIV/AIDS and HCV (hepatitis C). In FY'12, the AIDS Activities Office's active patients received one or more of the following services: HIV testing and counseling (A free service open to the public as a state-designated Department of Health lab site). Prevention counseling. Initial and ongoing medical care (including laboratory evaluation, coordination and referral to diagnostic and specialty service, and pharmaceutical treatment regimens) provided by a physician board-certified in infectious diseases and specializing in HIV care. Coordination and monitoring of clinical therapies, and education provided by registered nurses. Nutritional assessments and interventions. Adherence counseling. Case management to insure coverage of basic and social service needs, including housing, employment, outpatient substance abuse treatment, mental health counseling, etc., and providing linkages to care and coordination of specialty treatments. HIV outreach, prevention education, and testing in network community settings Hepatitis C treatment provided by a physician board-certified in internal medicine and specializing in HCV care. Hepatitis C education by nurses specially educated in the disease as well as prevention and adherence counseling. Support groups for HIV Mental health counseling by a licensed clinical social worker specializing in people living with HIV and HCV. The AAO Food Bank, supported by private donations. HepA, HepB, & Hep A/B vaccines Funded originally by the Dorothy Rider Pool Health Care Trust and Lehigh Valley Hospital (LVH), the AIDS Activities Office is currently primarily supported by LVH, Early Intervention Funding (Title III) from the Ryan White Care Act (Human Resources and Services Administration) and AIDSNET (Ryan White Title II funding) and the PA Department of Health. LVH's contribution to the operations of the AIDS Activities Office in FY'12 was $394,518, net of payments.FREE ORAL TRAUMA SURGERY CAREIn FY'12, Lehigh Valley Hospital paid $389,074 to private oral surgery practices to provide oral trauma surgery care to hospital patients.AMBULANCE TRANSPORT COSTSLehigh Valley Hospital incurred total ambulance costs of $131,637 to transport patients to other non-LVHN facilities.PHARMACEUTICALS FOR DISCHARGED PATIENTSPharmaceuticals appropriate to the course of treatment are often provided at no charge to indigent patients upon discharge. The cost of these medications in FY'12 was $408,620.
		Part I, L7 Col(f): The costing methodology for bad debt expense is the Medicare cost to charge ratio. The ratio of uninsured charges written off as charity was applied to total charges written off as bad debt to estimate the portion of bad debt that is attributed to patients under the hospital charity policy.
		Part II: Community Building Activities are conducted on behalf of Lehigh Valley Health Network, which is the governing entity for Lehigh Valley Hospital and Lehigh Valley Hospital - Muhlenberg. Our Community Partners include:School HealthLehigh Valley Hospital's outpatient pediatric department provides free on-site clinical services and health exams for Central Elementary School's student population. The net cost of direct services provided at the school in FY'12 was $150,546. NEIGHBORHOOD HEALTH CENTERS OF THE LEHIGH VALLEYThe hospital's cost to provide Family Health Services at The Caring Place "New Life" Clinic and Casa Guadalupe "Vida Nueva" Clinic was $458,601 in FY'12.MOSELEM SPRINGS SENIORS EVENTThe Health Center at Moselem Springs conducted a Seniors Event in August 2011. A group of seniors was transported by bus from Hamburg, PA and given a health presentation and tour of the Health Center. Lunch was provided. Staff costs, transportation and other expenses, excluding donated physician time, was $1,504. CRUCIAL CONVERSATIONS TRAINING - CHILDREN'S ADVOCACY CENTEROrganizational Development and Clinical Staff Development staff provided Crucial Conversations Training to Lehigh County employees who are part of the Children's Advocacy Center. Training materials were supplied through a grant from VitalSmarts, the parent company of Crucial Conversations. Unreimbursed staff costs and other expenses to provide the training were $2,646.Communities in SchoolsCommunities in Schools of the Lehigh Valley, Inc., is a non-profit partnership supported by local businesses, human services, government and volunteers who strive to reduce the number of school dropouts. To support this program, classroom, auditorium, and office space, and mailroom services are provided at Lehigh Valley Hospital - 17th and Chew. The value of below market building rental and services provided to the program in FY'12 was $5,148.
		Part III, Line 4: BAD DEBTS-In instances where the Organization believes a patient has the ability to pay for services and, after appropriate collection effort, payment is not made, the amount of services not paid is written-off, at charges, as bad debts. Amounts recorded as bad debts expense do not include charity. The amount of bad debts expense for the years ended June 30, 2012 and 2011, at charges, was $66,745,000 and $56,427,000 respectively, and is reported as Bad debts expense on the Combined Statements of Operations.
		Part III, Line 8: The source of the Medicare allowable costs relating to revenue received from Medicare is the FY '12 Medicare Cost Report.
		Part III, Line 9b: Financial Counseling staff will determine whether patients meet eligibility criteria for financial assistance. Accounts that do not meet the eligiblilty requirements will be referred to the internal collection unit and subsequently transferred to bad debt status if the accounts remain unpaid.When the hospital determines that a Medicare patient is either financially or medically indigent and that he is unable to pay his patient liability, the hospital waives its standard collection procedures, deems the account to be uncollectible, and immediately writes off the unpaid balance to charity.
Lehigh Valley Hospital - Cedar Crest		Part V, Section B, Line 15e: Collection activities are limited to hospital sending 3 statements requesting payment. If payment is not made, the account is turned over to a primary collection agency for 6 months. If payment is not received after 6 months, the account is turned over to a secondary agency for 3 months. If these collection efforts do not result in payment, the account is written off as a bad debt.
Lehigh Valley Hospital - 17th Street		Part V, Section B, Line 15e: Collection activities are limited to hospital sending 3 statements requesting payment. If payment is not made, the account is turned over to a primary collection agency for 6 months. If payment is not received after 6 months, the account is turned over to a secondary agency for 3 months. If these collection efforts do not result in payment, the account is written off as a bad debt.
Lehigh Valley Hospital - Cedar Crest		Part V, Section B, Line 21: All patients receive the same charge for the same service. The expected collection amount for the uninsured is the average payment of non-government payers. Further reductions are based on the patient income and federal poverty guidelines.
Lehigh Valley Hospital - 17th Street		Part V, Section B, Line 21: All patients receive the same charge for the same service. The expected collection amount for the uninsured is the average payment of non-government payers. Further reductions are based on the patient income and federal poverty guidelines.
		Part VI, Line 2: Community Health Needs AssessmentThe Health Care Council of the Lehigh Valley (HCCLV) is a newly formed not-for-profit group with representation from Lehigh Valley Health Network, the Dorothy Rider Pool Health Care Trust, St. Luke's University Health Network, Sacred Heart Health Care System, and Good Shepherd Rehabilitation Hospital. The HCCLV is developing a comprehensive regional Community Health Needs Assessment (CHNA) designed to identify the strengths and needs of our community, establish health priorities, and encourage collaborations within the community to take action on health issues, all in an effort to improve the health of residents in our region. Members of the CHHS team have provided leadership in developing the HCCLV group, designing the CHNA, and collecting and analyzing key community health information.
		Part VI, Line 3: Consistent with the mission and values of Lehigh Valley Health Network, it is the policy to provide medical care to all individuals without regard to their ability to pay for services. The Charity Care Policy which incorporates the LHVN Reduced Cost of Care program applies to uninsured and under-insured individuals who participate in the process to evaluate their ability to pay for LVHN services.Patients are identified by LVHN registration, Benefits and Verification, Customer Service, and Financial Counselors as being in financial need. The Financial Counselors help patients complete the application for Reduced Cost of Care. LVHN follows the Federal Poverty Guidelines to evaluate eligibility. Patients whose family income falls bellow 200% of the Federal Poverty guideline will have their entire balance forgiven for their qualifying services at a participating LVHN provider. Patients with a family income below 400% of the Federal Poverty guidelines will have a portion of their balance forgiven for qualifying services at a participating LVHN provider. Patients are evaluated for no cost or reduced premium insurance plans. The LVHN Financial Counselors will offer information to patients who are interested in seeing if they qualify for these programs offered by commercial insurance companies.Patients often express financial concern or need by contacting the LVHN Customer Service departments. The Customer Service representatives explain the programs available; Reduced Cost of Care, Medical Assistance, and a Reduced Patient responsibility for Self Pay patients. Patients will be referred to the Financial Counselors who work with patients to apply for Pennsylvania Medical Assistance. The Financial Counselors are located onsite. The PATHS representatives visit patients in their inpatient rooms, in the Cancer Center, and in the Emergency Department. In addition, LVHN advertises Financial Assistance in the local newspaper, on our public website and on the statements sent to our patients.
		Part VI, Line 4: Lehigh Valley Hospital, Inc. (LVH) is a Pennsylvania not-for-profit membership corporation exempt from federal income taxes as a corporation described in Section 501(c)(3) of the Internal Revenue Code. As of June 30, 2012, LVH operates hospital facilities at three primary locations:17th and Chew Streets in Allentown, Lehigh County, Pennsylvania where 11 acute care beds, 52 skilled nursing beds and 10 inpatient hospice beds are operated; Cedar Crest Boulevard and Interstate 78 in Salisbury Township, Lehigh County, Pennsylvania where 665 acute care beds are operated; LVH also operates 65 psychiatry beds on the LVH-Muhlenberg campus.The primary service area of LVH consists of Lehigh, Northampton and Carbon counties. Based on information available from the U.S. Census Bureau for the year 2010 census, the population of the primary service area was approximately 712,261 people and was estimated to be 726,443 at the end of calendar year 2012. During fiscal year 2012, 73% of the discharges from LVH were residents of the primary service area. The secondary service area consists of Monroe, Berks, Schuylkill and Luzerne counties as well as northern portions of Bucks and Montgomery counties. The 2010 population of the secondary service area was approximately 1,375,956. During fiscal year 2012, 22% of the discharges from LVH were residents of the secondary service area. Based on U.S. Census Bureau data, the current population of the combined primary and secondary LVH service area is projected by Claritas Demographics to increase approximately 5% by the year 2017. During fiscal year 2012, 5% of the discharges from LVH were residents outside the primary and secondary service areas.
		Part VI, Line 5: Lehigh Valley Hospital qualifies as an Institution of Purely Public Charity in Pennsylvania. This regulation is referred to as Act 55. To be considered a purely public charity, nonprofits must: (1) advance a charitable purpose; (2) donate or render gratuitously a substantial portion of its services; (3) benefit a substantial and indefinite class of persons who are legitimate subjects of charity; (4) relieve the government of some burden; and (5) operate entirely free from private profit motive.LVH is required to reapply for this charitable status every five years and currently qualifies through October 31, 2015.

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
Lehigh Valley Hospital

Employer identification number
23-1689692

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)
(1) Nursing Scholarships	115	386,371	0	Book
(2) Jirolano Tuition Aide Scholarship	1	600	0	Book

Part IV

Supplemental Information. Complete this part to provide the information required in Part I, line 2, and any other additional information.

Identifier	Return Reference	Explanation
Procedure for Monitoring Grants in the U.S.:	Part I, Line 2:	Schedule I, Part I, Line 2: Scholarships are awarded to senior nursing students in a Bachelor of Nursing program and 2nd year nursing students in an Associate Degree program, as well as employees who currently possess a Registered nurse continuing their education towards either a Bachelor's Degree or Master's Degree. Criteria for scholarships to students in a Graduate Nurse program are: submit 2 letters of recommendation from clinical instructors, an official copy of their most current transcript demonstrating a 3.0 GPA or higher, a one page essay describing why they deserve the scholarship and a completed assessment survey. If above information is considered favorable, two interviews are scheduled with selection committee members. If considered favorable after all interviews have been conducted, a scholarship award is offered. If candidate accepts and signs a contract,their commitment back to the hospital is for 2080 hours of employment as a Registered Nurse after successfully completing an internship. If candidate does not fulfill their commitment, the scholarship dollars are pro-rated and repayment is due back. For current employees, an application is completed along with a letter of recommendation from their direct supervisor, a copy of most recent performance evaluation noting an evaluation score of 3.0 or better, and the must be currently enrolled in a nursing program.

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

Lehigh Valley Hospital

Employer identification number

23-1689692

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....

Yes

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

Yes

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

Yes

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

Yes

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

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

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

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

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

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

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

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

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

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

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

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

Were any amounts reported in Form 990, Part VII, paid or accured pursuant to a contract that was
subject to the initial contract exception described in 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) Ronald W Swinfard MD	(i) (ii)	834,231 0	283,500 0	265,303 0	0 0	30,230 0	1,413,264 0	0 0
(2) Keith Weinhold	(i) (ii)	241,120 0	48,148 0	10,085 0	0 0	30,230 0	329,583 0	0 0
(3) James Geiger	(i) (ii)	238,799 0	50,000 0	10,960 0	0 0	30,230 0	329,989 0	0 0
(4) Debby Patrick	(i) (ii)	237,957 0	61,672 0	-1,903 0	0 0	30,230 0	327,956 0	0 0
(5) Scott Lipkin	(i) (ii)	216,669 0	18,888 0	12,709 0	0 0	30,230 0	278,496 0	0 0
(6) Edward Dougherty	(i) (ii)	208,536 0	37,840 0	-2,454 0	0 0	30,123 0	274,045 0	0 0
(7) Elliot J Sussman MD	(i) (ii)	145,093 0	135,892 0	1,831,266 0	0 0	0 0	2,112,251 0	0 0
(8) Joseph G Felkner	(i) (ii)	335,279 0	108,533 0	487,606 0	0 0	0 0	931,418 0	0 0
(9) Mary Kay Grim	(i) (ii)	163,675 0	61,900 0	16,741 0	0 0	0 0	242,316 0	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
	Part I, Line 1a	Travel expenses for companion is paid by Lehigh Valley Hospital for one professional meeting per year for the President/CEO.
	Part I, Lines 4a-b	Elliot J. Sussman, MD 635,131 Ronald W. Swinfard, MD 264,046 Keith Weinhold 16,599 Mary Kay Grim 15,444 James Geiger 15,613 Scott Lipkin 12,202 Edward Dougherty 3,670 Joseph Felkner 98,628 These amounts are accruals to a nonqualified supplemental executive retirement plan.

Schedule J (Form 990) 2011

Additional Data

Software ID:
Software Version:

- TIN:

Schedule K
(Form 990)

Department of the Treasury
Internal Revenue Service

Supplemental Information on Tax Exempt Bonds

Complete if the organization answered "Yes" to Form 990, Part IV, line 24a. Provide descriptions,
explanations, and any additional information in Part VI.
SchKMediumBullet

Attach to Form 990. SchKMediumBullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public
Inspection

Name of the organization
Lehigh Valley Hospital

Employer identification number
23-1689692

Part I

Bond Issues

(a) Issuer Name		(b) Issuer EIN	(c) CUSIP #	(d) Date Issued	(e) Issue Price	(f) Description of Purpose	(g) Defeased		(h) On Behalf of Issuer		(i) Pool financing
(a) Issuer Name		(b) Issuer EIN	(c) CUSIP #	(d) Date Issued	(e) Issue Price	(f) Description of Purpose	Yes	No	Yes	No	Yes	No
A	Lehigh County General Purpose Authority	91-1886539	5248053F3	09-15-2005	81,000,000	construct, renovate & equip facilities		X		X		X
B	Lehigh County General Purpose Authority	91-1886539	52480GAY0	06-04-2008	53,725,184	construct, renovate & equip facilities		X		X		X
C	Lehigh County General Purpose Authority	91-1886539	52480GBG8	04-01-2011	115,096,730	refund 9/12/96 & 4/21/99 A issues;reissuance of 7/7/05 and 6/5/08 issues		X		X		X
D	Lehigh County General Purpose Authority	91-1886539	NoneAvail	02-15-2012	18,665,000	refund 4/15/04 & 10/17/01 issues		X		X		X
	Lehigh County General Purpose Authority	91-1886539	NoneAvail	06-01-2012	59,745,000	reissuance of 6/6/08 issue		X		X		X

Part II

Proceeds

	A		B		C		D
	1 Amount of bonds retired . . . . . . . . . . . . .	2,612,200		2,612,200		4,530,790
2 Amount of bonds legally defeased . . . . . . . . . .
3 Total proceeds of issue . . . . . . . . . . . . .	82,955,467		53,885,593		115,096,730		18,665,000
4 Gross proceeds in reserve funds . . . . . . . .	5,000,000
5 Capitalized interest from proceeds . . . . . . . . . .
6 Proceeds in refunding escrows . . . . . . . . . . .	114,976,250				114,976,250		18,330,782
7 Issuance costs from proceeds . . . . . . . . . . .	908,575		704,637		120,480		334,218
8 Credit enhancement from proceeds . . . . . . . . . .	2,341,645		1,323,209
9 Working capital expenditures from proceeds . . . . . . .
10 Capital expenditures from proceeds . . . . . . . . . .	71,505,488		51,857,747
11 Other spent proceeds . . . . . . . . . . .	3,199,759
12 Other unspent proceeds . . . . . . . . . . .
13 Year of substantial completion . . . . . . . . . . .	2007		2010		2011		2012
	Yes	No	Yes	No	Yes	No	Yes	No
14 Were the bonds issued as part of a current refunding issue? . . . .		X		X	X		X
15 Were the bonds issued as part of an advance refunding issue? . . . .		X		X		X	X
16 Has the final allocation of proceeds been made? . . . . . .	X		X		X		X
17 Does the organization maintain adequate books and records to support the final allocation of proceeds? . . . . . . . . . . . . .	X		X		X		X

Part III

Private Business Use

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
1 Was the organization a partner in a partnership, or a member of an LLC, which owned property financed by tax-exempt bonds? . . . . . . .		X		X		X
2 Are there any lease arrangements that may result in private business use of bond-financed property? . . . . . . . . .		X		X		X

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

Cat. No. 50193E

Schedule K (Form 990) 2011

Page 2

Part III

Private Business Use (Continued)

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
3a Are there any management or service contracts that may result in private business use of bond-financed property? . . . . . . . . .		X		X		X
b If ‘Yes’ to line 3a, does the organization routinely engage bond counsel or other outside counsel to review any management or service contracts relating to the financed property? . . . . .
c Are there any research agreements that may result in private business use of bond-financed property? . . . . . . .		X		X		X
d If ‘Yes’ to line 3c, does the organization routinely engage bond counsel or other outside counsel to review any research agreements relating to the financed property? .
4 Enter the percentage of financed property used in a private business use by entities other than a section 501(c)(3) organization or a state or local government . .	%		%		%		%
5 Enter the percentage of financed property used in a private business use as a result of unrelated trade or business activity carried on by your organization, another section 501(c)(3) organization, or a state or local government . . . . . . .	%		%		%		%
6 Total of lines 4 and 5 . . .. . . . . . . . .	%		%		%		%
7 Does the bond issue meet the private security or payment test? . . .	X		X		X
8 Has the organization established written procedures to ensure that all nonqualified bonds of the issue are remediated in accordance with the requirements under Regulations sections 1.141-12 and 1.145-2?	X		X		X

Part IV

Arbitrage

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
1 Has a Form 8038-T, Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate, been filed with respect to the bond issue? . . .		X		X		X		X
2 Is the bond issue a variable rate issue?		X		X	X		X
3a Has the organization or the governmental issuer entered into a qualified hedge with respect to the bond issue?		X		X	X		X
b Name of provider . . . . . . . .	Merrill Lynch & Goldman Sachs				Merrill Lynch & Goldman Sachs
c Term of hedge . . . . . . . .	20.000000000000				20.000000000000		10.400000000000
d Was the hedge superintegrated? . . . .		X				X		X
e Was a hedge terminated? . . . . .		X				X		X
4a Were gross proceeds invested in a guaranteed investment contract (GIC)? . . . . . .	X			X		X		X
b Name of provider . . . . . .	MBIA
c Term of GIC . . . . . . .	3.300000000000
d Was the regulatory safe harbor for establishing the fair market value of the GIC satisfied? . . . . . .	X
5 Were any gross proceeds invested beyond an available temporary period? . . . . . .		X		X		X		X
6 Did the bond issue qualify for an exception to rebate? .	X		X		X		X
7 Has the organization established written procedures to monitor the requirements of section 148? . . .	X		X		X		X

Schedule K (Form 990) 2011

Page 3

Part V

Procedures To Undertake Corrective Action

Has the organization established written procedures to ensure that violations of federal tax requirements are timely identified and corrected through the voluntary closing agreement program if self-remediation is not available under applicable regulations? . . . . . . . . . . . . . . YesNo

Part VI

Supplemental Information

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

Identifier	Return Reference	Explanation

Schedule K (Form 990) 2011

Additional Data

Software ID:
Software Version:

- TIN:

Schedule K
(Form 990)

Department of the Treasury
Internal Revenue Service

Supplemental Information on Tax Exempt Bonds

Complete if the organization answered "Yes" to Form 990, Part IV, line 24a. Provide descriptions,
explanations, and any additional information in Part VI.
SchKMediumBullet

Attach to Form 990. SchKMediumBullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public
Inspection

Name of the organization
Lehigh Valley Hospital

Employer identification number
23-1689692

Part I

Bond Issues

(a) Issuer Name		(b) Issuer EIN	(c) CUSIP #	(d) Date Issued	(e) Issue Price	(f) Description of Purpose	(g) Defeased		(h) On Behalf of Issuer		(i) Pool financing
(a) Issuer Name		(b) Issuer EIN	(c) CUSIP #	(d) Date Issued	(e) Issue Price	(f) Description of Purpose	Yes	No	Yes	No	Yes	No
A	Lehigh County General Purpose Authority	91-1886539	5248053F3	09-15-2005	81,000,000	construct, renovate & equip facilities		X		X		X
B	Lehigh County General Purpose Authority	91-1886539	52480GAY0	06-04-2008	53,725,184	construct, renovate & equip facilities		X		X		X
C	Lehigh County General Purpose Authority	91-1886539	52480GBG8	04-01-2011	115,096,730	refund 9/12/96 & 4/21/99 A issues;reissuance of 7/7/05 and 6/5/08 issues		X		X		X
D	Lehigh County General Purpose Authority	91-1886539	NoneAvail	02-15-2012	18,665,000	refund 4/15/04 & 10/17/01 issues		X		X		X
	Lehigh County General Purpose Authority	91-1886539	NoneAvail	06-01-2012	59,745,000	reissuance of 6/6/08 issue		X		X		X

Part II

Proceeds

	A		B		C		D
	1 Amount of bonds retired . . . . . . . . . . . . .	2,612,200		2,612,200		4,530,790
2 Amount of bonds legally defeased . . . . . . . . . .
3 Total proceeds of issue . . . . . . . . . . . . .	82,955,467		53,885,593		115,096,730		18,665,000
4 Gross proceeds in reserve funds . . . . . . . .	5,000,000
5 Capitalized interest from proceeds . . . . . . . . . .
6 Proceeds in refunding escrows . . . . . . . . . . .	114,976,250				114,976,250		18,330,782
7 Issuance costs from proceeds . . . . . . . . . . .	908,575		704,637		120,480		334,218
8 Credit enhancement from proceeds . . . . . . . . . .	2,341,645		1,323,209
9 Working capital expenditures from proceeds . . . . . . .
10 Capital expenditures from proceeds . . . . . . . . . .	71,505,488		51,857,747
11 Other spent proceeds . . . . . . . . . . .	3,199,759
12 Other unspent proceeds . . . . . . . . . . .
13 Year of substantial completion . . . . . . . . . . .	2007		2010		2011		2012
	Yes	No	Yes	No	Yes	No	Yes	No
14 Were the bonds issued as part of a current refunding issue? . . . .		X		X	X		X
15 Were the bonds issued as part of an advance refunding issue? . . . .		X		X		X	X
16 Has the final allocation of proceeds been made? . . . . . .	X		X		X		X
17 Does the organization maintain adequate books and records to support the final allocation of proceeds? . . . . . . . . . . . . .	X		X		X		X

Part III

Private Business Use

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
1 Was the organization a partner in a partnership, or a member of an LLC, which owned property financed by tax-exempt bonds? . . . . . . .		X		X		X
2 Are there any lease arrangements that may result in private business use of bond-financed property? . . . . . . . . .		X		X		X

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

Cat. No. 50193E

Schedule K (Form 990) 2011

Page 2

Part III

Private Business Use (Continued)

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
3a Are there any management or service contracts that may result in private business use of bond-financed property? . . . . . . . . .		X		X		X
b If ‘Yes’ to line 3a, does the organization routinely engage bond counsel or other outside counsel to review any management or service contracts relating to the financed property? . . . . .
c Are there any research agreements that may result in private business use of bond-financed property? . . . . . . .		X		X		X
d If ‘Yes’ to line 3c, does the organization routinely engage bond counsel or other outside counsel to review any research agreements relating to the financed property? .
4 Enter the percentage of financed property used in a private business use by entities other than a section 501(c)(3) organization or a state or local government . .	%		%		%		%
5 Enter the percentage of financed property used in a private business use as a result of unrelated trade or business activity carried on by your organization, another section 501(c)(3) organization, or a state or local government . . . . . . .	%		%		%		%
6 Total of lines 4 and 5 . . .. . . . . . . . .	%		%		%		%
7 Does the bond issue meet the private security or payment test? . . .	X		X		X
8 Has the organization established written procedures to ensure that all nonqualified bonds of the issue are remediated in accordance with the requirements under Regulations sections 1.141-12 and 1.145-2?	X		X		X

Part IV

Arbitrage

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
1 Has a Form 8038-T, Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate, been filed with respect to the bond issue? . . .		X		X		X		X
2 Is the bond issue a variable rate issue?		X		X	X		X
3a Has the organization or the governmental issuer entered into a qualified hedge with respect to the bond issue?		X		X	X		X
b Name of provider . . . . . . . .	Merrill Lynch & Goldman Sachs				Merrill Lynch & Goldman Sachs
c Term of hedge . . . . . . . .	20.000000000000				20.000000000000		10.400000000000
d Was the hedge superintegrated? . . . .		X				X		X
e Was a hedge terminated? . . . . .		X				X		X
4a Were gross proceeds invested in a guaranteed investment contract (GIC)? . . . . . .	X			X		X		X
b Name of provider . . . . . .	MBIA
c Term of GIC . . . . . . .	3.300000000000
d Was the regulatory safe harbor for establishing the fair market value of the GIC satisfied? . . . . . .	X
5 Were any gross proceeds invested beyond an available temporary period? . . . . . .		X		X		X		X
6 Did the bond issue qualify for an exception to rebate? .	X		X		X		X
7 Has the organization established written procedures to monitor the requirements of section 148? . . .	X		X		X		X

Schedule K (Form 990) 2011

Page 3

Part V

Procedures To Undertake Corrective Action

Part VI

Supplemental Information

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

Identifier	Return Reference	Explanation

Schedule K (Form 990) 2011

Additional Data

Software ID:
Software Version:

- TIN:

Schedule L
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Transactions with Interested Persons

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

Attach to Form 990 or Form 990-EZ. MediumBullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization

Lehigh Valley Hospital

Employer identification number

23-1689692

Part I

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

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

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

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

Part II

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

(a) Name of interested person and purpose	(b) Loan to or from the organization?		(c)Original principal amount	(d)Balance due	(e) In default?		(f) Approved by board or committee?		(g)Written agreement?
(a) Name of interested person and purpose	To	From	(c)Original principal amount	(d)Balance due	Yes	No	Yes	No	Yes	No
(1) Harry Lukens Financial hardship		X	90,000	90,000		No		No	Yes





Total ............... $				90,000

Part III

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

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

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

Cat. No. 50056A

Schedule L (Form 990 or 990-EZ) 2011

Page 2

Part IV

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

(a) Name of interested person	(b) Relationship between interested person and the organization	(c) Amount of transaction	(d) Description of transaction	(e) Sharing of organization's revenues?
(a) Name of interested person		(c) Amount of transaction	(d) Description of transaction	Yes	No
(1) Kathryn P Taylor-Trustee	Board Member of Capital Blue Cross - Trustee of LVHN/LVH/LVHM	98,658,402	Capital BlueCross is a third party insurer doing business with LVHN.		No

Part V

Supplemental Information

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

Identifier	Return Reference	Explanation

Schedule L (Form 990 or 990-EZ) 2011

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE M
(Form 990)

Department of the Treasury

Internal Revenue Service

NonCash Contributions

Complete if the organization answered "Yes" on Form 990, Part IV, lines 29 or 30.
Right pointing arrow large image

Attach to Form 990.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization

Lehigh Valley Hospital

Employer identification number

23-1689692

Part I

Types of Property

	(a) Check if applicable	(b) Number of Contributions or items contributed	(c) Noncash contribution amounts reported on Form 990, Part VIII, line 1g	(d) Method of determining noncash contribution amounts
1 Art—Works of art ....	X	9	77,710	Fair Market Value
2 Art—Historical treasures .
3 Art—Fractional interests ..
4 Books and publications ..	X		6,757	Fair Market Value
5 Clothing and household goods .......	X		1,752	Fair Market Value
6 Cars and other vehicles ..	X	1	18,200	Fair Market Value
7 Boats and planes ....
8 Intellectual property ...
9 Securities—Publicly traded .
10 Securities—Closely held stock .
11 Securities—Partnership, LLC, or trust interests ....
12 Securities—Miscellaneous ..
13 Qualified conservation contribution—Historic structures .....
14 Qualified conservation contribution—Other ...
15 Real estate—Residential .
16 Real estate—Commercial ..
17 Real estate—Other ...
18 Collectibles .....
19 Food inventory ...	X	15	1,569	Fair Market Value
20 Drugs and medical supplies .
21 Taxidermy ......
22 Historical artifacts ....
23 Scientific specimens ..
24 Archeological artifacts ...
25 Other ( Jewelry )	X	5	2,131	Fair Market Value
26 Other ( IPads, DVD players )	X	3	2,725	Fair Market Value
27 Other ( Epson Projector )	X	1	640	Fair Market Value
28 Other ( Digital Camera )	X	1	200	Fair Market Value
Other ( Science Program )	X	1	200	Fair Market Value

Number of Forms 8283 received by the organization during the tax year for contributions
for which the organization completed Form 8283, Part IV, Donee Acknowledgement ...

Yes

30a

During the year, did the organization receive by contribution any property reported in Part I, lines 1-28 that it

must hold for at least three years from the date of the initial contribution, and which is not required to be used

for exempt purposes for the entire holding period? ..................

30a

If "Yes," describe the arrangement in Part II.

Does the organization have a gift acceptance policy that requires the review of any non-standard contributions?

Yes

32a

Does the organization hire or use third parties or related organizations to solicit, process, or sell noncash

contributions? ............................

32a

If "Yes," describe in Part II.

If the organization did not report revenues in column (c) for a type of property for which column (a) is checked,

describe in Part II.

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

Cat. No. 51227J

Schedule M (Form 990) 2011

Page 2

Part II

Supplemental Information. Complete this part to provide the information required by Part I, lines 30b,
32b, and 33 and whether the organization is reporting in Part I, column (b) the number of contributions, the number of items received, or a combination of both. Also complete this part for any additional information.

Identifier	Return Reference	Explanation

Schedule M (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

Lehigh Valley Hospital

Employer identification number

23-1689692

Identifier	Return Reference	Explanation
	Form 990, Part VI, Section B, line 11	The process to review the 990's includes: Draft 1 of the returns is reviewed in detail with a focus on accuracy, completeness, and perspective by the LVHN Controller and the LVHN Corporate Legal Counsel. Draft 2 of the returns is reviewed by the Chief Financial Officer. All Compensation disclosures are reviewed by the Vice President - Human Resources. In addition, selected information is also reviewed by LVHN external consultants: Compensation information reviewed by the LVHN Compensation consultant and compensation and charitable purpose information reviewed by an additional LVHN consultant. Draft 3 of the returns is reviewed together with the President & CEO, the Chief Financial Officer, the Controller and the Director-Tax. Final Returns are reviewed with LVHN Executive Committee of the Board of Trustees prior to their filing.
	Form 990, Part VI, Section B, line 12c	Trustees, officers, management and members of the medical staff are required to complete the Conflict of Interest and Commitment questionnaire on an annual basis. Effective August 2008, the questionnaire is completed electronically and stored in a database for ease of reporting and monitoring purposes. Reported conflicts of interests are reported to the Lehigh Valley Health Network Board on an annual basis. The information is also shared with the Pennsylvania Department of Health during their survey process. Those affected within the organization and their immediate supervisors are responsible for ongoing compliance with the Policy both annually and in the interim between declaration periods where possible new conflict situations may arise.
	Form 990, Part VI, Section B, line 15	The Executive Compensation Committee of the Board of Trustees of Lehigh Valley Health Network is authorized to perform its functions for and on behalf of LVHN. Committee Organization: 1. The Committee shall be composed of at least four (4) members of the Board of Trustees, one of whom shall serve as Chair of the Committee. The Committee shall be composed entirely of Trustees who are entirely disinterested members of the Board. The Trustees will have no material relationship to LVHN and/or its Senior Management Council members that may limit their disinterestedness in this role, including that the Trustees (i) must not have any personal interest in the compensation arrangement, (ii) must not be related to or under the control of the person whose compensation is being evaluated, and (iii) must have no material business relationship with LVHN. If a proposed member of the Committee has identified a potential conflict of interest, the issue shall be reviewed by the disinterested members of the Audit Committee which shall report its findings to the Chair of the Executive Compensation Committee. Based on that review, the Chair and the Committee, absent the member with a potential conflict, will make the final determination as to the disinterestedness of the Trustee and the appropriateness of service. From time to time, there may be specific situations which pose a potential conflict of interest. In such instances, the Committee will make the appropriate determination. The Committee may also establish such other procedures as it may deem appropriate with respect to the disinterested status of its members, subject to Board approval. 2. The members and the Chair of the Committee shall be appointed each year by the Board of Trustees in accordance with its policies, and shall serve at the pleasure of the Board of Trustees for such term or terms as the Board of Trustees may determine. The Committee shall conduct its activities in conformity with the requirements of the LVHN By-Laws and the requirements of the Internal Revenue Code of 1986, and Regulations promulgated thereunder, together with any further obligations or requirements as directed by the Board. 3. Each Committee Member shall have the following qualifications: Ability to critically review performance and market practice data and apply relevant information fairly, while properly balancing the competing needs of LVHN's stakeholders. Ability to consider the objectives of linking compensation to performance and retaining high-performing personnel, all in the best interests of LVHN and in accordance with its charitable mission. An understanding of the market place regarding the attraction and retention of Senior Management Council employees and other key personnel. Functions, Duties and Authorities: The Committee on an annual basis shall: Assess the performance of the Chief Executive Officer, determine the Chief Executive Officer's compensation, discuss the appraisal with the CEO and report its determination generally to the full Board. Review the performance of all other members of the Senior Management Council and approve their compensation considering the recommendations of the Chief Executive Officer, and report its determinations generally to the full Board. Review the performance of disqualified persons and other individuals in key leadership positions as determined by the Committee. Review the succession plan and professional and career development of senior management in the organization. Review the compensation plan for selected physicians, including LVPG. Assure that any applicable compensation arrangement is reviewed by the Committee in accordance with all applicable rules and regulations, including Section 4958 of the Internal Revenue Code or its successor. In particular, the Committee intends that its determinations qualify for the "Rebuttable Presumption of Reasonableness" and thus it will ensure that: A compensation arrangement is approved in advance only by Committee members who do not have a conflict of interest with respect to the arrangement, It relies upon appropriate, independent comparability data prior to making its determination, and The basis for the determination is adequately documented concurrent with the Committee's approval. Adequate documentation requires (i) the terms of compensation, (ii) date of approval, (iii) members present, (iv) the source of comparability information and the data, (v) rationale for compensation levels that fall at the upper end of the comparability data, and (vi) any actions taken with respect to conflicts of interest of any member of the Committee. The documentation must be prepared by the later of the next meeting of the Committee or 60 days after final action and approved within a reasonable time thereafter. The Committee, with respect to the administration of the Retirement Plan shall: Appoint the Plan Administrator Delegate the day-to-day functions of Plan administration to the Plan Administrator. Specifically these delegated duties shall include: convening a pension administration committee, compliance with ERISA and IRS documentation and reporting requirements; oversight and management of the benefit claims appeal process; and preparation and distribution of disclosures to Plan participants, make recommendations to the LVHN Board regarding Retirement Plan design. Specific responsibilities shall include: reviewing and making recommendations on benefit structure, the Plan Document or the Trust Agreement; reviewing and recommending additions or deletions of organizational divisions covered by the Plan. The Committee shall also: Consider and make recommendations to the Board regarding the compensation philosophy for the Senior Management Council. Annually evaluate the performance and function of the Committee, including a review of its compliance with this Charter. Direct the establishment of a process that ensures compensation information is fully and fairly disclosed on the Form 990. Discharge such additional duties and responsibilities as the Board of Trustees may from time to time assign to it.
	Form 990, Part VI, Section C, line 18	Anothers Website - Guidestar. Upon request - hard copies with senior management and marketing.
	Form 990, Part VI, Section C, line 19	The Organization makes its financial statements available to the public through its Annual Report to the community. The Annual Report is distributed to all attendees at the Organizations annual public meeting. In addition, it is distributed via mail to members of the community. The Organizations governing documents and conflict of interest policy are not made available to the public.
Changes in Net Assets or Fund Balances:	Form 990, Part XI, line 5:	Net unrealized losses on investments: -47,284,439. Unfunded Pension Liability -148,920,436. Equity Transfer from LVHS, Inc 44,734,479. Equity transfer to LVPG -6,148,555. Temporarily restricted cash -1,572,008. Total to Form 990, Part XI, Line 5: -159,190,959.
Committee - oversight of audit	Form 990, Part XI, Line 2c	The Audit Committee of the Board of Trustees assumes responsibility for oversight of the audit and selection of an independent auditor.
Written Policy - Joint Venture arrangements	Form 990, Part VI, Line 16b	Although the organization does not have a written policy with respect to evaluation of participation in joint venture arrangements, no joint venture is entered into without having had the transactional documents reviewed and evaluated by outside counsel and, if necessary, consultants and accountants to assure that the arrangement does not, in any manner, compromise the organization's exempt status and mission.
Compensation of Officers, Directors, Trustees, Key Employees, etc.	Form 990, Part VII, Line 1a	Hours worked by these individuals reflect the combined hours spent as a Board Officer and an Employee of the organization. All compensation, benefits, etc. reported are for work as a member of senior management of the organization. The remainder of the officers, trustees, listed above are volunteers and receive no compensation.

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

Lehigh Valley Hospital

Employer identification number

23-1689692

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) Lehigh Valley Health Network 1200 S Cedar Crest Blvd Allentown,PA18103 22-2458317	Parent Company	PA	501(c)(3)	509(a)(3) III-FI	N/A		No
(2) Lehigh Valley Hospital - Muhlenberg 1200 S Cedar Crest Blvd Allentown,PA18103 23-2367707	Health Care Organization	PA	501(c)(3)	170(b)(1) (A)(iii)	Lehigh Valley Health Network		No
(3) Lehigh Valley Physician Group 1200 S Cedar Crest Blvd Allentown,PA18103 23-2700908	Physician Practice Organization	PA	501(c)(3)	Line 9	Lehigh Valley Health Network		No
(4) Muhlenberg Realty Corporation 1200 S Cedar Crest Blvd Allentown,PA18103 23-2245513	Real Estate Rentals	PA	501(c)(3)	509(a)(3) III-FI	Lehigh Valley Health Network		No
(5) Lehigh Valley Health Network Realty Holding Co 1200 S Cedar Crest Blvd Allentown,PA18103 23-2586770	Real Estate Holding Co.	PA	501(c)(2)	N/A	Lehigh Valley Health Network		No

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

Cat. No. 50135Y

Schedule R (Form 990) 2011

Page 2

Part III

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

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(e) Predominant income(related, unrelated, excluded from tax under sections 512-514)	(f) Share of total income	(g) Share of end-of-year assets	(h) Disproprtionate allocations?		(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	(j) General or managing partner?
(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) LVHN Reciprocal Risk Retention Group 151 Meeting Street Ste 301 Charleston,SC29401 20-0037118	Insurance	PA	Lehigh Valley Health Network	Related		1,464,566		No			No
(2) Health Network Laboratories LLC 2024 Lehigh Street Allentown,PA18103 23-2932802	Laboratory Services	PA	Lehigh Valley Hospital	Related		828,750		No			No
(3) Health Network Laboratories LP 2024 Lehigh Street Allentown,PA18103 23-2948774	Laboratory Services	PA	Lehigh Valley Hospital	Related	14,172,643	96,089,525		No			No
(4) Lehigh Magnetic Imaging Center 1230 S Cedar Crest Blvd Allentown,PA18103 23-2429077	Imaging Center	PA	N/A

Part IV

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

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(e) Type of entity (C corp, S corp, or trust)
(1) Lehigh Valley Health Services Inc 2100 Mack Blvd Allentown,PA181035622 23-2263665	Health Care Related Services	PA	N/A	C
(2) Lehigh Valley Anesthesia Services PC 2100 Mack Blvd Allentown,PA181035622 23-3096124	Anesthesia Services	PA	N/A	C
(3) Westgate Professional Center Inc 2100 Mack Blvd Allentown,PA181035622 23-1657333	Real Estate Rentals	PA	N/A	C
(4) Lehigh Valley Physician Hospital Organization Inc 2100 Mack Blvd Allentown,PA181035622 23-2750430	Health Care Related Services	PA	N/A	C

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

Yes

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

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

Yes

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

Yes

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

Yes

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

Yes

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

Yes

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

Yes

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

Yes

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

Yes

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

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

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

(a) Name of other organization	(b) Transaction type(a-r)	(c) Amount involved	(d) Method of determining amount involved
(1)
(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: Our mission is to heal, comfort and care for the people of our community by providing advanced and compassionate health care of superior quality and value, supported by education and research.
2	Check this box
3	Number of voting members of the governing body (Part VI, line 1a).....	3	9
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	7,204
6	Total number of volunteers (estimate if necessary) ....	6	893
7a	Total unrelated business revenue from Part VIII, column (C), line 12 ..	7a	6,670,831
b	Net unrelated business taxable income from Form 990-T, line 34 ..	7b	1,367,926

		Prior Year	Current Year
8	Contributions and grants (Part VIII, line 1h) .........	18,821,114	20,190,637
9	Program service revenue (Part VIII, line 2g) .........	967,379,218	1,056,508,268
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	14,121,867	42,741,574
11	Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)	23,386,299	27,756,109
12	Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)...................	1,023,708,498	1,147,196,588
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...	247,489	386,971
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)	380,431,474	404,632,987
16a	Professional fundraising fees (Part IX, column (A), line 11e).....	0	0
b	Total fundraising expenses (Part IX, column (D), line 25) 1,976,704
17	Other expenses (Part IX, column (A), lines 11a–11d, 11f–24f)....	568,525,912	634,130,436
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	949,204,875	1,039,150,394
19	Revenue less expenses. Subtract line 18 from line 12.......	74,503,623	108,046,194
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16).............	1,336,010,242	1,410,048,439
21	Total liabilities (Part X, line 26).............	645,026,959	770,209,921
22	Net assets or fund balances. Subtract line 21 from line 20.....	690,983,283	639,838,518

Sign Here

	Signature of officer	Date

	Type or print name and title.


4a	(Code: ) (Expenses $ 1,002,503,352 including grants of $ ) (Revenue $ 1,109,270,650 )
	LVH offers a continuum of health care promotion, prevention, diagnosis, treatment and rehabilitation to the community. Extensive outpatient and educational services are provided at locations throughout the region and are a part of a healthcare network established by LVH to meet the medical, surgical and educational needs of the residents of the Lehigh Valley and beyond.The following summary reflects the general classification of acute care beds as of June 30, 2012.Medical/Surgical-380, Obstetrics/Gynecology-37, Medical/Surgical Intensive Care Unit-32, Cardiac Intensive Care Unit-12, Neonatal Intensive Care Unit-32, Pediatric Intensive Care Unit-8, Open Heart Unit-9, Burn Unit-18, Trauma/Neuro Intensive Care Unit-14, Neuroscience Intensive Care Unit-14, Transitional Trauma Unit-30, Pediatric Unit-28, Psychiatry (Adult)-52, Psychiatry (Adolescent)-13, Transitional Open Heart Unit-30, Progressive Coronary Care Unit-32, Total-741. In addition, LVH operates 27 bassinets in its Nursery.LVH serves as a referral center for approximately two million residents of surrounding counties in eastern Pennsylvania, with a special focus in the following key areas:Cardiovascular ServicesLVH is one of the largest cardiovascular programs in the Commonwealth of Pennsylvania. LVH performed 821 open-heart surgeries and 10,837 cardiac catheterization and electrophysiology procedures during the fiscal year ended June 30, 2012. It consistently ranks in the top 1% in the nation for heart attack survival. It received five of a possible eight "lower than expected" mortality ratings for coronary artery bypass graft and valve procedures in the Cardiac Surgery in Pennsylvania 2008-2009 report published by the Pennsylvania Health Care Cost Containment Council. In addition to operating one of the most experienced cardiac programs in the country, LVH's heart and heart surgery program was cited as a "high performer" in US News and World Report in their Best Hospitals national rankings. LVH's Regional Heart Center provides disease prevention, acute care and rehabilitation services, including but not limited to:Medical Cardiology, Interventional Cardiology (Diagnostic, Therapeutic, Peripheral Vascular), Electrophysiology (Diagnostic, Therapeutic), Open Heart Surgery (Complex Heart Valve Surgery, Transaortic Valve Replacement, Ventricular Assist Device), Vascular Surgery (Acute Aortic Treatment, Peripheral Arterial Disease, Carotid Stenting), Cardiac Rehabilitation, Specialized Programs-Cardiovascular Prevention Program, Woman's Heart Program, Heart Disease and Pregnancy,MI Alert Program,Therapeutic Hypothermia, Sports Cardiology,Hypertrophic Cardiomyopathy,Arrhythmia Care,Pacer/ICD Lead Removal.Neurosciences ServicesLVH provides treatment for stroke, brain tumors, aneurysms, back problems and other neurological disorders that accounted for 7,030 admissions during the fiscal year ended June 30, 2012 in the following areas: Neurosurgery, Pain Management, Neurology, Neuropsychology, Neuro-Imaging, Neuro-Oncology, Neuro-Interventional Radiology. LVH provides stroke services through its Regional Comprehensive Stroke Program which began operations in July, 2002. Since that time, the Stroke Center has treated 11,859 patients from northeastern Pennsylvania and western New Jersey. In addition, LVH was the first primary stroke center in the Lehigh Valley certified by the Joint Commission and was the first stroke program to be surveyed for Comprehensive Stroke Center status in Pennsylvania.Orthopedic ServicesThe Division of Orthopedic Surgery treats musculoskeletal disorders of the upper and lower extremities as well as the spine. Subspecialists with fellowship credentials provide the following services: joint replacement, spinal disorders, sports medicine, hand and wrist surgery, foot and ankle surgery, orthopedic trauma and pediatric orthopedics. In the fiscal year ended June 30, 2012, there were 7,758 total orthopedic cases of which 4,163 were inpatient and 3,595 were outpatient. In 2012, the LVH Orthopedic program was recognized by US News and World Report for being in the top 50 orthopedic programs in the country.Behavioral Health ServicesLVH operates inpatient behavioral health programs for adolescents and adults. The combined programs rank first in total beds in use, admissions, patient days and occupancy rate in Lehigh, Northampton, Carbon, Monroe, Schuylkill, and Berks counties. Clinical programs include psychiatric, psychological, nursing, dual diagnosis, psychiatric rehabilitation, social work and discharge planning services. LVH also provides ambulatory behavioral healthcare, including: Psychiatric Evaluation Service program in all three hospital emergency departments Three Partial Hospital programs for adults and adolescents Several large outpatient group practices providing multidisciplinary short-term treatment to children, adolescents, adults and geriatric patients Two outpatient mental health clinics for seriously and persistently mentally ill adults Two residential treatment sites, supporting and educating adults in independent living skills. Both these sites and the clinics are funded in part, under a contract with Lehigh County Department of Human Services through funds provided by County of Lehigh and the Pennsylvania Department of Public Welfare.Psychiatric Home Care servicesConsultation /Liaison Psychiatry, Education and Research and service offerings to schools, nursing homes and other community agencies round out LVH's contribution to the health and well-being of the region.Trauma and Burn ServicesIn 1981, LVH became the first hospital in Pennsylvania to be designated as a Level I Trauma Center and is currently the second largest trauma program in Pennsylvania, admitting 3,635 patients in the fiscal year ended June 30, 2012. This program provides comprehensive trauma care and serves as a major regional resource covering a ten county area and a patient base of more than two million. LVH is also one of four Level I trauma programs in the state with additional qualifications in pediatric trauma. The Lehigh Valley Hospital Trauma Program provides a continuum of care for the trauma patient with one of eight trauma surgeons in-house 24 hours a day covering a 14 bed Trauma/Neuro Intensive Care unit as well as a 28 bed Transitional Trauma unit. A trauma rehabilitation team completes this continuum of trauma care.LVH also provides a Regional Burn Center operating 18 beds serving northeastern Pennsylvania, western New Jersey and parts of New York. The Regional Burn Center is the largest burn program in Pennsylvania, admitting 687 patients in fiscal year 2012 and has received certification from the American Burn Association and the American College of Surgeons to provide comprehensive inpatient and outpatient care for both adult and pediatric patients. Since 2008, the Regional Burn Center has implemented a TeleBurn service, which provides rapid access to our comprehensive burn care to more than 45 hospitals in Pennsylvania and New Jersey.In addition, LVH coordinates pre-hospital emergency medical services and provides a 24 hour-a-day air ambulance service operating four helicopters covering eastern Pennsylvania and western New Jersey. Lehigh Valley Hospital MedEvac performs over 1,500 flights annually, including both on-scene and inter-facility patient transports.Magnet Status for Nursing ExcellenceIn August 2002, the American Nurses Credentialing Center (ANCC) granted Magnet designation to LVH and LVH-Muhlenberg, the first full-service hospitals in Pennsylvania to receive the recognition. Developed by the ANCC in 1994, the Magnet designation is the American Nurses Association's highest honor for excellence in nursing and recognizes both hospitals as national leaders in nursing education, research, patient satisfaction, quality care, job retention and the central role of nursing in the organization. Magnet designation is for a period of four years, at which time an organization must reapply. The reapplication process is intense, necessitating that hospitals demonstrate increasingly higher standards than previous applications. In 2006 and 2011, LVHN hospitals were redesignated as Magnet hospitals, continuing to demonstrate the required evidence of a practice environment in which professional nurses and interdisciplinary colleagues deliver the highest standards of quality care.

4b	(Code: ) (Expenses $ including grants of $ ) (Revenue $ )
	Continued from 4(a)-Cancer ServicesThe John and Dorothy Morgan Cancer Center offers a range of cancer services in two convenient, patient-focused locations, one at the Cedar Crest Site and another in Bethlehem at the Muhlenberg campus. The program is a selected member of the prestigious National Community Cancer Centers Program (NCCCP) administered by the National Cancer Institute(NCI). Cancer care programs include prevention, detection, diagnosis, and all forms of therapy, plus clinical trials, rehabilitation and the evaluation of cancer-related care. The Cancer Center is a partner with H.Lee Moffitt Cancer Center of Tampa, Florida and the Wistar Scientific and Biology Institute of Philadelphia, PA both of who are NCI designated cancer centers.Cancer Center facilities include physicians' offices, conference rooms, private education and counseling areas, multi-purpose treatment area for infusions, procedure room and radiation oncology facilities including:Linear accelerators (6),CT Simulators,Stereotaxic Body Radiosurgery Therapy,Brachytherapy-high and low dose rate,Gamma Knife,3-D treatment planning,Intensity Modulated Radiation Therapy,Image Guided Radiation Therapy.The faculty of the Cancer Center is composed of physicians who are cancer care specialists and board-certified in all fields of cancer therapy and evaluation. In addition, LVH participates in the 1-800-PA-CANCER telephone line, the Pennsylvania Department of Health's toll-free cancer information and resource phone number. Specially trained nurses from LVH provide callers with information about institutions, agencies, services and programs in the caller's communities that meet their cancer-related needs.In calendar year 2011, the Cancer Center saw over 3,117 new cancer patients, making the Center the fourth largest in Pennsylvania. An analysis of the Pennsylvania State Tumor Registry data shows that LVH has 12% of the estimated cancer market share in LVH's nine-county market, including 62% in Lehigh County, 30% in Northampton County and 30% in Carbon County. Inpatient oncology admissions were 3,904 in the fiscal year ended June 30, 2012 and outpatient volumes were 86,208 radiation treatments, 64,397 infusion treatments and 51,872 breast procedures. Women's ServicesLVH offers programs and services designed to provide complete care for women in the Lehigh Valley. LVH delivered 4,153 babies during the fiscal year ended June 30, 2012. LVH maintains a special focus on prenatal care as a component of its comprehensive obstetric and gynecology services. The department of Obstetrics and Gynecology at LVH provides a variety of services to the women in the Greater Lehigh Valley and surrounding communities within Northeastern Pennsylvania. The Obstetrical portion of the department provides a vast array of services for both routine and high risk, complex obstetrical patients.Obstetrics - Physicians and Certified midwives provide general obstetrical care within LVH. Midwives offer their patients a family centered approach to low risk prenatal and general delivery care. They are independent allied health professionals who enjoy staff privileges and work under a collaborative agreement with designated physicians. General Obstetrics provide care to low to medium risk pregnancies and handle most deliveries at LVH.Maternal Fetal Medicine - These physicians have specialized training and are available to provide complex, high risk prenatal care which includes: genetic counseling, amniocentesis, chorionic villus sampling and ultrasound. They currently reside on the Labor and Delivery and Perinatal Units to provide direct patient care, supervision and assist to ensure patients receive quality care.Gynecology - LVH maintains a special focus on procedural and technological gynecological interventions (Gyn minimally invasive surgery), laparoscopic surgery, preoperative consultation and evaluation of pre-invasive and invasive gynecologic malignancies (cancer care), pelvic floor disorders (Urogynecology) and Reproductive Endocrinology & Infertility.Women's services offers preventative care programs in a variety of lecture based series covering issues addressing young, middle and older females related to wellness and prevention. These include diverse support groups, community health fairs related to women, bilingual prenatal education, childbirth classes, lactation consultation and postpartum depression. "Our First" program is designed to address the needs of first time parents in addition to the Healthy Beginnings Plus programs for the underserved, uninsured and under insured patients of the community.Children's Hospital at Lehigh Valley HospitalChildren's Hospital at Lehigh Valley Hospital, introduced in May 2012, offers the most wide-ranging, specialized health care services of any facility in the region. It is the region's only Children's ER, Pediatric Intensive Care Unit and the only associate member of the Children's Hospital Association, the organization that recognizes children's hospitals in the U.S.LVHN completed a "children's care checklist" made by the late Forrest Moyer, MD, the Lehigh Valley's father of pediatrics. LVHN recently accomplished the last two goals on the list for the community by opening the Children's emergency room in 2011 and establishing a pediatric residency program.LVHN's board-certified physicians provide children's care in 28 specialties including critical care, burn care, cancer, pulmonology, neurology, endocrinology including diabetes and gastroenterology. There are also 71 general pediatricians and 81 pediatric specialists on staff. Inpatient pediatric services include 111 licensed beds for general pediatrics, pediatric intensive care, neonatal intensive care and adolescent psychiatry. Children can receive care as an outpatient in the Children's ER at the Cedar Crest Site and the sleep center at the 17th & Chew Site. Other pediatric services included within the health network are the pediatric ambulatory surgery center and the outpatient infusion area at LVH-Muhlenberg in Bethlehem.Pharmacy ServicesHealth Spectrum Pharmacy Services offers a range of pharmacy services in three convenient, patient focused locations: one at the Cedar Crest Site, one at the 17th & Chew Site and one at LVH-Muhlenberg. A fourth pharmacy located near the Cedar Crest Site provides home infusion services to residents of surrounding counties in eastern Pennsylvania. Pharmacy services include prescriptions, compounding, specialty medications, over-the-counter, herbal/alternative medications, personal care products, first aid, wound care, ostomy, knee braces, orthotics, vascular garments, post-mastectomy, breast prostheses, diabetic supplies, and home infusion.The retail pharmacies are accredited by The Board of Certification/Accreditation International and the home infusion pharmacy is accredited by Community Health Accreditation Program. The retail pharmacies are equipped with workflow, counting cell, and bar code scanning technology. Pills in a Pouch compliance packaging is also offered. In fiscal year 2012 354,036 prescriptions were filled and 3,187 infusion patients were serviced.The Lehigh Valley Health Network inpatient pharmacy services are nationally recognized for efforts in medications safety and advances in technology. In 2003, the Institute for Safe Medication Practices recognized LVHN with in annual Cheers Award for safety. The department utilizes advances medications safety technologies including CPOE, Bedside Barcoding Medication verification, two medication dispensing robots, automated dispensing cabinets, and smart IV pump technologies. The staff has board certified clinical pharmacy specialists in the areas of Oncology, Trauma, Burn, Pediatrics, Cardiology, and General Medicine and uses a unit based model to provide pharmacy services at the point of care. The department leaders hold national and regional board level and fellowship positions to provide state of the art leadership in pharmacy practice.

4c	(Code: ) (Expenses $ including grants of $ ) (Revenue $ )
	Continued from 4(b)-Estimated Value of Free Care, Community Service,Charitable Contributions, and Professional and Community Education - Medicare Shortfall 67,475,118, Medical Assistance Shortfall 31,613,830, Uncompensated Charity Care 16,276,000, Bad Debt 15,405,798, Clinics Subsidy 14,926,290, TRICARE (CHAMPUS) Shortfall 341,591, Blue Cross Special Care & CHIP Shortfall 412,861, Real Estate Taxes Paid on Owned and Leased Property 1,514,458, Salisbury Township School District Agreement (includes 50% add-on value for voluntary agreements) 172,223, Stipend to Salisbury Township 127,000, Financial Support to City of Allentown 190,000, Free Pap Tests, Mammograms & Ultrasounds-City of Allentown 177,396, Laboratory Tests & Consultative Services - City of Allentown 13,683, Physical Examinations - Firefighters & HazMat Personnel 61,841, Contribution to Western Salisbury Volunteer Fire Company 15,000, School Health 150,546, Communities in Schools 5,148, Fleetwood Area Weight Management & Healthy Lifestyles 11,739, Value of Volunteer Assistance 1,743,774, Neighborhood Health Centers of the Lehigh Valley 458,601, Transitional Living Centers 395,951, Community Health & Health Studies Department 1,340,427, AIDS Activities Office 394,518, Healthy You Programs 168,303, Lehigh Valley Hospital Cancer Center (includes Patient Support & Education, Community Education & Screening Programs) 553,149, George E. Moerkirk Emergency Medicine Institute 441,256, Pastoral Care 677,704, Patient Representative -Press, Ganey Patient Survey 183,063, Foreign Language & Sign Language Interpreting Service 718,024, Public Affairs Activities: Community Health Education Programs 328,141, Patient Education Publications 255,660, Materials to Promote Health-Related Activities 238,503, Physician Referral & Health Information Line 448,069, Community Outreach in-kind, Voluntarism in-kind, Contributions 216,570, Free Oral Trauma Surgery Care 389,074, Ambulance Transport Costs 131,637, Transportation For Discharged Patients 40,949, Pharmaceuticals For Discharged Patients 408,620, Pharmacy Financial Coordinator 43,435, Infection Control Community Service (Includes free flu vaccine) 188,093, Moselem Springs Seniors Event 1,504, LVHN Couriers Free Transportation Services 113,500, Crucial Conversations Training - Children's Advocacy Center 2,646, Dental Screenings & Free Procedures in-kind, Division of Education - Office of Student Affairs in-kind, Helwig Diabetes Center Education & Outreach Programs in-kind, Chairman, Department of Pediatrics Community Service in-kind, Library Services to the Community in-kind, Dept. of OB/GYN - Community Research Education Week in-kind, Stroke Center Community Education Programs in-kind, Comprehensive Wound, Skin & Ostomy Services Community Education in-kind, Sleep Disorders Center Community Education in-kind, Patient Care Services - Community Service (includes classes, support groups, and Professional Excellence Council activities) in-kind, Trauma Division - Injury Prevention Programs in-kind, Tobacco Treatment Program in-kind. Subtotal $158,771,693 Medical Education 7,826,310 Patient Education 302,788 Nursing Education 11,939,550 Research Activities net of Grant Funding 2,762,470 Subtotal $22,831,118 Total $181,602,811

4d	Other program services (Describe in Schedule O.)
	(Expenses $ including grants of $ ) (Revenue $ )
4e	Total program service expenses$ 1,002,503,352

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)............	6,118,045	0	181,273

(A) Name and Title	(B) Average hours per week (describe hours for related organizations in Schedule O)		(D) Reportable compensation from the organization (W- 2/1099-MISC)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)	(F) Estimated amount of other compensation from the organization and related organizations
(A) Name and Title
(18) Mary Kay Grim Former Sr. Vice-President-Human Resources	0.00	X	242,316	0	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		6,348,605

f	All other contributions, gifts, grants, and similar amounts not included above1f		13,842,032
g	Noncash contributions included in lines 1a-1f:$ 182,761
h	Total. Add lines 1a-1f.......			20,190,637
			Business Code
2a	Inpatient Revenue		624,100	655,241,094	655,241,094
b	Outpatient Revenue		624,100	400,313,573	394,652,980	5,660,593
c	Physician Fee Revenue		624,100	953,601	953,601
d
e
f	All other program service revenue .
g	Total. Add lines 2a–2f........			1,056,508,268
3	Investment income (including dividends, interest
	and other similar amounts).....			9,441,360			9,441,360
4	Income from investment of tax-exempt bond proceeds..
5	Royalties............
		(i) Real	(ii) Personal
6a	Gross rents	6,436,192
b	Less: rental expenses	5,470,763
c	Rental income or (loss)	965,429
d	Net rental income or (loss).......			965,429			965,429
		(i) Securities	(ii) Other
7a	Gross amount from sales of assets other than inventory	567,404,524	101,717
b	Less: cost or other basis and sales expenses	534,122,801	83,226
c	Gain or (loss)	33,281,723	18,491
d	Net gain or (loss)..........			33,300,214	33,300,214
8a	Gross income from fundraising events (not including $ of contributions reported on line 1c). See Part IV, line 18 ...
	a		1,114,414
b	Less: direct expenses ...b		456,733
c	Net income or (loss) from fundraising events..			657,681			657,681
9a	Gross income from gaming activities. See Part IV, line 19 ...
	a
b	Less: direct expenses ...b
c	Net income or (loss) from gaming activities...
10a	Gross sales of inventory, less returns and allowances .
	a
b	Less: cost of goods sold ..b
c	Net income or (loss) from sales of inventory..
Miscellaneous Revenue			Business Code
11a	Health Network Labs		621,500	13,465,937	12,576,270	889,667
b	Research & Misc. Incom		900,099	12,013,182	11,892,611	120,571
c	Lehigh Valley PHO		900,003	653,880	653,880
d	All other revenue ....
e	Total. Add lines 11a–11d ......			26,132,999
12	Total revenue. See Instructions....			1,147,196,588	1,109,270,650	6,670,831	11,064,470


				(A) Beginning of year		(B) End of year
1	Cashnon-interest-bearing ..........			10,853	1	13,515
2	Savings and temporary cash investments .......			3,528,591	2	2,920,440
3	Pledges and grants receivable, net .........			7,152,180	3	11,268,693
4	Accounts receivable, net .........			124,382,143	4	201,194,989
5	Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
	Schedule L ..........			0	5	90,000
6	Receivables from other disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B). Complete Part II of
	Schedule L ..........				6
7	Notes and loans receivable, net .............			1,123,621	7	2,238,618
8	Inventories for sale or use ..............			7,833,516	8	13,133,075
9	Prepaid expenses and deferred charges ............			15,094,205	9	15,764,871
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	1,032,736,708
b	Less: accumulated depreciation. .....	10b	588,417,428	438,799,210	10c	444,319,280
11	Investments—publicly traded securities ..........			639,808,126	11	613,111,767
12	Investments—other securities. See Part IV, line 11 ......			0	12	0
13	Investments—program-related. See Part IV, line 11 ..			89,606,426	13	102,113,760
14	Intangible assets .........				14
15	Other assets. See Part IV, line 11 ...........			8,671,371	15	3,879,431
16	Total assets. Add lines 1 through 15 (must equal line 34)...			1,336,010,242	16	1,410,048,439
17	Accounts payable and accrued expenses .			82,631,847	17	89,089,187
18	Grants payable ..........				18
19	Deferred revenue ..........			2,394,848	19	2,707,670
20	Tax-exempt bond liabilities ..........			351,205,810	20	342,411,615
21	Escrow or custodial account liability. Complete Part IV of Schedule D..				21
22	Payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........				22
23	Secured mortgages and notes payable to unrelated third parties ..			34,362,783	23	34,605,371
24	Unsecured notes and loans payable to unrelated third parties ....				24
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.....			174,431,671	25	301,396,078
26	Total liabilities. Add lines 17 through 25.....			645,026,959	26	770,209,921
	Organizations that follow SFAS 117, check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets .....			551,790,038	27	502,217,281
28	Temporarily restricted net assets .....			97,224,615	28	91,734,168
29	Permanently restricted net assets .....			41,968,630	29	45,887,069
	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 .....			690,983,283	33	639,838,518
34	Total liabilities and net assets/fund balances .....			1,336,010,242	34	1,410,048,439