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) MICHAEL LUECHT Director	1.00	X		0	0
(2) TERRENCE BUGNO Director	1.00	X		0	0
(3) JOSEPH KEENAN Director	40.00	X		0	0
(4) LISA GLOSSON Director	40.00	X		166,062	41,064
(5) JOSEPH EMMONS Director	40.00	X		277,001	51,951
(6) JASON SCIARRO DIRECTOR/COO	40.00	X	X	609,493	86,546
(7) JOANNE KNAPIK DIRECTOR/VCHAIR	40.00	X	X	179,312	43,507
(8) LINDA ALIC Chairman/CEN EM	40.00	X	X	210,201	35,542
(9) CHARIE ZANCK DIRECTOR/CHAIRM	2.00	X	X	0	0
(10) CHARLES RUTH Director	1.00	X		0	0
(11) KATHY POWELL Director	1.00	X		0	0
(12) JACK PORTER Director	1.00	X		0	0
(13) PARMOD NARANG Director	1.00	X		0	0
(14) PAT MOREHEAD DIRECTOR/TREASU	2.00	X	X	0	0
(15) ANGELA MCAULEY Director	1.00	X		0	0
(16) LUKE JOHNSOS Director	1.00	X		0	0
(17) MICHAEL EESLEY DIRECTOR/CEO	40.00	X	X	1,139,818	404,262

(A) Name and Title	(B) Average hours per week (describe hours for related organizations in Schedule O)	(C) Position (do not check more than one box, unless person is both an officer and a director/trustee)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)	(F) Estimated amount of other compensation from the organization and related organizations
(18) MIKE CURRAN Director/Vice C	2.00	X	X				0	0
(19) WILLIAM COX Secretary	2.00	X	X				0	0
(20) TOM CAREY Director	1.00	X					0	0
(21) KUMAR NATHAN Director/VP Hea	40.00	X					250,103	51,056
(22) PASQUALE BERNARDI VP CPC OPERAT	40.00		X				259,719	27,018
(23) NEIL MURPHY SR VP CNO	40.00		X				129,013	2,638
(24) ZBIGNIEW LORENC VP MED AFFAIRS	40.00		X				258,468	35,290
(25) SUSAN MILFORD SVP STRAT MARKE	40.00		X				264,569	84,755
(26) ROBERT ROSENBERGER SR VP FINANCE	40.00		X				449,550	88,573
(27) RACHEL SEBASTIAN VP SERV LINE OP	40.00		X				195,768	35,926
(28) LAURA WALCZAK DIR EMER SERV	40.00		X				88,656	15,193
(29) GAIL RUDOLPH VP FOUNDATION	40.00		X				183,760	32,763
(30) MICHAEL FORD VP CPC OPERATIO	40.00		X				127,829	20,566
(31) DAVID TOMLINSON VP OPERATIONS	40.00		X				272,730	46,622
(32) BARBARA JOHNSON SR VP HRD	40.00		X				330,190	27,447
(33) AARON SHEPLEY SR VP ADMIN AFF	40.00		X				343,200	66,848
(34) DUDLEY BROWN Director	40.00		X				234,693	40,160
(35) MATTHEW TOWLER VP SUPPORT SRV	40.00		X				127,085	22,366
(36) BERNADETTE SZCZEPANSKI VP HUMAN RES	40.00		X				186,442	23,778
(37) John M Heinrich Director, Diagnostics & Oncology	40.00			X			156,138	30,940
(38) James C Adamson Director, Risk/Regulatory Matters	40.00			X			160,357	21,122
(39) Christopher Westerkamp Director, Patient Business Serv	40.00			X			167,142	558
(40) David A Shinherr Exec Director, Ortho & Rehab	40.00			X			177,299	32,161
(41) Scott L Padjen Director of Pharmacy	40.00			X			162,937	31,298
(42) Prashant K Sura Physician	40.00				X		320,423	49,651
(43) Yao A Yvonne Physician	40.00				X		265,152	51,277
(44) Marcel T Hoffman Physician	40.00				X		261,381	34,917
(45) Joseph Emmons Physician	40.00				X		271,053	51,951
(46) Robin Purdy Physician	40.00				X		266,716	50,095
(47) Angela Mcauley Retired	0.00					X	45,999	12,198

(A) Name and business address	(B) Description of services	(C) Compensation
PFS Group 7670 Woodway Suite 250 Houston,TX77063	Collections	1,054,042
McKesson Technologies PO Box 98347 Chicago,IL606938347	Information Systems	1,593,414
K&L Gates 70 W Madison St STE 3100 Chicago,IL606024207	Legal	1,086,159
Deloitte Consulting LLP 111 S Wacker Drive Chicago,IL606064301	Consulting Firm	2,435,165
Dell Marketing LP 7489 Collection Center Drive Chicago,IL60693	Information Systems	10,391,306
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	0
2	Grants and other assistance to individuals in the United States. See Part IV, line 22	0
3	Grants and other assistance to governments, organizations, and individuals outside the United States. See Part IV, lines 15 and 16	0
4	Benefits paid to or for members	0
5	Compensation of current officers, directors, trustees, and key employees ....	6,589,978	1,244,438	5,345,540
6	Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....	0
7	Other salaries and wages	36,109,919	17,707,051	18,402,868
8	Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) ....	1,147,136	259,872	887,264
9	Other employee benefits .......	4,621,955	1,940,337	2,681,618
10	Payroll taxes ...........	2,710,416	1,711,530	998,886
11	Fees for services (non-employees):
a	Management ......	9,761,023	8,358,274	1,402,749
b	Legal .........	742,567	394	742,173
c	Accounting ...........	166,501		166,501
d	Lobbying ...........	0
e	Professional fundraising. See Part IV, line 17..	0
f	Investment management fees ......	65,757	65,757
g	Other ..........	30,406,363	25,082,511	5,323,852
12	Advertising and promotion ....	1,982,293	1,979,796	2,497
13	Office expenses .......	4,139,699	3,752,599	387,100
14	Information technology ......	4,115,957	2,713,208	1,402,749
15	Royalties ..	0
16	Occupancy ...........	1,774,384	254,576	1,519,808
17	Travel ............	262,062	141,734	120,328
18	Payments of travel or entertainment expenses for any federal, state, or local public officials ......	0
19	Conferences, conventions, and meetings ....	214,828	82,130	132,698
20	Interest ...........	2,037		2,037
21	Payments to affiliates .......	0
22	Depreciation, depletion, and amortization .....	116,298	116,298
23	Insurance ..............	4,734,864	4,734,111	753
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	MISCELLANEOUS	246,353	168,079	78,274
b	SUBSCRIPTIONS & BOOKS	255,018	56,703	198,315
c	FORMS	664,686	663,532	1,154
d	BAD DEBT PROVISION	5,229,995	5,229,995
e
f	All other expenses	1,944,036	1,421,106	522,930
25	Total functional expenses. Add lines 1 through 24f	118,004,125	77,684,031	40,320,094	0
26	Joint costs. Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation. Check here if following SOP 98-2 (ASC 958-720).

Part X Balance Sheet
	1	Cashnon-interest-bearing ..........	37,974,194	1	21,753,239
2	Savings and temporary cash investments .......	1,601,059	2	1,601,568
3	Pledges and grants receivable, net .........		3	0
4	Accounts receivable, net .........	2,219,348	4	4,558,139
5	Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
	Schedule L ..........		5	0
6	Receivables from other disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B). Complete Part II of
	Schedule L ..........		6	0
7	Notes and loans receivable, net .............	2,076,507	7	2,658,544
8	Inventories for sale or use ..............		8	4,905
9	Prepaid expenses and deferred charges ............	2,059,059	9	2,957,894
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	5,113,256
b	Less: accumulated depreciation. .....	10b		3,619,558	10c	5,113,256
11	Investments—publicly traded securities ..........	25,197,080	11	28,146,754
12	Investments—other securities. See Part IV, line 11 ......		12	0
13	Investments—program-related. See Part IV, line 11 ..		13	0
14	Intangible assets .........	1,085,358	14	1,304,566
15	Other assets. See Part IV, line 11 ...........	184,639	15	181,168
16	Total assets. Add lines 1 through 15 (must equal line 34)...	76,016,802	16	68,280,033
	17	Accounts payable and accrued expenses .	16,866,864	17	15,241,106
18	Grants payable ..........		18
19	Deferred revenue ..........		19
20	Tax-exempt bond liabilities ..........		20
21	Escrow or custodial account liability. Complete Part IV of Schedule D..		21
22	Payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........		22
23	Secured mortgages and notes payable to unrelated third parties ..	17,324,345	23	17,348,521
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.....	54,652,150	25	48,095,531
26	Total liabilities. Add lines 17 through 25.....	88,843,359	26	80,685,158
		Organizations that follow SFAS 117, check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets .....	-12,826,557	27	-12,405,125
28	Temporarily restricted net assets .....		28
29	Permanently restricted net assets .....		29
	Organizations that do not follow SFAS 117, check here and complete lines 30 through 34.
30	Capital stock or trust principal, or current funds .....		30
31	Paid-in or capital surplus, or land, building or equipment fund .....		31
32	Retained earnings, endowment, accumulated income, or other funds		32
33	Total net assets or fund balances .....	-12,826,557	33	-12,405,125
34	Total liabilities and net assets/fund balances .....	76,016,802	34	68,280,033

- 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

Centegra Health System

Employer identification number

36-3196559

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	(iii) Type of organization (described on lines 1- 9 above or IRC section (see instructions))	(iv) Is the organization in col. (i) listed in your governing document?		(v) Did you notify the organization in col. (i) of your support?		(vi) Is the organization in col. (i) organized in the U.S.?		(vii) Amount of support?
(i) Name of supported organization	(ii) EIN		Yes	No	Yes	No	Yes	No	(vii) Amount of support?
(1) Memorial Medical Center	362179764	3		No	Yes		Yes		25,195,120
(2) Northern Illinos Medical Center	362338884	3		No	Yes		Yes		37,792,680
Total									62,987,800

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:	11000144
Software Version:	2011v1.5

- 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

Centegra Health System

Employer identification number

36-3196559

Part I

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

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

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

Yes No

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

Yes No

Part II

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

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

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

Protection of natural habitat Preservation of a certified historic structure

Preservation of open space

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


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

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

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

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

Yes No

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

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

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

Yes No

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

Part III

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

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

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

(i)

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

(ii)

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

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

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

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

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

Cat. No. 52283D

Schedule D (Form 990) 2011

Page 2

Part III

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

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

Public exhibition

Loan or exchange programs

Scholarly research

Other

Preservation for future generations

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

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

Yes No

Part IV

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

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

Yes No

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


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

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

Yes No

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

Part V

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

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

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

Board designated or quasi-endowment SchDMd Bullet

Permanent endowment SchDMd Bullet

Temporarily restricted endowment SchDMd Bullet

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

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

Yes

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

3a(i)

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

3a(ii)

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

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

Part VI

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

Description of property		(a) Cost or other basis (investment)	(d) Book value
1a	Land .................	1,235,786	1,235,786
b	Buildings ................
c	Leasehold improvements ............
d	Equipment ................
e	Other .................	3,877,470	3,877,470
Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10(c).).......			5,113,256

Schedule D (Form 990) 2011

Page 3

Part VII

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

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








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

Part VIII

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

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









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

Part IX

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

(a) Description				(b) Book value









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
Intercompany Accounts Payable		36,153,673
Accrued Professional Liability Claims		11,941,858







Total. (Column (b) must equal Form 990, Part X, col.(B) line 25.)		48,095,531
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
Part X	Part X : FIN48 Footnote	ASC Topic 740, Income Taxes, addresses the determination of how tax benefits claimed or expected to be claimed on a tax return should be recorded in the consolidated financial statements. Under ASC Topic 740, the Health System must recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. ASC Topic 740 also provides guidance on derecognition, classification, interest and penalties on income taxes, and accounting in interim periods and requires increased disclosures. At the date of adoption, and as of June 30, 2012, the Health System does not have a liability for unrecognized tax benefits. The adoption of ASC Topic 740 had no impact on the consolidated financial statements of the Health System.
Part XI, Line 8	Part XI, Line 8: Other Changes in Net Assets or Fund Balances	Transfers to Affiliates $10816695 Amort Book/Tax Differences $116298 Rounding Difference $1 Amort Book/Tax Differences $ -155793

Schedule D (Form 990) 2011

Additional Data

Software ID:	11000144
Software Version:	2011v1.5

- 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

Centegra Health System

Employer identification number

36-3196559

Part I

Questions Regarding Compensation

Yes

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

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

Travel for companions Payments for business use of personal residence

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

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

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

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

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) ZBIGNIEW LORENC	(i) (ii)	234,253	24,215		26,510	8,780	293,758
(2) Yao A Yvonne	(i) (ii)	265,152			29,465	21,812	316,429
(3) SUSAN MILFORD	(i) (ii)	237,787	26,762	20	63,200	21,555	349,324
(4) Scott L Padjen	(i) (ii)	162,937			10,180	21,118	194,235
(5) Robin Purdy	(i) (ii)	266,716			34,317	15,778	316,811
(6) ROBERT ROSENBERGER	(i) (ii)	384,585	58,195	6,770	66,687	21,886	538,123
(7) RACHEL SEBASTIAN	(i) (ii)	177,030	18,738		20,229	15,697	231,694
(8) Prashant K Sura	(i) (ii)	320,423			33,792	15,859	370,074
(9) PASQUALE BERNARDI	(i) (ii)	248,718	11,001		11,102	15,916	286,737
(10) MICHAEL EESLEY	(i) (ii)	783,097	352,926	3,795	393,378	10,884	1,544,080	256,440
(11) Marcel T Hoffman	(i) (ii)	261,381			29,400	5,517	296,298
(12) LISA GLOSSON	(i) (ii)	166,062			19,927	21,137	207,126
(13) LINDA ALIC	(i) (ii)	210,201			25,557	9,985	245,743
(14) KUMAR NATHAN	(i) (ii)	250,103			29,400	21,656	301,159
(15) JOSEPH EMMONS	(i) (ii)	277,001			30,479	21,472	328,952
(16) Joseph Emmons	(i) (ii)	271,053			30,479	21,472	323,004
(17) John M Heinrich	(i) (ii)	156,138			9,828	21,112	187,078
(18) JOANNE KNAPIK	(i) (ii)	179,312			22,279	21,228	222,819
(19) JASON SCIARRO	(i) (ii)	538,495	68,235	2,763	64,549	21,997	696,039
(20) James C Adamson	(i) (ii)	160,357				21,122	181,479
(21) GAIL RUDOLPH	(i) (ii)	166,911	16,829	20	11,443	21,320	216,523
(22) DUDLEY BROWN	(i) (ii)	234,693			29,457	10,703	274,853
(23) DAVID TOMLINSON	(i) (ii)	248,581	24,149		24,907	21,715	319,352
(24) David A Shinherr	(i) (ii)	177,299			11,030	21,131	209,460
(25) Christopher Westerkamp	(i) (ii)	167,142				558	167,700
(26) BERNADETTE SZCZEPANSKI	(i) (ii)	180,119	6,323		18,708	5,070	210,220
(27) BARBARA JOHNSON	(i) (ii)	263,209	66,981		16,825	10,622	357,637	35,419
(28) Angela Mcauley	(i) (ii)	45,999			2,809	9,389	58,197
(29) AARON SHEPLEY	(i) (ii)	306,968	36,232		44,996	21,852	410,048

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
Sch J, Part I, Line 1b	Part I, Line 1b: Reason for not following policy regarding payment provisions for expenses	Centegra does not have a written policy regarding the payment of the items listed on schedule J, part I, line 1a; however, these expenses were reviewed and approved by management as prudent and fiscally responsible business decisions.
Sch J, Part I, Line 1a	Part I, Line 1a: Relevant information in regards to selections on 1a.

Schedule J (Form 990) 2011

Additional Data

Software ID:	11000144
Software Version:	2011v1.5

- 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

Centegra Health System

Employer identification number

36-3196559

Part I

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

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

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

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

Part II

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

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






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

Part III

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

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

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

Cat. No. 50056A

Schedule L (Form 990 or 990-EZ) 2011

Page 2

Part IV

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

(a) Name of interested person	(b) Relationship between interested person and the organization	(c) Amount of transaction	(d) Description of transaction	(e) Sharing of organization's revenues?
(a) Name of interested person		(c) Amount of transaction	(d) Description of transaction	Yes	No
(1) McHenry County Orthopaedics	Director	3,852	Medical Services		No
(2) Business Graphics	Director	33,661	Contractor		No
(3) Curran Contracting Company	Director	31,374	Contractor		No
(4) Carey Electric	Director	294,753	Electrical Work		No
(5) American Community Bank	Vice Chairman	106,282	Certificate of Deposit		No
(6) American Community Bank	Director	106,815	Certificate of Deposit		No
(7) Home State Bank	Director	100,000	Certificate of Deposit		No
(8) Home State Bank	Treasurer	100,000	Certificate of Deposit		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
		The business transactions with interested persons are arms length transactions.

Schedule L (Form 990 or 990-EZ) 2011

Additional Data

Software ID:	11000144
Software Version:	2011v1.5

- 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

Centegra Health System

Employer identification number

36-3196559

Identifier	Return Reference	Explanation
	Form 990, Pat VI, Line 12c - Conflicts	1. In connection with any actual or possible conflicts of interest, an interested person or other person subject to this policy must disclose the existence and nature of his or her financial interest in writing to the President of Centegra or the Chief Corporate Responsiblity Officer or designee, who shall provide such written disclosure to the Governors Affairs Committee of Centegra, which shall consider all conflicts of interest issues and, if appropriate, to the directors and members of committees with board-delegated powers considering the proposed transaction of arrangement. The disclosure must occur, at minimum, annually, with a Conflict of Interest Disclosure Statement being submitted no later than January 31st of each year. Copies of disclosure statements filed by Board members shall be distributed to the Board annually at the February Board meeting. 2. When a conflict of interest is disclosed at meeting of the board or committee thereof, after disclosure of the financial interest, the interested person shall leave the board or committee meeting while the financial interest is discussed and voted upon. The remaining board or committee members shall decide if a conflict of interest exists. The interested person's leaving such meeting shall not affect whether a quorum exists at such meeting. 3. Procedures for Addressing the Transaction of Arrangement from Which the Conflict Arose. The chairperson of the board of committee shall, if appropriate, appoint a disinterested person or committee to investigate alternatives to the proposed transaction or arrangement. After exercising due diligence, the board of committee shall determine whether Centegra can obtain a more advantageous transaction or arrangement with reasonable efforts from a person or entity that would not give rise to a conflict of interest. If a more advantageous transaction or arrangement is not reasonably attainable under circumstances that would not give rise to a conflict of interest, the board or committee shall determine by a majority vote of the disinterested directors whether the transaction or arrangement is in Centegra's best interest and for its own benefit and whether the transaction is fair and reasonable to Centegra and shall make its decision as to whether to enter into the transaction or arrangement in conformity with such determination. 4.Violations of the Conflicts of Interest Policy: If the administration, the Board, or a committee has a reasonable cause to believe that a member has failed to disclose actual or possible conflicts of interest, it shall inform the member of the basis for such belief and afford the member an opportunity to explain the alleged failure to disclose. If, after hearing the response of the member and making such further investigation as may be warranted in the circumstances, the Board or committee determines that the member has, in fact, failed to disclose an actual or possible conflict of interest, it shall refer the matter to the Governors Affairs Committee for consideration, which shall subsequently recommend appropriate disciplinary and corrective action to such board or committee. 5. The minutes of the board and all committees with board-delegated powers shall contain the names of the persons who disclosed or otherwise were found to have a financial interest in connection with an actual or possible conflict of interest, the nature of the financial interest, any action taken to determine whether a conflict of interest was present, and the board's or committee's decision as to whether a conflict of interest, in fact, existed. The names of the persons who were present for discussions and votes relating to the transaction or arrangement, the content of the discussion, including any alternatives to the proposed transaction or arrangement, and a record of any votes taken in connection therewith. Continued below.
	Form 990, Pat III, Line 4a, Con't	EXERCISE PROGRAMS The Medical Centers, in conjuction with Centegra Health System offer specialized exercise programs that help participants get moving and stay active for a healthier lifestyle. These include: Low Back Water Class, Basketball League, Racquetball League, Seniors in Motion, Arthritis Water Exercise Program, Senior Citizen's Exercise Group, The Get Off Your Rocker Program designed for individuals at least 55 years of age to improve flexibility, strength, and endurance; and the Stroke Exercise Program which is a general physical conditioning exercise program for stroke patients to improve coordination and increase range of motion. Yoga, Tai Chi, Relaxation Management, Weight Management, and a variety of other programs are offered through Health Bridge Fitness Center.
	Form 990, Part V, Line 1c	Centegra Health System did not have reportable payments to vendors or reportable gaming winnings to prize winners during the fiscal year 2012. If these payments had occured, however, Centegra Health System would have complied with the backup holding rules for these payments as appropriate.
	Form 990, Part IV, Ln 12 & Part XI Ln 2b	Centegra Health System was audited on a consolidated basis. The consolidated audit is done with the oversight of the Finance and Audit Committee.
	Form 990, Part III, Line 4a, Con't	OTHER PROGRAMS Together We Can Immunization Partnership Clinics were instituted at the Medical Centers and Medical Offices to provide immunizations for the unvaccinated children under age 18 in McHenry County. Clinics are held once a month at the medical centers and office buildings providing Hepatitis B, DPT, Hib, OPV, MMR and Td immunizations. Fees are based upon ability to pay with a maximum charge of $12.00 per immunization. The Medical Centers were the first hospitals in the state of Illinois to adopt the E.N.C.A.R.E. program (Emergency Nurses Cancel Alcohol Related Emergencies) program which lets nurses tell teenagers exactly what they have learned on the job -- that alcohol causes death, disability, and pain to thousands of teenagers, throughout the country, every year. The Medical Centers incorporate Independence Square into its physical therapy/rehabilitation program. Using Independence Square, disabled individuals can practice and master the skills required for personal hygiene, home maintenance, financial management, mobility, and social interaction in the security and privacy of the rehabilitation department. Independence Square utilizes these distinctive environments: apartment, ATM/Bank & Office, Boat Dock, Bus & Car,Cafe & Restaurant, Golf Course, Grocery Store, Pharmacy & Department Store, and Porch & Ambulation Course. Therapists and clinical staff are able to assess and evaluate the progress of each patient using a unique form of individual care. When individual confidence and proficiency return, discharge planning and community re-entry training complete the rehabilitation program. The Rehabilitation and Sports Medicine Clinic at Health Bridge Fitness Center provides sports medicine, aquatics, outpatient physical and occupational therapy programs. The Back to Work Program, an industrial injury prevention and rehabilitation program provides physical therapy, ergonomic consultation and back safety programs. The program also uses the aquatic pool located at the Rehabilitation and Sports Medicine Clinic at Health Bridge Fitness Center. The Centegra Pain Management Center specializes in providing advanced, innovative treatments, which succeed in relieving most types of pain. The physicians, pain psychologist, nurses, and staff are specially trained and experienced in the field of pain management. Educational materials on chronic pain were developed and made available to the community at trade/health fairs. The Neurotrauma Day Treatment Program serves individuals who have experienced traumatic brain injury and neurological impairments due to stroke, accident, or disease. It is a comprehensive program for patients requiring intensive, interdisciplinary services on an outpatient basis. The program facilitates the individual's function and independence in the home, work, school, and community with integrated and holistic treatment. Services include physical therapy, occupational therapy, speech therapy, neuropsychology, social work, nursing, vocational counseling, and recreational therapy. This program also has access to facilities at Health Bridge Fitness Center and may work in conjunction with the Back to Work Program. Centegra Health System is a learning center (clinical site) for students from a multitude of colleges and universities. Students have completed internships in programs such as nurse practitioner, nursing, nurse aide, physician assistant, social work, speech therapy, phlebotomy, diagnostic medical sonography, medical imaging, medical records, pharmacy, medical physics, surgical technology, professional counselor, substance abuse counselor, and medical assistant. Centegra Health System is also a learning site for 3rd and 4th year medical students from the University of Illinois Rockford.
	Form 990, Part III, Line 4a Con't	SUPPORT GROUPS Centegra Health System, in conjuction with the Medical Centers and Affiliates, sponsors or hosts many support groups for its patients as well as the community. The following ongoing support groups are held at the Medical Centers, Affiliates or in the community and are free of charge. By supporting these groups, the Medical Centers and Affiliates are able to provide one or all of the following three things: 1)Staff professionals who either act as facilitators of the group or function as "Guest Speakers," 2)Space offered free of charge, 3)Free marketing to educate the community about these services. Programs sponsored by the Medical Centers and/or Affiliates in conjunction with Centegra Health System include:Alcoholics' Anonymous is a twelve-step program for individuals recovering from alcohol dependence.Alcoholics' Anonymous, Women's Group is a special group for women.Al-Anon is a twelve-step program group for codependent individuals.Arthritis Support Group is for individuals with arthritis.Bariatric Support Group is for those individuals who have had weight loss surgery.Better Breathers Club is for those individuals with pulmonary disease and their families.Caregivers' Support Group is for those who care for someone with a chronic or life-threatening illness.Diabetes Support Group is for individuals with Diabetes and their families.Epilepsy Support Group is for individuals with Epilepsy and their families.Families' Anonymous is a support group for families with chemically dependent members.Fibromyalgia Support Group is for those suffering from Fibromyalgia.Get Help Live Longer is a smoking cessation education and support group.Hat's Off is a group for women diagnosed with any type of cancer meeting every month.Headwinds is a support group offered to survivors of traumatic brain injury and their family members and caregivers. The Medical Centers participate in conjunction with the Pioneer Center.Infertility Support Group is a group for couples or individuals experiencing infertility problems.Living with Grief, sponsored by Centegra Pastoral Care, offers support for adults grieving the loss of a loved one.Looking Beyond is for people diagnosed with Cancer, their family members, and friends.Make Today Count is a group for anyone with a life-threatening illness as well as their family and friends.McHenry County Crisis Line provides 24-hour mental health information, referral services, and crisis assistance.Multiple Sclerosis (MS) Support Group is under the Illinois Chapter of the National Multiple Sclerosis Society. The group is open to persons with MS, their family members and others interested in the treatment and management of the disease.Narcotics Anonymous is a twelve-step support program for those recovering from narcotics dependence.Nuts and Bolts is a unique support group for stroke survivors who are 55 years of age or younger. The emphasis of this group is on assisting the families as they adapt to the special lifestyle changes of the young stroke survivor.Perinatal Grief Support Group is for anyone who has experienced the loss of a newborn or an infant through miscarriage, ectopic pregnancy, or Sudden Infant Death Syndrome (SIDS).St. Peregrine's Cancer Support Group is a non-denominational support group for patients and their families and friends.What's Aphasia? is a group for stroke survivors and family members who have an impairment of their ability to speak or comprehend words.Wingspan is a group that provides the opportunity of open discussions, question and answer sessions, lectures, and social events for people recovering from strokes as well as their families.*Y-Me Breast Cancer Support Program is a national program designed to let participants listen to physicians, survivors, social workers, and nurses who have been invited to speak on topics such as handling anger, considered prostheses, and concerns about breast implant risks.
	Form 990, Part III, Line 4a Con't	OTHER COMMUNITY SERVICES The Medical Centers and Affiliates participate in various community projects, such as: Meals on Wheels, Immunization Clinics, National Depression/Anxiety Screening Day, free Flu Vaccination Clinics, and health and county business fairs in order to promote health and awareness in the community. Other community services are hospital tours for area schools, shadowing opportunites for area schools, Flight for Life Helicopter appearances, poison awareness programs, blood drives, mammograms, blood pressure, skin, and colorectal cancer screenings and lipid profiles. Glaucoma, hearing, and other screenings are offered in order to promote health and awareness in the community. The Medical Centers and Affiliates also distribute thousands of informational brochures, service listings, and flyers at the request of area schools, churches, and organizations on an ongoing basis. Centegra S.H.I.P. (Senior Health Insurance Program) provides trained volunteers on a weekly basis to answer questions regarding insurance coverage. Silver Key Club is the senior citizens group for Centegra Health System. It is a free membership group for people 55 years of age and older, which provides four issues of a senior newsletter each year, a health diary for members to list their medications and health history, and a discount in the hospital cafeteria at both NIMC and MMC. At certain times of the year, there are discounted screenings and/or special services available for members. Community education is also made available to Silver Key Members through early bird reservations, or through general news releases. Emergency Room Treatment Forms are parent/guardian permission forms to administer emergency treatment to minors in time of need. The Medical Centers sponsor blood drives every year and was able to provide numerous pints of blood to those in need.The Medical Centers provide Patient Express! transportation services for individuals who require transportation to the Medical Centers. The Patient Express! van is provided and is frequently used by the disabled and elderly individuals of the community. The service is provided free of charge, although donations are accepted to defray the costs of the service. In fiscal year 2012, the service provided 10,754 trips to those in need. The Referral Line is a toll-free phone line sponsored by the Medical Centers. It offers free, computerized service to callers who require information or physician referrals. A trained counselor staffs the line. Several medical specialties are represented, and physicians are on staff for referrals. The line also gives information regarding physician's office hours, locations, insurance, and languages spoken. Additionally, counselors give information on Self-Help and Support Groups.
	Form 990, Part III, Line 4a Con't	EDUCATION PROGRAMS The Medical Centers, in conjunction with Centegra Health System, work in cooperation with McHenry County College and Health Bridge Fitness Center to provide a complete series of specialized training for those interested in developing their knowledge of emergency basics, or in pursuing a career in the emergency health care field. There are three levels of training available: First Responder, Emergency Medical Technician - Basic, Emergency Medical Technician - Paramedic. A Medical Dispatcher Course designed to prepare individuals for employment as dispatchers for a public service agency providing dispatch to law enforcement fire service, and/or Emergency Medical Service is also offered. The Medical Centers offer a variety of classes that can help people save lives. The Medical Centers offer Red Cross first aid classes that include First Aid/CPR and a CPR Instructor Course. The Medical Centers' Occupational Health Departments also teach first aid classes on-site as requested by local businesses. Cardio-pulmonary resuscitation (CPR) classes help community members learn CPR prior to certification, or brush up on skills for re-certification. The Medical Centers also offer an American Heart Association Heartsaver CPR, International Trauma Life Support, Advanced Cardiac Life Support, and Pediatric Advanced Life Support training classes. The Medical Centers and Affiliates make a variety of educational programs designed to promote wellness available to all members of the community. Family health and wellness programs presented by the Medical Centers are designed to promote a healthier community. The Medical Centers offer low-cost education classes for expectant families including prenatal and cesarean birth classes, Very Important Sibling Classes, along with free hospital tours. At discharge, new parents are presented with the video, "Baby's First Months: What Do We Do Now". Supersitters is a program which teachs the responsibilities of being a babysitter and includes first aid and accident prevention. The Medical Centers provide various classes to assist with our busy life styles including Relaxation Training and Improving Your Blood Pressure. Lipid screeningsare offered twice each year. Nutrition related offerings include Food and Feelings, Healthy Heart Nutrition and Weight Management Programs. Still more educational programs are offered to assist members of the community take charge of special needs in their lives, in their changing lifestyles for healthier lives, as well as programs to inform the community about Advance Medical Directives. Other programs are the Critical Care Class, Stroke: Are You Doing All You Can?, You're In Control Diabetic Education Program, Men and Depression, and Inderstanding Medicare. Integrative programs include mindful eating, understanding the healing potential of food, and journaling. The Medical Centers sponsor several programs specializing in issues of concern for women as well as reduced fee mammograms, programs on osteoporosis, and programs on menopause. Making Peace with Your Body is a program to teach women body acceptance with an emphasis on what you can realistically change with diet and exercise. Additional Behavioral Health programs offered on a rotating basis include What To Do When Your Loved One Is Depressed, Relationship Addiction, Stepfamilies: Steps to Harmonious Living, and Mind/Body Medicine: An Introduction. Northern Illinois Medical Center's Sage Cancer Center, together with the American Cancer Society and Gavers Community Cancer Foundation, sponsor various Cancer Awareness Programs. The Center offers colorectal cancer screenings, reduced fee mammograms, skin cancer screenings, and reduced fee PSA screenings. Cancer awareness also includes programs on reduction of risk for cancer through good nutrition and healthy lifestyle habits. Northern Illinois Medical Center also sponsors celebrations of cancer survivorship.
	Form 990, Part III, Line 4a	STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS Centegra Health System coordinates the delivery of health care services by assisting in the management of Northern Illinois Medical Center and Memorial Medical Center (The Medical Centers) and Centegra Health System Foundation, Health Bridge Corporation and NIMED Corporation (Affiliates). The Medical Centers' and the Affiliates' program accomplishments are summarized below: The Medical Centers provide optimum quality health care, delivered by competent hospital and medical center staff, to all whom seek its services regardless of race, creed, sex, national origin, handicap, age, or ability to pay. The primary mission of the Medical Centers is to enhance the health of the community as the preferred health care organization providing outstanding service and value. It is the Medical Centers' objective to serve the community with respect to providing health care services and education. Although reimbursement for services rendered is critical to the operation and stability of the Medical Centers, it is recognized that not all individuals possess the ability to purchase essential medical services. Therefore, in keeping with the Medical Centers' commitment to serve all members of its community, free care and/or subsidized care will be considered where the need and/or an individual's inability to pay exist. Medical Services are provided in a dignified manner to Medicare, Medicaid and indigent patients.The Medical Centers' services include, but are not limited to:351 licensed-bed Comprehensive Medical CenterLevel Two Trauma CenterEmergency Medicine Physicians, 24-hours a dayOn-site Flight for Life HelicopterTDD (Telephone Device for the Deaf) in ER: 815-385-0285 and 815-338-0008Center for New Life including: Level Two Nursery, Antenatal Testing Center, Lamaze Classes, Breastfeeding Classes, Prenatal Classes, Hello Daddy & Dial-A-Dad pagers, and Very Important Sibling ClassesObstetricsSurgical and Ambulatory Treatment ServicesIntensive and Intermediate Care UnitBehavioral Health Unit: Adult & Chemical Dependency/Detox Programs, Inpatient Unit, and Partial-Hospitalization ProgramSage Cancer CenterExtended Care UnitThree-level Cardiac Rehabilitation ProgramCardiac SurveillanceCardiac Catherization SuiteHeart Failure ClinicPediatricsFull-body CT scanner and Magnetic Resonance Imaging (MRI)Mammography ScreeningCenter for Physical Rehabilitation: Inpatient Unit, Independence Square, Occupational, Physical and Speech Therapies, and Outpatient TherapiesRepiratory TherapyHome Health CareBack to Work Program for Industrial Injury Prevention and RehabilitationSports Medicine ClinicFirst Step Substance Abuse Center: 800-675-8448McHenry County Crisis Line: 800-892-8900Pharmacy Information Line: 815-338-9090Associate Health Program: 815-334-3944Occupational HealthWomen's Diagnostic Services (in Medical Imaging)Poison Control Hotline: 815-338-5975Patient Express! TransportationExtra Touch ProgramSleep Disorders CenterPastoral CareSocial ServiceCommunity Education ProgramsNutritional Therapy ServicesSupport Programs/GroupsNeurotrauma Day Treatment Program Centegra Health System Foundation provides fund-raising services for Centegra Health System in conjunction with the Medical Centers. The proceeds of these activities are used to purchase medical equipment and supplies, therefore enabling the Medical Centers to better serve the community. Health Bridge Corporation provides various rehabilitation services for the Medical Centers in conjunction with Centegra Health System, by providing a fitness center and pool that serves the community in various capacities and sponsors and hosts assorted educational programs. NIMED Corporation aids in the management of the Medical Centers and several satellite locations within the Centegra Health System organization.
Form 990, Part VI, Line 19	Form 990, Part VI, Line 19: Other Organization Documents Publicly Available	The organization makes its governing documents, conflict of interest policy, and financial statements available to the public upon request.
Form 990, Part VI, Line 12c	Form 990, Part VI, Line 12c: Explanation of Monitoring and Enforcement of Conflicts	Continued from above. 6. A voting member of any committee whose jurisdiction includes compensation matters and who receives compensation, directly or indirectly, form Centegra for services is precluded from voting on matters pertaining to that member's compensation. Physicians who receive compensation, directly or indirectly, from Centegra, whether as employees or independent contractors, are precluded from membership on any committee whose jurisdiction includes compensation matters and in which such physician may have a direct or indirect interest. 7. Each director, principal officer, and member of a committee with board-delegated powers shall annually sign a statement which affirms that such person has received a copy of the conflicts of interest policy; has read and understands the policy; has agreed to comply with the policy; and understands that Centegra is a charitable organization and that in order to maintain its federal tax exemption, it must engage primarily in activities which accomplish one or more of its tax exempt purposes. 8. To ensure that Centegra operates in a manner consistent with its charitable purposes and that it does not engage in activities that could jeopardize its status as an organization exempt from federal income tax, periodic reviews shall be conducted by the Governors Affairs Committee of Centegra. The periodic reviews shall, at a minimum, include the following subjects: Whether acquisition of physician practices and other provider services result in inurement or impermissible private benefit. Whether partnership and joint venture arrangements and arrangements with management service organizations and physician hospital organizations conform to written policies, are properly recorded, reflect reasonable payment for goods and services, further Centegra's charitable purposes and do not result in inurement or impermissible private benefit. Whether agreements to provide healthcare and agreements with other healthcare providers, employees, and third party payors further Centegra's charitable purposes and do not result in inurement or impermissible private benefit. Whether business transactions on behalf of Centegra or an entity controlled by it are the result of arms-length dealing and are no less advantageous than competitively available goods and services of like grade and quality. 9.In conducting the periodic reviews provided for in Article VII, Centegra may, but need not, use outside advisors. If outside experts are used, their use shall not relieve the board of its responsibility for ensuring the periodic reviews are conducted.
Form 990, Part VI, Line 11	Form 990, Part VI, Line 11: Form 990 Review Process	The review process for the 990 included review by the Director of Accounting and Chief Financial Officer. The 990 also was sent to an outside auditor for review before submission to the IRS.
Form 990, Part VI, Line 6	Form 990, Part VI, Line 6: Explanation of Classes of Members or Shareholder	Centegra Health System has a single class of members.
Form 990, Part VI, Line 3	Form 990, Part VI, Line 3: Description of Delegated Duties to Management Company	Management companies were used for the daily operations and management of the following services for the health system: Sodexho was used for Food & Nutrition, Plant Operations and Maintenance, and Environmental Services work. Dell (Perot) was used for the Information Systems area. Professional Business Consultants is used for the management of the Managed Care department.
Form 990, Part VI, Line 2	Form 990, Part VI, Line 2: Description of Business or Family Relationship of Officers, Directors, Et	Centegra Health System (CHS) has adopted specific conflict of interest policies for its governing and management staff. The policy includes, but is not limited to, when an individual, governor, committee member, officer, agent or employee believes that he or she, or a member of his or her immediate family might have or does have a real or apparent conflict, he or she should in addition to filing the disclosure notice required, abstain from making motions, voting, executing agreements, or taking any other similar direct action on behalf of CHS. Not withstanding, it is understood that both real and apparent conflicts of interest sometimes naturally occur in the course of conducting daily affairs. Conflicts occur because the many persons associated with CHS should be expected to have, and do in fact generally have multiple interests and affiliations, and various positions of responsibility within the community. The long-range interests of CHS do not require the termination of an association with persons who have real or apparent conflicts, if an effective method can render such conflicts harmless to all concerned. During fiscal year 2012, CHS purchased certain goods and/or services from organizations with director's affiliation. All transactions were competitively bid and conducted at arms length. The fees paid were at fair market value. Director Kathy Powell is an employee and Vice President of Home State Bank. Director Patrick Morehead is on the Board of Directors and a 1% owner of Home State Bank. Chairman Charie Zanck is a Director of American Community Bank & Trust. Director Charles Ruth is the Board Chairman of American Community Bank & Trust. Rachel Sebastian, Vice President of Service Line Operations, is the daughter of the Chief Executive Officer, Michael Eesley. Rachel Sebastian reports directly to the President and Chief Operations Officer, Jason Sciarro.
		Client Note 1 -

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:	11000144
Software Version:	2011v1.5

- 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

Centegra Health System

Employer identification number

36-3196559

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
(1) Centegra Insurance Services Ltd 23 Lime Tree Bay Ave Box 1051 George Town,Grand CaymanKY1-1102 CJ 36-3196559	Malpractice Insurance Provider	CJ	540,735	17,711,219	NA
(2) Centegra Clinical Laboratories LLC 385 Millennium Drive Crystal Lake,IL60014 36-4706465	Laboratory and pathology services	DE	-267,361	66,329	N/A
(3) Centegra Health Bridge Fitness Ctr LLC 385 Millennium Drive Crystal Lake,IL60012 26-1277524	Health & Fitness Center	DE			HEALTH BRIDGE CORPORATION
(4) Centegra Primary Care LLC 385 Millennium Drive Crystal Lake,IL60012 36-4085398	Primary Care	DE	-10,939,357	6,203,141	NA

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) Oak Creek Lodge 385 Millennium Drive Crystal Lake,IL60012 36-3591359	Hospital Operations	IL	501(c)(3)	3	Centegra Health System		No
(2) Health Bridge Corporation 385 Millennium Drive Crystal Lake,IL60012 36-3196550	Health & Fitness Center	IL	501(c)(3)	11c	Centegra Health System		No
(3) Centegra Health System Foundation 385 Millennium Drive Crystal Lake,IL60012 36-3726310	Fundraising for Medical Centers	IL	501(c)(3)	11a	Centegra Health System		No
(4) NIMED Corporation 385 Millennium Drive Crystal Lake,IL60012 36-3199111	Property Management	IL	501(c)(3)	11c	Centegra Health System		No
(5) Memorial Medical Center 3701 Doty Road Woodstock,IL60098 36-2179764	Hospital Operations	IL	501(c)(3)	3	Centegra Health System		No
(6) Northern Illinois Medical Center 4201 Medical Center Drive McHenry,IL60050 36-2338884	Hospital Operations	IL	501(c)(3)	3	Centegra Health System		No

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

Cat. No. 50135Y

Schedule R (Form 990) 2011

Page 2

Part III

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

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

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)	(h) Percentage ownership
(1) Centegra Management Services Inc 385 Millennium Drive Crystal Lake,IL60012 36-4028114	Management	IL	Centegra Health System	C Corp	100.000 %

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

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

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

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

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

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

Yes

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

Yes

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

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

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

Yes

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

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

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

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

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

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:	11000144
Software Version:	2011v1.5

1	Briefly describe the organization’s mission or most significant activities: The primary mission of the Centegra Health System is to coordinate the delivery of quality healthcare services with the innovative and responsible use of resources and to promote wellness for the greater McHenry County area.
2	Check this box
3	Number of voting members of the governing body (Part VI, line 1a).....	3	21
4	Number of independent voting members of the governing body (Part VI, line 1b) ....	4	6
5	Total number of individuals employed in calendar year 2011 (Part V, line 2a) ...	5	694
6	Total number of volunteers (estimate if necessary) ....	6	321
7a	Total unrelated business revenue from Part VIII, column (C), line 12 ..	7a	0
b	Net unrelated business taxable income from Form 990-T, line 34 ..	7b

		Prior Year	Current Year
8	Contributions and grants (Part VIII, line 1h) .........		0
9	Program service revenue (Part VIII, line 2g) .........	88,879,647	107,379,472
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	1,104,907	1,062,299
11	Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)		0
12	Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)...................	89,984,554	108,441,771
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...		0
14	Benefits paid to or for members (Part IX, column (A), line 4).....		0
15	Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10)	40,453,008	51,179,404
16a	Professional fundraising fees (Part IX, column (A), line 11e).....		0
b	Total fundraising expenses (Part IX, column (D), line 25) 0
17	Other expenses (Part IX, column (A), lines 11a–11d, 11f–24f)....	60,326,887	66,824,721
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	100,779,895	118,004,125
19	Revenue less expenses. Subtract line 18 from line 12.......	-10,795,341	-9,562,354
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16).............	76,016,802	68,280,033
21	Total liabilities (Part X, line 26).............	88,843,359	80,685,158
22	Net assets or fund balances. Subtract line 21 from line 20.....	-12,826,557	-12,405,125

Sign Here

	Signature of officer	Date

	Type or print name and title.


4a	(Code: ) (Expenses $ 77,684,031 including grants of $ ) (Revenue $ 107,379,472 )
	See Schedule O.

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












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












4d	Other program services (Describe in Schedule O.)
	(Expenses $ including grants of $ ) (Revenue $ )
4e	Total program service expenses$ 77,684,031

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)............	8,538,259	1,650,039

				(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

f	All other contributions, gifts, grants, and similar amounts not included above1f
g	Noncash contributions included in lines 1a-1f:$
h	Total. Add lines 1a-1f.......			0
			Business Code
2a	Other Rev-Related 501(c)3		551,114	4,166,740	4,166,740
b	Exp Alloc-Related 501(c)3		551,114	62,987,799	62,987,799
c	Exp Alloc-Other relatedco		621,111	845,950	845,950
d	Centegra Primary Care Ops		621,111	37,607,832	37,607,832
e	Centegra Ins Svcs Operat		524,126	4,027,913	4,027,913
f	All other program service revenue .			-2,256,762	-2,256,762
g	Total. Add lines 2a–2f........			107,379,472
3	Investment income (including dividends, interest
	and other similar amounts).....			1,475,179			1,475,179
4	Income from investment of tax-exempt bond proceeds..			0
5	Royalties............			0
		(i) Real	(ii) Personal
6a	Gross rents
b	Less: rental expenses
c	Rental income or (loss)
d	Net rental income or (loss).......			0
		(i) Securities	(ii) Other
7a	Gross amount from sales of assets other than inventory	2,416,713
b	Less: cost or other basis and sales expenses	2,829,593
c	Gain or (loss)	-412,880
d	Net gain or (loss)..........			-412,880			-412,880
8a	Gross income from fundraising events (not including $ of contributions reported on line 1c). See Part IV, line 18 ...
	a
b	Less: direct expenses ...b
c	Net income or (loss) from fundraising events..			0
9a	Gross income from gaming activities. See Part IV, line 19 ...
	a
b	Less: direct expenses ...b
c	Net income or (loss) from gaming activities...			0
10a	Gross sales of inventory, less returns and allowances .
	a
b	Less: cost of goods sold ..b
c	Net income or (loss) from sales of inventory..			0
Miscellaneous Revenue			Business Code
11a
b
c
d	All other revenue ....
e	Total. Add lines 11a–11d ......			0
12	Total revenue. See Instructions....			108,441,771	107,379,472		1,062,299


				(A) Beginning of year		(B) End of year
1	Cashnon-interest-bearing ..........			37,974,194	1	21,753,239
2	Savings and temporary cash investments .......			1,601,059	2	1,601,568
3	Pledges and grants receivable, net .........				3	0
4	Accounts receivable, net .........			2,219,348	4	4,558,139
5	Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
	Schedule L ..........				5	0
6	Receivables from other disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B). Complete Part II of
	Schedule L ..........				6	0
7	Notes and loans receivable, net .............			2,076,507	7	2,658,544
8	Inventories for sale or use ..............				8	4,905
9	Prepaid expenses and deferred charges ............			2,059,059	9	2,957,894
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	5,113,256
b	Less: accumulated depreciation. .....	10b		3,619,558	10c	5,113,256
11	Investments—publicly traded securities ..........			25,197,080	11	28,146,754
12	Investments—other securities. See Part IV, line 11 ......				12	0
13	Investments—program-related. See Part IV, line 11 ..				13	0
14	Intangible assets .........			1,085,358	14	1,304,566
15	Other assets. See Part IV, line 11 ...........			184,639	15	181,168
16	Total assets. Add lines 1 through 15 (must equal line 34)...			76,016,802	16	68,280,033
17	Accounts payable and accrued expenses .			16,866,864	17	15,241,106
18	Grants payable ..........				18
19	Deferred revenue ..........				19
20	Tax-exempt bond liabilities ..........				20
21	Escrow or custodial account liability. Complete Part IV of Schedule D..				21
22	Payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........				22
23	Secured mortgages and notes payable to unrelated third parties ..			17,324,345	23	17,348,521
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.....			54,652,150	25	48,095,531
26	Total liabilities. Add lines 17 through 25.....			88,843,359	26	80,685,158
	Organizations that follow SFAS 117, check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets .....			-12,826,557	27	-12,405,125
28	Temporarily restricted net assets .....				28
29	Permanently restricted net assets .....				29
	Organizations that do not follow SFAS 117, check here and complete lines 30 through 34.
30	Capital stock or trust principal, or current funds .....				30
31	Paid-in or capital surplus, or land, building or equipment fund .....				31
32	Retained earnings, endowment, accumulated income, or other funds				32
33	Total net assets or fund balances .....			-12,826,557	33	-12,405,125
34	Total liabilities and net assets/fund balances .....			76,016,802	34	68,280,033